Case study: Fund seeking to become classified as EU SFDR Article 8

Ogier Sustainable Investment Consulting advised a multi-asset class, actively managed fund seeking to become classified as EU Sustainable Finance Disclosure Regulation (SFDR) Article 8.

Client challenge

A fund aiming to achieve meaningful inflation-beating US dollar returns over the long term from a conservative, but actively managed, multi-asset class portfolio wanted to assess compliance with the EU SFDR Article 6 requirements and to understand the requirements of attaining Article 8.

How we helped

Ogier first conducted a health-check and gap analysis of the managers' compliance with EU SFDR Article 6 at entity-level. This involved reviewing current ESG policies/sustainability risk policy, remuneration policies and principal adverse impact statements, where they were available.

Ogier then supported the client to conduct a health-check of the fund seeking to obtain Article 8 status and ascertained the feasibility of uplifting its status by setting out current gaps and recommendations for improvement.

Post this initial review, Ogier supported the client with full SFDR implementation services, from updating and drafting entity-level disclosures and policies to identifying the funds environmental and social characteristics and associated binding characteristics to achieve the funds stated goal. We conducted materiality assessments of the fund's investment universe, supporting the client to conduct ESG data coverage checks for the fund's positions and developed an internal methodology. Ogier also supported with drafting of pre-contractual, website and periodic disclosures.

Results

The client is now in alignment with EU SFDR requirements at entity and fund level. They have an enhanced internal methodology and process for monitoring and managing ESG issues and have clear and consistent investor reporting in place.