M&G Investments (M&G) has launched a brand new impact-focused non-public debt technique with a €300m (£261.4m) dedication from Dutch pension fund, Pensioenfonds KPN.

Aegon Asset Administration has chosen M&G as one of many managers for the non-public debt mandate of Pensioenfonds KPN.

The SFDR Article 9-classified fund will present company loans to companies centered on producing optimistic environmental and social outcomes in areas akin to local weather, know-how and accountable manufacturing.

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12 investments have already been accomplished so far, together with a dedication to Bollegraaf Group, a Dutch agency centered on superior recycling applied sciences.

“Many European corporations are taking a number one position in offering options in areas akin to clear tech, future-proofing their operations and creating programs that assist actual world outcomes,” stated Sander Van der Wel, M&G’s director of institutional enterprise improvement within the Netherlands.

“To do that they want the assist of affected person capital and long-term institutional buyers are exceptionally effectively positioned to supply this a lot wanted funding.

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“Our partnership with Aegon AM’s fiduciary administration crew is a mirrored image of our long-standing relationship and demonstrates how asset managers and asset house owners can develop revolutionary monetary options that tackle international challenges, while offering enticing threat adjusted returns for long-term pension financial savings.”

 All investments within the portfolio might want to meet a minimal set of sustainable standards. There’s a remit to take a position globally however it’s anticipated that European non-public company loans will comprise the vast majority of the portfolio.

“Over the previous few years we have now explored the potential for influence investing inside non-public debt for Pensioenfonds KPN,” stated Karin Roeloffs, head of fiduciary administration at Aegon Asset Administration.

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“After an intensive search trajectory with an extra give attention to ESG and influence investing by way of a selected influence due diligence, M&G was chosen for the influence company debt mandate. Different methods and managers will complement this company debt allocation. The purpose is to contribute to the influence targets and ESG themes of Pensioenfonds KPN alongside a goal threat adjusted monetary return with a well-diversified portfolio.”

There’s rising demand for impact-focused non-public debt, notably in Europe. Over the previous decade, the variety of devoted funds has tripled, elevating greater than €66bn globally with a goal measurement now approaching €83bn, in line with information from Phenix Capital Group cited by M&G.