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 the largest with-profits fund 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.
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 M&G's Treasury & Investment Office (T&IO) 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
Expected Volatility Ceilings
Prudential PruFund Risk Managed 1
Prudential PruFund Risk Managed 2
Prudential PruFund Risk Managed 3
Prudential PruFund Risk Managed 4
*Prudential PruFund Risk Managed 5
*PruFund Risk Managed 5 is not available on all products which have access to PruFund
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).
We may decide to reset the smoothed price of a PruFund fund on a particular day, to protect the With-Profits Fund.
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.
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, Finametrica, Synaptic and Distribution Technology.