PruFund Investment Plan, an arm of Prudential UK, has announced that it has seen policy values grow by five per cent per annum net rate.

On the first anniversary of the scheme, those who have invested in the PruFund will see a total increase in their policy values by 8.4 per cent, reports Easier Finance.

Prudential has also announced that the expected growth for the Growth Fund will continue at five per cent per year for the next quarter.

Hugh McKee, savings and investments director at Prudential UK, told the finance website: Investors in PruFund should be delighted that their investment has grown by over eight per cent in the first year, as they witness savings rates fall by up to 0.6 per cent in response to the recent base rate cut.

These results mean that customers who invested £25,000 in the PruFund Growth Fund in September 2004 will see the amount grow to £27,112 in September 2005.

Mr McKee added: Our focus with PruFund was to ignite the long-term savings market by offering a diversified balanced investment with greater transparency and the potential for strong returns that are backed by a proven investment record from a financially strong provider.