Marketing communication. For Investment Professionals only

M&G (Lux) Global Maxima Fund

Artificial intelligence applied to investments
Gautam Samarth, Fund Manager

Fund philosophy

  • Global universe A global equity fund seeking to outperform the global equities market over any five-year period.
  • Artificial intelligence The fund applies developments in artificial intelligence, data science and computer process to provide stockpicking recommendations.
  • Human oversight All stock recommendations are sense checked by the fund management team prior to inclusion to avoid problems with blindly following a black box such as the impact of data errors, idiosyncratic events, corporate actions etc.
  • Diversified portfolio The final portfolio holds around 100 stocks from anywhere in the world, including emerging markets, diversified by industry and country to ensure that, while stockpicking drives outperformance, no single stock, sector or country have an outsized impact on the portfolio.

Applying artificial intelligence to stockpicking

The Maxima strategy uses a number of machine-learning algorithms to pick stocks. They work by taking a large amount of historical data on the universe of global company shares, and combining that with the knowledge of how each stock performed. Having been trained, the algorithms are given live data. They analyse this to rank each of the stocks that we might invest in, according to their likelihood of outperforming in the future. From this a portfolio of highest-scoring stocks is constructed subject to industry and country limits that ensure portfolio diversification is maintained.

P/E = price-earnings ratio; P/B: price-to-book ratio; DCF = discounted cashflow. These are all types of valuation methods.

Alpha score = Indicates how much a stock outperforms the market average.

Source: M&G.

Reasons to invest

  • A differentiated approach to stock selection Artificial intelligence (AI) can be trained to identify patterns in financial data that predict future outperformance, across a wider investment universe, that are potentially too nascent, opaque or complicated for humans to initially pick up on.
  • Man and Machine While the fund uses sophisticated mathematical techniques, the underlying principles of the process are intuitive to traditional stockpicking and subject to continuous oversight from the fund managers
  • Continuous improvement Ongoing R&D ensures that the new concepts in the growing field of AI are researched and tested for their efficacy in improving the stock selection model.

Fund Facts

31 July 2022 €90,35 million
Fund launch date 11 December 2019
Benchmark* MSCI ACWI Net Return Index
Share class
ISIN (Acc) LU2065169091
ISIN (Dist)
LU2065169174
Initial charge Max. 4,00%
AMC 1,75%
Ongoing charge (Acc & Dist)** 2,01% (Acc)
2,00% (Dist)


Source of fund facts: M&G, as at 31.07.22.

*The benchmark is a comparator against which the Fund’s performance can be measured. It is a net return index which includes dividends after the deduction of withholding taxes. The index has been chosen as the Fund’s benchmark as it best reflects the scope of the Fund’s investment policy. The benchmark is used solely to measure the Fund’s performance and does not constrain the Fund’s portfolio construction. The Fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The Fund’s holdings may deviate significantly from the benchmark’s constituents.

**Ongoing charge is based on expenses as at 31.03.22.

This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decision.

The value and income from the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.

The fund may invest in China A shares. Investments in assets from China are subject to changeable political, regulatory and economic conditions, which may cause difficulties when selling or collecting income from these investments. In addition, such investment is made via the Stock Connect system, which may be more susceptible to clearing, settlement and counterparty risk. These factors could cause the fund to incur a loss.

Further details of the risks that apply to the fund can be found in the fund's Key Investor Information Document and Prospectus.

Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.

For an explanation of the terms used in this document, please refer to the glossary on our website here

 

Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to Qualified Investors according to the Swiss Collective Investment Schemes Act ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.

The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg. The Instrument of Incorporation, Prospectus, Key Investor Information Document, as well as the annual or interim Investment Report and Financial Statements can be obtained free of charge in English from M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or from Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, which acts as the Swiss representative of the Schemes (the "Swiss Representative") and acts as their Swiss paying agent.

Before subscribing investors should read the Prospectus and Key Investor Information Document, which includes a description of the investment risks relating to these funds.

M&G Luxembourg S.A. may terminate arrangements for marketing under the new Cross-Border Distribution Directive denotification process.

Complaints handling information is available in English from https://www.mandg.com/investments/professional-investor/en-ch/contact-us

This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L-2449, Luxembourg.