19 December 2008
	Prudential Dividend Maximiser Investment of the week By Stephen Cranston

Who it's for: Investors looking for a high dividend yield and capital appreciation through a share portfolio tilted towards undervalued shares. Who runs it: Ross Biggs and Mark Beckenstrater of Prudential Portfolio Managers. How risky: Management describes the risk profile as "high". The managers try to cushion the impact of the market by holding part of the portfolio in cash, and the holding is now 10%. But it is an aggressive, concentrated portfolio, with a double weighting in consumer goods through shares such as SABMiller, BAT and Tiger Brands. The tracking error against the index is 8%, which some consider high. How it has performed: The fund is top of the value sector over three years with a 43,1% return and losing 21,4% over 12 months. The FM's view: This is a flashier, riskier fund than its stable mate the Equity Fund but it's all relative. Prudential has a sensible well thought out investment process. It never invests recklessly. This is not a fund for investors looking for excitement. But it will provide a higher income than the equity index, adding an extra 1%- 3% to the investor's yield. The value category has strong competition, especially from Investec, Sanlam and Stanlib, but Pru has beaten all of these over five years.