Revamped Prudence bond offers greater flexibility

Prudential has relaunched its International Prudence bond with new fund and spot guarantee options.

Investors can now choose guarantee options of between six and 10 years, where previously there was only a 10-year option, and a new PruFund protected growth fund option has also been added.

An annual product charge of 1.2 per cent is levied for five years. Annual management charge is 1.2 per cent.

The annual growth reward of 0.1 per cent of the total investment, providing no withdrawals are made, now applies from year one instead of year five.

The bond was already Prudential’s top seller, accounting for 63 per cent of the firm’s international sales. The improvements come after consultation with advisers.

The fund is available in the UK, Malta, Gibraltar, Cyprus, the Channel Islands, the Isle of Man, Spain and France.

Head of business development for investments Paul Fidell says the changes will make the bond more attractive. He says: “The improved bond will have strong appeal as those investors looking for flexibility, tax advantages and a good return will find an option that is very attractive.

“The addition of PruFund protected growth alongside the most popular fund option, PruFund protected cautious, is sure to be an even stronger driver of sales.”

MBL Financial deputy chief executive Simon Pickering says: “The extra flexibility will really help in retirement planning.”