The Prudential Income Fund distributed 7.4263 cpu in September and is currently yielding approximately 4%. The yield has been achieved by combining high yielding asset classes with equities, both locally and offshore. The portfolio is ideal for retirement planning as it produces a relatively high income yield and income and capital growth that will keep up with inflation over the long term.

High yielding asset classes make up approximately 40% of the fund and include floating corporate debt, preference shares, fixed deposits and inflation linked bonds - all of which present investors with a low level of capital risk. The decision not to hold any fixed interest bonds and property has served investors well in 2013. Both of these asset classes have experienced significant volatility in recent months as a results of comments made by Ben Bernake (the chairman of the US Federal Reserve Bank) suggesting that quantitative easing in the US may come to an end far sooner than what has been widely anticipated. With upward pressure being exerted on fixed interest bond and property yields the Prudential Income Fund is well positioned to take advantages of investment opportunities in these asset classes.

To achieve inflation hedged income and capital growth the fund has approximately 60% exposure to equities. The fund's offshore exposure is maximised at 25%, in line with Prudential Guidelines to take advantage of high yields currently offered by first world mega cap companies. This exposure has produced good capital returns for investors during the year as well as a relatively high level of income. Domestic equity exposure remains low at 35%. Data continues to suggest that South Africa's economic prospects remain subdued and with dividend yields still well below historic averages an increase in local equity exposure is not yet warranted.

As a result of income growth from the portfolio's underlying securities the Prudential Income Fund increased its June distribution by 3%. The cumulative increase in distributions over the last 12 months has been 6% which has more than offset the impact of inflation over the period. The current yield of the fund is approximately 4% which is a relatively attractive level of income in the current low interest rate environment especially when one considers that this income will grow in line with inflation overtime. The yield has been achieved by combining high yielding asset classes with equities, both locally and offshore. High yielding asset classes make up approximately 40% of the fund and include floating corporate debt, preference shares, fixed deposits and inflation linked bonds - all of which present investors with a low level of capital risk.

To achieve income growth the fund has approximately 60% exposure to equities. The fund's offshore exposure is maximised at 25%, in line with Prudential Guidelines to take advantage of high yields currently offered by first world mega cap companies. With dividend yields well above historic averages, equity valuations in these markets are presenting investors with a significant opportunity to invest in some of the biggest and most respected companies in the world at attractive prices. Domestic equity exposure remains relatively low at 35%.

The equities (both offshore and local) included in the portfolio tend to focus on basic necessities, enjoy country wide distribution and have strong balance sheets. By the nature of their business, they will be largely unaffected by political decisions and macro-economic events. They tend to fare well in both recessionary and growth phases of the economic cycle and are seldom at the mercy of a new idea, trend or fashion. Their products are generally everyday household items, with market dominance a function of their brands. Consequently, these companies are able to produce reliable and growing dividends regardless of challenging economic conditions.

The Prudential Income Fund distributed 7.21 cpu in March. The current yield of the fund is approximately 4% which is a relatively attractive level of income in the current low interest rate environment especially when one considers that this income will grow in line with inflation overtime. The yield has been achieved by combining high yielding asset classes with equities, both locally and offshore. High yielding asset classes make up approximately 40% of the fund and include floating corporate debt, preference shares, fixed deposits and inflation linked bonds - all of which present investors with a low level of capital risk.

To achieve income growth the fund has approximately 60% exposure to equities. The fund's offshore exposure is maximised at 25%, in line with Prudential Guidelines to take advantage of high yields currently offered by first world mega cap companies. With dividend yields well above historic averages, equity valuations in these markets are presenting investors with a significant opportunity to invest in some of the biggest and most respected companies in the world at attractive prices. Domestic equities exposure remains relatively low at 35% with emphasis given to companies operating in defensive industries.

The securities (both offshore and local) included in the portfolio tend to focus on basic necessities, enjoy country wide distribution and have strong balance sheets. By the nature of their business, they will be largely unaffected by political decisions and macro-economic events. They tend to fare well in both recessionary and growth phases of the economic cycle and are seldom at the mercy of a new idea, trend or fashion. Their products are generally everyday household items, with market dominance a function of their brands. Consequently, these companies are able to produce reliable and growing dividends regardless of challenging economic conditions.

The Prudential Income Fund distributed 7.21 cpu in December. The current yield of the of the fund is approximately 4% which is a relatively attractive level of income in the current low interest rate environment especially when one considers that this income will grow in line with inflation overtime. The yield has been achieved by combining high yielding asset classes with equities, both locally and offshore. High yielding asset classes make up approximately 40% of the fund and include floating corporate debt, preference shares, fixed deposits and inflation linked bonds - all of which present investors with a low level of capital risk. To achieve income growth the fund has approximately 60% exposure to equities. The fund's offshore exposure is maximised at 25%, in line with Prudential Guidelines to take advantage of high yields currently offered by first world mega cap companies. With dividend yields well above historic averages, equity valuations in these markets are presenting investors with a significant opportunity to invest in some of the biggest and most respected companies in the world at attractive prices. Domestic equities exposure remains relatively low at 35% with emphasis given to companies operating in defensive industries. 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.