Finance and Capital Management
Customer perspective
Smoothing mechanism and Unit Price Adjustments¹ in practice
In practice
PruFund Growth actual returns
from inception to H1 2019
The combination of EGR and
Annual Charges² defines the
slope of the curve
PruFund Growth Fund
UK RPI Cumulative Rate
ABI Mixed Investment 20-60% shares
Cash SONIA Cumulative Rate
2006
2007
2008
<600
2011
2012
2013
2014
Upward unit price
adjustment
2015
2016
2017
2018
2019
Sequence of downward
unit price adjustments
following the GFC3
1. Smoothing mechanism can be temporarily suspended in exceptional circumstances to protect the With-Profits Fund; if it is suspended, the smoothed unit price of the affected fund is set equal to the unsmoothed price
2. Charges refer to any charge allowed for in the unit pricing. Note that some charges may be taken by unit cancellation depending on product wrapper; 3. Global Financial Crisis
92%
55%
45%
18%
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