With EUR22 billion equity assets under management as at end of June 2019, the certification for the three thematic equity strategies is only a first step for Ostrum AM. Additional SRI labels are in progress and a full accreditation process is expected to be completed by the first half of 2020. Strategies eligible for certification include follow-on thematic strategies (Euro Smart Cities, Global Sport and European Consumer) as well as all cap and small cap strategies. Certification will apply to strategies investing in France, the Eurozone, Europe, Global Emerging Markets and Asia.
Ostrum AM’s, a responsible quality growth approach to equity investing
Ostrum AM is a high conviction, bottom-up, stock picking equity manager. Ostrum AM’s investment process relies on having in-depth knowledge of each company it is investing in. To achieve this, team members take on a dual role as “Analyst/Portfolio Manager”, empowering them to research and invest based on equally important financial and non-financial quality characteristics. The ESG profile of a company falls under the non-financial analysis. The company’s ESG profile will have a positive or negative effect on the Ostrum valuation model of the company, impacting the decision to invest, the expected upside and weight in the portfolio.
Active stewardship is also an integral part of Ostrum AM’s responsible investment approach. By exercising voting rights, Ostrum AM can directly express its agreement or disagreement with decisions made by management of the companies in investment portfolios. Ostrum AM also engages with companies to ask for ESG transparency and better ESG practices. In 2018, Ostrum AM voted 9,305 resolutions and participated in 604 General Assemblies.
Jean-Louis Scandella, Chief Investment Officer for Equities at Ostrum AM comments:
“We see companies as a two-sided coin, meaning both financial and non-financial analysis are critical in getting an investment case right. Our 360° approach to stock selection and portfolio construction is designed to capture sustainable corporate growth and generate a positive return for our clients. EY France’s SRI accreditation applies to our investment process and is recognition for our sustainable growth approach to equity investing.”
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About the SRI Label
The SRI label was announced by the Ministry of Finance in September 2015 and launched in August 2016 during the Responsible Finance Week. The aim of having SRI labeled investment strategies was targeted at increasing the visibility of sustainable and responsible investments. An SRI investment seeks to reconcile economic performance, social issues and environmental impact by financing companies contributing to a sustainable development in all business sectors. The SRI label, issued at the end of a strict process of labelling led by two independent bodies (Afnor Certification et EY France), constitutes a unique mark for the savers wishing to participate in a more sustainable economy.
More on Ostrum AM, a responsible asset manager
Signatory of Principles for Responsible Investment (PRI) since 20081 and rated A+ in 20192 for the quality of inclusion of ESG factors in the company’s strategy and investment management, Ostrum AM is careful to avoid endorsing a number of activities and practices that are contrary to the fundamental principles of responsibility. This approach is applied to all asset classes and asset managers use all means at their disposal to promote the emergence of a responsible economic and financial system, as Ostrum AM’s screens more than 90% of its assets for ESG criteria and manages €59 billion using an intensive SRI or ESG management process. (Source: Ostrum AM, as of June 2019).
Ostrum Asset Management has been committed to helping clients provide for their future and achieve their long-term financial goals for more than 30 years. Our portfolio managers combine high-quality proprietary research with stringent risk analysis at each stage of the investment process driving their decisions to deliver the highest quality outcomes for clients.
Ostrum Asset Management is based in Europe, with a local presence in the United States3 and Asia4, providing a full range of active fixed-income and equity expertise, along with tailored insurance investment management solutions and alternative strategies to address investors’ needs worldwide.
Ostrum Asset Management is a responsible and committed company5, ranking among the leading asset managers in Europe6 with €265.6 billion in assets under management7 for institutional clients, individual investors and distributors.
Ostrum Asset Management is an affiliate of Natixis Investment Managers.
1 In 2008, Ostrum AM operated as Natixis Asset Management, RCS Paris 329 450 738. On October 1st 2018, Ostrum AM began operating an affiliate of Natixis Investment Managers
2 Ostrum AM is a PRI signatory since 2008. In 2019, Ostrum AM is rated A+ on all categories. Methodology: www.unpri.org References to a ranking or a rating do not indicate the future performance of the fund manager.
3 US via Ostrum AM U.S., LLC, limited liability company, registered as an investment adviser with the SEC.
4 Asia via Ostrum AM Asia Limited – Registered as a fund management company with the Monetary Authority of Singapore – An Ostrum AM subsidiary and via Ostrum AM Hong Kong Limited, subsidiary of Ostrum AM Asia Limited.
5 Ostrum AM was one of the first French asset manager signatories to the PRI in 2008. More details; www.unpri.org
6 IPE Top 400 Asset Managers 2019 ranked Ostrum AM as the 68th largest asset manager, as at 12/31/2018.
7 Ostrum AM – 06/30/2019.
Ostrum Asset Management
An affiliate of Natixis Investment Managers
French Public Limited liability company with board of Directors
Share capital €27 772 359
Regulated by the Autorité des Marchés Financiers (AMF) under no. GP 18000014
RCS Paris n° 525 192 753
43 avenue Pierre Mendès France
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France, 75013 Paris
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.