Marketing communication. For Investment Professionals only

M&G (Lux) Global Sustain Paris Aligned Fund

Investing in line with the Paris Climate Agreement
John William Olsen, Fund Manager

“The challenges of climate change are becoming increasingly important to governments, companies and the general public. Against this backdrop, we aim to invest in companies that are expected to contribute towards the Paris Climate Agreement goals, while generating long-term returns for our clients.”

About the fund

The M&G (Lux) Global Sustain Paris Aligned Fund has two aims: to provide a combination of capital growth and income to deliver a higher return than the global stock market over any five-year period; to invest in companies that contribute towards the aims of the Paris Agreement climate change goal.

The fund looks for companies with low and/or reducing carbon intensity, and also considers whether they provide direct solutions to the climate challenge through their products and services. At least 80% of the fund is invested directly 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.

How is the fund aligned?

The fund aims for a Weighted Average Carbon Intensity at least 50% lower than its benchmark. This is the amount of CO2 emitted per million US dollars of sales, for all underlying companies, weighted to their proportions in the portfolio.

We assess a company’s carbon intensity when deciding whether or not to invest, and those that don’t meet the 50% threshold should have Science Based Targets in place to reduce their emissions. We engage with investee companies regularly to ensure they are progressing as expected.

Source: M&G, February 2022.

Portfolio construction

  • The fund takes a long-term, low turnover approach with a concentrated portfolio of usually fewer than 40 companies.
  • We look for quality companies with ‘economic moats’ that should protect their profitability, and only invest when we believe their share price offers good value.
  • The portfolio contains a combination of what we consider ‘stable growth’ companies, with stable cashflows and established business models, and ‘opportunities’ companies, with newer business models and higher potential risk/reward. This provides diversification across industries and maturity of business models.

Reasons to consider investing

  • A consistent, proven, long-term investment process with an integrated focus on the Paris Agreement, aiming to provide a return above the global market while reducing carbon emissions.
  • A focus on quality companies, offering long-term growth and trading at attractive valuations.
  • The potential to capitalise on the opportunities and risks brought on by the global effort to tackle the climate challenge over the coming decades.

Fund Facts

31 July 2022 €213,41 million
Fund launch date 09 November 2018
Benchmark* MSCI World Net Return Index
Sector Morningstar Global Large-Cap Blend Equity
EUR A share class
ISIN (Acc) LU1670715207
ISIN (Dist) LU1670715116
Initial charge Max. 5,0%
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 performace and does not contrain portfolio construction. The benchmark has been chosen as it best reflects the fund's financial objective. The fund is actively managed. The fund 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 estimated 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 Prospectus.

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.