PruFund range of funds

Transcription

1 PruFund range of funds Prudential Financial Planning

2 2 The Market Context Keeping all your savings in a deposit account or cash investment is secure and may be easy to access. However Returns can be low Of course a high interest deposit account or a Cash ISA is a sensible and secure home for what you might call your "ready" or emergency cash. For many, the offer of instant access, knowing your capital is secure, or the tax efficiencies of a Cash ISA has great appeal. And it's always a good idea to have a cash safety net to help with any unexpected emergencies. However over and above this emergency cash, it may not be the most appropriate place for any additional money you may have. Returns, even in socalled high interest accounts, can be low. And this particularly holds true in the current low interest rate environment. Inflation eats away at the buying power As long as you have enough to cover any unexpected emergencies, it might be timely to look again at whether your money is in the best place. That's because if inflation is higher than your rate of return, it will eat away at the buying power of your money in cash-based savings such as deposit accounts. The overall result is simply that at the end of the investment term, you can buy less with your money than you would have been able to do at the beginning.

3 3 The effect of inflation on a deposit account example The graph below illustrates the performance of the Moneyfacts 90 Days notice accounts over time compared to the effect of inflation (as represented by the UK Retail Prices Index (RPI)). The Moneyfacts 90 Days notice accounts is shown here as an example of deposit accounts performance. The graph shows that from early 2010 onwards, the buying power of your money would have been declining during this time. 13,500 13,000 UK Retail Prices Index 12,500 12,000 11,500 Moneyfacts 90 Days notice accounts 11,000 10,500 10,000 9,500 May 07 May 08 May 09 May 10 May 11 May 12 May 13 May 14 May 15 May 16 May 17 UK Retail Prices Index Moneyfacts 90 Days notice accounts The graph shows the gross returns from 01 May 2007 to 02 May 2017 for 10,000 in the Money Facts 90 Days notice accounts; the UK Retail Prices Index is shown for the same period. Both are in Pounds Sterling. Source: Financial Express, as at 1 June Past performance is not a reliable indicator of future performance.

4 4 At the opposite end of the scale, direct investment in equities, property and other investment types could provide you with attractive returns, but at what risk? Concerned about falls in investment performance? Direct investment in equities, property and other investment types gives you access to potentially higher returns than saving in a deposit account and may build your money over the medium to long term (that is, five to 10 years or more). However, investment performance can fall, which then means the value of your investment could drop too. This is a level of risk that you may not be comfortable with. The risk of getting your investment timing wrong No-one can confidently predict when investment performance will fall. If you were unfortunate enough for it to occur just before you need to cash in your investment, you could find the overall returns on your money are low. The illustration below shows an example of the rises and falls of the UK stockmarket over time. So, for example if you bought equities at a high point circled in purple below and you were able to sell at the higher point circled in red below, you could potentially have gained some investment growth. But if you sold at the point circled in blue below, you could have lost some of your money. 80% 60% Sold Percentage growth or loss 40% 20% 0% -20% Bought -40% Sold -60% May 07 May 08 May 09 May 10 May 11 May 12 May 13 May 14 May 15 May 16 May 17 Year FTSE 100 Index Here's an example of how an equity-based investment can rise and fall over time. The graph shows the performance of FTSE100 Index from 15 May 2007 to 15 May Source: Financial Express as at 25 May Past performance is not a reliable indicator of future performance.

5 PruFund range of funds 5 PruFund can provide an alternative for investors Deposit accounts or Cash ISAs can be secure places for your capital, but returns from these can be low. And at the other end of the scale, direct investment (in equities, property and other investment types) can provide higher returns but come with higher risks. Investing in the PruFund range of funds can provide you with the potential for investment growth and each PruFund also offers you the potential for fewer short-term highs and lows than would typically be experienced from direct investment. Investing is essentially about balancing the investment risk you are comfortable with alongside the potential rewards you want to achieve. You should also bear in mind that the value of your investment can fall as well as rise and you may not get back the amount you invested. The PruFund range of funds invests in Prudential s With-Profits Fund, one of the largest and financially strongest With-Profits funds in the UK. Here s a summary of the benefits offered by the PruFund range of funds: > The PruFund range of funds is designed to suit different clients attitudes to risk and reward, and for those wishing to invest for five to 10 years or more. > The potential for growth, but with lower risk than buying equities in a single company. > Each PruFund uses a smoothing process which aims to smooth some of the extreme 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 these 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. > Some of the funds provide guarantees of the return of your original investment at a set date. And they also can offer income guarantees. These funds are not available through an ISA and there is a charge for the guarantees. Please see the following pages for further explanation of the above points. The returns for each of the PruFunds may differ from returns from the With-Profits Fund due to the smoothing process used and the differences in asset mixes and fund objectives between the funds. For more details, please see page 8, or the brochure "Your With-Profits Plan a guide to how we manage the Fund, PruFund range of funds".

6 6 PruFund range of funds How does PruFund invest? The PruFund range of funds invests in the Prudential With-Profits Fund. Your money is pooled together with that of other With-Profits plan-holders in your chosen PruFund. Please see the brochure "Your With-Profits Plan a guide to how we manage the Fund, PruFund range of funds" for more details. Your money is used to buy a large spread of different types of investments (often described as asset classes). There are a number of benefits to this: Reducing risk by investing in a diversified mix of asset classes Each of the individual PruFunds invest in a spread of different types of investments (or 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. Investing does, however, carry risks and you may not get back all that you invested. Increasing the potential to benefit from higher performance and reducing the risk of exposure to poorer performance The graph on the page opposite demonstrates that when one asset class is performing well, another may be performing less well, and their relative positions could be reversed in future years. Like many other multi-asset funds, each PruFund is spread across a number of different asset classes, so there is a greater opportunity to benefit from potential investment growth and reduced risk of full exposure to lower performing asset classes. Of course this also means that you might not benefit from all of the investment growth because you hadn't invested all your money directly in one of the strongly performing asset classes. The key to successful investing is therefore to find the correct balance for you between potential reward and risk. Access to the potential of investments a private investor may not normally be able to access Through the Prudential With-Profits Fund, PruFund gives you access to very specialist investments which add greater diversity to the funds. These include investments in the UK such as schools as well as a diverse range of Europe-wide developments, including investments in renewable energy, utility service providers and large, economically and socially important investments. There are also large property investments such as the NatWest Buildings in Bankside, London and The Bluewater Shopping Centre as at 12 April Strong investment management and controls A key benefit of the PruFund range of funds is the management of their asset allocation by Prudential Portfolio Management Group Limited (PPMG). PPMG also monitor the underlying fund managers of the PruFunds range of funds. PPMG is a team of around 80 that includes experienced investment professionals with specialist expertise in capital markets research, manager research, investment strategy design, liability management, alternative investments and portfolio management. Their role is to ensure that the funds are actively managed in a way that aims to deliver what investors expect. As well as setting and actively monitoring the investment strategy they have strong governance and controls around how the funds are managed. This includes a risk management team independent of the portfolio managers as well as a compliance team all focused on ensuring each fund is managed in a controlled and appropriate manner. Whilst there are benefits, there are also risks as investment returns are not guaranteed. The value of investments can go down as well as up and may even fall below the amount you invested.

7 PruFund range of funds 7 An example of the volatile behaviour of single asset classes over 10 years The graph shows an example of the volatile behaviour of investments over a 10-year period as demonstrated by ABI sectors. These group together funds that are similar Corporate Bonds Sterling Corporate Bond Government Bonds UK Gilts Equities UK All Companies 40 Percentage Growth 20 0 Commercial Property UK Direct Property Cash-based investments Deposit & Treasury May 07 May 08 May 09 May 10 May 11 May 12 May 13 May 14 May 15 May 16 May 17 Important note: The graph shows gross returns for the sector averages from 25 May 2007 to 25 May 2017, from the Association of British Insurers (ABI) Pensions universe. Source: Financial Express as at 1 June Past performance is not a reliable indicator of future performance. Investments can go down as well as up and may even fall below the amount you invested.

8 8 PruFund range of funds The PruFund smoothing process The aim of the smoothing process is to smooth some of the extreme short-term ups and downs of investment performance. The smoothing process sets out an Expected Growth Rate for each PruFund and then compares that rate to how each fund is actually performing, making adjustments where necessary. This means that you would potentially not benefit from the full upside of rises in investment performance, or suffer from the full downside of falls in investment performance, which can help to provide more stable returns. Smoothing can be suspended under certain circumstances. How the PruFund range of funds is expected to perform A key downside of many investments is that an investor has little or no information on how their funds could perform in the future. The PruFund range of funds is different, as Prudential publishes Expected Growth Rates (EGRs) for each fund. The EGRs reflect our view of how we think the assets of each PruFund will perform over the long-term (up to 15 years). This is the annualised rate at which your investments would normally grow. Each PruFund has its own EGR and investments into each PruFund will normally grow daily by the relevant EGR. Although Prudential takes a long-term view, they do review the rates every three months to allow for any changes, which may mean a change in EGR on a quarterly basis, up or down. The EGR gives a smoothed return and an element of day-to-day predictability. Unit Price Adjustments Although Prudential uses a long-term view of performance to set EGRs, they also have to take into account shorter-term performance. On a daily basis, if the shorter-term performance differs too much from the current Expected Growth Rate, the value of your fund would be amended to make sure neither too little nor too much is returned to you. These are called Unit Price Adjustments and they help to ensure all investors are treated fairly. The graph on page 9 shows an example of the PruFund smoothing process including Unit Price Adjustments. When you first invest Your investment will initially be invested in a holding account called a PruFund Account and switched to your chosen fund on the next PruFund Investment Date. While the investment is in a PruFund Account, it increases daily in line with the Expected Growth Rate applicable to that Account. During this time, product charges will be applied, but the investment will not be subject to any Unit Price Adjustments or suspension of smoothing. There is an associated PruFund Account for each fund in the PruFund Range of Funds. The value of an investment may fall as well as rise and may even fall below the amount you invested. Please see the brochure Your With-Profits Plan a guide to how we manage the Fund, PruFund range of funds for more information, including more detail on the timing and extent of any required Unit Price Adjustments. There may be occasions when Prudential has to suspend the smoothing process for one or more of the PruFunds, to protect the 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 is reinstated. You would receive no notification of any suspension of smoothing.

9 PruFund range of funds 9 An illustration of how PruFund smoothing could work Value When you enter or leave the fund the Smoothed Value may be higher, lower or equal to the Unsmoothed Value Smoothed Value Unsmoothed Value In this chart, the Smoothed Value increases in line with the fund's Expected Growth Rate Examples of Unit Price Adjustments Time This chart is for illustrative purposes only it s not representative of any particular time period or investment performance. Its sole aim is to explain how smoothing works. Please see the brochure "Your With-Profits Plan a guide to how we manage the Fund" for more information.

10 10 PruFund range of funds PruFund can help reduce the risk of getting timing wrong For individual investors, one of the key risks is buying or selling investments at the wrong time. Many investors are attracted to investments when the market is doing well. However, this can mean that there is a risk of buying at the very peak of the market and if it then falls, it could take a long time to get back to that original value. Alternatively there is a risk that an investor could sell their investment when the value is at a low so they could lose out on the growth they had built up over the period of their investment. Whilst the timing risk cannot be eliminated completely, PruFund s smoothing process aims to reduce the impact of short-term highs and lows of the investment performance, which can help to reduce the full impact of this timing risk over the short-term. Economies of scale Your money is combined with that of other investors. This means that the normal costs associated with investing (for example the costs of buying and selling equities, property or other investments) are spread over many, many investors rather than one individual investor. Your adviser will explain the charges for your investment.

11 PruFund range of funds 11 A choice of funds for different attitudes to risk and individual investment aims Prudential Financial Planning can recommend a fund to match your individual investment aims, attitudes to risk and your capacity for loss. The Risk Managed PruFund Range of Funds We offer four Risk Managed PruFunds. All of the funds are smoothed and vary in terms of their investment mix (for example some have a higher investment in equities than others). With the different funds available, we can make recommendations to you to meet different requirements for risk and potential return. Each of the Risk Managed PruFunds aim to achieve long-term (10 years or more) total returns and are actively managed. Your Prudential Financial Planning adviser will provide you with full details of the fund objectives when they make a recommendation. Obtaining a clear understanding of a client's attitude to risk and capacity for loss are key elements of investment planning. Accordingly your Prudential Financial Planning adviser will explain what is meant by different levels of risk profiles when you meet, and they'll recommend funds that could be right for you. Prudential Financial Planning advisers are qualified and experienced in financial planning and can advise on a range of carefully selected products from Prudential and other providers. This is known as a restricted advice service. PruFund 0-30 PruFund PruFund PruFund Can have from 0% to 30% invested in equities and includes exposure to other lower risk assets including some that are cash-based. This fund has the lowest equity investment of the Risk Managed PruFund range. Can have 10% to 40% invested in equities, so slightly more than PruFund 0-30 and also has a bias towards lower risk assets including cash and bonds. The fund also invests in bonds, property and cash etc. Can have 20% to 55% invested in equities. The fund also invests in bonds, property and cash etc and is well diversified in exposure to UK and international assets. Can have 40% to 80% of the fund invested in equities. The fund also invests in bonds, property and some specialist investments, with a bias towards assets such as equities. This fund has the highest equity investment of the Risk Managed PruFunds range.

12 12 PruFund range of funds PruFunds with guarantee options If you would like the potential for both growth and a degree of security against losing money, we can offer you the choice of two PruFunds with guarantee options for an extra charge. These funds can help clients who want the added safety net of a guarantee for their investment at the end of a selected term these provide a degree of security against potential market falls. If you invest in one of these funds, your initial investment is guaranteed, so that your plan is worth at least your initial investment at the end of the guarantee term. The Guaranteed Fund Value will be reduced proportionately for any advice charges, withdrawals or switches out between your investment and the Guarantee Date. The guarantee will only apply at the end of the selected guarantee term, and each guarantee has its own charge which is payable for the whole term. Your Prudential Financial Planning adviser will explain this and any other product or advice charges that may apply to your investment. These funds are not available through an ISA. The two PruFunds Prudential Financial Planning offers with guarantees are: PruFund Cautious Fund PruFund Growth Fund 25.4% invested in equities as at end March This can change and will be consistent with the fund objectives. 49.7% invested in equities as at end March This can change and will be consistent with the fund objectives. For these two funds, the amount invested in equities can change they do not have equity limits in the same way as the Risk Managed PruFunds. Please see the leaflet The PruFund Range of Funds: Guarantee Options" for more information on guarantee terms etc.

13 PruFund range of funds 13 How do the four funds in the Risk Managed PruFund range compare? The following pages show how the Risk Managed PruFund range of funds has performed since they were launched in November As you can see, the level of growth since launch is different for each of the four Risk Managed PruFunds. PruFund for example has grown the most since launch because it is the PruFund with the highest amount invested in equities, and equities have performed better over this period than other investment types. However, PruFund also carries the most risk of investment loss because of its larger exposure to equities. As a result the performance may be more volatile (rising and falling more) than the lower equity funds. As another example, PruFund 0-30, the fund in the Risk Managed range with the lowest amount invested in equities, has grown the least since launch because of the lower exposure to the growth of equities during the period. However, PruFund 0-30 has a lower risk rating because of the lower exposure to equities. As a result the performance may be less volatile than the higher equity funds. For all of the Risk Managed PruFunds, the graphs on pages 15 and 17 show that the returns have been smoothed and do not have the short-term highs and lows normally associated with direct investments. The value of an investment can go down as well as up and the value in the future may even fall below the amount you invested. For the Risk Managed PruFund range of funds, what you receive will depend on the value of the underlying investments, the Expected Growth Rates as set by the Prudential Directors, charges, the smoothing process and when you take your money out.

14 14 PruFund range of funds A comparison of the returns a client could have received if they had invested 10,000 in each of the PruFunds Flexible Retirement Plan pension example: 10,000 invested on 15 May 2012* Fund Year 1 Year 2 Year 3 Year 4 Year 5 15 May 2012 to 15 May 2013 Policy Value Returns over year 15 May 2013 to 15 May 2014 Policy Value Returns over year 15 May 2014 to 15 May 2015 Policy Value Returns over year 15 May 2015 to 15 May 2016 Policy Value Returns over year 15 May 2016 to 15 May 2017 Policy Value Returns over year Total value of a 10,000 investment over the five-year period Total percentage returns on a 10,000 investment over the five-year period PruFund , % 11, % 12, % 12, % 13, % 13, % PruFund , % 11, % 12, % 12, % 13, % 13, % PruFund , % 11, % 12, % 12, % 13, % 13, % PruFund , % 11, % 12, % 13, % 14, % 14, % Important note: Flexible Retirement Plans are medium to long-term investments and are designed for those wishing to invest for five to 10 years or more. *We are showing actual returns based on five years and these figures assume the 10,000 was invested in the relevant Holding Account on 15th May 2012 and moved into the main fund on 25th May The table shows the smoothed returns of a 10,000 gross investment. The product Annual Management Charge of 1.45% has been deducted as a monthly regular withdrawal. Please note these figures do not include advice charges, so the amount you would have received would have been less than shown here. Your Prudential Financial Planning adviser will explain all the charges that will apply for your circumstances. Source: Prudential as at 17 May The table shows the returns over the five-year period from 15 May 2012 to 15 May Performance is shown on a bid to bid basis. This is an example for illustration purposes only. The value of your investment can fall as well as rise and you may not get back all that you invested. Past performance is not a reliable indicator of future performance.

15 PruFund range of funds 15 The returns of the Risk Managed PruFund Range of Funds since launch (Flexible Retirement Plan example) 85,000 80,000 PruFund ,000 PruFund Investment value 70,000 65,000 60,000 PruFund PruFund ,000 50,000 45,000 Dec 11 Apr 12 Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 May17 Year PruFund 0-30 PruFund PruFund PruFund Important note: Performance figures shown for illustration purposes only. The graph above shows an example of the growth of Risk Managed PruFunds since launch on 25 November 2011 to 31 May 2017 for a typical investment of 50,000 in the Flexible Retirement Plan. In this example, the base Annual Management Charge of 1.45% has been allowed for. Please note these figures do not include advice charges, so the amount you would have received would have been less than shown here. Your adviser will explain all of the charges that will apply for your circumstances. An ISA example would be different as different charges would apply. Source: Financial Express, 9 June The value of an investment can fall as well as rise and you may not get back the full value of your investment. Past performance is not a reliable indicator of future performance.

16 16 PruFund range of funds Prudential Investment Plan example: 10,000 invested on 15 May 2012* Fund Year 1 Year 2 Year 3 Year 4 Year 5 15 May 2012 to 15 May 2013 Policy Value Returns over year 15 May 2013 to 15 May 2014 Policy Value Returns over year 15 May 2014 to 15 May 2015 Policy Value Returns over year 15 May 2015 to 15 May 2016 Policy Value Returns over year 15 May 2016 to 15 May 2017 Policy Value Returns over year Total value of a 10,000 investment over the five-year period Total percentage returns on a 10,000 investment over the five-year period PruFund , % 11, % 11, % 12, % 12, % 12, % PruFund , % 11, % 11, % 12, % 12, % 12, % PruFund , % 11, % 12, % 12, % 13, % 13, % PruFund , % 11, % 12, % 12, % 13, % 13, % Important note: Prudential Investment Plans are medium to long-term investments and are designed for those wishing to invest for five to 10 years or more. *We are showing actual returns based on five years, and these assume the 10,000 was invested in the relevant Holding Account on 15th May 2012 and moved into the main fund on 25th May The table shows the smoothed returns of a 10,000 investment. The product Annual Management Charge of 1.35% has been deducted as a monthly regular withdrawal. Please note these figures do not include advice charges so the amount you would have received would have been less than shown here. Your Prudential Financial Planning adviser will explain all of the charges that will apply for your circumstances. Source: Prudential as at 17 May The table shows the returns over the five-year period from 15 May 2012 to 15 May Performance is shown on a bid to bid basis. This is an example for illustration purposes only. The value of your investment can fall as well as rise and you may not get back all that you invested. Past performance is not a reliable indicator of future performance.

17 PruFund range of funds 17 The returns of the Risk Managed PruFund Range of Funds since launch (Prudential Investment Plan example) 75,000 PruFund ,000 PruFund Investment value 65,000 60,000 55,000 PruFund PruFund ,000 45,000 Dec 11 Apr 12 Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 May17 Year PruFund 0-30 PruFund PruFund PruFund Important note: Performance figures shown for illustration purposes only. The graph above shows an example of the growth of Risk Managed PruFunds since launch on 25 November 2011 to 31 May 2017 for a typical investment of 50,000 in a Prudential Investment Plan. In this example, the base Annual Management Charge of 1.35% has been allowed for. Please note these figures are before advice charges have been deducted, so the amount you would have received would have been less than shown here. Your adviser will explain all of the charges that will apply to your circumstances. Source: Financial Express, 9 June The value of an investment can fall as well as rise and you may not get back the full value of your investment. Past performance is not a reliable indicator of future performance.

18 18 PruFund range of funds Expected Growth Rates since launch for Flexible Retirement Plan and Prudential Investment Plan Each quarter, Prudential publishes their view on how they expect the PruFund Range of Funds to perform these are known as Expected Growth Rates. These are based on how Prudential expects the assets of each PruFund to perform over the long-term (up to 15 years). The following tables show both the current, and historical Expected Growth Rates for Flexible Retirement Plan and Prudential Investment Plan which Prudential has announced since launch (as at the end of May 2017) and illustrates that the Expected Growth Rates can change. The movement can be up or down. The Expected Growth Rates are the annualised rates at which your investment would normally grow. Every day, Prudential reviews the fund performance and, where necessary, will make adjustments to your fund value these are called Unit Price Adjustments and could be up or down. This means that the investment performance you receive could be higher or lower than the Expected Growth Rate. The smoothing process can be suspended under certain circumstances. Every three months, the Expected Growth Rates are reviewed by the Prudential Directors and can change. The dates in the following tables therefore show only when the rates were reviewed and there was a change made. Please see page 8 for more detail on Expected Growth Rates and Unit Price Adjustments, what happens when you first invest and why Prudential may suspend the smoothing process.

19 PruFund range of funds 19 Historical and current Expected Growth Rates Flexible Retirement Plan example When the Expected Growth Rates have changed PruFund 0-30 PruFund PruFund PruFund Launched in Nov 2011 at Nov 2012 to May 2013 to May 2014 to Nov 2014 to Feb 2016 to May 2016 to Aug 2016 to May 2017 to 7.40% 7.10% 6.90% No change 6.40% 6.30% 5.80% 5.40% 5.10% 7.80% 7.40% 7.20% 7.30% 6.90% 6.70% 6.10% 5.70% 5.50% 8.00% 7.70% 7.50% 7.60% 7.10% 6.90% 6.40% 6.10% No change 8.20% 7.90% 7.80% 7.90% 7.40% 7.20% 6.70% 6.30% No change When the Expected Growth Rates have changed PruFund Cautious Launched in Nov 2009 at Nov 2012 to May 2014 to Nov 2014 to Feb 2016 to May 2016 to Aug 2016 to 7.50% 7.00% 7.20% 6.70% 6.50% 6.00% 5.50% When the Expected Growth Rates have changed PruFund Growth Launched in Nov 2008 at Nov 2009 to Nov 2012 to May 2014 to Nov 2014 to Feb 2016 to May 2016 to Aug 2016 to 8.00% 7.90% 7.50% 7.70% 7.30% 7.10% 6.60% 6.20% The details in the table above are as at end of May The Expected Growth Rates shown are before the deduction of the Flexible Retirement Plan Annual Management Charge and adviser charges. As explained on page 8, the possible application of Unit Price Adjustments means that the investment performance which you receive may be higher or lower than the Expected Growth Rate.

20 20 PruFund range of funds Historical and current Expected Growth Rates Prudential Investment Plan example When the Expected Growth Rates have changed PruFund 0-30 PruFund PruFund PruFund Launched in Nov 2011 at Nov 2012 to May 2013 to May 2014 to Nov 2014 to Feb 2016 to May 2016 to Aug 2016 to May 2017 to 6.00% 5.70% 5.60% No change 5.20% 5.10% 4.70% 4.30% 4.10% 6.40% 6.00% 5.90% 6.00% 5.60% 5.40% 5.00% 4.70% 4.50% 6.60% 6.30% 6.10% 6.20% 5.80% 5.70% 5.30% 5.00% No change 6.70% 6.60% 6.40% 6.50% 6.10% 5.90% 5.50% 5.30% No change When the Expected Growth Rates have changed PruFund Cautious Launched in Nov 2009 at Nov 2012 to May 2014 to Nov 2014 to Feb 2016 to May 2016 to Aug 2016 to 6.10% 5.70% 5.80% 5.40% 5.30% 4.90% 4.50% When the Expected Growth Rates have changed PruFund Growth Launched in Nov 2008 at May 2009 to Nov 2009 to Nov 2012 to May 2014 to Nov 2014 to Feb 2016 to May 2016 to Aug 2016 to 6.85% 6.70% 6.60% 6.20% 6.40% 6.00% 5.90% 5.50% 5.10% The details in the table above are as at end of May The Expected Growth Rates shown are before the deduction of the Prudential Investment Plan Annual Management Charge and adviser charges. As explained on page 8, the possible application of Unit Price Adjustments means that the investment performance which you receive may be higher or lower than the Expected Growth Rate.

21 PruFund range of funds 21 Prudential has been providing financial security since 1848 Prudential is a leading life and pensions provider to approximately six million customers in the United Kingdom, with expertise in areas such as longevity, risk management and multi-asset investment. Prudential s heritage, prudence and relentless focus on the customers long-term needs ensures that people continue to turn to Prudential as a trusted brand to help them plan for today and their future. Prudential is part of Prudential plc, an international financial services group with significant operations in Asia, the US and the UK. Prudential serves around 24 million insurance customers internationally and has 599 billion assets under management, as at 31 December 2016.

22 22 PruFund range of funds Further information Prudential Financial Planning advisers are qualified and experienced in financial planning and can advise on a range of carefully selected products from Prudential and other providers. This is known as a restricted advice service. We provide fund recommendations to all our investment clients as part of their individual financial plan, including where to invest such as in an ISA, a pension plan, or investment plan etc. If you have any queries or questions, please contact your Prudential Financial Planning adviser. You can also contact us on , Monday to Friday 9am to 5pm. Calls may be monitored for quality and security purposes.

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24 Prudential is a trading name of Prudential Financial Planning Limited. Prudential Financial Planning Limited is registered in England and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number Authorised and regulated by the Financial Conduct Authority. PFPB /2017