BlackRock ESG-focused Australian Bond Index (ESGABI) Fund

BlackRock Investment Management (Australia) has launched an unlisted ESG-focused Australian Bond Index (ESGABI) fund, benchmarked to a customised Bloomberg Barclays MSCI SRI ESG-Weighted Australian Aggregate Index.

The fund provides diversified, passive, low-cost access to the local fixed income market with enhanced ESG outcomes. It excludes tobacco, alcohol, gambling, military weapons, civilian firearms, nuclear power, adult entertainment, genetically modified organisms (GMOs) and fossil fuel reserves.

"We have reached an inflection point in sustainable investing. ESG has come to the forefront and can be implemented broadly across most asset classes without foregoing risk-adjusted returns," head of fixed income at BlackRock Australia Craig Vardy said.

"The ESG-focused Australian Bond Index fund is a passive investment strategy designed for ESG-aware investors seeking a core fixed income exposure to Australian-dollar securities."