• Innovative ESG Strategy: Candriam’s new fund combines financial analysis with ESG criteria to offer market-neutral, sustainable returns.
• Targeted Investment Approach: The fund focuses on long investments in companies with strong ESG practices and short positions in those with weaker ESG and financial profiles.
• Expanding ESG Offerings: Candriam strengthens its alternative investment portfolio by integrating ESG principles, catering to growing demand for sustainable investment solutions.

Candriam Launches ESG Equity Market Neutral Fund for Sustainable Growth

Candriam has introduced its latest ESG-focused fund, the Candriam Equities L ESG Market Neutral Fund, designed to offer investors diversified and uncorrelated returns while adhering to sustainable investment principles. This actively managed fund leverages a systematic market-neutral framework, blending financial and ESG analysis to identify investment opportunities that align with both financial goals and sustainability criteria.

Unique Investment Strategy

The fund targets both long and short investment positions by evaluating financial performance and ESG criteria simultaneously. According to Candriam, the strategy is built on the belief that “financially sound companies adhering to robust ESG standards are positioned for long-term value creation,” while those with weak fundamentals and poor ESG practices are likely to underperform. This approach allows for a diversified portfolio that is market-neutral, minimizing risk while pursuing sustainable growth.

Rigorous Evaluation Process

Candriam’s proprietary ESG model plays a crucial role in assessing each company’s sustainability credentials. Companies recognized as sustainability leaders, exhibiting solid financials and strong ESG records, are selected for long positions. Conversely, companies with weak financial fundamentals and poor ESG performance are shorted. The fund’s quantitative equity team uses a proprietary framework to score companies based on factors such as value, quality, growth, market sentiment, and volatility.

Leadership and Expertise

The fund is managed by Bart Goosens, global head of quantitative equity and deputy global head of alternative investments, alongside Dave Benichou, deputy head of quantitative equity. Their expertise is complemented by Candriam’s robust ESG and quantitative equity teams, reinforcing the fund’s strategic approach to integrating sustainability and financial performance.

Expanding ESG Integration

Steeve Brument, global head of alternative investments at Candriam, emphasized the company’s commitment to innovation and ESG integration:

“By combining our differentiated ESG process with the extensive expertise of our quantitative equity team, we provide our clients with access to unique solutions that seek to offer an attractive risk-return profile, while supporting meaningful social and environmental change.“

Related Article: 73% of Private Equity Managers Now Boast Robust ESG Processes, LGT Capital Partners’ ESG Report

Brument further stated that the growing appetite for ESG-aligned solutions is evident, and this new fund represents a significant step in Candriam’s broader strategy to embed ESG principles within its alternative investment offerings.

The fund is available for distribution in multiple European countries, including Luxembourg, Belgium, France, Italy, Germany, Austria, Switzerland, the UK, and The Netherlands, positioning Candriam as a key player in the growing market for sustainable investment solutions.