Prudential International Investment Bond

The Prudential International Investment Bond offers access to a wide range of unit-linked investment funds with the aim of increasing the value of the money your clients invest over the medium to long term (5-10 years).

The Prudential International Investment Bond is available as either:

• A Life Assured option - a whole of life contract written on a single, joint life first death or joint life last survivor basis , or

• A Capital Redemption option (CRO) – a non-life assured contract with a fixed term of 99 years.

Your clients need to pay a single premium of at least £20,000, €25,000 or US$35,000 when they take out their bond.  

For the Life Assured option, there is no set investment term of the bond. Both versions of the bond are set up as a group of identical policies, normally 20, available up to 100. Your clients can choose to cash in each policy separately, helping them withdraw money in a tax efficient way. 

For more detail on the Life Assured option, download our Key Features document (PDF).

For the Capital Redemption option, the bond has a fixed term of 99 years, although it can be encashed at any time. If it is continued for the full term, it will pay a guaranteed minimum amount at maturity. This option can be particularly attractive for trusts, allowing the trustees to choose when to cash it in or instead to keep it going through successive generations.

For more detail on the Capital Redemption option, download our Key Features (Capital Redemption Option (PDF).

The Prudential International Investment Portfolio can be written as the following trusts if your client requires Inheritance Tax planning options.

• Discounted Gift Trust*
• Loan Trust*
• Gift Trust*
• Excluded Property Trust
• Probate Trust
• Bare Trust for Settlor (PDF)

* Absolute and Discretionary.

The owner of the bond must be at least 18 years old at entry. The bond is available to individuals, trustees and corporate Investors and there is a maximum of 10 lives assured.  

Life Assured option

Single life basis - minimum age at entry is three months attained and maximum age is 89 years.

Joint life first death basis - lives assured must be between three months and 89 years when the bond is taken out.  

Joint life last survivor basis - minimum age at entry is three months attained and at least one life assured must be less than 90 when the bond is taken out.

Initial premium: £20,000, Euro €25,000 or US$35,000 after any set-up charges.

Additional premium (top-ups): £15,000, Euro €20,000 or US$25,000. Please note top-ups are not allowed into a PruFund Protected fund.

The maximum total investment across the PruFund Range of Funds is £1,000,000, €1,500,000 or US$1,500,000.

There is no maximum for the other funds but if your client wishes to invest more than £1,000,000 you should contact us first. 

Clients can:

• Cash in the bond at any time

• Take regular withdrawals - monthly, quarterly, six-monthly or annually

• Take a one-off withdrawal as a specific amount

• Withdraw up to 5% per year free from any immediate Income Tax liability

There are limits to how much your client can withdraw and how much must be left in the bond following a withdrawal. There are restrictions on when money can be moved out of the PruFund range of funds.

Learn more about withdrawals for the Prudential International Investment Bond in our Key Features document (PDF).

The Prudential International Investment Bond offers an Annual Investment Reward for larger premiums (over £50,000, €62,500 or US$75,000). The premium is the amount invested into your clients bond, after any Set-up Adviser Charge has been paid. The reward is credited each year, on the anniversary of the investment.

Learn more about the Annual Investment Reward feature in our Fast Facts document (PDF).

Thanks to Prudential International's location in Dublin, the underlying funds are subject only to withholding tax. As a result, investments have the potential to grow faster than in an onshore bond.

Learn more about tax advantages with the Prudential International Investment Bond in our Key Features document (PDF).

Your clients can invest and take withdrawals in any of 11 different currencies, including UK Pounds Sterling, US Dollars and Euros. This gives your clients an opportunity to match investments to their circumstances.

There is a wide range of investments for your clients to choose from with access to Prudential’s multi-asset fund range, including our unique investment funds, the PruFund range of funds as well as our Risk Managed Active and Risk Managed Passive funds. Your client can choose up to 10 at a time to suit their needs and preferences.

Investment options include:

• PruFund Range of Funds available in a choice of Sterling, Euro and US Dollar denomination.
  

• Access to five Risk Managed Active and two Risk Managed Passive funds with different levels of risk and potential return.

• A range of other unit-linked funds.

Download the fund guide (PDF) for more information on investment options.

We announce the Expected Growth Rates that apply to the PruFund Range of Funds every quarter.

View the Expected Growth Rates, Historic Expected Growth Rates or Unit Price Adjustments for the PruFund Range of Funds.

The PruFund Protected Funds are currently unavailable to new investments.

The PruFund Protected Funds include a range of guarantee options for an additional charge. We offer guarantee terms on both our Cautious and Growth funds through the Prudential International Investment Bond.

Applicable charges include:

• Annual Management Charge
  
• Fund switching charges
  
• Charges for guarantees (if taken)
  
• Adviser Charges
  

All of the funds have an Annual Management Charge (AMC). In addition to our charges, there may be further costs incurred, which can vary over time. Where these are applicable, they are paid for by the relevant fund and will impact on its overall performance.

The Annual Management Charges and the current expected level of these further costs are set out in the current "Statement of Charges" for this product but they may vary over time.

Your clients can switch money between funds without charge up to 20 times in any 12 month period, after that we’ll apply a charge.

For more details of these charges, refer to the Key Features document (PDF).

The PruFund Protected Funds are currently unavailable to new investments.

The PruFund Protected Funds have an additional annual charge for the guarantee. We take this charge monthly in arrears by cancelling units.