Spanish insurer MAPFRE has agreed to buy a minority stake in the French boutique La Financière Responsable (LFR), in a deal whose amount has not been disclosed.
The agreement, will enable LFR to have access to MAPFRE’s global network, which in line with its long term commitment to corporate social responsibility, will seek to take advantage of LFR’s innovative proprietary tools in SRI/ESG management.
Through the operation, Mapfre will market those funds managed by LFR – either through its Luxembourg platform or directly to institutional investors – while entailing the launch of new products for institutional clients and high net worth individuals looking for accurate ESG metrics.
The move by MAPFRE is a major endorsement of the Integral Value Approach (IVA) methodology used by LFR to value stocks. LFR’s eight strong team analyses more than 120 ESG indicators for 160 eurozone companies using information provided directly by the companies.
Paris-based LFR, managing some €150m in assets, is specialised in the social, economic and environmental criteria of investment in companies.
LFR chairman Olivier Johanet said: “We are very pleased to initiate a new stage in LFR’s development with an internationally recognised institution such as MAPFRE and to welcome it as a partner and shareholder. Not only will we able to support MAPFRE in its determination to develop ESG focused funds for markets throughout the world, but it also provides us with the opportunity to extend our funds into new international markets.”
MAPFRE Chief Investment Officer José Luis Jiménez added: “LFR will reinforce MAPFRE’s expertise and service proposition in Environmental, Social and Governance investing. The new relationship offers MAPFRE Group and our asset management company, MAPFRE AM, a real opportunity to play a part in the CSR debate.
“The unique LFR approach, its ESG data integration methodology, its innovative tools and the quality and consistency of its investment process, is a great example of how innovative boutique asset managers can lead the asset management industry in rapidly expanding areas such as ESG driven investment.”