BlackRock has introduced its first ESG liquid alternative strategy, the Systematic ESG Equity Absolute Return Fund (SEEAR), which aims to provide investors with positive absolute returns with limited correlation to market movements, consistent with ESG-focused investing.
According to the 2021 Global Hedge Fund Benchmark Study, there has been a growing appetite among investors for sustainable and ESG investment strategies, and nearly 60% of hedge fund investors have allocated, or intend to allocate, ESG-focused funds in the next 12 months.
BlackRock’s Systematic Active Equity team seeks to identify the ESG attributes driving company returns through a combination of proprietary ESG research and alternative data, to deliver a portfolio that aims to achieve attractive absolute returns and be resilient in different market environments.
The Fund’s data-driven approach allows it to evaluate thousands of companies to uncover sustainable characteristics that also drive financial performance. The fund is managed by BlackRock’s Systematic Active Equity team, which is one of the pioneers of quantitative investing, with more than 35 years of experience in conducting innovative research to deliver differentiated results for clients.
Nicolas Nussbaum, Head of Hedge Funds and Liquid Alternatives for EMEA at BlackRock, says: “Investors increasingly need strategies and options that allow them to integrate sustainability across their portfolio while seeking resilient and diversified returns. SEEAR is one of the first funds of its kind in the market that meets client demands for a portfolio of liquid alternatives advanced by E, S, and G views.”
ESG Integration in the Fund
The Fund takes ESG-related characteristics into account when determining whether an investment is appropriate for the Fund. As part of its ESG framework, the Fund will seek to apply BlackRock’s benchmarks, which eliminate companies involved in activities such as controversial weapons, thermal coal, tar sands, tobacco and civilian firearms, along with companies that violate the United Nations (UN) Global Compact.
In addition, the investment team identifies prospective ESG measures and non-financial data that go beyond publicly disclosed corporate data and third-party scores to classify its research into four areas:
Risk mitigation insights that seek to identify corporate hurdles, such as ESG-related controversies.
Human capital insights that reflect the impact of employee well-being on engagement and productivity.
Social impact insights that focus on social outcomes that may also affect financial results
Transition perspectives that identify how companies are preparing for the net zero emissions economy.
The Fund is classified as Article 8 under the European Union’s Sustainable Finance Disclosure Regulation (SFDR). BlackRock expects 70% of its fund launches and repositionings in Europe this year to meet Article 8 or 9 requirements.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Funds&MARKETS, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Spain Scores Better than its European Neighbors in ESG
Despite being a universe of rising assets, the war in Ukraine and the withdrawal of stimulus by central banks has...
Tourism Revenues in Morocco Started to Increase
Tourism revenues amounted to $960,000 (9.7 MMDH) at the end of March 2022 after the context of tourism recovery. Prior...
Tenuta Liliana Vineyard Opens Up to Popular Shareholding on CrowdFundMe
The newly built winery of Tenuta Liliana was created inside a former tuff quarry, reclaimed and completely regenerated, and houses...
Avalanche Price Forecast: AVAX Forms a Dangerous Pattern
In the four-hour chart, the AVAX price has been moving in a tight range over the past few days. A...
First Closing of €95M for Bio, Indaco’s New Fund Dedicated to Biotech and Pharma
Indac's new fund, Indaco Bio is focused on Italy, but will not lack significant room for investments abroad, particularly in...
Cannabis2 weeks ago
Why the Cannabis Market Has Growing Investment Prospects
Featured2 weeks ago
Understanding the Fed’s Rate Hike: the Long Term Goal of 2.0% Inflation
Business2 weeks ago
These Are the Top 5 Lithium Stocks to Own Right Now
Crypto2 weeks ago
Kraken Opens a Waiting List for the Upcoming NFT Marketplace