BlackRock launched the iShares MSCI Asia ex-Japan Climate Action ETF on the Singapore Exchange at $426 million, anchored by insurer Prudential PLC and with investments from a consortium including Singapore’s S$382 ($279.5 billion) state investment company Temasek Holdings and insurer Singapore Life, according to a statement Sept 14.
Prudential is headquartered in London and Hong Kong, and focuses its business operations in Asia and Africa. Its assets are managed by its asset management arm Eastspring Investments, which has $228 billion in AUM.
“As anchor investor of the iShares MSCI Asia ex-Japan Climate Action ETF, we are investing in companies demonstrating transition leadership, consistent with our aspiration to facilitate a systematic green transformation across all sectors,” said Don Guo, group chief investment officer of Prudential, in the statement.
“By strengthening the climate resilience of our investment portfolios, Prudential contributes to the long-term sustainability of the region,” Guo said.
The ETF tracks the MSCI Asia ex-Japan Climate Action index, which includes the top 50% of companies in each Global Industry Classification Standard sector based on factors such as science-based targets, climate risk management and green business revenue.
The fund is also the third climate-action ETF launched by iShares after the iShares Climate Conscious & Transition MSCI USA ETF and iShares MSCI Japan Climate Action ETF were launched in June in the U.S. and Japan, respectively.
The launch is the largest equity ETF launch in Singapore to date and is priced with an annual management fee of 0.18%, the statement said.
