Tom Dobell’s £7bn M&G M&G Recovery has been highlighted in Bestinvest’s latest Spot the Dog report after a “traumatic 18 months” of underperformance.
Dobell’s fund was one of three M&G funds that have been included in the list, sitting alongside Randeep Somel’s £3.9bn M&G Global Basics and Aled Smith’s £1bn M&G American funds. Together, they account for 53 per cent of overall dog assets. The previous Spot the Dog ranking last July featured no funds from M&G.
Bestinvest says: “Dobell’s huge M&G Recovery fund has proved to be the biggest mutt in M&G’s litter. The fund has had a traumatic 18 months, underperforming its peer group by almost 20 per cent as it was hit by a perfect storm of negative contributions from stock and sector positioning.”
But Hargreaves Lansdown senior investment manager Adrian Lowcock says: “Dobell’s recovery investment style involves buying out of favour companies and working closely with the management to turn around these businesses. This requires a longer investment term – at least five to seven years – and does mean there are periods when the fund will lag the stock market.”
The number of funds included on the Spot the Dog list stands at 53, down from 59 in July 2013. However, the assets held in all the dog funds has jumped £13.3bn to £22.3bn.
F&C and Scottish Widows Investment Partnership join M&G in having three funds each on the list. Invesco Perpetual, Threadneedle, Jupiter, Henderson, First State, Blackrock, Artemis and Standard Life have no funds in the Spot the Dog report.