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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.