MAPFRE has acquired a 25 percent share in the French fund manager La Financière Responsable (LFR), an operation which is in line with the company’s commitment to a policy of responsible investment, and in the social dimension which is in MAPFRE’s DNA, aiming for sustainable behavior and commitment to the environment.
LFR, with headquarters in Paris and witharound 150 million euros in assets under management, is an investment boutique which was founded in 2007 by the agents Olivier Johanet and Stephane Prevost. The company manages four active mutual funds and its record is recognized within the sector as that of a company specializing in social, financial and environmental criteria in its investment in companies.
Under the terms of the agreement, which was reached via MAPFRE AM, the Group’s asset management company, MAPFRE will provide LFR with a global support framework within which it will develop its important investment research and analysis model.
MAPFRE will market the funds managed by LFR through its Luxembourg platform, or directly to institutional investors. This alliance also involves the launch of new products for institutional and equity investors looking for transparency in the management of ESG assets.
Commitment to socially responsible investment
“In MAPFRE” explained Antonio Huertas, Chairman and CEO of the company, “it’s impossible to develop sustainable businesses over time if we don’t take care of the social footprint we leave behind. We are a socially responsible business group, and are committed to the environment, our clients and our entire organization. In this regard, LFR complements MAPFRE’s experience and proposals for service in environmental, social and good governance investment”.
In line with this strengthening of socially responsible investment, last May MAPFRE joined the global network of signatories to Responsible Investment Principles, an initiative in collaboration with the United Nations Global Compact, which has the objective of understanding the impact of environmental, social and governmental issues on investment.
At the beginning of this year, MAPFRE launched the Good Governance Fund in Spain, a mutual fund combining investment in value and good corporate governance
Since its creation, LFR has developed an investment process based on financial criteria and ESG: the IVA© integral value approach. The method uses a proprietary database: an owned data base: the Huella Ecosocial. Updated every year since 2006, the Huella Ecosocial contains data on more than 120 ESG indicators for 160 companies in the Eurozone. The standardized quantitative indicators enable comparison between companies and business lines. This proprietary database is owned data base is particularly useful in the context of increased demand for non- financial information arising from environmental regulation.