Since taking over management of the M&G Recovery Fund in March 2000, Citywire AA rated Tom Dobell has outperformed the UK stockmarket for 11 consecutive calendar years - a remarkable achievement unmatched by any other fund in the IMA UK All Companies sector.
Looking at the entire period of Tom Dobell's management, the M&G Recovery Fund has returned 128.4%, which is 60.6% ahead of the FTSE All-Share Index, as at the end of February 2011. Against its peers in the IMA UK All Companies sector, its return has been 61.0% ahead of the average.
This record has been achieved through the consistent application of the same investment approach that has driven the fund throughout its 40-year history: buying shares of ‘unloved' companies that have the potential to restore themselves to health over the long run.
Tellingly, the fund's exceptional performance has been achieved across different economic and market conditions - a testament to corporate not economic recovery being the main driver of performance.
Tom's long-term investment approach is contrary to much of the rest of the investment world, which is increasingly focused on short-term performance as investors hold stocks for shorter and shorter periods of time. Rather than placing money in the latest ‘hot' stock, only to sell and move on at the first sign of disappointment, Tom seeks companies whose problems are transitory or solvable, and will stay the course until corporate recovery is complete - and recognised by the market in rising share prices.
The benefits of taking a long-term investment view are clear from the performance record of the M&G Recovery Fund. While the world has gone through economic booms and busts, and bull and bear markets, the rewards have been handsome for investors who have stayed with the fund through the years.
For Financial Advisers only. Not for onward distribution. No other persons should rely on the information contained in this article. Source of M&G Recovery Fund performance figures: Morningstar, Inc. as at 28.02.11, bid to bid with net income reinvested, Sterling Class A Shares, IMA UK All Companies sector. Source of cash returns figures: UK Savings 2500+ Index. Rating as at 28.02.11 and should not be taken as a recommendation. This Financial Promotion is issued by M&G Securities Limited which is authorised and regulated by the Financial Services Authority and provides investment products. The company's registered office is Laurence Pountney Hill, London EC4R 0HH. Registered in England No. 90776.
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