As the space 2.0 economy and the New Space offer unprecedented opportunities with the shift of the market to the private sector, La Financière de l'Echiquier (LFDE) announces the launch of Echiquier Space in Luxembourg. The very first fund in Europe that will invest in companies with activities in Space; operating between Earth and Space; working on the ground developing the space ecosystem; or with universal technologies fuelling the boom in this new conquest of Space.
The launch is effective since 15/06/2021 in Luxembourg for institutional investors (K share).
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.
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
–An ESG analysis 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.
The fund’s portfolio will focus on around 30 stocks, with a market capitalisation of over EUR 1 billion.
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.
Echiquier Space is managed by the international thematic funds team of four people that is headed up by Rolando Grandi, CFA.
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.“
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!”
Press release by La Financière de l’Échiquier
Publié le 18 juin 2021