Corporate Newsletter Q4 2020
Investing in Sustainability? Yes but how
Learn about what happened at Mirova during Q4 2020.
Equities & Fixed Income
Mirova among the first management funds to be awarded the Relance (“Recovery”) Label
Launched on October 19, by the French Treasury, , the aim of the label is to attract French savings to investment vehicles which support the economic recovery plan unveiled by the French Government in September 2020. Mirova is one of the first asset managers to have obtained the Relance label for its Jobs Creation Equity strategy.
Read the press release (in French)
Reference to a ranking and/or a price does not indicate the future performance of the fund or the fund manager.
Mirova chosen to implement Société Générale’s new solution
In early December, Société Générale announced the implementation of new partnerships with recognized French and international asset managers. The goal of this initiative is to offer all retail customers a revised and extended offer of savings products aimed at reconciling financial performance with social and economic impacts. Mirova was one of the asset managers chosen for this open-architecture solution.
Mirova US launches funds under Japanese and Australian law
Mirova continues its internationalization with the launch of a strategy under Japanese law in partnership with Asahi Life, and a strategy in Australia in October and November 2020, respectively. These Global Equity strategies, managed by Mirova US, target companies supporting solutions to sustainable development issues.
[1] Mirova U.S, LLC (Mirova US) is a U.S. - based investment advisor that is wholly owned by Mirova. Mirova is operated in the U.S. through Mirova US. Mirova US and Mirova entered into an agreement whereby Mirova provides Mirova US investment and research expertise, which Mirova US then combines with its own expertise, and services when providing advice to clients.
Launch of the Green Bonds strategy in Canada
On October 30, Mirova launched its Green Bonds strategy in Canada in partnership with Fiera Capital, targeting Canadian institutional investors. This strategy received an initial investment of 60 million Canadian dollars from a Canadian institutional investor.
Mirova strengthens its presence in the US
On December 15, Mirova launched a new US Equity strategy. This strategy enables Mirova to strengthen its presence and meet increasing demand from partner companies such as Merril Lynch and UBS for sustainable strategies also covering ESG (Environment, Social, Governance) criteria. It received an initial investment of 5 million dollars.
2 billion euros for our Europe Environmental Equity strategy
Mirova's strong inflows in recent years has led to significant growth in assets under management for our strategies. During the second half of 2020, the Europe Environmental Equity strategy launched in 2007 and managed by Suzanne Senellart passed the 2 billion euros mark in assets under management1.
[1] As at September 30th, 2020
These strategies are exposed to risk of capital loss.
The information presented above is neither a contractual document nor intended to be an investment advice. Access to the products and services presented here may be restricted to some persons or in some countries.
Natural Capital
Funding of agroforestry initiative in Central America
In October, the LDN (Land Degradation Neutrality) strategy signed a fifth transaction covering the financing of Cacao Oro and its certified agroforestry system in Central America. This transaction is aimed at reclaiming degraded land, protecting ecosystems, and working in collaboration with local communities. The 15 million dollars financing of the LDN strategy will enable the development of activities to restore more land and double the 2,000 hectares1 of agroforestry plantations producing UTZ-certified2 cacao and coffee.
[1] Source: Cacao Oro
[2] UTZ is a certification program for sustainable farming of coffee, tea, cocoa and hazelnuts. The program is part of the Rainforest Alliance, an international non-profit organization working to create a better future for people and nature.
Any investment has risks, including the risk of capital loss.
Energy Transition Infrastructure
Electric vehicle charging expert, DRIVECO opens its capital to Mirova
On November 24, DRIVECO an expert in electric and solar mobility, raised a significant amount of several million euros from Mirova. Mirova has invested through its Mirova-Eurofideme 4 fund1, one of Europe’s main investment funds dedicated to renewable energy and energy transition, making it a significant shareholder of DRIVECO.
[1] MIROVA EUROFIDEME 4 is a Société de Libre Partenariat (SLP) governed by French law, closed to new investment. Mirova is the management company. This fund is not subject to approval by a supervisory authority.
TTR Energy, Mirova and four institutional investors establish “Hexagon Renewable Energy”
On December 16, the investor group formed by TTR Energy through a competitive process announced the creation of Hexagon Renewable Energy SA (“Hexagon Energy”). The consortium made up of Mirova, Crédit Mutuel Capital Privé, Banque des Territoires, Amundi Transition Energétique, Generali Global Infrastructure and TTR Energy. The new Independent Power Producer (IPP) has acquired a portfolio of 19 wind projects across France for a total capacity in excess of 770 MW.
Acquisition of a 1.7 GW Portuguese hydroelectric portfolio from EDP
On December 17, Mirova, ENGIE and Crédit Agricole Assurances announced the completion of the acquisition of the second largest hydroelectric portfolio in Portugal. Valued at 2.2 billion euros, the portfolio was acquired last year after winning a competitive process conducted by EDP. The portfolio is located in the Douro valley, with 1.7 GW capacity and a weighted average concession term of 45 years. The consortium will run its activities under the newly created brand MOVHERA.
Sale of a wind farm in the Haute-Vienne Department
In November 2020, Mirova sold its 70% stake of a 10 MW wind farm located in the Haute-Vienne department, acquired prior to is construction, to its minority partner the developer-builder-operator VALOREM. This transaction allowed to materialize the unrealized capital gain (14.5% IRR on this line) and generated flows for investors.
Refinancing of a solar power portfolio
In the fourth quarter of 2020, Mirova completed a refinancing and restructuring operation of a French portfolio of ground-mounted solar power plants with a capacity of 47 MW, in operation for an average of 6 years, co-owned and operated by Engie Green. Thanks to the excellent financing conditions- following a competitive tender procedure, arranged by ENERGECO (BPCE group), the assets generated financial flows of close to 12 million euros for investors, leading to an increase in the expected IRR.
Regulation & Engagement
Mirova awarded B Corp status and becomes ‘Mission-led company’
On December 10, Mirova announced it has signed up to become a ‘Mission-led Company’1 to structure and raise awareness of its approach, while demonstrating that the role of an asset management company can go far beyond fiduciary responsibility. It also strengthens its commitment to the profound economic shift towards a fairer and more sustainable model. Mirova has also received the B CorpTM 2 certification label, an assurance of the credibility of the company's entire corporate responsibility approach.
[1] Introduced in France in 2018 under the Pacte Law, a ‘société à mission’ company must define its "raison d'être" and one or more social, societal or environmental objectives beyond profit. The purpose, and objectives aligned with this purpose, must be set out in its Articles of Association. The Articles specify the means by which the execution of the Mission will be monitored by a Mission Committee (a corporate body distinct from the board of directors which is responsible for monitoring the implementation of the mission with at least one employee.) An independent third party then verifies the execution of the Mission, via a written opinion which is annexed to the report of the Mission Committee to shareholders and made available on the website of the company for a period of five years.
[2] Since 2006, the B Corp movement has been promoting strong values of change throughout the world to make businesses “a force for good” and to distinguish those which reconcile profit (for profit) and collective interest (for purpose). B Corp’s goal is to certify companies that integrate social, societal and environmental objectives into their business model and operations. More details here.
Reference to a ranking and/or a price does not indicate the future performance of the fund or the fund manager.
Mirova and five investors created the 30% Club France Investor Group
On November 11, six asset management companies representing nearly 3 trillion euros1 in assets under management – Mirova, Amundi, AXA Investment Managers (AXA IM), La Banque Postale Asset Management (LBP AM), Sycomore Asset Management and Ostrum Asset Management,– have created the 30% Club France Investor Group in order to promote better gender diversity within the SBF 1202’s executive management teams.
[1] As at September 30th, 2020
[2] The SBF 120 is a French stock market index on the Paris stock exchange which includes the 120 most liquid stocks on the French primary and secondary market. It includes CAC 40 companies as well as 80 other listed companies whose securities are the most liquid.
Publications
Supporting companies generating employment in France – 2020
Mirova published its third report on the impact of its Jobs Creation Equity strategy. In this unprecedented context, faced with increasing French labor market uncertainty fueled by the health and economic crisis, this report was the opportunity to reaffirm the commitment of Mirova management teams to funding virtuous companies creating sustainable and shared value, while also supporting employment in France.
Read the report (in French)
"Mirova : Creating Sustainable Value #5"
Understanding the markets, investing, engaging in dialogues, measuring Impact. On October 28, Mirova published the fifth issue of "Mirova: Creating Sustainable Value".
Our concept of impact
The concept of impact investing is increasingly prevalent in the financial industry. At Mirova, certainly, impact serves as a core structural feature of our corporate purpose. Yet there is, to date, no clear consensus on what this notion comprises, nor on the financial sector’s exact relationship to reorienting our economies towards sustainable development.
Events & Sponsoring
Mirova partners with the Grands Prix de la Finance Solidaire
The 11th edition of the Grands Prix de la Finance Solidaire (Solidarity-based financing awards) took place on November 2. Mirova, a historical partner of the event, supported this latest edition. At the event, Fabien Leonhardt, manager at Mirova and head of the Solidarity division, spoke about the the Jobs Creation Equity strategy, one of the longest-running solidarity strategies.
Learn more about the event (in French)
Mirova supports the 7th OECD forum on green finance and investment
Mirova supported the 7thOECD forum on green finance and investment, which took place on October 6-9. Financing the economic recovery and maintaining green financing momentum and green investment were the main points discussed during the four-day event. Philippe Zaouati took part in the “Unlocking financing for biodiversity from private investors” conference.
Mirova sponsor of the World Impact Summit
On October 29 and 30, the World Impact Summit (WIS) took place, with Mirova’s support.
Awards & Rankings
Mirova in the Top 10 companies genuinely committed to ESG
For the third year in a row, Mirova makes the Top 10 of companies genuinely committed to ESG in the H&K Responsible Investment Brand Index 2020, just released latest study which highlights the asset managers that are leading the way with their commitment to ESG.
For more information on the reward methodology, please refer to the website www.ri-brandindex.org
Mirova joins the PRI Leaders group
Mirova announced on October 8 that it has joined the PRI Leaders group*, a group of 36 companies considered by the Principles for Responsible Investment (PRI) organisation to be at the forefront of this year's theme: climate reporting.
For more information on the reward methodology, please refer to the website www.unpri.org
Citywire Italia awards: Suzanne Senellart "best performing fundmanager"
Last December, Mirova was rewarded at the Citywire Italia 2020 awards. Suzanne Senellart, Mirova’s leader for Environmental Equity strategies, received the "2020 Best Performing Fundmanager"* award within the European Equity category.
For more information on the reward methodology, please refer to the website CitywireItalia (in Italian)
Mirova among the top 100 fund managers
For this end of year 2020, two Mirova fund managers achieved the highest ranking (AAA)* in the annual ranking carried out by Citywire. The latter is based on the risk-adjusted performance of investment fund managers. Suzanne Senellart was ranked 4th for her Europe Environmental Equity strategy. Jens Peers was ranked 32nd for his Global Sustainable Equity strategy.
*Reference to a ranking and/or a price does not indicate the future performance of the fund or the fund manager.
Past performance and simulations of past and future performances are not a reliable indicator and therefore do not anticipate future results.
Investments in the funds are mainly subject to a risk of capital loss.
Read previous issues
Investing in Sustainability? Yes but how. Learn about what happened at Mirova during Q4 2019.
Investing in Sustainability? Yes but how. Learn about what happened at Mirova during Q1 and Q2 2020.
Investing in Sustainability? Yes but how Learn about what happened at Mirova during Q3 2020.