Principles and Practices of Financial Management (PPFM)

How we manage our With-Profits fund

All firms that carry out with-profits business are required to publish the Principles and Practices of Financial Management (PPFM) that are applied in the management of their with-profits funds.

Our PPFM helps a knowledgeable observer (e.g. a financial adviser) understand how we manage with-profits business, including:

  • how we determine pay-out values,
  • our investment strategy, and
  • how we manage business risks.

It covers all with-profits policies issued in the UK by companies in or acquired by the Prudential group i.e. by Prudential Assurance Company Limited (PAC), Scottish Amicable Life plc, Scottish Amicable Life Assurance Society, Prudential (AN) Limited and Prudential International Assurance plc. It also covers the with-profits annuity policies transferred from the Equitable Life Assurance Society to PAC.

The Principles define the overarching standards adopted in managing PAC's with-profits business and describe the approach used in responding to longer-term changes in the business and economic environment.

The Practices describe the approach used in responding to changes in the business and economic environment in the shorter-term, hence they will change more frequently than Principles.

This version of the PPFM was published in April 2014. The contents of the PPFM may be amended in the future and an updated version of the document will be published on our website as soon as practical after any changes are finalised. Please ensure you have also read the Key Features document and Customer Friendly version of the PPFM appropriate for your product.

You can download the PPFM via the link below or call our Customer Service Team on 0800 000 000. Opening times are 8.00am to 6.00pm Monday to Friday. Calls may be monitored or recorded for quality and security purposes.

Principles & Practices of Financial Management

Customer friendly versions (CFPPFM's) of the PPFM are available as follows, each one applicable to particular types of products:

* This guide only applies to Income Choice Annuities which started on or after 7 November 2011. This guide does not apply to:

  • - Income Choice Annuities which were started before 7 November 2011
  • - A small number of Income Choice Annuities which were set up between 7 November and 16 December 2011

If this guide doesn't apply to your Income Choice Annuity and you'd like a copy of the guide that does, please see the Pre 07/11/2011 - Prudential Income Choice Annuity guide. If you are unsure which guide applies to your Income Choice Annuity, please contact us on 0800 000 000.

Current information regarding the asset mix and investment returns:



Prudential's Statement of Unit-Linked Principles and Practices

Prudential has published a statement of the Principles and Practices used in the management of our unit-linked funds.


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With-Profits Fund