Paris-based Egamo, part of French mutual insurer MGEN, has launched Egamo Responsable Multi Action (Erma), a fund of funds including an ESG criteria analysis in the fund selection process.
Erma aims to promote ESG criteria towards equity fund managers and to outperform its benchmark, the Stoxx Europe 600 DNR index, on an average duration of five years.
The multi-management process of the firm focuses on the asset allocation, based on a global top-down approach, and the fund selection, established on both quantitative and qualitative analysis.
Assets managers have to answer a due diligence questionnaire, which includes various themes related to ESG such as work conditions, human rights, environment, governance, client relationship quality, fair practices.
For Erma, an ESG analysis of the portfolio completes the process with data provided by extra-financial ratings’ company Vigeo.
The multi-management risk committee of Egamo then approves or rejects the funds that fulfill the eligibility requirements for a selection.
Egamo managed €8.3bn of assets as at 31 December 2014.