The M&G Recovery Fund was launched in 1969 as a vehicle for investors to grow their long-term savings.
The fund has stood by the same investment approach throughout its 42-year history. Citywire A rated Tom Dobell, who became fund manager in March 2000 aims to seek out companies that, for reasons such as operational difficulties or financial troubles, are unloved by the market but have the potential to recover over the long term.
The fund adopts a long-term, patient investment approach, typically holding each stock for around three to five years – happily longer if Tom believes there is more recovery to come.
Tom believes that in-depth analysis and close contact with company management are required in order to identify recovery potential. He will never invest in a company without first meeting the people who run the business.
The fund invests in companies with the expectation that they will progress through a four-stage corporate recovery cycle, as illustrated in the diagram below. Companies that have fallen out of favour and are experiencing problems, but which also exhibit 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.
|Single year performance (5 years ending January 2012)|
|M&G Recovery Fund||+0.5%||+17.5%||+41.3%||-22.0%||+0.4%|
|IMA UK All Companies Sector||-2.5%||+20.0%||+33.2%||-27.5%||-7.2%|
Please remember that you should not base decisions on past performance, prices may fluctuate and you may not get back your original investment.
Citywire A* rated Tom Dobell joined M&G in 1992 as a UK equity manager on the segregated pension fund desk where he was responsible for managing assets for 16 pension fund clients. In March 2000, Tom became fund manager of the M&G Recovery Fund. Before joining M&G, he worked for Phillips & Drew (PDFM) as a fund manager within the charity and small pension fund division. Tom graduated from agricultural college in 1986.
In addition to the fund data that can be found by accessing the menu to the left of this page you can find further fund information in the most up-to-date Key Investor Information Document and the Important Information for Investors document.
The Fund predominantly invests in a diversified range of companies which are out of favour, in difficulty or whose future prospects are not fully recognised by the market. The sole aim of the Fund is capital growth. There is no particular income yield target.
Products available: ISA, OEIC & Savings Plan
Source of all performance figures: Morningstar Inc., and M&G Statistics, bid to bid, net income reinvested, Sterling Class A Shares as at 31 January 2012.
All ratings as at 31 January 2012. Ratings should not be taken as a recommendation.
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