Prudential All Stocks Corporate Bond S3

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

Performance

Discrete performance - to latest available quarter end

31/12/18
to
31/12/19
31/12/19
to
31/12/20
31/12/20
to
31/12/21
31/12/21
to
31/12/22
31/12/22
to
31/12/23
Fund 11.7% 10.4% -3.3% -16.8% 9.3%
Benchmark 9.3% 7.8% -3.1% -17.7% 8.6%

Performance - to latest available quarter end

Quarter Annualised
4
2023
3 Years to
31/12/23
5 Years to
31/12/23
10 Years to
31/12/23
Fund 7.2% -4.2% 1.6% 3.6%
Benchmark 7.3% -4.7% 0.4% 2.7%

Top 10 Holdings

Stock % Weight
⅜% Treasury Gilt 2026 3.93
5% Treasury Stock 2025 3.56
⅛% Treasury Gilt 2026 3.29
4½% Treasury Gilt 2028 1.52
3¼% Treasury Gilt 2044 1.48
1¾% Treasury Gilt 2037 1.48
1½% Treasury Gilt 2026 1.41
EUROPEAN INVESTMENT BANK 1.28
BARCLAYS PLC RegS 1.11
NETWORK RAIL INFRASTRUCTURE FINANC MTN 0.93
Total 19.97

Fund Aims

Objective: The investment strategy of the fund is to purchase units in the M&G PP All Stocks Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds across the range of maturities. The fund is actively managed against its benchmark, the iBoxx sterling Non-Gilts Index. The fund may also hold UK government gilts and limited amounts of high yield and hedged non-sterling corporate bonds. Derivative instruments may be used for efficient portfolio fund management.

Performance Objective: To outperform the benchmark by 0.80% a year (before charges) on a rolling three year basis.

Fund Manager

Jamie Hamilton manager of the underlying fund for 23 years and 1 months

Photo of Jamie Hamilton Jamie Hamilton joined Prudential Group in 2001 as a fund manager in the fixed income team managing a range of institutional corporate bond funds. Prior to joining M&G, Jamie worked for Dresdner RCM Global Investors as a fixed income fund manager, managing corporate bond funds. Jamie graduated from Newcastle University with a degree in economics and is a chartered financial analyst (CFA) charterholder.

Fund Overview

Daily price (27/03/2024) 322.70
Fund size (29/02/2024) £28.47m
Underlying Fund size £1548.13m
Number of holdings 534
Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan
Launch date 06/04/2001

Asset Allocation

pie chart
  International Bonds 40.25%
  UK Corporate Bonds 30.53%
  UK Gilts 20.38%
  Cash and Equivalents 3.02%
  UK Equities 0.00%
  Other Assets 5.82%

Commentary

Performance as at Q4 2023 - The quarter began with concerns over geopolitical risk following conflict breaking in the Middle East. The economic data continued to come in relatively strong particularly from the US adding to fears of higher rates for longer. November and December saw a major rally in markets off the back of fresh hopes of a soft landing and potential central bank cuts. In the UK, Consumer Price Index slowed to 3.9%. Core inflation fell to 5.1%. Whilst monetary policy is having the desired effect on inflation, there are concerns around the UK heading into a technical recession. After the UK economy delivered negative Gross Domestic Product growth in Q3 2023, output also decreased for October. With inflation and productivity falling markets are now expecting the Bank of England to cut rates in 2024. Rates are impacting UK house prices which suffered in 2023, however prices between November and December appeared flat as cash buyers limiting the price decline. In 2024 the UK is expected to have a general election which may cause volatility in sovereign and corporate bond markets. The November and December rally was triggered by dovish tones from the Federal Open Markets Committee meeting in November followed by the Federal Reserve’s (Fed) December dot plot which surprised investors with a far more dovish tone of 75bps of rate cuts being signalled for 2024. In turn investors' expectations for inflation returning to target without a recession grew. Europe saw a similar story with supportive data and European Central Bank cuts being largely priced in by April 2024. Inflation continues to trend in the right direction reflecting the decline in the money supply. However, the path back to target will not be straightforward with wages continuing to add to inflationary pressure. There may be some Fed pushback given that the rally has loosened financial conditions. This backdrop resulted in the Bloomberg Global Bond Aggregate Index gaining +5.0% in November and +4.2% in December. The rally reversed the trajectory for fixed income in 2023 where at the end of September portions of the fixed income market were facing the prospect of a third successive year of negative returns. Investment Grade (IG) credit performed strongly with spreads tightening and rates falling. The spread on the Global IG index tightened with high beta names, cyclicals, financials and BBBs being the outperformers. Total returns for EUR, GBP and US IG corporates were +5.5%, +7.4% and +7.9% respectively. All in yields remain historically high offering a positive real yield for investors. High Yield (HY) credit fared similarly. Lower sovereign bond yields and spread tightening helped the Global HY credit market deliver gains of +6.6% bringing total returns to +12.5% . Annually, US HY +13.5% slightly outperformed European HY, predominantly driven by its marginally longer duration. Whilst there has been much talk of soft landings, there is always the spectre of an unforeseen event - financial or geopolitical which could spark future bond market volatility or even a sharp turn in monetary policy. There are a significant number of elections coming in 2024 and this may be the first time that many company executives have faced a period of high financing costs. The fund marginally underperformed its benchmark . Sector selection was a detractor, driven by the fund's underweight position relative to the benchmark in the Industrial sector. Security selection was a detractor. Overweight positions in Utility bonds issued by EDF, Enel and Southern Gas Networks were positive contributors. In addition overweight positions in Financial bonds issued by Barclays, Rothsay Life and Intesa Sanpaolo added to performance. Overweight positions in Real Estate such as Heimstaden Bostad and CPI Property Group were detractors. Lastly the manager removed the fund's exposure to Atos, a French technology company whereby confidence in a management turnaround declined.

Source: M&G

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.

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).

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 investment can go down as well as up so you might get back less than you put in.

This factsheet is intended for the trustees, sponsors, advisers and members 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. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their 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 information or make any warranties regarding results from its usage.

Portfolio data accurate as at:

Asset Allocation

pie chart
  International Bonds 40.25%
  UK Corporate Bonds 30.53%
  UK Gilts 20.38%
  Cash and Equivalents 3.02%
  UK Equities 0.00%
  Other Assets 5.82%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 91.16% - - -
 
Non-Classified 5.82% - - -
 
Cash and Equivalents 3.02% - - -

Regional Allocation

pie chart
  UK 50.91%
  Developed Europe - Excl UK 22.71%
  Non-Classified 11.71%
  North America 10.47%
  Cash and Equivalents 3.02%
  Australia & New Zealand 0.49%
  South & Central America 0.30%
  Japan 0.21%
  Middle East & Africa 0.11%
  Developed Asia 0.06%

Fixed Interest Currencies

pie chart
  Pound Sterling 86.31%
  Non-Fixed Interest Assets 5.82%
  Euro 3.66%
  Cash 3.02%
  US Dollar 1.19%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 50.91% -
 
United Kingdom - 50.91%
 
Developed Europe - Excl UK 22.71% -
 
France - 8.02%
 
Netherlands - 4.78%
 
Luxembourg - 3.14%
 
Germany - 1.57%
 
Spain - 1.12%
 
Switzerland - 1.10%
 
Italy - 0.90%
 
Sweden - 0.83%
 
Finland - 0.47%
 
Denmark - 0.41%
 
Ireland - 0.16%
 
Belgium - 0.11%
 
Iceland - 0.09%
 
Norway - 0.01%
 
Non-Classified 11.71% -
 
North America 10.47% -
 
United States - 9.29%
 
Canada - 1.18%
 
Cash and Equivalents 3.02% -
 
Australia & New Zealand 0.49% -
 
Australia - 0.49%
 
South & Central America 0.30% -
 
Mexico - 0.30%
 
Japan 0.21% -
 
Japan - 0.21%
 
Middle East & Africa 0.11% -
 
United Arab Emirates - 0.11%
 
Developed Asia 0.06% -
 
Hong Kong - 0.06%

Breakdown By Market Cap (%)

Non-Classified
 
 
5.82%
Bonds
 
 
91.16%
Cash
 
 
3.02%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
40.91%
5Yr - 10Yr Maturity
 
 
21.05%
10Yr - 15Yr Maturity
 
 
9.97%
> 15Yr Maturity
 
 
19.23%
Cash And Equivalents
 
 
3.02%
Unknown Maturity
 
 
5.82%

Fixed Interest Quality Profile

AAA
 
 
4.45%
AA
 
 
28.96%
A
 
 
19.63%
BBB
 
 
28.31%
Sub-Investment Grade
 
 
0.61%
Unknown Quality
 
 
9.20%
Cash and Equivalents
 
 
3.02%
Other Asset Types
 
 
5.82%

Top 10 Holdings

Stock % Weight Sector Country
1 ⅜% Treasury Gilt 2026 3.93% Bonds United Kingdom
2 5% Treasury Stock 2025 3.56% Bonds United Kingdom
3 ⅛% Treasury Gilt 2026 3.29% Bonds United Kingdom
4 4½% Treasury Gilt 2028 1.52% Bonds United Kingdom
5 3¼% Treasury Gilt 2044 1.48% Bonds United Kingdom
6 1¾% Treasury Gilt 2037 1.48% Bonds United Kingdom
7 1½% Treasury Gilt 2026 1.41% Bonds United Kingdom
8 EUROPEAN INVESTMENT BANK 1.28% Bonds Luxembourg
9 BARCLAYS PLC RegS 1.11% Non-Classified Non-Classified
10 NETWORK RAIL INFRASTRUCTURE FINANC MTN 0.93% Bonds Non-Classified

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.

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).

The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.

This factsheet is for information purposes only. If there is information or terminology included that you would like to discuss, then please contact an adviser. Investors should refer to their 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 3168563
Mex Code PUCB
Isin Code GB0031685638
Citi Code P270

Fund Charges

Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan

Aims and Benchmark

Aims Objective: The investment strategy of the fund is to purchase units in the M&G PP All Stocks Corporate Bond Fund - the underlying fund. Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds across the range of maturities. The fund is actively managed against its benchmark, the iBoxx sterling Non-Gilts Index. The fund may also hold UK government gilts and limited amounts of high yield and hedged non-sterling corporate bonds. Derivative instruments may be used for efficient portfolio fund management. Performance Objective: To outperform the benchmark by 0.80% a year (before charges) on a rolling three year basis.
Benchmark iBoxx Sterling Non-Gilts Index
Sector ABI Sterling Fixed Interest

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.

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).

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

This factsheet is for information purposes only. If there is information or terminology included that you would like to discuss, then please contact an adviser. Investors should refer to their 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.

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.

You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser.

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

Lower to Medium Risk

These funds may invest in corporate bonds or multi-asset strategies with a higher weighting in corporate bonds (and other comparable strategies).

Help

Important Information

This factsheet is intended for the trustees, sponsors, advisers and members 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. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their 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 information 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.

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).

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 investment can go down as well as up so you might get back less than you put in.

This factsheet is intended for the trustees, sponsors, advisers and members 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. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their 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 information 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.