Nuveen gives real estate fund SFDR revamp

Nuveen, real estate, fund, SFDRNuveen has overhauled a real estate fund to meet stricter green investing rules and bring it in line with the EU rules on sustainability.

The $1.1 trillion asset manager has rebranded its $18 million Global Real Estate Securities fund as the Global Real Estate Carbon Reduction fund, which allows for classification as an Article 9 strategy under the Sustainable Finance Disclosure Regulation.

With a new investment objective, the fund will invest in real estate companies that have either achieved carbon neutrality, have a target to cut emissions or have a track record of reducing greenhouse gas emissions in line with the Paris Agreement.

The refocused Nuveen fund will continue to be managed by its four fund managers: Jay Rosenberg, Scott Sedlak, Benjamin Kerl and Jagdeep Ghuman.

In a recent study by the European Securities and Markets Authority, it was found that only 26 funds out of 3,000 tested had a portfolio that was ‘green’ enough for them to qualify for the EU’s proposed Ecolabel for Retail Financial Products, which is being designed in a bid to help retail clients identify sustainable funds.

In November, BlackRock downgraded its entire Article 9 ETF line-up to Article 8 on the back of EU regulatory changes.

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