Philip SCREVE
Senior Fund Manager
Legal documents
Download documents
PDF
About this fund
Candriam Equities L Emerging Markets (hereafter "the fund"), a sub-fund of the Candriam Equities L Sicav, aims to enable shareholders to benefit from the growth potential of the emerging equity markets with an investment in equities selected by the portfolio management team on a discretionary basis and to outperform the benchmark.
The fund’s sustainability objective is to promote the reduction of greenhouse gases and the achievement of the Paris Agreement objectives. The fund takes into account an analysis of ESG criteria as set out in the Investment policy section of the Prospectus.
The investment horizon is 6 years. The fund is actively managed, and the investment process implies referring to a benchmark index. The Fund is intended for investors who are prepared to accept the risks of participating in emerging equity markets, together with the level of volatility generally associated therewith. For further information on the risks or the benchmark and its use, please consult the fund’s key information document (KID).
Principal assets traded:
Shares of companies whose registered offices and/or primary activity are in emerging countries.
Investment strategy:
The fund seeks to achieve capital growth by investing in the principal assets traded and to outperform the benchmark.
The management team makes discretionary investment choices based on economic/financial analyses.
The discretionary approach is based on a fundamental analysis aiming to select the best companies according to five criteria: quality of management, growth potential, competitive advantage, value creation and indebtedness.
The Fund promotes, among other characteristics, environmental and/or social characteristics without however having a sustainable investment objective. Environmental, social and governance (ESG) criteria contribute to the asset manager's decision-making but are not a decisive factor in this decision-making. For more information, please see the management company's website and/or the prospectus.
The fund may make use of derivative products for both investment and hedging purposes (to protect against future unfavourable financial events).
Benchmark:MSCI Emerging Markets (Net Return).
The fund is managed actively and the investment approach implies a reference to a benchmark (the index).
Benchmark definition:
The index measures the performance of the large and mid capitalisation equity segment across emerging markets countries.
Use of the benchmark:
- as an investment universe. In general, the financial instruments of the sub-fund are mostly contained in the index. However, investments outside this index are authorised;
- in determining risk levels/parameters;
- for performance comparison purposes;
- to calculate the performance fee for some share classes.
As the fund is managed actively, it does not aim to invest in each component of the index nor to invest in the same proportions as the components of the index. In normal market conditions, the expected tracking error of the fund will be large, i.e. above 4%. This measure is an estimation of the divergence of the fund’s performance compared to the performance of the benchmark. The greater the tracking error, the greater the deviations from the index. The actual tracking error depends in particular on market conditions (volatility and correlations between financial instruments) and may therefore differ from the expected tracking error.
Shares of companies whose registered offices and/or primary activity are in emerging countries.
Investment strategy:
The fund seeks to achieve capital growth by investing in the principal assets traded and to outperform the benchmark.
The management team makes discretionary investment choices based on economic/financial analyses.
The discretionary approach is based on a fundamental analysis aiming to select the best companies according to five criteria: quality of management, growth potential, competitive advantage, value creation and indebtedness.
The Fund promotes, among other characteristics, environmental and/or social characteristics without however having a sustainable investment objective. Environmental, social and governance (ESG) criteria contribute to the asset manager's decision-making but are not a decisive factor in this decision-making. For more information, please see the management company's website and/or the prospectus.
The fund may make use of derivative products for both investment and hedging purposes (to protect against future unfavourable financial events).
Benchmark:MSCI Emerging Markets (Net Return).
The fund is managed actively and the investment approach implies a reference to a benchmark (the index).
Benchmark definition:
The index measures the performance of the large and mid capitalisation equity segment across emerging markets countries.
Use of the benchmark:
- as an investment universe. In general, the financial instruments of the sub-fund are mostly contained in the index. However, investments outside this index are authorised;
- in determining risk levels/parameters;
- for performance comparison purposes;
- to calculate the performance fee for some share classes.
As the fund is managed actively, it does not aim to invest in each component of the index nor to invest in the same proportions as the components of the index. In normal market conditions, the expected tracking error of the fund will be large, i.e. above 4%. This measure is an estimation of the divergence of the fund’s performance compared to the performance of the benchmark. The greater the tracking error, the greater the deviations from the index. The actual tracking error depends in particular on market conditions (volatility and correlations between financial instruments) and may therefore differ from the expected tracking error.
Investment Team
Mohamed - Lamine SAIDI
Senior Fund Manager
Paulo SALAZAR
Head of Emerging Markets Equities
-
Q&A, Emerging Markets, Paulo Salazar, Philip Screve, Lamine SaidiEmerging Markets Equities: an active approach focusing on quality and sustainable growth
Paulo Salazar, Philip Scrève and Lamine Saidi give insights on sentiment towards emerging markets and describe how they search for pockets of growth. -
Fund Range Information
The Funds Range Information gives you the latest modifications to the Candriam funds range. -
Portugal - Communication to stakeholders
In the context of the change of our sicav/fcp, please find here the related communications to Portugal 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 objective of the sub-fund is to use discretionary management to benefit from the performance of the market in equities of companies which have their registered office and/or carry out their primary economic activity in emerging countries, and to outperform the benchmark.
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 the 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 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.
The selection criteria will evolve over time, in line with advances in ESG research and changes in corporate practices.