Prudential With-Profits Fund

Transcription

1 Prudential With-Profits Fund This document has been produced provide factual information on Prudential s With-Profits Fund, and specifically, that part of the fund directly relevant investments of this type, and should not be used as financial advice. If you are unsure what bonus series you are invested in or if there is information or terminology included that you would like discuss, then please contact your adviser. Key facts Fund Size 72.4 billion as at 31 March 2017 Prudential Financial Strength rating* AA Portfolio Manager Prudential Portfolio Management Group Ltd Investment Style Prudent Active Performance Objective To offer competitve long term returns *Standard & Poor s as at June 2016 Fund description The fund offers the prospect of competitive long-term real returns whilst smoothing the peaks and troughs of day--day market movements. Investment returns are passed policyholders through bonuses. The fund is invested in a diversified portfolio of UK and overseas shares, bonds, property and cash. A significant proportion of the fund is invested in shares and property which can be expected produce attractive longterm returns, but the return on these assets can be volatile and so the fund is actively managed optimise the returns while controlling risk. Fund breakdown The asset mix is likely vary in the future. Source: Prudential as at 31 March 2017 Asset allocations are regularly reviewed and may vary from time time, but will always be consistent with the fund Prudential risk rating Lower Medium UK Equities 16.1% Property 14.9% Pacific Market Equities 9.8% North American Equities 8.5% European Equities 8.4% UK Fixed Interest 8.4% US Fixed Interest 8.3% Other Investment Assets 6.1% Cash 5.0% Euro Fixed Interest 4.5% Japanese Equities 3.6% Global Emerging Markets Equities 3.3% Asia Fixed Interest 2.5% Other Fixed Interest 0.6% Commentary The first quarter of 2017 continued see generally positive returns for equity markets, particularly in the US where the S&P 500 reached a record high, with invesr sentiment continuing be buoyed by the expectation of Trump s fiscal policies boosting the economy. This sentiment softened slightly following a defeat over healthcare and concerns over Trump s ability enact his stated policies within his initial timeframes. PPMG believes the effects of possible fiscal easing will have the greatest impact in 2018 while there is a risk that a move wards greater protectionism at the expense of foreign companies as tipped by Trump could result in stagflation (a period of high inflation, slow economic growth and high unemployment). The UK continued grow post the Brexit referendum, supported by corporate results and an increase in merger and acquisitions. European equities were up although they started weakly. The rally came from signs of an improving global economic outlook in the face of increased political uncertainty from Dutch and French elections. Japan s Tokyo Price Index rose over the quarter, although held back by gradual yen appreciation. Emerging equities had a strong quarter, supported by the positive global economic outlook and a weaker US dollar. Government bond yields were mixed over the quarter, with investment grade and high yield bonds outperforming due expected monetary policy tightening, strengthening growth and rising inflation. Underlying investment returns % Source: Prudential. The above are calendar year returns for the With-Profits Fund (before charges, tax and effects of smoothing). The value of your policy will be sent out in your annual statement or is available on request. The value will depend on when you actually invested allowing for tax, charges and smoothing. The value could change by more or less than the underlying investment return of the overall fund. Past performance is not a reliable indicar of future performance. What is the risk rating? These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund s level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You will find this information at You should also consider discussing your decision and the appropriateness of a fund s risk rating with an adviser. Page 1 of 2 Quarter ending 31 March 2017

2 Prudential With-Profits Fund Performance (applicable from 6 April 2017) For investments in the With-Profits Fund, the value of the policy depends on how much profit the fund makes and how we decide distribute that profit. Policyholders receive a distribution of profits by means of bonuses, or other methods as specified in the relevant policy documentation. There are two types of bonus, regular (or reversionary) and final (or terminal) bonus. The performance figures shown are overall annualised returns for contributions made on the dates specified. The returns include both regular and final bonuses added a benefit paid at normal retirement date, but make no allowance for any applicable initial charges, allocation rates or early cash in charges (explicit charges). Final bonus may vary and is not guaranteed. The rate of future bonuses cannot be guaranteed. The value of an investment may go down as well as up and the fund value in the future may be less than the payments you have made. Please bear in mind that inflation will reduce what you can buy in the future. Please read the important information below and the Key Features document for the relevant contract. The performance figures are declared by Prudential Assurance Company Limited, usually each February. For the Unitised returns shown, it is assumed that the contribution was invested without any allowance made for any explicit charges on 6 April 1, 3, 5 or 10 years ago and realised on or after 6 April 2017 secure benefits With-Profits bonus series explained Cash Accumulation With-Profits Cash Accumulation MPP With-Profits is used soley by the oldest pre 101 money purchase contracts for occupational pension schemes typically established from Cash Accumulation AVC With-Profits is used solely by Additional Voluntary Contribution contracts as part of an occupational scheme (but not where VCs are paid through another Prudential group pension contract). at normal retirement age. For the Cash Accumulation returns shown, it is assumed that 1, 3, 5 or 10 scheme revision dates ending after 15 March 2017 have passed since the contribution was invested. Bonus Series 1 Year* 3 Years* 5 Years* 10 Years* Unitised L With-Profits Returns 2.50% 5.65% 6.15% 4.90% Unitised N With-Profits Returns 2.50% 5.65% 6.15% 4.90% Cash Accumulation MPP With-Profits Returns 2.50% 5.65% 6.15% 4.90% Cash Accumulation AVC With-Profits Returns 2.50% 5.65% 6.15% 4.90% Source: Prudential. *overall annualised returns The value of your policy will be sent out in your annual statement or is available on request. The value will depend on when you actually invested allowing for tax, charges and smoothing. The value could change by more or less than the underlying investment return of the overall fund. Past performance is not a reliable indicar of future performance. Unitised With-Profits Unitised L With-Profits is used by the 101 money purchase contracts for occupational pension schemes and grouped personal pension contracts (including the Shout/Xafinity contracts) typically established from 06/04/1987 where holdings are expressed in terms of units. Unitised N With-Profits is used by the Select group personal pension (established 1997) and Money Purchase Plan/Group Personal Pension money purchase contracts for occupational pension schemes and group personal pension contracts established since 2001 where holdings are expressed in terms of units. Important information Who manages the funds? Prudential Assurance Company Limited holds the assets of the With- Profits Fund through cusdians. Prudential has delegated the investment management of the fund through agreements with various investment managers including M&G Investments. Can I get advice? This factsheet should not be considered as financial advice and any changes investment arrangements should be discussed with an adviser. It is not our intention give an indication of how any particular funds will perform in the future. The commentary in this factsheet reflects the general views of the individual fund manager and should not be taken as a recommendation or advice as how a specific market or fund is likely perform. Who is this factsheet for and what does it do? This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts. Its purpose is provide an insight in how the fund(s) have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included on this factsheet, then please contact an adviser. Other important information If money invested in the With-Profits Fund is taken out at any time other than on death or normal retirement date, a Market Value Reduction (MVR) may be applied; this may have the effect of reducing the fund value. For details on MVR and charges applicable your investment, please refer the Key Features document for the relevant contract. For a copy of the Key Features document, please contact your pensions department for scheme members or usual Prudential contact for trustees and advisers. 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 BTBQ _2017 Page 2 of 2 Quarter ending 31 March 2017

3 Prudential Cash S3 Aims The investment strategy of the fund is purchase units in the M&G PP Cash Fund. That fund invests in both secured (reverse repurchase agreements) and unsecured interest bearing deposits, as well as short-term UK Government bonds and Certificates of Deposit. It is actively managed against its benchmark, the London Interbank LIBID 7 Day Deposit rate. Performance Objective: To outperform the benchmark before charges on a rolling three year basis. Performance London Interbank LIBID 7 Day Deposit Rate ABI Secr Deposit & Treasury Identification Codes Sedol Code Mex Code PUCA Isin Code GB Citi Code P269 Fund Overview Daily price (21/07/2017) Fund size (31/05/2017) 97.08m Underlying Fund size m Number of holdings 5 Launch date 06/04/2001 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Discrete performance - latest available quarter end 30/06/12 Fund 0.4% 0.4% 0.5% 0.5% 0.1% 0.4% 0.4% 0.4% 0.4% 0.1% Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund 0.0% 0.4% 0.4% 1.2% 0.0% 0.3% 0.3% 1.1% Prudential Risk Rating Minimal Risk These funds may invest in a combination of deposits, money market instruments and other interest bearing securities. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Name: Manager of the underlying fund for: Prudential Capital 17 years, 2 months Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. Please note if the tal charges taken from your plan exceed the growth achieved, you will get back less than you originally invested. For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

4 Prudential Cash S3 Portfolio data accurate as at: 31/05/17 Holdings Name % Weight Secr Country 1 CASH % Managed Funds Non-Classified Asset Allocation Regional Allocation Other Assets % Non-Classified % Asset Allocation Top Country Breakdown Non-Classified % Cash Deposit 70.00% Cash 30.00% Equity Secr Breakdown Non-Classified % Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. Please note if the tal charges taken from your plan exceed the growth achieved, you will get back less than you originally invested. The Industry Classification is a product of FTSE International Limited and has been licensed for use.

5 Prudential Cash S3 Performance comment Performance as at Q During the first quarter of 2017, the performance of the fund was in line with its benchmark, the London Interbank LIBID 7 Day Deposit Rate. The fund is primarily invested in reverse repurchase agreements (or reverse repos ), which provide collateral (typically short-term gilts) against cash deposits made by the fund. As with short-term money market deposits, reverse repos are transacted with banks from M&G s counterparty credit risk panel. At the end of this quarter, the fund s assets remain invested in reverse repos with a maturity of no more than one month. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

6 Prudential All Scks Corporate Bond (previously known as Corporate Bond) S3 Aims The investment strategy of the fund is purchase units in the M&G PP All Scks Corporate Bond Fund. That fund invests mainly in high quality Sterling corporate bonds across the range of maturities. The fund is actively managed against its benchmark, the iboxx Sterling Non-Gilts Index. The fund may also hold UK government gilts and limited amounts of high yield and hedged non-sterling corporate bonds. Derivative instruments may be used for efficient portfolio fund management. Performance Objective: To outperform the benchmark by 0.80% a year (before charges) on a rolling three year basis. Performance ABI Secr iboxx Sterling Non-Gilts Index Sterling Corporate Bond Identification Codes Sedol Code Mex Code PUCB Isin Code GB Citi Code P270 Fund Overview Daily price (21/07/2017) Fund size (31/05/2017) 39.95m Underlying Fund size m Number of holdings 484 Launch date 06/04/2001 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Discrete performance - latest available quarter end 30/06/12 Fund 7.8% 7.6% 6.9% 9.0% 7.0% 6.5% 6.8% 6.5% 9.0% 5.3% Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund 1.0% 7.6% 7.7% 7.7% 0.5% 6.9% 6.8% 6.5% Prudential Risk Rating Lower Medium Risk These funds may invest in corporate bonds or multi-asset strategies with a higher weighting in corporate bonds (and other comparable strategies). These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Name: Manager of the underlying fund for: Jamie Hamiln 16 years, 5 months For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

7 Prudential All Scks Corporate Bond (previously known as Corporate Bond) S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 5% Treasury Sck % Bonds United Kingdom 2 4¾% Treasury Gilt % Bonds United Kingdom 3 KREDITANST FUR WIE6% GTD SNR 07/12/28 GBP % Banks Germany 4 EDF6% SNR EMTN 23/01/2114 GBP 1.19% Electricity France 5 European Investment Bank 6% % Banks Luxembourg 6 4¼% Treasury Sck % Bonds United Kingdom 7 LEGAL & GENERAL GP5.5%-STP SUB 27/06/2064 GBP 0.99% Life Insurance United Kingdom 8 MEXICO(UTD MEX ST)5.625% SNR MTN 19/03/14 GBP 0.92% Bonds Mexico 9 EURO INV BANK5% SNR 15/04/2039 GBP % Banks Luxembourg 10 EURO INV BANK4.5% SNR 07/06/2029 GBP % Banks Luxembourg Asset Allocation Regional Allocation International Bonds 42.18% UK Corporate Bonds 41.43% UK Gilts 9.31% Cash and Equivalents 8.78% Other Assets -1.70% UK 50.73% Developed Europe - Excl UK 24.18% North America 13.00% Cash and Equivalents 8.78% Australia & New Zealand 1.84% South & Central America 1.61% Other Regions -0.15% Bond Secr Breakdown Basic Materials 0.86% Consumer Goods 3.62% Consumer Services 7.25% Financials 37.29% Health Care 1.34% Industrials 7.02% Oil & Gas 2.00% Other Secrs 40.62% Fixed Interest Quality Profile BBB 27.33% A 19.87% AA 19.83% AAA 9.87% Sub-Investment Grade 2.98% Unknown Quality 13.03% Cash and Equivalents 8.78% Other Asset Types -1.70% Top Country Breakdown United Kingdom 50.73% United States 12.58% Cash and Equivalents 8.78% France 6.03% Luxembourg 4.75% Netherlands 4.68% Germany 2.13% Other Countries 10.31% Fixed Interest Maturity Profile > 15Yr Maturity 35.69% 5Yr - 10Yr Maturity 22.36% 10Yr - 15Yr Maturity 19.99% < 5Yr Maturity 14.88% Cash And Equivalents 8.78% Unknown Maturity -1.70% Fixed Interest Currencies Pound Sterling 89.42% Cash 8.78% Euro 2.75% US Dollar 0.75% Non-Fixed Interest Assets -1.70% The Industry Classification is a product of FTSE International Limited and has been licensed for use.

8 Prudential All Scks Corporate Bond (previously known as Corporate Bond) S3 Performance comment Performance as at Q Global economic data was surprisingly encouraging in the first quarter of 2017, providing a positive backdrop for riskier securities; credit spreads continued tighten over the period even as government bond yields remained broadly unchanged. Political developments across the globe continued dominate news, much the same as we saw at the tail end of The fund s off-benchmark positions in US dollar-denominated credit and euro-denominated credit continued perform strongly, as the manager de-risked and switched back in sterling equivalents where possible. The fund continued benefit from being overweight financials, particularly the subordinated debt of insurance companies such as Legal and General and AXA, which look attractive compared other secrs within the index. A number of holdings added performance during the quarter, with the key contriburs being overweight positions in Glencore and Tesco. The fund maintained a neutral interest rate duration position relative the benchmark over the period. The fund outperformed the benchmark during the first quarter. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

9 Prudential Discretionary S3 Aims The investment strategy of the fund is purchase units in the M&G PP Discretionary Fund. That fund provides a multi-asset approach investment, holding a mix of UK and overseas company shares, bonds, property and cash via other M&G PP funds. It is actively managed against an internal composite benchmark asset allocation set by the Prudential Portfolio Management Group. It is a fund of funds where both active sck selection, within the underlying secr funds, and asset allocation decisions are used add value. Performance Objective: To outperform the internal composite benchmark by 1.15%-1.40% a year (before charges) on a rolling three year basis. ABI Secr Identification Codes Internal composite benchmark, asset allocation set by the PPMG Mixed Investment 40-85% Shares Sedol Code Mex Code PUD Isin Code GB Citi Code P271 Fund Overview Daily price (24/07/2017) Fund size (31/05/2017) m Underlying Fund size m Number of holdings 4637 Launch date 06/04/2001 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Performance Discrete performance - latest available quarter end 30/06/12 Fund 15.5% 10.4% 6.4% 6.0% 22.3% 14.3% 7.9% 6.3% 3.2% 15.7% Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund 1.5% 11.3% 12.0% 7.4% 1.2% 8.3% 9.4% 5.1% Prudential Risk Rating Medium Risk These funds may invest in multi-asset strategies with a higher weighting in equities, while funds investing mainly in property and, currently, government bonds (such as UK Gilts) are also in this category. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Name: Manager of the underlying fund for: Prudential Portfolio Management Group 34 years, 3 months Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. Therefore the figures shown until after this point in time may be for the previous quarter. For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

10 Prudential Discretionary S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 BP 1.72% Oil & Gas Producers United Kingdom 2 HSBC Holdings PLC (UK Reg) 1.43% Banks United Kingdom 3 British American Tobacco 1.27% Tobacco United Kingdom 4 Royal Dutch Shell B 1.04% Oil & Gas Producers United Kingdom 5 Lloyds Banking Group 0.96% Banks United Kingdom 6 AstraZeneca 0.83% Pharmaceuticals & Biotechnology United Kingdom 7 Aviva 0.74% Life Insurance United Kingdom 8 Roche Holding AG Part. Cert. 0.68% Pharmaceuticals & Biotechnology Switzerland 9 GlaxoSmithKline 0.67% Pharmaceuticals & Biotechnology United Kingdom 10 Novartis AG 0.62% Pharmaceuticals & Biotechnology Switzerland Asset Allocation Regional Allocation International Equities 51.15% UK Equities 31.35% Cash and Equivalents 4.16% International Bonds 2.76% Property 2.72% UK Gilts 1.87% Other Assets 5.99% UK 33.57% Developed Europe - Excl UK 17.94% North America 16.65% Japan 10.63% Cash and Equivalents 4.16% Emerging Asia 3.85% Other Regions 13.21% Equity Secr Breakdown Basic Materials 5.69% Consumer Goods 10.67% Consumer Services 9.15% Financials 19.14% Health Care 8.19% Industrials 12.57% Oil & Gas 6.31% Other Secrs 28.28% Breakdown By Market Cap (%) Mega 44.97% Large 16.39% Medium 14.83% Small 3.60% Micro 1.55% Non-Classified 9.53% Bonds 4.98% Cash 4.16% Top Country Breakdown United Kingdom 33.57% United States 15.55% Japan 10.63% Cash and Equivalents 4.16% Germany 3.64% Non-Classified 5.65% France 2.94% Other Countries 23.87% Fixed Interest Currencies Non-Fixed Interest Assets 90.86% Cash 4.16% Pound Sterling 2.50% US Dollar 0.62% Euro 0.50% Yen 0.49% Other Currencies 0.87% Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. Therefore the figures shown until after this point in time may be for the previous quarter. The Industry Classification is a product of FTSE International Limited and has been licensed for use.

11 Prudential Discretionary S3 Performance comment Performance as at Q While the Discretionary Fund is moving its new internal asset allocation benchmark, the fund outperformed both the ABI benchmark and the internal benchmark for a second quarter. Amid signs of continuing growth in the global economy and greater inflationary pressures, equities performed better than bonds during the quarter. In terms of equities, the fund s performance was helped by positive sck selection in the UK and Pacific markets, with the remaining overseas markets lagging their respective benchmarks slightly. Meanwhile, although the absolute return for bonds lagged that of equities, sck selection was generally positive across bond funds in the portfolio. The fund s new asset allocation benchmark has a reduced equity weighting and an increased bond and property weighting, compared the fund s current positioning. However, once the fund manager has completed the repositioning of the portfolio, the fund is still expected retain an above-index presence in equities and a below-index position in bonds and property. Within the portfolio, this move is likely result in a reduced exposure US, European and UK equities and a correspondingly greater presence in Asian equities, property and bonds. Global growth remains positive, with the US and UK economies progressing well, while Europe is showing a more broad-based recovery than previously. China o seems be holding up well. Notwithstanding this favourable environment, invesr sentiment remains vulnerable political risk, most notably a number of elections in Europe this year, the Brexit negotiations and geopolitical tension in Asia. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

12 Prudential Fixed Interest S3 Aims The investment strategy of the fund is purchase units in the M&G PP Fixed Interest Fund. That fund invests mainly in UK government gilts. The fund is actively managed against its benchmark, the FTSE Actuaries UK Conventional Gilts All Scks Index. The fund can also invest in overseas government bonds and corporate bonds issued by UK and overseas companies and institutions. Exposure short-term exchange rate movements from any overseas holdings is mitigated by hedging. Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis. ABI Secr Identification Codes FTSE Actuaries UK Conventional Gilts All Scks Index Sterling Fixed Interest Sedol Code Mex Code PUFIT Isin Code GB Citi Code P272 Fund Overview Daily price (24/07/2017) Fund size (31/05/2017) 40.59m Underlying Fund size 90.37m Number of holdings 12 Launch date 06/04/2001 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Performance Discrete performance - latest available quarter end 30/06/12 Fund -2.0% 2.7% 9.4% 13.7% -0.2% -2.4% 2.3% 8.9% 13.5% -0.9% Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund -0.9% 7.5% 4.6% 7.1% -1.3% 7.0% 4.1% 6.5% Prudential Risk Rating Medium Risk These funds may invest in multi-asset strategies with a higher weighting in equities, while funds investing mainly in property and, currently, government bonds (such as UK Gilts) are also in this category. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Name: Manager of the underlying fund for: Miles Tym 4 years, 9 months For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Sck Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

13 Prudential Fixed Interest S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 1¾% Treasury Gilt % Bonds United Kingdom 2 1¾% Treasury Gilt % Bonds United Kingdom 3 1½% Treasury Gilt % Bonds United Kingdom 4 4¼% Treasury Sck % Bonds United Kingdom 5 ⅛% Index-linked Treasury Gilt % Bonds United Kingdom 6 1 3/4 Treasury % Bonds United Kingdom 7 ½% Treasury Gilt % Bonds United Kingdom 8 1½% Treasury Gilt % Bonds United Kingdom 9 4¼% Treasury Gilt % Bonds United Kingdom 10 LEGAL & GENERAL GP5.5%-STP SUB 27/06/2064 GBP 0.80% Life Insurance United Kingdom Asset Allocation Regional Allocation UK Gilts % Cash and Equivalents 2.15% UK Corporate Bonds 0.80% Other Assets -6.65% UK % Cash and Equivalents 2.15% Non-Classified -6.65% Bond Secr Breakdown Financials 0.80% Government % Non-Classified -6.65% Cash and Equivalents 2.15% Fixed Interest Quality Profile AA % BBB 0.80% Cash and Equivalents 2.15% Other Asset Types -6.65% Top Country Breakdown United Kingdom % Cash and Equivalents 2.15% Non-Classified -6.65% Fixed Interest Maturity Profile > 15Yr Maturity 55.08% < 5Yr Maturity 33.22% 5Yr - 10Yr Maturity 16.21% Cash And Equivalents 2.15% Unknown Maturity -6.65% Fixed Interest Currencies Pound Sterling % Cash 2.15% Non-Fixed Interest Assets -6.65% The Industry Classification is a product of FTSE International Limited and has been licensed for use.

14 Prudential Fixed Interest S3 Performance comment Performance as at Q During the quarter, the fund manager opened a tactical short duration position in UK government bonds (gilts). This has contributed negatively the fund s performance. However, this position is expected be supported going forward as central bank bond-buying programmes end, along with increased gilt issuance. The manager added further exposure gilts maturing in 30 years which he believes offered better relative value than shorter and longer dated issues. The manager increased the size of this position as these securities continued cheapen during the course of the quarter. The overweight versus benchmark position in gilts maturing in 10 years being held against shorter and longer dated gilts was closed. The 10-year part of the yield curve had normalised after cheapening significantly. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

15 Prudential Global Equity S3 Aims The investment strategy of the fund is purchase units in the M&G PP Global Equity Fund. That fund provides an all equity approach investment, holding a 70% UK equity and 30% mix of overseas company shares, via other M&G PP funds. For the overseas shares it is actively managed against an internal composite benchmark asset allocation set by the Prudential Portfolio Management Group. It is a fund of funds where both active sck selection, within the underlying secr funds, and asset allocation decisions are used add value. Performance Objective: To outperform the internal composite benchmark by 1.0% a year (before charges) on a rolling three year basis. ABI Secr Identification Codes Internal composite benchmark, asset allocation set by the PPMG Global Equities Sedol Code Mex Code PUGLE Isin Code GB Citi Code P273 Fund Overview Daily price (21/07/2017) Fund size (31/05/2017) 77.62m Underlying Fund size m Number of holdings 1708 Launch date 06/04/2001 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Performance Discrete performance - latest available quarter end 30/06/12 Fund 19.7% 12.0% 5.7% 2.4% 23.9% Secr 21.6% 9.6% 8.5% 6.5% 24.0% Rank 333/ / / / /883 Quartile Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund 1.8% 10.3% 12.4% 7.0% Secr 1.5% 12.7% 13.8% 6.9% Rank 345/ / / /468 Quartile Prudential Risk Rating Medium Higher Risk These funds offer a diverse geographical spread of equity investment. The funds within this category will have greater overseas exposure and underlying volatility than the "medium" secr. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Exchange rate fluctuations may cause the Sterling values of overseas Name: investments rise or fall. Prudential Portfolio Management Group For some funds, there is a short time-lag between a policyholder Manager investing of his the money, underlying the money fund for: passing through 25 years, the accounting 1 monthssystem and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Sck Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended constitute investment advice or a recommendation make (or refrain from making) any kind of investment decision and may not be relied on as such. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

16 Prudential Global Equity S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 BP 3.52% Oil & Gas Producers United Kingdom 2 HSBC Holdings PLC (UK Reg) 2.85% Banks United Kingdom 3 British American Tobacco 2.67% Tobacco United Kingdom 4 Royal Dutch Shell B 2.11% Oil & Gas Producers United Kingdom 5 Lloyds Banking Group 1.94% Banks United Kingdom 6 AstraZeneca 1.70% Pharmaceuticals & Biotechnology United Kingdom 7 Aviva 1.50% Life Insurance United Kingdom 8 GlaxoSmithKline 1.36% Pharmaceuticals & Biotechnology United Kingdom 9 Rio Tin 1.25% Mining United Kingdom 10 Vodafone Group 1.11% Mobile Telecommunications United Kingdom Asset Allocation Regional Allocation UK Equities 63.64% International Equities 32.60% Cash and Equivalents 1.45% Property 1.38% Investment Trusts 0.67% Alternative Trading Strategies 0.00% Other Assets 0.27% UK 63.64% Developed Europe - Excl UK 10.45% North America 8.61% Emerging Asia 4.98% Japan 3.42% Developed Asia 2.38% Other Regions 6.53% Equity Secr Breakdown Basic Materials 6.82% Consumer Goods 11.71% Consumer Services 11.46% Financials 23.43% Health Care 9.11% Industrials 14.75% Oil & Gas 9.03% Other Secrs 13.70% Breakdown By Market Cap (%) Mega 48.52% Large 17.92% Medium 19.75% Small 6.34% Micro 3.10% Non-Classified 2.93% Cash 1.45% Top Country Breakdown United Kingdom 63.64% United States 7.62% Japan 3.42% Ireland 2.26% Australia 2.01% Hong Kong 1.83% Germany 1.79% Other Countries 17.44% Fixed Interest Currencies Non-Fixed Interest Assets 98.08% Cash 1.92% Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. The Industry Classification is a product of FTSE International Limited and has been licensed for use.

17 Prudential Global Equity S3 Performance comment Performance as at Q The global economy continues show signs of growth and inflationary pressures are starting increase. In this environment, invesrs were broadly confident and equities performed well over the quarter. The fund was broadly in line with the benchmark; sck selection in the UK equity component of the fund was positive, while the relatively small exposure the Pacific Basin also added value on the back of a weaker US dollar and signs of encouraging economic growth. The underlying European fund was behind its index as sck selection held back returns. Meanwhile, asset allocation in this fund was broadly neutral; a below-index position in financials was helpful, although a relatively large presence in oil detracted from performance. Meanwhile, the US, Japanese and emerging markets were also behind their respective benchmarks. The fund is transitioning its new overseas equity benchmark and the fund manager aims achieve this in the most efficient and cost-effective manner. Prospects for the global economy remain fairly encouraging, while inflationary pressures are increasing in many markets, most notably the US, UK and Europe. At the same time, political risk is at the front of many invesrs minds, with elections due in France, the UK and Germany this year. Furthermore, there remains considerable uncertainty about Brexit negotiations. Invesrs initial euphoria following the election of President Trump in the US has been tempered somewhat in the wake of his failure thus far implement significant health reforms; there appears be reduced confidence in the new president s ability pass anticipated tax reforms. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

18 Prudential Index-Linked S3 Aims The investment strategy of the fund is purchase units in the M&G PP Index-Linked Fund. That fund invests mainly in UK Government index-linked gilts, typically with over five years maturity. The fund is actively managed against its benchmark, the FTSE Actuaries UK Index- Linked Gilts Over 5 Years Index. The fund can also invest in corporate bonds, overseas government bonds and fixed interest gilts. Exposure short-term exchange rate movements from any overseas holdings is mitigated by hedging. Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis. ABI Secr FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index UK Index-linked Gilts Identification Codes Sedol Code Mex Code PUIL Isin Code GB Citi Code P275 Fund Overview Daily price (21/07/2017) Fund size (31/05/2017) 67.91m Underlying Fund size m Number of holdings 12 Launch date 06/04/2001 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Performance Discrete performance - latest available quarter end 30/06/12 Fund 3.4% 5.1% 15.9% 18.4% 7.4% 2.7% 4.3% 15.8% 17.0% 7.1% Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund -2.5% 13.8% 9.9% 10.6% -2.4% 13.2% 9.2% 9.7% Prudential Risk Rating Medium Risk These funds may invest in multi-asset strategies with a higher weighting in equities, while funds investing mainly in property and, currently, government bonds (such as UK Gilts) are also in this category. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Name: Manager of the underlying fund for: Miles Tym 4 years, 9 months For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Sck Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

19 Prudential Index-Linked S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 1¼% Index-linked Treasury Gilt % Bonds United Kingdom 2 ⅛ I-L Treasury % Bonds United Kingdom 3 ⅜% Index-linked Treasury Gilt % Bonds United Kingdom 4 ⅛% Index-linked Treasury Gilt % Bonds United Kingdom 5 2% Index-linked Treasury Sck % Bonds United Kingdom 6 1¼% Index-linked Treasury Gilt % Bonds United Kingdom 7 1¼% Index-linked Treasury Gilt % Bonds United Kingdom 8 ½% Index-linked Treasury Gilt % Bonds United Kingdom 9 ⅛% Index-linked Treasury Gilt % Bonds United Kingdom 10 2½% Index-linked Treasury Sck % Bonds United Kingdom Asset Allocation Regional Allocation UK Gilts 96.86% Cash and Equivalents 3.14% UK 96.86% Cash and Equivalents 3.14% Bond Secr Breakdown Government 96.86% Cash and Equivalents 3.14% Fixed Interest Quality Profile AA 96.86% Cash and Equivalents 3.14% Fixed Interest Currencies Top Country Breakdown United Kingdom 96.86% Cash and Equivalents 3.14% Fixed Interest Maturity Profile > 15Yr Maturity 75.69% 10Yr - 15Yr Maturity 10.85% < 5Yr Maturity 8.17% Cash And Equivalents 3.14% 5Yr - 10Yr Maturity 2.16% Pound Sterling 96.86% Cash 3.14% The Industry Classification is a product of FTSE International Limited and has been licensed for use.

20 Prudential Index-Linked S3 Performance comment Performance as at Q During the quarter, the manager opened and later closed an overweight position in 50-year conventional UK government bonds (gilts) versus 50-year index-linked gilts. This contributed the bulk of the fund s outperformance over the quarter. The manager opened a tactical short duration position, using 10-year futures, as the market had become increasingly overvalued. This position detracted from the performance of the fund. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

21 Prudential International Equity S3 Aims The investment strategy of the fund is purchase units in the M&G PP International Equity Fund. That fund invests, via other M&G PP funds, in the shares of overseas companies. It is actively managed against an internal composite benchmark asset allocation set by the Prudential Portfolio Management Group. It is a fund of funds where both active sck selection, within the underlying secr funds, and asset allocation decisions are used add value. Performance Objective: To outperform the internal composite benchmark by 1.0% a year (before charges) on a rolling three year basis. ABI Secr Identification Codes Internal composite benchmark, asset allocation set by the PPMG Global Equities Sedol Code Mex Code PUINE Isin Code GB Citi Code P279 Fund Overview Daily price (21/07/2017) Fund size (31/05/2017) 93.15m Underlying Fund size m Number of holdings 1092 Launch date 06/04/2001 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Performance Discrete performance - latest available quarter end 30/06/12 Fund 22.7% 11.0% 8.8% 10.7% 28.3% 23.1% 9.0% 9.9% 11.6% 26.0% Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund 1.6% 15.6% 16.1% 8.9% 1.9% 15.6% 15.7% 8.4% Prudential Risk Rating Medium Higher Risk These funds offer a diverse geographical spread of equity investment. The funds within this category will have greater overseas exposure and underlying volatility than the "medium" secr. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Name: Manager of the underlying fund for: Prudential Portfolio Management Group 36 years, 3 months Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. Therefore the figures shown until after this point in time may be for the previous quarter. For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Sck Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended constitute investment advice or a recommendation make (or refrain from making) any kind of investment decision and may not be relied on as such. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

22 Prudential International Equity S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 Apple 1.45% Technology Hardware & Equipment United States 2 Roche Holding AG Part. Cert. 1.28% Pharmaceuticals & Biotechnology Switzerland 3 Microsoft Corp. 1.23% Software & Computer Services United States 4 Novartis AG 1.15% Pharmaceuticals & Biotechnology Switzerland 5 Nestle S.A. 0.92% Food Producers Switzerland 6 Bayer AG 0.90% Chemicals Germany 7 Sanofi 0.84% Pharmaceuticals & Biotechnology France 8 JPMorgan Chase & Co. 0.83% Banks United States 9 Siemens AG 0.81% General Industrials Germany 10 Exxon Mobil Corp. 0.79% Oil & Gas Producers United States Asset Allocation Regional Allocation International Equities 97.68% Cash and Equivalents 1.44% Property 0.50% UK Equities 0.31% Alternative Trading Strategies 0.00% Other Assets 0.07% North America 38.80% Developed Europe - Excl UK 30.47% Japan 16.05% Emerging Asia 6.22% Developed Asia 2.70% Australia & New Zealand 1.63% Other Regions 4.12% Equity Secr Breakdown Basic Materials 5.77% Consumer Goods 12.82% Consumer Services 9.78% Financials 21.98% Health Care 10.43% Industrials 14.25% Oil & Gas 5.73% Other Secrs 19.23% Breakdown By Market Cap (%) Mega 62.23% Large 19.80% Medium 12.42% Small 1.09% Non-Classified 3.03% Cash 1.44% Top Country Breakdown United States 36.84% Japan 16.05% Germany 6.47% France 5.25% Switzerland 5.19% Netherlands 3.50% South Korea 2.27% Other Countries 24.43% Fixed Interest Currencies Non-Fixed Interest Assets 98.70% Cash 1.29% Euro 0.01% Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. Therefore the figures shown until after this point in time may be for the previous quarter. The Industry Classification is a product of FTSE International Limited and has been licensed for use.

23 Prudential International Equity S3 Performance comment Performance as at Q Against a backdrop of sustained growth in the global economy and generally positive invesr sentiment, equity markets made solid gains over the quarter. In this environment, the fund was behind its new internal benchmark. Sckpicking in the underlying Pacific Market fund was beneficial for performance, while this market also produced one of the strongest returns in absolute terms, aided by the weaker US dollar and solid economic growth. Meanwhile, in the underlying US fund, sck selection in industrials, information technology and energy detracted from relative performance. However, the allocation healthcare contributed performance over the quarter. Although all of the underlying funds produced positive absolute returns, all but the Pacific Market lagged the returns of their respective benchmarks. The fund is transitioning its new overseas equity benchmark and the fund manager aims achieve this in the most efficient and cost-effective manner. The outlook appears reasonably positive on the economic front: the US and other major economies, including Europe, are growing at a reasonable pace. Invesr sentiment regarding US equities has modified from the euphoria following Donald Trump s election as president in light of questions emerging regarding his ability pass significant economic reforms. Nevertheless, the US remains a stable and growing economy. Against this favourable economic backdrop, a number of political facrs may lead greater invesr caution and volatility: Europe is facing significant elections in France and Germany, while invesrs will also be watching the Brexit negotiations closely. Furthermore, any further tensions concerning North Korea and its relations with major military powers could also affect sentiment. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

24 Prudential Long Term Growth Passive S3 Aims The investment strategy of the fund is purchase units in the M&G PP Long Term Growth Passive Fund. That fund invests, via other M&G PP funds, in the shares of companies around the world against a benchmark of 50% UK and 50% overseas (in fixed proportions reflecting each region s economic importance). It is a fund of funds and both the proportions invested in each region and investments in each region are passively managed except for emerging markets which are actively managed. The split between the UK and overseas regions may be reviewed from time time. Performance Objective: To match the performance of the benchmark as closely as possible. ABI Secr Identification Codes Mix of FTSE and MSCI regional indices Global Equities Sedol Code Mex Code PULTGR Isin Code GB Citi Code P280 Fund Overview Daily price (21/07/2017) Fund size (31/05/2017) m Underlying Fund size m Number of holdings 2229 Launch date 30/04/2002 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Performance Discrete performance - latest available quarter end 30/06/12 Fund 20.4% 11.6% 4.7% 5.8% 22.4% Secr 21.6% 9.6% 8.5% 6.5% 24.0% Rank 586/ / / / /883 Quartile Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund 1.6% 10.7% 12.7% 7.0% Secr 1.5% 12.7% 13.8% 6.9% Rank 392/ / / /468 Quartile Prudential Risk Rating Medium Higher Risk These funds offer a diverse geographical spread of equity investment. The funds within this category will have greater overseas exposure and underlying volatility than the "medium" secr. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Exchange rate fluctuations may cause the Sterling values of overseas Name: investments rise or fall. Prudential Portfolio Management Group For some funds, there is a short time-lag between a policyholder Manager investing of his the money, underlying the money fund for: passing through 16 years, the accounting 6 monthssystem and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Sck Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended constitute investment advice or a recommendation make (or refrain from making) any kind of investment decision and may not be relied on as such. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

25 Prudential Long Term Growth Passive S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 HSBC Holdings PLC (UK Reg) 2.80% Banks United Kingdom 2 British American Tobacco 2.11% Tobacco United Kingdom 3 Royal Dutch Shell A 1.84% Oil & Gas Producers United Kingdom 4 BP 1.82% Oil & Gas Producers United Kingdom 5 Royal Dutch Shell B 1.73% Oil & Gas Producers United Kingdom 6 GlaxoSmithKline 1.72% Pharmaceuticals & Biotechnology United Kingdom 7 AstraZeneca 1.35% Pharmaceuticals & Biotechnology United Kingdom 8 Vodafone Group 1.27% Mobile Telecommunications United Kingdom 9 Diageo 1.20% Beverages United Kingdom 10 Unilever 1.07% Personal Goods United Kingdom Asset Allocation Regional Allocation International Equities 49.34% UK Equities 44.89% Investment Trusts 2.15% Property 1.82% Cash and Equivalents 0.81% International Bonds 0.01% Other Assets 0.98% UK 44.89% Developed Europe - Excl UK 19.32% North America 11.22% Japan 7.10% Emerging Asia 5.59% Non-Classified 3.13% Other Regions 8.74% Equity Secr Breakdown Basic Materials 6.09% Consumer Goods 15.92% Consumer Services 9.71% Financials 24.33% Health Care 9.21% Industrials 12.77% Oil & Gas 7.79% Other Secrs 14.20% Breakdown By Market Cap (%) Mega 56.11% Large 23.29% Medium 12.40% Small 1.94% Micro 0.18% Non-Classified 5.26% Bonds 0.01% Cash 0.81% Top Country Breakdown United Kingdom 44.89% United States 10.57% Japan 7.10% Germany 3.75% France 3.58% Switzerland 3.53% Non-Classified 3.13% Other Countries 23.44% Fixed Interest Currencies Non-Fixed Interest Assets 99.19% Cash 0.81% US Dollar 0.01% Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. The Industry Classification is a product of FTSE International Limited and has been licensed for use.

26 Prudential Long Term Growth Passive S3 Performance comment Performance as at Q While political events, such as the UK s first steps on the road Brexit, approaching elections in Europe and President Trump s attempts meet campaign promises dominated headlines, global economic data continued improve. Invesrs were encouraged by higher company profits and some significant takeover activity, prompting several major sckmarket indices hit all-time highs, notably in the US and UK. For much of the quarter, sentiment was supported by hopes that President Trump would introduce policies designed stimulate growth, such as lower taxes, even though the prospect of such moves faded later. The prospect of protracted Brexit negotiations weighed on the pound, which boosted the value of the many multinational companies represented in the UK s FTSE 100. This pushed the index record highs. US sckmarket indices hit successive record highs as well, but the rally stalled wards the end of the quarter, as doubts began build over the new president s ability deliver on his pledges, especially as he was forced abandon his attempts reform healthcare. Technology companies were among the market leaders, which helped the technologydominated Nasdaq Index outperform. Although there was plenty of uncertainty surrounding financial markets in Europe, mainly due political events, continued strength in the economy led invesrs drive share prices higher. The European Central Bank now feels confident enough reduce the scale of its asset-purchase programme, introduced support the economy. Japanese shares lagged most of the world s sckmarkets, despite a sustained recovery in Japan's economic outlook due the strength of the yen. In contrast, Asia Pacific and emerging markets were among the best performers during the quarter, helped by a decline in the US dollar. The Indian sckmarket was a particularly strong performer, while higher corporate profits led share price strength in South Korea, Singapore and Taiwan. Argentina also enjoyed a remarkable rally, up more than 30% in sterling terms. Mexico o rallied as it looked as though President Trump may not be as bad for the country as feared. On the other hand, a decline in the oil price weighed on the Russian sckmarket, which relies heavily on natural resources. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

27 Prudential Overseas Equity Passive S3 Aims The investment strategy of the fund is purchase units in the M&G PP Overseas Equity Passive Fund. That fund invests, via other M&G PP funds, in the shares of overseas companies against a benchmark mix, with fixed proportions reflecting each region s economic importance. It is a fund of funds and both the proportions invested in each region and investments in each region are passively managed except for emerging markets which are actively managed. The split between the overseas regions may be reviewed from time time. Performance Objective: To match the performance of the benchmark as closely as possible. Performance ABI Secr Mix of FTSE and MSCI Regional Indices Global Equities Identification Codes Sedol Code Mex Code PUOEU Isin Code GB Citi Code P281 Fund Overview Daily price (24/07/2017) Fund size (31/05/2017) 35.05m Underlying Fund size m Number of holdings 1667 Launch date 30/04/2002 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Discrete performance - latest available quarter end 30/06/12 Fund 23.2% 9.7% 6.9% 10.8% 25.8% Secr 21.6% 9.6% 8.5% 6.5% 24.0% Rank 370/ / / / /883 Quartile Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund 1.8% 14.2% 15.0% 8.3% Secr 1.5% 12.7% 13.8% 6.9% Rank 329/ / / /468 Quartile Prudential Risk Rating Medium Higher Risk These funds offer a diverse geographical spread of equity investment. The funds within this category will have greater overseas exposure and underlying volatility than the "medium" secr. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Exchange rate fluctuations may cause the Sterling values of overseas Name: investments rise or fall. Prudential Portfolio Management Group For some funds, there is a short time-lag between a policyholder Manager investing of his the money, underlying the money fund for: passing through 17 years, the accounting 7 monthssystem and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Sck Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended constitute investment advice or a recommendation make (or refrain from making) any kind of investment decision and may not be relied on as such. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

28 Prudential Overseas Equity Passive S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 Samsung Electronics Co. 1.49% Leisure Goods South Korea 2 Nestle S.A. 1.36% Food Producers Switzerland 3 Taiwan Semiconducr Manufacturing 1.16% Technology Hardware & Equipment Taiwan 4 Roche Holding AG Part. Cert. 1.09% Pharmaceuticals & Biotechnology Switzerland 5 Novartis AG 1.05% Pharmaceuticals & Biotechnology Switzerland 6 Apple 0.80% Technology Hardware & Equipment United States 7 Commonwealth Bank of Australia 0.69% Banks Australia 8 Total S.A. 0.65% Oil & Gas Producers France 9 Siemens AG 0.63% General Industrials Germany 10 Toyota Mor Corp. 0.63% Aumobiles & Parts Japan Asset Allocation Regional Allocation International Equities 96.23% Property 1.59% Cash and Equivalents 1.05% UK Equities 0.43% Alternative Trading Strategies 0.01% International Bonds 0.01% Other Assets 0.68% Developed Europe - Excl UK 35.56% North America 22.75% Japan 14.14% Emerging Asia 11.08% Australia & New Zealand 5.95% Developed Asia 4.78% Other Regions 5.75% Equity Secr Breakdown Basic Materials 5.82% Consumer Goods 16.26% Consumer Services 7.95% Financials 23.89% Health Care 9.26% Industrials 14.41% Oil & Gas 4.40% Other Secrs 18.01% Breakdown By Market Cap (%) Mega 57.27% Large 27.44% Medium 10.06% Small 0.46% Non-Classified 3.71% Bonds 0.01% Cash 1.05% Top Country Breakdown United States 21.49% Japan 14.14% Germany 7.35% France 7.18% Switzerland 6.74% Australia 5.75% South Korea 4.94% Other Countries 32.42% Fixed Interest Currencies Non-Fixed Interest Assets 98.94% Cash 1.05% US Dollar 0.01% Exchange rate fluctuations may cause the Sterling values of overseas investments rise or fall. The Industry Classification is a product of FTSE International Limited and has been licensed for use.

29 Prudential Overseas Equity Passive S3 Performance comment Performance as at Q While political events, such as the UK s first steps on the road Brexit, approaching elections in Europe and President Trump s attempts meet campaign promises dominated headlines, global economic data continued improve. Invesrs were encouraged by higher company profits and some significant takeover activity, prompting several major sckmarket indices hit all-time highs, notably in the US and UK. For much of the quarter, sentiment was supported by hopes that President Trump would introduce policies designed stimulate growth, such as lower taxes, even though the prospect of such moves faded later. US sckmarket indices hit successive record highs, but the rally stalled wards the end of the quarter, as doubts began build over the new president s ability deliver on his pledges, especially as he was forced abandon his attempts reform healthcare. Technology companies were among the market leaders, which helped the technologydominated Nasdaq Index outperform. Although there was plenty of uncertainty surrounding financial markets in Europe, mainly due political events, continued strength in the economy led invesrs drive share prices higher. The European Central Bank now feels confident enough reduce the scale of its asset-purchase programme, introduced support the economy. Japanese shares lagged most of the world s sckmarkets, despite a sustained recovery in Japan's economic outlook due the strength of the yen. In contrast, markets in the Asia Pacific region were among the best performers during the quarter, helped by a decline in the US dollar against most other currencies. The Indian sckmarket was a particularly strong performer, while higher corporate profits led share price strength in South Korea, Singapore and Taiwan. The US dollar losing ground was also helpful for share prices in many emerging markets. Argentina enjoyed a remarkable rally, up more than 30% in sterling terms. Mexico o rallied as it looked as though President Trump may not be as bad for the country as feared. On the other hand, a decline in the oil price weighed on the Russian sckmarket, which relies heavily on natural resources. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as how any specific market is likely perform. Source: M&G Investments

30 Prudential Long Term Bond (previously known as Pre-Retirement) S3 Aims The investment strategy of the fund is purchase units in the M&G PP Long Term Bond Fund. That fund invests, via other M&G PP funds, in long-dated bonds split equally between UK Government gilts and corporate bonds. It is a fund of funds with the gilts component passively managed. The actively managed corporate bonds are mainly high quality sterling issues, but may include limited amounts of high yield and hedged non-sterling bonds. The split between government and corporate bonds may be reviewed from time time. Performance Objective: To match the performance of the benchmark as closely as possible. ABI Secr Identification Codes 50% FTSE Actuaries UK Conventional Gilts Over 15 Years Index and 50% iboxx Sterling Over 15 Years Non-Gilts Index Sterling Long Bond Sedol Code Mex Code PUPR Isin Code GB Citi Code P282 Fund Overview Daily price (21/07/2017) Fund size (31/05/2017) 49.80m Underlying Fund size 58.77m Number of holdings 181 Launch date 30/04/2002 Fund Charges Base Annual Management Charge (AMC) Please refer the "Fund Guide" for your specific pension plan Performance Discrete performance - latest available quarter end 30/06/12 Fund -0.3% 8.3% 12.9% 19.3% 3.7% -0.2% 7.3% 12.6% 19.8% 2.6% Performance - latest available quarter end Quarter Annualised Years 5 Years 10 Years Fund -0.7% 11.8% 8.6% 9.3% -1.0% 11.4% 8.2% 8.7% Prudential Risk Rating Medium Risk These funds may invest in multi-asset strategies with a higher weighting in equities, while funds investing mainly in property and, currently, government bonds (such as UK Gilts) are also in this category. These risk ratings have been developed by Prudential help provide an indication of a fund s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry. We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due a significant change the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest. You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser. Fund Managers Name: Manager of the underlying fund for: Prudential Portfolio Management Group 16 years, 6 months For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or dealing cycle is not facred in performance of the Prudential fund. You may therefore see a difference between the Prudential fund s performance and that of any underlying fund it invests in. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Sck Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicar of future performance. The figures shown are intended only demonstrate performance hisry of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement of the daily price and is shown as tal return in GBP with gross income reinvested. The value of your investment can go down as well as up and you may not get back the amount you put in. This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is provide an insight in how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Invesrs should refer their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

31 Prudential Long Term Bond (previously known as Pre-Retirement) S3 Portfolio data accurate as at: 31/05/17 Top 10 Holdings Name % Weight Secr Country 1 4¼% Treasury Sck % Bonds United Kingdom 2 4 1/2 Treasury % Bonds United Kingdom 3 4¼% Treasury Sck % Bonds United Kingdom 4 4¼% Treasury Gilt % Bonds United Kingdom 5 4½% Treasury Gilt % Bonds United Kingdom 6 4% Treasury Gilt % Bonds United Kingdom 7 4¼% Treasury Gilt % Bonds United Kingdom 8 4¾% Treasury Sck % Bonds United Kingdom 9 3½% Treasury Gilt % Bonds United Kingdom 10 3¾% Treasury Gilt % Bonds United Kingdom Asset Allocation Regional Allocation UK Gilts 53.46% International Bonds 24.13% UK Corporate Bonds 21.12% Cash and Equivalents 1.47% Other Assets -0.18% UK 74.58% Developed Europe - Excl UK 13.65% North America 7.69% Cash and Equivalents 1.47% South & Central America 1.14% Non-Classified 0.69% Other Regions 0.79% Bond Secr Breakdown Basic Materials 0.44% Consumer Goods 2.91% Consumer Services 4.74% Financials 14.54% Health Care 1.81% Industrials 4.61% Oil & Gas 0.68% Other Secrs 70.29% Fixed Interest Quality Profile AA 60.27% BBB 15.85% A 14.88% AAA 2.40% Sub-Investment Grade 1.73% Unknown Quality 3.58% Cash and Equivalents 1.47% Other Asset Types -0.18% Top Country Breakdown United Kingdom 74.58% United States 7.64% France 4.83% Netherlands 3.14% Luxembourg 2.26% Cash and Equivalents 1.47% Ireland 1.28% Other Countries 4.79% Fixed Interest Maturity Profile > 15Yr Maturity 96.86% Cash And Equivalents 1.47% 10Yr - 15Yr Maturity 0.75% < 5Yr Maturity 0.69% 5Yr - 10Yr Maturity 0.41% Unknown Maturity -0.18% Fixed Interest Currencies Pound Sterling 98.26% Cash 1.47% Euro 0.34% US Dollar 0.11% Non-Fixed Interest Assets -0.18% The Industry Classification is a product of FTSE International Limited and has been licensed for use.