Prudential targets with-profits launch at excess cash

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Prudential has unveiled an updated version of the with-profits fund which carries many of the transparent ‘smoothing' characteristics but is still said to offer 5% pa net return.

The PruFund has essentially been designed, says the life insurer, following consultation with consumers, IFAs and the media to achieve smoothed returns – as expected from the new generation of with-profit funds – as a modern version of the with-profits concept but without carrying either an annual or terminal bonus, and without any prospect of a Market Value Reduction should markets fall further. Prudential says it intends to target the “£107bn excess cash on deposit” which IFAs believe could be better invested than in a cash deposit account and which has the potential to return 5% net o...

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