BlackRock low-carbon strategies attract $1 billion from CalSTRS Monday, April 12, 2021
Laxman Pai, Opalesque Asia:
California State Teachers Retirement System, West Sacramento, invested $1 billion in two new low-carbon transition readiness exchange-traded funds managed by BlackRock.
A press release from the American multinational investment management corporation based in New York City said that the two funds raised more than $1.5 billion, highlighting the increased focus on climate-aware strategies from global institutional investors.
A consortium of global institutions invested in the funds, including the California State Teachers Retirement System (CalSTRS), Temasek, Sura Asset Management, Varma Mutual Pension Insurance Company, Profuturo Group, FM Global, and RenaissanceRe.
BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and the
BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) invest in large- and mid-cap companies, tilting toward those companies that BlackRock believes are better positioned to benefit from the transition to a low-carbon economy.
The two funds raised more than $1.5 billion, highlighting the increased focus on global institutional investors’ climate-aware strategies. The day-one investments into LCTU make it the largest ETF launch ever.
“The energy transition is central to all companies’ growth. Winners and losers will emerge in every sector based on each company’s ability to adapt, innovate and pivot their strategies toward the low-carbon economy,” said Larry Fink, Chairman and CEO of BlackRock. “Many of our clients share this conviction, and we are helping them be at the forefront of the energy transition through next generation climate analytics and sustainable strategies. We believe that this com