Fund Solutions

BlackRock Transition Fund to Invest in Materials

The world’s largest asset manager, BlackRock, has designed an active fund that aims to provide exposure to the materials needed to facilitate a global net zero transition. The BlackRock Global Funds (BGF) Brown to Green Materials Fund will invest at least 80% of its total assets in materials that are essential to the transition and opportunities created by the decarbonisation of those materials. “A low-carbon transition sees the global economy moving from an energy system that is fossil fuel and carbon-intensive, to one where the critical inputs are materials and metals,” said Olivia Markham, Managing Director and Portfolio Manager at BlackRock, adding that the fund is expected to provide “significant value-creation opportunities for investors by targeting transitioning companies involved in metals and mining, chemicals, steel, and construction materials”. The BGF is classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR). Evy Hambro, BlackRock’s Global Head of Thematic and Sector Investing, said: “As transition materials companies prepare for significant growth, many are also focusing on reducing their own emission intensities. We expect to see a re-rating for materials companies that best navigate a transition. We’ve created the BGF Brown to Green Materials Fund to provide clients with exposure to this significant investment opportunity.” Earlier this month, BlackRock launched a fundraiser for the Global Renewable Power Fund IV, which will target opportunities across wind and solar to battery storage, transmission, and sustainable mobility. 

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