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 knowhow 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.”
The Solactive Candriam Factors Sustainable Europe Equity Index, the Solactive Candriam Factors
Sustainable EMU Equity Index and the Solactive Candriam Factors Sustainable Japan Equity Index
are calculated as net total return indices denominated in EUR. The Solactive Candriam Factors
Sustainable Sovereign Euro Bond Index and the Solactive Candriam Factors Sustainable
Corporate Euro Bond Index are calculated as total return indices denominated in EUR. The
minimum amount outstanding for the Solactive Candriam Factors Sustainable Sovereign Euro
Bond Index must be of 1 bn EUR with a time to maturity of at least 18 months, while for the
Solactive Candriam Factors Sustainable Corporate Euro Bond Index the minimum amount
outstanding must be of 500 million EUR with a time to maturity of at least 18 months. All indices
are adjusted quarterly.
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