The fund invests in listed equity securities that are trading at a discount to intrinsic value. We determine the intrinsic value by following a bottom-up valuation-based approach, focusing on a sustainable earnings level and price to earnings ratio.
The fund invests in listed South African government and corporate bonds, including nominal and inflation linked bonds.
The fund seeks to maximize total return by investing for both current income
and capital appreciation. This is achieved by increasing exposure to bonds and
duration when the house view on bonds is positive.
The fund aims to deliver returns that are significantly higher than pure money market funds as well as call deposits while maintaining a high degree of liquidity and capital preservation. The fund invests in call deposits, money market instruments and short-term debt with a maturity of up to 2 years.
The fund follows an asset allocation approach. Strategic asset allocation is structured to generate long-term real returns. Tactical asset allocation around the strategic bands takes advantage of short-term asset mispricing. Dynamic asset allocation strategies are used to protect capital over a rolling 12 month period.
The Fund is a prudential global balanced portfolio. It seeks to take the best ideas across the range of products,including equities, bonds, money market, international, commodities and asset allocation. These are combined to produce the best risk-return profile for a prudential investor with a long-term horizon.