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Responsible Investment Policy

 

Seeyond is an asset management company founded in 2018 which specializes in active quantitative portfolio management that seeks to optimally reward risk. Seeyond, as a stand-alone asset management company, is a signatory of the UN Principles of Responsible Investment (UN PRI) since its creation in 2018. Prior to this, Seeyond was a signatory of the PRI from 2008 to 2018 as a division of the former Natixis Asset Management group (today Ostrum Asset Management).
Considering the specificities of the investment process, the implementation of Environmental, Social and Governance (ESG) criteria throughout Seeyond’s strategies is at different stages of implementation by asset classes. It is currently being structured to be meaningfully incorporated in all Seeyond’s quantitative approaches to portfolio management:

 

On Equities*

Seeyond's approach involves the implementation of exclusionary policies and sustainable voting policy:

  • Exclusion policies:

Seeyond refuses to support sectors or issuers fail to respect fundamental principles of corporate social responsibility. This is central to the credibility of its responsible approach and fiduciary duty to its clients. Seeyond’s Equity investment team benefits from the extra-financial research expertise of Mirova, Natixis Investment Managers’ affiliate dedicated to Responsible Investment. Mirova's extra-financial research team comprises expert extra-financial analysts. They filter information from a large range of internal and external sources using a proprietary methodology to provide portfolio management teams with quantitative and qualitative assessments of issuers from an E, S and G perspective. Covering a broad universe of issuers (more than 3,700 rated, 99.29% of the MSCI World covered), these ESG assessments are made available to Seeyond's portfolio managers.

Consistently, Seeyond applies the following exclusion policies:

Controversial weapons: exclusion of any companies involved in the production, use, storage, sale and transfer of anti-personnel mines and cluster bombs in accordance with the Ottawa convention and Oslo Treaty, to both of which France is a signatory.

Blacklisted states: Seeyond does not invest in countries subject to US or EU embargo, mentioned on the EU list of non-cooperative jurisdictions for tax purposes or which have been identified by the Financial Action Task Force as having strategic AML/CFT deficiencies.

Worst offenders: exclusion of all companies, listed or unlisted, who fail to respect the principles of the UN Global Compact or the OECD's Guidelines for multinationals and have been publicly excluded by institutional investors based on these principles.

Coal: exclusion of issuers who earn more than 50% of revenue from coal mining or coal-fired power generation, exclusion of companies whose principal activity lies in the production, transport or sale of coal extracted by Mountain Top Removal methods.

* Excluding Index-linked portfolios which are constrained by their benchmark indices and client dedicated equity portfolios to which the client’s policy might apply.

  • Voting policy:

Consistently with Seeyond’s policy and with its commitments as a PRI signatory, the voting policy reflects the company’s aim to help promote a better incorporation of ESG issues in companies’ practices. Since 2019, Seeyond has chosen Institutional Shareholder Services (ISS), the world’s leading provider of corporate governance and responsible investment, and its Sustainability proxy voting guidelines. The policy framed by a large number of internationally recognized sustainability-related initiatives (UNPR, UNGC, GRI, etc.). Seeyond exercises its voting rights over a broad universe and takes into account environmental, social and governance issues. More information on Seeyond’s voting policy on Seeyond’s website.

 

Other investment processes:

Aside from the exclusion of blacklisted states when applicable, Seeyond currently does not consider ESG criteria when investing in other asset classes. However, work is under way on how they might be incorporated consistently to Seeyond’s quantitative investment approaches.

 

As of 31/03/2019, 64% of Seeyond’s AUM, i.e. EUR 5.7 billion, are managed taking ESG criteria into account.

Source: Seeyond