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The PruFund Range of Funds

Available through the Prudential Investment Plan Mk 3, our PruFund range of funds aim to grow your client's money while giving them a smoothed investment experience.

  • Smoothing mechanism
  • Multi-asset funds
  • A choice of funds available

Fund details

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The PruFund range of funds

The PruFund range of funds are available on our PruFund Investment Plan Mk 3 and aim to grow your client's money over the medium to long term (5 to 10 years or more), while protecting them from some of the short-term ups and downs of direct stockmarket investments by using an established smoothing mechanism.

PruFund funds are invested in the Prudential With-Profits Fund, which is one of the largest with-profits funds in the UK. There are differences across the range of PruFund funds in their objectives and mix of assets, and how PruFund delivers returns to investors when compared to other With-Profits business, which means the returns received by investors will vary by fund choice.

Please remember that the value of your client's investments can go down as well as up, they may not get back what they have paid in.

PruFund funds are multi-asset funds which provide access to a wide range of assets, across different asset types and countries. This diversification allows your client to spread the risk of investment.

Please download the Your With-Profits Plan – a guide to how we manage the fund (PruFund range of funds) guide for more information.

Smoothing

Our established smoothing mechanism uses Expected Growth Rates, and where required, Unit Price Adjustments, to deliver a smoothed investment journey.

See our A Step by Step guide to the PruFund smoothing process (PDF) for more information.

Who manages the PruFund range of funds?

M&G Treasury & Investment Office (T&IO), monitor and manage the M&G plc Group fund managers responsible for the majority of underlying funds that these Multi-Asset funds invest in.

Diversification

T&IO works closely with Prudential to set the overarching strategic asset allocation framework for the multi-asset fund range and for managing the asset allocation on an ongoing basis.

Fund options

There is a range of PruFund funds designed to suit different attitudes to risk and reward, for those wishing to invest for 5 to 10 years or more. There are the five Risk Managed PruFund funds and also the PruFund Growth and Cautious Funds, the latter two may include some guarantee options (at an additional charge).

PruFund Cautious Fund

The PruFund Cautious Fund aims for steady and consistent growth through a cautious approach to investing. The fund currently invests around 60% in a well-diversified portfolio of fixed-interest securities and holdings of cash and money market instruments with the balance invested in UK and international shares, property and alternative assets.

PruFund Growth Fund

The PruFund Growth Fund aims to maximise growth over the medium to long term (5 to 10 years or more) 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.

Risk Managed PruFund funds

The Risk Managed PruFund funds aim to achieve long-term total return (the combination of income and growth of capital). The funds are actively managed and aim to limit the fluctuations ('volatility') an investment experiences, after allowing for smoothing, to % limits over the medium to long term.

There is no guarantee that a fund will achieve its objective of managing the volatility ceiling to the target level.

Fund Name

Target Volatility Level

PruFund Risk Managed 1 

9% 

PruFund Risk Managed 2

10%

PruFund Risk Managed 3

12%

PruFund Risk Managed 4

14.5%

PruFund Risk Managed 5

17%

Key Documents

Optional guarantees


The PruFund Cautious Fund and PruFund Growth Fund may offer optional guarantees, at an extra cost.

 

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.