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M&G to give giant Global Basics fund new identity

M&G to give giant Global Basics fund new identity

M&G Investments is to completely rebrand its Global Basics fund in a bid to give it more emphasis on total returns and thematic allocations.

The asset manager has written to shareholders about plans to rename the £2 billion (€2.3 billion) fund as the M&G Global Themes fund.

It will continue to be overseen by Citywire + rated Jamie Horvat, who was assigned alongside Randeep Somel in December 2015. Somel succeeded the fund’s long-time manager Graham French, who retired in July 2013.

Under the new remit, Horvat and Somel will seek to alter the investment philosophy from 70% in basic industries to 80% in global equities with no restriction on sector, size or geography.

In addition, the team will move from long-term capital growth as an objective to a total return outcome, which will also see its performance measured against the MSCI All County World Index over any five-year period.

M&G said Horvat and Somel will continue to operate with a top-down and bottom-up blend approach, while focusing on long-term structural shifts, as well as themes such as demographics, tech innovation and environment.  

Commenting on the proposed changes, Horvat said: ‘Over recent years trends within the global economy have evolved so the removal of the restriction to invest mainly in basic industries will enable us to widen the themes in the fund. 

‘We are keen to capitalise on sectors and industries that benefit from increased demand for healthcare and medicines to support ageing populations, water and waste management, clean energy and cyber-security.’

The M&G Global Basics returned 7.2% in US dollar terms over the three years to the end of August 2017. This compares to a 14.6% rise by its custom benchmark over the same timeframe.

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