Pensioenfonds Vervoer has committed $300m into the ILX Fund I offered by ILX Management, the SDG-focused, emerging market private credit manager.
The investment, made by Achmea Investment Management on behalf of Vervoer, has pushed total commitments in the ILX Fund I to reach $1.05bn, which follows a $750m commitment by APG Asset Management in January 2022.
ILX provides institutional investors efficient access to the global development finance asset class. By co-financing with the leading multilateral development banks (MDBs) and other development finance institutions (DFIs), ILX enables Vervoer to directly support the sustainable development and climate finance agenda of these MDBs and DFIs, across emerging markets and developing economies, it was announced.
“We are pleased to welcome Pensioenfonds Vervoer and their fiduciary manager Achmea Investment Management to ILX Fund I, following the initial closing with APG on behalf of ABP and bpfBouw,” said Manfred Schepers, chief executive officer of ILX.
“Their commitment demonstrates their confidence in ILX’s strategy, to enable them to access a diversified pool of SDG-targeted investments across emerging markets, aligned with their responsible investment objectives as well as their risk-return profile,” he said.
As a long-term investor, Vervoer believes it is its responsibility to continuously explore options to broaden the investment strategy that targets sustainable development and the impact of climate change.
A fundamental element of Vervoer’s investment philosophy is that ESG-integration will not negatively affect the long-term risk-return profile of its portfolio. Investing in ILX gives the opportunity to further grow in emerging markets debt portfolio and in a development finance asset class, it said.
As Vervoer’s fiduciary manager, Achmea selected ILX Fund I on behalf of the pension scheme as it assists Vervoer in expanding its impact investing portfolio.
ILX Fund I invests in a diversified portfolio of loan participations originated, structured and syndicated by the leading MDBs and DFIs. This strategy mobilises large scale private sector capital towards the SDGs and climate mitigation and adaptation finance across the emerging markets.
ILX focuses on four key sustainability themes: energy access and renewable energy; sustainable industry and infrastructure; inclusive access to finance and safeguarding sustainable food security.
The strategy provides investors an attractive risk-return profile, contributing to the SDGs while ensuring ESG safeguarding and climate risk consideration.