Bell Asset Management’s ESG milestone


Bell Asset Management (BAM) has announced that the UBAM – Bell Global SMID Cap Equity Fund has attained Article 8 classification under the EU Sustainable Finance Disclosure Regulation (SFDR).

The UBAM – Bell Global SMID Cap Equity Fund is a sub-fund of Union Bancaire Privée (UBP)’s UBAM Luxembourg domiciled collective investment scheme (known as a SICAV[1]), where UBP has appointed BAM as the Investment Manager of a UCITS-compliant global small- and mid-cap equity portfolio managed in-line with BAM’s Global SMID Cap Equity strategy.

An Article 8 fund as defined under the SFDR is “a Fund which promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices”.

Under the EU Financing Sustainable Growth Action Plan, the SFDR was established with the intention to standardise rules in relation to transparency of the integration of sustainability risks, the consideration of adverse sustainability impacts and the provision of sustainability‐related information related to financial products. The legislative actions at the centre of this effort are in response to the EU’s commitment to the Paris Agreement and United Nations Sustainable Development Goals (UN SDGs).

Commenting on attaining the Article 8 classification, Ned Bell, Chief Investment Officer at BAM said “Our Environmental, Social and Governance (ESG) philosophy and approach is consistently integrated across all our global equity strategies and we believe the UBAM – Bell Global SMID Cap Equity Fund having Article 8 classification is further validation of our ESG integrated investment approach.”

BAM employs a disciplined and robust investment framework, combined with Stewardship and ESG specific activities including ESG screening, ESG integrated financial analysis, active engagement and proxy voting with companies across all portfolios.

The BAM ESG integrated approach is further reinforced by a policy commitment to two specific ESG related targets for all portfolios:

  1. To manage all equity portfolios in such a way that their overall ESG scores – as measured by MSCI – exceed that of their respective benchmarks^.
  2. A carbon footprint target for all portfolios. The sustainability indicator used for carbon footprint target measurement in the portfolios is the weighted average carbon intensity.

As a result of ESG considerations being highly integrated into the investment process, the Carbon Intensity (tonnes CO2e/$m Sales) across all of BAM’s global equity strategies as at 30 June 2021 are approximately 75% lower as compared to their respective MSCI benchmarks[2].


[1] SICAV is an acronym in French for société d’investissement à capital variable, which can be translated as ‘investment company with variable capital’.
[2] The benchmark of the Bell Global Core and Bell Global Select strategies is the MSCI World Index. The benchmark of the Bell Global SMID strategy is the MSCI World SMID Cap Index.

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