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Fixed income

M&G has a significant volume and breadth of fixed income investments and lends to companies, governments, infrastructure projects, housing associations and other borrowers.

We believe we will do our best for our clients if we consider every factor that can have a meaningful impact on the long-term performance of the investments we make on their behalf. This includes the full range of environmental, social and governance (ESG) issues.

We embed responsible investing into our fixed income investment processes so that all of our investment professionals have a duty to assess and evaluate risks and the role of ESG issues in any given investment. Such assessments are factored into credit analysis and investment decision making and are a contributing component of valuations.

Our approach

Analysis and investment

M&G's investments span a diverse range of fixed income asset classes but always involve a meticulous analysis of each borrower. We assess all issues that could impair their future creditworthiness and interrupt expected future investment returns. ESG risks, which often develop over the longer term, 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 long-term value to our clients in the light of present and future risks.

Engagement

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 government departments and regulatory bodies. M&G also engages directly with borrowers on ESG issues. We are very aware of the responsibility that comes with our market position and always seek to represent the best interests of our clients.

Sustainability

Our commitment to making investments that support socially responsible and sustainable economic growth is widely demonstrated. M&G is a significant lender to UK social housing borrowers, where we have continued to provide much-needed long-term financing as banks have withdrawn support.

We have also provided financing in areas including:

  • Affordable housing
  • Education
  • Healthcare
  • Green property developments
  • Low carbon transport
  • Renewable energy

All fixed income investments must meet our usual, stringent requirements for providing appropriate returns for our clients.

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

 
 

Lightsource

See how we worked with one of Europe's leading solar energy companies to help fund the development and long-term operation of solar electricity photovoltaic (PV) projects.

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United Welsh Housing Association

Discover how we collaborated with the Welsh Government to provide financing for an ambitious social housing initiative.

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