M&G optimal income fund awarded new rating by OBSR

The M&G Optimal Income Fund has been awarded an A rating by Old Broad Street Research (OBSR). One of the most unconstrained bond funds available in the market, the M&G Optimal Income Fund has recorded top decile performance since its launch on 8 December 2006 against its official peer group, the IMA UK Other Bond sector and has delivered a return of 1.92% compared with its sector average of -4.74%.

Jonathan Willcocks, managing director global sales at M&G, comments: "Richard has a fantastic record of getting the big macro calls right, so I am delighted that OBSR has awarded the M&G Optimal Income Bond Fund with an A rating. Since its launch in December 2006, the M&G Optimal Income Fund has successfully reached over £200 million in size. Many IFA's are turning to this fund because it is a one stop shop for all their investors' needs and Richard has the flexibility to invest across the fixed income universe. This award also acknowledges Richard's outstanding and consistent long-term performance record with over 18 years of investment expertise spent in corporate bond portfolio management."

Gill Hutchison, investment research director at OBSR, comments: "Richard has the freedom to invest across the entire fixed income universe, which means that he can expose the fund to high yield bonds, investment grade corporate bonds or government bonds according to where he sees the most value. Using the fund's flexibility, coupled with Richard's investment management expertise, the fund has delivered strong performance since launch compared to other funds of a similar type.

"Richard has applied the same top-down macro approach he has successfully used in his more traditional funds, actively managing the fund's asset allocation, sector and rating exposures, and stock selection."

This new A OBSR rating follows hot on the heels of Standard & Poors recently awarding the M&G Optimal Income Fund with an AA rating.

Earlier this month, Citywire A rated Richard Woolnough added a further accolade by being named UK Corporate Bond Fund Manager 2008 at the annual Investment Week Awards for his consistent performance in running the M&G Corporate Bond Fund and the M&G Strategic Corporate Bond Fund. M&G also won the coveted award for Best Global Group.