Prufund UPA

smartypants1902

Hi all,

I’m in discussions around the Prufund and can’t for the life of me get my head around the UPA. Is anyone able to put this in dummy terms for me please.

Thanks

smartypants1902

I’m looking at the examples and can see 2.5% and 3% mentioned. I can get my head round it but where are these numbers being chosen from?

Paul_Herring

Lay-person's interpretation; this probably isn't entirely accurate:

It appears to be part of a smoothing mechanism.

They predict unit prices will change by a certain amount over a year.

Over that year, the unit prices will change, but may stray from the change that was predicted.

Every quarter, they look at the actual price, and the predicted price, and if they're out by more than a certain amount they change the unit price, or adjust it in other words.

Hence "unit price adjustment."

If you haven't seen this yet: https://www.pruadviser.co.uk/pdf/GENM92301.pdf - see page 4.

fjh

Be VERY Careful.
I have one of these- the 'smoothing' in my view is one way - TOWARDS the PRU.
Mine was reduced in Dec 18 against fears of economy / Brexit ( that was what my IFA was told) albeit it would 'appear' matters have progressed and markets are 'stronger' than in Dec 18 - every quarter since it HAS NOT moved up again.:mad: