M&G, responsAbility Launch SDG-Focused Article 9 Sustainable Bond Fund
UK-based assets manager M&G and its Zurich-based impact investing unit responsAbility Investments announced the launch of the M&G responsAbility Sustainable Solutions Bond Strategy, a new fund aimed at investing in investment grade corporate bonds supporting companies or projects contributing to a series of environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. objectives.
According to the firms, the development of the new fund comes “in response to demand from institutional and wholesale investors seeking actively managed sustainable fixed income strategies.”
Neal Brooks, Global Head of Product and Distribution at M&G, said:
“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.”
The new fund, classified as Article 9 under the EU’s SFDR regulation, will invest in project financing bonds including green, socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and sustainability bonds funding specific environmentalEnvironmental criteria consider how a company performs as a steward of nature. and/or socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. projects, or in bonds issued by companies that actively address problems linked to environmentalEnvironmental criteria consider how a company performs as a steward of nature. or socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. challenges through their core products and services.
Investments by the fund will be mapped to the UN Sustainable Development Goals (SDGs) according to their contributions, and will target bonds that drive positive change in six key sustainability areas including better health, better work & education, socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. inclusion, circular economy, environmentalEnvironmental criteria consider how a company performs as a steward of nature. solutions and climate action.
The fund will be managed by M&G Investments’ fixed income team, including co-managers Mario Eisenegger and Ben Lord, with responsAbility acting as Investment Adviser, providing quality assurance and insights across sustainability themes and supporting the analysis of M&G’s research teams, in addition to serving as a voting member of M&G’s independent Impact, SDG & Solutions Committee.
The launch of the new fund follows the acquisition of responsAbility by M&G in 2022.
Eisenegger said:
“One of the most effective ways for bond investors to contribute to the Sustainable Development Goals is by directly funding environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. 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.”
Stephanie Bilo, Chief Client & Investment Solutions Officer, responsAbility, added:
“We’re very pleased to join forces with M&G’s fixed income team for the first time, capitalising on the strength of our climate research capabilities and contributing to the sustainable focus of the portfolio. This is a great opportunity to combine our expertise and deliver to institutional and wholesale clients alike.”
