M&G has launched five risk rated multi-asset funds focused on ESG, called PruFund Planet.
PruFund Planet 1-5 have been developed using a £500m allocation from the £145bn with-profits fund and will invest in opportunities offering “high-impact” solutions to ESG challenges.
M&G said in a statement today (July 26) that it expects the range to deliver similar long-term growth to the existing PruFund range, at the same cost to customers.
The range will initially be available through M&G’s retirement account for financial advisers, with Isa and bond versions available next year.
David Macmillan, chief customer and distribution officer at M&G, said: “With environmental and social issues hitting the headlines every day, our latest...research shows that almost half of advisers said their clients would like to consider ESG/sustainable investing more, but need support in going about it.
“That’s where PruFund Planet comes in. Not only does it meet a real and growing need for advisers whose clients, particularly in retirement, are increasingly looking for a smoothed investment journey, it seeks to make a positive difference to the planet without sacrificing expected investment returns.”
The funds will be invested across private and public markets, all major asset classes and geographic regions.
Investors in PruFund Planet will receive “smoothed” returns over the medium to long-term to reduce the impact of short-term volatility.
Pru's The Power of Advice report found the pandemic had fuelled the appetite for sustainable investments for one in two (51 per cent) investors.
Asking 200 advisers in July the firm found almost half (46 per cent) of advisers said clients had an appetite for ESG investing but would need support in going about it, with 17 per cent saying they felt their clients saw the category as being ‘too complicated to consider’.
About a third (37 per cent) of advisers told Pru they recognised their role as one of the primary drivers of influence in this field.