- AIA Racial Equity investment approach tracks the S&P 500® on a pre-tax basis with a deliberate focus on companies that promote diversity, equity and inclusion
- Portfolio screens consider a corporation’s diversity efforts, pay equity policies, employee access to health care, discriminatory lending and environmental practices
- New separately managed portfolio screens available to individual and institutional investors
BOSTON–(BUSINESS WIRE)–Natixis Investment Managers today announced that its customized indexing division, Active Index Advisors® (“AIA”), has launched Racial Equity Investment Portfolios, which seek to identify companies that promote diversity, equity and inclusion – and avoid or divest from companies that cause, contribute to, exploit or profit from racial injustice. Utilizing research and proprietary data from third-party providers, including JUST Capital and Venn Diagram Partners, AIA’s Racial Equity approach focuses on investing in companies that factor changing US demographics, and the economic power of underrepresented populations, into their respective business models.
“We believe that investors can be part of the solution to our nation’s racial inequality issues, and we are proud to provide an investment offering that could help divert funds away from fueling racial injustice, and instead focus on promoting equality,” said Curt Overway, President and Portfolio Manager, Active Index Advisors and Managed Portfolio Advisors.
AIA believes that investments can directly address diversity in its portfolios, and there is credible evidence that companies that are leaders in diversity, equity and inclusion outperform their peers. For example, according to analysis from McKinsey & Company’s 2020 report, “Diversity wins: How inclusion matters1,” companies with greater diversity on their executive teams are more likely to outperform their peers in terms of profitability; conversely, McKinsey & Company found that corporations with the less diverse executive teams were more likely to underperform.
“Racial equity is tied to JUST Capital’s mission of building a more inclusive economy that can be beneficial for all Americans,” said JUST Capital’s CEO, Martin Whittaker. ”Through this partnership with Natixis, we look forward to engaging a wider pool of investors in our mission. Investors have a key role to play in terms of influencing social change around racial justice and equity, and in doing so, driving greater returns.”
“A growing body of evidence shows companies that demonstrate diversity, equity and inclusion practices can lead to positive performance, and we are excited to partner with AIA to provide investment solutions that aim to do exactly that,” said Anthony Rust, Managing Director, Venn Diagram Partners. “There’s also an added societal benefit of investing in and steering capital towards companies who promote, incorporate and embrace DEI – and away from companies who have a history of indifference, or a business model that perpetuates racial injustice and inequities.”
The AIA Racial Equity approach applies both positive and negative screenings to include companies that aim to achieve greater employee satisfaction, reduce conflicts, and improve decision-making processes. Meanwhile, the portfolios exclude those associated with racial inequality and unequal access to health care, environmental controversies, and discriminatory lending practices. Natixis’s Multicultural and Diversity Engagement (MADE), which champions the firm’s diversity and inclusion efforts, provided valuable input in the construction of these portfolios.
“Our research has consistently shown that Americans want their investments to align with their values, and the AIA Racial Equity Portfolios empower individuals to put their money to work by supporting companies that are helping to make a difference,” said David Giunta, CEO for the US, Natixis Investment Managers. “The additional screening to AIA’s S&P 500® strategy promotes more socially conscious investment practices and enhances investors’ peace of mind.”
About Natixis Investment Managers
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of more than 20 specialized investment managers globally, we apply Active Thinking® to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis Investment Managers ranks among the world’s largest asset management firms2 with nearly $1.1 trillion assets under management3 (€910.0 billion).
Headquartered in Paris and Boston, Natixis Investment Managers is a subsidiary of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Investment Managers’ affiliated investment management firms include AEW; Alliance Entreprendre; AlphaSimplex Group; DNCA Investments;4 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; H2O Asset Management; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners; Vaughan Nelson Investment Management; Vega Investment Managers;5 and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions, and Natixis Advisors offers other investment services through its AIA and MPA division. Not all offerings available in all jurisdictions. For additional information, please visit Natixis Investment Managers’ website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Investment Managers’ distribution and service groups include Natixis Distribution, L.P., a limited purpose broker-dealer and the distributor of various US registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.
About JUST Capital
The mission of JUST Capital, an independent nonprofit, is to build an economy that works for all Americans by helping companies improve how they serve all their stakeholders – workers, customers, communities, the environment, and shareholders. We believe that business and markets can and must be a greater force for good, and that by shifting the resources of the $19 trillion private sector, we can address systemic issues at scale, including income inequality and lack of opportunity. Guided by the priorities of the public, our research, rankings, indexes, and data-driven tools help measure and improve corporate performance in the stakeholder economy.
Since 2015, JUST Capital has surveyed 110,000 Americans – representative of the U.S. adult population – including more than 17,000 in 2020 alone to identify the issues that matter most to the public regarding corporate business behavior. JUST Capital then tracked and evaluated 928 companies across five stakeholders, 19 issues, and 339 unique data points to produce the ranking model that drives America’s Most JUST Companies, including the Forbes JUST 100. To learn more about how data-driven insights are creating a more just future for capitalism, visit: www.JUSTCapital.com.
Active Index Advisors ® (AIA) is a division of Natixis Advisors L.P. (Natixis Advisors). Natixis Advisors is an SEC-registered investment advisor.
Investment Risks: All securities are subject to risk, including possible loss of principal. Please read the risks associated with each investment prior to investing. Detailed discussions of each investment’s risks are included in Part 2A of each firm’s respective Form ADV. The investments highlighted in this presentation may be subject to certain additional risks.
1 McKinsey & Company, “ Diversity wins: How inclusion matters (2020).” The research was conducted from December 2018 to November 2019, and included 1,039 companies across 15 countries globally.
2 Cerulli Quantitative Update: Global Markets 2020 ranked Natixis Investment Managers as the 17th largest asset manager in the world based on assets under management as of December 31, 2019.
3Assets under management (“AUM”) as of September 30, 2020 is $1,067.3 billion. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
4 A brand of DNCA Finance.
5 A wholly-owned subsidiary of Natixis Wealth Management.
Natixis Investment Managers