Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

M&G launches sustainable version of flagship $77 billion PruFund

Stock MarketsJul 26, 2021 07:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Simon Jessop and Carolyn Cohn

LONDON (Reuters) - British asset manager M&G has launched a sustainable version of its flagship 56 billion pounds ($77 billion) PruFund range of funds, its chief executive told Reuters.

The move by M&G, carved out from insurer Prudential (LON:PRU) in 2019 and managing around 370 billion pounds in assets, is part of a shift to focus on investments that don't harm the environment amid surging demand from investors.

Assets in funds with a sustainability focus reached almost $2 trillion in the first quarter, data from industry tracker Morningstar showed.

Companies are rushing to adopt sustainability strategies, partly in response to investor pressure, but activists say their claims need to be scrutinised to ensure they are genuine.

M&G said the new multi-asset fund range, called PruFund Planet, was launched with 500 million pounds of investment from the company's 143 billion pound Prudential With-Profits Fund.

The existing PruFund range of funds, a favourite of retirees across Britain, currently manages around 56 billion pounds on behalf of 455,000 customers and invests in markets from stocks to bonds and real estate.

Each PruFund uses a smoothing mechanism to avoid extreme short-term stock market volatility. This means the funds do not experience the full highs - or extreme lows - of the markets.

Many with-profits funds have closed in recent years as the sector has faced regulatory reform and investors became more enthusiastic about riding a wave in equity markets.

Assets in UK with-profit funds dropped below 300 billion pounds in 2017 from around 400 billion in 2005, according to the Financial Conduct Authority.

PruFund and PruFund Planet are the only parts of the Prudential With-Profits Fund still open to new clients, although the former saw a steep fall in net inflows to 400 million pounds in 2020 from 6.4 billion in 2019, as the pandemic cut face-to-face meetings with financial advisers.

M&G said PruFund Planet was the first time a with-profits fund had given customers the chance to invest in a sustainability-focused way.

CEO John Foley said the existing PruFund range was transitioning to a sustainable strategy but was still invested in sectors such as coal.

"Clients and customers genuinely want us to pivot towards sustainability," he said. "PruFund is moving in that direction but will take some years to get to a fully sustainable perspective."

Foley said research among financial advisers showed half their clients wanted a sustainable alternative to conventional pension and savings products.

($1 = 0.7272 pounds)

M&G launches sustainable version of flagship $77 billion PruFund
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email