M&G international equities fund launches

20 February 2012 | By Beth Brearley

David Williams, who has managed the Prudential fund since December 2010 and is deputy manager on the £7 billion M&G Recovery fund, will manage the newly-merged mandate.

Although the two funds will employ the same investment approach, the M&G International Specialist Equity fund will have more flexible investment powers than the Prudential Global Growth fund.

Previously, the Prudential Global Growth fund was required to hold 50% in UK companies, but this is not the case for the M&G fund. The new fund will also be permitted to use derivatives for investment purposes and up to 20% may be invested in fixed income securities, collective investment schemes, money market instruments and cash.

Residing in the IMA Global sector, the M&G International Specialist Equity fund will have an AMC of 1.5% and an initial charge of 4%.

The launch is part of an integration programme which also sees the merger of a further three Prudential funds into the M&G range.

The other mergers include the £64m Prudential Growth Trust into the £1.1 billion M&G Managed Growth fund, the £159m Prudential Small Companies trust into the £159m M&G Smaller Companies fund and the Prudential UK Index Tracker trust into M&G Index Tracker fund.

This latest round of consolidations takes the number of Prudential funds integrated into the M&G range to nine.

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