M&G said it will introduce an additional set of ESG exclusions to its M&G (Lux) Optimal Income fund managed by Richard Woolnough.
The fund will expand its sector-based Environmental, Social and Governance (ESG) exclusions to companies involved in arctic drilling and oil sands extraction, adult entertainment, gambling and tobacco. Involvement will be determined by assessing whether companies generate revenue from the prohibited activities in excess of stated thresholds.
Following its classification as Article 8 under the Sustainable Finance Disclosure Regulation last year, the fund will maintain its positive ESG tilt and will continue to provide investors with a weighted average ESG score above that of its benchmark, M&G said. The fund’s financial investment objective and approach will be unaffected by the introduced changes.
Review continues
“We continue to thoroughly review our Sicav range to ensure we meet the evolving needs of our clients and to enhance the ESG characteristics of many of our strategies wherever possible, as evidenced through the increasing number classified as Article 8 and 9 under SFDR,” said Micaela Forelli, Managing Director Europe at M&G, in a statement.
The new exclusion criteria will be effective from Friday 30 June 2023, after portfolio realignment.
The changes will align the fund with increasing investor demand for more sustainable solutions. The firm said they reflect M&G’s commitment to grow its range of ESG-enhanced, sustainably-focused and impact funds, in order to offer our customers more options for their investments.
Related articles on Investment Officer Luxembourg:
- M&G prepares Luxembourg hub for growth in Europe
- Stefano Amato to co-manage M&G Income Allocation Fund