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Responsible Investing at M&G

Responsible investing at M&G

At M&G Investments, we have been investing money for individual and institutional clients for more than 85 years and our principles of investing for the long-term, responsible stewardship of our assets and active fund management have been the foundation of our approach throughout.

We consider it our responsibility to support our customers’ investment and savings goals by aiming to generate sustainable returns over the long term. We also recognise that, increasingly, customers are looking to align their investments with their environmental and social values and have a range of funds that can help meet this need.

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.

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M&G’s approach to responsible investment: common principles

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Integration

We explicitly and systematically include Environmental, Social and Governance (ESG) issues in investment analysis and investment decisions, where these are meaningful to risk and potential return. At a portfolio level, our investment decisions include consideration of all material factors, including ESG factors, and we also conduct regular ESG reviews of portfolios.

inclusive thinking
Inclusive thinking

We believe that the consideration of ESG factors is a much more complex and nuanced process than simply screening out companies or industries perceived to be unsavoury.

engagement and voting
Engagement and voting

We undertake constructive engagement with management of companies and organisations that aims to better understand ESG strengths and weaknesses and, where appropriate, encourage better ESG practices.
To build on this analysis and engagement activity, we are developing a voting approach that integrates an assessment of climate performance more structurally into our voting decisions for all companies.  

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Consistent structure; flexible implementation

At M&G we do not impose ‘top down’ house views and we do not manage by consensus. Indeed, individual investment teams have the autonomy, flexibility and experience to design and implement investment processes in a manner they consider most appropriate to their investment strategy and their customers.

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ESG product framework at M&G

Impact

Funds aim to invest in companies that deliver material, measurable positive societal impacts by addressing the world’s major social and environmental challenges, while seeking to generate competitive economic returns.

Sustainable

Funds are those where the investment universe is driven by sustainability themed considerations, which might include climate change mitigation, pollution prevention, sustainability solutions and approaches that address one or more of the UN Sustainable Development Goals (SDGs).

ESG Plus

Funds have a clear, documented ESG objective, ESG outcome or are managed in accordance with ESG criteria applied by the manager.

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A selection of our ESG Range of Funds

M&G Equities Range - Expertise Matters

Impact funds

M&G (Lux) Positive Impact Fund

The fund aims to provide a combination of capital growth and income to deliver a return that is higher than the global stock market over any five-year period; and invest in companies that have a positive impact on society through addressing the world’s major social and/or environmental challenges.

M&G Equities Range - Expertise Matters

Sustainable funds

M&G (Lux) Sustainable Allocation Fund

The funds’ investment universe is defined by sustainability themed considerations. The funds may apply Best-in-Class and may include an Impact component.

M&G Equities Range - Expertise Matters

ESG Plus

M&G (Lux) Global High Yield ESG Bond Fund

M&G (Lux) Emerging Markets Corporate ESG Bond Fund

M&G (Lux) Global Select Fund

M&G (Lux) Pan European Select Fund

The funds include additional exclusions and apply a Best-in-Class approach, to either identify sector leading companies or to exclude laggards.

M&G Equities Range - Expertise Matters

ESG Integrated Funds

M&G Fixed income, equity and property funds

All other M&G fixed income, equity and property funds integrate ESG factors and apply the company-wide cluster munitions and anti-personnel landmines exclusion policy. Some strategies may have additional exclusions.

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Further explanations

ESG Integration

ESG integration underpins a responsible investment approach, and allows investors to better manage risk and potentially generate sustainable, long-term returns.

Best-in-Class overlay

Best-in-Class approaches can vary from selecting from among the best performing companies to excluding the worst performing relative to peers, based on analysis of ESG factors.

Exclusion

Exclusions are negative screens that remove companies from the investment universe, based on involvement in an undesirable activity or sector.

Stewardship

The responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.

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Related insights

Sustainable and Responsible Investing at M&G

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M&G Investments’ approach to Climate Change

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For Investment Professionals only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. Content should therefore be shared responsibly with other investment professionals. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.