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Demand for ESG investments prompts entry of a new global sustainable equity fund

Damon Hambly

Natixis Investment Managers (Natixis), has announced that its socially responsible investment affiliate Mirova, will offer its Global Sustainable Equity Strategy to Australian institutional investors. The investment will be available via a locally domiciled unit trust vehicle.

Mirova is a pioneering socially responsible investment manager, with over US$10.8 billion in investments in listed equities, infrastructure, green bonds, social impact investing and natural capital strategies. Mirova’s philosophy is based on the conviction that integrating sustainable development themes in investment decisions can create value for investors.

Natixis Australia CEO, Damon Hambly, said the move follows increased demand from local investors for environmental, social and governance (ESG) investment options.

“Our 2017 global survey of institutional investors showed that attitudes to ESG investing are changing rapidly – dedicated sustainable investments are playing a greater role in institutional investors’ strategies across all asset classes. We are finding that this is especially the case in Australia right now, and the trend will likely continue to get stronger.

“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 investing, and that ESG also significantly mitigates risk,” said Mr Hambly

The Mirova Global Equity strategy invests in global equities which combine strong financial performance with sustainable development. Investment decisions are made with a long term focus, and in line with eight major sustainable development themes: consumption, energy, resources, buildings and cities, ICT, health, mobility and finance.

“Mirova leans on a large Responsible Investment Research team and its teams have been pioneers of several ESG strategies and asset classes . As a result Mirova offers a cross asset expertise and a well diversified range of strategies – something we believe is unique to the market and in demand from Australian investors. That’s why we’re really pleased to be able to offer Australian investors the opportunity of investing in this strongly performing fund alongside their global counterparts,” continued Mr Hambly.

In conclusion, Mr Hambly stressed the disciplined investment process which has allowed the strategy to produce strong returns since its inception in 2013.

“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.

“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,” he said.

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