Prudential UK has launched a new set of guarantee products across PruFund Growth and PruFund Cautious funds, predicting “massive business” for IFAs since it offers capital protection guarantee to consumers in “worst case scenarios”.
The funds aim to offer “more stable return” over similar assets, Prudential announced. The funds also offer added protection through a range of capital guarantees, it claimed.
The company will be offering PruFund Growth guarantees with more flexibility and longer terms, and customers can opt for money-back capital guarantee with terms ranging from 6-10 years. For PruFund Cautious, in addition to the current five year guarantee being offered on the fund, same benefits of growth funds will be offered.
In an effort to offer more flexibility and choice to consumers, PruFund Protected Growth is being simultaneously reintroduced, the company said.
The company will also offer the PruFund guarantees range across pension wrappers and bonds, including Prudential Investment Plan (PIP), the individual pension Flexible Retirement Plan (FRP), Prudential’s Flexible Investment Plan (FIP), and Drawdown and the Trustee Investment Plan (TIP).
The guarantees are “massive business drivers” for IFAs “because more and more customers want them”, said John Warburton, product director at Prudential.
He cited the customers risk aversion as the major cause of demand for such products and said customers wanted safety from “local financial repercussions” due to global events.
“Increasing the availability of our guarantees on PruFund has been driven by strong demand from advisers”, Warburton said.
“The availability of guarantees remains an ongoing concern for advisers but with such a comprehensive range, we’re well positioned to maintain our strong presence in this segment. This reinforces our commitment to providing a range of viable, sustainable guarantees for advisers and their customers”, he added.