Investment manager M&G has launched its first sustainable corporate bond strategy in collaboration with responsAbility, a Swiss-based impact-investing focused asset manager acquired by M&G in 2022.
The M&G (Lux) responsAbility Sustainable Solutions Bond Fund, classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation, has been designed for institutional and wholesale investors seeking sustainable active fixed income strategies.
The team will follow a fundamental credit strategy, building a diversified portfolio of global investment-grade bonds focused on six key areas: better health, work & education, social inclusion, circular economy, environmental solutions, and climate action. Investments will align with the UN Sustainable Development Goals.
The portfolio will include project financing bonds, such as green, social or sustainability bonds targeting specific environmental or social outcomes, as well as bonds from solution provider businesses addressing environmental or social challenges through their core products and services.
Read the Funds Europe Carbon Impact Research Report for 2024 offering an overview of how European asset management firms are tackling decarbonisation and where the firms stand on the net-zero map.
The fund will be co-managed by Mario Eisenegger and Ben Lord from M&G’s global fixed income division, with responsAbility as Investment Adviser, offering sustainability insights and supporting M&G’s research. responsAbility will also serve as a voting member of M&G’s Impact, SDG & Solutions Committee.
Neal Brooks, global head of product and distribution at M&G, said: “The fund has been tailored to meet demand from pension funds, insurance companies and wholesale investors in Europe looking to align active public fixed income portfolios to positive change.”
Mario Eisenegger, fund manager, added: “One of the most effective ways for bond investors to contribute to the UN Sustainable Development Goals is by directly funding environmental and social projects and providing financing to businesses that make a meaningful, positive contribution to the planet or society through their underlying business models. This fund does exactly that, giving the team a clear mandate to be laser-focused on these urgent priorities when putting our clients’ money to work.
The fund’s global reach and flexibility enhance portfolio construction by expanding credit selection opportunities, improving diversification, and enabling access to emerging sustainable solutions worldwide, he added.
