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M&G hands Global Basics managers wider remit

M&G moves £2 billion fund's focus away from resources, handing managers more freedom to invest across global stock markets.

M&G hands Global Basics managers wider remit

M&G Investments is to overhaul its Global Basics fund, moving its focus away from resources towards a wider global equities remit.

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

It will ditch the fund's current remit of holding at least 70% of the portfolio in resources-focused companies operating in areas such as mining, agriculture and manufacturing.

Instead, the managers will be free to invest 80% of the fund in global equities, with no restriction on sector, size or geography.

It will continue to be overseen by Jamie Horvat, who took up the reins of the fund in December 2015, with previous manager Randeep Somel remaining as co-manager. Somel had in turn taken over the fund from long-time manager Graham French, who retired in 2013.

Horvat has helped to lead a revival in the performance of the fund, which had struggled for a number of years. French's table-topping performance came dramatically unstuck towards the end of his tenure, leading the manager to confess that: 'Sometimes you just feel like putting your head under the duvet and not getting up in the morning.'

Somel struggled to turn things around during his time at the helm, sticking with bets on the commodities cycle and emerging markets growth as both were punished.

M&G said Horvat and Somel would 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, technological innovation and environment.  

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.’

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10 global stocks for a late bull market

by Gavin Lumsden on Jun 25, 2018 at 00:00

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