More clarity around sustainability disclosure will be greatly "helpful" for managers and investors when it comes to environmental, sustainable and governance funds.
Speaking to David Thorpe, contributing editor of Asset Allocator, and Dave Baxter, funds editor for sister title Investors' Chronicle on the latest AA podcast, Lowe said it was important to understand the terminology around sustainability and impact and how it is used.
He said: "Investors have been operating in a vacuum for the past few years, mainly adopting what has been used in Europe.
"The FCA's latest consultation on sustainability disclosure requirements looks like they will settle on three categories of sustainable funds, so any clarity or consistency will be helpful."
However, he warned the burden of regulatory compliance could hit smaller companies harder.
The Asset Allocator Podcast is a fortnightly series aimed at discretionary fund managers, fund selectors and wealth managers, providing insight into the issues that drive investment decisions.
To listen to the full podcast, click on the link above.
