The Great Reclassification: How SFDR Is Changing Funds

Over the past three months, asset managers have continued to enhance existing strategies, reclassify funds, and launch new ones meeting Article 8 or Article 9 requirements

Hortense Bioy, CFA 15 November, 2021 | 12:44AM
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Pencils of a variety of colours

It's been eight months since the European Union (EU) set phase one of its Sustainable Finance Disclosure Regulation (SFDR) in motion requiring asset management firms to classify their funds into one of three categories, Article 6, Article 8, or Article 9, based on the products' sustainability objective.

We previously reported in SFDR: The First 20 Days and SFDR: Four Months On that asset managers have taken different interpretations of Article 8 and Article 9 definitions, with some opting for a softer approach than others. This has resulted in an unexpectedly high number and broad range of products classified as Article 8 (light green) and Article 9 (dark green).

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
JPM US Sustainable Equity C Acc USD103.20 USD-1.39

About Author

Hortense Bioy, CFA

Hortense Bioy, CFA  is global head of sustainability research at Morningstar