UK-based investment company abrdn announced today the transition of three SICAV funds, including its flagship Asia Pacific Equity Fund, to sustainable investment products classified as Article 8 (products promoting environmental or social characteristics) under the Sustainable Finance Disclosure Regulation.
The company’s $2 billion AUM Asia Pacific Equity Fund will be renamed as Asia Pacific Sustainable Equity Fund. In addition, the North American Smaller Companies Fund and the Global Innovation Equity Fund will also be converted in August. Earlier this year, abrdn converted 24 SICAV equity and fixed income funds to Article 8 under SFDR.
Pruksa Iamthongthong, Senior Investment Director, abrdn, said:
“The conversion of our Asia Pacific Sustainable Equity Fund positions us well to capture these opportunities and help investors play an active role in mobilising capital towards building a greener Asia.”
According to abrdn, the fund transitions continue the enhancement the firm’s Sustainable Investment process, which already tilts towards ESG through climate targets and exclusion criteirs. The updated framework includes expanding the screening process and removing poorly rated ESG firms from the investment universe, and including lower carbon intensity and specific ESG targets for each fund.
Devan Kaloo, Global Head of Public Markets, abrdn, said:
“The APAC fund conversion builds on abrdn’s long-standing heritage with over 30 years of ESG investing in Asia. The Fund is well placed for the huge opportunity arising from a pivotal period of change in Asia, which is undergoing an unprecedented energy transition and a switch to sustainable development.”