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Responsible, Sustainable and Impact funds

You can access a range of Responsible, Sustainable or Impact funds from third parties through our Retirement Account and International Portfolio Bond.

The following approaches to investing may be suitable for clients concerned about where and how their money is invested and who:

  • want to invest based on their values or moral concerns.
     
  • believe both financial and non-financial factors can impact on investment performance.
     
  • want their investments to generate a positive social or environmental impact, as well as a financial return.

The value of an investment can go down as well as up so your clients might get back less than they put in.

Responsible investing - This generally means seeking to manage risks posed by Environmental, Social & Governance (ESG) factors and avoiding harmful activities, which is typically implemented via negative exclusions in areas such as; controversial weapons, tobacco, coal mining or gambling.

Historically, the term "Ethical" investing has had a similar meaning to "Responsible" investing.

Sustainable investing – this approach looks to invest in sustainability challenges that can also present a financial opportunity, whilst benefitting broad groups or stakeholders.

Impact investing – this type of investing aims to contribute to solutions to environmental or societal problems, potentially for underserved or disadvantaged groups or stakeholders.

The term "ESG" stands for Environmental, Social and Governance and these are typically factors that a fund manager can take account of as part of their investment process, whether that be in the pursuit of financial returns, managing financial risks or seeking to derive a particular non-financial outcome for investors. Examples of ESG factors are;

  • Environmental - considers a firm’s carbon footprint or environmental challenges such as water usage, climate change or deforestation
     
  • Social - is focused on issues such as working conditions like child labour, impact on local communities and workforce diversity
     
  • Governance - concerns how a company is managed and includes issues such as executive pay, diversity, political activities, anti-bribery and corruption policies.

Please note, we do not warrant that any of the third party funds offered adhere to the above example approaches, advisers should satisfy themselves via their own due diligence as to whether a particular fund meets their client's criteria.

Examples of funds available

Please note that these funds have been selected based on Prudential's criteria and may not reflect the criteria of the underlying asset managers.

Fund Name Factsheet
M&G Sustainable Multi Asset Class Fund Fund factsheet
M&G Sustainable Multi-Asset Cautious Fund Fund factsheet
M&G Sustainable Multi-Asset Balanced Fund Fund factsheet
M&G Sustainable Multi-Asset Growth Fund Fund factsheet
M&G Climate Solutions Fund Fund factsheet
Baillie Gifford Positive Change Fund Fund factsheet
AEGON Ethical Cautious Managed Fund factsheet
Liontrust Sustainable Future Managed Fund factsheet
Liontrust Sustainable Future Cautious Managed Fund factsheet
Liontrust Sustainable Future Defensive Managed Fund factsheet
M&G Global Sustain Paris Aligned Fund Fund factsheet
M&G European Sustain Paris Aligned Fund factsheet
M&G Positive Impact Fund Fund factsheet
abrdn Global Sustainable and Responsible Investment Equity Fund Fund factsheet
AEGON Ethical Equity Fund Fund factsheet
Vanguard ESG Developed World All Cap Equity Index Fund Fund factsheet
Vanguard SRI European Stock Fund Fund factsheet
Liontrust Sustainable Future UK Growth Fund factsheet
Liontrust Sustainable Future Managed Growth Fund factsheet
CT Responsible Global Equity Fund Fund factsheet
AEGON Ethical Corporate Bond Fund factsheet
Liontrust Sustainable Future Corporate Bond Fund factsheet

Note: The fund list changes from time to time, please check the fund reporting tool link below for the full list of funds available.