M$G Announces Global Sustainable Bond Fund

Published on: 06 June 2022
by KnowESG
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M&G, the leading investment manager, has added to its line-up of ESG-focused investment products by launching a sustainable, global corporate bond fund.

The M&G Sustainable Global Corporate Bond Fund seeks to maximise sustainability outcomes within the context of a global investment-grade bond universe.

According to the corporation, the fund would have a "dedicated allocation to ESG-themed bonds" to improve environmental and social results. Green, social, sustainability, and sustainability-linked instruments will all be covered by bonds.

Ben Lord, M&G's global corporate credit and inflation-linked portfolio manager, will be in charge of the fund. Mario Eisenegger, an ESG and sustainability fund manager, will co-manage the fund.

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 the 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.”

In comparison to a global corporate bond universe, the fund will strive for an ESG quality boost and an enhanced climate profile, according to M&G. It will also ensure that environmental and social safeguards are in place and that ESG quality criteria are followed to prevent losses caused by insufficient risk management.

Jim Leaviss, chief investment officer for public fixed income at M&G, said:

"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. 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.”

Source: Funds Europe

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