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PruFund -Expected Growth Rates and Unit Price Adjustments

We announce Expected Growth Rates (EGR) every quarter.

The EGR is the annualised rate which will be applied daily to increase the unit price of the fund. They are set quarterly by the Prudential Assurance Company Ltd Directors, taking into consideration the expected long-term investment return on the assets of the fund.

The tables below show the current Expected Growth Rates, gross of all product charges (including Annual Management Charges) unless indicated otherwise. 

You can also view Historic EGR and Unit Price Adjustments (UPA) for each product.

Please note, PruFund Protected Funds are currently closed to new investments.

The rates are correct as at 25 August 2022.

PruFund Investment Plan (Mark 1)

EXPECTED GROWTH RATE

(%)
PruFund Growth & Income Fund
5.10
PruFund Growth Fund
5.40

PruFund Investment Plan (Mark 2)

EXPECTED GROWTH RATE

(%)
PruFund Cautious Fund
4.80
PruFund Growth Fund
5.40
PruFund Protected Cautious Fund
4.80
PruFund Protected Growth Fund
5.40

PruFund Investment Plan (Mark 3)

EXPECTED GROWTH RATE

(%)
PruFund Risk Managed 1 Fund
4.40
PruFund Risk Managed 2 Fund
4.80
PruFund Risk Managed 3 Fund
5.10
PruFund Risk Managed 4 Fund
5.40
PruFund Risk Managed 5 Fund
5.80
PruFund Cautious Fund
4.80
PruFund Growth Fund
5.40
PruFund Protected Cautious Fund
4.80
PruFund Protected Growth Fund
5.40

Trustee Investment Plan

EXPECTED GROWTH RATE

(%)
PruFund Risk Managed 1 Pension Fund
5.30
PruFund Risk Managed 2 Pension Fund
5.70
PruFund Risk Managed 3 Pension Fund
6.20
PruFund Risk Managed 4 Pension Fund
6.40
PruFund Cautious Pension Fund
5.80
PruFund Growth Pension Fund
6.50
PruFund Protected Cautious Pension Fund
5.80
PruFund Protected Growth Pension Fund
6.50

Important Information about the Expected Growth Rates

Past performance is not an indicator of future performance. Remember that the value of an investment can go down as well as up, your client may not get back what they paid in.

The Expected Growth Rates set at each quarter date may be higher, the same or lower than those applying at the start of the investment.

In addition, there may be times where the unit price may be adjusted which will impact any growth that clients may receive. The overall return achieved on any plan is affected by the amount of the investment, investment performance, the period over which the plan has been invested and the charges applicable to the plan. 

We may decide to reset the smoothed price of a PruFund fund on a particular day, to protect our With-Profits Fund and therefore the interests of all our With-profits policyholders. This is not expected to happen often, and is only expected to be used in highly unusual circumstances.

If we decide to reset, the smoothed price of the affected fund would be adjusted to be the same value as the unsmoothed price on that working day. That adjusted smoothed price will then continue to grow in line with the Expected Growth Rate from the working day after this reset of the smoothed price. This is referred to as a Unit Price Reset in our literature.

There may be occasions where we have to suspend the smoothing process for one or more PruFund funds for a period of consecutive days, to protect our With-Profits Fund and therefore the interests of all our With-profits policyholders. This is not expected to happen often, and is only expected to be used in highly unusual circumstances. When this happens the smoothed price for the affected fund(s) is set to the unsmoothed price for each day until we reinstate the smoothing process.

You should refer to Key Features or Terms & Conditions of your client's plan for more information on how the Expected Growth Rates work.