M&G Investments (M&G) has unveiled a new dual purpose equity strategy, that will aim to provide attractive investment returns alongside solutions to the challenges posed by man-made climate change.
Managed by Randeep Somel, the M&G Climate Solutions Fund is responsible for a concentrated portfolio of 30 companies diversified around clean energy, green technology and promotion of the circular economy.
The fund follows the same investment approach and process as M&G’s Positive Impact strategy, which is managed by John William Olsen and responsible for £306m of assets. Mr Olsen will now also act as deputy for the Climate Solutions Fund.
The Positive Impact team will also define the investible universe for the fund. Led by Ben Constable-Maxwell, the team reaches its consensus on the impact of all potential investments by undertaking a three-point analysis covering the investment case, intentions and impact of each company.
Investible companies within the strategy are defined as pioneers, enablers or leaders.
Pioneers refers to products or services that M&G believes will have a transformational effect on society or the environment, while enablers are holdings that the asset manager thinks can provide opportunities for positive social and environmental impact. Leaders refers to companies that can spearhead sustainability efforts in their industries.
M&G will annually report each company’s net positive climate impact and revenue alignment with climate-related UN Sustainable Development Goals.
Explaining the purpose of the fund, Mr Somel said: “The green agenda and the need to provide solutions to the challenge of climate change has unlocked the creativity and ingenuity of many companies who have these solutions at the heart of what they do. This is a multi-decade opportunity for companies who deliver innovative products and services – and for those who invest in them.”
Ben Constable-Maxwell, head of sustainable and impact investing, felt this fund would give investors the chance to put their intentions into action.
He said: “As the world focuses on the scale of the sustainability challenges faced by our planet, positive impact finance has an opportunity to put financial firepower behind pioneering businesses providing solutions to those challenges. This fund provides our customers with the opportunity to address the climate emergency while putting their savings to work with a purpose."
