Provides global equity exposure for investors committed to reducing
their carbon footprint
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) has expanded its suite of Environmental,
Social and Corporate Governance (ESG)-related products with the launch
of iShares
MSCI ACWI Low Carbon Target ETF (NYSE:CRBN). The new fund which
seeks to track the results of the MSCI ACWI Low Carbon Target Index and
addresses two dimensions of carbon exposure – carbon emissions and
fossil fuel reserves – started trading on the New York Stock Exchange on
December 9, 2014.
CRBN is designed for individuals and institutions interested in
environmental sustainability without divestment and provides
transparency to the carbon footprint of their investments. By
overweighting companies with low carbon emissions relative to sales and
those with low potential carbon emissions per dollar of market
capitalization, it aims to maintain exposure to global equity, while
accounting for carbon exposure. Relative to the standard ACWI index, the
underlying holdings to the CRBN index produce 81% less carbon emissions
and 97% less potential carbon emissions from fossil fuel reserves.
Daniel Gamba, head of BlackRock's iShares Americas Institutional
Business, said, “We see a growing demand from global investors who
are seeking to invest in way that can have a positive impact on the
broader economy without potentially sacrificing returns and to be able
to do so with the ease, access and efficiency of an ETF. With iShares
MSCI ACWI Low Carbon Target ETF, we are helping investors to look at
socially responsible investing through the lens of long-term investment
returns and in the process helping them to take action with their
portfolios. This is particularly relevant for official institutions, pensions,
foundations and endowments who are interested in pursuing
environmental sustainability strategies without divestment.”
Carol Boykin, CFA, Representative of the Secretary-General for the
investment of the assets of the United Nations Joint Staff Pension Fund,
said, “As we consider the impact of climate change worldwide, as
highlighted by the UN Secretary-General at his Climate Summit on 23
September, it is clear that investors are now paying close attention to
the risk posed to their investments by climate change. The United
Nations Joint Staff Pension Fund welcomes the creation of a new lower
carbon index and related ETFs as a responsible approach to
environmentally sustainable investing and a positive response to the
Secretary-General’s call for action.”
Sam Gallo, Chief Investment Officer of the University System of
Maryland Foundation, said, “Being able to address socially
responsible concerns while maintaining our fiduciary standards is
critical to our investment approach. The iShares MSCI ACWI Low Carbon
Target ETF is a low-cost, investment solution that allows us to maintain
full exposure to global equities while incorporating a carbon exposure
reduction strategy.”
Baer Pettit, Managing Director and Head of the Index Business at MSCI,
said "Socially responsible investing increasingly influences many of our
clients' investment strategies. We are pleased that iShares has again
selected MSCI to meet its need for an innovative index."
The MSCI Global Low Carbon Target Index re-weights stocks based on their
carbon exposure in the form of carbon emissions and fossil fuel
reserves. The index is designed to achieve maximum carbon exposure
reduction given a specific tracking error target. The MSCI Global Low
Carbon Target Index is based on the MSCI ACWI Index, the global policy
benchmark covering developed and emerging markets, and utilizes MSCI ESG
CarbonMetrics data from MSCI ESG Research Inc.
BlackRock's commitment to social investing spans asset classes and
enables investors to access investment strategies that target a
reasonable risk-adjusted rate of return in addition to positive and
measureable social or environmental outcomes. The firm managed $257
billion in social investing products as of the end of June 2014, up from
$215 billion as of June 30, 2012.1
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
September 30, 2014, BlackRock’s AUM was $4.525 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
September 30, 2014, the firm had approximately 12,100 employees in more
than 30 countries and a major presence in key global markets, including
North and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company’s website
at www.blackrock.com
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About iShares
iShares is a global leader in exchange-traded funds (ETFs), with more
than a decade of expertise and commitment to individual and
institutional investors of all sizes. With over 700 funds globally
across multiple asset classes and strategies and more than $1 trillion
in assets under management as of September 30, 2014, iShares helps
clients around the world build the core of their portfolios, meet
specific investment goals and implement market views. iShares funds are
powered by the expert portfolio and risk management of BlackRock,
trusted to manage more money than any other investment firm.
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. Transactions
in shares of the iShares Funds will result in brokerage commissions and
will generate tax consequences. iShares Funds are obliged to distribute
portfolio gains to shareholders. Shares of the iShares Funds may be sold
throughout the day on the exchange through any brokerage account.
However, shares may only be redeemed directly from a Fund by Authorized
Participants, in very large creation/redemption units.
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.
The iShares MSCI ACWI Low Carbon Target ETF may not reflect a lower
carbon exposure as there is no guarantee that the underlying index will
achieve its intended results or accurately assess an issuer's actual and
potential carbon emissions.
As of December 9, 2014, iShares MSCI ACWI Low Carbon Target ETF
(NYSE:CRBN) began participating in the NYSE Arca ETP Program on its
listing market, NYSE Arca. While the impact of participation in the NYSE
Arca ETP Incentive Program, which is optional, cannot be fully
understood until objective observations can be made in the context of
the NYSE Arca ETP Incentive Program, potential impacts on the market
quality of CRBN may result, including with respect to the average spread
and average quoted size for CRBN. Learn more at: http://www.ishares.com/us/products/liquidity-incentive-programs
The Funds are distributed by BlackRock Investments, LLC (together with
its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted
by MSCI Inc., nor does this company make any representation regarding
the advisability of investing in the Funds. BlackRock is not affiliated
with MSCI Inc.
©2014 BlackRock. All rights reserved. iSHARES and BLACKROCK
are registered trademarks of BlackRock. All other marks are the property
of their respective owners. iS-14122-1214
1 Source: BlackRock
BlackRock, Inc.
Diane Henry, 415-670-4567
Diane.Henry@blackrock.com
or
Melissa
Garville, 212-810-5528
Melissa.Garville@blackrock.com
Source: BlackRock, Inc.