Blackrock has added an ESG fund to its multi-asset indexing range, MyMap.
The group, which announced in January its commitment to make sustainability as its “new standard” for investing, has launched the MyMap 5 Select ESG fund, which it said was a low-cost option for investors looking to meet their sustainable investing goals.
It will consider a broad range of investment themes including climate change, natural resources, pollution and waste, social opportunities and corporate behaviour.
The MyMap range was launched in May last year designed to help investors achieve financial returns through cost-effective funds – the portfolios are built using Blackrock’s iShares ETFs and index funds. The funds are actively managed and rebalanced on a quarterly basis.
> See also: Blackrock rival to Lifestrategy prompts split views on static allocation
The MyMap 5 Select ESG Fund holds 33% in bonds, 64% in stocks and 3% in assets classed as ‘other’. It has a volatility target of 8-11% and carries an OCF of 0.17%.
Blackrock head of UK advisers and platforms Heather Christie said: “The Covid-19 crisis has triggered a widespread reassessment of the way we live our lives in terms of our health, our finances, and everyday activity. For advisers and their clients this has resulted in identifying resilient sources of return as they increasingly seek to build portfolios that match their sustainable investing goals.
“Adding an ESG focused fund into the MyMap range, continues our commitment to providing choice and, means people can still benefit from being invested in a low-cost multi-asset index product but can now do so in a sustainable way.”
> See also: Nuns accuse Blackrock of greenwashing in shareholder resolution
The announcement comes after St James’s Place and Vanguard both announced plans to launch passive ESG-focused products. SJP is unveiling a range of low-carbon passive solutions over the next 12 months while on Tuesday, Vanguard launched two ESG equity index funds.
