M&G (Lux) Climate Solutions Fund


Price (23.11.2020)

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Objective and investment policy


The fund aims to:< /br> • Invest in companies that deliver solutions to the challenge of climate change; and< /br> • Provide a combination of capital growth and income to deliver a return that is higher than the global stock market over any five-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested in the shares of companies, across any sector and of any size, from any developed market. The fund is concentrated and usually holds shares in fewer than 40 companies.

All companies are assessed on their investment credentials and ability to deliver solutions to the climate change challenge, based on M&G’s proprietary impact assessment methodology. To assist this assessment companies deemed to conflict with the fund’s aim are excluded, such as those involved in the extraction of thermal coal, oil and gas, and fracking. Also excluded are companies deemed to be in breach of the UN Global Compact principles and/or involved in industries such as tobacco, controversial weapons and nuclear power.

Other investments: The fund may invest up to 20% in the shares of emerging market companies. The fund may also invest in other funds (including funds managed by M&G) and cash or assets that can be turned into cash quickly.

Derivatives: The fund may use derivatives to reduce the risks and costs of managing the fund.

Strategy in brief: The fund invests over the long term in companies delivering solutions to the climate change challenge alongside a financial return.

Sustainability and impact considerations are fundamental in the stock selection process. The fund embraces the UN Sustainable Development Goals framework and invests in companies focused on areas including clean energy, green technology and the promotion of a circular economy.

Benchmark: MSCI World Net Return Index

The benchmark is a comparator against which the fund’s performance can be measured. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s financial objective. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction.

 The fund is actively managed. The fund manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.

For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.

You can find more information about the objective and investment policy of the fund in the Prospectus.

Further information about M&G’s ESG criteria applied to the fund can be found on the M&G website as well as the Annual Impact Report as a measurement of the fund’s non-financial objective.

Risks associated with the fund

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.

In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

Operational risks arising from errors in transactions, valuation, accounting, and financial reporting, among other things, may also affect the value of your investments.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Fund Team

John William Olsen

John William Olsen - Deputy Manager

John William Olsen, a Danish national, has been the manager of the M&G Positive Impact strategy since launch in November 2018. He joined M&G in April 2014 and was appointed manager of the M&G Global Select and M&G Pan European Select strategies in July 2014 and, two years later, deputy manager of the M&G Pan European Select Smaller Companies strategy. John William joined M&G from Danske Capital, where from 2002 he had managed non-domestic equity portfolios, including the Global Stock Picking, Global Select and European Select strategies. He joined Danske Capital in 1998 as a fund manager on the domestic Danish equities team, and in 2000 also became a global sector analyst focusing on technology and telecommunications stocks. John William gained a BA in business economics and then an MSc in finance and accounting from Copenhagen Business School.

For Professional Investors only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. Content should therefore be shared responsibly with other investment professionals. The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.