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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.

Time in the market, not market timing

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 medium to long term view (5-10 years or more).

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 Unit Price Adjustments (UPAs).

Managing volatility

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. 
smoothing

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 clients 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.

How PruFund works - support and reassurance for your clients

Following the turbulent equity markets experienced this year, this short video looks at how existing PruFund customers are protected from some of the extreme short-term falls within the market.

If you are looking to have a conversation with your clients about PruFund, share this video using this link or email template.

Our PruFund explained video also provides more information on how the fund works.

Here's a client guide to the PruFund smoothing process.
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Managing PruFund

A combination of an established smoothing process, global diversification and fund management expertise - Our PruFund funds aim to provide your clients’ with a smoothed investment journey.

Growth rates

Expected Growth Rates (EGRs) - a forward looking projection, which reflects our view of how we think each PruFund fund will perform over the medium to long term (5-10 years or more). 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    

Expertise

Access to the asset allocation and investment expertise of the M&G Treasury and Treasury and Investment Office (T&IO), who manage around £178bn of Assets Under Management (as at December 2019). 

multi-asset

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 the largest in the UK.

What are PruFund funds?

An established family of multi-asset funds with diversification at its heart. Designed to spread the risk of your client’s investment and aims to grow their money whilst smoothing the investment journey. All our PruFunds are expertly managed by our Treasury and Investment Office (T&IO). One of the largest and most well-resourced in the UK retail market.

Since the launch of PruFund Growth in 2004, we've evolved the PruFund family, broadening the choice of investment solutions by offering PruFund Cautious and five Risk Managed 'smoothed' PruFunds.

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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.

Michael Howard

Why Alternatives?

Michael Howard, head of alternatives at M&G plc discusses his role and provides insight into some of the unique alternatives assets we invest in that underpin our portfolios.

Parit Jakhria

Long term investment strategy

Parit Jakhria, Director of long-term investment strategy at the M&G Treasury and Investment Office, discusses his role and how we align our long-term investment strategy with our clients aims and objectives.

Ciaran Mulligan

Governance

Ciaran Mulligan, head of investment management oversight at the M&G Treasury and Investment Office, discusses his role and provides insight into our internal and external governance and due diligence processes.

"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.