21 JUN, 2023
By RankiaPro Europe
The Artemis Funds (Lux) – US Extended Alpha fund will be classified as an Article 8 product under SFDR from the 30th of June 2023, after formally proposing amendments to its investment prospectus.
From the effective date of the amendments, the fund will promote environmental characteristics within the meaning of Article 8 of SFDR. The investment process will now include binding ESG characteristics (such as exclusions and a minimum percentage of sustainable investments).
The fund implements a ‘130/30’ strategy, meaning that it can take short positions in order to generate incremental alpha from the portfolio and improve the risk profile of the fund. The overall objective is to generate strong risk-adjusted returns for investors over the long run.
The investment manager seeks to decrease the fund’s exposure to climate risk and benefit from the opportunities associated with the transition to a net-zero emissions economy by investing in companies that are actively managing their carbon exposure and setting meaningful targets. The fund also implements exclusions, including tobacco production, controversial weapons, thermal coal and companies that are deemed to be in breach of the UN Global Compact.
The Fund invests principally in equities and equity-related derivatives of companies that are listed, headquartered or operate primarily in the USA.
“ESG considerations are becoming increasingly prominent company drivers to fundamentals, and we therefore consider these within our holistic research process. We believe ESG issues can be an important positive or negative factor in the future share price of a company, and, when deemed material, these factors may be a key factor in our long or short investment thesis. We believe that Article 8 designation for the fund reflects the ESG materiality assessment and engagement that already underpins our research process, and we felt it important to commit to formalising these factors as binding elements of the fund”.Adrian Brass, Portfolio manager.
The changes to the Prospectus will become effective on the 30th June 2023.
Further information is contained in a methodology statement available on the Artemis website at www.artemisfunds.com/methodology-statement.