For UK financial advisers only, not approved for use by retail customers. Click here for the customer website.

Access to the PruFund range of funds

With their unique smoothing mechanism and globally diversified multi-asset portfolios

Tax-efficient Withdrawals

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

Inheritance Tax Planning

Reduce your client's inheritance tax liability by placing the plan in trust

About the PruFund Investment Plan Mark 3

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).

  • Your clients can start with a single payment and can then make additional lump sum payments if they want to.
  • Withdrawals can be made, and they can cash in their plan at any time.

  • Minimum initial investment: £10,000 (after any set-up Adviser Charges)
  • Maximum investment: £5 million (including initial investment and additional top-ups)

If your client would like to invest more, please contact your Account Manager.

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

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

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.

Key elements

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) 

Features and benefits

  • 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.

  • 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.

  • Inheritance Tax planning options: A wide range of trust options available for use with the PruFund Investment Plan Mark 3.

  • 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.

Risks

  • 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.

Product details

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 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:

Investment 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.

Charges

The main charges will be: 

  • Annual Management Charge

  • Charges for guarantees (where applicable)

  • Adviser charge (set up charge and ongoing charges)

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:

  • 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 PruFund Investment Plan Mark 3.

e-Signature

What documents can e-signatures be used with?

  • Application forms
  • Confirmation of Verification of Identity
  • Tax Residency Self-Certification forms
  • Online Submission Declaration Form
  • Full and partial encashment forms
  • Regular withdrawal forms
  • Fund switch request forms
  • Nomination of beneficiary forms
  • Adviser charging instruction forms

E-signatures can't be used with the following documents:

  • Power of Attorney documents
  • Wills
  • Prudential trust deeds
  • Bespoke trust deeds (non-Pru trusts)
  • Assignments/change of ownerships

The signed document must include an audit review summary page that confirms:

  • Unique document identifier
  • The names/email addresses of the parties that have e-signed a document
  • The dates and times it was e-signed

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:

  • Acrobat Sign (Adobe)
  • AlphaTrust
  • DocuSign
  • Dropbox Sign
  • E-Sign
  • Foxit
  • GlobalSign
  • legalesign
  • NitroSign
  • OneSpan Sign
  • PandaDoc
  • Rsign
  • signNow
  • Scrive
  • Signable
  • Zoho

For more information, please contact your Prudential Account Manager.

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