Policies and documents

M&G maintains an overarching responsible investment policy that applies throughout the business. The details of how we implement this policy across investment teams are outlined in our responsible investment asset class pages, and are summarised in the ‘M&G approach to Responsible Investment’ document below. We also have policies that deal with specific responsible investment issues, including, for example, cluster munitions, conflicts of interest and adherence to UNPRI. Please find our range of responsible investment policies, external policy documents and glossaries related to responsible investment, below.

For more information, contact us.

UN Principles of Responsible Investment

The United Nations-backed Principles for Responsible Investment (PRI) Initiative* is an international network of investors working together to put the six Principles for Responsible Investment into practice. Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision making and ownership practices. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system.

Principle 1:
We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2:
We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3:
We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4:
We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5:
We will work together to enhance our effectiveness in implementing the Principles.

Principle 6:
We will each report on our activities and progress towards implementing the Principles.

For further information please visit the UNPRI page.

*Please note this is an external website which will open in a new web browser.

Cluster munitions

The UN Convention on Cluster Munitions (CCM) acknowledges the devastating effect that these weapons have on communities. As of August 2010, the CCM was made a legally binding international treaty that prohibits the use of all cluster munitions.

In response to the UN Convention on Legal exclusions and to ensure we adhere to country-specific laws on such munitions, we do not invest in securities issued by companies directly involved in the manufacture of Legal exclusions for the actively managed M&G OIEC, SICAV, FCP and Guernsey property unit trust fund range.1 2

Our investment exclusion list is based on a combination of the list endorsed by the Belgian Asset Managers Association (BEAMA) and the list used by the Authority for the Financial Markets (AFM) in the Netherlands.

UN Convention on Cluster Munitions

1. This policy does not apply to the M&G European Index Tracker Fund or M&G Index Tracker Fund.

2. For direct real estate investments, we will not make any new lettings to companies on the exclusion list and we will not acquire any buildings where companies on the exclusion list are already in occupation. For indirect (including fund of funds or multi-manager) mandates, we will make the other fund managers aware of our policy but we cannot guarantee full compliance as the underlying fund managers will have responsibility for acquisitions and lettings. We will apply this policy as far as we are able within the context of national and local regulations regarding landlord and tenant relations. For example, in the UK, the Landlord and Tenant Act requires landlords to grant new leases on expiry and restricts our ability to prevent leases being reassigned to companies on the exclusion list. If companies are added to the exclusion list, we cannot apply the policy retrospectively but will apply to future lettings.

UK Stewardship Code

M&G complies with the UK Stewardship Code, which has set out the principles of building constructive relationships and engagement between asset managers and investee companies. We have outlined how we discharge our stewardship responsibilities in M&G and the UK stewardship code. Guidelines released by the Financial Reporting Council can be found below.

UK Stewardship Code