South Africa
Namibia
Tactical Asset Allocation
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.
We're focused on investment excellence.
MEET THE TEAM
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.
-
Equity And Listed Property
Downloads
-
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.
-
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.
-
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.
-
Multi Asset
Downloads
-
M&G Balanced
Who Should Invest
This fund is suitable for Institutional investors with an average to high risk tolerance and a long term investment horizon. The product is compliant with Regulation 28 of the Pension Funds Act.
-
M&G Domestic Balanced
Who Should Invest
This fund is suitable for Institutional investors with a low to medium risk tolerance and a long term investment horizon. The product is compliant with Regulation 28 of the Pension Funds Act.
-
M&G Real Return - Inflation Plus 5%
Who Should Invest
This fund is suitable for Institutional investors that seek steady inflation-beating growth of capital through an actively managed portfolio that complies with Regulation 28 of the Pension Funds Act.
-
M&G Real Return - Domestic Inflation Plus 5%
Who Should Invest
This fund is suitable for Institutional investors that seek steady inflation-beating growth of capital through an actively managed domestic only portfolio that complies with Regulation 28 of the Pension Funds Act.
-
M&G Real Return - Medical Aid Inflation Plus 5%
Who Should Invest
This fund is suitable for Medical Aid Schemes that seek steady inflation-beating growth of capital through an actively managed portfolio that complies with Regulation 30 of the Medical Schemes Act.
-
Dollar Denominated
Downloads
-
M&G Global Balanced Fund
Who Should Invest
This fund is ideal investors seeking long-term capital growth from a diversified portfolio of global assets. The recommended investment horizon is 5 years or longer.
-
M&G Global Bond Fund
Who Should Invest
This fund is ideal for investors seeking returns from a diversified portfolio of global debt and fixed income securities. The recommended investment horizon is 2 years (or longer when used as strategic exposure to the asset class).
-
M&G Global Equity Fund
Who Should Invest
This fund is ideal for investors seeking long-term capital growth from a diversified portfolio of global equity securities. The recommended investment horizon is 7 years or longer.
-
M&G Global Inflation Plus Fund
Who Should Invest
This fund is ideal for investors seeking to preserve their capital from the detrimental effects of inflation over time by investing in a diversified portfolio of global assets. The recommended investment horizon is 3 years or longer.
-
M&G Global Property Fund
Who Should Invest
The fund is ideal for investors seeking long-term capital growth from a diversified portfolio of global property securities. The recommended investment horizon is 7 years or longer.
-
M&G (Lux) Global Listed Infrastructure Fund
Who Should Invest
This fund is ideal for investors seeking both long-term income and capital growth from a diversified portfolio of global equity securities with a special focus on infrastructure. The recommended investment horizon is 5 years or longer.
-
M&G (Lux) Global Sustain Paris Aligned Fund
Who Should Invest
This fund is ideal for investors seeking long-term income and capital growth from a diversified portfolio of global equity securities, with a focus on companies that contribute towards the Paris Agreement climate change goal. The recommended investment horizon is 5 years or longer.
-
Fixed Income
Downloads
-
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.