View more on these topics

Pru adds cautious fund to flexible plan

Prudential has added the Pru Fund cautious series to its flex- ible retirement plan and is offering pension savers a five-year capital guarantee.
The company launched the cautious fund, to sit alongside Pru Fund growth, in July for risk-averse investors worried about moving back into equities.

The fund invests 70 per cent in nominal assets such as bonds and cash and 30 per cent in equities and was available to onshore investment bond customers from launch. Offshore cust- omers got access to the fund in September and it was made available to flexible retirement plan customers last week.

The cautious fund, which offers smoothing, has gained around 2.5 per cent since July. The flexible retirement plan now offers 163 funds although a Sipp option allows wider choice.

Director of investment funds Andy Brown says: “We launched the cautious fund because we had found in the early part of this year that some investors were worried about moving back into equities.

“While smoothing reduces volatility, for those ultra-cautious investors, we can guarantee their capital for five years. Around 30 per cent of our onshore investment bond customers have taken this option.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm