M&G (Lux) Optimal Income Fund to add ESG exclusions

London, 22 November 2022 – M&G today announces its plan to introduce an additional set of Environmental, Social and Governance (ESG) exclusions to the M&G (Lux) Optimal Income Fund managed by Richard Woolnough. The changes align the Fund with increasing investor demand for more sustainable solutions and reflect M&G’s commitment to grow its range of ESG-enhanced, sustainably-focused and impact funds, in order to offer our customers more options for their investments.

The Fund will expand its sector-based ESG exclusions to companies involved in arctic drilling & oil sands extraction, adult entertainment, gambling and tobacco. Involvement will be determined by assessing whether companies generate revenue from the prohibited activities in excess of stated thresholds¹.

Following its classification as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR) last year, the Fund will maintain its positive ESG tilt and will continue to provide investors with a weighted average ESG score above that of its benchmark. The Fund’s financial investment objective and approach will be unaffected by the introduced changes.

Micaela Forelli, Managing Director Europe at M&G, adds: “We continue to thoroughly review our SICAV range to ensure we meet the evolving needs of our clients and to enhance the ESG characteristics of many of our strategies wherever possible, as evidenced through the increasing number classified as Article 8 and 9 under SFDR”.

The new exclusion criteria will be effective from Friday 30 June 2023, after portfolio realignment. Full details of the Fund’s updated ESG exclusions criteria, including revenue thresholds for each activity and information on good governance screens, will be made available to investors through a separate ‘ESG Criteria’ document published on the M&G website.

^[1] The relevant thresholds will be communicated to investors in the Fund’s regulated marketing materials.

Download a PDF of the release

Media enquiries

Marie Vanbremeersch

Media Relations

+33 (0)172389662

+33 (0)7 63 53 09 88

marie.vanbremeersch@mandg.com

Notes to editors

M&G has transitioned several other strategies towards more ESG-enhanced, sustainably-focused and impact outcomes this year, including:.

OpenAbout M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has over €405 billion of assets under management (as at 30 June 2022). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

For more information, please visit: https://global.mandg.com/

To find out more on the financial terms used in this press release, please go to the glossary.
To find more about the Fund Sustainability information please click here

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

The services and products herein are available only to investment professionals and are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.

Issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority and provides investment products. The company’s registered office is 10 Fenchurch Avenue, London EC3M 5AG. Registered in England and Wales. Registered number 90776.

	You are about to enter the website of M&G Investments, a direct subsidiary of M&G plc. Click here to proceed.
	If you are looking for the affiliates of Prudential Financial, Inc., whose principal place of business is in the United States of America, click here to proceed.
	If you are looking for the affiliates of Prudential plc, an international group incorporated in England and Wales, click here to proceed.
M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.