Prudential has launched a new fund for higher-risk investors as part of a new risk-managed range.
The updated PruFolio Risk Managed fund range consists of 14 funds- five passive, five active and five smoothed funds – and includes a new fund, the Risk Managed PruFund 5.
The funds’ investment objective will no longer specify a maximum equity content, but rather introduce a volatility ceiling as a target instead.
According to the company, this will give fund managers more flexibility in how they manage their funds.
OEIC versions of the funds will be available on major platforms, while the new PruFund will be available through Prudential’s pension, Isa and bond products.
Charges for the funds will be reduced by up to 100 basis points after “extensive consultation with financial advisers and customers”.
SimplyBiz exec to head “invite-only” Prudential planning armPru says the range will help advisers match funds to their clients’ risk profiles.
Prudential’s senior business development manager for investments Paul Fidell says: “We believe the PruFolio range will appeal to advisers who want a selection of funds they can use to more easily match to clients’ risk profile in different stages of their life.
“Advisers have told us they want outcome-oriented funds. Targeting volatility rather than sticking to a predetermined equity content is a clearer way to align the funds’ objectives to a customer’s risk profile.
“The previous investment objectives prescribed how much of a fund could be invested in equities but managing the funds within these limits doesn’t necessarily enable managers to target a specific level of risk. Our fund managers will now have more flexibility in how they manage each fund to its agreed level of risk.”
PruFolio funds strategic asset allocation decisions will be made by the M&G Prudential Investment Office. The investment portfolios of the PruFolio fund range will be managed by M&G Investments.
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