American money manger BlackRock has unveiled a new mutual fund that will invest in measurable social and environmental outcomes, while generating competitive financial returns.
Dubbed as BlackRock Impact U.S. Equity Fund, the Ucits compliant fund will be managed by BlackRock’s Scientific Active Equity (SAE) team.
The fund will offer a portfolio of equity securities of companies targeting competitive market returns and aggregate societal impact outcomes, as determined by BlackRock.
BlackRock said that the SAE team will score more than 8,000 companies daily across three societal impact outcome areas: health, the environment, and corporate citizenship.
The fund excludes certain companies or industries, including alcohol, tobacco and weapons manufacturers.
BlackRock managing director and global head of impact investing Deborah Winshel said: "Impact investing enables investors to do more with their money than simply achieving a financial return. Through transparent measurement and outcome reporting, impact investing allows investors to better understand how their money is being put to work."
BlackRock SAE Investment Group managing director and co-head Jeff Shen said: "This new investment strategy will help move impact investing from a niche to a core allocation. We have designed a portfolio that combines innovative investing capabilities with a transparent and tangible set of social and environmental impact outcomes."
Additionally, BlackRock has recently rolled out other impact funds in Europe and Japan.
BlackRock currently manages over $200bn of assets across environmental, social and governance (ESG) portfolios, and impact investments.