Prudential are able to leverage off the strength of the T&IO, offering advisers a large and well resourced multi-asset specialist team in the UK and with access to investment professionals worldwide.
Asset allocation is a critical influencer of multi-asset success, determining how diversified portfolios are positioned for the long-term, whilst able to seize opportunities and respond to risk. T&IO have built a strong team and developed well established beliefs and attributes that multi-asset demands:
The Long Term Investment Strategy (LTIS) team use a significant amount of data to help build a picture for the global economic outlook which is reflected in a detailed set of Capital Market Assumptions. The research will factor in long-term trends like globalisation, population growth, GDP growth, demographics and trends in technological progress.
The LTIS team have also developed a proprietary economic scenario generator, known internally as GeneSIS. The system not only helps build optimised portfolios but allows the business to understand how portfolios may behave in many different scenarios, for example, future Brexit related outcomes.
As yields compress and return expectations fall, utilising less traditional asset classes such as private equity, infrastructure and hedge funds, and emerging asset classes is increasingly important within a portfolio. M&G Alternatives manages £7.9bn (as at 30 June 2021) in alternative assets ensuring diversification at all times.
T&IO’s asset allocation skills drive the performance of a wide range of risk managed active, risk managed passive and smoothed funds including PruFund Growth and PruFund Cautious.
Multi-asset funds demand sizeable resources to competently deliver key functions like strategic asset allocation, portfolio management, manager oversight and risk management. T&IO are amply resourced to respond effectively, seizing opportunities as they arise and with access to a large number of investment professionals worldwide.
The M&G Treasury and Investment Office look at the latest developments in investment markets with their weekly investment commentary and podcast.
The 2021 review continues the theme of evolving portfolios to capture new asset classes, future growth opportunities and sources of more attractive returns from fixed income markets.
M&G Treasury and Investment Office discuss how M&G are incorporating ESG into their investment strategies, the latest data on inflation and its drivers, and the results of Q3 earnings.