French investment boutique La Financière Responsable (LFR) and Spanish insurance giant MAPFRE are entering into a strategic partnership to bring together LFR’s innovative proprietary tools and recognized expertise in SRI/ESG management with MAPFRE’S long term commitment to corporate social responsibility.
The move by MAPFRE is a major endorsement of the Integral Value Approach© (IVA) methodology used by LFR to value stocks. Using its L’Empreinte Ecosociale© tool LFR’s eight strong team analyses more than 120 ESG indicators for 160 Eurozone companies using information provided directly by the companies – not secondary research. The approach is based on consistent, reliable primary data, including non-financial, information increasingly being requested by end investors who seek to invest according to ESG principles.
The arrangement, for an undisclosed sum, gives MAPFRE a 25% stake in LFR while providing the boutique with access to MAPFRE’s global network. LFR currently has around €147m AuM.
LFR managed funds will be offered through MAPFRE’s Luxembourg platform or directly to institutional investors. The strategic alliance will also involve the launch of new products for institutional and high net worth investors looking for transparent and accurate ESG metrics.
LFR Chairman Olivier Johanet said, “We are very pleased to initiate a new stage in LFR’s development with an internationally recognised institution such as MAPFRE and to welcome it as a partner and shareholder. Not only will we able to support MAPFRE in its determination to develop ESG focused funds for markets throughout the world, but it also provides us with the opportunity to extend our funds into new international markets.”
MAPFRE Chief Investment Officer José Luis Jiménez said, “LFR will reinforce MAPFRE’s expertise and service proposition in Environmental, Social and Governance investing. The new relationship offers MAPFRE Group and our asset management company, MAPFRE AM, a real opportunity to play a part in the CSR debate. “The unique LFR approach, its ESG data integration methodology, its innovative tools and the quality and consistency of its investment process, is a great example of how innovative boutique asset managers can lead the asset management industry in rapidly expanding areas such as ESG driven investment.”