Schroders has secured a significant sustainable investment mandate worth £5.2 billion ($6.3 billion) from UK wealth management firm St. James’s Place (SJP), marking a strong endorsement of Schroders’ expertise in sustainable, active investment management.
Strategic Allocation and Fund Details:
The mandate will be allocated to SJP’s Sustainable & Responsible Equity (SRE) fund, which will invest in a portfolio composed of Schroders’ Global Sustainable Value Equity and Global Sustainable Growth strategies. This allocation offers clients diversified exposure to companies focused on long-term sustainable growth. The transition to this new portfolio is expected to take place in Q1 2025.
Commitment to Transparency:
Both the SRE fund and Schroders’ sustainable investment offerings will adopt the Financial Conduct Authority’s (FCA) new ‘Sustainability Focus’ label. This label, introduced as part of the UK’s Sustainability Disclosure Requirements (SDR), ensures greater transparency and helps investors easily identify funds aligned with their sustainability objectives.
Leadership Comments:
Richard Oldfield, Schroders’ Group Chief Executive, highlighted that the partnership with SJP underscores the strength of Schroders’ active management approach, which meets the FCA’s sustainability criteria. Alex Tedder, Co-Head of Equities, further emphasized that the allocation reflects both the quality of Schroders’ investment process and the growing demand for investments that deliver strong risk-adjusted returns with a clear sustainability focus.
Market Impact:
This deal reflects the increasing importance of sustainability in investment strategies and the growing demand for transparent, responsible investment solutions. Schroders is well-positioned to meet this demand, with a robust investment process designed to deliver sustainable financial outcomes in a rapidly evolving market.
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