Rathbones Asset Management (AM) has notified the Financial Conduct Authority (FCA) of its intention to use Sustainability Disclosure Requirements (SDR) labels on two of its funds.

Effective from 2 April 2025, the funds will use the Sustainability Focus label, with Rathbones AM to update all pre-contractual disclosures and marketing material to reflect this.

The ‘Sustainability Focus’ label requires a minimum of 70 per cent of the assets within the fund to contribute to a sustainability objective, and no assets can be held that conflict with the sustainability objective.

Rathbones AM said it supported the FCA’s goal of improving transparency and clarity in sustainable investing, particularly to ensure better comparability and retail consumer understanding.

It added that it had enhanced its disclosures to allow investors to understand its aims and processes in relation to the sustainability objectives of the funds.

Other disclosure changes to the investment objective, investment policy, and approach will also occur, including making additional disclosures to comply with the FCA’s requirements for funds that that use sustainability labels.

The firm will also amend the presentation of the investments policies of the funds, and add a new section to explain its sustainability objectives in more detail and how it selects assets in line with its sustainability objectives.

The funds impacted are the Rathbone Greenbank Global Sustainability Fund and Rathbone Greenbank Global Sustainable Bond Fund.

“Rathbones AM 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,” commented Rathbones AM chief executive, Tom Carroll.

“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.”

---