The M&G Positive Impact Fund will adopt the ‘Sustainability Impact’ label in the UK in early 2025, M&G Investments has announced.

The £209m fund, which was launched in 2018, is part of M&G’s sustainability and impact equity investment team with over £4bn of assets under management.

The fund’s impact strategies apply the team’s ‘Triple I’ framework to identify high quality, high impact investments for inclusion in the portfolio.

These businesses need to demonstrate strong ‘investment’ characteristics with quality business models able to deliver long-term growth; clear ‘intention’ to tackle major societal problems; resulting in meaningful and measurable ‘impact’ on pressing social or environmental challenges.

The fund is diversified across six main impact areas: Climate action, pollution reduction, circular economy, health and wellbeing, education and innovation, and working conditions.

It will adopt the Sustainability Impact label under the Financial Conduct Authority’s (FCA) Sustainable Disclosure Requirements (SDR) regime, with M&G scheduled to write to clients in December.

“Our adoption of this label marks an exciting milestone for the M&G Positive Impact Fund and reflects our commitment to sustainable and impact investing, enabling clients to easily compare funds with similar objectives for the first time,” said M&G head of UK wholesale distribution, Alex Matcham.

“Over the long term, we expect to see growing demand from clients seeking a viable option for model portfolios with a focus on sustainable or impact and, more broadly, those who are looking for exposure to companies making a measurable positive difference, either to society or to the environment, while aiming to achieve strong investment returns.”

M&G Positive Impact Fund impact lead, Ben Constable Maxwell, added: “The Sustainability Impact label is built on exacting principles and helps to define the norms for what impact investing in public markets means.

“We now have a standard for the industry to aim for. By investing in companies that aim to provide solutions to the biggest sustainability challenges, our impact strategy seeks to drive positive outcomes for people and the planet, unlocking exciting investment opportunities across sectors such as clean energy, circular economy, and healthcare.

“The label also places an emphasis on the active role of investors, not just in allocating capital on behalf of our clients, but also in driving impact through our own engagement activities.

“Together, the impact generated can support societal goals and create meaningful change, demonstrating that investors can invest to generate financial returns alongside measurable impact for a sustainable future.”

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