How we manage our With-Profits fund

Principles and Practices of Financial Management (PPFM)

Our PPFMs explain how we manage our With-Profits fund including the nature and extent of the decisions we take to manage the fund and how we apply discretion to treat customers and shareholders fairly, by managing their sometimes competing and conflicting interests.

Our PPFMs should give a knowledgeable observer an understanding of the material risks and rewards from starting and continuing an investment in a with-profits policy with the Prudential Assurance Company Limited (PAC).

A revised version of the PPFM was published on 1 April 2021 which simplifies the way we describe our principles and practices to make it more accessible to advisers/customers. We reviewed the length of the PPFM and removed statements of limited relevance, redrafted statements in a clearer manner, and also produced a PruFund specific version of the PPFM.  We now maintain two versions of our PPFM, a full version covering all with-profits business, and a PruFund specific version:

  • The full PPFM covers all with-profits policies issued in the UK by companies in or acquired by the M&G plc Group (i.e. by The Prudential Assurance Company Limited (PAC), Scottish Amicable Life plc (SAL) which were transferred to PAC with effect from 31 December 2002, Prudential (AN) Limited (PANL) which were transferred to PAC with effect from 31 October 2010, Prudential International Assurance plc (PIA)), and Scottish Amicable Life Assurance Society which were transferred to PAC with effect from 30 September 1997.  It also covers the with-profits annuity policies transferred from the Equitable Life Assurance Society to PAC.

  • The PruFund specific PPFM is an abbreviated version of the full PPFM which covers all with-profits policies investing in PruFund issued in the UK by companies in M&G plc (i.e. by The Prudential Assurance Company Limited (PAC) and Prudential International Assurance plc (PIA)).

The Principles define the overarching standards used in managing PAC's with-profits business and describe the approach used in responding to longer-term changes in the business and economic environment. The Practices describe the approach used in responding to changes in the business and economic environment in the shorter-term, and as a result, they will change more frequently than Principles.

You can download the PPFMs below or if you'd prefer a printed copy, please give our Customer Service Team a call on 0800 000 000 (Monday – Friday, 8am – 6pm).

Full version of Prudential’s Principles and Practices of Financial Management (PDF)

This is applicable to With-Profits business issued by Prudential Assurance Company to UK policyholders.

PruFund only version of Prudential’s Principles and Practices of Financial Management (PDF)

This is applicable to With-Profits business investing in PruFund issued by Prudential Assurance Company to UK policyholders.

We've also created other relevant documents that contain additional useful information about our With-Profits business.

Prudential’s compliance with the Principles and Practices of Financial Management and With-Profits Actuary’s Report (PDF)

This document confirms how we comply with the Principles and Practices of Financial Management. This contains the current version of the With-Profits Actuary’s Report.

Prudential’s Principles and Practices of Financial Management – Summary of changes (PDF)

This document outlines the notable changes made to Prudential’s PPFM since it was first published.

Prudential’s With-Profits Committee – Terms of Reference (PDF)

This document outlines the current terms of reference of the Prudential With-Profits Committee.

Customer-friendly versions (CFPPFMs) of the PPFM

We also produce customer friendly versions of our PPFM. You can download the appropriate CFPPFM below, based on which type of product and/or fund you’re invested in.

The products listed below are not exhaustive – if you’re unsure which guide applies to your particular product then please get in touch with our Customer Service Team on 0800 000 000 (Monday – Friday, 8am – 6pm).

Please make sure you also read the Key Features Document appropriate for your product.

PruFund range of funds (PDF)

This document is applicable to the following products; ISA, Prudential Investment Plan (PIP), Trustee Investment Plan (TIP), PruFund Investment Plan (PFIP), Flexible Investment Plan (FIP), Flexible Retirement Plan (FRP) and Pension Choices Plan (PCP).

PruFund (Pricing Series E) range of funds (PDF)

This document is applicable to Retirement Account (Pricing Series E) investments.

PruFund (Pricing Series D) range of funds (PDF)

This document is applicable to Retirement Account (Pricing Series D) investments.

Prudential Flexible Investment Plan (Series S) (PDF)

This document is applicable to Flexible Investment Plans sold by Santander financial advisers.

PruFund (Pricing Series F) range of funds

This document is applicable to PruFund (Pricing Series F) investments

Prudential Unitised and Cash Accumulation With-Profits Plans (PDF)

This document is applicable to Prudential Unitised With-Profits Plans including the Flexible Retirement Plan (FRP), Prudential Investment Plan (PIP), Trustee Investment Plan (TIP), and Flexible Investment Plan (FIP); Premier Pension Plans; Prudential Savings Account (PSA), Prudence Investment Bond (PIB), and PruBond; Group Personal Pension plans  (GPP), Money Purchase Plans (MPP) and Executive Pension Plans (EPP); and all Cash Accumulation With-Profits Plans.

Unitised With-Profits Plans originally issued by SALAS (PDF)

This document is applicable to Unitised With-Profits Plans originally issued by Scottish Amicable Life Assurance Society (SALAS) including IndePension (Series 1 – 4) and Home Purchaser (Series 3).

Unitised With-Profits Plans originally issued by SAL (PDF)

This document is applicable to Unitised With-Profits Plans originally issued by Scottish Amicable Life Plc (SAL) including Home Purchaser (Series 3) and Series A Pensions.

Prudential Conventional With-Profits Plans (PDF) 

This document is applicable to Prudential Conventional With-Profits including Prudential Personal Retirement Plan and With-Profits Endowment.

Conventional With-Profits Plans originally issued by SALAS (PDF)

This document is applicable to Conventional With-Profits Plans originally issued by Scottish Amicable Life Assurance Society (SALAS) including Flexi-pension (Series 2) and Flexidowment.

Prudential Income Choice Annuity (PDF)

This document is applicable to Income Choice Annuities which started on or after 7 November 2011. This guide does not apply to a small number of Income Choice Annuities which were set up between 7 November and 16 December 2011, or to Income Choice Annuities which were started before 7 November 2011.

Prudential With-Profits Annuity Plans (PDF)

This document is applicable to Prudential With-Profits Annuity Plans.

Former Equitable Life Assurance Society With-Profits Annuity Plans (PDF)

This document is applicable to former Equitable Life Assurance Society With-Profits Annuities effective from 1 January 2008.

Prudential Income Choice Annuity (pre 07/11/2011) (PDF)

This document is applicable to Income Choice Annuities which started before 7 November 2011.

Prudential International Investment Bond and International Prudence Bond - The PruFund Range of Funds (PDF)

This document is applicable to the PruFund Range of Funds within the Prudential International Investment Bond (PIIB) and International Prudence Bond (IPB).

Prudential International Investment Bond and International Prudence Bond - Your With-Profits Bond - guide to how we manage the Fund (PDF)

This document is applicable to the PAC With-Profits Funds within the Prudential International Investment Bond (PIIB) and International Prudence Bond (IPB).

International Portfolio Bond – Your With-Profits Bond – a guide to how we manage the Fund

This document is applicable to the PruFund Range of Funds within the International Portfolio Bond. 

If you’re unsure on which guide applies to your product, please give our Customer Service Team a call on 0800 000 000 (Monday – Friday, 8am – 6pm).

Further information

Current information regarding the asset mix and investment returns:

Asset Mix and Investment Returns (PDF)

Prudential's Statement of Unit-Linked Principles and Practices

Prudential has published a statement of the Principles and Practices used in the management of our unit-linked funds.

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