Fund Objective

The principle objective is to produce an income return which is a defined margin above the income return of the benchmark. The secondary objective is to produce a total return which is consistently above the benchmark. Both objectives are measured over rolling three year periods.

Investment Approach

The manager conducts a disciplined approach to property investment management. This is done by combining market forecasts and research views on rental growth, depreciation rates and risk premia with the detailed market knowledge of in-house surveyors. This allows us to reach a view of what the prospective performance of property markets and assets will be given their current price. We can then use this to assist with buy, sell or hold decisions.

The Fund is diversified across the different property sectors. This is achieved by reviewing the structural and portfolio risk implications of holding various assets with the Fund and when acquiring new assets for the Fund. In researching properties and therefore the associated risk, the following are considered: location, property type, rent review and lease expiry pattern, tenant, industry sector, lease covenants and physical and environmental factors.

The Prudential Distribution Bond is a unit-linked distribution bond. It forms part of a multi-asset investment portfolio, and, as such, the property component cannot be invested in separately.