Candriam, a global multi-asset manager focused on sustainable and responsible investing with over €145bn of assets under management, today (28 May) launched its Candriam Sustainable Equity Emerging Markets ex-China Fund.
The actively managed fund offers exposure to long-term sustainability themes in Emerging Markets ex-China that are critical in shaping the environment in which companies operate in, as well as taking into consideration future market challenges.
These themes span across technology and innovation, healthy living, climate change, resource efficiency and waste management, and demographic shifts.
This approach seeks to combine three distinctive advantages for investors: enhanced sustainability, higher allocation to growth themes in Emerging countries ex-China while aiming for reduced volatility and geopolitical tail risks.
The strategy has been devised to capitalise on the rising demand and potential in Emerging Markets ex-China, a region which has been a leading driver of global growth and a relative outperformer in recent years. With expectations of higher growth prospects driving inflows into the asset class, the fund seeks to meet this demand and provide investors with access to the substantial growth opportunity in Emerging Markets ex-China.
Candriam’s dedicated ESG team determines the fund’s sustainable investment universe through extensive analysis and assessments. The fund then invests in companies within this universe, specifically targeting sectors that are positioned to benefit from long-term sustainability trends.
The fund will be managed by Vivek Dhawan, fund manager, supported by co-managers Paulo Salazar, head of emerging markets equities and Galina Besedina, senior fund manager at Candriam.
Candriam has over 25 years of experience in emerging markets equites, managing over €4.3bn of assets as of 31 December 2023. Consisting of eight experienced professionals, the emerging markets equity team collaborates closely with the firm’s 25 strong team of ESG professionals to support sustainable and thematic investment decisions.
The fund is available for distribution in Luxembourg, Belgium, France, Italy, Germany, Austria, Switzerland, Finland, Sweden, Denmark, the UK and The Netherlands.
Paulo Salazar, head of emerging markets equities at Candriam, said: “As investors continue to search for compelling returns, Emerging Markets ex-China is proving to be an increasingly attractive market opportunity. We see an immense potential in this space, which is anticipated to be a key driver of global growth in the coming years, and as such we believe it offers important long-term prospects for investors.
"Our focus on long-term sustainability trends together with the expertise of our ESG team, has allowed us to develop a product that provides investors a unique opportunity to capture the extensive growth opportunities in Emerging Markets ex-China, while aligning with sustainable investment principles”.
