We offer a range of funds and strategies centered on the belief that ESG factors can play a meaningful role in uncovering opportunities, identifying potential risks, and generating competitive returns for investors.
ESG 101“ESG” is a general term that covers a variety of investment approaches. ESG strategies factor environmental, social, and governance considerations into the investment process, with the goal of generating long-term, sustainable returns for investors.
- Environmental – Renewable energy, lower carbon emissions, water management, pollution control
- Social – Labor practices, human rights, data protection, selling practices, corporate supply chains
- Governance – Board makeup, corruption policies, auditing structure
Considering ESG criteria can help portfolio managers identify companies capable of creating sustainable value and managing a full range of risks. All else equal, well-run companies with sustainable business models may be better long-term investments. For these reasons, the investment criteria inherent in ESG analysis may be well-aligned with the interests of long-term investors.
A majority of institutional investors
believe there is alpha2 to be found in sustainable investments.3
7 in 10 individual investors worldwide
would like their investments to do social good.4
74% of plan participants
would like more socially responsible investments in their retirement offering.5
Screening securities on ESG or values-based criteria
Incorporates ESG factors into fundamental analysis to pursue alpha and mitigate risk
Investment selection guided by ESG themes and positive impact
2 A measure of the difference between a portfolio's actual returns and its expected performance, given its level of systematic market risk. A positive alpha indicates outperformance and negative alpha indicates underperformance relative to the portfolio's level of systematic risk.
3 Natixis Investment Managers, Global Survey of Institutional Investors conducted by CoreData Research in September and October 2017. Survey included 500 institutional investors in 30 countries.
4 Natixis Investment Managers, Global Survey of Individual Investors conducted by CoreData Research, February-March 2017. Survey included 8,300 investors from 26 countries.
5 Natixis Investment Managers, Survey of Defined Contribution Plan Participants compiled by CoreData Research, August 2016. Survey included 951 US respondents.
Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore the universe of investments may be limited and investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. This could have a negative impact on an investor's overall performance depending on whether such investments are in or out of favor.
The ability of an active investment to achieve its objectives will depend on the effectiveness of the investment manager.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed-income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.