M&G Optimal Income hit by £1.5bn outflow amid bond turmoil

Investors pulled an estimated £1.5bn from Richard Woolnough's M&G Optimal Income fund in April and May as bond market volatility brought a sudden end to the portfolio's rapid AUM growth.

Optimal Income was the UK's bestselling retail fund last year, enjoying several billion pounds worth of inflows from UK and continental European investors. It took in another £900m in Q1 2015 to reach £24.5bn in size as of the end of March, according to Morningstar. Estimates from the data provider show those flows have now reversed. The fund saw £760m in net outflows in April and a further £710m last month, its figures show. Woolnough's £4.8bn Strategic Corporate Bond fund has seen negligible outflows over the same period, suggesting investors may have specifically turned more cautio...