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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 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 December 2021.

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.

Investing for positive impact across asset classes

Assessing investments using the iii framework within the positive impact component of the fund.

†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.

††The fund aims to provide this return while applying environmental, social and governance (ESG) Criteria and/or Impact Criteria.

Source: M&G, 2021.

Fund Facts

31 March 2022 £29.6 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 31.03.22.

* 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.

M&G Sustainable Multi Asset Fund

Visit the fund page