Schroders to include sustainability data in value assessments

AoV reports will also include insights around active ownership

Schroders is adding sustainability data at individual fund level to its future assessment of value (AoV) reports.

Schroders’ AoV approach is currently aligned with the seven areas required by the Financial Conduct Authority’s (FCA) rules, which include performance, costs, charges and quality of service.

But on Monday the asset manager said for future AoV reports it will also include sustainability data to “further demonstrate its commitment to enhancing transparency of investment information for clients”.

The AoV will also include insights around active ownership, supported by its proprietary measurement tool impactIQ, which helps quantify the potential social and environmental impact of clients’ investments.

The new information will be reflected fund factsheets implemented during 2022.

Schroders’ second value for money assessment, published in April by its fund board, concluded that nine out of 89 funds did not demonstrate value. It flagged four out of six of its multi-manager funds as well as the UK Equity and UK Opportunities funds, run by Alex Breese, which were subsequently handed to Bill Casey and Nick Kissack.

Schroder Unit Trusts Limited chairman and head of Schroders UK business James Rainbow (pictured) said: “Our two published assessment of value reports have described Schroders approach to sustainable investing. We are now going one step further by including sustainability data for all of our funds.”

The move follows a commitment made earlier this year that all Schroders’ investors were integrating ESG into decision making across all investments the firm manages, a move first announced in November 2019.

Schroders global head of sustainable investing Andy Howard said: “As investors and as guardians of our clients’ assets, we seek to actively influence corporate behaviours so that the companies in which we invest are managed in a more sustainable way.

“Using the influence we have over these companies we can encourage them to prepare for the pressures building in their industries – this is integral to our investment principles.”

Schroders was one of the major asset managers missing from the Financial Reporting Council’s 125-strong successful UK Stewardship Code list published last week.

This article first appeared in ESG Clarity sister publication Portfolio Adviser.


Natasha Turner

Natasha is global editor at ESG Clarity, part of Mark Allen Financial, and has been a financial journalist for seven years. She has been shortlisted for Story of the Year and Investment Journalist of the...