As part of the European Union’s broader legislative programme the EU Sustainable Finance Disclosure Regulation sets out a common framework for asset managers as financial market participants to disclose how their investment processes take into account ESG or sustainability-related risks and impacts.
The purpose of the SFDR legislation is to enhance standardisation and transparency for investors to understand how Environmental, Social and Governance (ESG) analysis is incorporated in investment products.
Disclosure requirements for products (e.g. funds) that carry an express ESG or sustainability objective go further. Asset managers are required to provide information on the environmental and social characteristics targeted by the product, or set out the product’s sustainable investment objectives.
Below you’ll find links to the various disclosures Ninety One is presenting aligned with SFDR requirements.
In the UK, the Financial Reporting Council’s (FRC) Stewardship Code sets out standards for asset managers on how they exercise Stewardship for assets over which they have discretion. Similarly, the amended Shareholders Rights Directive (SRD II) seeks to increase the transparency of how asset managers engage with their investee companies. Based on UK Financial Conduct Authority (FCA) guidance, Ninety One covers both regimes in the same documents.
Per the FCA's Conduct of Business Sourcebook requirement, Ninety One UK Ltd confirms that it is a signatory to the FRC's 2012 Stewardship Code, for which we publish the relevant Stewardship policy and Annual stewardship report.
We intend to become a signatory to the 2020 FRC Stewardship Code when applications open in 2021.
The annual disclosure on how this engagement policy has been implemented is included in the Annual stewardship report.