For Investment Professionals only
“This is the most ﬂexible bond strategy I manage. It allows me the freedom to search out the most attractive income streams across a range of ﬁxed income assets in order to optimise performance throughout the economic cycle.”
The M&G Optimal Income Fund takes its name from the manager’s aim to purchase those assets that provide the most attractive, or ‘optimal’, income stream for the fund. The fund’s unconstrained approach gives Richard Woolnough the possibility to move freely between government bonds, investment grade and high yield corporate bonds. He can also invest in equities when a company’s shares appear more attractive than its debt.
Richard actively manages the fund by combining a top-down macroeconomic approach with rigorous bottom-up credit analysis.
The fund manager’s preferences for duration and credit risk will depend on his outlook for interest rates, economic growth and inﬂation. The fund’s ﬂexibility enables Richard to position the portfolio exactly in line with his duration and credit views.
Duration positions shown in the chart above prior to September 2018 are those of M&G Optimal Income Fund, a UK-authorised OEIC, managed by the same fund manager, applying the same investment strategy as the SICAV. These are shown for illustrative purposes only.
|31 March 2022||£1727.65 million|
|Fund launch date||08 December 2006|
|Benchmark*||IA Sterling Strategic Bond sector|
|Sector||IA Sterling Strategic Bond sector|
Source of fund facts: M&G as at 31.03.22.
*The benchmark is a target which the fund seeks to outperform. The sector has been chosen as the benchmark as the fund is a constituent of the sector. The benchmark is used solely to measure the fund’s performance and does not constrain portfolio construction. The fund is actively managed. The fund manager has complete freedom in choosing which investments to buy, hold and sell in the fund.
The value and income from the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
Investments in bonds are aﬀected by interest rates, inﬂation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.
High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.
The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
The fund allows for the extensive use of derivatives.