The Prufund cautious and protected cautious funds follow on from the group’s Prufund growth fund but invest around 70 per cent in fixed interest and cash with the balance mostly in equities and property.
Available in sterling, US dollar and euro, the funds use “smoothing mechanisms” to increase the unit price daily in line with the expected growth rate and protect investors from volatility.
Pru says the launch is on the back of IFA demand for a product similar to the Prufund growth fund but with less equity exposure.
Prudential International head of UK business development Richard Leeson expects the range to appeal to the offshore market as offshore investors are more cautious than most.
He says: “Offshore investors have historically been more wealthy and that wealth has come from things like inheritances or sales of business. Those are one-off events so you are therefore unlikely to get a second chance at accumulating that money. Therefore those people tend to be very focused on protecting their capital far more than perhaps others.”
Alongside the launch, Pru is offering special allocation rates on its international prudence bond until December 4 which include an extra 1 per cent added to investment.