Update relating to the changes to M&G (Lux) Global Select Fund (“the Fund”), a sub-fund of M&G (Lux) Investment Funds 1

Defined terms used in this notice have the same meaning as in the Prospectus.

We wrote to investors on 14 June 2021 to inform them of changes we will be making to enhance the Fund’s Environmental, Social and Governance (ESG) profile and provide greater clarity on the ESG outcomes it seeks to deliver in addition to its financial objective. These changes will become effective from 30 July 2021 (the “Effective Date”).

At the time of writing, it was believed that there would be no impact on the Fund’s portfolio as a result of the changes.

Subsequently, new data has become available which means that one of the Fund’s holdings is no longer eligible to be held in the portfolio once the changes become effective. This holding represents around 0.7% of the Fund’s portfolio and will need to be sold on the Effective Date. The costs associated with the transaction are expected to amount to around 0.01% of Fund’s Net Asset Value and will be borne by M&G.

With the exception of this transaction, the remainder of the details provided in our letter dated 14 June are expected to remain unchanged, including the Effective Date for the changes.

For more information

If you are in any doubt as to the action to be taken or require further information, please do not hesitate to contact your usual M&G contact or, for operational queries, our Customer Services team by email at csmandg@rbc.com. We are open from 09:00 to 18:00 CET Monday to Friday. For security and to improve the quality of our service we may record and monitor telephone calls.

 

Overview

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Sustainability Related Disclosures

Environmental or social characteristics of the fund

The fund has two aims:

  • Financial objective: to provide a higher total return (capital growth plus income) than that of the global equity market over any five-year period; and
  • Sustainable objective: to invest in companies that contribute towards the Paris Agreement climate change goal.

How the fund meets its environmental and social characteristics

The fund applies ESG Integration. ESG integration is the systematic inclusion of ESG factors in investment analysis and investment decisions.

The fund is categorised as Planet+ / Sustainable.

  • Planet+: in addition to applying ESG integration, the fund has a minimum set of norms-based, values-based and sector-based exclusions.
  • Sustainable: the fund applies a Best-in-Class approach through selecting companies with strong ESG credentials.

The fund invests in securities that meet the ESG Criteria and Sustainability Criteria.

The benchmark of the fund is the MSCI World Net Return Index. It is a comparator against which the fund’s performance can be measured.

The fund will typically have a weighted average carbon intensity of less than half that of the benchmark.

The benchmark is used to define a Low Carbon Intensity company. The investment manager considers the fund’s weighted average carbon intensity against the benchmark when constructing the portfolio, but the benchmark does not otherwise constrain the fund's portfolio construction.

The benchmark is not an ESG benchmark and is not consistent with the ESG Criteria and Sustainability Criteria.

Additional information

Further information on the ESG methodology, including data sources, screening criteria and the relevant sustainability indicators of the fund can be found in the ESG Criteria and Sustainability Criteria.

A description of ESG and responsible investment terms used is available in the fund’s Prospectus.

Fund Facts

Documents