Nuveen, a global asset manager with US$1.2 trillion of assets under management, has launched a Global Credit impact strategy which aims to create a “direct, measurable social and environmental impact”.
The strategy is launched with investment of around $170 million from a range of global investors, including Gjensidige Pensjonsforsikring and Nuveen’s parent company TIAA.
The Global Credit impact strategy 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, said the firm.
It will aim to address 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 that its understanding of the fixed income impact market was demonstrated by having been at the forefront of product innovation over the years, including being anchor investors to the World Bank’s Rhino Bond, the Seychelles Blue Bond, Barbados Blue Bond and, most recently, the Amazon Reforestation Bond.
The strategy will be co-managed by Jessica Zarzycki, a portfolio manager, 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.”
Jessica Zarzycki, said 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,” she said.
Åge Sætrevik, chief investment offiver 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.”
