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Investment Insights

PruFund Planet range of funds: 2026 Strategic Asset Allocation update

By Life Investment Office (LIO)

Last Updated:27 Aug 26

10 min read

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Contents

  1. Why are the changes being made?
  2. Key Changes from the 2026 review
  3. How PruFund Planet differs from the standard PruFund range
  4. Asset allocations
  5. Outlook

The 2026 Strategic Asset Allocation (SAA) review is designed to ensure the PruFund Planet range remains aligned with its long-term investment objectives while maintaining a broadly similar risk and return profile to the wider Risk Managed PruFund range. 

While PruFund Planet invests within an ESG-focused investment universe, the objective remains unchanged: to deliver attractive long-term outcomes through diversified portfolios that can navigate a range of market conditions. 

Why are the changes being made?

The review follows a period of strong market returns, particularly from equities, alongside continued uncertainty around inflation, interest rates and geopolitical developments. 

Against this backdrop, the latest changes aim to:

  • Maintain the intended long-term risk profile of each fund
  • Enhance diversification
  • Rebalance allocations towards their strategic targets
  • Ensure portfolios remain appropriately positioned for future market conditions

Importantly, these changes are evolutionary rather than transformational. The overall structure of the PruFund Planet range remains unchanged, with each fund continuing to provide a diversified blend of growth and defensive assets appropriate to its risk profile. 

The latest SAA changes were implemented on 1 August 2026.

Key Changes from the 2026 review

Following a period of strong equity performance, the review includes modest reductions to selected areas that have performed particularly well, including parts of Asia and emerging markets. These changes help ensure portfolios remain aligned with their long-term strategic allocations. 

A key theme of the review is a modest repositioning within fixed income. 

Allocations to developed-market government bonds have increased, while exposure to investment-grade credit, Asian fixed income and private credit has been reduced. 

This reflects tighter credit spreads and the potential for government bonds to provide diversification benefits within multi-asset portfolios, particularly during periods of market stress.

The review also creates scope for the future introduction of UK-inflation linked government bonds, subject to a suitable investment vehicle being available.

Allocations to Other Strategies have increased across the range. 

These strategies provide additional sources of return that are less dependent on traditional equity and bond market performance, helping enhance diversification and portfolio resilience.

This review includes modest reductions to private assets, including property, private equity and private credit. These changes reflect the need to maintain balance across the overall portfolio, rather than any change in our long-term conviction in these asset classes. 

Private markets continue to play an important role within the Planet range, particularly infrastructure where we see attractive long-term opportunities linked to themes such as energy transition, digital infrastructure and climate resilience.

How PruFund Planet differs from the standard PruFund range

A defining feature of the PruFund Planet range is its use of ESG-investment strategies, including impact-oriented and thematic approaches.

The 2026 review does not alter this approach. Instead, it seeks to maintain broad alignment with the wider PruFund range, while continuing to invest within the ESG-focused opportunity set available to Planet investors. 

As a result, investors continue to benefit from diversified exposure across equities, fixed income, property, infrastructure and alternative investments, while maintaining the sustainability characteristics that are central to the Planet proposition. 

Related insights

Asset allocations

The new allocations by asset class for PruFund Planet Funds 1-5 from 1 August 2026 are available below.

Equities

 

Planet 1

Planet 2

Planet 3

Planet 4

Planet 5

UK

 3.03% 5.68% 8.65% 11.74% 15.28%

Europe ex UK

 1.35% 2.53% 3.85% 5.23% 6.81%

North America

 2.70% 5.06% 7.71% 10.46% 13.61%

Japan

 0.81% 1.52% 2.31% 3.14% 4.08%

Asia ex Japan

 2.88% 5.40% 8.22% 11.16% 14.52%

Global Emerging

 1.23% 2.31% 3.51% 4.77% 6.20%

Total

12.00%

22.50%

34.25%

46.50%

60.50%

Real Estate

Asset

Planet 1

Planet 2

Planet 3

Planet 4

Planet 5

UK

 5.25% 6.00% 6.60% 6.75% 6.75%

Europe ex UK

 1.23% 1.40% 1.54% 1.57% 1.58%

North America

 0.96% 1.10% 1.21% 1.24% 1.24%

Asia

 1.31% 1.50% 1.65% 1.69% 1.69%

Total

 8.75% 10.00%
 11.00%
 11.25%
 11.26%

Alternatives

Asset

Planet 1

Planet 2

Planet 3

Planet 4

Planet 5

Private Equity

 5.23% 5.35% 5.38% 5.38% 5.38%

Infrastructure

 3.66% 3.75% 3.76% 3.76% 3.76%

Private High Yield

 1.57% 1.61% 1.61% 1.61% 1.61%

Total

10.46%

 

 10.71%
 10.75%
 10.75%
 10.75%

Other Strategies

Asset

Planet 1

Planet 2

Planet 3

Planet 4

Planet 5

TAA Mandate

 4.00% 4.25% 4.50% 5.00% 5.25%

Fixed Income

Asset

Planet 1

Planet 2

Planet 3

Planet 4

Planet 5

Europe inc. UK

 13.32% 10.84% 8.14% 5.44% 2.48%

UK Government

 4.84% 3.94% 2.96% 1.98% 0.90%
US 3.63% 2.96% 2.22% 1.48% 0.67%

Asia

 7.87% 6.41% 4.81% 3.22% 1.46%
FI Private Credit 3.63% 2.96% 2.22% 1.49% 0.67%

Global High Yield

1.82%

 1.48% 1.11% 0.74% 0.34%

Emerging Market Debt

5.45%

 4.44% 3.33% 2.23% 1.01%
Global Impact 19.98% 16.26% 12.21% 8.17% 3.71%

Total

 60.54% 49.29% 37.00% 24.75%
 11.24%

Cash

Asset

Planet 1

Planet 2

Planet 3

Planet 4

Planet 5

Cash

4.25%

 3.25%

2.50%

1.75%

1.00%

Source: Life Investment Office as at 1 August 2026.

Outlook

This review demonstrates the ongoing oversight applied to the PruFund Planet range. Rather than responding to short-term market movements, the changes reflect a disciplined approach to portfolio construction aimed at maintaining diversification, managing risk and supporting long-term customer outcomes. 

This review represents an evolution of the existing framework, ensuring the range remains aligned with its objectives while continuing to deliver the sustainability characteristics that are central to the Planet proposition. 

As always, investors should remember that the value of investment can fall as well as rise and they may get back less than originally invested. Diversification does not guarantee a profit or protect against losses. 

This content has been prepared by the Life Investment Office (LIO) for information purposes only and does not contain or constitute investment advice. Information provided herein has been obtained from sources that LIO believes to be reliable and accurate at the time of issue but no representation or warranty is made as to its fairness, accuracy, or completeness. The views expressed herein are subject to change without notice. Neither LIO, nor any of its associates, nor any director, or employee accepts any liability for any loss arising directly or indirectly from any use of this document. The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back less than the original amount invested and past performance information is not a guide to future performance.

‘Life Investment Office (LIO)’ includes the team formerly known as Prudential Portfolio Management Group (PPMG), Prudential Portfolio Management Group Limited, is registered in England and Wales, registered number 2448335.

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