BlackRock has launched a green bond index fund in response to the growing demand from investors, the US company has announced.
The Green Bond Index fund will be managed by Ashley Schulten, who is head of climate solutions for fixed income, alongside Citywire + rated portfolio manager Darren Wills.
They have a combined experience of over 35 years in the industry and will be supported by the company's wider global fixed income team.
The Ucits-compliant fund will offer investors exposure to fixed income securities which are issued to funds with direct environmental benefits.
The fund will aim to deliver investment performance which reflects the total return of the Bloomberg Barclays MSCI Global Green Bond Index.
BlackRock will draw on its climate research knowledge and experience of managing green bonds mandates.
In February 2015, the firm launched BlackRock Impact, which is a global platform catering to investors with social or environmental objectives.
Commenting on the launch, Schulten said: 'We see a strong interest in green bonds from clients we service as they seek to participate in climate friendly and environmentally beneficial investments without making major changes to sector allocation or liquidity risk in their holdings.'
Schulten said client interest varies from large institutional clients to family offices and retail investors.