Short Fund Guide. Prudential International Investment Bond International Prudence Bond

Transcription

1 Short Fund Guide Prudential International Investment Bond International Prudence Bond

2 Introduction This short fund guide gives you a list of funds you can choose from, an indication of the potential reward and risk of each fund and information on fund charges. Your financial adviser will give you a full fund guide when you take out a bond. This guide provides more information on the funds available, including the objective of each fund and its risk profile. Potential reward and risk indicator Investing is about balancing the risk you are comfortable with alongside the potential rewards that you want to achieve. Your attitude to investment risk is personal to you and may change in the future. The table opposite can help illustrate this concept. It s not exhaustive, but covers a wide range of funds and investments and shows the general principle that, as the level for potential higher returns increases so does the level of risk. On pages 5 to 7 you can see how these potential reward and risk indicator numbers relate to our funds. Some key considerations: > The value of our funds may fluctuate. You may not get back the full amount of your original investment. > For investments in the PAC With-Profits Funds, the value of the policy depends on the profits made by the With-Profits Fund of The Prudential Assurance Company Limited and how these profits are distributed. > These risk rating categories have been developed by Prudential International to help provide an indication of the potential level of reward and risk that is attributable to a fund based on the type of assets which may be held within the fund. > Prudential International will keep the risk rating categories under regular review and as such they may be subject to change in the future. > Where a risk rating is amended as a result of a material change in our view of the level of risk for the fund, for example due to a significant change to the assets held by the fund or in the way the fund is managed, information will be provided on the new risk rating. > Please remember that the name of a fund is not indicative of the risk that it may take. > We strongly recommend that before making any fund choice in the future you ensure you understand the appropriate risk ratings at that time. You will find this information in our Fund Guides. You should also consider discussing your decision with your financial adviser. It is important to also note that your adviser may make their own assessment of the risk rating of funds when considering your needs and objectives, and this may differ from Prudential International s own internal assessment. The information included in this guide is correct as at 25 January 2016 unless otherwise stated. > Other companies may use different descriptions and as such these risk rating categories should not be considered as generic to the fund management industry. 2 Short Fund Guide: Prudential International Investment Bond, International Prudence Bond

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

4 Fund Information Important Explanations > The fund value The value of an investment can go down as well as up and the value in future may be less than the amount invested. For the PruFund Range of Funds what you receive will depend upon the value of the underlying investments, the Expected Growth Rates set by the Prudential Directors having regard to the expected long term investment returns on the assets of the funds, the smoothing process, whether you have chosen a Protected Fund and when you take your money out. The guarantee, if applicable, is applied to your bond on the guarantee date. Investments in the PAC With-Profits Funds and the PruFund Range of Funds are backed by assets in the With-Profits Fund of The Prudential Assurance Company Ltd, through a reinsurance agreement. These funds aim to protect investors against some of the ups and downs of investment performance using smoothing mechanisms. However, there are significant differences in the way this is done for the PAC With-Profits Funds and for the PruFund Range of Funds. Please refer to Your guide to investing in With-Profits and Your guide to investing in the PruFund Range of Funds for more information. > Fund Annual Management Charge We take an Annual Management Charge (AMC) from each of the funds you invest in. These are shown on pages 5 to 7. If the AMC exceeds the return earned, the fund will go down in value. In general the AMC is taken by the deduction each day of 1/365th of the applicable Annual Management Charge, from the relevant unit linked fund. This differs slightly for With-Profits and PruFund. The AMC is already taken into account when we calculate the bonus rates for the PAC With-Profits Funds. The AMC for the PruFund Funds is taken by the monthly cancellation of units from each investment. For investments in the PAC With-Profits Funds, the value of the policy depends on the profits made by the With-Profits Fund of the Prudential Assurance Company Limited and how these profits are distributed. The PruFund Protected Funds include a guarantee which takes effect on a selected anniversary of your bond. On your chosen Guarantee Date your fund will have a value equal to at least the value of the fund holding at the start of the investment, after a proportional reduction for any regular or one-off withdrawals. There is an annual charge for the guarantee. The charge is taken monthly but it is expressed as an annual percentage of fund. The charge is taken by unit cancellation monthly in arrears. More details of charges can be found in The PruFund Range of Funds: Guarantee options, which your financial adviser can give you. Additional Fund for Investment-Linked Funds In addition to our management charges, there are further costs which impact the overall performance of the fund. All other charges, excluding dealing costs, as explained in the paragraph below, are shown on pages 5 to 7. When a fund manager trades the investments in your fund (for example, makes a decision to sell one holding and buy another) there are associated costs, for example taxes, which the fund pays. These costs are paid for out of the overall performance of the fund and are not included in the Additional Charge section on pages 5 to 7. For funds that invest directly or indirectly in property there are additional costs incurred for the development, maintenance, operation and renovation of the properties held. These costs are known as property expenses, and are paid for out of the overall performance of the fund. These costs are included in the Additional Charge section on pages 5 to 7. may vary in future and they may be higher than they are now. Please see your full fund guide for further information. If you are in any doubt about this product option, your fund choice or the charges applicable then we recommend you speak to your financial adviser. The Fund listed in this guide are correct as at 25 January These Prudential funds may hold an element of cash due to the short delay between new investments being received by the Prudential fund and being placed in the underlying investment(s), and this may have an impact on the performance of the Prudential fund when compared to the underlying investment(s). You can find details of how we manage our Unit-Linked Funds at pru.co.uk/ppfm/ul. You will also find there a shortened customer friendly version, our Customer Guide, which explains briefly how the Prudential unit-linked funds work, our current approach to managing them, and the standards and practices we use to manage the funds. Principally, this Customer Guide will explain: > the nature and extent of the decisions we take to manage the funds, and > how we treat customers and shareholders fairly 4 Short Fund Guide: Prudential International Investment Bond, International Prudence Bond

5 Funds Association of British Insurers (ABI) Sector Potential reward and risk indicator Base AMC Additional Total Prudential Multi-Asset Funds Managed Defensive (Euro) Fund Mixed Investment 0-35% Shares Managed Defensive (USD) Fund Mixed Investment 0-35% Shares PAC US Dollar With-Profits Fund Unclassified PAC Euro With-Profits Fund Unclassified PAC Sterling With-Profits Fund Unclassified PruFund Cautious (Euro) Fund Unclassified PruFund Cautious (Sterling) Fund Unclassified PruFund Cautious (US Dollar) Fund Unclassified PruFund Growth (Euro) Fund Unclassified PruFund Growth (Sterling) Fund Unclassified PruFund Growth (US Dollar) Fund Unclassified PruFund Protected Cautious (Euro) Fund* Unclassified PruFund Protected Cautious (Sterling) Fund* Unclassified PruFund Protected Cautious (US Dollar) Fund* Unclassified PruFund Protected Growth (Euro) Fund* Unclassified PruFund Protected Growth (Sterling) Fund* Unclassified PruFund Protected Growth (US Dollar) Fund* Unclassified Dynamic Focused Portfolios** Dynamic Focused 0-30 Portfolio (previously known as Managed Defensive (Sterling) Fund) Dynamic Focused Portfolio (previously known as Cautious Managed Growth) Dynamic Portfolios** Dynamic 0-30 Portfolio (previously known as Defensive Portfolio) Dynamic Portfolio (previously known as Cautious Portfolio) Dynamic Portfolio (previously known as Cautious Growth Portfolio) Dynamic Portfolio (previously known as Balanced Portfolio) Dynamic Portfolio (previously known as Adventurous Portfolio) Mixed Investment 0-35% Shares Mixed Investment 20-60% Shares Mixed Investment 0-35% Shares Mixed Investment 20-60% Shares Mixed Investment 20-60% Shares Mixed Investment 40-85% Shares Flexible Investment * This fund is only available when you take out your bond (or when your bond starts). ** Each portfolio is a single fund choice, although each portfolio will invest in a number of underlying funds. Short Fund Guide: Prudential International Investment Bond, International Prudence Bond 5

6 Funds Association of British Insurers (ABI) Sector Potential reward and risk indicator Base AMC Additional Total Additional Fund Choice Balanced Managed (Sterling) Fund Mixed Investment 40-85% Shares Balanced Managed (US Dollar) Fund Mixed Investment 20-60% Shares Baring Hong Kong China (US Dollar) Fund Global Emerging Markets Equities Deferred Distribution (Euro) Fund Distribution Funds Deferred Distribution (Sterling) Fund Distribution Funds Deferred Distribution (US Dollar) Fund Distribution Funds Equity Fund UK All Companies Euro Deposit Fund Money Market European Fund Europe ex UK Equities European Index Tracker Fund Europe ex UK Equities Fidelity Euro Balanced (Euro) Fund Mixed Investment 20-60% Shares Fidelity Global Focus (US Dollar) Fund Global Equities Fidelity Managed International Fund Global Equities HSBC Amanah Global Equity Index (US Dollar) Fund Global Equities HSBC Chinese Equity (US Dollar) Fund Global Emerging Markets Equities HSBC Indian Equity (US Dollar) Fund Global Emerging Markets Equities Invesco Perpetual Income Fund UK All Companies Invesco Perpetual Managed Growth Fund Flexible Investment M&G Asian Fund Asia Pacific ex Japan Equities M&G Corporate Bond Fund Sterling Corporate Bond M&G Dividend Fund UK Equity Income M&G Episode Allocation Fund Mixed Investment 20-60% Shares M&G Episode Growth Fund Mixed Investment 40-85% Shares Short Fund Guide: Prudential International Investment Bond, International Prudence Bond

7 Funds Association of British Insurers (ABI) Sector Potential reward and risk indicator Base AMC Additional Total Additional Fund Choice (continued) M&G Gilt & Fixed Interest Income Fund UK Gilts M&G Global Basics Fund Global Equities M&G Global High Yield Bond Sterling High Yield M&G Global Select Fund Global Equities M&G Managed Growth Fund Global Equities M&G Property Fund*** UK Direct Property Mellon Global Bond (US Dollar) Portfolio Global Fixed Interest Morgan Stanley European Property (Euro) Fund Global Property North America Fund North America Equities UK Deposit Fund Money Market US Dollar Deposit Fund Money Market *** For consistency and transparency we show the Total including the Property Expense Ratio (PER). The PER captures all nonrecoverable expenses associated with the management and operation of the property portfolio. Further information You will find an explanation of each of the ABI sector classifications on pru.co.uk/abi. Short Fund Guide: Prudential International Investment Bond, International Prudence Bond 7

8 The registered office of Prudential International is in Ireland at Montague House, Adelaide Road, Dublin 2. Prudential International is a marketing name of Prudential International Assurance plc. Registration No Telephone number If the Company should become unable to meet its liabilities, the Financial Services Compensation Scheme will protect eligible policyholders habitually resident in the UK when their contract starts, with effect from 1 December This protection does not extend to externally-linked investments. Prudential International Assurance plc is authorised by the Central Bank of Ireland and is subject to limited regulation by the Financial Conduct Authority for UK business. Details on the extent of our regulation by the Financial Conduct Authority are available from us on request. IPBF /2016