M&G Recovery Class I - Income (GBP)
Our view on this Fund
This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »
Tom Dobell tries to invest in companies that have fallen upon hard times, but where there is scope for a recovery. This 'value' style of investing has largely been out of favour for much of the past decade, so we'd expect some underperformance from Dobell's fund.
However, in periods where his investment style has returned to favour, the fund's performance has shown little improvement.
The manager also recently increased exposure to early-stage businesses, arguing that their low valuations and future potential justify their positions in the portfolio. The danger is that these smaller investments take up too much of the manager's time and the rest of the portfolio suffers.
Overall, we feel there are lots of talented fund managers in the UK All-Companies sector and we currently have greater conviction in others to deliver strong performance over the long run.