Broadly positive but uncertain and volatile market conditions, combined with the With-Profits Fund’s ability to invest across regions and in both public and private markets, helped support strong performance

In 2025 changing interest rate expectations and geopolitical and trade uncertainty were dominant themes. Despite this, global markets delivered solid gains demonstrating resilience in a challenging environment. Our With-Profits customers have benefitted from investing in a large, multi-asset, globally diversified fund during this period, with our fund managers seeking out opportunities across a wide range of different asset types. A positive return of 11.6% (gross of tax) was achieved before charges and the effects of smoothing.

2025 was a year of positive market performance despite a persistently volatile backdrop. Some key themes were: 

• Changing interest rate expectations, as central banks balanced inflation and growth. 
• Global political tensions, including Middle East and European conflicts and ongoing trade uncertainty following the US ‘liberation day’ tariff announcement in April.
• Strong equity performance in many markets, particularly European and Asian equities. The AI-driven boom continued to propel technology stocks, while bond markets delivered modest, uneven returns with riskier-high yield corporate bonds and emerging market debt generally outperforming safer counterparts.

Our With-Profits Fund invests in a wide range of globally diversified assets so was able to capture positive returns in some places and avoid difficulty in others. The Fund’s performance has added to its already strong longer-term record, relative to its peers.   

We’ll continue to source and invest in assets that build diversification and help meet the objective of securing the highest total return for the Fund (after any tax and investment expenses) while maintaining an acceptable level of risk and protecting our customers. We’ll also continue to consider our Environmental, Social and Governance aims as they apply to the Fund.

The value of any investment can go down as well as up so your customer might not get back the amount they put in. Past performance is not a reliable indicator of future performance.

What the Fund is invested in

As at 31 December 2025 and 2024, the main asset pool within the Prudential Assurance Company Limited With-Profits Fund, which is relevant to the vast majority of our customers, had the following asset allocations:

Source: Prudential

Clive Bolton, Chief Executive Officer, M&G Life, said: “The Prudential With-Profits Fund delivered strong returns in 2025, despite periods of market volatility driven by geopolitical events, global conflict, and ongoing uncertainty around interest rates and tariffs. Public equities were the main contributor to performance, supported by the strength of our global diversification, which continued to play an important role in delivering returns.

As the largest With Profits Fund in the UK, we’re proud to offer customers access to a broad mix of global public and private assets. This diversification across regions and asset classes helps smooth short term market fluctuations, supports resilient outcomes across a wide range of market environments, and helps us navigate uncertainty.”

Read more information on the 2026 With-Profits Bonus Declaration.