M&G Investments has launched the M&G Global AI Themes fund, to be co-managed by Jeffrey Lin and Thomas Lee. The managers, who joined the firm from TCW Group in January last year, will begin running the mandate with £20m of seed capital from M&G.
The fund plans to hold 50 to 70 companies across enablers, providers and beneficiaries in the artificial intelligence space. These will include companies that create technology to make AI solutions possible; firms that are able to offer AI products directly to customers; and firms using the technology for their own benefit.
Using the same strategy, the fund will be offered to both UK investors and to investors outside of the UK through the M&G (Lux) Global Artificial Intelligence fund. M&G said the fund will have exclusions for thermal coal and controversial weapons, as well as ‘exercise revenue limits’ for specific social and environmental sectors.
Fabiana Fedeli, CIO of equities, multi-asset and sustainability at M&G Investments, said: “We are at the start of a multi-decade growth theme that has the potential to generate pervasive change in the broader economy and reshape the competitive landscape across all industries.
“We see plenty of attractive AI-related investment opportunities, but as with all disruptive market forces, we expect an intense period of industry euphoria. Understanding where the strongest growth areas are will be the key to providing better outcomes for clients as they navigate this exciting market opportunity.”
M&G said AI technology could inject an estimated $2.6trn to $4.2trn into the global economy, across a wide range of industries and sectors.
Jeffrey Lin, co-manager of M&G Global AI Themes fund, said: “The disruptive power of technological innovation derives from its potential to create a better or cheaper product capable of growing a company’s market share or, indeed, a whole new market.
“As active investors, we focus on identifying the intersection between technological innovation and its implementation in business processes. Our background as computer engineers, and our continued tenure in the investment industry, equip us with the broad-based experience and expertise necessary to understand what it takes for a business to be very successful in this space.”