Asset management giant Blackrock has rolled out a series of ESG multi-asset funds in Hong Kong.
They are among the first fund of funds that invests into ESG ETFs recognised by the Securities and Futures Commission (SFC).
The Blackrock ESG Flex Choice Series comprises three sub-funds with different risk levels: Blackrock Global Funds (BGF) ESG Flex Choice Cautious Fund, BGF ESG Flex Choice Moderate Fund, and BGF ESG Flex Choice Growth Fund.
Each of the sub-funds offers three different share classes, delivering a total of nine possible investment options to investors.
“[The different combinations] help [investors] to achieve [their] financial planning and retirement goals amidst changing personal needs, life stages and risk tolerance levels,” said the asset manager.
“[Investors] can adjust [their] investment portfolio at any time to adapt to [their]changing financial needs and risk tolerance levels at different stages of life.”
The different share classes are A2 accumulation, A6 distribution, and A10 distribution, which cater to various income needs.
Fund allocation
The series aims to integrate ESG principles into its investment approach to discover long-term winners with sustained profitability, in line with the long-term goals of retirement planning, according to the product brochure.
The multi-asset funds allocate to equity, fixed income funds and ETFs, with over 7,000 underlying securities on average.
The Cautious Fund has a target five-year annualised volatility of 3%-to-5%, and allocates 34% of its AUM in investment grade corporate bonds, 26% in government bonds, and 13% in US equity.
The Moderate Fund’s target five-year annualised volatility is between 6% and 10%, and the top allocation is to US equity (37%), followed by investment grade corporate bonds (20%), and government bonds (9%).
The most aggressive fund, the Growth Fund, achieves a target 5-year annualised volatility of 10%-to-15% by investing almost half of its AUM in US equity (49%), followed by 10% in Europe ex UK equities, and 8% investment grade corporate bonds.
The fund is only available on the Standard Chartered Bank platform for now, said Blackrock.
For more insight on asset and wealth management in Asia, please click on www.fundselectorasia.com
