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Sustainable Investing Transcript

Understanding sustainable multi asset investing


While investors still aim to generate attractive returns they increasingly recognise the power that their investment decisions can have to address global issues. At M&G we have the ability to identify attractive investments that drive progress and help to build a better future for our world.

We aim to grow our investors capital over the long term by applying our longstanding multi asset investment process to sustainable investing. We start by analysing a global investment universe and strategically positioning the portfolio in assets where we find value. We then search for behavioural opportunities to dynamically allocate capital. These can arise when markets fall victim to human emotions such as fear, greed or panic and ignore the long term, creating opportunities for us to generate returns. We only invest in companies, governments or organisations that meet our ESG standards. ESG investing describes an approach that incorporates Environmental, Social and Governance factors into decision-making.

Companies included in industries such as the production of tobacco and controversial weapons are excluded. We also invest in companies that can demonstrate a positive impact on society. This includes those which actively contributes to the UN sustainable development goals, such as building sustainable cities and communities around the world. A sustainable approach to investing gives you the power to choose whether your investments will make a difference. Sustainable multi asset investing, making your investments matter.

The views expressed in this document should not be taken as a recommendation, advice or forecast. Please remember that we are unable to give financial advice. If you are unsure about the suitability of any investment, please speak to a financial adviser.

Please remember, 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.

Glossary of terms


Alternatives:

Alternatives cover a range of non-traditional investment assets that are typically included in a portfolio to provide diversification and potentially enhance returns for investors. Alternatives include so-called ‘real’ assets, like commercial property and infrastructure, as well as strategies like private equity.


Assets:

Anything having commercial or exchange value that is owned by a business, institution or individual.


Bonds:

A loan in the form of a security, usually issued by a government or company. It normally pays a fixed rate of interest (also known as a coupon) over a given time period, at the end of which the initial amount borrowed is repaid.


Capital:

Refers to the financial assets, or resources, that a company has to fund its business operations.


Equities:

Shares of ownership in a company. They offer investors participation in the company’s potential profits, but also the risk of losing all their investment if the company goes bankrupt.