BlackRock has expanded its sustainable investment offering for charities in the UK with the launch of the BlackRock Charities Growth & Income Fund.
Managed by BlackRock’s 15-strong Multi-Asset Strategies – Diversified Strategies investment team, the Charities Growth & Income Fund aims to provide long-term capital growth and a steady income distribution. It will do this 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.
It extends BlackRock’s current range of charity multi-asset funds, which include the Armed Forces Common Investment Fund and Charifaith Common Investment Fund.
Sarah Melvin, Head of UK, 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.”
BlackRock’s sustainable investment policy has screens that exclude securities deriving significant amounts of their revenue from certain sectors, including alcohol, armaments, gambling, high-interest rate lending, thermal coal and tar sands, and tobacco. The investment team also considers environmental, social and governance factors when assessing the potential for return and as part of managing total portfolio risk.
The fund has also been launched as a new Charity Authorised Investment Fund (CAIF). A tax-efficient structure, CAIFs are exclusive to UK registered charities and offer 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, commented:
“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.”
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