BlackRock has removed ESG from the name of some of its funds ahead of the European Securities and Markets Authority fund naming guidelines.

The firm has removed “ESG” from its iShares MSCI ESG Screened UCITS ETF range and BSF Systematic ESG World Equity Fund which total 56 strategies with $51bn AUM. The ETF range will continue to be classified Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

ESMA naming rules come into effect on 21 May requiring EU funds to meet enhanced criteria to include ESG and other sustainability-related terms in their names.

In a note to clients Blackrock said, ”To adapt to these changes and refresh our European product range, we consulted with a significant number of clients including large distributors, product selectors and portfolio managers to seek their views and understand their preferences. Based on this feedback, we have focused on providing clients with transparency and, where relevant, retaining investment methodologies consistent with their preferences.”

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