Candriam, a global multi-asset manager focused on sustainable and responsible investing with over €145bn of assets under management, today (29 August) launched the Candriam Equities L ESG Market Neutral Fund.
The actively managed strategy seeks to combine robust financial and ESG analysis within a systematic Market Neutral framework with the aim of offering investors sustainably aligned, diversified, and uncorrelated returns.
Designed for investors seeking a diversified quantitative investment approach that incorporates ESG criteria, the fund’s investment philosophy is based on the belief that financially sound companies adhering to robust ESG standards are positioned for long-term value creation, while companies with weak financial fundamentals that neglect ESG principles are likely to decrease in value.
The fund identifies long and short investment opportunities by considering financial and ESG criteria simultaneously, crafting a diversified market neutral portfolio that considers these opportunities alongside risk and ESG objectives.
Starting with a universe of the most liquid stocks within global developed markets, Candriam’s ESG team applies its proprietary ESG model to evaluate each company’s ESG credentials. The Quantitative Equity Team then uses a proprietary framework to assess and score each company’s financial attractiveness, evaluating value, quality, growth, market sentiment and volatility.
The portfolio employs a strategy of long positions in companies that Candriam recognises as leaders in sustainability, companies with solid financials and strong ESG records, and short positions in those identified as less sustainable, companies with weak financial fundamentals and ESG criteria. This approach is designed with the aim of generating stable positive returns decorrelated from traditional markets.
Part of Candriam’s Alternative Investment platform, the Fund is managed by Bart Goosens, Global Head of Quantitative Equity and Deputy Global Head of Alternative Investments, Dave Benichou, Deputy Head of Quantitative Equity. The portfolio management team collaborates with Candriam’s dedicated ESG Investment and Research Team, led by Wim Van Hyfte, Global Head of ESG Investments & Research, who oversees the ESG analysis used in the investment process.
Candriam’s Quantitative Equity (with €9bn AUM) and ESG teams have been collaborating for over a decade, managing a range of Long Only ESG strategies. The launch of this Fund is testament to Candriam’s extensive expertise in ESG, financial analysis and quantitative equity investing, further contributing to Candriam’s commitment to evolving its offering and providing its clients with diversified, sustainable and innovative solutions.
The fund is available for distribution in Luxembourg, Belgium, France, Italy, Germany, Austria, Switzerland, the UK and The Netherlands.
Steeve Brument, global head of alternative investments at Candriam, said: “Building on our long-standing tradition of innovation in investment strategies, we have further strengthened our commitment to enhancing our broader alternatives offering.
“By combining our differentiated ESG process with the extensive expertise of our Quantitative Equity team, we provide our clients with access to unique solutions that seeks to offer an attractive risk-return profile, whilst supporting meaningful social and environmental change. We are confident that the appetite for both alternative strategies and ESG-aligned solutions will continue to grow, and this launch further represents the next step in our efforts to further embed ESG integration within our alternatives solutions.”
