M&G Investments is a part of Prudential PLC, one of the world’s largest insurers.
M&G is the fund management arm of Prudential. In 1931 they launched the first Unit Trust (collective investment fund) to UK investors. With over £230 Billion under management, they really are an investment giant.
A very highly regarding fund from M&G is the Optimal Income Fund. With £15,662 Million = £15.6 Billion in this fund, it is massive.
The Fund aims to provide a total return to investors through strategic asset allocation and specific stock selection. The Fund will be at least 50% invested in debt instruments, but may also invest in other assets including collective investment schemes, money market instruments, cash, near cash, deposits, equities and derivatives. Derivative instruments may be used for both investment purposes and efficient portfolio management.
Government bonds 21.5%
Investment grade bonds 46.8%
High yield bonds 18.1%
In the past 5 years this fund has grown, and even in the financial crisis of 2008.
The top investment holdings are:
Verizon Communications 2.7%
Granite Master Issuer 2.1%
Lloyds Banking Group 1.9%
BAA 1.1 %
GE Capital 0.9%
EDF Energy 0.8%
Interesting to see that this fund is holding Blue Chip Assets, such as financial securities issued from corporates like Microsoft, General Electric, HSBC etc. Profitable companies that are able to pay dividends and interest on bonds.