PruFund Cautious series go live today on our FRP and TIP

Earlier this year we extended the PruFund range on our onshore and offshore bonds to include the new PruFund Cautious and PruFund Protected Cautious Funds. We are now pleased to announce that these new funds are now open for investment on our Flexible Retirement Plan and Trustee Investment Plan.

The PruFund Protected Cautious Fund comes with a new guarantee. The guarantee is for a fixed term of 5 years (though customers with terms of more than 5 and less than 10 years have the added option to set the guarantee date to their SRA / Maturity Date).

We believe that the addition of the PruFund Cautious range, alongside our existing multi-asset capability and PruSelect range, gives us a truly comprehensive investment proposition.

To appeal to the more cautious investor the funds will have an asset mix of circa 70% fixed interest/cash and 30% equities/property.

There is some important information you should be aware of:

• To mark this launch we are offering an introductory discount of 0.25% on the cost of the guarantee for new investments in the Flexible Retirement Plan and the Trustee Investment Plan. This reduces the cost of the guarantee to just 0.50% p.a. for the guarantee period and is available on all applications received by 31 December 2009*.
• Given continued concerns about market volatility it remains difficult to provide attractively priced guarantees on funds that are largely invested in equities. As a result we will be closing the existing PruFund Protected Growth Fund to new investments on 31 December 2009.
• Cut off dates for illustrations, new applications and switches into the PruFund Protected Growth Fund:
  

  Final date for illustrations+	4 December 2009
  Final date for new applications+	31 December 2009
  Final date for switches into the PruFund Protected Growth Fund	31 December 2009
  Final date for receipt of outstanding information and money+	26 February 2010

  +Also applies to the 0.25% discount on the PruFund Protected Cautious Fund guarantee.

Communicating to affected clients

The closure of PruFund Protected Growth Fund is a material change to the policy terms and conditions for some clients. We will therefore be writing to these affected clients to advise them of the changes. If you have clients who are affected we will be contacting you shortly to provide you with more information.

For more information please see our Flexible Retirement Plan site and our Trustee Investment Plan site.

* We reserve the right to remove, alter or extend the offer at any time without notice.