Our sustainable multi-asset funds have been designed to deliver healthy financial returns whilst helping to reduce your investment risk.
As well as aiming to deliver financially, these funds also look to invest your money in companies that will help contribute to a better world. Your money can help fund solutions to some of the major issues facing our planet and create a brighter future for the next generation.
Spreading your investment risk across asset classes
There are different types of investments available for investors - for example Shares, Bonds, Property and Cash. These are known as “assets classes”.
However, different types of assets are likely to perform well at different times.
For example, one year shares may be performing well and bonds may be underperforming. The following year bonds might be outperforming shares. Overall what performs best and worst one year, could be very different the next. So, the problem is knowing when is a “good time” to invest in a particular asset class.
That’s why many investors want to spread their money across the different types of assets , to avoid having all their eggs in one basket. This is known as multi-asset investing.
Targeting more consistent returns
Our sustainable multi-asset funds have the potential to deliver more consistent returns than a fund invested in a single asset class.
That’s because your investment is spread across a variety of assets, and over time the returns are likely to fluctuate less than a fund which only invests in just one type of asset.
As with any investment the value can go down as well as up and you may not get back the amount you put in.
Potential for healthy returns as well as a healthier planet
Our new sustainable multi-asset fund range looks to invest in companies that have good plans to deal with the long-term challenges faced by our society and the natural environment. And invests only in those companies that are sincere and determined to meet those commitments.
How does your money help the planet?
Firstly, when our experts are looking for places to invest your money they must meet certain criteria. Some don’t even make it through the first filter like controversial weapons or unethical business practises.
To create a better world while targeting competitive returns, our experts look at environmental factors, things that benefit society and companies with robust controls (for example, fair working conditions). These three areas are known as ‘Environmental, Social and Governance (ESG).
A core portion of your money is also invested for impact. This means it’s invested in companies, governments or other entities that set out to achieve specific and measurable differences to environmental or societal issues. This goes one step further than ESG because there are specific targets and the companies, governments or other entities are held accountable in meeting those targets. They may be things like reducing carbon emissions by a certain amount or funding advancements in medical research helping to combat the world’s major health challenges.
A choice of multi-asset funds to suit different needs
People have different needs in terms of the risk they’re willing and able to take and the returns they want to aim for. That’s why we offer a choice of three multi-asset funds.
- The lower risk and reward funds are likely to be less volatile, so will be invested in areas which are likely to fluctuate less in value.
- The higher risk and reward funds are likely to be more volatile, so will be invested in areas that are likely to fluctuate more in value
The levels of risk and reward are linked to how volatile a fund is likely to be.
The three sustainable multi-asset funds
You have a choice of three funds, so you can choose the fund that meets your own needs in terms of the risk you are willing to take and the rewards you are aiming for.
M&G Sustainable Multi Asset Cautious Fund – has the lowest volatility limit of 9% (per annum; over a 5yr rolling period) and therefore has the lowest amount invested in assets more likely to be volatile. This means is has the lowest level of risk of the three funds, and lowest potential rewards.
M&G Sustainable Multi Asset Balanced Fund – has a volatility limit of 12 % (per annum; over a 5yr rolling period) and has a more even spread invested across the main asset classes. Therefore the Balanced Fund is likely to be more volatile than our Cautious Fund but less volatile than our Growth Fund.
M&G Sustainable Multi Asset Growth Fund – has the highest volatility limit of 17% (per annum; over a 5yr rolling period) and therefore has the highest amount invested in assets more likely to be volatile. This means it has the highest level of risk of the three funds, and the highest potential rewards.
Our three funds are all actively managed by experts to try and keep the volatility within the limit specified for each fund. If the fund does fluctuate by any more than the target limit, as these are not guaranteed, the fund manager will take action to bring it back within the guidelines.
Our three options give you the chance to select a level of risk you are comfortable taking, as well as the rewards that you are aiming for.
What are our funds designed to do?
Our multi-asset funds are designed to maximise long-term total return (combination of capital growth and income) over a five-year period and positively contribute to a more sustainable economy.
You can find out more about these funds on our fund centre.
The value of any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
We are unable to give financial advice. If you are unsure about the suitability of any investment, please speak to a financial adviser.
The views expressed on this page should not be taken as any kind of recommendation or forecast.