M&G has launched its first sustainable corporate bond strategy in collaboration with responsAbility, the Swiss-based asset manager with 20 years’ experience in impact investing.
The M&G (Lux) responsAbility Sustainable Solutions Bond fund is classified as Article 9 under SFDR and has been designed following active engagement with institutional and wholesale investors seeking sustainable active fixed income strategies.
Using M&G’s credit expertise and responsAbility’s impact and sustainable investing experience, the team will select global investment grade bonds that drive positive change in six areas. This includes better health, better work & education, social inclusion, circular economy, environmental solutions and climate action.
Further, investments will be mapped to the UN Sustainable Development Goals (SDGs) according to their contributions. The bonds in the portfolio will either be project financing bonds that fund a project targeting either environmental (green bonds) or social outcomes (social bonds), or a combination of both (sustainability bonds). Or, solution provider businesses that issue bonds by companies that address environmental or social challenges.
The fund will be co-managed by Mario Eisenegger and Ben Lord. responsAbility will act as investment adviser, providing insights across sustainability themes and supporting M&G’s research teams.
Neal Brooks, global head of product and distribution at M&G, said: “This strategy is testament to M&G’s ability to combine its capabilities to create unique investment solutions that play to our strengths in active fixed income and responsAbility’s market-leading impact credentials.
“The M&G (Lux) responsAbility Sustainable Solutions Bond 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.”
Co-manager Eisenegger added: “One of the most effective ways for bond investors to contribute to the 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.”
