In another sign of the appeal of impact investing—especially with millennial 401k participants—Natixis Global Asset Management announced it will launch a series of target date funds that follow a “sustainable investing approach.”
The Natixis Sustainable Future Funds will include ten funds target dates ranging every five years from 2015 to 2060.
The target date funds will select securities based on environmental, social and governance (ESG) criteria. It includes issues such as fair labor, anti-corruption, human rights, fair business practices and mitigation of environmental impact, which “will seek a diversified portfolio of investments that contribute to a more sustainable future.”
Research from the Boston-based investment firm finds demand for investments focused on ESG issues. Most respondents to the firm’s 2016 Global Survey of Individual Investors stressed the importance of investing in companies that are ethically run, have a positive social impact and good environmental records.
In addition, a recent Natixis 401k plan participant study found that interest in ESG investments runs strong among investors, especially younger ones, with 71 percent of millennials saying they would be more willing to contribute to their retirement plan if they knew their investments were doing social good.
Most millennials indicated they would like their investments and target date funds to reflect their personal values (84 percent) and over three-quarters (77 percent) said they would like to see more socially responsible investments in their retirement plan offering.
“Our research shows that most people want to invest in companies that are ethically run, have a positive social impact, and have strong environmental track records,” said John Hailer, CEO for the Americas and Asia and head of global distribution, said in a statement. “We are excited to bring to market the first target date funds with a sustainable investing approach that enables individuals to align their investments with those beliefs.”
The funds are expected to launch in the first quarter 2017.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
