The Prudential Income Fund distributed 7 cpu in September. The fund's offshore exposure is maximised at 25%, in line with Prudential Guidelines so as to take advantage of high yields currently offered by First World Mega cap companies. These companies are listed on markets which provide a high level of governance and have exposure to both advanced and emerging markets enabling them to produce reliable dividends for investors. Domestic equities are weighted at 34%. Inflationary pressures have increased both locally and internationally and as a result the Prudential Income Fund continues to hold inflation linked bonds. These behave in a similar fashion to equities, however risks related to income growth are reduced as the government guarantees both capital and income growth at the rate of inflation. The portfolio also has a small exposure to preference shares. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves.

The Prudential Income Fund distributed 7 cpu in June. The fund's offshore exposure is maximised at 25%, in line with changes to Prudential Guidelines so as to take advantage of the unusually high yields currently offered by First World Mega cap companies. These companies are listed on markets which provide a high level of governance and have exposure to both advanced and emerging markets which should enable them to produce reliable growth in dividends for investors. Inflationary pressures have increased both locally and internationally and as a result the Prudential Income Fund continues to hold inflation linked bonds. These behave in a similar fashion to equities, however risks related to income growth are reduced as the government guarantees both capital and income growth at the rate of inflation. The portfolio also has a small exposure to preference shares. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves.

The Prudential Income Fund distributed 7 cpu in March. The fund's offshore exposure was maximised to 25% in January, in line with recent changes to Prudential Guidelines so as to take advantage of the unusually high yields currently offered by First World Mega cap companies. These companies are listed on markets which provide a high level of governance and have exposure to both advanced and emerging markets which should enable them to produce reliable growth in dividends for investors. Inflationary pressures have increased both locally and internationally and as a result the Prudential Income Fund continues to hold inflation linked bonds. These behave in a similar fashion to equities, however risks related to income growth are reduced as the government guarantees both capital and income growth at the rate of inflation. The portfolio also has a small exposure to preference shares. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves..

The Prudential Income Fund distributed 7 cpu in December. During November, the fund's exposure to International Real Estate was switched into International Equities as a result of the higher yields and dividend growth offered by the latter. Local equities remain at their recent low levels as a result of the low yields now offered by the asset class with poor expectation of dividend growth. To supplement this relatively low level of equities, inflation linked bonds have been added to the portfolio. Inflation linked bonds behave in a similar fashion to equities, however risk is dramatically reduced as the government guarantees both capital and income growth at the rate of inflation. Preference shares, also recently added, offer an attractive yield relative to cash especially on an after tax basis. One of the major benefits of the fund's prudential mandate is the ability to hold a diverse portfolio throughout all the asset classes and hence the ability to take advantage of value opportunities as they present themselves. The fund's international exposure remains at the maximum 20% level as we continue to see significant merit in First World Equities.