For Investment Professionals only

M&G Sustainable Multi Asset 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 allocation approach to sustainable investing

  • The fund aims to provide a combination of capital growth and income of 4-8% per year over any five-year period, while applying ESG Criteria and/or Impact Criteria.
  • 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 May 2023.

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, the revenue limit is 0% for production.
***Note that ESG ratings are not the same as credit ratings.

Impact investing framework

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 seeking to have 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.

Fund Facts

30 April 2024 £49.77 million
Fund launch date 14 February 2019
Benchmark* None
Sector IA Mixed Investment 20-60% Shares sector


Source of fund facts: M&G as at 30.04.24.

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

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.

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.

The views expressed in this document should not be taken as a recommendation, advice or forecast.

M&G Sustainable Multi Asset 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.