BlackRock has launched an Impact Bond Fund, a mutual fund that it says aims to generate competitive financial returns while investing in measurable social and environmental outcomes.

The fund will be the first broadly available US fixed income fund launched by BlackRock since the formation of BlackRock Impact - the firm’s $200 billion sustainable investing platform – in February 2015.

It invests in a portfolio of fixed income including corporate bonds of companies with positive aggregate societal impact outcomes such as corporate citizenship, high impact disease research and greenhouse gas emissions. 

“We believe this new investment strategy will address a growing demand for fixed income impact solutions in the public markets,” said Scott Radell, managing director and portfolio manager of the fund.