The PruFund Range of Funds

Available through the Prudential Investment Plan Mk 3, our PruFund range of funds aim to grow your client's money while giving them a smoothed investment experience.

Smoothing process

Multi-asset funds

A choice of funds available

Fund details

Next steps

The PruFund range of funds

The PruFund range of funds are available on our Prudential Investment Plan Mk 3 and aim to grow your client's money over the medium to long term (5 to 10 years or more), while protecting them from some of the short-term ups and downs of direct stockmarket investments by using an established smoothing process.

PruFund funds are invested in the Prudential With-Profits Fund, which is one of the largest and financially strongest With-Profits Funds in the UK. There are differences across the range of PruFund funds in their objectives and mix of assets, and how PruFund delivers returns to investors when compared to other With-Profits business, which means the returns received by investors will vary by fund choice.

PruFund funds are multi-asset funds which provide access to a wide range of assets, across different asset types and countries. This diversification allows your client to spread the risk of investment.

Please remember that the value of your investments can go down as well as up, your client may not get back what they have paid in.

Please download the Your With-Profits Plan – a guide to how we manage the fund (PruFund range of funds) guide for more information.

For more information around the Pricing Series F range of funds, please download Your With-Profits Plan - a guide to how we manage the Fund.

Smoothing

PruFund has an established smoothing mechanism which uses Expected Growth Rates, and where required, Unit Price Adjustments, to deliver a smoothed investment journey. The smoothing mechanism also includes Suspension of Smoothing and Unit Price Resets; we expect these to be used in highly unusual circumstances.

For more information View A Step by Step guide to the PruFund smoothing process (PDF)

Who manages the PruFund range of funds?

The Prudential Assurance Company (PAC), a subsidiary of M&G plc, is responsible for looking after the assets of Pru customers and their multi-asset fund ranges, including the PruFund range of funds. They employ the M&G Treasury & Investment Office to carry out the underlying portfolio management services on their behalf, including setting the strategic asset allocation, manager selection and oversight and portfolio management.

The M&G Treasury & Investment Office (T&IO) is our team of in-house investment strategists and ‘manager of managers’ for Pru in the UK. They are independent of the various underlying asset management businesses within M&G plc and responsible for approximately £159bn AUM, as at 30 June 2022, across a range of multi-asset investment solutions and other Pru products.

For more information on how T&IO manage the PruFund range of funds, take a look at the PruFund Stewardship report.

Diversification

T&IO works closely with Prudential to set the overarching strategic asset allocation framework for the multi-asset fund range and for managing the asset allocation on an ongoing basis.

Fund options

There is a range of PruFund funds designed to suit different attitudes to risk and reward, for those wishing to invest for 5 to 10 years or more. There are the five Risk Managed PruFund funds and also the PruFund Growth and Cautious Funds, the latter two may include some guarantee options at an additional charge. The PruFund Protected Growth Fund is currently closed to new investments.

Access

The PruFund range is accessible through a variety of packaged retirement and investment products and the M&G Wealth Platform.

Risk Managed PruFund funds

The Risk Managed PruFund funds aim to achieve long-term total return (the combination of income and growth of capital). The funds are actively managed and aim to limit the fluctuations ('volatility') an investment experiences, after allowing for smoothing, to % limits over the medium to long term.

There is no guarantee that a fund will achieve its objective of managing the volatility ceiling to the target level.

Fund Name	Target Volatility Level
PruFund Risk Managed 1	9%
PruFund Risk Managed 2	10%
PruFund Risk Managed 3	12%
PruFund Risk Managed 4	14.5%
PruFund Risk Managed 5	17%

For more information on asset allocation within Risk Managed PruFund funds, please download the client guide (PDF).

PruFund Growth Fund

The PruFund Growth Fund aims to maximise growth over the medium to long term (5 to 10 years or more) by investing in shares, property, fixed-interest and other investments. The fund currently invests in UK and international equities, property, fixed-interest securities, index-linked securities and other specialist investments.

PruFund Cautious Fund

The PruFund Cautious Funds aims for steady and consistent growth over the medium to long term (5-10 years or more), through a cautious approach to investing. It invests in shares, property, fixed interest and other investments.

Useful Documents

"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. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. 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.