Prudential have now had to take action on their ‘smoothed’ fund range, please see the following cut and pasted from Prudential’s update:
PruFund Unit Price Adjustments
We’ve applied downwards Unit Price Adjustments(UPAs) to the PruFund funds shown below. Please note, the UPAs also apply to the protected version of the funds, where applicable:
Prudential ISA / Trustee Investment Plan / Flexible Retirement Plan
• PruFund Growth Pension/ISA Fund: -11.99%
• Risk Managed PruFund 4: -10.00% Pension/ISA Fund
• Risk Managed PruFund 5: -11.05% Pension/ISA Fund*
*Only available on Prudential ISA
Retirement Account Series D
• PruFund Growth Fund Series D: -11.99%
• Risk Managed 4 Pensions Series D Fund : -10.00%
Retirement Account Series E
• PruFund Growth Fund Series E: -11.70%
• Risk Managed 4 Pensions Series E Fund: -11.91%
• Risk Managed 5 Pensions Series E Fund: -13.13%
UPAs have not been applied to any of the other PruFund range of funds.
Why have these funds had a downwards UPA movement?
The difference between the smoothed and unsmoothed prices is checked on a daily basis against Daily Smoothing Limits. A price adjustment is made based on the Daily Smoothing Limits if the unsmoothed price differs from the smoothed price by:
8% or more, based on the actual unsmoothed price and a 5-day rolling average of the unsmoothed price for our PruFund Cautious, PruFund Risk Managed 1 or PruFund Risk Managed 2 funds. The smoothed price will be adjusted immediately to reduce this difference to 2.0%.
Or
10% or more, based on the actual unsmoothed price and a 5-day rolling average of the unsmoothed price for our PruFund Growth, PruFund Growth & Income, PruFund Risk Managed 3, PruFund Risk Managed 4 or PruFund Risk Managed 5 funds. The smoothed price will be adjusted immediately to reduce this difference to 2.5%.
The Daily Smoothing Limit and the Gap After Adjustment will vary for each fund.
If you are in growth mode please just remain invested, this is short term volatility and you are invested for the medium to long term. For those of you drawing an income it may be prudent to stop or lower your income now until the market recovers.
Please get in touch if you have any questions. Given the current situation I’m becoming more office and home based and able to take calls.
Steve Speed 17/03/2020 16.40