As part of our PruFund smoothing process, Prudential set Expected Growth Rates (EGR). These are the annualised rates your 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 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 C(International Portfolio Bond), D, E and F (M&G Wealth Platform) 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 November 2024 (unless otherwise indicated).
We’re delighted to have additional money in our With-Profits Sub Fund to share with some of our customers. We've increased the unit price by 0.90% on 27 February 2024 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 money. For further information please see www.pru.co.uk/aboutadditionalmoney.
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).
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:
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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