Pedro Guazo, the Representative of the Secretary-General for the investment of the UNJSPF assets, spoke at a conference in New York held alongside the 79th session of the United Nations General Assembly and Climate Week NYC. His remarks addressed the critical role of the financial sector in promoting affordable housing and sustainable communities.
Hosted by the Business Council for International Understanding—a nonprofit founded in 1955 by US President Dwight Eisenhower—and Nuveen, a global investment manager and subsidiary of financial services conglomerate TIAA, the conference brought together policymakers and financial leaders to discuss United Nations Sustainable Development Goal #11: Make cities and human settlements inclusive, safe, resilient and sustainable.
While Mr. Guazo acknowledged the sobering statistics and stark challenges underscored by the preceding speakers and panelists, he also conveyed a message of positivity.
“You have to be an optimist to be an investor,” he said.
Mr. Guazo highlighted several reasons for optimism regarding affordable housing, including the abundant capital available for deployment and the variety of financial tools tailored to specific phases of development. From land acquisition to construction to mortgages, institutional investors like the UNJSPF have a broad toolkit to help fund projects aligned with SDG 11. Such tools include mortgage-backed securities and various forms of private credit.
He also noted that as part of the Fund’s Responsible Investment strategy, which includes an emphasis on emerging markets, projects that make an impact on top of providing risk-adjusted returns are particularly attractive.
“If those housing solutions you’re developing are green, affordable or have other sustainable characteristics, we’d be even more willing to invest,” he told the 100 or so attendees.
As at 31 August 2024, the UNJSPF’s assets totaled approximately US$95.5 billion, with a target allocation of 8.5% to real estate.
To unlock the full potential of investor interest and available financial tools for affordable housing, Mr. Guazo stressed, again with optimism, the importance of a consistent public policy to limit risk and provide greater certainty.
“As an institutional investor, we have the resources, and we’re willing to deploy them into good, long-term, stable and sustainable investments,” he said. “I’m very optimistic we’ll have more affordable housing opportunities that are good investments for all of us.”
To learn more about the UNJSPF’s responsible investment strategy, please visit our website.
