BlackRock is pleased to announce the launch of the BlackRock Global Funds (BGF) Impact Bond Fund, a new active Fixed Income fund in its existing Luxembourg-domiciled BGF range.
The BGF Impact Bond Fund takes advantage of a multi-currency and multi-sector investment universe to identify opportunities across fixed income sectors. It is supported by a thorough research process that addresses duration management, asset allocation, and FX positions. The Fund invests at least 80% of its total assets in securities which have been classified according to measurable and material benefits for society or the environment.
The strategy leverages proprietary impact research, which defines a bespoke investment universe and includes labelled Green, Social, and Sustainable bonds, as well as impact Mortgage-Backed Securities (MBS) and impact municipal investments. This enables investors’ access to opportunities arising from impact investing, complementing BlackRock’s existing active Sustainable fund suite.
The Fund aims to generate attractive risk-adjusted alpha across various market environments, while supporting positive environmental and social outcomes, in accordance with the UN SDGs.
The Fund provides a flexible approach to sector allocation, with the view to create a diversified portfolio, allowing for adaptability to changing markets. Thoughtful research and a careful methodology are used to help the Fund seek to deliver alpha over time even in volatile environments.
Actively managed by BlackRock’s Global Multi-Sector and European Fixed Income management teams, the BGF Impact Bond Fund is classified under the EU’s Sustainable Finance Disclosure Regulation (SFDR) as Article 9 and builds on investors’ increasing demand for expertise in ESG research and ESG oriented strategies.
The Fund is actively managed, and the investment adviser (IA) has discretion to select the Fund’s investments. The Fund has an unconstrained investment style (i.e. it will not take a benchmark index into account when selecting the Fund’s investments). The ICE Green, Social & Sustainable Bond Index, EUR hedged (the “Index”) should be used by investors to compare the performance of the Fund over the long term.
“The BGF Impact Bond Fund taps into the growing investor interest in driving positive social and environmental impact within a fundamental active global bond portfolio, leveraging BlackRock’s proprietary impact research with its macro global investment views“.Ronald van Loon, Co-Manager of the BGF Impact Bond Fund