M&G launches sustainable multi asset fund range

London, 9 December 2020 – M&G Investments is today launching a range of retail multi-asset funds which combine adherence to high ESG standards, impact investment and volatility management.

The M&G Sustainable Multi Asset fund range aims to deliver attractive total returns, within explicit volatility limits, while also making a positive contribution to the climate and society.

Clients’ money is invested in assets with strong ESG credentials, identified with the support of propriety analysis developed by M&G’s stewardship and sustainability team and external providers.

Part of each fund’s portfolio will be directed towards impact – investments with the explicit aim to address one or more global environmental and/or social challenges.

The range has three individual funds to suit different risk tolerances: Cautious, Balanced and Growth.

Maria Municchi, Fund Manager of the M&G Sustainable Multi Asset range, says: “Across asset classes, sustainable investing can contribute to build a more resilient society. Many customers want their long term savings to produce good financial returns and make a positive contribution to the planet.

“This new family of funds aims to meet this demand, while allowing customers and their advisers to align their fund choice with their individual risk tolerance – as defined by appetite for market volatility.”

All three funds combine strategic and tactical asset allocation, within a well-defined risk framework. They aim to deliver consistent sustainable outcomes via:

A core holding of positive impact assets (between 20 and 50%) – following M&G’s Positive Impact team’s established framework which analyses the investment case, intention and positive impact contribution of each potential holding.
A climate focus – through a combination of sector exclusions, engagement and an understanding of how companies acknowledge and manage their carbon emissions.
A preference for investing in direct holdings to better control the ESG quality, while maintaining the ability to actively allocate capital across asset classes globally – including equities, bonds and alternatives.
A sustainable and impact annual report aligned to the UN’s Sustainable Development Goals framework.

Fund features	Cautious	Balanced	Growth
Maximum Volatility p.a. over a 5yr rolling period	9%	12%	17%
Sector	IA Volatility Managed	IA Volatility Managed	IA Volatility Managed
Typical Equity Allocation Range	0-35%	20-60%	55-100%
Comparator Benchmark	IA Mixed Investment 0-35%	IA Mixed Investment 20-60%	IA Flexible Investment
MSCI ESG Rating (expected)	A-AA	A-AA	A-AA
Carbon Intensity (expected)	Below MSCI AC World	Below MSCI AC World	Below MSCI AC World
Positive Impact Exposure	20% to 50%	20% to 50%	20% to 50%

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Notes to editors

OpenPositive Impact Team

M&G’s 10-strong Positive Impact team, led by Ben Constable-Maxwell, reaches consensus on the impact of all potential investments by undertaking a three-point analysis covering the investment case, intentions and impact of each company. This framework is a practical means of scoring candidate companies and creating a watch-list of high quality, sustainable companies for the manager to choose from when the timing and opportunity are right.

OpenMaria Municchi

Maria Municchi has managed the M&G Sustainable Multi Asset Fund since launch in February 2019 and has been deputy manager of the M&G Episode Income Fund since January 2017. Having joined M&G in 2009, providing support as an investment specialist to the Multi Asset and Convertibles teams, Maria previously worked at Barings and UBS Asset Management. She has an MSc in international management and finance and is a CFA charterholder. Maria has completed the University of Cambridge Institute of Sustainability Leadership programme in Business Sustainability Management.

OpenAbout M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £339 billion of assets under management (as at 30 June 2020). M&G plc has over 5 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

OpenDisclaimer

This information is intended for journalists and media professionals only. It should not be relied on by private investors or advisers.

Issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority and provides investment products. The company’s registered office is 10 Fenchurch Avenue, London EC3M 5AG. Registered in England and Wales. Registered number 90776.

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M&G launches sustainable multi asset fund range

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