Marketing communication. For Investment Professionals only

M&G (Lux) Pan European Sustain Paris Aligned Fund

Investing in line with the Paris Climate Agreement
John William Olsen, Fund Manager

“The challenges of climate change are becoming increasingly important to governments, companies and the general public. Against this backdrop, we aim to invest in companies that are expected to contribute towards the Paris Climate Agreement goals, while generating long-term returns for our clients.”

About the fund

The M&G (Lux) Pan European Sustain Paris Aligned Fund has two aims: to provide a combination of capital growth and income to deliver a higher return than the European stock market over any five-year period; and invest in companies that contribute towards the Paris Agreement climate change goal.

The fund looks for companies with low and/or reducing carbon intensity, and also considers whether they provide direct solutions to the climate challenge through their products and services. At least 80% of the fund is invested in the shares of companies, across any sector and of any size, that are based, or do most of their business, in Europe. The fund usually holds shares in fewer than 35 companies.

How is the fund aligned?

The fund aims for a Weighted Average Carbon Intensity at least 50% lower than its benchmark. This is the amount of CO2 emitted per million US dollars of sales, for all underlying companies, weighted to their proportions in the portfolio.

We assess a company’s carbon intensity when deciding whether or not to invest, and those that don’t meet the 50% threshold should have Science Based Targets in place to reduce their emissions. We engage with investee companies regularly to ensure they are progressing as expected.

Source: M&G, February 2022.

Portfolio construction

  • The fund takes a long-term, low turnover approach with a concentrated portfolio of usually fewer than 35 companies.
  • We look for quality companies with ‘economic moats’ that should protect their profitability, and only invest when we believe their share price offers good value.
  • The portfolio contains a combination of what we consider ‘stable growth’ companies, with stable cashflows and established business models, and ‘opportunities’ companies, with newer business models and higher potential risk/reward. This provides diversification across industries and maturity of business models.

Reasons to consider investing

  • A consistent, proven, long-term investment process with an integrated focus on the Paris Agreement, aiming to provide a return above the European market while reducing carbon emissions.
  • A focus on quality companies, offering long-term growth and trading at attractive valuations.
  • The potential to capitalise on the opportunities and risks brought on by the global effort to tackle the climate challenge over the coming decades.

Fund Facts

31 January 2022 €116,39 million
Fund launch date 09 November 2018
Benchmark* MSCI World Net Return Index
Sector Morningstar Europe Large-Cap Blend Equity
EUR A share class
ISIN (Acc) LU1670716437
Initial charge Max. 5,0%
AMC 1,50%
Ongoing charge** 1,70%
SFDR classification Article 9

 

Source of fund facts: M&G as at 31/01/22

* The benchmark is a comparator used solely to measure the fund's performace and does not contrain 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.

** The ongoing charge is based on estimated expenses as at 30/09/21.

This is a marketing communication. Please refer to the prospectus and to the KIID 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.

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.

Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.

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

For an explanation of the terms used in this document, please refer to the glossary on our website here

For Investment Professionals and Institutional Investors only. Not for onward distribution. No other persons should rely on any information contained within.

Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to Qualified Investors according to the Swiss Collective Investment Schemes Act, the Swiss Collective Investment Schemes Ordinance and the respective Circular issued by the Swiss supervisory authority ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.

In Spain the M&G Investment Funds are registered for public distribution under Art. 15 of Act 35/2003 on Collective Investment Schemes as follows: M&G (Lux) Investment Funds 1 reg. no 1551. The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg.

In the Netherlands, all funds referred to, are UCITS and registered with the Dutch regulator, the AFM. M&G Luxembourg S.A. is the manager of the UCITS referred to in this document. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.

The Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, the “CMVM”) has received a passporting notification under Directive 2009/65/EC of the European Parliament and of the Council and the Commission Regulation (EU) 584/2010 enabling the fund to be distributed to the public in Portugal.

This information is not an offer or solicitation of an offer for the purchase of investment shares in one of the funds referred to herein. Purchases of a fund should be based on the current Prospectus. The Instrument of Incorporation, Prospectus, Key Investor Information Document, annual or interim Investment Report and Financial Statements, are available in English or your local language (unless specified below) free of charge, in paper form, from M&G International Investments S.A. or one of the following – M&G International Investments S.A., German branch, mainBuilding, Taunusanlage 19, 60325 Frankfurt am Main; the Austrian paying agent: Société Générale Vienna Branch, Zweigniederlassung Wien Prinz Eugen-Strasse, 8-10/5/Top 11 A-1040 Wien, Austria; the Luxembourg paying agent Société Générale Bank & Trust SA, Centre operational 28-32, place de la Gare L‑1616 Luxembourg; the Danish paying agent: Nordea Danmark, Filial af Nordea Bank Abp, Finland, Issuer Services, Postbox 850, Reg.no. 5528, DK-0900 Copenhagen C; Allfunds Bank, Calle Estafeta, No 6 Complejo Plaza de la Fuente, La Moraleja, 28109, Alcobendas, Madrid, Spain; M&G International Investments S.A. French branch; from the French centralising agent of the fund: RBC Investors Services Bank France; or from the Swedish paying agent: Nordea Bank AB (publ), Smålandsgatan 17, 105 71 Stockholm, Sweden. For Switzerland, please refer to M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, which acts as the Swiss representative of the Schemes (the "Swiss Representative") and acts as their Swiss paying agent.

For Italy, they can also be obtained on the website: www.mandgitalia.it. For the Netherlands, they are available online at www.mandg.com/investments/nl and for more information concerning the Key Investor Information Document, please refer to www.afm.nl/ebi. For Ireland, they are available in English language and can also be obtained from the Irish facilities agent, Société Générale SA, Dublin Branch, 3rd Floor IFSC House – The IFSC Dublin 1, Ireland. For Germany and Austria, copies of the Instrument of incorporation, annual or interim Investment Report, Financial Statements and Prospectus are available in English and the Prospectus and Key Investor Information Document/s are available in German.

Before subscribing investors should read the Prospectus and Key Investor Information Document,, which includes a description of the investment risks relating to these funds. The value of the assets managed by the funds may greatly fluctuate as a result of the investment policy. The information contained herein is not a substitute for independentinvestment advice.

M&G International Investments S.A. may terminate arrangements for marketing under the new Cross-Border Distribution Directive denotification process.

Complaints handling information is available in English or your local language from

Luxembourg: www.mandg.com/investments/professional-investor/en-lu/complaints-dealing-process

Ireland: www.mandg.com/investments/professional-investor/en-ie/complaints-dealing-process

Belgium: www.mandg.com/investments/professional-investor/en-be/complaints-dealing-process

Denmark: www.mandg.com/investments/professional-investor/en-dk/complaints-dealing-process

Norway: www.mandg.com/investments/professional-investor/en-no/complaints-dealing-process

Netherlands: www.mandg.com/investments/professional-investor/en-nl/complaints-dealing-process

Sweden: www.mandg.com/investments/professional-investor/en-se/complaints-dealing-process

Finland: www.mandg.com/investments/professional-investor/en-fi/complaints-dealing-process

Austria: www.mandg.com/investments/professional-investor/de-at/complaints-dealing-process

Germany: www.mandg.com/investments/professional-investor/de-de/complaints-dealing-process

Spain:www.mandg.com/investments/professional-investor/es-es/complaints-dealing-process

Italy: www.mandg.com/investments/professional-investor/it-it/complaints-dealing-process

Portugal: www.mandg.com/investments/private-investor/pt-pt/complaints-dealing-process

France: www.mandg.com/investments/professional-investor/fr-fr/complaints-dealing-process

This financial promotion is issued by M&G International Investments S.A. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.