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Risk Managed PruFund funds - Smoothed

Risk Managed PruFund funds - Smoothed

Funds that aim to grow your client's money while giving them a smoothed investment experience.

  • Five levels of risk and potential return

  • Multi-asset funds

  • Smoothing process

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Product details

Risk Managed PruFund Funds

There are five Risk Managed PruFund funds, each designed to suit different attitudes to risk and reward. They all benefit from our established PruFund smoothing process and are suitable for clients looking to invest for 5 to 10 years or more.

The funds have an objective to stay within volatility ceiling limits, which allows us to manage the fund risk profile over time and help to align it closer to your client’s risk assessments.

The Risk Managed PruFund funds are invested in the Prudential With-Profits Fund, which is one of the largest with-profits funds in the UK.

Please remember that the value of your client’s investments can go down as well as up and they may not get back what they have paid in.

Features

  • There’s now a choice of five multi-asset Risk Managed PruFund funds, each with its own risk profile and managed to stay within an expected long-term volatility ceiling limit.
  • Each fund uses our established PruFund smoothing process.
  • Actively managed by Prudential Portfolio Management Group who manage the Strategic Asset Allocation (SAA) for these funds and will select funds from our With-Profit investment universe.

The funds have 5 levels of risk and potential return, each with a different volatility ceiling limit. 1 = lower risk; 3 = medium risk; 5 = higher risk

Fund Name
Expected Volatility Ceilings
Prudential PruFund Risk Managed 1
9%
Prudential PruFund Risk Managed 2
10%
Prudential PruFund Risk Managed 3
12%
Prudential PruFund Risk Managed 4
14.5%
Prudential PruFund Risk Managed 5
17%

There is no guarantee that the fund will stay within its expected volatility ceiling limit.

For more information on asset allocation within Risk Managed PruFund funds, please download the Adviser Guide (PDF).

Fund availability

Product
Prudential Risk Managed PruFund 1-4
Prudential Risk Managed PruFund 5
Prudential Retirement Account


Flexible Retirement Plan#

 
Prudential ISA 

Prudential Investment Plan


Trustee Investment Plan

 

# The Flexible Retirement Plan (FRP) closed to new business on 17 September 2018 but if your client is an existing FRP customer they can still make changes to their plan.

This is not a comprehensive list of the availability of these funds. Please refer to the appropriate fund guide or product information pages for more information.

Retirement Account - PruFund Series D & Series E

Please note that there are two series of PruFund within Retirement Account, which have different investment date cycles. Customers are invested in either series as follows:

  • Series D (PDF) - All investments made on or before 25 August 2017.
  • Series E (PDF) - All investments made after 25 August 2017 (including fund switches and regular premium contributions).

View the step by step guide to the PruFund smoothing process

Smoothing

Our established smoothing process uses Expected Growth Rates, and where required, Unit Price Adjustments, to deliver a smoothed investment journey. 

View A Step by Step guide to the PruFund smoothing process (PDF)

Can we reset the smoothed price?

We may decide to reset the smoothed price of a PruFund fund on a particular day, to protect the With-Profits Funds.

If we decide to reset, the smoothed price of the affected fund would be adjusted to be the same value as the unsmoothed price on that working day. That adjusted smoothed price will then continue to grow in line with the Expected Growth Rate from the working day after this reset of the smoothed price. This is referred to as a Unit Price Reset in other literature.

Suspension of Smoothing

In certain circumstances, the smoothing process may be suspended in order to protect the With-Profits Fund and the clients invested in it. This can happen independently for each fund in the PruFund Range of funds. When this happens, the smoothed price for each of the affected fund(s) is set to the unsmoothed price for each day until we reinstate the smoothing process.

Who manages the Risk Managed PruFund funds?

M&G Treasury & Investment Office (T&IO) monitor and manage the Prudential Group fund managers responsible for the majority of underlying funds that these Multi-Asset funds invest in.

Risk Mapping Documents

A number of independent risk mapping documents are available, helping support your client conversations around our risk managed range of funds. Take a look at these risk analysis reports providing risk ratings from Defaqto, FinametricaSynaptic and Distribution Technology.

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.