Impact investment manager BlueOrchard, a member of the Schroders Group, has launched an impact credit fund, which aims to improve financial inclusion on a global basis.
BlueOrchard Impact Credit (BOIC) will invest in the debt of small and medium-sized financial institutions, in particular those across the faster-growing emerging market regions and areas which are financially underserved.
The companies will have to “play a crucial role” in social and environmental development in order to be included in the portfolio, according to the firm, and will be spread across sectors including digital payments, renewable energy, energy efficiency, climate adaptation and SME lending.
The fund is classified as Article 9 under Sustainable Finance Disclosure Regulation, with BlueOrchard targeting the debt from companies which are proactively improving social inclusion.
Some of the key themes the fund will hold exposure to include demographic trends, digitalisation and decarbonisation, through companies which are aiming to increase the adoption of digital banking and cater to a growing demand for financial services across emerging regions.
Philipp Mueller, CEO at BlueOrchard, said: “We see three megatrends shaping fast-growing emerging markets today: demographics, digitalisation and decarbonisation. These developments are accompanied by significant capital needs and investment opportunities, which our regional teams are seeing first-hand.
“We are excited to have launched an investment strategy that captures these opportunities, fills a gap in terms of both funding and impact, and complements our investment platform.”
Michael Wehrle, head of investment solutions at BlueOrchard, added that the firm’s team has a 20-plus track record in investing for financial inclusion.
“We are proud of our team’s expertise and look forward to continuing to provide our investors with impact investment solutions tailored to their risk/return appetite,” he said.