Grégoire THOMAS
Head of EquitY Market Neutral
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About this fund
The aim of Candriam Index Arbitrage (hereafter "the fund"), a FCP, is to use a prudent portfolio foundation strategy via bonds and money market instruments, and a dynamic investment strategy based on an arbitrage strategy on shares particularly in the context of index adjustments, of transactions on securities (e.g. companies impacted by a split) or discount of the traded assets. This FCP may be appropriate for investors who wish to achieve this objective over a medium investment holding period and who are aware of, understand and are able to bear the specific risks of the sub-fund as set out below and defined in the section entitled Risk factors in the Prospectus. The investment horizon is 3 years. The fund is managed actively, with reference to the index mentioned on the section characteristics. For further information about this index and its use, please consult the fund’s key information document (KID).
Principal assets traded:
Global units/shares of closed-end funds invested directly and/or through derivatives. As part of the strategy of the portfolio fund: bonds and other debt securities, and money market instruments, of all types of issuers with a short-term rating of at least A-2 when acquired (or equivalent) from one of the rating agencies (i.e. issuers with a good rating)
Investment strategy:
Portfolio management is built around a prudent portfolio foundation strategy via bonds and money market instruments, and a dynamic strategy.
The dynamic investment strategy is an arbitrage strategy on shares particularly in the context of index adjustments, of transactions on securities (e.g. companies impacted by a demerger) or discount of the traded assets. The arbitrage strategy consists in taking advantage of the differences in prices recorded (or anticipated) between markets and/or sectors and/or currencies and/or instruments. The fund does not have sustainable investment as its objective and does not specifically promote environmental and/or social characteristics.
The management team may use derivative products such as swaps, futures, options, CDS, etc., arising notably from equity, interest rate and foreign exchange risk. Total return swaps, or other derivative financial instruments which have the same characteristics, may also be used.
Derivatives are used for the purpose of (long or short) exposure, hedging or arbitrage.
Benchmark: €STR (Euro Short Term Rate) Capitalized.
The fund is managed actively and the investment process includes the reference to a benchmark .
Use of the benchmark:
- to calculate the performance fee for some share classes,
- for performance comparison purposes.
Investment objectives:
Over the recommended investment period and within the context of its totally discretionary management, the fund seeks to outperform the €STR (Euro Short Term Rate) Capitalized with an annualised target volatility (an indicator of the upward or downward fluctuations of the fund's value) of less than 5% under normal market conditions.
Global units/shares of closed-end funds invested directly and/or through derivatives. As part of the strategy of the portfolio fund: bonds and other debt securities, and money market instruments, of all types of issuers with a short-term rating of at least A-2 when acquired (or equivalent) from one of the rating agencies (i.e. issuers with a good rating)
Investment strategy:
Portfolio management is built around a prudent portfolio foundation strategy via bonds and money market instruments, and a dynamic strategy.
The dynamic investment strategy is an arbitrage strategy on shares particularly in the context of index adjustments, of transactions on securities (e.g. companies impacted by a demerger) or discount of the traded assets. The arbitrage strategy consists in taking advantage of the differences in prices recorded (or anticipated) between markets and/or sectors and/or currencies and/or instruments. The fund does not have sustainable investment as its objective and does not specifically promote environmental and/or social characteristics.
The management team may use derivative products such as swaps, futures, options, CDS, etc., arising notably from equity, interest rate and foreign exchange risk. Total return swaps, or other derivative financial instruments which have the same characteristics, may also be used.
Derivatives are used for the purpose of (long or short) exposure, hedging or arbitrage.
Benchmark: €STR (Euro Short Term Rate) Capitalized.
The fund is managed actively and the investment process includes the reference to a benchmark .
Use of the benchmark:
- to calculate the performance fee for some share classes,
- for performance comparison purposes.
Investment objectives:
Over the recommended investment period and within the context of its totally discretionary management, the fund seeks to outperform the €STR (Euro Short Term Rate) Capitalized with an annualised target volatility (an indicator of the upward or downward fluctuations of the fund's value) of less than 5% under normal market conditions.
Investment Team
Célia FSEIL
Fund Manager
Damien VERGNAUD
Fund Manager
Sebastien DE GENDRE
Fund Manager
Other information
This is a marketing communication. Please refer to the prospectus of the funds and to the key information document before making any investment decision. This marketing communication does not constitute an offer to buy or sell financial instruments, nor does it represent an investment recommendation or confirm any kind of transaction, except where expressly agreed. Although Candriam selects carefully the data and sources within this document, errors or omissions cannot be excluded a priori. Candriam cannot be held liable for any direct or indirect losses as a result of the use of this document. The intellectual property rights of Candriam must be respected at all times, contents of this document may not be reproduced without prior written approval.
Warning: Past performance of a given financial instrument or index or an investment service or strategy, or simulations of past performance, or forecasts of future performance does not predict future returns. Gross performances may be impacted by commissions, fees and other expenses. Performances expressed in a currency other than that of the investor's country of residence are subject to exchange rate fluctuations, with a negative or positive impact on gains. If the present document refers to a specific tax treatment, such information depends on the individual situation of each investor and may change.
In respect to money market funds, please be aware that an investment in a fund is different from an investment in deposits and that the investment’s principal is capable of fluctuation. The fund does not rely on external support for guaranteeing its liquidity or stabilizing its NAV per unit or share. The risk of loss of the principal is borne by the investor.
Candriam consistently recommends investors to consult via our website https://www.candriam.com the key information document, prospectus, and all other relevant information prior to investing in one of our funds, including the net asset value (“NAV) of the funds. Investor rights and complaints procedure, are accessible on Candriam’s dedicated regulatory webpages https://www.candriam.com/en/professional/legal-information/regulatory-information/. This information is available either in English or in local languages for each country where the fund’s marketing is approved.
According to the applicable laws and regulations, Candriam may decide to terminate the arrangements made for the marketing of a relevant fund at any time.
Information on sustainability-related aspects: the information on sustainability-related aspects contained in this communication are available on Candriam webpage https://www.candriam.com/en/professional/sfdr/. The decision to invest in the promoted product should take into account all the characteristics or objectives of the promoted product as described in its prospectus, or in the information documents which are to be disclosed to investors in accordance with the applicable law.This document is a marketing communication and serves exclusively as an information for investors. Under no circumstances may it replace advice regarding the acquisition and disposal of investments which may result in a total loss of the investment. . The appointed Paying and Information Agent in Austria is Erste Bank der oesterreichischen Sparkassen AG, Am Belvedere 1, 1100 Vienna, Austria. The prospectus, the Key Investor Information Documents (KIIDs) relating to the portfolios of the Fund, the Articles, the audited annual accounts, the semi-annual accounts as well as the issuance and redemption prices are available in Austria free of charge (in the German language) at the Austrian Paying and Information Agent.