ESG Fund Factsheet

For adviser use only

M&G Sustainable Multi-Asset

Classification: Sustainable
Management style: Active

Introduction

The M&G Sustainable Multi-Asset range consists of three risk-targeted funds aiming to maximise total return whilst limiting the volatility within a specified range.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
M&G Sustainable Multi-Asset Cautious 8/12/2020 Volatility Managed 0.65% £23.1
M&G Sustainable Multi-Asset Balanced 8/12/2020 0.65% £40.3
M&G Sustainable Multi-Asset Growth 8/12/2020 0.65% £21.9

About M&G Investments

M&G Investments is a global asset manager, serving customers and clients for nearly 90 years since launching Europe’s first ever mutual fund back in 1931.

They’re part of M&G plc, a family of brands, all aligned behind the same ambition: to manage customers’ investments so that they can live the life they want, while aiming to make the world a little better along the way.

They believe it’s their financial decisions that have the greatest potential to effect the change in the world we all want to see. The future is ours to create, for our families, our communities and our planet. Now is the time to look forward, to take control and to act.

Through long-term active investment management, they build solutions around what matters most to their customers and clients. They look for the best opportunities to invest in, across a wide range of asset classes, on behalf of people who care how their money is invested.

Assets under management*

£85.3m

Total Assets in Sustainable Multi-Asset Fund Range

*As at 31/07/2022

ESG Process

The funds use a sustainable investment approach where the fund manager select companies that meet their ESG criteria. They actively engage with companies the create greater transparency and ESG reporting.

M&G construct their portfolios based on two factors:

1. Positive ESG Tilt:

2. Positive Impact Allocation:

MSCI ESG Ratings – For equity & corporate Bond, they must have an MSCI ESG rating of at least BBB. Wherever possible they are then also assessed using M&G’s internal ESG scorecard.

Positive Screening

M&G aim to invest a minimum of 20% in positive impact companies. The company’s selected for this have to pass their assessment based on the iii framework (investment, intention, impact)

Investment – assess the company’s quality by focussing on opportunities and threats. Considerations include: business model quality, competitive positioning, business risk & liquidity.

Intention – they aim to understand the intention behind the instrument/product issued by the company.

Exclusion Policies

This includes negatively screening out sin stocks that breach UN Global Compact Principles and producers of:

  • Tobacco
  • Alcohol
  • Adult entertainment
  • Gambling
  • Thermal Coal
  • Controversial Weapons

Companies in the oil & gas extraction and power generation sectors are also restricted.

Key Themes

M&G’s key themes include:

  • Climate focus
  • Improve carbon intensity
  • Improve climate adaptability

Cost

The average OCF over the full range and share classes is 0.65%. This is highly competitive* against some of the alternatives for an actively managed ESG fund range.

*based on a comparison of the average cost of a range of select multi asset active ESG funds

Investment Performance

The funds have only been in existence since 2020 and therefore the performance is only available over a short period. Since inception all three of the funds are underperforming the sector average.

Source FE Analytics 26/08/2022

Past performance is not a reliable indicator of future performance.

Platform availability

M&G Multi-Asset funds are available on the following platforms:

  • Aviva
  • Abrdn Wrap
  • Abrdn Elevate
  • Advance – Embark
  • Embark
  • M&G Wealth
  • James Hay

Risk tools

M&G Multi-Asset funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • Synaptic

Supporting documents

Tenet Opinion

This range of sustainable funds is a relatively new launch from M&G but sustainable investing has been in M&G for much longer.

At a company level, they are members of various sustainable organisations and have a wealth of experience. The funds primary goal is to focus on environmental issues and include companies within the portfolios that are actively making a positive impact in this area.

For clients with strong preferences to encouraging climate change, the M&G funds should be considered.  They may not be suitable for very cautious or more adventurous clients as the asset allocations of the three funds focus on the medium risk area.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).