TIP - providing guarantees

In the current uncertain economic climate, clients may look for additional security for their investment. To address this, we offer some guarantees within our Trustee Investment Plan (TIP) for:

• With-Profits Fund.
• PruFund Protected Funds.

The With-Profits Fund

We may apply a Market Value Reduction (MVR) to any investment in the With-Profits Fund if you withdraw funds or cash in the plan. MVRs are our way of protecting the interests of all our customers and ensuring that every investor gets a return based on the earnings of the With-Profits Fund over the period their payments have been invested. This will have the affect of reducing the value of the investment.

However, we offer an MVR-free guarantee:

• on any regular withdrawals; or
• on death.

Plans set up before 7 November 2011 will have a Selected Investment Term (SIT). For investments in the With-Profits Fund, we guarantee not to apply an MVR when a plan is cashed in at the end of the SIT.

PruFund Protected Funds

We offer guarantee terms for both PruFund Protected Cautious Fund and PruFund Protected Growth Fund, where the guarantee will only apply at the end of the selected guarantee term. Each guarantee has its own charge. The guarantee charge will be payable for the whole of the guarantee term.

Investing in Protected PruFund Funds ensures that at the end of the selected guarantee term, the fund will be worth at least the amount you invested, adjusted for any applicable charges, ongoing commission costs, enhancements or withdrawals. For full details, please refer to the Key Features document.

At the end of the selected guarantee term, we switch the investment to the fund chosen or to the corresponding PruFund Fund.