OP and Finnfund have announced plans to establish Finland’s first impact fund that will invest into emerging markets.

The OP Finnfund Global Impact Fund I will promote the achievement of the UN Sustainable Development Goals in a measurable way while providing an attractive return for investors.

“In addition to competitive returns and responsibility criteria, our clients increasingly want their investments to have a real impact. Finnfund’s investment and impact expertise in emerging markets, combined with OP’s experience in alternative investment funds, provide our clients with a unique opportunity to create positive change," said Tuomas Virtala, Head of Asset Management for Corporate and Institutional Customers at OP.

"The impact fund further supports our position as the pioneer in responsible investment, and we want to be ambitious in developing new solutions for our clients in the future as well,” he added.

As a new type of fund in the Finnish market, OP Finnfund Global Impact Fund I will seek systematic and measurable impact, primarily by investing into projects in the fields of sustainable agriculture and forestry, renewable energy and financial institutions.

The investments will support mitigating and adapting to climate change, creating sustainable employment, as well as safeguarding affordable and clean energy.

The fund will invest in developing countries defined by the OECD, while providing attractive returns for investors.

OP Fund Management Company will act as the Alternative Investment Fund Manager (AIFM) of the fund.

The fund is targeted at professional investors.

“Impact investing has rapidly grown from a niche product to a global market worth more than $500bn. According to the UN, the annual funding deficit required to achieve the sustainable development goals is €2,200bn. We are delighted that Finnfund and OP can now provide Finnish investors the opportunity to access genuine and profitable impact investing,” said Markus Pietikäinen, CIO of Finnfund.

OP Financial Group’s insurance companies and Finnfund will act as the first anchor investors in the fund.

Marketing to investors will begin in autumn 2019.

With 40 years of development finance experience, Finnfund is one of the 60 global investors who have committed to the Operating Principles for Impact Management of the International Finance Corporation (IFC), a member of the World Bank Group.

These Principles will also be applied in assessing the investments of the OP Finnfund Global Impact Fund I.