Equities fund
Dorval European Climate Initiative

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Returns / risks

Investing and supporting the financing of European companies, primarily in the euro area, that offer products and/or services with a positive environmental impact or that contribute to the goals set out in the Paris Agreement

Stéphane Furet Deputy Chief Executive Officer and Co-Chief Investment Officer
Tristan Fava Portfolio manager – Financial analyst and Responsible Investment Coordinator
Laurent Trules Portfolio manager – Financial analyst and Responsible Investment Coordinator

Key points

  • A range of stocks that offer products/services with a positive environmental impact.
  • Environmental multi-theme active portfolio management approach that makes ‘green intensity’ and decarbonization the building blocks of its management process.
  • An Article 9 fund[1], eligible for PEA French share savings plans and carrying the French SRI[2] and Greenfin[3] accreditations, with a sustainable investment objective to keep the temperature warming potential of its investments below the 2°C threshold as compared to the pre-industrial era out to 2100, aligning with the Paris Agreement.
  • The fund is exposed to a risk of capital loss.

Performance since creation

  • -

As of 12/31/2021, the reference indicator used for calculating performance fees is the EURO STOXX Total Market Paris-Aligned Benchmark Net Return EUR (Bloomberg Code: BKXTPAB Index). It is denominated in euros.

The EURO STOXX Total Market Paris-Aligned Benchmark Net Return EUR is a share index that represents the large- and mid-cap markets in the main euro area countries. The index promotes investment alignment with the Paris Agreement on the climate by following climate index requirements (EU Paris-based alignment) outlined by the European Commission in the Technical Expert Group (TEG) report on climate benchmarks. The Fund does not seek to replicate this reference indicator and can therefore significantly diverge from it.

The reference period is the period during which the Fund’s performance is measured and compared to the reference indicator: it is set at five years. The Management Company ensures that over a performance period of five (5) years maximum, any underperformance of the Fund as compared to the reference indicator is compensated before performance fees become due.

The start date for the five-year performance reference period is January 1, 2022. Subsequently, the observation period will be the fund’s accounting year, from January 1 to December 31. 

Performances net of management fees

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UNIVERS D'INVESTISSEMENT

Chiefly comprises European stocks primarily in the euro area and covering all market capitalizations

INDICATEUR DE REFERENCE

EURO STOXX Total Market Paris-Aligned Net Return EUR

DUREE MINIMALE DE PLACEMENT RECOMMANDEE

5 Years

Directing investment to support the energy and ecological transition

The energy transition requires us to entirely rethink our production processes, our consumption habits and our energy mix. However, this extensive economic transition also offers a range of investment opportunities. Our fund makes ‘green intensity’ and decarbonization the cornerstones of its investment management process and draws on a theme-based approach with an environmental focus, based on 8 “eco-activities” that play an active part in driving the environmental transition and the fight against climate change.

Supporting leading European corporations that harbor robust growth potential

Dorval European Climate Initiative invests in European companies, primarily in the euro area, that offer products and/or services with a positive environmental impact or that contribute to the goals set out in the Paris Agreement. Our “Europe/Euro Area” focus is a result of the zone’s broad investment universe comprising companies that are committed to these themes and enjoy a buoyant regulatory environment for this type of investment.

Offering an environmental multi-theme active portfolio management approach, governed by our stringent socially responsible investment policy

Dorval European Climate Initiative is classified Article 9 under EU SFDR[1] and carries the French SRI accreditation[2] and the Greenfin certification[3]. The fund’s main objective is sustainable investment and seeks to step up companies’ environmental and climate transition. It particularly targets nine of the 17 United Nations Sustainable Development Goals (SDG).

With this in mind, the fund aims to:

  • Address the climate emergency alongside investors committed to tackling environmental challenges,
  • Invest in European companies, primarily in the euro area, that offer products and/or services with a positive environmental impact based on the Greenfin classification[3],
  • Generate financial and non-financial performances as compared with its reference indicator, which aligns with the Paris Agreement,
  • Contribute to funding the Fondation EPIC, which fights childhood and youth inequality via stringently selected high-impact social organizations, by donating 10% of the fund’s management fees net of retrocessions.

Our environmental strategy is built on three fundamental components:

Information concerning the methodology and data relating to extra-financial analysis are available in the SRI policy and the Code of transparency of Dorval Asset Management available here.

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[1] Sustainable Finance Disclosure Regulation (SFDR) seeks to foster greater transparency on environmental and social responsibility on the financial markets. Article 9 funds have a sustainable investment objective.
[2] This accreditation was developed by the French Ministry for the Economy and Finance and is designed to increase the visibility of socially responsible investment (SRI) funds with savers. The certification body conducts an audit to ensure that funds applying for the SRI accreditation comply with the range of label criteria. For more information on the methodology used, visit https://www.lelabelisr.fr/en/. Any references to a ranking, accreditation, award and/or rating are not an indicator of the fund’s or asset manager’s future results.
[3] This public accreditation was developed by the French Ministry for the Ecological Transition, and ensures the green dimension of investment funds. It is designed for financial stakeholders striving to support the common good via transparent and sustainable practices. Achieving the Greenfin label means that part of savings can be mobilized to support the energy and ecological transition. For more information on the methodology used, visit https://www.ecologie.gouv.fr/label-greenfin (website in French). Any references to a ranking, accreditation, award and/or rating are not an indicator of the fund’s or asset manager’s future results.

The environmental transition requires us to entirely rethink our production processes, our consumption habits and our energy mix. The Greenfin accreditation defines “activities directly or indirectly contributing to "green growth" through the development of renewable energies (wind, solar, geothermic, hydraulic, marine, from biomass, etc.), the energy efficiency and the low carbon footprint of industrial buildings and processes, the circular economy, clean transport, agriculture and forestry, infrastructure for adapting to climate change, and so forth, fall within the scope of the energy and ecological transition. These are "activities that produce goods and services aimed at protecting the environment or managing natural resources, i.e. intended to measure, prevent, limit or address environmental damage to water, air and soil and the problems surrounding waste, noise and ecosystems for the well-being of Mankind" (international definition from the OECD and Eurostat).  The activities eligible within the context of the Greenfin label are those strictly appearing in the taxonomy as presented in this appendix. This taxonomy is initially based on that of the Climate Bond Initiative[4] (CBI)”. Examples of business activities classified into eight eco-activities as defined by the Greenfin label classification are outlined in the following non-exhaustive list:

  1. Agriculture and forestry with the development of organic and sustainable agriculture or low-emission forestry and agricultural activities,
  2. Buildings with the development of green and sustainable buildings and the need to enhance their energy efficiency,
  3. The circular economy with the need to improve recycling, energy recovery from waste or reuse of materials or products with a view to preventing harmful pollution,
  4. Industry by developing products, processes and energy efficiency systems,
  5. Transport with in-depth transformations involving electric vehicles, biofuel, recharging stations, rail transport and soft mobility (bikes, rollerblades, etc.),
  6. Information and communication technologies, including data centers running on renewable energies, the development of smart grids, and new substitution technologies,
  7. Adaptation to climate change by ensuring resilience of infrastructures and water resource management,
  8. Energy, reflecting the increase of renewable energies, management of issues related to energy distribution and management, the development of energy services (energy storage, hydrogen, carbon capture).

The eligible investment universe is therefore divided into these eight eco-activities as defined by the Greenfin accreditation criteria, along with a “non eco-activity” category, which covers stocks that do not meet with these eco-activity criteria, but are eligible to Taxonomy Regulation and the Management Company’s ESG criteria, and are included for their own appeal. The portfolio must invest more than 75% of net assets in stocks belonging to these eco-activities.

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[4] https://www.climatebonds.net/

Recommended investment horizon : 5 years Class R Class N
Asset management company Dorval Asset Management
Inception 22 June 2018
Launch date for Dorval European Climate Initiative strategy 31 December 2021
Accounting currency EUR
ISIN Code FR0013334380 FR0013334372
Allocation of earning Accumulation Accumulation
Maximum management charges Inc.Tax 1,60% 0,80%
Maximum entry charges Inc.Tax 2% (Not retained by the mutual fund)
Maximum exit charges Inc.Tax None
Outperformance fee Inc.Tax

20% of the FCP's outperformance, if the FCP's performance is positive, relative to its composite reference index, EURO STOXX Total Market Paris-Aligned Benchmark Net Return EUR (Bloomberg Code: BKXTPAB Index)

The Management Company ensures that over a performance period of 5 years maximum, any underperformance of the UCITS compared to the benchmark index is compensated before performance fees become due.

Decimalisation in number of units One thousandth
Minimum initial subscription One thousandth One thousandth
Minimum subsequent subscription One thousandth One thousandth
Original net asset value € 100 € 100
Valuation Daily
Centralisation time D-1 up to 1h00 pm (CET)

Alpha: outperformance of a fund relative to its reference index, expressed as a percentage. This is an indicator of the fund manager's ability to create value, excluding the market effect. The higher the alpha, the better the fund's performance relative to that of its reference index.

Beta: measurement of a fund's sensitivity to market movements (represented by its reference index). A beta of more than 1 indicates that the fund amplifies both upward and downward movements in its reference market. By contrast, a beta of less than 1 means that the fund tends to react less than its reference market.

Best-In-Universe approach: the best-in-universe approach focuses on companies carrying the highest non-financial scores, independently of their business sector. Sectors that are broadly deemed to be most virtuous will be more heavily represented, so this approach can lead to sector bias, which we fully recognize.

Director rating method: a rating based on ten criteria that assesses directors' intrinsic qualities and their ability to deliver superior long-term growth.

Eco-activities: “activities that produce goods and services aimed at protecting the environment or managing natural resources, i.e. intended to measure, prevent, limit or address environmental damage to water, air and soil and the problems surrounding waste, noise and ecosystems for the well-being of Mankind" (international definition from the OECD and Eurostat).  

Exposure as a percentage of net assets: a fund's overall exposure takes into account the sum of its physical positions and off-balance sheet positions. As opposed to so-called "physical" positions (which in accounting terms are entered under the schedule of investments), off-balance sheet positions encompass positions taken on both financial futures and derivatives. Examples of derivatives include futures contracts, swaps and option contracts. A maximum off-balance sheet exposure limit is defined in the prospectus.

Gain frequency: calculated based on the history of the fund since its inception, showing the ratio of the number of positive observations to the total number of observations over the period.

Green share: the portfolio management team has defined three ‘green intensity’ categories:

  • Intense: companies that derive more than 50% of revenues from at least one of the eco-activities mentioned;
  • Dynamic: companies that derive 10-50% of revenues from at least one of the eco-activities mentioned;
  • Neutral: companies that derive less than 10% of revenues from at least one of the eco-activities mentioned.

Maximum recorded gain: all-time maximum gain recorded by the fund.

Maximum recorded loss: all-time maximum loss recorded by the fund.

Recovery period: time expressed in days that the fund takes to exceed the highest net asset value during the period indicated.

SBTi: the Science-Based Targets initiative (SBTi) is a joint project from the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI) and the World Wildlife Fund (WWF). It aims to encourage companies to define greenhouse gas emissions targets that meet with scientific goals in line with recommendations from the Intergovernmental Panel on Climate Change (IPCC) and the Paris Agreement on the climate.

Sharpe ratio: indicator of a product's outperformance relative to a risk-free rate, taking into account the risk taken (volatility of the product). The higher this is, the better the fund.

Volatility: amplitude in the variation of a share, fund, market or index over a given period. High volatility means that the price of the share varies significantly and therefore that the risk associated with the share is high.

Ratio 1 year 3 years 5 years
Sharpe ratio - - -
Beta - - -
Alpha - - -
Information Ratio - - -
Volatility -
Ratio Value Date
Maximum recorded gain -% from - to -
Maximum recorded loss -% from - to -
Recovery period - days
Gain frequency -% per month

As of 12/31/2021, the reference indicator used for calculating performance fees is the EURO STOXX Total Market Paris-Aligned Benchmark Net Return EUR (Bloomberg Code: BKXTPAB Index). It is denominated in euros.

The EURO STOXX Total Market Paris-Aligned Benchmark Net Return EUR is a share index that represents the large- and mid-cap markets in the main euro area countries. The index promotes investment alignment with the Paris Agreement on the climate by following climate index requirements (EU Paris-based alignment) outlined by the European Commission in the Technical Expert Group (TEG) report on climate benchmarks. The Fund does not seek to replicate this reference indicator and can therefore significantly diverge from it.

The reference period is the period during which the Fund’s performance is measured and compared to the reference indicator: it is set at five years. The Management Company ensures that over a performance period of five (5) years maximum, any underperformance of the Fund as compared to the reference indicator is compensated before performance fees become due.

The start date for the five-year performance reference period is January 1, 2022. Subsequently, the observation period will be the fund’s accounting year, from January 1 to December 31. 

The information provided is neither contractual in nature nor serves as investment advice.

Past performance is no indicator of future performance. Capital invested is not guaranteed. It is advisable to follow the minimum recommended investment horizon. The characteristics, risks and charges concerning this investment are detailed in the fund prospectus, which is available free of charge from the asset management company.

The tax treatment depends on each client's situation and is subject to change at a later date. Each mutual fund may not be suitable for all investors. The risks of investing in a mutual fund are described in the Prospectus for this mutual fund, which can be downloaded from this site. Dorval Asset Management invites the individuals concerned to familiarise themselves with it.

Dorval Asset Management may not be held liable for any decision taken or not taken based on information contained in this document, or for how it may be used by a third party.

The investor must be given the Key Investor Information Document before subscribing.

Pursuant to provisions in Council Regulation (EU) No 833/2014, the purchase of units/shares in Dorval Asset Management’s funds is prohibited for all Russian and Belarusian nationals, as well as any individuals who are resident in Russia or Belarus and any legal person, entity or body established in Russia or Belarus, apart from nationals of a Member State and individuals holding a temporary or permanent residence permit in a Member State.

Dorval European Climate Initiative enables investors to benefit from the performance potential of financial markets in exchange for taking a certain amount of risk. The risks linked to a mutual fund are as follows: capital loss risk, equity markets risk, liquidity risk, foreign exchange risk, interest rate risk, credit risk and risk linked to the use of derivatives, futures or options. The fund is neither protected nor guaranteed. You may get back less than you invested.

This UCITS is subject to sustainability risks as defined in Article 2 (22) of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR Regulation”); these include any environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. The portfolio’s investment process includes the ESG approach outlined above in order to incorporate sustainability risks into the investment decision or process. 

The fund's minimum recommended investment horizon is five years; it is intended for investors prepared to tie up their capital for this period of time.

Please refer to the fund prospectus for additional details on risks. This is available for free on request from the asset management company or can be downloaded from this website.

Risk and reward profile* :1 2 3 4 5 6 7

*Risk scale from 1 (lowest risk) to 7 (highest risk). Risk 1 means that an investment is low-risk rather than risk-free.

This fund is classified as "category 6" due to the discretionary management approach taken by Dorval Asset Management, which focuses on high exposure to European Union equity markets.

The historical data used to calculate the synthetic indicator may not be a reliable indicator of the mutual fund's future risk profile.

The risk and reward category shown remains subject to change, meaning that the mutual fund's classification is liable to change over time.

The mutual fund is not capital guaranteed.

Why did you decide to launch a climate impact fund at this point?

The conclusions from scientists, such as the IPCC, are crystal clear. Climate warming is primarily a result of the effects of human activity on the climate and the environment, leading to vast transformation in our planet’s ecosystems, and these impacts are set to step up over time.

Today’s business model built on economic growth and the ensuing CO2 emissions affects biodiversity and increases pressure on natural resources, while the world’s population has reached unprecedented numbers.

The energy transition requires is to entirely rethink our production processes, our consumption habits and our energy mix.

As an investor, we have a crucial responsibility to accelerate this transition by focusing on companies that offer real solutions to drive the economic, ecological and environmental transition.

 

How do you select companies that play a driving role in this transition?

We are convinced that this transition requires an extensive transformation across several business sectors, and we have developed our investment process to actively support companies as they take concrete action.

Our methodology makes non-financial analysis the cornerstone of our investment process, with 70% of the issuer’s final score now ascertained via ESG criteria i.e. ESG score, ‘green intensity’, belonging to business sectors that promote the transition.

We also felt that it was vital to combine our methodology with a clear and informed view that we seek to apply on all aspects related to this transition i.e. there will be winners and losers and it is essential to make every effort to identify them.

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Do you need information?

Contact Gaëlle Guilloux !

+33 (0)1 44 69 90 45 - +33 (0)6 78 43 94 09

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