New fund targets sustainable institutional investors

29 March 2018
| By Oksana Patron |
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Natixis Investment Management has announced that its socially responsible investment affiliate Mirova will offer the Global Sustainable Equity Strategy to Australian institutional investors in response to increased demand from local investors for environmental, social and governance (ESG) investment options.

Mirova, which is a pioneering socially responsible investment manager with US$10.8 billion in investments across listed equities, infrastructure, green bonds, social impact investing and natural capital strategies, said that its recent survey found that dedicated sustainable investments played a greater role in institutional investors’ strategies across all asset classes.

Natixis Australia’s chief executive, Damon Hambly said that the survey also found that the attitudes of the institutional investors to ESG investing were changing rapidly.

“The really encouraging aspect of the findings is that investing in ESG is now about far more than simply doing the right thing. Nearly two thirds of investors said alpha could be found in ESG also significantly mitigates risk,” he said.

The Mirova Global Equity strategy invested in global equities and in line with eight major sustainable development themes which included consumption, energy, resources, buildings and cities, ICT, health, mobility and finance.

“The Mirova investment team assess companies not only on their ESG credentials but on their business model, whether they have a strong management team, robust financials and an attractive valuation,” Hambly stressed.

“There’s no question that the appetite for sustainable investment is growing – investors are seeing first hand that with the right investment manager investing ethically and sustainably can also translate into strong investment returns over the long-term.”

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