G Fund Equity Convictions ISR, Groupama AM’s first SRI fund, is 20 years old!

28/06/2021

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Groupama Asset Management pioneered responsible investment back in 2001 with the launch of Euro Capital Durable, a eurozone equity fund (which was renamed G Fund Equity Convictions ISR in June 2020). A look back at the key moments that have marked the management of this pioneering and innovative fund and contributed to its success for 20 years.

The launch of the fund signalled the commitment of the entire company to sustainable finance, long-term investment, more transparent governance and to proactively helping to confront the environmental and social challenges of our time.

This was the beginning of a long-term commitment, as witnessed in Groupama’s role as founder member and signatory of the PRI1 (2006), the ESG country analysis methodology (2010), the Green Bonds analysis methodology (2015), the merging of the financial and extra-financial analysis teams (2016), etc.

As a long-term investor, Groupama AM seeks to identify the investment opportunities generated by environmental and social transformations and their positive impacts on the economy, in order to combine the financing of a sustainable economy with robust performance.

That was the vision underlying the creation of G Fund Equity Convictions ISR2.

Fundamental analysis, dialogue with issuers, strict requirement to adopt the SRI management approach and the strong convictions of the management team constitute the DNA of the fund. From the start, G Fund Equity Convictions ISR incorporated ESG criteria alongside financial criteria, in order to deliver sustainable and robust performance through analysis of all aspects of the issuing companies.

Unlike funds that focus on one or two ESG pillars, G Fund Equity Convictions ISR is a fund that is representative of the real economy. In this capacity, its investments are based on the simple principle that each sector has its role to play in the transition to a more sustainable economy.

 

Juliette De Montety

The inclusion of material ESG criteria provides essential information to the management team on how companies are impacted by and anticipate the major transitions that they are facing.

Juliette de Montety
Fund Manager

Since its launch, G Fund Equity Convictions ISR has benefitted from a stable and experienced management team that implements an SRI management approach founded on convictions that are guided by the team’s identification of the transformations of the economy and the risks and new opportunities for added value that these changes bring with them.

Most of the securities present in the portfolio 20 years ago have followed the changes in the market and in public mentalities. However, the gradual  integration of ESG took place at contrasting rates, depending on the sectors and organizations concerned.

For example, some securities were particularly active in this domain. This was the case of l’Oréal. This “Best Practicer” 3 company was able to employ the culture of ESG as a lever for the development of its business model.. Other companies have acted as “Pure Players 4” committing to specific sustainable solutions or products.. This is the case, for example, of Schneider, a pure player in energy efficiency, or Neste Oyj, the world leader in renewable diesel” adds Juliette de Montety.

The integration of ESG by a constantly increasing number of players has acted as a catalyst for companies to improve their ESG policies and practices. This improvement has benefitted G Fund Equity Convictions ISR, which has an investment universe consisting of companies with better ESG practices than in 2001.

So, G Fund Equity Convictions ISR is continuing its path as pioneer, through the improvement of its analysis work and the identification of the risks and financial opportunities for an increasingly sustainable and high-performing selection of stocks.

 

 

 

1 PRI: Principles for Responsible Investment

2 Original name: Euro Capital Durable

3 Best Practicers: companies that implement a dynamic ESG policy in which ESG culture is fully integrated in the company’s development strategy.

4 Pure Players: companies engaged in sustainable development questions via specific solutions or products.

 

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