The quality approach of La Française Sub Debt reinforced by French SRI Label
La Française AM is pleased to announce that its flagship subordinated debt fund La Française Sub Debt – with close to €1 billion in assets under management* – has obtained the prestigious SRI (Socially Responsible Investment) Label, backed by French public authorities and awarded by EY France, a certification organisation approved by French accreditation body COFRAC.
La Française Sub Debt is a diversified portfolio comprising approximately 130 subordinated debt securities with an average Investment Grade issuer rating of A- (Source: La Française, as of 26/02/2021), co-managed by Paul Gurzal, Head of Credit, and Jérémie Boudinet, Credit Portfolio Manager.
The Fund, which falls within the scope of Article 8 of the Sustainable Finance Disclosure Regulation - SFDR, aims to achieve an annualised performance of more than 7% over a recommended investment horizon of more than 10 years through exposure, in particular, to subordinated debt securities with a specific risk profile different from that of conventional bonds and to do so by investing in a portfolio of issuers screened in advance according to Environmental, Social and Governance (ESG) criteria.
The Fund's management approach has remained unchanged since its inception in 2008 and is based on three fundamentals: liquidity, diversification and quality. Security selection now includes an in-depth extra-financial analysis, carried out by La Française Sustainable Investment Research (the Group's ESG research centre) based on a proprietary model. In consultation with the management team and thanks to a continuous dialogue, the ESG criteria of public and private issuers in the European Union, Switzerland, United Kingdom and Norway contribute to enrich the credit analysis and the selection of issuers. The Fund's historical management strategy remains unchanged, as it is aligned with the ESG selectivity approach implemented since 10 March 2021.
Jean-Luc Hivert, President and Global Head of Investments, La Française AM, commented, "La Française has been fully committed to sustainable investment since 2008. We believe finance will play a role in this transition, and our strategy is thus to market a range of 100% sustainable open-ended funds by the end of 2022. Obtaining the label for La Française Sub Debt was essential for us and natural for an asset class that is certainly very specific but perfectly reflects La Française AM's long-standing, top-notch expertise in the bond market. This is a new step forward in our commitment to sustainable finance. La Française AM now has 7 labelled funds (equities, credit and money market), underlining our leading position in sustainable strategies, particularly low-carbon strategies, developed in equities, credit and government bonds. We are currently implementing our sustainable strategy across all our asset classes to offer a sustainable multi-asset range."
*as at 26 February 2021
|
Asset class |
Fund and Units |
ISIN code |
Horizon |
Risk profile and return on a scale from 1 to 7 where 7 corresponds to a higher risk and a potentially higher return |
|
Bonds and other debt securities denominated in euros |
La Française Sub Debt |
Unit C FR0010674978 |
Over 10 years |
5 (Associated risks: Risk of capital loss, interest rate risk, credit risk, risk arising from techniques such as derivatives, counterparty risk, risk associated with holding convertible bonds, risk related to contingent convertibles, equity market risk, potential risk of a conflict of interests, legal risk) |
The French Financial Markets Authority reminds prospective investors that the annualised performance target in excess of 7% stated in the 'Management objective' section is based on the realisation of market assumptions set by the management company and it is not a guarantee of Fund return or performance.
About La Française
Environmental and societal challenges are opportunities to reconsider the future. Future growth and performance will be built around newly identified leverage. The La Française management group’s forward-looking investment strategy is built upon this conviction and mission.
Organised around two business lines, "Financial Assets" and "Real Estate Assets", La Française has developed a multi-boutique model to serve institutional and heritage clients in France and abroad.
At La Française, we are aware of the significance of the profound changes occurring in our increasingly digital and connected world. Consequently, we have created an innovation platform which brings together the new activities identified as key businesses of tomorrow.
La Française has 53 billion euros in assets under management, with operations in Paris, Frankfurt, Hamburg, London, Luxembourg, Madrid, Milan, Hong Kong and Seoul (as at 31/12/2020).
La Française is a subsidiary of Caisse Fédérale du Crédit Mutuel Nord Europe (CMNE). Crédit Mutuel Group, Standard & Poor's credit rating (04/2020): Long term: A, negative outlook/ Short term: A-1.
Press contacts:
La Française
Pascale Cheynet +33 1 43 12 64 25 | pcheynet@la-francaise.com
Caroline Babouillard: + 33 1 44 56 10 27 | scbabouillard@la-francaise.com
Debbie Marty: + 33 1 44 56 42 24 | debmarty@la-francaise.com
Disclaimer:
The SRI Label does not guarantee the Fund's performance.
The SRI label distinguishes those funds that reconcile economic performance and social and environmental impact by financing companies contributing to a sustainable development in all business sectors. www.labelisr.fr
PROMOTIONAL DOCUMENT. THIS DOCUMENT IS INTENDED FOR PROFESSIONAL INVESTORS AS DEFINED BY MIFID II.
La Française Sub Debt is available only to professional investors as defined below. Execution services shall only be provided to professional investors. Non-professional clients (negative target market) are excluded.
Professional investors have the following characteristics:
- sound knowledge of financial products and transactions:
- experience in the financial industry.
This Fund is not accessible for non-professional investors, unless they obtain professional investment advice AND investment in the strategy is solely for the purpose of diversification or a mandate has been signed.
The information contained herein in no way constitutes an offer or solicitation to invest, nor does it constitute investment advice or a recommendation on specific investments. The value of investments and income may fluctuate (this may in part be the result of fluctuations in exchange rates), and investors may not get back the full amount of capital invested. The information, opinions and figures are considered to be well-founded or accurate on the date of their establishment. Prospective subscribers are urged to carefully and independently review the legal and business documentation, including the latest prospectus (which should be read prior to investing), Key Investor Information Document (KIID) and the annual and semi-annual reports, particularly with regards to the risks involved, and to seek appropriate professional advice where applicable (including regulatory and tax aspects) in order to determine the ability of the product to achieve predefined investment objectives. Published by La Française AM Finance Services, with registered office at 128, boulevard Raspail, 75006 Paris, France, regulated by ACPR (“Autorité de contrôle prudentiel et de résolution”) as an investment services provider under no. 18673. La Française Asset Management is a management company approved by the AMF under number GP97076 on 1 July 1997.
Websites of the supervisory authorities: Autorité de Contrôle Prudentiel et de Résolution (ACPR) www.acpr.banque-france.fr, Financial Markets Authority (AMF) www.amf-france.org
The prospectus of La Française Sub Debt (mutual fund under French law) was approved by the French Financial Markets Authority on 20/11/2009
The group's Responsible Investment Policy is available here: https://www.la-francaise.com/fileadmin/docs/CharteInvestissementDurableLaFrancaiseFR.pdf
The group's transparency code is available at:
In relation to the investment strategy mentioned in this document, the latest prospectus, the KIID and the annual and semi-annual reports (whose latest versions are available free of charge on www.la-francaise.com or from our local paying agents (see below) have been published containing all the necessary information about the product, the costs and the risks which may occur.
- Austria: Erste Bank der oesterreichischen Sparkassen AG, Graben 21, 1010 Vienna Austria
- Spain: Agent, Allfunds Bank SA, Calle de Los Padres Dominicos, 7 28050 Madrid Spain
- Germany: BNP PARIBAS Securities Services S.A. – Zweigniederlassung Frankfurt am Main, Europa-Allee 12, 60327 Frankfurt am Main
- Italy: BNP PARIBAS Securities Services, Via Ansperto no. 5 20123 Milan, Italy
In relation to the investment strategy mentioned in this document, the latest prospectus, the KIID and the annual and semi-annual reports (whose latest versions are available free of charge on www.la-francaise.com or from our local paying agents (see below) have been published containing all the necessary information about the product, the costs and the risks which may occur.
Experts
Paul GURZAL
Co Head of Fixed Income, Crédit Mutuel Asset Management
Paul Gurzal, Co Head of Fixed Income, responsible for specialized bonds and Head of Quantitative Investment at Crédit Mutuel Asset Management. Paul has 23 years of experience in the ass
Jérémie BOUDINET
Head of Financial and Subordinated Debt, Crédit Mutuel Asset Management
Jérémie Boudinet, Head of Financial and Subordinated Debt at Crédit Mutuel Asset Management. Jérémie has fourteen years of experience in asset management. He began his career in 2010 w
About La Française Group
La Française, the asset management division of the first benefit corporation bank, Crédit Mutuel Alliance Fédérale, offers conviction-based investment strategies across all asset classes, combining performance targets and sustainability objectives. As a multi-specialist asset manager, its teams focus on their core expertise while integrating advanced ESG principles into their analyses and investment processes. La Française operates across listed and unlisted markets, including real estate. With over €160 billion in assets under management*, 1,000 professionals and a presence in 10 countries, La Française designs innovative investment solutions tailored to clients’ objectives and investment horizons.
* 30/06/2025