Matching products

to meet changing customer needs

PruFund and Dynamic Portfolios

A dynamic approach to helping customers manage investment risk

Andy Brown, Investment Director at Prudential UK, explains the effects that the financial crisis has had on investors and how Prudential is responding to help meet customer needs.

“During difficult economic times, people are understandably nervous and uncertain about their financial future,” Andy says.

Prudential has sought to address these concerns by offering PruFund investors the option of a capital guarantee, which means customers know their capital will be preserved after five years, regardless of the performance of the underlying fund.

In early 2010, with security and risk uppermost in many investors’ minds, Prudential also launched a range of investment funds called Dynamic Portfolios. The five available funds range from ‘defensive’ to ‘adventurous’. Crucially, customers can increase or decrease the level of risk over time to match their circumstances.


  • Prudential Defensive Portfolio
  • Prudential Cautious Portfolio
  • Prudential Cautious Growth Portfolio
  • Prudential Balanced Portfolio
  • Prudential Adventurous Portfolio

Income Choice Annuity

Developing products to reflect a rapidly changing retirement market

The UK Department for Work and Pensions has predicted that 17 per cent of the UK population, amounting to around 10 million people, will reach their 100th birthday9. Longer life expectancy is having a profound impact on the way people need to plan for retirement.

Vince Smith-Hughes, Prudential UK’s Head of Business Development, explains how the Income Choice Annuity has been adapted to meet the changing demographics in the UK: “Conventional level annuity products, despite still being appropriate for some, were designed at a time when people were not living as long. The combined effect of living longer and inflation can be a real issue to the long-term economic health of the retired population. In short, it means some people will have to seek alternative income solutions for retirement. Our with-profits annuity addressed this problem some time ago, and we have now introduced the Income Choice Annuity, which provides even more choice for customers.”


people in the UK
are predicted
to reach their
100th birthday

Vince says: “As the timing and structure of retirement is changing, we are increasingly seeing people ‘phasing’ into retirement by working fewer days. Having an annuity with a flexible level of income means that people can supplement their earnings from part-time employment, waiting until they are fully retired before drawing a larger income. On the other hand, there are some people who want to make the most of their retirement savings straight away – enjoying an active retirement by taking more income initially, then scaling back later on. The Income Choice Annuity is designed to suit a range of different retirement scenarios.”

He adds: “The retirement market is more complex than ever before and we’ll keep on creating products that meet changing demands. We believe we are at the forefront of providing retirement income and we will continue to remain so.”

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“The retirement market is more complex than ever before and we’ll keep on creating products that meet changing demands.”

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