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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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