Prudential M&G Optimal Income S4

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

Performance

Discrete performance - to last month end

31/07/17
to
31/07/18
31/07/18
to
31/07/19
31/07/19
to
31/07/20
31/07/20
to
31/07/21
31/07/21
to
31/07/22
Fund n/a n/a n/a 5.1% -8.0%
Sector -0.7% 3.6% 2.7% 4.6% -8.2%
Rank n/a n/a n/a 48/127 56/126
Quartile n/a n/a n/a 2 2

Annualised performance

Annualised
3 Years to
31/07/22
5 Years to
31/07/22
10 Years to
31/07/22
Fund n/a n/a n/a
Sector -0.5% 0.3% 2.4%
Rank n/a n/a n/a
Quartile n/a n/a n/a

Top 10 Holdings

Stock % Weight
LONG GILT SEP 22 GBP Notional Cash Offset 8.20
EURO-BUND SEP 22 EUR Notional Cash Offset 5.78
UNITED STATES TREASURY 2.25% 15/11/2025 2.58
UNITED STATES TREASURY 2.25% 15/11/2027 2.57
Northern Trust The Sterling Fund Class E 2.48
UNITED STATES TREASURY 1.5% 30/11/2028 2.44
UNITED STATES TREASURY 0.75% 31/03/2026 2.44
UNITED STATES TREASURY 1% 31/07/2028 2.38
UNITED STATES TREASURY 2.25% 15/05/2041 2.27
UNITED STATES TREASURY 2.875% 15/08/2028 2.14
Total 33.27

Fund Aims

Objective: The investment strategy of the fund is to purchase units in the M&G Optimal Income Fund - the underlying fund.

Underlying Fund Objective: The fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the IA £ Strategic Bond Sector, over any five-year period. At least 50% of the fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade, unrated securities and Asset Backed Securities. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency.

Other investments may include: • up to 20% of the fund in equities; and • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

There are no credit quality restrictions applicable to the fund's investments. At least 80% of the fund is in sterling or hedged back to sterling. Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Fund Manager

Richard Woolnough manager of the underlying fund for 15 years and 8 months

Photo of Richard Woolnough Richard Woolnough joined M&G in January 2004 and is fund manager of the M&G Optimal Income Fund, the M&G Corporate Bond Fund and the M&G Strategic Corporate Bond Fund, three of the company's flagship fixed interest funds. Richard began his career at Lloyds Merchant Bank in 1985, moving to Italian insurer Assicurazioni Generali two years later, followed by SG Warburg. In 1995, he became a fund manager at Old Mutual. Richard graduated from the London School of Economics with a BSc in economics.

Fund Overview

Bid (16/08/2022) 90.90
Offer (16/08/2022) 95.70
Fund size (30/06/2022) £7.36m
Underlying Fund size £1571.24m
Number of holdings 688
Launch date 13/03/2020

Fund Charges

Annual Management Charge (AMC) 1.65%
Further Costs 0.00%
Yearly Total 1.65%

Asset Allocation

pie chart
  International Bonds 70.17%
  Alternative Trading Strategies 24.95%
  UK Corporate Bonds 12.16%
  Money Market 5.78%
  International Equities 0.28%
  UK Equities 0.24%
  Cash and Equivalents -1.25%
  Other Assets -12.32%
Portfolio data accurate as at: 31/07/22

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 product charges, or 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 net 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 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.

Portfolio data accurate as at:

Asset Allocation

pie chart
  International Bonds 70.17%
  Alternative Trading Strategies 24.95%
  UK Corporate Bonds 12.16%
  Money Market 5.78%
  International Equities 0.28%
  UK Equities 0.24%
  Cash and Equivalents -1.25%
  Other Assets -12.32%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 82.33% - - -
 
Alternative Trading Strategies 24.95% - - -
 
Alternative Trading Strategies - 24.95% - -
 
Alternative Trading Strategies - - 24.95% -
 
Alternative Trading Strategies - - - 24.95%
 
Cash and Equivalents 2.05% - - -
 
Industrials 0.29% - - -
 
Industrial Goods & Services - 0.29% - -
 
Industrial Support Services - - 0.28% -
 
Business Training & Employment Agencies - - - 0.28%
 
Aerospace & Defence - - 0.01% -
 
Defense - - - 0.01%
 
Consumer Staples 0.23% - - -
 
Food, Beverage & Tobacco - 0.23% - -
 
Tobacco - - 0.23% -
 
Tobacco - - - 0.23%
 
Consumer Discretionary 0.00% - - -
 
Travel & Leisure - 0.00% - -
 
Travel & Leisure - - 0.00% -
 
Casinos & Gambling - - - 0.00%
 
Non-Classified -9.84% - - -

Regional Allocation

pie chart
  North America 40.37%
  Developed Europe - Excl UK 25.21%
  Non-Classified 14.17%
  UK 12.40%
  Cash and Equivalents 4.53%
  South & Central America 1.82%
  Emerging Europe 0.39%
  Australia & New Zealand 0.38%
  Japan 0.24%
  Other Regions 0.50%

Fixed Interest Currencies

pie chart
  US Dollar 40.41%
  Euro 24.57%
  Non-Fixed Interest Assets 18.93%
  Pound Sterling 17.34%
  Cash -1.25%

Regional Breakdown

Expand allCollapse all
Region Country
 
North America 40.37% -
 
United States - 40.08%
 
Canada - 0.28%
 
Developed Europe - Excl UK 25.21% -
 
France - 9.18%
 
Netherlands - 4.03%
 
Spain - 2.76%
 
Italy - 2.69%
 
Germany - 2.15%
 
Ireland - 1.20%
 
Switzerland - 0.96%
 
Luxembourg - 0.96%
 
Finland - 0.39%
 
Denmark - 0.30%
 
Belgium - 0.28%
 
Sweden - 0.22%
 
Portugal - 0.08%
 
Non-Classified 14.17% -
 
UK 12.40% -
 
United Kingdom - 12.40%
 
Cash and Equivalents 4.53% -
 
South & Central America 1.82% -
 
Mexico - 1.51%
 
Colombia - 0.19%
 
Paraguay - 0.09%
 
Chile - 0.02%
 
Emerging Europe 0.39% -
 
Romania - 0.16%
 
Serbia - 0.12%
 
Macedonia, The Former Yugoslav Republic Of - 0.07%
 
Poland - 0.04%
 
Australia & New Zealand 0.38% -
 
Australia - 0.38%
 
Japan 0.24% -
 
Japan - 0.24%
 
Middle East & Africa 0.19% -
 
Cote D'Ivoire - 0.08%
 
Morocco - 0.07%
 
Israel - 0.04%
 
South Africa - 0.00%
 
Developed Asia 0.16% -
 
Hong Kong - 0.11%
 
Singapore - 0.06%
 
Emerging Asia 0.15% -
 
Thailand - 0.09%
 
South Korea - 0.06%

Breakdown By Market Cap (%)

Large
 
 
0.23%
Medium
 
 
0.29%
Non-Classified
 
 
15.11%
Bonds
 
 
82.33%
Cash
 
 
2.05%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
14.05%
5Yr - 10Yr Maturity
 
 
35.56%
10Yr - 15Yr Maturity
 
 
6.45%
> 15Yr Maturity
 
 
26.27%
Cash And Equivalents
 
 
2.05%
Unknown Maturity
 
-9.84%
Other Asset Types
 
 
25.46%

Fixed Interest Quality Profile

AAA
 
 
20.32%
AA
 
 
2.06%
A
 
 
13.15%
BBB
 
 
28.90%
Sub-Investment Grade
 
 
9.25%
Unknown Quality
 
 
8.64%
Cash and Equivalents
 
 
2.05%
Other Asset Types
 
 
15.63%

Top 10 Holdings

Stock % Weight Sector Country
1 LONG GILT SEP 22 GBP Notional Cash Offset 8.20% Non-Classified Non-Classified
2 EURO-BUND SEP 22 EUR Notional Cash Offset 5.78% Non-Classified Non-Classified
3 UNITED STATES TREASURY 2.25% 15/11/2025 2.58% Bonds United States
4 UNITED STATES TREASURY 2.25% 15/11/2027 2.57% Bonds United States
5 Northern Trust The Sterling Fund Class E 2.48% Non-Classified Cash and Equivalents
6 UNITED STATES TREASURY 1.5% 30/11/2028 2.44% Bonds United States
7 UNITED STATES TREASURY 0.75% 31/03/2026 2.44% Bonds United States
8 UNITED STATES TREASURY 1% 31/07/2028 2.38% Bonds United States
9 UNITED STATES TREASURY 2.25% 15/05/2041 2.27% Bonds United States
10 UNITED STATES TREASURY 2.875% 15/08/2028 2.14% Bonds United States

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 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 BKTPHS2
Mex Code PUAABT
Isin Code GB00BKTPHS25
Citi Code QYPZ

Fund Charges

Annual Management Charge (AMC) 1.65%
Further Costs 0.00%
Yearly Total 1.65%

Aims and Benchmark

Aims Objective: The investment strategy of the fund is to purchase units in the M&G Optimal Income Fund - the underlying fund. Underlying Fund Objective: The fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the IA £ Strategic Bond Sector, over any five-year period. At least 50% of the fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade, unrated securities and Asset Backed Securities. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency. Other investments may include: • up to 20% of the fund in equities; and • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G). There are no credit quality restrictions applicable to the fund's investments. At least 80% of the fund is in sterling or hedged back to sterling. Derivatives may be used for investment purposes, efficient portfolio management and hedging.
Benchmark IA Sterling Strategic Bond sector
ABI Sector Sterling Strategic Bond

Ratings

FE Crown Crown Rating of 3

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 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 -
Beta -
Sharpe -
Standard Deviation -
Info Ratio -

Risk Factors

Risk Factor Yes / No
Charges to Capital Yes
Emerging Markets Yes
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 Yes
Performance Charges No
Derivative Exposure Yes
Offshore No
Income Eroding Capital Growth Yes
Umbrella Liabilities No
New Fund No
Solvency of Depository No
Solvency of Bond Issuers Yes
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).

Emerging Markets

The fund invests in emerging markets. Generally less well regulated than the UK. There is an increased chance of political and economic instability with less reliable custody, dealing and settlement arrangements. The market(s) can be less liquid. If a fund investing in markets is affected by currency exchange rates, the investment could either increase or decrease. These investments therefore carry more risk.

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.

Higher Risk

This fund is specifically aimed at sophisticated investors and is particularly high risk, because it concentrates on a region that may be exposed to unusual political or economic risks. You should only invest if you are comfortable with the specific risks pertaining to the fund in question. If you are not familiar with these you should ask us for a copy of the provider's key features and brochure.

Derivative Exposure

The fund invests in derivatives as part of its investment strategy, over and above their use for Efficient Portfolio Management (EPM). Investors should be aware that the use of these instruments can, under certain circumstances, increase the volatility and risk profile of the Fund beyond that expected of a fund that only invests in equities. The fund may also be exposed to the risk that the company issuing the derivative may not honour their obligations which in turn could lead to losses arising.

Income Eroding Capital Growth

The fund focuses on providing an income, which can reduce the prospects for capital growth, and in some cases the capital value may fall.

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.

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.

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 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.

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 product charges, or 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 net 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 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.

"Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.