American fund manager BlackRock has introduced a new mutual fund that aims to generate competitive financial returns while investing in measurable social and environmental outcomes.
Dubbed BlackRock Impact Bond Fund, the new fund will be the first broadly available US fixed income fund launched by BlackRock since the formation of BlackRock Impact, the firm’s $200bn sustainable investing platform.
The fund, which will trade under the ticker BIIIX, seeks to offer income and capital growth by investing in a portfolio of fixed income including corporate bonds of companies with positive aggregate societal impact outcomes such as corporate citizenship, high impact disease research, greenhouse gas emissions, ethics controversies, and litigation.
BlackRock Impact Bond Fund is run by firm’s Model Based Fixed Income unit, which seeks to employ a unique research and investment approach.
BlackRock managing director and global head of impact investing Deborah Winshel said: “Impact investing seeks to enable investors to achieve competitive returns while targeting transparent, measurable social and environmental goals. BlackRock continues to leverage the breadth of its investing and risk management skill to create innovative portfolios that seek to combine social purpose and investment performance.”
Scott Radell, managing director and portfolio manager of the fund, said: “We believe this new investment strategy will address a growing demand for fixed income impact solutions in the public markets. The BlackRock Impact Bond Fund seeks to leverage the firm’s renowned analytics capabilities and with its deep knowledge of the bond markets to create something truly differentiated for sustainable investors.”