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By Mark Dampier, Head of Research, Hargreaves Lansdown

M&G has long been a household name in the investment world. Even before I joined the industry 23 years ago I can remember their adverts in the London Tube with the incredible track record of their funds. I believe we may have found another great M&G fund - Global Leaders.

The manager, Aled Smith, is looking for two factors: a change already affecting a company's performance, such as restructuring, or a change in the management's strategy which could lead to enhanced returns.

For example, he holds a number of Japanese pharmaceutical companies which have recently changed their business models. In the past these companies just distributed drugs made by European and US companies. Now they are spending huge sums on research and they are launching their own drugs. Aled Smith believes this vital change has yet to be recognised by the market. He also holds companies like Siemens which has been taking steps to streamline its business and focus on its most profitable areas.

Inevitably share prices usually lag such changes. If he can spot profitable changes early and buy ahead of the pack he can capture the best part of any share price gain. Of course all funds can fall in value as well as rise, but the results so far have been impressive. £10,000 invested when Aled Smith took over the fund in September 2002 would be worth more than £20,000 today, but please remember past performance is not a guide to the future.

If you are looking for long term international exposure I believe the strength of M&G coupled with the skills of Aled Smith makes the M&G Global Leaders Fund a first class choice. You could consider it for the heart of an ISA or PEP portfolio or as a real alternative to traditional pension funds through a Self Invested Personal Pension (SIPP).

You can apply for the M&G Global Leaders Fund on our website with a debit card. Alternatively you can download application or transfer forms for ISAs, PEPs, SIPPs and our Fund Account - just visit www.h-l.co.uk

The Fund of the Month is written by Hargreaves Lansdown. An independent broker offering unit trust, stockbroking, pension and investment services.

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