We are pleased to confirm exciting news – just announced – from Prudential regarding their With-Profits Fund and PruFund.
Here’s the background:
“We have more money in our With-Profits Sub Fund than we expect to pay out to plan holders. We call this the inherited estate, and this has been built up over many years.
Having an inherited estate helps us look after the long term interests of our plan holders. It gives us more flexibility for our investments and allows us to hold back some money in the good years to pay out more in the bad years.
We regularly check the size of the inherited estate, to make sure we have enough money, but not too much.
We now have more than we need in the inherited estate and so we’ve decided it would be fair to share some of it with some of our plan holders”
Clients invested in a PruFund fund within any policy will see an increase in your unit price by 0.9% on 26 February 2020. For example, a £20,000 ISA should expect to receive an uplift of approximately £180 overnight.
For ‘With Profit’ Bond clients, Prudential have increased the unsmoothed value of your plan by 1.25%. Final bonus rates will reflect the benefit of this change from 1 April 2020 for many customers. This increase will also be reflected in any final bonuses Prudential declare in future.
The above increase is in addition to the annual bonus declaration on the With-Profit Fund for March 2020 which has also delivered great results. https://www.pru.co.uk/pdf/ANNS1079803.pdf
This is positive and exciting news to clients invested in the With-Profits fund – which continues to provide competitive returns and aims to smooth some of the extreme short-term ups and downs of the markets. Prudential’s With-Profits fund is the largest With-Profits fund in the UK.
For those clients who subscribe to our ongoing service proposition, we will be in touch soon with the personalised details on your individual investments. If you have any questions then please just give us a call on 0800 833 389 or email us at email@example.com.