“Client demand: Swedish pension fund commits $100million to BlackRock’s emerging markets impact fund” – Impact Alpha – May 10, 2018

In an article published on May 10, 2018 ImpactAlpha reported that “Swedish pension fund AP1 has prodded BlackRock to create an emerging-markets equity fund ‘that takes into account measurable social and environmental impact without compromising on financial return.’

The deal sends a number of signals: That environmental, social and governance, or ESG, factors can provide insights in emerging-markets investing; that algorithmic stock-picking technology can provide insights into sustainability as well as investments; and that giant BlackRock has the capacity to spin up new sustainable investing options, at least when a major client is writing a nine-figure check. The AP1 fund managed 323 billion Swedish krona ($37 billion) in assets as of July 2017.

BlackRock has been expanding its sustainable investing options, especially in light of CEO Larry Fink’s public call for corporations to embrace a broader social purpose.  ‘We are pleased to have the capabilities to deliver this solution for AP1, and respond to the sentiment being expressed by investors, especially in the Nordic region, to expand the sustainable investment universe,’ said BlackRock’s Debbie McCoy. The fund is also open for investment to other European investors.”

Registered subscribers may read the article on the ImpactAlpha internet site.