Optimum Return With-Profits – Life Fund - PruAdviser

1 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. If there is product information included that you would like to discuss, then please contact your financial aimObjective: The fund aims to maximise growth over the medium to long term by investing in shares, property, fixed interest and other investments. The fund currently invests in UK and international equities, property, fixed interest securities, index-linked securities and other specialist Return With-Profits life FundAsset allocationFund manager commentary Q1 2020 The first quarter of 2020 was dominated by the deadly COVID-19 pandemic that engulfed the world during February and March, sparking huge macroeconomic uncertainty globally.

2 The year started positively with major stockmarkets climbing to record highs when the US and China reached an interim trade deal. The upbeat mood quickly faded and share prices fell sharply amid fears that the coronavirus outbreak would lead to a global economic recession. European stockmarkets tumbled with consumer staples, healthcare and utilities the best-performing areas as investors sought shelter among defensive businesses that are perceived to be resilient in challenging economic conditions. In contrast, energy stocks plunged as oil prices declined on concerns about weak demand and a price war between Russia and Saudi Arabia. In the US Stockmarket indices hit multi-decade lows, led by those sectors most exposed to travel bans, such as airlines and leisure commercial property recorded small positive total returns in January and February according to property consultant CBRE.

3 UK government bonds (gilts) were one of the few areas of the market to deliver positive returns in the first quarter of 2020, as investors sought refuge in traditional safe havens. International core government bonds also held up relatively well. In response to the deepening coronavirus crisis, governments and central banks across the globe announced huge economic stimulus M&G Treasury & Investment Office (T&IO) outlook is cautious as global economic growth is likely to be much lower in 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 EquitiesNorth American EquitiesEuropean EquitiesJapanese EquitiesPacific Market EquitiesGlobal Emerging Markets EquitiesPropertyUK Fixed InterestEuro Fixed InterestUS Fixed InterestAsia Fixed InterestOther Fixed InterestAlternative is the asset allocation for the fund as at 31 March 2020.

4 Asset allocations are regularly reviewed and may vary from time to time, but will always be consistent with the fund objective. 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 05/2020M&G Treasury & Investment Office (T&IO)T&IO are our in-house asset-allocation experts in the UK. They select a wide range of assets to hold in the With-Profits fund , in line with the fund s objective. The aim is to maximise long-term investment returns while maintaining the financial security of the Return With-Profits life fund investment returns (after tax) : Prudential.

5 These returns are before charges and the effects of smoothing. These figures are based on annual Return With-Profits life fund cumulative returns over 1, 5 & 10 years (after tax)1 Year Cumulative Return5 Years Cumulative Return10 Years Cumulative : Prudential. All figures to 31 December 2019. Performance is before charges and the effects of returns shown are the returns on the underlying assets and do not reflect the actual pay-outs on any plan. The actual returns on any plan are smoothed and whilst investment performance is normally the most important factor in determining the level of bonuses applied to plans, other factors including charges, deductions and the effects of smoothing will apply. For more information on smoothing, please refer to Your With-Profits Plan A guide to how we manage the latest information on annual bonus rates, please refer to the following: notePlease remember that past performance is not a reliable indicator of future performance.

6 The rate of growth of funds and any income from them cannot be guaranteed. The value of your investment depends on how much investment profit the fund makes and how we decide to distribute value of an investment can go down as well as up. You may not get back the amount you money invested in the Optimum Return life fund is taken out at any time, except on death, or to meet certain 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 ten holdings** Largest assets excluding derivatives exposure positions.

7 Source: Prudential as at 31 March SEMICONDUCTOR ELECTRONICS JP MORGAN EM LOC GOV BD AMERICAN TOBACCO HOLDING PAR HOLDINGS