M&G’s Financial Planning arm M&G Wealth has added a new range of six model portfolios focused on investing globally and incorporating ESG factors in its investment process.

The launch follows its acquisition of investment manager TCF Investment in February. 

The six portfolios, tailored to different client risk profiles, have themes aligned with the UN sustainable development goals, including areas such as climate action, better health, and social inclusion. 

M&G Wealth will charge a fee of 0.15% per year for the new range. The underlying product costs are between 0.52% to 0.58% per year and will vary over time based on the risk profile of each portfolio, changes in the funds used and the tactical asset allocation of the portfolio.

Initially the new range will only be accessible through the M&G Wealth Platform.

TCF’s existing model portfolio services will continue to be available on other platforms.

Shanti Kelemen, CIO at M&G Wealth, said: “The launch of the Global ESG Themes model portfolio range is a key step to expand our range of planet-friendly investment solutions. 

“Investing globally and utilising thematic funds can deliver competitive financial returns, as well as positive environmental and social outcomes. Long term themes are a powerful tool that help identify innovation, transformations, and developments focused on delivering better futures —all of which can be key drivers of long-term growth”.

M&G Wealth saw outflows turn negative in 2021, with net client outflows of £1.4m for the year.

M&G said the drop in flows was driven by an increase in drawdowns as retirement products matured, as well as the impact of increased transfers out due to “changes in market dynamics” including a shift to digital following the Coronavirus pandemic.

Despite the drop in flows, M&G Wealth reported an increase in assets under management and adjusted operating profit.

M&G Wealth was formed in September 2020 to expand M&G's interests in the advice and platform sector.

In August the firm announced it is to acquire financial adviser firm Sandringham Financial Partners. The deal will add £2.5bn of assets under advice to M&G as well as 180 Sandringham advising partners and more than 10,000 individual clients.

M&G plc is an international savings and investment business and manages money for about 5m retail customers and more than 800 institutional clients in 28 markets.