M&G Recovery Fund
Backing the underdog
"Although the economic environment remains difficult to predict and we believe this uncertainty may persist for some time, we remain optimistic about the Fund’s prospects because the investment opportunities at a stock level are outstanding. We are committed to our investment approach, which focuses on stock selection, and we hope that the consistent application of common sense and patience, which we have employed for 42 years, will reap generous rewards over time."
Tom Dobell - Fund Manager
The fund invests in companies with the expectation that they will progress through a four-stage recovery cycle as illustrated below.
Companies that have fallen out of favour and are experiencing problems, but are exhibiting recovery potential, are held through the different stages of the cycle until their turnaround is complete. The fund’s approach is to be a constructive shareholder, often working closely with management to help companies reach their full potential. This approach has remained unchanged throughout the fund’s history.
Why you should invest in this fund
- The M&G Recovery Fund is focused on corporate and not economic recovery – a strategy designed to seek out investment opportunities whatever the market conditions.
- It has a proven and unchanged philosophy of investing in unloved and undervalued companies, which Tom believes have the potential to recover and deliver compelling returns over the long term.
- The strategy behind the M&G Recovery Fund is one of consistency – the fund has had only three managers at the helm since its launch over 40 years ago.
- Tom also benefits from the support of an experienced, hands-on corporate finance team, working closely to develop and maintain a constructive, two-way dialogue with the companies in which he invests.