The asset management arm of insurance giant MAPFRE has launched a new equity fund designed to tap ‘good governance’ through its latest addition to its Luxembourg Sicav range.
The MAPFRE Good Governance fund will focus on companies adopting responsible investment approaches, and is designed to build on academic work into the impact of ESG factors on returns.
It will be managed by José Antonio Méndez and Manuel Rodríguez, who will focus on the ownership of businesses and their accounting practices. This will involve seeking deeper qualitative information through fieldwork and research.
The academic research commissioned by MAPFRE from Cranfield Business School in the UK and Siena University in Italy led the company to decide that good governance alone is not enough to ensure MAPFRE AM can fully deliver its fiduciary duties to clients.
Although the academic research showed that good governance was important in delivering good performance, it was equally important to ensure the firm chose quality companies, by which it meant 'the ability to generate sustained earnings over the long term'.
Commenting on the launch, MAPFRE’s CIO José Luis Jiménez said: ‘This is one of the first tangible steps that we as asset managers have taken to support our wider business in its aims and objectives to make a significant contribution to the well-being of society.
‘We will be taking further initiatives over the coming months and look forward to introducing our fund to our markets in Europe and Latin America.’
MAPFRE is one of the leading multinational insurance company in Latin America and Spain with more than €58.8 billion in assets. Its asset management arm oversees €5.3 billion across European equity, European investment grade bond and asset allocation strategies.