BlackRock Launches BlackRock Impact Bond Fund
August 25 2016 - 8:30AM
Business Wire
Impact investment strategy seeks to enable
public market investors to combine social and financial
goals
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 | Twitter: @blackrock_news |
Blog: www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock
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
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BlackRockOlivia Offner,
646-231-0137Olivia.offner@blackrock.com
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