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M&G’s Dobell: We’re not changing our approach
by Robert St George on Oct 21, 2013 at 11:05
Over the past decade the fund has significantly outperformed the FTSE All Share, returning 183% to the index’s 140%. But it has lagged since 2010, generating 23% compared with the FTSE’s 33%.
‘We’ve had a pretty tough time,’ Dobell (pictured) acknowledged in a call with investors this morning. ‘We’re not satisfied with the current relative performance of the fund.’
However, Dobell maintained that he would stick to his long-standing approach. ‘We are not changing our investment strategy,’ he stated. ‘We’re going to battle on.’
Dobell added that short-term disappointment ‘is not a good enough excuse for changing the strategy’.
In addition, Dobell denied that his fund’s size was a problem. ‘Everybody tells me the fund is too big or too complex,’ he said. ‘I’m afraid I don’t agree with that.’ He noted that his portfolio currently includes 90 stocks, with the top 33 positions accounting for 63% of the fund.
Indeed, Dobell contended that his fund’s scale was an advantage. ‘It’s easier running a large fund because you can go back and have another crack at something that hasn’t quite gone to plan,’ he explained.
Dobell also thanked those investors who had stuck with him, although his fund has dwindled from a peak of more than £8 billion at the start of 2012.
‘I’m extremely grateful to investors who have held onto the fund despite the suboptimal returns,’ he said, before expressing his commitment to restoring it to ‘where it belongs at the top of the tables’.
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On the road
on Dec 06, 2013 at 14:28