Tag Archives: investment funds

Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Standard Life Reveals The Most Popular Retirement Top-Up Plans

Standard Life research* has revealed the most popular retirement top-up plans for people who have saved into a pension. Alongside using other investments (43%), nearly a quarter (24%) are expecting inheritance will help fund their retirement, while others are planning equity release on their main home (10%), using rental income / sale of a property (23%) or using a partner or spouse’s income (16%).

The research found that 7% of over-55s don’t plan to retire or have a pension plan, even though they had been saving into a pension. Using the state pension or other state benefits (76%) was the favoured choice of the majority of people. 23% of women are expecting to receive a retirement top-up from their spouse, while 13% of men make the same assumption.

John Lawson, head of pensions policy at Standard Life said: “Nearly half a million people in the UK over 55 are not planning to retire. This shows our attitudes towards retirement are changing, as people consider the implications of working and living longer than ever before. We know that many people want to continue working on their own terms, while some will want to start a new business or learn a new skill.

“Unfortunately, some may not have got their financial planning quite right. The realisation of reaching 65 and having to fund another 30 years in retirement has made them rethink their future plans.

“Relying on certain sources of income, for example an inheritance, could leave you short changed, so seeking the right financial advice early on and taking practical steps to ensure you don’t have all your eggs in one basket may prove a prudent move in later years.”

To help support people when making investment decisions, Standard Life has recently launched a range of investment funds, called MyFolio**. The MyFolio funds are a family of carefully constructed risk-based portfolios that offer clients a choice of active and passive investment strategies across five risk levels. Three styles are available to suit each clients’ investment philosophy: MyFolio Market Funds, Standard Life MyFolio Funds and MyFolio Multi-Manager Funds.

Via EPR Network
More Financial press releases

Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement, Stocks, Trading

Prudential Reveals A Return To Stock Market As Interest Rates Prompt Rush For Risk Assets

Prudential has released findings from its latest research which shows that financial advisers are predicting a significant return to the stock market in 2010, with 72% expecting an increase in the number of clients looking to invest in equities over the coming 12 months.

While Independent Financial Advisers (IFAs) questioned for the Prudential study predicted a strong return to the stock market in 2010, they also believe that investors will look to adopt a more cautious approach on the back of the worst recession since World War II.

Almost three quarters (73%) of IFAs expect clients to invest in cautious managed growth funds, with 66% expecting to see investment in defensive funds and 70% believing investors will also look to spread risk by buying into multi-manager funds.

In addition, 55% of IFAs expect clients to invest in absolute return funds and 68% expect to see ongoing investment in bonds. In contrast, just 18% expect to see clients looking to invest in individual stocks and shares and 46% expect clients to invest in higher risk growth funds.

Andy Brown, Director of Investment Funds, Prudential said: “Given the performance of the markets in the second half of last year coupled with the ongoing poor rate of return for cash based savings, it is perhaps unsurprising that IFAs expect to see more clients looking to return to the stock market and buy into equity based investments in 2010.

“However, in reality not all equities will show equal growth over the coming 12 months and choosing the right time to invest in the right asset classes is key.”

The survey also found that 71% of IFAs believe the recession will have a long term impact on the way clients look to invest and prompt them to adopt a more cautious investment strategy and be more reliant on professional advice. Of these advisers, 83% said they believe clients will be more cautious with investment decisions and favour more balanced portfolios, with 68% of IFAs expecting investors to utilise independent financial advice when choosing investment funds.

Via EPR Network
More Financial press releases

Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Prudential Launches Five New Risk Rated Portfolios

Prudential is launching five new actively-managed, risk-rated, multi-asset funds designed to help advisers to focus on client management through an extension of its partnership with independent investment specialist Old Broad Street Research (OBSR).

The partnership gives advisers access to the asset allocation expertise of Prudential’s Portfolio Management Group (PMG)*, which currently manages over £100 billion of capital, and the fund selection and recommendation experience of OBSR in one place.

Prudential is launching the funds in response to demand f r o m advisers for investment solutions which can help them respond to the changes driven by the Retail Distribution Review and the ongoing focus of the Financial Service Authority’s Treating Customers Fairly (TCF) initiative. In addition, customers will benefit f r o m the choice of a wide range of funds across tax wrappers that are designed to meet the needs of identified groups and are targeted accordingly.

Crucially, the funds will be actively risk managed in line with their portfolio investment objectives and may help reduce the risk of potential TCF issues through running static portfolios.

The five portfolios – Defensive; Cautious; Cautious Growth; Balanced; and Adventurous – will be available on a range of Prudential personal pension products, income drawdown, onshore and offshore bonds. The risk ratings of each portfolio can be mapped against all the major independent risk-rating tools.

Andy Brown, Director of Investment Funds at Prudential said: “Asset allocation and fund selection are vital in ensuring that client needs and long-term investment expectations are met. However, both are potentially demanding and time-consuming.

“Advisers need cost-effective support with their investment management to address the changing regulatory environment. We are determined to address that issue and are delighted to be expanding our partnership with OBSR.”

Phil Lindsay, sales & marketing director for OBSR said: “The objective of the ‘Prudential Dynamic Portfolio’ risk rated funds is to consistently conform to specific risk profiles by utilising the strengths of Prudential’s Portfolio Management Groups’ asset allocation capabilities and OBSR’s fund research and portfolio construction skills thereby assisting intermediaries in developing solutions in line with client attitudes to risk.”

Prudential’s Portfolio Management Group will be responsible for asset allocation, determining the macro asset mix of the portfolios with the long-term aim of ensuring the portfolios conform to their stated risk objectives. They will have the flexibility to implement strategic and tactical changes within given ranges which over time will result in changes in the broad asset mix. These changes will be made to ensure the funds remain within the risk parameters set.

Via EPR Network
More Financial press releases

Assets, Banks, Checking & Savings, Financial, Financial Information, Financial Services, Investment, ISAs, Money, Personal Finance, Retirement

Prudential Reveal Concern Over Asset Allocation And Fund Selection

Prudential has revealed new research that shows nearly six out of 10 financial advisers are concerned about possible regulatory action over asset allocation and fund selection decisions. The research found that 39 per cent of advisers are concerned they could face problems justifying decisions while another 19 per cent are concerned but have plans in place to deal with potential regulatory issues.

Prudential Reveal Concern Over Asset Allocation And Fund Selection

The survey f r o m Prudential also shows that 50 per cent of advisers would welcome support f r o m providers on asset allocation and fund selection as they battle to cope with the fallout f r o m the recent extreme stock market volatility.

With the research showing advisers currently spending around five hours per week on asset allocation and fund selection, 56 per cent of firms say expertise in these areas is important to the success of their business model. One in five advisers suggest that this activity could be outsourced.

Andy Brown, Director of Investment Funds at Prudential, said: “The unprecedented economic and market events of the past 18 months have increased the need for advisers to help their clients understand the implication of their risk and fund selections.

“Providers should be doing more to support advisers and giving them access to expert advice and help. It is in the interests of advisers and providers to come up with innovative solutions that meet clients’ expectations and their assessed risk levels.

“Asset allocation and fund selection are vital in ensuring that client needs and long-term investment expectations are met. However, both are potentially demanding and time-consuming. Finding reliable sources of both can enhance the service advisers offer to their clients.

“We believe that the interests of intermediaries and their clients are best served by providing risk-rated portfolios that can be mapped to the independent profiling systems used by advisers to assess their client’s attitude to risk. This is a better solution than relying on tools offered by product providers.”

Prudential and Old Broad Street Research (OBSR) have been working together since 2008 on the PruSelect fund range which offers 100 ‘best of breed’ funds as part of a drive to help advisers with fund selection and asset allocation.

Andy Brown continued: “This research demonstrates there is a real need for support f r o m providers to help advisers with the increasing regulatory pressure they face. In addition, the time advisers are currently spending on asset allocation and fund selection cannot be underestimated. We only see this requirement increasing over the next 12 months and we estimate more advisers will look to providers for support in meeting their regulatory obligations.”

Prudential’s research also reveals that only just over half of advisers (52 per cent) say they feel very confident in their level of knowledge of investment products and how to invest which points to a real need for support in this area f r o m providers.

The information contained in Prudential UK’s press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at www.pru.co.uk.

Via EPR Network
More Financial press releases

Checking & Savings, Financial, Financial Information, Financial Services, IRA, Money, Personal Finance, Retirement

UK Workers In State Of Pension Inertia

New research f r o m Prudential shows that nearly a third (30%) of Britain’s 8.8 million active occupational pension scheme members pay no attention to how their retirement savings are invested and 29% – more than 2.5 million scheme members – have never reviewed how their chosen pension fund is performing.

The pension provider’s study also shows that 48% of workers aged 25+ have their money invested in the ‘default’ fund of their company pension scheme.

Pension savers are failing to take an active role in managing their assets to produce the best possible retirement income. Around 29% admit they have never reviewed the progress of their selected pension funds.

Prudential warns that workers who do not regularly review the progress of their pension fund to deliver asset growth, or simply select the default fund offered by their employer without studying any other options available to them or seeking advice, could then risk limiting the value of their pension pot at retirement.

Andy Brown, director of investment funds at Prudential, said: “It’s worrying that so many people who pay into a company pension scheme appear to be in this state of inertia and aren’t taking an active role in the management of their pension savings.

“You routinely check your savings, utilities, insurance cover, mobile phone contract and broadband arrangements to make sure you’re getting the best f r o m them, and checking the performance of your pension should be no different.”

Prudential urges workers who have not reviewed their pension investments, especially during the stock market turbulence of the past two years, to review them now as a priority to ensure they are correctly positioned to take advantage of any market upturn.

Many pension scheme members are doing virtually nothing to ensure their pension funds are invested in the best place to maximise growth and maintain the right balance to protect fund values in the last few years before retirement.

When it comes to paying more money into company pension schemes, Prudential’s research found that 37% of people with a defined contribution pension have either made Additional Voluntary Contributions to their pension fund or increased the amount they pay in.

Via EPR Network
More Financial press releases