Prudential International Investment fund updates and key information

Not benchmarked

IA Mixed Investment 40-85% Shares Sector

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Growth Fund - the underlying fund.

Underlying Fund Objective: The fund aims to deliver a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of a composite index comprising two thirds global equities and one third global bonds, over any five-year period. It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 25% of the fund exposed to sterling and a minimum of 50% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Growth Fund - the underlying fund.

Underlying Fund Objective: The Fund aims to provide a higher total return (the combination of capital growth and income) net of the Ongoing Charge Figure, than the average return of the IA Mixed Investment 40-85% Shares Sector over any five-year period. It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 25% of the fund exposed to sterling and a minimum of 50% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Composite

IA Flexible Investment Sector

Previous objective

New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Managed Growth Fund - the underlying fund.

Underlying Fund Objective: The fund aims to deliver a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of a composite index comprising 85% global equities and 15% global bonds, over any five-year period. It is a multi-asset fund that invests at least 70% of its assets in other collective investment schemes in order to gain exposure to assets from anywhere in the world, including equities, fixed income, convertibles, cash, or near cash. The fund may also invest directly in these assets. In aggregate, the fund will invest at least 70% of its assets in equities, either directly or via collective investment schemes. Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Objective: The investment strategy of the fund is to purchase units in the M&G Managed Growth Fund - the underlying fund.

Underlying Fund Objective: The Fund aims to provide a higher total return (the combination of capital growth and income) net of the Ongoing Charge Figure, than the average return of the IA Flexible Investment Sector over any five-year period. It is a multi-asset fund that invests at least 70% of its assets in other collective investment schemes in order to gain exposure to assets from anywhere in the world, including equities, fixed income, convertibles, cash, or near cash. The fund may also invest directly in these assets. In aggregate, the fund will invest at least 70% of its assets in equities, either directly or via collective investment schemes. Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Objective: The investment strategy of the fund is to purchase units in the M&G Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the IA £ Corporate Bond Sector over any five-year period. At least 70% of the fund is invested, directly or indirectly through derivatives, in investment grade corporate debt securities issued by companies from anywhere in the world, including Emerging Markets. These securities are denominated in Sterling or hedged back to Sterling.

Other investments may include:  1. debt securities issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns and supranational bodies, denominated in any currency; 2. below investment grade and unrated debt securities;3. Asset-Backed Securities; 4. other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Objective: The investment strategy of the fund is to purchase units in the M&G Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the IA £ Corporate Bond Sector over any five-year period. At least 70% of the Fund is invested, directly or indirectly through derivatives, in investment grade corporate debt securities including investment grade Asset-Backed Securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities are denominated in Sterling or hedged back to Sterling.

Other investments may include:  1. debt securities issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns and supranational bodies, denominated in any currency; 2. below investment grade and unrated debt securities;3. below investment grade and unrated Asset-Backed Securities; 4. other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G). Investments in Asset-Backed Securities are limited to 20% of the Fund.  Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Eastspring Investments – Andrew Cormie

M&G Investment Management – Dave Perrett

PIA Pacific Markets GBP Ser B

PIA Asia Pacific GBP Ser B

Objective: The investment strategy of the fund is to purchase units in the LF Prudential Pacific Markets Trust - the underlying fund.

Underlying Fund Objective: The trust aims to produce capital growth through investment of at least 80% of the property of the Scheme in eastern markets, excluding Japan. Investment will primarily be in major markets such as Australia, Hong Kong, Singapore and Thailand, but to a lesser extend this Scheme may invest in emerging markets such as The Philippines, Taiwan and South Korea. Derivatives are used to manage the risk profile of the fund, reduce costs or generate additional capital or income.

Objective: The investment strategy of the fund is to purchase units in the M&G Funds (1) - Asia Pacific (ex Japan) Equity fund – the underlying fund.

Underlying Fund Objective: The Sub-Fund aims to provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than the FTSE Custom Asia Pacific ex Japan Country Capped Index over any three-year period.

Derivatives are used to manage the risk profile of the fund, reduce costs or generate additional capital or income.

PIA European Ser B Fund

PIA European Equity Ser B Fund

Objective: The investment strategy of the fund is to purchase units in the LF Prudential European Qualified Investor Scheme - the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth through investment in a range of European (excluding UK) securities, mainly equities. The fund has the flexibility to move between countries and markets, and the manager will seek to take advantage of variations on investment conditions. The fund will invest mainly in equities, but may additionally invest in other assets such as government securities, warrants, other transferable securities and collective investment schemes.

Objective: The investment strategy of the fund is to purchase shares in European (excluding UK) companies via other M&G funds. It is a “fund of funds” holding units in several more specialised European equity funds to give access to a variety of methods for generating investment returns in differing market conditions.

Fund Investments: At least 80% of the underlying funds’ Net Asset Value is directly invested in equity securities and equity-related securities of companies that are incorporated, listed, domiciled or do most of their business in the Europe, excluding the United Kingdom. The underlying funds may also invest in other transferable securities, cash, and near cash, directly or via funds (including funds managed by M&G) and may use derivatives for efficient portfolio management and hedging.

M&G – Richard Halle

M&G Treasury and Investment Office

Not benchmarked

FTSE World Europe Ex UK

Objective: The investment strategy of the fund is to purchase units in the LF Prudential North American Qualified Investor Scheme Fund. That fund aims to achieve long-term capital growth by investing in North American securities.

Fund Investments: The fund is actively managed by the fund manager, investing in securities across a range of market capitalisations. In addition to equities, the fund may invest in other assets such as government securities, warrants, other transferable securities and collective investment schemes.

Objective: The investment strategy of the fund is to purchase units in the M&G (ACS) BlackRock Optimised US Equity Fund – the underlying fund.

Underlying Fund Objective: The Sub-Fund aims to reflect the risk and return characteristics of the S&P 500 Index gross of the Ongoing Charges Figure and is expected to have an ex ante tracking error of around 1%.

The Sub-Investment Manager uses a structured and systematic, bottom-up stock selection process to build a portfolio with similar risk-return characteristics as the Index in order to meet the Sub-Fund’s investment objective; in addition the Sub-Investment Manager aims to maximise the Sub-Fund’s ESG characteristics by overweighting its investments in securities which  score well against the Sub-Investment Manager’s ESG research framework, and underweighting the securities which score less well. 

Richard Brody – PPMA

BlackRock

Not benchmarked

S&P 500

Objective: The investment strategy of the fund is to purchase units in the M&G Feeder of Property Portfolio. That fund invests solely in the M&G Property Portfolio, which aims to maximise long term total return (the combination of income and growth of capital).

Fund Investments: The M&G Property Portfolio invests in a diversified portfolio of commercial property mainly in the UK. The fund may also invest in other property related assets, including collective investment schemes, transferable securities, derivatives, debt instruments as well as government debt, money market instruments and cash.

Objective: The investment strategy of the fund is to purchase units in the M&G Feeder of Property Portfolio – the underlying fund.

Underlying Fund Objective: The investment objective of the Fund is to carry on Property Investment Business and to manage cash raised from investors for investment in the Property Investment Business. In doing so the fund aims to provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure and Property Expense Ratio, than the average return of the IA UK Direct Property Sector over any five-year period solely through investment in M&G Property Portfolio.

At least 70% of the Fund is invested directly in a diversified portfolio of commercial property in the UK. This may be reduced to 60%, if it is considered prudent for liquidity management.

The Fund may also invest in other property related assets including  other types of property, including residential property ; property of any type outside the UK; funds (including funds managed by M&G); and transferable securities; and money market instruments.

For liquidity management, the Fund may invest in cash; near cash; money market instruments; and government bonds, directly, or via funds (including funds managed by M&G). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

IA UK Direct Property Sector

3-month GBP LIBOR + 5%

SONIA + 5%

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Allocation Fund – the underlying fund.

Underlying Fund Objective: The fund aims to deliver a total return (the combination of capital growth and income) of at least 5% per annum above the 3-month GBP LIBOR rate, before any charges are taken, over any five year period. There is no guarantee that the fund will achieve a positive return over five years, or any other period, and investors may not get back the original amount they invested. It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 30% of the fund exposed to sterling and a minimum of 60% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Allocation Fund – the underlying fund.

Underlying Fund Objective: The fund aims to deliver a total return (the combination of capital growth and income) of at least 5% per annum above the Sterling Overnight Index Average (SONIA), before any charges are taken, over any five year period. There is no guarantee that the fund will achieve a positive return over five years, or any other period, and investors may not get back the original amount they invested. It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 30% of the fund exposed to sterling and a minimum of 60% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

PIA M&G Global Select Ser B

PIA M&G Global Sustain Paris Aligned Ser B

Objective: The investment strategy of the fund is to purchase units in the M&G Global Select Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the MSCI World Index over any five-year period.

At least 80% of the fund is invested in equity securities and equity-related securities of companies across any sector and market capitalisation that are domiciled in any country, including Emerging Markets.

The fund has a concentrated portfolio and usually holds fewer than 40 companies.

Sustainability considerations play an important role in determining the investment universe and assessing business models. The fund excludes securities issued by companies that are assessed to be in breach of the United Nations Global Compact principles on human rights, labour, environment and anti-corruption; and companies involved in the production of tobacco and controversial weapons.

The fund may also invest in other transferable securities, directly or via collective investment schemes (including funds managed by M&G). The fund may also hold cash and near cash for liquidity purposes. Derivatives may be used for efficient portfolio management and hedging

Objective: The investment strategy of the fund is to purchase units in the M&G Global Sustain Paris Aligned Fund - the underlying fund.

Fund Investments: The Fund has two aims:

• To provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than that of the MSCI World Index over any five-year period; and

• To invest in companies that contribute towards the Paris Agreement climate change goal.

At least 80% of the Fund is invested directly in equity securities and equity-related securities of companies across any sector and market capitalisation that are domiciled in any country, including Emerging Markets. The Fund has a concentrated portfolio and usually holds fewer than 40 companies.

The Fund invests in securities that meet the ESG Criteria and Sustainability Criteria.

The following types of exclusions apply to the Fund’s direct investments:

• Norms-based exclusions: investments that are assessed to be in breach of commonly accepted standards of behaviour related to human rights, labour rights, environment and anti-corruption.

• Sector-based and/or values-based exclusions: investments and/or sectors exposed to business activities that are assessed to be damaging to human health, societal wellbeing, the environment, or otherwise assessed to be misaligned with the Fund’s sector-based and/or values-based criteria.

• Other exclusions: investments assessed to be otherwise in conflict with the ESG Criteria and Sustainability Criteria.

The Fund may also invest in other transferable securities, money market instruments, cash and near cash for liquidity purposes, directly and via collective investment schemes (including funds managed by M&G).

Derivatives may be used for Efficient Portfolio Management and hedging.

The investment strategy of the fund is to purchase units in the Invesco UK Equity Income Fund - the underlying fund.

The investment strategy of the fund is to purchase shares in UK companies via other M&G funds. It is a “fund of funds” holding units in several more specialised UK equity funds to give access to a variety of methods for generating investment returns in differing market conditions.

The fund aims to achieve income and capital growth over the long term (5 years plus). The fund invests at least 80% of its assets in shares or other equity related securities of companies incorporated, domiciled or carrying out the main part of their economic activity in the UK. In pursuing the fund’s investment objective, the fund manager may consider it appropriate to also invest in other transferable securities (including private and unlisted equities and non UK companies), money market instruments, collective investment schemes (including funds managed by the Invesco group), deposits and cash. The fund may use derivatives for efficient portfolio management purposes only.

At least 80% of the underlying funds’ Net Asset Value is directly invested in equity securities and equity-related securities of companies that are incorporated, listed, domiciled or do most of their business in the United Kingdom. The underlying funds may also invest in other transferable securities, cash, and near cash, directly or via funds (including funds managed by M&G) and may use derivatives for efficient portfolio management and hedging.