M&G has added to its line-up of ESG-focused investment products with the launch of a sustainable, global corporate bond fund.
The M&G Sustainable Global Corporate Bond Fund is designed to optimise sustainability outcomes within a global investment grade bond universe context.
The fund will operate a “dedicated allocation to ESG-themed bonds” and aim the achieve improved environmental and social outcomes, according to the firm. Bonds will cover green, social, sustainability and sustainability-linked instruments.
Manager of global corporate credit and inflation-linked portfolios at M&G, Ben Lord, will manage the fund. Specialist ESG and sustainability fund manager, Mario Eisenegger, will co-manage.
Lord said: “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.”
According to M&G, the fund will aim for an “ESG quality uplift” and an “improved climate profile” compared to a global corporate bond universe.
It will also “ensure environmental and social safeguards are in place” and ESG quality standards are met in order to reduce losses from insufficient management of material risks.
“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,” said Jim Leaviss, chief investment officer for public fixed income at M&G.
“Through collaboration with M&G’s sustainability specialists and our inhouse global credit teams, this strategy is designed to achieve favourable ESG and sustainability outcomes whilst seeking to deliver attractive investment returns.”
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