Innovation

BlackRock launches Green Bond Index Fund as investors seek exposure to environmentally positive investment solutions

BlackRock has launched a Green Bond Index Fund, responding to the growing demand from investors for this fast-growing part of the fixed income market. BlackRock is one of the leading asset managers in the Green Bond market, with extensive experience of managing Green Bond mandates...

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BlackRock has launched a Green Bond Index Fund, responding to the
growing demand from investors for this fast-growing part of the fixed income market. BlackRock is one of the leading asset managers in the Green Bond market, with extensive experience of managing Green Bond mandates, shaping market standards and driving sector growth, for example as Partner of the Climate Bonds Initiative and as an Executive Committee Member of the Green Bonds Principles.

The Green Bond Index Fund will offer investors exposure to a selection of fixed income
securities that are issued to fund projects with direct environmental benefits. The fund will be
optimized to deliver investment performance which reflects the total return of the Bloomberg
Barclays MSCI Global Green Bond Index.

Ashley Schulten, Director, Head of Climate Solutions (Fixed Income) and co-manager
of the fund: “We see a strong interest in Green Bonds from clients we service as they seek to
participate in climate friendly and environmentally beneficial investments without making major
changes to sector allocation or liquidity risk in their holdings. Clients interested vary from large
institutional clients to family offices and retail investors.”

As an early investor in Green Bonds and a strong supporter of global standards and impact
reporting, BlackRock is well positioned to now offer a UCITs fund for this new asset class.
BlackRock intends to use the breadth of its trading and capital markets teams and the depth
of its climate research and portfolio management acumen to help further the development of
this globally important investment option.

The fund is managed by Ashley Schulten and Darren Wills who have a combined investment
experience of over 35 years. Ashley and Darren are supported by the Global Fixed Income
team. BlackRock manages over $1.57 trillion (BlackRock data, as at 31 December 2016) in
fixed income assets on behalf of global clients, including both active and index strategies. Ms
Schulten was awarded one of the top 3 ‘Most impressive Green/SRI Investment Firm’ at
GlobalCapital Sustainable Investment Awards 2016.

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