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Principles and Practices of Financial Management

All firms that carry out with-profits business are required to publish the Principles and Practices of Financial Management (PPFM) that are applied in the management of their with-profits funds.

Our PPFM helps a knowledgeable observer (e.g. a financial adviser) understand how we manage with-profits business, including:

  • how we determine pay-out values,
  • our investment strategy, and
  • how we manage business risks.

It covers all with-profits policies issued in the UK by companies in or acquired by the M&G plc Group i.e. by Prudential Assurance Company Limited (PAC), Scottish Amicable Life plc, Scottish Amicable Life Assurance Society, Prudential (AN) Limited and Prudential International Assurance plc. It also covers the with-profits annuity policies transferred from the Equitable Life Assurance Society to PAC.

The Principles define the overarching standards adopted in managing PAC's with-profits business and describe the approach used in responding to longer-term changes in the business and economic environment.

The Practices describe the approach used in responding to changes in the business and economic environment in the shorter-term, hence they will change more frequently than Principles.

This version of the PPFM was published in November 2019. The contents of the PPFM may be amended in the future and an updated version of the document will be published on our website as soon as practical after any changes are finalised. Please make sure you have also read the Key Features Document and Customer Friendly version of the PPFM appropriate for your product.

You can download the PPFM using the link below or call our Customer Service Team on 0800 000 000. Opening times are 8.00am to 6.00pm Monday to Friday. We might record your call for training and quality purposes. To find out more about how we use your personal data please see our Data Privacy Notice.

Prudential's Principles and Practices of Financial Management (PPFM) PDF (4000k)

This document outlines the notable changes made to Prudential's PPFM since launch in 2004.

Prudential's Principles and Practices of Financial Management - Summary of changes (60k)

There are also Customer Friendly versions of the PPFM available, each one applicable to particular types of products

PruFund (Pricing Series E) range of funds
PruFund (Prcing Series D) range of funds
PruFund Range of Funds
PruFund Unitised With-Profits Plans
Prudential Conventional With-Profits Plans
Unitised With-Profits Plans originally issued by SALAS
Conventional With-Profits Plans originally issued by SAL
Prudential Income Choice Annuity*
Prudential With-Profits Annuity Plans
Ex-Equitable Life Assurance Society With-Profits Annuity Plans
Prudential International Investment Bond and International Prudence Bond - Your With-Profits Bond - a guide to how we manage the Fund
Prudential International Investment Bond and International Prudence Bond - The PruFund Range of Funds
Prudential Flexible Investmewnt Plan (Series S - Sold by Santander Financial Advisers)

* This guide only applies to Income Choice Annuities which started on or after 7 November 2011.
This guide does not apply to:

  • Income Choice Annuities which were started before 7 November 2011
  • A small number of Income Choice Annuities which were set up between 7 November and 16 December 2011

If this guide doesn't apply to your Income Choice Annuity and you'd like a copy of the guide that does, please see the Pre 07/11/2011 -Prudential Income Choice Annuity guide. If you are unsure which guide applies to your Income Choice Annuity, please contact us on 0800 000 000.

Further Information

Current information regarding the asset mix and investment returns is included in the document below.

Asset Mix and Investment Returns PDF (89k)

Scottish Amicable Insurance Fund Chairman's Statement 

Scottish Amicable Insurance Fund Chairman's Statement

Prudential's Statement of Unit-Linked Principles and Practices

Prudential has published a statement of the Principles and Practices used in the management of our unit-linked funds.

View details of this statement 

© Prudential 2019