What is SDR?
From 31 July 2024, investment funds in the UK can use SDR labels if they have a specific and measurable sustainability (environmental or social) goal, amongst other requirements. The four SDR labels are:
- Sustainability Focus: funds that invest in assets that focus on sustainability for the people or planet.
- Sustainability Impact: funds that invest in solutions to sustainability problems with an aim to achieve a positive impact for people or the planet.
- Sustainability Improver: funds that invest in assets that may not be sustainable now, but have a goal to become sustainable.
- Sustainability Mixed Goals: funds that invest in assets that either focus on sustainability, aim to improve their sustainability over time, or aim to achieve a positive impact for people or the planet (i.e., a mix of the previous three labels).
Labelled funds must produce easily accessible and simple information covering their sustainability goals and the process they use to achieve these. In addition, labelled funds must produce annual updates on progress made towards the funds’ goals.
Funds not carrying a label but which make sustainability claims also must provide clear information on how they are invested and why they do not have a label.
In May 2024, the FCA also approved an overarching anti-greenwashing rule requiring that all sustainability claims made by firms must be fair, clear, and not misleading. You can find more information on SDR here.
Why does SDR matter?
SDR provides clarity to consumers on sustainable investment products. The FCA has enacted new measures to protect consumers regarding the sustainability of investment vehicles.
Liontrust's funds and SDR
The tables below summarise the integration of SDR requirements within Liontrust’s products. For all funds in-scope of the regime, the FCA requires three types of disclosures:
- a two-page Consumer Facing Disclosure (CFD) document, summarising the fund’s sustainability approach. This is updated at least annually;
- a periodic disclosure which details a fund’s investment policy and strategy, as well as provides information on progress the fund is making towards achieving its key performance indicators (KPIs); and
- a pre-contractual disclosure detailing how the fund approaches sustainability and determines how it will invest. This includes the KPIs used to monitor its performance.
Global Fixed Income team
| Fund name | Label | Two-page disclosure | Periodic report | Prospectus disclosure |
| Liontrust Strategic Bond Fund | No label | Available here | Available in 2025 | Available here |
Sustainable Investment team
| Fund name | Label |
| Liontrust Sustainable Future fund range | Currently applying for the Sustainable Focus label |
