Marketing communication. 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 (Lux) 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.
|Freedom House||Any government bond from countries classiﬁed as "Not Free" by the Freedom House index based on civil liberties and political rights|
|UNGC||Any company that is assessed to be in breach of the United Nations Global Compact Principles on human rights, labour, environment protection and anti-corruption|
Source: M&G 2022
The fund’s Environmental, Social and Governance (ESG) positive tilt is achieved by maintaining a weighted average ESG score above the average ESG score of the benchmark.
|31 July 2022||US$10,666.99 million|
|Fund launch date||05 September 2018|
|Benchmark*||1/3 Bloomberg Global Agg Corporate Index EUR Hedged; 1/3 Bloomberg Global High Yield Index EUR Hedged; 1/3 Bloomberg Global Treasury Index EUR Hedged|
|Sector||Morningstar USD Cautious Allocation sector|
*The benchmark is a comparator used solely to measure the fund’s performance and reﬂects the scope of the fund’s investment policy but does not constrain portfolio construction. The fund is actively managed. The fund’s holdings may deviate signiﬁcantly from the benchmark’s constituents. The benchmark is not an ESG benchmark and is not consistent with the ESG Criteria.
This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decision.
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.
ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the fund.
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.
Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.
For Professional Investors only. Not for onward distribution. No other persons should rely on any information contained within.
This financial promotion is issued by M&G Investments (Hong Kong) Limited. Office: Unit 1002, LHT Tower, 31 Queen’s Road Central, Hong Kong. The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer of any funds mentioned in it. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. Shares, units or other interests in the funds mentioned in this document may only be offered or sold in Hong Kong to persons who are “professional investors” as defined in the Securities and Futures Ordinance (“Ordinance”) and any rules made under the Ordinance – or in circumstances which are permitted under the Companies (Winding Up and Miscellaneous Provisions) Ordinance. In addition, distribution of this document in Hong Kong is restricted. It may not be issued or possessed for the purposes of issue, whether in Hong Kong or elsewhere, and shares, units or other interests in the funds mentioned may not be disposed of to any person unless such person is a “professional investor” as defined in the Ordinance and any rules made under the Ordinance or as otherwise may be permitted under Hong Kong law.