Key Takeaways
- • BlackRock has expanded its OCIO offering by partnering with PCG Impact, the advisory arm of Amsterdam-based Phenix Capital Group, giving clients access to PCG Impact's database of roughly 3,000 pre-vetted impact managers.
- • According to CIO Cherry Muijsson, many BlackRock OCIO clients already allocate between 2% and 10% of their portfolios to impact managers, and demand for tailored impact allocations is growing.
- • Muijsson says impact allocations need not sacrifice returns, noting that many impact opportunities already offer market-rate returns.
- • BlackRock retains responsibility for strategic asset allocation and financial and operational due diligence, with impact due diligence handled alongside PCG's expertise.
- • Muijsson frames impact integration as a "three-dimensional portfolio construction challenge," with Dutch pension reforms and the shift toward CDC models creating an opening for impact allocations.
Summary
BlackRock is deepening its outsourced chief investment officer (OCIO) business by giving clients greater access to impact managers, according to an interview with Cherry Muijsson, CIO for BlackRock's EMEA pensions team within Multi-Asset Strategies and Solutions (MASS), published by Net Zero Investor. The move follows a summer partnership with PCG Impact, the advisory arm of Amsterdam-founded impact investing specialist Phenix Capital Group. Through the collaboration, BlackRock's OCIO clients can draw on PCG Impact's database of around 3,000 impact managers that have already undergone due diligence, and benefit from PCG's advisory and reporting capabilities.
Muijsson said institutional asset owners are demanding more customised strategies rather than off-the-shelf funds, citing rising standards on proxy voting, ESG disclosure and climate-risk management. She noted that nearly 80% of asset owners consider a manager's proxy voting record in manager selection, according to PRI research. Recent examples cited include the Taiwan Bureau of Funds' $3bn climate transition infrastructure mandate, split among five managers, and People's Pension's shift of a £28bn portfolio from pooled funds to segregated mandates.
The collaboration allows clients to pursue secondary objectives alongside financial returns. Muijsson said some clients have social targets such as affordable housing or healthcare access, while others focus on reducing global warming. Metrics may include renewable energy generated, measured in megawatts or gigawatts, and clients receive agreed metrics on a regular basis throughout an allocation's life. Muijsson described the approach as a "three-dimensional portfolio construction challenge" in which asset classes are weighed against impact objectives as well as risk and return. Infrastructure, including transition infrastructure and renewables, was highlighted as a particularly relevant asset class.
Muijsson linked the timing to structural change in the Dutch pensions market, where major defined benefit funds are transitioning toward CDC models with target-date style glidepaths. She suggested this could reduce the role of LDI hedging for younger cohorts and lift risk-return appetite, creating room for impact allocations. She also stressed that BlackRock remains responsible for OCIO advice and strategic asset allocation, leading fund selection, and handling financial and operational due diligence.
The article also notes that BlackRock has recently lost some prominent pension mandates, while winning others, including the £21bn British Airways pension portfolio, the £8.8bn Royal Mail pension plan and the €27bn Stichting Shell Pensioenfonds in 2024.
Muijsson said institutional asset owners are demanding more customised strategies rather than off-the-shelf funds, citing rising standards on proxy voting, ESG disclosure and climate-risk management. She noted that nearly 80% of asset owners consider a manager's proxy voting record in manager selection, according to PRI research. Recent examples cited include the Taiwan Bureau of Funds' $3bn climate transition infrastructure mandate, split among five managers, and People's Pension's shift of a £28bn portfolio from pooled funds to segregated mandates.
The collaboration allows clients to pursue secondary objectives alongside financial returns. Muijsson said some clients have social targets such as affordable housing or healthcare access, while others focus on reducing global warming. Metrics may include renewable energy generated, measured in megawatts or gigawatts, and clients receive agreed metrics on a regular basis throughout an allocation's life. Muijsson described the approach as a "three-dimensional portfolio construction challenge" in which asset classes are weighed against impact objectives as well as risk and return. Infrastructure, including transition infrastructure and renewables, was highlighted as a particularly relevant asset class.
Muijsson linked the timing to structural change in the Dutch pensions market, where major defined benefit funds are transitioning toward CDC models with target-date style glidepaths. She suggested this could reduce the role of LDI hedging for younger cohorts and lift risk-return appetite, creating room for impact allocations. She also stressed that BlackRock remains responsible for OCIO advice and strategic asset allocation, leading fund selection, and handling financial and operational due diligence.
The article also notes that BlackRock has recently lost some prominent pension mandates, while winning others, including the £21bn British Airways pension portfolio, the £8.8bn Royal Mail pension plan and the €27bn Stichting Shell Pensioenfonds in 2024.
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