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- Well established approach
- Depth of specialism
- Specialist fund managers
T&IO's Investment Philosophy
The key to delivering long-term stable returns is driven by how well the underlying drivers of risk and return are managed in a portfolio.
Every investment decision T&IO make is the result of an approach developed over many years which has led to well established beliefs and attributes.
Their investment philosophy allows T&IO to add value from a combination of different areas:
Investment expertise
We're hands-on, proactive and collaborative in our approach to decision-making. |
We conduct in-house research and modelling, driving insights exclusive to us. |
We demand a depth of specialism at every stage of the investment process. |
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Specialism at every stage
T&IO are a large and well-resourced multi-asset team. They include experts in macro-economic analysis, specialists in strategic - and tactical - asset allocation, actuaries, investment strategists and a 7-strong Manager Oversight team. The Manager Oversight team have close relationships with high quality internal teams such as M&G Investments, M&G Alternatives and M&G Real Estate as well as access to a large network of external fund managers.
A team of complementary specialists in... |
How the investor benefits |
ESG Integration Expertise and Heritage |
We implement Environmental Social Governance (ESG) considerations into everything we do, from the SAA process to integrating ESG factors into manager selection and oversight and considering ESG factors in mandate design. |
In-House Capital Market Research and Modelling |
Our proprietary analysis tools and research allow a deeper understanding of underlying asset classes’ behaviours over time. |
In-House Scenario Modelling |
A key differentiator, we use proprietary analysis and tools to model the risks, returns and correlations between asset classes, educating decisions in SAA. |
Portfolio Construction |
A reputation for creating robust and diversified portfolios that support long-term value and reduce risk. |
Strategic Asset Allocation (SAA) |
Our core specialism. Driving performance and decreasing volatility for investors over time. |
Alternative Asset Allocation |
Access to non-traditional asset classes via M&G Alternatives including private equity, real assets and other diversifying strategies such as hedge funds, which enable solutions that may not be available with other providers. |
Specialist Fund Management |
With T&IO focusing on underlying asset selection, we’re able to employ fund managers who specialise in specific asset classes or markets. |
Risk and Compliance |
Our ‘three lines of defence’ approach minimises risk for both advisers and their clients. |
Investing in Alternatives
T&IO have close relationships with high quality internal teams such as M&G Alternatives, who manage over £7.9bn across a diversified global portfolio of assets. This video allows you to gain a greater understanding of their day to day roles and how their investments can lead to greater diversification within the PruFund range of funds.
Long-Term Investment Strategy
Find out about T&IO’s Long-Term Investment Strategy team and their roles and responsibilities in determining the strategic asset allocation and hedging policies across our range of products, helping to deliver long-term stable returns.
ESG approach to investing
Responsible investing - This generally means seeking to manage risks posed by Environmental,Social & Governance (ESG) factors and avoiding harmful activities, which is typically implemented via negative exclusions in areas such as; controversial weapons, tobacco, coal mining or gambling.
Historically, the term "Ethical" investing has had a similar meaning to "Responsible" investing.
Please note, we do not warrant that any of the third party funds offered on Retirement Account adhere to the above examples, advisers should satisfy themselves via their own due diligence as to whether a particular fund meets their criteria.
Sustainable investing – this approach looks to invest in sustainability challenges that can also present a financial opportunity, whilst benefitting broad groups or stakeholders.
Impact investing – this type of investing aims to contribute to solutions to environmental or societal problems, potentially for underserved or disadvantaged groups or stakeholders.
The term "ESG" stands for Environmental,Social and Governance and these are typically factors that a fund manager can take account of as part of their investment process, whether that be in the pursuit of financial returns, managing financial risks or seeking to derive a particular non-financial outcome for investors. Examples of ESG factors are;
- Environmental - considers a firm’s carbon footprint or environmental challenges such as water usage, climate change or deforestation
- Social - is focused on issues such as working conditions like child labour, impact on local communities and workforce diversity
- Governance - concerns how a company is managed and includes issues such as executive pay, diversity, political activities, anti-bribery and corruption policies.
What is ESG, who is it for and what’s the driver?
Listen to Ben Constable-Maxwell, Head of Sustainable and Impact Investing with M&G Investments, as he discusses ESG and who it is for, its different strategies, drivers and ESG investing in practice.
Latest T&IO updates
T&IO Weekly Market Updates
The M&G Treasury and Investment Office look at the latest developments in investment markets with their weekly investment commentary and podcast.
Positioning portfolios for higher inflation
We think that inflation could peak this year as expected, but that it will likely remain volatile, with risks skewed to the upside over the medium-term. The extent to which we may be seeing a regime shift in inflation will become clearer with time, however, in the intervening period we must continue to guard against its pernicious impacts on the real value of our portfolios.
Investment Office Insights Q2 2022 – ESG performance and should we be concerned about a recession
The Investment Office Insights article is a quarterly thought leadership piece which covers 2-3 topical items that the Investment Office think are worthy of comment and analysis. Each quarter, you will get a chance to hear from various teams within the Investment Office, depending on what is topical at the time.
© Prudential 2022
"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.