AEW first in line to adopt the FCA Sustainability Impact label

AEW will become one of the first asset managers to adopt the Financial Conduct Authority’s ‘Sustainability Impact’ label on 31 July, the earliest possible date, for its UK Impact Fund.

Edward Long, Portfolio Manager, AEW.

Last year the FCA introduced four new labels for funds with sustainable characteristics under the Sustainability Disclosure Requirements (SDR) regime: Sustainability Focus, Sustainability Improvers, Sustainability Impact and Sustainability Mixed Goals.

Working closely with Eversheds Sutherland, AEW’s UK Impact Fund has cleared the FCA fund authorisation process for the adoption of new disclosures and will adopt the Sustainability Impact label on the first day that it is available.

“Our UK Impact Fund is committed to creating a positive impact for people, place and planet, while helping clients to achieve their return objectives,” said Edward Long, portfolio manager, AEW. “With the support of the fund’s investors over the past two years we have worked to align the Fund with the SDR regime, ensuring that the place-based impact investing strategy we have adopted meets the new stringent criteria.”

AEW launched its UK Impact Fund (UKIF) in 2023 as an open-ended fund composed of 38 UK real estate assets including specialist supported living, key worker accommodation and care homes, together with community and residential-led town centre regeneration projects that influence wellbeing.

The Residences hospital accommodation, Middlesbrough, one of the assets in AEW’s UK Impact Fund

The fund provides a solution for investors wishing to make a positive impact by addressing the place-based needs of the UK, increasing the provision of sustainable real estate with a social use value. This includes residential housing, care facilities, nurseries and leisure and community facilities. UKIF has an active management, core-style strategy and seeks to generate a sustainable income stream and return for investors.

Under the Sustainability Impact label requirements, AEW’s UKIF is committed to achieving sustainability and impact objectives. The fund has adopted a bespoke Impact Management & Measurement (IMM) system, created in conjunction with The Good Economy, which is designed to align with the best principles of impact investing, requirements of the Global Impact Investing Network and the UN Sustainable Development Goals.

Key Performance Indicators that measure the progress of the impact objectives will be reported to investors in a bespoke independent annual impact report, AEW said.