Marketing communication. For Investment Professionals only

M&G (Lux) Climate Solutions Fund

Investing for a cleaner future
Randeep Somel, Fund Manager
Ben Constable- Maxwell, Head of Sustainable and Impact Investing

“We believe that investing to address the challenges associated with climate change does not mean giving up economic returns. We aim to invest in companies that produce real solutions to these environmental challenges, while generating long-term wealth for our customers.”

Fund approach

The M&G (Lux) Climate Solutions Fund seeks to provide attractive returns through investment in companies that aim to deliver solutions to the challenge of climate change.

The fund aims to:

  • Financial objective: provide a combination of capital growth and income to deliver a return that is higher than the global stock market over any five-year period; and
  • Impact objective: invest in companies that aim to deliver solutions to the challenge of climate change.

Reasons to consider investing

  • A compelling dual proposition, seeking to achieve competitive economic returns and positive environmental impact.
  • A liquid, transparent vehicle based on a solid investment process, providing widespread access to impact investment through listed equities.
  • A strategy that can benefit from flows of capital across sectors and industries to help achieve the UN Sustainable Development Goals (SDGs)* – a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.

Why impact investing now?

  • Investors are increasingly seeking a positive impact from their investments.
  • A changing regulatory backdrop, with UK and European regulators driving the sustainable finance agenda, with a real focus on green solutions to climate change.
  • Multi-trillion-dollar opportunity for companies – and investors – to deliver innovative products and services focused on providing solutions to achieve the SDGs.

What will the fund invest in?

Source: M&G, 2022.

The fund generally holds around 30 well-understood stocks diversified around three main impact areas: clean energy, green technology and the promotion of a circular economy. Across these impact areas, the fund invests in three types of impactful companies we classify as ‘pioneers’, ‘enablers’ and ‘leaders’, seeking to provide additional diversification across industries, end markets, and maturity of business models.

*While we support the UN SDGs, we are not associated with the UN and our funds are not endorsed by them.

Investing in the solutions to climate challenges

The diagram references the UN SDGs – 'Sustainable Development Goals'. We have mapped the SDGs against M&G's Impact Areas.

Source: M&G, 2022.

Exclusions and restrictions

Source: M&G, 2022. *Must be committed to transitioning to renewable energy sources.

Fund Facts

31 July 2022 €11,71 million
Fund launch date 12 November 2020
Benchmark* MSCI World Net Return Index
Sector Morningstar Equity Ecology
EUR A share class
ISIN (Acc) LU2226639461
ISIN (Dist) LU2226639545
Initial charge Max. 4,00%
AMC 1,75%
Ongoing charge** 1,96%
SFDR classification Article 9

Source of fund facts: M&G as at 31.07.22.

*The benchmark is a comparator used solely to measure the fund’s performance and does not constrain portfolio construction. The benchmark has been chosen as it best reflects the fund’s financial objective. The fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents. The benchmark is not an ESG benchmark and is not consistent with the ESG Criteria and Impact Criteria.

**The ongoing charge is based on expenses as at 31.03.22.

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

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 Key Investor Information Document and Prospectus.

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.

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

The fund’s sustainability-related disclosures can be found here

For an explanation of the terms used in this document, please refer to the glossary on our website here

 

Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to Qualified Investors according to the Swiss Collective Investment Schemes Act ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.

The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg. The Instrument of Incorporation, Prospectus, Key Investor Information Document, as well as the annual or interim Investment Report and Financial Statements can be obtained free of charge in English from M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or from Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, which acts as the Swiss representative of the Schemes (the "Swiss Representative") and acts as their Swiss paying agent.

Before subscribing investors should read the Prospectus and Key Investor Information Document, which includes a description of the investment risks relating to these funds.

M&G Luxembourg S.A. may terminate arrangements for marketing under the new Cross-Border Distribution Directive denotification process.

Complaints handling information is available in English from https://www.mandg.com/investments/professional-investor/en-ch/contact-us

This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L-2449, Luxembourg.