The Sturdza Family Fund comes of age and receives performance and ESG recognition from Morningstar

The Sturdza Family Fund (the ”Fund”) was launched in December 2018 to capitalise on Eric Sturdza’s long-term approach to investing, with a focus on high growth and stable companies, whilst seeking to reduce volatility through a diversified flexible allocation portfolio. The Fund’s creation was an important vector in the Sturdza Family’s own wealth management strategy and remains a key component.

Fund Commentary
14 Jan 2022

The Sturdza Family Fund (the ”Fund”) was launched in December 2018 to capitalise on Eric Sturdza’s long-term approach to investing, with a focus on high growth and stable companies, whilst seeking to reduce volatility through a diversified flexible allocation portfolio. The Fund’s creation was an important vector in the Sturdza Family’s own wealth management strategy and remains a key component.

The Fund is managed by a team of six experienced and complementary managers: Eric Vanraes, Pascal Perrone, David Haynal, Marc Craquelin, led by Eric and Constantin Sturdza. Further details regarding the team, their respective experience and responsibilities towards the Fund can be viewed in the Portfolio Managers section of this website.

The Fund came of age at the end of last year, having reached its third anniversary, and has arguably performed in line with expectations, delivering strong returns (42.25% for the B share class and 49.50% for the SI share class since December 2018), whilst offering protection during periods of volatility in the market compared to the Fund’s Benchmark and Morningstar defined peer group (EAA Fund USD Flexible Allocation).

Morningstar 4 Star Rated FundWith the Fund reaching its 3rd anniversary it became eligible for a Morningstar Star Rating, which is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors1. We are delighted to advise that having reached this milestone in the Fund’s evolution, Morningstar has evaluated the Fund’s risk / reward profile and awarded it a 5-Star Rating for the SI class and a 4-Star Rating for the A and B share classes.

Commenting on this recognition Constantin Sturdza, co-Portfolio Manager of the Fund said:

Constantin Sturdza

Constantin Sturdza

“First and foremost, we would like to thank our clients for their trust, and our entire team for their unrelenting work towards making this fund a success. These past three years have been rocked by powerful and sometimes unpredictable events, and I am proud that our strategy, based on long-term principles of value creation, has so far delivered on its ambitions. Going forward, we look to continuously enhance our approach and adapt to an evolving investing landscape, in order to serve our clients in a unique way – and by so doing, maintaining a total alignment of interest as cornerstone investors ourselves”.

The investment objective of the Fund is to achieve capital appreciation over the long-term by investing primarily in equities, but also fixed income and derivatives on a global basis. ESG considerations are fully embedded within the team’s investment process, with the Fund classified as Article 8 under the SFDR. With this in mind, Eric Sturdza Investments has established a Responsible Investment (RI) policy2 which has the following pillars:

  • The portfolio management teams we work with have integrated ESG considerations into their investment process.
  • We focus on investments in companies that have fully adopted, or those that are actively transitioning, their business models / processes to more sustainable approaches; whilst discouraging investments in companies that are falling short in this regard.
  • Directly support charitable and social initiatives that address such considerations.

To help us achieve this, we have developed a two-step RI approach:

  • Established an exclusion list of industries that are prohibited for investment; and
  • Provided our portfolio management teams with access to high-quality ESG research and data to ensure that ESG considerations are integrated into their investment processes.

morningstar-sustainability-logo-5-globesx1Thanks to the effort of the team to fully integrate ESG considerations into their investment process, the Fund has received further recognition from Morningstar, awarding it a 5 Globe Sustainability rating4, putting the Fund in the top 10% of all Funds within its peer group3.

The Morningstar® Sustainability RatingTM is intended to measure how well the underlying portfolio holdings are managing their financially material environmental, social and governance, or ESG, risks relative to the fund’s Morningstar Global Category peers.

Andy Fish

Andy Fish

Andy Fish, Managing Director of Eric Sturdza Investments stated the following in relation to the Fund’s achievements:

“We aim to align our capabilities with the needs of investors today and in the future, providing access to the best investment ideas, within a framework that seeks to achieve better environmental, social and governance outcomes. Our overarching mission is to deliver long-term performance and value to our clients, recognising that “value” today encapsulates more than pure economic returns. We are therefore proud of the Fund’s achievements and are delighted by the independent recognition it has received against 2 of our key metrics for success, strong performance and ESG integration.”

As always, we invite investors and prospective investors, to contact us should you wish to receive any additional information regarding the Sturdza Family Fund.

Adam Turberville

Adam Turberville

Adam Turberville
Director
+44 1481 742380
a.turberville@ericsturdza.com

 

 

 

 

1 Source of Rating: Morningstar. Rating provided for the defined share class. A high rating alone is an insufficient basis for an investment decision. Past performance is neither a guarantee nor a reliable indicator of future results. Returns could be reduced, or losses incurred, due to currency fluctuations. Please refer to the methodology of calculation for more information.

2 https://ericsturdza.com/about-us/environmental-social-governance-esg/

3 Morningstar Sustainability Rating breakpoints; 5 High (highest 10%), 4 Above Average (next 22.5%), 3 Average (next 35%), 2 Below Average (next 22.5%) and 1 Low (lowest 10%)

 4 Source & Disclaimer of Awards: © 2021 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For more information please press here. The Sturdza Family Fund B USD Class received a 5 Globe Morningstar Sustainability Award as of 31/10/2021, out of 2,890 Flexible Allocation funds as of 31/10/2021, based on 100.00% of AUM. Historical Sustainability Score as of 30/09/2021. Sustainalytics provides company-level analysis used in the calculation of Morningstar’s Historical Sustainability Score. Data is based on long positions only. A high rating alone in an insufficient basis for an investment decision. Past performance is neither a guarantee nor a reliable indicator of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.

General Disclaimer; Performance figures do not take into account commissions, costs incurred on the issue and redemption, nor local taxes. Please note that performance figures, reference benchmarks and asset allocation are provided for information purposes only.

Copyright Morgan Stanley Capital International, Inc. 2021. All Rights Reserved. Unpublished. PROPRIETARY TO MORGAN STANLEY CAPITAL INTERNATIONAL INC. The blended returns are calculated by E.I. Sturdza Strategic Management Limited using end of day index level values licensed from MSCI (“MSCI Data”). For the avoidance of doubt, MSCI is not the benchmark “administrator” for, or a “contributor”, “submitter” or “supervised contributor” to, the blended returns and the MSCI Data is not considered a “contribution” or “submission” in relation to the blended returns, as those terms may be defined in any rules, laws, regulations, legislation or international standards. MSCI data is provided “AS IS” without warranty or liability and no copying or distribution in permitted. MSCI does not make any representation regarding the advisability of any investment or strategy and does not sponsor, promote, issue, sell or otherwise recommend or endorse any investment strategy, including any financial products or strategies based on, tracking or otherwise utilising and MSCI Data, models, analytics or other materials or information. Bloomberg® and Bloomberg US Aggregate Gov/Credit Total Return Value Unhedged USD are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by E.I. Sturdza Strategic Management Limited (EISSML). Bloomberg is not affiliated with EISSML, and Bloomberg does not approve, endorse, review, or recommend the Sturdza Family Fund. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Sturdza Family Fund.

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