Implementing ESG Criterias in Fixed Income Strategies June 2015

Transcription

1 Implementing ESG Criterias in Fixed Income Strategies June 2015 For investment professionals only

2 Natixis Global Asset Management Overview Global, affiliate-based organization Each of our affiliates manages their clients assets independently USD billion (EUR billion) under management 1 Among largest asset management companies worldwide 2 Among 10 largest asset management companies in Europe 3 Diversified product line and client base NGAM s affiliates by region North America Active Investment Advisors 4 AEW Capital Management AlphaSimplex Group Aurora Investment Management Capital Growth Management Gateway Investment Advisers Harris Associates Loomis, Sayles & Company Managed Portfolio Advisors 4 McDonnell Investment Management Private Equity Division 5 Reich & Tang Asset Management Snyder Capital Management Vaughan Nelson Investment Management Europe AEW Europe Cube 6 Darius Capital Partners Dorval Finance 7 H2O Asset Management 7 Mirova 8 Natixis Asset Management Private Equity Division 5 Ossiam Seeyond 9 Vega Investment Managers 7 3,456 employees worldwide Local representation in key markets 1. As of 31 March Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non-regulatory AUM includes assets which do not fall within the SEC s definition of regulatory AUM in Form ADV, Part Cerulli Quantitative Update: Global Markets 2014 ranked Natixis Global Asset Management, S.A. as the 16 th largest asset manager in the world based on 31 December 2013 AUM of $867billion. 3. Source: IPE Survey, Asset Management Leaders 2014, June 2014, Natixis Global Asset Management ranked as the 8 th largest asset manager in the annual ranking of the top 120 institutional managers in Europe based on assets under management as of 31 December Division of NGAM Advisors, L.P. 5. Comprising six distinct private equity companies. Not all offerings available in all jurisdictions. 6. The fund under Natixis Environment & Infrastructure Luxembourg, 50.4% owned subsidiary of NGAM. 7. An affiliate of Natixis Asset Management. 8. A subsidiary of Natixis Asset Management. 9. A global investment unit of the Natixis Asset Management organization. Operated in the U.S. through Natixis Asset Management U.S., LLC. 2 FOR INVESTMENT PROFESSIONALS ONLY

3 Mirova overview by numbers Capitalizing on 30 years of experience in Responsible Investing within Natixis AM Own brand launched in % subsidiary of Natixis Asset Management since multi-disciplinary experts 5.2 billion in assets under management 5 capabilities around Responsible Investing Equities Fixed Income Infrastructure Impact Investing Voting & Engagement 3,1 billion 1,3 billion 569 million 116 million 42,9 billion 3

4 Responsible Investment Integrating ESG The philosophy at Mirova is not to exclude companies automatically. Rather to analyse issuers and sectors, and where long term challenges are found, then to appreciate issuers who seek solutions to these challenges. Issuers are considered in the light of sustainable opportunities and risk. They are additionally rated committed, positive, neutral, negative and risk. The last two are not acceptable. There are also ratings for the 3 pillars: Environmental, Social and Governance. Exclusion There are no sectors automatically excluded, however they are currently no investments in Oil, Tobacco, Defence and Gambling. This is because our ESG analysts have found no company in those sectors providing adequate solutions to the challenges they face. The situation with Alcohol is more granular - ethical issues are considered on a case-by-case basis Positive investment Not only do we believe in companies who try to provide solutions to long term challenges We also support sectors which try to do this also For example, Green Bonds try to help with the transition to low carbon economies 4

5 Main sustainability issues (ESG) Environmental - Pollution - Depletion of resources - Reduction in biodiversity - Climate change Social - Respect for human rights - Health - Development Corporate Governance - Long term view based on value creation - Protection of all stakeholders interests 5

6 Integrating ESG Opportunities OUTPUTS Thematic and financial opinion per company Exposure to long term positive trends ESG rating Governance risks Bond structure Transparency, etc Life cycle risk 6

7 Investment Process A value approach, benchmark aware but not benchmark constrained that combines ESG and financial profile Fundamental analysis Duration management Portfolio construction primarily based on security selection Yield curve positioning Macro sector analysis 7

8 Security Selection 8 *Environmental, Social & Governance

9 ESG Dashboard Examples: Companies ESG recommendation Environment recommendation Social recommendation Governance recommendation AIR LIQUIDE Committed Positive Positive Positive AMGEN Committed Positive Positive Positive BMW Committed Positive Positive Positive DANONE Committed Positive Positive Neutral ESSILOR Committed Positive Positive Positive GDF SUEZ Committed Positive Positive Positive MICHELIN Committed Positive Positive Neutral SANOFI-AVENTIS Committed Positive Positive Positive SCHNEIDER ELECTRIC Committed Positive Positive Positive 9 The analyses and opinions referenced herein represent the subjective views of Mirova as of October 2014 shown and are subject to change without prior notice. There can be no assurance that developments will transpire as may be forecasted in material. This information purpose only document is a non-contractual document

10 Impact of the responsible investment approach 10 *Environmental, Social & Governance

11 IR Aggregate composite performance Performance Analysis as of end of March % 40% 35% 30% 25% 20% 15% 10% 5% 40.5% 34.1% Asset class allocation Corporate selection & covered selection government & agencies selection - = Diversification Duration & curve Other Gross performance % -5% Gross Out performance MIROVA OBLIGATIONS EURO AGGREGATE BARCLAYS CAPITAL EURO AGGREGATE Composite definition The composite comprises all the discretionary UCITS portfolios or compartments of UCITS and distribution network management mandates invested mainly in Euro denominated government bonds or private issuers rated "Investment Grade" meeting Natixis Asset Management's criteria for Socially Responsible Investment (SRI). The composite was created on 1 January / + : significant positive contribution / positive contribution = : neutral contribution -- / - : significant negative contribution / negative contribution Benchmark definition The benchmark is the Barclays Capital Euro Aggregate, consisting of a basket of Euro denominated investment grade bonds, including treasury bonds, securitised bonds and corporate bonds. Source: Mirova. The figures given refer to previous years. Past performance is a not a reliable indicator of future performance. 11 Source: Mirova- 31/03/2015. The figures given refer to previous years. Past performance is a not a reliable indicator of future performance.

12 ESG Report as of end of March Source: Mirova- 31/03/2015. The figures given refer to previous years. Past performance is a not a reliable indicator of future performance.

13 ESG Report as of end of March Source: Mirova- 31/03/2015. The figures given refer to previous years. Past performance is a not a reliable indicator of future performance.

14 Legal information MIROVA Limited liability company - Share capital , 50 Regulated by AMF under n GP RCS Paris n Registered Office: 21 quai d Austerlitz Paris Mirova is a subsidiary of Natixis Asset Management. NATIXIS ASSET MANAGEMENT Limited liability company - Share capital ,76 Regulated by AMF under n GP RCS Paris n Registered Office: 21 quai d Austerlitz Paris Cedex 13 Legal information This information purpose only document is a non-contractual document intended only for professional clients in accordance with MIFID. It may not be used for any purpose other than that for which it was conceived and may not be copied, distributed or communicated to third parties, in part or in whole, without the prior written consent of Mirova. No information contained in this document may be interpreted as being contractual in any way. This document has been produced purely for informational purposes. Mirova reserves the right to modify any information contained in this document at any time without notice, including any reference to management process which do not constitute an undertaking from Mirova. This document consists of a presentation created and prepared by Mirova based on sources it considers to be reliable. However, Mirova does not guarantee the accuracy, adequacy or completeness of information obtained from external sources included in this document. Mirova will not be held liable for any decision taken or not taken on the basis of the information disclosed in this document, nor for any use that a third party might make of this information. Figures contained in this document refer to previous years. Past performance and simulations of past and future performances are not a reliable indicator and therefore do not anticipate future results. Reference to a ranking, a rating or an award does not anticipate the future performance of this strategy or the manager. 14

15 Additional Notes This material has been provided for information purposes only to investment service providers or other Professional Clients or Qualified Investors and, when required by local regulation, only at their written request. It is the responsibility of each investment service provider to ensure that the offering or sale of fund shares or third party investment services to its clients complies with the relevant national law. In Spain and Portugal Provided by NGAM S.A. or its branch office NGAM, Sucursal en España. NGAM S.A. is a Luxembourg management company that is authorized by the Commission de Surveillance du Secteur Financier (CSSF) and is incorporated under Luxembourg laws and registered under n. B NGAM, Sucursal en España is authorised and supervised by the Comisión Nacional del Mercado de Valores (CNMV) in relation to its activities in Spain, and by the Comissão do Mercado de Valores Mobiliários (CMVM) in relation to its activities in Portugal. Registered office of NGAM S.A.: 2 rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg. Registered office of NGAM, Sucursal en España: Torre Colon II - Plaza Colon, Madrid, Spain. The above referenced entities are business development units of Natixis Global Asset Management, the holding company of a diverse line-up of specialised investment management and distribution entities worldwide. The investment management subsidiaries of Natixis Global Asset Management conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions. Although Natixis Global Asset Management believes the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy, or completeness of such information. The provision of this material and/or reference to specific securities, sectors, or markets within this material does not constitute investment advice, or a recommendation or an offer to buy or to sell any security, or an offer of services. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. The analyses, opinions, and certain of the investment themes and processes referenced herein represent the views of the portfolio manager(s) as of the date indicated. These, as well as the portfolio holdings and characteristics shown, are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material. This material may not be distributed, published, or reproduced, in whole or in part. All amounts shown are expressed in USD unless otherwise indicated. FOR INVESTMENT PROFESSIONALS ONLY