BlackRock (NYSE:BLK), the world's largest asset manager, has launched its largest equity exchange-traded fund (ETF) in Singapore to date. The iShares MSCI Asia ex-Japan Climate Action ETF, valued at $426 million, was launched on Monday and is aimed at investors looking to integrate low-carbon transition objectives into their portfolios. The ETF is based on Asian companies committed to reducing carbon emissions as part of the global transition towards renewable energy and sustainable infrastructure.
The fund has received anchor support from London and Hong Kong-based insurer Prudential (LON:PRU) PLC, one of the largest asset owners in Asia and a member of the Net Zero Asset Owners Alliance. Additional investments were made by a consortium including Singapore’s state investment company Temasek Holdings and insurer Singapore Life. Prudential's group chief investment officer, Don Guo, stated that investing in the ETF is consistent with their aspiration to facilitate a systematic green transformation across all sectors.
The ETF tracks the MSCI Asia ex-Japan Climate Action index, which includes the top 50% of companies in each Global Industry Classification Standard sector based on factors such as science-based targets, climate risk management and green business revenue. It is the third climate-action ETF launched by iShares, following similar funds in the U.S. and Japan launched in June.
Peter Loehnert, BlackRock APAC head of iShares and index investments, commented that the Asia Pacific is "the largest and fastest growing region for energy transition investment." He added that demand for iShares ETFs is growing globally as vehicles to align portfolio allocations and implement low-carbon transition goals.
The Monetary Authority of Singapore's assistant managing director Gillian Tan welcomed the successful launch of the ETF, adding that Singapore supports solutions that facilitate decarbonisation while meeting the investment and risk management needs of issuers, asset owners and investors in the region.
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