Candriam Equities L EMU C EUR (4W40)

Overview

Candriam Equities L EMU C EUR is a specialized actively managed equity mutual fund, functioning as a sub-fund within a Luxembourg-domiciled SICAV. This fund is classified under SFDR Article 8, indicating its commitment to promoting environmental and social characteristics. It strategically invests at least 75% of its portfolio in the shares of companies that operate within eurozone countries. The primary objective is to achieve capital growth while aiming for superior performance compared to the MSCI EMU (Net Return) benchmark, which monitors large and mid-cap equities in the European Economic and Monetary Union.

The management team of the fund adopts a discretionary selection process, making use of comprehensive economic, financial, and proprietary Environmental, Social, and Governance (ESG) analyses. They assess several critical factors, such as management quality, growth potential, competitive advantages, value creation, and indebtedness. Additionally, they employ a strategy of exclusion, steering clear of companies involved in controversies or those non-compliant with international standards. The fund maintains an equity exposure of nearly 100% across 67 distinct holdings, with a price-to-earnings ratio of 24.14 and a dividend yield of 1.96%. While sustainability is integrated into the decision-making framework, it is not the core objective of the fund.

The fund is eligible for inclusion in France's Equities Savings Scheme (PEA) and features daily calculated Net Asset Value (NAV) in EUR. It is expected to have a tracking error above 4%, with ongoing costs around 1.85%. This offers a vital opportunity for long-term investors seeking ESG-aware exposure to eurozone equities, with a recommended investment horizon of six years.

Products and Services

• Equity Mutual Fund:

  The core product offered is an actively managed equity mutual fund that focuses on investing primarily in eurozone companies. This fund aims for capital appreciation and seeks to outperform the benchmark index, the MSCI EMU (Net Return).

• ESG Analysis and Integration:

  This service involves a detailed assessment of companies based on ESG criteria, guiding investment decisions. The management team utilizes proprietary tools to evaluate various factors like management quality and growth potential, ensuring sustainable investment practices are considered in portfolio management.

• Daily NAV Calculation:

  The fund features a daily calculation of its Net Asset Value in euros, providing investors with transparency and up-to-date information regarding the fund’s performance and valuation.

• Long-Term Investment Strategy:

  With a recommended investment horizon of six years, the fund is designed for investors looking to commit their capital for extended periods, aiming for sustainable growth within the eurozone equity market.

• Eligibility for PEA:

  The fund qualifies for France's Equities Savings Scheme (PEA), offering tax advantages for French investors and encouraging investment in equities through this beneficial scheme.

• Cost Structure:

  Investors can expect ongoing costs around 1.85% for fund management, which is reasonable considering the active management approach and the complexities involved in ESG analysis and investment selection.

• Tracking Error Management:

  The fund expects a tracking error above 4%, indicating a proactive approach to managing risks and adjusting investment strategies in response to market conditions.