Marketing communication. For Investment Professionals only

M&G (Lux) Sustainable Allocation Fund

A flexible asset allocation approach to investing sustainably
Maria Municchi, Fund Manager

“I want to invest responsibly, looking for opportunities that can help protect the environment and prevent its further harm, and which provide benefits to society at large, while also reducing the detrimental impact some investments might have.”

A multi-asset approach to sustainable investing

  • The fund has two aims:

Financial objective: to provide a total return (capital growth plus income) of 4 to 8% per year over any five-year period.

Sustainable objective: to contribute to a sustainable economy by investing in assets supporting environmental and/or social goals, in particular climate change mitigation.

  • The fund’s annualised volatility is expected to be between 4% and 9%, over any five-year period.
  • The fund seeks to provide a diversified investment across asset classes from anywhere in the world using a variety of investment tools.
  • The fund manager allocates to asset classes based on the M&G multi-asset philosophy.

Strategy overview

Other securities may include, but not be limited to currencies, convertible bonds and derivatives, such as futures and options. The fund has a flexible asset allocation and normally invests within the following net allocation ranges:
20-80% in fixed income securities, 20-60% in equities and 0-20% in other assets. The allocation shown above reflects the portfolio as at 31 March 2022.

Where can the fund make a difference?

Applying ESG screens on three levels

Aims to ensure that we invest only in, or provide finance to, companies, governments or organisations that meet our strict criteria for ESG standards.

*UN Global Compact Principles on human rights, labour, environment and anti-corruption.
**For excluded sectors, revenue thresholds may apply.
***Note that ESG ratings are not the same as credit ratings.

For details of the fund exclusions, please refer to the fund’s ESG Criteria and Sustainability Criteria document available here.

Investing for positive impact across asset classes

Positive impact investing plays an important role in the fund. It will typically hold between 20% and 50% in positive impact assets. These are often long-term in nature, and aim to generate a positive social and/or environmental impact, alongside a financial return. Investments are selected across asset classes using our ‘iii’ assessment framework:

†While we support the UN Sustainable Development Goals, please note that we are not associated with the UN and our funds are not endorsed by the organisation.

Reasons to consider investing

The fund aims to ‘democratise’ sustainable investing. It offers investors diversified exposure to a range of ESG- screened assets and to companies and institutions which, by addressing the world’s social and environmental challenges, are having a positive impact on society.

The fund embraces the distinctive, long-standing investment process of the M&G Multi Asset team to construct the portfolio:

  • Strategic asset allocation from a robust valuation framework.
  • Tactical asset allocation from assessments of ‘episodes’ created by investor behaviour, which moves asset prices away from our estimate of fair value.
  • ‘Episodes’ are instances when asset price volatility seems to be at odds with changes in what we see as the asset’s underlying fundamentals.

Source: M&G, 2022.

Fund Facts

31 July 2022 €68,59 million
Fund launch date 29 November 2018
Benchmark* None
Sector Morningstar EUR Moderate Allocation – Global sector
EUR A share class
ISIN (Acc) LU1900799617
ISIN (Dist) LU1900799708
Initial charge Max. 4,00%
AMC 1,50%
Ongoing charge** 1,71%
SFDR classification Article 9


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

* The fund is actively managed and it has no benchmark. Investors can assess the performance of the fund by its financial objective.
**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.

Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.

The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.

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.

The fund allows for the extensive use of derivatives.

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.