Prudential UK Property - closed to new investments 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

30/06/14
to
30/06/15
30/06/15
to
30/06/16
30/06/16
to
30/06/17
30/06/17
to
30/06/18
30/06/18
to
30/06/19
Fund 23.1% 10.1% -4.0% 10.7% 3.0%
Benchmark 15.5% 7.2% 6.0% 9.7% 3.4%

Performance - to latest available quarter end

Quarter Annualised
2
2019
3 Years to
30/06/19
5 Years to
30/06/19
10 Years to
30/06/19
Fund 0.5% 3.1% 8.2% 7.4%
Benchmark 0.6% 6.3% 8.3% 8.7%

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

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 and 5 months

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 (15/08/2019) 306.70
Fund size (30/06/2019) £46.52m
Underlying Fund size £661.09m
Number of holdings 41
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 99.02%
  Cash and Equivalents 0.98%

Performance comment

Performance as at Q1 2019 - The fund delivered a total net return of -0.5% in Q1, which fell behind the benchmark. Although income continued to provide a positive contribution, this was more than offset by the adverse sentiment towards the retail sector, which impacted valuations.

An indirect healthcare holding was sold for £7.2m, achieving a 5% increase on its valuation. An office in Reading was sold for £10.9m slightly below its £11.2m valuation. However, it represented the portfolio’s largest void and the sale reduced the portfolio’s vacancy rate to just 1.8%. An office in Maidenhead was also sold for £12.7m, in-line with its valuation. Proceeds were utilised to meet ongoing redemption requirements.

Asset management activity remains principally focused on further enhancing the portfolio’s defensive income profile. Discussions are progressing on a number of lease renewal and rent review initiatives, with a view to securing existing retail tenants and capturing rental growth in the office and industrial sectors.

Despite the current political uncertainties, interest remains healthy for low risk assets with secure income. The fund manager expects offices and logistics to remain the most resilient sectors and whilst retrenchment and CVAs continue to impact retail, recent valuation write-downs mean that pricing is starting to look more attractive on a relative basis.

The portfolio’s defensive positioning remains the fund managers primary strategic focus, centred on the ongoing enhancement of the income profile, which is expected to remain the main driver of returns. In the short-term, the fund manager will continue taking a measured approach towards disposals, focusing on assets that present a relative risk to performance and reducing the overweight to retail. In due course, the anticipated re-pricing of riskier assets should present some attractive buying opportunities, with a particular focus on central London and alternative sectors. Source: M&G Investments

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.

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). 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 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 99.02%
  Cash and Equivalents 0.98%

Equity Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Property 99.02% - - -
 
Property - 99.02% - -
 
Property - - 99.02% -
 
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
  SOUTH EAST 52.35%
  SOUTH WEST 15.53%
  THE NORTH 15.52%
  THE MIDLANDS 4.64%
  OTHER 11.96%

Asset Allocation

pie chart
  Industrial 32.46%
  Office 24.61%
  Retail Warehouse 22.08%
  Shop 9.94%
  Other 9.17%
  Shopping Centre 1.75%

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.

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

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

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.

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

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 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

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.

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). 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 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 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.