Global asset manager Nuveen has launched its Global Credit impact strategy with the aim of generating long-term returns while seeking to create a direct, measurable social and environmental impact.

The strategy has been launched with investment of around US$170 million from a range of global investors, including Norway’s largest general insurance company Gjensidige Pensjonsforsikring and Nuveen’s parent company TIAA, the US teachers’ pension fund.

The Global Credit impact strategy, which is the latest in a series of launches from Nuveen’s US$413 billion fixed income platform, draws, it says, upon the firm’s deep sector expertise and long history of managing fixed income portfolios focused on sustainability.

The 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.

As well, 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.

The asset manger’s ability to be at the cutting-edge of responsible and sustainable investment across fixed income, it says, is driven by 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 Nuveen portfolio manager Jessica Zarzycki and Stephen Liberatore, the company’s head of fixed income impact.

“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,” Zarzycki shares. “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.”