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 stock picking 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 stock picking drives outperformance, no single stock, sector or country have an outsized impact on the portfolio.

Applying artificial intelligence to stock picking

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 stock picking 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)
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

For Investment Professionals and Institutional Investors only. Not for onward distribution. No other persons should rely on any information contained within.

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, the Swiss Collective Investment Schemes Ordinance and the respective Circular issued by the Swiss supervisory authority ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.

In Spain the M&G Investment Funds are registered for public distribution under Art. 15 of Act 35/2003 on Collective Investment Schemes as follows: M&G (Lux) Investment Funds 1 reg. no 1551.The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg.

In the Netherlands, all funds referred to are UCITS and registered with the Dutch regulator, the AFM. M&G Luxembourg S.A. is the manager of the UCITS referred to in this document. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.

The Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, the “CMVM”) has received a passporting notification under Directive 2009/65/EC of the European Parliament and of the Council and the Commission Regulation (EU) 584/2010 enabling the fund to be distributed to the public in Portugal.

This information is not an offer or solicitation of an offer for the purchase of investment shares in one of the funds referred to herein. Purchases of a fund should be based on the current Prospectus. The Instrument of Incorporation, Prospectus, Key Investor Information Document, annual or interim Investment Report and Financial Statements, are available free of charge, in English or your local language (unless specified below) in paper form, from one of the following – M&G Luxembourg S.A., German branch, mainBuilding, Taunusanlage 19, 60325 Frankfurt am Main; the Austrian paying agent: Société Générale Vienna Branch, Zweigniederlassung Wien Prinz Eugen-Strasse, 8-10/5/Top 11 A-1040 Wien, Austria; the Luxembourg paying agent: Société Générale Bank & Trust SA, Centre operational 28-32, place de la Gare L‑1616 Luxembourg; the Danish paying agent: Nordea Danmark, Filial af Nordea Bank Abp, Finland, Issuer Services, Postbox 850, 5528, DK-0900 Copenhagen C; Allfunds Bank, Calle Estafeta, No 6 Complejo Plaza de la Fuente, La Moraleja, 28109, Alcobendas, Madrid, Spain; M&G Luxembourg S.A. French branch, 8 rue Lamennais, Paris 75008; the French centralising agent of the fund: RBC Investors Services Bank France; or the Swedish paying agent: Nordea Bank AB (publ), Smålandsgatan 17, 105 71 Stockholm, Sweden. For Switzerland, please refer to by M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or 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.

For Italy, they can also be obtained on the website: For the Netherlands, they are available online at and for more information concerning the Key Investor Information Document, please refer to  For Ireland, they are available in English language and can also be obtained from the Irish facilities agent, Société Générale SA, Dublin Branch, 3rd Floor IFSC House – The IFSC Dublin 1, Ireland. For Germany and Austria, copies of the Instrument of incorporation, annual or interim Investment Report, Financial Statements and Prospectus are available in English and the Prospectus and Key Investor Information Document/s are available in German.

Before subscribing investors should read the Prospectus and Key Investor Information Document, which includes a description of the investment risks relating to these funds. The value of the assets managed by the funds may greatly fluctuate as a result of the investment policy. The information contained herein is not a substitute for independent investment advice.

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

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