BlackRock is set to close the BlackRock Global Funds China Impact fund and BlackRock Funds I ICAV Global Impact fund due to an expectation that the funds will not raise significant further assets in the near future, leading to a higher cost for investing.
The firm will also be closing its BlackRock Global Funds Future Consumer fund due to the anticipated future demand and a limited net asset value, which currently sits at $17m.
Over three years, the China impact fund, which currently holds $20m AUM, has lost 55.5% compared to a sector average loss of 46.2%, according to FE fundinfo data. The Global Impact fund, with AUM of $104m, has dropped 20.3% versus a sector average growth of 6.49% in the last three years.
BlackRock continues to hold $12bn in AUM across impact investing strategies.
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All shares for the BlackRock Global Impact fund must be redeemed by 15 January, while liquidation of the China fund must be complete by 24 October, 2024. The Future Consumer fund will complete redemptions by 22 October, 2024.
A BlackRock spokesperson said: “BlackRock regularly reviews its product line-up to help meet our clients’ unique investment goals and their evolving needs. Decisions about our product line-up reflect factors such as client demand, feedback on their fit within investment portfolios, and various other considerations.
“Fund closures are a part of the natural cycle of industry innovation and ensure the relevancy of our product platform.”
