Global Sustainable Equity Fund

Product Name

Global Sustainable Equity Fund

Issuer

Mirova

Category

Investment

Type

Fund or Trust

Target

Wholesale, Institutional

Certified Since

2020

Asset Classes

International equities

Markets

New Zealand, Australia

Investment Approaches

Sustainability themed, ESG Integration

It Includes:

  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and energy efficiency
  • Riaa icons 15 Social and sustainable infrastructure
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water
  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 45 Genetic engineering
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 36 Armaments
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations

Overview

The Fund follows a multi-thematic responsible investment strategy focused on sustainable development. The Fund is actively managed, combining strong views on sustainable themes and stock picking. The investment process relies on stock picking based on a deep fundamental analysis of companies, combining both financial and ESG (Environmental, Social and Governance) considerations. This analysis shall ensure that the company meets the following criteria: - The ability to provide positive innovative solutions to tackle issues related to the demographic, environmental, technological and governance transition of the world and our economic model; - The sustainable quality of the business model including its competitive positioning, management team and capacity to finance growth; - The overall quality of their ESG practices. The investment process is not based on a quantitative process. The Fund will seek to invest in companies benefiting from long term growth outlooks and offering attractive valuation over a medium-term period.


Description


Investment Management
In order to generate long term outperformance, traditional financial analysis is combined with ESG analysis.  For the latter, the in-house research team focuses both on opportunities (idea generation) and risks. They ask themselves two questions. What does a company do (i.e. does it provide solutions for the long term sustainable development of our economy) and how does a company do its business (with enough respect for ESG criteria)?   The strategy’s management approach is fundamental, active, and conviction-based.

The security selection process aims at looking for financially sound companies with strong fundamentals that demonstrate a commitment to a sustainable business model, product quality, business ethics and corporate responsibility.

Investment Guidelines
The Fund invests at least 80% of its net assets in world equity securities of companies which are developing products or services to respond to key sustainable issues on 8 sustainable themes: energy, mobility, building and cities, management of natural resources, consumption, healthcare, IT and finance. 

The portfolio construction is driven by the Sub-Investment Manager’s conviction on the best investment opportunities without constraint regarding market capitalisations, sectors and weights compared to the benchmark. The Fund may significantly diverge from the benchmark.

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