The firm’s current AoV approach is aligned with the FCA’s seven areas of focus, and also includes a statement in terms of how they incorporate sustainability into their investment approach. Now, though, it will use its in-house proprietary tools, which reside under the impactIQ umbrella, to include data-led information.
James Rainbow, chair of Schroder Unit Trusts Limited and head of Schroders UK business, told Investment Week it is an important step for the firm to commit to evolving its AoV process.
“After the first AoV, we refined our process ahead of the second one,” he said. “This time round, we had a conversation as to how we can refine our process further and make everything clearer for investors.
“If you want to make a change, these things naturally have to have a long lead time; a combination of factors led us to sustainability. This ties into the amount of work we have done on sustainability and integrating it into our investment processes, the investment we have made in our teams, and our proprietary tools. This felt like a very logical thing to do.”
The sustainability data, which will first appear in the firm’s AoV next year, will span across Schroders’ entire suite of funds, regardless of whether they have a sustainability objective or not.
Schroders has also committed to including sustainability data on all the funds’ factsheets throughout 2022, irrespective of whether they have sustainable mandates or not.
“The value assessment is a more formal process, if you like, so it feels like the right balance to include sustainability data in regular client reporting as well as our value assessments,” Rainbow explained.
“We have invested an enormous amount in our own proprietary tools under impactIQ, with tools such as SustainEx and ThemEx, which are already widely used by our investment teams as they evaluate their own decisions.
“So, it feels appropriate that we offer the same level of transparency we give our fund managers and analysts, to our clients.”
He added: “It is really important that nothing ever stands still; change is one of our few ever-presents. If you are always thinking about these things and examining them, it creates a level of debate within the industry, which is healthy.”