Prudential M&G Strategic Corporate Bond S2

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 -0.7% 4.7% 2.2% 3.4% -10.1%
Sector -0.7% 5.1% 4.4% 1.7% -11.2%
Rank 124/148 119/149 148/152 21/153 57/153
Quartile 4 4 4 1 2

Annualised performance

Annualised
3 Years to
31/07/22
5 Years to
31/07/22
10 Years to
31/07/22
Fund -1.7% -0.3% 1.8%
Sector -2.0% -0.3% 2.0%
Rank 100/152 125/148 110/121
Quartile 3 4 4

Top 10 Holdings

Stock % Weight
LONG GILT SEP 22 GBP 9.79
US ULTRA T-BOND SEP 22 USD Notional Cash Offset 3.97
SWP: OIS 1.568700 29-NOV-2051 USD Notional Cash Offset 2.57
SCDS: (BATSLN) EUR Notional Cash Offset 2.02
MEXICO (UNITED MEXICAN STATES) (GOVERNMENT) 5.625% 19/03/2114 1.75
IMPERIAL BRANDS FINANCE PLC 4.875% 07/06/2032 1.71
AXA SA 5.625% 16/01/2054 1.59
SHELL INTERNATIONAL FINANCE BV 1.75% 10/09/2052 1.49
LEGAL & GEN GRP PLC 5.5% 27/06/2064 1.40
KRAFT HEINZ FOODS CO 4.125% 01/07/2027 1.29
Total 27.56

Fund Aims

Objective: The investment strategy of the fund is to purchase units in the M&G Strategic Corporate Bond 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 £ Corporate Bond Sector, over any five-year period. At least 70% of the fund is invested, directly or indirectly through derivatives, in investment grade corporate debt securities including investment-grade Asset-Backed Securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency.

Other investments may include: • below investment grade and unrated corporate debt securities; • debt securities issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns and supranational bodies; • below investment grade and unrated Asset-Backed Securities; and • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G).

Investments in Asset-Backed Securities are limited to 20% of the fund. The fund aims to hedge any non-sterling assets to sterling. Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Fund Manager

Richard Woolnough manager of the underlying fund for 18 years and 5 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.

Ben Lord manager of the underlying fund for 2 years and 7 months

Photo of Ben Lord Ben Lord joined M&G in 2007 and was appointed fund manager of the M&G Global Corporate Bond Fund from launch in September 2013. He is also fund manager of the M&G UK Inflation Linked Corporate Bond Fund and deputy manager of the M&G European Inflation Linked Corporate Bond Fund, the M&G Strategic Corporate Bond Fund, the M&G Corporate Bond Fund and the M&G Short Dated Corporate Bond Fund. Ben previously worked at Gordian Knot as a credit analyst covering global financial institutions. He obtained an MA (Hons) from the University of Edinburgh and is a CFA charterholder.

Fund Overview

Bid (12/08/2022) 172.70
Offer (12/08/2022) 181.80
Fund size (30/06/2022) £9.36m
Underlying Fund size £1280.96m
Number of holdings 319
Launch date 03/08/2007

Fund Charges

Annual Management Charge (AMC) 1.20%
Further Costs 0.01%
Yearly Total 1.21%

Asset Allocation

pie chart
  International Bonds 43.93%
  UK Corporate Bonds 35.46%
  Cash and Equivalents 3.46%
  International Equities 0.00%
  Money Market -0.76%
  Alternative Trading Strategies -1.70%
  Other Assets 19.61%
Portfolio data accurate as at: 30/06/22

Important Information

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 43.93%
  UK Corporate Bonds 35.46%
  Cash and Equivalents 3.46%
  International Equities 0.00%
  Money Market -0.76%
  Alternative Trading Strategies -1.70%
  Other Assets 19.61%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 79.40% - - -
 
Non-Classified 19.61% - - -
 
Cash and Equivalents 2.70% - - -
 
Consumer Discretionary 0.00% - - -
 
Travel & Leisure - 0.00% - -
 
Travel & Leisure - - 0.00% -
 
Casinos & Gambling - - - 0.00%
 
Alternative Trading Strategies -1.70% - - -
 
Alternative Trading Strategies - -1.70% - -
 
Alternative Trading Strategies - - -1.70% -
 
Alternative Trading Strategies - - - -1.70%

Regional Allocation

pie chart
  UK 35.46%
  Developed Europe - Excl UK 22.11%
  Non-Classified 21.10%
  North America 14.50%
  Cash and Equivalents 2.70%
  South & Central America 2.09%
  Australia & New Zealand 0.93%
  Developed Asia 0.91%
  Japan 0.21%

Fixed Interest Currencies

pie chart
  Pound Sterling 66.60%
  Non-Fixed Interest Assets 21.57%
  US Dollar 12.32%
  Euro 4.44%
  Cash -0.97%
  Unrecognised -3.97%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 35.46% -
 
United Kingdom - 35.46%
 
Developed Europe - Excl UK 22.11% -
 
France - 8.75%
 
Netherlands - 5.01%
 
Spain - 1.83%
 
Italy - 1.22%
 
Germany - 1.06%
 
Ireland - 0.86%
 
Sweden - 0.68%
 
Finland - 0.59%
 
Switzerland - 0.55%
 
Norway - 0.45%
 
Luxembourg - 0.44%
 
Denmark - 0.36%
 
Belgium - 0.32%
 
Non-Classified 21.10% -
 
North America 14.50% -
 
United States - 14.50%
 
Cash and Equivalents 2.70% -
 
South & Central America 2.09% -
 
Mexico - 2.09%
 
Australia & New Zealand 0.93% -
 
Australia - 0.93%
 
Developed Asia 0.91% -
 
Hong Kong - 0.91%
 
Japan 0.21% -
 
Japan - 0.21%

Breakdown By Market Cap (%)

Non-Classified
 
 
17.91%
Bonds
 
 
79.40%
Cash
 
 
2.70%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
10.20%
5Yr - 10Yr Maturity
 
 
33.23%
10Yr - 15Yr Maturity
 
 
8.97%
> 15Yr Maturity
 
 
27.00%
Cash And Equivalents
 
 
2.70%
Unknown Maturity
 
 
19.61%
Other Asset Types
 
-1.70%

Fixed Interest Quality Profile

AAA
 
-1.48%
AA
 
 
3.53%
A
 
 
22.39%
BBB
 
 
47.24%
Sub-Investment Grade
 
 
1.87%
Unknown Quality
 
 
5.86%
Cash and Equivalents
 
 
2.70%
Other Asset Types
 
 
17.91%

Top 10 Holdings

Stock % Weight Sector Country
1 LONG GILT SEP 22 GBP 9.79% Non-Classified Non-Classified
2 US ULTRA T-BOND SEP 22 USD Notional Cash Offset 3.97% Non-Classified Non-Classified
3 SWP: OIS 1.568700 29-NOV-2051 USD Notional Cash Offset 2.57% Non-Classified Non-Classified
4 SCDS: (BATSLN) EUR Notional Cash Offset 2.02% Non-Classified Non-Classified
5 MEXICO (UNITED MEXICAN STATES) (GOVERNMENT) 5.625% 19/03/2114 1.75% Bonds Mexico
6 IMPERIAL BRANDS FINANCE PLC 4.875% 07/06/2032 1.71% Bonds United Kingdom
7 AXA SA 5.625% 16/01/2054 1.59% Bonds France
8 SHELL INTERNATIONAL FINANCE BV 1.75% 10/09/2052 1.49% Bonds Netherlands
9 LEGAL & GEN GRP PLC 5.5% 27/06/2064 1.40% Bonds United Kingdom
10 KRAFT HEINZ FOODS CO 4.125% 01/07/2027 1.29% Bonds United States

Important Information

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 B1YVQD0
Mex Code SBN
Isin Code GB00B1YVQD07
Citi Code AKA7

Fund Charges

Annual Management Charge (AMC) 1.20%
Further Costs 0.01%
Yearly Total 1.21%

Aims and Benchmark

Aims Objective: The investment strategy of the fund is to purchase units in the M&G Strategic Corporate Bond 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 £ Corporate Bond Sector, over any five-year period. At least 70% of the fund is invested, directly or indirectly through derivatives, in investment grade corporate debt securities including investment-grade Asset-Backed Securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency. Other investments may include: • below investment grade and unrated corporate debt securities; • debt securities issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns and supranational bodies; • below investment grade and unrated Asset-Backed Securities; and • other transferable securities, cash, and near cash, directly or via collective investment schemes (including funds managed by M&G). Investments in Asset-Backed Securities are limited to 20% of the fund. The fund aims to hedge any non-sterling assets to sterling. Derivatives may be used for investment purposes, efficient portfolio management and hedging.
Benchmark IA Sterling Corporate Bond sector
Sector ABI Sterling Corporate Bond

Ratings

FE Crown Crown Rating of 1

Important Information

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 0.41
Beta 1.09
Sharpe 0.00
Standard Deviation 7.23
Info Ratio 0.08

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 Yes
Value of Investments Yes
Investments Long Term Yes
Property No
Exchange Rate Yes
Higher Risk No
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).

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.

Geared Investments

The fund focuses on geared investments. Funds which focus on geared investments such as warrants or options carry a higher degree of risk than other equity investments because of the risk of the underlying investments. It is possible that the fund may suffer sudden and large falls in value so that the short fall on cancellation, or the loss of the realisation on the investment at any time after the investor has bought the contract, could be very high and could even equal the amount invested, in which case you would get nothing back.

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.

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

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

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.