The Prudential ISA

The Prudential ISA is a Stocks and Shares ISA provided by Link Financial Investments Limited, who is the ISA Plan Manager. Link Financial Investments Limited is responsible for all regulatory and legal aspects of the ISA and provision of all customer services.

Your clients can start their investment from as little as £50 each month or with a single lump sum of £500. The minimum top-up payment is £250.

There is no minimum investment term - your clients can stop, restart, raise or lower payments whenever they like.

The Prudential ISA has two elements:

• Investment in a life insurance policy which allows access to the PruFund Funds (the Life Insurance Policy) for which Prudential is responsible

• Investment in Open-Ended Investment Company (OEIC) funds for which Link Fund Solutions Limited are responsible

Your clients can choose to invest in one or both of these elements of the Prudential ISA.  

Download our guide to the Prudential ISA (PDF) for more information.

Some of the documents for The Prudential ISA, such as application forms, servicing forms and fund information documents, are only available on the Link Financial website.  

Any owner must be at least 18 or over. There is no maximum age limit.

The following minimum investment amounts apply:  

• Initial payment or transfer of £500 per fund

• £250 for top-ups

• Regular monthly payments of £50 per fund

Regular savings can be increased by any amount, subject to a minimum of an additional £5 per month.

The overall ISA subscription limit is £20,000 for the current tax year. This can be split in any proportion between Cash and Stocks and Shares ISAs. Transfers in from other ISA plans don't count towards your clients' annual limit.

Please note, Prudential does not offer a Cash ISA.

Clients can:

• take regular withdrawals monthly, quarterly, six-monthly or annually (subject to a minimum withdrawal of £50)

• take partial withdrawals as a specific amount (subject to a minimum withdrawal of £250)

• opt to fully surrender the ISA at any time. The ISA ends once all proceeds have been withdrawn

The maximum aggregate value of withdrawals in a 12 month period must not be more than 7.5% of the full value of your client's eligible holdings. The Regular Withdrawals guide has more information. 

If your clients are taking a lump sum or regular withdrawals from their ISA, the minimum value limit is £500 for each fund.      

Download the Prudential ISA Fast Facts Document (PDF) for more information.

Funds available within the Prudential ISA:

• PruFund range of funds   
• LF Prudential OEIC Fund range

The Prudential ISA offers our PruFund range of funds which aim to grow your client's money while giving a smoothed investment experience.

• PruFund Risk Managed 1 Fund
• PruFund Risk Managed 2 Fund
• PruFund Risk Managed 3 Fund
• PruFund Risk Managed 4 Fund
• PruFund Risk Managed 5 Fund
• PruFund Cautious Fund
• PruFund Growth Fund

Find out more about the PruFund Range of funds. 

Expected Growth Rates

We announce the Expected Growth Rates that apply to the PruFund Range of Funds every quarter.

Find out more about our Expected Growth Rates, Historic Expected Growth Rates or Unit Price Adjustments for the PruFund Range of Funds.

We offer a range of five Risk Managed Active and five Risk Managed Passive funds which are Open Ended Investment Company (OEIC) funds that pool your clients money together with other investors.

Risk Managed Active Range

• LF Prudential Risk Managed Active 1 Fund
• LF Prudential Risk Managed Active 2 Fund
• LF Prudential Risk Managed Active 3 Fund
• LF Prudential Risk Managed Active 4 Fund
• LF Prudential Risk Managed Active 5 Fund

Find out more about the Risk Managed Active Range.

Risk Managed Passive Range

• LF Prudential Risk Managed Passive 1 Fund
• LF Prudential Risk Managed Passive 2 Fund
• LF Prudential Risk Managed Passive 3 Fund
• LF Prudential Risk Managed Passive 4 Fund
• LF Prudential Risk Managed Passive 5 Fund

Find out more about the Risk Managed Passive Range.

Your clients can switch funds whenever they need to, without charge, giving them control over their investments.

The main charges will be:

• Annual Management Charges (AMC)
• Fund switching charges
• Adviser Charges

Annual Management Charges (AMC) applies for each fund. 

We will take a charge each year for the management and administration of funds held within the Prudential ISA.

• PruFund Funds: for these funds, the AMC is taken by the monthly cancellation of units from each investment. Note: if a client has only invested in a PruFund Fund for part of a month, we still take a full month's charge. A reduction to the AMC on a client’s PruFund Funds will apply if the total value of the client’s PruFund Funds held in their Prudential ISA is £100,000 or more. 
  
• Risk Managed Active/Passive Funds: the Ongoing Charge figure is based on the total of all charge payments made over a year, and includes charges such as the fund’s Annual Management Charge, custodian charge and administration fee.
  
• Further costs incurred by the funds: In addition to our charges, there may be further costs incurred, which can vary over time. Where these are applicable, they are paid for by the relevant fund and will impact on its overall performance.

Further information on the PruFund Fund charges and costs can be found in Fund Guide (PDF).

PruFund range of funds

Your clients can switch between funds at any time. Switches out of any PruFund Fund will be subject to a 28 day delay.

There is currently no charge for switching. The minimum value of your clients PruFund investment they can switch is £500. If they are not switching the full value of their investment from a particular PruFund Fund, they must leave at least £500 in each fund.

Risk Managed Active/Passive funds

There is currently no charge for switching. Your clients can switch all or some of their shares in one fund for shares in another fund in the company at any time. This is subject to any restrictions on the eligibility of investors for a particular share class.

There are two main types of Adviser Charges:

• Initial (set-up) adviser charge: agreed between you and your client as a % of initial investment; or a fixed monetary amount.

• Ongoing Adviser Charge: agreed between you and your client as a % of total plan value or a specified monetary amount each year.

Ad hoc Adviser Charges are not available.

For more details on Adviser charging, see the Adviser Charging Guide. 

See our Adviser Charging Guide to learn more about Adviser charging.

Transferring an existing ISA

Your clients can transfer any previous tax year’s Cash ISA or Stocks and Shares ISAs from other providers to the Prudential ISA without affecting the current year’s subscription limits (please check the HMRC  website for current limits). They can invest the transfer amount into the range of funds available.

When considering a transfer, your clients should speak to their existing ISA provider about potential charges or penalties.