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M&G Optimal Income

Ranked 12 out of 60 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.

Objective

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

Performance

Sterling Strategic Bond over : 30/09/2016 - 30/09/2017
  • Rank 12/60 Total Return
  • Rank 12/60 Standard Deviation
  • Rank 5/60 Max Drawdown
Fund Name Currency Risk
10 Rathbone Strategic Bond Inst Acc GBP

2.1

11 Aviva Investors Strategic Bond SC 1 Inc

Currency exposure is hedged

Currency exposure is hedged

GBP

2.1

12 M&G Optimal Income A Inc GBP

2.1

13 Jupiter Strategic Bond Acc GBP

2.2

14 Old Mutual Bond 1 A GBP Inc GBP

2.2

Total Return

Quarterly Performance

to 29/09/2017 Annual Q1 Q2 Q3 Q4
2017 1.1% 2.4% 0.8%
2016 8.2% 1.0% 0.7% 3.8% 2.5%
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

Breakdown

31/07/2017

Top 10 Holdings

Stock Size
Credit Default Swap General Securities 2.61
Germany 0.500% 23-Feb-2018 2.48
Germany 0.250% 13-Apr-2018 2.48
Germany 4.250% 04-Jul-2018 2.34
Germany 1.000% 22-Feb-2019 2.30
Germany 0.500% 12-Apr-2019 2.29
Germany 1.000% 12-Oct-2018 2.29
Germany 0.750% 15-Apr-2018 1.95
Germany 1.750% 15-Apr-2020 1.35
Germany 0.500% 13-Oct-2017 1.23
31/07/2017

Registered For Sale In

  1. Singapore
  2. Switzerland
  3. United Kingdom

Fund Info

  • Launch date08/12/2006
  • Share Class size20,831Mn
  • Base currencyGBP
  • ISIN GB00B1H05049

Purchase Info

  • Min. initial investment500
  • Min. regular additional investment100

Charges

  • Annual management1.25%
  • Initial investment3

Related News

Woolnough predicts BoE will start selling back corporate bonds

The need for a ‘crisis response’ is over, says blockbuster bond manager, so expect sales.

M&G and Prudential investment arms to merge

Prudential is to merge its funds arm M&G Investments with its Prudential UK and Europe businesses to form a new division.

Woolnough: Why I favour the US and Europe over the UK

The UK's capital markets are becoming less important in the world, according to leading bond manager Richard Woolnough.

Squeaky Gars time: Barclays says sell Standard Life

Gars outflows suggest Standard Life's ascendancy has peaked, says Barclays.

Woolnough moves to 'negative duration' on UK bonds

Unusual move sees manager Richard Woolnough protect £15 billion M&G Optimal Income fund from high bond prices and rising inflation.

Woolnough ramps equity risk in M&G Optimal Income

Industry veteran adds stock bets to primarily bond-based blockbuster strategy to capitalise on relative value.

Woolnough warns BoE against hasty post-Brexit action

Veteran investor says time is on Mark Carney’s side and aggressive action at next central bank meeting would be a misstep.

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.

...more...

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