Positive Impact Fund - Balancing impact with investment quality

5 min read 10 Jan 23

Summary: The latest update on the M&G Positive Impact Fund explores how the fund aims to generate a good financial return (alongside a positive impact), and reviews the main drivers of the fund’s performance in 2022.

  • The team rigorously assesses the investment quality of potential investee companies, and they must be approved unanimously, before being added to the fund.
  • Companies will only be bought if there is a sufficient margin of safety between the current share price, and what the team considers to be the company’s intrinsic value.
  • The fund aims to hold companies over the long term, and takes a balanced approach, with a focus on diversification across geographies, sectors and maturities of business model.
  • This balanced approach, and a focus on quality, helped the fund to perform resiliently versus a selection of its public equity impact fund peers, in what was a difficult 2022 for many impact investors.

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By M&G Positive Impact Equities Team

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

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