Trustee Investment Plan

Our Trustee Investment Plan is for Trustees of UK registered Occupational Pension Schemes and Self Invested Personal Pension Schemes (SIPPs). It allows Trustees to invest in our range of funds – to grow investments over the medium to long term.

Investments from SIPPs will be set up for a named individual – known as a “member designated” plan. Other UK registered Occupational Pension Schemes can also designate the plan to an individual member if they wish to do so. However, plans can only be member designated at the start of the plan. Clients can only access the With-Profits Fund if the plan is member designated.

For member designated plans:

• You can only invest in the With-Profits Fund if the member is under age 85.
• You cannot choose a PruFund Fund if the member is aged 98 or over.
• You cannot choose a PruFund Protected Fund with a guarantee term that ends on or after the member’s 99th birthday.

• Trustees of UK registered Occupational Pension Schemes, including Small Self-Administered Schemes (SSAS) and deferred arrangements

• Trustees of Self-Invested Personal Pension Schemes (SIPPs)

• Minimum initial investment: £20,000
• Minimum additional investment: £10,000
• Additional investments will be set up as a new TIP

Maximum investment is normally £1,000,000. We may accept higher value contributions on request.   

For plans set up from 7 November 2011, there is no set investment term. For plans set up before this date, Selected Investment Term (SIT) applies.

Trustees can:

• Cash in the plan at any time.

• Take regular withdrawals from the first anniversary of the plan; monthly, quarterly, six-monthly or annually (with a maximum limit of 7.5% per year of original investment. Reduced if subsequent partial withdrawals taken).

• Take a partial withdrawal (providing the withdrawal exceeds £1,000 and £1,000 is left in the plan).

Full and partial withdrawals may incur a MVR.

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

A TIP can be used within a Self-Invested Pension Plan (SIPP) to meet a client's income drawdown requirements.

For example, a client with a SIPP could use TIP to provide their income drawdown payments. This allows the client to invest remaining funds within the SIPP or other investments that suit their needs and attitude to risk.

Investing in PruFund to provide income

Within a TIP, funds can be invested in PruFund (PDF) to help provide an income. The Net Expected Growth Rate (EGR) can help cover drawdown payments. 

The Capped Drawdown GAD can help with calculations relating to income drawdown.

The Trustee Investment Plan (TIP) offers access to a broad range of funds, which includes Prudential’s Multi-Asset funds – With-Profits Fund and PruFund range of funds – which are  managed by the Prudential Portfolio Management Group Ltd (PPMG Ltd), experts in asset allocation and multi-asset fund management. 

Fund choices can be changed at any time. The trustee can select to invest in a maximum of six funds under each TIP plan. Note each PruFund & SafeGuard fund counts as two funds - see the Key Features document (PDF) for more. 

For plans set up from 7 Nov 2011, there is flexibility to invest for as long as required.

The Trustee Investment Plan allows trustees of SIPPs and Occupational Schemes outside of Prudential to invest in our PruFund range of funds and With-Profits Fund.

These multi-asset funds are not available through platforms.

These funds:

• offer smoothed returns that provide growth potential and which could help against the effects of inflation

• offer an alternative option for medium to long-term investments to a trustee bank account that may be attracting low rates of interest

• offer fund options that suit different attitudes to risk and objectives

• offer guarantee options that provide added security

• provide a balance to higher risk investments in the Scheme

Find out more about the PruFund range of funds (PDF).

Find out more about the With-Profits fund (PDF).

Access additional internally and externally managed funds, which offer a range of assets to suit differing client needs.

Find out more about fund availability (PDF).

Find out more about the performance of the funds.

In an uncertain economic climate, clients may look for additional security for their investment. To address this, we offer guarantee options within our TIP.

PruFund guarantees 

The PruFund Protected Funds are currently unavailable to new investments.

We offer guarantees for the PruFund Protected Cautious Fund and PruFund Protected Growth Fund . At the end of the selected guarantee term the fund will be worth at least the amount your client invested (subject to charges, enhancements or withdrawals).

With-Profits Fund guarantees

For investments in the With-Profits Fund, we offer a Market Value Reduction-free guarantee on any regular withdrawals or on death.

For plans set up before 7 November 2011, we guarantee not to apply an MVR when the plan is cashed in at the end of the Selected Investment Term.

The main charges are :

• Annual Management Charge (AMC)
• charges for guarantees (if any are taken)
• Fund switching charges (only applicable to pre-28 April 2014 plans)
• Adviser charges (a set-up charge and ongoing charges, if agreed with your client

We will take a charge every year for managing the plan and investments. The amount charged will depend on the funds your client invests in.  

• PruFund Funds: the AMC is deducted as a percentage of the units every month. Note that if a client has only invested in a PruFund Fund for part of a month, we still take a full month's charge.
• With-Profits Fund: the AMC depends on the Fund performance - in particular, the investment return and our expenses. We currently expect this charge to be about 1.30% a year based on the assumption that future investment returns from the Fund will be 5% per year.

Further information on how much we charge for each fund can be found in the TIP Fund Guide (PDF) which you can share with clients.

Discounts on the AMC are available depending on the size of funds.

For plans started on or after 28 April 2014 we apply a Fund Size Discount on the Annual Management Charge (AMC):

The discount to the AMC will apply to the whole of the investment , not just the portion above the threshold levels.

A further 0.025%* is deducted from the AMC for new business single premiums of £150,000 to £249,999. 

A further 0.05%* is deducted from the AMC for new business single premiums of £250,000 and over.

* These additional discounts on top of the Fund Size Discount only apply to new business single premiums (existing plans do not count towards the £150,000 and £250,000 thresholds)

For more information on Fund Size Discounts see the Fast Facts Document (PDF).

Your clients can choose to invest in a maximum of six funds under each TIP plan. For plans set up on or after 28 April 2014, we currently don't charge for switching between funds. For plans set up before 28 April 2014, the first two switches in any 12-month period are free, and are £25 per switch thereafter.

For full details please refer to the Policy Document (PDF) or to request a switch, please complete the Investment Alteration Form (PDF).

The PruFund Protected Funds are currently unavailable to new investments.

Find out more about the charges for guarantee terms available for 

• With-Profits Fund (PDF)

Market Value Reduction

For investments in the With-Profits Fund, an MVR may apply if the client withdraws funds, switches funds or if the plan is cashed in. However, we offer an MVR-free guarantee:

• on any regular withdrawals

• on death*

• for plans taken out before 7 November 2011, when cashed in at the end of the Selected Investment Term

*Investments in the With-Profits Fund are only available if the TIP has been set up for a named individual upon death - 'member designated'.

Adviser charges are broken down into:

• Set-up Adviser Charges: We have limits which set out the maximum level of Adviser Charging which we will facilitate. For Set-up Adviser Charges this is 5% of the single premium or £20,000, whichever is lower. 

• Ongoing Adviser Charges: We have limits which set out the maximum level of Adviser Charging which we will facilitate. For ongoing Adviser Charges this is 1% of the fund value.

Adviser charges must be in accordance with HMRC rules and will be tested to ensure they do not exceed the relevant limit for the TIP.

Find out more about adviser charging and limits in the Fast Facts document (PDF).