“We are confident that the appetite for both alternative strategies and ESG-aligned solutions will continue to grow, and this launch further represents the next step in our efforts to further embed ESG integration within our alternatives solutions:” Steeve Brument, global head of alternative investments at Candriam, in a press statement last week. Photo: Candriam

“We are confident that the appetite for both alternative strategies and ESG-aligned solutions will continue to grow, and this launch further represents the next step in our efforts to further embed ESG integration within our alternatives solutions:” Steeve Brument, global head of alternative investments at Candriam, in a press statement last week. Photo: Candriam

The new Candriam ESG market neutral fund, launched last week, seeks to generate positive returns by going long on ESG leaders and shorting less sustainable firms.

Candriam, a global multi-asset manager, announced the launch of the Luxembourg-domiciled Candriam Equities L ESG Market Neutral Fund on 29 August 2024. The fund is part of Candriam’s newly integrated alternative investments platform and is designed to deliver stable, positive returns that are uncorrelated with traditional asset classes. This launch is seen as a key move in strengthening ESG integration within the firm’s alternative offerings.

The fund’s strategy is based on the belief that companies with strong financials and robust ESG practices are well-positioned for long-term value creation, while those with weaker financial fundamentals and poor ESG standards are likely to decline in value. To implement this strategy, the fund invests in liquid stocks from global developed markets, taking long positions in companies identified as ESG leaders and shorting those viewed as less sustainable.

The fund’s portfolio is constructed to be market neutral, meaning it aims to be uncorrelated with traditional market movements. By balancing long and short positions, the strategy seeks to provide investors with diversified, stable returns that align with sustainable and responsible investment principles.

Candriam’s in-house ESG team evaluates each company’s ESG credentials, which is then complemented by the quantitative equity team’s financial analysis. This analysis scores companies based on factors such as value, quality, growth, market sentiment and volatility. The quantitative equity team, which currently manages €9bn in assets, is led by Bart Goosens and Dave Benichou.

The fund is available for distribution in Luxembourg, Belgium, France, Italy, Germany, Austria, Switzerland, the United Kingdom and the Netherlands.

Steeve Brument, global head of alternative investments at Candriam, commented on the launch in the firm’s press release, stating that it reflects Candriam’s commitment to innovation in investment strategies. He emphasised that combining Candriam’s differentiated ESG process with the expertise of the quantitative equity team offers clients unique solutions with an attractive risk-return profile, while also supporting meaningful social and environmental change. Brument expressed confidence that the demand for alternative strategies and ESG-aligned solutions will continue to grow and that this launch represents a significant step in embedding ESG integration within Candriam’s alternative investment offerings.

Candriam employs 80 staff members in its Luxembourg office.

Related articles