The addition of sustainability data improves the transparency of the Schroders Assessment of Value Report 2022

Schroders is releasing its third Assessment of Value report today, which includes information on every UK-domiciled investment fund that we manage. The AoV report is consistent with our core mission of providing the best service and investment performance possible through active management.

Schroders is releasing its third Assessment of Value report today, which includes information on every UK-domiciled investment fund that we manage. The AoV report is consistent with our core mission of providing the best service and investment performance possible through active management.

For the first time, sustainability data at the individual fund level has been included in this year's report. Schroders has now incorporated sustainability data for all of its reported funds (where data is available), adding a further layer of reporting transparency, as announced in September 2021. SustainEx, Schroders' proprietary award-winning measurement tool, helps investors understand the direct impact of their investments on society and the environment.

James Rainbow, Chairman of Schroder Unit Trusts Limited and Head of Schroders UK business, commented:

“We strive to deliver both quality returns and create meaningful impact for our investors. Now that sustainability is transitioning from being a nascent development for our clients and regulators, environmental, social and governance (ESG) factors are playing an increasingly critical role in how we invest. As a result this year we have included sustainability data for each of the funds in our Assessment of Value Report, adding a further layer of transparency.”

Andy Howard, Global Head of Sustainable Investment, commented:

“Societal, political and regulatory focus on sustainability and sustainable investment is intensifying. Issues such as climate change, biodiversity loss, inequality, discrimination, and corruption present risks and opportunities and, in many cases, will require significant and sustained investment. Asset managers are at the centre of these pressures and can play a crucial role in tackling them.

Our commitment to investing responsibly is paramount to how we allocate capital on behalf of our clients. The inclusion of sustainability data in this year’s Assessment of Value Report is an important milestone in being transparent about how we are integrating sustainability into our investment processes and the impact of our investments on the environment and society.”

Schroders AoV approach is consistent with the seven areas mandated by the Financial Conduct Authority (FCA) rules, which include performance, costs, charges, and service quality. The report also describes the key governance actions we take during the Assessment of Value lifecycle, as well as the methodology, conclusions, and next steps for each of the seven areas.

Schroders published its first annual Assessment of Value report in April 2020, followed by another in April 2021. As a result of the previous year's evaluation, we implemented four significant changes that benefit and save our investors;

Individual funds that were identified as not consistently demonstrating value were subjected to fund manager changes and portfolio composition changes.

We also set up an automated process for share class conversions to move eligible investors into cheaper share classes.

In our largest funds, we implemented scale discounts for retail investors.

Finally, where our analysis indicated that it was appropriate, we reduced fee levels for our funds.

Our primary goal is to provide the best service and investment performance possible through active management. To accomplish this, we reviewed the value we deliver throughout the year and take pride in taking timely and appropriate action when necessary.

We successfully integrated ESG factors into decision-making across all assets we manage on behalf of our clients in 2021.

The sustainability data in the report is provided for information purposes only and does not form part of our assessments.

To date, we have received the following honours: Option Finance in France awarded the "Prix Impact" in 2019; Environmental Finance in the United Kingdom awarded the Impact Award in 2020. SustainEx was named the Most Innovative ESG Product by an independent panel of judges comprised of representatives from leading financial firms, academics, and experts at the annual ESG Investing Awards in the United Kingdom in 2021.

Source: Schroders news