A guide to the

Prudential International
Investment Bond
Your questions answered
> Introducing Prudential International Investment Bond

When it comes to choosing an investment, you want something that

will suit your needs not just now, but into the future. Over time, your
aims change: you may become more adventurous or more cautious or
you may switch your objective from capital growth to wanting an income.

At all times, though, two essentials are the potential for good returns and
to minimise any tax liability. Prudential International Investment Bond is
designed as a medium to long-term investment that aims to meet these
two objectives. It also has the flexibility for you to tailor it to your needs.

It is a tax efficient, convenient way of accessing a number of funds, giving

you the flexibility to move your money between the funds.

The value of your investment can go down as well as up and is therefore

not guaranteed. You may not get back the full amount of your investment.

What Prudential International Investment Bond offers

> Wide choice of funds: from Prudential > Annual Investment Reward: a bonus > Easy access to your money: regular
and selected leading fund managers, added from the first anniversary of the and one-off withdrawals, to suit
covering a range of risk levels bond creating extra value for anyone your needs*
who invests £50,000 or more
> Guarantee options: allowing you to > Tax-efficiency: your investment
pick a term to suit your circumstances > Cost-effective portfolio management: grows largely free of tax (other than
20 free switches each year to help you withholding tax)
manage your investments actively at
lower cost > Choice of currencies: you can put
money in and take it out in any of
10 currencies†

* Any withdrawal or adviser charge taken from your bond will reduce its value. If the withdrawals, including adviser charges, are more
than any overall growth achieved the value of your bond will reduce below the level of original capital invested. Withdrawals,
including Adviser Charges may be subject to a Market Value Reduction. You can find more information about this in "Your guide to
investing in With-Profits". If you take withdrawals from a PruFund Protected Fund, the Guaranteed Minimum Fund will be reduced
proportionately. For more information on this please read "Your Guide to investing in the PruFund Range of Funds".
†
Changes in the rates of exchange between currencies may cause the value of your investment or income to go down or up.

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> Your investment choices

Prudential International Multi-asset funds The PruFund Range of Funds

Investment Bond offers you a At the core of your investment choices are These are also designed to help smooth
a select range of the Prudential Group’s volatility, but work differently to the
variety of funds, from more With-Profits Funds. In this case, your
“multi-asset” funds. These are funds that
cautious options to more invest across a number of different asset investment grows by an “Expected Growth
adventurous ones. You can types such as shares, property, fixed Rate” which is reviewed and announced
interest securities and cash. each quarter. There is also a smoothing
choose up to ten at a time, to
formula which takes account of short-term
suit your needs and preferences. PAC With-Profits Funds market movements.
Just as importantly, you can Included in the funds offered are the
This smoothing gives you a measure of
change your selection, to adapt Prudential Assurance Company (PAC)
cushioning against more extreme market
With-Profits Funds managed by
to any changes in your Prudential. These are a particular type of
movements, while the regular Expected
circumstances or lifestyle. Growth Rate announcements would give
multi-asset fund that is designed to smooth
you some comfort around how your
some of the volatility of investment
investment may perform in the future as
markets. A regular bonus is added to your
well as how it has done so far.
investment throughout each year. A final
bonus may also be added, although this Within the PruFund range there are two
can vary and is not guaranteed. Prudential types of Protected Funds, Growth and
has proven expertise in managing With- Cautious, which offer a range of
Profits investments, so you can be sure guarantee choices. These allow you to
your investment is in good hands. protect the value of your investment at a
particular point in time, as well as
There are three funds available,
choosing your preferred investment
denominated in Sterling, Euro and US
objective. There is an additional charge
Dollars, so you can choose which best
for the guarantee – the current options
suits your needs. You can find more
and charges are shown in “The PruFund
information in “Your guide to investing
Range of Funds: Guarantee options”.
in With-Profits”, which you can get from
your Financial Adviser. The PruFund Range of Funds are
denominated in Sterling, Euro and US
Dollars, so you can select the currency that
best matches your circumstances. You can
find more information in “Your guide to
investing in the PruFund Range of Funds”,
which your Financial Adviser can give you.

For more information on the PruFund

range of funds refer to "An introduction to
the PruFund range of funds", reference
PFBS10000, available from your adviser.

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The Dynamic Portfolios and Additional fund choices
Dynamic Focused Portfolios The Prudential multi-asset fund range is complemented by a number of other funds,
The multi-asset range includes five from both Prudential and other leading fund managers who have been chosen for their
Dynamic Portfolios and two Dynamic expertise in particular investment sectors.
Focused Portfolios*. Each of these is a
“fund of funds”, which means that it This means you can choose from a variety of investment styles, as well as different
invests in a collection of funds that are markets and risk profiles. You can find details of all the funds, along with their investment
themselves run by some of the foremost objectives and other detailed information, in “Your Prudential International Investment
investment managers in the country. Bond and International Prudence Bond funds guide”.

The Dynamic Portfolios combine the Managing your investments

expertise of Prudential Portfolio Over time, your needs and preferences may change and you may want to alter your fund
Management Group Ltd, (PPMG), which choices to match. You can do this at any time, either through your Financial Adviser or by
has considerable experience of asset writing to us. To help you keep your portfolio up to date without incurring great expense,
allocation, and Morningstar OBSR who Prudential International Investment Bond provides 20 free switches in any 12-month period.
are a leading investment fund researcher.
To find out more about Morningstar There are some special rules that apply to switches in or out of the PAC With-Profits
OBSR, please go to their website Funds and the PruFund Range of Funds. You can find more information on these in
www.morningstar.co.uk. “Your guide to investing in With-Profits” and “Your guide to investing in the PruFund
Range of Funds”.
The portfolios are risk-graded, and target
different levels of risk and potential return. Currency choices
The investment selection includes funds denominated in Sterling, Euro and US Dollars.
The Dynamic Focused Portfolios are
This gives you an opportunity to match your investments to your circumstances. For
managed by PPMG** and offer access
example, it may help you to reduce or even possibly avoid exchange rate differences
to a range of funds that use active and
between your investments and the currency in which you eventually take your money out.
passive fund management approaches.
These can help you plan for particular
investment objectives. Your Financial
Adviser can give you more information.

* The Dynamic Focused Portfolio funds

are only denominated in Sterling.

** When managing these portfolios,

PPMG work within M&G Investment
Management Group Limited, part of
the Prudential Group.

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> What else does it offer?

Prudential International Annual Investment Reward Inheritance tax planning

Investment Bond has additional The Prudential International Investment Prudential International has a range of
Bond offers an Annual Investment Reward trusts that can be used with Prudential
features and options to help
for larger premiums. The premium is the International Investment Bond for
make your investment effective amount invested into the bond, after any inheritance tax planning: Gift Trust, Loan
for you. Set-up Adviser Charge has been paid. Trust, Discounted Gift Trust and Excluded
Property Trust.
If this applies to your bond, we will credit
the Reward each year, on the anniversary Your Financial Adviser will be able to tell
of the investment. We value your you more about these and whether they
investment on that day, apply the would suit your circumstances.
percentage appropriate to your investment
and then add extra units worth that Capital redemption option
amount to your bond. Rather than writing the bond on a life
assurance basis, where it would end on the
Each investment you make will be death of the chosen life assured, you can
separately assessed for the Annual choose the capital redemption option.
Investment Reward and valued on its own
anniversary to determine the amount of In this case, the bond has a fixed term of
extra units to be credited to your bond. 99 years, although you can cash it in at any
time. If it is continued for the full term, it
The Reward will continue to apply at each will pay a guaranteed minimum amount
anniversary of an eligible investment until at maturity.
your bond ends. It is payable for full years
only – there is no credit if your bond ends The capital redemption option can be
between anniversaries. particularly attractive for trusts, allowing
the trustees to choose when to cash it in or
If your investment is eligible for an Annual instead to keep it going through
Investment Reward, it will be shown on successive generations.
your personal illustration.

Currency choices
You can invest and take withdrawals in any
of ten different currencies. This could be
useful if you move to another country,
either temporarily or permanently, as it may
help to avoid exchange rate complications.

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> How can I access my money?

It’s easy to access your money at Taking out lump sums Paying your Adviser from
any time, whether you want to You can take a lump sum out of your bond your Bond
whenever you like, just as long as: Your Financial Adviser may agree charges
make a one-off withdrawal or
with you. If you wish, you can ask us to
have regular payments. There > you take at least £75, ¤112.50 or
US$112.50, and pay some or all of these charges on your
may be a tax liability – please behalf from the payment you send us
> you leave at least £500, ¤750 or
and/or from your investment.
ask your Financial Adviser for US$750 invested in each fund.
more information. There are some special conditions that If we pay any Adviser Charges from your
apply to withdrawals from the PAC With- Bond on your behalf and you are also
Profits Funds and the PruFund Range of taking regular or one-off withdrawals from
Funds. You can find more information on your bond, these will be added together
these in “Your guide to investing in With- for the purposes of the "tax deferred
Profits” and “Your guide to investing in the allowance". The allowance permits you
PruFund Range of Funds”. to withdraw up to 5% of the amount you
have invested in your bond without having
Taking regular withdrawals an immediate tax bill. If the total you
At the outset, or at any time after that, you withdraw in any year is more than the 5%
can choose to take regular withdrawals allowance it will create a "chargeable
from the funds of your choice within your event" and you will normally be liable for
bond. This may be every month, three income tax at your highest rate on the
months, six months or twelve months. excess amount. It may also affect
entitlement to personal tax allowances
The amount you take can be:
and certain tax credits.
> a fixed sum, subject to the minimum
amounts shown above, You can find out more about adviser
charging options in your key features
> a percentage of your original
document.
investment, or
> a percentage of the value of your bond. Adding to your investment
There is a maximum amount you can take If you wish, you can add to your
each year, which is either 7.5% of your investment at any time, from a minimum
total investment or 7.5% of the value of of £15,000, ¤20,000 or US$25,000. You
your bond at the time you start taking can put this into the funds you already
withdrawals, whichever is more. Any hold (with the exception of any PruFund
The information above is based on our Ongoing Adviser Charges taken from your Protected Fund) or a new selection, as
understanding, as at September 2015, bond are included in this limit. You must long as you have no more than ten funds
of the current taxation, legislation and also leave at least £500, ¤750 or US$750 in total and subject to special terms for the
HM Revenue & Customs (HMRC) invested in each fund. PAC With-Profits Funds and the PruFund
practice, all of which are liable to Range of Funds. Please refer to your key
change without notice. The impact of As before, there are special rules for the
Features document for more information.
taxation (and any tax relief) depends on PAC With-Profits Funds and the PruFund
individual circumstances. Range of Funds. Please refer to your Key
Features document for more information.

6
> About Prudential International

Prudential International is part Our home in Dublin

of the Prudential Group, which Prudential International is based in Dublin, which provides tax advantages as well as a
strict legal and regulatory environment.
has over 24 million customers
worldwide (as at June 2015). We are subject to European Law, having to comply with all applicable European directives
and regulations and to meet European solvency margins. We are authorised by the
Prudential is one of the most Central Bank of Ireland.
recognised names in financial We are subject to limited regulation by the Financial Conduct Authority. Details on the
services. Prudential International extent of our regulation by the Financial Conduct Authority are available from us on request.
benefits from the financial and Our service to you
investment strength of the We take care of all the administration and other paperwork for your bond and we aim to
Group, enabling us to provide maintain a high standard of service at all times, including:
flexible and effective products > making sure all our literature is clear and easy to understand;
for our customers.
> carrying out your requests quickly and efficiently; and

> responding promptly to any queries you may have.

So that you can keep track of your investment, we provide annual valuations, showing
all your funds in one statement.

Contacting us
It's easy to keep in touch once your bond has been set up. For any questions about
your bond, or to request copies of literature or forms (for example, if you want to
change funds), call:
+ 353 1 476 5000.

Lines are open 9am to 5pm Monday to Friday. Please note that calls may be monitored
or recorded for quality and security purposes.

You can also write to:

Operations Department
Prudential International Assurance plc
Montague House
Adelaide Road
Dublin 2
Ireland

7
 www.pru.co.uk/international
PIIBB10008 10/2015

The registered office of Prudential International is in Ireland at Montague House, Adelaide Road, Dublin 2. Prudential International is a marketing name of Prudential
International Assurance plc. Registration No. 209956. Telephone number + 353 1 476 5000. If the Company should become unable to meet its liabilities, the Financial Services
Compensation Scheme will protect eligible policyholders habitually resident in the UK when their contract starts, with effect from 1 December 2001. This protection does
not extend to externally-linked investments. Prudential International Assurance plc is authorised by the Central Bank of Ireland and is subject to limited regulation by the
Financial Conduct Authority for UK business. Details on the extent of our regulation by the Financial Conduct Authority are available from us on request.