American asset manager BlackRock has launched four emerging market debt funds, which incorporate a sustainable investing approach.
The new funds range includes the ESG Emerging Markets Bond Fund, ESG Emerging Markets Local Currency Bond Fund, ESG Emerging Markets Corporate Bond Fund, and ESG Emerging Markets Blended Bond Fund.
The UCITS-compliant strategies will invest in debt securities issued by government, public local authorities as well as corporates in emerging market countries.
Sustainable funds are a part of impact investing.
BlackRock head of EMD sustainable investing and portfolio manager in emerging market debt team Giulia Pellegrini said: “These funds harness our proprietary ESG scoring and other analytic tools to help build ESG-focused investment themes that take advantage of additional alpha-generating opportunities in the EMD space.”
The vehicles will be managed against the JESG EMD indices, which were introduced by BlackRock in alliance with JPMorgan earlier this year.
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By GlobalDataBlackRock head of emerging market debt Sergio Trigo Paz said: “We believe the recent launch of the ESG indexes in EM debt – a collaboration between J.P. Morgan and BlackRock – could prompt greater capital allocation to more ESG-friendly issuers over time, and there is a real opportunity to seek out enhanced returns using insightful ESG analysis, big data and text mining, as well as boots-on-the-ground engagement with issuers.”