US-based investment manager Nuveen has raised $100 million so far for its latest impact fund, according to a filing with the Securities and Exchange Commission (SEC).
Nuveen Global Impact Fund, which was launched last month, has a $400-million target and follows the close of Nuveen’s Asia Pacific Cities Platform ($420 million) and China Outlet Mall Fund ($60 million). Its Nuveen Global Farmland Fund closed at $464.6 million in January.
Nuveen said it sees robust opportunities in impact investing as investors increasingly focus on finding investment solutions to social and environmental challenges as they pursue attractive financial returns.
The investment manager said it allocated more than $1 billion to impact investments over the past decade through its global impact investing strategy launched in 2012. Nuveen has more than $1 trillion in assets under management as of September 30, 2019, and operations in 24 countries.
“We look at areas like financial services — credit, savings, insurance, remittance — and find companies that are exclusively targeting that low-income demographic… the thesis is that low-income customers are paying customers and that those customers are underserved,” the firm said on its website.
The first close of Nuveen’s global impact fund also comes as the firm’s Fifth Annual Responsible Investing Survey showed that high net worth investors are flocking to responsible investing vehicles to make a direct and measurable impact on the environment and society, but performance is the main drive for participation.
The survey involved 1,000 high net worth investors and hundreds of financial advisors.
“The global pandemic and recent social unrest have further underscored the desire of many to make a difference. Investing with a responsible approach has become a preferred method to concretely address important issues, such as social justice, climate change, and fairness in the workplace,” said Amy O’Brien, the Global Head of Responsible Investing at Nuveen.
In Asia, Nuveen’s Asia Pacific Cities Fund focuses on 17 principal and progressive cities across the region, including Tokyo, Sydney, Brisbane, Singapore, and Seoul. The fund primarily invests in office, retail, industrial, and residential assets.
The platform forms part of the firm’s global resilient series, which focuses on investing in high-quality assets in leading cities that are well-positioned in terms of long-term structural trends and possibly deliver attractive, risk-adjusted returns to investors.