Indosuez Objectif Terre: tackling global warming & preserving natural resources
At a time when global warming issues and the preservation of natural resources are becoming more prominent in the collective consciousness, Indosuez Gestion recently launched Indosuez Objectif Terre, a fund aimed at proposing a specific solution likely, at its level, to help limit the harmful effects of human activity on the environment. Interview with Fund Manager Zoé Ormières-Selves.
What is Indosuez Objectif Terre's areas of investment?
This is a fund invested in the shares of companies seeking to respond to environmental issues through two main thrusts: the fight against global warming and the preservation of natural resources. These thrusts are then divided into six sub-categories* aimed at identifying companies offering relevant innovations. For example, we invest in alternative transport companies (electric vehicles, railways, etc.) or in waste management (recovery of household waste, metal recycling, etc.). As these environmental issues are global (CO2 and pollution know no borders), Indosuez Objectif Terre is an international fund investing in solutions developed all over the world.
Why launch Indosuez Objectif Terre?
Globally, ecological awareness is growing, both on an individual and political level. As the annual Conferences of the Parties ("COP") are being covered in the media, the States commit themselves and the regulations tend to be harmonised. In mid-December, the new President of the European Commission, Ursula von der Leyen, announced a "European Green Deal", aimed at slowing down global warming, which should make it possible to mobilise one thousand billion euros of investment over the 2020-2030 decade. At the same time, companies are implementing investment programmes that promote technological innovation, while reducing the financing of traditional fossil energy. The challenge of our decade is to succeed in redirecting the massive financing of carbon energies towards all decarbonated solutions and the protection of the environment. The Indosuez Objectif Terre Fund proposes to contribute to this by reconciling the search for yield and the search for meaning.
What is the fund's management objective?
The management objective of Indosuez Objectif Terre is to outperform the international equity markets (represented by the MSCI World benchmark index, with net dividends reinvested), over a recommended investment period of 5 years. In order to offer a balanced portfolio, we choose stocks from companies in different geographical areas and sectors in line with our themes.
How are these stocks selected?
From the outset, companies with a significant share of their activity in fossil energies or subject to environmental controversies are excluded. We then develop an investment universe composed of companies with a positive impact on the environment. Finally, we select companies offering growth and return opportunities, using conventional financial analysis. We are convinced that our themes offer financial opportunities while helping to respond to a climate and environmental emergency.
Warning on the risks associated with investing in the Indosuez Objectif Terre fund
The Fund is mainly exposed to equity and foreign exchange market risks. Unfavourable evolutions on these markets may lead to a decline in the fund’s net asset value.
In addition, the portfolio’s performance depends on the financial instruments and the asset allocation chosen by the manager. There is therefore a risk that the portfolio may not be invested at all times in the best performing securities and that the allocation between the different markets may not be optimal. This risk may result in decline fadll in the Fund’s net asset value.
Finally, the reader is informed that as the capital is not guaranteed, it may not be fully returned.
Under no circumstances can this article be considered as an offer to subscribe to a life insurance policy or capital bond, or an offer or solicitation, or canvassing for the purpose of subscribing to financial products or services. It has not been designed and is not intended for persons in any particular country. It is not intended for persons who are citizens, domiciled for tax purposes or resident in a country or jurisdiction where its distribution, publication, availability, or use would breach the applicable law or regulations. You are recommended to carefully read the KIID (or the prospectus), the Key Information Document, the Detailed Notice or the final terms and conditions of the product or service before subscribing. Past performance is not an indication of future performance, and the value of an investment can go down as well as up depending on developments on the financial markets.
* Fight against global warming: energy efficiency of buildings, infrastructures and processes, alternative mobility, decarbonised energy. / Preservation of natural resources: responsible management of ecosystems, circularity of resources, water management.
July 28, 2020