Prudential Onshore Portfolio Bond

If you invest in this product you should read our Key Information Document, relevant ‘Investment Option Document(s)’ or Fund Managers own Key Investor Information Document(s) as appropriate.  Please note that if the fund manager is not Prudential, you will need to source these documents from the fund manager directly. These include important information which may help you make up your mind.

This is where any cash balances are held in the Bond. The cash account is used to buy assets for the Bond, receive cash income from assets, meet Bond charges, any regular or one-off withdrawals and Adviser Charges.

For more information on the Cash Account see our fast facts document (PDF).

• Any owner must be at least 18 years of age and UK resident. 
• The maximum number of owners is 10.
• The maximum age for ownership for life assured business is under 90.
• Up to 10 lives assured can be covered. The Bond is available on a single life, joint life first death or last survivor basis.
• The maximum age at entry for single and joint life cases is under age 90. On a joint life last death basis at least one life must be under age 90.
• Insurable interest must exist between the owner(s) and the lives assured.
• Prohibited countries list 

• Minimum initial investment: £15,000 (before the deduction of any set-up adviser charges)

• Minimum top-up investment: £2,500

No maximum applies although premiums in excess of £10 million will require additional due diligence.

Clients can:

• cash in the Bond at any time

• take regular withdrawals every month, two months, three months, four months, six months or annually

• take a one-off withdrawal as a specific amount

See the Key Features Document (PDF) for more information.

The Prudential Onshore Portfolio Bond offers a choice  of trust, your client can select which one better suits their circumstances. The Bond can also facilitate investment by existing trusts.

Choice of trust:

• Discounted Gift Trust

• Loan Trust

• Gift Trust

• Probate Trust

See the Prudential Trust and Application Form Tool for more information.

All assets are held on the chosen platform.

The premium will initially be invested in the Cash Account in the Bond which the Adviser, client or Discretionary Fund Manager can reallocate to purchase the chosen Assets.    

There is a wide range of fund and asset choice available, which your client can manage on their chosen platform. Typically, these include assets such as:

• Unit Trusts

• OEICs

• SICAVs (Societies d’Investissement a Capital Variable)*

• UCITS (Undertakings in Collective Investments in Transferable Securities)**

• ETFs/ETCs  

* SICAVs are European Collective Investments similar to OEICs.

**UCITs is a generic term for funds that meet certain regulatory requirements and can be sold in any European Union country.

Your clients platform may offer access to a managed portfolio of assets.

These portfolios may be managed by a Discretionary Fund Manager (DFM), who on an ongoing basis, choose the investments within the managed portfolio.

For further details on how your client's Bond assets are managed download Prudential Onshore Portfolio Bond - fast facts (PDF).

Switching funds is a straightforward process:

• There are no restrictions in the number of assets that can be held at any time*.

• There are no restrictions on the frequency of trading*.

* This will depend on the terms agreed between the platform and the fund manager. In addition the platform may set a minimum holding in a particular fund.

The main charges will be:

• Bond Charges
  
• Asset Charges and Costs
• Adviser Charges
  

The following charges can be taken from the bond:

• Ongoing Product Charge

• Administration and Operation Charge

• Discretionary Fund Manager Charge

• Expenses (dealing costs, taxes, duties, levies)

Bond charges are reviewed annually. From time to time, we may introduce new charges as a result of a levy or a charge imposed on the company. For more information on charges,  download Prudential Onshore Portfolio Bond - fast facts (PDF).

• Yearly total
• Initial Charge

The Yearly Total combines the Annual Management Charge and further costs deducted from an underlying Asset by the investment management organisation where that Asset is held in the form of units or shares in investment funds. The Initial Charge is applied to an underlying Asset which is held in the form of units or shares in investment funds, and where the Asset has different buying and selling prices.

For more information on charges, view our Prudential Onshore Portfolio Bond - fast facts (PDF) document.

There are three main types of Adviser Charging.

• Set-up Adviser Charge: deducted from the initial payment before it is invested in the plan.

• Ongoing Adviser Charge: taken at plan level, will apply across all in-force segments.     

• Ad hoc Adviser Charge: after the initial plan is set-up, the client can request an Ad hoc payment to be made to the Adviser. Will apply across all in-force segments. 

Ongoing and Ad-hoc Adviser Charges are treated as withdrawals from the Bond and will count against the 5% tax-deferred allowance. 

The Prudential Onshore Portfolio Bond facilitates a range of Ongoing and Ad hoc Adviser Charging options available through the platform. Prudential International Assurance plc, UK Branch can facilitate Set-up Adviser Charges.

For more information on Adviser Charging, download the Prudential Onshore Portfolio Bond - fast facts (PDF) document.