Maximise flexibility with an active and dynamic approach

The macroeconomic environment is changing. After years of ultra-low interest rates, investors now have an opportunity to view bonds in a more constructive light, especially government bonds. We now believe bonds may finally provide investors with an appealing and expanded investment opportunity set. This is especially true given that central banks could well be at end of their rate-hiking cycle, with cuts in interest rates expected this year.

Against this macro backdrop, investors may find attractive and diversified risk-adjusted returns across a range of government and corporate bonds, investment grade and high yield bonds, and from developed countries to emerging markets.

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

Optimise opportunities with M&G (Lux) Optimal Income Fund

Reasons to invest

A simple, global, diversified bond fund with a proven track record of over 17 years that can invest in government, investment grade (IG) corporate and high yield (HY) corporate bonds.

A fully flexible bond fund with the ability to invest up to 20% in equities

Managed by an Optimal investment team

Portfolio managers with an average 28 years’ experience, many investment professionals, as well as one of the largest credit analyst teams in Europe. A larger and more experienced team has allowed us to enhance our flexibility by capturing an increasing number of opportunities that have been arising globally. 

Source: M&G Investments, 31 December 2023. *This strategy originally launched on 8 December 2006 as a UK-authorised OEIC, named M&G Optimal Income Fund, run by the same fund managers, applying the same investment strategy.

Key risks associated with M&G (Lux) Optimal Income 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.

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. 

The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.