Clients now invariably turn to this flexible multi-asset class fund in preference to its longer-established bond fund.The fund, with R2,2bn under management, is nonetheless much smaller than Prudential’s R40bn Inflation Plus fund, which is just a whisker higher up the risk spectrum.Enhanced Income has a particularly high allocation to foreign assets, which make up about 18% of the assets. Some of this is held through funds such as the Sparinvest High Yield Value Bond Fund and the iShares Corporate Bond exchange traded fund. It holds about 5% in property through its Enhanced SA Property Tracker Fund, and holds much of its corporate bond exposure through the pooled Prudential Corporate Bond Fund, which makes up 20% of assets.Calendar 2015 was the worst year in the fund’s history as it eked out a modest 4% return. Fund manager David Knee, recently appointed chief investment officer of Prudential SA, says the structure of the fund means it can be expected to underperform its cash-plus 2...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.