M&G admits to Global Dividend 'complacency' in open letter to investors

M&G has written to investors in its £9.5bn Global Dividend fund and acknowledged "there may well have been some complacency" around underperforming stocks in 2014.

In a frank letter reviewing 2014 activity, M&G acknowledged the underperformance of the fund was in part caused by wrong decisions made by the investment team. "Stubbornness is a common investor character trait when it comes to assessing underperformance. Open admission of failure in this industry is rare," the letter said. The group said the purpose of the letter is "to review the major issues that have affected performance throughout the year and ask ourselves some very blunt and direct questions to make sure the fund is on its best possible footing for the future." The £9.5bn fu...