The global credit strategy, which aims to address real world issues such as affordable housing, community development and climate has the backing of Gjensidige Pensjonsforsikring, and TIAA.
Nuveen has announced the launch of a new impact credit fund which has raised approximately $170m (€157m) from a range of global investors. The global credit strategy, which focuses on reducing social inequality and tackling the negative effects of climate change, is the fourth in Nuveen’s fixed income impact range.
“The strategy will seek to not only consistently outperform the global corporate bond market on an excess and risk-adjusted basis, but also aim to lower the cost of capital for environmental and social projects by funding initiatives through the easily accessible, liquid public fixed income markets,” said Jessica Zarzycki, Nuveen’s portfolio manager of the global credit impact strategy.
Having attracted a range of investors, including Gjensidige Pensjonsforsikring – a life and pensions subsidiary of Norwegian life insurance company Gjensidige Forsikring – and co-investment from Nuveen’s parent company, TIAA, the strategy represents the latest addition to Nuveen’s €380bn global fixed income range.
The fund says it will provide investors with access to investment grade corporates and other credit sectors and seeks to address real world issues such as access to affordable housing and community development, as well as environmental issues ranging from climate change to the regeneration of natural resources.
Nuveen said investments in the portfolio will include exclusive use of proceeds benefiting environmental or social outcomes, and from issuers with the commitment and an ability to deliver transparent impact reporting.
Speaking to Impact Investor, Sasha Miller, Nuveen’s head of responsible investment said: “As we look to grow our footprint, we’re in the development stage for further impact strategies across our $1.2trn platform. We look forward to expanding our global offering and working on new partnerships with like-minded investors.”
Nuveen made what it calls its first impact investment in the 1980s and has since invested approximately $600m in direct and indirect private equity capital in over 200 portfolio companies, in alignment with the UN Sustainable Development Goals (SDGs).
Impact strategy
In the asset manager’s 2023 global fixed income impact investment report, the firm said it has focused more on funding portfolios for “impact only implementations”, after a marked increase in interest.
Prior to this latest launch, Nuveen has invested in several fixed income impact strategies including the World Bank’s Rhino Bond, the Seychelles Blue Bond, Barbados Blue Bond and, most recently, the Amazon Reforestation Bond.
Åge Sætrevik, chief investment officer at Gjensidige Pensjonsforsikring, said: “We had been searching for a like-minded partner for our global impact credit allocations long before launching sustainable pension profiles in Norway two years ago with the goal of broadening our SFDR Article 9 offering and having a positive world impact. By partnering with Nuveen to invest in the global credit impact strategy, we are providing our clients with innovative, sustainable pension saving options.”
