31 October 2023
Alcentra European Loan Fund – Converted to Disclosure under Article 8 of EU SFDR
Alcentra has announced that its Alcentra Fund S.C.A. SICAV-SIF - Alcentra European Loan Fund (“The Fund”) has been converted to disclosure under Article 8 of EU SFDR, highlighting the firm’s continued commitment to responsible investing and stewardship. The classification of the European Loan Fund marks Alcentra’s second Article 8 fund, building on the firm’s core objective of achieving attractive, long-term returns by investing in sustainably managed companies.
The Fund promotes (i) climate change mitigation by engaging with and increasing the awareness of greenhouse gas emissions and circular economy practices (the "Environmental Characteristics”) and (ii) human rights, equality and non-discrimination at work by assessing human rights, workplace equality, and workplace diversity (the “Social Characteristics” and together with the Environmental Characteristics the “E/S Characteristics”).
The Fund will continue to align with Alcentra’s Responsible Investment Policy, with no change in its existing ESG integration strategy through its pre-investment (ESG exclusions, ESG due diligence and ESG scores) and post investment (active stewardship) phases. The Fund will continue using the ESG integration strategy to meet the E/S characteristics promoted. The Fund aims for a minimum 70% of its investments to be aligned with E/S characteristics.
Daire Wheeler, Portfolio Manager & Head of European Liquid Credit, said “We believe that asset managers play a critical role in helping to resolve some of the most fundamental challenges facing the world. In this spirit, we are pleased to announce the classification of our second Article 8 fund, which not only demonstrates our commitment to ESG stewardship, but also highlights our long-established credentials in the field of sustainability.”
Ross Curran, Portfolio Manager European Liquid Credit and Head of Responsible Investing said, “SFDR represents a positive step in investment managers’ journey to encourage capital towards sustainable growth. At Alcentra, we have taken great strides in integrating ESG into our investment decision making. Our ability to manage downside risk depends on the thorough consideration of potential ESG risks alongside traditional financial analysis. We are pleased to be promoting this long-established process through our Article 8 classified European Loan Fund.”
Vai Patel, Head of ESG said, “Our ESG process, which underpins how the Fund aims to promote environmental and social characteristics, has been integrated into our responsible investment approach for several years now. As part of the Article 8 classification, those ESG processes will be supported by more detailed disclosure on how the Fund embeds sustainability in its investment decisions to achieve the best possible risk-adjusted returns for its clients.”
Founded in 2002, Alcentra is a leading expert in credit management, private credit and structured credit strategies, and one of the largest European credit and private debt managers. Together with Benefit Street Partners, the platform is one of the largest alternative credit managers globally, with a multi-strategy approach targeting attractive opportunities in the global credit markets. The combined platform manages $76 billion in assets under management (AUM) and has expertise in Senior Secured Loans, Private Credit, Structured Credit, Special Situations, High Yield Bonds, Multi-Strategy Credit, and Commercial Real Estate. The global team totals 412, with 173 investment professionals. Alcentra is a wholly owned subsidiary of Franklin Resources, Inc. (Franklin Templeton).
About Franklin Templeton
Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the Company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives, and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of September 30, 2023.
This press release is qualified for issuance in Europe and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. Alcentra Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom.