Fund buyers see M&G Global Basics rebrand as chance to 'revitalise' fund

But facing tough competition in the sector

Fund selectors believe the decision by M&G to widen the investment universe of its £2.1bn Global Basics fund could be a way to further rejuvenate the 40-year product, after a turbulent performance history.

Last week, the firm revealed plans to change the fund's remit from a focus on basic materials, such as mining and manufacturing companies, to investing in the wider global stockmarket, while also proposing to rename the product as the Global Themes fund. Currently, the fund must hold a minimum of 70% in basic materials but, subject to shareholder approval, this will be changed to at least 80% invested in global equities. It will also shift from a long-term capital growth objective to one seeking a total return higher than the MSCI ACWI index over any five-year period. Fund history ...