10 reasons advisers choose PruFund

2. Predictable performance

Each PruFund’s performance and daily price is linked to its Expected Growth Rate (EGR). The EGRs reflect our view of how the underlying assets are expected to perform over the long term.

If the actual short-term performance of the fund’s assets diverges significantly from the EGR, a Unit Price Adjustment (UPA) may be triggered using a non-discretionary formula. We proactively communicate to advisers when a UPA is being applied.

The smoothed EGR-driven investment performance can help advisers explain potential client outcomes with clarity and confidence. And, for clients who feel nervous about investing, our approach can help provide greater confidence to invest in an uncertain world with a wide range of possible outcomes.

While the smoothing mechanism aims to reduce volatility, meaning investors do not experience the full extent of market declines, it also means investors may not immediately benefit from the full upside of short-term market rallies.

How does smoothing work? Source: Prudential. Hypothetical example purely for illustrative purposes only. Any plan charges or adviser charges are ignored for the purposes of this illustration. For a more detailed explanation of the smoothing process, please see the PruFund Smoothing Guide 

3. Structure that supports confident decisions

PruFund is considered a distinctive option within the UK retail wealth landscape, with its unique structure forming an important part of its appeal.

PruFund can lever M&G’s dual company structure. Bringing together the asset management expertise of M&G Investments and the insurance capabilities of Prudential Assurance Company enables the development of more customer-focused investment solutions.

As part of the £130 billion Prudential With-Profits Fund, PruFund benefits from a life fund structure that permits investment in a wider range of assets compared to UCITS funds, including high-quality private market assets such as Real Estate and Infrastructure. These types of assets are often hard to access by retail customers and provide further diversification and resilience amidst volatile market conditions.

M&G’s well-capitalised balance sheet with surplus capital over policyholder obligations enables a patient, forward-looking approach to strategic asset allocation supporting large and long-term commitments to private markets.

For advisers, this broadens the opportunities for clients’ investment portfolios and provides potentially greater ability to guide clients through uncertainty with clarity and composure.

4. Scale that unlocks opportunity

PruFund’s scale is about more than just size, it’s about our ability access to otherwise hard to access investments.

The £68 billion PruFund range sits within the wider £130 billion Prudential With-Profits Fund and it is this Scale which widens PruFund’s investable universe enabling it to directly invest in institutional-grade private markets such as infrastructure, real estate, private equity and private credit. For example, rather than investing in compromised real estate solutions such as REITs which have high correlation to equity markets, PruFund can invest directly in flagship opportunities such as the £1bn 40 Leadenhall building in London. It also means we can take advantage of new opportunities such as music royalties, which can offer a real income stream that is less affected by the economic cycle.

PruFund  is a convenient way of giving clients meaningful exposure to these hard-to-access private markets whist maintaining their liquidity. For example, PruFund Growth currently holds approximately 26% in private market assets.

Our Scale also enables close working relationships with underlying investment managers, supporting both initial due diligence and ongoing oversight. Because investment managers want to work with us, PruFund partners with over 20 best-in-class asset managers with on the ground expertise across the globe.

We lever our Scale and manager partnerships when setting the asset allocation for the funds. We create bespoke underlying building blocks giving greater control and flexibility over how we invest. Smaller, more constrained investment funds do not have these opportunities.

5. Strong performance track record

Our original PruFund Growth Life Fund has experienced 1,093 positive weeks and 7 negative weeks since its launch in 2004. Please remember that past performance is not a guide to future returns.

This consistency gives advisers the confidence to provide their clients with a smoother investment experience, and one that can provide composure and confidence through market cycles.

But consistency isn’t just a metric. It can work as a behavioural anchor that can help clients stay invested – and avoid selling to cash – when markets fall back and emotions run high.

Even the best investment will fall short if clients do not stay the course. PruFund can support advisers help their clients reach their long-term goals by staying invested.

Strong performance track record demonstrated over 21 years. Source: FE Analytics, data from 25.11.04 to 25.11.25. Past performance isn't a guide to future performance. The value of your client’s investment can go down as well as up so they may not get back the amount they put in.PruFund Growth Life Fund figures are intended only to demonstrate performance history over the period shown. Includes representative fund charge of 0.65% p.a and any further costs. They take no account of product or advice charges.

6. Helps mitigate sequencing risk

For clients drawing income, timing matters. PruFund’s predictable returns through its market-leading diversification and established smoothing mechanism aims to reduce exposure to short-term market volatility – a key factor in managing sequencing risk.

By offering a more stable return profile, PruFund can support a sustainable drawdown strategy and help clients act with greater confidence.

It may also help clients to move from hesitation to action, especially when they’re unsure when or how to start spending.

7. Diversification that goes further

PruFund’s diversification is built in layers. This is enabled by the scale of the £130 billion Prudential With-Profits Fund and the structural flexibility of its life fund structure to invest in a wider range of assets.

Layer 1: Beyond traditional asset classes
PruFund goes beyond public equities and fixed income, with meaningful exposure to private markets such as infrastructure, real estate, private equity and private credit. This opens opportunities not typically available to retail multi-asset funds.

Layer 2: Across asset classes and regions
PruFund’s forward-looking approach to asset allocation supports strong regional diversification. PruFund doesn’t use a backward-looking market-cap weighted approach to asset allocation as we position our portfolios for the future. Region-specific building blocks allow for greater adaptability and flexibility, helping advisers respond to changing market conditions and client needs.

Layer 3: Within asset classes
Within asset classes, PruFund will often invest using multiple styles, strategies and managers adding another layer of targeted diversification.

Taking US equities as an example, we don’t just follow one investment approach. We combine small-cap exposure with active large-cap managers and as well as a fundamentally weighted exposure, weighting companies by their scores in factors such as book values or dividends. This helps reduce the concentration risk typically seen in a market-cap weighted index such as the S&P 500.

PruFund allows you to offer your clients exposure to higher-risk assets without unduly exposing them to an overly dominant source of risk and return. And, for clients, it is an approach that can provide them with greater resilience across market cycles, while still offering attractive long-term returns.

8. Investment expertise backed by governance and oversight

PruFund is managed by M&G’s Life Investment Office (LIO), a well-resourced team of over 75 investment professionals. The LIO brings together specialist knowledge, robust governance and deep investment expertise, overseeing the funds’ strategic direction and day-to-day management.

This includes levering the capabilities of more than 20 underlying managers across 40 sub-asset classes. PruFund draws on external managers for their strong track records, adding further depth and flexibility to portfolio construction.

Advisers and their clients can benefit from this layered oversight and access to specialist expertise, helping ensure portfolios are actively managed, well-informed, thoughtfully constructed and built to support long-term outcomes.

9. A range that can work for every client

PruFund offers a suite of funds each with clearly defined targets for growth and volatility.

This can help advisers align solutions with clients’ individual goals and risk profiles. Please remember that the level of risk and potential reward varies by fund.

10. Supports purpose-driven planning

PruFund is part of a wider investment approach shaped by M&G’s commitment to responsible stewardship and long-term sustainability.

As an active investor across public and private markets, M&G integrates environmental, social and governance (ESG) factors into its investment process, recognising their material impact on long-term outcomes.

This includes investing in local infrastructure, real estate and private market opportunities that seek to deliver financial returns while considering environmental, social and governance factors.

This approach is embedded in all our investment solutions including PruFund. For investors who want to go further, our PruFund Planet funds seek to make a greater impact on climate change and society.

Through our ESG framework, M&G supports strategies that can align with clients’ values and long-term goals, from climate resilience to inclusive growth.

For advisers, this means being able to offer clients’ portfolios that reflect not just financial ambition, but a sense of investing with purpose, reinforcing trust and deepening engagement.

Why advisers choose PruFund

PruFund is valued not only for its investment depth, but for how it can support meaningful client conversations, structured planning and long-term confidence.

"PruFund is like a super tanker navigating through volatile waters - steady, reliable, and built to endure. It's not about chasing the highest returns but providing a solid foundation for growth backed by a strong financial institution."  Jonathan L, Financial Adviser, Greater Cheshire West and Chester

It’s a solution that has stood the test of time, helping clients stay composed through market shifts so that they can invest and use their wealth with purpose.

Through a combination of Scale, Structure and Smoothing, PruFund aims to set the standard for multi-asset investing, remaining a trusted part of the adviser toolkit, designed to help deliver consistency in a changing market environment.

To explore how you can support your clients' financial planning goals with PruFund, request a call back.