M&G GLOBAL BASICS

This is the thinking-mans route to profit from the global trends created by the march of emerging markets, with less risk than owning an emerging markets fund. The winners of the 1849 California Gold Rush were not the hordes of individual prospectors, but rather the sellers of picks and shovels. This M&G fund, managed by Graham French, takes a similar approach. For example, M&G don’t invest in what China makes (which is usually cheap and too plentiful), but rather what they want, from toothpaste to water filtration to precious metals

Almost inevitably it has a commodity-related exposure, around 30% of the fund, but less than was previously the case. The greater emphasis is currently on companies that will benefit from continuing consumer-led growth throughout the emerging economies, e.g. Coca Cola, and Cussons (best known in the UK for “Imperial Leather” soap).   

Though this is a higher risk fund, it is well diversified and does not carry the risk of a more focussed fund, whether a general emerging markets fund, or one even more focussed, for example on China or India alone. The rationale of the fund means that it can be a core holding for many years to come.  

To achieve long term capital growth through investing wholly or mainly in companies around the world operating in basic industries (' primary ' and ' secondary ' industries) and also in companies that service these industries. The Fund may also invest in other global equities.