Built to navigate uncertainty
Our PruFund range of funds are designed to navigate choppy markets, geo-political uncertainty and imitation – and still manage to deliver over the long term.
No-one can confidently predict when a stock market fall may happen. But as we are seeing now, when that happens, it can cause irrational fear which can drive poor client decisions to sell at the wrong time. Our PruFund range of funds are designed with a long term view (10-15 years).
The timeline here gives you an idea of market events over the last 15 years, right up to what’s happening now. It shows how our Prufunds are designed to respond to market volatility, in this case, our PruFund Growth Fund, and demonstrates how our smoothing mechanism - designed to protect investors from the extreme short term ups and downs of direct stock market investment – has kicked in.
Take a look at the interactive timeline, which shows how PruFund Growth Fund is performing compared to market indices, and following application of UPAs.
PruFund has two advantages here:
- Its smoothing mechanism can help to protect your client's investment from the impact of short term market volatility
- Its diverse asset allocation spreads risk and helps to avoid concentration of exposure in different asset classes and geographical locations.
Recent market volatility, due to the global Coronavirus pandemic, has prompted a lot of questions and knee jerk reactions in the investment world. This recent webinar about the mechanics of PruFund, the smoothing process, the holding account and unit price adjustments - provides a reassuring reminder of why the PruFund range of funds has the ingredients to provide client with potentially good outcomes. Watch the Webinar >
We also have a shorter video explaining PruFund, suitable for clients, which you’ll find in our ‘How PruFund works – support for your clients’ below
The value of any investment can go down as well as up so your clients might get back less than they paid in.
There are 2 parts to how the fund works:
1. Spreading the risks of your clients investment
2. The smoothing process
This animation, which you can share with your clients, helps to explain.
Here's a client guide to the PruFund smoothing process.
Expected Growth Rates (EGRs) - a forward looking projection, which reflects our view of how we think each PruFund fund will perform over the long-term (up to 15 years). We also have to take into account shorter-term performance, which means we’ll continually monitor the underlying fund performance and make adjustments to the fund value, up or down, when necessary. These are known as Unit Price Adjustments (UPAs).
Latest PruFund fund EGRs and UPAs
Access to the asset allocation and investment expertise of the Treasury and Investment Office (T&IO), who manage around £178bn of Assets Under Management (as at December 2019).
Choice of seven multi-asset PruFund funds helps cater for different attitudes to risk and capacity for loss. View Square Mile report
PruFund funds are invested in the Prudential With-Profits fund which is one of the largest in the UK.
Expected Growth Rates (EGRs)
Please see below our range of EGR related material to help your client conversations.
Tools and resources
These items may be helpful for due dilligence when considering PruFund funds for your client's
Daring to be different
The Investment Engine - T&IO
Many investment houses have asset allocation teams who decide the proportions of monies to be invested across the asset classes. Prudential don’t do that! The skills, expertise and investment philosophy of T&IO avoid a ‘herd mentality’.
T&IO believe there are three key differentiators which set them apart from other fund managers:
- Resource applied to asset allocation
- Investment philosophy
- Robust governance framework
These and other attributes are better explained by the team themselves in these short videos.