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What is the Prudential ISA?

The Prudential ISA is a Stocks and Shares ISA designed to help you grow your money in a tax-efficient way. Unlike a Cash ISA or a standard savings account, where returns are typically fixed, the Prudential ISA gives your money the potential to grow faster by investing in a wide range of options.

It’s provided by Waystone Financial Investments Limited (WFI), who also act as the ISA plan manager. If you open a Prudential ISA, your contract will be with WFI, and all servicing and communication will come directly from them.

Existing Pru customer?

Find everything you need to know about your product, all in one place.

Product details

Product features

Why choose the Prudential ISA?
  • Tax efficiency
    Any growth is free from Income Tax and Capital Gains Tax, and withdrawals are tax-free.

  • Access to your money
    Take regular or one-off withdrawals whenever you need.

  • Flexible payments
    Invest from £50 a month per fund, or make an initial lump sums of from £500 per fund, with additional lump sums of £250 per fund.

  • Wide range of investment options
    Choose from the WS Prudential Risk Managed Active and Passive fund ranges to match your goals and risk appetite.

  • Access to the PruFund range
    Invest in the UK’s largest with-profits fund through our PruFund range.

  • PruFund smoothing process
    Designed to help reduce the impact of short-term market volatility.

  • Transfer flexibility
    Move your existing Cash ISA or Stocks and Shares ISA to the Prudential ISA free of charge (check with your current provider for any exit fees). You can also transfer your Prudential ISA to another provider at any time without charge.
There are two elements to the Prudential ISA, and you can invest in one or both.
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Life Insurance Policy

Gives you access to the PruFund range of funds.

WS Prudential Risk Managed funds

Gives you access to WS Prudential Risk Managed Active and Passive range of funds.

Is the Prudential ISA right for you?

The Prudential ISA might be suitable if you:

  • are aged 18 or over and UK resident for tax purposes (or a Crown employee, their spouse or registered civil partner)

  • want to build a tax-efficient savings pot within your ISA allowance

  • are looking to transfer existing ISA funds

  • plan to invest for the medium to long-term (5 to 10 years or more)

  • want potential investment returns in excess of those available from cash

  • want to invest in PruFund funds for smoothed returns, understanding that while this reduces short-term market volatility, it also limits full upside gains

  • want to invest in a range of actively or passively managed Open Ended Investment Company (OEIC) funds

  • can manage your ISA digitally, including registering online, accessing documents electronically and providing an email address for important notifications.

Things to consider when choosing the Prudential ISA

  • A Prudential ISA can only be set up through a financial adviser.
  • The value of your investments can go down as well as up, so you might get back less than you put in.
  • If you take more money out than the amount your investments have grown by, the value of your investment will be less than you put in.
  • If the total charges and costs are more than any overall growth achieved, your Prudential ISA will fall in value, possibly to even less than you invested.
  • Each fund available in the Prudential ISA has its own level of risk and potential growth. Please see the relevant information for the funds available.
  • Although ISAs currently enjoy favourable tax treatment, it’s possible this could change in the future.
  • You won't have access to a Cash Account or a Cash type investment, so money will remain invested whilst it's held in your Prudential ISA.
  • When transferring other ISAs to your Prudential ISA, during the time it takes to transfer, your money won’t be invested. This means you may miss out on any increase in its value, but you won’t lose if it decreases.
  • If your transfer to other ISA managers, there could be a delay but this won’t exceed any maximum term imposed by regulations.
  • It’s important to review your investments regularly to make the most of your plan.

Investment options

Choose from 17 funds across two ranges:
PruFund range
  • PruFund Risk Managed 1 to 5
  • PruFund Growth
  • PruFund Cautious
Why PruFund?

The PruFund range combines diversification, by investing across a wide mix of assets with a smoothing mechanism designed to reduce short-term market volatility. It offers the following benefits:
 

  • Designed for different risk and return profiles.
  • Aims to smooth out market highs and lows.
  • Access to a wide range of investments, including those not typically available to individual investors.
  • Diversification to offset poor performance in one asset with good performance in another.
  • Economies of scale to keep costs lower.
  • Actively managed by experts at M&G Life Investment Office (LIO), previously known as Treasury & Investment Office (T&IO).
WS Prudential Risk Managed Range
  • Risk Managed Passive 1 to 5
  • Risk Managed Active 1 to 5
Why WS Prudential Risk Managed funds?

These multi-asset funds, managed by Waystone Management (UK) Limited (WMUK), are designed to have full market exposure, while keeping risk at an agreed level, measured by volatility. These are split into passive and active ranges:
 

  • Risk managed passive funds: Aim to replicate the performance of a market index (e.g. FTSE 100). They don’t require active decision-making from a Fund Manager or investment team, making them a cost-effective way to invest.
  • Risk managed active funds: Thes funds are overseen by a fund manager or investment team to select the investments held within the fund. They carefully select investments using their expertise and knowledge with the aim of providing enhanced investment returns.

Risk levels increase from 1 (low) to 5 (high).

Each of these funds offer different stocks and shares, geographies, sectors and management styles, each with its own risk rating. Your financial adviser will explain the fund options in detail and help you decide what’s right for you.

The value of your investment can go down as well as up so you might not get back the amount you put in.

It’s important that you regularly review your investments so that you get the best out of your plan.

Need expert financial advice?

If you don't already have an adviser, it takes just three minutes to book a no-obligation, initial chat with M&G Advice. It’s a great way to explore how we could help.

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