There is a spectrum of approaches to responsible investment, from simply excluding companies in certain sectors or industries, to explicitly targeting a positive social and environmental impact.
M&G has recently launched two funds that look to align long-term financial returns with sustainability and impact goals: the M&G Sustainable Multi Asset Fund and the M&G Positive Impact Fund.
Despite having this common starting point, the two funds offer distinctive investment propositions. There are important differences between them, explained below, which will determine whether they might be suitable for your aspirations and needs.
Sustainable vs impact investing
Sustainable approaches look to make investments that contribute towards a more sustainable future for society and the planet.
Impact investing is where we invest in companies that have the explicit intention of addressing a range of societal and environmental issues the world is facing, while giving equal weight to healthy financial returns.
At M&G, we believe there can be compelling long-term investment opportunities where companies deliver wider benefits through their activities. This should help to improve the sustainability of investments, as well as the sustainability of the planet.
We believe sustainable and impact investing should be open to all investors, regardless of the amount they invest. These two distinctive approaches, whose key characteristics are summarised in the table below, help make responsible investment accessible to everyone.
Before considering investment in any fund, please ensure you have read an up-to-date version of the Key Investor Information Document (KIID), which has a summary of the main risks relating to each fund. If you are unsure about the suitability of an investment, you should speak to a financial adviser.
We would like to remind you that M&G is unable to give financial advice. The views expressed in this document should not be taken as a recommendation, advice or forecast.
You can find more information about either, and about any other fund in our range, on the M&G website. It is important that any investments are suitable for your goals and circumstances. Remember, there is no guarantee that funds will achieve a positive return over any period, and you may get back less than you originally invested.