“A large universe” of green, social and sustainable bond funds could be classified as Article 9 funds, despite currently being classified as Article 8, according to a report from MainStreet Partners.
"The increased regulatory focus has led, rightly so, to asset managers being cautious in how they present their own ESG credentials," the fourth quarter trends report stated. MainStreet Partners said one of the main challenges for Article 9 funds is that a manager must explain how a fund follows its sustainability profile. The report found that funds that are confident in their sustainability profile would benefit from flows. Figures up until November 2022 showed a decrease in flows of €700m. However, the report also stated there were "signs of encouragement" in the third quarter,...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
