BlackRock has expanded its multi-asset MyMap fund range with the launch of the MyMap 5 Select ESG fund, which will incorporate ESG themes such as climate change, natural resources, pollution and waste, social opportunities and corporate behaviour.
As of April the new fund's portfolio, which is made up of iShares and index products, allocates 33% to bonds, 64% to stocks and 3% to other assets. It targets volatility of 8% to 11% and charges an OCF of 0.17%.
BlackRock, which has faced intense criticism from environmental groups in recent years, said the launch demonstrated its commitments to "making sustainability its standard for investing", as outlined by CEO Larry Fink in January.
The asset management giant also pointed to increased demand for sustainable investment funds, as well as the apparent outperformance of ESG thematics amid recent market volatility.
Head of UK advisers and platforms at BlackRock Heather Christie said the ongoing coronavirus pandemic has "triggered a widespread reassessment of the way we live our lives", which has seen investors seek out "resilient sources of return as they increasingly seek to build portfolios that match their sustainable investing goals".
She added: "Our recent research has demonstrated that sustainable strategies have fared well during this period of heightened volatility from both a performance and demand perspective and we see this being a long-term trend.
"Adding an ESG focused fund into the MyMap range, continues our commitment to providing choice and, means people can still benefit from being invested in a low-cost multi-asset index product but can now do so in a sustainable way."