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.

				
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