| Fund | 1 year Fund return % | 5 year Cumulative Fund return % | 10 year Cumulative Fund return | 5 year Annualised Fund return % | 10 year annualised Fund return % |
|---|---|---|---|---|---|
| Prudential With-Profits Fund (after tax) | 6.1 | 21.6 | 64.7 | 4.0 | 5.1 |
| Prudential With-Profits Fund (before tax) | 7.3 | 25.4 | 78.0 | 4.6 | 5.9 |
Our With-Profits Bonus Declaration - February 2025
In 2024, the ability to invest in a wide range of assets across regions and both public and private markets, once again benefitted the With-Profits Fund in an environment where many markets saw growth despite uncertain economic conditions.
As a result of this performance, I’m pleased to announce that this year, Annual Bonus rates will be kept at the same level as last year, which will continue to add to the guaranteed benefits of customers’ plans. Most customers will benefit from increases in Final Bonus rates, so will see an increase in the value of their plans.
How we look after your money
We invest your money in the Prudential Assurance Company Limited With-Profits Fund, which is the largest with-profits fund in the UK. The Fund uses a smoothing mechanism to protect our customers from the highs and lows of investment performance. This is achieved by holding back some of the investment returns in good years, with the aim of using this to support bonus rates in future years when investment returns are lower, benefitting all savers.
Our With-Profits Fund managers aim is to secure the highest total return for the Fund (after any tax and investment expenses), while maintaining an acceptable level of risk and protecting you, our With-Profits customers. We also believe the Fund helps sustain the real economy and deliver wider societal benefits, through investing directly in your communities.
How our Fund performed
The returns for the Prudential Assurance Company Limited With-Profits Fund over the last 1, 5 and 10 years to 31 December 2024 are:
Source: Prudential. These returns are before charges and the effects of smoothing and are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers. Please see information specific to your plan to find out more.
The value of your plan depends on how much profit the Fund makes and how we decide to distribute it. The total bonuses we’re adding to your plan won't reflect the performance of the underlying fund exactly because of, for example, charges, the effects of smoothing and any applicable tax. You can find more information in your yearly statement.
We can’t predict the future so past performance isn’t a guide to future performance. The value of your investment can go down as well as up so you might not get back the amount you put in.
How we set our bonus rates
For Annual Bonus rates, we consider the return we expect our investments to earn in the future. We hold back some of this return, with the aim of paying a proportion of the proceeds as Final Bonus. By doing this, we try to keep the cost of all guaranteed benefits at a sustainable level to maintain investment flexibility and to protect our customers.
For Final Bonus rates, we calculate it with the aim that the total return on customers’ plans represents a fair share of the profits of the With-Profits Fund over the lifetime of their investments.
Our Final Bonus rates include, where applicable, additional money we shared with some of our With-Profits customers as part of previous years’ Bonus Declarations. Final Bonus isn’t guaranteed. There’s also a chance we might have to take back the additional money distributed (in previous years) in the future, to protect the interests of all customers. Unless something very unusual happened, we wouldn’t expect to have to do this.
And something to be aware of
Sometimes, we may need to apply a Market Value Reduction if you decide to take money out of your plan. This will depend on the type of plan you have. This will reduce your fund value, but we’ll do this to make sure you get a fair plan value.
In 2025, we’ll continue to evolve portfolios and capture new investment opportunities from around the world.
Thank you for investing with us.
Clive Bolton
Chief Executive Officer, M&G Life
Related Content
Bonus Declaration FAQs February 2025
Find out who is affected by the bonus rates announcement and how you can find out if it affects you.
With-Profits FAQs February 2025
The frequently asked questions give high level information about investments in With-Profits.
Annual Bonus Rates Table February 2025
View our Regular/Annual Bonuses that will be added to our With-Profits range from 1 April.
© Prudential 2025
"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. 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.