Giant M&G bond fund suffers £2.7bn outflows

clock

Investors have taken £2.7bn of their money out of M&G's flagship Optimal Income fund in three months after weaker performance due to manager Richard Woolnough's cautious stance.

One of Europe's largest bond funds shrank from £23.8bn in March to £20.9bn at the end of June, according to figures from Morningstar, the FT reports. In fund ranks 61st out of 79 in its sector over the past year, figures from FE Analytics show. Analysts blamed the underperformance primarily on Woolnough's (pictured) short-duration positioning, which they said held back returns at a time when European government bonds saw sharp yield compression. Performance has piked up of late, they added, and over a five-year period, its performance remains top-quartile. M&G said it would not ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight: Beyond 60/40

Invesco
clock 25 March 2024 • 5 min read
'Fundamental shift': Why transparent investing really matters

'Fundamental shift': Why transparent investing really matters

‘There needs to be a concerted shift towards greater openness’

Simon Camilleri
clock 18 March 2024 • 4 min read
Partner Insight: Passive and active — the case for both

Partner Insight: Passive and active — the case for both

Invesco
clock 18 March 2024 • 4 min read