View more on these topics

Dobell’s recovery fund targets consumer sector

M&G fund manager Tom Dobell says he is seeing opportunities in the consumer sector for his £7.9bn recovery fund.

The fund had 9.2 per cent in consumer services and 4.7 per cent in consumer goods at the end of March, according to data from FE.

Unilever is the sixth-biggest holding in the fund at 2.9 per cent. The fund also invests in Booker, Easyjet and Mothercare.

Speaking at an M&G investment briefing in London last week, Dobell said: “We have been light in the consumer area for a while. The new holdings we are looking at are in the consumer area.

“Prices have fallen in this sector and we are taking the opportunity to pick up shares.”

The recovery fund had a 5.9 per cent holding in BP at the end of March, which is trading at nearly £4. Dobell said BP is in the first stage of recovery and has strong potential over the medium term.

He said: “The cashflow capacity it has is awesome but the leadership has been underwhelming. This is a classic recovery stock and on a five-year view, BP will provide shareholders with returns that justify the sleepless nights it has given us.”

Dobell said he is still avoiding the banking sector, a common picking ground for recovery funds. He said: “We are cautious about financials. Banks are run for themselves rather than for shareholders.”

Whitechurch Securities managing director Gavin Haynes says there is logic behind Dobell’s belief that there are opportunities in the consumer sector.

He says: “Against such a gloomy backdrop, companies reliant on consumer spending have been indiscriminately sold off. Dobell has an excellent track record of picking up out of favour stocks.”


Credit Suisse mulls JOHIM sale

Credit Suisse is considering the sale of its UK private client wealth management business JO Hambro Investment Management. JOHIM was launched in 1986 by the Hambro family. The firm was sold to Credit Suisse in 2001, but it has remained a private entity from Credit Suisse Private Banking. According to the FT, a person with […]

Brokers welcome HSBC U-turn on conveyancing

HSBC will allow all solicitors accredited with the Law Society’s conveyancing quality scheme to act for the bank and its mortgage customers. Previously, only firms on HSBC’s managed panel of conveyancers could act for both the borrower and the lender, with all other firms able to act for the borrower only. The new arrangement will […]


Capita acquires Medicals Direct for £13.2m

Capita has acquired Medicals Direct for an initial sum of £13.2m, which could rise to £15.2m depending on performance. MD, a provider of medical screening services, primarily to the life and pensions sector, acquired the medical support business of Capita Insurance Services in July 2009. MD, which has around 180 employees across six offices, made […]


FSA confirms insurance broker ban

The FSA has banned an insurance broker from working in the financial services industry after the Upper Tribunal upheld the regulator’s case against him. Derek Wright’s case was first made public last May. The publication of the decision notice against Wright was significant as, along with one other case, it marked the first time a […]

Rayner Spencer Mills: Why we rate the Artemis US Select Fund

Ken Rayner and Graham O¹Neill from RSM explain why they rate the fund, its investment process and how it can be used in a portfolio The Artemis US Select Fund became a RSM ‘rated’ fund earlier this year. In this video, Ken Rayner and Graham O’Neill explain the fund’s investment approach, why they rate it, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm