American asset manager BlackRock has ramped up its sustainability initiatives by rolling out its first global unconstrained ESG total return bond fund.
The fund is the ESG version of the firm’s BGF Fixed Income Global Opportunities fund (BGF FIGO) and will be run by the same management team.
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Dubbed BGF ESG Fixed Income Global Opportunities Fund (ESG FIGO), the new vehicle will focus on firms with higher ESG ratings and structural allocations to bonds with sustainable impact.
It will exclude sectors including tobacco, weapons, coal and tar sands.
At the same time, ESG FIGO will have a euro base currency to lower hedging costs.
Besides, the firm will engage with issuers moving their businesses towards a lower carbon economy.
ESG FIGO will be run by BlackRock CIO of global fixed income Rick Rieder, as well as Bob Miller and Aidan Doyle.
They will be supported by the head of responsible investing for global fixed income Ashley Schulten.
Rieder noted: “ESG FIGO aims to carefully balance ESG considerations while at the same time seeking to deliver attractive and diversified risk-adjusted returns across a market cycle.
“The launch of our first unconstrained ESG total return bond fund available to clients is a significant milestone in our efforts to offer investors as much choice as possible in how they meet their sustainable investing goals.”
