International investment manager M&G Investments announced the launch of the M&G (Lux) Diversity and Inclusion Fund, aiming to invest in companies demonstrating gender and ethnic diversity and those offering solutions driving greater social inclusion and equality, while seeking to deliver attractive investment returns.
The new equity strategy will invest in a concentrated portfolio of 30-40 stocks, with at least 15% of the portfolio invested in impactful companies providing solutions to empower social inclusion, and the remainder allocated to sustainable companies demonstrating gender and ethnic diversity at work, with criteria for investment including having at least 30% women and/or ethnic minority representation at board level, in addition to other assessed ESG credentials.
The new fund will be managed by M&G Fund Manager Thembeka Stemela Dagbo and supported by John William Olsen, Team Head, Positive Impact and Sustain fund range
“Social inclusion and diversity are not only the right thing to do, they also make good economic sense. Left unaddressed, the exclusion of disadvantaged groups and the lack of diversity can be costly and result in lost GDP and human capital wealth, whereas pioneers of the diversity and inclusion initiatives are being increasingly recognised for their financial outperformance. Indeed, companies with top quartile levels of gender diversity are 25% more likely to outperform, and 36% more likely for ethnically diverse ones. This Fund provides our customers with the opportunity to capitalize on these trends and address diversity imbalances while putting their savings to work with a purpose.”