Questions Before Answers. Solutions Before Products.
Developing the right strategy starts with understanding what environmental, social, and governance (ESG) means to our clients. It starts with a conversation. At Natixis Investment Managers, our approach to ESG begins with a deep dive into our clients’ objectives. We work in a consultative approach to create a solutions-based fashion to help meet them, drawing on the expertise of our 20+ independent asset managers.
There are many pathways to ESG investing to meet a variety of objectives. One thing is clear: As ESG gains momentum around the world, investors of all kinds are paying attention. And for good reason.
Uncovering Motivations, Dispelling Myths
Below, we identify, clarify, and challenge what we believe to be many of the biggest misconceptions about ESG and sustainable investing so that conversations with clients can be more comfortable and productive.
Better World or Better Returns? ESG Investing Can Potentially Mean Both.
Investing in ESG strategies doesn’t have to mean choosing between profit and personal values. Sustainable investing can be both a means — and an end. In terms of determining if they’re implementing ESG considerations to be a better investor or make a better world, the answer from institutional investors appears to be "yes."11
No matter what the objectives, we have a range of ESG solutions designed to help our clients achieve them.
ESG can be both a means — and an end
Sophisticated Products and Solutions Designed with ESG in Mind
We’re dedicated to advancing sustainable finance by developing products and alliances devoted to ESG.12 95% of our assets are managed by Principles of Responsible Investment (PRI) signatories.13
Your Objectives. Our Solutions.
We offer a wide range of strategies to address different objectives, including values alignment, influence, impact, outperformance, regulatory landscape, and risk management.
1 Natixis Investment Managers, Global Survey of Individual Investors conducted by CoreData Research, February-March 2019. Survey included 9,100 investors from 25 countries.
2 Natixis Investment Managers 2021 Global Fund Selector Outlook, conducted by CoreData Research in November and December 2020. Survey included 400 respondents in 23 countries.
3 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.
4 Natixis Investment Managers 2021 Global Fund Selector Outlook, conducted by CoreData Research in November and December 2020. Survey included 400 respondents in 23 countries.
5 Report on US Sustainable and Impact Investing Trends 2020, US SIF and US SIF Foundation
6 Natixis Investment Managers, Survey of US Defined Contribution Plan Participants conducted by CoreData Research, January and February 2019. Survey included 1,000 US workers, 700 plan participants and 300 non-participants. Of the 1,000 respondents, 503 were Millennials (age 23-38), 249 were Gen X (age 39-54) and 248 were Baby Boomers (age 55-73).
7 MSCI ESG Research, LLC, “Foundations of ESG Investing Part 1: How ESG Affects Equity Valuation, Risk and Performance.” Contributors: Guido Giese, Linda-Eling Lee, Dimitris Melas, Zoltan Nagy, Laura Nishikawa. July 2019.
8 The Morningstar Sustainability Rating™ for funds allows investors to understand how the companies in their portfolios are managing their environmental, social, and governance – or ESG – risks relative to their peers. This rating is built to enable advisors and investors to directly compare companies across industries, and a refined design aims to make it easier to use as they make investment decisions.
9 The MSCI ESG Universal Index Family is the latest in a suite of MSCI Indexes and tools designed to help institutional investors globally integrate ESG into their investment decision-making processes.
10 Governance & Accountability Institute, Inc., Flash Report: 85% of S&P 500® Index Companies publish Sustainability Reports in 2017. S&P 500® Index is a widely recognized measure of US stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors. It also measures the performance of the large-cap segment of the US equities market.
11 Natixis Investment Managers, Global Survey of Institutional Investors conducted by CoreData Research in October and November 2020. Survey included 500 institutional investors in 29 countries.
12 Not all affiliated investment managers integrate ESG considerations into decision-making to the same extent. Investors should review offering documents before investing in any strategy to fully understand the ESG integration practices used by that investment manager.
13 Assets under management (“AUM”) as of March 31, 2021. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers. Being a PRI signatory does not assure that any ESG considerations are implemented in every strategy managed by the affiliated investment manager. PRI signatory firms demonstrate a commitment to adopt and implement the PRI, where consistent with fiduciary responsibilities. Affiliated investment management firms that are signatories to the Principles for Responsible Investment (PRI): PRI signatory firms demonstrate a commitment to adopt and implement the PRI, where consistent with fiduciary responsibilities. Affiliated firms that are PRI signatories oversee $1,291.4B / €1,098.9B / £936.0B (or 95 percent) of Natixis Investment Managers assets as of March 31, 2021. The PRI were developed by an international group of institutional investors with the support of the United Nations Secretary General. They are voluntary and aspirational, offering a menu of possible actions for incorporating environmental, social, and corporate governance (ESG) issues.
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.
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. You cannot directly invest in an index.