Royal London Asset Management Aligns 8 Funds with SDR Focus Label

Royal London Asset Management (RLAM), Britain's biggest investment management business, has announced that its eight Sustainable fund range valued at £11 billion have all joined the Sustainability Focus label under the Financial Conduct Authority's (FCA) new Sustainability Disclosure Requirements (SDR). The reason behind this move is to encourage transparency of the fact that sustainability factors have been taken into account in the investment strategy of these funds. By adopting the SDR Focus jargon, RLAM will provide investors with a clearer picture of the environmental, social, and governance (ESG) make-up of its sustainable funds so that they can make better decisions.

The application of the SDR Focus brand confirms that RLAM's funds consistently integrate sustainability factors into the core of their investment philosophy. The funds have been governed under the same philosophy for more than two decades, investing in companies that possess excellent operating models which also benefit society. By this long-term investment approach, RLAM invests in firms whose products, services, or operations support sustainable development and well-being in society.

The eight funds of this update are from 100% fixed income investment to 100% investment in equity, providing a range of investor demands and risk tolerance. Multi-asset alternatives also exist, wherein investors can adjust expected levels of risk and reward based on their own goals. With this range, RLAM can assist clients in aligning their investment portfolio with their sense of sustainability without compromising strategic financial goals.

The FCA Sustainability Disclosure Requirements framework that the SDR Focus label applies to is an important UK sustainable finance innovation. It aims to connect disclosures and labelling of investment products so that investors will make more informed choices about fund managers' sustainability claims. RLAM's early adoption of the Focus label reflects its willingness to meet such changing regulatory requirements and signals its intention to adapt to increasing ESG disclosure expectations.

Investments from RLAM's sustainable funds are made in companies with well-established business models and already existing contributions to society, including social responsibility, environmental stewardship, and good practice governance. What this implies is that investments are being made in companies that are already contributing to economic development in a sustainable manner, compared to those that are merely in compliance with the law.

The new labelling is not a marketing stunt but one component of a broader strategy for building investor trust. In today's more environmentally conscious market environment, there needs to be clarity on exactly what makes a sustainable fund so that investor trust can be maintained. SDR Focus labelling does not greenwash by holding funds accountable for how they apply the application of sustainability concepts in investment decisions.

RLAM's action follows sustainable investing emerging as a pressing agenda for asset managers globally. Investors are increasingly demanding greater disclosure of the environmental and social impact of their portfolios, and financial institutions are thus accelerating their ESG efforts. By matching its sustainable funds with the SDR Focus label, RLAM is leading the way with responsible investing trends in the UK marketplace.

The long-term investment approach of the company means that participation in investee businesses to obtain sustained enhancement in ESG standards is part of the investment process of the company. Influencing company behavior in such a way, RLAM intends to create an investment market in which sustainability performance and financial performance are irrevocably intertwined. Such a vision ahead will not only favor investors interested in long-term value but also broader social aims.

The new labelling also provides a certain competitive advantage to RLAM because it aligns with the growing investor demand for funds with guaranteed high levels of sustainability integration. The combination of transparency, regulation, and a long-term sustainability-driven investment process places RLAM in a position where it can meet institutional as well as retail investor needs in an ever-changing market scenario.

Overall, applying the SDR Focus brand name to its Sustainable fund range makes RLAM more visible in the sustainable finance space. It keeps the company's investment products at the forefront and competitive in a world where sustainability and ESG factors are no longer an option but a necessity. Emphasizing transparency, compliance, and genuine societal value, RLAM reinforces its leadership role in leading the transition to a more sustainable economy.

Source/Credits:
Details taken and condensed from KnowESG's 28 April 2025 article.
Original source: RLAM via KnowESG.