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Hot off the press, I’ve just come off a webinar update from Prudential notifying us of the following positive Unit Price Adjustments (UPAs):

Series E only

PruFund Growth                            + 2.58%

PruFund Risk Managed 4             + 3.00%

PruFund Risk Managed 5             + 2.56%

The underlying unsmoothed assets were tested against the smoothed prices, the corridors, at 10.56 this morning.

You might ask why we have different UPAs for the different versions of PruFund?  For the following reasons:

  • Different asset mix
  • The starting position
  • Different smoothing limits

The last point, different smoothing limits, doesn’t apply to the three funds we use noted above.  The monthly smoothing limits in use for the funds we use is 5%.

Please see this link for details on how ‘smoothing’ works:

https://www.pruadviser.co.uk/pdf/PRUF1098101.pdf

We could see further UPAs down as well as up, the outlook is for ongoing volatility.  We have a lot of risk in the market globally at the moment.

Steve Speed

25/06/2020