M&G (Lux) Positive Impact Fund

Objective and investment policy

Objective

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

Investment policy and strategy

Core investment: At least 80% of the fund is invested in the shares of companies from anywhere in the world (including emerging markets), across any sector and of any size. The fund is concentrated and usually holds shares in fewer than 40 companies.

Companies are assessed on their investment credentials and ability to deliver positive social and/or environmental impact, based on M&G’s impact assessment methodology. Companies that are deemed to be in breach of the United Nations Global Compact principles and/or involved in industries such as tobacco, controversial weapons or nuclear power or coal-fired power are excluded from the investment universe.

Use of derivatives: Derivatives may be used to manage risks, reduce costs and to manage the impact of changes in currency exchange rates on the fund’s investments.

Strategy in brief: The fund invests over the long term in companies that make a positive social and/or environmental impact alongside a financial return. Sustainability and impact considerations are fundamental in the stock selection process. The fund embraces the United Nations Sustainable Development Goals framework and invests in companies focused on areas including climate action, pollution reduction, education and working conditions.

Performance comparator: The fund is actively managed. The MSCI ACWI Net Return Index is a point of reference against which the performance of the fund may be measured.

Risks associated with the fund

The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.

Changes in currency exchange rates will affect the value of your investment.

This fund holds a relatively small number of investments and, as a result, may experience larger price rises and falls than a fund which holds a larger number of investments.

The fund will invest in emerging markets which are generally smaller, more sensitive to economic and political factors, and where investments are less easily bought and sold. In exceptional circumstances, the fund may encounter difficulties when selling or collecting income from these investments, which could cause the fund to incur a loss. In extreme circumstances, it could lead to the temporary suspension of dealing in shares in the fund.

Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.

Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.

Other information

The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.

Fund Team

John William Olsen

John William Olsen - Fund manager

John William Olsen, a Danish national, joined M&G in April 2014, and was appointed fund manager of the M&G Global Select Fund and M&G Pan European Select Fund in July 2014. He was later appointed deputy manager of the M&G Pan European Select Smaller Companies Fund in July 2016. John William joined M&G from Danske Capital, where from 2002 he had managed non-domestic equity portfolios, including the Global Stock Picking and Global Select equity funds, and also the European Select strategy. He joined Danske Capital in 1998 as a fund manager on the domestic Danish equities team, and in 2000 also became a global sector analyst focusing on technology and telecommunications stocks. John William gained a BA in business economics and then an MSc in finance and accounting from Copenhagen Business School.

 Team member biography
Jasveet Brar

Jasveet Brar - Deputy Manager

Jasveet Brar was appointed Deputy Fund Manager for the M&G Positive Impact Fund and M&G (Lux) Positive Impact Fund in January 2019. Jasveet started his career with M&G as part of the graduate scheme in September 2011. In December 2012, he joined the M&G Equity team as a dedicated analyst with the Select franchise, leading on environmental, social and governance (ESG) analysis and company engagement. Jasveet graduated from University College London with a first class honours BSc in mathematics. 

 Team member biography

Veronique Chapplow - Investment specialist

Véronique Chapplow is Investment Specialist for M&G’s Select Franchise. Prior to joining M&G, Véronique worked as product specialist at Zadig Asset Management for two years and Deutsche Bank for six years, servicing institutional equity clients specialised in the insurance sector. Before this, she worked at GAM, initially in the capacity of equity analyst before becoming deputy fund manager of GAM’s European Equity Funds. Véronique started her career at NatWest Securities as equity analyst covering the oil and gas sector. She is an Associate member of the Institute of Management and Research, the precursor of the CFA Institute. Véronique graduated from French business school EPSCI and obtained an MBA from Heriot Watt University.

 Team member biography

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