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M&G Recovery Class I - Income (GBP)

Sell:127.09p Buy:127.09p Change: 1.15p (0.91%)
Prices as at 18 November 2019
Sell:127.09p
Buy:127.09p
Change: 1.15p (0.91%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 18 November 2019
Sell:127.09p
Buy:127.09p
Change: 1.15p (0.91%)
Prices as at 18 November 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund features on our Wealth 50 list of what we believe are the best funds in each sector.

Tom Dobell has produced strong long-term returns using a process that has been in place since the fund's inception in 1969. He tries to invest in companies that have fallen upon hard times, but where there is scope for a recovery.

The past few years have been challenging for the fund but we're encouraged that the manager hasn't strayed from his tried-and-tested investment strategy. Periods of underperformance should be expected when it comes to recovery-style investing and a long-term outlook is essential. We think the fund has the potential to do well over the long term and could work well alongside a fund focused on companies expected to grow their earnings steadily over the long term.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

Tom Dobell joined M&G as a fund manager in 1992 and has run this fund since March 2000. It's performed well over the long term, but returns haven't been as good over the past few years. Over this time, companies undergoing temporary issues have been shunned by the wider market. The fund has also suffered from a few company specific disappointments. Tom Dobell still sees plenty of potential in the companies he's investing in and won't alter his longstanding investment approach to try and achieve short-term gains. While recent performance is disappointing, we focus on the longer-term and still have faith in the manager.

Investment Philosophy

Tom Dobell focuses on the prospects for individual companies rather than what's happening in the wider economy. He looks for unloved companies that have fallen out-of-favour, but where there's scope for a transformation in fortunes.

Process and Portfolio Construction

The manager thinks company management is key to the success of a corporate recovery. He looks for trustworthy management teams with solid business plans capable of turning their company's fortunes around.

He takes a long-term view and is willing to invest in companies for a number of years. The fund invests in around 80-100 companies and tends to have a bias towards higher-risk small and medium-sized ones. The fund can also invest in companies listed on AIM (the junior market of the London Stock Exchange), which can be more illiquid (difficult to buy and sell).

question mark Manager Track Record Based on HL Quantitative Research

  • M&G Recovery A Inc
  • FTSE All-Share TR
FROM: TO:


Fund Track Record

18/11/14 to 18/11/15 18/11/15 to 18/11/16 18/11/16 to 18/11/17 18/11/17 to 18/11/18 18/11/18 to 18/11/19
Annual return -6.09% 13.44% 12.35% -4.06% -1.69%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

M&G was established in 1931, and is today one of the largest active investors in the UK. In 1999 M&G was acquired by Prudential, one of the largest financial services providers in the UK and Europe. M&G is an autonomous business unit within the Prudential Group, retaining its own style but benefiting from the advantages of belonging to a large parent company.

M&G is not interested in chasing 'hot stocks' or market fashions. Its fund managers invest for the long term and have the freedom to think independently and act on their convictions. They are also backed by M&G's extensive experience and in-house research capabilities, across all key asset classes - equities, fixed interest and commercial property. One sector in which M&G has been particularly successful is in corporate bonds.

Information about the fund

Fund manager biography

manager photo
Manager Name: Tom Dobell
Manager start date: 31 March 2000
Manager located in: london

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.

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Manager Name: Michael Stiasny
Manager start date: 31 March 2000
Manager located in: London

Michael Stiasny is the fund manager of Charifund and, since 1 April 2018, of the M&G UK Income Distribution Fund. He is also deputy fund manager of both the M&G Recovery Fund and the M&G Global Recovery Fund. He joined M&G in 1998 as an equity analyst, becoming head of the pan-European equity research team in 2005. He was appointed deputy fund manager of the M&G Recovery Fund in 2011. Michael graduated with a degree in philosophy, politics and economics from the University of Oxford. He is a CFA charterholder.

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Manager Name: Elina Symon
Manager start date: 19 July 2019
Manager located in:

TBC

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account