Your With-Profits plans
The PruFund range of funds
The PruFund range of funds aim to grow your client's money over the medium to long term (5 to 10 years or more), while protecting them from some of the short-term ups and downs of direct stockmarket investments by using an established smoothing process.
PruFund funds are invested in the Prudential With-Profits Fund, which is one of the largest with-profits funds in the UK. There are differences across the range of PruFund funds in their objectives and mix of assets, and how PruFund delivers returns to investors when compared to other With-Profits business, which means the returns received by investors will vary by fund choice.
Please remember that the value of investments can go down as well as up, your client may not get back what they have paid in.
PruFund funds are multi-asset funds which provide access to a wide range of assets, across different asset types and countries. This diversification allows your client to spread the risk of investment.
Our established smoothing process uses Expected Growth Rates, and where required, Unit Price Adjustments, to deliver a smoothed investment journey.
In certain circumstances, the smoothing process may be suspended in order to protect the With-Profits Fund and the clients invested in it. This can happen independently for each fund in the PruFund Range of funds.
Who manages the PruFund range of funds?
The following table shows fund availability for our key products.
|Prudential PruFund Growth Fund||Prudential PruFund Cautious Fund||Prudential Risk Managed PruFund Fund|
|Prudential Retirement Account||✔||✔||✔|
|Flexible Retirement Plan||✔||✔||✔|
|Prudential Investment Plan||✔||✔||✔|
|Prudential International Investment Bond*||✔||✔|
|Trustee Investment Plan||✔||✔||✔|
*Available with currency options for PruFund Growth Fund and PruFund Cautious Fund (Sterling, Euro, US Dollar).
This is not a comprehensive list of the availability of these funds. Please refer to the appropriate fund guide or product information pages for more information.
Retirement Account - PruFund Series D & Series E
Please note that there are two series of PruFund within Retirement Account, which have different investment date cycles. Customers are invested in either series as follows:
- Series D (PDF) - All investments made on or before 25 August 2017.
- Series E (PDF) - All investments made after 25 August 2017 (including fund switches and regular premium contributions).
There is a range of PruFund funds designed to suit different attitudes to risk and reward, for those wishing to invest for 5 to 10 years or more. There are the four Risk Managed PruFund funds and also the PruFund Growth and Cautious Funds, the latter two may include some guarantee options (at an additional charge).
Risk Managed PruFund funds
There are four Risk Managed PruFund funds which were launched in 2011. They all invest in the same assets, but in different proportions, driven predominantly by the amount of equities each fund holds. Each fund has a parameter which sets out the minimum and maximum proportion allowable in equities.
- PruFund 0-30
- PruFund 10-40
- PruFund 20-55
- PruFund 40-80
These funds provide four options with different levels of risk and potential return. The funds have clearly stated equity parameters to help you match them to the outcomes of your client risk assessments.
For more information on asset allocation within Risk Managed PruFund funds, please download the Adviser Guide (PDF).
PruFund Growth Fund
The PruFund Growth Fund aims to maximise growth over the medium to long term (5 to 10 years or more) by investing in shares, property, fixed-interest and other investments. The fund currently invests in UK and international equities, property, fixed-interest securities, index-linked securities and other specialist investments.
PruFund Cautious Fund
The PruFund Cautious Fund aims for steady and consistent growth through a cautious approach to investing. The fund currently invests around 60% in a well-diversified portfolio of fixed-interest securities and holdings of cash and money market instruments with the balance invested in UK and international shares, property and alternative assets.