Nuveen has completed the $150 million first close of Global Impact Strategy, launched in what the company calls a bid to tackle income inequality and climate change.
Nuveen, an investment manager with over $1 trillion in assets under management, said that it has now announced the initial close of its Global Impact Strategy, with $150m in commitments toward its targeted $400 million offering.
Open to institutional investors globally, Nuveen's Global Impact strategy seeks to drive "positive change in two critical sustainable development challenges - inclusive growth and resource efficiency." The strategy will target a 40-60% allocation to each theme.
The current global pandemic heightens the need for investment in mitigating accelerated climate change, pollution and waste, and in creating a more inclusive economy addressing inequality," Rekha Unnithan, CFA, Nuveen.
"The current global pandemic heightens the need for investment in mitigating accelerated climate change, pollution and waste, and in creating a more inclusive economy addressing inequality, said Rekha Unnithan, CFA, co-head of private markets impact investing at Nuveen.
"Low-income individuals have been hit the hardest by Covid-19, further widening the equality gap as the lack of access to quality and affordable services like education, health and financial products is more starkly visible than ever,"
"We are seeing attractive investment opportunities at a time of tremendous dislocation in the economy, allowing us to collaborate with businesses focused on creating scalable and commercially viable products that are focused on solutions for people and planet," said David Haddad, co-head of private markets impact investing at Nuveen.
Six of the United Nations Sustainable Development Goals (SDGs) set out as part of the Paris Agreement will be supported by the Global Impact strategy: SDG1 (No poverty); SDG 2 (Zero hunger); SDG 3 (Good health and well-being); SDG 10 (Reduced inequalities); SDG 12 (Responsible consumption and reduction) and SDG 13 (Climate action).
A combined focus on both investment performance and advancement on issues relating to the SDGs by the Global Impact strategy was an important motivation for investors, including the Danish pension fund Velliv which committed $50 million in capital.
Anders Stensbøl Christiansen, CIO at Velliv, said: "Nuveen has been an investment partner of ours for several years and we are delighted to further strengthen our relationship.
"They are a pioneer in Impact Investing and its experienced team has a proven track record. Now more than ever, there is a compelling case for Impact Investing, and we believe this strategy provides us with an appealing market opportunity to achieve competitive returns, whilst ensuring we are also achieving measurable Impact goals."