The initial close of Nuveen’s Global Impact Strategy secured $150 million in commitments towards its targeted $400 million offering. The strategy aims to drive positive change across inclusive growth and resource efficiency, targeting a 40-60 per cent 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,” said Rekha Unnithan, co-head of private markets impacting 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.”
The strategy will support six of the UN Sustainable Development Goals – no poverty, zero hunger, reduced inequalities, climate action, good health and wellbeing, and responsible consumption and reduction – by investing in inclusive growth to support the low-income consumer in emerging markets and disruptive businesses to create greater efficiency in developed markets.
“We are committed to this discipline as a growing part of our portfolio construction due to both its potential for positive financial results as well as its positive influence on society’s most pressing problems,” said Nick Liolis, chief investment officer of the US$270 billion General Account of Nuveen parent company TIAA.
Danish pension fund Velliv committed US$50 million in capital to the strategy.
“Nuveen has been an investment partner of ours for several years and we are delighted to further strengthen our relationship,” said CEO Anders Stensbøl Christiansen. “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.”
