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Distribution Technology risk profiles exciting new funds from Prudential

Distribution Technology the UK’s leading provider of financial planning and front office technology, is pleased to announce that it has added Prudential’s four new multi-asset funds to its Dynamic Planner risk profiling application.  The addition comes exactly one year from the FSA guidance on investment risk – Assessing Suitability.

 
Prudential’s new risk managed PruFunds have been developed to provide advisers and their clients with funds that have an expected return rate and are re-calculated quarterly, providing a clearer indication of what returns they should expect to receive. The new portfolios can be accessed by investors in PruFund as well as via Prudential’s range of bond and insurance products.
 
Distribution Technology has risk profiled the Prudential funds as follows:
Phil Morse, Director of Asset Management Clients at Distribution Technology, said: “Profiling of funds is becoming increasingly important. In 2012, funds that are run to a risk budget will become the industry norm, as more and more fund houses and life companies launch and run funds in this way”.  
 
He went on to say, “Our work with the Prudential PruFunds demonstrates that we can risk profile new funds as well as funds with a long quantitative track record.  Clearly with less quantitative data available, we rely more on the qualitative side of things. For example, we will discuss the funds with the fund manager, to understand how he or she thinks the fund will be run”. 
 
Mike Fleming, Head of Investment Funds at Prudential added: “Creating an appropriate ongoing audit trail that associates the risk profile of a fund with a client’s risk appetite is top of the regulatory agenda. Distribution Technology’s independent assessment provides advisers with the knowledge that the funds have been appropriately risk rated.”