PruFund Range of Funds

 

The PruFund Range of Funds includes several funds that you can invest in through our different investment bonds. See the table below.

Please note that the value of your fund may fluctuate and you may not get back your original investment.

Fund Investment bond product
PruFund Cautious Fund Prudential Investment Plan
PruFund Protected Cautious Fund Prudential Investment Plan
PruFund Growth Fund Prudential Investment Plan
PruFund Protected Growth Fund Prudential Investment Plan
PruFund 0-30 Fund Prudential Investment Plan
PruFund 10-40 Fund Prudential Investment Plan
PruFund 20-55 Fund Prudential Investment Plan
PruFund 40-80 Fund Prudential Investment Plan
PruFund Growth (Sterling) Fund Prudential International Investment Bond
PruFund Protected Growth (Sterling) Fund Prudential International Investment Bond
PruFund Cautious (Sterling) Fund Prudential International Investment Bond
PruFund Protected Cautious (Sterling) Fund Prudential International Investment Bond
PruFund Growth (Euro) Fund Prudential International Investment Bond
PruFund Protected Growth (Euro) Fund Prudential International Investment Bond
PruFund Cautious (Euro) Fund Prudential International Investment Bond
PruFund Protected Cautious (Euro) Fund Prudential International Investment Bond
PruFund Growth (US Dollar) Fund Prudential International Investment Bond
PruFund Protected Growth (US Dollar) Fund Prudential International Investment Bond
PruFund Cautious (US Dollar) Fund Prudential International Investment Bond
PruFund Protected Cautious (US Dollar) Fund Prudential International Investment Bond

PruFund Smoothing - how does it work?

PruFund funds are invested in Prudential's With-Profits Fund and aim to provide more stable growth than you can expect from investing directly in the stock market. Each PruFund fund has a different asset mix and fund objective.

These funds are designed to deliver smoothed growth by:

  • Investing in many different investment areas, such as UK and International Equities, Property, Fixed Interest and Cash. By spreading your investment we can help to reduce the risk of your investment experiencing the extreme ups and downs associated with any single investment type. Our investment specialists will look for the best opportunities for growth within these investment areas.
  • Applying a unique smoothing process. The process has two elements:
    • Expected Growth Rates which normally apply on a day to day basis; and
    • Unit price adjustments, which will be applied when the formula requires us to do so.

In addition, for the PruFund Protected Funds we offer a range of guarantees where the guarantee will only apply at the end of a selected term for an additional fee. Please contact your Financial Adviser for more details of the terms of guarantee available.

What is the Expected Growth Rate (EGR)?

The EGR is the rate that is normally used to increase the value of your unit price each day.

The Expected Growth Rates for each of the funds are set quarterly by the Prudential Directors having regard to the expected long term returns of the fund.

We try to make sure that your investment grows as smoothly as possible and due to the long term nature of these rates, they often remain unchanged at the quarterly review.

The EGR gives you an indication of how your investment may perform over the quarter.

How do Expected Growth Rates affect my investment?

When you invest in PruFund, your investment will purchase a number of units dependent upon the unit price on the day you invest and the amount of your investment.

Your investment in PruFund will usually increase at the current Expected Growth Rate applicable to that fund. This increase will be reflected by increasing the unit prices daily.

How can unit price adjustments affect the value of my investment?

The aim is that your investment grows steadily over the medium to long term at the rate of the Expected Growth Rates.

However, when market conditions are volatile, an adjustment to the unit price may occur. A unit price adjustment will be applied when the performance of the fund moves the value of the underlying assets too far away from the value of your investment based on the Expected Growth Rates.

The smoothing process we use ensures that the value of your investment increases as smoothly as possible but is never more than 10% away from the daily valuation of the underlying fund, as calculated on that day alone and over the latest 5 day period - please refer to your Guide to your With-Profits Plan (WPGB0031) for further information on this.

How would a 5% unit price adjustment affect an investment?

  Number of units Unit price Value Unit price after adjustment Value after unit price adjustment
5% increase 50,000 100p £50,000 105p £52,500
5% decrease 50,000 100p £50,000 95p £47,500

Suspension of smoothing

The smoothing process aims to deliver more stable growth. However in order to protect the With-Profits fund and its investors, there may be circumstances where we temporarily suspend smoothing.

The smoothing process can be suspended independently for each fund. If smoothing is suspended, it will be for a minimum of 30 days, and the unit price of your investment will change daily in line with the value of the underlying fund rather than in line with the Expected Growth Rate. For more information on this please refer to your Guide to your With-Profits Plan (WPGB0031).

How do I access PruFund?

You can access PruFund through the following investment bonds;

Email us

Need financial advice?

Existing customers

Do you need to review your plan or policy with us?

Investment tools

Funds

Related links

Book a meeting with The Man from the Pru