Lombard Odier IM downgrades nine funds to Article 8

Lombard Odier Investment Management has reclassified nine Article 9 funds to Article 8, continuing a trend of asset managers downgrading their sustainable funds.

A spokesperson said that the firm has adopted "a conservative approach" to the interpretation of sustainable investment under SFDR, after the regulator "made it clear" that Article 9 funds to be fully composed of sustainable investments.

This approach "may prevent the inclusion of more neutrally-positioned investments essential for diversification, or some investments that may make a positive contribution but that may still be in transition", the firm added.

Lombard Odier targets carbon markets with new fund

The change will have no impact on the strategies and the outcomes targeted. 

The full list of downgraded funds from Lombard Odier is as follows:

• TargetNetZero Euro IG Corporates fund
• TargetNetZero Global IG Corporates fund
• TargetNetZero Global Equity fund
• TargetNetZero Europe Equity fund
• TargetNetZero Global Convertible Bond fund
• Climate Transition fund
• New Food Systems fund
• Natural Capital strategy
• Plastic Circularity strategy

"We continue to adopt a science-based, forward looking sustainable investment approach for clients," they said. 

"We focus on identifying companies that will provide the sustainability solutions needed within and across sectors, and those companies that can deliver on a Circular, Lean, Inclusive and Clean economy."