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Candriam Long Short Credit

Marketing Communication. Please refer to the prospectus of the fund and to the key investor information document before making any investment decision. The documents can be obtained free of charge.

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Patrick Zeenni
Head of Investment Grade & Credit Arbitrage
26 Years of experience
Team member image
Guillaume Benoit
Senior Fund Manager
15 Years of experience
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Mouine Darwich
Fund Manager - Quantitative Credit Analyst
7 Years of experience
  • ISIN
ISIN
FR0011510056
NAV - 20 JUN 2024
EUR 112.60
AUM - 20 JUN 2024
EUR 415,766,607.57
SFDR Category 
Article 8
Morningstar 
31 MAY 2024
Category
EAA Fund Global Flexible Bond - CHF Hedged
Morningstar Rating
Morningstar sustainability 
30 APR 2024
Morningstar Sustainability Rating

Important information

© 2022 Morningstar. All Rights Reserved. The information contained here: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about the Morningstar Rating, including its methodology, please go to: https://s21.q4cdn.com/198919461/files/doc_downloads/othe_disclosure_materials/MorningstarRatingforFunds.pdf

© 2022 Sustainalytics. All Rights Reserved. The information, data, analyses and opinions contained here: (1) includes the proprietary information of Sustainalytics; (2) may not be copied or redistributed except as specifically authorized; (3) do not constitute investment advice nor an endorsement of any product or project; (4) are provided solely for informational purposes; and (5) are not warranted to be complete, accurate or timely. Sustainalytics is not responsible for any trading decisions, damages or other losses related to it or its use. The use of the data is subject to conditions available at https://s21.q4cdn.com/198919461/files/doc_downloads/press_kits/2016/Morningstar-Sustainability-Rating-Methodology.pdf .

About this fund

Candriam Long Short Credit is an absolute performance UCITS fund, aiming to outperform the benchmark. Mainly by using arbitrage and directional strategies (both long and short) in corporate credit (particularly industrial and financial companies) through bonds and credit derivatives. The fund may also invest in convertible bonds with an initial delta of less than 15%. The investment horizon is 3 years. 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:
Bonds and other debt securities and money market instruments essentially from Europe and North America invested directly or through derivatives and private issuers, in the high grade and high yield investment category, rated at least CCC+ (or equivalent) by one of the rating agencies (i.e. issuers considered to be at very high risk of default). As part of the basic strategy of the portfolio fund: bonds and other debt securities, and money market instruments, of all types of issuers with a rating of at least A-2 when acquired (or equivalent) from one of the rating agencies (i.e. issuers with a very good rating). Instruments are selected on the basis of an internal analysis of the credit risk and on the basis of the analyses by the rating agencies.

Investment strategy:
The management team makes discretionary investment choices.
Portfolio management is built around a prudent basic portfolio foundation via bonds and money market instruments, and a dynamic strategy.
Investment opportunities identified, in connection with the dynamic strategy, are invested in according to a strategy consisting in buying credits with growth potential ("long" position) and in selling ("short" position) credits which the management team expects will depreciate (directional strategy) or according to a strategy consisting in taking advantage of observed (or anticipated) price differentials between markets and/or sectors and/or currencies and/or instruments (arbitrage strategy).
The amounts allocated for each of these strategies correspond to two different segments in the fund's portfolio, with a ratio varying according to the market conditions.
The fund promotes, among other characteristics, environmental and/or social characteristics but does not have sustainable investment as its 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 use derivatives (swaps, futures, options, etc.) or total return swaps linked in particular to interest rate, exchange and credit risks traded on French or foreign regulated markets or over the counter for purposes of exposure, hedging or arbitrage.


Benchmark: €STR (Euro Short Term Rate) Capitalized.
The fund is actively managed and the investment process refers to a benchmark.
Use of the benchmark:
- for the purpose of calculating performance fees for certain share classes,
- for the purpose of performance comparisons.

Investment objectives:
Over the recommended investment period and within the context of its management, the fund seeks, by investing in the main assets traded, to outperform in absolute terms the €STR (Euro Short Term Rate) Capitalized with an annualised target volatility of less than 5% under normal market conditions.

NAV & Performances

Historical values graph

 

 

Candriam Long Short Credit R - Cap - EUR

This graph represents the synthetic net asset value of the fund. It is provided for information and illustrative purposes only. The synthetic net asset value is obtained by a recalculation of the values of the fund’s assets by leveling out the effect of securities transactions (split, coupon, dividend distribution...) in order to reflect the real performance of the fund share or unit. Data may be rounded for convenience. Data expressed in a currency other than that of the investor's country of residence is subject to exchange rate fluctuations, with a positive or negative impact. Gross performance may be impacted by commissions, fees and other expenses.

Performance

Past performance is not a reliable indicator of future performances. Markets could develop very differently in the future.
It can help you assess how the fund has been managed in the past.

Actuarial Yield

  1 year 3 years 5 years 10 years
Share class 5.72 2.12 1.78 1.10
Benchmark 3.91 1.55 0.74 0.24
Difference 1.81 0.57 1.04 0.86

Annual return over the last years (%)

This chart shows the fund’s performance as the percentage loss or gain per year over the last 9 years. It can help you to assess how the fund has been managed in the past. Performance is shown after deduction of ongoing charges.
Any entry and exit charges are excluded from the calculation. 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.If for one year, there is no performance information, it is because there is no data or the data is insufficient to provide investors with useful or reliable indications on this performance.

The performances of the years prior to the material change have been blurred on the graph.

As of 01/01/2022, the index used as a benchmark, Eonia Capi 7d, has been replaced by €STR (Euro Short Term Rate) Capitalized.

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Share class 0.91 % 0.79 % 0.53 % -0.97 % 1.25 % 1.68 % 0.02 % 0.42 % 3.93 %
Benchmark -0.11 % -0.32 % -0.36 % -0.37 % -0.40 % -0.47 % -0.49 % -0.01 % 3.29 %
Difference 1.02 % 1.12 % 0.89 % -0.60 % 1.64 % 2.14 % 0.51 % 0.43 % 0.64 %

Excluding fees/taxes: taxes are not part of the performance calculation

Additional information

The returns listed above are provided on the basis of the Net Asset Value (NAV), net of commissions and reinvested income. All management fees and commissions are included in the calculation of past performance except for any entry and exit charges. Taxes are not included in the calculation of returns. The value or price converted into euros may be reduced or increased depending on fluctuations in the exchange rate. The fund is not a guaranteed investment. The NAVs are net of fees and are provided by the accounting department and the benchmark by the official providers.

Market developments (currency conversion, coupon, split, …) have an influence on the chart. This graph is provided for information purposes only and does not precisely illustrate the evolution of the fund's net assets. Data may be rounded for convenience. Data expressed in a currency other than that of the investor's country of residence is subject to exchange rate fluctuations, with a positive or negative impact. Gross performance may be impacted by commissions, fees and other expenses

Characteristics

Fund Characteristics

Fund name
Candriam Long Short Credit
Benchmark
€STR (Euro Short Term Rate) Capitalized
Currency
EUR
Legal Form
FCP under French law
Fund type
UCITS
SFDR Category
Article 8
Creation Date
Term of the fund
The fund has no limited term
Domicile Country
France
Regulator Name
AMF
Management Company, having its registered office in Luxembourg
CANDRIAM, management Company having its registered office in Luxembourg.
Depository Bank
CACEIS Bank
Transfer Agent
CACEIS Bank
Recommended investment horizon
3 years
Swing Pricing System
yes
Swing Pricing Description
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.

Tax, Charges & Fees

Management fees (max)
0.70 %
Subscription
1.00 %
Redemption
1.00 %
Ongoing charges Date
Ongoing charges
0.30 %

Instrument

Name
R - Cap
Currency
EUR
ISIN
FR0011510056
Bloomberg Ticker
DEXLREU FP Equity
Morningstar Ticker
F00000QCH9
First NAV Date
23/2/14

Orders

NAV Date
D
NAV Calculation Day
D+1
Frequency valuation
daily
Subscription Cut off
D 12:00
Redemption Cut off
D 12:00

The corresponding time zone is the one associated with the fund's domicile.

Risks

Lower riskHigher risk
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
Potentially lower return Potentially higher return
SRI Date
SRI Value
3
Definition
The summary risk indicator ("SRI") is an indicator with a rating ranging from 1 to 7 and corresponds to increasing levels of risk and return. The methodology for calculating this regulatory indicator is available in the KID.
The summary risk indicator ("SRI") is a guide to the level of risk of this product compared to other products.
It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.
Main Risks

Arbitrage risk: Arbitrage is a technique which consists in benefiting from the differences in prices recorded (or anticipated) between markets and/or sectors and/or securities and/or currencies and/or instruments. If such arbitrage transactions perform unfavourably (a rise in sell transactions and/or fall in buy transactions), the funds net asset value may fall.

Counterparty Risk: When the fund carry out over-the-counter transactions (i.e. involving instruments not listed on the markets), they are exposed to a risk of default by the counterparty to the transaction.

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.

Derivative risk: Derivatives are investments whose value depends on (or is derived from) the value of an underlying instrument, such as a security, asset, reference rate or index. Derivative strategies often involve leverage, which may exaggerate a loss, potentially causing the Sub-Fund to lose more money than it would have lost had it invested in the underlying instrument. Using derivatives may result in a higher portfolio volatility related to this underlying asset and an increase of the counterparty 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.

Liquidity risk: lt occurs when a portfolio position cannot be sold, liquidated or closed at a limited cost and within a sufficiently short time, which jeopardizing the fund's ability to comply at any time with its obligations to redeem the shares of investors at their request.

Risk of loss of capital: Investors are advised that any capital they invest is not guaranteed and that they may therefore not receive back the full amount invested. They may thus suffer a loss.

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
Conservation risk Currency risk Delivery risk Emerging market risk Equity Risk ESG Investment Risk Legal risk Operational risk Risk of conflict of interest Risk on Cocos Volatility risk

Risk and reward indicators 31/3/23

Fund
Sharpe Ratio
0.57
Volatility
1.04 %
Average Rating
BB+
Credit Sensitivity
0.70
Gross High Yield Exposure
35.25 %
Gross Investment Grade Exposure
122.75 %
Number of Issues
178
Number of Issuers
94
Modified Duration to Worst
0.66
Net High Yield exposure
10.58 %
Net Investment Grade exposure
17.51 %
Total Gross Exposure
162.72 %
Total Net Exposure
30.22 %
Yield to Worst
2.98

ESG

SFDR Category: Article 8

Our approach to selecting environmental or social investments for the Candriam funds referred to in Article 8 of the SFDR*:

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.

Sustainability-related disclosures

    b. Fund specific features

    Companies
    Controversial Activities :
    Level 1 - Company-Wide Exclusion Policy
    Stewardship Active Ownership
    Engagement
    KPI's
    Carbon footprint Corporate - Scope 1&2 Lower than absolute threshold
    Companies Stewardship Active Ownership KPI's
    Controversial Activities :
    Level 1 - Company-Wide Exclusion Policy
    Carbon footprint Corporate - Scope 1&2 Lower than absolute threshold
    Min Investments Environmental Social characteristics rate

    25%

    Min Sustainable Investments rate

    10%

    Min Sustainable Investments Environmental rate

    0%

    Min Sustainable Investments Social rate

    0%

    Min Investments Environmental Social characteristics rate

    25%

    Min Sustainable Investments rate

    10%

    Min Sustainable Investments Environmental rate

    0%

    Min Sustainable Investments Social rate

    0%

For more information on the environmental or social characteristics of our investments, as well as the integration of sustainability risks, please refer to Candriam’s transparency policies and codes and SFDR Article 8 fund sustainability information (available on our website: https://www.candriam.com/en/professional/sfdr/) as well as the fund prospectus (available on our website https://www.candriam.com)

* SFDR is the acronym given in Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on the publication of sustainability information in the financial services sector.

Documents

  • ISIN
Languages

ESG documents

Shareholder documents

Annual and semi-annual reports

Factsheets and fund comments

Other important 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.

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