M&G Investments has launched the M&G Emerging Markets Corporate ESG Bond Fund.
The fund is managed by Charles de Quinsonas and supported by Head of Emerging Market Debt Claudia Calich and is benchmarked to the JPM CEMBI Broad Diversified Index. At least 80% is invested in corporate debt securities including those backed or owned by governments, in emerging markets. Although the fund mainly invests in USD denominated bonds, it offers hedged share classes for investors who want to hedge the USD risk.
M&G says that the fund’s ESG criteria are assessed as part of the credit analysis of bond issuers. They apply a three-stage screening process:
- Screening out companies that are assessed to be in breach of the United Nations Global Compact Principles
- Filtering out companies that derive their revenues from specific sectors: tobacco, alcohol, adult entertainment, gambling, thermal coal, nuclear energy, defence and weapons*
- Using in-house assessment and external ESG research providers to analyse companies’ overall ESG credentials and exclude ESG laggards.