wk-2025-12-31-ixbrl

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025

The Directors present their Strategic Report for PGIM Limited ('PGIML' or the 'Company') for the year ended

31 December 2025.

Principal activities

The Company is a wholly owned subsidiary of PGIM Financial Limited (“PFL”). PFL is in turn a direct

subsidiary of PGIM, Inc. (‘PGIM’) a company incorporated in the United States, the asset management division

of Prudential Financial Inc, (‘PFI’) a company incorporated in the United States and listed on the New York

Stock Exchange (NYSE; PRU) and provides investment management and investment advisory services

(collectively 'Asset Management services') to institutional investors (including PGIM, Inc., PFI and other

subsidiaries of PFI ('PFI Group')) and various collective investment schemes. The Company provides Asset

Management services in two principal asset classes, Fixed Income and Undertakings for Collective Investment

in Transferable Securities (UCITS).

The Company is authorised and regulated by the Financial Conduct Authority (‘FCA’) and is authorised by the

Securities and Exchange Commission (‘SEC’) as a registered investment adviser and has a branch in

Switzerland.

Business review

Review of Company performance

Whilst 2025 continued to be a challenging time for global markets as a whole, the performance of the Company

has proven to be robust.

The Company continued to provide asset and investment management services during the year. In the opinion of

the Directors, the Company's performance in the year was satisfactory as revenue increased to £176.6m (2024:

£168.7m). The increase in revenue is primarily driven by cost plus revenue as the cost base of the Company has

increased. Profit for the financial year was £31.2m (2024: £38.1m), the decrease in profit is driven mainly by

increase in administration cost base and decrease in finance income in the year.

As a result of an initiative to simplify the structure of PGIM companies in the UK, the contracts of those

employees who were previously supporting the Company within a re-charge agreement, were novated to

PGIML on 1 September 2024. During the year, employees of the Italian branch has been transferred to PGIM

Investment Ireland.

The Company's investments comprise financial assets at amortised cost and equity notes at fair value through

profit or loss as at 31 December 2025 of £27.2m (2024: £130.3m), the decrease in fair value resulting from the

repayment of principal. PGIML continues to act as sole collateral manager to certain collateralized loan

obligations ('CLOs') and holds the 5% investment required in these CLOs on its balance sheet.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025 (continued)

Business review (continued)

To support the CLO activity in its Fixed Income business, the Company has contracted loans with PGIM

Foreign Investments, Inc. During the year the Company repaid £9.9m (€12.0m) and at the year-end the

outstanding balance was £26.2m (€30.0m) (2024: £34.7m (€42.0m)).

On 24th of March 2026, a €53m tranche for which previously the sole lender was PGIM Limited's immediate

parent PGIM Financial Limited, was novated by PFL to PGIM, Inc. which will be fully repaid by January 2027.

As a result of the Company’s performance and robust balance sheet, the Directors approved an interim dividend

of £20.0m (2024: £35.0m) in 2025 to PFL. No final dividend was proposed for the year 2025 (2024: £nil).

Strategic Investing

In support of its Fixed Income investment management services, the Company maintained its holdings of risk

retention sleeves in CLOs. Investments in CLOs at the year-end were £27.2m (2024: £130.3m) and are analysed

in more details in note 13 to the financial statements. These are made up of financial assets at fair value through

profit or loss of £0.3m (2024: £5.1m) and financial assets at amortised cost of £26.9m (2024: £125.2m).

To help fund the acquisition of CLO investments the Company has term loans from PGIM Foreign Investments,

Inc. of £26.2m (2024: £34.7m) and repaid £9.9m (€12.0m) in 2025, contracted to fund the acquisition of CLO

investments.

Section 172(1) Statement

The Directors have a regard to the matters as set out in section 172(1) of the Companies Act 2006 (CA 2006) as

detailed below. Sections 465 to 467 of CA 2006 do allow for certain exemptions from this disclosure on the

basis of size or materiality, however the Company is excluded from benefiting from these exemptions on the

basis that it forms part of an ineligible group, that is a group which, amongst other criteria, contains a MiFID

investment Firm or UCITS management company.

(a) The likely consequences of any decision in the long term

The Directors regularly assess the Company's strategy from both a commercial and risk perspective to ensure the

long term consequences of any strategic decision are understood and taken into account.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025 (continued)

(a) The likely consequences of any decision in the long term (continued)

The Directors are mindful of the environmental and social impact of the long term decisions made within the

Company and to support the management of the Company with its Environmental and Social Governance, the

PGIM Global Head of ESG is based in the London office.

The Directors have been able to continue to pursue their long term strategic goals in 2025. Within this context,

PGIML repaid loans of £9.9m (€12.0m) in 2025 to PGIM Foreign Investments, Inc. from the proceeds of the

repayment of loan principal.

Following engagement with the Company's immediate parent, PGIM Financial Limited, the Directors approved

the payment of an interim dividend of £20.0m in 2025 (2024: £35.0m).

The net assets of the Company as at 31 December 2025 are £138.5m (2024: £127.3m).

(b) The interests of the Company’s employees

The PGIM Financial Limited Group views its employees as fundamental to the success of the business. The

Directors take active steps to ensure that the suggestions, views and interests of the workforce are captured and

considered in their decision-making.

The PGIM Financial Limited Group continues to operate a hybrid working model, reflecting the understanding

that many aspects of employees’ roles can be delivered effectively remotely and that flexibility contributes

positively to employee wellbeing and engagement. At the same time, the hybrid model is designed to preserve

PGIM’s culture, creativity and mentorship, which are integral to delivering high‑quality outcomes for clients

and investors.

Employee Wellbeing

Employee wellbeing remains a priority for PGIM Financial Limited. A range of initiatives are in place to

support mental, physical and financial wellbeing, including:

• Local wellbeing ambassadors who coordinate events including webinars and in‑person sessions.

• Global PGIM Wellness Weeks were held in November, in partnership with the PGIM Mental Health

Champions network, featuring virtual live sessions focused on holistic wellbeing.

• Certified Mental Health First Aiders as part of a global mental health champion initiative.

• A menopause policy and support framework, providing guidance and practical assistance.

• Global, regional and local inclusion groups promoting community, awareness and allyship.

• Completion of year three of our global multi‑year organisational behaviour and culture change

programme, in partnership with the NeuroLeadership Institute, called Inclusive Leadership, aimed at

empowering leaders, managers and employees to implement inclusive behaviours and create a fully

inclusive and equitable workplace that unlocks the full potential of our talent.

• Recognition and celebration of key heritage and awareness months, such as Women’s History Month,

UK Black History Month, UK Inclusion Week and Pride Month.

• Regular EMEA Culture & Inclusion newsletter to share information with employees, raise awareness,

signpost to resources, and update on the impact of our inclusion initiatives and programmes.

Workforce Engagement and Communication

The Group maintains a number of mechanisms to ensure effective engagement with employees and to ensure the

workforce is involved and informed:

• Business Communication and Transparency Employees receive regular updates on Group

performance and priorities through company‑wide Town Halls, business briefings, and senior

management video updates made available on the intranet.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025 (continued)

• Performance Management and Feedback The annual performance management process provides a

structured forum for feedback between employees, managers and peers.

• Board‑Level Insight on People Matters The People Business Leader of Europe, Middle East and

Asia, provides regular updates to the Board on workforce demographics, engagement themes,

employee survey results, culture and inclusion, pay and reward, and other HR‑related matters.

• Reward and Benefits To attract, develop and retain talent, the Group maintains a competitive and

inclusive reward offering, including a comprehensive benefits suite focusing on health, wellbeing,

lifestyle and family support. Employee feedback is sought to ensure benefits remain relevant and

inclusive.

• Learning and Development Employees are encouraged to leverage PGIM’s global network and

access ongoing training, including on‑the‑job learning, online courses and in‑person development

opportunities.

• Engagement Survey All employees were invited to participate in the Global Employee Engagement

Survey conducted in July 2025. The results were communicated to senior management, who have

committed to acting on the feedback and using insights to inform changes and improvements to drive

employee engagement.

Engagement with employees

Within the Group, diversity of perspectives is at the core of who we are and what we do. The Group believes

that harnessing the differences and creating a workplace where all talent thrives is what allows us to deliver the

exceptional outcomes our clients have come to expect. The Group’s programmes and policies are designed to

ensure that upon joining the Group and throughout their career, all employees feel welcomed, supported and

empowered to unlock their full potential at work each day.

Inclusion is not just something we aspire to, it’s an obligation. The Group’s leaders and colleagues across the

globe are committed to creating a culture of belonging, where diverse perspectives and non-consensus views can

be voiced and heard. As highlighted in the Strategic Report with details on initiatives taken, the Group views its

employees as fundamental to the success of the business. In the context of the Group’s long term strategy of

recruiting and retaining talent and to meet the needs of our broad community, the Group offers global

programming year-round. In Europe our Culture and Inclusion Council (CIC), made up of senior leaders from

across our business, meets every 2 months to oversee regional culture and inclusion priorities.

The Group's global inclusion initiatives provide opportunities for the Group community to come together and

celebrate heritage months throughout the year, including International Women’s Day, Pride Month and Black

History Month. Inclusive Leadership is PGIM’s multi-year behaviour and culture change programme, in

partnership with the Neuro Leadership Institute, aimed at developing more inclusive behaviours among

colleagues-particularly leaders-and infusing a greater sense of belonging across the organisation.

The Group is committed to providing fair and equal opportunities to all our employees, whether they are able-

bodied or have a disability. The Group endeavours to make any reasonable adjustments that may be necessary to

facilitate the employment of people with disabilities. In addition, during the course of employment, the Group

makes reasonable accommodations for any physical or mental conditions that employees may have.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025 (continued)

stakeholders

The Company works to foster positive business relationships with suppliers, customers and other stakeholders.

Relationships with customers are governed by written contracts to ensure transparency and clarity of expectation

of performance.

The Company has established good working relationships with its suppliers and seeks to ensure a responsible

payment culture, with the publishing for the Group of its Business Payment practices and Performance reporting

on the Companies House website. Following a review of the Modern Slavery Act, the Company has engaged

with its suppliers to ensure mutual compliance.

The Company maintains good performance payment practices ensuring that suppliers continued to be paid in a

timely manner, and as a result, has not experienced an increase in the aging of its receivables.

(d) The impact of the Company’s operations on the community and the environment

The Company encourages its employees to contribute to the community in which the Company operates by

offering the opportunity to take part in local charity and volunteering initiatives. The Company seeks where

possible to minimise its impact on the environment and has, to support this aim, developed in-house initiatives,

such as an internal recycling scheme for office waste and the provision of employee cycle racks.

The Company’s Grand Building offices uses 100% renewable energy for its electricity supply.

(e) The desirability of the Company maintaining a reputation for high standards of business conduct

There is Prudential, Inc. wide engagement with employees regarding individual conduct and the high standards

of ethics and integrity expected of employees is outlined in Prudential’s Code of Conduct “Making the Right

Choices”. The Code of Conduct is supported by ongoing training and annual re-certification.

(f) The need to act fairly as between members of the Company

The Company is a private limited company with a sole shareholder.

Key Performance Indicators

The Company’s principal measure of performance is profitability. The financial statements show results for the

year as set out below:


	2025	2024
	£	£
Total revenue	176,613,225	168,689,910
Profit before taxation	37,626,222	47,102,370
Taxation	(6,435,802)	(9,018,824)
Profit for the financial year	31,190,420	38,083,546

As well as overall Company profitability, the Directors consider assets under management, including assets

managed under sub-advisory agreements for the principal business lines to be a key measure of performance.


	2025	2024
Assets Under Management	£bn	£bn
Fixed Income	50.6	46.5

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025 (continued)

Principal risks and uncertainties

The Company’s strategic goals are to continue to expand its two principal business lines being PGIM Fixed

Income and PGIM Investments (UCITs). Looking forward, it is anticipated that any new European CLO

launches will not require further investment by PGIML as that can be undertaken by PGIM Loan Originator

Manager Limited (“PLOM”). PLOM is a UK affiliate that can act as joint collateral manager with PGIML and,

in so doing, PLOM would take on the associated 5% risk retention investment sleeve(s). PGIML would act as

joint collateral and asset manager for such new launches and will retain the collateral and asset manager role for

the existing European CLO products where it is already holding the 5% risk retention sleeve. There is a further

opportunity for PGIML as, when one of its existing CLO investments resets, the 5% risk retention sleeve can

also be moved across to PLOM and so reduce PGIML’s balance sheet exposure.

The Directors continually assess the risks faced by the Company and believe that its principal risk is business

risk which is defined as the Company’s failure to meet the strategic objectives detailed above through significant

market movements or other external factors.

Market Risk

The Company is exposed to market risks, in the form of foreign exchange risk, interest rate risk and investment

risk arising from the market value of subordinated tranches for all CLOs. Foreign exchange risk arises from

fluctuations in the value of its assets and liabilities denominated in currencies other than Pounds Sterling. To the

extent that the market risk associated with a particular asset or liability is deemed to be material in currencies

other than Pounds Sterling, the Company utilises forward foreign exchange contracts to mitigate this risk. The

Company is exposed to interest rate risk through its holdings of floating rate loan notes in certain CLOs. The

Company is also subject to market risk on the fair value of the subordinated tranches for all CLOs, however,

neither investment risk nor interest rate risk are considered material at this stage. These investments are

structured as loan notes which the Company expects to hold to maturity and so the Company’s focus is primarily

on the credit risk associated with recovery of principal amounts on expiry of the loan notes.

Credit Risk

Credit risk arises mainly from cash and receivables from third parties, including balances with other affiliated

companies and CLOs. The Company’s approach to managing this risk is to hold cash with large, established

banks and to monitor and arrange settlement of receivable balances and non-affiliated balances with third parties

on a timely basis. The Company holds capital against potential losses on its CLO investments.

Liquidity Risk

The Company manages liquidity risk through a combination of maintenance of cash surpluses, funding lines

with affiliated companies and detailed regular forecasting of the Company’s funding requirements, and does not

consider liquidity risk to be material.

Business Continuity Risk

The Company maintains an operational control environment, supported by the Business Continuity Plan (BCP)

framework.

The Company is regulated by the FCA. The Company holds capital sufficient to provide resilience against a

severe yet plausible event as part of its normal business activity. In order to ensure the Company continues to

hold sufficient capital for regulatory purposes and liquidity to meet obligations as they fall due, capital and

liquidity adequacy are monitored on an ongoing basis.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025 (continued)

Approved by the Board on 23 April 2026 and signed on its behalf on 24 April 2026 by:

E. A. Samson

Director

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors' Report for the Year Ended 31 December 2025

The Directors present their Annual Report and the audited Financial Statements of the Company for the year

ended 31 December 2025.

The Company is a private company, limited by shares, incorporated by the Registrar of Companies (England

and Wales) and is domiciled in the United Kingdom. The address of its registered office is Grand Buildings, 1-3

Strand, Trafalgar Square ¹, London WC2N 5HR.

The Company’s immediate parent company was PGIM Financial Limited ('PFL') at the 31st December 2025

which in turn is a subsidiary of PGIM, Inc., a company incorporated in the United States. PGIM, Inc. is itself a

subsidiary of Prudential Financial, Inc., a Company incorporated in the United States, and listed on the New

York Stock Exchange (NYSE; PRU), and the parent undertaking of the largest group for which group financial

statements are prepared.

In December 2025, the Company’s then immediate parent, PGIM Financial Limited, resolved to pay the share

capital of the Company to PGIM, Inc. by way of a dividend in specie, effective 1 January 2026. From 1 January

2026, the Company is a wholly owned subsidiary of PGIM, Inc. (‘PGIM’), the asset management division of

Prudential Financial, Inc. (‘PFI’,NYSE).

Going Concern

The Company is FCA regulated and holds capital sufficient to provide resilience against a severe yet plausible

event as part of its normal business activity. In order to ensure the Company continues to hold sufficient capital

for regulatory purposes and liquidity to meet obligations as they fall due capital and liquidity adequacy are

monitored on an ongoing basis.

The Directors have performed an analysis of expected cashflows and on the 2026 expected performance on the

Company. The Directors have performed an analysis of actual and potential impact of the current market

conditions on the financial position, including work performed on stress-testing such as a severe but plausible

downside scenario, and planned for mitigating actions that can be taken.

Following the imposition of US tariffs and the ensuing market volatility, the potential financial impact for the

Company of this is difficult to forecast and the Directors are keeping the position under review.

The Company has sufficient liquidity and access to sources of additional funding to enable it to meet its strategic

goals as planned for at least 12 months from the signing of the financial statements.

Because of the diversity of its revenue base, its liquidity and the strength of its balance sheet, the Directors are

confident that the Company is a going concern and the financial statements have been prepared on a going

concern basis.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors' Report for the Year Ended 31 December 2025 (continued)

Directors of the Company

The Directors of the Company who held office during the year and up to the date of the signing of the financial

statements were as follows:

J. P. Butler

E. M. Farley

J. M. Finnerty

J. S. Brown (appointed 1 March 2026)

D. J. Malooly

S. L. Pollard

E. A. Samson

S. R. Warren

D. E. Nicholls

M.B. Shafer

B. Bralock (appointed 10 December 2025)

M. Fresson (resigned 28 February 2026)

S. E. McMullen (resigned 30 September 2025)

V. Vataj (resigned 14 July 2025)

Country by country reporting

As a qualifying investment firm, the Company has obligations under Article 89 of the Capital Requirements

Directive to report its international activities and establishments. These disclosures are unaudited and included

on the Company’s website:

https://www.pgim.com/gb/en/institutional/legal-disclosures/country-disclosures/uk-regulatory-disclosures

Dividends

The Company declared and paid an interim dividend of £20.0m in 2025 (2024:£35.0m). The Directors did not

recommend a payment of a final dividend in 2025 (2024: £nil).

Political donations

The Company has made no political donations and incurred no political expenditure during the year (2024:

£nil).

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors' Report for the Year Ended 31 December 2025 (continued)

Streamlined Energy and Carbon Report

The Company is required to report on UK energy use and carbon emissions.

In this context Green House Gas (“GHG”) emissions from the leased offices in Trafalgar Square have been

quantified and then allocated to the Company on the basis of the square footage occupied by the Company. This

formal inventory process uses the operational control approach per the World Resource Institute (WRI)/ World

Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol (GHGP) to define its

organizational boundaries. The PFI Group maintains an Inventory Management Plan (IMP) which records

institutional, managerial, and technical procedures and processes used annually to collect and manage reliable

GHG data. The Company’s office in Trafalgar Square uses 100% renewable energy for its electricity supply.

Scope 1 emissions are identified as stationary combustions (e.g. natural gas, propane for heating, diesel used in

emergency generators), mobile combustions (e.g. leased vehicles for executive transport, employee shuttles) and

refrigeration/air conditioning equipment use.

Scope 2 emissions are indirect emissions from acquired electricity, steam, heat, and cooling.

Scope 3 emissions which include business travel relating to PGIM Limited related activity (including

commercial air transport, intercity rail, employee mileage reimbursements, public transit, rental cars and hotel

stays), as well as emissions from fuel and energy related activities not included in Scope 1 and Scope 2.

The energy consumption data was collected from the management companies of the buildings or directly from

energy supplier invoices. The data is predominantly from meter readings specifically related to the areas of the

buildings occupied by PGIM in the UK. The emission factors applied to the report are kg CO2e. The source of

the emission factors is the government (BEIS) factors:

https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2025

The intensity ratio per £100,000 revenue was selected to give an appropriate year on year comparison of the

carbon emissions as the Company’s business grows.

The GHG emissions and energy use data for the financial years 2025 and 2024:


	2025	2024
Energy consumption used to calculate emissions: kWh (gas and electricity)	224,934	241,657
Emissions from activities for which the Company is responsible including combustion of fuel and operation of facilities / (Scope 1) tCO2e	21	25
Emissions from purchase of electricity, heat, steam and cooling purchase for own use / (Scope 2) tCO2e	19	22
Emissions from business travel / (Scope 3) tCO2e	188	162
Total gross emissions (Scope 1+2+3) tCO2e	228	209
Intensity ratio: tCO2e / £100,000 revenue	0.02	0.03

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors' Report for the Year Ended 31 December 2025 (continued)

Engagement with other stakeholder groups

The Company views its employees as fundamental to the success of the business. The Directors take active steps

to ensure that the suggestions, views and interests of the workforce are captured and considered in their

decision-making. The Company's employees substantially worked on a hybrid basis in 2025. To support

employees working on a hybrid basis during this period, the Company has continued to focus on employee

wellbeing and launched a number of support programs and initiatives.

The Company works to foster positive business relationships with suppliers, customers and other stakeholders.

Relationships with customers are governed by written contracts to ensure transparency and clarity of expectation

of performance. The Company has established good working relationships with its suppliers and seeks to ensure

a responsible payment culture, with the publishing for the Group of its Business Payment practices and

Performance reporting on the Companies’ House website. Following a review of the Modern Slavery Act, the

Company has engaged with its suppliers to ensure mutual compliance.

The Company maintains good performance payment practices ensuring that suppliers continued to be paid in a

timely manner.

Engagement with customers

As referenced in the Section 172 statement in the Strategic Report, the Company works to foster positive

business relationships with its customers. Relationships with customers are governed by written contracts to

ensure transparency and clarity of expectation of performance.

Branches outside the United Kingdom

PGIM Limited has a branch in Zurich, Switzerland. The branch in Milan, Italy closed during 2025. The

Company has authorisation for a cross-border marketing license in order to be able to market its products to the

Italian market on a cross-border basis from the UK.

Financial instruments

The Company holds certain financial instruments. Additional information on the Company’s financial

instruments can be found in note 13 to the financial statements. The Strategic Report has further information on

the financial risk management strategies employed by the Company.

MIFIDPRU 8 Disclosures

Under the MIFIDPRU 8 requirements of the Investment Firm Prudential Regime (IFPR), the Company is

required to disclose in a public forum its principal risk management, capital adequacy, remuneration and

investment policies. These disclosures are unaudited and included on the Group’s website.

www.pgim.com/node/909

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors' Report for the Year Ended 31 December 2025 (continued)

Directors’ indemnity statement

As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying

third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in

force throughout the last financial year and is in force as at the date of signature of the financial statements. The

Company does not have its own Directors’ and Officers’ liability insurance but is covered by a scheme run by

its ultimate parent, Prudential Financial, Inc., maintained throughout the financial year in respect of itself and its

Directors.

Statement of directors' responsibilities in respect of the financial statements

The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with

applicable law and regulation.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the

directors have prepared the financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 “Reduced Disclosure

Framework”, and applicable law).

Under company law, Directors must not approve the financial statements unless they are satisfied that they give

a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing the financial statements, the Directors are required to:

• select suitable accounting policies and apply them consistently;

• state whether applicable United Kingdom Accounting Standards, comprising FRS 101, have been followed,

subject to any material departures disclosed and explained in the financial statements;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

Company will continue in business.

The Directors are responsible for safeguarding the assets of the Company and hence for taking reasonable steps

for the prevention and detection of fraud and other irregularities.

The Directors are also responsible for keeping adequate accounting records that are sufficient to show and

explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of

the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.

Directors' confirmations

In the case of each Director in office at the date the Directors’ Report is approved:

• so far as the Director is aware, there is no relevant audit information of which the Company’s auditors are

unaware; and

• they have taken all the steps that they ought to have taken as a Director in order to make themselves aware

of any relevant audit information and to establish that the Company’s auditors are aware of that

information.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors' Report for the Year Ended 31 December 2025 (continued)

Reappointment of independent auditors

It is the intention of the Directors to reappoint the independent auditors, PricewaterhouseCoopers LLP, in

accordance with the requirements of Section 487 of the Companies Act 2006.

Approved by the Board of Directors on 23 April 2026 and signed on its behalf on 24 April 2026 by:

.........................................

E. A. Samson

Director

Independent auditors’ report to the members of PGIM Limited

Report on the audit of the financial statements

Opinion

In our opinion, PGIM Limited’s financial statements:

• give a true and fair view of the state of the company’s affairs as at 31 December 2025 and of its profit

for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure

Framework”, and applicable law); and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report and Financial Statements (the

“Annual Report”), which comprise:

• the Statement of Financial Position as at 31 December 2025;

• the Income Statement for the year then ended;

• the Statement of Comprehensive Income for the year then ended;

• the Statement of Changes in Equity for the year then ended; and

• the notes to the financial statements, comprising material accounting policy information and other

explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and

applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for

the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled

our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or

conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a

going concern for a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of

accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to

the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the

relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements

and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the

financial statements does not cover the other information and, accordingly, we do not express an audit opinion

or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the financial statements or our

knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent

material inconsistency or material misstatement, we are required to perform procedures to conclude whether

there is a material misstatement of the financial statements or a material misstatement of the other information.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic report and Directors’ Report, we also considered whether the disclosures required

by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report

certain opinions and matters as described below.

Strategic report and Directors’ Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic

report and Directors’ Report for the year ended 31 December 2025 is consistent with the financial statements

and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we did not identify any material misstatements in the Strategic report and Directors’ Report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of directors' responsibilities in respect of the financial statements, the

directors are responsible for the preparation of the financial statements in accordance with the applicable

framework and for being satisfied that they give a true and fair view. The directors are also responsible for such

internal control as they determine is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or

have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures

in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,

including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is

detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-

compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by

the Financial Conduct Authority, and we considered the extent to which non-compliance might have a material

effect on the financial statements. We also considered those laws and regulations that have a direct impact on the

financial statements such as the Companies Act 2006 and UK tax legislation. We evaluated management’s

incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of

override of controls), and determined that the principal risks were related to manipulation of financial data to

present a more favourable financial or capital position, the posting of inappropriate journal entries to increase

revenue, and management bias in accounting estimates and judgemental areas of the Financial Statements such

as the valuation of collateralised loan obligations, where a market price is not readily available. Audit

procedures performed by the engagement team included:

• Enquiries with management, including consideration of known or suspected instances of non-

compliance with laws and regulations and fraud;

• Reviewing correspondence with the Financial Conduct Authority in relation to compliance with laws

and regulations;

• Reviewing relevant meeting minutes, including those of the Board of Directors;

• Challenging assumptions and judgements made by management in their significant accounting

estimates, in particular the valuation of collateralised loan obligations where we obtained independent

third party valuation prices;

• Identifying and testing journal entries, in particular any journal entries posted with unusual account

combinations against revenue; and

• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our

testing.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of

instances of non-compliance with laws and regulations that are not closely related to events and transactions

reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher

than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for

example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s

website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the company’s members as a body in

accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving

these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report

is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the company, or returns adequate for our

audit have not been received from branches not visited by us; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

......................................

Victoria Tallon (Senior Statutory Auditor)

For and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

London

Date: 24 April 2026

The notes on pages 23 to 61 form an integral part of these financial statements

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Income Statement for the Year Ended 31 December 2025


		2025	2024
	Note	£	£
Revenue	3	172,936,405	160,762,164
Interest income on financial assets at amortised cost	3, 24	3,676,820	7,927,746
Total revenue		176,613,225	168,689,910
Administrative expenses		(140,612,350)	(127,460,099)
Other (losses) gains	4	(482,779)	1,717,614
Operating profit	5	35,518,096	42,947,425
Finance income	8	2,886,360	5,282,404
Finance expenses	9	(778,234)	(1,127,459)
Net finance income		2,108,126	4,154,945
Profit before taxation		37,626,222	47,102,370
Income tax expense	10	(6,435,802)	(9,018,824)
Profit for the financial year		31,190,420	38,083,546

The above results were derived from continuing operations.

The notes on pages 23 to 61 form an integral part of these financial statements

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Statement of Comprehensive Income for the Year Ended 31 December 2025


	2025	2024
	£	£
Profit for the financial year	31,190,420	38,083,546
Other comprehensive (expense)/income: Items that may be reclassified to profit or loss
Foreign currency translation differences - foreign operations	28,931	(14,653)
Other comprehensive (expense)/income net of income tax	28,931	(14,653)
Total comprehensive income for the financial year	31,219,351	38,068,893

The notes on pages 23 to 61 form an integral part of these financial statements

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Statement of Financial Position as at 31 December 2025


		2025	2024 (As restated)*
	Note	£	£
Assets
Non-current assets
Property, plant and equipment	11	618,378	7,813
Right of use assets	12	3,037,784	—
Financial assets at fair value through profit or loss	13, 14	288,803	4,889,910
Financial assets at amortised cost	13	22,827,776	115,314,418
		26,772,741	120,212,141
Current assets
Trade and other receivables	15	54,341,344	32,408,464
Financial assets at fair value through profit or loss	13, 14	—	180,556
Financial assets at amortised cost	13	4,097,248	9,897,663
Deferred tax	10	490,950	350,346
Income tax asset	10	7,200,739	3,033,485
Cash and cash equivalents	16	223,258,751	114,682,861
		289,389,032	160,553,375
Total assets		316,161,773	280,765,516
Current liabilities
Lease liabilities	19	(2,063,097)	—
Trade and other payables	17	(71,032,899)	(45,976,979)
Loans and other borrowings	18	(30,561,013)	—
		(103,657,009)	(45,976,979)
Net current assets		185,732,023	114,576,396
Total assets less current liabilities		212,504,764	234,788,537
Non-current liabilities
Lease liabilities	19	(1,488,533)	—
Loans and other borrowings	18	(72,473,259)	(107,503,777)
		(73,961,792)	(107,503,777)
Net assets		138,542,972	127,284,760
Capital and reserves
Called up share capital	19	80,000,000	80,000,000
Capital contribution reserve	22	596,889	400,000
Foreign currency translation reserve		48,073	19,142
Profit and loss account		57,898,010	46,865,618
Total equity		138,542,972	127,284,760

*Refer to Prior period adjustments under Accounting Policies

Registration number: 03809039

The notes on pages 23 to 61 form an integral part of these financial statements

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Statement of Financial Position as at 31 December 2025

The financial statements on pages 21 to 61 were approved by the Board on 23 April 2026 and signed on behalf

of the board on 24 April 2026 by:

............................

J. S. Brown

Director

The notes on pages 23 to 61 form an integral part of these financial statements

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Statement of Changes in Equity for the Year Ended 31 December 2025


	Called up share capital	Capital contribution reserve	Foreign currency reserve	Profit and loss account	Total equity
	£	£	£	£	£
Balance at 1 January 2024	80,000,000	400,000	33,795	42,857,390	123,291,185
Profit for the financial year	—	—	—	38,083,546	38,083,546
Foreign currency translation reserve	—	—	(14,653)	—	(14,653)
Total comprehensive income	—	—	(14,653)	38,083,546	38,068,893
Dividends	—	—	—	(35,000,000)	(35,000,000)
Equity settled share based payments	—	—	—	924,682	924,682
Balance at 31 December 2024	80,000,000	400,000	19,142	46,865,618	127,284,760


Balance at 1 January 2025	80,000,000	400,000	19,142	46,865,618	127,284,760
Profit for the financial year	—	—	—	31,190,420	31,190,420
Foreign currency translation reserve	—	—	28,931	—	28,931
Total comprehensive income	—	—	28,931	31,190,420	31,219,351
Additional paid in capital	—	196,889	—		196,889
Dividends	—	—	—	(20,000,000)	(20,000,000)
Equity settled share based payments	—	—	—	(158,028)	(158,028)
Balance at 31 December 2025	80,000,000	596,889	48,073	57,898,010	138,542,972

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025

1 - General information

PGIM Limited ('PGIML') is a wholly owned subsidiary of PGIM Financial Limited ('PFL') and of its ultimate

parent, Prudential Financial, Inc. ('PFI'). The results of the Company are consolidated into the results of the

ultimate controlling party, PFI, which are publicly available at 751 Broad Street, Newark, NJ 07102.

2 - Accounting policies

Summary of material accounting policies

This note provides a list of the material accounting policies adopted in the preparation of these financial

statements to the extent they have not already been disclosed in the other notes. These policies have been

consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

The Company has prepared its financial statements in accordance with Financial Reporting Standard 101-

Reduced Disclosure Framework (‘FRS 101’). The financial statements have been prepared under the historical

cost convention, as modified by the revaluation of financial instruments measured at fair value through profit

or loss, and in accordance with the Companies Act 2006 as applicable to companies using FRS 101.

Going concern

The Company is FCA regulated and holds capital sufficient to provide resilience against a severe yet plausible

event as part of its normal business activity. In order to ensure the Company continues to hold sufficient capital

for regulatory purposes and liquidity to meet obligations as they fall due capital and liquidity adequacy are

monitored on an ongoing basis.

The Directors have performed an analysis of expected cashflows and on the 2026 expected performance on the

Company. The Directors have performed an analysis of actual and potential impact of the current market

conditions on the financial position, including work performed on stress-testing such as a severe but plausible

downside scenario, and planned for mitigating actions that can be taken.

Following the imposition of US tariffs and the ensuing market volatility, the potential financial impact for the

Company is difficult to forecast and the Directors are keeping the position under review.

The Company has sufficient liquidity and access to sources of additional funding to enable it to meet its

strategic goals as planned for at least 12 months from the signing of the financial statements.

Because of the diversity of its revenue base, its liquidity and the strength of its balance sheet, the Directors are

confident that the Company is a going concern and the financial statements have been prepared on a going

concern basis.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

(a) Exemptions for qualifying entities under FRS 101

FRS 101 allows a qualifying entity certain disclosure exemptions. The Company has taken advantage of the

following disclosure exemptions under FRS 101.

(a) the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative

information in respect of

(i) Paragraph 79(a)(iv) of IAS 1 to prepare a reconciliation of share capital at the beginning and end of the

period;

(ii) Paragraph 73(e) of IAS 16 Property, plant and equipment to disclose a reconciliation of the carrying

amount at the beginning and end of the period for the prior year;

(b) the requirements of the following paragraphs of IAS 1:

a. 10(d) to prepare a statement of cash flows,

b. 16 to make an explicit statement of compliance with all IFRSs,

c. 38A to present a minimum of two primary statements, including cash flow statements

d. 38B-D to present additional comparative information, and

e. 111 to present cash flow information, such as the ability to generate cash;

(d) the requirements of paragraphs 30 and 31 of IAS 8 Accounting policies, changes in accounting estimates

and errors to present the disclosure of information when an entity has not applied a new IFRS that has been

issued but is not yet effective;

(e) the requirements of paragraph 17 of IAS 24 Related party disclosures to disclose key management

personnel compensation in total and for all applicable categories;

(f) the requirements of IAS 24 Related party disclosures to disclose related parties transactions entered into

between two or more members of a group; and

(g) the requirements of paragraphs 45(b) and 46 - 52 of IFRS 2 Share-based payment to disclose the details of

the number and weighted-average exercise prices at the share options, and how the fair value of goods or

services received was determined.

(b) Foreign currencies

Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary

economic environment in which the Company operates (the ‘functional currency’). The Company’s functional

and presentation currency is Pounds Sterling (£).

Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of the Company at

exchange rates at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies,

outstanding at the balance sheet date, are translated at the exchange rates ruling at that date.

Foreign exchange differences arising on translation are recognised in the Income Statement specifically in

administrative expenses. Non-monetary assets and liabilities that are measured in terms of historical cost in a

foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and

liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional

currency at foreign exchange rates ruling at the dates the fair value was determined.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

Foreign currency reserve

Unrealized foreign currency gains and (losses) arising on the translation of assets or liabilities denominated in

currencies other than Pounds Sterling are recognized in other comprehensive income and taken to the foreign

currency reserve. Once the gain or (loss) is realized it is taken to the Income Statement.

The preparation of the financial statements in conformity with FRS 101 requires management to make

judgements, estimates and assumptions that affect the application of accounting policies and the reported

amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimates are revised and in any future periods affected.

Estimates made in the preparation of these financial statements are as follows:

• The fair value of the investment held in collateralised loan obligations that are held at fair value through

profit or loss (FVPL) are estimated based on the prices received from a third party pricing service

(Markit). Internal and independent prices received from third party arranger banks are sometimes used as

comparatives with Markit data.

• The fair value of investments held in collateralised loan obligations that are held at amortised cost are

assessed on a regular basis for signs of impairment.

Significant judgements made in the preparation of these financial statements are as follows:

• The Company is entitled to receive incentive fees based on the performance of certain fixed income and

real estate funds, for which it performs investment management services, such incentive fees are based

upon the investment return in those funds meeting pre-defined performance targets across the life of the

fund. Accordingly, the amount of variable consideration earned under this revenue stream is recognised as

revenue to the extent that it is highly probable that a significant reversal will not occur.

• The Company is entitled to senior and subordinated management fees on collateralised loan obligations

for acting as collateral manager. The Company also earn fees from being the co-manager for CLOs held

by PGIMLOM. The Directors have reviewed the CLOs in question and have concluded these fees should

be recognised at this time because it is highly probable that a significant reversal will not occur.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

(d) Changes in accounting policy

New standards, interpretations and amendments effective

During the year, the following amendments to accounting standards came into effect:

• Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates -introduction of explicit

requirements for determining exchange rate when a currency is not commonly exchangeable into another

currency.

Upcoming new standards, interpretations and amendments

• IFRS 18: Presentation and Disclosure in Financial Statements: this standard will replace IAS1 and is aimed

at improving financial reporting by requiring additional defined subtotals in the statement of profit or loss

and enhanced disclosures about management-defined performance measures. The standard comes into

effect on 1 |January, 2027, with 2026 comparative information.

Following a review of the amendments, the Directors consider that none of the standard, interpretations and

amendments effective for the first time from 1 January 2025 have had a material effect on the financial

statements.

(e) Financial Instruments

i) Classification

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at FVPL; and

• Those to be measured at amortised cost.

For assets measured at fair value, gains and losses will be recorded in profit or loss. The Company reclassifies

debt investments when and only when its business model for managing those assets changes. The Company’s

management has assessed which business models apply to the financial assets held by the Group and has

classified its financial instruments into the appropriate IFRS 9 categories.

ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial

asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of

the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

Debt instruments : Collateralised Loan Obligations

Subsequent measurement of debt instruments depends on the Company’s business model for managing the

asset and the cash flow characteristics of the asset. The Company has debt instruments which are held for

collection of cash flows where those cash flows represent solely payments of principal and interest. These are

subsequently measured at amortised cost. Interest income from these financial assets is included in revenue

using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in

profit or loss and presented in other gains/(losses). Impairment losses are presented as a separate line item in

the Income Statement.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

Under IFRS 9, the contractual cash flows of debt instruments must be assessed as to whether they meet the test

of being solely payments of principal and interest ("SPPI"). The subordinated tranches for all CLOs fail this

test. As a result, they are accounted for as FVPL, and gains / (losses) on fair value are now recorded in the

Income Statement.

iii) Recognition and derecognition

Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the

Company commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive

cash flows from the financial assets have expired or have been transferred and the Company has transferred

substantially all the risks and rewards of ownership.

iv) Impairment of financial assets

The company assesses on a forward-looking basis the expected credit loss associated with its financial assets.

The impairment methodology applied depends on whether there has been a significant increase in credit risk.

The company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to

be recognised from initial recognition of the assets. To measure the expected credit losses, assets are grouped

based on shared credit risk characteristics.

The Company’s significant assets that are subject to IFRS 9’s expected credit loss model are investments in

CLOs measured at amortised cost, trade and other receivables, including intercompany receivables. Under the

Company's impairment methodology under IFRS 9, there was no material impact on the Company’s financial

statements from the recognition of loss allowance for the trade and other receivables (2024: £nil).

(f) Revenue

The Company receives fees for services provided to the Group’s parent company and fellow subsidiaries and

also provides management services to third party funds, CLOs and affiliates of the Company for which it

receives management fees, transaction fees and incentive fees.

The Company also charges its divisional parent, PGIM, Inc., for certain services performed on a cost-plus

basis.

As disclosed in note 13, the Company is required to co-invest in CLOs alongside third-party investors and

receives investment income from the CLOs based on the investment share the Company holds. Interest income

from those investments classified as financial assets at amortised cost are accounted for in revenue on an

accruals basis where reliable estimates of income are available.

Under IFRS 15, these fees were assessed under the five steps to recognising revenue. The Company meets the

performance obligation for these revenue streams over time. Accordingly, the amount of variable consideration

earned under these revenue streams is recognised as revenue to the extent that it is highly probable that a

significant reversal will not occur.

Accounting policy - IFRS 15

The Company recognises revenue under IFRS 15, which recognises revenue based on the transfer of control

rather than the transfer of risks and rewards.

Under IFRS 15 revenue is recognised using a 5 step model approach:

(1) Identify the contract with a customer:

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

Each revenue stream recognised by PGIML is covered by an asset management or transfer pricing agreement

which details the enforceable rights and obligations of each party for the provision of services.

(2) Identify the performance obligations in the contract:

IFRS 15 employs the concept of performance obligations. The Company recognises its revenue by reference to

type of revenue stream. The Company recognises transaction fees as they occur and variable revenue, in the

form of incentive fees, is recognised only once the conditions have been met. The incentive and transaction

fees recognised in 2025 are £6.1m (2024: £4.4m).

In respect of re-charge revenue, revenue is recorded on an incurred basis.

Where it is determined that the performance obligations associated with the Company’s revenue streams are

met over the period of time, revenue is recorded to the extent that it is highly probable that a significant

reversal will not occur.

The asset management and transfer pricing agreements include promises to deliver services to the customer

and, to the extent that those promises are distinct, they represent discrete performance obligations which are

accounted for separately.

(3) Determine the transaction price:

The asset management and transfer pricing agreements detail the agreed fees to be paid. The fees may be fixed

in price and/or variable. Where variable, the amount of consideration to which the Company becomes entitled

and the related conditions are detailed in the agreement. The variability of the fee income relates to either the

value of the underlying assets upon which the fee is based, or the variability of the costs to be re-charged.

Where variable fee income is determined by reference to the underlying value of assets, the valuation of those

assets is performed by a third party. Where variable re-charge income is determined by reference to costs

incurred, the costs to be re-charged are determined when incurred. No significant management judgement is

required to determine the transaction price.

(4) Allocate the transaction price to the performance obligations:

The transaction price is determined by the asset management or transfer pricing agreement. In respect of asset

management fees, the fee rate detailed in the agreement is usually applied to the assets under management. In

respect of re-charged costs, the amount of costs is re-charge to the counterparty with either a percentage margin

or no margin, depending on the transfer pricing agreement. No significant management judgement is required

to allocate the transaction price as the pricing approach is detailed in the agreement.

(5) Recognise revenue when the performance obligation is satisfied:

By nature of the service provided, the provision of asset management services is deemed to be simultaneously

received and consumed by the customer and on this basis fees are accrued throughout the contract period on the

basis of the fee rate agreed in the asset management agreement. At regular periods throughout the year, either

quarterly or monthly depending on the agreement, the accrued fees will be adjusted to the actual fee earned

during the period at the time the invoice is issued.

Revenue disaggregation

Note 3 “Revenue” shows the revenue of the Company as revenue received and receivable.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

(g) Other gains

Interest income from CLOs accounted for as financial assets at fair value through profit or loss are recorded in

other gains. This also includes gains on financial assets at amortised cost and fair value gains on financial

assets at fair value through profit or loss.

(h) Tax

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the Income

Statement except to the extent that it relates to items recognised directly in equity, in which case it is

recognised in equity.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates

enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous

years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and

liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they

reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax

assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,

and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax

entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities

will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the

extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred

tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the

related tax benefit will be realised.

The Group applies the exception to recognizing and disclosing information about deferred tax assets and

liabilities related to Pillar 2 income taxes, as provided in the amendments to IAS 12 issued in May 2023.

(i) Interest receivable and interest payable

Interest income and expense is recognised in the Income Statement as it accrues, using the effective interest

method.

(j) Property, plant and equipment

Tangible fixed assets are stated at historic purchase cost less accumulated depreciation. Costs includes the

original purchase price of the asset and the costs attributable to bringing the asset to its working conditions for

its intended use.

Any impairment loss on an asset carried at depreciated historical cost is recognised in the profit and loss

account.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

(k) Depreciation

The rates of depreciation, charged in equal instalments, are as follows:


Asset class	Depreciation method and rate
Leasehold Improvements	Over the term of the lease
Office equipment, furniture and fittings	25% per annum

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. Any

impairment losses on an asset carried at historical cost is recognised in the Income Statement.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

(l) Trade and other receivables

A regular review is performed of all the Company’s receivables. If there is significant uncertainty regarding the

recoverability of any of its debtors, a provision is recognised. If there is strong evidence indicating the amounts

recognised in the Statement of Financial Position will not be recovered, they will be written off.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost

less provision for impairments. The Company has applied the simplified approach to measuring expected credit

losses for trade and other receivables (excluding prepayments) and the Company will measure lifetime credit

losses at all times for trade and other receivables.

Trade and other receivables non-current including loans are initially recorded at the amount of proceeds

payable and subsequently carried at amortised cost, with the difference between the proceeds and the amount

receivable to redemption being recognised as income in the Income Statement over the period of the relevant

loan.

Interest income is recognised on the basis of the effective interest method and is included in finance income.

(m) Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly

liquid investments with original maturities of three months or less.

(n) Loans and other borrowings

All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings

are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs,

and the amount due to redemption being recognised as a charge to the Income Statement over the period of the

relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in finance costs.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer

settlements of the liability for at least 12 months after the reporting date.

(o) Trade and other payables

Trade and other payables, including accrued expenses and other creditors qualifying as financial instruments,

are initially recognised at fair value net of transaction costs incurred and subsequently carried at amortised cost

using the effective interest method.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 - Accounting policies (continued)

(p) Share based payments

The Company participates in the ultimate parent Prudential Financial, Inc.’s share-based incentive schemes for

stock options, restricted stock units and long term incentive plans. Prudential Financial, Inc.'s Omnibus

Incentive Plan provides stock‑based awards including stock options, stock appreciation rights, restricted stock

shares, restricted stock units, stock‑settled performance shares, and cash‑settled performance units. The

Company recognises an expense based on the fair value of the options granted. For all plans, this cost is spread

over a three year period. For the restricted stock units, the plan vests on an annual basis during the three year

term. For long term incentive awards, there is a three year vesting period. The costs of the plans have been

included in employee costs for the period with corresponding amounts included in equity. Disclosures for the

schemes have been provided in note 18 to the financial statements.

Dividend equivalents are generally provided on restricted stock shares and restricted stock units outstanding as

of the record date. Dividend equivalents are generally accrued on target performance shares and units

outstanding as of the record date. These dividend equivalents are paid only on the performance shares and units

released up to a maximum of the target number of shares and units awarded. Generally, the requisite service

period is the vesting period.

At each balance sheet date, the entity revises its estimates of the number of options that are expected to vest. It

recognises the impact of the revision to original estimates, if any, in the Income Statement, with a

corresponding adjustment to equity.

(q) Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other

resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred

and the time value of money is material, the initial measurement is on a present value basis.

Shares issued during the reporting period are recognised at par in the share capital reserve and any excess over

the par value paid is recorded as share premium. The share capital of the Company constitutes £1 Ordinary

shares and as at 31 December 2025 no share premium has been recognised in respect of any share issue (31

December 2024 £ Nil).

(r) Defined contribution pension scheme

A defined contribution pension scheme is a post-employment benefit plan under which the Company pays

fixed contributions into a separate entity and will have no legal or constructive obligation to pay further

amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in

the Income Statement in the periods during which services are rendered by employees.

(s) Financial assets and liabilities

The Company has adopted the amortised cost model for CLOs that are categorised into junior and senior

tranches. Each tranche is assessed under the SPPI test and business model tests. The subordinated tranches, due

to their position in the CLO structure, are more exposed to the credit risk of the other tranches and therefore do

not pass the SPPI test. These are therefore treated as fair value through profit or loss.

(t) Administrative expenses

Administrative expenses are comprised of costs incurred by the Company. These are recognised on an accrual

basis.

(u) Dividends

Dividend distribution to the Company's shareholders is recognised as a liability in the Company's financial

statements in the period in which the dividends are approved by the Company's shareholders.

(v) Impairment of financial assets

The Company’s significant assets that are subject to IFRS 9’s expected credit loss model are its investment in

CLOs, measured at amortised cost, and trade and other receivables, including intercompany receivables. No

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

material loss allowance for the investments in CLOs, intercompany receivables nor trade and other receivables

was recognised for the year under IFRS 9 (2024: £nil).

Prior period adjustments

The classification of Financial assets at fair value through profit or loss and Financial assets at amortised cost

in the prior years has been restated between non-current assets and current assets to reflect the respective

redemption and repayment dates, as seen in the table below:


	2024 reported	Restatement to correct prior period error	2024 restated
	£	£	£
Non-current assets
Financial assets at fair value through profit or loss	5,070,466	(180,556)	4,889,910
Financial assets at amortised cost	125,212,081	(9,897,663)	115,314,418
Current assets
Financial assets at fair value through profit or loss		180,556	180,556
Financial assets at amortised cost		9,897,663	9,897,663

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

3 - Revenue and interest income on financial assets at amortised cost


	2025	2024
	£	£
Performance fees received and receivable	6,124,736	4,352,464
Management fees received and receivable from PFI Group companies	124,942,637	114,060,365
Management fees received and receivable from third parties	26,613,689	20,648,925
Management fees received and receivable from PFI Group affiliates	15,255,343	21,700,410
	172,936,405	160,762,164
Interest income on financial assets at amortised cost	3,676,820	7,927,746
Total Revenue	176,613,225	168,689,910

Revenue classified by geographical office, is analysed as follows:


	2025	2024
	£	£
London	171,206,585	162,380,823
Milan	1,926,431	2,564,270
Zurich	3,480,209	3,744,817
Total	176,613,225	168,689,910

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

4 - Other gains/(losses)


	2025	2024
	£	£
Net fair value gains/( losses) on financial assets at fair value through profit or loss	(1,308,159)	(1,337,132)
Interest income on financial assets at fair value through profit or loss	699,595	3,054,746
Realised losses on CLO investment	125,785	—
Total	(482,779)	1,717,614

5 - Operating profit

Operating profit is stated after charging/(crediting):


	2025	2024
	£	£
Total staff costs (Note 6)	75,864,897	43,185,060
Depreciation expense (Note 11)	6,271	4,249
Amortisation release (Note 13)	(203,243)	(252,402)
Fees payable to Company’s auditors in respect of: - audit of the Company’s financial statements	177,597	166,370
- audit related assurance services	5,900	25,327
Management recharges from PFI Group companies	54,247,941	73,185,600
Foreign exchange (loss)/gain	(1,224,760)	1,908,889
Asset management costs	2,490,774	2,002,874
Other Expenses	9,246,973	7,234,131

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

6 - Staff costs

The contracts of employees of PGIM Financial Limited who support the business were novated to PGIM

Limited on 1 September 2024. These staff expenses had previously been re-charged to the Company and

recognised as administrative costs.

The aggregate payroll costs (including Directors' remuneration) were as follows:


	2025	2024
	£	£
Wages and salaries	58,171,114	35,366,903
Social security costs	9,528,234	4,804,353
Other staff costs	3,358,784	1,222,068
Share-based payment expenses (Note 20)	3,774,581	1,596,983
Other employee expense	1,032,184	194,753
Staff Costs	75,864,897	43,185,060

The monthly average number of persons employed by the company is analysed below:


	2025	2024
By Activity:	No.	No.
Non-investment professionals	84	32
Investment professionals	91	32
	175	64


	Page 37

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

7 - Directors' remuneration

The Directors' remuneration for the year was as follows:


	2025	2024
	£	£
Directors' emoluments	7,362,848	5,632,010
Amounts (excluding shares) receivable under long term incentive schemes	1,049,850	1,941,092
Contributions paid to pension schemes	81,752	64,565
	8,494,450	7,637,667

Remuneration of the highest paid Director


	2025	2024
	£	£
Directors' emoluments	3,465,069	3,083,968
Contributions to the pension scheme	10,000	10,000
	3,475,069	3,093,968

The value of awards receivable by the highest paid Director under long-term incentive schemes is £1,608,836

(2024: £1,717,826). Ten Directors received Restricted Stock Units and/or Options during the year (2024: Three).

Six Directors are members of the defined contributions scheme operated for the benefit of all eligible employees

of the PGIM Financial Limited group. (2024: Six). Eight Directors (2024: Six) received shares under long term

incentive schemes in respect of their qualifying services during the year. The highest paid Director did not have

any accrued UK defined benefit plan entitlements at the end of the year (2024: £nil). The highest paid Director

did not exercise any options during the year (2024: £nil).

The emoluments of all the Directors of the Company are paid by the Company with the exception of E. A.

Samson, J.M. Finnerty, D.J. Malooly, and S.R. Warren, who are paid by PGIM, Inc., the parent company of

PGIM Financial Limited. The emoluments of M.G. Fresson and D.E. Nicholls and S.L. Pollard are paid by

PGIM European Services Limited. No recharge is made to the Company for these emoluments as the Directors

do not receive any remuneration for their services as Directors of the Company and consequently their

remuneration has been excluded from the analysis above.

Included in remuneration are amounts paid to Directors for their qualifying services to affiliated companies. It is

not possible to make an accurate apportionment of their emoluments in respect of each affiliated company.

Accordingly, no recharges have been made.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 - Finance income


	2025	2024
	£	£
Interest income from third parties	2,886,360	4,824,234
Interest income from PFI Group companies	—	458,170
	2,886,360	5,282,404

9 - Finance expenses


	2025	2024
	£	£
Bank Charges	(30,638)	(25,777)
Loan interest expense payable to PFI Group companies	(747,596)	(1,101,682)
	(778,234)	(1,127,459)

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

10 - Income tax expense

Recognised in the Income Statement


	2025	2024
	£	£
Total Current Tax
Current Year	9,406,555	11,775,494
Disallowable expenses / depreciation in excess of capital allowance / Stock Options deductible and non-deductible	177,488	365,530
Double taxation relief on overseas profit	(163,846)	(135,915)
Group relief	(1,750,000)	(2,794,513)
Overseas taxes on the profit of the year	191,563	178,151
Prior year tax adjustment	(1,285,355)	(21,464)
Total current income tax	6,576,405	9,367,283
Deferred Taxation
Arising from temporary differences	(140,603)	(348,459)
Tax on profit	6,435,802	9,018,824

No income tax is recognised in Other Comprehensive Income (2024: £nil).

The tax expense for the year is lower than (2024: lower than) the standard rate of corporation tax in the United

Kingdom for the year ended 31 December 2025 of 25.0% (2024: 25.0%). The difference is explained in the

following table.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

10 - Income tax expense (continued)


	2025	2024
	£	£
Profit before taxation	37,626,222	47,102,370
Profit before taxation multiplied by standard rate of corporation tax in UK 25.0% (2024: 25.0%)	9,406,555	11,775,494


Increase/(decrease) from effect of capital allowances depreciation	5,113	(21,464)
Increase (decrease) from effect of capital allowances depreciation	—	323
Increase/(decrease) from effect of expenses not deductible in determining taxable profit	31,771	18,521
Increase/(decrease) from temporary differences recognised	(275,574)	(348,459)
Increase/(decrease) from effect of exercise employee share options	275,575	346,686
Increase/(decrease) arising from group relief tax reconciliation	(1,750,000)	(2,794,513)
Prior year tax adjustment	(1,285,355)	—
Effect of: Overseas taxes on the profit of the year	191,563	178,151
Double tax relief on overseas profit	(163,846)	(135,915)
Total tax charge	6,435,802	9,018,824

Income tax payable

The Company made a payment on account of £10,748,563 (2024: £14,637,166) and received no refund (2024:

£nil) during 2025 relating to the expected tax liability for 2025 tax year. The total tax charge for the financial

year was £6,435,802 (2024: £9,018,824). This resulted in an income tax (receivable) of (£7,200,739) (2024:

£3,033,485) and a deferred tax (receivable) of (£490,950) (2024: (£350,346)).

Deferred tax

Deferred tax assets


	Asset
2025	£
Stock Options deductible and non-deductible	491,207
Depreciation in excess of capital allowance	(257)
	490,950

	Asset
2024	£
Stock Options deductible and non-deductible	346,686
Depreciation in excess of capital allowance	3,660
	350,346

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

10 - Income tax expense (continued)

Deferred tax movement during the year:


	At 1 January 2025	Recognised in income	At 31 December 2025
	£	£	£
Stock Options deductible and non-deductible	346,686	144,521	491,207
Depreciation in excess of capital allowance	3,660	(3,918)	(257)

Deferred tax movement during the prior year:


	At 1 January 2024	Recognised in income	At 31 December 2024
	£	£	£
Stock Options deductible and non-deductible	—	346,686	346,686
Depreciation in excess of capital allowance	1,888	1,773	3,660

The corporation tax rate has increased to 25% from 1 April 2024. Deferred taxes at the balance sheet date have

been measured using these enacted tax rates and reflected in these financial statements.

OECD Pillar Two

The Group of which the Company is a member is within the scope of the OECD Pillar Two model rules. The

Company is in a Jurisdiction that has adopted a Qualified Domestic Minimum Top-up Tax (QDMTT) and an

Income Inclusion Rule (IIR) effective for the financial year beginning 1 January 2024. In addition, for the

undertaxed profits rule (UTPR) the commencement date will be on or after the 31 December 2024.

The Group does not expect to have an OECD Pillar Two related current tax exposure in the jurisdiction from the

application of the QDMTT and IRR, while there could be open items with respect to the application of the

proposed Pillar Two rules which will determine how and to what degree the Company will be impacted by the

adopted Pillar 2.

The Group applies the exception to recognizing and disclosing information about deferred tax assets and

liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

11 - Property, plant and equipment


	Leasehold improvement	Office equipment, furniture and fittings	Total
Cost	£	£	£
At 1 January 2025	—	29,099	29,099
Additions	2,917,604	1,204,057	4,121,661
At 31 December 2025	2,917,604	1,233,156	4,150,760
Accumulated depreciation
At 1 January 2025	—	(21,286)	(21,286)
Charge for the financial year	(2,419,592)	(1,091,504)	(3,511,096)
At 31 December 2025	(2,419,592)	(1,112,790)	(3,532,382)
Carrying amount
At 31 December 2025	498,012	120,366	618,378
At 31 December 2024	—	7,813	7,813

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

12 - Right of use assets


	Property	Total
	£	£
Cost or valuation
At 1 January 2024	—	—
Additions	—	—
At 31 December 2024	—	—
At 1 January 2025	—	—
Additions	3,920,818	3,920,818
At 31 December 2025	3,920,818	3,920,818
Accumulated depreciation
At 1 January 2024	—	—
Charge for year	—	—
At 31 December 2024	—	—
At 1 January 2025	—	—
Depreciation charge for the financial year	(883,034)	(883,034)
At 31 December 2025	(883,034)	(883,034)
Carrying amount
At 31 December 2025	3,037,784	3,037,784
At 31 December 2024	—	—

In August 2025, PGIM Financial Limited novated first floor of Grand Buildings, 1-3 Strand, Trafalgar Square,

London WC2N 6AF to the Company. The company also entered a lease related to property Limmatquai 4, 8001

Zurich, Switzerland in July 2025 with ending date 30th June 2035.

Under IFRS 16, the asset and liability arising from the lease are initially measured on a present value basis.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability;

• any lease payments made at or before the commencement date less any lease incentives received

The right-of-use assets are subject to depreciation through the profit and loss, with the estimated useful economic life

calculated as the term of the lease.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

13 - Financial assets

(a) Financial assets at fair value through profit or loss

The Company classifies CLOs that do not qualify for measurement at either amortised cost or fair value through

other comprehensive income (FVOCI) as financial assets at fair value through profit or loss (FVPL).

Analysis of movements:


	2025	2024
Collateralised loan obligation	£	£
At 1 January	5,070,466	7,649,199
Repayment of financial assets	(3,926,335)	(1,099,294)
Movement in fair value due to foreign exchange losses	227,946	(274,843)
Unrealised losses on financial assets at fair value through profit or loss	(1,308,159)	(1,337,132)
Realised gain	123,767	—
Amortisation release	101,118	132,536
At 31 December	288,803	5,070,466


	2025	2024 (As restated)*
	£	£
Current	—	180,556
Non-current	288,803	4,889,910
	288,803	5,070,466

(b) Financial assets at amortised cost

The Company classifies its financial assets at amortised cost only if both of the following criteria are met:

• the asset is held within a business model whose objective is to collect the contractual cash flows; and

• the contractual terms give rise to cash flows that are solely payments of principal and interest.


	2025	2024
Collateralised loan obligation	£	£
Analysis of movements:
At 1 January	125,212,081	183,455,785
Disposals	—	—
Repayment of financial assets	(104,223,017)	(50,934,026)
Movement in book value due to foreign exchange gains (losses)	5,833,835	(7,429,543)
Amortisation expense	102,125	119,865
At 31 December	26,925,024	125,212,081

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

13 - Financial assets (continued)


	2025	2024 (As restated)*
	£	£
Current	4,097,248	9,897,663
Non-current	22,827,776	115,314,418
	26,925,024	125,212,081

For financial assets at amortised cost, a 12-month ECL model was used to calculate the estimated expected

credit loss for the 12 months subsequent to the balance sheet date based on a probability weighted range of

expected outcomes. The expected credit loss was immaterial, which would have otherwise been recognised in

the Income Statement. Due to the waterfall structure in the CLOs, the subordinated tranches are more exposed to

credit losses than the tranches carried at amortised cost. The fair value of CLO instruments classified as

financial assets at amortised cost at 31 December 2025 is £27,010,838 (2024: £124,685,179).

*Refer to Prior period adjustments under Accounting Policies

Investments in Collateralised Loan Obligations

The Company has various investments in CLOs, which are classed as ‘Structured Entities’ as defined by

International Financial Reporting Standard 12 - Disclosure of Interests in Other Entities (‘IFRS 12’). The

investments in the CLOs comprise loan notes of variable seniority secured on the CLO investments in various

fixed income products, principally traded bank loans and bonds. The Company’s interests have been acquired in

accordance with the Risk Retention rules of Article 405 of the Capital Requirements Regulations (EU no

575/2013). Under the Risk Retention rules, the Company, as the collateral manager for the CLOs is required to

co-invest alongside third party note holders and to hold its investment until the maturity of the notes or, in the

event of prepayment of the notes, the date of final prepayment.

Additions

There have been no additions during the years ended 31 December 2024 and 31 December 2025.

Disposals

There is no disposals during the years ended 31 December 2025 and no disposals during the year ended 31

December 2024. The carrying value of the CLOs has decreased during the year due to repayments of principal.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

13 - Financial assets (continued)


	Maturity	Carrying value 2025 Maximum exposure to loss	Maturity	Carrying value 2024 Maximum exposure to loss
	2025	£	2024	£
Non-current assets
Dryden 29 Euro CLO 2013 DAC	2032	37,569	2032	10,566,878
Dryden 32 Euro CLO 2014 DAC	2026	20,416	2026	9,339,631
Dryden 35 Euro CLO 2014 DAC	2033	11,904,075	2033	16,564,608
Dryden 48 Euro CLO 2016 DAC	2032	24,405	2032	15,782,856
Dryden 51 Euro CLO 2017 DAC	2031	—	2031	10,683
Dryden 56 Euro CLO 2017 DAC	2032	—	2032	14,695,894
Dryden 59 Euro CLO 2017 DAC	2032	40,896	2032	16,299,287
Dryden 62 Euro CLO 2017 DAC	2031	152	2031	314,893
Dryden 66 Euro CLO 2018 DAC	2032	—	2032	14,372,427
Dryden 73 Euro CLO 2018 DAC	2034	15,186,314	2034	15,987,416
Dryden 74 Euro CLO 2020 DAC	2033	—	2033	16,347,974
Total investments		27,213,827		130,282,547

At 31 December, the following Company balances relate to the Company’s investments in CLOs.


	2025	2024
	£	£
Carrying value of financial assets through profit or loss	288,803	5,070,466
Carrying value of financial assets at amortised cost	26,925,024	125,212,081
Total investments	27,213,827	130,282,547

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

13 - Financial assets (continued)

Maximum exposure to loss

The investments comprise loan notes independently rated as follows:


S&P / Moody's	2025	2024
S&P / Moody's	£	£
AAA / Aaa	17,041,137	80,094,973
AA+ / Aa1	—	3,389,830
AA / Aa2	3,143,419	9,652,749
AA- /Aa3	—	975,610
A+ / A1	—	1,240,182
A / A2	1,244,270	5,725,506
BBB+ / Baa1	1,309,758	930,136
BBB / Baa2	1,025,977	4,601,074
BBB- / Baa3	—	4,423,316
BB / Ba2	—	4,666,486
BB- / Ba3	2,139,433	3,938,283
B / B2	—	2,241,314
B- / B3	447,637	2,296,694
Caa1	573,393	1,035,928
Not rated	288,803	5,070,466
Maximum exposure to loss	27,213,827	130,282,547

The investments in CLOs, and funding obtained by the Company from affiliates to purchase the investments, are

predominantly in Euros. Where Euro purchases have been only partially funded by Euro borrowings the

Company is exposed to currency movements against the Company’s functional currency, Pounds Sterling.

Where exposures are considered material the Company has utilised hedging strategies, principally forward

currency contracts to mitigate the exposure and as a result the Company has no material exposure.

14 - Fair value of financial instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date. When available, the Company measures the

fair value of an instrument using quoted prices from an orderly transaction in the principal market, or in the

absence of a principal market, in the most advantageous market, for that instrument. The market for a financial

instrument is regarded as active if quoted prices are readily and regularly available and represent actual and

regularly occurring market transactions on an arm’s length basis.

If a market for a financial instrument is not active, then the Company establishes fair value using a valuation

technique considered appropriate by the Directors. The chosen valuation technique makes maximum use of

observable inputs, relies as little as possible on estimates specific to the Company, incorporates all factors that

market participants would consider in setting a price, and is consistent with accepted economic methodologies

for pricing financial instruments.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 - Fair value of financial instruments (continued)

The Company measures fair values using the following fair value hierarchy that reflects the significance of the

inputs used in making the measurements:

Level 1: Quoted price (unadjusted) in an active market for an identical instrument.

Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e.

derived from prices). This category includes instruments valued using: quoted prices in active markets for

similar instruments; quoted prices for identical or similar instruments in markets that are considered less than

active; or other valuation techniques for which all significant inputs are directly or indirectly observable from

market data.

Level 3: Valuation techniques based on significant unobservable inputs. This category includes all instruments

for which the valuation technique includes inputs not based on observable data and the unobservable inputs have

a significant effect on the instrument’s valuation. This category includes instruments that are valued based on

quoted prices for similar instruments for which significant unobservable adjustments or assumptions are

required to reflect differences between the instrument.


2025	Level 1	Level 2	Level 3	Total
2025	£	£	£	£
Financial assets at fair value through profit or loss
Unconsolidated structured entities	—	—	288,803	288,803
2024	Level 1	Level 2	Level 3	Total
2024	£	£	£	£
Financial assets at fair value through profit or loss
Unconsolidated structured entities	—	—	5,070,466	5,070,466

The Company has concluded that its investments in CLOs are appropriately considered as Level 3 financial

instruments based on the illiquidity of trading and the lack of reliable market valuations for those investments.

There have been no transfers in levels.


Unconsolidated structured entities - CLOs	2025		2024
Unconsolidated structured entities - CLOs	£		£
Level 3 Roll Forward Table
Opening balance at 1 January	5,070,466		7,649,199
Repayment of financial assets	(3,926,335)		(1,099,294)
Movement in fair value due to foreign exchange gains/(losses)	227,946		(274,843)
Unrealised gain/(losses) on Financial assets at fair value	(1,308,159)		(1,337,133)
Realised gain	123,767		—
Amortisation release	101,118		132,537
Closing balance at 31 December	288,803	—	5,070,466

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 - Fair value of financial instruments (continued)

In 2025, the unconsolidated structured entities were valued using pricing information from a third party

valuation system and deemed to have a fair value of £288,803 (2024: £5,070,466).

The significant unobservable inputs used to value the tranche include financial inputs, such as public financial

data and derived metrics.

Valuation inputs and relationships to fair value


2025
Description	Fair value at 31 December 2025	Unobservable input	Range of input (probability weighted average)	Relationship of unobservable input to fair value
Description	£	Unobservable input	Range of input (probability weighted average)	Relationship of unobservable input to fair value
Unconsolidated structured entities	288,803	Tranche value	0.01-7.79 (2.3)	An increase in the input would lead to an increase in the fair value.
Valuation inputs and relationship to fair value
2024
Description	Fair value at 31 December 2024	Unobservable input	Range of input (probability weighted average)	Relationship of unobservable input to fair value
Description	£	Unobservable input	Range of input (probability weighted average)	Relationship of unobservable input to fair value
Unconsolidated structured entities	5,070,466	Tranche value	1.17-47.00 (24.72)	An increase in the input would lead to an increase in the fair value.

15 - Trade and other receivables


Current	2025	2024
Current	£	£
Trade receivables from third parties	2,814,346	7,807,955
Amounts due from PFI Group companies	33,958,764	9,132,834
Trade and other receivables from PFI Group affiliates	2,378,192	3,345,786
Accrued income	9,109,578	7,957,849
Prepayments	1,253,744	699,066
Other receivables from third parties	4,826,720	3,464,974
	54,341,344	32,408,464

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

15 - Trade and other receivables (continued)

The Company has not suffered any losses because of trade debtor or counterparty defaults during the year

(2024: £nil). The Company applies the IFRS 9 simplified approach to measuring expected credit losses which

uses a lifetime expected loss allowance for all trade and other receivables and no expected loss allowance was

recognised during the year (2024: £nil). Interest on the loan was paid on an annual basis up until the loan was

fully repaid.

The trade and other receivables classified as financial instruments are disclosed below. The Company's exposure

to credit and market risks, including maturity analysis, relating to trade and other receivables is disclosed in the

financial risk review in note 23.

16 - Cash and cash equivalents


	2025	2024
	£	£
Cash and cash equivalents	223,258,751	114,682,861

The Company’s approach to managing credit risk is to hold cash with large, established banks with AA- and A+

credit ratings, and to monitor and arrange settlement of receivable balances and non-affiliated balances with

third parties on a timely basis.

17 - Trade and other payables


	2025	2024
Current	£	£
Amounts owed to PFI Group companies	24,762,136	10,510,835
Loan interest payable to PFI Group companies	470,458	404,565
Trade and other payables to third parties	4,034,774	3,264,267
Non-trade payables and accrued expenses	41,765,531	31,797,312
	71,032,899	45,976,979

Amounts owed to PFI Group companies are payable per the terms agreed in the intercompany recharge

agreement. Loan interest payable to PFI Group companies comprises interest due to PGIM Foreign Investments,

Inc. and PGIM Financial Limited, interest accrued based on interest rate in note 18. Trade and other payables to

third parties includes mainly VAT amounts due to be paid over to HMRC which are settled on a quarterly basis.

Non-trade payable and accrued expenses relates to employee related costs accrued, and are settled monthly.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

18 - Loans and other borrowings

Non-Current

Non-current amounts owed to related parties includes long term debts owed to affiliated companies borrowed to

fund the acquisition of CLO investments. The maturity and interest rate of those loans is shown below. Interest

on the borrowing will be paid on a quarterly or annual basis while the loan amount will be paid at maturity.

On 22nd November 2024, a €35m tranche for which previously the sole lender was PGIM Limited's immediate

parent PGIM Financial Limited, was novated by PFL to PGIM, Inc..

On 4th December 2024, the repayment date of borrowings contracted with PGIM Foreign Investments, Inc. was

extended from 19th December 2025 to 19th January 2027. During the year, there were no new borrowings

(2024: £nil) from PGIM Foreign Investments, Inc..


2025
Non-Current
Lender	Loan Amount (€)	Loan Amount (£)	Maturity	Interest Rate
PGIM Foreign Investments, Inc.	30,000,000	26,195,154	January 2027	1.35200%
PGIM Financial Limited	53,000,000	46,278,105	January 2027	0.57200%
	83,000,000	72,473,259

Current
Lender	Loan Amount (€)	Loan Amount (£)	Maturity	Interest Rate
PGIM, Inc.	35,000,000	30,561,013	January 2026	0.46100%

2024
Non-Current
Lender	Loan Amount (€)	Loan Amount (£)	Maturity	Interest Rate
PGIM Foreign Investments, Inc.	30,000,000	24,803,638	January 2027	1.35200%
PGIM Foreign Investments, Inc.	12,025,818	9,942,801	December 2031	1.90890%
PGIM, Inc.	35,000,000	28,937,578	January 2026	0.46100%
PGIM Financial Limited	53,000,000	43,819,760	January 2027	0.57200%
	130,025,818	107,503,777

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

19 - Lease liabilities


	2025	2024
	£	£
Lease liability as at 1 January	—	—
Add: New lease	4,051,381	—
Add: Interest expense on lease liabilities	13,611	—
Less: Rental payments in the financial year (including rent-free period)	(513,362)	—
Lease liability as at 31 December	3,551,630	—


	2025	2024
	£	£
Current portion of long term lease liabilities	(2,063,097)	—
Long term lease liabilities	(1,488,533)	—
	(3,551,630)	—

Measurement of lease liability

The lease liability includes the net present value of the following lease payments:

• fixed payments, less any lease incentives receivable;

• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the

commencement date.

Lease payments to be made under reasonably certain extension options are also included in the measurement of

the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily

determined, which is generally the case for leases in the Company, the lessee's incremental borrowing rate is

used, being the rate that the lessee would have to borrow the funds necessary to obtain an asset of similar value

to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss

over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability

for each period. The Company's activities associated with short-term leases and all leases of low-value assets are

recognised on a straight-line basis as an expense in the Income Statement.

Lease liabilities are classified between current and non-current liabilities, representing amount due within and

after 12 months respectively.

In August 2025, PGIM Financial Limited novated first floor of Grand Buildings, 1-3 Strand, Trafalgar Square,

London WC2N 6AF to the Company. The lease was entered into in 2021 for a six year lease that could be

terminated by the Company on the break date of 25 August 2022 by giving at least nine months of prior written

notice, which was not exercised by the Company. The Company measures the first floor lease liability at the

present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate of

1.25% at the date of commencement.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

19 - Lease liabilities (continued)

The company also entered a lease related to property Limmatquai 4, 8001 Zurich, Switzerland in July 2025 with

ending date 30th June 2035.This lease can be terminated by the Company after the end of the fifth year of the

lease ("termination date"), by giving 12 months written notice. Notice given prior to the termination date would

incur a break clause penalty. The Company measures the first floor lease liability at the present value of the

remaining lease payments, discounted using the lessee’s incremental borrowing rate of 0.178% at the date of

commencement.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

20 - Employee benefits

Share based payments

The Company’s equity settled share based payment plan consists entirely of Prudential Financial, Inc.’s

Omnibus Incentive Plan (‘Omnibus Plan’) which was adopted by the Board of Directors of Prudential Financial,

Inc. in March 2003, and subsequently amended and restated in November 2008. Prudential Financial, Inc.'s

Omnibus Incentive Plan provides stock‑based awards including stock options, stock appreciation rights,

restricted stock shares, restricted stock units, stock‑settled performance shares, and cash‑settled performance

units. Under the Omnibus Plan, eligible employees may be awarded a combination of Restricted Stock Units and

Stock Options which vest over a 3-year period and are exercisable over a 10-year period after which they expire.

Dividend equivalents are generally provided on restricted stock shares and restricted stock units outstanding as

of the record date. Dividend equivalents are generally accrued on target performance shares and units

outstanding as of the record date. These dividend equivalents are paid only on the performance shares and units

released up to a maximum of the target number of shares and units awarded. Generally, the requisite service

period is the vesting period.

Restricted stock units and long term incentive awards

Restricted stock units and long term incentive awards are unfunded, unsecured rights to receive a share of

Prudential Financial, Inc.’s common stock at the end of a specified period of time, which is also subject to

forfeiture and transfer restrictions. The restrictions on restricted stock units and long term incentive awards will

lapse on the third anniversary of the date of grant. The number of units is determined over the performance

period and may be adjusted based on the satisfaction of certain performance goals.

The following table summarises restricted stock award activity for the year ended 31 December:


	2025	2024
Non-vested Shares	Number of Shares	Number of Shares
At 1 January	71,912	11,118
Granted	47,134	4,305
Vested	(37,552)	(5,256)
Cancelled	(5,273)	(869)
Performance shares	13,791	—
Adjustments (transfer to PGIM Investment Ireland)	(4,280)	—
Adjustments (including transfer from PGIM Financial Limited)	—	62,614
At 31 December	85,732	71,912

	2025	2024
	Weighted Average Grant- Date Fair Value	Weighted Average Grant- Date Fair Value
	£	£
At 1 January	87.65	76.79
Granted	73.99	82.37
Vested	81.74	85.56
Cancelled	83.28	85.15
Performance shares	79.03	—
Adjustments (transfer to PGIM Investment Ireland)	79.98	—
Adjustments (including transfer from PGIM Financial Limited)	—	83.45
At 31 December	82.20	87.65

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

20 - Employee benefits (continued)

The Company recorded an expense of £3,774,581 (2024: £1,596,983) in share-based payments, related to

restricted stock units and long term incentive awards, during the year ended 31 December 2025. On 1 September

2024, following the novation of certain employee contracts from PGIM Financial Limited to PGIM Limited, the

Company recognised the outstanding share-based payment obligations relating to these employees in its

accounting records.

The amount relating to the acquisition of shares from the ultimate parent company to satisfy this obligation upon

vesting is recognised in the Statement of Changes in Equity.

21 - Called up share capital


		2025		2024
	No.	£	No.	£
Allotted, issued and fully paid: ordinary shares of £1 each
At 31 December	80,000,000	80,000,000	80,000,000	80,000,000

22 - Capital contribution reserve


	2025	2024
	£	£
At 31 December	596,889	400,000

Capital contribution reserve

The capital contribution reserve represents an irrevocable gift to the Company from PGIM, Inc, and is a

distributable reserve.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

23 - Financial risk management

The Company has exposure to credit risk, liquidity risk and market risk from financial instruments. This note

presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies

and processes for measuring and managing risk, and the Company’s management of capital.

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the

Company’s risk management framework and for developing and monitoring the Company’s risk management

policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the

Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk

management policies and systems are reviewed regularly to reflect changes in market conditions and the

Company’s activities. The Company, through its training and management standards and procedures, aims to

maintain a disciplined and constructive control environment in which all employees understand their roles and

obligations.

The Board oversees how management monitors compliance with the Company’s risk management policies and

procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the

Company. The ultimate parent’s Internal Audit team undertakes both regular and ad hoc reviews of risk

management controls and procedures, the results of which are reported to the Audit Committee of the ultimate

parent.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

23 - Financial risk management (continued)

(a) Credit risk

Credit risk is the risk of a counterparty of the Company defaulting on funds deposited with it or the non-receipt

of a trade debt. The Company regularly monitors and reviews its credit risk. The Company’s most significant

credit risk arises on its investment in CLOs. The Company holds senior, junior and subordinated loan notes in

CLOs and is exposed to the risk of partial or non-repayment of those notes on maturity. The senior and junior

notes in those CLOs are independently rated (as outlined in note 13). Furthermore, the Company is the collateral

manager of the CLOs in which it invests and is therefore able to adequately monitor those investments for

impairments. A 12 month ECL model was used to calculate the estimated expected credit loss on all CLOs

accounted for at amortised cost for the 12 months subsequent to the balance sheet date. The expected credit loss

is immaterial.

A significant portion of the Company's counterparties are affiliated entities or investment vehicles for which the

Company performs managerial services and has oversight of the records of those vehicles. As a result the

Company is well placed to identify potential credit risk issues and respond accordingly. For counterparties

where the Company does not have such a relationship, the Company, both on the inception of an agreement with

a counterparty and periodically thereafter, reviews and appraises the risk of payment default through reference

to standard credit measures and the monitoring of payment patterns and outstanding balances.

The Company has not suffered any losses as a result of trade receivables or counterparty defaults during the year

(2024: £nil) and based on the Expected Credit Loss model the loss is immaterial.


	0-30 Days	30-90 Days	90 Days +	Total
2025	£	£	£	£
Trade and other receivables from third parties	348,006	805,981	1,660,359	2,814,346
	0-30 Days	30-90 Days	90 Days +	Total
2024	£	£	£	£
Trade and other receivables from third parties	1,863,755	3,088,049	2,856,151	7,807,955

The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime

expected loss allowance for all trade receivables. To measure ECL trade receivables have been grouped by

Business Unit to reflect the shared credit risk characteristics. Expected loss rates are based on the historic credit

loss experienced for each Business Unit and adjusted for current and forward information affecting the ability of

the individual customers to settle receivables.

The Company has no material loss allowance as at 31 December 2025 (2024: £nil).

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

23 - Financial risk management (continued)

(b) Liquidity risk

Liquidity risk is the risk that the Company may be unable to meet its payment obligations as they fall due.

The Company manages its liquidity on a daily basis to ensure that it has sufficient cash or highly liquid assets

available to meet its liabilities. It is the Company’s policy to ensure that it has access to funds to cover all

forecast commitments for at least the next 12 months. Financial liabilities comprise trade and other payables

with remaining contractual maturities of less than one year.

The table below reflects the age profile of payables:

Maturity analysis


	Less than 1 year	Between 1 and 2 Years	Between 2 and 5 Years	Over 5 Years	Total contractual cash flows	Carrying amount liabilities
At 31 December 2025	£	£	£	£	£	£
Amounts owed to PFI Group companies	24,762,136	—	—	—	24,762,136	24,762,136
Trade and other payables to third parties	4,034,774	—	—	—	4,034,774	4,034,774
Non-trade payables and accrued expenses	41,765,531	—	—	—	41,765,531	41,765,531
Interest bearing borrowings	31,191,623	72,524,832	—	—	103,716,455	103,716,455
Total	101,754,064	72,524,832	—	—	174,278,896	174,278,896

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

23 - Financial risk management (continued)


	Less than 1 year	Between 1 and 2 Years	Between 2 and 5 Years	Over 5 Years	Total contractual cash flows	Carrying amount liabilities
At 31 December 2024	£	£	£	£	£	£
Amounts owed to PFI Group companies	10,510,835	—	—	—	10,510,835	10,510,835
Trade and other payables to third parties	3,264,267	—	—	—	3,264,267	3,264,267
Tax payable	—	—	—	—	—	—
Non-trade payables and accrued expenses	31,797,312	—	—	—	31,797,312	31,797,312
Interest bearing borrowings	1,313,760	29,724,487	69,241,625	10,322,397	110,602,269	110,602,269
Total	46,886,174	29,724,487	69,241,625	10,322,397	156,174,683	156,174,683

Market risk - Foreign currency risk

Foreign currency risk is the risk that the Company will sustain losses through adverse movements in foreign

currency exchange rates.

The Company is exposed to foreign currency risk through its exposure to non Pound Sterling income, expenses,

assets and liabilities of its overseas subsidiaries as well as net assets and liabilities denominated in a currency

other than Pound Sterling. The primary currency that is used is Pound Sterling, with some transactions

conducted in Euro and US Dollars. As the main currency used is Pound Sterling the Company does not see this

as a significant risk, as any movements are not expected to have a material effect on the net assets.

Market risk - Interest rate risk

Interest rate risk is the risk that the Company will sustain losses from adverse movements in interest rates, either

through a mismatch of interest-bearing assets and liabilities, or through the effect such movements have on the

value of interest-bearing instruments.

The Company is primarily exposed to interest rates on investments held in collateralised loan obligations. This

exposure is monitored by management on a continuous basis but is not expected to have a material effect on

Company results.

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

23 - Financial risk management (continued)

Market risk - Investment risk

Investment risk is the risk that the Company will sustain losses from adverse movements in market prices from

subordinated tranches of the CLO assets.

The Company is primarily exposed to movements on the market values of investments in collateralised loan

obligations. These investments are structured as loan notes which the Company expects to hold to maturity and

so the Company’s focus is primarily on the credit risk associated with recovery of principal amounts on expiry

of the loan notes.

The sensitivities to market risk as at 31 December 2025 and 2024 are estimated below:


	Effect on profit for the year	Effect on other comprehensive income	Effect on net asset
2025	£ 000	£ 000	£ 000
Foreign Currency risk - +/- 5 % change in €:£ rate	(283)	—	(283)
Interest Rate risk - + 50 basis point change in 3 month Euribor rate	446	—	—
Pricing risk - +/- 5 % change in market value	—	2,320	2,320


	Effect on profit for the year	Effect on other comprehensive income	Effect on net asset
2024	£ 000	£ 000	£ 000
Foreign Currency risk - +/- 5 % change in €:£ rate	491	—	491
Interest Rate risk - + 50 basis point change in 3 month Euribor rate	2,927	—	—
Pricing risk - +/- 5 % change in market value	—	7,265	7,265

PGIM Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

23 - Financial risk management (continued)

(d) Capital management

The Company’s main objectives in managing its capital are as follows:

• ensure surplus capital in excess of its capital requirements is deployed appropriately, to protect the overall

returns of the Company and with due consideration to the Company’s liquidity; and

• ensure continued compliance with its capital requirements as outlined by the FCA.

The Company was successful in meeting its objectives during this and the previous financial year.

The Company’s capital is represented by the Company’s total equity as disclosed in the Statement of Changes in

Equity. As at 31 December 2025 this totalled £138,542,972 (2024: £127,284,760). The Company’s objective

when managing capital is to safeguard its ability to continue as a going concern in order to support the

developments of the business and provide returns for shareholders.

24 - Related parties

The Company has taken advantage of the disclosure exemption available under FRS 101 in respect of the

requirements of IAS 24 Related party disclosures to disclose related parties transactions entered into between

two or more members of a group.

The smallest group to consolidate these financial statements is PGIM, Inc., a company incorporated in the

United States of America. Copies of the PGIM, Inc. consolidated financial statements can be requested from the

Company Secretary at 3 Gateway Center, 100 Mulberry Street, Newark, NJ 07102. The ultimate parent

undertaking and largest group to consolidate these financial statements is Prudential Financial, Inc.. Copies of

the Prudential Financial, Inc. consolidated financial statements can be requested from the Company Secretary at

751 Broad Street, Newark, NJ 07102. Related parties of the Company comprise the ultimate parent and other

subsidiaries of the ultimate parent, principally PGIM Inc, for which the Company performs and receives

Investment Advisory and Investment Management services.

The Company is a wholly owned direct subsidiary during the year and at balance date. On 1 January 2026, the

company became a wholly owned direct subsidiary of PGIM, Inc.

25 - Non adjusting events after the financial year

In December, the Directors of the immediate parent, PGIM Financial Limited, resolved to pay the share capital

of the Company to PGIM, Inc. by way of a dividend in specie, effective 1 January 2026.

On 24th of March 2026, a €53m tranche for which previously the sole lender was PGIM Limited's immediate

parent PGIM Financial Limited, was novated by PFL to PGIM, Inc..

In January 2026, the company repaid loan of €35m to PGIM. Inc..


Solicitors	CMS Cameron McKenna LLP
	Cannon Place
	78 Cannon Street
	London
	EC4N 6AF


Officers and professional advisers	1
Strategic Report	2 to 9
Directors' Report	10 to 15
Independent Auditors' Report	16 to 19
Income Statement	18
Statement of Comprehensive Income	19
Statement of Financial Position	20
Statement of Changes in Equity	22
Notes to the Financial Statements	23 to 61


Directors	J. P. Butler
	E. M. Farley
	J. M. Finnerty
	J. S. Brown
	D. J. Malooly
	S. L. Pollard
	E. A. Samson
	S. R. Warren
	D. E. Nicholls
	M.B. Shafer
	B. Bralock


Registered office	Grand Buildings
	1-3 Strand
	Trafalgar Square
	London
	WC2N 5HR


Independent auditors	PricewaterhouseCoopers LLP
	Chartered Accountants and Statutory Auditors
	7 More London Riverside
	London
	SE1 2RT


Company secretary	L. D. King