M&G (Lux) Optimal Income Fund - Investment update and outlook 2022

11 min read 27 Jan 22

  • 2021 was dominated by the COVID-19 pandemic, along with concerns around higher inflation; the global economy continued to recover – as did corporates’ earnings and balance sheets.
  • Credit spreads tightened while government bond yields rose, reflecting higher inflation and more hawkish central bank sentiment.
  • The fund posted a positive return in 2021 – thanks to tighter credit spreads and a c5% exposure to equities.
  • Despite rising rates, the fund didn’t lose much from duration because of the portfolio’s low interest-rate risk.
  • We expect our flexible investment mandate to be in a strong position to explore arising opportunities in 2022.
By M&G Investments

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

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