The world today produces nearly 50 gigatons of CO2 per year. This amount is expected to almost double by 2100 if the planet maintains its current rate of emissions. However, if we wish to respect the global warming limits recommended by science at 1.5 ° C by 2100, we would have to completely reverse the trajectory until we bring our greenhouse gas production into negative territory. The challenge is immense and the planet can no longer wait to ensure its survival and those of its inhabitants.
CPR AM, the climate partner for investors
Since 2017, CPR AM has developed expertise on the climate through an exclusive partnership with CDP, a benchmark NGO on the environmental assessment of companies. Our approach is inclusive and aims to encourage all efforts, including those of the largest emitters, as soon as they embark on a process of limiting their emissions. Our role as a responsible asset manager is to finance a just transition to a low carbon economy by supporting companies in their changes. Today, we manage more than one billion assets in line with climate issues, through solutions for the three major asset classes.
Yield and carbon neutrality in the credit universe
Our Climate selection and ESG approach apply to the universe of private sector issues denominated in Euro, all countries, all maturities, in the Investment Grade and BB segment. This diversification thus provides the management team with all the leeway to seek returns regardless of market conditions. Carbon neutrality is achieved through an objective of reducing the portfolio's carbon emissions at all times and through a mechanism for offsetting the remaining emissions.
A DEMANDING CLIMATE INVESTMENT UNIVERSE
Sources: Extra-financial analysis from Amundi, Barclays, CPR AM Research. Past performances are not constant over time and are therefore not a reliable indicator of future performance. Performance simulations are based on realistic market assumptions.
AN INVESTMENT PROCESS COMBINING CLIMATE ISSUES AND PERFORMANCE
The fund's investment objective is to outperform the Bloomberg Barclays Euro-Agg Corporate Index, over a period of 3 years, by selecting international corporate bonds (denominated in Euro).
In order to reduce the universe eligible for the most advanced companies in the fight against climate change, each title passes the triple cumulative filter of CDP, ESG and controversy ratings. This excludes nearly a third of the initial universe while preserving the geographic and sectoral profile. The final eligible universe includes 440 issuers and approximately 2,180 issues.
To build the portfolio, the management team adjusts the risk sliders according to the market environment. It then conducts a top-down fundamental analysis to define its sector allocation. The selection of issuers must pass the filter of bottom-up analysis carried out by the Amundi Group credit analysis team combined with recommendations from CPR AM's credit analysts office. Credit sensitivity can vary between +2 and +8 and interest rate sensitivity between 0 and +8. The final portfolio contains around 200 emissions and must at all times meet the target of reducing the carbon footprint by at least 20% compared to the index.
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Risk of loss of capital.
No guaranteed performance.
Recommended investment horizon: at least 3 years
The selection of investments is not necessarily made up of the best-performing assets available, due to the managers’ expectations.
The fund is exposed mainly to counterparty risks in the event of issuer default.
The fund may exhibit high levels of volatility due to the composition of the portfolio or the applied management techniques, which means that the share values may be subject to major upward and downward fluctuations within a short period of time
