loading...

M&G Climate Solutions Fund


M&G Climate Solutions Fund


Our focus

The M&G Climate Solutions Fund is designed to deliver both financial returns for investors and a positive impact for the planet. We aim to do this by investing in companies that we believe can deliver solutions to the challenge of climate change.

We focus on three main impact areas – clean energy, green technology and the promotion of a circular economy – that present a breadth of long-term opportunities for investors.

The fund embraces the United Nations Sustainable Development Goals (SDGs), which are a universally recognised articulation of the most pressing challenges facing people and the planet. We look to invest in companies that are making a material, measurable and positive contribution towards any of the six key SDGs that relate to climate change.

While we support the UN SDGs, we are not associated with the UN and our funds are not endorsed by them.

The fund's holdings fall into three clear categories. Click on the buttons below to see an example of the types of companies we have invested in.

Pioneers icon
Enablers icon
Leaders icon

Find out more about the M&G Climate Solutions Fund, choose another Planet+ fund or view our full range of funds.

M&G Climate Solutions Fund

Watch our video to learn how our new fund is investing in solutions to the greatest challenge facing the planet and future generations.

Our investment process

The investment team start by ‘screening out’ companies that are seen as unsuitable for the fund. They exclude companies in breach of the UN Global Compact Principles on human rights, labour, the environment or corruption, as well as those in the business of coal mining or the extraction of oil or gas, among others

Next, the team ‘screen in’ companies that aim to deliver solutions to the challenge of climate change

The resulting shortlist of around 120 companies are analysed further to assess their suitability


To be considered for the fund, companies must have a strong investment case, demonstrate a sense of purpose, and deliver a positive impact for the climate. The timing and price also need to be right.


Our impact areas


Our focus areas chart

Who do we invest in?


Here are just a few of the companies we have invested in, providing solutions for many of the planet's greatest challenges.


Trex

Trex

Trex is a pioneer in the transition towards a circular economy.

View example >
Verbund

Verbund

Verbund is a leader in the production of clean energy.

View example >
ROCKWOOL

ROCKWOOL

ROCKWOOL's innovative insulation enables climate action.

View example >

What are the risks?

Like any investment, you should carefully consider if the M&G Climate Solutions Fund fits with your personal aims and objectives before investing. Importantly, you should also check that the profile of the fund matches your own investment timeframe and appetite for risk and reward. Find out more about the risks you need to consider before investing in our fund overview.

The value of any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.


Meet the investment team


Randeep Somel

Fund Manager - M&G Climate Solutions Fund

Prior to his current role, Randeep joined M&G in 2005 and managed the M&G Global Themes and Managed Growth Funds between 2013 and 2017. He was appointed Associate Portfolio Manager of the M&G Positive Impact Fund in 2019 and is part of the Equity Impact Committee.

Randeep Somel
John William Olsen

John William Olsen

Deputy Fund Manager - M&G Climate Solutions Fund

Prior to his current role, John William joined M&G in April 2014, and was appointed fund manager of the M&G Global Select Fund and M&G Pan European Select Fund in July 2014. He was later appointed deputy manager of the M&G Pan European Select Smaller Companies Fund in July 2016.

Ben Constable-Maxwell

Head of Impact Investing

Prior to his current role, Ben joined M&G in 2003 as an investment specialist within the global equities team. As Head of Sustainable and Impact Investing, Ben leads M&G’s impact strategy and is an industry expert on sustainability issues, from climate change to the circular economy.

Ben Constable-Maxwell


Objective and investment policy


The M&G Climate Solutions Fund aims:

  • To provide a higher total return (the combination of capital growth and income), net of the Ongoing Charges Figure, than the MSCI World Index over any five-year period; and
  • To invest in companies that aim to deliver solutions to the challenge of climate change.

How is the fund invested?
The Fund is a concentrated portfolio of global stocks of usually fewer than 40 stocks, investing over the long term in companies that are delivering solutions to the challenge of climate change alongside a financial return, using a disciplined stock selection process. Sustainability and impact considerations are fundamental in determining the Fund’s investment universe and assessing business models.

All equity securities and equity related securities are subject to assessment and measurement of their ability to deliver solutions to the challenge of climate change and generate financial returns, which is conducted at a company level using M&G’s proprietary impact assessment methodology. This assessment focuses on three criteria:

  • Investment credentials: the quality and durability of the company’s business model and its ability to produce sustainable economic returns;
  • Intention: the company’s purpose as evidenced by the alignment of its mission statement with its corporate actions and strategy; and
  • Impact: the scale of the net climate impact and the company’s progress towards addressing the challenge of climate change.

The Fund invests in three categories of climate solution companies:

  • "Pioneers", whose solutions have a transformational effect on the challenge of climate change;
  • "Enablers", which provide the tools for others to deliver solutions to the challenge of climate change; and
  • "Leaders", which spearhead the development of climate change solutions within their industries.

Investing in these categories provides diversification across industries and maturity of business models.

The Investment Manager embraces the United Nations Sustainable Development Goals framework and invests in companies focused on areas such as clean energy, green technology and the promotion of a circular economy.

The Fund’s benchmark
The benchmark is a target for the Fund’s financial objective and is used to measure the Fund’s financial performance. The MSCI World Net Return Index has been chosen as the Fund’s benchmark as it best reflects the scope of the Fund’s investment policy. The index has been chosen as the Fund’s benchmark as it best reflects the financial aspects of the Fund’s investment policy. The benchmark does not constrain the Fund's portfolio construction. The Fund is actively managed. The Fund manager 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.


Monitor icon

What are equities?

Take a look at our M&G Guide to equities to find out more about how equities work, how they compare to other asset classes such as bonds or property, and if they could be right for you and your investment needs right now.

Read our guide >

Book address icon

Looking for financial advice?

For objective financial advice on all of our products and services, we recommend that you speak to a financial adviser. Here you can find a financial adviser if you don’t already have one.

Find an adviser >



What are the risks of investing in this fund?


Information icon

Before you invest it’s important to remember that all investments carry the chance of losses, of course, but the risks always relate to what it is you’re investing in.

The value and income from the M&G Climate Solutions Fund’s assets will go down as well as up. Ultimately this will cause the value of your investment to fall as well as rise and there is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

This fund also invests in emerging markets which involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. In addition, there may be difficulties in buying, selling, safekeeping or valuing investments in such countries. The fund can also be exposed to different currencies - movements in currency exchange rates may adversely affect the value of your investment.

The fund holds a relatively 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.

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. Operational risks arising from errors in transactions, valuation, accounting, and financial reporting, among other things, may also affect the value of your investments.

For more information on risks, see the Prospectus and Key Investor Information Document.