IML has introduced its new Sustainable Future Fund, an actively managed ESG-focused fund that has been seeded by global asset manager Natixis Investment Managers.
According to IML, the purpose of the new fund is to invest in companies that aim to provide attractive, long-term returns for investors along with a more sustainable future.
“We use IML’s rigorous, stock-by-stock analysis to find companies listed on the ASX that we believe can deliver on these objectives,” explained IML’s head of ESG, Tim Wood.
“We only include companies that do no significant harm and have a genuine ambition to improve their impact on the world.”
The fund seeks to have at least 30 per cent better emissions intensity than the ASX overall.
After speaking with clients and examining the funds currently available, IML CEO Damon Hambly said that the firm believed there was a real need for a fund like this to be introduced.
“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,” said Mr Hambly.
“While IML has been a signatory of the United Nations Principles for Responsible Investment since 2008, and has a strong track record as an active shareholder improving company governance, this fund will take things further.”
IML noted that the Sustainable Future Fund follows the same investment philosophy as its other funds, which all incorporate ESG as 25 per cent of their quality scoring framework. The new fund also applies additional ESG-specific investment processes.
Natixis Investment Managers’ country head for Australia and New Zealand, Louise Watson, said that sustainable investing is a global priority for the asset manager.
“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.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.