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.

Please consider that the value of investments can go down as well as up. You could get back less than invested. You should also discuss 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 assets, combination of assets or defensive strategies, where the chances of values falling and rising are likely to lie between those of funds investing in money market instruments and funds investing solely in corporate bonds.

Lower to Medium Risk

These funds may invest in corporate bonds or multi-asset strategies with a higher weighting in corporate bonds (and other comparable strategies).

Medium Risk

These funds may invest in multi-asset strategies with a higher weighting in equities, while funds investing mainly in property and, currently, government bonds (such as UK Gilts) are 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.

Quarterly Factsheets

To find out about any recent changes to our Corporate Pension Fund range, please go to the Corporate Pension Fund Updates page.

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