SGX, BlackRock launch climate action ETF

This is the largest equity ETF rolled out in the country.

SGX Group and BlackRock listed iShares MSCI Asia ex Japan Climate Action exchange-traded fund (ETF) that will allow investors to access companies in Asia, excluding Japan, that aim to reduce carbon emissions.

In a statement, SGX Group said the ETF follows the MSCI AS Asia ex Japan Climate Action Index, a part of the suite of MSCI Climate Action Indexes which select the top 50% of companies in each global industry sector based on their carbon intensity and commitments including science-based target setting, green revenues or opportunities, and climate risk management.

This is the largest equity ETF launched in the Lion City with assets under management of around $580.3m (US$426m) at launch.

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“With the market and investors signalling their readiness for it, we have been working in partnership with BlackRock and MSCI to create a new global ecosystem of climate-related instruments such as this ETF and the climate action derivatives that were launched earlier this year,” said Michael Syn, senior managing director and head of Equities at SGX Group.

“By providing these tools, we are supporting investors in building a diversified portfolio of climate-conscious assets, enabling them to do their part for the transition while benefiting from the potential financial upside,” Syn added.

The funds will be managed by BlackRock and anchored by Prudential.

US$1 = $1.36