Vietnamese fund manager Dragon Capital Group has had an equity fund reclassified as Article 8 under the EU’s Sustainable Financial Disclosure Regulations (SFDR).
Its Vietnam Equity Ucits Fund (VEF) is 10 years old and has 90% of its investments meeting environmental and social criteria. The firm uses exclusions, ESG integration and a positive tilt, as well as relying on engagement activities, to justify its ESG credentials.
“Article 8 classification provides important verification that VEF is committed to robust environmental, social and governance objectives,” said portfolio manager Quynh Le Yen.
During the past year VEF has engaged with investee companies and stakeholders on issues ranging from human capital, remuneration, biodiversity and carbon emissions.
Dragon Capital Group made its first ESG policy in 2002, and has been carbon neutral since 2005 and a UN PRI signatory since 2013.
VEF has returned 178.2% since inception compared with 149.4% from its benchmark, the Vietnam Stock Index.