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Unit Price Adjustments applied on the PruFund range of funds
We’ve confirmed that we have applied Unit Price Adjustments (UPAs) to some of our PruFund funds due to difficult market conditions impacting their underlying performance.
Why have these PruFund funds had a UPA movement?
On the 25th May 2022 we applied a Unit Price Adjustment (UPA) for all PruFund funds where the Unsmoothed Price (reflecting the value of the underlying assets) was lower than the Smoothed Price (your clients Unit Price) at that time.
What is a Unit Price Adjustment?
The Unit Price Adjustment is an adjustment that is applied if the unit price moves outside smoothing limits. Each PruFund funds smoothing limits are available from: https://www.pruadviser.co.uk/pdf/WPGB0031.pdf
What does this mean for me?
If your clients are invested in any of the funds listed in the table below, their Smoothed Price has been decreased by the amount shown, which will decrease the value of your clients PruFund investment.
Following this adjustment the Smoothed Price continues to grow in line with the Expected Growth Rate (EGR) as normal. If your clients fund isn’t listed in the table below then there’s been no change to their Unit Price.
UPAs have been applied to the PruFund funds below. Please note, the UPAs also apply to the protected version of the funds, where applicable.
Prudential Investment Plan
PruFund |
UPA |
Date UPA applied |
|---|---|---|
PruFund Cautious Fund |
-2.35% |
25th May 2022 |
Trustee Investment Plan / Flexible Retirement Plan
PruFund |
UPA |
Date UPA applied |
|---|---|---|
PruFund Risk Managed 1 Pension Fund |
-2.41% |
25th May 2022 |
PruFund Risk Managed 2 Pension Fund |
-2.10% |
25th May 2022 |
Prudential ISA
PruFund |
UPA |
Date UPA applied |
|---|---|---|
PruFund Risk Managed 1 ISA Fund |
-2.41% |
25th May 2022 |
PruFund Risk Managed 2 ISA Fund |
-2.10% |
25th May 2022 |
Retirement Account Series D
PruFund |
UPA |
Date UPA applied |
|---|---|---|
PruFund Risk Managed 1 Pension Fund - Series D |
-2.41% |
25th May 2022 |
PruFund Risk Managed 2 Pension Fund - Series D |
-2.10% |
25th May 2022 |
Retirement Account Series E
PruFund |
UPA |
Date UPA applied |
|---|---|---|
PruFund Planet 2 Pension Fund - Series E |
-2.72% |
25th May 2022 |
Prudential International Investment Bond / International Prudence Bond
PruFund |
UPA |
Date UPA applied |
|---|---|---|
PruFund Cautious (Euro) Fund |
-3.46% |
25th May 2022 |
PruFund Growth (Euro) Fund |
-3.06% |
25th May 2022 |
International Portfolio Bond Series C
PruFund |
UPA |
Date UPA applied |
|---|---|---|
PruFund Planet 2 Fund |
-2.68% |
25th May 2022 |
What now? Do I need to do anything?
The Smoothed Price will continue to grow by the Expected Growth Rate which applies to the fund(s) your clients are invested in. There’s nothing you need to do.
Could you apply further Unit Price Adjustments in the future?
We’ll continue to monitor the smoothing mechanism to ensure that the fund’s operated in a way that’s fair to all customers invested in it.
Whilst it’s possible that Unit Price Adjustments could be needed in the future they’re not intended to be used often and generally only where the value of the underlying assets rises or falls dramatically.
The value of an investment can go down as well as up. Your client may get back less than they have paid in.
© Prudential 2022
"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.