IML launches ESG-focused fund
Value fund managers IML have launched an actively managed ESG-focused fund, seeded by Natixis Investment Managers.
The newly-formed IML Sustainable Future fund would aim to have at least 30% better emissions intensity than the ASX overall and would use IML’s “rigorous, stock-by-stock analysis” to find companies listed on the ASX that delivered sustainable outcomes and attractive long-term returns for investors.
The fund would be handled by head of ESG, Tim Wood, and portfolio manager Daniel Moore.
According to Damon Hambly, IML CEO, the IML Sustainable Future fund addressed a real need in the market.
“Many of our clients are looking for IML-style investing, which aims to deliver attractive capital growth and income with lower volatility and better downside protection than the overall sharemarket, but they want to ensure they’re also supporting companies with strong sustainability ambitions,” he stated.
As a signatory of the United Nations Principles of Responsible Investment since 2008, IML incorporated ESG screening as 25% of its quality scoring framework. The sustainable fund would apply additional processes like negative screens to avoid companies that derived more than 10% of their revenue from tobacco production, thermal coal, armaments, or pornography; and positive screens to review a company’s ambitions on strong ESG credentials.
Louise Watson, Natixis IM country head for Australia and New Zealand, highlighted the asset management company’s commitment to sustainable investing in backing the fund.
“We have a strong history of launching dedicated strategies which support our clients in better aligning their values with investment outcomes,” she said.
“IML has demonstrated clear value to its investors over the last 25 years, especially as an active shareholder, and we look forward to supporting the team on their continued work with Australian companies in delivering a better, more sustainable future for investors.”
AUTHOR
Rhea Nath
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
