Source: Bloomberg, 30 April 2024
Past performance is not a guide to future performance. For illustrative purposes only. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and/or current market conditions and are not an exact indicator.
Optimal Income 2024 - Long duration + high quality credit exposure
We believe the opportunity to deploy cash and increase duration in investment portfolios has re-emerged as a result of a unique rates-inflation dynamic, one that has largely come from the central bank response to the COVID pandemic of 2020-21. This may be the final chance for investors to take advantage of the situation, however. Optimal Income remains well positioned in this environment in our view, with a historically high duration position of 7.1 years within a high credit quality portfolio (average rating of A).
Additionally, the fund offers a yield to expected maturity (essentially, an estimate of the annualised return until the expected maturity of its underlying holdings) of c4.5%, gross of fees, in Euro terms. In US dollar terms, this rises to around 6.3% and in UK sterling terms, this is now around 6.0%. All yields are calculated to 30 April 2024. Past performance is not a guide to future performance