Important PruFund Information

The EGR(s) for some of the funds have changed. Click on the link below for further details.

Find out the latest EGR rates and historic EGR rates here.

Important Information - changes to PruFund Growth (Euro) Fund

The unit price has been adjusted by +4.35% on 26 May 2009 for the PruFund Growth (Euro) Fund and PruFund Protected Growth (Euro) Fund to reflect the underlying performance of the funds as fund returns have moved outside the parameters of the smoothing rules.

This adjustment has been carried out in line with the disclosed smoothing rules and reinforces that the smoothing formula is behaving exactly as it was designed to.

Bondholders who invested in the holding account on or after 25 February 2009 will be switched in at the new unit price. This will not affect the value of their investment.

The unit prices for all other funds in the PruFund range are not impacted by this end quarter unit price adjustment.

The PruFund smoothing process is explained in detail in the PruFund smoothing process guide (PRUS10137). There is a separate version for International Prudence Bond (IPBS10027).

Why have there been Unit Price Adjustments (UPAs) on some funds and not others?

There are a few reasons why this may happen.

Firstly, the PruFund Growth & Income Fund has a different asset allocation from the other funds in the PruFund range. As a result, the investment returns achieved will differ from those achieved on the other funds. This means that a UPA on this fund will not necessarily occur at the same time as a UPA on any other fund.

Similarly, as the Euro and Dollar funds available on the International Prudence Bond are invested in different currencies, the investment returns achieved will differ from those on the other funds and as a result, unit price adjustments may be required at different times relative to the sterling denominated funds.

Although the asset allocations on the onshore life, pensions and international sterling funds are the same, unit price adjustments on these funds may also occur at different times. The life versions of the funds were launched on 25 November 2004 whereas the other funds were launched on 25 November 2008. As the life funds were already in existence when the other funds were launched, the ratio of smoothed to unsmoothed unit price on the life funds was not 100% at the date the other funds were launched. As a result, the requirement for a unit price adjustment on these funds will always be out of line with the pensions and international sterling variants of the funds due to the different start dates.

Latest PruFund Growth Fund performance Vs industry indices

The table below shows the performance of the PruFund Growth Fund which was launched on 25 November 2004 and is available on PruFund Investment Plan, Flexible Investment Plan and Prudential Investment Plan. The PruFund Protected Growth Fund available on these products mirrors the performance of this fund.

The performance of the pension and offshore variants of these funds will differ due to the different tax treatment of the funds. In addition, the Euro and Dollar variants of the funds will have different performance as they are invested in appropriate assets relative to the denomination of the fund.

Until we have at least one year's performance on the full range of PruFund Funds, we will continue to show the performance of the PruFund Growth Fund only.

PruFund returns shown above are gross of applicable plan charges, including AMC but net of tax.
*As at close of business 22/05/09

Source: Lipper, bid to bid, net income reinvested but net of fund tax.