Edmond de Rothschild Asset Management is pleased to announce that the EdR SICAV Euro Sustainable Equity fund has been classified as “Article 9”1 SFDR2 since July 5, 2024.
This development reflects our ongoing commitment to responsible and sustainable investment, as well as the determination of our investment teams to develop financial products aligned with the objectives of the Paris Agreement within the framework of the Net Zero Asset Management (NZAM)3 initiative. We are convinced that companies that meet our definition of sustainable investment4 are in a strong position to address our clients’ needs - both extra-financial and financial.
The fund EdR SICAV Euro Sustainable Equity has now on a sustainable investment objective and aims to align its climate trajectory with the Paris Agreement. The fund now includes at least 90% of its net assets allocated to sustainable investments. In addition, 100% of the stocks held in the portfolio have an ESG (environmental, social and governance) rating. It invests at least 50% of its net assets in stocks with a sustainable environmental objective, and at least 40% in stocks with a social sustainability objective.
This fund, which has been SRI5-certified for over a decade, has at least 60% exposure to equities issued in one or more Eurozone countries. The strategy targets companies offering attractive financial upside over the long-term, as well as high extra-financial quality. These are assessed according to our Best-in-Universe ESG6 analysis process. The fund focuses on key themes such as energy efficiency, waste upcycling, human capital and healthcare. Its climate trajectory is also aligned with the objective of keeping temperature rises well below 2°C, in
line with the Paris Agreement. EdR SICAV Euro Sustainable Equity currently weighs 743 million euros in assets under management7.
This new article 9 classification is more than a simple change of status. It will help accelerate our transition towards an investment approach that beyond delivering financial returns, also creates long-term value for society as a whole. This proactive approach will enable us to understand and improve our sustainability risk management, identify investment opportunities in companies with the potential to create sustainable value, and play an active role in ushering in a more responsible economy.
For any questions on this new classification, please contact our sales team.
1 Article 9 funds according to the Sustainable Finance Disclosure Regulation (SFDR): funds whose investment policy includes a sustainable investment objective. A fund's investment policy may change over time, possibly leading to a change in its SFDR classification. If you have any doubts about the SFDR classification of a fund, please contact your usual advisor.
2 The SFDR (Sustainable Finance Disclosure Regulation) is a European regulation designed to increase transparency in sustainability by requiring financial institutions to provide clear and comparable information on the environmental, social and governance (ESG) impacts of their products, in order to help investors make informed sustainable investment decisions.
3 The Net Zero Asset Managers initiative is an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or earlier, in line with global efforts to limit warming to 1.5°C, and to supporting investments aligned with the goal of net zero emissions by 2050.
5 The SRI label is a tool for choosing responsible and sustainable investments. Created and supported by the French Ministry of Finance, the label aims to make socially responsible investment (SRI) products more visible to savers in France and Europe.
6 In the context of socially responsible investment, the "best-in-universe" approach favors companies with the best extra-financial ratings, regardless of their sector of activity. In this context, sectors considered to be the most virtuous will be better represented in the final selection.
7 Data as of June 30, 2024.
05/07/2024
EdR SICAV Euro Sustainable Equity is a sub-fund of the French SICAV authorised by the AMF and authorised for marketing in France, Luxembourg, Austria, Germany, Spain, Switzerland, United Kingdom, Portugal and Italy.
MAIN INVESTMENT RISKS:
Risk indicator: 4.
The risk indicator rates this fund on a scale of 1 to 7. This indicator is used to assess the level of risk of this product in comparison to other funds and a category 1 rating does not mean that the investment is risk free. In addition, it indicates the likelihood that this product will incur losses in the event of market movements or our inability to pay you.
This indicator assumes that you hold the product until the end of the recommended holding period of this fund. The actual risk may be very different if you choose to exit before the end of the recommended holding period of this Fund.
The risks described below are not exhaustive.
Risk of capital loss: The UCITS does not guarantee or protect the capital invested; investors may therefore not get back the full amount of their initial capital invested even if they hold their units for the recommended investment period.
Discretionary management risk: The discretionary management style is based on expectations of the performance of different markets (equities, bonds). However, there is a risk that the UCITS may not be invested in the best-performing securities at all times.
Equity risk: The value of a stock may change depending on factors specific to the issuer but also on exogenous, political or economic factors. The UCITS may be exposed to the equity markets either via direct investments in equities and/or via financial contracts and/or UCITS. Fluctuations of the equity markets may lead to substantial variations in the net assets which may have a negative impact on the performance of the UCITS.
Risk related to SRI (Socially Responsible Investment) selection: The selection of SRI securities may cause the UCITS to deviate from the benchmark indicator.
July 2024
This document is issued by Edmond de Rothschild Asset Management (France). Non-contractual document designed for information purposes only. Reproduction or use of its contents is strictly prohibited without the permission of the Edmond de Rothschild Group. The information contained in this document does not constitute an offer or solicitation to trade in any jurisdiction in which such offer or solicitation is unlawful or in which the person making such offer or solicitation is not qualified to act. The information and opinions on the companies contained in this report have been prepared by Edmond de Rothschild Asset Management (France). Although the information contained in this report is believed to be reliable and has been obtained solely from publicly available sources believed to be reliable, including, but not limited to, company reports, Edmond de Rothschild Asset Management (France) makes no representation as to its accuracy or completeness. This document does not constitute and should not be construed as investment, tax or legal advice, nor as a recommendation to buy, sell or continue to hold any investment. The Edmond de Rothschild Group shall not be held liable for any investment or divestment decision taken on the basis of the information contained in this document. The funds presented may not be registered and/or authorized for sale in your country of residence. If you have any doubts about your ability to subscribe to this fund, please contact your professional advisor. The figures, comments, forward looking statements and other information contained in this presentation reflect the Edmond de Rothschild Group’s view of the markets, their development and their regulations, taking into account its expertise, the economic context and the information available to date. They may no longer be relevant on the day the investor reads them. Consequently, the Edmond de Rothschild Group shall not be held responsible for the quality or accuracy of economic information and data obtained from third parties. Any investment involves specific risks. Investors are therefore advised to ensure that any investment is suitable for their personal circumstances by seeking independent advice where appropriate. In addition, investors should read the Key Information Document (KID) and/or any other document required by local regulations, which is provided prior to any subscription and is available in French and in English on the website www.edmond-de-rothschild.com under the “Fund Center” tab or free of charge on request. A summary of investors’ rights in French and English can be obtained at the following link : https://www.edmond-de-rothschild.com/SiteCollectionDocuments/LegalWebPartSiteDocument/France/_documents-reglementaires/EdRAM-France/EDRAM-FR-Principaux-droits-des-investisseurs.pdf. Edmond de Rothschild Asset Management (France) may decide to cease marketing this Fund in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU.
Source of information: unless otherwise indicated, the sources used in this document are those of the Edmond de Rothschild Group.
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MANAGEMENT COMPANY & GLOBAL DISTRIBUTOR
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47 rue du Faubourg Saint-Honoré / FR - 75401 Paris Cedex 08
Public limited company with a Management Board and Supervisory Board and a capital of 11,033,769 euros
AMF approval number GP 04000015
332.652.536 R.C.S. Paris