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.

M&G has changed the objectives on a number of their funds. So we decided to change the objectives of the Prudential funds.

There’s no change to the way the funds are managed and the funds Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the objective changes:

M&G Corporate Bond Fund

Previous objective

New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide income and capital growth. At least 70% of the fund is invested in sterling-denominated corporate debt instruments. The fund’s exposure to corporate debt may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. Any currency exposures within the fund may be managed by currency hedges into sterling. The fund may also invest in collective investment schemes, other transferable securities and other debt instruments (including corporate debt and government and public securities denominated in any currency), cash, near cash, other money market securities, warrants and other derivative instruments.

Objective: The investment strategy of the fund is to purchase units in the M&G Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the IA £ Corporate Bond Sector over any five-year period.

At least 70% of the Fund is invested, directly or indirectly through derivatives, in investment grade corporate debt securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities are denominated in Sterling or hedged back to Sterling.

Other investments may include:

  • debt securities issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns and supranational bodies, denominated in any currency;
  • below investment grade and unrated debt securities;
  • Asset-Backed Securities; and
  • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

Derivatives may be used for investment purposes, efficient portfolio management and hedging. 

M&G Gilt and Fixed Interest Income Fund

Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Gilt & Fixed Interest Income Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide income and capital growth. At least 70% of the fund is invested in short, medium or long-dated gilts according to the fund manager’s view at any given moment of the likely course of interest rates and trend of the gilt market. The fund’s exposure to gilts may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. The fund may also invest in collective investment schemes, other transferable securities, other debt instruments, cash, near cash, other money market securities, warrants and other derivative instruments.

Objective: The investment strategy of the fund is to purchase units in the M&G Gilt & Fixed Interest Income Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the FTSE UK Conventional Gilts All Stocks Index over any five-year period.

At least 70% of the Fund is invested, directly or indirectly through derivatives, in investment grade short, medium and long-dated gilts. These securities are issued or guaranteed by the UK government, and denominated in Sterling.

Other investments may include transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

Derivatives may be used for investment purposes, efficient portfolio management and hedging.

M&G Index-Linked Bond Fund
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Index-Linked Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide income and capital growth. At least 70% of the fund is invested in index-linked debt instruments which may be government and public securities or corporate debt instruments. Non-sterling denominated securities may be held and, if deemed appropriate by the investment manager, the associated currency risks hedged. The fund’s exposure to index-linked, government and public securities or corporate debt may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. The fund may also invest in collective investment schemes, other transferable securities, cash, near cash, other money market securities, warrants and other derivative instruments.

Objective: The investment strategy of the fund is to purchase units in the M&G Index-Linked Bond Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the FTSE UK Index-linked Gilts All Stocks Index over any five-year period.

At least 70% of the Fund is invested, directly or indirectly, in inflation-linked debt securities issued or guaranteed by the UK government, and denominated in Sterling.

The Fund’s indirect exposure to inflation-linked debt securities is achieved by investing through a combination of instruments. These include the combination of government bonds or corporate bonds with credit derivatives, such as credit default swaps.

Other investments may include:

  • debt securities issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns and supranational bodies, or corporate debt instruments, denominated in any currency; and
  • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

Derivatives may be used for investment purposes, efficient portfolio management and hedging.

M&G Optimal Income Fund
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Optimal Income Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a total return (the combination of income and growth of capital) to investors based on exposure to optimal income streams in investment markets.

Objective: The investment strategy of the fund is to purchase units in the M&G Optimal Income Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the IA £ Strategic Bond Sector, over any five-year period.

At least 50% of the Fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade, unrated securities and Asset Backed Securities. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency.

Other investments may include:

  • up to 20% of the Fund in equities; and
  • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

There are no credit quality restrictions applicable to the Fund's investments.

At least 80% of the Fund is in Sterling or hedged back to Sterling.

Derivatives may be used for investment purposes, efficient portfolio management and hedging. 

M&G Short Dated Corporate Bond Fund

Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Short Dated Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a total return (the combination of capital growth and income). At least 80% of the fund is invested in investment grade corporate bonds (including variable rate securities and fixed income securities). The fund invests in securities which on aggregate produce a low portfolio duration, in order to limit the effect of interest rate movements on the fund’s capital value. These securities may be issued anywhere in the world. The fund aims to hedge non-GBP assets to GBP. Derivatives can be used to meet the fund’s investment objective and for efficient portfolio management. The fund may also invest in other debt securities (including government and public securities denominated in any currency), collective investment schemes, other transferable securities, cash, near cash, other money market securities, warrants, and other derivative instruments.

Objective: The investment strategy of the fund is to purchase units in the M&G Short Dated Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the Markit iBoxx EUR Corporates 1-3 year Index (GBP Hedged) over any five-year period.

At least 80% of the Fund is invested, directly or indirectly through derivatives, in short-dated investment grade fixed and floating rate corporate debt securities and in Asset-Backed Securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency.

Other investments may include:

  • below investment grade and unrated corporate debt securities; and
  • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

The Fund aims to hedge any non-Sterling assets back to Sterling.

Derivatives may be used for investment purposes, efficient portfolio management and hedging.

M&G Strategic Corporate Bond Fund
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Strategic Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to maximise total return (the combination of income and growth of capital) through investment predominantly in investment grade corporate bonds.

Objective: The investment strategy of the fund is to purchase units in the M&G Strategic Corporate Bond Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the IA £ Corporate Bond Sector, over any five-year period.

At least 70% of the Fund is invested , directly or indirectly through derivatives, in investment grade corporate debt securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency.

Other investments may include:

  • below investment grade and unrated corporate debt securities;
  • debt securities issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns and supranational bodies;
  • Asset-Backed Securities; and
  • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

The Fund aims to hedge any non-Sterling assets to Sterling.

Derivatives may be used for investment purposes, efficient portfolio management and hedging.

M&G Global High Yield Bond Fund
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Global High Yield Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide income and capital growth. At least 80% of the fund is invested in higher yielding corporate debt instruments which may be denominated in sterling, European currencies and other major global currencies, should the investment managers deem them to be appropriate investments. The fund’s exposure to higher yielding corporate debt instruments may be gained through the use of derivatives and any currency exposures within the fund may be managed by currency hedges into sterling. Derivatives may also be used for efficient portfolio management. The fund may also invest in collective investment schemes, government and public securities and other transferable securities, cash, near cash, other money market instruments, warrants and other derivative instruments. More than 80% of the fund will be in sterling or hedged back to sterling.

Objective: The investment strategy of the fund is to purchase units in the M&G Global High Yield Bond Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the ICE BofAML Global High Yield Index (GBP Hedged) over any five-year period.

At least 80% of the Fund is invested, directly or indirectly through derivatives, in below investment grade corporate debt securities, These securities can be issued by companies from anywhere in the world, including Emerging Markets.

Other investments may include:

  • Asset-Backed Securities, and
  • other transferable securities, government bonds, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G). 

There are no credit quality restrictions applicable to the Fund's investments.

The Fund aims to hedge any non-Sterling assets back to Sterling.

Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Janus Henderson has changed the objectives on a number of their funds. So we decided to change the objectives of the Prudential funds.

There’s no change to the way the funds are managed and the funds Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the objective changes:

Janus Henderson Cautious Managed Pension Fund
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson Cautious Managed Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a combination of income and long-term capital growth through investment in a diversified portfolio of equities, bonds and other related investments. The investment in equities will be limited to a maximum of 60% of the value of the fund's portfolio.

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson Cautious Managed Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a return, from a combination of income and capital growth over the long term. To outperform the 50% FTSE All Share + 50% ICE Bank of America ML 5-15 Year Sterling Non Gilt Index by 1.5% per annum, before the deduction of charges, over any 5 year period.

The Fund invests in shares (also known as equities) and bonds of governments, companies or any other type of issuer, in any country. At all times the investment in equities will be limited to a maximum of 60% of the value of the Fund’s portfolio and the Fund will normally have a strong bias towards UK companies and bonds. Companies and bond issuers may be of any size, in any industry.

The Fund may also invest in other assets including Collective Investment Schemes (including those managed by Janus Henderson) cash and money market instruments.

The investment manager may use derivatives (complex financial instruments) to reduce risk or to manage the Fund more efficiently.

The Fund is actively managed with reference to the 50% FTSE All Share + 50% ICE Bank of America ML 5-15 Year Sterling Non-Gilt Index, which is broadly representative of the securities in which it may invest, as this forms the basis of the Fund's performance target. The investment manager has a high degree of freedom to choose individual investments for the fund.

Janus Henderson China Opportunities Fund
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson China Opportunities Fund - the underlying fund.

Underlying Fund Objective: The fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from investments in Hong Kong and Chinese equity markets. The fund invests predominantly in companies registered in Hong Kong or China, or that carry out the majority of their business activities in these markets.

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson China Opportunities Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a return, from a combination of capital growth and income over the long term. To outperform the MSCI Zhong Hua Index by 2.5% per annum, before the deduction of charges, over any 5 year period.

The Fund invests at least 80% of its assets in a concentrated portfolio of shares (equities) and derivatives (complex financial instruments) of companies, of any size, in any industry, in China or Hong Kong. Companies will have their registered office in or do most of their business (directly or through subsidiaries) in this region. The Fund may invest up to 50% of its assets in China A Shares. The portfolio may be concentrated in terms of its number of holdings and/or the size of its largest holdings.

The Fund may also invest in other assets including companies outside this region, depositary receipts or other similar investments, Collective Investment Schemes (including those managed by Janus Henderson) and cash and money market instruments. The investment manager may use derivatives (complex financial instruments) to reduce risk or to manage the Fund more efficiently. 

The Fund is actively managed with reference to the MSCI Zhong Hua Index, which is broadly representative of the companies in which it may invest, as this forms the basis of the Fund's performance target. The investment manager has discretion to choose investments for the Fund with weightings different to the index or not in the index.

Janus Henderson European Growth Fund

Previous objective

New objective

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson European Growth Fund - the underlying fund.

Underlying Fund Objective: The fund aims to achieve long-term capital growth through investing principally in the securities of European companies.

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson European Growth Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide capital growth over the long term. To outperform the FTSE World Europe Ex UK Index, after the deduction of charges, over any 5 year period.

The Fund invests at least 80% of its assets in shares (also known as equities) of companies, in any industry, in Europe (excluding UK). Companies will be incorporated, headquartered, listed on an exchange in, or deriving significant revenue from, this region. The Fund will normally have a strong bias towards medium sized companies.

The Fund may also invest in other assets including Collective Investment Schemes (including those managed by Janus Henderson), cash and money market instruments.

The investment manager may use derivatives (complex financial instruments) to reduce risk or to manage the Fund more efficiently. 

The Fund is actively managed with reference to the FTSE World Europe Ex UK Index, which is broadly representative of the companies in which it may invest, as this forms the basis of the Fund's performance target. The investment manager has discretion to choose investments for the Fund with weightings different to the index or not in the index.

Janus Henderson European Selected Opportunities Fund

Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson European Selected Opportunities Fund - the underlying fund.

Underlying Fund Objective: The fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from European equity markets, by investing in companies registered in Europe or that carry out the majority of their business activities in these markets.

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson European Selected Opportunities Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a return, from a combination of capital growth and income over the long term (5 years or more).

The Fund invests at least 80% of its assets in shares (also known as equities) of companies, of any size, in any industry, in Europe (excluding UK). Companies will be incorporated, headquartered, listed on an exchange in, or deriving significant revenue from, this region.

The Fund may also invest in other assets including Collective Investment Schemes (including those managed by Janus Henderson), cash and money market instruments.

The investment manager may use derivatives (complex financial instruments) to reduce risk or to manage the Fund more efficiently. 

The Fund is actively managed with reference to the FTSE World Europe Ex UK Index, which is broadly representative of the companies in which it may invest, as this can provide a useful comparator for assessing the Fund's performance. The investment manager has discretion to choose investments for the Fund with weightings different to the index or not in the index.

Janus Henderson Preference and Bond Fund
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson Preference and Bond Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a return by investing primarily in sterling denominated preference shares, Government securities, corporate bonds, Eurobonds and other bonds. Where the fund invests in currencies other than sterling, the fund will always be hedged at least 80% to sterling in aggregate. The fund may invest in other transferable securities, money market instruments, derivatives and forward transactions, deposits and units in collective investment schemes.

Objective: The investment strategy of the fund is to purchase units in the Janus Henderson Preference and Bond Fund - the underlying fund.

Underlying Fund Objective:

The Fund aims to provide a return, from a combination of income and capital growth over the long term. To outperform the IA Sterling Strategic Bond sector average, after the deduction of charges, over any 5 year period.

The Fund invests at least 80% of its assets in a global portfolio of bonds of any quality, including high yield (non-investment grade) bonds, issued by governments or companies. Where investments are made in assets in currencies other than Sterling, the Fund will seek to hedge at least 80% of those assets back to Sterling to largely remove the risk of currency exchange rate movements.

The Fund may also hold other assets including bonds of other types from any issuer, preference shares, Collective Investment Schemes (including those managed by Janus Henderson), cash and money market instruments.

In certain market conditions, the Fund may invest more than 35% of its assets in government bonds issued by any one body.

The investment manager may use derivatives (complex financial instruments), including total return swaps, with the aim of making investment gains in line with the Fund's objective, to reduce risk or to manage the Fund more efficiently.

The Fund is actively managed with reference to the IA Sterling Strategic Bond sector average, which is based on a peer group of broadly similar funds, as this forms the basis of the Fund's performance target. The investment manager has complete freedom to choose individual investments for the Fund and to vary allocations between different types of bonds.

What’s changing?

We regularly review the funds we offer, and we’ve decided to close some Life funds on 13 March 2020.

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 objective.

We‘ve tried to keep fund costs and charges the same or lower on our selected replacement funds. But for Prudential Kames Ethical Equity Life funds that’s not been possible.

What 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

Full details on each of the funds can be found by clicking on the life fund series you’re invested in:

Life Series 2 fund closures,

Life Series 3 fund closures

Life Series 4 fund closures

Life Series 5 fund closures.

If you are invested via the Prudential Investment Plan (Post R Day) you’ll find more detailed information here.

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

The authorised corporate director (ACD) of the Verbatim portfolio funds has changed from Host Capital Limited (HC) to DMS Governance (DMS) and this is now reflected in fund names. So we decided to change the names and objectives of the Prudential funds.

There’s no change to the way the funds are managed and the funds Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the objective changes:

Prudential HC Verbatim Portfolio 3
Previous name New name
Prudential HC Verbatim Portfolio 3 Prudential DMS Verbatim Portfolio 3
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the HC Verbatim Portfolio 3 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based investment strategy that is broadly defensive.

Objective: The investment strategy of the fund is to purchase units in the DMS Verbatim Portfolio 3 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based investment strategy that is broadly defensive.

Prudential HC Verbatim Portfolio 4
Previous name New name
Prudential HC Verbatim Portfolio 4 Prudential DMS Verbatim Portfolio 4
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the HC Verbatim Portfolio 4 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based investment strategy that is broadly cautious.

Objective: The investment strategy of the fund is to purchase units in the DMS Verbatim Portfolio 4 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based investment strategy that is broadly cautious.

Prudential HC Verbatim Portfolio 5 Growth
Previous name New name

Prudential HC Verbatim Portfolio 5 Growth

Prudential DMS Verbatim Portfolio 5 Growth
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the HC Verbatim Portfolio 5 Growth Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to longer term by using a risk based investment strategy that is broadly cautious balanced.

Objective: The investment strategy of the fund is to purchase units in the DMS Verbatim Portfolio 5 Growth Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to longer term by using a risk based investment strategy that is broadly cautious balanced.

Prudential HC Verbatim Portfolio 5 Income
Previous name New name
Prudential HC Verbatim Portfolio 5 Income Prudential DMS Verbatim Portfolio 5 Income
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the HC Verbatim Portfolio 5 Income Fund – the underlying fund.

Underlying Fund Objective: The fund will use a broadly cautious balanced investment strategy with the aim of achieving income with some potential for capital growth over the medium to longer term.

Objective: The investment strategy of the fund is to purchase units in the DMS Verbatim Portfolio 5 Income Fund – the underlying fund.

Underlying Fund Objective: The fund will use a broadly cautious balanced investment strategy with the aim of achieving income with some potential for capital growth over the medium to longer term.

Prudential HC Verbatim Portfolio 6
Previous name New name
Prudential HC Verbatim Portfolio 6 Prudential DMS Verbatim Portfolio 6
Previous objective New objective

Objective: The investment strategy of the fund is to purchase units in the HC Verbatim Portfolio 6 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based investment strategy that is broadly balanced.

Objective: The investment strategy of the fund is to purchase units in the DMS Verbatim Portfolio 6 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based investment strategy that is broadly balanced.

Prudential HC Verbatim Portfolio 7

Previous name New name

Prudential HC Verbatim Portfolio 7

 

Previous objective

New objective

Objective: The investment strategy of the fund is to purchase units in the HC Verbatim Portfolio 7 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based growth investment strategy.

Objective: The investment strategy of the fund is to purchase units in the DMS Verbatim Portfolio 7 Fund – the underlying fund.

Underlying Fund Objective: The fund aims to achieve capital growth over the medium to long term by using a risk based growth investment strategy.

What’s changing?

We regularly review the funds we offer, and we’ve decided to close some Life funds on 6 December 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. We‘ve tried to keep fund costs and charges the same or lower on our selected replacement funds. But for some funds that’s not been possible.

What 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

Full details on each of the funds can be found by clicking on the life fund series you’re invested in:

Life Series 1 fund closures

Life Series 2 fund closures

Life Series 3 fund closures,

Life Series 4 fund closures

Life Series 5 fund closures.

If you are invested via the Prudential Investment Plan (Post R Day) you’ll find more detailed information here.

Blackrock have confirmed that they are making minor changes to the objectives of funds that our Prudential funds invest in. The changes are being made to meet regulatory requirements. So we decided to change the objectives of the Prudential funds.

There is no change to the way the funds are managed and the funds Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the objective changes:

Prudential BlackRock Gold and General Fund

Previous objective

The investment strategy of the fund is to purchase units in the BlackRock Gold & General Fund. That fund seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. The fund may also invest in other transferable securities and units in collective investment schemes. Derivatives may also be used for investment purposes and for the purposes of efficient portfolio management. It tends to be volatile and is particularly suitable for diversification in a larger portfolio.

New objective

The investment strategy of the fund is to purchase units in the Blackrock Gold and General Fund. That fund aims to provide a return (generated through an increase in the value of the assets held by the Fund) (gross of fees) over the long term (5 or more consecutive years beginning at the point of investment) through investment in shares of companies related to gold mining, commodities and precious-metals. It tends to be volatile and is particularly suitable for diversification in a larger portfolio.

Prudential BlackRock UK Fund

Previous objective

The investment strategy of the fund is to purchase units in the BlackRock UK Fund. That fund aims to achieve long-term capital growth for investors by investing primarily in the shares of larger companies incorporated or listed in the UK. The fund may also invest in collective investment schemes.

New objective

The investment strategy of the fund is to purchase units in the Blackrock UK General Fund. That fund aims to provide a return (generated through an increase in the value of the assets held by the Fund) (gross of fees) over the long term (5 or more consecutive years beginning at the point of investment) by investing in the shares of larger companies incorporated or listed in the UK.

Prudential BlackRock UK Special Situations Fund

Previous objective

The investment strategy of the fund is to purchase units in the BlackRock UK Special Situations Fund. That fund aims to achieve long-term capital growth for investors by investing primarily in the shares of companies incorporated or listed in the UK and will normally have an emphasis on small or medium sized companies. The fund may also invest in collective investment schemes.

New objective

The investment strategy of the fund is to purchase units in the Blackrock UK Special Situations Fund. That fund aims to provide a return (generated through an increase in the value of the assets held by the Fund) (gross of fees) over the long term (5 or more consecutive years beginning at the point of investment) by investing in shares of companies incorporated or listed in the UK.

What do current investors need to do?

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

Janus Henderson have confirmed that they are making minor changes to the objective of the fund that our Prudential fund invests in. The changes are being made to meet regulatory requirements. So we decided to change the objective of the Prudential fund.

There is no change to the way the fund is managed and its Prudential risk rating and fund charge remain the same.

What changed?

The table below shows the details of the objective change:

Prudential Janus Henderson European Growth Fund

Previous objective

The investment strategy of the fund is to purchase units in the Janus Henderson European Growth Fund. That fund aims to achieve long-term capital growth through investing principally in the securities of European companies.

New objective

The investment strategy of the fund is to purchase units in the Janus Henderson European Growth Fund. That fund aims To achieve long-term capital growth in excess of the FTSE World Europe (Ex UK) Index over rolling 5 year periods, after charges.

What do current investors need to do?

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

Merian have confirmed that they are making minor changes to the objective of the fund that our Prudential fund invests in. The changes are being made to meet regulatory requirements. So we decided to change the objective of the Prudential fund.

There is no change to the way the fund is managed and its Prudential risk rating and fund charge remain the same.

What changed?

The table below shows the details of the objective change:

Prudential Merian UK Mid Cap Fund

Previous objective

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.

New objective

The investment strategy of the fund is to purchase units in the Merian UK Mid Cap Fund. That fund aims to achieve capital growth. In seeking to achieve its investment objective the fund will aim to deliver a return, net of fees, greater than that of the FTSE 250 ex Investment Trust Index over rolling 3 year periods. The fund primarily invests in a portfolio of medium sized UK companies.

What do current investors need to do?

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

Schroder have confirmed that they are making minor changes to the objectives of funds that our Prudential funds invest in. The changes are being made to meet regulatory requirements. So we decided to change the objectives of the Prudential funds.

There is no change to the way the funds are managed and the funds Prudential risk rating and fund charges remain the same.

What changed?

The table below shows the details of the objective changes:

Prudential Schroder Tokyo Fund

Previous objective

The investment strategy of the fund is to purchase units in the Schroder Tokyo Fund. That fund aims to provide capital growth by investing in equity and equity related securities of Japanese companies.

New objective

The investment strategy of the fund is to purchase units in the Schroder Tokyo Fund. That fund aims to provide capital growth in excess of the Tokyo Stock Exchange 1st Section (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of Japanese companies.

Prudential Schroder Income Fund

Previous objective

The investment strategy of the fund is to purchase units in the Schroder Income Fund. That fund aims to provide income and capital growth by investing in equity and equity related securities of UK companies.

New objective

The investment strategy of the fund is to purchase units in the Schroder Income Fund. That fund aims to provide income and capital growth in excess of the FTSE All Share (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of UK companies.

Prudential Schroder UK Smaller Companies Fund

Previous objective

The investment strategy of the fund is to purchase units in the Schroder UK Smaller Companies Fund. That fund aims to provide capital growth by investing in equity and equity related securities of small-sized UK companies.

New objective

The investment strategy of the fund is to purchase units in the Schroder UK Smaller Companies Fund. That fund aims to provide capital growth in excess of the FTSE UK Series Small Cap ex Investment Trusts (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of small-sized UK companies.

Prudential Schroder US Mid Cap Fund

Previous objective

The investment strategy of the fund is to purchase units in the Schroder US Mid Cap Fund. That fund aims to provide capital growth and income by investing in equity and equity related securities of medium-sized US companies.

New objective

The investment strategy of the fund is to purchase units in the Schroder US Mid Cap Fund. That fund aims to provide capital growth and income in excess of Russell 2500 Total Return Lagged (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of medium-sized US companies.

What do current investors need to do?

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

This Prudential fund invests in a fund managed by Aberdeen Standard Investments (ASI). They decided to use a single naming convention for their funds, so have changed the name of this fund. 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 and fund objective changes:

Previous fund name

New fund name

Prudential Aberdeen Japan Equity

Prudential ASI Japanese Equity

Previous fund objective

New fund objective

The investment strategy of the fund is to purchase units in the Aberdeen Japan Equity Fund. That fund aims to achieve capital growth through investment in a diversified portfolio of Japanese securities.

The investment strategy of the fund is to purchase units in the ASI Japanese Equity Fund. That fund aims to achieve capital growth through investment in a diversified portfolio of Japanese securities.

What current investors need to do?

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

This Prudential fund invests in a fund managed by Kames Capital. They 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’s no change to how the fund’s managed.

What changed?

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

Previous fund objective

New fund objective

The investment strategy of the fund is to purchase units in the Kames Ethical Equity Fund. That fund aims to maximise total return by investment in equities and equity type securities in companies based in the UK, principally conducting business in the UK or listed on the UK stock market which meet the fund's predefined ethical criteria.

The investment strategy of the fund is to purchase units in the Kames Ethical Equity Fund. That fund aims to maximise total return by investment in equities and equity type securities in companies based in the UK, principally conducting business in the UK or listed on the UK stock market which meet the fund's predefined ethical criteria.

The underlying Kames fund will invest at least 80% in equities of companies which are listed, quoted or traded in UK markets or which have their headquarters or a significant part of their activities in the UK but which may also be quoted on a regulated market outside of the UK.

The underlying Kames Fund operates an ethical screen which means it may not invest in particular industries and sectors. ln all cases, the investments of the underlying Fund will meet its predefined ethical criteria.

What current investors need to do?

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

These Prudential funds invest in funds managed by Jupiter Asset Management. They decided to change the objectives of the funds from August 2019. So we’ll change the objectives of the Prudential funds to reflect the new objectives of the funds they invest in.

Although the fund objectives are changing, there’s no change to how the funds are managed.

What changed?

The table below shows the details of the objective changes that apply to the Prudential funds:

Previous

Prudential Jupiter European Special Situations

 

The investment strategy of the fund is to purchase units in the Jupiter European Special Situations Fund. That fund aims to achieve long-term capital growth by exploiting special situations principally in Europe. The fund's investment policy is to attain the objective by investing principally in European equities, in investments considered by the manager to be undervalued.

Revised

Prudential Jupiter European Special Situations

 

The investment strategy of the fund is to purchase units in the Jupiter European Special Situations Fund. That Fund aims to provide a return, net of fees, higher than that provided by the FTSE World Europe Ex UK lndex over the long term (at least five years),

Jupiter seek to attain the objective by investing at least 7O% of the underlying Fund in shares of companies that are incorporated, headquartered, listed, or which conduct a majority of their business activity, in Europe,

The lnvestment Manager of the underlying fund seeks to identify special situations where shares of companies are considered to be undervalued (meaning that their intrinsic value is not reflected in the share price).

Previous

Prudential Jupiter Merlin Balanced

 

The investment strategy of the fund is to purchase units in the Jupiter Merlin Balanced Fund. That portfolio aims to achieve long-term capital growth with income by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest internationally in company shares, fixed interest securities, commodities and property.

Revised

Prudential Jupiter Merlin Balanced

 

The investment strategy of the fund is to purchase units in the Jupiter Merlin Balanced Fund. That fund aims to provide a return, net of fees, that is higher than the lA Mixed lnvestment 40%-85% Shares Sector average over the long term (at least five years).

Jupiter seek to attain the objective by investing at least 7O% of the underlying Fund in collective investment schemes, such as unit trusts, OElCs, SlCAVs, exchange traded funds (ETFs) and closed or open-ended funds (which may include funds managed or operated by Jupiter or an associate of Jupiter).

The underlying fund will invest in collective investment schemes, which may have exposure to shares of companies globally, fixed interest securities, derivatives for investment purposes, commodities or Property.

Previous

Prudential Jupiter Merlin Growth

 

The investment strategy of the fund is to purchase units in the Jupiter Merlin Growth Fund. That portfolio aims to achieve long-term capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest internationally in company shares, fixed interest securities, commodities and property, with a core in the UK.

Revised

Prudential Jupiter Merlin Growth

 

The investment strategy of the fund is to purchase units in the Jupiter Merlin Growth Fund. That Fund aims to provide a return, net of fees, higher than the lA Flexible lnvestment sector average over the long term (at least five years).

Jupiter seek to attain the objective by investing at least 7O% of the underlying Fund in collective investment schemes, such as unit trusts, OEICs, SlCAVs, exchange traded funds (ETÉs) and closed or open-ended funds (which may include funds managed or operated by Jupiter or an associate of Jupiter).

The underlying fund will invest in collective investment schemes, which will have exposure to shares of companies globally, fixed interest securities, derivatives for investment purposes, commodities or Property.

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.

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