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M&G (Lux) Optimal Income Fund
Uncertain market environments require a dynamic and flexible approach to effectively capture optimal income streams. Our global, flexible, and diversified bond fund, with a proven track record of over 17 years, invests in government, investment-grade corporate, and high-yield bonds. As an active bond house, we continuously adjust our bond exposure based on the current economic cycle, leveraging our in-house expert team and robust valuation framework.
Flexible
Flexibility in different environments
Global
Diversified across sectors and issuers
Active yet simple
Actively managed, combining macroeconomic views and bottom-up security selection
Outstanding
Award winning fund with consistent long term performance
Discover the M&G (Lux) Optimal Income Fund
Outstanding Recognition
We are honored to receive the Best Fund Provider – Global Bond – Intermediate to Long Term award from Asian Private Banker. This recognition is a testament to our unwavering commitment to excellence and our ambition to consistently deliver value to our clients. In this complex environment, flexibility and strategic thinking are crucial to managing risks and seizing opportunities.
Award is not an indicator of future performance.
Source: Asian Private Banker Asset Management Awards for Excellence 2025.
Richard Woolnough shares what is takes to hold conviction through changing market conditions – from our award-winning income strategy.
Stay flexible with Optimal Income team
Led by our two portfolio managers, who bring an average of 30 years of experience, we are supported by numerous investment professionals and one of Europe’s largest credit analyst teams. This larger and more experienced team has enhanced our ability to seize a growing number of global opportunities.
M&G (Lux) Optimal Income Fund’s Portfolio Managers
Richard Woolnough
Fund Manager and Co-Head of Macro Fixed Income
Richard has over 30 years experience in fixed income markets. He joined M&G in January 2004 from Old Mutual.
Richard is the lead Fund Manager of M&G Optimal Income Strategy since its launch in December 2006. He also manages the M&G Corporate Bond Fund since February 2004 and M&G Strategic Corporate Bond Fund since launch in February 2004.
Richard holds a degree in economics from the London School of Economics.
Stefan Isaacs
Fund Manager and Co-Head of Macro Fixed Income
He joined M&G as a graduate in 2001 and was subsequently promoted to corporate bond dealer specialising in high yield bonds and euro denominated credit.
Prior to this Stefan worked as a fund manager’s assistant. He was appointed fund manager of the M&G European corporate bond strategy in April 2007 and deputy fund manager of the Optimal Income strategies since their inception in 2007. Since 2010, Stefan has manages a number of high yield and ESG HY bond strategies in London and in Luxembourg.
Stefan graduated BA (hons) International Business from Manchester Metropolitan University.
Source: M&G Investments, 31 December 2025. *This strategy originally launched on 8 December 2006 as a UK-authorised OEIC, named M&G Optimal Income Fund, run by the same fund managers, applying the same investment strategy.
Key risks associated with M&G (Lux) Optimal Income Fund
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.
The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets.
The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.
This is a marketing communication. Please refer to the prospectus and to the KID before making any financial investment decision.
Investment involves risk and may not be suitable for everyone. Past performance is not indicative of future performance. The value and income from the investment can fluctuate and is not guaranteed. Investors may not get back the amount they invested. The information should not be taken as a solicitation, offer, recommendation or advice of any security or investment service.
This website is intended for Professional Investors in Hong Kong as defined in the Securities and Futures Ordinance (Cap.571) and its subsidiary legislation. The information on these pages should not be used or relied upon by the public of Hong Kong or any other type of investor from any other jurisdiction.
This website is general in nature and is for information purposes only. The website is issued by M&G Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission.