Prudential UK Property - closed to new investments S1

Essentials Portfolio Analysis Background Data Investment Risk Prudential Risk Performance View PDF Factsheet
Portfolio data accurate as at:

Performance

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Top 10 Holdings

Stock % Weight
RENAISSANCE 9.26
THE BREWERY ROMFORD 8.26
ORCHARDS BUSINESS CENTRE 5.84
9-18 BATH STREET 5.51
EMERSONS GREEN RETAIL PARK 4.54
MERIDIEN HOUSE 4.38
HADDINGTON PLACE - STUDENT ACCOMMODATION 4.16
92 EUROPA BOULEVARD 3 GEMINI RETAIL PARK 4.13
ACRE ROAD 3.89
Embankment Unit Trust 3.34
Total 53.31

Fund Aims

Objective: The investment strategy of the fund is to buy units in the M&G PP UK Property Fund - the underlying fund.

Underlying Fund Objective: The fund invests in the M&G UK Property Fund (“UKPF”), an open-ended Luxembourg FCP investing solely in UK property assets, including the retail, office, industrial and alternative sectors. The UKPF is actively managed against its IPD benchmark, seeking to deliver returns through a combination of rental income and capital growth. At times the fund may have significant levels of short term cash deposits in advance of purchasing units in the UKPF. This may lead to lower than expected returns.

Performance Objective: To outperform the benchmark by 0.3% per year (net of charges) over rolling 3-year periods.

Fund Manager

Dermot Kiernan manager of the underlying fund for 15 years

Photo of Dermot Kiernan Dermot Kiernan was appointed fund manager of the M&G Property Fund in March 2009. Dermot has more than 25 years of experience in property investment, having joined PRUPIM in September 2007 from LaSalle Investment Management where he managed segregated pension fund property mandates for 17 years. Prior to this, he worked both for a quoted property company and in the public sector. He has a degree in estate management and is a chartered surveyor.

Fund Overview

Bid (10/06/2021) 6.51
Offer (10/06/2021) 6.85
Fund size (31/07/2022) £0.05m
Underlying Fund size £661.09m
Number of holdings 41
Launch date 02/07/1991

Fund Charges

Annual Management Charge (AMC) 0.75%
Further Costs 0.69%
Yearly Total 1.44%

Asset Allocation

pie chart
  Property 99.02%
  Cash and Equivalents 0.98%

Commentary

Performance as at Q1 2021 - The Fund returned 1.4% in Q1, with positive contributions coming not only income, but also capital, which returned to positive territory in February. This was behind the benchmark return of 2.2% and detailed attribution is awaited from MSCI in order to analyse the underperformance. Rent collections for Q1 continued to rise and currently stand at circa 84% for the direct portfolio*. Collections for Q2, three weeks after the due date were circa 71%.

A new letting to Itsu is being negotiated at the Bath retail asset and at the retail park in Bristol, an up-size is being discussed with Lidl, in association with a down-size for Boots, securing greater food use for the park. Interest from JD Sports is also being pursued, to replace Peacocks, which went into administration.

Progress continues to be made with potential asset sales. Contracts for the partial sale of a portfolio of ground rent leases in Aberdeen were exchanged just after the end of the quarter and in line with our strategy to reduce retail exposure, an offer was accepted from a new purchaser for a retail asset in Swindon at £9.5m. Proceeds will be utilised to meet liquidity requirements.

Source: M&G

Portfolio data accurate as at: 31/03/19

Important Information

Because of changes in exchange rates the value of your investment, as well as any money you take from it, can go down as well as up.

This fund invests in property and land. This can be difficult to sell - so you may not be able to sell/cash in this investment when you want to. We may have to delay acting on your instructions to sell your investment.
Other than in very exceptional circumstances we would not expect delays to be longer than six months for investments in property and land.

You should look upon your investment in the property fund as being long-term, so 10 years or more. There are large costs when we buy and sell property. The allowance for these costs amongst other factors can lead to short-term falls in the price of units in the Property fund. The return achieved from investing in property is a combination of rental income and changes in the value of the property; which is generally a matter of a valuer’s opinion rather than fact.

For more information please refer to your policy or scheme documentation.

Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. So the figures shown until then might be for the previous quarter.

Some funds may invest in ‘underlying’ funds or other investment vehicles. The performance of our fund, compared to what it’s invested in won’t be exactly the same. That can be due to additional charges, cash management (needed to help people to enter and leave our fund when they want), tax and the timing of investments (this is known as a fund’s dealing cycle, it varies between managers and can be several days).

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Source of portfolio data: Broadridge. Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of fund charges and further costs, but take no account of any Annual Management Charge paid for by the deduction of units. Charges and further costs may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with gross income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

Portfolio data accurate as at:

Asset Allocation

pie chart
  Property 99.02%
  Cash and Equivalents 0.98%

Regional Allocation

pie chart
  Property 99.02%
  Cash and Equivalents 0.98%

Fixed Interest Currencies

pie chart
  Non-Fixed Interest Assets 81.90%
  Cash 10.51%
  Pound Sterling 7.60%

Regional Breakdown

Expand allCollapse all
Region Country
 
Property 99.02% -
 
Cash and Equivalents 0.98% -

Property Regions

pie chart
  THE NORTH 24.84%
  SOUTH EAST 14.40%
  OTHER 60.76%

Asset Allocation

pie chart
  Other 72.60%
  Office 24.84%
  Shop 2.53%
  Shopping Centre 0.03%

Top 10 Holdings

Stock % Weight Sector Country
1 RENAISSANCE 9.26% Property Direct Property and REITs
2 THE BREWERY ROMFORD 8.26% Property Direct Property and REITs
3 ORCHARDS BUSINESS CENTRE 5.84% Property Direct Property and REITs
4 9-18 BATH STREET 5.51% Property Direct Property and REITs
5 EMERSONS GREEN RETAIL PARK 4.54% Property Direct Property and REITs
6 MERIDIEN HOUSE 4.38% Property Direct Property and REITs
7 HADDINGTON PLACE - STUDENT ACCOMMODATION 4.16% Property Direct Property and REITs
8 92 EUROPA BOULEVARD 3 GEMINI RETAIL PARK 4.13% Property Direct Property and REITs
9 ACRE ROAD 3.89% Property Direct Property and REITs
10 Embankment Unit Trust 3.34% Property Direct Property and REITs

Dual Aspect Equity Analysis

UK Equities Int'l Equities UK Bonds Int'l Bonds UK Gilts Property Other Cash & Equiv Total
Property - - - - - 99.02% - - 99.02%
Cash and Equivalents - - - - - - - 0.98% 0.98%

Important Information

Because of changes in exchange rates the value of your investment, as well as any money you take from it, can go down as well as up.

This fund invests in property and land. This can be difficult to sell - so you may not be able to sell/cash in this investment when you want to. We may have to delay acting on your instructions to sell your investment.
Other than in very exceptional circumstances we would not expect delays to be longer than six months for investments in property and land.

You should look upon your investment in the property fund as being long-term, so 10 years or more. There are large costs when we buy and sell property. The allowance for these costs amongst other factors can lead to short-term falls in the price of units in the Property fund. The return achieved from investing in property is a combination of rental income and changes in the value of the property; which is generally a matter of a valuer’s opinion rather than fact.

For more information please refer to your policy or scheme documentation.

Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. So the figures shown until then might be for the previous quarter.

Some funds may invest in ‘underlying’ funds or other investment vehicles. The performance of our fund, compared to what it’s invested in won’t be exactly the same. That can be due to additional charges, cash management (needed to help people to enter and leave our fund when they want), tax and the timing of investments (this is known as a fund’s dealing cycle, it varies between managers and can be several days).

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This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

Identification Codes

Sedol Code 0702340
Mex Code PUPMP
Isin Code GB0007023400
Citi Code PS24

Fund Charges

Annual Management Charge (AMC) 0.75%
Further Costs 0.69%
Yearly Total 1.44%

Aims and Benchmark

Aims Objective: The investment strategy of the fund is to buy units in the M&G PP UK Property Fund - the underlying fund. Underlying Fund Objective: The fund invests in the M&G UK Property Fund (“UKPF”), an open-ended Luxembourg FCP investing solely in UK property assets, including the retail, office, industrial and alternative sectors. The UKPF is actively managed against its IPD benchmark, seeking to deliver returns through a combination of rental income and capital growth. At times the fund may have significant levels of short term cash deposits in advance of purchasing units in the UKPF. This may lead to lower than expected returns. Performance Objective: To outperform the benchmark by 0.3% per year (net of charges) over rolling 3-year periods.
Benchmark All Balanced Property Fund component of the AREF/IPD UK Quarterly Property Fund Index
Sector ABI UK Direct Property

Important Information

Because of changes in exchange rates the value of your investment, as well as any money you take from it, can go down as well as up.

This fund invests in property and land. This can be difficult to sell - so you may not be able to sell/cash in this investment when you want to. We may have to delay acting on your instructions to sell your investment.
Other than in very exceptional circumstances we would not expect delays to be longer than six months for investments in property and land.

You should look upon your investment in the property fund as being long-term, so 10 years or more. There are large costs when we buy and sell property. The allowance for these costs amongst other factors can lead to short-term falls in the price of units in the Property fund. The return achieved from investing in property is a combination of rental income and changes in the value of the property; which is generally a matter of a valuer’s opinion rather than fact.

For more information please refer to your policy or scheme documentation.

Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. So the figures shown until then might be for the previous quarter.

Some funds may invest in ‘underlying’ funds or other investment vehicles. The performance of our fund, compared to what it’s invested in won’t be exactly the same. That can be due to additional charges, cash management (needed to help people to enter and leave our fund when they want), tax and the timing of investments (this is known as a fund’s dealing cycle, it varies between managers and can be several days).

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Charges and further costs may vary in the future and may be higher than they are now.

This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

Risk Analysis

Ratio Value
Alpha 0.87
Beta 0.72
Sharpe 0.00
Standard Deviation 2.78
Info Ratio 0.34

Risk Factors

Risk Factor Yes / No
Charges to Capital Yes
Emerging Markets No
Concentrated Portfolio No
Smaller Companies No
High Yield Bonds No
Sector Specific Yes
Geared Investments No
Value of Investments Yes
Investments Long Term Yes
Property Yes
Exchange Rate No
Higher Risk No
Performance Charges No
Derivative Exposure No
Offshore No
Income Eroding Capital Growth No
Umbrella Liabilities No
New Fund No
Solvency of Depository Yes
Solvency of Bond Issuers No
Ethical Restrictions No
Liquidity Yes
Returns Are Not Guaranteed Yes
Inflation Yes
Taxation and Tax Relief Yes

Fund Specific Risks

Charges to Capital

Part, or all of the periodic annual management fee(s) and expenses may be charged to capital which could increase the potential for the capital value of your investment to be eroded. Your capital could also decrease if income withdrawals exceed the growth rate of the fund(s).

Sector Specific

The fund invests in specific sectors. Funds which invest in specific sectors may carry more risk than those spread across a number of different sectors. They may assume higher risk, as markets/sectors can be more volatile. In particular, gold, technology funds and other focused funds can suffer as the underlying stocks can be more volatile and less liquid.

Value of Investments

The value of investments, and any income can fall, as well as rise, so you could get back less than you invested. Neither capital nor income is guaranteed.

Investments Long Term

Investments should be regarded as long term and are not suitable for money which may be needed in the short term, you should always have a sufficient cash reserve.

Property

The fund invests in Property funds, property shares or direct property. In particular the following risks will apply:- The property market is illiquid and this can, in exceptional circumstances, lead to times in which clients are unable to dispose of part or all of their holding. Property valuations are made by independent agents but are ultimately subjective and a matter of judgement. Property transaction costs are high (typically around 7% due to legal costs, valuations and stamp duty)

Solvency of Depository

The value of a cash or currency fund may be affected if any of the institutions with which cash is deposited becomes insolvent or experiences other financial difficulties.

Liquidity

This fund can suffer from partial or total illiquidity, which may lead to considerable price fluctuations and the inability to redeem your investment.

Returns Are Not Guaranteed

What you receive when you sell your investment is not guaranteed; it depends on how your investments perform.

Inflation

Inflation will reduce the real value of your investments in future.

Taxation and Tax Relief

Levels of taxation and tax relief are subject to change.

Important Information

Because of changes in exchange rates the value of your investment, as well as any money you take from it, can go down as well as up.

This fund invests in property and land. This can be difficult to sell - so you may not be able to sell/cash in this investment when you want to. We may have to delay acting on your instructions to sell your investment.
Other than in very exceptional circumstances we would not expect delays to be longer than six months for investments in property and land.

You should look upon your investment in the property fund as being long-term, so 10 years or more. There are large costs when we buy and sell property. The allowance for these costs amongst other factors can lead to short-term falls in the price of units in the Property fund. The return achieved from investing in property is a combination of rental income and changes in the value of the property; which is generally a matter of a valuer’s opinion rather than fact.

For more information please refer to your policy or scheme documentation.

Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. So the figures shown until then might be for the previous quarter.

Some funds may invest in ‘underlying’ funds or other investment vehicles. The performance of our fund, compared to what it’s invested in won’t be exactly the same. That can be due to additional charges, cash management (needed to help people to enter and leave our fund when they want), tax and the timing of investments (this is known as a fund’s dealing cycle, it varies between managers and can be several days).

[No Data]

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The risk factor definitions are provided by Broadridge. These definitions may differ from those of Prudential or any underlying fund manager. The data itself is provided by Prudential or the underlying fund manager.

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

These risk ratings have been developed by Prudential to help provide an indication of a fund’s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry.

We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due to a significant change to the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest.

  • Higher Risk
  • Medium to Higher Risk
  • Medium Risk
  • Lower to Medium Risk
  • Lower Risk
  • Minimal Risk

Medium Risk

These funds may invest in multi-asset strategies with a higher weighting in equities (or with significant derivative use), while funds investing mainly in property, high yield or government bonds (such as UK Gilts) are also in this category.

Help

Important Information

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

Important Information

Because of changes in exchange rates the value of your investment, as well as any money you take from it, can go down as well as up.

This fund invests in property and land. This can be difficult to sell - so you may not be able to sell/cash in this investment when you want to. We may have to delay acting on your instructions to sell your investment.
Other than in very exceptional circumstances we would not expect delays to be longer than six months for investments in property and land.

You should look upon your investment in the property fund as being long-term, so 10 years or more. There are large costs when we buy and sell property. The allowance for these costs amongst other factors can lead to short-term falls in the price of units in the Property fund. The return achieved from investing in property is a combination of rental income and changes in the value of the property; which is generally a matter of a valuer’s opinion rather than fact.

For more information please refer to your policy or scheme documentation.

Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. So the figures shown until then might be for the previous quarter.

Some funds may invest in ‘underlying’ funds or other investment vehicles. The performance of our fund, compared to what it’s invested in won’t be exactly the same. That can be due to additional charges, cash management (needed to help people to enter and leave our fund when they want), tax and the timing of investments (this is known as a fund’s dealing cycle, it varies between managers and can be several days).

[No Data]

[No Data]

[No Data]

[No Data]

Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of fund charges and further costs, but take no account of any Annual Management Charge paid for by the deduction of units. Charges and further costs may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with gross income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

Prudential is a trading name of Prudential Pensions Limited. Prudential Pensions Limited is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.