Prudential With-Profits Fund

The Prudential With-Profits Fund is designed to spread investment risk by investing in a range of different assets. In addition, through the bonus process, we'll continue to smooth some of the ups and downs of short-term investment performance.

Smoothing

Guarantees included

Financial strength

Fund details

Next steps

The Prudential With-Profits Fund

M&G Treasury & 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.

Fund availability

Product	Available
Flexible Retirement Plan#	✓
Trustee Investment Plan	✓
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.
Prudential Investment Plan	With-Profits Fund not available to new business from 11 September 2017

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.

# 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.

*Different currency options: Sterling, Euro or US Dollar.

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.

You can find out more about smoothing, how we manage the fund and apply any bonuses in Your With-Profits Plan – a guide to how we manage the Fund (PDF).

Diversification

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.

Independent view

The Prudential Assurance Company Limited With-Profits Fund, as at December 2024, has a 5/5 rating for financial strength from AKG Financial Analytics Ltd, who are specialists in providing independent With-Profits ratings. This is the highest rating that AKG. Source: AKG With-Profits Report (PDF).

The Prudential Assurance Company Limited is rated A+ for financial strength by Standard & Poor’s, as at February 2025. This is one of the highest ratings currently given to any UK Life Assurance Company.

Useful documents

"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 Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. 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.