About the Prudential With-Profits Fund
M&G Life Investment Office is our in-house asset-allocation expert for the Prudential With-Profits Fund. The fund is designed to spread investment risk by investing in a range of different assets.
Our With-Profits Fund managers aim to secure the highest total return for the fund over the long-term (after any tax and investment expenses) while maintaining an acceptable level of risk and protecting our planholders.
Our bonus process aims to give each planholder a return which reflects the earnings on the underlying investments over the period of their investment, whilst smoothing some of the highs and lows of short-term investment performance. We can change the rate of the regular bonus at any time.
Please remember that the value of any investment can go down as well as up so your customer might not get back the amount they put in.
Diversification
- With-Profits
- International Bonds
With-Profits
The fund aims to maximise growth over the medium to long term by investing in shares, property, fixed interest and other investments. The fund currently invests in UK and international equities, property, fixed interest securities, index-linked securities and other specialist investments.
The international With-Profits Funds are backed by assets in the With-Profits Fund of the Prudential Assurance Company Ltd through a reinsurance agreement.
International Bonds
The international With-Profits Funds are backed by assets in the With-Profits Fund of the Prudential Assurance Company Ltd through a reinsurance agreement. Sterling, Euro and Dollar options are available for Prudential International investors.
Fund availability
This is not a comprehensive list of the availability of these Funds. Please refer to the appropriate Fund Guide or product information pages for more information.
Products
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Flexible Retirement Plan
The Flexible Retirement Plan (FRP) closed to new business on 17 September 2018 but if your customer is an existing FRP customer they can still make changes to their plan.
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Trustee Investement Plan
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Prudential International Investment Bond*
With-Profits Fund closed to new business since 11 September 2017. Top-ups and switches available to customers with bonds which started pre 11 September 2017.
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Prudential Investement Plan
With-Profits Fund not available to new business from 11 September 2017
The funds available to your clients are:
- With-Profits*
- With-Profits (Optimum Bonus)
*With Sterling, Euro and US Dollar options for Prudential International investors.
Smoothing
The With-Profits Fund aims to smooth some of the highs and lows of investment performance, in order to provide a more stable return. We achieve this by using our bonus process, which holds back some of the investment returns in good years with the aim of using this to support bonus rates in the years where the investment returns are lower. Smoothing offers some protection against bad market conditions, however it does not fully remove all the exposure to extreme movements in financial markets, or sustained periods of low investment returns.
Independent view
This is not a comprehensive list of the availability of these funds. Please refer to the appropriate Fund Guide or product infomration pages for more information.
