Spanish insurance company MAPFRE Group’s investment business MAPFRE Asset Management (MAPFRE AM) announced today that it has increased its holdings in French ESG specialist mutual fund boutique La Financière Responsable (LFR) to 51%, with the acquisition of a new 26% equity stake in the firm.
Launched in 2007, Paris-based LFR developed a socially responsible investment (SRI) approach, IVA Comprehensive Management, providing in-depth financial and non-financial company information into its investment process. The firm manages approximately €650 million in assets.
MAPFRE AM acquired a 25% stake in LFR in 2017, adopting the firm’s proprietary ESG-focused stock selection process, and said that upside resulting from its initial stake and the relationship between the firms led to the larger investment.
In addition to supporting MAPFRE AM’s goal to boost its international footprint, the firm stated that the deal secured its access to an exclusive strategy and methodology for selecting investments and applying ESG criteria to new products, and to the rest of its fund range.
José Luis Jiménez, MAPFRE Chief Investment Officer, said:
“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.”
Olivier Johanet, President of La Financière Responsable, added:
“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.”