Natixis IM: Sustainable Investing in changing market conditions

Getting under the skin of sustainable investing means dealing with issues that can be complex, deep-rooted. And 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 Investment Managers (Natixis IM), our unique multi-affiliate model helps clients decide between increasingly different and available options and provides a single point of access to more than 20 active investment managers, many of which have specialized sustainable capabilities.

Natixis IM acts as an active owner, which means we actively exercise the rights of our clients as shareholders through dialogue, engagement and voting. We expect all affiliates to act as active owners; they regularly vote on more than 87% of their AUM[1]. Additionally, as a group we take part in multi-lateral initiatives. Through these initiatives, we can advance issues of concern to the whole investment industry, such as climate change.

One of our affiliates, Mirova, has a dedicated focus on sustainable investing. With more than €25.5 billion in AUM[2], Mirova 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 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 our affiliate Loomis, Sayles & Company[4], ESG considerations contribute to their goal of delivering superior long-term risk-adjusted returns and effective investment solutions for clients. Sustainable investing is one of their core investment pillars, having made moves to integrate climate impact assessment tools to better understand climate scenarios and risks to portfolios. They have also strengthened their ESG team, recently appointing a Head of ESG to engage with their long-term approach in ESG investing.

Finally, at our affiliate Ostrum Asset Management[5], 100 percent of the firms’ analyses incorporate hardware ESG factors, and 96 percent of assets managed in open-ended funds are SRI-labelled. Ostrum Asset Management has been a signatory to the Principles for Responsible Investment (PRI) since 2008. With €23 billion investments in sustainable bonds, it’s clear to see their expertise in ESG management and their pledge to helping clients to realise their commitments in responsible investment.

Positioned For Clients’ Sustainable Futures

With €1.2 trillion AUM[6], Natixis IM is one of the largest asset managers in the world[7]. Through the investment expertise our multiple affiliates and wider partnerships, we are 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. Regarding the latter, we have seen important developments for renewable energy investment strategies, natural capital as well as private equity.

Globally, we have seen client demand for sustainable investing continue 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 represents one-third (33.3%) of Natixis IM's total AUM. By the end of 2024, our 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 our multi-affiliate approach, clients have come to rely on our partnership, resources, and wide spectrum of active investment solutions to help them optimise risk and returns in portfolios, manage assets, and meet future liabilities.

Our local and dedicated client facing professionals across Asia Pacific are prepared to propose ideas and innovative solutions bespoke to every client journey.

At Natixis IM, we know that listening to clients and putting their needs front and centre is the clear way to achieve our ambition of 50% AUM through sustainable and impact investing.

 

 

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. 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.

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.