Impact investment strategy seeks to enable public market investors
to combine social and financial goals
NEW YORK--(BUSINESS WIRE)--
BlackRock has launched the BlackRock Impact Bond Fund (‘the Fund’), a
mutual fund that aims to generate competitive financial returns while
investing in measurable social and environmental outcomes. The Fund will
trade under the ticker BIIIX.
The Fund will be the first broadly available U.S. fixed income fund
launched by BlackRock since the formation of BlackRock Impact, the
firm’s $200 billion sustainable investing platform.
“Impact investing seeks to enable investors to achieve competitive
returns while targeting transparent, measurable social and environmental
goals,” said Deborah Winshel, Managing Director and Global Head of
Impact Investing at BlackRock. “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.”
The Fund
The Fund seeks to provide 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, as determined by
BlackRock, compared to the Barclays U.S. Aggregate Bond Index (the
“Benchmark”). The Fund is run by BlackRock’s Model Based Fixed Income
team, who seeks to employ a unique research and investment approach and
aims for compelling absolute and risk-adjusted performance with low
correlation to the broader fixed income market. Financial results are
driven by a combination of asset allocation and security selection
strategies in which aggregate positive societal outcomes of the security
selection process are incorporated using the BlackRock Scientific Active
Equity (“SAE”) Impact Methodology. The portfolio focuses on measurable
impact and consistent alpha.
“We believe this new investment strategy will address a growing demand
for fixed income impact solutions in the public markets,” said Scott
Radell, Managing Director and portfolio manager of the Fund. “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.”
BlackRock Impact
In February 2015, BlackRock appointed Deborah Winshel to help unify its
approach to impact investing through the launch of BlackRock Impact, the
Firm’s global platform catering to investors with social or
environmental objectives. The development of the BlackRock Impact Bond
Fund further highlights BlackRock’s commitment within this space and
enables public market investors to access the platform which currently
manages $200 billion of assets across impact investing, environmental,
social and governance (ESG) portfolios, and screened portfolios. For
more information about BlackRock Impact, please visit blackrockimpact.com.
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At June 30,
2016, BlackRock’s AUM was $4.890 trillion. BlackRock helps clients
around the world 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®. As of June 30, 2016, the firm had
approximately 12,700 employees in more than 30 countries and a major
presence in 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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Important Risks: The fund is actively managed and its characteristics
will vary. Bond values fluctuate in price so the value of your
investment can go down depending on market conditions. Fixed income
risks include interest-rate and credit risk. Typically, when interest
rates rise, there is a corresponding decline in bond values. Credit risk
refers to the possibility that the bond issuer will not be able to make
principal and interest payments. Principal of mortgage- or asset-backed
securities normally may be prepaid at any time, reducing the yield and
market value of those securities. Obligations of U.S. gov't agencies are
supported by varying degrees of credit but generally are not backed by
the full faith and credit of the U.S. gov't. The fund may use
derivatives to hedge its investments or to seek to enhance returns.
Derivatives entail risks relating to liquidity, leverage and credit that
may reduce returns and increase volatility. International investing
involves special risks including, but not limited to political risks,
currency fluctuations, illiquidity and volatility. These risks may be
heightened for investments in emerging markets.
You should consider the investment objectives, risks, charges and
expenses of the fund carefully before investing. The prospectus and, if
available, the summary prospectus contain this and other information
about the fund and are available, along with information on other
BlackRock funds, by calling 800-882-0052 or from your financial
professional. The prospectus should be read carefully before investing.
Investing involves risks including possible loss of principal.
GMC-0188
View source version on businesswire.com: http://www.businesswire.com/news/home/20160825005233/en/
BlackRock
Olivia Offner, 646-231-0137
Olivia.offner@blackrock.com
Source: BlackRock