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From 7 April 2008 Prudential M&G, which incorporates our Institutional Fixed Income and Pooled Pension Funds businesses, will operate under the M&G brand. This move provides a consistent corporate identity across all of M&G’s business areas which form the successful and innovative investment management arm of the Prudential Group.
Over the past five years, M&G has built a substantial third party institutional business utilising the skills developed originally for our internally managed Prudential funds. Today, we are one of the largest fixed income players in Europe and our institutional business, which operates under the Prudential M&G brand, spans Pooled Pension funds, Segregated Fixed Income, Leveraged Loans, Property Finance, Collateralised Debt Obligations and Infrastructure Finance.
M&G is one of the leading investment brands in the UK and we see clear benefits in operating under a single brand. Clients can be assured that the same investment-led culture and dedication to client service remains the same for our institutional business.
Answers to some of the most frequently asked questions on this matter can be found here. (766 KB) You will require Adobe Acrobat to view this pdf.
As part of its secured property strategy, M&G invests primarily in UK commercial real estate with fixed or inflation-linked uplifts. This offers strong defensive characteristics and has received notice for bucking the general downward property trend over last few months.
The strategy has attracted increasing attention from investors looking for products providing stable and inflation hedged revenue streams, capable of matching long-term liabilities.
Through this strategy, M&G is continuing to build on its diversified portfolio of high quality UK commercial real estate assets, providing long-dated, sterling denominated corporate cash flows which increase over time.
By investing in real estate, we can access fixed and index-linked income, supported by underlying real estate values and the credit quality of the tenants. These can provide secure, rising, inflation-hedged returns which can be more attractive than other alternative fixed income investments. It can offer a defensive alternative to traditional property allocations without necessarily sacrificing the long-term upside potential of property investment.
M&G's combined real estate and fixed interest experience brings an unrivalled new approach to the investment management of high lease value property funds. In addition to utilising traditional real estate investment analysis, M&G utilises its extensive credit research capability and an innovative matrix approach to balance the credit quality of the tenant with the quality and value of the underlying real estate.
For further information please contact: Andrew Swan on 020 7548 2375 or Ben Jones on 020 7548 2384.
(February 2008)
Prudential Pensions Limited is pleased to announce the launch of two new funds in its higher alpha range. The UK Growth and Dividends funds have an excellent track record in the Retail arena and we are pleased to be able to bring the same fund management skills and conviction to the Pooled Pensions market:
UK Equity Growth
UK Equity Growth is an actively managed, mainstream UK equity fund run by Simon Murphy. The fund aims to outperform the FTSE All-Share Index by 2% p.a. on a rolling three-year basis by investing in a diversified portfolio of 60 - 80 stocks, split broadly equally between 'undervalued quality' and 'positive change' companies. Stock selection is based on fundamental company analysis.
UK Equity Dividend
The UK Equity Dividend Fund invests in a range of UK equities with the aim of achieving a steadily increasing income stream. Fund manager Richard Hughes aims for the fund to outperform the FTSE All-Share Index by 2% pa on a rolling three-year basis and takes a bottom up, individual investment approach to stock selection. The portfolio has a bias towards high-yielding sectors of the market, but nevertheless has the aim of being broadly diversified.
(November 2007)
The flagship PPL UK Equity fund has undergone a significant evolution in its investment approach. Instead of being directly invested, the fund now aims to achieve its objective of 1% outperformance of the FTSE Allshare by investing in a complementary set of five PPL funds:
| Fund | Fund Manager |
| UK Equity Growth | Simon Murphy |
| UK Equity Dividend | Richard Hughes |
| Specialist UK Equity | Tom Dobell |
| Smaller Companies | Garfield Kiff |
| 350 Tracker | Nigel Booth |
The new fund manager, Simon Murphy, will use the 350 Tracker fund to balance the impact of the higher alpha funds on the aggregate portfolio.
(November 2007)
The fifth vehicle in the Panther CDO series managed by Prudential M&G priced €350m of notes on 23rd July 2006. The Panther series is unique in Europe due to its multi-asset class mix including commercial real estate B loans, ABS, leveraged loans, public bonds and private placements, exploiting Prudential M&G's proven track record in managing a wide range of fixed income asset classes.
Seven classes of notes were offered with the S&P/Fitch senior AAA notes priced at Euribor +28.6bp p.a. Prudential M&G was voted European CDO manager of the year at the ISR 2006 awards.
(July 2007)
Prudential M&G’s newly launched secured debt strategy offers institutional investors access to a broad range of secured, floating rate assets offering stable cash flows uncorrelated with any other assets in the private debt market.
The relative scarcity of attractive, secured floating rate assets resulted in early commitments to the new fund totalling approximately €115m from a number of European pension funds.
Our secured debt strategy will give institutional investors access to a diversified pooled investment vehicle offering target returns of LIBOR +1.5%.
Through its exposure to European private debt asset classes, the strategy allows investors access to markets which are difficult to invest in individually.
(July 2007)
Prudential M&G has launched a new property income fund which invests primarily in UK commercial real estate with fixed or inflation-linked uplifts.
The fund combines the proven fund management expertise and scale of Prudential M&G, one of the UK’s largest asset managers together with PRUPIM, one of the top ten global real estate investment managers.
This innovative approach aims to deliver a secured long-term income stream through a well diversified portfolio of properties and tenant credit quality.
Andrew Swan, Director, Fixed Income, said: "There is increasing demand from pension funds for investment which can deliver stable and long term returns. Now more than ever, they are looking for alternatives to equities and tradition fixed income instruments that can offer premium returns of 1.5% net above Gilts.
"Our approach brings together fixed income and property to launch a ground-breaking fund which seeks to balance, on a risk adjusted basis, both the credit quality of the tenant and the underlying real estate value, which is deemed much safer than bonds."
(July 2007)
