Personal Pension  

Pru launches growth funds for pension customers

Pru launches growth funds for pension customers

Prudential has launched a range of new multi-asset funds for its corporate pension customers.

The Prudential Dynamic Growth funds are actively management by Prudential’s Portfolio Management Group and combine the firm’s asset allocation with passive equity funds from BlackRock and M&G’s active fixed interest funds.

Designed to cater for different scheme and member risk appetites, the new funds can be used across various investment solutions as customers save for their retirement, or when they are looking to make the most of their income in retirement.

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The equity allocation for the Prudential Dynamic Growth I is 0 to 30 per cent; the equity allocation for the Prudential Dynamic Growth II is 10 to 40 per cent; the equity allocation for Prudential Dynamic Growth III is 20 to 55 per cent; the equity allocation for the Prudential Dynamic Growth IV is 40 to 80 per cent and finally for the Prudential Dynamic Growth V it is 60 to 100 per cent.

Prudential said it has also added new lifestyle options to the Prudential Dynamic Growth Lifestyle Options, redesigning its default lifestyle solution to provide a lifestyle option for corporate pension customers who have not specified their retirement preferences, while also adding two further lifestyle options aimed at customers looking to take their fund in cash or through drawdown.

The firm said alongside complementing members’ chosen retirement products, these options provide alternatives to scheme members who wish to opt out of the default option but do not wish to construct their own portfolio of funds.

John Warburton, distribution director at Prudential, said: “The launch of the Dynamic Growth funds, priced to sit between active and passive investments, gives our corporate customers a modern, cost-effective, default investment solution which offers diversification, flexibility and choice around the new pension freedom.

“The addition of further default lifestyle strategies demonstrates our commitment to offering enhanced levels of flexibility to our customers. These enhancements are part of our continuing corporate pensions proposition development to meet evolving customer needs.”

ruth.gillbe@ft.com