Natixis Investment Managers Launches Mirova US Climate Ambition SMA

Published on 04/20/2021 Press releases
  • Mirova US Climate Ambition Equity strategy seeks to have a high positive climate impact by making investments that lead to reduced carbon emissions and increased saved emissions, while outperforming the S&P 500
  • Strategy’s track record extends over four years
  • Managed by Mirova, a global leader in impact investing and part of the Net Zero Asset Management initiative

Natixis Investment Managers (Natixis) today announced the Mirova US Climate Ambition Equity investment strategy is now available to financial advisors and their clients through retail separately managed accounts (SMAs). The strategy is managed by Mirova, an affiliate of Natixis Investment Managers and certified B Corporation dedicated to sustainable investment1, and one of only 20 asset managers selected by the Principles for Responsible Investment (PRI) organization to the PRI Leaders Group 20202.

The Mirova US Climate Ambition Equity strategy is a diversified core US equity portfolio with a four-year track record designed to have a high positive climate impact by investing in a diversified range of companies, including companies whose activities will lead to a significant reduction in induced carbon emissions and/or a significant increase in saved carbon emissions. The strategy also seeks to actively invest in firms that derive more than 50% of their revenues from activities with a positive climate impact, which are likely to benefit from a transition to a less carbon-centric economy. The strategy seeks to outperform the S&P 500 within a defined risk budget.

We believe that investors can outperform the market in the long-term by investing in high-quality companies that will help to reduce carbon emissions and contribute to a more sustainable economy. Offering the Climate Ambition strategy as a retail SMA enables advisors and their clients to access it in a format that was previously only available to institutional investors.

Jens Peers
CEO and CIO at Mirova US

The Mirova US Climate Ambition strategy uses a proprietary quantitative, rules-based approach to portfolio construction, integrating considerations such as a qualitative sustainability analysis of each investment based on environmental, social and governance (ESG) criteria, an assessment of risk factors including those related to energy transition, and fundamental views on companies’ climate impact, incorporating an advanced lifecycle approach to the assessment of carbon impact. Mirova is a signatory of the Net Zero Asset Management initiative, and like all of Mirova’s equity portfolios, the strategy is aligned with a <2°C global warming scenario, in line with the Paris Agreement3.

“Client demand for climate-focused investment strategies has never been stronger, and expanding access to the Mirova US Climate Ambition strategy through a retail SMA provides investors with an efficient way to invest in this well-established strategy,” said David Giunta, CEO for the US at Natixis Investment Managers.

The strategy is co-managed by Manuel Coeslier and David Belloc, CFA®, and is managed by Mirova US LLC. Coeslier is a portfolio manager and SRI analyst at Mirova who specializes in measuring the impact of investment portfolios on climate and the energy transition. He led the development of
Mirova’s carbon assessment methodology and has been a member of the European Commission’s Technical Expert Group on Sustainable Finance where he particularly worked on climate benchmarks. Belloc is a cross-asset Portfolio Manager at Mirova with more than 20 years of investment experience. Earlier in his career he managed strategies in quantitative equities, smart beta and convertible bonds. The team also draws on a global team of multi-disciplinary specialists and a Responsible Investment Research Team with analysts dedicated to ESG research.

The Mirova US Climate Ambition strategy was previously available through institutional separately managed accounts and will now be available to retail investors through financial advisors via model delivery, single contract and dual contract SMA programs.

Mirova also manages three equity mutual funds available to US investors, the Mirova US Sustainable Equity Fund (MUSYX), the Mirova International Sustainable Equity Fund (MRVYX), and the Mirova Global Sustainable Equity fund (ESGYX). All three strategies are also available to eligible financial advisors and their clients as SMAs. The firm also offers an ESG fixed income mutual fund, the Mirova Global Green Bond Fund (MGGYX).

1 - 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 Fund's universe of investments may be reduced. It may sell a security when it could be disadvantageous to do so or forgo opportunities in certain companies, industries, sectors or countries. This could have a negative impact on performance depending on whether such investments are in or out of favor.
2 - The Principles for Responsible Investment (PRI) is the world’s leading proponent of responsible investment. It began in 2005 when the United Nations invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment. The Principles were launched in April 2006 at the New York Stock Exchange. Since then the number of signatories has grown from 100 to over 3,000.
3 - Per the Paris Agreement, its goal is to limit global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels.