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Candriam Equities L Europe Optimum Quality

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.

Team member image
Geoffroy Goenen
Head of Fundamental European Equity
25 Years of experience
Team member image
Christian Sole
Deputy Head of Fundamental European Equity / Senior Equity Analyst - Financials
26 Years of experience
  • ISIN
ISIN
LU0304860645
NAV - 29 FEB 2024
EUR 215.32
AUM - 29 FEB 2024
EUR 530,056,506.34
SFDR Category 
Article 8
Morningstar 
31 JAN 2024
Category
EAA Fund Long/Short Equity - Europe
Morningstar Rating
Morningstar sustainability 
31 DEC 2023
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 Equities L Europe Optimum Quality (hereinafter the “Fund”) is a sub-fund of the Candriam Equities L SICAV. This sub-fund invests in shares of companies listed on European markets. Since the beginning of April 2014, the selection and allocation of the portfolio has been carried out through a management strategy combining a discretionary and quantitative approach. The fund’s objective in terms of sustainable development is to promote the reduction of greenhouse gases and the objectives of the Paris Agreement. The Sub-Fund is intended for investors who are prepared to accept the risks associated with participating in changes in the equity markets and the use of derivatives, as well as the level of volatility generally associated therewith. The investment horizon is 6 years. The fund is actively managed in reference to the index mentioned in the “characteristics” section. For more information on the definition of this index and its use, please see the KID for the fund.

Principal assets traded:
Shares of companies whose registered offices and/or principal activities are in Europe.

Investment strategy:
The fund seeks to achieve capital growth by investing in the principal assets traded and to reduce volatility and to partially hedge the risk of a fall compared to the benchmark.
The portfolio management combines a quantitative and discretionary approach and is also based on Candriam's internal analysis of environmental, social and governance (ESG) criteria.
The quantitative approach consists in optimising the portfolio to minimise volatility in respect of the benchmark, using options in particular.
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 management team will give preference to securities of companies offering a stable increase in profits.
The fund promotes, among other characteristics, environmental and/or social characteristics but does not have sustainable investment as its objective. The issuers are evaluated on the basis of an analysis of their commercial activities (how the companies respond to the main challenges of sustainable development such as climate change, resource management and waste management) and stakeholders (how the companies manage the main considerations concerning stakeholders such as human resources, the environment, etc.). In particular, the fund aims not to select companies with the lowest ESG scores, and to focus the investments on companies which deliver solutions to the main challenges of sustainable development. The analysis of ESG aspects is therefore included in the selection, analysis and global evaluation of companies. The fund also aims to exclude investments in companies which do not respect certain recognised international standards and principles, or which are significantly exposed to certain controversial activities, or which work with countries considered to be the most oppressive.
The analysis of ESG aspects depends on the availability, quality and reliability of the underlying data. It is therefore possible that the management teams is unable to select a company with an attractive financial valuation.
The analysis and selection process is also accompanied by active involvement, in particular dialogue with companies and voting as the shareholder at AGMs. 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 Europe (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 developed markets in Europe.
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.

NAV & Performances

Historical values graph

 

 

Candriam Equities L Europe Optimum Quality I - 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

Actuarial Yield

  1 year 3 years 5 years
Share class 2.26 % 3.36 % 5.44 %
Benchmark 10.17 % 10.32 % 8.87 %
Difference -7.92 % -6.96 % -3.42 %

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 and compare it to its benchmark.
The index composition may change over time. The performance reported may therefore differ from the performance of the relevant index before its change. 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 no performance is given for a year following the year of creation, this will be because there is not enough data to provide investors with a reliable indication of this performance. "

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

As of 01/04/2014, the fund has changed investment policy.

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Share class 21.79 % -1.95 % 14.25 % -5.09 % 21.59 % 1.81 % 20.31 % -10.51 % 2.43 %
Benchmark 8.22 % 2.58 % 10.24 % -10.57 % 26.05 % -3.32 % 25.13 % -9.49 % 15.83 %
Difference 13.57 % -4.52 % 4.01 % 5.48 % -4.46 % 5.13 % -4.81 % -1.02 % -13.40 %

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

Additional information

The graph – which is provided for information purposes only, and not as an exact measurement of net fund assets – adapts to market developments (currency conversions, coupons, splits, …). Figures may be rounded up or down for the sake of convenience. Figures expressed in a currency other than that of investors’ country of residence are subject, for better or for worse, to exchange-rate fluctuation.
The past performance displayed on this page is nor necessarily an indicator of future performance and is not constant over time. NAV 's are provided by the accounting department and benchmarks by official data providers. Average cumulated performances, based on annual calculation of costs and taxes.

Characteristics

Fund Characteristics

Fund name
Candriam Equities L Europe Optimum Quality
Benchmark
MSCI Europe (Net Return)
SICAV Name
Candriam Equities L
Currency
EUR
Legal Form
Sub-fund of a SICAV under Luxembourg law
Fund type
UCITS
SFDR Category
Article 8
Creation Date
Term of the fund
The fund has no limited term
Domicile Country
Luxembourg
Management Company, having its registered office in Luxembourg
CANDRIAM, management Company having its registered office in Luxembourg.
Depository Bank
CACEIS Bank, Luxembourg Branch
Transfer Agent
CACEIS Bank, Luxembourg Branch
Recommended investment horizon
6 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)
0.75 %
Subscription
0.00 %
Redemption
0.00 %
OCF Date
Last OCF
0.75 %

Instrument

Name
I - Cap
Benchmark
MSCI Europe (Net Return)
Currency
EUR
ISIN
LU0304860645
Bloomberg Ticker
DEXEHDI LX Equity
Morningstar Ticker
F000000ITQ
First NAV Date
11/10/07
Marketing Authorisation
Austria; Denmark; Finland; France; Germany; Ireland; Italy; Luxembourg; Netherlands; Spain; Sweden; Switzerland; United Kingdom

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
SRRI Date
SRRI
5
Definition
The risk and reward profile 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 KIID.
The risk category is calculated on the basis of historical performance and is not necessarily a reliable indicator of the fund’s future risk profile.
It may change in the future and is not guaranteed.
The lowest category does not mean no risk.
Main Risks

Concentration risk: This risk is related to a significant concentration of investments in a specific asset class or certain markets. The greater the diversification of the fund is, the lesser the concentration risk will be.

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.

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.

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.

Equity Risk: Some funds may be exposed to equity market risk through direct investment (through transferable securities and/or derivative products), meaning submitted to the positive or negative evolution of stock exchanges. These evolutions can be huge and be mainly driven by expectations relative to macro-economy and company results, speculation and irrational factors (including trends, opinions or rumours).

ESG Investment Risk: ESG investment risk refers to the risks arising from the inclusion of ESG factors in the management process, such as the exclusion of activities or issuers and the inclusion of sustainability risks in the selection and/or allocation of issuers in the portfolio.

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 Delivery risk Legal risk Liquidity risk Model risk Operational risk Risk of conflict of interest Volatility risk

Risk and reward indicators 31/1/24

Fund
Alpha
-0.02
Beta
0.57
Information ratio
-0.86
Sharpe Ratio
0.20
Tracking error
7.87 %
Volatility
9.08 %
Active share
97.89 %
Dividend Yield
2.71 %
Equity exposure
218.12 %
Number of Issues
59
Price Earning Ratio
22.80 %
Price to Book Value
3.08 %
ROE
17.58 %

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 2A - Exclusion Policy
    Stewardship Active Ownership
    Proxy Voting
    Engagement
    KPI's
    KPI 1 : Carbon footprint Corporate - Scope 1&2 Lower than bench , KPI 2 : ESG Score Corporate Higher than bench
    Companies Stewardship Active Ownership KPI's
    Controversial Activities :
    Level 2A - Exclusion Policy
    Proxy Voting KPI 1 : Carbon footprint Corporate - Scope 1&2 Lower than bench
    Engagement KPI 2 : ESG Score Corporate Higher than bench
    Min Sustainable Investments rate 33%
    Min Investments Environmental Social characteristics rate 75%
    Min Sustainable Investments Social rate 0%
    Min Sustainable Investments rate 33% Min Investments Environmental Social characteristics rate 75% Min Sustainable Investments Social rate 0%
  • Transparency codes

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.

Label

France: ISR

This label/rating is valid for a limited term and is subject to reevaluation. Obtaining this label by the fund does not mean that it meets your own sustainability objectives, nor that the label meets the requirements of future national or European rules.

The quality of the ranking, award or label obtained by the fund or the management company depends on the quality of the issuing institution and the ranking, award or label does not guarantee the future results of the fund or the management company.

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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