PruFund range of funds - Expected Growth Rates and Unit Price Adjustments

As part of our PruFund smoothing process, Prudential set Expected Growth Rates (EGR). These are the annualised rates your client’s investment would normally grow at. They are reviewed every three months, when they could rise or fall.

They are set quarterly by the Prudential Directors, with regard to the investment returns expected to be earned on the assets of the funds over the long-term (up to 15 years). They are published every quarter for each product. Your client’s investment will normally benefit from this growth rate on a daily basis, through an increase in the price of the units held (known as the unit price).

The daily price we produce for the Series E funds is net of the Annual Management Charge (AMC).

The table below shows the current and historic EGR (gross of all product charges, including the AMC) and Unit Price Adjustments (UPA), correct as at 25 August 2022 (unless otherwise indicated).

Due to the strength of the With-Profits Fund, we’ve increased the unit price by 1.25% on 28 February 2022 for some of our customers invested in the PruFund funds.  This unit price increase has no impact on the smoothing process. Customers invested in the International Portfolio Bond, Prudential International Investment Bond and International Prudence Bond will not share in the additional surplus. For further information please see www.pru.co.uk/aboutadditionalsurplus

The PruFund range of funds aim to grow your money over the medium to long term (5 to 10 years or more), while protecting you from some of the short-term ups and downs of direct stockmarket investments by using an established smoothing process. This means that while you won’t benefit from the full upside of any potential stockmarket rises you won’t suffer from the full effects of any downfalls either.

This section gives you information on how our smoothing process works, access to both historic and current Expected Growth Rates (EGRs) and details of any historic Unit Price Adjustments (UPA).

Flexible Investment Plan

EXPECTED GROWTH RATE (%)

(%)
PruFund Risk Managed 1 Fund
4.40
PruFund Risk Managed 2 Fund
4.80
PruFund Risk Managed 3 Fund
5.10
PruFund Risk Managed 4 Fund
5.40
PruFund Cautious Fund
4.80
PruFund Growth Fund
5.40
PruFund Protected Cautious Fund
4.80
PruFund Protected Growth Fund
5.40

Flexible Retirement Plan

EXPECTED GROWTH RATE (%)

(%)
PruFund Risk Managed 1 Pension Fund
5.30
PruFund Risk Managed 2 Pension Fund
5.70
PruFund Risk Managed 3 Pension Fund
6.20
PruFund Risk Managed 4 Pension Fund
6.40
PruFund Cautious Pension Fund
5.80
PruFund Growth Pension Fund
6.50
PruFund Protected Cautious Pension Fund
5.80
PruFund Protected Growth Pension Fund
6.50

International Portfolio Bond

EXPECTED GROWTH RATE (%)

(%)
PruFund Planet 1 Sterling Fund
5.30
PruFund Planet 2 Sterling Fund
5.70
PruFund Planet 3 Sterling Fund
6.20
PruFund Planet 4 Sterling Fund
6.40
PruFund Planet 5 Sterling Fund
6.70
PruFund Risk Managed 1 Fund
5.30
PruFund Risk Managed 2 Fund
5.70
PruFund Risk Managed 3 Fund
6.20
PruFund Risk Managed 4 Fund
6.40
PruFund Risk Managed 5 Fund
6.70
PruFund Cautious Fund
5.80
PruFund Growth Fund
6.50

Prudential International Investment Bond

EXPECTED GROWTH RATE

FUND (€) FUND (£) FUND ($)
PruFund Cautious Fund
4.70 5.80 5.40
PruFund Growth Fund
5.40 6.50 6.00
PruFund Protected Cautious Fund
4.70 5.80 5.40
PruFund Protected Growth Fund
5.40 6.50 6.00

Prudential Investment Plan

EXPECTED GROWTH RATE (%)

(%)
PruFund Risk Managed 1 Fund
4.40
PruFund Risk Managed 2 Fund
4.80
PruFund Risk Managed 3 Fund
5.10
PruFund Risk Managed 4 Fund
5.40
PruFund Risk Managed 5 Fund
5.80
PruFund Cautious Fund
4.80
PruFund Growth Fund
5.40
PruFund Protected Cautious Fund
4.80
PruFund Protected Growth Fund
5.40

Prudential ISA

EXPECTED GROWTH RATE (%)

(%)
PruFund Risk Managed 1 Fund
5.30
PruFund Risk Managed 2 Fund
5.70
PruFund Risk Managed 3 Fund
6.20
PruFund Risk Managed 4 Fund
6.40
PruFund Risk Managed 5 Fund
6.70
PruFund Cautious Fund
5.80
PruFund Growth Fund
6.50

PruFund Investment Plan

EXPECTED GROWTH RATE (%)

(%)
PruFund Growth & Income Fund
5.10
PruFund Growth Fund
5.40

Prudential Retirement Account - Series D

EXPECTED GROWTH RATE (%)

(%)
PruFund Risk Managed 1 Pension Fund (RA)
5.30
PruFund Risk Managed 2 Pension Fund (RA)
5.70
PruFund Risk Managed 3 Pension Fund (RA)
6.20
PruFund Risk Managed 4 Pension Fund (RA)
6.40
PruFund Cautious Pension Fund (RA)
5.80
PruFund Growth Pension Fund (RA)
6.50

Prudential Retirement Account - Series E

EXPECTED GROWTH RATE (%)

(%)
PruFund Planet 1 Pension Fund (RA)
5.30
PruFund Planet 2 Pension Fund (RA)
5.70
PruFund Planet 3 Pension Fund (RA)
6.20
PruFund Planet 4 Pension Fund (RA)
6.40
PruFund Planet 5 Pension Fund (RA)
6.70
PruFund Risk Managed 1 Pension Fund (RA)
5.30
PruFund Risk Managed 2 Pension Fund (RA)
5.70
PruFund Risk Managed 3 Pension Fund (RA)
6.20
PruFund Risk Managed 4 Pension Fund (RA)
6.40
PruFund Risk Managed 5 Pension Fund (RA)
6.70
PruFund Cautious Pension Fund (RA)
5.80
PruFund Growth Pension Fund (RA)
6.50

Trustee Investment Plan

EXPECTED GROWTH RATE (%)

(%)
PruFund Risk Managed 1 Pension Fund
5.30
PruFund Risk Managed 2 Pension Fund
5.70
PruFund Risk Managed 3 Pension Fund
6.20
PruFund Risk Managed 4 Pension Fund
6.40
PruFund Cautious Pension Fund
5.80
PruFund Growth Pension Fund
6.50
PruFund Protected Cautious Pension Fund
5.80
PruFund Protected Growth Pension Fund
6.50

Pension Choices Plan

EXPECTED GROWTH RATE (%)

(%)
PruFund Risk Managed 1 Fund
5.30
PruFund Risk Managed 2 Fund
5.70
PruFund Risk Managed 3 Fund
6.20
PruFund Risk Managed 4 Fund
6.40

M&G Wealth Platform

EXPECTED GROWTH RATE (%)

(%)
Prudential PruFund Planet 1
5.30
Prudential PruFund Planet 2
5.70
Prudential PruFund Planet 3
6.20
Prudential PruFund Planet 4
6.40
Prudential PruFund Planet 5
6.70

The PruFund range of funds are invested in the Prudential's With-Profits Fund. The PruFund funds have an established smoothing process which aims to provide you with some protection from the extreme short-term ups and downs of the markets.

Our established smoothing process has two elements:

  • Expected Growth Rates, which normally apply on a day-to-day basis.
  • Unit Price Adjustments, which will be applied when the process requires us to do so.

Prudential set Expected Growth Rates (EGR); these are the annualised rates your investment would normally change in line with. The EGRs reflect our view of how we think each PruFund fund will perform over the long-term (up to 15 years). Each PruFund fund has its own EGR and your investments into a PruFund will normally change on a daily basis in line with the relevant EGR.

The EGRs are reviewed every 3 months on the quarter date (25 February, 25 May, 25 August and 25 November or the next working day if the quarter date is a weekend or a public holiday) and may be higher, the same, or lower than they were at the start of your investment.

When you invest in one or more of the PruFund range of funds, your initial investment will purchase a number of units that you will hold in the fund or funds you choose to invest in. The initial price and number of units you purchase will depend on the unit price on the day you invest as well as the amount of money you invest with.

The Expected Growth Rates that are applied daily to the units that you hold within the fund or funds you choose will normally give you an indication of how your investment should increase over the quarter and are shown gross of all product charges including annual management charges.

Please note that they are not an indication of what you will get back over the long term as the value of your investment can go down as well as up and there is still the potential that you may not get back the amount you put in.

Although we use a long term view of performance to set EGRs, we also have to take into account the shorter-term performance. On a daily basis, if the shorter- term performance differs too much from our current Expected Growth Rate, we would have to amend the value of your fund up or down  to ensure we're not returning too much or too little. We call these Unit Price Adjustments.

We may decide to reset the smoothed price of a PruFund fund on a particular day, to protect the With-Profits Fund.

If we decide to reset, the smoothed price (also known as the unit price) of the affected fund would be adjusted to be the same value as the relevant unsmoothed price on that working day. That adjusted smoothed price would then continue to grow in line with the relevant Expected Growth Rate.

There may be occasions where we have to suspend the smoothing process for one or more PruFund funds for a period of consecutive days, to protect our With-Profits Fund. When this happens the smoothed price for the affected fund(s) is set to the unsmoothed price for each day until we reinstate the smoothing process.

Please read the Your With-Profits Plan - a guide to how we manage the Fund for further information on the PruFund range of funds.

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