Ostrum Asset Management: First French asset manager to obtain the SRI label for its entire range of sovereign bond funds in euro
Ostrum Asset Management (Ostrum AM), an affiliate of Natixis Investment Managers, has been awarded the French government's SRI label1 (Socially Responsible Investment) for its entire range of open-ended funds invested in eurozone and OECD sovereign bonds. This certification validates the soundness of Ostrum AM's selection process and its commitment to investors as a responsible asset manager.
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A wide range of SRI sovereign funds
This is a new step forward for Ostrum AM in the framework of its CSR (Corporate Social Responsibility) strategy. The French government's SRI label applies to all five of its open-ended sovereign bond funds2, also classified as SFDR Article-8, representing €1.8 billion under management3. Actively managed, this broad range of sovereign funds consists of three maturity funds, one all-maturity fund and one absolute return fund:
- Ostrum SRI Euro Bonds 1-34
- Ostrum SRI Euro Bonds 3-54
- Ostrum SRI Euro Bonds 5-74
- Ostrum SRI Euro Sovereign Bonds5
- Ostrum SRI Total Return Sovereign6
A rigorous and robust SRI sovereign process
For all of its euro-denominated sovereign funds, Ostrum AM systematically takes into account ESG criteria7 both in country selection and in portfolio construction: managers rely on a proprietary internal analysis to ensure credit quality, including ESG materiality of sovereign and quasi-sovereign issuers, as well as on a dedicated analysis for the sustainable bonds of these same issuers In addition, Ostrum AM's range of euro-denominated sovereign funds benefits from an integrated climate policy.
"With these five new SRI labels, we mark a further step in our commitment to responsible investment. Ostrum AM is mobilizing to offer relevant solutions to investors who are more and more willing to include SRI sovereign funds in their allocations" says Isabelle Sanson, Head of Sovereign Debt and Inflation Management.
1. "Created by the French Ministry of Finance, this public label aims to make socially responsible investment (SRI) funds more visible to investors. To obtain the SRI label, the certification body conducts an audit to ensure that the funds meet a set of labeling criteria. For more information on the methodology, please visit www.lelabelisr.fr." Funds are analyzed according to 4 selected ESG HR (Human Rights) indicators. The SRI label implies that the funds must obtain a better value than its universe for 2 of the HR ESG indicators. The indicators selected by the funds are the following: Carbon Intensity (E): minimum 90% coverage and Public spending on health and education (as % of GDP) (S): minimum 70% coverage.
Environmental (E) – Carbon intensity
Social (S) – Public spending on health and education (as % of GDP)
Governance (G) – Parity in national parliaments
Human rights (HR) – Parity in access to education
To learn more about the SRI label: https://www.lelabelisr.fr/wp-content/uploads/Referentiel_LabelISR_22Juillet2020_Modif.pdf.
References to a ranking, award, label and/or rating do not prejudge the future performance of the funds.
2. Funds managed by Natixis Investment Managers International and managed by Ostrum Asset Management.
3. Source Ostrum AM - Data as of 30.12.2022
4. French mutual funds (FCP) registered in France
5. French SICAV registered in France
6. Sub-fund of NATIXIS AM Funds (the "SICAV"), a Luxembourg open-ended investment company registered in France
7. ESG integration refers to the inclusion of ESG issues in investment analysis and decisions. The approach to ESG integration varies from fund to fund. ESG integration does not necessarily imply that investment vehicles also seek to generate a positive ESG impact.
Main risks of the funds: Ostrum SRI Euro Bonds 1-3; Ostrum SRI Euro Bonds 3-5; Ostrum SRI Euro Bonds 5-7; Ostrum SRI Euro Sovereign Bond and Ostrum SRI Total Return Sovereign: Loss of capital, interest rates, credit, financial futures, derivatives, low or no rating issuers, investment in inflation-linked bonds, sustainability risk Each Fund is exposed to sustainability risks as defined in Regulation 2019/2088 (Article 2 (22)) by an environmental, social or governance event or condition that, if it occurs, could have an actual or potential material adverse impact on the value of the investment. Further information on the sustainability integration framework is available on the website of the Management Company and the Sub-Investment Manager.
The information relating to the UCITS mentioned in this document does not replace that indicated in the legal documentation such as the prospectus or the DICI. The characteristics, risk and return profile and fees associated with investing in a fund are described in the fund's DICI. The DICI, the annual and interim reports are available on request from NATIXIS INVESTMENT MANAGERS INTERNATIONAL. In the case of funds with special tax status, we remind potential investors that the particular tax conditions depend on the individual situation of each client and that these conditions may be subject to subsequent changes.
About Ostrum Asset Management
Ostrum Asset Management draws on its investment expertise to enhance the impact of its clients’ commitments as they act together to support European citizens’ life plans, health and retirement.
A European institutional investment management leader1, Ostrum Asset Management supports its clients in their liability-driven investments, offering both asset management solutions on the back of its long-standing fixed-income and insurance-related management expertise (equity and fixed income), and investment services via its innovative technological platform.
Ostrum Asset Management is a well-established responsible investment advocate2 and manages €389 billion3 in assets for large institutional clients – insurers, pension funds, health insurers, corporations – as well as €542 billion3 in assets under administration for professional investors worldwide across all asset classes.
Ostrum Asset Management is an affiliate of Natixis Investment Managers.
Asset management company regulated by AMF under n° GP-18000014 – Limited company with a share of 50 938 997 €. Trade register 525 192 753 RCS Paris – VAT : FR 93 525 192 753. Reigstered office: 43, avenue Pierre Mendès-France – 75013 Paris – www.ostrum.com
1. IPE Top 500 Asset Managers (Investment & Pensions Europe) 2022 ranked Ostrum AM as the 11th largest asset manager, as at 12/31/2021. Any reference to a ranking, a rating or an award provides no guarantee for future performance.
2. Ostrum AM was one of the first French asset manager signatories to the PRI in 2008. More details; www.unpri.org
3. Source: Ostrum Asset Management, consolidated data at end-June 2022. Administered assets include Ostrum AM's assets. The services provided for a given client may concern certain services only.
About Natixis Investment Managers
Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 20 active managers. Ranked among the world’s largest asset managers1 with more than $1.4 trillion assets under management2 (€1.2 trillion), Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals.
Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France through the Banque Populaire and Caisse d’Epargne retail networks. Natixis Investment Managers’ affiliated investment management firms include AEW; AlphaSimplex Group; DNCA Investments;3 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners; Vaughan Nelson Investment Management; and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions and Natixis Advisors, LLC. Not all offerings are available in all jurisdictions. For additional information, please visit Natixis Investment Managers’ website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Investment Managers’ distribution and service groups include Natixis Distribution, LLC, a limited purpose broker-dealer and the distributor of various U.S. registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
Limited company. Authorized by the Autorité des Marchés Financiers (French Financial Markets Authority - AMF) under no. GP 90-009. Registered office: 43, avenue Pierre Mendès-France - 75013 Paris
1. Cerulli Quantitative Update: Global Markets 2022 ranked Natixis Investment Managers as the 18th largest asset manager in the world based on assets under management as of December 31, 2021.
2. Assets under management (“AUM”) of current affiliated entities measured as of June 30, 2022 are $1,156.7 billion (€1,106.7 billion). 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.
3. A brand of DNCA Finance.