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Research Points to Innovation, Business Catalysts and Asset Flows as Factors that Can Lead to Outperforming the Broader Market
BlackRock Expands Active Equity and Fixed Income Line-Up with Sustainable Infrastructure, Climate and Broad ESG Funds
NEW YORK, October 19, 2021--(BUSINESS WIRE)--New research from BlackRock highlights how sustainability-oriented business catalysts and data help active investment managers identify companies better positioned to outperform traditional benchmarks as the world transitions to a net zero economy.
An estimated $50 to $100 trillion in capital investment is required to successfully transition to a net-zero global economy.1 BlackRock research shows that as more companies participate in the journey to net zero during this period of monumental economic change, active investors can increasingly find opportunities to outperform the traditional equities market in three ways: by incorporating sustainable insights into their investment strategies, identifying climate-related financial catalysts and incorporating them into the investment process, and seeking out investment opportunities in emerging technologies.
"We’ve been clear about our conviction that sustainability criteria have material impacts on investment returns, and our latest research builds on our thesis," said Rich Kushel, Senior Managing Director and Head of the Portfolio Management Group at BlackRock. "The key to active management is our ability to consistently identify companies and data points that can help us generate investment alpha. The incorporation of sustainability analytics is an increasingly important component to assessing the potential of companies and technologies as sources of return."
Providing More Active Sustainable Options
To provide clients with its active insights and more access to sustainable strategies, BlackRock is launching nine new funds and repurposing seven equity and fixed income funds with clearly articulated environmental, social and governance (ESG) criteria embedded in their investment mandates and objectives.
Across the new funds, investors will have access to a flagship suite of broad ESG offerings across fixed income including total return, high yield, emerging markets, and low-duration bond strategies, as well as equities, including US growth and value as well as large cap and international strategies. In addition to this suite, climate and sustainable infrastructure equity strategies complement the new broad ESG offerings.
1.BlackRock Sustainable High Yield Bond Fund
2.BlackRock Sustainable Advantage CoreAlpha Bond Fund
3.BlackRock Sustainable Emerging Markets Bond Fund
4.BlackRock Sustainable Low Duration Bond Fund
5.BlackRock Sustainable Total Return Fund
6.BlackRock Sustainable Emerging Markets Flexible Bond Fund
7.BlackRock Future Climate and Sustainable Economy ETF (BECO)
8.BlackRock Infrastructure Sustainable Opportunities Fund
9.BlackRock ESG Capital Allocation Trust (Closed-End)
10.BlackRock Sustainable US Growth Equity Fund
11.BlackRock Sustainable US Value Equity Fund
12.BlackRock Sustainable International Equity Fund
13.BlackRock Sustainable Emerging Markets Equity Fund
14.BlackRock Sustainable Advantage Large Cap Core Fund
15.BlackRock Sustainable Advantage International Equity Fund
16.BlackRock Sustainable Advantage Emerging Markets Equity Fund
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
A fund’s strategy of investing in securities of companies with low carbon exposure limits the type and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not seek to minimize carbon exposure. A fund’s low carbon exposure investment strategy may result in the fund investing in securities or industry sectors that underperform the market.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.
The BlackRock funds are actively managed and their characteristics will vary. Actively managed funds do not seek to replicate the performance of a specified index. Actively managed funds may have higher portfolio turnover than index funds.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision.
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Investors who invested certain amounts in the Funds on or around the Funds’ launch date (also referred to as "anchor investors"), including those investors quoted or listed in this communication, were provided the opportunity by BlackRock to participate, including as a featured speaker, in certain BlackRock-sponsored publicity events relating to the Funds and their investment strategies. Any investor’s opinion may not be representative of other investors in the Funds and is not a guarantee of the future performance or success of the Funds.
There is no guarantee, obligation or assurance that any anchor investors will maintain any specific level of investment in the fund, and such anchor investors have the abilty to withdraw their investment at any point in time like any other shareholder of a mutual fund or ETF.
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 Intergovernmental Panel on Climate Change (IPCC), "Mitigation Pathways Compatible with 1.5°C in the Context of Sustainable Development," in An IPCC Special Report on the impacts of global warming, 2018.
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