Understanding the Risk Rating
Risk ratings have been developed by Prudential to help provide an indication of the potential level of risk and reward that is attributable to a fund based on the type of assets which may be held within the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry.
Prudential will keep the risk ratings under regular review and as such they may be subject to change in the future. We therefore recommend that before making any fund choice in the future you understand the appropriate risk rating before making a decision.
You should also consider discussing your decision and the appropriateness of this risk rating with an adviser.
Minimal Risk
These funds may invest in a combination of deposits, money market instruments and other types of interest bearing securities.
Lower Risk
These funds may invest in fixed interest securities including gilts, index-linked bonds and an element of corporate bonds. These types of investment are generally recognised as lower risk.
Lower to Medium Risk
Some of these funds invest in fixed interest securities, predominantly corporate bonds, with higher yielding corporate bonds placed towards the top end of this range as they carry higher default risk. The other funds in this category invest in a wide range of assets which help to provide risk diversification.
Medium Risk
These funds are predominantly multi-asset funds with a higher weighting in equities. The Property Fund itself is also in this category.
Medium to Higher Risk
These funds offer a diverse geographical spread of equity investment. The funds within this category will have greater overseas exposure and underlying volatility than the "medium" sector.
Higher Risk
These are specialist equity funds that focus on set geographical regions or a particular type of share e.g. shares of smaller companies or those that conform to certain criteria.
To find out a fund's current risk rating please refer to the appropriate fund factsheet.
To find out about any recent changes to our Corporate Pension Fund range, please go to the Corporate Pension Fund Updates page.
