As previously revealed by InvestmentEurope , Solactive and Candriam launched the Solactive Candriam factors sustainable index family offering exposure to companies with sustainable and responsible investing criteria as determined by Candriam’s SRI screening methodology. The family is composed of five fundamentally-weighted indices with factor tilts, including three equity and two fixed-income indices, which are used as the basis for five new ETFs issued by Candriam and trading on the Paris Euronext Stock Exchange (and cross-listed on Amsterdam Euronext).
The indices are engineered to exploit the return potential of socially responsible companies through a smart beta scheme allocating weight to shares and bonds that display specific value, quality and low-volatility features. In doing so, these indices combine two powerful trends in the investment landscape: the increasing awareness regarding ESG aspects and the strong interest in Factor Investing/Smart Beta.
On the equity side, the Solactive Candriam factors sustainable indices offer access to Candriam’s SRI and fundamentals weighting strategy by providing targeted exposure to different geographic regions. Specifically, the Solactive Candriam factors sustainable Europe equity index is composed of European companies, the Solactive Candriam factors sustainable EMU equity index covers companies within the Euro area and the Solactive Candriam factors sustainable Japan equity index is a Japanese version of the index. These constitute the underlying indices for the IndexIQ – factors sustainable Europe equity Ucits ETF, the IndexIQ – factors sustainable Emu equity Ucits ETF and the IndexIQ – factors sustainable Japan equity Ucits ETF, respectively.
In the fixed-income space, the Solactive Candriam factors sustainable sovereign Euro bond index and the Solactive Candriam factors sustainable corporate Euro bond index provide exposure to Candriam’s SRI approach through different segments of the investment grade bond market, precisely sovereign and corporate issues denominated in EUR. The fixed-income indices are tracked by the IndexIQ – factors sustainable sovereign Euro bond Ucits ETF and the IndexIQ – factors sustainable corporate Euro bond Ucits ETF, respectively.
Steffen Scheuble, CEO, Solactive, stated: “Environmental, social and governance factors have become increasingly important for investors due to their potential impact on performance and shareholder value. Through the Solactive Candriam Factors Sustainable Index Family and corresponding ETFs, market participants can gain cost-efficient exposure to companies and countries conforming to specific sustainability standards, while combining this with a fundamentals weighting approach.”
Naïm Abou-Jaoudé, CEO of Candriam Investors Group and chairman of New York Life Investment Management International, commented: “In a world of constant change, we have always known how to cater to our clients with solutions and services adapted to their growing requirements. By combining New York Life’s international know how on ETFs with our own expertise, especially Candriam’s long track record in SRI, I am confident this distinctive ETF offer will appeal to the market.”