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PruFund Investment Plan Mark 3

When it comes to investment solutions, few providers can offer a proposition as compelling as PruFund investment plan with its innovative design and fund choices. 

  • Invest in PruFund range of funds
  • Tax efficient withdrawals
  • Choice of trusts
  • Four free fund switches per year
  • Access to Prudential’s Multi-Asset Fund range - the PruFund range of funds.

  • Guaranteed options on our PruFund Protected Funds help provide added security, at an extra cost. The PruFund Protected Funds are currently unavailable to new investments.

  • Tax-efficient withdrawals of up to 5% of the investment each policy year for up to 20 years.

  • Discounts on the Annual Management Charge are available depending on the value of the investment.

  • Adviser discount - Discounted charge of an additional 5bps for Openwork advisers.

  • Return of Premium Death Benefit option, giving your client peace of mind that the return on death will always be at least the total amount invested (less any regular or partial withdrawals or any adviser charges), whatever the plan value at that time.

  • The plan provides a small amount of life cover with a basic death benefit of 100.1% of the fund value.

The value of any investment and any income taken from it can go down as well as up so your customer might get back less than they put in.

Your client might need to pay tax depending on their circumstances and the options they choose. Tax rules can also change in the future.

About the PruFund Investment Plan Mark3 

The PruFund Investment Plan Mark 3 is a single premium investment bond that lets your client invest in a range of different funds, while providing a small element of life cover.

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: 

  • PruFund Risk Managed 1 Fund

  • PruFund Risk Managed 2 Fund 

  • PruFund Risk Managed 3 Fund

  • PruFund Risk Managed 4 Fund

  • PruFund Risk Managed 5 Fund

  • PruFund Growth Fund

  • PruFund Protected Growth Fund

  • PruFund Cautious Fund

  • PruFund Protected Cautious Fund 

(The PruFund Protected Funds are currently unavailable to new investments) 

The PruFund Cautious Fund and PruFund Protected Growth Fund are only available for selection at the beginning of the plan. 

 

How PruFund is managed

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:

 

Eligibility

Criteria
Owner

UK resident

Minimum age - 18 years
No maximum age limit

Life assured 

Minimum age - three months
Maximum age - at outset, 85 years next birthday (for joint life cases at least one life must be less than age 85 when the plan is taken out)

Contributions & withdrawals

Contributions

Minimum initial investment: £10,000 (after any set up Adviser Charges)
Maximum investment: £500,000 (Including initial investment and additional top-ups)  

For requests to invest more than £500,000, please contact your Account Manager.

Withdrawals

Your clients can:

  • Cash in their plan at any time.

  • Take regular or partial withdrawals at any time.

  • Set the amount and frequency of regular withdrawals.

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. Please remember that taxation is based on individual circumstances and tax rules may change.

A minimum withdrawal limit of £50 applies.

The maximum level of regular withdrawals during any 12 month period is the greater of:

  • 7.5% a year of the value of the fund, or

  • 7.5% of the total amount paid into the plan.

Ongoing Adviser Charges paid from the plan will be treated as regular withdrawals and included in the maximum limits outlined above.

Download the Key Features Document (PDF) for more information.

Expected Growth Rates

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: 

  • Annual Management Charge

  • Charges for guarantees (where applicable)

  • Adviser charge (set up charge and ongoing charges)

 

Annual Management Charge

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%

Fund switching charges

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. 

 

Guarantee charges

The PruFund Protected Funds are currently unavailable 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.

 

Adviser charges

The level and shape of Adviser Charging is agreed between you and your client.

There are three types of Adviser Charges:

  • Set-up Adviser Charge : deducted from the initial investment before it is invested in the plan.

  • Ongoing Adviser Charge : taken at plan level, will apply across all in-force segments.

  • Ad hoc Adviser Charge : after the initial plan is set-up, the client can request an Ad hoc payment to be made to the adviser.

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 Prudential Investment Plan.