Prudential ISA

 

If you are thinking about investing, and looking for a tax efficient way to save, an Individual Saving Account (ISA) continues to be a popular savings and investment product, mostly due to their simplicity and flexibility, but also because they offer a tax efficient way to save for your future.

Read on for more information about the Prudential ISA, and if you’re still interested, speak to a financial adviser about setting one up.

Already a Prudential ISA customer?

You can read on to find out general information about the Prudential ISA, however we also have a dedicated webpage for existing Prudential ISA customers where you can;

  • Access the Prudential ISA online service, if you’re already registered
  • Access the registration journey to get access to the Prudential ISA online service
  • Get access to certain forms and guides 

The Prudential ISA might be right for you if you’re; 

  • Aged 18 or over, and resident in the UK for tax purposes, unless you’re a Crown employee, their spouse or registered civil partner
  • looking, and able, to make payments to build a tax efficient savings pot and you have sufficient ISA allowance to do so
  • looking to transfer existing ISA funds
  • looking to invest for the medium to long term (five to ten years or more)
  • looking for potential investment returns in excess of those available from cash in a tax-efficient manner
  • looking to invest in PruFund funds for smoothed returns which provide some protection from the short-term ups and downs of direct stock market investments. And understand that although you won’t suffer from the full effects of any downfalls in the market, you won’t benefit from the full upside of any market rises as well
  • looking to invest in a range of actively and/or passively managed Open Ended Investment Company (OEIC) funds
  • able, and willing, to interact with your Prudential ISA digitally. This will require you to register for online access, and access your documents electronically. You will also have to provide your email address so that the ISA Manager can notify you about important information on your Prudential ISA.

  • A Prudential ISA can only be set up through a financial adviser.
  • The value of your investments can go down as well as up, so you might get back less than you put in.
  • If you take more money out of your Prudential ISA than the amount your investments have grown by, the value of your investment will be less than you put in.
  • If the total charges and costs are more than any overall growth achieved, your Prudential ISA will fall in value, possibly to even less than you invested.
  • Each fund available in the Prudential ISA has its own level of risk and potential growth. Please see the relevant information for the funds available.
  • Although ISAs currently enjoy favourable tax treatment, it’s possible this could change in the future.
  • You won't have access to a Cash Account or a Cash type investment, therefore money will remain invested whilst it's held in your Prudential ISA.

The Prudential ISA is a Stocks and Shares ISA that provides access to a range of investment solutions provided by Pru, part of M&G plc.

The Prudential ISA is provided for Pru by Link Financial Investments Limited (LFI), who are also the ISA plan manager. If you take out a Prudential ISA you will have a contract with LFI and all servicing and communication on your plan will be from them.

There are two elements to the Prudential ISA, and you can invest in one or both parts.

The Prudential ISA

Life Insurance Policy

Investment in a life insurance policy allows you to access Pru’s PruFund range of funds. The life insurance policy pays out 100.1% of the value of the PruFund funds held, if you die.

WS Prudential Risk Managed funds

Investment in WS Prudential Risk Managed Active and Passive range of funds for which Waystone Management (UK) Limited (WMUK) are responsible.

The value of your investment can go down as well as up so you might not get back the amount you put in.

Why invest in a Prudential ISA?
 

Like most ISAs, the Prudential ISA offers;

Tax efficiency

Access to your money

Any capital growth will be free of income tax and Capital gains tax and you don’t pay tax on withdrawals. You can take regular and/or one-off withdrawals depending on your needs.

Flexible payment options

Range of investment options

You can invest from as little as £50 a month per fund, or initial lump sums of at least £500 per fund with additional lump sums to existing fund holdings of £250 per fund. A range of funds to match your needs and attitude to risk – the WS Prudential Risk Managed Active and Passive fund ranges.

Freedom to transfer other ISAs to your Prudential ISA

Freedom to transfer your Prudential ISA to other
ISA managers

You can transfer your existing Cash ISA or Stocks and Shares ISA to the Prudential ISA free of charge, but you’ll need to check with your existing ISA manager if there’s a cost for transferring out of your current plan. You should also be aware that during the time it takes to transfer, your money won’t be invested. So you may miss out on any increase in its value, but you also won’t lose if it decreases. You are also free to transfer your Prudential ISA to another ISA manager at any time and there is no charge for transferring out. There may be circumstances where a transfer out may have to be delayed, but this won’t exceed any maximum term imposed by regulations.

However, unlike most other Stocks and Shares ISAs, the Prudential ISA also offers;

Access to the PruFund
range of funds

PruFund smoothing process

The PruFund range of funds invest in the Pru’s With-Profits Fund – one of the largest with-profits funds in the UK. Which could help protect you from some of the short-term ups and downs of direct stock market investments.

The Prudential ISA gives you access to a range of 17 funds, which vary in terms of the stocks and shares they hold, the different geographies and sectors they invest in, with different fund management styles and risk ratings. This gives you and your financial adviser the opportunity to choose the type of fund that best suits your needs.

The value of your investment can go down as well as up so you might not get back the amount you put in.

Your financial adviser will explain the fund options to you and what to consider in more detail. It’s also important that you regularly review your investments so that you get the best out of your plan.
 

Fund

PruFund Funds

WS Prudential Risk Managed Funds – Active Range

WS Prudential Risk Managed Funds – Passive Range

Cautious
Growth
Risk Managed*

*There are five funds available in each of the Risk Managed fund ranges, numbered 1-5. The numbering indicates the increasing level of investment risk associated with that fund (with 1 low and 5 high) relative to the other funds in the Risk Managed range.

PruFund funds
 

The PruFund Range

The PruFund range combine diversification, by investing in a wide range of different assets, with an established smoothing mechanism, which aims to protect you from some of the short-term ups and downs of direct stock market investments.
PruFund Risk Managed 1
PruFund Risk Managed 2
PruFund Risk Managed 3
PruFund Risk Managed 4
PruFund Risk Managed 5
PruFund Growth
PruFund Cautious

What can PruFund offer you: the PruFund range offer the following benefits;

  • Designed to suit different attitudes to risk and return
  • Aim to smooth out some of the short-term highs and lows of investment performance
  • Access to a wide range of investments – including some which individual investors may not be able to access
  • A spread of diversified investments – this could help offset poor performance in one asset type with good performance in another
  • Economies of scale – investment costs are spread over many investors.
  • Actively managed by skilled investment experts within the M&G Treasury and Investment Office (T&IO).

WS Prudential Risk Managed Range
 

The WS Prudential Risk Managed Range

The WS Prudential Risk Managed range are operated by Waystone Management (UK) Limited (WMUK) and are multi-asset funds which have full exposure to the ups and downs of the investment market, but the individual funds are managed to an agreed level of risk and measured by volatility.
Passive range Active range
Risk Managed Passive 1 Risk Managed Active 1
Risk Managed Passive 2 Risk Managed Active 2
Risk Managed Passive 3 Risk Managed Active 3
Risk Managed Passive 4 Risk Managed Active 4
Risk Managed Passive 5 Risk Managed Active 5
Passive funds: passively managed funds employ an investment strategy where the aim is to replicate the performance of a specific market index e.g. the FTSE 100 Index. They don't require a Fund Manager or investment team to make investment decisions so are a cost-effective way to invest. Active funds: actively managed funds employ a fund manager or investment team to select the investments held within the fund. Relying on their expertise and knowledge the fund manager aims, through careful selection of investments, to provide enhanced investment returns.

Below we’ve provided some documents that provide more information on the Prudential ISA product and what it offers to help you discuss with your financial adviser. If your financial adviser recommends a Prudential ISA to you, they will provide you with all of the information and documentation relevant to your application;

  • Fund Guide – Prudential ISA PruFund Funds
    This guide provides information on the PruFund funds available in the Prudential ISA.

  • Your With-Profits Plan – a guide to how we manage the Fund
    This guide explains briefly how Prudential’s With-Profits Fund works and the current approach to managing it. If you are not investing in PruFund funds this document will not be relevant unless you decide to invest in PruFund funds.

  • Key Information Document (KID) and Investment Option Document (IOD)
    If you are interested in investing in PruFund funds, the KID, with regards the Life Insurance Policy, and the IODs with regards the individual PruFund funds, provide you with key information to help you decide if they are right for you. They aren’t marketing material, and the information is required by law to help you understand the nature, risks, costs, potential gains and losses of the product and to help you compare it with other products.
  • Key Investor Information Document (KIID)
    If you are interested in investing in the WS Prudential Risk Managed range, the KIID provides you with the key investor information about the fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this fund. If you are interested in these funds please speak to your financial adviser who will be able to provide you with the relevant.

How to apply?

If you're interested in the Prudential ISA please speak to your financial adviser.

If you don’t have a financial adviser, you can find more information here.