Strength in multi-asset
Underpinned by M&G Treasury & Investment Office (T&IO), Prudential offer clients a proven track record in multi-asset investment, derived from a deep understanding of strategic asset allocation and the ability to access over 34 asset types.
Prudential are able to leverage off the strength of the T&IO, offering advisers one of the largest and best resourced specialist teams in the UK and with access to investment professionals worldwide.
Asset allocation is a critical influencer of multi-asset success, determining how diversified portfolios are positioned for the long-term, whilst able to seize opportunities and respond to risk. T&IO have built a strong team and developed well established beliefs and attributes that multi-asset demands:
Identifying macro economic shifts
The Long Term Investment Strategy (LTIS) team use a significant amount of data to help build a picture for the global economic outlook which is reflected in a detailed set of Capital Market Assumptions. The research will factor in long-term trends like globalisation, population growth, GDP growth, demographics and trends in technological progress.
The LTIS team have also developed a proprietary economic scenario generator, known internally as GeneSIS. The system not only helps build optimised portfolios but allows the business to understand how portfolios may behave in many different scenarios, for example a negative outcome to Brexit.
Depth in alternative investments
As yields compress and return expectations fall, utilising less traditional asset classes such as private equity, infrastructure and hedge funds, and emerging asset classes is increasingly important within a portfolio. M&G Alternatives manages £7bn (as at 30 June 2020) in alternative assets ensuring diversification at all times.
Building asset allocation strength into a range of funds
T&IO’s asset allocation skills drive the performance of a wide range of risk managed active, risk managed passive and smoothed funds including PruFund Growth and PruFund Cautious.
Resourcing to meet the sector's demands
Multi-asset funds demand sizeable resources to competently deliver key functions like srategic asset allocation, portfolio management, manager oversight and risk management. T&IO are amply resourced to respond effectively, seizing opportunities as they arise and with access to a large number of investment professionals worldwide.