Mexican ESG ETF rakes in $450 mln in first two months -BlackRock

NEW YORK, Oct 6 (Reuters) - Mexico’s first-ever local currency sustainable exchange-traded fund (ETF) has raked in some $450 million in its first two months, making it one of the quickest growing ETFs of the year, BlackRock said on Tuesday.

Inflows into the iShares ESG MSCI Mexico ETF , focused on Mexican companies with strong environmental, social and governance markers, reflected growing demand from institutional investors for sustainable investment options, the world’s largest asset manager said.

“The whole process of building this product in Mexico was working with MSCI and the retirement fund administrators to be able to introduce investing in ESG in their portfolios. That’s how the product came about,” said Armando Senra, head of iShares Americas in an interview.

The ETF was launched on July 29 and retirement fund administrators or afores, as they are locally known, were given the green light to invest in it in August.

“In our role as institutional investor, it is encouraging to have better investment vehicles that facilitate the adoption of ESG criteria,” Antonio Sibaja, executive director of investment strategies at retirement fund administrator Profuturo, said in a statement.

The numbers also reflect wider inflows into Mexico’s stock markets, with flows into Latin America’s second largest economy climbing to a six-week high last week, according to flow tracker EPFR, which added that a soft peso and low valuations offered a chance to benefit cheaply from any economic rebound. (Reporting by Rodrigo Campos; editing by Karin Strohecker and Bernadette Baum)

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