Pierre BOYER
Head of Money Market & Short Term
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About this fund
Candriam Money Market USD Sustainable (hereafter "the fund"), a sub-fund of the Candriam Money Market sicav, aims to offer yields comparable to those of the money market or preserving the value of the investment. The objective of the fund is to benefit from the performance of the market in money market instruments denominated primarily in USD, with a residual maturity of under 397 days or with an interest rate that is adjustable at least annually, issued principally by good-quality issuers, on the basis of discretionary management. The sustainable investment objective of the fund is to contribute to the reduction of greenhouse gas emissions by pursuing specific objectives and integrating climate-related indicators into the analysis of issuers and securities. The fund also aims to have a positive long term impact on environmental and social objectives. The fund may be appropriate for investors who wish to achieve this objective over a short investment holding period and who are aware of, understand and are able to bear the specific risks of the fund. The investment horizon is 6 months. The fund is actively managed and the investment process implies referring to a benchmark index. For further information on the risks or the benchmark and its use, please consult the fund’s key information document (KID).
Principal assets traded:
Money market instruments and/or bonds with a residual maximum maturity of less than 397 days and with an interest rate that can be revised at least annually, denominated in US dollars and in currencies of member countries of the Organisation for Economic Co-operation and Development (OECD), and issued by all types of issuers rated at least A2/P2 (or equivalent) by one of the rating agencies (i.e. issuers considered good quality).
Deposits.
Investment strategy:
The fund seeks to achieve capital growth, associated with a low risk level, by investing in the principal assets traded.
Within the limits of the fund’s investment objective and policy, the management team makes discretionary investment choices in the portfolio based on its analyses of the characteristics and growth prospects of the assets traded.
The duration (Weighted Average Maturity - WAM), i.e. the sensitivity of the fund to changes in interest rates, will not exceed 6 months and the weighted average life of the fund assets (Weighted Average Life - WAL) will not exceed 12 months. The fund's sustainable investment objective is to contribute to a reduction in greenhouse gas emissions by means of specific objectives and by using climate-related indicators in the analysis of issuers and securities.
The fund also aims to have a positive impact on environmental and social objectives in the long term. Precisely, the fund seeks to achieve a carbon footprint that is below a set absolute threshold (for GHG emitting companies). This threshold has been set to approximately 30% less than the investment universe and may be reviewed as the investment universe changes. Furthermore, private and sovereign issuers are assessed on the basis of an internal ESG analysis and are given a score, the aim being to maintain the fund portfolio's average weighted ESG score above a pre-set threshold.
To achieve these objectives, the fund uses a combination of positive selection of the best issuers according to ESG criteria, and exclusion of issuers which are detrimental to these objectives or considered to be controversial. Issuers undergo a double analysis which considers how the issuers' activities contribute to the achievement of sustainability objectives, and also how the issuers' operations and policies are aligned with the interests of their main stakeholders. The result of this analysis is used as a basis upon which the investment universe is defined and as a guide for fund managers when constructing the portfolio. Each time the fund invests in securities issued by sovereign issuers, these issuers will also have been selected based on their ESG rating as assessed by an internal analysis of how they manage their human, social, natural and economic capital. This analysis is accompanied by the results of dialogue conducted with the issuers.
This investment approach will cause the fund to avoid certain issuers due to their inadequate ESG quality or their inadequate contribution to the achievement of sustainability objectives. Although the asset manager considers that these issuers are likely to perform less well than more sustainable issuers over the long term, market volatility and short-term market trends may cause these issuers to do better than the more sustainable issuers over shorter periods.
The fund has not applied for the French SRI label.
The fund may only make use of derivative products for hedging purposes (to protect against future unfavourable financial events).
Benchmark: Effective Federal Funds Rate.
The fund is managed actively and the investment approach implies a reference to a benchmark (the index).
Benchmark definition:
The federal funds rate is the interest rate at which depository institutions transact federal funds (USD balances at Federal Reserve Banks) with each other on an overnight basis.
Use of the benchmark:
- to compare performance.
Money market instruments and/or bonds with a residual maximum maturity of less than 397 days and with an interest rate that can be revised at least annually, denominated in US dollars and in currencies of member countries of the Organisation for Economic Co-operation and Development (OECD), and issued by all types of issuers rated at least A2/P2 (or equivalent) by one of the rating agencies (i.e. issuers considered good quality).
Deposits.
Investment strategy:
The fund seeks to achieve capital growth, associated with a low risk level, by investing in the principal assets traded.
Within the limits of the fund’s investment objective and policy, the management team makes discretionary investment choices in the portfolio based on its analyses of the characteristics and growth prospects of the assets traded.
The duration (Weighted Average Maturity - WAM), i.e. the sensitivity of the fund to changes in interest rates, will not exceed 6 months and the weighted average life of the fund assets (Weighted Average Life - WAL) will not exceed 12 months. The fund's sustainable investment objective is to contribute to a reduction in greenhouse gas emissions by means of specific objectives and by using climate-related indicators in the analysis of issuers and securities.
The fund also aims to have a positive impact on environmental and social objectives in the long term. Precisely, the fund seeks to achieve a carbon footprint that is below a set absolute threshold (for GHG emitting companies). This threshold has been set to approximately 30% less than the investment universe and may be reviewed as the investment universe changes. Furthermore, private and sovereign issuers are assessed on the basis of an internal ESG analysis and are given a score, the aim being to maintain the fund portfolio's average weighted ESG score above a pre-set threshold.
To achieve these objectives, the fund uses a combination of positive selection of the best issuers according to ESG criteria, and exclusion of issuers which are detrimental to these objectives or considered to be controversial. Issuers undergo a double analysis which considers how the issuers' activities contribute to the achievement of sustainability objectives, and also how the issuers' operations and policies are aligned with the interests of their main stakeholders. The result of this analysis is used as a basis upon which the investment universe is defined and as a guide for fund managers when constructing the portfolio. Each time the fund invests in securities issued by sovereign issuers, these issuers will also have been selected based on their ESG rating as assessed by an internal analysis of how they manage their human, social, natural and economic capital. This analysis is accompanied by the results of dialogue conducted with the issuers.
This investment approach will cause the fund to avoid certain issuers due to their inadequate ESG quality or their inadequate contribution to the achievement of sustainability objectives. Although the asset manager considers that these issuers are likely to perform less well than more sustainable issuers over the long term, market volatility and short-term market trends may cause these issuers to do better than the more sustainable issuers over shorter periods.
The fund has not applied for the French SRI label.
The fund may only make use of derivative products for hedging purposes (to protect against future unfavourable financial events).
Benchmark: Effective Federal Funds Rate.
The fund is managed actively and the investment approach implies a reference to a benchmark (the index).
Benchmark definition:
The federal funds rate is the interest rate at which depository institutions transact federal funds (USD balances at Federal Reserve Banks) with each other on an overnight basis.
Use of the benchmark:
- to compare performance.
Investment Team
Elodie BRUN
Fund Manager
Benjamin SCHOOFS
Fund Manager Money Market & Short Term
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Fund Range Information
The Funds Range Information gives you the latest modifications to the Candriam funds range. -
Germany - Communication to stakeholders
In the context of the change of our sicav/fcp, please find here the related communications to German professional or private investors.
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.
ESG Assessment
The sub-fund has the separate or combined objectives of offering yields comparable to those of the money market or preserving the value of the investment.
The objective of the sub-fund is to benefit from the performance of the market in money market instruments denominated primarily in USD, with a residual maturity of under 397 days or with an interest rate that is adjustable at least annually, issued principally by good-quality issuers, on the basis of discretionary management.
The investment strategy is applied according to a well-defined investment process and a rigorous risk framework.
Adherence to these elements is subject to risk monitoring by Candriam.
Regarding the environmental and social aspects of the investment strategy, Candriam’s proprietary ESG analysis (which produces ESG ratings and scores) and a normative controversy evaluation (including the controversial activity exclusion policy) are applied, making it possible to define the investable universe for the sub-fund.
Furthermore, Candriam’s ESG analysis, which includes an analysis of an issuer’s activities and its interaction with its main stakeholders, is an integral part of the financial management of the portfolio, enabling the asset manager to identify the risks as well as opportunities around the serious challenges of sustainable development.
As the management company, Candriam has established a monitoring framework as described in the sustainability risk management policy.
Monitoring of the sub-fund’s investment strategy risks seeks to ensure that the investments are aligned with and take account of environmental, social and governance indicators and the sustainability thresholds as explained above.
a. ESG selection criteria:
For corporates, the internal analysis of ESG criteria consists in selecting the issuers:
• that are the best positioned to meet the challenges of sustainable development;
• that comply with the principles of the United Nations Global Compact (i.e. human rights, labour law, the environment, anti-corruption), and which are therefore less exposed to the risks associated with these themes; and
• that are not engaged in controversial activities such as armament (securities of a company whose activity consists of manufacturing, the use or possession of anti-personnel mines, cluster bombs and/or depleted uranium weapons), tobacco, thermal coal.
For sovereign issuers, the internal analysis of ESG criteria consists in selecting:
• Countries that perform best across our four categories of sustainable development criteria: Human Capital, Natural Capital, Social Capital and Economic Capital;
• Countries that are not part of our highly Oppressive Regimes or dictatorships, based on the Freedom House Freedom in the World Index and the World Bank Voice & Accountability Index.
b. Selection methodology:
The companies selected by the management company are subject to a dual analysis:
• Analysis of their activity to assess their alignment with the major challenges of sustainable development. For example, regarding the transition to a circular economy, the management company will consider a company producing recycled steel to be more sustainable than a company producing steel exclusively from iron ore; and
• Analysis of how the company manages players interacting with the company: its employees, its customers, its shareholders, its suppliers and the environment. Here too, the management company will favour companies that adopt the most sustainable practices given their sector. For example, with regard to relations with its clients, the management company will favour pharmaceutical companies with balanced pricing practices and commercial policies. Similarly, with regard to relations with their employees, the management company attaches great importance to the fight against discrimination and compliance with social standards.
Our sovereign investible universe consists of those countries which perform best across our four categories of sustainable development criteria:
• Natural Capital: stock of naturel resources managed by the country;
• Social Capital: trust, norms and institutions which people can rely on to solve common problems and create social cohesion;
• Human Capital: human productivity to which the country participates through education and other initiatives;
• Economic Capital: assessing the level of economic activity viability.
c. A team of ESG analysts is responsible for assessing the selection criteria:
The analysis and selection of sustainable investments is carried out by a dedicated team of ESG analysts within Candriam. This team is made up of specialists whose mission is to analyse the exposure of companies and governments to the risks and opportunities associated with sustainable development.
Selection criteria are expected to evolve over time, based on advances in ESG research and changes in company practices.