Equity strategy chooses companies investing for the future

Mirova US Portfolio Manager and CIO Jens Peers explains the firm’s approach to creating a high-conviction, multi-thematic, sustainable equity portfolio.

• Mirova has identified four key long-term societal and economic transitions that they believe will affect the future, and selects companies that can benefit from those transitions.
• The team seeks to invest in companies that offer solutions to make those transitions happen, and that are most able to adapt to changes occurring in the next decade or so.
• Current portfolio positioning includes defensive sectors like utilities and pharmaceuticals as well as companies that are well-positioned for the technological transition that includes AI, cloud computing and self-driving cars.
• The strategy typically invests in companies only when they are trading at a 20% discount to intrinsic value, and integrates sustainability at every level of portfolio construction.