Robeco Exposes Hidden Client Risk at Edge of ESG Fund Market (2)

A hole is growing in Europe’s fund management industry that’s left clients in a major product area with little insight into what they’re getting.

At issue are disclosure rules intended to ensure end-investors get what they want. In the European Union, fund managers marketing the highest environmental, social and governance fund category, known as Article 9, face the most onerous disclosure requirements. The bar is lower for the next ESG class down, known as Article 8. But for Article 6, a category that doesn’t qualify as ESG though fund managers have to screen for ESG risk, far fewer disclosure requirements ...