Prudential International Investment Fund updates

With ongoing regular reviews our funds are often subject to changes. Below you will find details of recent changes to Prudential International funds.

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 financial adviser if you require any more information.

Investment Option Documents

For more information about our available fund range, please read our client fund guides:

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%. The fund managers 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 the fund will be managed. The fund managers will continue their 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 they’ll continue to smooth some of the extreme highs and lows of investment performance through the PruFund smoothing mechanism. In particular, the update to the investment aims does not impact the fund’s Expected Growth Rate. You can find out more about this in ‘Your guide to investing in the PruFund Range of Funds’, reference IPBB10046.

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.

Investment aims of the PruFund Cautious Range of Funds

Current investment aim

Investment aim from 29 July 2019

PruFund Cautious and PruFund Protected  Cautious (Sterling) Funds

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.

PruFund Cautious and PruFund Protected Cautious (Euro) Funds

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

PruFund Cautious and PruFund Protected Cautious (US Dollar) Funds

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

Risk indicator
Current risk indicators for the product 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.

What changed?

The table below shows the details of the name and objective changes that applied to the PIA fund. There has also been a change to the fund manager.

Previous fund name New fund name
PIA M&G Asian Fund PIA Pacific Markets GBP Fund
Previous fund objective New fund objective
The investment strategy of the fund is to purchase units in the M&G Asian Fund. That 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 MSCI AC Asia Pacific ex Japan Index over any five-year period. The investment strategy of the fund is to purchase units in the LF Prudential Pacific Markets Trust. That trust aims to produce capital growth through investment of at least 80% of the property of the Scheme in eastern markets, excluding Japan.


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 changed?

The table below shows the details of the charge changes that applied to the PIA fund.

Previous Fund Charges and Further Costs New Fund Charges and Further Costs
Annual Management Charge 1.35% Annual Management Charge 1.35%
Further Costs 0.08% Further Costs 0.13%
Yearly Total 1.43% Yearly Total 1.48%


What current investors need to do?

As you are invested in the PIA M&G Asian Fund, you now have the following options in relation to your investment in this fund:

Option 1 - Do Nothing

The Annual Management Charge will not change. However as a consequence of the change there will be a slight increase to the overall cost of the fund as detailed in the Fund Charges and Further Costs section above. For more information please contact your financial adviser.

Option 2 - Switch into any of the available funds at no cost

In line with your Contract Conditions you are permitted to switch your holdings at any time. You have the option of switching your holding in the PIA M&G Asian Fund into another fund prior to the effective date without incurring a switch charge and this switch will not count towards your annual free allowance. We suggest you consult your financial adviser before making any decision.

What’s changing?

We're changing the investment objective and name of the funds in this range. We are 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 International Investment Bond or International Prudence Bond detailed information on the changes can be viewed here.

What’s changing?

We’re changing the investment objective and name of the funds in this range. We are 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 International Investment Bond or International Prudence Bond detailed information on the changes can be viewed here.

This Prudential International (PIA) fund invests in a fund managed by Invesco Perpetual. They changed name to Invesco in October 2018. As a result they changed the names of their funds.

As a result PIA has changed the name and objective of our fund to align it with the name and objective of the underlying fund.

The PIA risk rating and fund charges remain unchanged.

What changed?

The table below shows the details of the name and objective changes that applied to the PIA fund

Previous fund names

New fund names

PIA Invesco Perpetual Income Fund

PIA Invesco Income Fund

Previous fund objective

New fund objective

The investment strategy of the fund is to purchase units in the Invesco Perpetual Income Fund. That fund aims to achieve a reasonable level of income, together with capital growth.

The investment strategy of the fund is to purchase units in the Invesco Income Fund (UK). That fund aims to achieve a reasonable level of income, together with capital growth.

What current investors need to do?

You don't need to do anything. You may still see the current fund objective until we've finished updating our systems and literature

This Prudential International (PIA) fund invests in a fund managed by Invesco Perpetual. They changed name to Invesco in October 2018. As a result they changed the names of their funds.

As a result PIA has changed the name and objective of our fund to align it with the name and objective of the underlying fund.

The PIA risk rating and fund charges remain unchanged.

What changed?

The table below shows the details of the name and objective changes that applied to the PIA fund.

Previous fund names

New fund names

PIA Invesco Perpetual Managed Growth Fund

PIA Invesco Managed Growth Fund

Previous fund objective

New fund objective

The investment strategy of the fund is to purchase units in the Invesco Perpetual Managed Growth Fund. That fund aims to achieve capital growth from a portfolio primarily of Qualifying Funds.

The investment strategy of the fund is to purchase units in the Invesco Managed Growth Fund (UK). That fund aims to achieve capital growth from a portfolio primarily of Qualifying Funds.

What current investors need to do?

You don't need to do anything. You may still see the current fund objective until we've finished updating our systems and literature.

Prudential International regularly reviews its funds to ensure that the objective of the fund appropriately reflects the investment intention of the portfolio manager, accordingly Prudential International has updated the fund objective of the M&G Episode Growth Fund. 

The Prudential International risk rating and fund charges remain unchanged.

What Changed?

The table below shows the details of the previous and new objectives.

Previous objective

New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Growth Fund. That fund invests globally across a range of asset classes with the aim of maximising total return (the combination of income and growth of capital).
Fund Investments: Exposure to these assets is gained through physical holdings and the use of derivatives. In-depth analysis to determine the value of assets over the medium to long term is central to the investment approach. This is combined with insight into investor behaviour, which suggests that human reaction to events tends to cause an asset to become under- or overpriced in the short term, thus creating investment opportunities. The fund will invest a minimum of 50% in collective investment schemes.

 

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Growth Fund. That 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 two thirds global equities and one third global bonds, over any five-year period.

Fund Investments: It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 25% of the fund exposed to sterling and a minimum of 50% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging. 

 

What current investors need to do?

You don't need to do anything. You may still see the current fund objective until we’ve finished updating our systems and literature.

Prudential International regularly reviews its funds to ensure that the objective of the fund appropriately reflects the investment intention of the portfolio manager, accordingly Prudential International has updated the fund objective of the M&G Episode Allocation Fund.

The Prudential International risk rating and fund charges remain unchanged.

What Changed?

The table below shows the details of the previous and new objectives.

Previous objective

New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Allocation Fund. That fund invests globally across a range of asset classes with the aim of maximising total return (the combination of income and growth of capital).
Fund Investments: Exposure to these assets is gained through physical holdings and the use of derivatives. Flexible capital allocation is guided by in-depth research to determine the medium- to long-term value of assets. This is combined with analysis of investors’ emotional reaction to events, which can give rise to investment opportunities. The fund will invest no more than 60% of the portfolio in equities.

Objective: The investment strategy of the fund is to purchase units in the M&G Episode Allocation Fund. That fund aims to deliver a total return (the combination of capital growth and income) of at least 5% per annum above the 3-month GBP LIBOR rate, before any charges are taken, over any five year period. There is no guarantee that the Fund will achieve a positive return over five years, or any other period, and investors may not get back the original amount they invested.

Fund Investments: It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 30% of the fund exposed to sterling and a minimum of 60% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

What current investors need to do?

You don't need to do anything. You may still see the current fund objective until we’ve finished updating our systems and literature.

Prudential International regularly reviews its funds to ensure that the objective of the fund appropriately reflects the investment intention of the portfolio manager and ensure that the fund benchmark remains an appropriate point of reference in future, accordingly Prudential International has updated the fund objective and fund benchmark of the M&G Managed Growth Fund.

The Prudential International risk rating and fund charges remain unchanged.

What Changed?

The table below shows the details of the previous and new objectives and benchmark.

Previous objective

New objective

Objective: The investment strategy of the fund is to purchase units in the M&G Managed Growth Fund. That fund aims to deliver capital growth over the long term (that is, over five years or more) by investing primarily in M&G’s funds, but also in appropriate collectives where M&G does not have the expertise.
Fund Investments: Up to 20% of its portfolio can also be directly invested in company shares, fixed income assets, warrants, money market instruments, deposits, cash, near cash and derivatives for the purposes of efficient portfolio management. The fund may also gain exposure to assets directly through derivatives. The fund manager will use his judgement to decide on individual fund and stock weightings. The fund is well diversified across capitalisation tiers and international areas.

Objective: The investment strategy of the fund is to purchase units in the M&G Managed Growth Fund. That 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.

Fund Investments: It 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.

Previous benchmark

New benchmark

FTSE World Index

Composite

(85% from a global equity index; this is the mid-point between 70% (the fund’s minimum exposure to equities as set out in the proposed investment policy), and 100% (the fund being fully invested in equities) and 15% from a global bond index; this is the remainder of the composite index and, over the long term, is broadly representative of the fund’s remaining asset’s exposure.)

What current investors need to do?

You don't need to do anything. You may still see the current fund objective until we’ve finished updating our systems and literature.

Prudential International (PIA) closed the PIA Barings Hong Kong China (US Dollar) Fund to all new business, top ups and switches on 6 July 2018.

Why we closed the fund

We regularly review the funds we offer to help clients get the best from their investment. From time to time, we have to take the difficult decision to close a fund if we lack conviction in the ability of that fund to provide a good and consistent customer outcome. As such, we decided to close the PIA Barings Hong Kong China (US Dollar) Fund.

We wrote to investors in the fund to tell them about the closure and their options.

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