Pierre Valentin ; “We have placed SRI at the heart of our investment philosophy”

What are your overall thoughts for 2018?

After a difficult year for asset management companies, our average assets under management rose from 9.3 billion euros at the end of 2017 to 9 billion euros at the end of 2018, due to market impact and a slight outflow from our money market funds. Our net inflow stands at 210 million euros, excluding money market funds, in particular for equity and multi-asset funds.

Ecofi has decided to strengthen its commitment to Socially Responsible Investment, what are the reasons behind that?

For a long time, we have placed SRI at the heart of our investment philosophy because we believe that sustainable finance is inseparable from value creation and risk management.

And in concrete terms? Is it really possible to achieve a 100% SRI approach? What percentage of your assets are invested through this approach? % in Equity? % in Fixed Income? % Others?

Except for wealth management - undertaken in accordance with client requirements - our entire range of open funds is 100 % SRI this year, whether it for equity, bond, money market or multi-asset funds.

Why did you set up a SRI equity index, the Ecofi SRI Europe Index?

In 2015, we launched an equity index "Ecofi SRI Europe Index" as a showcase of our know-how in terms of SRI. The purpose of this index is to introduce a benchmark for measuring financial performance by monitoring Environmental, Social and Governance (ESG) risk indicators.

Do you also intend to actively reduce the carbon footprint of your portfolios? What methodology are you going to use to do that?

We already publish impact indicators for intensity and carbon footprint. Regarding carbon footprint reduction, we will do so by specifying our methodology by the end of 2019.

We already publish impact indicators for intensity and carbon footprint. Regarding carbon footprint reduction, we will do so by specifying our methodology by the end of 2019…

Pierre Valentin, Chairman of Ecofi Investissements

Are you going to exclude some sectors? For example, are you considering a definitive exit from coal, as did the Norwegian sovereign wealth fund?

Indeed, we have already implemented sectoral exclusions (gambling, controversial weapons, tobacco production, coal extraction and coal-based energy production).

In addition, Ecofi Investissements excludes from its portfolios issuers whose registered office is located in a tax haven.

A few words about Choix Solidaire, the first solidarity mutual fund investing in a Social Impact Contract (CIS)?

This funding is for the benefit of Wimoov, an association that offers mobility capabilities to promote the return to employment of vulnerable people. The reimbursement and remuneration of the CIS is based on the social impact measured by an independent third party and the funds are reimbursed by the French State if successful. The risk on the social impact is thus transferred to the investor.

What are your objectives for the coming years?

We will continue to focus on SRI. We recently launched a thematic equity fund called “Ecofi Agir pour le climat”. In addition, we intend to develop our quantitative management capability, through artificial intelligence, applied for example to the ESG analysis for companies.