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New options aim to add to clarity of Prudence

Prudential is offering several new options on its Prudence bond in a move it says will help bring greater flexibility and clarity to with-profits bonds.

The options include no initial charges, a minimum 100 per cent allocation rate and an annual bonus for investors who do not make withdrawals.

The no initial charge option means investors pay no front-end charge or establishment charge. With-profits investors who make no withdrawals in a policy year will benefit from Pru&#39s annual growth reward, meaning an additional 0.25 per cent will be added to their fund annually from the end of their second year.

Funds available to inv-estors include the optimum return fund, which aims to maximise growth over the medium to long term by focusing on equities, and the optimum bonus fund, which places a greater emphasis on fixed-interest securities and cash. Minimum investment is £6,000, or £5,000 if investing in Pru&#39s unit-linked funds, with top-ups of £1,000 allowed. Investors can make two free switches each year.

Investment market strategy manager Campbell Boyd says: “This new product will build on the success achieved to date and will ensure IFAs have the opportunity to maintain long-term mutually beneficial relationships with their customers.”

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