A flexible asset allocation approach to investing sustainably

M&G (Lux) Sustainable Allocation Fund

At M&G, we are committed to creating a sustainable future for all.

However, we cannot lose sight of our primary objective: achieving financial goals. Therefore, we are committed to tactically selecting strong fundamentals that deliver long-term returns.

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.

"I want to invest responsibly, investing in 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.”

Maria Municchi, Fund Manager

Where can the investment approach 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.

Screen 1

Excludes companies in breach of the UN Global Compact Principles1

 



 

Screen 2

Excludes sector producers2

  • Tobacco
  • Alcohol
  • Adult entertainment
  • Gambling
  • Thermol coal
  • Controversial weapons

Screen 3

Minimum MSCI ESG ratings3

  • Governments: BB or higher
  • Corporates: BBB or higher

 

 

1UN Global Compact Principles on human rights, labour, environment and anti-corruption
2For excluded sectors, the revenue limit is 0% for production
3Note 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.

Investment

  • Quality of the investment
  • Risk assessment

 

Intention

  • Mission statement and strategic alignment
  • Culture and governance
     

Impact

  • Material contribution to UN Sustainable Development Goals4
  • Impact monitoring and measurability

4While 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.

Portfolio Positive impact weight: 36.7%.

Divided by area

Better health, saving lives: 10%

Social inclusion: 37%

Better work and education: 1%

Circular ecomomy: 9%

Climate action: 21%

Environmental solutions: 22%

Source: M&G, as at 28 February 2022.

Why invest in M&G (Lux) Sustainable Allocation Fund?

A flexible, diversified and consolidated asset allocation across the years seeking to take advantage from the different market environments.

      


 

An ESG approach to select investments that help generate a positive impact on the environment and society.

The fund’s sustainability-related disclosures can be found here.

 

 

The aim is to offer a combination of income and capital growth of 4-8% per year over any five-year period⁵

 

 

 

 

5The fund aims to generate this result by applying environmental, social and governance (ESG) and/or Impact criteria. The fund is actively managed and it has no benchmark. Investors can assess the performance of the fund by its financial objective. An actively managed fund that normally invests in a range of assets globally as follows: 20-80% in bonds, 20-60% in equities and 0-20% in other assets. Typically, 20-50% of the fund is invested in companies that have a positive impact on society by addressing major social and environmental challenges.

Source: M&G, 2021. Please note, when making a decision to invest in the this fund, investors should take into account all the characteristics or objectives of the fund as described in the funds prospectus.

For an explanation of the investment terms used in this document, please refer to the glossary.

This is a marketing communication. Please consult the prospectus and the Key Investor Information Document (KIID) before making your 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.

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.

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.

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

The fund allows for the extensive use of derivatives.

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.  

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