MAPFRE AM, the asset management arm of Spain’s largest insurance Group, has acquired a further 26% equity stake in French ESG specialist mutual fund boutique La Financière Responsable (LFR), taking its total holding to 51% as it targets growth of SRI derived strategies and seeks to boost its international footprint into the French fund market.
MAPFRE AM previously acquired 25% of LFR in 2017 to adopt its proprietary ESG-focused stock selection process, which aligns with MAPFRE AM’s strategic approach to responsible investment and economic, social, and environmental (ESG) commitments. At the time, this was the first transaction involving a Spanish asset management company buying into a foreign firm in the industry.
The deal secured MAPFRE AM access to an exclusive strategy and methodology for selecting investments and applying ESG criteria to new products, as well as to the rest of the Group’s range of funds and balance sheet.
Business upsides flowing from that initial stake and the positive ongoing relationship between MAPFRE AM and LFR has led to growing the stake.
“Since 2017, we have been committed to sustainable investment, and LFR has nearly 25 years of such experience in this industry. In the past five years, we have jointly launched SRI products, which have the peculiarity of having their own methodology for the final selection of the securities that make up the funds’ portfolios, something that is highly appreciated by our clients.”
José Luis Jiménez, MAPFRE Chief Investment Officer.
An example of synergies seen at the product level is the MAPFRE AM Inclusión Responsable fund, which has been cited by the United Nations Global Compact as an example of best practice. The fund’s portfolio encompasses those companies most committed to labour inclusion of people with disabilities.
Another is the MAPFRE AM Capital Responsable fund. Qualified as an EU Sustainable Finance Disclosure Regulation (SFDR) Article 8 mutual fund and holding a ‘Label ISR’ from the labeling scheme supported by the French government, it recently was awarded a Five-Star rating from Quantalys, the independent fund data and analysis provider.
LFR, which has assets of nearly 650 million euros, will maintain operations with its customers and retain the brand.
“Since 2017, the Mapfre and LFR teams have been working together in order to develop an excellent relationship and cooperation that benefits the clients of both companies. We very much welcome this closer relationship, which is a very important step in broadening the scope of our partnership.”
Olivier Johanet, President of La Financière Responsable.
MAPFRE AM is renewing its confidence in the current teams at LFR to continue to build its investment capacity and grow in the European market with institutional investors, IFAs, and other asset managers.
MAPFRE globally
The MAPFRE Group continues to grow its asset management business internationally through MAPFRE AM.
Current sales capacity is focused in Spain and Latin America – including the MAPFRE Investimentos subsidiary in Brazil.
The MAPFRE AM SICAV in Luxembourg is the second largest of its kind belonging to a Spanish fund manager, with assets of more than 1.2 billion euros. The SICAV offers passport-free distribution across the EU internal market in both institutional and retail share classes.
Funds are also registered in the United Kingdom and Malta, while sales will now be promoted in the French market.
