Candriam Sustainable Equity Water I GBP Unhedged Acc

Shares of small, mid and large cap companies throughout the world that provide solutions to treat, transport, distribute and valorize water (Water Solution Enablers), as well as companies that, through their own processes in high water use sectors, lead the reduction in water intensity (Water Efficiency Leaders). Investment strategy: The fund seeks to achieve capital growth by investing in the principal assets traded and selecting companies providing solutions to treat, transport, distribute and valorize water (Water Solution Enablers), as well as companies that, through their own processes in high water use sectors, showcase very strong practices aiming at minimizing the impact on freshwater resources, while making their process more water-efficient through the reduction in water intensity (Water Efficiency Leaders). The management team makes discretionary investment choices on the basis of an economic/financial analysis process as well as on a Candriam’s proprietary analysis of Environmental, Social and Governance (ESG) considerations, both indicative of risks and long-term opportunities along with a specific screening based on water considerations. Firstly, investment ideas are screened and scored using a dynamic proprietary Water Thematic Framework. All selected companies have undergone the Water framework assessment: companies have either been identified as a Water Solution Enabler or as a Water Efficiency Leader. Secondly, each company is assessed through a financial framework according to five fundamental criteria: quality of management, business growth, competitive advantage, value creation, and financial leverage. The fund’s sustainable investment objective is aligned with the SICAV’s sustainable objective related to climate change in as much as the transition towards cleaner & sufficient water and more efficient water solutions represents an important step towards achieving the objectives of the Paris Agreement. The fund targets to have a weighted average percentage of revenues of the companies in the portfolio coming from a water related activity of more than 20%. In addition, the fund seeks to have positive long-term impacts on environment and social areas. To fulfil this sustainable objective, the fund’s weighted average ESG score aims to be higher than the weighted average ESG score of the Benchmark. The analysis and selection process is also accompanied by active involvement, in particular through dialogue with companies and, as a shareholder, through voting at general meetings. The fund has not filed for the French SRI label. For more information, please refer to the management company's website and/or the prospectus. This hedged share classe aims to reduce the effect of exchange rate fluctuations between the base currency of the sub-fund USD and GBP being the currency in which the hedged share class is denominated. This reduces but does not completely eliminate currency risk. The fund may use derivative products both for investment and hedging purposes (hedging against unfavourable future financial events). Benchmark: MSCI ACWI (Net Return) The fund is actively managed and the investment approach implies a reference to a benchmark. Use of the benchmark: - as investment universe. In general, the majority of the fund’s financial instruments are part of the benchmark. This said, investments outside this benchmark are admitted, - in the determination of risk levels/parameters, - for performance comparison, - for performance fees calculation for certain share classes if applicable. Deviation level of the portfolio composition from the benchmark: The fund being managed actively, its objective is not to invest in all constituents of the benchmark, nor to invest to the same extent in the constituents of the benchmark. Under normal market conditions, the tracking error of the fund will be important this is over 4%. This measure is an estimation of the deviation of the fund’s performance compared to the performance of the benchmark. The more the tracking error is important, the more deviations compared to the benchmark are important. The effective tracking error depends notably on the market conditions (volatility and correlations between financial instruments) and can deviate from the expected tracking error. Redemption of shares: On request, every day, in Luxembourg. Allocation of income: Reinvestment. Recommendation: This fund may not be suitable for investors who plan to withdraw their capital within 6 years.