Candriam seeks to build a diversified portfolio of international stocks that employ an ESG discipline with strong company fundamentals, designed to achieve attractive risk-adjusted returns across a full market cycle.
Candriam believes that the key to understanding the complete risk-return profile of a company requires a focus on material ESG factors and financial criteria. Candriam’s ESG Equity SMA investment approach is based on:
- Universe Selection: ESG Research and Analysis Proprietary ESG scoring filters the universe to top 70% of companies
- Portfolio Construction: Fundamental Weighting Stock selection and weight in the portfolio based on fundamental financial factors
- SMA Portfolio Optimization Process manages to specific constraints and risk exposures
Candriam's fundamental ESG research leads to a proprietary ESG scoring approach that focuses on the top-scoring companies across all sectors. These results are used as a framework for engaging with companies in order to raise ESG standards. Meanwhile, the team’s fundamental stock selection is the primary source of alpha potential and utilizes a portfolio-weighting approach rather than market capitalization weightings.
Multi-specialist asset manager
Multi-specialist asset manager focused on fixed income, equity, thematic investing, absolute return strategies, sustainable investments, and asset allocation as well as tailored solutions and advanced liability-driven investing for pension funds and insurers.
Wim Van Hyfte
Global Head of ESG Investments & Research
Deputy Global Head of ESG Investments & Research