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M&G Climate Solutions Fund

Investing for a cleaner future

Fund approach

The M&G 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:

• Provide a combination of capital growth and income to deliver a return net of the Ongoing Charges Figure that is higher than the MSCI World Index over any five year period; and
• 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 a positive environmental impact.
• The fund manager aims to invest in companies with quality business models, capable of growing sustainably over the long term, in order to benefit from the ‘double compounding’ of both financial returns and positive societal impact over time.
• 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.

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

Why impact investing now?

• Investors are increasingly seeking a positive impact from their investments.
• A changing regulatory backdrop, with European regulators driving the social impact and sustainable finance agenda.
• Multi-trillion-dollar opportunity for companies – and investors – to deliver innovative products and services focused on providing solutions to long-term challenges such as halting climate change, reducing waste and tackling social inequality.

What will the fund invest in?

• At least 80% of the fund is invested in the shares of companies from any developed market and may hold up to 20% in shares of emerging market companies. It may also invest in other funds. It invests in securities that meet the fund’s ESG Criteria, applying an exclusionary approach.
• The fund usually holds shares in fewer than 40 well-understood stocks diversified around three 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.
• The fund manager expects at least 80% of the fund to be invested in sustainable investments with an environmental objective.

Exclusions and restrictions

Source: M&G, January 2023. *Unless committed to transitioning to renewable energy sources.

Fund Facts

Source of fund facts: M&G as at 30.09.23.

*The benchmark is a target against which the fund’s financial performance can be measured. The index has been chosen as benchmark as it best reflects the financial aspects of the fund’s investment policy. The benchmark does not constrain the fund's portfolio construction. The fund is actively managed. The fund 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 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.

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.