BlackRock has launched a Global Impact fund, which gives investors the chance to direct their money towards companies helping to address major world challenges.
BlackRock, the world's largest asset manager, said the fund was part of a high-conviction active equity impact strategy.
It added the strategy formed part of its efforts to expand its sustainable investment platform as it moves towards making sustainability its "standard for investing".
Alongside the impact goals, the fund seeks to maximise long-term total return and to outperform the MSCI All Country World index."
It explained the fund's impact is achieved by investing in companies which contribute to the advancement of the United Nations Sustainable Development goals and targets.
The portfolio is made up of companies which work within the firm's "proprietary impact themes including increasing access to quality education and affordable housing, advancing healthcare innovation to help with societal challenges such as the current covid-19 pandemic, expanding financial and digital inclusion, preventing climate change, reversing environmental degradation, and increasing efficiencies in water usage and deployment".
The fund is managed through BlackRock's Active Equities Impact Investing team which recently formed under the leadership of Eric Rice, who joined the firm in October 2019.
Alongside the impact goals, the fund seeks to maximise long-term total return and to outperform the MSCI All Country World index.
Passive products have 'significant limitations'