ESG Fund Factsheet

For adviser use only

PruFund Planet

Classification: Sustainable

Management style: Blend

Introduction

PruFund Planet is a range of five funds, each with their own risk profile that seek to deliver positive environmental and societal outcomes. It’s designed for clients who want to know their savings are creating positive outcomes but who also want a smoothed investment experience.

Name Launch Date ABI Sector Portfolio OCF* Fund Size (m)
PruFund Planet 1 26/07/2021 Unclassified 0.83% £11.5
PruFund Planet 2 26/07/2021 Unclassified 0.86% £37.6
PruFund Planet 3 26/07/2021 Unclassified 0.88% £46.1
PruFund Planet 4 26/07/2021 Unclassified 0.90% £25.3
PruFund Planet 5 26/07/2021 Unclassified 0.91% £4.9

About Prudential

Prudential are a leading savings & Investments business founded in 1848. They are part of the M&G family of brands all aligned behind the same ambition; to manage their customer’s savings and investments so they can live the life they want, while aiming to make the world a little better along the way.

Prudential are dedicated to acting responsibly in everything they do, guided by their core values of care and integrity to create a more positive future, not just for their customers but for the planet, society and the next generation too.

Assets under management*

£125.4m

Total Assets in Core Range:

*As at 10/08/2022

ESG Process

Funds that invest across Prudential’s spectrum of positive outcomes; from clean technology and renewable energy to social enterprise, have three categories of outcome:

1. Mitigating Environmental, Social and Governance risks and minimising negative outcomes.

2. Pursuing Environmental, Social and Governance opportunities.

3. Investing in positive outcomes for disadvantaged groups and stakeholders.

PruFund Planet applies ESG restrictions on the individual policies of the fund managers employed for each strategy, which are aligned in principle with the M&G Treasure and Investment Office (T&IO). However T&IO do not have direct influence over all of the constituent funds within the portfolio and therefore cannot guarantee full exclusion of the areas identified.

While some of the underlying funds may not have explicit restrictions, by virtue of their investment strategy they are still unlikely to invest in these areas.

Exclusion Policies

Prudentials investment experts, T&IO look to enforce a minimum standard of exclusions across the PruFund Planet range:

  • Coal
  • Controversial weapons
  • Tobacco
  • Adult Entertainment
  • Gambling
  • Companies in violation of the UN’s Global Compact Principles regarding human rights, labour, the environment and anti-corruption.

Cost

The average OCF over the full range and share classes is 0.88%. This is relatively high* when compared to other Blended Multi-Asset ESG funds available.

*based on a comparison of the average cost of a range of select multi asset blended ESG funds

Key themes

The PruFund Planet range key themes include:

  • Environmental factors
  • Companies with robust controls
  • Things that benefit society

Investment Performance

The fund range has only been in existence for a short period of time and therefore extensive performance data is not available. However over a one year period all of the funds have outperformed the relevant sector average.

Performance to 25/08/2022, source FE Analytics.

Past performance is not a reliable indicator of future performance.

Platform availability

The ASI MyFolio Sustainable funds are available on the following platforms:

  • M & G Wealth

Risk tools

The ASI MyFolio Sustainable funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • Evalue
  • Synaptic
  • Finametrica

Tenet Opinion

The PruFund Planet range is an addition to the popular PruFund range, and uses the same smoothing process to reduce the short term volatility in the fund value that would be seen by clients in more traditional unit linked funds.

As the funds have only recently been launched, there is limited data on their performance. However they have performed promisingly when compared to their sector peers thus far.

The portfolios are primarily focused on utilising funds that are focused on generating positive outcomes that benefit people, communities and the planet as well as funds that are contributing to solutions to social and environmental challenges and targeting underserved communities. The fund has less of a focus on investing in a way that excludes companies that may be doing harm, and so may be suitable for clients who want to invest in a way that supports good causes and ESG related solutions.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).