Prudential International Bond - closed to new members S3
Performance
Discrete performance - to latest available quarter end
| 31/12/20 to 31/12/21 |
31/12/21 to 31/12/22 |
31/12/22 to 31/12/23 |
31/12/23 to 31/12/24 |
31/12/24 to 31/12/25 |
|
|---|---|---|---|---|---|
| Fund | -5.0% | 2.5% | -2.3% | -3.9% | 2.2% |
| Benchmark | -5.9% | -6.2% | -2.2% | -1.9% | -0.9% |
Performance - to latest available quarter end
| Quarter | Annualised | |||
|---|---|---|---|---|
| 4 2025 |
3 Years to 31/12/25 |
5 Years to 31/12/25 |
10 Years to 31/12/25 |
|
| Fund | -0.3% | -1.4% | -1.3% | 2.8% |
| Benchmark | -0.5% | -1.7% | -3.4% | 1.3% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| TREASURY NOTE | 9.60 |
| TREASURY (CPI) NOTE | 7.10 |
| JAPAN (GOVERNMENT OF) 2YR #462 | 6.75 |
| TREASURY NOTE | 6.68 |
| NORWAY KINGDOM OF (GOVERNMENT) | 6.34 |
| ITALY (REPUBLIC OF) MTN RegS | 6.21 |
| TREASURY NOTE | 4.97 |
| CZECH REPUBLIC | 4.89 |
| MEXICO (UNITED MEXICAN STATES) (GO | 4.64 |
| MEXICO (UNITED MEXICAN STATES) (GO MTN | 4.63 |
| Total | 61.79 |
Fund Aims
Objective: The investment strategy of the fund is to purchase units in the M&G PP International Bond Fund - the underlying fund.
Underlying Fund Objective: The fund invests in all the major government bond markets outside the UK with principal holdings in the US, Japan and Europe. The fund is actively managed against its benchmark, the Barclays Global Aggregate Treasury Custom Over $3bn Index. Both active stock selection and asset allocation are used to add value.
Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis.
Fund Manager
Robert joined M&G in 2007 as a fund managers’ assistant, supporting our institutional portfolio management team. He was promoted to Assistant Fund Manager in January 2008. Prior to M&G, Robert worked in fund accounting for Cambridge Place Investment Management, a hedge fund boutique. Robert graduated from the University of Pietermaritzburg in South Africa with an honours degree in Finance and Economics. Robert is a CFA charterholder.
Fund Overview
| Daily price (06/01/2026) | 281.70 |
| Fund size (30/11/2025) | £1.69m |
| Underlying Fund size | £1.73m |
| Number of holdings | 42 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 06/04/2001 |
Asset Allocation
| International Bonds | 94.24% | |
| Cash and Equivalents | 2.66% | |
| UK Gilts | 2.26% | |
| UK Corporate Bonds | 0.91% | |
| Other Assets | -0.06% |
Commentary
Performance as at Q3 2025 -The third quarter of 2025 saw notable shifts across global markets, driven by evolving monetary policy, political developments, and economic data. In the Euro area, the European Central Bank held its deposit rate at 2%, signalling a pause in further easing. Inflation continued to moderate, with headline CPI confirmed at 1.9% in August and core inflation at 2.3%. Germany’s business activity weakened, with both manufacturing and services PMIs in contraction. France experienced significant political instability following the collapse of PM Bayrou’s government after a failed €44 billion austerity proposal.
The budget deficit reached 5.4%, youth unemployment rose to 18.2%, and industrial output declined amid high energy costs and weak demand. Bond yields surged, and Fitch downgraded France’s credit rating to A+ due to limited fiscal flexibility and rising debt costs. In the UK, inflation remained stubbornly high, with June CPI rising to 3.6% year-on-year. Wage growth stayed elevated at 6-7%, while unemployment edged up to 4%.
The Bank of England cut the Base Rate by 25bps to 4% in August, its fifth consecutive cut this year, reflecting recession concerns. However, with inflation still above the 2% target, the BoE paused further easing in September, citing fragile growth and rising unemployment. The Monetary Policy Committee reiterated its cautious, data-dependent approach.
In the US, the quarter was shaped by geopolitical tensions, fiscal stimulus, and signs of economic cooling. The administration escalated tariffs, including a 35% rate on Canadian goods, while passing a major tax cut package. Inflation ticked up to 2.7% in June, ending the spring disinflation trend. Labour market data weakened, with only 73,000 jobs added in July and unemployment rising to 4.3% by September. The Federal Reserve responded with its first rate cut of the year, lowering the target range to 4.00-4.25%. Chair Powell described it as a “risk-management cut,” with projections indicating 75bps of total cuts expected in 2025.
Credit markets performed well across regions. Investment grade corporate bond spreads tightened to 78bps in Euro IG (-13bps), 81bps in UK IG (-15bps), and 76bps in US IG (-10bps). Total returns were positive: +0.91% in Euro IG, +0.74% in UK IG, and +2.65% in US IG. Government bonds delivered mixed results, with US Treasuries outperforming (+1.56%), while Euro and UK government bonds posted negative returns of -0.34% and -0.75%, respectively. High yield credit spreads also tightened, ending at 268bps in Euro HY (-48bps) and 280bps in US HY (-16bps). Total returns were +1.89% in Euro HY and +2.40% in US HY.
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 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.
Asset Allocation
| International Bonds | 94.24% | |
| Cash and Equivalents | 2.66% | |
| UK Gilts | 2.26% | |
| UK Corporate Bonds | 0.91% | |
| Other Assets | -0.06% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 97.41% | - | - | - | |
| Cash and Equivalents | 2.66% | - | - | - | |
| Non-Classified | -0.06% | - | - | - | |
Regional Allocation
| North America | 37.68% | |
| Developed Europe - Excl UK | 17.93% | |
| Japan | 11.60% | |
| South & Central America | 9.27% | |
| Australia & New Zealand | 8.02% | |
| Emerging Europe | 7.98% | |
| UK | 3.17% | |
| Cash and Equivalents | 2.66% | |
| Emerging Asia | 1.77% | |
| Non-Classified | -0.06% |
Fixed Interest Currencies
| US Dollar | 35.12% | |
| Pound Sterling | 15.59% | |
| Yen | 11.60% | |
| Norwegian Krone | 6.34% | |
| Euro | 5.45% | |
| Australian Dollar | 4.90% | |
| Other Currencies | 21.00% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| North America | 37.68% | - | |
United States
|
- | 37.68% | |
| Developed Europe - Excl UK | 17.93% | - | |
Italy
|
- | 7.81% | |
Norway
|
- | 6.34% | |
Germany
|
- | 3.78% | |
| Japan | 11.60% | - | |
Japan
|
- | 11.60% | |
| South & Central America | 9.27% | - | |
Mexico
|
- | 9.27% | |
| Australia & New Zealand | 8.02% | - | |
Australia
|
- | 4.90% | |
New Zealand
|
- | 3.12% | |
| Emerging Europe | 7.98% | - | |
Czech Republic
|
- | 4.89% | |
Poland
|
- | 3.08% | |
| UK | 3.17% | - | |
United Kingdom
|
- | 3.17% | |
| Cash and Equivalents | 2.66% | - | |
| Emerging Asia | 1.77% | - | |
China
|
- | 1.77% | |
| Non-Classified | -0.06% | - | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
40.58% |
| 5Yr - 10Yr Maturity |
|
30.61% |
| 10Yr - 15Yr Maturity |
|
5.13% |
| > 15Yr Maturity |
|
21.08% |
| Cash And Equivalents |
|
2.66% |
| Unknown Maturity |
|
-0.06% |
Fixed Interest Quality Profile
| AAA |
|
15.92% |
| AA |
|
43.64% |
| A |
|
4.85% |
| BBB |
|
15.48% |
| Unknown Quality |
|
17.52% |
| Cash and Equivalents |
|
2.66% |
| Other Asset Types |
|
-0.06% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | TREASURY NOTE | 9.60% | Bonds | United States |
| 2 | TREASURY (CPI) NOTE | 7.10% | Bonds | United States |
| 3 | JAPAN (GOVERNMENT OF) 2YR #462 | 6.75% | Bonds | Japan |
| 4 | TREASURY NOTE | 6.68% | Bonds | United States |
| 5 | NORWAY KINGDOM OF (GOVERNMENT) | 6.34% | Bonds | Norway |
| 6 | ITALY (REPUBLIC OF) MTN RegS | 6.21% | Bonds | Italy |
| 7 | TREASURY NOTE | 4.97% | Bonds | United States |
| 8 | CZECH REPUBLIC | 4.89% | Bonds | Czech Republic |
| 9 | MEXICO (UNITED MEXICAN STATES) (GO | 4.64% | Bonds | Mexico |
| 10 | MEXICO (UNITED MEXICAN STATES) (GO MTN | 4.63% | Bonds | Mexico |
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 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.
Identification Codes
| Sedol Code | 3168615 |
| Mex Code | PUIBD |
| Isin Code | GB0031686156 |
| Citi Code | P278 |
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 International Bond Fund - the underlying fund. Underlying Fund Objective: The fund invests in all the major government bond markets outside the UK with principal holdings in the US, Japan and Europe. The fund is actively managed against its benchmark, the Barclays Global Aggregate Treasury Custom Over $3bn Index. Both active stock selection and asset allocation are used to add value. Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis. |
| Benchmark | Barclays Global Aggregate Treasury Custom > $3bn |
| ABI Sector | Global 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 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.
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | -3.86 |
| Beta | 0.89 |
| Sharpe | 0.00 |
| Standard Deviation | 5.03 |
| Info Ratio | -1.29 |
Risk Factors
| Risk Factor | Yes / No |
|---|---|
| Charges to Capital | Yes |
| Emerging Markets | No |
| Concentrated Portfolio | No |
| Smaller Companies | No |
| High Yield Bonds | Yes |
| Sector Specific | No |
| Geared Investments | No |
| Value of Investments | Yes |
| Investments Long Term | Yes |
| Property | No |
| Exchange Rate | Yes |
| 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 | Yes |
| Ethical Restrictions | No |
| Liquidity | No |
| 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).
High Yield Bonds
The fund invests in high yield bonds. High yield bonds carry a greater risk of default than investment grade bonds, and economic conditions and interest rate movements will have a greater effect on their price. Income levels may not be achieved and the income provided may vary.
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.
Exchange Rate
This fund invests in securities outside the UK. The value of investments and any income from them may therefore decrease or increase as a result of changes in exchange rates between currencies.
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.
Solvency of Bond Issuers
If the fund you choose invests in bonds there is a risk that the issuer may default, resulting in a loss to the portfolio.
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.
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 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.
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.
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 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.