Schroders has unveiled their latest SFDR Article 9 investment product, the Schroder ISF European Equity Impact strategy, created in response to investor demand for impact-driven investment solutions in European equities.
The fund consists of a concentrated portfolio of innovative, European-listed companies that are actively contributing to advancing the United Nations’ Sustainable Development Goals (SDGs). It also integrates Schroders’ in-house Impact Framework which has been developed in partnership with BlueOrchard, receiving top ratings from BlueMark for its alignment with the Operating Principles for Impact Management.
The strategy will be managed by Leon Howard-Spink (pictured right) and Paul Griffin (pictured left), European equity fund managers with more than 25 and 20 years of investment experience respectively.
Howard-Spink commented: “Schroders’ comprehensive Impact Framework identifies innovative European companies that align with the SDGs. By integrating impact considerations into our stockpicking approach, we believe we can deliver a positive societal impact while aiming for attractive long-term returns for our investors.”
According to Schroders, active ownership and engagement are considered an essential component of the fund, which incorporates multi-year engagement plans, developed in close partnership with Schroders’ head of engagement, for each investment in the portfolio. Given this, companies in the portfolio should expect to be actively encouraged to improve their impact over time.
The investment process also includes extensive due diligence in the form of proprietary impact scorecards.
Co-fund manager, Griffin, added: “Through active ownership and engagement, we aim to not only invest in companies making a positive impact but also actively support their journey towards sustainable development. By working closely with companies, we can drive meaningful change and contribute to a more sustainable future.”
The launch of a European-focused equities impact fund follows the February launch of Schroders’ Global Equity Impact fund. Other funds in the impact range include the Schroder ISF Emerging Markets Equity Impact, Schroder ISF US Smaller Companies Impact, Schroder ISF Asian Equity Impact and Schroder ISF European Innovators funds.
