M&G Optimal Income Class PP GBP Acc
Report And Accounts
Simplified Prospectus / KIID
Performance
Discrete performance - to last month end
| 30/11/19 to 30/11/20 |
30/11/20 to 30/11/21 |
30/11/21 to 30/11/22 |
30/11/22 to 30/11/23 |
30/11/23 to 30/11/24 |
|
|---|---|---|---|---|---|
| Fund | 3.3% | 2.8% | -9.1% | 8.8% | 8.4% |
| Sector | 6.1% | 1.7% | -10.6% | 3.5% | 8.9% |
| Rank | 61/70 | 21/75 | 32/79 | 5/85 | 58/88 |
| Quartile | 4 | 2 | 2 | 1 | 3 |
Annualised performance
| Annualised | ||||
|---|---|---|---|---|
| 3 Years to 30/11/24 |
5 Years to 30/11/24 |
10 Years to 30/11/24 |
||
| Fund | 2.4% | 2.6% | 3.0% | |
| Sector | 0.3% | 1.7% | 2.7% | |
| Rank | 21/79 | 22/70 | 22/51 | |
| Quartile | 2 | 2 | 2 | |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| TREASURY NOTE 3.375% 15/05/2033 | 3.75 |
| TREASURY BOND 1.375% 15/08/2050 | 3.65 |
| TREASURY BOND 1.25% 15/05/2050 | 3.58 |
| M&G (LUX) FCP Sterling Liquidity Fund Z6A Acc | 3.54 |
| TREASURY NOTE 2.375% 15/05/2029 | 3.16 |
| TREASURY NOTE 1.375% 15/11/2031 | 2.81 |
| TREASURY NOTE 0.625% 15/05/2030 | 2.79 |
| ⅞ Treasury 2046 | 2.79 |
| ⅝% Treasury Gilt 2050 | 2.52 |
| TREASURY BOND 1.75% 15/08/2041 | 2.28 |
| Total | 30.86 |
Fund Aims
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 IA £ Strategic Bond Sector, over any five-year period.
Fund Manager
Richard Woolnough joined M&G in January 2004 and is fund manager of the M&G Optimal Income Fund, the M&G Corporate Bond Fund and the M&G Strategic Corporate Bond Fund, three of the company's flagship fixed interest funds. Richard began his career at Lloyds Merchant Bank in 1985, moving to Italian insurer Assicurazioni Generali two years later, followed by SG Warburg. In 1995, he became a fund manager at Old Mutual. Richard graduated from the London School of Economics with a BSc in economics.
Stefan Isaacs started at M&G in 2001 and was promoted to corporate bond dealer specialising in high yield bonds and euro denominated credit. He joined the fund management team in 2006 as an assistant fund manager covering high yield and European investment grade for M&G's fixed interest fund range. He was appointed fund manager of the M&G European Corporate Bond Fund in April 2007 and the M&G High Yield Corporate Bond Fund in October 2010. Stefan graduated from Manchester Metropolitan University with a degree in international business and French.
James Tomlins joined M&G in 2011 and was appointed fund manager of the M&G European High Yield Bond Fund later that year. In January 2014, he became co-manager of the M&G High Yield Corporate Bond Fund after two years being deputy manager on the fund. James is a specialist in high yield credit with more than 10 years’ experience in this sector. He was previously an analyst and then a fund manager at Cazenove Capital Management. Before Cazenove, James was at KBC Alternative Investment Management and in the three years prior to that worked at Merrill Lynch Investment Managers. James is a CFA charterholder. He holds an MA in history and PgDip in economics from the University of Cambridge.
Fund Overview
| Mid (20/12/2024) | 115.72p |
| Distribution yield | 3.81% |
| Underlying yield | 3.81% |
| Fund size (31/10/2024) | £1573.67m |
| Number of holdings | 476 |
| Entry Charge | 0.00% |
| Ongoing Charges | 0.53% |
| Launch date | 08/12/2006 |
Asset Allocation
| International Bonds | 67.91% | |
| UK Gilts | 12.12% | |
| UK Corporate Bonds | 9.90% | |
| Alternative Trading Strategies | 1.89% | |
| International Equities | 0.56% | |
| Cash and Equivalents | 0.29% | |
| UK Equities | 0.23% | |
| Other Assets | 7.11% |
Important Information
Source of portfolio data: Broadridge. Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of ongoing charges, but take no account of product charges. Ongoing charges may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Asset Allocation
| International Bonds | 67.91% | |
| UK Gilts | 12.12% | |
| UK Corporate Bonds | 9.90% | |
| Alternative Trading Strategies | 1.89% | |
| International Equities | 0.56% | |
| Cash and Equivalents | 0.29% | |
| UK Equities | 0.23% | |
| Other Assets | 7.11% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 89.93% | - | - | - | |
| Non-Classified | 7.11% | - | - | - | |
| Non-Classified | - | 3.54% | - | - | |
| Non-Classified | - | - | 3.54% | - | |
| Non-Classified | - | - | - | 3.54% | |
| Alternative Trading Strategies | 1.89% | - | - | - | |
| Alternative Trading Strategies | - | 1.89% | - | - | |
| Alternative Trading Strategies | - | - | 1.89% | - | |
| Alternative Trading Strategies | - | - | - | 1.89% | |
| Health Care | 0.46% | - | - | - | |
| Health Care | - | 0.46% | - | - | |
| Pharmaceuticals & Biotechnology | - | - | 0.46% | - | |
| Pharmaceuticals | - | - | - | 0.46% | |
| Cash and Equivalents | 0.29% | - | - | - | |
| Consumer Staples | 0.23% | - | - | - | |
| Food, Beverage & Tobacco | - | 0.23% | - | - | |
| Tobacco | - | - | 0.23% | - | |
| Tobacco | - | - | - | 0.23% | |
| Industrials | 0.09% | - | - | - | |
| Industrial Goods & Services | - | 0.09% | - | - | |
| Industrial Support Services | - | - | 0.09% | - | |
| Business Training & Employment Agencies | - | - | - | 0.09% | |
| Consumer Discretionary | 0.00% | - | - | - | |
| Travel & Leisure | - | 0.00% | - | - | |
| Travel & Leisure | - | - | 0.00% | - | |
| Casinos & Gambling | - | - | - | 0.00% | |
Regional Allocation
| North America | 37.59% | |
| Developed Europe - Excl UK | 22.56% | |
| UK | 22.25% | |
| Non-Classified | 12.43% | |
| South & Central America | 1.45% | |
| Australia & New Zealand | 1.43% | |
| Emerging Europe | 1.32% | |
| Japan | 0.43% | |
| Cash and Equivalents | 0.29% | |
| Other Regions | 0.25% |
Fixed Interest Currencies
| US Dollar | 38.30% | |
| Pound Sterling | 27.64% | |
| Euro | 23.57% | |
| Non-Fixed Interest Assets | 9.79% | |
| New Zealand Dollar | 0.41% | |
| Cash | 0.29% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| North America | 37.59% | - | |
United States
|
- | 36.90% | |
Canada
|
- | 0.69% | |
| Developed Europe - Excl UK | 22.56% | - | |
France
|
- | 6.59% | |
Spain
|
- | 2.95% | |
Italy
|
- | 2.69% | |
Germany
|
- | 2.62% | |
Netherlands
|
- | 2.36% | |
Ireland
|
- | 1.99% | |
Switzerland
|
- | 1.13% | |
Luxembourg
|
- | 0.59% | |
Finland
|
- | 0.43% | |
Belgium
|
- | 0.39% | |
Sweden
|
- | 0.34% | |
Denmark
|
- | 0.17% | |
Austria
|
- | 0.16% | |
Portugal
|
- | 0.16% | |
| UK | 22.25% | - | |
United Kingdom
|
- | 22.25% | |
| Non-Classified | 12.43% | - | |
| South & Central America | 1.45% | - | |
Mexico
|
- | 1.03% | |
Colombia
|
- | 0.42% | |
| Australia & New Zealand | 1.43% | - | |
Australia
|
- | 1.02% | |
New Zealand
|
- | 0.41% | |
| Emerging Europe | 1.32% | - | |
Serbia
|
- | 0.36% | |
Romania
|
- | 0.32% | |
Greece
|
- | 0.21% | |
Slovakia (Slovak Republic)
|
- | 0.19% | |
Hungary
|
- | 0.16% | |
Macedonia, The Former Yugoslav Republic Of
|
- | 0.08% | |
| Japan | 0.43% | - | |
Japan
|
- | 0.43% | |
| Cash and Equivalents | 0.29% | - | |
| Middle East & Africa | 0.16% | - | |
Cote D'Ivoire
|
- | 0.16% | |
South Africa
|
- | 0.00% | |
| Developed Asia | 0.10% | - | |
Singapore
|
- | 0.10% | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
14.11% |
| 5Yr - 10Yr Maturity |
|
32.57% |
| 10Yr - 15Yr Maturity |
|
5.51% |
| > 15Yr Maturity |
|
37.73% |
| Cash And Equivalents |
|
0.29% |
| Unknown Maturity |
|
3.57% |
| Other Asset Types |
|
6.21% |
Fixed Interest Quality Profile
| AAA |
|
29.35% |
| AA |
|
15.96% |
| A |
|
11.84% |
| BBB |
|
21.03% |
| Sub-Investment Grade |
|
0.84% |
| Unknown Quality |
|
10.91% |
| Cash and Equivalents |
|
0.29% |
| Other Asset Types |
|
9.79% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | TREASURY NOTE 3.375% 15/05/2033 | 3.75% | Bonds | United States |
| 2 | TREASURY BOND 1.375% 15/08/2050 | 3.65% | Bonds | United States |
| 3 | TREASURY BOND 1.25% 15/05/2050 | 3.58% | Bonds | United States |
| 4 | M&G (LUX) FCP Sterling Liquidity Fund Z6A Acc | 3.54% | Managed Funds | Non-Classified |
| 5 | TREASURY NOTE 2.375% 15/05/2029 | 3.16% | Bonds | United States |
| 6 | TREASURY NOTE 1.375% 15/11/2031 | 2.81% | Bonds | United States |
| 7 | TREASURY NOTE 0.625% 15/05/2030 | 2.79% | Bonds | United States |
| 8 | ⅞ Treasury 2046 | 2.79% | Bonds | United Kingdom |
| 9 | ⅝% Treasury Gilt 2050 | 2.52% | Bonds | United Kingdom |
| 10 | TREASURY BOND 1.75% 15/08/2041 | 2.28% | Bonds | United States |
Important Information
The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use. This factsheet is for investment professionals and is for information purposes only.
Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Identification Codes
| Sedol Code | BG086X0 |
| Mex Code | - |
| Isin Code | GB00BG086X04 |
| Citi Code | Q4RB |
Fund Charges
| Entry Charge | 0.00% |
| Ongoing Charges | 0.53% |
Aims and Benchmark
| Aims | 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 IA £ Strategic Bond Sector, over any five-year period. |
| Benchmark | A composite index made up of: • 1/3 Bloomberg Global Treasury Index GBP Hedged • 1/3 Bloomberg Global Aggregate Corporate Index GBP Hedged • 1/3 Bloomberg Global High Yield Index GBP Hedged |
| Benchmark Category | Target |
| IA Sector | £ Strategic Bond |
Fund Background
| Valuation frequency | Daily |
| Valuation point | 12:00 |
| Fund type | OEIC |
| Launch price | £1.00 |
| Fund currency | Pound Sterling |
| Fund domicile | United Kingdom |
| ISA allowable | Yes |
| SIPP allowable | Yes |
Distribution Details
| Income frequency | Annually |
| Distribution Type | Interest |
| Distribution Payment Basis | Net |
Ratings
| FE Crown |  |
Effect of Deductions
| Assuming a growth rate of 6.00% | Assuming a growth rate of 7.00% |
|---|---|
| - | - |
Fund Administration
| Fund Trustee/Depository | The National Westminster Bank plc |
| Fund Administrator | IFDS |
| Fund Registrar | IFDS |
| Fund Custodian | State Street Bank and Trust Company |
Group Details
| Group name | M&G Investments |
| Group address | 10 Fenchurch Avenue London EC3M 5AG United Kingdom |
| Group telephone | 0800 390 390 |
| Dealing telephone | 0800 328 3196 |
| info@mandg.co.uk | |
| Homepage | www.mandg.co.uk |
| Fax number | - |
Dealing
| Minimum Investment | - |
| Minimum Top Up | - |
| Minimum Regular Saving | - |
| Settlement Period: Buy | - |
| Settlement Period: Sell | - |
| Pricing Basis | None |
| Dealing Decimals | - |
Important Information
Ongoing charges may vary in the future and may be higher than they are now.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | 3.02 |
| Beta | 1.23 |
| Sharpe | 0.00 |
| Standard Deviation | 8.90 |
| Info Ratio | 1.00 |
Risk Factors
| Risk Factor | Yes / No |
|---|---|
| Charges to Capital | Yes |
| Emerging Markets | Yes |
| Concentrated Portfolio | No |
| Smaller Companies | No |
| High Yield Bonds | Yes |
| Sector Specific | No |
| Geared Investments | No |
| Value of Investments | Yes |
| Investments Long Term | Yes |
| Property | No |
| Exchange Rate | Yes |
| Higher Risk | Yes |
| Performance Charges | No |
| Derivative Exposure | Yes |
| Offshore | No |
| Income Eroding Capital Growth | Yes |
| Umbrella Liabilities | No |
| New Fund | No |
| Solvency of Depository | No |
| Solvency of Bond Issuers | Yes |
| Ethical Restrictions | No |
| Liquidity | Yes |
| Returns Are Not Guaranteed | Yes |
| Inflation | Yes |
| Taxation and Tax Relief | Yes |
Fund Specific Risks
Charges to Capital
Part, or all of the periodic annual management fee(s) and expenses may be charged to capital which could increase the potential for the capital value of your investment to be eroded. Your capital could also decrease if income withdrawals exceed the growth rate of the fund(s).
Emerging Markets
The fund invests in emerging markets. Generally less well regulated than the UK. There is an increased chance of political and economic instability with less reliable custody, dealing and settlement arrangements. The market(s) can be less liquid. If a fund investing in markets is affected by currency exchange rates, the investment could either increase or decrease. These investments therefore carry more risk.
High Yield Bonds
The fund invests in high yield bonds. High yield bonds carry a greater risk of default than investment grade bonds, and economic conditions and interest rate movements will have a greater effect on their price. Income levels may not be achieved and the income provided may vary.
Value of Investments
The value of investments, and any income can fall, as well as rise, so you could get back less than you invested. Neither capital nor income is guaranteed.
Investments Long Term
Investments should be regarded as long term and are not suitable for money which may be needed in the short term, you should always have a sufficient cash reserve.
Exchange Rate
This fund invests in securities outside the UK. The value of investments and any income from them may therefore decrease or increase as a result of changes in exchange rates between currencies.
Higher Risk
This fund is specifically aimed at sophisticated investors and is particularly high risk, because it concentrates on a region that may be exposed to unusual political or economic risks. You should only invest if you are comfortable with the specific risks pertaining to the fund in question. If you are not familiar with these you should ask us for a copy of the provider's key features and brochure.
Derivative Exposure
The fund invests in derivatives as part of its investment strategy, over and above their use for Efficient Portfolio Management (EPM). Investors should be aware that the use of these instruments can, under certain circumstances, increase the volatility and risk profile of the Fund beyond that expected of a fund that only invests in equities. The fund may also be exposed to the risk that the company issuing the derivative may not honour their obligations which in turn could lead to losses arising.
Income Eroding Capital Growth
The fund focuses on providing an income, which can reduce the prospects for capital growth, and in some cases the capital value may fall.
Solvency of Bond Issuers
If the fund you choose invests in bonds there is a risk that the issuer may default, resulting in a loss to the portfolio.
Liquidity
This fund can suffer from partial or total illiquidity, which may lead to considerable price fluctuations and the inability to redeem your investment.
Returns Are Not Guaranteed
What you receive when you sell your investment is not guaranteed; it depends on how your investments perform.
Inflation
Inflation will reduce the real value of your investments in future.
Taxation and Tax Relief
Levels of taxation and tax relief are subject to change.
Important Information
The risk factor definitions are provided by Broadridge. These definitions may differ from those of Prudential or any underlying fund manager. The data itself is provided by Prudential or the underlying fund manager.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Important Information
Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of ongoing charges, but take no account of product charges. Ongoing charges may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
"Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.