Understanding the New Candriam Equities L ESG Market Neutral Fund
Candriam, a renowned sustainability-focused asset management firm, has unveiled its latest financial product: the Candriam Equities L ESG Market Neutral Fund. This innovative fund aims to provide investors with stable, positive returns that are not directly tied to the fluctuations of traditional asset classes. It does so by investing in companies deemed as sustainability leaders and shorting firms identified as less sustainable.
Investment Philosophy and Strategy
The philosophy behind this fund is straightforward yet profound. Candriam believes that companies with strong financials and high ESG (Environmental, Social, and Governance) standards are poised for long-term value creation. Conversely, those neglecting ESG principles, coupled with weak financial fundamentals, are likely to see a decline in value. This strategy is designed for investors who are looking for a diversified investment approach that integrates ESG criteria.
How the Fund Works
The fund operates by identifying both long and short investment opportunities. It invests in companies recognized as leaders in sustainability based on financial and ESG assessments. Companies with solid financials and robust ESG records are selected for long positions. For short positions, Candriam targets companies deemed less sustainable, with weak ESG and financial standings.
The Investment Process
Candriam begins its investment process by evaluating a universe of the most liquid stocks within global developed markets. Their ESG team uses a proprietary model to assess each company's ESG credentials, while the Quantitative Equity Team evaluates financial attractiveness through a comprehensive framework. This framework looks at value, quality, growth potential, market sentiment, and volatility.
Leadership and Expertise
The fund is spearheaded by Steeve Brument, Global Head of Alternative Investments at Candriam. He highlights that the combination of Candriam's unique ESG process and quantitative expertise offers clients a solution with an attractive risk-return profile. This approach also supports meaningful social and environmental changes, aligning with the growing demand for both alternative investment strategies and ESG-aligned solutions.
Availability and Management
The Candriam Equities L ESG Market Neutral Fund is now available for distribution in several European countries, including Luxembourg, Belgium, France, Italy, Germany, Austria, Switzerland, the UK, and The Netherlands. The fund will be managed by Bart Goosens, Candriam’s Global Head of Quantitative Equity, and Dave Benichou, Deputy Head of Quantitative Equity.
Candriam's latest offering is a testament to its commitment to providing innovative investment solutions that align with sustainable and ethical investment practices. As the demand for ESG-integrated products continues to rise, this fund represents a significant step in offering investors a means to achieve financial goals while contributing positively to the environment and society.
