M&G is perhaps the biggest name in the UK bond space, and M&G Optimal Income is its flagship offering. This ‘go-anywhere’ fund has a flexible mandate, which enables the manager to shift the interest rate exposure and to invest across the fixed income spectrum. The fund can, and often does, invest in some equities, and also derivatives.
What’s covered in this episode:
- Why it’s been an active year for the value investor
- Why TINA has been replaced by TIAA
- How interest rates have made bonds a more attractive investment
- How equities can help to optimise returns in a bond fund
- The impact of a 12-18mth lag from interest rate policy feeding into the real economy
- The impact of quantitative tightening
- What might happen to inflation in 2023
- Whether the manager is bullish or bearish for the next 12 months
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