M&G Investments has launched the M&G Global AI Themes Fund, an actively managed equity strategy targeting the long-term investment potential of AI.
The fund will manage a portfolio of 50-70 companies strategically chosen for their potential to drive long-term revenue growth or profit margin expansion through AI. It focuses on three categories: AI Enablers (technology suppliers for AI solutions), AI Providers (companies offering AI solutions), and AI Beneficiaries (companies using AI to enhance products, services, and processes).
The fund, co-managed by Jeffrey Lin and Thomas Lee from M&G’s Thematic Technology Equity Investment team, launches with an initial £20 million investment from M&G, and “aims to provide a higher total return (through a combination of capital growth and income) than the MSCI ACWI Index over any five-year period”.
The fund applies exclusions related to thermal coal and controversial weapons and exercises revenue limits on investments associated with specific social and environmental sectors.
The strategy is available as an OEIC fund for UK-based investors – M&G Global AI Themes Fund – and as a SICAV fund for investors based outside the UK – M&G (Lux) Global Artificial Intelligence Fund. Both funds follow the same investment strategy and are managed by the same team.
Fabiana Fedeli, CIO 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. Understanding where the strongest growth areas are will be the key to providing better outcomes for clients as they navigate this exciting market opportunity.”
Lin added: ‘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.”
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