In a significant move towards sustainable investments, BlackRock and the Singapore Exchange (SGX) have launched a sizable Climate Action Fund in Singapore. The fund, iShares MSCI Asia ex-Japan Climate Action ETF, with $426M in assets, is the largest equity ETF (exchange-traded fund) debut in Singapore. The fund's goal? To magnetize investments from across Asia into companies committed to reducing carbon emissions.
The iShares MSCI Asia ex-Japan Climate Action ETF is a financial tool tracking a select group of stocks. Essentially, it's a way to make money while following leaders in the green revolution.
The fund enjoys support from major entities, like insurance behemoth Prudential, Singapore's state investor Temasek, and digital insurance company Singlife.
The fund will closely monitor companies committed to slashing carbon emissions, thus aligning investors' interests with critical climate action goals.
Peter Loehnert, BlackRock's head of iShares and index investments in Asia-Pacific, underlined the burgeoning significance of the Asia-Pacific region in energy transition investments, and the enticing prospects for investors focusing on climate-related objectives.
The fund, reportedly charging a nominal annual management fee of 0.18%, will align with the MSCI Asia ex-Japan Climate Action Index. This is the third iShares ETF climate-building fund tracing an MSCI Climate Action Index.
The index offers information on the top 50% of companies in the global industry classification standard (GICS) sector, chosen based on factors including approved science-based targets, climate risk management, and revenue from eco-friendly businesses.
BlackRock closed Q2 this year with a staggering $9.4T in assets under management. Alongside its climate-conscious investments in the US and Asia, the New York-based firm recently partnered with the New Zealand government to inaugurate a $1.22B climate infrastructure fund.
This fund will invest in renewable technologies like solar, wind, green hydrogen, and battery storage in New Zealand.