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The PruFund range of funds

The PruFund range of funds

PruFund funds aim to grow your client's money while giving them a smoothed investment experience.

  • A choice of funds available

  • Multi-asset funds

  • Smoothing process

Fund details

The PruFund range of funds

The PruFund range of funds aim to grow your client's money over the medium to long term (5 to 10 years or more), while protecting them from some of the short-term ups and downs of direct stockmarket investments by using an established smoothing process.

PruFund funds are invested in the Prudential With-Profits Fund, which is one of the largest and financially strongest with-profits funds in the UK. There are differences across the range of PruFund funds in their objectives and mix of assets, and how PruFund delivers returns to investors when compared to other With-Profits business, which means the returns received by investors will vary by fund choice.

PruFund funds are multi-asset funds. Each of the individual PruFunds invest in a spread of different types of asset classes. The four main asset classes are Equities, Commercial Property, Bonds (Corporate and Government) and Cash. By spreading the investment across these asset classes, the rises and falls (or volatility) associated with investing in a single asset class can be reduced.

Please remember that the value of investments can go down as well as up, your client may not get back what they have paid in.

Smoothing

Our established smoothing process uses Expected Growth Rates, and where required, Unit Price Adjustments, to deliver a smoothed investment journey. 

View A Step by Step guide to the PruFund smoothing process (PDF)

Can we reset the smoothed price?

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 of the affected fund would be adjusted to be the same value as the unsmoothed price on that working day. That adjusted smoothed price will then continue to grow in line with the Expected Growth Rate from the working day after this reset of the smoothed price. This is referred to as a Unit Price Reset in other literature.

Suspension of Smoothing

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 and those invested in it.

When this happens, the smoothed price for the affected fund(s) is set to the unsmoothed price for each day until the smoothing process in reinstated.

We will review the suspension of smoothing at least once every 30 days, and will reinstate smoothing when we consider it appropriate to do so. When the smoothing process is reinstated the unit price will start at the previous day's unit price.

Who manages the PruFund range of funds?

M&G Treasury & Investment Office (T&IO), monitor and manage the M&G plc Group fund managers responsible for the majority of underlying funds that these Multi-Asset funds invest in.

Fund availability

The following table shows fund availability for our key products.

  Prudential PruFund Growth Fund Prudential PruFund Cautious Fund Prudential Risk Managed PruFund Funds Prudential PruFund Planet Funds
Prudential Retirement Account
International Portfolio Bond  
Flexible Retirement Plan#  
Prudential ISA  
Prudential Investment Plan  
Prudential International Investment Bond*    
Trustee Investment Plan  

*Available with currency options for PruFund Growth Fund and PruFund Cautious Fund (Sterling, Euro, US Dollar).

# The Flexible Retirement Plan (FRP) closed to new business on 17 September 2018 but if your client is an existing FRP customer they can still make changes to their plan.

This is not a comprehensive list of the availability of these funds. Please refer to the appropriate fund guide or product information pages for more information. 

Retirement Account - PruFund Series D & Series E

Please note that there are two series of PruFund within Retirement Account, which have different investment date cycles. Customers are invested in either series as follows:

  • Series D - All investments made on or before 25 August 2017.
  • Series E - All investments made after 25 August 2017 (including fund switches and regular premium contributions).

Diversification

T&IO works closely with Prudential to set the overarching strategic asset allocation framework for the multi-asset fund range and for managing the asset allocation on an ongoing basis.

PruFund Global Diversification

Fund options

There is a range of PruFund funds designed to suit different attitudes to risk and reward, for those wishing to invest for 5 to 10 years or more. There are the five Risk Managed PruFund funds, five PruFund Planet funds and also the PruFund Growth and Cautious Funds, the latter two included guarantee options (at an additional charge). PruFund Protected Funds are currently closed to new investments.

Risk Managed PruFund funds

We have five Risk Managed PruFunds, designed to suit different attitudes to risk and reward. They all benefit from our established smoothing process and are aimed at investors looking to invest for 5 to 10 years or more.

These funds are numbered one to five based on how volatile we expect each fund to be after smoothing has been applied. For example, Prudential Risk Managed PruFund 1 has the lowest volatility limit of 9% after smoothing, and therefore has the lowest amount invested in assets. Prudential Risk Managed PruFund 5 on the other hand, has the highest volatility limit of 17% after smoothing, and has the highest amount invested in assets that are likely to be more volatile.

More about the << Risk Managed range >>

PruFund Planet funds

PruFund Planet is a range of five funds, each with their own risk profile, that seek to deliver positive environmental and societal outcomes, with similar returns, cost and volatility to our existing PruFund ranges. They are globally diversified across equities, fixed income, property and alternatives and predominantly invest in underlying funds that are not present in our existing PruFund ranges.

More about the <<PruFund Planet range>>

PruFund Growth Fund

The PruFund Growth Fund aims to maximise growth over the medium to long term (5 to 10 years or more) by investing in shares, property, fixed-interest and other investments. The fund currently invests in UK and international equities, property, fixed-interest securities, index-linked securities and other specialist investments.

PruFund Cautious Fund

The Prufund Cautious Fund aims for steady and consistent growth over the medium to long term (5 to 10 years or more) through a cautious approach to investing. The fund invests in UK and international equities, property, fixed interest securities, index-linked securities, cash and other specialist investments. The fund will aim to invest 50-75% in fixed interest securities, index-linked securities and cash, although we may occasionally move outside this range to meet the fund objectives.

Key documents

Adviser guides

Client guides

Your With-Profits plans

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. 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. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. 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.