An update from the M&G Treasury and Investment Office (T&IO) detailing the recent Strategic Asset Allocation (SAA) changes that have been implemented across the PruFund range of funds.
A forward-looking, evolving approach to strategic asset allocation:
We periodically review our strategic asset allocation against our long-term capital market assumptions, taking into account a range of possible future scenarios. We consider a range of qualitative scenarios and also benefit from our in-house, stochastic asset model, GeneSIS, to map out a broad range of future scenarios across capital markets and asset classes, interest rates, inflation etc.
This allows us to create robust portfolios for clients which are highly diversified by geography and asset type, across a wide range of economic environments. Rather than relying on one single area to generate significant returns, PruFunds use the sum of their parts to create outcomes with the right mix of assets that are well positioned for future growth, while staying true to the funds’ risk profile.
The Long-Term Investment Strategy team within T&IO are responsible for the SAA review. Key to this is their own capital market assumptions for the expected returns, volatilities and correlations of the various asset classes that sit within PruFunds. A look under the bonnet at the SAA process can be found here.
PruFund Growth Strategic Asset Allocation as at 1 May 2025.
