The locally licensed, Merill SICAV plc has just been given approval by the Malta Financial Services Authority for its sub-funds to be classified as Article 8. This is the first SICAV in Malta to have all four sub-funds licensed as Article 8 that considers all principal adverse impacts on sustainability factors within its investment decision process.
As sustainability takes centre stage in the global investment landscape, Article 8 Funds are becoming a vital instrument for both investors and society. These funds, categorised under the European Union’s Sustainable Finance Disclosure Regulation (SFDR), actively promote environmental or social characteristics. This regulation aligns with the United Nations sustainable development goals while balancing profitability.
As of the 21st of November 2024, all sub-funds of the Merill SICAV plc, namely the Merill Total Return Income Fund, the Merill High Income Fund, the Merill Strategic Balanced Fund, and the Merill Global Equity Income Fund have been converted to Article 8 funds. The Merill SICAV plc assets under management have now surpassed the €165 million mark.
From an investor perspective, being invested in an Article 8 fund offers a dual benefit, as the fund not only seeks to generate financial returns, but also commits to sustainability. The Merill funds will now offer additional transparency, as these regulations require clear documentation of their environmental or social focus and how such objectives are achieved, as more investors are demanding accountability.
The global impact of Article 8 funds extends far beyond the financial aspect. These funds focus on supporting companies and projects that care about the environment, fairness, and good business practices. By doing this, they help tackle big problems like climate change, limited resources, and inequality. They also push businesses to be more eco-friendly and treat people more fairly.
Dr Mark Azzopardi, Merill SICAV plc Investment Committee Chairman and Director at Jesmond Mizzi Financial Advisors, the fund managers of Merill commented that, “establishing the funds as Article 8, marks a big commitment by the Merill Funds, as the funds will aim to balance financial growth, the promotion of climate change mitigation and also seeking to avoid investments in certain activities with the potential to cause harm to human health and wellbeing. By choosing these funds, investors are not just building their own financial future, but they are also helping create a greener and fairer world for everyone.”