BlackRock ESG Multi-Asset Fund

Better returns can be purposeful with BGF ESG Multi-Asset Fund

Better returns begin with purpose

BGF ESG Multi-Asset Fund seeks to deliver attractive returns through a strong focus on environment, social and governance (ESG) factors

An active, multi-asset and ESG-focused approach to investing has never been more critical.

There are two reasons.

One, ongoing regulatory pressures and greater focus on sustainability issues will drive stakeholder capitalism, creating efficient capital allocation and durable profitability, and in turn deliver long-term value for shareholders.

Two, bond and equity markets have traditionally tended to move opposite to each other. But market events of late have hurt both global stocks and bonds. The ability to invest in diversifying assets beyond a traditional 60/40 portfolio allocation and a dynamic, flexible approach to asset allocation is crucial for cushioning unpredictable market impact.

An active, multi-asset and ESG-focused approach to investing has never been more critical.

There are two reasons.

One, ongoing regulatory pressures and greater focus on sustainability issues will drive stakeholder capitalism, creating efficient capital allocation and durable profitability, and in turn deliver long-term value for shareholders.

Two, bond and equity markets have traditionally tended to move opposite to each other. But market events of late have hurt both global stocks and bonds. The ability to invest in diversifying assets beyond a traditional 60/40 portfolio allocation and a dynamic, flexible approach to asset allocation is crucial for cushioning unpredictable market impact.

The sustainable migration is underway

In the early stages of a tectonic shift of capital, investors moved their money into sustainable investments at six times the growth rate of traditional investments.¹ With assets globally now totalling US$4 trillion across all ESG categories², we believe this growth will continue and accelerate.

A new world of work, new sources of capital fueling market disruption, the global energy transition, and more active ownership, are themes companies need to navigate successfully in order to create long-term shareholder value. Greater focus on these issues will drive effective stakeholder capitalism, help companies achieve durable profitability, and create and sustain value over the long term.

Why a multi-asset portfolio is key

Most major asset classes have not been spared from recent market volatility, delivering poor returns year to date. This highlights the need for investors to look beyond a traditional 60/40 portfolio allocation, across a wide variety of assets, to access different patterns and sources of returns.

Flexible and dynamic allocation to a mix of assets including alternatives, gold and other non-conventional asset classes can provide better diversification, given they are typically lowly correlated to bonds and equities. A well-diversified multi-asset portfolio can better weather today’s unpredictable market environment and optimise returns.

Annual performance of selected asset classes (in USD)³

Why invest in BGF ESG Multi-Asset Fund?

Learn more about the features of the fund in this short video and how it seeks to deliver attractive returns in an uncertain world.

Seeks to Deliver Strong Performance

History of delivering top quartile performance within peer group*

ESG Integration

Adopts a unique triple aspect approach to integrate ESG factors into the fund

Flexible Asset Allocation

To manage risks and invest in global consumer trends to seek growth

A unique triple aspect approach to ESG investing

The BGF ESG Multi-Asset Fund seeks to deliver better risk-adjusted returns whilst driving positive change. It will only invest in companies and sovereign issuers that have better ESG scores and align with the values our clients care about most.

This is achieved through our unique triple aspect approach where we look at these three areas and integrate them simultaneously into the investment process:

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01 ESG Thematics

The fund increases portfolio diversification and drives positive change through ESG thematic investments, such as renewable energy and social housing.

In renewable energy for example,

Opportunities

• High and volatile fuel price globally will accelerate shift to clean energy
• Net-zero commitments will spur developments in clean energy infrastructure

Impact

• Powering homes and industry using clean energy and avoiding Co2 savings
• Alignment with UNSDGs 7 (Renewable and Clean Energy) and 13 (Climate Action)

02 ESG best-in-class

The fund builds portfolio resilience by only investing in issuers with an ESG rating^ of BBB and above. Those issuers that focus on wider stakeholders such as employees, customers, suppliers and local communities as well as shareholders are more likely to attract investment over the longer term.

03 Exclusionary screens

The fund has the potential to reduce risk and align with client values by implementing screens to avoid sectors that are considered harmful or more likely to court controversy which can impact value add.

To find out more, speak to your
financial advisers below

BGF ESG Multi-Asset Fund