BlackRock Global Fund Circular Economy

Assets under management in dedicated environmental, social and governance (ESG) funds have tripled in the past decade to a little under one trillion US-Dollar, the investment management corporation BlackRock stated in its “Davos brief”, referring to estimates of the International Monetary Fund (IMF). “Yet we see a far bigger structural shift afoot – akin to the multi-decade impact of the post-war ‘baby boom’.” Therefore, BlackRock would make “an increased commitment to integrate sustainability across its technology platform, risk management and investment strategies”.

According to the information, it is – inter alia – building sustainable portfolios, improving access to sustainable investing, particularly for indexes, and intensifying engagement between investors, companies and regulators.

In October last year started a new BlackRock Global Fund (BGF) Circular Economy with 20 million US-Dollar of seed capital. End of January, it was worth several millions more and spread over 43 companies, including Adidas, Mondi, Nestle, Tomra, Veolia Environnement – to name but a few. The BGF Circular Economy aims to provide a return on the financial means deployed by the investors through a combination of capital growth and income on the fund’s assets. As reported, the fund invests globally at least 80 percent of its total assets in the equity securities (i.e. shares) of companies that benefit from, or contribute to, the advancement of the circular economy. The fund would aim to invest in line with the principles of the Circular Economy as determined by the Investment Adviser (IA), BlackRock assured. It would not invest in companies that are classified in the following sectors: coal and consumables; oil and gas exploration and production; and integrated oil and gas.

(GR12020, Page 6, Photo: Christo Anestev/Pixabay)