FFG EUROPEAN EQUITIES SUSTAINABLE
This is a marketing communication. Please refer to the FFG Fund prospectus and the KID on www.fundsforgood.eu before making any final investment decision. This document does not constitute any contractual document or investment advice.
Founded in 1986, Acadian Asset Management is an active quantitative manager investing in global equities. Headquartered in Boston, the firm has offices in London, Singapore, Tokyo and Sydney. Acadian Asset Management has over EUR 100 billion under management.
Formed in 2021 from the merger of DMS, MontLake and MDO, Waystone has over 20 years of experience in providing institutional governance, risk and compliance services to the asset management industry. Waystone is now a leading player in the industry.
INVESTMENT OBJECTIVES & POLICY
FFG European Equities Sustainable aims to grow capital in the long term through a diversified portfolio of equities of European issuers listed and traded on regulated markets. The Fund invests in equities of issuers of all capitalisations (small, medium and large), without sector or currency restrictions.
The sub-fund is actively managed and its benchmark is the Morgan Stanley Capital International Europe Index (the “MSCI Europe Index “*). Using fundamental analysis based on a quantitative process, the manager will seek to outperform its benchmark. Although the sub-fund benchmarks its performance to that of the MSCI Europe NR Index, it does not seek to replicate this index and is free to choose the securities in which it invests. The difference with the MSCI Europe NR benchmark may be significant. The index is not suitable for the sustainability objective of the fund.
*The MSCI Europe Index is a market capitalisation index designed to measure the performance of developed markets in Europe. The MSCI Europe Index currently comprises the following sixteen developed market indices: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.
|Launch of the strategy||20/12/2018|
|Type of fund||Equities|
|MANCO||Waystone Management Company (Lux)|
|Manager||Acadian Asset Management LLC|
|Custodian Bank||Banque de Luxembourg|
|Country of registration||BE, LU, FR, ES|
|Minimum investissement||1 unit|
|Duration of the fund||Unlimited|
RESPONSIBLE INVESTMENT POLICY
The sub-fund is categorized as a financial product promoting environmental and/or social characteristics as described in Article 8 of the SFDR regulation. This implies that the issuers of the securities held by the sub-fund meet certain sustainability criteria* defined by Funds for Good in its “Responsible Investment Policy”, which is a three-tiered corporate social responsibility policy defined and monitored by Funds for Good SA. This policy includes a) the removal from the investment universe of a range of issuers either because they are or have been subject to serious sustainability controversies (human rights violations, environmental scandals, blatant corruption, serious breaches of fundamental ethical standards) or because the economic activities from which they derive their revenues could have a negative impact on sustainability factors. These economic activities include, among others, the design, production, maintenance or trade of weapons, the production of tobacco products, the extraction of thermal coal or non-conventional oil and gas. b) The portfolio is constructed to achieve, for equity investments, carbon emissions that are at least 50% lower than a universe of equities representative of the initial universe used by the manager for the composition of the equity portfolio, i.e., MSCI Europe, and an increase in the social quality of the companies in relation to this same universe. c) A “Best-in-Universe” policy whereby each company in the portfolio must have a minimum ESG score. d) At the governance level, the manager and the distribution coordinator are both signatories of the United Nations Principles for Responsible Investment (UNPRI) and a voting rights policy is implemented. Voting rights are exercised by the fund manager. Further information on sustainability, as well as Funds For Good’s “Responsible Investment Policy” and the exclusion list, is available at www.fundsforgood.eu/bibliotheque-documents.
The fund has been awarded the Towards Sustainability label, an initiative to which Funds For Good is also a signatory. The purpose of the Towards Sustainability label is to ensure that labelled products meet a minimum level of sustainability, as measured by the Towards Sustainability quality standard, and to provide relevant and useful information to help you determine whether a specific product’s policy is consistent with your personal beliefs. The awarding of this label does not imply that the fund meets your own sustainability objectives or that the label meets the requirements of future national or European rules. For more information on this subject, see www.fsma.be/fr/finance-durable.
*The sustainability criteria are certified by the “Towards Sustainability” label. The assessment of the sustainability criteria is done by the manager, Acadian Asset Management LLC. The starting universe used by the manager for the composition of the equity portfolio. Data source: Acadian Asset Management LLC
Risk/return indicator: 4.
The risk & reward indicator is 4, as the value of the share may change significantly and therefore the risk of loss and the potential gain may be high. Historical data, such as that used to calculate this indicator, may not be a reliable indication of the future risk profile of the fund. There is no guarantee whatsoever that the risk indicator will remain unchanged, so it may change over time.
What does the synthetic risk & reward indicator represent?
Expressed on a scale from 1 (low risk with potentially lower return) to 7 (high risk with potentially higher return), the risk & reward indicator prescribed by law is determined on the basis of the fund’s volatility or sensitivity to the market. It reflects the fact that investments made in this sub-fund are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate can rise and fall and investors may not recover their initial investment. The sub-fund described above involves a risk of capital loss. The repayment of the initial investment is not guaranteed. The lowest category is not a risk-free investment. This risk indicator is also included in the “Key Investor Information” document. The figure is calculated for an investor in euros.
Which important risks are not adequately addressed by the synthetic indicator?
• Investing in shares involves issuer risk in the sense that the issuing company may go bankrupt. There is a risk that the value of their investment in these securities may fall significantly or even be lost completely.
• The investment by the sub-fund in emerging markets is exposed to the risk of political, regulatory, financial or fiscal instabilities or uncertainties which may adversely affect the value of such investments or even call into question the sub-fund’s right of ownership.
• Investment in debt Securities involves a credit risk in that the issuer may be unwilling or unable to meet all or part of the interest or principal payments on its Securities. There is a risk that the value of the investment in these securities may fall significantly or even be lost completely.
• The use of derivatives that are not listed on a stock exchange or traded on another regulated market (“OTC instruments”) involves the risk of counterparty default in the sense that the counterparties to these derivatives may at some point be unable to meet all or part of their obligations to the sub-fund.
• The use of equity index futures is intended to mitigate but not completely eliminate equity market risk.
There may be other risk factors which an investor should consider in light of his or her personal circumstances and particular present and future circumstances. Further information regarding the risks of investing in the sub-fund is set out in the Key Investor Information document and in the relevant section of the fund’s prospectus available from the management companý and on the website www.waystone.com.