(Boursier.com) — M&G Investments announces the launch of the M&G (Lux) Global Artificial Intelligence Fund – an actively managed equity strategy designed to capture the structural investment opportunity represented by Artificial Intelligence (AI). AI is one of the main drivers of long-term growth in the coming decades, as well as a disruptive force, set to become a key factor in the success and survival of many companies around the world.
AI has the potential to create between $2.6 trillion and $4.4 trillion each year in productivity and efficiency gains1 for the global economy – figures similar to the 2022 GDP of countries such as Japan ($4.2 trillion), Germany (4,000 billion dollars) or the United Kingdom (3,000 billion dollars). Its implementation has the power to generate transformative benefits for organizations in many areas, such as improved decision-making, innovation, risk management and improved customer experience.
To capitalize on this opportunity, the M&G (Lux) Global Artificial Intelligence Fund will take the form of a portfolio of 50 to 70 actively selected companies for which AI appears to be a potential source of revenue growth. long term or profit margin expansion. They will come from the following three categories:
-AI Facilitators (companies providing the technology necessary to design AI solutions);
-AI Suppliers (companies offering AI solutions to their customers);
-AI Beneficiaries (companies that will use AI to improve their products, services and processes).
Co-managed by Jeffrey Lin and Thomas Lee of M&G’s Thematic Technology Equity Investment team, the fund is launching with an initial investment of £80 million from M&G and aims to deliver total return (a combination of capital growth and income) higher than that of the MSCI ACWI index over any 5-year period. Classified as Article 8 under the SFDR Regulation, the fund applies exclusions related to thermal coal and controversial weapons, as well as turnover limits on investments linked to specific social and environmental sectors.
According to Fabiana Fedeli, CIO Equities, Multi-Asset and Sustainability at M&G Investments: “We are at the beginning of a decades-long growth theme, which has the potential to drive widespread change across the entire economy and reshape the competitive landscape across all industries. We identify multiple attractive AI-related investment opportunities, but as with all disruptive forces, we expect to see a period of extreme euphoria “Understanding where the strongest growth drivers lie will be key to delivering better results for our clients in this particularly exciting market opportunity.”
The strategy is available as a UCITS under British law (OEIC) for investors based in the United Kingdom – M&G Global AI Themes Fund – and as a SICAV under Luxembourg law for investors based outside the United Kingdom – M&G (Lux) Global Artificial Intelligence Fund. Both funds follow the same investment strategy and are managed by the same team.
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