Eurizon Fund -
Equity Circular Economy
A global equity investment focused on the circular transition
We believe the circular economy could act as a driver for more sustainable, smart, and inclusive growth. Eurizon Fund - Equity Circular Economy offers a new opportunity to invest in the best-structured companies that are on a transformation path, aiming to achieve more stable profits and cash flows, and stronger customer loyalty. Companies are selected through a bottom-up process that identifies companies with standardised metrics, paying particular attention to a proprietary circularity score, free cash flow yield, and the internal ESG score. The objective is to outperform the benchmark, namely the 100% MSCI World index (EUR). The fund is actively managed, and the benchmark is used for measuring performance and calculating performance fee*.
SFDR: The Fund promotes, among other characteristics, environmental or social characteristics as per Article 8 as per Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector (“SFDR”).
The advantages of investing in the best-structured, leading companies in the circular transition
Companies that have a good level of circularity and operate in the sectors most exposed to linear risks have a better risk profile and a competitive edge over peers, thanks to their ability to anticipate market trends.
Leading circular economy companies are expected to enjoy more stable earnings and cash flows in the medium-long term, in reward for the short-term investments required to make the transition to a circular model.
These companies are able to strengthen customer loyalty by offering services that complement and replace products.
Investment Process
The fund uses a bottom-up approach to analyse and select companies using standardised metrics and proprietary indicators, such as a circularity score, free cash flow yield (FCFY), and ESG risk estimation.
Companies are classified into four distinct categories depending on their role in the transition to a circular economy (“leading the circular transition”, “facilitators”, “suppliers”, “other companies”). Within each category ("Circular Transition", "Facilitators", "Suppliers"), each company is inserted in a group ("Cluster") with a score from 1 to 5 based on the quality of its metrics in terms of circular transition, ESG risk management, and Free Cash Flow Yield estimation.
Some companies may be inserted in more than one category, depending on their characteristics.
Main Risks of the sub-fund
The risk indicator assumes you keep the product for 4 years.
The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as 4 out of 7, which is a medium risk class. This rates the potential losses from future performance at a medium level, and poor market conditions could impact the capacity of Eurizon Capital S.A. to pay you. This fund does not offer any form of capital protection against future negative market conditions and, as a consequence, you may lose part of or the entire amount originally invested. If the fund is not able to pay you out what is due, you may lose your entire investment.
Main costs: (Illustrative class: LU2357530901 – registered in AT, BE, CH, DE, SP, IT, LU, PT, SK): Entry charge: 0%, Exit charge: 0%, Ongoing charge: 0,78%, Performance fee: 0,15%. The performance fee calculation is based on a comparison of the net asset value per unit against the High Water Mark where the High Water Mark is defined as the highest net asset value per unit recorded at the end of the five previous financial years, increased by the year-to-date return of the fund's benchmark. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years.
Management team
Key features:
- High seniority team that has been working together for 10 years
- The team has developed and updated the management model
- The team manages 100 funds/subfunds
- The team manages total AUM in excess of 19 billion euros**
Investment Team subject to change without notice. Useful insights
Notes
* There can be no assurance that the investment objective will be achieved or that there will be a return on capital. The fund does not benefit from any guarantee to protect the capital. Past performance does not predict future performance.
** Data as of: 31/01/2023
This marketing communication is exclusively intended for professional investors as defined in the European Directive on markets in financial instruments (MiFID) in the countries where the Sub-Fund(s) is/are registered/authorised for distribution. This marketing communication is not intended for retail investors as per MiFID and is not intended for US Person. Before taking any investment decision, you must read the Prospectus, the Key Information Document (the “KID”), as well as the Management Regulations and the last available annual or semi-annual financial report. These documents are available in English (and the KIDs in an official language of your country of residence) and may be obtained at any time, free of charge on the Management Company’s website www.eurizoncapital.com. To find out whether the Sub-Fund is registered/authorised in your country, please refer to the www.eurizoncapital.com. This document relates to Eurizon Fund (The “Fund”), a Luxembourg UCITS in accordance with Directive 2009/65/CE and pursuant to the Part I of the Law of 17 December 2010 (the “Law of 2010”) on undertaking for collective investment and “Fonds Commun de Placement” (FCP). This document is issued by Eurizon Capital S.A. organized as a public limited company in accordance with the Law of 1915, registered in the Luxembourg Trade and Companies Register under number B.28536 at 28, boulevard Kockelscheuer, L-1821 Luxembourg and authorised as management company of the Fund under the Luxembourg Law of 17 December 2010 on undertaking for collective investment The content of this document, including any opinions, does not constitute any legal, tax or investment advice. Past performance does not predict future returns. There is no guarantee that the positive forecasts mentioned in this document will be reached in the future. Please liaise with your tax and financial advisor to find out whether a product is suitable to your personal situation and understand the related risks and tax impacts. The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Should the Sub-Fund be registered/authorised in your country, the entity in charge of processing subscription, repurchase and redemption orders and other payments to unit-holders relating to the units of the UCITS (“Order & Paying facilities”), as well the entity in charge of handling information and Fund documents (“Information facilities”). Switzerland: When the Sub-Fund is not registered with the Swiss Financial Market Supervisory Authority (FINMA), this marketing communication is exclusively intended for Swiss Professional investors/Institutional investors as per Article 4(3) and 4(4) of Federal Act on Financial Services (FinSA).When the Sub-Fund is registered with the Swiss Financial Market Supervisory Authority (FINMA), this marketing communication is intended for Swiss Retail investors as per Article 4(2) of the Federal Act on Financial Services (FinSA) or for Swiss Professional investors/Institutional investors as per Article 4(3) and 4(4) of FinSA. Swiss Fund documents available at the Swiss representative agent: 62, rue du Rhône, 1204 Geneva, Switzerland.