Cazenove Capital, the wealth management business of Schroders, is planning to adopt the Sustainability Focus label on three of its flagship sustainability funds, under the Financial Conduct Authority’s Sustainability Disclosure Requirements (SDR).
The fund label will apply to the SUTL Cazenove Charity Sustainable Multi-Asset fund for charity clients, and both the SUTL Cazenove Sustainable Growth fund and the SUTL Cazenove Sustainable Balanced fund for private clients. These funds collectively manage over £3bn of assets on behalf of Cazenove’s clients.
According to Cazenove, the planned adoption of the labels across the funds is intended to give clients “confidence in the integrity and robustness” of its sustainable investment approach, alongside a commitment to managing investments in line with client values.
Emilie Shaw, sustainable solutions lead at Cazenove, commented: “We are proud to be one of the first wealth managers to announce the planned adoption of the sustainability labels. This milestone underscores our enduring commitment to aligning clients’ assets with their values, and solidifies our position as one of the premier choices for sustainable wealth management solutions.”
Investment funds have been able to adopt one of four labels under SDR since 31 July 2024. A labelled fund must have a sustainability objective that is clear, specific and measurable using key performance indicators.
The Sustainability Focus label requires a minimum of 70% of the assets within the fund to contribute to a sustainability objective, and no assets can be held that conflict with the sustainability objective.
Cazenove’s announcement follows in the footsteps of Schroders, who themselves announced plans to adopt SDR labels for 10 funds in December. Further additional labels for Schroders funds are expected to be announced in the near future.
Anna O’Donoghue, global head of product development and governance at Schroders, added: “Our planned early adoption of SDR labels reflects the integrity and robustness of our sustainable and impact investment approach. The labels will help to differentiate our sustainable product range, making it easier for clients who are seeking sustainable outcomes to identify opportunities to invest. We are appreciative of the FCA’s ongoing collaboration and we continue to liaise closely with them as we work through the regulatory process across other relevant Schroders funds.”
