Schroders is to include sustainability data at an individual fund level in its annual Assessment of Value (AoV) reports.
The firm said this would enhance the transparency of investment information for clients.
The fund manager’s AoV approach is currently aligned with the seven areas required by the UK’s Financial Conduct Authority’s (FCA) rules, which encompass performance, costs, charges and quality of service.
Andy Howard, global head of sustainable investing, Schroders said: “As an active asset manager, it is important that we help our investment teams assess the potential social and environmental impacts of our clients’ investments and be able to estimate and quantify them.”
The FCA recently carried out a sample study of fund managers and found that most the firms involved were not implementing rules that should demonstrate how much value they provide to clients.
AoV rules were brought into force in 2019 and require firms to justify their fund fees by demonstrating value based on certain criteria such as performance, costs and savings from economies of scale.
James Rainbow, chairman of Schroder Unit Trusts Limited and head of Schroders UK business, said: “Our aim is to be at the forefront of responding to market demands and ensuring investments remain suitable for our clients’ needs.
“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.”
He added that the firm sees this as an opportunity as an active manager to differentiate itself by enhancing transparency around sustainable investing.
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