Investment update: M&G (Lux) Optimal Income Fund

8 min read 3 Aug 21

An investment update on the M&G (Lux) Optimal Income Fund:

  • With valuations tight and uncertainly still high, we believe it is more important than ever to have a flexible approach focused on active return generation.
  • US dollar investment grade corporate bonds have driven performance; equities, duration have also helped.
  • We remain constructive on corporate bonds, while our exposure to inflation-linked bonds and cyclical equities means the portfolio is well-positioned for an inflationary environment, in our view.
  • Our interest rate outlook remains defensive – we believe higher economic growth and inflation will force government bond yields higher.

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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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