M&G Global Basics fund awarded 'AA' OBSR rating

The M&G Global Basics Fund, managed by Graham French, has joined the elite group of funds assigned an AA fund rating by Old Broad Street Research (OBSR), a leading independent fund research service that specialises in providing forward-looking investment research and product analysis to financial intermediaries, life offices and investment houses.

This brings the total of M&G funds that have been awarded an OBSR rating to nine.

The M&G Global Basics Fund is a global equity fund which focuses on industries and companies which represent the ‘building blocks of the global economy' - that is, ‘primary' industries engaged in the production of raw materials, ‘secondary' industries turning raw materials into products for consumers and also companies that service these industries.

Graham has managed the £3.4billion M&G Global Basics Fund since its launch on 17 November 2000. The fund is No.1 in its sector, the IMA Global Growth sector since launch and is top decile every year under Graham's management.

Jonathan Willcocks, Managing Director Global Sales at M&G, comments: "We are delighted that the M&G Global Basics Fund's consistent and outstanding long-term performance has been recognised with an AA rating from OBSR which is highly regarded as an independent mark of quality by the retail market. This fund rating also acknowledges Graham French's fantastic long term track record and considerable experience in managing one of our top performing global equity funds and the strong risk analysis capability of our portfolio strategy and risk team."

Graham French identifies excellent investment opportunities among well-established, well-managed, asset-rich companies that are capitalising on the fast pace of growth and urbanisation that is taking place in emerging markets. A major theme in the portfolio over the last two years has been a reduction in commodities towards consumer-related areas. As economies such as China and India grow, there is a shift in aggregate demand by consumers away from basic requirements for raw materials and food, up through the need for housing and other infrastructural development, and increasingly towards discretionary items ranging from toiletries and packaged food to western-branded goods and foreign holidays.

In order to receive the rating the fund had to demonstrate a proven track record and investment processes relative to its investment aims. The fund was judged on its performance, technical and human resources and risk control procedures against other funds in the IMA Global Growth sector with similar processes and aims.

Gill Hutchinson, Investment Research Director at OBSR, comments: "OBSR is pleased to be able to award an AA Rating to the M&G Global Basics Fund. The manager, Graham French, has a particular talent for uncovering opportunities in companies that he considers to be the ‘building blocks' of the world's economy. The manager has a significant amount of experience and he has provided his investors with attractive returns over the long-term through this specialist mandate. Our confidence in his ability to continue to do so is reflected in this AA Rating."

This AA rating from OBSR also joins a line up of other accolades awarded to the M&G Global Basics Fund: S&P AA, Morningstar 5 stars, and Citywire AAA.