A Brief Summary

BlackRock, an investment company, announced the launch of a suite of ESG index funds targeting the wealth markets in the UK. The funds help clients make a sustainable transition.

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The new investment comprises five funds at launch, providing regional and country-specific exposures in Europe, Japan and Pacific ex-Japan. A sixth fund is also waiting in the line, which expects a launch in the coming weeks.

At present, the Uk has a wider gap in the wealth market, which will get solved following the launch of the new range. The new funds introduced will benefit both: one, investors looking to integrate sustainability into their asset allocation decisions. Two, accelerate the trend of indexing across wealth portfolios.

Manuela Sperandeo, BlackRock’s EMEA Head of Sustainable Indexing, said: “We are excited to launch this new range of funds which set the standard for sustainable index investing in the UK market. Investors across the country, including pension funds, wealth managers and private banks, are turning to solutions that enable them to incorporate ESG considerations into their standard portfolios. These new sustainable, core index building blocks allow investors to build low-cost, global equity portfolios with the flexibility to adjust exposures according to their asset allocation needs.”

Morningstar and BlackRock collaborated for the launch helped in designing a set of ESG equity indices covering global, regional and country-specific exposures.

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The indices instituted has a screening facility that limits controversial activities such as firearms production for retail sale to thermal coal extraction, oil sands production and tobacco distribution etc. The screening also monitors the UK market with categories related to adult entertainment, gambling, alcohol etc. In addition, the new funds also aim to scale down carbon emissions by at least 30%.

Rob Edwards, Director of Product Management, EMEA & ESG, Morningstar Indexes, said: “We are thrilled to build on our global collaboration with BlackRock to offer differentiated index-based strategies to help European investors address their growing sustainable investment needs. Our suite of ESG indexes draws on the capabilities of Morningstar Indexes global research team in addition to the underlying ESG ratings of highly respected ESG rating provider Sustainalytics, also part of Morningstar. In combination with the strength of BlackRock, our indexes represent compelling value for the end investor.”

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