As part of the smoothing process, Prudential set Expected Growth Rates (EGR); these are the annualised rates your client’s investment would normally grow at. They are reviewed every three months, when they could rise or fall.
They are set quarterly by the Prudential Directors, having regard to the investment returns expected to be earned on the assets of the funds over the long-term (up to 15 years). They are published every quarter for each product. Your client’s investment will normally benefit from this growth rate on a daily basis, through an increase in the price of the units held (known as the unit price).
The tables below show the current Expected Growth Rates, gross of all product charges (including Annual Management Charges) unless indicated otherwise.
You can also view Historic EGR and Unit Price Adjustments (UPA) for each product.
The rates are correct as at 27 November 2017.
Past performance is not an indicator of future performance. Remember that the value of an investment can go down as well as up, your client may not get back what they paid in.
The Expected Growth Rates set at each quarter date may be higher, the same or lower than those applying at the start of the investment.
In addition, there may be times where the unit price may be adjusted which will impact any growth that clients may receive. The overall return achieved on any plan is affected by the amount of the investment, investment performance, the period over which the plan has been invested and the charges applicable to the plan.
There may be occasions where we have to suspend the smoothing process for one or more PruFund funds, to protect our With-Profits Fund and the clients invested in it. We may also suspend the smoothing process if unusually large volumes of money enter or leave the funds. When this happens, the smoothed price for the affected fund(s) is set to the unsmoothed price for each day until the smoothing process is reinstated. Suspension of smoothing can be applied independently for each fund in the PruFund Range of Funds.
You should refer to Key Features or Terms & Conditions of your client's plan for more information on how the Expected Growth Rates work.