M&G Investments has launched a global high yield fund with ESG screening.
The new strategy, which is co-managed by James Tomlins and Stefan Isaacs, will invest a minimum of 80 per cent of its assets in global high yield bonds across issuers, geographies and sectors.
The managers will use a three-phase screening process to incorporate environmental, social and governance considerations. This includes filtering out companies in breach of the United Nations Global Compact principles, excluding companies that are funded by tobacco, alcohol, adult entertainment, gambling, thermal coal, defence and weapons, and using MSCI ESG ratings.
Tomlins says: “Using our expertise in credit analysis, we have built a diversified high yield portfolio which applies an ESG screen to the global high yield market in a consistent and measurable way.
“Focusing on negative screening and ESG integration, the fund strikes the right balance between being able to express investment views and responsible investing outcomes.”
Graham Mason, CIO for M&G equity, multi-asset and retail fixed interest, adds: “Investors’ attitudes towards responsible investment and demand for ESG solutions have evolved significantly in recent years. As long-term active managers M&G is especially well positioned to provide strategies that meet these criteria while still helping clients to reach their financial goals.”
In October M&G launched a global infrastructure fund with a focus on ESG considerations.