We’re now in the longest bull market of all-time, at least in modern history. The S&P 500 has not only made new highs, it’s done so without falling more than 20% for more than 115 months, with the previous record having been set during the great expansion of the 1990s.
Richard Woolnough is perhaps one of the best known fixed income investors in the UK, running M&G’s £23bn Optimal Income Fund. We caught up with him to discuss the prospects for fixed income investors, as well as what his biggest career challenge has been so far and what advice he’d give to someone starting out in the industry today.
Given the ongoing risks to sterling, many investors have been looking at the overseas sales exposure of their funds. All else being equal, funds with high overseas sales exposure should outperform in the event of a ‘no deal’ Brexit, as the resulting fall in sterling would make overseas earnings more valuable to sterling investors.
The fund has also been affected by the continual drip feed of US sanctions against Russia. Traditional Russian government bonds have not been targeted by sanctions yet though. It would be an extreme move if they were – especially as a third of local currency Russian debt is foreign owned.
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