Short Fund Guide. Prudential Investment Plan

Transcription

1 Short Fund Guide Prudential Investment Plan

2 Introduction This short fund guide gives you a list of funds you can choose from, an indication of the potential risk of each fund and information on fund charges. We suggest that you also read the full fund guide which you can get from your financial adviser. The full fund guide provides more information on the funds available, including the objective of each fund and its risk profile. Alternatively, you can visit to view this information. If there is information or terminology included that you would like to discuss, then please contact your financial adviser. Investing is about balancing the risk you are comfortable with alongside the potential rewards that you want to achieve. Your attitude to investment risk is personal to you and may change in the future. The table opposite can help illustrate this concept. It s not exhaustive, but covers a wide range of funds and investments and shows the general principle that, as the level for potential higher returns increases so does the level of risk. On pages 5 to 7 you can see how these potential numbers relate to our funds. Some key considerations: > The value of our funds may go down as well as up. You may not get back the full amount of your investment. > These risk rating categories have been developed by Prudential to help provide an indication of the potential level of risk that is attributable to a fund based on the type of assets which may be held within the fund. > Other companies may use different descriptions and as such these risk rating categories should not be considered as generic to the fund management industry. > Prudential will keep the risk rating categories under regular review and as such they may be subject to change in the future. > Where a risk rating is amended as a result of a material change in our view of the level of risk for the fund, for example due to a significant change to the assets held by the fund or in the way the fund is managed, information will be provided on the new risk rating. > Please remember that the name of a fund is not indicative of the risk that it may take. > We strongly recommend that before making any fund choice you ensure you understand the appropriate risk ratings. You will find this information in our fund guides, along with further information, at For further details of material fund changes then please visit Information is normally shown for one year. You should also consider discussing your decision with your financial adviser. It is important to also note that your adviser may make their own assessment of the risk rating of funds when considering your needs and objectives, and this may differ from Prudential s own internal assessment. The information included in this guide is correct as at 11 September 2017, unless an alternative date is stated. 2 Short Fund Guide: Prudential Investment Plan

3 Higher Rewards Lower Types of Fund * Single Country Equity Funds, International Equity Funds Flexible Investment Funds, Global Property Funds Mixed Investment 40-85% Shares Funds, Direct Property Funds, Global High Yield Funds Mixed Investment 20-60% Shares Funds, Distribution Managed Funds, Sterling High Yield Funds, Global Fixed Interest Funds, With-Profits Funds** Mixed Investment 0-35% Shares Funds, Sterling Fixed Interest Funds, Corporate Bond Funds, Protected/Guaranteed Funds Deposit & Treasury Funds, Money Market Funds Higher Risks Lower You can see a glossary of some investment terms at *Types of Fund These are predominantly based on sector classifications by the Association of British Insurers (ABI). The description used may match an individual ABI sector name or be a Prudential suggested description for a grouping of similar sectors. The only exception to this is With-Profits which is not classified by the ABI. Where a fund is classified by the ABI then we will use the sector it is in as a starting point to consider its appropriate position in the scale above. However each fund is considered individually and membership of an ABI sector does not automatically imply a particular potential number. ** With-Profits Funds PruFund funds invest in our With-Profits Fund and some appear in a lower or higher potential category. This is because of the different asset mix that applies to each PruFund fund. Please refer to the specific PruFund potential reward and on page 5. Our full fund guide provides further information on these funds. Short Fund Guide: Prudential Investment Plan 3

4 Fund information Important explanations The Fund Value The value of an investment can go down as well as up and the value in future may be less than the amount invested. For investments in the With-Profits Funds, the value of the plan depends on how much profit the fund makes and how we decide to distribute it. For the PruFund range of funds what you receive will depend upon the value of the underlying investments. The Expected Growth Rates are set by the Prudential Directors having regard to the investment returns expected to be earned on the assets of the funds over the long-term (up to 15 years), the smoothing process, whether you have chosen a Protected fund and when you take your money out. The guarantee, if applicable, is applied to your plan on the guarantee date. Please speak to your adviser or visit for more information on PruFund and how it works, including an explanation of Expected Growth Rates. Fund Charges Annual Management Charge We take a base Annual Management Charge (AMC) from each of the funds you invest in. This is the charge you pay to invest in a fund. Any additional charge covers expenses borne by the underlying fund. Together they add up to the Charge. These are shown on pages 5 to 7. If the AMC exceeds the return earned, the fund will go down in value. In general the AMC is taken by the deduction each day of 1/365th of the applicable Annual Management Charge, from the relevant unit linked fund. This differs slightly for With-Profits and PruFund. For With-Profits the annual charge applied will depend on the returns we achieve on our With-Profits funds. We expect the annual charge quoted on page 5, if the fund returns are 4.5% a year after tax. The annual charge, and charges to cover the cost of guarantees, are already taken into account when we calculate the bonus rates for our With-Profits Fund. For further details of the charges for this fund, please refer to the Key Features document or speak to your adviser. The AMC for the PruFund Funds is taken by the monthly cancellation of units from each investment. If you select a Protected PruFund Fund, you will be able to select from a range (where available) of guarantee terms, where the guarantee will only apply at the end of the selected guarantee term. Each guarantee term has its own additional charge and this will be payable for the whole of this term. For full details of the guarantee terms available and the associated charges, please refer to the document PruFund Range of Funds: Guarantee Options INVS You can get a copy of this from your adviser or from pru.co.uk. There is an additional charge to pay for the guarantees the With-Profits Fund supports. Please refer to your Key Features document or speak to your adviser for information on charges. Fund Charges for Unit-Linked Funds In addition to our management charges, there are further costs which impact the overall performance of the fund. All other charges, excluding dealing costs, as explained in the paragraph below, are shown on pages 5 to 7. When a fund manager trades the investments in your fund (for example, makes a decision to sell one holding and buy another) there are associated costs, for example taxes, which the fund pays. These costs are paid for out of the overall performance of the fund and are not included in the Charge section on pages 5 to 7. For funds that invest directly or indirectly (investment in property can be done either by investing directly (eg owning physical property) or indirectly (eg owning units in a property fund or shares in a property company)) in property there are additional costs incurred for the development, maintenance, operation and renovation of the properties held. These costs are known as property expenses, and are paid for out of the overall performance of the fund. These costs are included in the Charge section on pages 5 to 7. Your illustration will show the charges applicable to your chosen fund(s). Charges may vary in future and they may be higher than they are now. Please see your full fund guide for further information on additional fund charges for unit-linked funds. If you are in any doubt about this product, your fund choice or the charges applicable then we recommend you speak to your financial adviser. The fund charges listed in this guide are correct as at 11 September Further Information The Prudential funds in this guide may hold an element of cash due to the short delay between new investments being received by the Prudential fund and being placed in the underlying investment(s), and this may have an impact on the performance of the Prudential fund when compared to the underlying investment(s). You can find details of how we manage our unit-linked funds at pru.co.uk/ppfm/ul. You will also find there a shortened customer friendly version, our Customer Guide, which explains briefly how the Prudential unit-linked funds work, our current approach to managing them, and the standards and practices we use to manage the funds. Principally, this Customer Guide will explain: > the nature and extent of the decisions we take to manage the funds, and > how we treat customers and shareholders fairly. 4 Short Fund Guide: Prudential Investment Plan

5 Funds Funds Prudential Multi-Asset Funds Prudential PruFund 0-30* Prudential PruFund 10-40* Prudential PruFund 20-55* Prudential PruFund 40-80* Prudential PruFund Cautious* Prudential PruFund Growth* Prudential PruFund Protected Cautious* Prudential PruFund Protected Growth* Prudential With-Profits (Optimum Bonus)** Prudential With-Profits (Optimum Return)** Prudential Dynamic Focused Portfolios *** Prudential Dynamic Focused 0-30 Portfolio Prudential Dynamic Focused Portfolio Prudential Dynamic Portfolios *** Prudential Dynamic 0-30 Portfolio Prudential Dynamic Portfolio Prudential Dynamic Portfolio Prudential Dynamic Portfolio Prudential Dynamic Portfolio The PruSelect Range Prudential Artemis European Growth Prudential Artemis Global Growth Prudential Artemis High Income Prudential Artemis Income Prudential Artemis Strategic Bond Prudential Artemis UK Smaller Companies Prudential Artemis UK Special Situations Prudential Aviva Property Trust Prudential AXA Framlington UK Select Opportunities Prudential Baillie Gifford High Yield Bond The PruSelect Range continued Prudential BlackRock Gold & General Prudential BlackRock UK Prudential Fidelity European Prudential Fidelity MoneyBuilder Income Prudential Fidelity Asia Prudential Henderson Cautious Managed Prudential Henderson China Opportunities Prudential Henderson European Selected Opportunities Prudential Henderson Preference and Bond Corporate Bond Distribution Global Bond High Income Income Monthly Income Plus Prudential Investec Cautious Managed Prudential Investec Global Strategic Equity Prudential JP Morgan Europe Dynamic (ex UK) Prudential JP Morgan Natural Resources Prudential JP Morgan US Life Fund Prudential Jupiter European Special Situations Prudential Jupiter Merlin Balanced Portfolio Prudential Jupiter Merlin Growth Portfolio Prudential Jupiter Merlin Income Portfolio ^ Prudential Jupiter Merlin Worldwide Portfolio ^ Prudential Kames Ethical Equity * The Annual Management Charge for these funds is taken by monthly cancellation of units from each investment. ** Access to the Prudential With-Profits Optimum Return and Optimum Bonus Funds is no longer available to new customers investing in Prudential Investment Plan on or after 11/09/2017. However, if you are an existing customer pre 11/09/2017, you will still be able to top up or switch into the Prudential With-Profits Optimum Return Fund and the Prudential With-Profits Optimum Bonus Fund. *** Each portfolio is a single fund choice, although each portfolio will invest in a number of underlying funds. For consistency and transparency we show the Charges including property expenses. Property expenses capture all expenses associated with the management and operation of the property portfolio, that are unable to be charged onto tenants. ^ This fund is only open to existing investors in the fund. Short Fund Guide: Prudential Investment Plan 5

6 Funds Funds The PruSelect Range continued Prudential Kames Investment Grade Bond Prudential Kames Strategic Bond Prudential M&G Corporate Bond Prudential M&G Global High Yield Bond Prudential M&G Global Leaders Prudential M&G Recovery Prudential M&G Strategic Corporate Bond Prudential Man GLG Japan Core Alpha Prudential Newton Multi-Asset Balanced Prudential Old Mutual UK Mid Cap Prudential Royal London Sustainable Leaders Prudential Schroder Income Prudential Schroder Tokyo Prudential Schroder US Mid Cap Prudential Standard Life Global Absolute Return Strategies Prudential Stewart Investors Asia Pacific Leaders Fund Choice Prudential Aberdeen Japan Equity Prudential Artemis UK Select Prudential AXA Framlington Monthly Income ^ Prudential Baillie Gifford American Prudential BlackRock UK Special Situations Prudential Cash ^ Prudential Corporate Bond Prudential Equity Prudential European Prudential European Tracker Prudential Fixed Interest Prudential FP Verbatim Portfolio Prudential FP Verbatim Portfolio This fund is only open to existing investors in the fund. Fund Choice continued Prudential FP Verbatim Portfolio 5 Growth Prudential FP Verbatim Portfolio 5 Income Prudential FP Verbatim Portfolio Prudential FP Verbatim Portfolio Prudential Global Emerging Markets Portfolio Prudential Henderson European Growth Prudential International Managed Growth UK Growth Prudential Japanese Prudential Jupiter UK Growth Prudential Kames High Yield Bond ^ Prudential Kames UK Opportunities Prudential M&G Dividend Prudential M&G Episode Allocation Prudential M&G Episode Growth Prudential M&G Gilt & Fixed Interest Income Prudential M&G Managed Growth Prudential M&G Smaller Companies Prudential M&G UK Equity Income ^ Prudential M&G UK Select Prudential Managed Prudential Neptune Global Alpha ^ Prudential Neptune Global Equity ^ Prudential Newton Continental European Prudential Newton Global Equity Prudential Newton Global Income Prudential North American Prudential Pacific Markets Prudential Property Prudential Schroder UK Smaller Companies Prudential Strategic Growth Prudential UK Equity and Bond Prudential UK Tracker For consistency and transparency we show the Charges including property expenses. Property expenses capture all expenses associated with the management and operation of the property portfolio, that are unable to be charged onto tenants. 6 Short Fund Guide: Prudential Investment Plan

7 Funds Distribution Income Funds Prudential 0-35% Equity Managed Distribution Prudential Corporate Bond (Inc) Prudential Fixed Interest (Inc) Income (Inc) Prudential M&G Dividend (Inc) Prudential M&G Global High Yield Bond (Inc) Prudential M&G UK Equity Income (Inc) ^ Prudential Managed Distribution Prudential Property (Inc)*** *** For consistency and transparency we show the Charges including property expenses. Property expenses capture all expenses associated with the management and operation of the property portfolio, that are unable to be charged onto tenants. ^ This fund is only open to existing investors in the fund. Further information For more information on a particular fund speak to your financial adviser or go to pru.co.uk/funds Short Fund Guide: Prudential Investment Plan 7

8 "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. INVB /2017