Sustainable Funds
The Financial Conduct Authority (FCA) has introduced four sustainable investment labels for UK funds.
Sustainable funds:
The Financial Conduct Authority (FCA) has introduced four sustainable investment labels for UK funds that aim to improve or pursue positive outcomes for the environment and/or society, each of which represents different sustainability objectives, and in turn different investment approaches to pursue those objectives (so different products might invest in similar assets but have different labels depending on their objectives).
There is no hierarchy between the four labels as they simply represent different objectives or approaches that may be aimed at meeting different consumer preferences. Some funds in the UK do not have a label, but may still have a sustainable strategy.
Understanding your needs
Goals are important, but we believe you cannot get to 'there' without understanding where 'here' is first.
How we work
These funds invest mainly in assets that focus on sustainability for people or the planet. Examples may include activities to support the production of energy, for example, from solar, wind or hydrogen.
These funds invest mainly in assets that may not be sustainable now, but aim to improve their sustainability. Examples may include investments in companies that are on a credible path to net zero by 2050, or are committed to improving social standards such as human rights.
These funds invest mainly in solutions to sustainability problems with an aim to achieve a positive impact for people or the planet. Examples may include renewable energy generation and social housing.
These funds invest mainly in a mix of assets that either focus on sustainability, aim to improve their sustainability over time, or aim to achieve a positive impact for people or the planet.
Disclosure documents
In the table below we set out all of the sustainable funds we may use in our portfolios and the label each has. Consumer-facing disclosure documents provided by the funds are linked below. These disclosure documents explain the investment’s key sustainable features.
It is worth noting that overseas products are not subject to the UK sustainable disclosure and labelling regime. Further information on the regime itself can be found on the FCA webpage.