Important Information. Prudential ISA and LF Prudential OEIC Funds. Example Illustrations for Investment

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1 Important Information Prudential ISA and LF Prudential OEIC Funds Example Illustrations for Investment

2 Important information It s important for you to decide whether this product is right for you. If your was made on, or after, 1 January 2018, you should read your Key Information Document and relevant Investment Option Document(s). These include important information you will need to help you make up your mind. Please read these and keep them safe for future reference. The purpose of this illustration is to show you what you might get back if you were to invest single or regular s into some example funds. The projected values assume that no withdrawals have been taken. Please note: Inflation would reduce what you could buy in the future with the amounts shown. Your Prudential ISA/LF Prudential OEIC Funds have no fixed term. The figures in the tables in this document are only examples and are not guaranteed they are not minimum or maximum amounts you might expect to get back. Projections are calculated using a middle rate which we believe realistically reflects the potential of our products and funds. For this illustration, we are also required by our regulator to provide additional projections using assumed rates 3% either side of this middle rate. In some circumstances, yearly rates have been limited as required by our regulator. For funds in an ISA to 2% (lower rate), 5% (middle rate) and 8% (higher rate). For Funds outside an ISA to 1.5% (lower rate), 4.5% (middle rate) and 7.5% (higher rate). Please note that charges may vary by provider. What you get back depends on how your performs, any withdrawals you make and the charges. The value of your plan can go down as well as up and may even fall below the amount you invested what you get back is not guaranteed. You can keep your money invested in your account for as long as you want while the Prudential ISA remains open for. You will be sent statements every three months to allow you to keep track of your benefits. Please note that Link Financial Investments Limited is responsible for all regulatory and legal aspects of the ISA and the provision of all customer services, including issuing contract notes, statements and other post-sales communications. This is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax relief) depends on individual circumstances. The Prudential ISA is provided by Link Financial Investments Limited, who are the ISA Plan Manager. Link Fund Solutions Limited are responsible for the LF Prudential OEIC Funds. Telephone number for enquiries regarding both the Prudential ISA and LF Prudential OEIC Funds is: Calls may be monitored or recorded for quality and security purposes. 2

3 Charges and costs The charges and costs may vary in the future and they may be higher than they are now. Fund costs and charges listed in this guide are indicative, based on the current levels of costs, and are correct as at March For more information on PruFund charges and costs, please see your Key Information Document (KID), Fund Guide Prudential ISA PruFund Funds and the Master Insurance Agreement Customer Version. For more information on the charges relating to the LF Prudential OEIC Funds please see your Key Investor Information Documents for each fund (KIID) and prospectus. What are the charges and costs? Charges and costs are deducted from the funds to cover incurred expenses and charges. Adviser Charges will also be deducted that you ve agreed to pay your Adviser. For Prudential ISA PruFund Range of Funds examples are shown in Section 1 on pages 5 and 6. For Prudential ISA LF Prudential OEIC Funds examples, Ongoing Charges are shown in Section 2 on pages For LF Prudential OEIC Funds examples outside of an ISA, Ongoing Charges are shown in Section 3 on pages The examples in this document are based on an Ongoing Adviser Charge of 0.5% each year of the fund value. However, you can agree a different level of Ongoing Adviser Charge with your Adviser. You can cancel the Ongoing Adviser Charge at any point in the future. The figures in this document assume no Set Up Adviser Charge is facilitated. However, you can choose to pay any Set Up Adviser Charge on top of, or included in the amount you want to invest. Please contact your adviser if you have any queries. 3

4 We offer the following funds Fund Name PruFund Cautious Fund PruFund Growth Fund PruFund 0-30 PruFund PruFund PruFund LF Prudential Dynamic Focused 0-30 Portfolio LF Prudential Dynamic Focused Portfolio LF Prudential Dynamic Focused Portfolio LF Prudential Dynamic Focused Portfolio LF Prudential Dynamic Focused Portfolio LF Prudential Dynamic 0-30 Portfolio LF Prudential Dynamic Portfolio LF Prudential Dynamic Portfolio LF Prudential Dynamic Portfolio LF Prudential Dynamic Portfolio Product Availability ISA ISA ISA ISA ISA ISA The examples within this document are based on the PruFund Growth Fund, the LF Prudential Dynamic Focused 0-30 Portfolio and the LF Prudential Dynamic Portfolio. The Range of PruFund Funds For these Funds, the Annual Management Charge (AMC) is taken by the monthly cancellation of units from each. Any further costs shown cover expenses produced by the fund. LF Prudential OEIC Funds The Ongoing Charge figure includes the Annual Management Charge (AMC). It is disclosed in the LF Prudential Key Investor Information Document and is based on the total of all charge payments made over a year, and includes charges such as the fund s AMC, custodian charge, and administration fee. These figures are based on the R Accumulation Share class and may vary from time to time. The AMC covers the ongoing costs of a fund. This will include the costs of management and administration of the fund. The AMC is incorporated in the daily unit pricing for the LF Prudential OEIC Funds. 4

5 Section 1 Example Illustration for the PruFund Funds in the Prudential ISA The PruFund Range of Funds are provided by the Prudential Assurance Company Limited. Assuming an initial of 20,000, 100 each month regular and a 50,000 transfer value For the PruFund Funds in the Prudential ISA. The following figures should be taken into account when considering the impact of charges and costs on your into the PruFund Funds in the Prudential ISA. The figures calculated have not taken into account the effects of inflation. PruFund Growth Fund What I might get back? The table below provides examples of what you might get back if the initial of 20,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the PruFund Growth Fund with an AMC of 1.20% plus further yearly costs of 0.14% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Total paid in Assuming 2% Assuming 5% Assuming 8% Single premium 20, ,000 20,000 20,600 21, ,000 20,000 21,900 23, ,000 20,100 23,200 26, ,000 20,200 27,000 35, ,200 1,190 1,210 1, ,600 3,590 3,760 3, ,000 6,000 6,470 6, ,000 12,000 14,000 16,300 Transfer value of 50, ,000 50,000 51,500 53, ,000 50,200 54,700 59, ,000 50,300 58,200 67, ,000 50,600 67,700 89,700 5

6 Section 1 How much will the charges and costs affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 5% each year. The table assumes an in the PruFund Growth Fund with an AMC of 1.20% plus further yearly costs of 0.14% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Total paid in Total actual Effect of What you might get back Single premium 20, , , ,000 1,180 1,240 21, ,000 2,030 2,240 23, ,000 4,400 5,470 27, , , , , , , ,000 1,290 1,490 14,000 Transfer value of 50, , , ,000 2,960 3,110 54, ,000 5,090 5,610 58, ,000 11,000 13,600 67,700 What are the for? The include the AMC and further costs which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total, over 10 years, could amount to: Putting it another way, this would have the same effect as bringing the assumed used down from 5% a year, by the figures shown below to 3.10% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Single premium 20,000 Regular Investment 100 Transfer value of 50,000 Over 5 years Over 10 years 5,470 1,490 13, % 1.90% 6

7 Section 2 Example Illustration for the LF Prudential OEIC Funds in the Prudential ISA The OEIC Funds are provided by Link Fund Solutions Limited. Assuming an initial of 20,000, 100 each month regular and a 50,000 transfer value For the LF Prudential OEIC Funds in the Prudential ISA. The following figures should be taken into account when considering the impact of charges on your into the LF Prudential OEIC Funds within the Prudential ISA. The figures calculated have not taken into account the effects of inflation. LF Prudential Dynamic Focused 0-30 Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 20,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the LF Prudential Dynamic Focused 0-30 Portfolio with an Ongoing Charge including the Annual Management Charge of 1.10% and an Ongoing Adviser Charge of 0.5% each year. At end of year Investment Assuming 2% Assuming 5% Assuming 8% Single Premium 20, ,000 20,000 20,600 21, ,000 20,200 22,000 24, ,000 20,300 23,500 27, ,000 20,700 27,700 36, ,200 1,200 1,220 1, ,600 3,620 3,780 3, ,000 6,050 6,520 7, ,000 12,200 14,200 16,500 Transfer Value of 50, ,000 50,100 51,600 53, ,000 50,500 55,100 60, ,000 50,900 58,900 67, ,000 51,900 69,300 91,900 7

8 Section 2 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 5% each year. The table assumes an in the LF Prudential Dynamic Focused 0-30 Portfolio with an Ongoing Charge including the Annual Management Charge of 1.10% and an Ongoing Adviser Charge of 0.5% each year. At end of year Total paid in Total actual Effect of What you might get back Single Premium 20, , , ,000 1,030 1,080 22, ,000 1,780 1,960 23, ,000 3,880 4,810 27, , , , , , , ,000 1,110 1,270 14,200 Transfer Value of 50, , , ,000 2,580 2,710 55, ,000 4,450 4,900 58, ,000 9,700 12,000 69,300 What are the for? The include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total, over 10 years, could amount to: Putting it another way, this would have the same effect as bringing the assumed used from 5% a year down by the figures shown below to 3.30% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Single premium 20,000 Regular Investment 100 Transfer value of 50,000 Over 5 years Over 10 years 4,810 1,270 12, % 1.70% 8

9 LF Prudential Dynamic Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 20,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the LF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.90% and an Ongoing Adviser Charge of 0.5% each year. At end of year Investment Assuming 2% Assuming 5% Assuming 8% Single Premium 20, ,000 19,900 20,500 21, ,000 19,700 21,500 23, ,000 19,500 22,600 26, ,000 19,100 25,600 33, ,200 1,190 1,210 1, ,600 3,570 3,740 3, ,000 5,930 6,390 6, ,000 11,700 13,600 15,800 Transfer Value of 50, ,000 49,700 51,200 52, ,000 49,300 53,800 58, ,000 48,900 56,500 65, ,000 47,900 64,000 84,800 9

10 Section 2 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 5% each year. The table assumes an in the LF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.90% and an Ongoing Adviser Charge of 0.5% each year. At end of year Total paid in Total actual Effect of What you might get back Single Premium 20, , , ,000 1,530 1,600 21, ,000 2,620 2,880 22, ,000 5,580 6,950 25, , , , , , , ,000 1,610 1,860 13,600 Transfer Value of 50, ,000 1,240 1,240 51, ,000 3,830 4,020 53, ,000 6,550 7,220 56, ,000 13,900 17,300 64,000 What are the for? The include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total, over 10 years, could amount to: Putting it another way, this would have the same effect as bringing the assumed used from 5% a year down by the figures shown below to 2.50% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Single premium 20,000 Regular Investment 100 Transfer value of 50,000 Over 5 years Over 10 years 6,950 1,860 17, % 2.50% 10

11 Section 3 Example Illustration for the LF Prudential OEIC Funds (not held within the Prudential ISA) The OEIC Funds are provided by Link Fund Solutions Limited Assuming an initial of 20,000, 100 each month regular and a 50,000 transfer value For LF Prudential OEIC Funds only. The following figures should be taken into account when considering the impact of charges on your into LF Prudential OEIC Funds. The figures calculated have not taken into account the effects of inflation. LF Prudential Dynamic Focused 0-30 Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 20,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the LF Prudential Dynamic Focused 0-30 Portfolio with an Ongoing Charge including the Annual Management Charge of 1.10% and an Ongoing Adviser Charge of 0.5% each year. At end of year Investment Assuming 1.5% Assuming 4.5% Assuming 7.5% Single Premium 20, ,000 19,900 20,500 21, ,000 19,900 21,700 23, ,000 19,800 23,000 26, ,000 19,700 26,400 35, ,200 1,190 1,210 1, ,600 3,590 3,760 3, ,000 5,980 6,440 6, ,000 11,900 13,800 16,100 Transfer Value of 50, ,000 49,900 51,400 52, ,000 49,800 54,300 59, ,000 49,700 57,500 66, ,000 49,400 66,100 87,800 11

12 Section 3 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 4.5% each year. The table assumes an in the LF Prudential Dynamic Focused 0-30 Portfolio with an Annual Management Charge of 1.10% and an Ongoing Adviser Charge of 0.5% each year. At end of year Total paid in Total actual Effect of What you might get back Single Premium 20, , , ,000 1,020 1,070 21, ,000 1,750 1,910 23, ,000 3,770 4,590 26, , , , , , , ,000 1,080 1,230 13,800 Transfer Value of 50, , , ,000 2,560 2,670 54, ,000 4,390 4,790 57, ,000 9,440 11,400 66,100 What are the for? The include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of total, over 10 years, could amount to: Putting it another way, this would have the same effect as bringing the assumed used from 4.5% a year down by the figures shown below to 2.80% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Single premium 20,000 Regular Investment 100 Transfer value of 50,000 Over 5 years Over 10 years 4,590 1,230 11, % 1.70% 12

13 LF Prudential Dynamic Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 20,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the LF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.90% and an Ongoing Adviser Charge of 0.5% each year. At end of year Investment Assuming 1.5% Assuming 4.5% Assuming 7.5% Single Premium 20, ,000 19,800 20,400 20, ,000 19,400 21,200 23, ,000 19,100 22,100 25, ,000 18,200 24,400 32, ,200 1,190 1,210 1, ,600 3,550 3,710 3, ,000 5,860 6,310 6, ,000 11,400 13,200 15,400 Transfer Value of 50, ,000 49,500 51,000 52, ,000 48,600 53,000 57, ,000 47,700 55,200 63, ,000 45,600 61,000 81,000 13

14 Section 3 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 4.5% each year. The table assumes an in the LF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.90% and an Ongoing Adviser Charge of 0.5% each year. At end of year Total paid in Total actual Effect of What you might get back Single Premium 20, , , ,000 1,510 1,580 21, ,000 2,580 2,820 22, ,000 5,430 6,630 24, , , , , , , ,000 1,580 1,800 13,200 Transfer Value of 50, ,000 1,240 1,240 51, ,000 3,790 3,960 53, ,000 6,450 7,050 55, ,000 13,500 16,500 61,000 What are the for? The include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total, over 10 years, could amount to: Putting it another way, this would have the same effect as bringing the assumed used from 4.5% a year down by the figures shown below to 2.50% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Single premium 20,000 Regular Investment 100 Transfer value of 50,000 Over 5 years Over 10 years 6,630 1,800 16, % 2.00% 14

15 Glossary This is a summary explanation of the terminology used within this document and other terminology you may find useful. ISA ISA stands for Individual Savings Account. In an ISA, there is no liability to pay any Personal Income Tax or Capital Gains Tax on any profit you may make. There are two types of ISAs, stocks and shares, and cash both of which have limits. Investments held in ISAs are often described as wrapped s. OEIC Funds Open Ended Investment Company (OEIC) Funds are a type of open-ended collective. The terms OEIC, collectives, and fund are used interchangeably with different managers favouring one over the other. The LF Prudential OEIC Funds within an ISA allows the account holder to invest money without having to pay Income and Capital Gains Tax on any income or. The OEIC Funds outside of an ISA could be subject to personal tax. The LF Prudential OEIC Funds are available as an within the Prudential ISA or as stand alone s outside of the Prudential ISA. 15

16 pru.co.uk Prudential is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. GENM /2018