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 ...
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