Property and emerging market bets drive Pru returns

Group's Martin Brookes highlights punchy bets in equities, bonds and property as behind £74bn with-profits fund's continued performance

The Prudential's mammoth with-profits life fund is maintaining its bearish position on commercial property and taking a strong position in Brazilian equities. The group also highlighted its de-risking of the credit portfolio before last year's crunch as a key reason for strong returns. Director of portfolio management Martin Brookes said this decision to hedge the fixed income position could be seen as lucky but credit spreads have delivered a surprise return. He bought credit default swaps in June 2007 to protect 25% of the fixed income portion of the fund invested in higher-yielding...