{"id":13910,"date":"2023-09-21T11:53:06","date_gmt":"2023-09-21T11:53:06","guid":{"rendered":"https:\/\/www.esgtoday.com\/?p=13910"},"modified":"2023-09-21T11:53:07","modified_gmt":"2023-09-21T11:53:07","slug":"sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme","status":"publish","type":"post","link":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/","title":{"rendered":"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme"},"content":{"rendered":"<!--themify_builder_content-->\n<div id=\"themify_builder_content-13910\" data-postid=\"13910\" class=\"themify_builder_content themify_builder_content-13910 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n\n\n<p>The U.S. Securities and Exchange Commission (SEC) announced the adoption of new rules that will require &nbsp; funds with names that suggest an investment focus on ESG or sustainability-related factors to invest at least 80% of the value of assets in accordance with those factors.<\/p>\n\n\n\n<p>The SEC action consists of an amendment of the Commission&#8217;s \u201cNames Rule,\u201d first adopted in 2001, as a measure to prevent fund names from misrepresenting their inherent investments and risks, which included a requirement for investment companies with names that suggest a focus on a certain type of investment to adopt a policy to invest at least 80% of the value of their assets in those investments.<\/p>\n\n\n\n<p>The adopted amendments expand the 80% rule to apply to funds with names that suggest a focus on investments with particular characteristics. While not applying only to ESG funds \u2013 funds labelled as \u201cgrowth\u201d or \u201cvalue\u201d would also be included, for example \u2013 the ruling focused heavily on ESG funds, noting the rapid increase in investor interest in funds that offer ESG strategies and the proliferation of such funds, as well as the growing potential for greenwashing due to the wide range of ESG-related terms and evolving investor expectations.<\/p>\n\n\n\n<p>The final rule noted that use ESG-related terms such as \u201csustainable\u201d or \u201cgreen\u201d present \u201cparticular investor protection concerns,\u201d as \u201cfunds that consider ESG factors in their investment strategies comprise a thematic area that entails unique considerations, and that involves the use of terminology that may be especially powerful in fund names to attract investors.\u201d<\/p>\n\n\n\n<p>SEC Chair Gary Gensler said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cToday\u2019s final rules will help ensure that a fund\u2019s portfolio aligns with a fund\u2019s name. Such truth in advertising promotes fund integrity on behalf of fund investors.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The final rule did not include action in an initial proposal that would have defined the use of ESG terms in the names of \u201cESG integration funds\u201d as \u201cmaterially deceptive and misleading.\u201d ESG integrations funds consider ESG factors alongside other non-ESG factors in investment decisions, although the ESG factors are not more significant than the other factors. In a statement announcing the new rule, Gensler said that this aspect of the proposal is still under consideration.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p><span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) announced the adoption of new rules that will require &nbsp; funds with names that suggest an investment focus on ESG or sustainability-related factors to invest at least 80% of the value of assets in accordance with those factors. The SEC action consists of an amendment of the Commission&#8217;s [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":13911,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[2,17],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme - ESG Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme - ESG Today\" \/>\n<meta property=\"og:description\" content=\"The U.S. Securities and Exchange Commission (SEC) announced the adoption of new rules that will require &nbsp; funds with names that suggest an investment focus on ESG or sustainability-related factors to invest at least 80% of the value of assets in accordance with those factors. The SEC action consists of an amendment of the Commission&#8217;s [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/\" \/>\n<meta property=\"og:site_name\" content=\"ESG Today\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ESGToday\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-21T11:53:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-21T11:53:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/09\/SEC3.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1065\" \/>\n\t<meta property=\"og:image:height\" content=\"596\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mark Segal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:site\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark Segal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/\"},\"author\":{\"name\":\"Mark Segal\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/cca7a2b05e3a06d096e5740fb1433a01\"},\"headline\":\"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme\",\"datePublished\":\"2023-09-21T11:53:06+00:00\",\"dateModified\":\"2023-09-21T11:53:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/\"},\"wordCount\":378,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.esgtoday.com\/#organization\"},\"articleSection\":[\"Investors\",\"Regulators\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/\",\"url\":\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/\",\"name\":\"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme - ESG Today\",\"isPartOf\":{\"@id\":\"https:\/\/www.esgtoday.com\/#website\"},\"datePublished\":\"2023-09-21T11:53:06+00:00\",\"dateModified\":\"2023-09-21T11:53:07+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.esgtoday.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.esgtoday.com\/#website\",\"url\":\"https:\/\/www.esgtoday.com\/\",\"name\":\"ESG Today\",\"description\":\"ESG investing news, analysis, research and information\",\"publisher\":{\"@id\":\"https:\/\/www.esgtoday.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.esgtoday.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.esgtoday.com\/#organization\",\"name\":\"ESG Today\",\"url\":\"https:\/\/www.esgtoday.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png\",\"contentUrl\":\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png\",\"width\":618,\"height\":350,\"caption\":\"ESG Today\"},\"image\":{\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/ESGToday\/\",\"https:\/\/twitter.com\/EsgToday\",\"https:\/\/www.linkedin.com\/company\/esg-today\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/cca7a2b05e3a06d096e5740fb1433a01\",\"name\":\"Mark Segal\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/68fbfd7923e36d210feb00a7621096af?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/68fbfd7923e36d210feb00a7621096af?s=96&d=mm&r=g\",\"caption\":\"Mark Segal\"},\"description\":\"Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm\u2019s head of U.S. equities. While at DCM, Mark was part of the firm\u2019s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.\",\"url\":\"https:\/\/www.esgtoday.com\/author\/mo-segal9\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme - ESG Today","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/","og_locale":"en_US","og_type":"article","og_title":"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme - ESG Today","og_description":"The U.S. Securities and Exchange Commission (SEC) announced the adoption of new rules that will require &nbsp; funds with names that suggest an investment focus on ESG or sustainability-related factors to invest at least 80% of the value of assets in accordance with those factors. The SEC action consists of an amendment of the Commission&#8217;s [&hellip;]","og_url":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/","og_site_name":"ESG Today","article_publisher":"https:\/\/www.facebook.com\/ESGToday\/","article_published_time":"2023-09-21T11:53:06+00:00","article_modified_time":"2023-09-21T11:53:07+00:00","og_image":[{"width":1065,"height":596,"url":"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/09\/SEC3.jpg","type":"image\/jpeg"}],"author":"Mark Segal","twitter_card":"summary_large_image","twitter_creator":"@EsgToday","twitter_site":"@EsgToday","twitter_misc":{"Written by":"Mark Segal","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#article","isPartOf":{"@id":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/"},"author":{"name":"Mark Segal","@id":"https:\/\/www.esgtoday.com\/#\/schema\/person\/cca7a2b05e3a06d096e5740fb1433a01"},"headline":"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme","datePublished":"2023-09-21T11:53:06+00:00","dateModified":"2023-09-21T11:53:07+00:00","mainEntityOfPage":{"@id":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/"},"wordCount":378,"commentCount":0,"publisher":{"@id":"https:\/\/www.esgtoday.com\/#organization"},"articleSection":["Investors","Regulators"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/","url":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/","name":"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme - ESG Today","isPartOf":{"@id":"https:\/\/www.esgtoday.com\/#website"},"datePublished":"2023-09-21T11:53:06+00:00","dateModified":"2023-09-21T11:53:07+00:00","breadcrumb":{"@id":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.esgtoday.com\/sec-adopts-rule-requiring-esg-labelled-funds-to-invest-80-in-alignment-with-theme\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.esgtoday.com\/"},{"@type":"ListItem","position":2,"name":"SEC Adopts Rule Requiring ESG-Labelled Funds to Invest 80% in Alignment with Theme"}]},{"@type":"WebSite","@id":"https:\/\/www.esgtoday.com\/#website","url":"https:\/\/www.esgtoday.com\/","name":"ESG Today","description":"ESG investing news, analysis, research and information","publisher":{"@id":"https:\/\/www.esgtoday.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.esgtoday.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.esgtoday.com\/#organization","name":"ESG Today","url":"https:\/\/www.esgtoday.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/","url":"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png","contentUrl":"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png","width":618,"height":350,"caption":"ESG Today"},"image":{"@id":"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/ESGToday\/","https:\/\/twitter.com\/EsgToday","https:\/\/www.linkedin.com\/company\/esg-today\/"]},{"@type":"Person","@id":"https:\/\/www.esgtoday.com\/#\/schema\/person\/cca7a2b05e3a06d096e5740fb1433a01","name":"Mark Segal","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.esgtoday.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/68fbfd7923e36d210feb00a7621096af?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/68fbfd7923e36d210feb00a7621096af?s=96&d=mm&r=g","caption":"Mark Segal"},"description":"Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm\u2019s head of U.S. equities. While at DCM, Mark was part of the firm\u2019s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.","url":"https:\/\/www.esgtoday.com\/author\/mo-segal9\/"}]}},"builder_content":"","_links":{"self":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/posts\/13910"}],"collection":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/comments?post=13910"}],"version-history":[{"count":0,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/posts\/13910\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/media\/13911"}],"wp:attachment":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/media?parent=13910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/categories?post=13910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/tags?post=13910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}