The asset manager is proposing to switch the name to the M&G Global Themes fund and change the ‘restrictive’ investment policy so that the fund can invest at least 80% of the portfolio in global equities with no restriction on sector, size or geography.
The current policy requires the fund to invest at least 70% of the portfolio in so-called basic industries such as mining and manufacturing.
In addition, M&G is seeking to change the investment objective from long-term capital growth to a total return objective which, it said, better reflects the overall return of the fund which combines the effect of capital growth and income received by the fund for its investors.
The Financial Conduct Authority has already signed off on the changes but M&G is awaiting shareholder approval to go ahead.
If approved, the fund will change its benchmark from the FTSE Global Basics Composite to the MSCI All Country World Index, which it will aim to beat over any five-year period.
M&G said the fund’s manager Jamie Horvat will combine top-down and bottom-up analysis to identify themes arising from long-term structural shifts and trends such as demographics, technological innovation and the environment, and invest in companies benefiting from those themes.
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 original philosophy of the fund of exploiting global structural changes remains intact.”
