The fund has two aims:
- To provide a combination of capital growth and income to deliver a return that is higher than the global stockmarket over any five-year period; and
- To invest in companies that have a positive impact on society through addressing the world’s major social and/or environmental challenges
Investment policy and strategy
Core investment: At least 80% of the fund is invested in the shares of companies from anywhere in the world (including emerging markets), across any sector and of any size. The fund is concentrated and usually holds shares in fewer than 40 companies.
Companies are assessed on their investment credentials and ability to deliver positive social and/or environmental impact, based on M&G’s impact assessment methodology. Companies that are deemed to be in breach of the United Nations Global Compact principles and/or involved in industries such as tobacco, controversial weapons or nuclear power or coal-fired power are excluded from the investment universe.
Use of derivatives: Derivatives may be used to manage risks, reduce costs and to manage the impact of changes in currency exchange rates on the fund’s investments.
Strategy in brief: The fund invests over the long term in companies that make a positive social and/or environmental impact alongside a financial return. Sustainability and impact considerations are fundamental in the stock selection process. The fund embraces the United Nations Sustainable Development Goals framework and invests in companies focused on areas including climate action, pollution reduction, education and working conditions.
Performance comparator: The fund is actively managed. The MSCI ACWI Net Return Index is a point of reference against which the performance of the fund may be measured.
Risks associated with the fund
The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.
Changes in currency exchange rates will affect the value of your investment.
This fund holds a relatively small number of investments and, as a result, may experience larger price rises and falls than a fund which holds a larger number of investments.
The fund will invest in emerging markets which are generally smaller, more sensitive to economic and political factors, and where investments are less easily bought and sold. In exceptional circumstances, the fund may encounter difficulties when selling or collecting income from these investments, which could cause the fund to incur a loss. In extreme circumstances, it could lead to the temporary suspension of dealing in shares in the fund.
Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.
Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.
The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.