The three sectors powering £3bn M&G Global Basics

Randeep Somel, approaching his one-year anniversary as lead manager on the M&G Global Basics fund, has been busy revamping the portfolio with new stock and sector allocations.

Following the retirement of previous lead manager Graham French last November, Somel (pictured) began repositioning the fund for a new era. He added the likes of unloved mining stock BHP Billiton and tech giant Microsoft to the portfolio, while avoiding financials. Somel expects these stocks to benefit primarily from the growth of the emerging market consumer, and has positioned the fund in areas where he thinks demand and growth are the strongest. So far this year, however, the fund has continued to underperform and remains in the fourth quartile of the IMA Global sector, up 2.3% ...