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 ...

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