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    Tactical Asset Allocation

    Tactical Asset Allocation (TAA) is the intentional deviation away from a fund’s long-term strategic asset allocation benchmark, in order to benefit from the periodic market mispricing opportunities at asset class level. We operate several TAA ‘overlay’ mandates where we aim to add value at a total fund level by exploiting asset class mispricing through the use of futures instruments to buy or sell asset-class indices.

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    What is Tactical Asset Allocation (TAA)?

    TAA is the intentional deviation from a fund’s long-term strategic benchmark to benefit from periodic mispricing opportunities at an asset class level. TAA is independent of the funds’ strategic asset allocation (SAA) or current asset allocation. The TAA manager aims to add value at a total fund level by implementing overweight positions in cheap asset classes and underweight positions in expensive asset classes. For example, the TAA manager will be overweight bonds if current bond yields exceed the manager’s assessment of “fair yield”. This “fair yield” can broadly be defined as the equilibrium return expected to be earned from the asset class over the long run through various economic cycles.

    M&G Investments’ expertise in TAA

    M&G Investments was one of the first investment management companies to offer tactical asset allocation as a stand-alone service, both in the UK and in South Africa, and consequently now has one of the most experienced asset allocation teams within the industry worldwide. This skill base was transferred to the South African office in the late 1990s.

    TAA Mandates

    M&G Investments manages several mandates for clients that seek to add to overall fund returns through TAA. These mandates are typically managed for large retirement funds that operate a specialist (rather than a balanced or multi-asset) investment strategy. This offering is currently only available on a segregated basis.

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    Equity and Listed Property

    • Equity And Listed Property

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    • M&G Houseview Equity

      Quicklook

      M&G Houseview Equity

      Who Should Invest

      This fund is suitable for Institutional investors with an average to high risk tolerance and a long term investment horizon. The fund remains ideally suited as a core holding for retirement funds or multi-managed products where an active portfolio is used as anchor component and matched with smaller satellite mandates. Depending on market conditions, Houseview Equity may at times be equally concentrated as Select Equity, but will generally hold more individual stock positions. 

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    • M&G Select Equity

      Quicklook

      M&G Select Equity

      Who Should Invest

      This fund is suitable for Institutional investors with an average to high risk tolerance and a long term investment horizon. The fund incorporates a more concentrated portfolio construction process; it is managed within a higher risk budget and will generally reflect higher risk measures, whether measured as active share or tracking error. Clients whose investment strategy is to blend concentrated (“higher conviction”) mandates of different active managers are well advised to consider Prudential Select Equity.

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    • M&G Enhanced Index Tracker Property

      Quicklook

      M&G Enhanced Index Tracker Property

      Who Should Invest

      This fund is suitable for Institutional investors with a medium to high risk tolerance requiring medium-to long-term capital and income growth through efficient and cost effective exposure to the Listed Property sector in South Africa. The product complies with Regulation 28 of the Pension Funds Act, to the extent that this applies to a specialist asset class portfolio.

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    • M&G Property

      Quicklook

      M&G Property

      Who Should Invest

      Investors who seek exposure to South African listed property as part of a diversified portfolio. Alternatively, investors looking for a growing income stream but who are willing to be exposed to capital volatility. The recommended investment horizon is 5 years or longer.

      Fund Details
      1 YearSince Inception

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    Multi Asset

    Dollar Denominated

    Fixed Income

    • Fixed Income

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    • M&G Core Bond

      Quicklook

      M&G Core Bond

      Who Should Invest

      This fund is suitable for Institutional investors with a low to medium risk tolerance that require a high level of income from their capital investment with relatively low risk. The product complies with Regulation 28 of the Pension Funds Act, to the extent that this applies to a specialist asset class portfolio.

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    MandG Investment Managers (Pty) Ltd is a licensed financial services provider. MandG Investments Southern Africa (Pty) Ltd (previously called Prudential Portfolio Managers South Africa) is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company is a direct subsidiary of M&G plc, a company incorporated in the United Kingdom. The Prudential Assurance Company is 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.