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Prufund range report

Prufund range report

Savers have long sought the holy grail of investment; that is a return which is ahead of cash but with little or no risk to capital. Of course, no such investment exists, however the PruFund range go some way to this ideal by providing products that are designed to generate attractive long-term returns but where price movements are smoother than many other strategies investing in a similar mix of assets. Indeed, this range of multiasset funds from Prudential Assurance Company (Prudential), which helps manage expectations around growth rates, is home to a significant body of assets.

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A Spotlight On: Corporate Bonds

A Spotlight On: Corporate Bonds

The IA Sterling Corporate Bond sector is possibly one of the more straightforward sectors which the IA have put together. Funds must invest at least 80% of their assets in investment grade corporate bonds denominated in, or hedged back to, sterling. Nonetheless there is a range of funds in the sector, with more or less flexibility around duration and credit quality. This is a relatively large sector, encompassing close to 100 funds and some £85bn of assets, and therefore gives investors plenty of choice whether they wish to invest in a tracker fund or something more active.

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A Spotlight On: Multi-Manager Funds

A Spotlight On: Multi-Manager Funds

Over the last few years there has been an enormous amount of cost pressure on the financial services industry and asset managers have largely felt the brunt of this, with many cutting their fees to remain competitive. No other genre of fund has felt this more fiercely than the ‘traditional’ multi-manager fund. When we refer to a ‘traditional’ multi-manager fund we mean here a fund which invests predominantly in actively managed funds from across the whole of the market, not those which invest directly, or in passives or largely in funds from their own group.

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A Spotlight On: IA Global Bonds

A Spotlight On: IA Global Bonds

At first sight the IA Global Bond sector can leave most potential investors feeling bewildered. The sector is made up of 180 funds investing in a variety of geographies across both companies and governments of varying credit quality. And that’s before consideration of the plethora of currency hedging options available.

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A Spotlight On: UK Equity Income

A Spotlight On: UK Equity Income

According to the Investment Association’s (IA) January 2019 statistics, the IA UK Equity Income sector had total assets of £49.9bn, ranking it 10th largest of the IA’s 36 sector classifications. The sector currently consists of 90 funds, Artemis Income is the largest with assets under management (AUM) of £5.6bn, the TB Guinness UK Equity Income fund is the smallest at a rather modest £200k. Notably, there is somewhat of a concentration of assets among the largest strategies - 18 funds boast assets in excess of £1bn, which in turn, accounts for 71% of the sector’s total AUM. At the other end of the scale, there are eight funds with assets of less than £10m.

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A Spotlight On: IA Volatility

A Spotlight On: IA Volatility

The sector consists of funds that, instead of having a specific return objective, look to target a specific volatility target or range over the long term. Therefore it is perfectly feasible for a fund to have performed poorly but will still be meeting its primary objective by remaining within its specified volatility parameters.

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A Spotlight On: Global Equity Income

A Spotlight On: Global Equity Income

The IA Global Equity Income sector comprised of 56 funds with combined assets in excess of £19bn. To meet the IA's sector requirements, funds must achieve a yield premium to that of the MSCI World index and allocate at least 80% of their assets to global equities.

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Review of SAA tools

Review of SAA tools

The primary value of the strategic asset allocation (SAA) models appears to be as an objective tool that can be used within a suite of financial planning products. Such a financial planning suite may include tools to determine:

  • attitude to risk assessment
  • risk mapping
  • strategic asset allocation
  • savings programme assessment
  • risk illustration tools

In our opinion the SAA models that we have reviewed will perform a satisfactory role in meeting the needs of investors though advisers should be aware of the possible limitations of the approach.

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A guide to PROD

A guide to PROD

Through PROD the future relationship between advisers and manufacturers is set to change, with the purpose of ensuring that the regulator’s objectives are met. It is very likely that regulatory visits in the future will focus on matching the target market information of manufacturers with that of advisers. Alarm bells will inevitably ring where this is not the case…

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A Spotlight On: Sterling Strategic Bond

A Spotlight On: Sterling Strategic Bond

The IA Sterling Strategic Bond sector could most simply be characterised as a flexible bond sector in which investors outsource their fixed income allocations to fixed income experts who then asset allocate between corporate and government bonds.

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