Woolnough cuts equities to lowest since launch in M&G Optimal Income

Favours investment grade over HY

Laura Dew
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M&G's Richard Woolnough is holding his lowest ever exposure to equities since launching the Optimal Income fund in 2006.

The manager (pictured) of the £19bn fund has been gradually reducing his exposure to equities over the past couple of years and chose not to buy into the asset class following the recent sell-off. He has previously had exposure to companies such as BMW, BP and Intel, but exited these positions last year, and continues to believe equity valuations are too high. The fund is permitted to hold 20% in equities, but had just 0.2% in the asset class as of the end of August, the lowest allocation since launch. "Many companies which have bond-like characteristics like Nestlé, Apple and Micr...

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