BlackRock launches ESG bond strategy for Scottish Widows

Investing in investment grade bonds

BlackRock has launched a Global Corporate ESG Insights Bond Fund, which has been seeded with £500m by one of Scottish Widows’ multi-asset funds.

The fund is managed by BlackRock’s index fixed income team and will invest in global investment grade bonds, whilst seeking to achieve certain ESG related aims. It will have a broadly similar risk/return level as the Bloomberg Global Aggregate Corporate Index GBP Hedged.

This is the second collaboration with Scottish Widows which also seeded the BlackRock Authorised Contractual Scheme (ACS) Climate Transition World Equity Fund that launched in August 2020.

Sarah Melvin (pictured), head of UK at BlackRock, said: “Increasingly, clients are looking for innovative investment solutions that incorporate climate change-related risks and opportunities. The [BlackRock Global Corporate ESG Insights Bond Fund] reflects the growing demand from UK defined contribution providers seeking to help members incorporate bespoke ESG considerations into their retirement savings, drawing on the increasing sophistication of ESG data and portfolio construction capabilities.”