The PruFund Range of Funds: Guarantee Options

The PruFund Range of Funds is a collection of funds which includes:

• three PruFund Growth Funds: Sterling, Euro and US Dollar,
• three PruFund Cautious Funds: Sterling, Euro and US Dollar, and
• a range of PruFund Protected Funds that have a guarantee.

What is the guarantee?

• At the start of the bond, your client will have a Guaranteed Minimum Fund.
• This is equal to the amount invested in the chosen PruFund Protected Fund.
• If your client makes any regular or one-off withdrawals, the Guaranteed Minimum Fund will be reduced proportionately.
• At the Guarantee Date, if the value of the units your client holds in the Fund is less than their Guaranteed Minimum Fund, we will add units to bring it up to the amount guaranteed.
• We then automatically transfer all the units they hold in the PruFund Protected Fund, including any we have added, into the corresponding non-protected fund.

What are the PruFund guarantee options?

The current guarantee terms and charges are shown below.

The guarantee charge is taken monthly in arrears by cancelling units. The appropriate rate from the table above will apply to the value of your client’s investment in the fund at the time the charge is taken. Please note that these charges may change in future, but once the client has invested the charge will be fixed for the full term of their chosen guarantee.

The guarantee terms in detail

• Your client selects one of the available guarantee terms.
• The guarantee will then apply on the Guarantee Date, which is the corresponding anniversary of the bond.
• Please note that the guarantee will only apply on the Guarantee Date.
• Once chosen, the guarantee term cannot be altered.
• The guarantee will be proportionally reduced if your client partially switches out of the fund, or partially cashes in the bond, before the guarantee date.
• The guarantee will not apply if your client fully switches out of the fund, or fully cashes in the bond, before the guarantee date.

You can find more information in “Your guide to investing in the PruFund Range of Funds” below and the literature section on the right.