No SFDR Article 9 in Italy’s insurance-based investment products
Italy’s Insurance Regulator IVASS has recently conducted a study into the country’s unit-linked policies and other insurance-based investment products which was aimed at intercepting possible cases of greenwashing in the industry.
The study has assessed sustainability claims of over 100 domestic policies, related to over 1 million contracts and approximately €50bn of insurance premia. You can read the full report here.
While the IVASS analysis did not reveal any obvious cases of greenwashing, it also highlighted the substantial absence in the domestic insurance market of so-called “dark green” products, i.e.policies that include sustainable investments as an objective of the investment policy (Article 9 products as per the EU’s SFDR).
About 92% of products are instead classified as “light green”, that is Art. 8 products that promote, among others, environmental or social characteristics in investment policies, while the remaining 8% are not even “light green” but just Article 6 products which only include sustainability risks in investment choices.
Interestingly, the study has perceived a degree of caution by asset managers when classifying the products as as as “light green“, “dark green” or Article 6, reflecting the possibility of “bleach-washing” (that is, when asset managers prefer not to define a financial product as more or less sustainable in order to reduce disclosure obligations and avoid legal risks).
Niche Asset Management manages two Article 9 SFDR funds, which as well as being 100% sustainable are also thematic, global and managed with a deep value investment approach: the Electric Mobility Value Niche, a high-growth theme fund, trading at deep-value multiples and managed by the team that in 2015 launched the world’s 1st electric mobility fund ever; and NEF Global Ethical Trends, a global ex China fund with about 275 stocks spread across 27 thematic portfolios functional to the achievement of the United Nations’ Sustainable Development Goals.
Our deep value approach, which guarantees extremely low turnover, enables continuous engagement between Niche AM and the management of companies in the portfolio, thus allowing careful monitoring of corporate sustainability policies.
We do not do purely formal screening-offs or tick-the-box analyses. No green-washing, and certainly no bleach-washing.
For details on both funds see here.
This is a marketing communication for institutional investors. Please refer to Fund Prospectuses & KIDs before making any investment decision.
For any questions email us on: info@nicheam.com
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