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M&G Optimal Income

Ranked 12 out of 62 in - Sterling Strategic Bond over 12 months
All calculations are in GBP unless stated

Managed by

Richard Woolnough

Richard Woolnough has more than twenty years of experience in fixed interest investment. Born in Chesterfield in 1964, Woolnough graduated from the London School of Economics and started his fixed interest career with Italian group Assicurzioni Generali in 1987. He then joined SBC Warburg as a sterling instruments trader before moving to Old Mutual in 1995 where he was responsible for the Old Mutual Corporate Bond fund and Old Mutual UK Fixed Interest long-term bond fund. Woolnough made the switch to M&G Investments early in 2004 to take charge of the firm’s Corporate Bond fund. He currently manages this and the Strategic Corporate Bond fund which was launched in February 2004. Both the Corporate Bond fund and the Strategic Corporate Bond fund invest mostly in investment grade corporate bonds, although the Strategic Corporate Bond fund holds far fewer stocks, and takes larger duration and credit positions. Woolnough also manages the M&G Optimal Income fund, which can invest wherever the manager sees best value in the fixed income universe.


The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The Fund aims to provide a total return to investors through strategic asset allocation and specific stock selection. The Fund will be at least 50% invested in debt instruments, but may also invest in other assets including collective investment schemes, money market instruments, cash, near cash, deposits, equities and derivatives. Derivative instruments may be used for both investment purposes and efficient portfolio management.

Showing fund performance in United Kingdom View performance globally


Sterling Strategic Bond over : 30/04/2015 - 30/04/2016
  • Rank 12/62 Total Return
  • Rank 51/62 Standard Deviation
  • Rank 43/62 Max Drawdown
Fund Name Currency Return
10 RBS High Yield GBP


11 Scottish Widows Strategic Income A Acc

Currency exposure is hedged

Currency exposure is hedged



12 M&G Optimal Income A Inc GBP


13 Old Mutual Fidelity Strategic Bond A Inc GBP


14 Santander PF Sterling Bond A GBP


Fund Name Currency Risk
49 Artemis Strategic Bond QR Acc GBP


50 MI TwentyFour Focus Bond A Inc Net GBP


51 Aviva Investors Managed High Income SC 1 Inc

Currency exposure is hedged

Currency exposure is hedged



51 M&G Optimal Income A Inc GBP


53 M&G Offshore Optimal Income I Inc GBP


Total Return

Quarterly Performance

to 31/03/2016 Annual Q1 Q2 Q3 Q4
2016 1.0%
2015 -0.8% 0.7% -1.1% -1.5% 1.0%
2014 5.3% 1.8% 2.1% 0.1% 1.2%
2013 7.8% 2.6% -0.4% 2.7% 2.7%
2012 13.8% 5.5% -0.1% 4.8% 2.9%
2011 6.6% 1.9% 1.6% -1.6% 4.6%
2010 9.3% 4.2% -0.6% 5.4% 0.1%
2009 34.2% 3.8% 13.1% 11.0% 3.0%
2008 -3.4% -1.1% 1.0% -0.6% -2.7%
2007 3.2% 1.2% 0.9% -0.4% 1.4%

Month by Month Performance

Returns Vs Risk

Asset Allocation



Top 10 Holdings

Stock Size
US Treasury 0.125% 15-Apr-2020 3.66
Northern Trust Sterling E Dist GBP 2.89
Germany 0.000% 17-Apr-2020 2.12
United Kingdom 4.000% 07-Sep-2016 1.65
Germany 1.750% 15-Apr-2020 1.49
Germany 1.500% 15-Apr-2016 1.13
Verizon Communications Inc 5.012% 21-Aug-2054 1.10
Verizon Communications Inc 4.672% 15-Mar-2055 1.09
United Kingdom 2.000% 22-Jul-2020 1.01
United Kingdom 4.750% 07-Dec-2038 1.00

Registered For Sale In

  1. Belgium
  2. France
  3. Switzerland
  4. United Kingdom

Fund Info

  • Launch date08/12/2006
  • Share Class size14,938Mn
  • Base currencyGBP
  • ISIN GB00B1H05049

Purchase Info

  • Min. initial investment500
  • Min. regular additional investment100


  • Annual management1.25%
  • Initial investment3

Related News

M&G suffers £2.7bn outflow from Optimal Income fund

Investors appear to have become concerned about a decline in performance in Richard Woolnough's fund, reducing its assets to £20.9 billion.   

Woolnough took home £15m in 2014

Pay package means manager has earned more than Prudential chief executive Tidjane Thiam again.

Woolnough takes M&G Optimal Income's sterling duration below 2 years

M&G fund manager Richard Woolnough has trimmed the sterling duration on his £24 billion M&G Optimal Income fund.

M&G’s Woolnough: don’t worry about bond liquidity

Richard Woolnough, manager of the giant M&G Optimal Income fund, has dismissed fears about declining liquidity in fixed income markets.

Woolnough: expect ‘redistribution of wealth’ in independent Scotland

Richard Woolnough, manager of the M&G Optimal Income fund, expects politics north and south of the border to shift dramatically if Scotland votes for independence.

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Performance is for the period shown (month end to month end, bid/bid, gross income reinvested, calculated in the currency and currencies indicated).