M&G launches new Climate Change Solutions fund

In September this year, Reuters reported that investors managing trillions in assets and more than 120 business leaders had urged the European Union to cut carbon emissions by at least 55% by 2030.

The mounting climate crisis has increasingly drawn the attention of investors the world over in recent years, highlighting the opportunity to accelerate alternative energy solutions to help reduce emissions.

Despite the ongoing coronavirus pandemic, the UN-backed Green Climate Fund pledged to ramp up efforts to tackle climate challenges – approving $879 million for 15 new projects – even as countries around the world struggle with the economic fallout.

Now, the latest to join the movement, London-based investment manager M&G plc (LON:MNG) has announced the launch of its new OEIC climate fund for investing in companies providing solutions to the challenges posed by climate change.

The M&G Climate Solutions fund is set to invest in around 30 different companies generating revenue across three key impact areas: clean energy, green technology, and the promotion of the circular economy.

The fund’s selection process will be based on each company’s net positive climate impact and revenue alignment, with M&G stating that they will refer to the climate-related UN Sustainable Development Goals as part of annual assessments.

Run by M&G fund manager Randeep Somel, the Climate Solutions fund carries an I share class annual charge figure of 0.7%, excluding transaction costs.

Commenting on the launch, Somel told Citywire:

“The green agenda and the need to provide solutions to the challenge of climate change has unlocked the creativity and ingenuity of many companies who have these solutions at the heart of what they do.

“This is a multi-decade opportunity for companies who deliver innovative products and services – and for those who invest in them”.