Fund Management

What's New In Investments, Funds? - M&G, BlackRock

Editorial Staff, 26 February 2019


The latest in funds and investments around the world.

M&G Investments
M&G Investments has launched a UK-domiciled multi-asset fund incorporating environmental, social and governance factors, part of a continuing trend of such ESG-themed approaches.

The M&G Sustainable Allocation Fund is managed by Maria Municchi and supported by deputy fund manager Steven Andrew.

The fund invests in a diversified range of asset classes from all over the world including emerging markets (net allocation ranges: 20-80 per cent in fixed income, 20-60 per cent in equities, and 0-20 per cent in other assets).

The firm's team uses dynamic asset allocation and an assessment of behavioural factors to identify assets that can provide a total return of between 4 to 8 per cent per annum over any five-year period. Asset allocation is the main driver of returns in the fund.

M&G will screen out companies that violate United Nations Global Compact Principles and that derive their revenue from specific sectors: tobacco, alcohol, adult entertainment, gambling, thermal coal, defence and weapons.

BlackRock has launched an exchange-traded fund that taps into the growing global emphasis on sustainable energy sources in transportation.
The iShares Electric Vehicles and Driving Technology UCITS ETF runs alongside the firm’s existing 16 thematic products, and 27-strong range of ESG ETFs.

The ETF, which tracks the STOXX® Global Electric Vehicles & Driving Technology Index, comprises companies involved in manufacturing, battery suppliers and component producers, and has a Total Expense Ratio (TER) of 0.40 per cent, it said in a statement.

BlackRock said that there is major potential from such sustainable transportation ideas, citing data showing that there are 1.1 million electric vehicles sold every year and that by 2040 this figure is expected to rise to 60 million.

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