M&G Investments has launched a fund that will aim to generate returns using environmental, social and governance (ESG) principals, via multi-asset investments.
The fund aims to generate a return of 4 to 8 per cent over a five-year period.
The M&G Sustainable Allocation fund is managed by Maria Municchi and supported by deputy fund manager Steven Andrew.
The fund invests in a diversified range of asset classes from anywhere in the world including emerging markets with net allocation ranges of 20 to 80 per cent in fixed income, 20 to 60 per cent in equities and zero to 20 per cent in other assets.
Companies that do not comply with the UN's Global Compact principals will be "screened out".
Andrew Watson, head of UK wholesale sales at M&G, said: "The M&G Sustainable Allocation fund offers investors a unique proposition; a flexible multi-asset portfolio using the asset allocation expertise of M&G's multi-asset team, coupled with a sophisticated ESG approach for a sustainable outcome.
"We are actively expanding our range of ESG-focused investment strategies to meet the growing demand for funds that offer strong returns, whilst allowing clients to align their investments more closely to their environmental and social values.
"Multi-asset offers a unique risk/return proposition and is ideally-suited to a dynamic ESG fund where sustainability and positive impact investing are key features."
Patrick Connolly, head of communications at advice firm Chase De Vere, said M&G are big proponents of environmental, social and governance (ESG) investments.
He said: "M&G have strength in this area as well as in asset allocation and managing different asset classes.
"This could therefore be a reasonable choice for clients who are looking for an all-in-one investment solution and who want to combine ESG factors with the potential for consistent long-term returns."
david.thorpe@ft.com
