A Guide to Prudential's Sample Portfolios
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For Adviser use only – not approved for use with clients Adviser Guide A Guide to Prudential’s Sample Portfolios > Contents Page 3 Sample Portfolios Pages 4 and 5 Portfolios – Growth Options Pages 6 and 7 Portfolios – Income Options Page 8 Availability This guide provides you with information about our sample portfolios and how they could be used to help you when advising your clients. These portfolios could be used across selected products from Prudential and Prudential International. 02 A Guide to Prudential’s Sample Portfolios :: Adviser Guide > Sample Portfolios The sample portfolios we offer combine the asset allocation skills of Prudential’s Portfolio Management Group (PMG) and the fund selection expertise of Old Broad Street Research (OBSR). We hope that these sample portfolios can help you target different clients’ investment needs. Sample Portfolios Asset Allocation – suggested Sample Portfolios Fund Selection – selected by by our Portfolio Management Group (PMG) Old Broad Street Research (OBSR) > The PMG are the in-house strategists and ‘manager > OBSR are an independent research company that of managers’ for Prudential in the UK provide us with a list of recommended funds based on their extensive research > They are responsible for the investment strategy for our multi-asset Funds > These funds are known as the PruSelect fund range and they are available through various Prudential products > They control over £120 billion of Prudential’s investments* > Based on their independent views we’ve asked them to pick the funds from the PruSelect fund range, > PMG’s asset allocation views will be reviewed and Prudential’s and Prudential International’s Fund may change on an annual basis to reflect the latest Range, which they believe can work best as part of asset allocation views from PMG. the asset allocations suggested by the PMG. *Source: PMG, as at September 2008 > OBSR will decide if any changes are needed to their suggested fund choice on a quarterly basis The Sample Portfolios > Five growth portfolios > Available across a range > Two income portfolios of products How sample portfolios could help you > They can provide you with a suggested starting point that > They could help save you the time, effort and expense can help you build an investment solution for your clients of building your own portfolios > You can benefit from the asset allocation skill of > As the portfolios are reviewed, and may change, then Prudential’s PMG they can be a useful reference point when you are preparing for a future client review. > You can benefit from the fund selection expertise of OBSR The sample portfolios in this guide are suggested starting points that we hope can help you build the correct investment solution for your client. Adviser Guide :: A Guide to Prudential’s Sample Portfolios 03 > Portfolios – Growth Options Aims Growth 1 The Portfolio is designed predominantly with capital preservation in mind. The Portfolio invests in Funds whose principal exposure is in Government bond and cash markets, but some exposure to Funds containing corporate bonds is also included. There is no exposure to equity and property Funds. Growth 2 The Portfolio is designed to offer a managed exposure to a broad range of investment markets, but constructed in a defensive manner so as to avoid undue risk at the portfolio level. A large proportion of the Fund is invested in bonds, with potential long term capital growth driven by a small exposure in equities and property. Growth 3 The Portfolio is designed to offer some long term growth linked to equity markets, but a significant proportion of the portfolio is invested in bonds to manage the overall portfolio’s risk. Over half of the investment is exposed to bond funds to meet the portfolio's overall risk objective. Growth 4 The Portfolio targets long term growth by significantly investing in Funds linked to equity and property markets, but also allocates around one third of the assets to Funds containing bonds to moderate the overall risk of the portfolio. Growth 5 The Portfolio primarily targets long term growth by investing in higher risk funds with the potential for strong returns over the long term. This is achieved by an investment predominantly in Funds linked to equity and property markets with a modest 10% exposure to high yield bonds to offer some diversification. 04 A Guide to Prudential’s Sample Portfolios :: Adviser Guide Portfolio Name (% Holding) Asset Type and Fund Name Growth 1 Growth 2 Growth 3 Growth 4 Growth 5 UK Equity Income 0 0 0 0 0 UK Equity 0 5 10 15 20 BlackRock UK 5 10 10 7 M&G Recovery 5 7 Schroder UK Alpha Plus 6 International Equity 0 5 20 35 60 M&G Global Leaders 5 10 13 15 Newton Global Higher Income 10 Artemis Global Growth 13 15 Neptune Global Equity 9 15 Investec Global Free Enterprise 15 Property 0 10 12 15 10 Prudential Property/M&G Property Portfolio* 10 12 15 10 UK Government Bonds 30 15 11 7 0 M&G Gilt & Fixed Interest Income 30 15 11 7 International Government Bonds 20 15 11 7 0 Invesco Perpetual Global Bond 10 Newton International Bond 10 15 11 7 UK and European Investment Grade Bonds 20 30 21 13 0 Invesco Perpetual Corporate Bond 6 15 11 13 M&G Strategic Corporate Bond 7 15 10 Old Mutual Corporate Bond 7 Corporate Bonds 15 15 12 8 10 Aegon High Yield Bond 8 8 12 8 10 Artemis Strategic Bond 7 7 Cash/Deposit 15 5 3 0 0 Cash/Deposit Fund * 15 5 3 * These Funds are not included in the PruSelect fund range. The portfolios in this guide are correct as at 19 January 2009. For the latest sample portfolios please speak to your Prudential Account Manager. The portfolios could change and it should be noted that any existing client sample portfolios are not automatically updated as a result. Adviser Guide :: A Guide to Prudential’s Sample Portfolios 05 > Portfolios – Income Options Aims Income 1 The Portfolio is designed mainly with a focus on income, but with some scope for capital growth over the longer term. The Portfolio invests in Funds that are predominantly exposed to equities, property, bonds and cash, with significant exposure to bonds to support the delivery of income. The suggested Funds are mainly invested in sterling based assets to help the stability of the income stream. Income 2 The Portfolio is designed to target both income and capital growth. The Portfolio invests in Funds that are predominantly exposed to equities, property, bonds and cash, with significant exposure to a combination of equity and property to support long term capital growth. The suggested Funds are mainly invested in sterling based assets to help the stability of the income stream. 06 A Guide to Prudential’s Sample Portfolios :: Adviser Guide Portfolio Name (% Holding) Asset Type and Fund Name Income 1 Income 2 UK Equity Income 15 55 Artemis Income 8 11 AXA Framlington Equity Income 11 Invesco Perpetual High Income 7 11 Jupiter Income 11 Neptune Income 11 UK Equity 0 0 International Equity 0 0 Property 8 15 Prudential Property/M&G Property Portfolio* 8 15 UK Government Bonds 27 0 M&G Gilt & Fixed Interest Income 27 International Government Bonds 0 0 UK and European Investment Grade Bonds 30 20 Invesco Perpetual Corporate Bond 10 10 M&G Strategic Corporate Bond 10 10 Old Mutual Corporate Bond 10 Corporate Bonds 20 10 Aegon High Yield Bond 10 5 Artemis Strategic Bond 10 5 Cash/Deposit 0 0 * These Funds are not included in the PruSelect fund range. The portfolios in this guide are correct as at 19 January 2009. For the latest sample portfolios please speak to your Prudential Account Manager. The portfolios could change and it should be noted that any existing client sample portfolios are not automatically updated as a result. Adviser Guide :: A Guide to Prudential’s Sample Portfolios 07 > Availability These Funds and portfolios are available through a choice of tax wrappers with various product options. These include > Prudential Investment Plan – an onshore bond that helps you to shape the product charging structure and commission > Flexible Investment Plan – an onshore bond with a range of features and options > Pru’s Flexible Retirement Plan – a single product wrapper containing a personal pension, income drawdown and SIPP > Portfolio Account from Prudential International – a portfolio bond with four flexible charging options and access to over 2,500 funds. www.pruadviser.co.uk INVS10905 01/2009 "Prudential" is a trading name of The Prudential Assurance Company Limited (which is also used by other companies within the Prudential Group). The Prudential Assurance Company Limited is registered in England and Wales. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and regulated by the Financial Services Authority. The registered office of Prudential International is in Ireland at Montague House, Adelaide Road, Dublin 2. Prudential International is a marketing name of Prudential International Assurance plc.