Candriam Private Assets – Kartesia Credit ELTIF
Legal documents
Risk And Reward Indicators
Definition
- SRI Value
- 6
Main Risks
-
Credit risk
It constitutes the risk that an issuer or a counterparty default. This risk includes the risk of changes in credit spreads and default risk. The level of credit risk is usually evaluated by using “ratings” representing a comparative assessment of the credit quality (solvency level) of an issuer, issuer or portfolio. “High Yield” investments present the lowest rating levels and therefore a high credit risk.
-
Interest rate risk
A change in interest rates, resulting notably from inflation, may cause a risk of losses and reduce the net asset value of the fund.
-
Sustainability Risk
The sustainability risk refers to any environmental, social or governance event or condition that could affect the performance and / or the reputation of issuers in the portfolio. It may be issuer specific, in line with their activities and practices, but may also be due to external factors.
Other Risks
-
Currency risk
Funds may hold exposure to a currency different from its valuation currency. Changes in the exchange rate of this currency may negatively affect the value of assets in the portfolio.
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Operational risk
Operational risk encompasses the risks of direct or indirect loss related to a number of factors (eg human errors, fraud and malicious acts, information system failures and external events, etc.) that could have an impact on the fund and / or the investors. The Management Company aims to reduce this risk through the implementation of controls and procedures.
Risk And Reward Indicators
-
50%
Min Investments Environmental Social characteristics rate -
0%
Min sustainable investments rate -
0%
Min sustainable investments environmental rate -
0%
Min sustainable investments social rate
Fund Characteristics
- Fund name
- Candriam Private Assets – Kartesia Credit ELTIF
- Currency
- EUR
- Legal Form
- SICAV under Luxembourg law
- Legal status
- AIF
- SFDR Category
- Article 8
- Creation Date
- Domicile Country
- Luxembourg
- Management company, having its registered office in Luxembourg
- Alter Domus Management Company S.A.
- Depository bank
- CACEIS Bank, Luxembourg Branch
- Delegated management company
- CANDRIAM
- Transfer agent
- CACEIS Bank, Luxembourg Branch
- Term of fund
- The fund has no limited term
- Anti Dilution system
- no
Swing Pricing is a mechanism by which the net asset value is adjusted upwards (or downwards) if the change in liabilities is positive (or negative) in such a way as to reduce for existing investors the portfolio restructuring costs linked to subscription/ redemption movements in the fund. On valuation days where the difference between the amount of subscriptions and the amount of redemptions of a sub-fund (i.e. net transactions) exceeds a threshold set beforehand by the Board of Directors, the latter shall be entitled to:
- value the net asset value by adding to the assets (in the case of net subscriptions) or deducting from assets (at net redemptions) a fixed percentage of the fees corresponding to market practices and reflecting the fees and/or conditions of liquidity when buying or selling securities;
- value the securities portfolio on the basis of bid or ask prices;
- assess the net asset value by setting a level of spreads representative of the relevant market;
- The dilution mechanism must not exceed 2% of the net asset value, except in exceptional circumstances, as in the event of a sharp decrease in liquidity, which would then be detailed for the sub-fund concerned in the annual (semi-) annual report of the SICAV.
Instrument characteristics
- Share Class
- CA25 - Cap
- Currency
- EUR
- ISIN
- LU2954178112
- Recommended investment horizon
- 8 years
- Bloomberg ticker
- N/A
- Morningstar ticker
- N/A
- Marketing authorization
- Luxembourg
Tax, Charges & Fees
- Management fees (max)
- 3.00 %
- Subscription
- 4.00 %
- Redemption
- 10.00 %
- Entry Costs
- 4.00%
- Exit Costs
- 10.00%
Transaction Fees
- Portfolio transaction costs
- 0.00%
Performance fees
- Performance fee value
- 20.00%
Ongoing cost
- Ongoing cost value
- 3.60%
Orders
Order Subscription
- Subscription cut off
- D-15 12:00
Order redemption
- Redemption cut off
- 6M - 1D 12:00
NAV
Nav Specification
- Frequency valuation
- Quarterly
- NAV date
- D
- NAV calculation Day
- D
Nav Aum
- Aum currency
- EUR
ESG Assessment
The fund’s investment strategy aims to promote environmental or social characteristics, or a combination of these characteristics, provided that the entities in which the investments are made apply good governance practices. To achieve this objective, the management team makes discretionary investment choices based on an economic/financial analysis process and an internal analysis of environmental, social and governance (ESG) criteria, based in part on data provided by external service providers.
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 issuers favoured 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:
ESG analysis and selection are 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.