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M&G Optimal Income

Ranked 55 out of 60 in - Sterling Strategic Bond over 12 months
All calculations are in GBP

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.


Sterling Strategic Bond over : 31/08/2014 - 31/08/2015

Total Return

Quarterly Performance

to 30/06/2015 Annual Q1 Q2 Q3 Q4
2015 0.7% -1.1%
2014 5.2% 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
United Kingdom 2.000% 22-Jan-2016 2.92
Germany 0.000% 17-Apr-2020 2.32
United Kingdom 5.000% 07-Mar-2025 2.21
Northern Trust Sterling E Dist GBP 2.19
Germany 3.750% 04-Jan-2017 2.07
United Kingdom 2.000% 22-Jul-2020 1.68
Germany 1.750% 15-Apr-2020 1.09
Germany 1.250% 14-Oct-2016 1.08
Germany 1.500% 15-Apr-2016 1.04
Germany 0.500% 07-Apr-2017 1.02

Registered For Sale In

  1. Belgium
  2. Chile
  3. France
  4. Germany
  5. Luxembourg
  6. Netherlands
  7. Switzerland
  8. United Kingdom

Fund Info

  • Launch date08/12/2006
  • Share Class size19,948Mn
  • Base currencyGBP
  • ISIN GB00B1H05049

Purchase Info

  • Min. initial investment500
  • Min. additional investment10


  • 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 GBP).