A dynamic and flexible approach across fixed income

8 min read 13 Sep 22

Please find the latest investment update and outlook for the M&G (Lux) Optimal Income Fund:

 Key takeaways

  • Richard Woolnough’s aim to purchase those assets that provide the most attractive, or ‘optimal’, income stream for the fund is what inspired the name of the M&G (Lux) Optimal Income Fund.
  • The fund’s unconstrained approach gives the manager the possibility to move freely between government bonds and investment grade as well as high yield corporate bonds. He can also invest in equities when a company’s shares appear more attractive than its debt.
  • The fund is actively managed by combining a top-down macroeconomic analysis approach with rigorous bottom-up credit analysis. The manager’s preferences for exposure to interest rate risk (duration) and corporate bonds risk (credit) will depend on his outlook for interest rates, economic growth and inflation.

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By Richard Woolnough

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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