View more on these topics

Pru rethinks cautious and balanced fund categories

Prudential plans to drop the cautious and balanced labels from two of its legacy life and pension funds and may consider dropping the labels from its retail range.

The £40m Pru cautious UK managed fund will be renamed the Pru UK managed life/pension fund, while the £2.6m Prudential M&G balanced portfolio will be called the Prudential UK managed portfolio life fund.

The £16.4m Pru M&G cautious managed portfolio will retain the cautious label but could be renamed Pru M&G cautious multi-asset fund to reflect the asset mix. The changes will be made before the end of the third quarter, subject to investor approval.

Pru investment director Andy Brown says: “As a result of the new ABI definitions, we chose to rename these funds because we felt they pose the biggest risk in terms of transparency. We would consider dropping the descriptor labels from the retail range but will wait until the IMA finalises its sector review.”

In Pru’s retail range there are three funds in the dynamic portfolio that use the descriptors including the £82m cautious growth, £90m balanced and £48m cautious funds, plus one multi-asset fund, the £53.2m cautious managed growth fund.

Equity Partners UK managing director Kevin Tooze says: “The name changes are positive but I think there needs to be a clear explanation of the parameters of investment.”

Recommended

HSBC mulls low-cost fund launch

HSBC says it is looking to launch a low-cost active fund following in the footsteps of Schroders and JP Morgan. Head of UK external distribution Phil Reid says more investors are focusing on cost and return, so it is vital to offer a range of market options. He says: “We are looking at the middle […]

Ignis appoints Polin replacement

Ignis Asset Management has appointed AllianceBernstein UK chief executive officer and chairman Claude Chene as head of distribution. Chene, who joins the firm in October 2011, is tasked with handling the firm’s global distribution for both the retail and institutional businesses and will also join the Ignis board. His appointment comes a month after Ignis […]

ECB move focuses on Germany at the expense of the periphery

The European Central Bank has raised its main interest rate for the second time this year with a rise of 0.25 per cent to 1.5 per cent. The decision is seen as a response to rising inflation in the core European economies such as Germany but it is likely to be at the expense of […]

1

Treasury orders review of pension taxation

The Office of Tax Simplification will review the pensioner tax system as the Treasury looks to simplify the pensions tax regime. In a letter to Treasury exchequer secretary David Gauke last month, OTS chairman Michael Jack said: “For the estimated 5.6m people of pensionable age paying tax, this area is widely acknowledged as causing too […]

Health - thumbnail

Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. peter appleyard 3rd June 2013 at 9:01 pm

    These funds are certainly not transparent ; in fact the policies are deliberately opaque ; when I asked my FSA if the value of my fund would be protected he said yes. However that was untrue : only the value of the initial capital is protected – at a cost of £3000 for five years and I will only receive the initial fund less withdrawals.

    In less opaque terms the funds are income draw down schemes linked to a poorly performing FTSE tracker. Over the last 5 years my investment is worth 15 % less than when I started the scheme.
    I am retired and I cannot afford to lose this sort of money since there is no way it can be recouped;
    but, the words income draw down and FTSE tracker were not mentioned by my FSA.

    I am sure that Prudential collude with FSA’s since there is no mention in their own literature of the basis of the poorly performing schemes which they market.

    I am not sure who to sue ; but if had the money I would sue both of them ; I wish.

Leave a comment