A ‘food label’ for sustainable funds
Investor interest in sustainable investing is growing, but so is confusion and concerns of greenwashing. As European regulators wrestle with disclosure, we set out to produce a prototype which shows what good disclosure would look like to the end investor. The ultimate customer of every asset manager.
Introducing the prototype
We engaged with 6 of the leading fund management groups in the UK, our blog readers, 20 retail investors in deep-dive interviews and 1,500+ fund investors in a survey to develop this prototype.
Our prototype set out to be clear, engaging, useful and – importantly – mobile-first to fit in with the reality of how investors consume information today.
Explore the prototype via the link below. Scroll through the various fund reporting, hear from the fund’s manager and Boring Money’s researched view.
Check out our prototype
On March the 30th our Boring Money Founder and CEO, Holly Mackay, introduced the prototype and answered some of your questions. Watch the full replay below:
How did we do this, and what did we find?
Overall, investors felt the prototype would be an improvement on current sustainable communications.
Interviewees like the overview, and feel it is a good level of information with the ability to drill down into further detail if required.
Suggested improvements to consider:
Once they had digested the protoype, people wanted the ability to compare two funds side by side in this framework.
More interactivity within the SDG section – ability to click onto an SDG for more detail.
Develop to be viewed on a desktop for those who prefer researching on a computer or laptop.
More diversity metrics, e.g. BAME people on boards.
Show if the fund is Level 8 or Level 9 under the Sustainable Funds Disclosure Regulation (SFDR)
Be clear that the alignment of funds to SDGs can be subjective – and also clarify if this alignment is based on how any investment operates its business i.e how it is run OR based on its core revenues i.e what it makes or does.
The exploration and creation of this prototype was made possible with the support of these 6 fund managers. They all wanted to understand more about what the end investor wanted to know and see, so that they can continue to enhance their reporting and disclosure.
Useful links and more information
We have used illustrative metrics in this prototype – thanks and acknowledgement to ImpactCubed, FTSE Russell, Morningstar, MSCI, ShareAction.
We have used the United Nations' SDGs:
The United Nations has commissioned seventeen (17) icons and the SDG logo, including the colour wheel, to graphically promote awareness of the Sustainable Development Goals adopted by the Member States of the United Nations by resolutions A/RES/70/1 of the General Assembly of 25 September 2015.
Please click here for more information regarding the Morningstar Sustainability Rating methodology.
For more information about how we designed this prototype, click here
Boring Money has been researching investor sentiment and appetite for ethical and sustainable funds since 2017. Please ask us about:
Our annual sustainable investments report (research with investors and advisers)
Our upcoming Sustainable Investment Tracker (quarterly research with 1,500 fund investors on brand, preference and intentions) – coming Q2
Bespoke projects to better understand what investors and advisers want and expect
Have questions about our bespoke work?