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19-06-2024
Launch of the first Indosuez Funds bond fund - Chronos Green Bonds 2028
Indosuez Wealth Management announces the launch of Indosuez Funds - Chronos Green Bonds 2028, the first SFDR bond fund[1] in the Indosuez range to be classified as Article 9[2]. It makes it possible to invest in green bonds in companies running projects having a positive impact on the environment (renewable energy, green buildings, or clean transport, for example).
Against a backdrop of a booming green bond market[1], Indosuez Funds - Chronos Green Bonds 2028 offers an attractive and responsible investment opportunity.
Offered to investors with a conservative risk profile, Indosuez Funds Chronos Green Bonds 2028 is a fixed-maturity fund that offers visibility on the potential performance that will be delivered at maturity. It thus ensures returns while promising a moderate risk.
The Indosuez Funds Chronos Green Bonds 2028 fund comprises around sixty securities, from different sectors and geographical areas, offering a wide range of investments and a good distribution of risk.
Indosuez Funds Chronos Green Bonds 2028 only finances companies that commit to carrying out projects that relate to the United Nations Sustainable Development Goals. The portfolio is made up of securities meeting the ICMA Green Bond Principles international standard[2].
This portfolio is built in conjunction with credit analysts and ESG analysts from Indosuez Wealth Management. The companies financed by the fund are selected by Indosuez Wealth Management's bond management team, on the basis of a fundamental analysis and their ESG quality. The fund is managed by Indosuez Wealth Management’s bond management team based in Paris. This team is in charge of managing various bond issues totalling €1.4 billion under management.
The objectives of companies financed by Indosuez Funds Chronos Green Bonds 2028 are monitored by independent, external rating companies and non-profits, ensuring projects are conducted appropriately.
Alexandre Drabowicz, Chief Investment Officer of Indosuez Wealth Management, said: “We are innovating by offering our private clients the opportunity to take advantage of attractive rates in the bond markets, while investing in sustainable bonds in our first Article 9 maturity fund. The green bond market has grown considerably in recent years. Originally intended for institutional investors, it is now open to private investors. This is consistent with our wish to support the financing of the energy transition and our clients’ growing wish to contribute through appropriate solutions.”
The United Nations has set 17 major Sustainable Development Goals for 2030. To achieve these objectives, investment needs across all sectors have been estimated at between $5,000 and $7,000 billion per annum. Government subsidies and international aid programmes alone will not be enough to meet these needs.
To address these global challenges, taking action and finding sources of private investment are crucial. The UN estimates that achieving these goals could generate $12,000 billion in business opportunities and create 380 million jobs by 2030*.
* https://www.globalgoals.org/
- ^ [1] Sustainable Finance Disclosure Regulation, the regulation on the disclosure of sustainability-related information in the financial services sector
- ^ [2] Products pursuing a sustainable investment objective
- ^ [1] Nearly €1,700bn in assets as at 31/12/2023 - Bloomberg
- ^ [2] https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp/
Indosuez Wealth Management is the global wealth management brand of the Crédit Agricole Group, the world’s 10th largest bank by balance sheet (The Banker 2022).
For more than 150 years, Indosuez Wealth Management has supported major private clients, families, entrepreneurs and professional investors in managing their private and professional assets. The bank offers a tailormade approach that enables each of its clients to preserve and develop their wealth in line with their aspirations. Its teams offer a continuum of services and offerings including Advisory, Financing, Investment Solutions, Fund servicing, Technology and Banking Solutions.
Indosuez Wealth Management has nearly 4,500 employees in 16 locations around the world: In Europe (Germany, Belgium, Spain, France, Italy, Luxembourg, the Netherlands, Portugal, Monaco and Switzerland), Asia Pacific (Hong Kong SAR, New Caledonia and Singapore), the Middle East (Dubai, Abu Dhabi) and Canada (representative office).
With approximately €200 billion in client assets, the Indosuez Group is one of the European leaders in wealth management.
www.ca-indosuez.com
Sub-fund of the Indosuez Funds SICAV (open-ended investment company), a UCITS under Luxembourg law
The objective of Indosuez Funds Chronos Green Bonds (“The Fund”) is to generate a return and/or a capital gain by 31 December 2028. After this date, the Product will (i) implement a new investment policy, or (ii) be liquidated, or (iii) be merged into another Product of the Company or another UCITS. In each of the three cases mentioned above, the decision will be duly communicated to the shareholders and reflected in an updated prospectus, while the communication to the shareholders will be accompanied by notice.
The Fund will mainly follow a buy-and-watch investment approach and will invest mainly in bonds known as “green bonds” denominated in euros. Such bonds comply with the Green Bond Principles and their purpose is to contribute to financing the ecological transition.
The Product is actively managed and does not track a benchmark.
Please refer to the SFDR Appendix of the Prospectus for all binding elements. The Fund is not guaranteed to achieve the investment objective or generate a return on investment. You may not get back all of your invested capital.
Investment horizon: 5 years.
Sub-fund reference currency: EUR. When the reference currency of the product differs from that of your country, currency fluctuations can have a negative impact on the net asset value, performance and costs. Yields may rise or fall as a result of fluctuations in exchange rates.
Risk factors (non-exhaustive list):
The sub-fund’s risk indicator is 3 out of 7, which is a risk class between low and medium.
This indicator does not take sufficient account of the following risks:
- Concentration risk
- Credit and interest rate risk related to investments in Bonds
- Risks associated with holding high yield bonds
- Liquidity risk
- Risk associated with the use of derivatives
- Sustainability risk
- Inflation risk
Main costs:
All costs and risks are detailed in the Prospectus and the Key Information Document.
Access to Fund documents and information in your country:
This promotional document is intended solely for investors in France, Spain, Italy, Luxembourg, Germany, Greece and Switzerland, countries in which the Fund is registered for distribution.
In Belgium: this document is intended for professional investors only and is not intended for retail investors.
This document is also not intended for US Persons.
Before making any investment decision, you must read the current prospectus (available in English and French), the Key Information Document (“PRIIPS KID”), translated into one of the official languages of your country, and the latest annual and half-yearly reports. These documents are available on request and free of charge from the Management Company, CA Indosuez Wealth (Asset Management), 31-33 avenue Pasteur, L-2311 Luxembourg, Tel: +352 26 86 69 as well as on the website https://ca-indosuez.com/pages/ca-indosuez-wealth-asset-management and from the entities in charge of Information Disclosure for your country.
Any complaint may be submitted to the Compliance Department of CA Indosuez Wealth (Asset Management) at 31-33, Avenue Pasteur, L-2311 Luxembourg.
This document is a promotional document relating to Indosuez Funds, an open-ended investment company (“SICAV”) incorporated under Luxembourg law with multiple funds in accordance with the Luxembourg law of 10 August 1915 on commercial companies and UCITS in accordance with the European Directive 2009/65/EC, as amended and supplemented, and in accordance with part I of the Luxembourg law of 17 December 2010 on undertakings for collective investment as amended (the “2010 Law”). The SICAV is registered in the Luxembourg Trade and Companies Register under number B 166912.
The information and opinions contained in this document do not constitute a personalised or general recommendation and cannot be construed as investment, legal or tax advice, audit advice or any other advice of a professional nature. This document does not state in way that an investment or strategy is suited or appropriate to an individual situation and your risk profile.
You can access a summary of your rights regarding collective redress at European and national levels in the event of a dispute. This summary is available free of charge in one of the official languages of the EU country of registration (or an authorized language) at the following link: https://ca-indosuez.com/pdfPreview/34300
The management company may decide at any time to cease marketing the Fund in your country.
This document is published by CA Indosuez Wealth (Asset Management), the management company of Indosuez Funds having its registered office at 31-33, Avenue Pasteur, L-2311 Luxembourg.
PR Launch funds Chronos Green Bond.pdf
25-06-2024
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