25 Nov 2019

ESG: Why Lyxor is an ‘active’ passive manager

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FOR QUALIFIED INVESTORS ONLY– This document is reserved and must be given in Switzerland exclusively to Qualified Investors as defined by the Swiss Collective Investment Scheme Act of 23 June 2006 (as amended from time to time, CISA).

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With demand rising for ESG investments, Lyxor ETF is bringing the latest thought leadership straight to investors. In this short vlog, Florent Deixonne, Head of Sustainable and Responsible Investments at Lyxor Asset Management, explains how passive managers can play a very active role when it comes to shareholder voting and engagement.

Catching up with Florent at one of our ESG roadshows, we asked how he reconciles Lyxor’s passively managed funds with active shareholder voting and engagement. His view was clear: voting and engagement are two key levers that global asset managers – passive or active – can pull to create long-term value for their investors. Passive management is a long-term management style, and provides a solid foundation for managers like Lyxor to build strong relationship with companies and improve business practices.

We also asked Florent to comment on the top trends he’s seeing in the 2019 voting season. The first, he says, is pay – a recurring and highly sensitive AGM topic. The second is investor activism in Europe, particularly in France, and the emergence of new, far more vocal activists. The third in his view is climate change, and the emergence of non-financial topics being discussed such as a company’s raison d'être.

Florent finished by commenting on Lyxor’s plans for doubling its voting and engagement capacity in 2020, including expanding its voting policy to include US and Japanese companies.

Watch the full video below, or read Lyxor’s 2019 Voting and Engagement Policy


 

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