French (pictured) announced his retirement yesterday and has stepped down as fund manager with immediate effect.

Deputy manager Randeep Somel, who has worked with French for the past five years, has taken over management of the £4.2bn portfolio.

French will remain as an adviser to Somel for the next six months, M&G said.

Adrian Lowcock, senior investment manager at Hargreaves Lansdown, said: “We believe short-term performance will be determined by the fund’s existing investment approach. However over a prolonged period, performance will depend on the adaptation of the new manager’s own style.”

Meanwhile, Chelsea Financial Services has downgraded the fund to a hold.

Managing director Darius McDermott said: “Global Basics was built and launched by Graham with a certain investment approach in mind and, while that doesn’t mean a fund can’t change direction – indeed we expect managers to be pragmatic – I think this move actually changes the game for investors who have been in the fund for some time.”

Alternatives to Global Basics

Holders of Global Basics looking to switch out may struggle to find funds in the market which are directly comparable.

Richard Philbin, CIO at Harwood Multi Manager, said: “I would not say there is a direct competitor, because Graham’s investment approach is quite different to others.

“But there are a number of funds that offer exposure to the large well-known brand names in which he invests.”

Here are Philbin’s pick of five funds to consider for investors looking to switch out of Global Basics:

JPM Global Consumer Trends

The £189m fund, managed by Peter Kirkman, aims to benefit from long-term changes in consumer spending patterns around the world. It invests across all geographies and market caps and is not constrained by a benchmark.

The fund currently has its highest allocation to healthcare and financials, at 25.3% and 21% respectively, and nearly a third of its stocks are domiciled in the US.

Over three years to 15 November, the fund has lagged the IMA Global sector, with a return of 18% versus an average of 29%, but over five years it has outperformed, returning 110% versus 74%.

Pictet Global Megatrend Selection

This £1.3bn fund, managed by Hans Peter Portner, invests in a selection of nine thematic funds run by Pictet, which offer exposure to key global growth trends, such as healthcare, digital communications and water.

It is an offshore vehicle, but its return over three years of 31% is comparable to the IMA Global sector average.

Threadneedle Global Extended Alpha

This fund, managed by Neil Robson, has a very different investment approach to French’s fund, since it uses derivatives. However, it offers similar global exposure to investors seeking diversification across geographies.

Over three years, the fund has substantially outperformed the IMA Global sector, returning 46.5%, placing in the top quartile of the sector.

Fundsmith Equity

Terry Smith, manager of the £1.6bn fund, constructs a concentrated portfolio of 20 to 30 global high quality businesses, applying stringent investment criteria to the stock selection process. The fund does not use derivatives or short stocks, and avoids “over-diversification” in favour of a high conviction style.

Over three years, it is up 61.5%, making it one of the top five performers in the IMA Global sector, but performance this year has lagged, at around 28%.

UBS Solid Consumer Brands

The fund was launched in February for Alexander Galbiati and Frank Maduca, and has returned 13% since launch.

It has already grown to £210m in size, but has not made it onto Philbin’s screens yet due to its short track record. However, he said the performance is strong and it is one to watch for the future .