UPDATE 1-Asset manager Schroders acquires majority stake in BlueOrchard

(Add details BlueOrchard management, exec comment, background)

July 26 (Reuters) - British asset manager Schroders Plc said on Friday it has agreed to acquire a majority stake in Swiss impact investor BlueOrchard Finance Ltd for an undisclosed sum.

Zurich-based BlueOrchard, founded in 2001, puts money into projects that pay returns based on hitting non-financial targets, often linked to social development or the environment.

Asset managers have been increasing their focus on environmental, social and governance issues, in response to demand from investors such as pension funds.

The deal gives the British company access to BlueOrchard's about $3.5 billion assets under management as of May 30.

"Schroders has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets. BlueOrchard's expertise in this area is exceptional," Peter Harrison, chief executive of Schroders said.

Schroders said there would be no changes to BlueOrchard's management after the deal and the firm would continue to be led by Chief Executive Officer Patrick Scheurle.

However, the asset manager will appoint representatives, including Harrison, to BlueOrchard's board, it said.

A Schroders spokeswoman declined to comment on the size of the deal, which the Financial Times reported valued BlueOrchard at more than 100 million pounds. (Reporting by Pushkala Aripaka in Bengaluru and Carolyn Cohn in London; Editing by Shounak Dasgupta and Elaine Hardcastle)