Wealth manager St James’s Place has given fund manager Schroders a £5.2bn sustainable investment mandate.

The allocation will be made by SJP’s Sustainable & Responsible Equity Fund to the Schroder Global Sustainable Value Equity Fund and Schroder Global Sustainable Growth Fund.

The tie-up is planned for the first quarter of 2025 and will allow SJP’s investors to benefit from exposure to a diversified range of companies and opportunities, Schroders said.

SJP’s Sustainable & Responsible Equity Fund and the two Schroder funds will adopt the FCA’s Sustainability Focus label as part of their sustainability disclosure requirements (SDR).

Richard Oldfield, Schroders group chief executive, said: “Our partnership with SJP is testament to the robustness of our active investment proposition, which has been further reinforced by meeting the FCA’s new criteria for sustainability labels across many of our funds. We are grateful for the trust SJP has placed in us and look forward to working closely together to meet their investment objectives.”

Alex Tedder, Schroders co-head of equities, said: “Clients, investors and the industry are increasingly focused on bespoke investment solutions that are able to deliver strong risk-adjusted returns together with a comprehensive commitment to sustainability. Our broad-based capability and commitment to active management puts us in a strong position to meet client objectives in a rapidly transforming investment environment.”

In December the fund manager said it would adopt the FCA’s SDR labels for at least 10 funds, with the Schroder Sustainable Bond Fund becoming one of the first to announce plans to adopt an SDR label. It said it expected to announce additional labels soon.

Anna O’Donoghue, global head of product development and governance, said: “We are appreciative of the FCA’s ongoing collaboration and we continue to liaise closely with them as we work through the regulatory process across other relevant Schroders funds.”

Established in 1804, fund manager Schroders has a market capitalisation of around £6bn and more than 6,000 employees across 38 locations.