Fund in focus - Blackrock Diversified ESG Growth Fund

Introducing our new investment option: Blackrock Diversified ESG Growth Fund

We have added the BlackRock Diversified ESG Growth Fund, to the investment menu, expanding your ESG investment options on the Centuria LifeGoals Investment Bond. This new addition joins the Pendal Sustainable Balanced Fund and Alphinity Sustainable Share Fund. In this article, we provide an overview of BlackRock’s ESG approach.

BlackRock is a global asset manager acting as a fiduciary for millions of investors. The fund comprises of various asset classes, with BlackRock evaluating the ESG investment approach of the underlying funds and classifying them as “Neutral Assets,” “ESG Assets,” or “Non-ESG Assets.” Neutral assets, such as cash and Australian or US-linked bonds, are not considered sensitive or controversial.

For asset class exposures not invested in neutral assets, at least 80% of the fund’s remaining investment is through underlying funds on the BlackRock Sustainable Investing Platform, which BlackRock classifies as ESG Assets. The BlackRock Sustainable Investing Platform includes a suite of products managed by the BlackRock Group that use ESG data as a portfolio construction input. Some of these products also aim to achieve long-term sustainability outcomes according to each of their specific objectives. To be included on the BlackRock Sustainable Investing Platform, ESG assets must meet the requirements of one of four categories determined by BlackRock: “Screened,” “Uplift,” “Thematic,” or “Impact.”

All underlying funds classified as ESG Assets have “exclusionary screens” that limit or exclude direct investments in corporate issuers associated with “controversial weapons, nuclear weapons, civilian firearms, tobacco, thermal coal, and United Nations compact violators.” These exclusionary screens are subject to sector classifications and/or revenue thresholds. In some cases, ESG Assets apply additional screens and may seek additional long-term sustainability outcomes (in the case of Uplift, Thematic, and Impact categories).

Up to 20% of the fund’s assets (after excluding neutral assets) may be invested in underlying funds not included in the BlackRock Sustainable Investing Platform, which may be exposed to securities that would be excluded by a sustainable investing approach (Non-ESG Assets). BlackRock will typically only invest in Non-ESG Assets only when an ESG or neutral asset is unavailable or may negatively impact the fund’s ability to meet its investment objective.

Discover the key features and target asset allocations of Centuria Life’s ESG investment options: