BlackRock has launched the BlackRock Charities Growth & Income Fund, expanding its sustainable multi-asset investment offering for charities in the UK.
The fund utilises a flexible approach, by investing globally in a wide range of assets across equities, bonds, property and other alternative investments, including renewable energy. The aim is to provide long-term capital growth and a steady income distribution.
It will also conform to BlackRock’s sustainable investment policy, and will exclude securities that derive significant amounts of their revenue from controversial sectors such as alcohol, armaments, gambling, high-interest rate lending, thermal coal and tar sands, and tobacco. In addition, the fund has also been launched as a new Charity Authorised Investment Fund (CAIF), a tax-efficient structure is exclusive to UK registered charities. It provides additional VAT savings on the management fee plus increased regulatory protection from the FCA compared with traditional charity funds.
The fund will be managed by its Multi-Asset Strategies - Diversified Strategies investment team, which has 15 members and has managed charity multi-asset funds for the past 10 years. They will consider environmental, social and governance (ESG) factors on a bottom-up basis both as part of assessing the potential for return and as part of managing total portfolio risk.
The new launch also extends BlackRock’s range of charity multi-asset funds. These include the Armed Forces Common Investment Fund and Charifaith Common Investment Fund which represent combined client assets of £545m.
Sarah Melvin, BlackRock’s Head of UK was pleased with the launch of the new fund and it felt it showed how the asset manager could match the needs of a wide range of clients.
She said: “Partnering with charities and endowments is a significant part of our history in the UK and one of our most important client segments. We strive to offer investment strategies and funds that match the distinct needs of non-profits helping them to better fulfil their social mission.”
Gemma Gooch, Blackrock’s Charities & Endowments Team added that clients would also benefit from the fund’s structure.
She said: “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.“
BlackRock is headquartered in New York, and manages approximately $6.52 trillion in assets on behalf of investors worldwide.
