Pru takes zero gilt stance

£6bn with-profits fund goes to 0% exposure on gilts and adds hedge funds in bid to diversify

The Prudential's £6bn with-profits fund has gone to a 0% exposure to gilts and is adding funds of hedge funds as part of its strategy to diversify the portfolio. Director of portfolio management at Prudential, Martin Brookes, said the returns from equities seen in the 1990s are unlikely to be seen again and, with this in mind, the company is seeking to develop its other investments to run alongside equities. The current mix of the fund stands at 36% UK equities, 15% international equities, 30% fixed interest, 16% property and 2% other, which is made up of cash, hedge funds and private ...