The EU Sustainable Finance Disclosure Regulations
The EU Sustainable Finance Disclosure Regulations (SFDR) came into effect on 10 March 2021. Under the regulations, asset managers are required to classify their investment products according to the level of sustainability, making the sustainability profile of funds easier for investors to understand and compare. SFDR aims to provide greater transparency to investors by addressing how sustainability risks are integrated into the management of a Fund, and identifying the environmental/social characteristics or sustainable investment objectives promoted by a Fund.
The regulations lay out three specific categories of classification:
- Article 9 is suitable for funds that have a sustainable investment objective
- Article 8 is suitable for funds which promote, amongst other characteristics, environmental or social characteristics
- Article 6 is suitable for those products which do not fall into either Article 8 or 9
After careful consideration and analysis of each of the categories, the Fund has been classified as Article 8 under SFDR (promotes environmental characteristics). The Fund’s prospectus has been updated to align with SFDR rules. The website disclosures required by SFDR can be accessed via the links below.