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Pru’s unitised WP fund up 8.4% in first year

Prudential’s unitised with-profits product, Prufund, has exceeded expectations by delivering 8.4 per cent in its first year – significantly above the 3.4 per cent annual bonus on its traditional with-pro- fits fund.

The firm says the two products will deliver very similar returns over the longer term when terminal bonuses are factored in, as they both invest in the near-70bn Pru life fund, recently upgraded to a rating of nine out of 10 by Cazalet Consulting.

Pru announces the expected medium to long-term return for Prufund at the start at each quarter, a figure which has remained at 5 per cent since launch.

The unit price has been amended to factor in the extra growth achieved by the portfolio, which has benefited from above-average exposure to equities.

Investment & savings director Hugh McKee says investors in Prufund and the traditional with-profits fund receive different statements because of Prufund’s bid to improve transparency of returns. Pru declines to say how much money Prufund has attracted since launch.

McKee says: “Ultimately, we would expect the same returns for investors in the two products over the same period.”

Dennehy Weller managing director Brian Dennehy says: “Using with-profits has been discredited so most clients would probably be better off in a cautious managed or protected equity fund.”


Bank of Ireland completes the sale of B&W branches

Bank of Ireland has completed the sale of its Bristol & West branch network and associated deposit book to Britannia Building Society.The completed price is 150m. The profit on disposal of the branch network is expected to amount to approximately 120 million after tax and will be reflected in the Interim Results for the half […]

Fraudster told to pay back 100k or face three years more in jail

A financial adviser jailed for conning elderly and infirm clients out of their life savings has been told he faces an increased prison sentence unless he compensates his victims. Hugh Rhys Oliver , 49, of Stepaside, Newtown, Powys, was jailed for two years after admitting forgery and deception charges when he appeared before Mold crown […]

LTC system is incoherent and needs reform, says Rowntree

The system for paying for long-term care is unfair and incoherent, according to a discussion paper by the Joseph Rowntree Foundation. It calls for a debate on how to share the costs of long-term care to meet the needs of an ageing population. The paper, Facing the Cost of Long-term Care, suggests that the present […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]


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