Analysis and investment
We have a large analytical platform, covering public and private debt, and our investments span a diverse range of fixed income asset classes. Across this breadth of interests our investment processes share many commonalities, including meticulous analysis of each borrower.
These assessments focus on all issues that could impair the future creditworthiness of a borrower and interrupt expected future investment returns – ESG risks are assessed in conjunction with all other risks.
Our fund managers factor such analysis into their investment decision making, determining whether an investment offers good value to our clients in the light of present and future risks – cognisant of the fact that ESG issues often develop over the longer term.
The scale of M&G’s resources and participation in debt markets means we are well placed to represent our clients’ interests on ESG initiatives. This can range from responding to public consultations to acting as a sounding board for, and consulting with, government departments and regulatory bodies. M&G also engages directly with borrowers on ESG issues to enhance the value of our clients’ investments. We are very aware of the responsibility that comes with our market position and always seek to represent the best interests of our clients.
M&G’s commitment to making investments that support socially responsible and sustainable economic growth can be seen in many sectors. For example, M&G is a significant lender to UK social housing borrowers, where we have continued to provide much-needed long-term financing, at a time when banks have withdrawn their support. We have also provided financing for a range of socially or environmentally beneficial investments in areas including affordable housing, education, healthcare, green property developments, low carbon transport and renewable energy. All investments in these areas must meet our usual, stringent requirements for providing appropriate returns for our clients relative to the risks taken.