Impact investing at M&G

Discover how we're helping to address society's greatest challenges

M&G (Lux) Positive Impact Fund

 

Why investing for impact?

More and more people want to put their investments to work to support positive changes in society and the environment, beyond the avoidance of harm associated with traditional ethical or ESG investments.

Impact investing targets those companies that are aiming to deliver solutions to the world’s most urgent problems, from climate change to social inequality, which can also generate attractive long-term returns. At M&G, our Positive Impact team invests in quality companies producing measurable, material, positive social and/or environmental impacts.

The M&G (Lux) Positive Impact Fund seeks to deliver attractive returns through investments in impactful and sustainable companies. The fund embraces the UN Sustainable Development Goals framework and invests in companies focused on six key impact areas – three environmental and three social – mapped against the SDGs. While we support the UN SDGs, we are not associated with the UN and our funds are not endorsed by them.

At least 80% of the fund is invested in the shares of companies, across any sector and of any size, from anywhere in the world, including emerging markets. The fund usually holds shares in fewer than 40 companies. The fund is actively managed and the benchmark is the MSCI ACWI Net Return Index.

The value and income from the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

While we support the UN SDG’s, we are not associated with the UN and our funds are not endorsed by them. 

How do impact funds differ from ethical and ESG investing?

Ethical funds

Avoid companies in ‘sin sectors’ such as alchohol, tobacco and pornography - a range that many funds have expanded today to include fossil fuels.

ESG funds

Invest in companies across a wide range of industries, giving weight to those that score well on environmental, social and governance issues.

Impact funds

Invest in companies that explicitly aim to have a positive impact on the societal and environmental issues that face the world. Each company must demonstrate a measurable benefit (such as CO2 emissions savings in tonnes).

Our impact fund- M&G (Lux) Positive Impact Fund

3 Reasons to invest

The aim of the M&G (Lux) Positive Impact Fund is to achieve attractive returns by investing in impactful and sustainable companies. The fund is guided by the UN Sustainable Development Goals (SDGs) and invests in companies that focus on at least one of six key impact areas - three environmental and three social - each based on the UN SDGs.

At least 80% of the fund is invested in the shares of companies, across any sector and of any size, from anywhere in the world, including emerging markets. The fund usually holds shares in fewer than 40 companies. The fund is actively managed and the benchmark is the MSCI ACWI Net Return Index.

The value and income from the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

Our impact areas

Exclusions

Discover the six areas where companies from our portfolio have achieved positive change

Why M&G?

Focus & Transparency


The M&G (Lux) Positive Impact Fund is a liquid, transparent investment product with a sound investment process. It offers broad access to impact investments through listed stocks. The fund typically holds around 40 stocks and reports annually on the impact of these companies. 

 

 

Dual objective


The fund has a compelling dual objective: first, it aims to deliver a higher total return (capital growth plus income) than the global equity market over any five-year period. Secondly, it invests in companies that address the world's major social and/or environmental challenges, thereby achieving positive impact. 

 

 

An evolving regulatory environment


Regulators are increasingly focused on the environmental and social characteristics of businesses, with governments around the world funding green regeneration packages. We think this is creating exciting opportunities for companies that are delivering solutions to the world’s greatest challenges.  

 

 

More Information

Explanations of the investment terms used on this page can be found in the glossary.

You can find our sustainability-related disclosures here

This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decisions.

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.

ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the fund.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Please note, investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the fund.

The views expressed in this document should not be taken as a recommendation, advice or forecast.

The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.

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