Optimum Bonus With-Profits – Life Fund - Pru-Adviser

1 Pru part of M&G pie Optimum Bonus With-Profits Life Fund This is a With-Profits investment option for our Prudence Bonds, Flexible Investment Plan and Prudential Investment Plan. Access to this fund is no longer available to new customers investing in Prudential Investment Plan (PIP) on or after 11/09/ 2017 . If you are an existing customer pre 11/09/ 2017 , you will still be able to top up or switch into this fund. This document is for use by individuals who are familiar with investment terminology. Please note, we are not making any recommendations as to the suitability of the fund or any investment choices. For advice regarding an investment decision, and if there is product information included that you would like to discuss, then please contact your financial adviser.

2 Fund aim Fund manager commentary Q4 2021. Objective: The fund aims to produce medium to long Despite the persistence of the COVID-19 pandemic into term growth and generate income. The fund currently the final quarter of the year, many risk assets enjoyed a invests in UK and international equities, property, fixed buoyant end to 2021. US shares registered their strongest interest securities, index-linked securities and other quarterly performance of the year, while shares in Europe specialist investments. also ended higher. Returns from some stockmarkets in Asia and many emerging market countries lagged, as Asset allocation a stronger US dollar, pandemic-related difficulties and concerns over the financial health of the Chinese property UK Equities market continued to weigh on investor appetite.

3 North American Equities -- Bond markets were mostly lower in the quarter , capping European Equities a disappointing year for fixed income assets in general, as Japanese Equities sustained global inflationary pressure dampened investor Paci c Market Equities appetite for the asset class. Global Emerging Market Equities Property UK commercial property enjoyed another quarter of solid UK Fixed Interest performance, with total returns from all sectors providing Euro Fixed Interest a positive contribution in the final quarter of 2021. Whilst US Fixed Interest the arrival of the Omicron variant is unwelcome, so far Asia Fixed Interest at least it has not impacted the performance of property Other Fixed Interest assets as investors appear prepared to look through the Alternative Assets Cash - This is the asset allocation for the fund as at 31 December 2021.

4 Asset allocations are regularly reviewed and may vary from time to time, but will always be consistent with the fund objective. near-term impact of the new virus strain into 2022. Trends of the past few months remain in play, with ongoing strong demand for industrials. Retail has seen a marked recovery, primarily driven by retail warehouses. Demand for office space is also steadily gaining traction, with undersupply at the prime end allowing vacancy rates to stabilise. The M&G Treasury & Investment Office (T&IO) outlook is cautiously optimistic although much uncertainty remains as we enter 2022. This commentary reflects the general views of individual fund managers and should not be taken as a recommendation or advice as to how any specific market is likely to perform.

5 Top ten holdings* M&G Treasury & Investment 1 TAIWAN SEMICONDUCTOR MANUFACTURING Office (T&IO). 2 ASTRAZENECA PLC T&IO are our in-house asset-allocation 3 SAMSUNG ELECTRONICS LTD experts in the UK. They select a wide 4 UNILEVER PLC range of assets to hold in the With-Profits 5 MICROSOFT CORP Fund, in line with the Fund's objective. 6 APPLE INC The aim is to maximise long-term 7 GLAXOSMITHKLINE PLC investment returns while maintaining 8 ROYAL DUTCH SHELL PLC CLASS B the financial security of the Fund. 9 BP PLC 10 HSBC HOLDINGS PLC * Largest assets excluding derivatives exposure positions. Source: Prudential as at 31 December 2021. Optimum Bonus With-Profits Life Fund investment returns (after tax). Source: Prudential. These returns are before charges and the effects of smoothing.

6 These figures are based on annual performance. Optimum Bonus With-Profits Life Fund cumulative returns over 1, 5 & 10 years (after tax). 1 Year Cumulative Return 5 Years Cumulative Return 10 Years Cumulative Return Source: Prudential. All figures to 31 December 2020. Performance is before charges and the effects of smoothing. The returns shown are the returns on the underlying Please note assets and do not reflect the actual pay-outs on any plan. Please remember that past performance is not a reliable The actual returns on any plan are smoothed and whilst indicator of future performance. The rate of growth of funds investment performance is normally the most important and any income from them cannot be guaranteed. The factor in determining the level of bonuses applied to value of your investment depends on how much investment plans, other factors including charges, deductions and the profit the Fund makes and how we decide to distribute it.

7 Effects of smoothing will apply. For more information on The value of an investment can go down as well as up. smoothing, please refer to Your With-Profits Plan . You may not get back the amount you invested. A guide to how we manage the Fund. If money invested in the Optimum Bonus Life Fund is For latest information on annual Bonus rates, please refer taken out at any time, except on death, or to meet certain to the following: regular withdrawals, we may reduce the amount to reflect the current market value of the underlying assets. This is known as a Market Value Reduction. In addition, an Early Cash-In-Charge may apply in the early years of any investment into the plans. For more information please refer to your Key Features Document. INVS11513 02/2022_WEB.

8 Prudential is a trading name of The Prudential Assurance Company Limited which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.