BlackRock has launched a new thematic fund, the BGF Circular Economy Fund, which aims to drive investment in businesses already benefiting from, or contributing to, the transition to a circular economy.
The fund, launched on October 2, has been established in partnership with the Ellen MacArthur Foundation, which is providing the investment firm with expert insights and guidance on circular economy principles and practices.
The fund was launched with $20 million seed capital from BlackRock.
“If the world is going to consume resources in a more sustainable way, demand will change,” says Evy Hambro, global head of thematic and sector investing at BlackRock. "I saw [Dame] Ellen [MacArthur] speak a year ago and it was a lightbulb moment.
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Evy Hambro, |
"There are two conditions necessary for asset managers to be successful here. They need access to the right products and they need to bring in house the knowhow to achieve this. We have structured a product to capture the opportunity.”
BlackRock will use information and insight from the foundation to inform the investment methodology of the fund. The foundation takes a small pass-through fee from the fund for the input, amounting to around 2% of its overall funding.
