MainStreet Partners: More sustainable bond funds could be Article 9

Asset managers being cautious

clock • 2 min read

“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,...

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