Press Releases

BlackRock builds sustainable product range with fixed income ETF

Jan 13, 2016

BlackRock builds sustainable product range with fixed income ETF


London, 11 January 2016 – BlackRock has launched a sustainable bond exchange-traded fund in response to growing demand for investments that incorporate environmental, social and governance (ESG) factors. The fund is an extension of the firm’s ESG and impact product set that includes active funds, index funds and ETFs.


Assets in sustainable investing grew 61% globally from 2012 to 2014 to USD$21.4 trillion1. Using ETFs can be a transparent and cost-effective way to build ESG-driven portfolios.


The iShares Euro Corporate Bond Sustainability Screened 0-3yr UCITS ETF (SUSE) tracks the Barclays MSCI Euro Corporate 0-3 year Sustainability ex-Controversial Weapons Index, which includes short-term Euro-denominated investment grade bonds issued by corporates with an ESG rating of BBB or above, as determined by MSCI. Companies are rated on 37 different ESG factors including carbon emissions. Additionally, the index excludes debt from companies that are involved with controversial weapons, including cluster bombs, land mines and chemical and biological weapons. Bonds included in the index are issued by corporates from across Europe, the Americas and Asia Pacific.


Hannah Skeates, iShares Global Head of Sustainable Investments at BlackRock, commented: “Sustainable investing is going mainstream and it is no longer a niche pursuit. Investors are placing greater emphasis on transparency and the ESG practices of companies, regardless of whether they are investing in the company’s equity or debt. ETFs are one of the investment products of choice because they are easy to use and investors can see the process and methodology in selecting social and environmental characteristics, all implemented in a single trade.


“This is our first move into sustainable bond ETFs. It complements our European-domiciled sustainable equity ETFs, which has amassed almost USD$500m2. Combined with the active and index funds within the BlackRock range, investors now have more choice for expressing their traditional investment views whilst taking into account the impacts of investment choices.”


This fund is physically-replicating and has a total expense ratio of 0.25%.


BlackRock currently manages more than USD$200 billion3 of assets across ESG screened and impact funds globally. iShares, BlackRock’s ETF business, is a global leader in sustainable ETF investing, and offers a range of developed and emerging equity, as well as corporate bond ETFs.


To learn more about how ETFs work, visit the education section of the iShares website or watch these 3 minute videos:


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1 Source: The Global Sustainable Investment Alliance “2014 Global Sustainable Investment Review”
2 Source: BlackRock, as at December 2015
3 Source: BlackRock, as at December 2015

 

Media contacts:

Timi Oni 

+44 (0)20 7743 1592

Marc Bubeck

+44 (0)20 7743 3068

 

About BlackRock BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At September 30, 2015, BlackRock’s AUM was $4.506 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 September 30, 2015, the firm had approximately 12,900 employees in more than 30 countries and a major presence in key 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 About iShares iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of September 30, 2015, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.[1] [1] Based on $4.506 trillion in AUM as of 30 September 2015. Regulatory Information BlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000, has issued this document for access by Professional Clients only and no other person should rely upon the information contained within it. For your protection, calls are usually recorded. iShares plc, iShares II plc, iShares III plc, iShares IV plc, iShares V plc, iShares VI plc and iShares VII plc (together 'the Companies') are open-ended investment companies with variable capital having segregated liability between their funds organised under the laws of Ireland and authorised by the Central Bank of Ireland. For investors in Austria The funds mentioned in this document are registered for public offer in Austria. The Sales Prospectuses for the Companies, Key Investor Information Document and other documents as well as the annual and semi-annual reports have been published in Austria and are available free of charge from UniCredit Bank AG Vienna Branch, Julius Tandler Platz 3, 1090 Vienna, Austria, the Austrian paying and information agent and are also available on the website www.ishares.com. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. The Companies intend to fulfil the requirements for treatment of all of their sub-funds as reporting funds. Therefore the Companies have an Austrian tax representative who calculates the Austrian Deemed Distributed Income figures once a year and files an electronic tax return with the Austrian Control Bank. However, it cannot be guaranteed that the requirements will be met in the future. The Companies reserve the right to give up the reporting fund status and to not undertake such tax filings. For investors in Finland The funds mentioned are registered for public distribution in Finland and are authorised by the Finanssivalvonta (Fiva), the Financial Supervisory Authority (FIN-FSA), in Finland. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. This document is strictly confidential and may not be distributed without authorisation from BlackRock Advisors (UK) Limited. For investors in France Any subscription for shares in a sub-fund of one of the companies will be carried out according to the conditions specified in the full Prospectus, Key Investor Information Document, the French Addendum and in the Supplements of Companies as the case may be. These documents can be obtained by contacting the paying agent of the Company: BNP Paribas Securities Services, 3 rue d'Antin, 75002 Paris, tel: 00 33 1 42 98 10 00 or by visiting the French part of the site www.iShares.eu. The companies are undertakings for collective investment in transferable securities (UCITS) governed by foreign laws and approved by the Financial Regulator in the home state as a UCITS complying with European regulations. 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