Latest News

  • Home /
  • Latest News

Prudential: ESG Policy for the Risk Managed Passive and Risk Managed Active fund ranges

11 October 2021
M&G plc has two ESG priorities of Climate Change and Diversity and Inclusion, given their importance for the long-term sustainability of all businesses and society as a whole. They aim to be carbon net zero as a corporate entity by 2030. Further, they aim to achieve 40% female and 20% ethnicity representation in their leadership by 2025.

Prudential Assurance Company (PAC – the Asset Owner) are now a signatory to the UN Principles of Responsible Investment as an asset owner. PAC aims to achieve net zero carbon emissions across AUMA (assets under management and administration) by 2050, in line with the Net Zero Asset Owners Alliance. An important aspect of how the Asset Owner manages its investments is the integration of ESG factors into investment decisions, which Prudential Assurance Company (PAC) believe can help better manage risks and generate sustainable, long-term return for customers. The M&G Treasury and Investment Office (T&IO) do this on behalf of PAC through implementing ESG considerations into the SAA process, integrating ESG factors into manager selection and oversight and considering ESG factors in mandate design.
 
  1. M&G Treasury & Investment Office (T&IO) look to the asset managers they select to:
  2. engage with companies as active owners that help foster a more sustainable economy,
  3. participate in voting on key issues such as Climate,
  4. manage assets in accordance with the T&IO ESG Investment Policy and,
  5. ensure that ESG is integrated into their investment process. T&IO's ongoing Investment Due Diligence on these selected managers ensures that they not only meet a high threshold from an investment perspective but also in terms of these ESG requirements.
Given T&IO's view that the integration of Environmental, Social and Governance (ESG) factors into the investment process can help manage risks and generate better sustainable long-term returns this is as important in the selection and ongoing due diligence process as the traditional aspects of manager selection (e.g. investment team, investment philosophy and investment process).

The process and philosophy behind how T&IO manage money has not changed, only evolved. T&IO are, and always will be, long-term investors and so believe that ESG factors should be considered in addition to and alongside the more traditional financial metrics not only in selecting managers but also in asset allocation. T&IO believe that companies which capture and embed ESG opportunities and risks into their strategy are
more likely to be successful. As an Asset Owner, T&IO therefore ensure that ESG considerations are integrated into all of the investment decisions relating to asset allocation, manager selection and oversight and mandate design.

For the LF Prudential Risk Managed Active and LF Prudential Risk Managed Passive Funds, T&IO apply the T&IO ESG investment principles for the internally managed Funds within these ranges focusing on the corporate priorities of climate change and diversity and inclusion. T&IO incorporate considerations of these priorities via a combination of focused engagement strategies and some exclusions.

For Funds run by external managers, T&IO look to identify suitable investment managers which are able to manage the mandates in line with the T&IO ESG investment principles. For all existing managers we look to monitor their alignment to the T&IO ESG investment principles on an ongoing basis; where there are divergences, the T&IO Investment Management Oversight team looks to either engage with managers to encourage alignment with the ESG investment principles over time, or to migrate the assets to a fund that aligns.

Within the M&G Treasury & Investment Office we are always looking for ways to further achieve our ESG ambitions, and so continue to evolve both actively and passively managed solutions towards those with greater awareness of ESG criteria for example through mandate design and the consideration of additional ESG and Impact targeted building blocks within the ranges. We are confident that the current exposures within LF Prudential Risk Managed Active and LF Prudential Risk Managed Passive Funds remain appropriate for our investors however we are prioritising the creation of passive strategies that meet our ESG criteria.

The value of any investment can go down as well as up so your clients might get back less than they paid in.

To find out more about our PruFolio range of funds please visit our hub.

If you’d like to learn more about our new PruFund Planet funds please visit our hub.

You can also speak to your Prudential Account Manager if you need any further information.
 

30 December 2024

An evolving industrial landscape: post-election insights from the US


30 December 2024

The outlook for 2025


10 December 2024

Beyond the Budget – Unpacking IHT changes for your clients


4 December 2024

Triple Point Venture VCT - Early bird discount extended


3 December 2024

A Postcard from Boston: Onshoring, AI and the regulation of water


3 December 2024

The second Nucleus UK Retirement Confidence Index


25 November 2024

Investing alongside science to deliver a sustainable world


11 November 2024

Triple Point - What Budget changes to Business Relief mean for clients


4 November 2024

Edwards Lifesciences: shaping the future of cardiac care


28 October 2024

Gene therapy is set to change the face of medicine


22 October 2024

What China’s economic stimulus measures could mean for investors


16 October 2024

Triple Point - Venture VCT announces 2p tax-free dividend


7 October 2024

Triple Point - VCTs: a powerful way to help clients pay less income tax


2 October 2024

The next smart move for your clients


26 September 2024

Puma VCT 13 launches new £50m fundraise


24 September 2024

3 steps advisers can take to close the gender pension gap


19 September 2024

Puma Investments- Launches Puma AIM VCT


18 September 2024

M&G Wealth - Six ways to keep clients invested for long-term success


10 September 2024

M&G Wealth - Dash to cash: why it pays to think longer-term with your client’s money


6 September 2024

Join the Defaqto Future of Advice conference


2 September 2024

Triple Point - Understanding Venture Capital Trusts (VCTs)


28 August 2024

M&G Wealth - Keeping it smooth since 2004


19 August 2024

Prudential - Cost reductions and changes to our Strategic Asset Allocation


15 August 2024

Liontrust - Building a sustainable future with social housing


15 August 2024

Puma Investments - Join our CPD webinar: Closing the gaps: IHT and Estate planning featuring Tony Wickenden


7 August 2024

Liontrust - Plugging into the energy transition


6 August 2024

Defaqto - The Future of Advice - The Defaqto Adviser Conference


26 July 2024

Hello Kitty: A big cat in the investment universe?


24 July 2024

Liontrust – A postcard from Japan: enabling the sustainable transition


18 July 2024

Liontrust - Does a brighter future for housebuilding lie ahead?


16 July 2024

Triple Point – Holistic Estate Planning Strategy for Clients


8 July 2024

Triple Point – Join our CPD webinar: helping investors plan for big life events


1 July 2024

Intergenerational wealth planning for difficult times


24 June 2024

Liontrust Sustainable Investment: Annual Review 2023


19 June 2024

Investing in the energy transition


18 June 2024

Triple Point is partnering with ESG Accord to host a webinar: "A Practical Guide to SDR and Investment Labels for Advisers."


17 June 2024

Latest PruFund monthly investment updates


13 June 2024

Defaqto MPS Comparator: the UK's only accurate MPS performance tool


12 June 2024

Hear about Triple Point Venture VCT - 18th June 2024


6 June 2024

The Nucleus Retirement Confidence Index


24 May 2024

Join us for our Breakfast Briefing with Foresight! June 4th at 9:30am


17 May 2024

Looking forward with optimism


8 May 2024

The retirement income advice red paper


8 May 2024

Liontrust Views: Why smaller can be beautiful for US equities


7 May 2024

CPD Horizon Series: Tax planning for life’s key events


18 April 2024

Liontrust: Opportunities from secular growth trends


15 April 2024

Defaqto Roadshow - The challenges and opportunities of pursuing Income


11 April 2024

Liontrust: US small caps are overlooked and undervalued


4 April 2024

Q1 2024 Rebalance – we think the backdrop is good for stocks


21 March 2024

25 years of ISAs: a quarter of a century of tax-efficient savings and investing


4 March 2024

Stepping out of cash needn’t be daunting


26 February 2024

Managing lifetime wealth – trends in the UK retirement advice industry


23 February 2024

Empowering advice for women in finance


14 February 2024

Tech Matters is here!


5 February 2024

Defaqto upcoming event – Engage webinar 22nd February


1 February 2024

The gender divide in retirement confidence


30 January 2024

SDGs in focus: climate and nature


26 January 2024

Tax year end prep. We’re here to help.