BlackRock has launched two new active thematic funds within its BlackRock Global Funds (BGF) range - the BGF Next Generation Health Care fund and the BGF Future Consumer fund.
The two new funds will invest in themes positioned to benefit from long-term global trends and both will incorporate ESG and sustainability criteria into their investment processes.
The funds are benchmark-agnostic and aim to outperform the MSCI All-Country World index (ACWI) over time.
There are currently profound shifts occurring in the healthcare space, as well as in the way people consume goods and services globally."
Both vehicles have an OCF of 1.82% for the A2 USD share class and an OCF of 1% for the D2 USD share class.
The healthcare fund invests in next generation health companies across new and emerging themes in areas such as genetic medicine, next generation diagnostics, immunotherapy, robotic-assisted surgery, biosensors & trackers, medical AI applications, and telehealth.
It will invest across the market cap, seeking growth opportunities in small, mid and even micro-cap companies, including active participation in the IPO market.
The future consumer fund is a high-conviction, concentrated strategy investing in businesses driving the transformation of the consumer ecosystem globally, across a number of themes, including changes in consumption patterns, evolution of entertainment, and personal wellbeing development.
The vehicle also aims to invest in companies that over time are reducing their carbon intensity within the consumer ecosystem and is therefore categorised as an Article 8 fund under SFDR.
Evy Hambro (pictured), global head of thematic and sector based investing, said: "There are currently profound shifts occurring in the healthcare space, as well as in the way people consume goods and services globally.
"On the one hand, technology is enabling a wealth of innovative companies to address emerging health concerns, creating secular growth opportunities for investors. On the other, demographics and the way consumers interact with brands are propelling changes in consumption patterns and preferences, as sustainability considerations come to the fore.
"Both funds encapsulate these fast-growing themes and expand our thematics offering to cover the latest Megatrends developments we're witnessing in a post-pandemic world."
Nick Hutton, head of UK wealth business, added: "For investors looking to tap into the opportunity offered by megatrends to diversify their portfolios, these two strategies provide a differentiated investment approach aimed at benefitting from the early buy-in on future market trends.
"They give investors exposure to the businesses that will lead these industries' landscape over the coming years, while ensuring sustainability is at the heart of the investment process."
First published by our sister title Investment Week