Special Opportunities Fund SICAV– World Select ESG Fund
The Sub-Fund is a low net (-30% to +30%) long-short UCITS fund focusing predominantly on the American, European and Asian markets. It employs a fundamental approach to identify quality companies through an investment universe screening and company review process and promotes environmental characteristics as per Article 8 of SFDR. It is actively managed with no reference to a benchmark.
The main objective of the Sub-Fund is to achieve long-term capital appreciation principally by predominantly (i.e, more than 51% of its assets) investing in securities listed on stock exchanges or dealt in on regulated markets of countries throughout America, Western Europe and Asia (including but not limited to the United States, Canada, the United Kingdom, member states of the European Union, Switzerland, Norway, South Korea, the People’s Republic of China, Hong Kong, Taiwan, Japan, India, Indonesia, Vietnam, Thailand, the Philippines, Malaysia, Australia, New Zealand and Singapore), respective of their industry and sector affiliation.
The stock selection process starts with screenings of the investment universe to identify potential candidates by considering CO2 footprint factors (as further described below under section “ESG promotion”). These potential investments are then investigated to review their fundamental characteristics, with a particular focus on their earnings quality profile. A conclusion is then reached that also include indications regarding valuation and tactical inputs (to be understood as technical indicators).
According to the principle of risk diversification, the Sub-Fund’s net assets are mainly invested in a portfolio of equities or equity-related securities. Exposure may be reached through investment in various instruments including but not limited to equities, options, warrants, contracts for difference and other derivative instruments both exchange-traded and over-the-counter which underlying are predominantly listed equities and eligible financial indices.
Sustainability risks are integrated into the Sub-Fund’s investment management process and the Sub-Fund promotes environmental characteristics with a specific focus on CO2 pollution. Therefore, it applies an environmental indicator upgrade approach by considering the tons of CO2 per million dollars invested indicator divided by the long exposure of the portfolio of the Sub-Fund (“CO2 Footprint”).
The CO2 rating coverage rate is, measured on a yearly average based on the month-end net asset value of the Sub-Fund and on company specific data or data for the industry companies belong to, at least 90% of the Sub-Fund’s large capitalisation equity long position investments (or 75% for equities issued by small and medium capitalisation equity investments and emerging market countries).
The average CO2 Footprint of the Sub-Fund’s long equity portfolio should be, measured on a yearly average, based on the month-end NAVs of the Sub-Fund on company specific data or data for the industry companies belong to and on frequency of updates of relevant data of CO2 Footprint, lower than the sum of 50% of the average CO2 Footprint of the MSCI World index and 50% of the average CO2 Footprint of the MSCI Emerging Markets index. The attention of the investors is however drawn to the fact that the Sub-Fund is actively managed and does not replicate the MSCI World or MSCI Emerging Markets indices. The portfolio manager has full discretion to select the investments and may freely choose how to compile the portfolio and is not tied to these indices in selecting and weighting equities. These indices are used for ESG promotion purposes only and are not consistent with the environmental characteristics promoted by the Sub-Fund.
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Benoit Descourtieux is the Chief Investment Officer of the Special Opportunities Fund SICAV established in Luxembourg. He has been working in asset management industry since 1986 and has resided in Asia since 1987. Benoit was a founder and principal at Calypso Capital Limited ("Calypso", predecessor company of OP Investment Management Limited), an alternative independent investment manager established in Hong Kong in 2003 which became in 2008 OP Investment Management Limited. Before setting up Calypso, he was President and Chief Executive Officer for Lombard Odier (Asia) Limited from 1999 to 2003, acting as office head and Chief Investment Officer. Prior to that he was from 1997 to 1999 an Associate Director at Indocam Asset Management, the Asian investment arm of Credit Agricole Asset Management, managing equity, fixed income and balanced products with both absolute return and benchmark focus.