Prudential has launched two new target return funds.
Prudential’s Diversified Growth Fund and Defensive Fund invest in UK and overseas equities, alternative assets, property, bonds and cash.
The funds' targets are to provide returns of 6% and 4% above CPI over a rolling five-year period, respectively.
Martyn Bogira, director of defined contribution solutions at Prudential, says: “Around 90% of scheme members automatically go into equity tracker default funds which may not necessarily suit their individual risk profile and investment needs.
“We believe that investing in more diverse funds rather than being wholly dependent upon the equity markets will more closely match our customers' risk profiles and reduce overall volatility of investment returns.
“The benefits of increased diversity will ensure that scheme members have access to sectors that offer better relative value at any one particular time."IFAonline
For undisclosed sum
Entry deadline: Friday 28 September 2018
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