Schroders Wins £5.2 Billion Sustainable Investment Mandate

Schroders, a world's leading asset manager, received a £5.2bn sustainable investment mandate in the UK's wealth management and private bank arm of St James's Place.

This partnership with the UK-based group is an emblem of Schroders' excellent active management techniques and its zeal for sustainable investing under the new wave of changing investment environment emphasis on regulatory and transparency requirements from clients.

This mandate represents a significant vote of confidence in Schroders' ability to run sustainable funds. SJP's Sustainable & Responsible Equity (SRE) fund will channel the mandate into a portfolio blending Schroders' Global Sustainable Value Equity and Global Sustainable Growth strategies. The combination provides investors with a diversified range of opportunities and exposure to companies committed to delivering sustainable outcomes. The portfolio transition is scheduled for the first quarter of 2025, in keeping with SJP's long-term, responsible approach to investing.

SJP and Schroders share a commitment to aligning their sustainable funds with the new Sustainability Disclosure Requirements (SDR) of the Financial Conduct Authority (FCA). As part of this initiative, the funds will be adopting the FCA's 'Sustainability Focus' label, designed to enhance transparency and provide clear insights for clients into investments that align with their sustainability goals. This step highlights the growing significance of regulatory compliance in the investment industry, as clients and investors demand greater clarity and accountability in sustainable finance.

According to Richard Oldfield, Group Chief Executive at Schroders, this is a significant partnership, "Our collaboration with SJP is testament to the robustness of our active investment proposition, which has been further reinforced by meeting the FCA's new criteria for sustainability labels across many of our funds.

Alex Tedder, Co-Head of Equities at Schroders, agreed, highlighting that SJP's investment objectives are best aligned with Schroders' approach to active management. "This investment allocation by SJP underlines the quality of our active investment process and our commitment to delivering sustainable outcomes for our investors," Tedder said. "Clients, investors, and the industry are increasingly focused on bespoke investment solutions that deliver strong risk-adjusted returns alongside a comprehensive commitment to sustainability.

The collaboration marks a critical step in addressing the growing demand for sustainable investment solutions. Investors are seeking portfolios that not only generate competitive returns but also align with their values and contribute to positive environmental and social outcomes. Schroders' integration of sustainability into its investment strategies positions it as a leader in meeting these evolving expectations.

Schroders' decision to apply the FCA's Sustainability Disclosure Requirements across its funds reaffirms its commitment to transparency and client alignment. By embracing the 'Sustainability Focus' label, Schroders is looking to build trust and provide clarity for investors navigating the complexities of sustainable investing.

For SJP, this is a strategic move to improve its sustainable investment offerings. The allocation to Schroders' Global Sustainable Value Equity and Global Sustainable Growth strategies is designed to offer clients access to a diverse portfolio of companies that prioritize sustainability while delivering long-term growth potential.

As the investment industry evolves, standards such as FCA's SDR are an integral part of ensuring the credibility and accountability of sustainable finance. Schroders's proactive adoption of these standards has positioned it at the forefront of the industry, establishing a benchmark for other asset managers.

The collaboration between Schroders and SJP is not only a testament to the growing importance of sustainable investment solutions but also a reflection of the growing role of active management in achieving sustainable outcomes. Combining rigorous investment processes with a focus on sustainability, Schroders continues to deliver value to clients while addressing the broader challenges of environmental and social responsibility.

The call for this endorses the evolving face of investment with sustainability no longer an option, but a requirement. Taking up this massive commitment, Schroders reiterates its role as a reliable investment partner for its clients in furthering their causes aligned to sustainable values and profitable returns.