Sustainable investing adapts to market conditions
The evolution of sustainable investing requires progress in terms of quality of the data and the ability to measure the environmental and social impact.
Getting under the skin of sustainable investing means dealing with issues that can be complex and deep-rooted. It often requires a long-term approach – which may vary by place or culture. A single response is never the answer.
A uniquely diverse model
At Natixis IM, the multi-affiliate model helps clients decide between increasingly different and available options, plus provides a single point of access to more than 20 active investment managers, many of which have specialised sustainable capabilities.
Natixis IM acts as an active owner, which means it exercises the rights of clients as shareholders through dialogue, engagement and voting. The firm expects all affiliates to act as active owners; they regularly vote on more than 87% of their AUM[1]. Additionally, as a group, Natixis IM takes part in multilateral initiatives through which it can advance issues of concern to the whole investment industry, such as climate change.
One of its affiliates, Mirova, has a dedicated focus on sustainable investing. With more than €25.5 billion in AUM[2], the firm is a 100% sustainable investment asset management company and a leading player in sustainable finance[3].
Mirova was conceived in 2012 with the objective of creating innovative investment products for its clients that would reconcile performance with social and environmental positive impact, thus allowing clients to finance solutions to sustainability issues. By positioning the UN Sustainable Development Goals (SDGs) and sustainability issues at the centre of its strategy and products, Mirova has been among the pioneers of a different way of investing.
At another affiliate, Loomis, Sayles & Company[4], ESG considerations contribute to the firm’s goal of delivering superior long-term, risk-adjusted returns and effective investment solutions for clients. Sustainable investing is a core investment pillar, with the firm having made moves to integrate climate impact assessment tools to better understand climate scenarios and risks to portfolios. It has also strengthened its ESG team, recently appointing a head of ESG to engage with the long-term approach in ESG investing.
Finally, at affiliate Ostrum Asset Management[5], 100% of the firms’ analysis incorporates hardware ESG factors, and 96% of assets managed in open-ended funds are SRI-labelled. Ostrum has been a signatory to the UN Principles for Responsible Investment (PRI) since 2008. With €23 billion in investments in sustainable bonds, it’s clear to see the firm’s expertise in ESG management and its pledge to helping clients realise their commitments to responsible investment.
Positioned for clients’ sustainable futures
With €1.2 trillion in AUM[6], Natixis IM is one of the largest asset managers in the world[7]. Through investment expertise, its multiple affiliates and wider partnerships, the firm is dedicated to advancing sustainable finance and developing innovative ESG products, driven by strong convictions and a belief that sustainable investment growth is a key opportunity in investment management, either for active fundamental capabilities, liability driven investments or private assets. On the latter, there are now important developments in terms of renewable energy investment strategies, natural capital as well as private equity.
Globally, client demand for sustainable investing continues to rise. Global sustainable fund assets expanded by 9% in the fourth quarter of 2021[8], and sustainable investments are forecast to quadruple between 2020 and 2025.
Today, sustainable and impact investing assets represent exactly one-third of Natixis IM's total AUM. By the end of 2024, the firm’s ambition is for that percentage to surpass 50%, or €600 billion, with assets classified as SFDR Article 8/9 funds[9], or equivalent. Recognising the benefits of the multi-affiliate approach, clients have come to rely on what the firm offers in partnership, resources and a wide spectrum of active investment solutions to help them optimise risk and returns in portfolios, manage assets and meet future liabilities.
The local and dedicated client facing professionals across Asia Pacific are also prepared to propose ideas and innovative solutions bespoke to every client journey.
Ultimately, listening to clients and putting their needs front and centre is the clear way for Natixis IM to achieve its ambition of 50% AUM through sustainable and impact investing.Learn more about the hybrid event in Singapore here
Disclaimer:
This content is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. Views are as of September 2022 and are subject to change at any time. This is not an offer of, or a solicitation of an offer for any investment strategy or product. All investing involves risk, including the risk of capital loss. This is provided for informational purposes only and should not be construed as investment advice. Approach to ESG integration varies by Affiliate. Investment decisions should consider the individual circumstances of the particular investor. Opinions and/or forecasts contained herein reflect the subjective judgements and assumptions of the authors only and do not necessarily reflect the views of Natixis Investment Managers. No part of this content may be reproduced in any manner without the prior permission of Natixis Investment Managers. In Singapore: Provided by Natixis Investment Managers Singapore Limited (company registration no. 199801044D) to distributors and qualified investors for information purpose only. This publication has not been reviewed by Monetary Authority of Singapore.
In Singapore: Provided by Natixis Investment Managers Singapore Limited (company registration no. 199801044D) to distributors and qualified investors for information purpose only. This publication has not been reviewed by Monetary Authority of Singapore.
In Hong Kong: Provided by Natixis Investment Managers Hong Kong Limited to professional investors for information purpose only.
In Japan: Provided by Natixis Investment Managers Japan Co., Ltd. Registration No.: Director-General of the Kanto Local Financial Bureau (kinsho) No.425. Content of Business: The Company conducts investment management business, investment advisory and agency business and Type II Financial Instruments Business as a Financial Instruments Business Operator.
In Taiwan: Provided by Natixis Investment Managers Securities Investment Consulting (Taipei) Co., Ltd., a Securities Investment Consulting Enterprise regulated by the Financial Supervisory Commission of the R.O.C. Registered address: 34F., No. 68, Sec. 5, Zhongxiao East Road, Xinyi Dist., Taipei City 11065, Taiwan (R.O.C.), license number 2020 FSC SICE No. 025, Tel. +886 2 8789 2788.
In Australia: Provided by Natixis Investment Managers Australia Pty Limited (ABN 60 088 786 289) (AFSL No. 246830) and is intended for the general information of financial advisers and wholesale clients only.
In New Zealand: This document is intended for the general information of New Zealand wholesale investors only and does not constitute financial advice. This is not a regulated offer for the purposes of the Financial Markets Conduct Act 2013 (FMCA) and is only available to New Zealand investors who have certified that they meet the requirements in the FMCA for wholesale investors. Natixis Investment Managers Australia Pty Limited is not a registered financial service provider in New Zealand.
[1] Source: Natixis IM, internal data aggregated at Natixis Investment Managers level and weighted by AUM.
[2] Source: Mirova: assets under management (AUM) as of June 30, 2022. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
[3] Sourec: Mirova (https://www.mirova.com/en/about-us)
[4] US$290.9 billion AUM as of end of June 2022
[5] €389 billion AUM As of end of June 2022
[6] Source: Assets under management (“AUM”) as of June 30, 2022. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
[7] Source: Cerulli Quantitative Update – Global Markets 2022 ranked Natixis Investment Managers as the 18th largest asset manager in the world based on assets under management as of December 31, 2021.
[8] Source: Morningstar, 31 January 2022
[9] European Union Sustainable Fiannce Disclosure Regulation