Candriam, a global multi-asset manager with €145bn in AUM, has launched the Candriam Equities L ESG Market Neutral Fund which will target long and short investment opportunities based on both financial and ESG criteria.
The strategy aims to combine 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.
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, and 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.
The fund is available for distribution in Luxembourg, Belgium, France, Italy, Germany, Austria, Switzerland, the UK and The Netherlands.
