Fund Rationale: Mirova Global Sustainable Equity Fund

Mirova Global Sustainable Equity Fund (the “Fund”)
SGD Retail Accumulation Shares (ISIN: LU1712237335)
Fund Manager Page
Mirova is an affiliate of Natixis Investment Managers.

Endowus have selected the Fund for its robust ESG methodology, high quality management team and proven track record.

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Key Information

Fund Objective: Seeks to outperform its benchmark, the MSCI World Index, through investments in companies whose businesses include activities related to sustainable investment themes over the recommended minimum investment period of 5 years.

Suitability: Investors who are looking for an exposure to global equity markets via investments in companies whose business include activities related to sustainable investments, can afford to set aside capital for at least 5 years, can accept temporary and/or potential capital losses, and can tolerate volatility.

Cost:
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* Total Fund-level Fees include fund management fee of 1.80%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 24 May 2013
Share Class Inception: 28 April 2020
Benchmark: MSCI World Index

Fund AUM: SGD 4.6bn
Source: MorningStar as of 5 March 2021. Please refer to the FMC page for the most updated AUM.

🌱EU SFDR Rating: Article 9
Article 9 Funds are  committed to sustainable investing, contributing to environmental and/or social objectives and following good governance practices. Please refer to “Sustainable Investing Methodology” below for more information.

Regional Allocation:
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Sector Allocation:

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Source: MorningStar as of 31 October 2020. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus have selected the Mirova Global Sustainable Equity Fund for its robust ESG methodology, high quality management team and proven track record. Mirova, as specialists in sustainable investing, have deep expertise in analysing sustainable themes, sectors and issuers; they have a dedicated responsible investing research team that utilise proprietary internal research methods to conduct holistic sustainability assessment on companies. The lead portfolio manager of the Fund, Jen Peers, has deep experience in responsible and thematic investing since 2003, and is supported by two other portfolio managers, each with more than 10 years of investing experience. The portfolio management team apply a disciplined fundamental research process, and incorporate all the information from the responsible investing team.

As a result, the portfolio consists of a basket of high-conviction stocks from companies that contribute positively to the UN Sustainable Development Goals (SDGs), and has successfully delivered financial return together with its sustainability focus. It has been outperforming the benchmark since its inception, with only a similar risk level to the benchmark. It has also shown superior drawdown control relative to both the benchmark and its peers.

🌱Sustainable Investing Methodology

Mirova Global Sustainable Equity Fund has been classified as an Article 9 Fund under the EU Sustainable Finance Disclosure Regulation (SFDR). Article 9 Funds are funds committed to sustainable investing, contributing to environmental and/or social objectives and following good governance practices.

In order to meet the sustainable investment objective, all securities selected undergo an in-depth analysis of their sustainability and governance characteristics conducted by the Delegated Investment Manager dedicated research team (identification of sustainable opportunities, assessment of issuers’ ESG practices, voting and engagement activities, ESG research, and sustainability opinions). Each sustainability opinion contains an analysis of the significant opportunities and risks a company is managing. The result of these analyses is an overall qualitative opinion which is defined in relation to the achievement of the UN SDGs. Mirova strives to maximise exposure to companies with a positive impact on the SDGs while avoiding companies whose activities or products have a negative impact on or create a risk not to achieve those SDGs.

Further information on Mirova's approach to achieving the sustainable investment objective can be found under https://www.mirova.com/en/research/understand.

The Fund’s investment process includes a binding and material SRI approach to focus on well-rated securities from an ESG viewpoint in order to mitigate potential impact of sustainability risks on portfolio return. The Delegated Investment Manager uses the following data sources and methodologies to assess, measure and monitor the impact of the sustainable investments selected:

  • The overall ESG quality of the portfolio is constantly measured against the Reference Index of the SubFund in order to ensure that the Sub-Fund has a higher ESG quality profile compared to broad market index.
  • Mirova prepares qualitative sustainability analysis on each investment. This analysis encompasses the entire life cycle of Sub-Fund development, from raw material extraction to consumer use and disposal, and focuses on the most pertinent issues to each investment. Principal adverse indicators specific to each sector are systematically integrated in sustainability opinion.
  • Mirova also evaluates each investment using a physical indicator for carbon, assessing both risks and opportunities related to the energy transition. At the portfolio level, the aggregate emissions induced and avoided are considered in order to assign a level of alignment with climate scenarios published by international organisations such as the Intergovernmental Panel on Climate Change or the International Energy Agency. Further information on the methodology used can be found under https://www.mirova.com/en/research/demonstrating-impact
  • Investments are also assessed against specific indicators such as gender diversity and employment as disclosed in the monthly reporting of each Fund.

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Updated by Endowus: June 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
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