We’re pleased to share some good news with you. On the 1 January we repriced PruFund funds held within Prudential ISA. Both new and existing customers will benefit from the reduction in the Annual Management Charge (AMC) and large fund size discounts – where applicable (see table below).
What better time to have discussions with your clients about making sure they’re making the most of their £20,000 ISA allowance before the end of the current tax year (2019/20).
Want to know more about the Prudential stocks and shares ISA see here or speak to your Account Manager.
So what are the changes?
We’ve reduced the AMCs for PruFund Funds – via Prudential ISA by 10bps from 1.20% to 1.10%. This doesn't include additional costs that may apply to each of the available PruFund funds.
Large fund discount – applies to all PruFund fund investments
We’ve also introduced a large fund discount on the value of a customer’s PruFund holdings within their Prudential ISA. Depending on the total value of your client’s PruFund holdings in their Prudential ISA, they might also see a reduction in the effective price they pay on their PruFund holdings. Any other assets not invested in PruFund within the customer’s Prudential ISA are NOT included in determining any large fund discount rate.
| Total PruFund value in ISA | Discount | Effective AMC* |
|---|---|---|
| Less than £100,000 | 0.00% | 1.10% |
| £100,000 to £249,999.99 | 0.05% | 1.05% |
| £250,000 to £499,999.99 | 0.10% | 1.00% |
| £500,000 to £749,999.99 | 0.15% | 0.95% |
| £750,000 to £999,999.99 | 0.175% | 0.925% |
| £1,000,000+ | 0.20% | 0.90% |
*This doesn't include additional costs that may apply to each of the available PruFund funds.
Please note any value of any investment [and any income taken from it] can go down as well as up so your customer might get back less than they put in.
Support for you
ISA cost and charges calculator - discover information about the fund costs and charges and their effect on returns for the Prudential ISA.
ISA: the facts
ISA: planning ideas
Some great things to come in 2020 – watch this space!
