M&G launches sustainable multi-asset fund range

M&G Investments has launched a range of retail multi-asset funds which combine adherence to high ESG standards, impact investment and volatility management.

The M&G Sustainable Multi Asset fund range aims to deliver attractive total returns, within explicit volatility limits, while also making a positive contribution to the climate and society.

Clients' money is invested in assets with strong ESG credentials, identified with the support of propriety analysis developed by M&G's stewardship and sustainability team and external providers.

Across asset classes, sustainable investing can contribute to build a more resilient society."

Part of each fund's portfolio will be directed towards impact - investments with the explicit aim to address one or more global environmental and/or social challenges.

The range has three individual funds to suit different risk tolerances: Cautious, Balanced and Growth.

Maria Municchi, fund manager of the M&G Sustainable Multi-Asset range, said: "Across asset classes, sustainable investing can contribute to build a more resilient society. Many customers want their long term savings to produce good financial returns and make a positive contribution to the planet.

"This new family of funds aims to meet this demand, while allowing customers and their advisers to align their fund choice with their individual risk tolerance - as defined by appetite for market volatility."

All three funds combine strategic and tactical asset allocation, within a well-defined risk framework. They aim to deliver consistent sustainable outcomes via:

A core holding of positive impact assets (between 20 and 50%) - following M&G's Positive Impact team's established framework which analyses the investment case, intention and positive impact contribution of each potential holding.

A climate focus - through a combination of sector exclusions, engagement and an understanding of how companies acknowledge and manage their carbon emissions.

A preference for investing in direct holdings to better control the ESG quality, while maintaining the ability to actively allocate capital across asset classes globally - including equities, bonds and alternatives.
A sustainable and impact annual report aligned to the UN's Sustainable Development Goals framework.

Fund features	Cautious	Balanced	Growth
Maximum Volatility p.a. over a 5yr rolling period	9%	12%	17%
Sector	IA Volatility Managed	IA Volatility Managed	IA Volatility Managed
Typical Equity Allocation Range	0-35%	20-60%	55-100%
Comparator Benchmark	IA Mixed Investment 0-35%	IA Mixed Investment 20-60%	IA Flexible Investment
MSCI ESG Rating (expected)	A-AA	A-AA	A-AA
Carbon Intensity (expected)	Below MSCI AC World	Below MSCI AC World	Below MSCI AC World
Positive Impact Exposure	20% to 50%	20% to 50%	20% to 50%