Spain domiciled insurer Mapfre has acquired a 25% stake in French responsible investment manager, La Financiere Responsable (LFR), a strategic agreement that provides the latter with access to Mapfre’s global network while enhancing the insurer’s responsible investing.
The agreement combines Mapfre’s long-term commitment to corporate social responsibility with LFR’s proprietary tools and expertise and experience in SRI/ESG management.
The arrangement fee has not been disclosed, but it’s been announced that the deal provides Mapfre with a 25% stake in LFR, enhancing the company’s responsible investing practices.
The announcement underlines Mapfre’s endorsement of the Integral Value Approach (IVA) methodology that is used by LFR to value stocks, an approach that is based on consistent and reliable primary data.
According to an announcement on the arrangement, LFR’s team analyses over 120 ESG indicators for 160 Eurozone companies, using its L’Empreinte Ecosociale tool. Currently, LFR has around €147 million (US$170mn) of assets under management (AuM).
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.”
Funds that are managed by LFR will be offered through Mapfre’s Luxembourg platform, or directly to institutional investors and, the arrangement between the pair also involves the launch of new solutions for both institutional and high net worth investors.
Jose Luis Jimenez, Mapfre’s Chief Investment Officer (CIO), added; “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.”
