M&G Optimal Income Fund

Select share classes

M&G Optimal Income Fund Sterling I Acc

Category GBP Allocation 0-20% Equity


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This fund can be held in an Investment ISA, SIPP and Investment Account
Last buy/sell price

252.12p

arrow-down-0.21p (-0.08%)

Fund Code

MGOTA

B1H0571

GB00B1H05718

Prices updated as at 28 Mar 2024
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Prices in GBX

Investment objective
The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the composite index, over any five-year period. The composite index is made up of one third Bloomberg Global Treasury Index GBP Hedged, one third Bloomberg Global Aggregate Corporate Index GBP Hedged and one third Bloomberg Global High Yield Index GBP Hedged. At least 50% of the Fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade unrated securities and ABS. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency. At least 80% of the Fund is in Sterling or hedged back to Sterling.

Our view

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The M&G Optimal Income Fund is managed by Richard Woolnough and aims to deliver income and capital growth by investing in a broad range of fixed income securities, wherever the he sees the greatest opportunities.

Woolnough may also hold up to 20% of the portfolio in company shares when he believes they offer better value than bonds.

Woolnough buys assets which provide the ‘optimal’ income stream for investors. The flexible nature of the fund allows him to scour the entire fixed income space and beyond to find the best income streams.

Woolnough will buy government, investment grade and high yield bonds, and even some equities.

Important Information

Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and(3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.