TwentyFour Asset Management, the London-based specialist fixed income boutique of Vontobel, has confirmed that it is upgrading one of its funds to Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).
The Luxembourg SICAV fund - Vontobel Fund - TwentyFour Sustainable Short Term Bond Income - has transitioned from Article 8 to Article 9, effective from 26 January, 2024.
The fund’s sustainable investment objective consists of investing in securities of issuers that contribute towards the Paris Agreement’s goal to hold the increase in the global average temperature to below 2°C above pre-industrial levels.
The fund seeks to reward companies for sound ESG practices by applying both positive and negative ESG screening to the investment universe.
Chris Bowie, partner and portfolio manager, TwentyFour Asset Management, said: “This marks the first Article 9 classification of a fund by TwentyFour, as we have taken a deliberately conservative approach under the SDFR guidelines.
"Our fund range has been carefully constructed to provide a true diversity of opportunity to our client base, with each fund analysed according to its specific strategy, rather than imposing a homogenous ‘Article 9 approach’ to fund classifications.
He added: “Our focus has been on continuing to build-out our ESG capabilities and embed them throughout our investment process. We look at ESG risks in the same way we do any other risk to our clients’ investments; but we also recognise that these are some of the biggest risks facing our world today and they will likely have a big impact on long-term returns.”
“The overriding priority, however, remains providing the most relevant investment solutions for our clients, and we will continue to focus on further developing relevant and diversifying products for our clients over the long-term.”