BlackRock has launched the Green Bond Index fund, responding to the growing demand from investors for this fast-growing part of the fixed income market.
The Ucits fund will offer investors exposure to a selection of fixed income securities that are issued to fund projects with direct environmental benefits. The fund will be optimized to deliver investment performance which reflects the total return of the Bloomberg Barclays MSCI Global Green Bond Index.
The fund is managed by Ashley Schulten and Darren Wills who have a combined investment experience of over 35 years. BlackRock intends to use the breadth of its trading and capital markets teams and the depth of its climate research and portfolio management acumen to help further the development of this new asset class.
Schulten, co-manager of the fund and also head of Climate Solutions (Fixed Income), said: “We see a strong interest in green bonds from clients we service as they seek to participate in climate friendly and environmentally beneficial investments without making major changes to sector allocation or liquidity risk in their holdings.”
“Clients interested vary from large institutional clients to family offices and retail investors,” Schulten added.