Pension and Investment fund updates

Our funds are always potentially subject to changes, and we want to keep you up-to-date with what's happening. You'll find information on recent changes below.

We'd recommend that you visit this page for information if you are considering your investment choice. This page is for information purposes only. Please speak to your adviser if you require any more information.

What’s changing?

We regularly review the funds we offer, and we’ve decided to close some Life funds on 18 October 2019.

We’re closing funds where the fund is too small for us to continue to offer it, or where we have other similar funds available.

When we close a fund we offer our selected replacement fund, with the most similar investment aim. The fund charges are all lower on our selected replacement fund.

What do current investors need to do?

We’re writing to those invested in the closing funds. They can chose to move to another fund, or they can do nothing and we’ll move their investment into our suggested replacement fund.

More information

If you are invested via the Prudential Investment Plan (Life Series 2) detailed information is available on Life Series 2 fund closures.

Detailed information on Life Series 3 fund closuresLife Series 4 fund closures and Life Series 5 fund closures.

Not sure which fund series you’re invested in? Check your annual plan statement, or speak to your financial adviser.

This Prudential fund invests in a fund managed by Investec Investments. They’ve decided to change the objective of the fund from August 2019. So we’ll change the objective of the Prudential fund to reflect the new objective of the fund it invests in.

Although the fund objective is changing, there is no change to how the fund is managed.

What changed?

The table below shows the details of the objective change that will apply to the Prudential fund:

Current fund objective New fund name
The investment strategy of the fund is to purchase units in the Investec Cautious Managed Fund. That fund aims to provide a combination of income and long term capital growth by investing conservatively in a diversified portfolio of equities, bonds and other fixed interest securities of high quality and marketability. At all times the fund's equity exposure will be limited to a maximum of 60% of the portfolio value.

The investment strategy of the fund is to purchase units in the Investec Cautious Managed Fund. That fund aims to provide a combination of income and long term capital growth by investing conservatively in a diversified portfolio of equities, bonds and other fixed interest securities of high quality and marketability.

The Fund targets a return of UK Consumer Prices Index (CPI) +4% each year (gross of fees) over 5 year rolling periods. While the Fund aims to achieve its objective and its performance target, there is no guarantee that either will be achieved, over 5 year rolling periods or over any period and there is a risk of loss.

What current investors need to do?

You don't need to do anything. We’ll update our systems to reflect the changes.

What’s changing?

We believe that the current investment aim constrains the choice of investments open to the fund, as it limits investments in shares, property and alternative assets to around 30%. We may wish to invest more in these assets and, without increasing the fund’s risk rating, try to achieve a better return for policyholders.

This doesn’t change the way we’ll manage the fund. We’ll continue our prudent approach, aiming to secure the highest total return for the fund (after any tax and investment expenses) while maintaining an acceptable level of risk and protecting our policyholders. And we’ll continue to smooth some of the extreme highs and lows of investment performance through our PruFund smoothing mechanism. In particular, the update to the investment aim does not impact the fund’s Expected Growth Rate. You can find out more at pru.co.uk/smoothing.

What current investors need to do?

You don’t need to do anything. We’ve written to those invested in the fund to tell them about the changes.

Current investment aim

 

Investment aim from 29 July 2019

The fund aims for steady and consistent growth through a cautious approach to investing. The fund currently invests around 70% in a well-diversified portfolio of fixed interest securities and holdings of cash and money market instruments. The balance is invested in UK and international shares, property and alternative assets.

The fund aims for steady and consistent growth over the medium to long term (5 to 10 years or more) through a cautious approach to investing. The fund invests in UK and international equities, property, fixed interest securities, index-linked securities, cash and other specialist investments. The fund will aim to invest 50-75% in fixed interest securities, index-linked securities and cash, although we may occasionally move outside this range to meet the fund objectives.


If your invested in either the Prudential Investment Plan (Post R Day) or PruFund Investment Plan (PFIP MK3) then the current risk indicators can be found in the Key Information Document (KID) and for the specific fund in the Investment Option Document (IOD) at pru.co.uk/kid-iod.

For all other Prudential products the following apply:

Current Prudential potential reward and risk indicator

2

Prudential potential reward and risk indicator from 29 July 2019

2

Our risk ratings are based on our expectation of future volatility (the chance of short-term fluctuations up and down in the value of a fund). They do not take into account other types of investment risks you may face such as the effects of inflation. Funds are rated on a scale of 1-6 with 1 being the lowest risk rating and 6 being the highest. Risk ratings are regularly reviewed and may change in the future.

 

This Prudential Newton funds invest in funds managed by Newton Investment Management. BNY Mellon, the parent company of Newton Investment Management, has changed the name of their ‘Newton’ funds. So we’ve decided to change the name and objective of the Prudential funds to reflect the new name of the funds they invest in.

Nothing else is changing. There are no changes to the way the funds are managed.

What changed?
The table below shows the details of the name and fund objective changes:

Previous fund name New fund name
Prudential Newton Global Equity Prudential BNY Mellon Global Equity
Previous fund objective New fund objective
The investment strategy of the fund is to purchase units in the Newton Global Equity Fund. That fund aims to achieve capital growth from a portfolio of international securities. The investment strategy of the fund is to purchase units in the BNY Mellon Global Equity Fund. That fund aims to achieve capital growth from a portfolio of international securities.
Previous fund name New fund name
Prudential Newton Global Income Equity Prudential BNY Mellon Global Income Equity
Previous fund objective New fund objective
The investment strategy of the fund is to purchase units in the Newton Global Income Fund. That fund aims to generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes (including but not limited to another Sub-Fund or Sub-Funds of the Company. Derivatives may be used for efficient portfolio management only. The investment strategy of the fund is to purchase units in the BNY Mellon Global Income Fund. That fund aims to generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes (including but not limited to another Sub-Fund or Sub-Funds of the Company. Derivatives may be used for efficient portfolio management only.
Previous fund name New fund name
Prudential Newton Multi-Asset Balanced Prudential BNY Mellon Multi-Asset Balanced
Previous fund objective New fund objective
The investment strategy of the fund is to purchase units in the Newton Multi-Asset Balanced Fund. That fund aims to achieve a balance between capital growth and income predominantly from a portfolio of UK and International securities. The investment strategy of the fund is to purchase units in the BNY Mellon Multi-Asset Balanced Fund. That fund aims to achieve a balance between capital growth and income predominantly from a portfolio of UK and International securities.


What current investors need to do?

You don't need to do anything. We’ll update our systems to reflect the changes.

M&G merged the fund into their M&G Managed Growth Fund. As a result, the M&G Fund of Investment Trust Shares Fund took the name and objective of the M&G Managed Growth Fund. In addition, the ongoing charge changed.

You can see details of the current and new name, fund objective and charges on the following page.

What changed?

The table below shows the details of the name, fund objective and charges:

Previous name New name
M&G Fund of Investment Trust Shares Fund M&G Managed Growth Fund
Previous investment objective and policy New investment objective and policy

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charges Figure, than that of the FTSE All Share Equity Investment Instruments Index over any five-year period.

At least 80% of the Fund is invested in the shares of investment trust companies. While these stocks are listed in the UK, such assets will be used to give exposure to a wide range of international markets. These investment trust companies may also hold a broad range of investment asset classes including equities, real estate and debt.

The fund may also invest in other transferable securities directly or via collective investment schemes, and may hold cash for liquidity purposes. Collective investment schemes may include funds managed by M&G. Derivatives may be used for efficient portfolio management and hedging purposes.

The fund aims to deliver a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of a composite index comprising 85% global equities and 15% global bonds, over any five-year period. The fund is a multi-asset fund that invests at least 70% of its assets in other collective investment schemes in order to gain exposure to assets from anywhere in the world, including equities, fixed income, convertibles, cash, or near cash. The fund may also invest directly in these assets. In aggregate, the fund will invest at least 70% of its assets in equities, either directly or via collective investment schemes. Derivatives may be used for investment purposes, efficient portfolio management and hedging.
Current charges New Charges
Ongoing Charge Figure of 1.20% plus underlying fund costs of 1.19%. Ongoing Charge Figure of 1.70%.


What current investors need to do?

You don't need to do anything. We've written to those invested in the fund to tell them about the changes.

What’s changing?

We regularly review the funds we offer, and we’ve decided to close the following Life funds on 7 June 2019.

  • Prudential Janus Henderson Cautious Managed Life Fund
  • Prudential Kames Investment Grade Bond Life Fund
  • Prudential Kames Strategic Bond Life Fund

Closing a fund is not an option we take lightly. We'll close funds, when our confidence in how consistent returns will be produced in the future has significantly reduced.

When we close a fund, we offer our selected replacement fund. We aim to keep the ongoing charges the same or lower, in this case the replacement fund charges are lower.

What current investors need to do?

We’re writing to those invested in the closing funds. They can choose to move to another fund, or they can do nothing and we’ll move their investment into the suggested replacement fund.

More information

If you are invested via the Prudential Investment Plan (Life Series 2) detailed information is available on Life Series 2 fund closures.

Detailed information on Life Series 4 fund closures and Life Series 5 fund closures.

Not sure which fund series you’re invested in? Check your annual plan statement, or speak to your financial adviser.

What’s changing?

We’re changing the investment objective and name of the funds in this range. We’re also reducing the fund changes. However, there may be a short term impact on your investment.

What current investors need to do?

You don’t need to do anything. We’ve written to those invested in the fund to tell them about the changes.

More information

If you are invested via the Prudential Investment Plan detailed information on the changes can be viewed here.

Read more about the detailed changes to our other Life or Pension funds in this fund range.

What’s changing?

We’re changing the investment objective and name of the funds in this range. We’re also reducing the fund changes, where possible. However, there may be a short term impact on your investment.

What current investors need to do?

You don’t need to do anything. We’ve written to those invested in the fund to tell them about the changes.

More information

If you are invested via the Prudential Investment Plan detailed information on the changes can be viewed here.

Read more about the detailed changes to our other Life or Pension funds in this fund range.

What’s changing? 

We’re changing the investment objectives and names of the funds in this range.

What current investors need to do?

You don’t need to do anything. We’ve written to those invested in the fund to tell them about the changes.

More information

If you are invested via the Prudential Investment Plan detailed information on the changes can be viewed here.

Read more about the detailed changes to the funds in this range here.

We’ve made changes to the areas where this fund will invest for the longer term – this is what we call the Strategic Asset Allocation of the fund. We believe the changes will improve investment outcomes through diversifying into a wider range of global equity markets.

There’s no change to the Prudential fund’s investment objective, Prudential risk rating or the fund charges as a result of these changes.

What changed?

The table below shows the details of the changes to the Prudential fund: 

From 1st December 2018, the SAA changed from 65% UK / 35% Overseas equities to 40% UK / 60% Overseas equities. The overseas equities allocation was split into a wider mix of regional equities.

Previous  SAA

Equity – UK                                                    65.00%

Equity – Overseas Equities                           35.00%

New SAA

Equity – UK                                                                        39.60%

Equity – North America                                                    15.84%

Equity – Europe                                                                 15.84%

Equity – Japan                                                                     6.93%

Equity – Asia                                                                       15.84%

Equity – Global Emerging Markets                                     4.95%

Cash                                                                                      1.00%

What current investors need to do?

You don't need to do anything. We've written to those invested in the fund to tell them about the changes.

We’ve made a number of changes to the areas where this fund will invest for the longer term – this is what we call the Strategic Asset Allocation of the fund. We believe these changes will improve investment outcomes through diversifying into a wider range of global equity markets.

There’s no change to the Prudential fund’s investment objective or fund charges as a result of these changes.

What changed?

The table below shows the details of the changes to the Prudential fund: 

We’ve changed the Strategic Asset Allocation (SAA). 

From 1st December 2018, the SAA changed from 60% UK / 40% Overseas equities to 40% UK / 60% Overseas equities. These changes also saw the introduction of Global Emerging Markets equities. These are shares of companies listed in countries with developing economies around the world.

The fund remains a Global Equity fund.

Previous  SAA

Equity – UK                                                    60.47%

Equity – North America                                24.59%

Equity – Europe                                               7.40%

Equity – Japan                                                  3.98%

Equity – Asia                                                     3.56%

Equity – Global Emerging Markets                 0.00%

New SAA

Equity – UK                                                     39.60%

Equity – North America                                 15.84%

Equity – Europe                                              15.84%

Equity – Japan                                                  6.93%

Equity – Asia                                                    15.84%

Equity – Global Emerging Markets                  4.95%

Cash                                                                   1.00%

We’ve changed the Association of British Insurers (ABI) sector the fund sits in.

The fund sat in the Flexible Investment sector but also met the criteria for inclusion in the Global Equity sector. But as it only invests in Global Equities, the most appropriate sector is Global Equities.

The previous ABI sector was: Flexible Investment

The new ABI sector is: Global Equities

We’ve changed the Prudential Risk Rating.

As a result of the ABI sector change, we decided to update the Prudential Risk Rating. Although you should note that the fund remains a Global Equity fund.

The previous risk rating was: 5

The new risk rating is: 6

What current investors need to do?

You don't need to do anything. We've written to those invested in the fund to tell them about the changes.

This Prudential fund invests in a fund managed by Old Mutual Global Investors. They decided to rebrand to Merian Global Investors. So we decided change the name and objective of the Prudential fund to reflect the new name of the fund it invests in.

The Prudential fund’s existing Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the name change that applied to the Prudential fund: 

Previous fund name

New fund name

Prudential Old Mutual UK Mid Cap

Prudential Merian UK Mid Cap

Previous fund objective

New fund objective

The investment strategy of the fund is to purchase units in the Old Mutual UK Mid Cap Fund. That fund aims to provide capital growth from investing primarily in a portfolio of medium-sized UK companies.

The investment strategy of the fund is to purchase units in the Merian UK Mid Cap Fund. That fund aims to provide capital growth from investing primarily in a portfolio of medium-sized UK companies.

What current investors need to do?

You don't need to do anything. We've written to those invested in the fund to tell them about the changes.

This Prudential fund invests in a fund managed by M&G. To keep things clear, we’ve decided to change the name of the Prudential Fund to reflect the name of the fund it invests in.

The Prudential fund’s existing underlying fund strategy, Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the name change that applied to the Prudential fund:  

Previous fund name

New fund name

Prudential Corporate Bond Fund (Inc)

Prudential M&G Corporate Bond Fund (Inc)

What current investors need to do?

You don't need to do anything. We've written to those invested in the fund to tell them about the changes.

This Prudential fund invests in a fund managed by M&G. To keep things clear, we’ve decided to change the name of the Prudential Fund to reflect the name of the fund it invests in.

The Prudential fund’s existing underlying fund strategy, Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the name change that applied to the Prudential fund: 

Previous fund name

New fund name

Prudential Fixed Interest Fund (Inc)

Prudential M&G Gilt & Fixed Interest Income Fund (Inc)

What current investors need to do?

You don't need to do anything. We've written to those invested in the fund to tell them about the changes.

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