DWS, one of the largest asset managers in Europe, announced today the launch of the ESG Infrastructure Debt Fund (EIDF), focused on European sustainability-themed infrastructure sectors that contribute towards making society and economies more sustainable. The new fund will target sectors including renewable energy, digital, energy efficiency/utilities, clean mobility/transportation, and social infrastructure, and will avoid fossil fuel-related investments.
Sundeep Vyas, Head of Infrastructure Debt, Europe at DWS, said:
“EIDF was launched in response to clear investor demand for infrastructure, for debt, and for sustainable products. We believe insurance companies, pension funds and investors looking for a source of duration, diversification and return premium in a low-yielding, fixed income environment will be particularly interested in this fund.”
According to DWS, ESG will play a key factor in all strategic allocations of the fund, with a positive ESG contribution essential for the investment decision making process. The fund will make 10-15 private infrastructure investments across senior and junior debt, aiming to deliver sustainable returns, with a targeted net yield income of 3.5% per annum.
Hamish Mackenzie, Head of Infrastructure at DWS, added:
“Covid-19 has accelerated a number of key trends, particularly the focus on sustainability. With assets in the ESG space at the forefront of our society and supporting megatrends of the future, we are extremely proud to be a first mover in this space. Investors have the opportunity to use their capital to drive concrete societal change.”
DWS stated that it has received the highest rating from independent ESG ratings and research agency Viego Eiris on the alignment of the new fund with the definitions of sustainability activities by internationally recognized standards.