M&G has launched its first sustainable corporate bond fund in partnership with responsAbility, the Swiss asset manager.

The M&G (Lux) responsAbility Sustainable Solutions Bond Fund is classified as Article 9 under SFDR and will comprise a portfolio of global investment grade bonds impacting in six areas: better health, better work & education, social inclusion, circular economy, environmental solutions and climate action. Investments will be mapped to the UN Sustainable Development Goals (SDGs) according to their contributions and bonds in the portfolio will either be:

Project financing bonds – ESG bonds funding a specific project targeting either environmental (green bonds) or social outcomes (social bonds), or a combination of both (sustainability bonds).

Solution Provider Businesses – Bonds issued by companies that actively address problems linked to environmental or social challenges through the core products and services they offer.

The Fund will be co-managed by Mario Eisenegger and Ben Lord, members of M&G’s global fixed income investment division. responsAbility will act as investment adviser and will also be a voting member of M&G’s independent Impact, SDG & Solutions Committee.

Fund manager Mario Eisenegger, said, “One of the most effective ways for bond investors to contribute to the Sustainable Development Goals is by directly funding environmental and social projects and providing financing to businesses that make a meaningful, positive contribution to the planet or society through their underlying business models. This fund does exactly that, giving the team a clear mandate to be laser-focused on these urgent priorities when putting our clients’ money to work.

“Furthermore, the global reach and flexibility of this investment grade credit fund are beneficial for portfolio construction as these features enlarge the opportunity set for credit selection, improve diversification, and allow the fund to access sustainable solutions around the globe as they emerge.”

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