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Prudential ISA

The Prudential ISA, provided by Link Financial Investments Ltd, combines tax-efficient investment with access to the PruFund funds and Open-Ended Investment Company (OEIC) funds.

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Features and benefits

Tax-efficient growth – your clients have no Income or Capital Gains Tax to pay on growth within the ISA.
Access to our PruFund range of funds.
A range of OEIC funds – designed to meet different investment objectives and attitudes to risk.
Easy access to your money – with regular and one-off withdrawals to suit your client’s needs.
Invest from as little as £50 each month or with a single lump sum of £500.
Freedom to transfer – your clients can transfer their existing Cash ISA or Stocks and Shares ISA to the Prudential ISA.
No fixed term – so your clients can invest for as long as they want whilst the ISA remains open.

Your client’s investment could go down as well as up, they may not get back what they paid in.

About the Prudential ISA

The Prudential ISA is a Stocks and Shares ISA provided by Link Financial Investments Limited, who is the ISA Plan Manager. Link Financial Investments Limited is responsible for all regulatory and legal aspects of the ISA and provision of all customer services.

Your clients can start their investment from as little as £50 each month or with a single lump sum of £500. The minimum top-up payment is £250.

There is no minimum investment term - your clients can stop, restart, raise or lower payments whenever they like.

The Prudential ISA has two elements:

Investment in a life insurance policy which allows access to the PruFund Funds (the Life Insurance Policy) for which Prudential is responsible
Investment in Open-Ended Investment Company (OEIC) funds for which Link Fund Solutions Limited are responsible

Your clients can choose to invest in one or both of these elements of the Prudential ISA.

Download our guide to the Prudential ISA(PDF) for more information.

Key documents

Key Information Documents (KIDs)

These documents are provided for the products listed below and the funds that are available to new investors through these products.

View all documents for this product

Link Financial documents

Some of the documents for The Prudential ISA, such as application forms, servicing forms and fund information documents, are only available on the Link Financial website.

View Link Financial documents Link costs and charges disclosure

Who can invest?

Any owner must be at least 18 or over. There is no maximum age limit.

Contributions

The following minimum investment amounts apply:

Initial payment or transfer of £500 per fund
£250 for top-ups
Regular monthly payments of £50 per fund

Regular savings can be increased by any amount, subject to a minimum of an additional £5 per month.

ISA investment limits

The overall ISA subscription limit is £20,000 for the current tax year. This can be split in any proportion between Cash and Stocks and Shares ISAs. Transfers in from other ISA plans don't count towards your clients' annual limit.

Please note, Prudential does not offer a Cash ISA.

Withdrawals

Clients can:

take regular withdrawals monthly, quarterly, six-monthly or annually (subject to a minimum withdrawal of £50)
take partial withdrawals as a specific amount (subject to a minimum withdrawal of £250)
opt to fully surrender the ISA at any time. The ISA ends once all proceeds have been withdrawn

The total value of the regular withdrawals to be taken in any 12 month period must not exceed 100% of the value of your client's Prudential ISA. This calculation is performed when the withdrawal is established, on its re-commencement following any suspension, or should the amount be increased.
The Regular Withdrawals guide has more information.

If your clients are taking a lump sum or regular withdrawals from their ISA, the minimum value limit is £500 for each fund.

Download the Prudential ISA Fast Facts Document(PDF) for more information.

Investment options

Funds available within the Prudential ISA:

PruFund range of funds
LF Prudential OEIC Fund range

The PruFund range of funds

The Prudential ISA offers our PruFund range of funds which aim to grow your client's money while giving a smoothed investment experience.

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 Cautious Fund
PruFund Growth Fund

Find out more about the PruFund Range of funds.

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.

LF Prudential OEIC Fund range

We offer a range of five Risk Managed Active and five Risk Managed Passive funds which are Open Ended Investment Company (OEIC) funds that pool your clients money together with other investors.

Risk Managed Active Range

LF Prudential Risk Managed Active 1 Fund
LF Prudential Risk Managed Active 2 Fund
LF Prudential Risk Managed Active 3 Fund
LF Prudential Risk Managed Active 4 Fund
LF Prudential Risk Managed Active 5 Fund

Find out more about the Risk Managed Active Range.

Risk Managed Passive Range

LF Prudential Risk Managed Passive 1 Fund
LF Prudential Risk Managed Passive 2 Fund
LF Prudential Risk Managed Passive 3 Fund
LF Prudential Risk Managed Passive 4 Fund
LF Prudential Risk Managed Passive 5 Fund

Find out more about the Risk Managed Passive Range.

Fund switching

Your clients can switch funds whenever they need to, without charge, giving them control over their investments.

Charges and costs

The main charges will be:

Annual Management Charges (AMC)
Fund switching charges
Adviser Charges

Annual Management Charge

Annual Management Charges (AMC) applies for each fund.

We will take a charge each year for the management and administration of funds held within the Prudential ISA.

PruFund Funds: for these funds, the AMC is taken by the monthly cancellation of units from each investment. Note: if a client has only invested in a PruFund Fund for part of a month, we still take a full month's charge. A reduction to the AMC on a client’s PruFund Funds will apply if the total value of the client’s PruFund Funds held in their Prudential ISA is £100,000 or more.
Risk Managed Active/Passive Funds: the Ongoing Charge figure is based on the total of all charge payments made over a year, and includes charges such as the fund’s Annual Management Charge, custodian charge and administration fee.
Further costs incurred by the funds: In addition to our charges, there may be further costs incurred, which can vary over time. Where these are applicable, they are paid for by the relevant fund and will impact on its overall performance.

Further information on the PruFund Fund charges and costs can be found in Fund Guide(PDF).

Fund switching charges

PruFund range of funds

Your clients can switch between funds at any time. Switches out of any PruFund Fund will be subject to a 28 day delay.

There is currently no charge for switching. The minimum value of your clients PruFund investment they can switch is £500. If they are not switching the full value of their investment from a particular PruFund Fund, they must leave at least £500 in each fund.

Risk Managed Active/Passive funds

There is currently no charge for switching. Your clients can switch all or some of their shares in one fund for shares in another fund in the company at any time. This is subject to any restrictions on the eligibility of investors for a particular share class.

Adviser Charges

There are two main types of Adviser Charges:

Initial (set-up) adviser charge: agreed between you and your client as a % of initial investment; or a fixed monetary amount.
Ongoing Adviser Charge: agreed between you and your client as a % of total plan value or a specified monetary amount each year.

Ad hoc Adviser Charges are not available.

For more details on Adviser charging, see the Adviser Charging Guide.

Limits for Adviser Charging

Adviser Charge	Maximum Allowable
Single investment Set-up Charge	Lesser of 5% of the total single and transfer payment(s) included in the application and £20,000.
Regular investment Set-up Charge	5% of the regular contribution or 25% of the first 12 monthly contributions.
Ongoing Adviser Charge	1% each year of the total holding within the ISA across all funds.

See our Adviser Charging Guide to learn more about Adviser charging.

Additional information

Transferring an existing ISA

Your clients can transfer any previous tax year’s Cash ISA or Stocks and Shares ISAs from other providers to the Prudential ISA without affecting the current year’s subscription limits (please check the HMRC website for current limits). They can invest the transfer amount into the range of funds available.

When considering a transfer, your clients should speak to their existing ISA provider about potential charges or penalties.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. 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 Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. 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.