Prudential UK Property 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

31/12/13
to
31/12/14
31/12/14
to
31/12/15
31/12/15
to
31/12/16
31/12/16
to
31/12/17
31/12/17
to
31/12/18
Fund 22.5% 12.1% -2.8% 9.1% 8.5%
Sector 13.9% 9.2% -0.8% 8.5% 4.7%
Rank n/a n/a n/a n/a n/a
Quartile n/a n/a n/a n/a n/a

Performance - to latest available quarter end

Quarter Annualised
4
2018
3 Years to
31/12/18
5 Years to
31/12/18
10 Years to
31/12/18
Fund 1.2% 4.8% 9.6% 6.9%
Sector 0.4% 4.1% 7.0% 5.6%
Rank n/a n/a n/a n/a
Quartile n/a n/a n/a n/a

Top 10 Holdings

Stock % Weight
RENAISSANCE 8.89
THE BREWERY ROMFORD 7.94
ORCHARDS BUSINESS CENTRE 5.61
9-18 BATH STREET 5.39
EMERSONS GREEN RETAIL PARK 4.36
MERIDIEN HOUSE 4.21
92 EUROPA BOULEVARD 3 GEMINI RETAIL PARK 4.04
HADDINGTON PLACE - STUDENT ACCOMMODATION 3.99
ACRE ROAD 3.74
Embankment Unit Trust 3.20
Total 51.35

Fund Aims

The investment strategy of the fund is to buy units in the M&G PP UK Property Fund. That 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 1.05% per year (gross of annual management charges) over rolling 3-year periods.

Fund Manager

Dermot Kiernan manager of the underlying fund for 10 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

Daily price (18/03/2019) 306.40
Fund size (28/02/2019) £47.28m
Underlying Fund size £669.27m
Number of holdings 44
Base Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan
Launch date 06/04/2001

Asset Allocation

pie chart
  Property 99.10%
  Cash and Equivalents 0.90%

Performance comment

Performance as at Q4 2018 - The fund delivered a total net return of 0.5% in Q4 2018, behind the benchmark at 0.9%, as ongoing Brexit-related concerns and declining sentiment towards the retail sector impacted valuations. However, for 2018 fund performance was in line with the benchmark at 6.5%.

A high street shop in Newcastle was sold for £3.7m, in line with the strategy to reduce retail exposure. A central London office was also sold at £18.5m, 26% above its pre-sale valuation. This locked in a material capital gain and reduced the near-term risk associated with the asset’s short income profile. Sale proceeds were utilised to meet redemption requirements.

Active management initiatives also had a positive impact. A rent review at an industrial warehouse in Milton Keynes delivered a 4% uplift in the asset’s value. Furthermore, a retail warehouse unit in Bristol was re-let to Iceland Food, after the previous tenant (Poundland), went into administration. The new lease reflects the continued demand for good quality retail assets.

This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as to how any specific market is likely to perform. Source: M&G Investments

Important Information

Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.

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.

You should look upon your investment in property as being long-term. 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 value of property is generally a matter of a Valuer’s opinion rather than fact. Under certain circumstances, in the interest of other investors, we reserve the right to defer any early encashment or switch between funds. Other than in very exceptional circumstances we would not expect delays to be longer than six months in the case of units held in the fund. At other times the fund may have significant levels of cash (short-term deposits) in advance of purchasing or following the sale of property and/or land. 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. Therefore the figures shown until after this point in time may be for the previous quarter.

For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’s performance and that of any underlying fund it invests in to.

This portfolio has not been independently validated by IPD

Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of future performance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges 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 and you may not get back the amount 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 FundsLibrary, 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
  Property 99.10%
  Cash and Equivalents 0.90%

Equity Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Property 99.10% - - -
 
Property - 99.10% - -
 
Property - - 99.10% -
 
Property - - - 99.10%
 
Cash and Equivalents 0.90% - - -

Regional Allocation

pie chart
  Property 99.10%
  Cash and Equivalents 0.90%

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 99.10% -
 
Cash and Equivalents 0.90% -

Property Regions

pie chart
  SOUTH EAST 52.61%
  THE NORTH 15.19%
  SOUTH WEST 15.15%
  THE MIDLANDS 4.48%
  OTHER 12.58%

Asset Allocation

pie chart
  Industrial 30.26%
  Office 26.65%
  Retail Warehouse 21.59%
  Shop 10.12%
  Other 9.55%
  Shopping Centre 1.83%

Top 10 Holdings

Stock % Weight Sector Country
1 RENAISSANCE 8.89% Property Direct Property and REITs
2 THE BREWERY ROMFORD 7.94% Property Direct Property and REITs
3 ORCHARDS BUSINESS CENTRE 5.61% Property Direct Property and REITs
4 9-18 BATH STREET 5.39% Property Direct Property and REITs
5 EMERSONS GREEN RETAIL PARK 4.36% Property Direct Property and REITs
6 MERIDIEN HOUSE 4.21% Property Direct Property and REITs
7 92 EUROPA BOULEVARD 3 GEMINI RETAIL PARK 4.04% Property Direct Property and REITs
8 HADDINGTON PLACE - STUDENT ACCOMMODATION 3.99% Property Direct Property and REITs
9 ACRE ROAD 3.74% Property Direct Property and REITs
10 Embankment Unit Trust 3.20% 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
Basic Materials - - - - - - - - -
Consumer Goods - - - - - - - - -
Consumer Services - - - - - - - - -
Financials - - - - - - - - -
Health Care - - - - - - - - -
Industrials - - - - - - - - -
Oil & Gas - - - - - - - - -
Technology - - - - - - - - -
Telecommunications - - - - - - - - -
Utilities - - - - - - - - -
Property - - - - - 99.10% - - 99.10%
Cash and Equivalents - - - - - - - 0.90% 0.90%
Bonds - - - - - - - - -
Non-Classified - - - - - - - - -
Commodities - - - - - - - - -
Alternative Trading Strategies - - - - - - - - -

Important Information

Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.

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.

You should look upon your investment in property as being long-term. 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 value of property is generally a matter of a Valuer’s opinion rather than fact. Under certain circumstances, in the interest of other investors, we reserve the right to defer any early encashment or switch between funds. Other than in very exceptional circumstances we would not expect delays to be longer than six months in the case of units held in the fund. At other times the fund may have significant levels of cash (short-term deposits) in advance of purchasing or following the sale of property and/or land. 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. Therefore the figures shown until after this point in time may be for the previous quarter.

For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’s performance and that of any underlying fund it invests in to.

This portfolio has not been independently validated by IPD

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 FundsLibrary, 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 3169414
Mex Code PUPRO
Isin Code GB0031694143
Citi Code P283

Fund Charges

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

Aims and Benchmark

Aims The investment strategy of the fund is to buy units in the M&G PP UK Property Fund. That 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 1.05% per year (gross of annual management charges) over rolling 3-year periods.
Benchmark All Balanced Property Fund component of the AREF / IPD UK Quarterly Property Fund Index
ABI Sector UK Direct Property

Important Information

Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.

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.

You should look upon your investment in property as being long-term. 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 value of property is generally a matter of a Valuer’s opinion rather than fact. Under certain circumstances, in the interest of other investors, we reserve the right to defer any early encashment or switch between funds. Other than in very exceptional circumstances we would not expect delays to be longer than six months in the case of units held in the fund. At other times the fund may have significant levels of cash (short-term deposits) in advance of purchasing or following the sale of property and/or land. 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. Therefore the figures shown until after this point in time may be for the previous quarter.

For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’s performance and that of any underlying fund it invests in to.

This portfolio has not been independently validated by IPD

Our charges 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 FundsLibrary, 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

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 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 FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

Important Information

Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.

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.

You should look upon your investment in property as being long-term. 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 value of property is generally a matter of a Valuer’s opinion rather than fact. Under certain circumstances, in the interest of other investors, we reserve the right to defer any early encashment or switch between funds. Other than in very exceptional circumstances we would not expect delays to be longer than six months in the case of units held in the fund. At other times the fund may have significant levels of cash (short-term deposits) in advance of purchasing or following the sale of property and/or land. 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. Therefore the figures shown until after this point in time may be for the previous quarter.

For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlying investments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’s performance and that of any underlying fund it invests in to.

This portfolio has not been independently validated by IPD

Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of future performance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges may impact the overall performance. Please also note that our charges 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 and you may not get back the amount 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 FundsLibrary, 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. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered in England and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.