M&G should focus on Recovery, not Global Dividend

M&G should focus on Recovery, not Global Dividend

M&G issued an unusually forthright assessment of its £9.5bn Global Dividend fund's underperformance this week, analysing step-by-step where it went wrong in 2014.

As the group pointed out, such reflection remains relatively uncommon in the industry. It is all the more unusual considering Global Dividend managed to post a positive return of 2.4% last year. Stuart Rhodes’ fund continued to attract healthy inflows last year, which may explain the urge to analyse. Of more concern, in terms of performance, is Tom Dobell’s M&G Recovery. Dobell has been forthright about the portfolio’s underperformance since 2011, but last year’s loss of 9.7% was its worst since 2008. He retains the faith of many high-profile backers, including Hargreaves Lansdown, bu...