Excellence in

W HAT is excellence in fund management? Head of Real Return and Portfolio Manager at Prudential, Michael Moyle, answers this question with the suggestion that it is all about providing investors with investment solutions that help them achieve and maintain the lifestyle that they desire by generating inflation-beating returns at acceptable levels of risk.

Many retired and soon to retire investors adopt a capital preservation strategy of investing in cash when they retire.

“This is understandable, but it may come at a significant price. The negative impact of inflation on your savings is slow and takes effect over time, which can hide the cost of low risk investing at a time when you need to continue growing your money,” he explains.

One way of protecting the purchasing power of savings while limiting risk is by investing in funds with a proven record of generating real returns and preserving capital.

Moyle says the return profile of the Prudential Inflation Plus Fund achieves just this, by delivering returns in excess of inflation, while aiming to expose investors to a level of market risk that is broadly similar to that of government bonds.

The Fund invests in a diversified portfolio of domestic and foreign asset classes such as equity, listed property, conventional and inflation-linked bonds and cash to generate returns.

The Fund is a suitable investment for retirement funds as it complies with Regulation 28 of the Pension Funds Act.

The primary aim of the Fund is to outperform inflation by 5 percent a year before fees and tax over rolling three-year periods. The secondary objective is to aim to incur no losses over rolling 12-month periods.

However, Moyle points out that the Fund does not guarantee the above objectives, but manages it on a ‘best efforts’ basis.

By investing in the Prudential Inflation Plus Fund, investors leave the