M&G is expanding its range of sustainable investment funds with the launch of the M&G Sustainable Global Corporate Bond Fund (“the Fund”). The strategy is designed to maximise sustainability outcomes within the context of a global investment grade bond universe.
This is the firm’s Public Fixed Income division’s first global corporate bond fund to utilise its dynamic and value-driven investment approach, while putting sustainability factors at the core of the proposition. The Fund will aim to drive positive environmental and social outcomes through a dedicated allocation to ESG-themed bonds. This includes investments in green bonds, social bonds, sustainability bonds or sustainability linked bonds.
The Fund aims for an ESG quality uplift as well as an improved climate profile compared to the investment universe of the global corporate bond market. Further, the fund ensures environmental and social safeguards are in place and minimum ESG quality standards are established to reduce the risk of unexpected revenue loss or business disruption related to insufficient management of material environmental, social or governance (ESG) risks.
Ben Lord, manager of global corporate credit and inflation-linked portfolios, is manager of the strategy, with Mario Eisenegger, a manager specialising in ESG and sustainability, deputising. The Fund is supported by the firm’s in-house global credit research capability, stewardship and sustainability specialists and its dedicated fixed income dealing desk.
Launching or evolving investment strategies to deliver more sustainable outcomes is a key part of M&G plc’s sustainability plans, which includes achieving net zero carbon emissions across its investment portfolio by 2050 at the latest.
Jim Leaviss, Chief Investment Officer, Public Fixed Income, says: “Investors can use their influence to drive change in corporate behaviour by engaging with companies and channelling capital to those seeking solutions to environmental and social challenges. The launch of this strategy is a natural evolution to our range given our long history and experience in public fixed income investing. Through collaboration with M&G’s sustainability specialists and our in-house global credit teams, this strategy is designed to achieve favourable ESG and sustainability outcomes whilst seeking to deliver attractive investment returns.”
Ben Lord, manager of the M&G Sustainable Global Corporate Bond Fund, says: “This strategy enables us to pursue a value-based and dynamic investment style seeking to generate financial performance for clients throughout the economic cycle, while making sure sustainability factors are kept at heart of the proposition. Identifying attractively priced ESG-themed bonds or companies that act as enablers or solution providers helping to address some of the biggest sustainability challenges we face on our planet is a key focus of the Fund.”