ImpactAlpha, November 27 – London-based M&G Investments, which has roughly $365 billion in assets under management, is launching a public equities impact fund for its clients.
The investment firm is using the nearly 2,500 global stocks in the MSCI All Countries World index as the basis for the fund, Portfolio Advisor reported. M&G is targeting a portfolio of 30 to 40 stocks, based on metrics identified by M&G’s Positive Impact fund team. The fund is likely to be weighted by mid-size and emerging market stocks.
“In many cases, the emerging market companies have a clearer intention because they operate in countries where there are social issues and they have a social responsibility,” M&G’s John William Olsen said. The fund will also lean on mid-size companies with a market capitalization above $500 million, where Olsen says he finds companies innovating in social impact.
M&G’s impact equities strategy is targeting “companies that are already having an impact on society rather than attempting to influence companies to change.” By contrast, similar public equities strategies that have launched recently, like UBS’s “ESG Engagement Equities,” target companies where engagement could lead to improved social or environmental outcomes.