Nuveen, the $1.2tn global asset manager, has launched a Global Credit impact strategy with the aim of generating long term returns while seeking to create a direct, measurable social and environmental impact.
It has been launched with investment around $170 million from a range of global investors, including Gjensidige Pensjonsforsikring and Nuveen’s parent company TIAA.
The Global Credit impact strategy, which is the latest in a series of launches from Nuveen’s $413 billion fixed income platform, draws upon the firm’s deep sector expertise and long history of managing fixed income portfolios focused on sustainability.
It will seek to provide investors with access to investment grade corporates and other credit sectors designed to deliver alpha and total return. Investments in the portfolio will include exclusive use of proceeds benefiting environmental or social outcomes, and from issuers with commitment and an ability to deliver transparent impact reporting. It will aim 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 highlighted its proprietary impact investing framework and its proactive engagement with issuers. The framework, which was established in 2007, identifies impact investments across global fixed income markets based on a range of direct and measurable criteria.
The strategy will be co-managed by portfolio manager Jessica Zarzycki and Stephen Liberatore, head of fixed income impact.
Anders Persson, CIO of Global Fixed at Nuveen, said: “Growing our fixed income platform and specialist range are cornerstones of our continued international expansion as a truly global asset management business. Nuveen has a deep history of being at the forefront of product innovation, from our founder John Nuveen pioneering the municipal bond market as a means of financing US infrastructure, to our work in green, blue and orange bonds in recent years.
"This launch is just the next step in Nuveen’s continued growth in terms of offering alongside further partnering with like-minded investors across the world who share in our vision of investing to make an enduring impact on the world.
Jessica Zarzycki, portfolio manager of the Global Credit impact strategy, added: “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. We are encouraged by the level of client interest in the strategy at launch and their belief in our position as an innovator in impact investing.”
Åge Sætrevik, chief investment officer at Gjensidige Pensjonsforsikring, said: “We had been searching 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 different. Since launching the service, we have seen strong interest and are encouraged by how highly valued the impact sector is to our clients.”
