For Investment Professionals only

M&G Climate Solutions Fund

Investing for a cleaner future
John William Olsen, 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 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 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, August 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, August 2022.

Exclusions and restrictions

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

Fund Facts

31 August  2022 £21.28million
Fund launch date 05 November 2020
Benchmark* MSCI World Index
Sector IA Global Sector

 

Source of fund facts: M&G as at 31.08.22.

*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.

M&G Climate Solutions Fund

Visit the fund page

For financial advisers only. Not for onward distribution. No other persons should rely on any information contained within. This financial promotion is issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority in the UK and provides ISAs and other investment products. The company's registered office is 10 Fenchurch Avenue, London EC3M 5AG. Registered in England and Wales. Registered Number 90776.