Killik & Co's Andrius Makin: What portfolio managers need to see in SDR pause

Regulations cannot progress

Although the FCA’s decision to indefinitely delay the extension of the Sustainability Disclosure Requirements (SDR) to portfolio managers is disappointing, it is not surprising.

Many managed portfolio services invest in funds, adding a layer of complexity that goes beyond what fund managers have been contending with when seeking an SDR label. Ultimately, the new regulations cannot progress further until several issues have been resolved. Lacking choice The uptake of SDR labels has been slower than many had anticipated, with the universe of labelled funds only passing the 100 mark earlier this year. This is far short of the 300-plus labelled funds some had predicted, and pales in comparison to the number of ‘non-labelled' funds, which consider sustainabil...