Prudential is attempting to take advantage of new wider powers under the Non-Ucits Retail Schemes (NURS) rules by launching two funds available for retail investors in the cautious sector.
Although the firm’s Cautious Managed Growth and Managed Defensive offerings aren’t the first products under cautious, Prudential says NURS means it can manage them in the same way it has done its Life fund, which has been around since the beginning of the 20th Century.
Prudential also says the funds will be different from others in the sector because, unlike other managers, theirs view asset allocation as a separate discipline.
New UCITS III regulations, specifically the creation of NURS schemes allow greater flexibility in running Unit Trusts, OEICs and ISAs.
Matthew Williams, manager of both of the new funds, says: “We strongly believe in running funds based on three founding principles – the importance of asset allocation, the benefits of diversification, and the focus on the long-term.
“Asset allocation is our specialist ‘boutique’ and the structure has been built from the ground up, rather than being pieced together from pre-existing parts.
“We operate on the basis of complete flexibility and we are not constrained by benchmarks in managing these new funds.
“Others, we believe, are coming to the party late and simply don’t have our track record in this sector.”
Gary Shaugnessy, managing director of life and pensions at Prudential, adds: “Both these funds represent a break from tradition and will aim to set new standards for cautious investment products by delivering best of breed rates of return leveraging our expertise and track record in managing multi-asset investments.
“The two new funds allow the fund manager the freedom to choose from a wide range of UK and international assets, and provide investors with a chance to achieve either a cash-beating or inflation-busting return in a risk-controlled way.”
Members of Prudential’s Portfolio Management Group (PMG) will oversee the management of the funds.
Investors can choose income or growth options and can monitor their investments online at www.pru.co.uk.
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