M&G expands thematic offering with global equity AI fund launch
The fund will aim to provider a total return higher than the MSCI ACWI index 'over any five year period', M&G said.
Jeffrey Lin and Thomas Lee will co-manage the fund, which has launched with a £20m investment from M&G.
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The fund will invest in 50 to 70 companies, selected according to whether AI will be a potential driver for their long-term growth or profit margin expansion.
M&G explained the fund will target investee companies in three categories: AI enablers — firms supplying the technology needed to create AI solutions; AI providers — companies offering AI solutions to clients; and AI beneficiaries — businesses that will use AI to improve their products, services and offerings.
The fund will aim to provide a total return higher than the MSCI ACWI index «over any five year period», M&G said, excluding the ongoing charges figure.
It will also apply exclusions related to thermal coal and controversial weapons, as well as exercise revenue limits associated with certain environmental and social sectors, such as tobacco, gambling, adult entertainment, and unconventional oil and gas.
Fabiana Fedeli, CIO of equities, multi-asset and sustainability at M&G Investments, argued AI has the potential to generate «pervasive change in the broader economy» and that is at the start of its multi-decade growth.
«We see plenty of attractive AI-related investment opportunities, but as with all disruptive market forces, we expect an intense period of industry euphoria,» she said. «Understanding where the strongest growth areas are will be the key to providing better outcomes for clients as they navigate this exciting market opportunity.»
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