Cautious contract to be added to PruFunds range

Prudential is adding a Cautious contract to its range of PruFunds single premium with-profits mandates.

  Managed by Portfolio Management Group, led by Martin Brookes, PruFund Cautious will launch on 13 July with a target asset allocation of 70% fixed income and cash and 30% in equities and property. The fund, established in response to investor demand for lower risk, lower beta products, will pay out 6.1% gross annual yield (after tax), which is smoothed within a 10% variance either side of this level. "If the underlying portfolio moves either 10% higher or lower than the 6.1%, we will still pay out 6.1%. However, if the markets move beyond the 10% level, we will carry out a unit pr...