The expected growth rate on the PruFund Growth Life Fund has been set at 6% for the three months to 24 November 2015, and is set at 7.3% for the PruFund Growth Pension Fund over the same period, the company said in a statement on Friday.
Both rates are unchanged from the previous three months and were set amid the widespread market volatility, which followed the recent sharp falls in value of the Chinese stock markets.
PruFunds are invested in Prudential’s With-Profits Fund, which invests in many different asset classes such as UK and international equities, property, fixed interest and cash.
The fund then applies a proprietary process to provide more stable returns over the medium to long-term, aiming to smooth the peaks and troughs of direct investment. The expected growth rates are net of any applicable fund tax.
“In periods of market volatility, the benefits of being invested in a financially strong, well-diversified investment fund, which invests across a wide range of different assets, not just equities, and across many different geographies should not be underestimated,” said Andy Brown, investment director at the Prudential Portfolio Management Group.
“Advisers tell us their clients are making increased use of risk reduction and other strategies to address portfolio construction, resulting in many now placing PruFund at the centre of such investment decisions,” he said.
