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Prudential With-Profits Fund, performs well despite the backdrop of Covid-19 uncertainty.

In what was a mostly positive year for global investment markets, despite the backdrop of Covid-19 uncertainty, the Prudential With-Profits Fund returned a positive return of 12.0% in the 12 months to the end of 2021 before taxes and charges. Over the 10 years to the end of 2021, returns on the same basis were 113.3%.

2021 was a positive year for many types of assets. Some of the reasons were:

  • The rollout of Covid-19 Vaccines and booster programmes allowing many economies to re-open and releasing a surge of demand
  • Continued supportive monetary and fiscal policy from governments and central banks which helped investor confidence
  • Record levels of Merger and Acquisition activity as business sought to make up for lower levels on 2020.

Our With-Profits Fund invests in a globally diversified portfolio of assets so captured positive returns from a wide range of underlying investments. These returns have positively impacted both the Fund's short term returns but also improved the already strong longer term record relative to its peers.

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

Our With-Profits Fund invests in a globally diversified portfolio of assets so captured positive returns from a wide range of underlying investments. The investment teams will 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 planholders.

Asset %
UK Equities (listed) 18.8
Overseas Equities (listed) 29.4
Property 13.9
Alternative Assets 10.3
Corporate Bonds 22.5
Cash & Receivables 5.1
Total 100

as at 31 December 2021

Jack Daniels, Chief Investment Officer, M&G plc, said: “2021 was a very good year for the Prudential With-Profits Fund. The global diversification of the Fund again proved to be beneficial. All the main regional equity portfolios produced positive returns and it was a particularly strong year for real assets including real estate and alternative investments. This helped offset lower returns from fixed income in what was a challenging environment for the asset class. Our prudent, long-term investment approach continues to provide positive returns to planholders whilst protecting them from short-term volatility, such as we witnessed in 2020.

Our approach to setting bonuses allows us to continue to manage the Fund to secure the highest total return while maintaining an acceptable level of risk.

The Prudential With-Profits Fund is one of the largest and financially strongest in the UK. This allows us to be long-term investors in a very wide range of assets and individual companies. We will continue to monitor markets and seek new investment opportunities to further enhance the global diversification of the Fund.”

More information on the 2022 With-Profits Bonus Declaration is available here