FFG EUROPEAN EQUITIES MODERATE SUSTAINABLE MODERATE
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 Moderate seeks long-term capital appreciation through a diversified portfolio, while keeping the risk of capital loss limited and the level of volatility below that of equity markets. The investment strategy of the fund can be described as “defensive”.
The sub-fund is a feeder sub-fund which invests at least 85% of its net assets in the FFG – European Equities Sustainable sub-fund (the “Master Fund”), and more precisely in class I. The Master Fund seeks long-term capital appreciation through a diversified portfolio of equities of European issuers and seeks to outperform a broad European equity index. In order to limit the exposure of the sub-fund to the risks of the equity markets, a systematic hedging of the equity exposure will be implemented. Hedging will limit the Fund’s exposure to the equity market to a maximum of 50%. Portfolio assets not invested in the Master Fund or in hedging instruments will be held as cash in the Fund. The Fund is actively managed without regard to a benchmark in setting the Fund’s investment policy.
|Launch of the strategy
|Type of fund
|Waystone Management Company (Lux)
|Acadian Asset Management LLC
|Banque de Luxembourg
|Country of registration
|BE, LU, FR, ES
|Duration of the fund
RESPONSIBLE INVESTMENT POLICY
The sub-fund is categorised 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, gross corruption, serious breaches of fundamental ethical standards) or because the economic activities from which they derive their revenues could have negative effects on sustainability factors. These economic activities include, but are not limited to, the design, production, maintenance or trade of weapons, the production of tobacco products, the extraction of thermal coal or unconventional oil and gas. b) The portfolio is constructed to achieve, for equity investments, at least 50% lower carbon emissions than a representative equity universe of the starting 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, both the manager and the distribution coordinator are signatories to 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 the Funds For Good “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 aim 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 the policy of a particular product is in line with your personal beliefs. The award of this label does not mean 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 carried out by the manager, Acadian Asset Management LLC.
Risk/return indicator: 3.
The risk/return indicator is 3, as the value of the share may move moderately and therefore the risk of loss and the opportunity for gain may be moderate. 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?
• The use of listed futures and/or options contracts is intended to mitigate market and currency risks at the portfolio level, but not to eliminate them completely.
There may be other risk factors which an investor should consider in light of their personal circumstances and particular present and future circumstances. Further information on the risks of investing in the Fund is set out in the Key Investor Information Document and in the relevant section of the Fund’s prospectus, which is available from the Management Company and on the website www.waystone.com.