For Investment Professionals only
M&G Global AI Themes Fund
Innovation meets AI powered growth
Jeffrey Lin, Fund Manager
Thomas Lee, Deputy Fund Manager
“We think AI is a multi-decade growth theme with potential for widespread disruption.”
Why Artificial Intelligence (AI) now?
- A disruptive technology 60 years in the making, turning into the next multi-decade growth theme thanks to its potential to generate pervasive change in the real economy and re-shape the competitive landscape across industries.
- Liquid, large and growing investment universe offering long-term growth opportunities not only in companies instrumental to the development and growth of AI applications, but also in those who embrace it into their own business operations.
- Investing in AI can allow us to “future-proof” our investors’ portfolio by benefiting from the AI structural trend.
Why the M&G Global AI Themes Fund?
- Through an active investment approach, the fund seeks to identify opportunities where AI is emerging as a potential driver to long-term revenue growth or profit margin expansion.
- The portfolio managers can leverage on deep knowledge about the technology, thanks to their engineering background, as well as the investment opportunity, having worked in the financial sector for over two decades.
- The fund relies on an investment process established by the portfolio managers over the last decade, that seeks to identify well-managed companies whose long-term prospects are not fully appreciated by the stock market. Engagement with technical experts and executive management at these companies is a key part of the investment approach.
- The presence of the “AI beneficiaries” in the portfolio will allow exposure to AI disruptive innovations, whilst providing sector and style diversification and potentially reducing volatility.
What does the fund invest in?
- Enablers: offer the equipment or services needed to perform AI computing processes, such as semiconductor chips, high speed data communications, and sensors.
- Providers: Businesses providing AI services and products to end users. These companies typically, but not exclusively, belong to the software industry.
- Beneficiaries: Companies poised to benefit from the adoption of AI, which are expected to drive valuations over the long term. They can be in any industry and sector.
Source: M&G. The fund may allocate to these three categories in any proportions but does not typically expect to hold more than 50% of its Net Asset Value in any one category. For illustrative purposes only.
Investment process: Our distinctive approach*
We look for opportunities where AI drives long-term revenue growth or profit margin expansion.
Source: M&G. Internal limits and fund features are shown for illustrative purpose only and are subject to change.
Fund Facts
| Fund launch date | 17 October 2023 |
|---|---|
| Benchmark* | MSCI ACWI Index |
| Sector | IA Global Sector |
Source of fund facts: M&G as at 17.10.2023
The share class launched on 17 October 2023. There is insufficient information available to provide a useful indication of past performance. Past performance information will be shown when the share class has been in existence for a complete calendar year.
Key fund risks
- 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.
- The fund has a large exposure to the Information Technology sector. As a result, the fund may be more volatile and vulnerable to market sentiment and risks specific to this sector than funds that are well diversified across multiple sectors.
- 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.
- In exceptional circumstances where assets cannot be fairly valued or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
- The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
- Operational risks arising from, from a failure or delay in operational processes and systems, or the failure of a third party provider may affect the value of your investments. Where this results in compensation needing to be paid, this may be paid some time after the original loss is experienced.
Further details of the risks that apply to the fund can be found in the fund’s Prospectus.
The views expressed in this document should not be taken as a recommendation, advice or forecast.
This is a marketing communication. Please refer to the Prospectus and the KIID before making any final investment decision.
Other important information
- The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.