Skip to main content
  • Register
  • Help
  • Contact us
A A A

M&G Global Basics - change is afoot

Heather Ferguson | Fri 22 September 2017

Investments can go down as well as up so there is always a danger that you could get back less than you invest. Nothing here is personalised advice, if unsure you should seek advice.
  • Fund to change name to M&G Global Themes, subject to shareholder approval
  • Investment policy relaxed, removing a requirement for the fund to invest at least 70% of the portfolio in basic industries, such as mining and manufacturing
  • While experienced in resources and precious metals, the manager does not have a prolonged track record managing a broader portfolio of global equities

Proposed changes

M&G intend to rename its Global Basics Fund to M&G Global Themes. The investment strategy will also change and the requirement to invest at least 70% of the portfolio in basic industries, such as mining and manufacturing, will be removed.

Assuming the change is approved by shareholders, Jamie Horvat, the fund’s manager, will have the flexibility to invest with no restriction on sector, company size or geography, although the fund will be required to have at least 80% in global equities. The fund’s long-standing objective to exploit global structural change remains intact, but M&G hope a more relaxed investment strategy will allow Jamie Horvat to take full advantage of the wider themes developing across the global economy. The manager is particularly keen to invest in companies set to benefit from increased demand for healthcare and medicines to support ageing populations; water and waste management; clean energy; and cyber-security.

The fund’s benchmark will change to the MSCI All Country World Index to better reflect the new investment universe. M&G also plan to shift the focus towards a balance of income and capital growth returns, from a previous focus on capital growth only.

Our view

The fund has been through several changes over the past five years including two changes to the fund manager. Most recently Jamie Horvat took over as lead manager on 18 December 2015, at which point Randeep Somel, the fund's previous lead manager, assumed the role of co-manager.

Jamie Horvat has over 16 years' investment experience and has previously specialised in Canadian equities and the resources and precious metals sectors. He does not, however, have a prolonged track record in managing a broader portfolio of global equities. While the fund’s performance has improved over Jamie Horvat’s tenure, returns under its current investment policy have tended to be poor and we feel a less restricted investment mandate is positive for the fund moving forwards. The fund does not currently feature on the Wealth 150 list of our favourite funds across the major sectors.

Annual Percentage Growth
Aug 12 -
Aug 13
Aug 13 -
Aug 14
Aug 14 -
Aug 15
Aug 15 -
Aug 16
Aug 16 -
Aug 17
M&G Global Basics 9.8 -0.98 -8.06 30.34 15.34
IA Global 19.55 9.94 2.68 21.42 17.88

Past performance is not a guide to future returns. Source: Lipper IM

Find out more about this fund including how to invest

Please read the key features/key investor information document in addition to the information above.

Important information - Please remember the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This article is provided to help you make your own investment decisions, it is not advice. If you are unsure of the suitability of an investment for your circumstances please seek advice. No news or research item is a personal recommendation to deal.


You may also be interested in: