10 March 2021 marks the entry into force of the Disclosure Regulation (Sustainable Finance Disclosure Regulation - SFDR). This regulation, which applies to the marketing of funds in the European Union, lays down the obligations in terms of the publication of information on sustainability in the financial sector in order to provide greater transparency and a basis of comparison for end-investors.
In light of these new regulations, La Française AM, a La Française Group asset management company, offers an extensive product range of sustainable open-ended funds. At the end of January, 76% of open-ended funds currently marketed met sustainable criteria. As of 10 March, La Française AM will have made further progress with:
- 87% of assets (according to assets under management as at 28/02/2021) aligned with "Articles 8 or 9", according to the Disclosure Regulation.
“Article 9" products have defined and quantifiable objectives in terms of ESG (Environmental, Social and Governance) risks. These are products with a social or environmental objective, that meet the definition of sustainable investments. For their part, “Article 8” products do not have a specific ESG objective but take ESG criteria into consideration when constructing their portfolios.
From 10 March 2021, La Française AM investors will have access to better communication on sustainability, as required by the Disclosure Regulation. This additional information will give clients, whether private or institutional, key reference indicators regarding the sustainability of each investment fund.
La Française AM has set itself the objective of marketing a range of 100% sustainable open-ended funds by the end of 2022. Building upon this first step, the La Française AM is continuing the process of transforming its funds in order to achieve this objective.
Glossary:
Regulation (EU) no. 2019/2088 SFDR/Disclosure
- Objectives-> Establish standardised transparency rules for financial market stakeholders in terms of sustainability.
- All funds must comply with Article 6 which aims to provide transparency in the integration of sustainability risks
- Fund classification option:
> All discretionary management funds or mandates "where a financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices". (Article 8)
> All discretionary management funds or mandates "where a financial product has sustainable investment as its objective”. (Article 9)
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