Morningstar estimates up to 300 existing funds will opt for SDR label in 2024

Sustainability Focus likely to dominate

Valeria Martinez
clock • 3 min read

Up to 300 UK open- and closed-end funds will opt for one of the four sustainability labels introduced by the Financial Conduct Authority by the end of this year, Morningstar has estimated.

The firm said this was "an optimistic scenario" and noted that labelled funds may represent 8% of funds domiciled in the UK and less than 3% of all funds available for sale in the country, amounting to roughly £110bn in total assets. By comparison, the financial regulator estimated in its Sustainable Disclosure Requirements policy statement in November that around 280 funds that currently have key sustainability-related terms in their name or objectives will use a sustainability label.  Neither the FCA or Morningstar take into account new funds that will be launched this year and may ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

FIF25: SDR plans for MPS should be 'natural progression' for FCA
ESG

FIF25: SDR plans for MPS should be 'natural progression' for FCA

A ‘clear’ move for industry

Isabel Baxter
clock 05 June 2025 • 2 min read
FE fundinfo's Helen Slater: ESG's defence debate hinges on transparency
ESG

FE fundinfo's Helen Slater: ESG's defence debate hinges on transparency

Clearer disclosure will be key

Helen Slater
clock 05 June 2025 • 4 min read
Trump concerns cause global investors to shun US sustainable companies
ESG

Trump concerns cause global investors to shun US sustainable companies

Europe leads in climate investing

Beth Brearley
clock 04 June 2025 • 2 min read
Trustpilot