Fund managed by Richard Woolnaugh has had a sustainable revamp

Fund managed by Richard Woolnaugh has had a sustainable revamp

M & G, a global investment management company, has announced that it will be aligning its $14bn Optimal Income Fund in a more sustainable direction.

The Luxembourg-based fund, which is managed by Richard Woolnaugh, has recently stated that it will be altering its impressively-sized fund to align more with Article 8 of the Sustainable Finance Disclosure Regulation (SFDR). This article states that fund managers should document the policies they have on integrating sustainability within their funds, which should be easily accessible on their website. Sustainability risks should also now be included in risk management.

M & G have also noted that they will be creating a new Luxembourg-based sustainable bond this year.

Richard Woolnaugh and the other managers of this fund have decided to align it with more sustainable practices to help ensure that M & G are taking the appropriate steps to becoming more ESG-friendly. ESG stands for environmental, social and governance and investors all over the world are looking to apply these factors when making investments. For example, many companies now look to make investments into assets that have as little of an impact on our natural environment as possible.

From the 29th of October 2022, the Optimal Income fund will also be tightening its ESG requirements to help ensure that the fund isn’t investing in any company that does not comply with the UN’s global compact principles.

The Chief investment officer at M & G, Jack Daniels, has stated that: “With the transition of the M&G (Lux) Optimal Income fund to SFDR Article 8, just under half of our total wholesale Sicav assets under management will be classified Article 8 or 9 under SFDR.”

Richard Woolnaugh, the manager of the Optimal Income Fund, has had over 20 years of experience in the investment industry. Beginning his career at Lloyd’s Bank, he became a dedicated fund manager just 10 years later. Managing the Optimal Income Fund allows Woolnaugh to invest wherever he chooses within fixed income. He currently manages this bond and both the corporate and strategic corporate bond for M & G.

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