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.”