What is Impact Investing?
Impact investing means investing in companies that aim to deliver positive meaningful societal outcomes by addressing the world’s major societal and environmental challenges, while at the same time producing a financial return.
Find out more about Impact Investing
Promoting positive futures
At M&G, we believe an inclusive and focused approach has the potential to deliver positive impact and financial returns. Part of our impact range, the M&G (Lux) Positive Impact Fund identifies sustainable companies that seem to make the world a better place.
We are pleased to introduce our fifth annual impact report for the M&G (Lux) Positive Impact Fund.
3 key reasons to invest
Rigorous and transparent approach to impact investing
Dual proposition that aims to deliver competitive economic returns and a positive contribution to society
Access to previously institutional asset class through liquid, listed equities
M&G (Lux) Positive Impact Fund
The aim of the M&G (Lux) Positive Impact Fund is to achieve attractive returns by investing in impactful and sustainable companies. The fund is guided by the UN Sustainable Development Goals (SDGs) and invests in companies that focus on at least one of six key impact areas - three environmental and three social - each based on the UN SDGs.
At least 80% of the fund is invested in the shares of companies, across any sector and of any size, from anywhere in the world, including emerging markets. The fund usually holds shares in fewer than 40 companies. The fund invests in securities that meet its ESG Criteria and Impact Criteria. Norms-, sector- and/or values-based exclusions apply to investments. All companies are assessed on their investment credentials and ability to deliver positive social and/or environmental impact.
The fund manager expects at least 80% of the fund to be invested in sustainable investments (with a minimum 30% in social and 30% in environmental). The fund is actively managed and the benchmark is the MSCI ACWI Net Return Index.
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 benchmark is not an ESG benchmark and is not consistent with the ESG Criteria and Sustainability Criteria.
While we support the UN SDGs, we are not associated with the UN and our funds are not endorsed by them.
Our impact areas
Environmental impact areas
Environmental solutions
Climate action
Circular economy
Social impact areas
Social inclusion
Better work and education
Better health, saving lives
Examples of companies we invest in
"I believe that not only is impact investing the purest and most honest end point for purposeful investors, but I also believe it has the potential to provide superior investment returns - when executed with care."
John William Olsen
Fund Manager
Watch: Update on the M&G (Lux) Positive Impact Fund
Exclusions
Coal mining
Alcohol
Fossil fuels extraction
Controversial weapons
Adult entertainment
Animal testing on non-medical grounds
Gambling
Tobacco
Revenue limit: 0% production (tobacco: 10% distribution limit)
Oil & gas power generation: exclude those that derive more than 25% of power from oil & gas*
Coal-fired power generation: 10% revenue limit.
Must be transitioning to zero-coal within a 5-year period
Nuclear power generation: 0% revenue limit
*Unless committed to transitioning to renewable energy sources.
Other weapons
GM crops
Revenue limit: 5% production
Companies in breach of UN Global Compact Principles
Explanations of the investment terms used on this page can be found in the glossary.
You can find our sustainability-related disclosures here.
The benchmark is MSCI ACWI Net Return Index. The benchmark is a comparator used solely to measure the fund’s performance and does not constrain portfolio construction. The benchmark has been chosen as it best reflects the fund’s financial objective. The fund is actively managed. The fund 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 benchmark is not an ESG benchmark and is not consistent with the ESG Criteria and Impact Criteria.
This is a marketing communication. Please refer to the prospectus and to the key information document (KID) before making any final investment decision.
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.
ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
Please note, investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the fund.
The views expressed on this website should not be taken as a recommendation, advice or forecast.
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.