Rathbones Asset Management (RAM) will add a ‘Sustainability Focus’ label to two of its funds under the Sustainability Disclosure Requirements (SDR).
From 2 April, the Rathbone Greenbank Global Sustainability fund and the Rathbone Greenbank Global Sustainable Bond fund will use the ‘Sustainability Focus’ label.
Under SDR, the FCA introduced a new set of rules around sustainability-related products including enhanced disclosures, anti-greenwashing rules and voluntary product labels.
RAM said it supports the FCA’s goal of improved transparency and clarity in sustainable investing, particularly to ensure better comparability and retail consumer understanding.
The group has now notified the regulator of its intention to use the voluntary labels introduced by the FCA under the SDR. It will add detailed sustainability objectives to the two funds. Their aim will be to promote positive environmental or social outcomes by investing in companies that to one of more of the following themes:
- Decent work
- Inclusive economies
- Energy and climate
- Habitats and ecosystems
- Health and wellbeing
- Innovation and infrastructure
- Resilient institutions
- Resource efficiency
Potential investments withing the Rathbone Greenbank Global Sustainability and the Rathbone Greenbank Global Sustainable Bond funds are assessed using a multiple step process, and ultimately a scorecard which assesses the products and services provided by a company or funded by a bond.
These new disclosures will explain that at least 70% of each fund has to achieve a score of 10 on RAM’s ‘scorecard’, which is the Greenbank Standard of Sustainability. The remainder (up to 30%) may be held for diversification and risk management purposes in other assets that do not need to meet the Greenbank Standard of Sustainability but cannot conflict with the funds’ sustainability objectives.
RAM said it has enhanced its disclosures to allow investors to understand its aims and processes in relation to the sustainability objectives of the funds.
The group will cover all legal and administration costs associated with making the changes, which will be reflected in fund marketing material and disclosure documents.
Tom Carroll, chief executive of RAM, said: “RAM has long adhered to a research-led, bottom-up investment philosophy, focusing on qualitative factors that we believe are critical to identifying sustainable, long-term value.
“This process emphasises deep, company-specific research, considering factors such as management quality, corporate culture, and long-term strategy which promote our funds’ goals for a more sustainable world. We are committed to maintaining this assessment in our funds’ investment processes.”
This article originally appeared in our sister publication, Portfolio Adviser
