M&G Recovery Fund

The fund aims to provide a combination of capital growth and income to deliver a return, net of the Ongoing Charge Figure, that is higher than that of the FTSE All-Share Index over any five-year period. At least 80% of the fund is invested in the shares of companies across any sector and of any size that are based, or do most of their business, in the UK. The fund manager’s approach to selecting investments focuses on companies with the potential for recovery, for example: those where there has been a significant share price decline; those undergoing significant change, with the potential to recover and develop over the long term; those that need support from investors to develop the business and where the long-term prospects are undervalued by the market. The fund manager can also invest up to 20% of the fund in benchmark constituents classified as “non-recovery companies” (ie, those companies not in the recovery cycle) with the aim of reducing the risk of underperforming the benchmark.