CANDRIAM, a global multi-asset manager focused on sustainable and responsible investment, has reported significant growth during a year that was marked by a challenging environment. Assets under management (AUM) reached a record €1401 billion at the end of 2020. This was an increase of €10.1 billion, up from €130 billion in 2019.
AUM growth was mostly driven by increased investor demand for CANDRIAM’s comprehensive range of ESG-related products and strategies, including a broad range of innovative thematic equity strategies. CANDRIAM’s AUM dedicated to these ESG-related products and strategies have now reached €88 billion.
Last year’s growth was underpinned by ongoing outperformance across CANDRIAM’s broad range of products, with more than 50% of rated funds awarded 4 or 5 stars by Morningstar2 at the end of 2020. 60 fund awards were received in the year.
The business also expanded its investment offering in the alternatives and illiquids space. In December 2020, the firm announced a new partnership with European private debt specialist Kartesia, which followed a deal in July to acquire Rothschild & Co Europe’s alternative multi-management unit. In 2018, CANDRIAM purchased a stake in real estate investment manager Tristan Capital Partners.
Naïm Abou-Jaoudé, CEO of CANDRIAM & Chairman of New York Life Investments International, said:
“Despite the pandemic, CANDRIAM proved very resilient in 2020, carefully navigating challenging market conditions. Our performance was strong across all asset classes, which reflects the ongoing relevance of our active management platform to the full investor landscape. Investors were particularly attracted to our market leading sustainable solutions, thematic products and our increasing focus on illiquids and alternatives.
“We have an impressive track record, having doubled our AUM since 2013, of which nearly 63% is now dedicated to ESG strategies. Looking ahead, I remain confident in our ability to respond to evolving investor needs by continuing to provide value added, innovative solutions.
“In what has been a year we will never forget, I would like to thank CANDRIAM’s employees who have worked tirelessly during this unprecedented period, mostly from home. They have shown an unwavering commitment to our vision of providing a superior dedicated service to our clients and a genuine conviction and responsibility in asset management.”
Strong sales underpinned by thematic equities, ESG and robust performance
CANDRIAM’s 2020 annual net sales reached €3.9 billion. Thematic equity strategies proved one of the most popular categories in the year, achieving inflows of €2.5 billion and taking the total AUM across thematic equities to €8.5 billion at the end of 2020. ESG fixed income strategies also saw strong inflows during 2020, notably corporate bonds – high yield in particular – and emerging market debt.
CANDRIAM launched its Equity Impact Oncology strategy in 2019 aimed at investing in listed companies that research and develop products for the treatment of cancer. Two years on the strategy has reached €1.6 billion in AUM. In addition, the Sustainable Equity Climate Action strategy launched 18 months ago has achieved almost €1 billion in AUM.
Continuing to lead on sustainable and responsible investment
CANDRIAM has now developed one of the largest and most innovative ranges of sustainable solutions in Europe to meet growing investor demand.
The business launched several new thematic equity strategies in 2020, including a strategy devoted to the circular economy, which invests in global equities involved in activities that contribute to recycling, replacement, repurpose and rationalisation of products and resources. It also launched its first private equity Impact strategy, which gives investors exposure, via investment funds and co-investments, to companies whose performance is linked to measurable social or environmental factors.
CANDRIAM was awarded an A+ rating by UN Principles for Responsible Investment assessment, and was selected as part of the UN PRI 2020 Leaders Group in recognition of its approach to sustainable investing, and specifically its practices in climate reporting.
CANDRIAM also pursued its ambition to reduce the knowledge gap on sustainable investing by accelerating the development of the CANDRIAM Academy. Launched in 2017, the world's first free-to-access accredited training platform for sustainable investing expanded its geographic footprint to three new countries during 2020, reaching 6,000 members from 30 countries. A new module dedicated to the circular economy was also released last year.
Supporting and developing qualitative academic research on ESG investing is another way to accelerate investors shift to sustainability. In 2020, new academic partnerships were agreed with three leading academic institutions: The London School of Economics’ Grantham Research Institute, UCLouvain, and the Vlerick Business School. More information of each of these collaborations is available on CANDRIAM’s website.
1 As of 31 December 2020. Assets under management (AUM) includes assets which do not fall within the U.S. Securities and Exchange Commission's definition of 'regulatory AUM' in Form ADV, Part 1A
2 © 2021 Morningstar, Inc. All rights reserved. Some of the information contained in this document is the property of Morningstar and/or its information providers. It is given without any guarantee as to its accuracy, exhaustiveness or topicality. Its reproduction or redistribution is strictly forbidden.The quality of the ranking, award or label won by the management company depends on the quality of the issuing institution and the ranking, award or label does not guarantee the future results of the management company.