LFDE launches Echiquier Space, the first thematic fund in Europe focused on space and its ecosystem
Why not reaching for the stars? With the “Echiquier Space”, investors can participate in the innovations of private space technology without cutting back on the ESG criteria. We are really happy with our innovative, strong fund partners! LFDE - La Financière de l'Echiquier - launches Echiquier Space (1), the first thematic fund in Europe focused on space and its ecosystem. As the space 2.0 economy and the New Space offer unprecedented opportunities with the shift of the market to the private sector. This is the very first fund in Europe that will invest in companies with activities in Space and in developing the space ecosystem.
The fund is managed by a four-person international thematic equity fund team led by Rolando Grandi, CFA. The fund’s portfolio is composed of around thirty stocks with a market capitalization of more than EUR 1 billion. Echiquier Space covers a key strategic long-term theme that reaches across sectors; it can invest without sector or geographic restrictions in broad swathes of the global economy that have unprecedented potential. The value of the space sector currently represents USD 400 billion and could rise to USD 2.7 trillion by 2045 (2).
Rolando Grandi, CFA, Fund Manager of Echiquier Space: "The space ecosystem is flourishing. We can take full advantage of this revolution, without ever compromising on environmental, social and governance issues. Many space technologies make a contribution to preserving and improving all ecosystems, from managing waste in space to observing the impact of human activity on our planet, or bridging the digital divide. We are committed to prioritising such businesses. We are happy to share this unprecedented adventure with you!"
LFDE will remain faithful to its commitment to responsible investing, paying particular attention to promoting companies whose products or services can contribute to a sustainable space industry. To achieve this, an ESG Charter specifically addressing the challenges of the space sector has been defined based, in particular, on:
- Exclusions based on sectors – in particular, defence and weapons – and normative exclusions
- Controversy management
- An ESG analysis (3) of all stocks to assess their commitment and the means employed to tackle the challenges of : climate change; product lifecycle management and end-of-life treatment; and governance issues (checks and balances, diversity, etc.)
- Support for companies with shared improvement targets
- Calculation of the fund’s carbon footprint, which is held at a level structurally below that of its index; this is the case currently based on LFDE’s initial simulations.
The fund will focus on four proprietary themes:
- Space-based: space operations, satellites and satellite constellations, and other Space assets, e.g.: to optimise the management of air, road and maritime transport or resources; for Earth observation and remote sensing to combat pollution and climate change; for in-Space manufacturing; or to improve Earth-based technologies.
- Earth to Space: Space travel and return to Earth, and communication solutions between these two frontiers
- Earth-based: Earth-based operations such as: satellite production; robotisation and automation processes; the operational management of space ports; companies furthering the development of the space ecosystem with financing, insurance, logistics, etc.; or companies benefiting as users of Space data and capacities thanks to optimised connectivity or precise geopositioning.
- Cross-sector technologies: spatial development activities, from the connectivity to semi-conductors or to 3D printers.
This launch forms part of the LFDE strategy to develop its range, particularly via the rapid expansion of its thematic products, where assets under management are currently close to EUR 2.3 billion.
Bettina Ducat, Managing Director of LFDE: "We are very proud that La Financière de l’Echiquier is the first European asset management company to launch a fund dedicated to space, the final frontier in investment. This launch is a testament to LFDE’s innovative and pioneering approach over the last 30 years. It also consolidates LFDE’s strategy to grow internationally and to develop our range, particularly with thematic funds. The thematic funds team has my full confidence for the launch of this new fund into orbit."
Olivier de Berranger, Deputy CEO and Chief Investment Officer of LFDE: "Echiquier Space highlights LFDE’s ability to identify the major structural trends that will provide the potential for growth in the coming years. Investing in the innovative space economy provides excellent opportunities for both the present and the future. This theme will also contribute to improving the conditions of life on Earth. Today, of the 50 indicators identified by the UNO for monitoring climate change, 26 are provided by satellite imagery. Space and space-related applications are indispensable for tracking climate change and taking immediate action."
(1) The fund (ISIN: FR0014002VF5) was launched on 31 May 2021. The main risks of the fund are the risk of capital loss and the risks associated with equities, exchange rates, discretionary management and sustainability. For more information please visit our website: www.lfde.com.
(2) PwC, Bank of America Merril Lynch, 2020
(3) Environmental, Social and Governance. An ESG analysis is not the same as a selection restriction.
About La Financière de l’Échiquier | www.lfde.com
Created in 1991, La Financière de l’Echiquier (LFDE) is one of France’s leading boutique asset management companies, with over €10billion in assets under management and a team of more than 130 employees. LFDE relies on its conviction-based management know-how to offer its institutional, distributor and private clients the responsible products and solutions they need to enhance their investments. LFDE is a subsidiary of the Primonial group, independent leader in France in the design, management and advice of investment solutions, and is also present in Switzerland, Italy, Germany, Austria, Spain and the Benelux countries. Data as of 30.10.2020
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