Example Illustrations for investment in the Prudential ISA and CF Prudential OEIC Funds

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1 Important Information Example Illustrations for Investment in the Prudential ISA and CF Prudential OEIC Funds Example Illustrations for in the Prudential ISA and CF Prudential OEIC Funds

2 Important information It is a regulatory requirement for Prudential to provide you with information on the PruFund Range of Funds. In addition to this, we are also providing you with details on the CF Prudential OEIC Funds within an ISA and outside of an ISA which is not a regulatory requirement for us to provide. Capita Financial Managers are responsible for the CF Prudential OEIC Funds. The Financial Conduct Authority is a financial services regulator. It requires us, Prudential, to give you this important information to help you to decide whether the Funds within the Prudential ISA or the CF Prudential OEIC Funds outside of an ISA are right for you. You should read this document carefully so that you understand what you are buying, then keep it safe for future reference. This document should be read in conjunction with the information held in the Key Features of the Life Insurance Policy within the Prudential Individual Savings Account (ISA), the ISA Terms & Conditions, the Master Insurance Agreement Customer Version and the Fund Guide Prudential ISA PruFund Funds. The Financial Conduct Authority sets standard rates that can be used in illustrations. The purpose of this illustration is to show you what you might get back if you were to invest single or regular s into some example funds. The projected values assume that no withdrawals have been taken. Please note: Inflation would reduce what you could buy in the future with the amounts shown. Your Prudential ISA/CF Prudential OEIC Funds have no fixed term. The figures in the tables in this document are only examples and are not guaranteed they are not minimum or maximum amounts you might expect to get back. Projections are calculated using a middle rate which we believe realistically reflects the potential of our products and funds. For this illustration, we are also required by our regulator to provide additional projections using assumed rates 3% either side of this middle rate. In some circumstances, yearly rates have been limited as required by our regulator. For funds in an ISA to 2% (lower rate), 5% (middle rate) and 8% (higher rate). For Funds outside an ISA to 1.5% (lower rate), 4.5% (middle rate) and 7.5% (higher rate). Please note that charges may vary by provider. What you get back depends on how your grows, any withdrawals you make and the charges. You could get back more or less than the examples shown and it may be less than the amount paid in. You can keep your money invested in your account for as long as you want while the Prudential ISA remains open for. This is based on our understanding, as at August 2015, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax relief) depends on individual circumstances. The Prudential ISA is provided by Capita Financial Investments Limited, who are the ISA Plan Manager. Capita Financial Managers are responsible for the CF Prudential OEIC Funds. Telephone number for enquiries regarding both the Prudential ISA and CF Prudential OEIC Funds is: Calls may be monitored or recorded for quality and security purposes. 2 Important information for your Investment

3 Charges > The charges may vary in the future and they may be higher than they are now > The tables show the yearly rate for the charges > For more information on PruFund charges, please see your Fund Guide Prudential ISA PruFund Funds and the Master Insurance Agreement Customer Version > For more information on the charges relating to the CF Prudential OEIC Funds please see your Key Investor Information Documents for each fund (KIID) and prospectus. What are the charges? Charges will be deducted from the funds to cover the costs of expenses and charges. Adviser Charges will also be deducted that you've agreed to pay your Adviser. For a list of Annual Management Charges (AMCs) please refer to page 4. > For Prudential ISA PruFund Range of Funds examples are shown in Section 1 on pages 5 to 7. > For Prudential ISA CF Prudential OEIC Funds examples, Ongoing Charges are shown in Section 2 on pages 8 to 12. > For CF Prudential OEIC Funds examples outside of an ISA, Ongoing Charges are shown in Section 3 on pages 13 to 17. Please refer to the glossary on page 18 for more information on AMC and Ongoing Charges. The examples in this document are based on an Ongoing Adviser Charge of 0.5% each year of the fund value. However, you can agree a different level of Ongoing Adviser Charge with your Adviser. You can cancel the Ongoing Adviser Charge at any point in the future. The figures in this document assume no Set Up Adviser Charge is facilitated. However, you can choose to pay any Set Up Adviser Charge on top of, or included in the amount you want to invest. Please contact your adviser if you have any queries. Important information for your Investment 3

4 We offer the following Funds: Fund Name Annual Management Charge (AMC) each Year Ongoing Charge Ongoing Charges* (includes the AMC) PruFund Cautious Fund 1.35% N/A 1.35% PruFund Growth Fund 1.35% N/A 1.35% PruFund % N/A 1.35% PruFund % N/A 1.35% PruFund % N/A 1.35% PruFund % N/A 1.35% CF Prudential Dynamic Focused 0-30 Portfolio 0.85% 0.21% 1.06% CF Prudential Dynamic Focused Portfolio 0.85% 0.23% 1.08% CF Prudential Dynamic Focused Portfolio 0.85% 0.24% 1.09% CF Prudential Dynamic Focused Portfolio 0.85% 0.24% 1.09% CF Prudential Dynamic Focused Portfolio 0.85% 0.26% 1.11% CF Prudential Dynamic 0-30 Portfolio 0.90% 0.78% 1.68% CF Prudential Dynamic Portfolio 0.90% 0.83% 1.73% CF Prudential Dynamic Portfolio 0.90% 0.88% 1.78% CF Prudential Dynamic Portfolio 0.90% 0.97% 1.87% CF Prudential Dynamic Portfolio 0.90% 1.03% 1.93% The examples within this document are based on the PruFund Growth Fund, the CF Prudential Dynamic Focused 0-30 Portfolio and the CF Prudential Dynamic Portfolio. The Range of PruFund Funds For these Funds, the AMC is taken by the monthly cancellation of units from each. CF Prudential OEIC Funds * The Ongoing Charge figure includes the Annual Management Charge. It is disclosed in the CF Prudential Key Investor Information Document and is based on the total of all charge payments made over a year, and includes charges such as the funds annual management charge (AMC), custodian charge, and administration fee. These figures are based on the R Accumulation Share class and may vary from time to time. The AMC covers the ongoing costs of a fund. This will include the costs of management and administration of the fund. The AMC is incorporated in the daily unit pricing for the CF Prudential OEIC Funds. 4 Important information for your Investment

5 Section 1 Example Illustration for the PruFund Funds in the Prudential ISA The PruFund Range of Funds are provided by the Prudential Assurance Company Limited. Important information for your Investment 5

6 Example Illustration Assuming an initial of 15,000, 100 each month regular and a 50,000 transfer value For the PruFund Funds in the Prudential ISA The following figures should be taken into account when considering the impact of charges on your into the PruFund Funds in the Prudential ISA. PruFund Growth Fund What I might get back? The table below provides examples of what you might get back if the initial of 15,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the PruFund Growth Fund with an Annual Management Charge of 1.35% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Total paid in Assuming 2% Assuming 5% Assuming 8% Single premium 15, ,000 15,000 15,400 15, ,000 15,000 16,400 17, ,000 15,000 17,400 20, ,000 15,100 20,300 26,900 Regular 100 monthly 1 1,200 1,200 1,210 1, ,600 3,600 3,770 3, ,000 6,010 6,480 6, ,000 12,000 14,000 16,300 Transfer value of 50, ,000 50,000 51,500 53, ,000 50,100 54,700 59, ,000 50,300 58,100 66, ,000 50,600 67,600 89,700 6 Important information for your Investment

7 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 5% each year. The table assumes an in the PruFund Growth Fund with an Annual Management Charge of 1.35% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Total paid in Total actual deductions Effect of deductions What you might get back Single premium 15, , , , , ,000 1,530 1,690 17, ,000 3,320 4,120 20,300 Regular 100 monthly 1 1, , , , , , ,000 1,270 1,460 14,000 Transfer value of 50, , , ,000 2,970 3,120 54, ,000 5,110 5,630 58, ,000 11,000 13,700 67,600 What are the deductions for? The deductions include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total deductions, over 10 years, could amount to: Single Premium 15,000 Regular Investment 100 Transfer value of 50,000 4,120 1,460 13,700 Putting it another way, this would have the same effect as bringing the assumed used from 5% a year down by the figures shown below to 3.10% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Over 5 years Over 10 years 1.90% 1.90% Important information for your Investment 7

8 Section 2 Example Illustration for the CF Prudential OEIC Funds in the Prudential ISA The OEIC Funds are provided by Capita Financial Management. 8 Important information for your Investment

9 Example Illustration Assuming an initial of 15,000, 100 each month regular and a 50,000 transfer value For the CF Prudential OEIC Funds in the Prudential ISA The following figures should be taken into account when considering the impact of charges on your into the CF Prudential OEIC Funds within the Prudential ISA CF Prudential Dynamic Focused 0-30 Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 15,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the CF Prudential Dynamic Focused 0-30 Portfolio with an Ongoing Charge including the Annual Management Charge of 1.06% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Investment to date Assuming 2% Assuming 5% Assuming 8% Single premium 15, ,000 15,000 15,500 15, ,000 15,100 16,500 18, ,000 15,300 17,700 20, ,000 15,600 20,900 27,700 Regular 100 monthly 1 1,200 1,200 1,220 1, ,600 3,620 3,790 3, ,000 6,060 6,530 7, ,000 12,200 14,200 16,600 Transfer value of 50, ,000 50,200 51,600 53, ,000 50,600 55,200 60, ,000 51,000 59,000 67, ,000 52,100 69,600 92,300 Important information for your Investment 9

10 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 5% each year. The table assumes an in the CF Prudential Dynamic Focused 0-30 Portfolio with an Ongoing Charge including the Annual Management Charge of 1.06% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Investment to date Total actual deductions Effect of deductions What you might get back Single premium 15, , , , , ,000 1,300 1,430 17, ,000 2,840 3,530 20,900 Regular 100 monthly 1 1, , , , , , ,000 1,080 1,240 14,200 Transfer value of 50, , , ,000 2,520 2,640 55, ,000 4,340 4,790 59, ,000 9,480 11,700 69,600 What are the deductions for? The deductions include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total deductions, over 10 years, could amount to: Single Premium 15,000 Regular Investment 100 Transfer value of 50,000 3,530 1,240 11,700 Putting it another way, this would have the same effect as bringing the assumed used from 5% a year down by the figures shown below to 3.40% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Over 5 years Over 10 years 1.60% 1.60% 10 Important information for your Investment

11 CF Prudential Dynamic Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 15,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the CF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.93% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Investment to date Assuming 2% Assuming 5% Assuming 8% Single premium 15, ,000 14,900 15,300 15, ,000 14,700 16,100 17, ,000 14,600 16,900 19, ,000 14,300 19,100 25,300 Regular 100 monthly 1 1,200 1,190 1,210 1, ,600 3,570 3,730 3, ,000 5,930 6,380 6, ,000 11,700 13,600 15,800 Transfer value of 50, ,000 49,700 51,200 52, ,000 49,300 53,800 58, ,000 48,800 56,500 65, ,000 47,700 63,800 84,600 Important information for your Investment 11

12 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 5% each year. The table assumes an in the CF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.93% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Investment to date Total actual deductions Effect of deductions What you might get back Single premium 15, , , ,000 1,160 1,220 16, ,000 1,980 2,190 16, ,000 4,230 5,270 19,100 Regular 100 monthly 1 1, , , , , , ,000 1,630 1,880 13,600 Transfer value of 50, ,000 1,260 1,260 51, ,000 3,870 4,070 53, ,000 6,620 7,300 56, ,000 14,100 17,500 63,800 What are the deductions for? The deductions include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total deductions, over 10 years, could amount to: Single Premium 15,000 Regular Investment 100 Transfer value of 50,000 5,270 1,880 17,500 Putting it another way, this would have the same effect as bringing the assumed used from 5% a year down by the figures shown below to 2.50% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Over 5 years Over 10 years 2.50% 2.50% 12 Important information for your Investment

13 Section 3 Example Illustration for the CF Prudential OEIC Funds The OEIC Funds are provided by Capita Financial Management. Important information for your Investment 13

14 Example Illustration Assuming an initial of 15,000, 100 each month regular and a 50,000 transfer value For CF Prudential OEIC Funds only The following figures should be taken into account when considering the impact of charges on your into CF Prudential OEIC Funds. CF Prudential Dynamic Focused 0-30 Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 15,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the CF Prudential Dynamic Focused 0-30 Portfolio with an Ongoing Charge including the Annual Management Charge of 1.06% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Investment to date Assuming 1.5% Assuming 4.5% Assuming 7.5% Single premium 15, ,000 14,900 15,400 15, ,000 14,900 16,300 17, ,000 14,900 17,200 19, ,000 14,800 19,900 26,400 Regular 100 monthly 1 1,200 1,190 1,210 1, ,600 3,590 3,760 3, ,000 5,980 6,450 6, ,000 11,900 13,800 16,100 Transfer value of 50, ,000 49,900 51,400 52, ,000 49,800 54,400 59, ,000 49,800 57,600 66, ,000 49,600 66,400 88, Important information for your Investment

15 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 4.5% each year. The table assumes an in the CF Prudential Dynamic Focused 0-30 Portfolio with an Annual Management Charge of 1.06% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Total paid in Total actual deductions to date Effect of deductions to date What you might get back Single premium 15, , , , , ,000 1,280 1,400 17, ,000 2,760 3,360 19,900 Regular 100 monthly 1 1, , , , , , ,000 1,060 1,200 13,800 Transfer value of 50, , , ,000 2,490 2,610 54, ,000 4,280 4,670 57, ,000 9,220 11,200 66,400 What are the deductions for? The deductions include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of total deductions, over 10 years, could amount to: Single Premium 15,000 Regular Investment 100 Transfer value of 50,000 3,360 1,200 11,200 Putting it another way, this would have the same effect as bringing the assumed used from 4.5% a year down by the figures shown below to 2.90% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Over 5 years Over 10 years 1.60% 1.60% Important information for your Investment 15

16 CF Prudential Dynamic Portfolio What I might get back? The table below provides examples of what you might get back if the initial of 15,000 grows at the rates shown below. It also shows an example of what you might get back based on a regular of 100 each month and an example of what you might get back based on a transfer value of 50,000. The table assumes an in the CF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.93% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Investment to date Assuming 1.5% Assuming 4.5% Assuming 7.5% Single premium 15, ,000 14,800 15,200 15, ,000 14,500 15,900 17, ,000 14,300 16,500 19, ,000 13,600 18,200 24,200 Regular 100 monthly 1 1,200 1,190 1,210 1, ,600 3,540 3,710 3, ,000 5,850 6,310 6, ,000 11,400 13,200 15,400 Transfer value of 50, ,000 49,500 50,900 52, ,000 48,600 53,000 57, ,000 47,600 55,100 63, ,000 45,400 60,800 80, Important information for your Investment

17 How much will the charges and expenses affect my? Each section in the table below shows what you could get back if you cash in your plan assuming the s grow at 4.5% each year. The table assumes an in the CF Prudential Dynamic Portfolio with an Ongoing Charge including the Annual Management Charge of 1.93% and an Ongoing Adviser Charge of 0.5% each year. At the end of year Total paid in Total actual deductions Effect of deductions What you might get back Single premium 15, , , ,000 1,150 1,200 15, ,000 1,950 2,140 16, ,000 4,120 5,020 18,200 Regular 100 monthly 1 1, , , , , , ,000 1,600 1,820 13,200 Transfer value of 50, ,000 1,250 1,250 50, ,000 3,840 4,010 53, ,000 6,530 7,130 55, ,000 13,700 16,700 60,800 What are the deductions for? The deductions include the Annual Management Charge which will have an effect of reducing your. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. The last line of each section of the table above shows the effect of the total deductions, over 10 years, could amount to: Single Premium 15,000 Regular Investment 100 Transfer value of 50,000 5,020 1,820 16,700 Putting it another way, this would have the same effect as bringing the assumed used from 4.5% a year down by the figures shown below to 2.00% for each of the frequencies shown in the table above. These figures have been calculated based on the assumptions mentioned in the table above. This is called the Reduction in Yield and can be a useful means of comparing charges of different products. Over 5 years Over 10 years 2.50% 2.50% Important information for your Investment 17

18 Glossary This is a summary explanation of the terminology used within this document and other terminology you may find useful. ISA ISA stands for Individual Savings Account. In an ISA, there is no liability to pay any Personal Income Tax or Capital Gains Tax on any profit you may make. There are two types of ISAs, stocks and shares, and cash both of which have limits. Investments held in ISAs are often described as wrapped s. OEIC Funds Open Ended Investment Company (OEIC) Funds are a type of open-ended collective. The terms OEIC, collectives, and fund are used interchangeably with different managers favouring one over the other. > The CF Prudential OEIC Funds within an ISA allows the account holder to invest money without having to pay Income and Capital Gains Tax on any income or. > The OEIC Funds outside of an ISA could be subject to personal tax. The CF Prudential OEIC Funds are available as an within the Prudential ISA or as stand alone s outside of the Prudential ISA. Annual Management Charge applies to the Prudential PruFund Funds and CF Prudential OEIC Funds A charge made over the year by fund managers and product providers to cover the expenses associated with running the fund and administering the. Although it is expressed as an annual percentage figure it is usually taken from the fund daily for the CF Prudential OEIC Funds. For the PruFund Range of Funds, the AMC is taken by the monthly cancellation of units from each. Ongoing Charge applies to CF Prudential OEIC Funds only The Ongoing Charge figure disclosed in the CF Prudential Key Investor Information Document is based on the total of all charge payments made over a year, and includes charges such as the funds annual management charge (AMC), custodian charge, and administration fee. These figures may vary from year to year. The AMC covers the ongoing costs of a fund. This will include the costs of management and administration of the fund. The AMC is incorporated in the daily unit pricing. 18 Important information for your Investment

19 Important information for your Investment 19

20 "Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. GENM /2015