How can PAI data help identify MiFID-eligible products?
How can NAM help you to build MiFID-eligible portfolios?
In addition to adding metrics to ESG topics that are considered within our ESG analysis, PAI data can be used in the assessment of whether an investment can be considered a Sustainable In- vestment. PAI elements can demonstrate whether an investment 1) carries out an economic activity that contributes to an environmental or social objective, and 2) meets the “Do No Significant Harm” requirement. These are two of the three requirements for Sustainable Investments. One of the advantages of PAI data is that the metrics are clearly defined in the regulation and are therefore comparable across products and across asset managers.
The identification of a product as one that can be sold to clients with sustainability preferences technically rests with the fund distributor or adviser, not with the asset manager. However, the asset manager will need to provide the relevant information to the distributor/adviser to support their assessment of a product’s suitability. At NAMwe continue to develop our processes in order to provide you with robust data. We are particularly working on the way we manage PAI data and Sustainable Investments to ensure that we can offer robust MiFID-eligible products. In our ESG STARS strategies, we are currently monitoring 20 PAI indicators and we have committed that all the solutions in our ESG STARS range, in addition to our Article 9 ESG-themed strategies, will have a certain percentage of their assets in Sustainable Investments. This commitment will be set on a fund-by-fund basis, reflecting differences between the asset classes.
How NAM funds will meet MiFID-eligibility requirements
SFDR Classification + additional criteria
MiFID-eligible? Examples of Nordea funds
Article 9
With sustainable investments
All ESG-themed Article 9 funds
+ Sustainable Investments (%) + PAI elements
Article 8
ESG STARS funds
Article 8
+ PAI elements
“other” Article 8 funds
NAM’s ESG approach has consciously evolved over many years and our award-winning RI team is continuing to develop our ESG systems and processes. We have a proven and robust ESG integration approach and we offer ESG reporting that goes well beyond the regulatory requirements. We are now working to ensure we are well-positioned to support you not only as you select our ESG products, but also as you sell them.
Wondering what to do next?
Take a look at Nordea’s ESG STARS funds, your building blocks to a MiFID-eligible ESG portfolio. Nordea’s ESG STARS solutions span different regions and asset classes. We bring the track record, the scale, and the experience your portfolio needs. Let us be your ESG partner of choice.
Discover more at nordea.lu/ESGBuildingBlocks
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