Objective and investment policy
The fund 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
- 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, across any sector and of any size, from anywhere in the world , including emerging markets. 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.
Other investments: The fund may invest in other funds (including funds managed by M&G) and cash or assets that can be turned into cash quickly.
Derivatives: The fund may use derivatives to reduce the risks and costs of managing the fund.
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.
Benchmark: MSCI ACWI Net Return Index
The benchmark is a comparator against which the fund’s performance can be measured. It is a net return index which includes dividends after the deduction of withholding taxes. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction.
The fund is actively managed.The fund has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.
For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.
You can find more information about the objective and investment policy of the fund in the Prospectus.
Risks associated with the fund
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.
Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
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.
The performance webpage for this fund is currently being reconfigured.