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Equities

Our fund managers believe that the long-term success of companies is supported by effective investor stewardship and high standards of corporate governance.

We believe that if a company is run well, it is more likely to be successful in the long run. Regular meetings with company directors allow us to identify whether a company’s strategy is aligned with our interests as long-term shareholders.

Social and environmental issues can also have an important impact on a company's performance and successful development. We therefore look at how companies address these issues when we analyse them.

M&G's Corporate Finance and Stewardship team are advocates of responsible share ownership and oversee our stewardship of the companies we invest in. Active voting is an integral part of our investment approach which is why we believe exercising our votes adds value and protects our interests as shareholders.

Our approach

M&G’s investment teams incorporate environmental, social and governance (ESG) considerations into their decision-making and active ownership practices. This approach is strongly aligned with M&G’s long-standing principles as an active, fundamentals-focused investor.

M&G has been a signatory to the United Nations Principles for Responsible Investment (UNPRI) since January 2013, and strongly supports the practices and standards promoted by the FRC Stewardship Code and the UK Corporate Governance Code. We therefore seek to apply these principles consistently across our global equities investments.

M&G Equities has recently signed up to the services of two leading providers of ESG-focused information and analysis in order to support our investment teams with further company-specific and industry-focused analysis. These providers include:

  • MSCI ESG Research - provide our teams ESG information, analysis and screening across global companies
  • ISS-Ethix - supply analysis based on a companies’ performance against the principles of the UN Global Compact; an initiative which promotes good corporate practice in the areas of human rights, labour rights, bribery & corruption and the environment

Together, with other sources of ESG information such as company reporting, broker research and media reports, the analysis helps us to better understand the ESG risks and opportunities facing existing and potential investments. It also provides insights into how companies are managing those risks and creates a solid basis for our interactions with investee businesses on ESG issues.

Across M&G’s investment teams, we have initiated discussions with ‘flagged’ companies to assess their approach to relevant ESG issues, and to monitor how they are managing progress over time.

For more information contact us.

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.

Case studies

 
 

Carnival

Read about our range of engagement activities with the world's largest leisure travel company

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Baidu

Discover how we helped the Chinese search engine reconsider the sale of an important subsidiary

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BP plc

One of M&G's largest holdings, find out how we've engaged with it on key executive remuneration and sustainability issues

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Methanex Corporation

M&G worked closely with Methanex to improve a variety of ESG factors including their capital allocation strategy

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UK Stewardship and Voting

Corporate Finance & Stewardship team

Rupert Krefting

Head of Corporate Finance and Stewardship

Simon Bailey

Director, Corporate Finance and Stewardship

Rosie Brydon

Director, Corporate Finance and Stewardship

Ben Constable-Maxwell

Director, Corporate Finance and Stewardship

Matthew Beardmore-Gray

Director, Corporate Finance and Stewardship