Product description Prudential Flexible Investment Plan Managed Bond (Initial Charge Option) Mini...
Prudential Flexible Investment Plan Managed Bond (Initial Charge Option)
Minimum age attained at entry The minimum age attained at entry is three months attained. Plan owner - 18 years.
Maximum age attained at entry The maximum age at entry is 89 years attained.
Minimum standalone single premium (£) £10,000.
Minimum additional single premium (£) £5,000 per bond.
Initial charge incorporated in the bid/offer spread (%)
The initial charge is 5%.
Annual management charge (% per year)
Internal funds 1.25%-1.70%, External funds 1.55%-2.76%
Administration fee (%)
No other charges are levied.
Policy fee (£)
There is no policy fee.
Early surrender charge levied % Year, Year 2 etc
Discontinuance Charge - If, within five years of the Commencement Date of the Bond, units are realised to meet a full surrender or partial withdrawal, then the bid value of the units so realised may be reduced by applying a Discontinuance Charge in accordance with the following table:
Encashed Deduction as in year % of the value
of the units
(In addition to details already given under 'column value') The discontinuance charge will not be applied on death, Long Term Care (for example, confinement to a nursing home/hospital for 90 consecutive days or more) , regular withdrawals of up to 7.5% per year or switches.
There will be the option at outset to reduce the length of time that surrender charges are applicable, from five years to three years. This option is paid for through a 1% reduction in the allocation rate on the initial investment and on any top-up investments made within the first three years from the date of the original investment.
Allocation rates (%) The percentage of the investment allocated to purchase units depends on the size of the investment as shown in the table below.
Loyalty bonus From end of year two, an Annual Growth Rate of 0.25% per annum of the fund value will be received for each and every policy year in which no withdrawals are made (0.35% for with profit fund).
Also there is a 1% loyalty bonus in year 5 and 10 where funds are held in unit linked funds.
Number of funds available
• With Profits Fund - Optimum Bonus 1.25%
• With Profits Fund - Optimum Return 1.25%
l Managed 1.25%
• Equity 1.25%
• Fixed Interest 1.25%
• Property 1.25%
• International 1.30%
• Strategic Growth Unit Trust Linked 1.30%
• European 1.30%
• North American 1.30%
• Pacific Basin 1.35%
• Japanese Unit Trust Linked 1.35%
• Small Companies Unit Trust Linked 1.30%
• Cash 1.25%
• Equity Income 1.36%
• Ethical 1.67%
• Corporate Bond 1.31%
• Cautious UK Managed 1.26%
• Prudential Managed Defensive Fund 1.33%
• Pacific Markets UTL 1.35%
• Prudential UK 70% Protected Investment Fund (IC charging structure) 1.70%
• Prudential UK 80% Protected Investment Fund (IC charging structure) 1.70%
• DWS Managed Portfolio 1.95%
• DWS UK Growth 1.96%
• DWS American Growth 2.00%
• DWS Japan Growth 2.01%
• Merrill Lynch Managed 1.50%
• Newton Managed 1.55%
• INVESCO PERPETUAL Managed 1.90%
• UBS Managed 1.40%
• Schroder Managed 1.40%
• M&G Managed Growth Fund 1.60%
• M&G Corporate Bond 1.60%
• M&G Cazenove Growth Portfolio 2.76%
• M&G Cazenove Balanced Portfolio 2.76%
• M&G Cazenove Cautious Portfolio 2.76%
• M&G High Yield Corporate Bond Fund 1.71%
• M&G Gilt and Fixed Interest Income Fund 1.69%
• Prudential UK Tracker 1.45%
• Pru European Tracker 1.46%
• Newton Higher Inc Fund 1.50%
• INVESCO PERPETUAL Income Fund 1.78%
• INVESCO PERPETUAL UK Growth 2.02%
• Newton Intl Growth 1.93%
• Newton Balanced 1.71%
• Newton Continental European 1.93%
• Newton Oriental 1.88%
Index tracker/passive managed funds available Yes
Ethical/environmental fund links available Yes
Externally managed funds
There are a number of externally managed funds available.
Managed fund name
• Managed Fund
• Invesco Perpetual Managed
• Merrill Lynch Managed
• Newton Managed
• Schroder Managed
• UBS Managed
• M&G Managed Growth
• M&G Cazenove Cautious Managed Portfolio
• DWS Managed Portfolio Fund
• Cautious UK Managed Fund
• Managed Defensive Fund
Plan can be written on a single life basis Yes.
Plan can be written on a joint life 1st death basis The Plan can also be written on a joint life first death basis.
Plan can be written on a joint life 2nd death basis Yes.
Option to split the plan into a cluster of policies The bond is normally split into 20 identical policies. The bond can be written with up to 100 cluster upon request.
Percentage paid out on death of the life assured The percentage paid out on death is 101% of the bid value of units (100.1% where the assured is aged 75 or over when the Plan is taken out). There will be an optional Guaranteed Minimum Death Benefit that guarantees that the minimum amount paid out on death will be the total premium(s) paid less any withdrawals (regular or partial) or the fund value whichever is greater. This optional benefit is only available for policyholders age 74 attained or less on entry. This option must be selected at outset. For this option there is an explicit charge. The charge is the sum at risk multiplied by a mortality factor
Fixed sum regular withdrawals available The minimum cash value to be taken is £50 per payment.
Regular withdrawals as a fixed percentage of current value Up to 7.5% per policy year. For the With Profit fund
MVAs will not apply on death or regular withdrawals up to 5% per year (max reg w/d allowed is 7.50%, however there is no MVR free guarantee above 5.00%) or £25K in any 12-month period. There is no MVR free limit on investments of less than five years' duration.
Withdrawals can be increased automatically Yes.
Regular income payment frequencies A regular series of payments can be provided by encashing units annually, half-yearly, quarterly, termly or monthly subject to the minimum amount of £50 being taken for each payment.
Phased investment option available For between three and 24 months.
Share exchange scheme available Yes.
Provider's web site www.pru.co.uk