Fixed income in a yield-rising environment

8 min read 19 Oct 22

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

Key takeaways

  • In an environment where macroeconomic uncertainty remains elevated, we believe fixed income can provide investors with an attractive alternative to efficiently manage their portfolios.
  • The recent surge in inflation has pushed central banks to hike rates aggressively - we now believe the level of bond yield today is making the asset class good value.
  • As market volatility has increased, utilising the fund’s unconstrained approach has come to the fore.

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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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