The Prudential ISA a stocks and shares ISA. The Prudential ISA is provided by Link Financial Investments Limited.

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1 The Prudential ISA a stocks and shares ISA The Prudential ISA is provided by Link Financial Investments Limited.

2 Do you remember the days when the thought of a 2.5% rate of interest would have been disappointing? These days, 1.9%* for fixed term ISAs and 1.05%* for instant access ISAs are among the best rates available for Cash ISAs. *Best Buys, Moneysavingexpert.com, 4 April Against a backdrop of low interest rates, rising inflation and market uncertainty there are some tough decisions to be made when it comes to reviewing your ISA investments. With many people expecting the current low interest rates to continue, a Cash ISA or savings account that are generally considered to be a relatively safe and easy access home for your money, may not provide the returns you would like. So, what solutions are potentially available for your investment that can still benefit from the tax advantages of an ISA? If you are wishing to invest for the medium to long term (5 or more years), and are prepared to take more of a risk with your money, a Stocks and Shares ISA could offer the potential for higher returns. Please bear in mind that with a Stocks and Shares ISA, your capital is at risk. The value of an investment is not guaranteed and can go down as well as up and the value in the future may be less than you have invested.

3 What s a Stocks and Shares ISA? A stockmarket investment is not like a bank or building society deposit account. It may return less than has been invested, whereas a bank or building society deposit account would normally return all your capital. You should consider keeping any money which might be needed in the short term, in a bank or building society deposit account. This is generally secure and readily accessible. While a Cash ISA is simply a tax-free savings account, a Stocks and Shares ISA is a tax-efficient investment account that lets you put money into range of different investments. If you want to invest over the medium to long-term and would like the flexibility to select funds that invest in stocks and shares and other types of investments then this could be an option for you. You should only invest if you re prepared to take the risk that your investments can go down, as well as up, in value. An ISA opportunity from Prudential Prudential ISA is a Stocks and Shares ISA which offers the opportunity to invest into a range of funds and access to our PruFund funds. With our flexible online evaluation and application process and easy access to your investment, you may find that the Prudential ISA is an ideal pot for your money. PruFund funds aim to protect your money from some of the extreme short-term ups and downs of direct stockmarket investment by using a unique smoothing process. This aims to smooth the peaks and troughs of direct investment and provide less volatile and more stable returns over the medium to long-term in line with each funds objective. These funds offer different levels of risk and potential return. And, because they are available within an ISA, any growth will be free of Income Tax and Capital Gains Tax. The Prudential ISA is provided by Link Financial Investments Limited, who is the ISA Plan Manager. Link Financial Investments Limited is responsible for all the regulatory and legal aspects of the ISA and the provision of all customer services.

4 Take advantage of your ISA allowance 2017/ / /11 ISA allowance 20,000 ISA allowance 15,240 ISA allowance 10,200 96% 31.2% How much money is invested in PruFund funds? As at the end of December 2016, over 24bn is invested in PruFund funds. PruFunds can help The PruFund funds invest in Prudential s With-Profits Fund, the largest and one of the financially strongest With-Profits funds in the UK. Returns for each of these funds may differ from returns from the With-Profits Fund due to the unique smoothing formula that aims to give you a more stable return than you would get if you were directly exposed to some of the daily ups and downs of direct stockmarket investment. The smoothing process sets out an Expected Growth Rate for each PruFund fund and then compares that rate to how each fund is actually performing, making adjustments where necessary. Investments are made into different types of investments and asset types including: UK and International Shares (equities) Fixed Interest corporate and government bonds Property Cash and Money Markets

5 By spreading and diversifying investment across these assets, PruFund funds can help reduce the risk of extreme ups and downs that you might get from investing in a single asset type. Don t forget, the value of an investment is not guaranteed and can go down as well as up and the value in the future may be less than you have invested. Value Smoothed Value Unsmoothed Value Time This is a simplified example of how the process works and is for illustrative purposes only. It is not representative of any particular time period or investment performance. What is Expected Growth Rate (EGR) The EGRs reflect our view of how we think each PruFund fund will perform over the long term. Each PruFund fund has its own EGR and investments into a PruFund will normally grow daily by the relevant EGR. Although we take a long-term view, we 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. More information can be found in our quarterly publication PruFund Expected Growth Rates. Can I transfer my Cash ISA to invest in the PruFund range of funds? Transferring an ISA can be easy. You could transfer any accumulated Cash ISA money to the Prudential ISA without affecting the current year s subscription limits. There is currently no charge for transferring your ISA to the Prudential ISA, however, your existing ISA Manager may charge you for any transfer. There is a charge for investing in the funds. Please speak to your Financial Adviser and existing ISA provider for more information. You may also lose out on any growth in value during the period where the transfer is taking place. What do I do now? Speak to your Financial Adviser about Prudential ISA and its range of funds. More information can be found in our brochures A step by step guide to the PruFund smoothing process, PruFund Expected Growth Rates.

6 Important information Since the 1 July 2014, you can transfer an existing ISA of any kind into a Cash or Stocks and Shares ISA. Please note that Prudential only offers a Stocks and Shares ISA and does not offer a Cash ISA account. If you decide to transfer your Cash ISA or Stocks and Shares ISA, you must transfer the entire current tax year s subscription. If you wish, you can also transfer all or a part of previous years subscriptions. Please be aware that if you transfer and change your mind you may not be able to transfer back. For the range of PruFund funds, what you receive will depend on the value of the underlying investments, the Expected Growth Rates as set by the Prudential Directors, our charges, the smoothing process, if there is a guarantee and when you take your money out. The guarantee, if applicable, is applied at the end of the guarantee term specified in your personal illustration document. This information is based on our understanding, as at April 2017, of current taxation, legislation and HM Revenue & Customs practice, all of which is subject to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC Authorised and regulated by the Financial Conduct Authority. ISA /2017