November 30, 2018
DUE DILIGENCE Alert: LOW
Event: M&G Investments offers new equity impact fund in the UK.Briefing Points: i) M&G Investments’ new fund’s selections will come from the MSCI All Country World Index of 2500 global stocks of companies operating in “countries where there are social issues,” ii) the fund will invest in companies that aim to address social and environmental issues – decided by following the United Nations Sustainable Development Goals (SDGs). These are targets that aim to end poverty, protect the planet and create peace and prosperity, and iii) the fund will be comprised of 30 to 40 stocks meeting M&G’s Positive Impact team’s mission of targeting “companies that are already having impact on society
COMPETITIVE Alert: 4
Affected Fund(s): M&G Impact Equities StrategyAsset Classes: Global & Emerging Equities
Management Company: M&G Investment Management, Ltd. (London, UK)
DD Concern: Overweight or concentration, shift or tilt to ESG positions
Marketing Considerations: The manager’s focus on the UN’s SDGs and companies offering potentially large impacts in countries with “social issues” aligns with rising interest in the UK in principles-based investing. A recent survey by finance firm Boring Money found the majority of investors in the UK thought impact investing in healthcare and green energy was important. But the survey also showed that concerns about giving up returns still polarized investors and was not necessarily falling away. If successful, this could also be a potential selling point both for non-US and US markets.