M&G has launched a Ucits III version of a global macro investment strategy employed for the Prudential life fund for the last decade.
The M&G Macro Episode Fund aims to offer institutions and sophisticated investors higher total returns than global equities over the medium to long term but with lower volatility.
The minimum investment in the fund is GBP1m.
The fund combines M&G’s traditional long-term approach to investment management with insights gleaned from behavioural finance. It is managed by Dave Fishwick and Eric Lonergan, who have a combined investment and economics experience of nearly 40 years.
The fund takes positions primarily at index level, allocating investments to equities, government bonds, credit, currency and cash. It can take both long and short positions.
The fund follows a global macro strategy that has been employed for the Prudential life fund over the last decade. Since 2001, the strategy has returned an average of 12.2 per cent per annum.
Fishwick says: “The fund gives institutions and sophisticated investors access to a global strategy that has proven successful over the last ten years. Taking long and short positions at index level, we seek and exploit assets that have been mis-priced because human emotion has dragged them away from what we believe to be fundamental value. Our goal is to offer a well-diversified portfolio providing a higher return and lower volatility than global equities over the medium term.”