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M&G OPTIMAL INCOME A GBP - Fund overview

Bestinvest rating 5 stars


Overview of M&G OPTIMAL INCOME A GBP

The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. It is not an absolute return product and therefore does not have a specific return target, but aims to outperform the IMA Strategic Bond peer group average. Consistent with the manager’s top-down approach, we expect asset allocation (and thus credit risk), duration and yield curve positioning to be the major contributors to fund performance.

Standard Initial Charge

4.00% 0.00%

Invest via Bestinvest to save 4.00%
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Fund summary

Sector  £ Strategic Bond
Product type  OEIC
Launched  December, 2006
Size  £5,749m
Yield 4.1%
Charging basis  INCOME
Dividends paid  31/5, 30/11.
Bid price(inc) 127.97p
Bid price(acc) 155.05p

Fund Charges

Standard Initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Total expense ratio 1.42%
Reduction in yield (10yr) 1.42%

Bestinvest says


A manager with a strong track record across all market conditions and fixed income mandates; combined with the resources of the M&G Group, make this a powerful investment proposition. The portfolio is currently tilted in favour of better quality high yielding bonds and more cautious on the outlook for the financial bonds. The manager is more agnostic on the outlook for inflation.

Portfolio

m&g optimal income a gbp asset allocation illustration
Allocation Proportion
Equity 9%
High yield bonds 28%
Quality bonds 62%
Property 0%
Commodities 0%
Hedge 0%
Fund cash 1%
m&g optimal income a gbp equity geographic illustration
Allocation Proportion
UK 20%
Europe 35%
Nth America 45%
Japan
Pacific
Other Equity
m&g optimal income a gbp equity capitalisation illustration
Allocation Proportion
Large Caps 97%
Mid Caps 3%
Small Caps 0%

Investment process


The Fund aims to provide a total return to investors through strategic asset allocation and specific stock selection. The fund may invest across the range of fixed income asset classes, including high yield, investment grade, government bonds and structured products (eg CDOs and CLOs). In addition the manager may invest in derivatives, such as CDS, futures and options both for investment purposes and efficient portfolio management, however these instruments will generally not be used to apply notional leverage to credit exposure in the fund. The manager applies a top-down macro economic investment approach in order to determine the overall degree of credit and duration risk he wants to take in the portfolio and combines this with a bottom-up approach to select individual securities.

The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested. Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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