WHEB AM calls for “Radical Transparency” ahead of New FCA Fund Labelling

WHEB Asset Management (WHEB), the impact investing pioneer with £1.4bn AUM, today calls on the fund management industry to embrace ‘radical transparency’ in reporting fund activity and disclosure beyond standard financial metrics.

WHEB’s FY 2022 Impact Report, published today, provides candid detail about the real-world outcomes of its social and environmental investments alongside financial performance. Such detailed reporting will soon become a prerequisite as regulators seek to combat the prevalence of Greenwashing in public market funds. The FCA is due to announce new fund labelling rules in the coming months, which is expected to require ESG or sustainability labelled funds to demonstrate the ‘real world’ social and environmental impacts of their investments.

WHEB, which spearheaded its unique global equity impact strategy almost 20 years ago – around when the ‘ESG’ term was coined – hopes its 2022 Impact Report will provide a template for industry-wide reporting on their non-financial impact/performance.

George Latham, managing partner at WHEB Asset Management, says:
“Over the past ten years or so, we have seen many imitation strategies launched from established fund managers as demand for sustainable solution-based funds increases. Many new competitors are rushing into this space, but it isn’t simple. It is hard to do and requires a depth of understanding.

“While we’re delighted to have led the creation of this market, current fund labelling and reporting requirements are open to manipulation with companies divulging the metrics they want you to hear.

“Our Impact Report draws a line in the sand. We believe it offers a no-holds-barred assessment of what we’re achieving in terms of our impact on sustainability and the environment. This is crucial if investors are to trust that their capital is indeed being allocated to better the environment and tackle climate change. I urge other change-makers in the fund industry to adopt this level of radical transparency ahead of regulatory demands for it.”

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