M&G has launched a new strategy to focus on artificial intelligence related investments.
The M&G Global Growth AI Themes fund is an actively managed equity strategy which focuses on companies working on technology needed for AI, firms offering the solutions to customers and companies using AI to improve products and services.
Fabiana Fedeli, chief investment officer for equities, multi-asset and sustainability said: "We are at the start of a multi-decade growth theme that has the potential to generate pervasive change in the broader economy and reshape the competitive landscape across all industries.
"We see plenty of attractive AI-related investment opportunities, but as with all disruptive market forces, we expect an intense period of industry euphoria.
"Understanding where the strongest growth areas are will be the key to providing better outcomes for clients as they navigate this exciting market opportunity."
The fund will run a portfolio of 50-70 companies and is managed by Jeffrey Lin and Thomas Lee from M&G’s thematic technology equity investment team
Lin said: "The disruptive power of technological innovation derives from its potential to create a better or cheaper product capable of growing a company’s market share or, indeed, a whole new market.
"As active investors, we focus on identifying the intersection between technological innovation and its implementation in business processes.
"Our background as computer engineers, and our continued tenure in the investment industry, equip us with the broad-based experience and expertise necessary to understand what it takes for a business to be very successful in this space."
The fund launches with an initial £20mn investment from M&G and has exclusions related to thermal coal and controversial weapons.
For UK based investors the strategy is available as an OEIC fund and as a SICAV fund for investors based outside the UK.
tara.o'connor@ft.com
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