SFDR requires firms to classify all their in-scope products and managed accounts.As mentioned in our introduction, although a disclosure regime, the regulation effectively establishes three product classifications, based on whether the disclosure obligations set out in Articles 6, 8, or 9 apply.
While we do have funds that are classified as Article 6, below we have specifically detailed our Article 8 and Article 9 funds which are available for investment.
What is SFDR? Why is it important?
SFDR is part of the European Union’s Sustainable Finance Action Plan. It introduces mandatory sustainability disclosures which will help to increase the amount of sustainability related information available to investors. Such transparency will enable investors to make greater comparisons between ‘green’ products and will help to bring standardisation to the industry. Investors have found the lack of agreed definitions or concepts of what is ‘green’ a challenge and it is hoped that SFDR will enable investors to make more informed decisions which will in turn increase investment into sustainable activities.
Who does SFDR apply to?
SFDR applies to “financial market participants” including alternative investment fund managers, management companies, and MIFID investment firms, amongst others, which offer products to investors in the EU.
Where can I find further information about MAM's Article 8 and Article 9 Funds?
MAM offers financial products across all three classifications, including a range of Article 8 and Article 9 funds.
SFDR product disclosures are available on the website for the relevant fund. High level disclosures can be found in the prospectus of the relevant fund, with more detailed website disclosures available for financial products which are classified as Article 8 or Article 9. Disclosures for a particular fund can be found within the ‘Information’ tab under the heading ‘Sustainability-related disclosures’.
What are the Ten Principles of the UN Global Compact?
Corporate sustainability starts with a company’s value system and a principles-based approach to doing business. In doing so firms need to operate in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment, and anti-corruption. Responsible businesses enact the same values and principles wherever they have a presence and know that good practices in one area do not offset harm in another. The Ten Principles of the United Nations Global Compact primarily cover human rights, labour, environment, and anti-corruption.
What are the UN SDGs?
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet.
Core to this is the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries. They recognize that ending poverty and other deprivations must go together with strategies that improve health and education, reduce inequality, and spur economic growth — all while tackling climate change and working to preserve the world’s oceans and forests. Examples of the SDGs include Climate Action, Affordable and Clean Energy, No Poverty, Gender Equality and Decent Work, and Economic Growth. Details of all 17 SDGs can be found online at the UN’s dedicated site.
How can I find out what classification my fund is?
If you need assistance with determining the classification of a particular financial product, please reach out to us using the contact details listed below.
Will you be making disclosures regarding the alignment of portfolios to the EU Taxonomy?
Yes. The EU Taxonomy is a classification system for determining whether economic activities are environmentally sustainable. MAM is required to make disclosures regarding the Taxonomy alignment of its portfolios and was compliant with the 1 January 2022 deadline for all in-scope products.
What is greenwashing?
Greenwashing is the process of conveying a false impression or providing misleading information about how a company’s products are more environmentally sound. Greenwashing is considered an unsubstantiated claim to present the view that a company’s products are environmentally friendly. SFDR aims to prevent greenwashing by increasing transparency about the sustainability of financial products through detailed disclosures.
