The M&G Sustainable Multi-Asset Funds have been designed with the aim of delivering competitive financial returns whilst helping to reduce the investment risk.
As well as aiming to deliver financially, these funds also look to invest your money in companies that will help contribute to a better world. Your money can help fund solutions to some of the major issues facing our planet and create a better world.
The M&G Sustainable Multi-Asset Funds invest across shares, bonds and cash. These are known as assets. As your investment is spread across a variety of assets, over time the returns are likely to fluctuate less than a fund which only invests in just one type of asset.
As with any investment the value can go down as well as up and you may not get back the amount you put in.
The sustainable multi-asset fund range looks to invest in companies that have good plans to deal with some of the biggest challenges facing the world. And invests only in those companies that are sincere and determined to meet those commitments
Firstly, when the experts are looking for places to invest your money they must meet certain criteria. Some don’t even make it through the first filter like controversial weapons or unethical business practises.
To help create a better world while targeting competitive returns, the experts look at environmental factors, things that benefit society and companies with robust controls (for example, fair working conditions). These three areas are known as ‘Environmental, Social and Governance (ESG). The funds investments need to meet the fund managers strict ESG requirements.
A core portion of your money is also invested for impact. These are known as “Positive Impact” holdings. This means it’s invested in companies or other entities that set out to achieve specific and measurable differences to environmental or societal issues. This goes one step further than ESG because there are specific targets and the companies or other entities are held accountable in meeting those targets. They may be things like reducing carbon emissions by a certain amount or providing education to a certain number of pupils.
People have different needs in terms of the risk they’re willing and able to take and the returns they want to aim for.
There is a choice of three funds, so we can recommend a fund that meets your own needs in terms of the risk you are willing to take and the rewards you are aiming for.
M&G Sustainable Multi Asset Cautious Fund – has the lowest volatility limit of 9% (per annum; over a 5yr rolling period) and therefore has the lowest amount invested in assets more likely to be volatile. This means is has the lowest level of risk of the three funds, and lowest potential rewards.
M&G Sustainable Multi Asset Balanced Fund – has a volatility limit of 12% (per annum; over a 5yr rolling period) and has a more even spread invested across the main asset classes. Therefore the Balanced Fund is likely to be more volatile than our Cautious Fund but less volatile than our Growth Fund.
M&G Sustainable Multi Asset Growth Fund – has the highest volatility limit of 17% (per annum; over a 5yr rolling period) and therefore has the highest amount invested in assets more likely to be volatile. This means it has the highest level of risk of the three funds, and the highest potential rewards.
The three funds are all actively managed by experts to try and keep the volatility within the limit specified for each fund. If the fund does fluctuate by any more than the target limit, as these are not guaranteed, the fund manager will take action to bring it back within the guidelines.