Luxembourg Ministry of Finance appoints Schroders and BlueOrchard to accelerate climate action with a landmark partnership

16/06/2022 News Releases

Luxembourg/Zurich, 16 June 2022 – Schroders, BlueOrchard Finance Ltd (1), and the Luxembourg Ministry of Finance are launching an impact strategy with the goal of contributing to the transition to carbon-neutral and resilient economies and achieving sustainable growth in emerging markets. The initiative will specifically focus on the environment: climate mitigation, climate adaptation, and the protection of water and biodiversity. The partnership is focused on channelling investments from both the public and the private sectors via an innovative Luxembourg-based financing vehicle that will help to close the climate finance funding gap.

Global investment manager Schroders and its impact investment specialist BlueOrchard were selected in an international tender process. Schroders will provide the portfolio and risk management services as the AIFM, (2) while BlueOrchard has been appointed as the investment manager for this climate impact strategy. The strategy aims to invest in solutions that address the environmental goals of the Paris Agreement and the United Nations Sustainable Development Goals (SDGs), among others.

“It is crucial to our common future that we solve the issues of climate change and environmental protection both nationally and internationally. As a leading international financial centre and investment fund hub, Luxembourg is uniquely positioned to mobilise capital to address these urgent issues. With this new partnership, we are strengthening our long-term commitment to blended finance and helping seed a new strategy that supports sustainable investments and contributes to resilient economies in emerging markets,” said Luxembourg Minister of Finance, Yuriko Backes.

This landmark mandate will help us further accelerate climate and environmental action in markets where we can make the greatest impact. We are proud that the Luxembourg government has recognised our expertise in innovative blended finance strategies. We look forward to advancing climate change mitigation and adaptation with our partners, whose objectives are firmly aligned with our own,” said BlueOrchard’s CEO, Philipp Mueller.

“Schroders in Luxembourg is proud to have been selected as the management company by the Ministry of Finance.   Schroders has had a significant and successful presence in Luxembourg for over 30 years, through which we offer a broad range of asset management products and related services. We look forward to working with BlueOrchard and partnering with the Luxembourg government to bring this innovative strategy to the market,” said Finbarr Browne, CEO Schroder Investment Management (Europe).

There is an urgent need to address climate change and environmental degradation, however, there is continued dependency on public funds for sustainable related investments, in particular in emerging markets. Building on common goals, the Luxembourg Ministry of Finance, Schroders, and BlueOrchard will combine their strengths to address this funding gap with an innovative investment strategy.

(1) Part of the Schroders Group

(2) Alternative Investment Fund Manager

 

-ends-

 

For further information, please contact:

Tahmina Theis, BlueOrchard Finance Ltd

+41 22 596 47 69

tahmina.theis@blueorchard.com

 

Andy Pearce, Schroders PR Manager

+44 220 7658 2203

Andy.Pearce@Schroders.com

 

Luxembourg Ministry of Finance

Max Dörner

+352 247 826 05

Max.dörner@fi.etat.lu

 

About Luxembourg Ministry of Finance Please visit: https://mfin.gouvernement.lu/fr.html

About BlueOrchard Finance Ltd BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 9bn across more than 90 countries. Around 230 million poor and vulnerable people in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of December 2021. For additional information, please visit: www.blueorchard.com.

Schroders Capital Schroders Capital provides investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private asset mandates. The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity. With $74.9 billion* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists). *Assets under management as at 31 December 2021 (including non-fee earning dry powder and in-house cross holdings)

Schroders plc Founded in 1804, Schroders is one of Europe’s largest independent investment management firms by assets under management. As at 31 December 2021, assets under management were £731.6 billion (€871.3 billion; $990.9 billion). The founding family remain a core shareholder, holding approximately 48% of the firm’s voting shares. Schroders has continued to deliver strong financial results. It has a market capitalisation of circa £8 billion and employs over 5,700 people across 37 locations. Schroders has benefited from the most diverse business model of any UK asset manager by geography, by asset class and by client type. Schroders offers innovative products and solutions across their five business areas of solutions; institutional; mutual funds; private assets & alternatives; and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, endowments and foundations. They also manage assets for end clients as part of their relationships with distributors, financial advisers and online platforms. Schroders’ Wealth Management offering reflects their strategic ambition to provide wealth management and financial planning services to clients across the wealth spectrum. Schroders’ strategic aims are to grow their asset management business, build closer relationships with end clients and expand their private assets and alternatives business. Schroders’ purpose is to provide excellent investment performance to clients through active management. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if they deliver for clients, they deliver for Shareholders and other stakeholders. Further information about Schroders can be found at www.schroders.com. Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.

 

Disclaimer: The information in this publication was produced by BlueOrchard Finance Ltd (“BOF”) to the best of its present knowledge and belief. However, all data and financial information provided is on an unaudited and “as is” basis. The opinions expressed in this publication are those of BOF and its employees and are subject to change at any time without notice. BOF provides no guarantee with regard to the accuracy and completeness of the content in this publication and BOF does not under any circumstance, accept liability for any losses or damages which may arise from making use of, or relying upon any information, content or opinion provided by BOF in this publication. This publication may contain references or links to other publications and websites and BOF has not reviewed such other publications and websites and is not responsible in any way in relation to the content of such publications and websites. The information in this publication is the sole property of BOF unless otherwise noted, and may not be reproduced in full or in part without the express prior written consent of BOF. All investments involve risk. We note specifically that past performance is not an indication of future results. Emerging markets impact investments involve a unique and substantial level of risk that is critical to understand before engaging in any prospective relationship with BOF and its various managed funds. Investments in emerging markets, particularly those involving foreign currencies, may present significant additional risk and in all cases the risks implicated in this disclaimer include the risk of loss of invested capital. The materials provided in this publication are for informational purposes only and nothing in this publication can be construed as constituting any offer to purchase any product, or a recommendation/solicitation or other inducement to buy or sell any financial instrument of any kind and shall not under any circumstances be construed as absolving any reader of this publication of his/her responsibility for making an independent evaluation of the risks and potential rewards of any financial transaction. We note in particular that none of the investment products referred to in this publication constitute securities registered under the Securities Act of 1933 (of the United States of America) and BOF and its managed/advised funds are materially limited in their capacity to sell any financial products of any kind in the United States. No investment product referenced in this publication may be publicly offered for sale in the United States and nothing in this publication shall be construed under any circumstances as a solicitation of a US Person (as defined in applicable law/regulation) to purchase any BOF investment product. The information provided in this publication is intended for review and receipt only by those persons who are qualified (in accordance with applicable legal/regulatory definitions) in their respective place of residence and/or business to view it, and the information is not intended under any circumstances to be provided to any person who is not legally eligible to receive it. Any recipient of information from this publication who wishes to engage with BOF in furtherance of any transaction or any relationship whatsoever must consult his/her own tax, legal and investment professionals to determine whether such relationship and/or transaction is suitable. By no means is the information provided in this document aimed at persons who are residents of any country where the product mentioned herein is not registered or approved for sale or marketing or in which dissemination of such information is not permitted. BOF disclaims all liability for any direct or indirect damages and/or costs that may arise from the use of (whether such use is proper or improper), or access to, this publication (or the inability to access this publication).

Copyright © 2022, BlueOrchard Finance Ltd. All rights reserved.