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With their unique smoothing mechanism and globally diversified multi-asset portfolios
Tax-efficient withdrawals of up to 5% of the investment each policy year for up to 20 years
Reduce your client's inheritance tax liability by placing the plan in trust
Our PruFund Investment Plan Mark 3 is an investment bond that lets your clients invest their money in a range of different funds. The plan aims to grow the value of their investment over the medium to long term (5-10 years or more).
If your client would like to invest more, please contact your Account Manager.
Your clients can:
The maximum level of regular withdrawals during any 12 month period is the greater of:
Your client can take up to 5% of their initial investment and any additional investments as a tax-deferred withdrawal each year. Anything above this may be liable to immediate Income Tax. Your client might need to pay tax depending on their circumstances, the options they choose and where they live. Tax rules can also change in the future.
All withdrawals are subject to a minimum withdrawal payment of £50.
Download the Key Features document for more information.
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The PruFund range is designed to spread the investment risk by investing in many different assets, managed by the investment expertise of the Treasury and Investment Office (T&IO) (includes the team formerly known as Prudential Portfolio Management Group Limited (PPMG)). Your client can choose to invest in up to five of the following PruFund funds:
(The PruFund Protected Growth Fund is currently closed to new investments)
The PruFund Protected Cautious Fund and PruFund Protected Growth Fund are only available for selection at the beginning of the plan.
One of the key strengths of the PruFund range of funds is their diversified range of assets. This can help reduce investment volatility compared to direct exposure to the stockmarket. The funds invest in Prudential's With-Profits Fund.
More about our With-Profits Strategy
Prudential's With-Profits philosophy of investing in a wide range of assets, coupled with the smoothing of investment returns, the expertise of the Treasury and Investment Office (T&IO) (includes the team formerly known as Prudential Portfolio Management Group Limited (PPMG)) and the flexibility afforded by the size and strength of the Fund, has enabled them to take advantage of opportunities as markets have changed.
View PDF factsheets for:
We announce the Expected Growth Rates that apply to the PruFund Range of Funds every quarter.
Find out more about our Expected Growth Rates, Historic Expected Growth Rates or Unit Price Adjustments for the PruFund Range of Funds.
The main charges will be:
We will take a charge for managing the plan. For PruFund Funds, we take the annual management charge for these funds by deducting a percentage of those units from the plan every month.
We offer Fund Size Discounts on the Annual Management Charge which apply to the whole investment, not just the portion above the threshold levels shown below.
Assets Under Management (£) | Fund Size Discount From Annual Management Charge - Including additional 5bps Openwork discount (%) |
---|---|
<24,999 |
0.35 |
25,000-49,999 |
0.40 |
50,000-99,999 |
0.45 |
100,000-249,999 |
0.50 |
250,000-499,999 |
0.525 |
500,000-999,999 |
0.55 |
1,000,000-1,749,999 |
0.575 |
1,750,000-2,999,999 |
0.60% |
3,000,000+ |
0.625% |
We currently don’t charge for switching but, if this changes in the future, we’ll inform your clients. The minimum amount which can be switched is £500.
The PruFund Protected Growth Fund is currently closed to new investments.
We offer guarantee terms for both PruFund Protected Cautious Fund and PruFund Protected Growth Fund, where the guarantee will only apply at the end of the selected guarantee term (the guarantee date) providing your client doesn’t switch out of the funds.
Once the guarantee term has been selected, the charge will remain fixed throughout the guarantee term. The guarantee will only apply at the end of the selected guarantee term.
More details about charges can be found in The PruFund Range of Funds: Guarantee Options.
The level and shape of Adviser Charging is agreed between you and your client.
There are three types of Adviser Charges:
Ongoing and Ad hoc Adviser Charges affect the 5% annual withdrawal limit for income tax purposes.
Find out more about adviser charging in the Key Features Document (PDF) for the PruFund Investment Plan Mark 3.
The signed document must include an audit review summary page that confirms:
The form will not be accepted if it does not include the audit review summary page.
We can only accept application forms and documentation from the following approved e-signature providers:
For more information, please contact your Prudential Account Manager.