Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

BlackRock launches green bond index fund

1 Comment
BlackRock launches green bond index fund

In response to the growing demand from investors, BlackRock has launched a Green Bond Index fund for those seeking exposure to environmentally positive investments.

The Green Bond Index fund will offer investors exposure to fixed income securities issued to fund projects with direct environmental benefits.

The fund will reflect the total return of the Bloomberg Barclays MSCI Global Green Bond Index.

Ashley Schulten, director, head of climate solutions fixed income, and Darren Wills will manage the fund supported by BlackRock’s Global Fixed Income team.

Green bonds are debt issues with a direct influence to improving the environment. Their earnings are earmarked for low-carbon and climate enhancing projects.

While a minor portion of the global debt universe, green bonds have raised $9.2 million (£7.5 million) in 2016.

The bonds have been issued by an assembly of different groups including sovereigns (Poland and France); sub-sovereigns (Stockholm County Council, New York MTA, City of Oslo, Province of Ontario); Corporates (Apple, EDF, Iberdrola, Toyota); supranationals (World Bank, IFC, European Investment Bank); and commercial Banks (Bank of China, Société Générale, Crédit Agricole CIB).

Schulten 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.’

Earlier this month, Lyxor entered the green space with the launch of what it claimed to be the world’s first green bond exchange-traded fund (ETF).

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

Wealth Manager on Twitter