Natixis launches its first range of ESG 'fund of funds'

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Natixis launches its first range of ESG 'fund of funds'

Natixis Investment Managers (Natixis IM), the Paris-based fund house, today announced that it is launching a new range of ESG fund of funds.

The company said the funds combine the expertise of some of its leading affiliated investment managers, with the portfolio construction and asset allocation skills of Natixis Investment Managers Solutions and the overview of Natixis IM's in-house ESG experts.

The Lux UCITS range consists of the Natixis ESG Conservative, Moderate and Dynamic funds, each offering diversified, multi-asset exposure to meet the varying risk requirements of investors. At launch the range will have exposure to 14 funds from 5 of Natixis affiliated managers.

These funds give clients access to a wide range of ESG strategies across all asset classes in a risk-controlled manner."

The funds are managed by the Multi Asset Portfolio Management team within Natixis Investment Solutions. This team currently manages €57bn of which €5.4bn is already focused on ESG-specific mandates. The lead portfolio manager is Nicolas Bozetto who has more than 12 years of experience running ESG related mandates.

As each affiliate has its own independent investment process with a customized ESG approach, all strategies undergo a rigorous selection test. The investment process starts by filtering for appropriate funds using a quantitative screen from an independent third-party provider, before qualitative assessments are done from both an ESG perspective and a classic fund selection angle. Finally, the Solutions team uses its own in-house risk management and tactical asset allocation process to manage the portfolio to meet defined risk & return objectives.

Harald Walkate, Head of CSR & ESG at Natixis Investment Managers said, "We have launched a new ESG fund range at a time when we believe the importance of ESG has never been more visible.  We believe in ESG that makes a difference by helping to identify risk and drive financial performance"

For the development of the Fund of Funds Natixis IM produced a proprietary selection methodology, called "Conviction & Narrative". Applying this framework provides clarity to the client around the ESG-related investment convictions that are central to the manager's investment strategy.

James Beaumont, head of multi-asset portfolio management at Natixis Investment Solutions said, "The ESG market is evolving rapidly and means many different things to different people."

"These funds give clients access to a wide range of ESG strategies across all asset classes in a risk-controlled manner. Our affiliates' broad capabilities across the whole ESG spectrum give us an enviable breadth of investment opportunities, whilst having our process challenged by Natixis's in-house ESG experts to stay true to our core beliefs."

 

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.