The fund often featured in the top-10 best-sellers list in 2011, but this was the only month it reached pole position. It beat the likes of Jupiter Merlin Income Portfolio, M&G Global Dividend and Newton Global Higher Income to the top spot.
Best-selling funds in December 2011
| Name |
IMA Sector |
| M&G Optimal Income |
Sterling Strategic Bond |
| Jupiter Merlin Income Portfolio |
Mixed Asset 20-60% |
| Premier Multi-Asset Distribution |
Mixed Asset 20-60% |
| Aviva Cash |
Money Marketing |
| Architas MM Balanced |
Mixed Asset 40-85% |
| Thames River Distribution |
Mixed Asset 20-60% |
| M&G Global Dividend |
Global |
| Newton Global Higher Income |
Global Equity Income |
| M&G Strategic Corporate Bond |
Sterling Corporate Bond |
| Henderson MM Distribution |
Mixed Asset 20-60% |
Source: Cofunds
Woolnough’s £4bn M&G Strategic Corporate Bond fund also made it onto the top-10 list, finishing in ninth place.
According to FE Analytics, both M&G Optimal Income and M&G Strategic Corporate Bond have significantly outperformed their IMA Sterling Strategic Bond sector average over one, three and five years, and with less volatility. Over five years they are the two best-performing funds of their kind by a wide margin.
The M&G Optimal Income portfolio is more volatile than its counterpart, though it is yielding slightly more, and has a better record over three years. It has a one-year historic yield of 4.77 per cent, compared with 4.22 per cent from M&G Strategic Corporate Bond.
Performance of funds vs sector over 5-yrs
Source: FE Analytics
The popularity of the two funds is supported by FE Analytics inflows data. M&G Optimal Income and M&G Corporate Strategic are among the eight best-selling funds over the last three months, with inflows of £239m and £346m respectively.
December was generally a good month for Strategic Bond funds, accounting for 14 per cent of Cofunds’ net sales. However, IMA Mixed Investment 20-60% Shares continued its reign as the highest-selling sector, attracting 48 per cent of inflows.
In spite of the poor performance of the Thames River multi-manager range in 2011, the Thames River Distribution fund made it into the top-10, while Thames River Cautious Managed finished in 16th place.
Woolnough also manages the £5.3bn M&G Corporate Bond fund, which is a consistent top-quartile performer in its Sterling Corporate Bond sector.
Performance of manager vs peer group over 10-yrs
Source: FE Analytics
Overall, the FE Alpha Manager has returned 86.06 per cent in the last decade – almost twice as much as his peer group composite.