MEDIA RELEASE – 20 December, 2022
IML Sustainable Future Fund launches with seed funding from Natixis Investment Managers
IML, one of Australia’s most successful value fund managers, today launched the IML Sustainable Future Fund, an actively managed, ESG-focused fund, that invests in Australian equities. The Fund has been seeded by Natixis Investment Managers, a top 20 global asset manager1.
Damon Hambly, IML’s Chief Executive Officer, says he is excited by the prospects for the fund:
“From speaking to our clients, and examining the funds available on the market, we believe there is a real need for a fund like the IML Sustainable Future Fund. 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.
While IML has been a signatory of the United Nations Principles of Responsible Investment since 2008, and has a strong track-record as an active shareholder improving company governance, this Fund will take things further.”
The Fund follows the same investment philosophy as all of IML’s funds, which incorporate ESG as 25% of their quality scoring framework, while also applying additional ESG specific investment processes. IML’s Head of ESG, Tim Wood, who will manage the fund alongside Daniel Moore, explains:
“The IML Sustainable Future Fund has a simple purpose: to invest in companies that aim to deliver attractive long-term returns for investors and 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. We only include companies that do no significant harm and have genuine ambition to improve their impact on the world. The Fund aims to have at least 30% better emissions intensity than the ASX overall.”
Louise Watson, Natixis IM Country Head for Australia and New Zealand, explains why they are backing the fund:
“Sustainable investing is a global priority for Natixis Investment Managers. We have a strong history of launching dedicated strategies which support our clients in better aligning their values with investment outcomes. 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.”
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.
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Notes to editors
The IML Sustainable Future Fund (SFF) is an actively managed fund for Australian and New Zealand investors. It follows IML’s proven investment process which uses fundamental, bottom-up research to identify quality companies, at reasonable prices, with the potential to deliver attractive capital growth and income for investors over the long-term.
IML has been a signatory to the United Nations Principles of Responsible Investment (UNPRI) since 2008, and currently incorporates ESG screening as 25% of its quality scoring framework. In addition to IML’s proven investment process, the SFF applies additional processes:
- Negative The SFF will not invest in any companies that ‘do significant harm’, including companies that derive more than 10% of their revenue from: tobacco production, gaming, pornography, thermal coal, weapons or armaments.
- Positive screen. The IML Conscience Vote is an important test before IML considers investing in a company for the After all our research and analysis, do we believe that this company has genuine ambition to improve or maintain strong ESG credentials? We exclude companies which we do not believe have this ambition.
- Emissions intensity. IML will construct the SFF portfolio to aim for overall emissions intensity at least 30% better than the ASX
About Investors Mutual Limited (IML)
IML is a specialist Australian Equities Fund Manager, established in 1998. IML is recognised for its true-to-label ‘quality and value’ investment style that has been successfully applied since its inception.
The fund portfolios are constructed with a disciplined bottom-up research process, with the aim of identifying quality companies at reasonable prices, with a focus on long-term outcomes for investors. We aim to build portfolios of quality Australian equities that will deliver reasonable capital growth and consistent income over the long-term, whilst experiencing less volatility than the overall market.
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 managersi with more than $1.1 trillion assets under managementii (€1.1 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.
In 2017, Natixis Investment Managers (Natixis IM) acquired a majority ownership stake (51.9%) in Investors Mutual Limited (IML) in Australia, marking an important step in Natixis IM’s desire to have a more meaningful presence in Australia.
This information has been prepared by Investors Mutual Limited (IML) ABN 14 078 030 752, AFSL 229988. While the information contained in this report has been prepared with all reasonable care, IML accepts no responsibility or liability for any errors or omissions or misstatements however caused. This is general securities information only and is not intended to constitute a securities recommendation. This information does not account for your investment objectives, particular needs or financial situation. The relevant product disclosure statement should be considered before deciding whether to acquire or hold units in the Fund. Applications can only be made by reference to the current Product Disclosure Statement or through IDPS products that include these Funds. Potential investors should consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before deciding whether to invest, or continue to invest, in the Fund. The PDS and TMD can be obtained by contacting Investors Mutual or at iml.com.au.
i 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.
ii 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.
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