Socially responsible investing is not a fashion but the only pertinent management model for the coming years. This is the belief of Daniel Roy, chairman of the board of Paris-headquartered La Banque Postale Asset Management.
The manager has set a target to convert its entire assets under management into SRI assets by 2020, an objective Roy termed “ambitious but in line with the convictions of the group”.
“We will mobilise all resources to progressively make our clients adopting this approach. We are convinced that sustainable finance enables financial markets to play a virtuous role in the economy and our affiliation to La Banque Postale group engages us as responsible citizens,” said Roy.
LBPAM outlined three issues explaining its move to fully become a SRI manager : global warming, demographic limits of the French social protection system that may lead retail clients to save money in addition to their pensions and the gap between financial markets and the society that needs to be fulfilled.
Therefore, all open-ended funds managed by LBPAM are set to converge towards a responsible investment process by 2020. In parallel, the manager will raise awareness of institutional clients whose assets do not integrate extra-financial filters yet.
LBPAM, which has been awarded various SRI labels for 26 funds so far (including the French government-backed SRI label for 18 of them) , unveiled a new SRI conviction fund range that will be launched in June 2018.
It will be composed of four SRI conviction strategies, including a fund branded LBPAM ISR Diversifié, and two community funds. Equities, fixed income, green bonds and money markets will be the asset classes covered.
LBPAM managed €216bn in assets as of 31 December 2017 of which €109bn were SRI assets.