BlackRock has expanded its sustainable investment offering for UK Charities with the launch of the BlackRock Charities Growth & Income fund.
The fund extends BlackRock's current range of charity multi-asset funds, which include the Armed Forces Common Investment fund and Charifaith Common Investment fund, which represent combined client assets of £545m.
Managed by BlackRock's 15-member multi-asset strategies - diversified strategies investment team, the fund aims to provide long-term capital growth and a steady income distribution by taking a flexible approach and investing globally in a wide range of assets across equities, bonds, property and other alternative investments, including renewable energy.
BlackRock's sustainable investment policy is the core to the Charities Growth & Income fund, with screens that exclude securities that derive significant amounts of their revenue from certain sectors, including alcohol, armaments, gambling, high-interest rate lending, thermal coal and tar sands, and tobacco, among others.
In addition, the investment team considers environmental, social and governance (ESG) factors on a bottom-up basis as part of assessing the potential for return and as part of managing total portfolio risk.
This risk-aware, well diversified strategy has been launched as a new Charity Authorised Investment Fund (CAIF). This tax-efficient structure is exclusive to UK registered charities and offers additional VAT savings on the management fee plus increased regulatory protection from the FCA compared with traditional charity funds.
Gemma Gooch, Blackrock's Charities & Endowments Team comments: "Since 1987 we have been managing charity funds and are delighted to add another fund to our stable. The Fund seeks not only to address the growing demand from UK charities and endowments for sustainable investment options but also offers our clients the benefits of the new CAIF structure."