CPR Invest Social Impact

Human progress
is our Capital

The world's first global equity fund with a portfolio core fully integrating the social dimension
A unique investment solution on the theme of reducing inequalities
A brand new and proprietary methodology to score companies and countries in terms of social inequality

For fund details

In brief

CPR Invest – Social Impact is a global equity fund which selects companies that best contribute to social progress and inequality reduction worldwide. Its investment universe is defined through the evaluation made by CPR AM for each company on the different aspects of human resources and tax policies or ethical practices in relation to its country of origin. ESG & controversies filters complement the definition of the eligible universe.

Its investment objective is to outperform global equity markets over a long-term period (minimum of five years) whilst integrating a sustainable approach with a particular but not exclusive focus on the social dimension.

Rising inequalities, our current situation

26 billionaires owned the same amount of wealth as the poorest 50% of the world’s population, or 3.8 billion people¹. Such figures reveal the explosion of inequality in our era. And these concentrations have not stopped growing since 1980. Over this period, the richest 1% have enjoyed twice as much income growth as the poorest 50% - while middle-class earnings have either stagnated or fallen².

This growing inequality has a major impact on societies everywhere. The demonstrations that have been in the news in recent months, spreading across all five continents, as well as the rise of populism, are reflections of the sense of frustration and the social tension within countries.

Investors, companies... We all have a role to play

Reducing social inequality is first and foremost a political issue and investors cannot replace governments. However, by investing in stocks from listed companies, we can play a part in contributing to the reduction of inequalities.

Indeed, we believe all the major listed companies can widen or narrow social inequalities through their policies. And we, as investors, can influence their practices through disinvestment on one hand and dialogue on the other one.

Define inequalities to better measure them

There is no single definition of inequality as there are different ways of categorizing it. Inequalities are context-specific; they are produced and reproduced through the combination of several factors. This is why we wanted to have an approach both broad to integrate all social issues and pragmatic, to give priority to the availability and quality of data³.

Access to healthcare, education, essential needs such as water or electricity, redistribution of resources, inclusion and the fight against discrimination, freedom of association, corruption, etc. are all factors that influence the reduction or widening of inequalities.

Our investment philosophy? To encourage companies that have the most virtuous social policies and contribute to the reduction of inequalities within their country.

An exhaustive and transparent approach to inequality

Evaluation criteria specific to companies and countries are gathered around 5 pillars: income & labour market, tax policy, health & education, diversity, human rights & basic needs.

For companies, for example, it can be criteria such as remuneration policy, training, safety at work, diversity within the Management Committee, tax controversies, corruption…
For countries, it can be minimum wage, tax progressiveness, education spending, freedom of association, access to drinking water..

In the end, there are 39 criteria: 22 for countries & 17 for companies.

To be part of the investment universe, a company must be among the best companies on average in all aspects linked to inequality and be equal or better in this area than its country's practices. All sectors and countries can be represented.

ESG & controversies filters complement the defined universe⁴.

The final portfolio comprises stocks which, according to the asset manager, offer the best perspectives in equity appreciation among the companies contributing to social progress.

3 050 / 48

Number of companies / countries evalutated by our "inequality" rating

Pillars to analyse companies and countries

Approx. number of stocks in the final portfolio

Points of attention

Risk of capital loss
No performance guarantee
Recommended investment period: more than 5 years
The variance in the share price may have a negative impact on the sub-fund's net asset value

A decrease in the exchange rate may result in a loss in the sub-fund's net asset value
Due to its composition and strategy, the sub-fund may experience high volatility, which may lead to upward or downward fluctuations in the net asset value over short periods
The theme distinguishes itself by its sector choices; when the financial markets are driven by sectors not included in the theme, the sub-fund may not benefit from all the market growth

Risk indicator

At higher risk, At lower risk,

Typically lower reward Typically higher reward

Synthetic Risk and Reward Indicator (SRRI) corresponds to the risk and reward profile as per the KIID and may change over time. The lowest level of risk does not mean « risk free ».

1. Source: Oxfam 2019

2. Source: Report on global inequalities 2018

3. For countries: public data from providers such as the United Nations or the WHO; for companies: financial databases and ESG ratings from the ESG analysis team at Amundi.

4. The Environmental, Social and Governance (ESG) criteria are used to assess the responsibility of companies towards the environment, their employees and through their management structure. These ratings are internal. Controversies are rumours or scandals that have a negative impact on the reputation of the related companies. Controversy indicators are given to CPR AM by two external sources.