QUAERO CAPITAL announces the launch of Quaero Capital Funds (Lux) – Bond Investment Opportunity, a new bond sub-fund of its Luxembourg SICAV Quaero Capital Funds (Lux). The fund invests mainly in the debt markets of OECD member countries in euros, incorporating ESG criteria. The team, comprising Xavier Nicolas, Frédéric Loisel and Philippe Scemama, has been managing a similar strategy since January 2022 in the form of a specialist professional fund under French law. The strategy is now available in Luxembourg UCITS format.
The fund combines an opportunistic approach, unconstrained by a benchmark index, across a broad spectrum of bond assets, with a focus on ESG criteria in security selection. The investment universe is not subject to any geographical or sectoral restrictions and provides access to all bond asset sub-classes such as sovereign bonds, investment grade corporate bonds, and high yield bonds. Each member of the investment team has over 25 years’ experience and aims to generate long-term capital appreciation.
To select eligible securities, the fund managers carry out a financial and extra-financial analysis, using ESG (Environmental, Social and Governance) criteria. The ESG approach applied is based on a strict methodology and includes the assessment of 4 indicators aligned with environmental and societal Sustainable Development Goals. In particular, the fund aims to invest 30% of its assets in green social bonds.
The new fund fits within QUAERO CAPITAL’s long-standing ESG commitment, with involvement in initiatives such as PRI, IIGCC and CDP. The fund is classified in the Article 8 category of the SFDR regulations. The fund has also been awarded the SRI label.
Xavier Nicolas, fund manager of the Bond Investment Opportunity fund says: “The fund is a good illustration of our belief that the cyclical nature of the financial markets is a source of opportunities for fixed-income products, which explains our flexible approach. It is a bond solution that is close to the real economy, thanks to our focus on ESG principles and our commitment to social green bonds, which have a specific sustainability objective. We are proud to be able to offer our clients this window on the real economy and the guarantee of robust, pragmatic investment style.”