PIA M&G Episode Allocation Ser B

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 2.1% 1.6% -8.4% 13.7% -3.6%
Sector 2.0% 5.1% -2.4% 8.9% -5.1%
Rank 121/212 181/233 219/243 43/260 95/275
Quartile 3 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 0.2% 0.8% 4.5%
Sector 0.3% 1.6% 3.9%
Rank 121/243 137/212 57/141
Quartile 2 3 2

Top 10 Holdings

Stock % Weight
UNITED STATES TREASURY 0% 13/10/2022 11.17
MEXICO (UNITED MEXICAN STATES) (GO 4.42
SOUTH AFRICA (REPUBLIC OF) 3.03
UNITED STATES TREASURY 0% 08/09/2022 3.03
Northern Trust The Sterling Fund Class E 2.60
XTrackers Xtrackers DAX UCITS ETF ETF [Xetra] 2.52
TURKEY (REPUBLIC OF) 2.00
BRAZIL FEDERATIVE REPUBLIC OF (GOVERNMENT) 10% 01/01/2023 1.90
XTrackers Xtrackers MSCI Indonesia Swap UCITS ETF 1.08
XTrackers Xtrackers MSCI Taiwan UCITS ETF ETF [LSE] 0.98
Total 32.74

Fund Aims

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

Underlying Fund Objective: The fund aims to deliver a total return (the combination of capital growth and income) of at least 5% per annum above the Sterling Overnight Index Average (SONIA), before any charges are taken, over any five year period. There is no guarantee that the fund will achieve a positive return over five years, or any other period, and investors may not get back the original amount they invested. It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 30% of the fund exposed to sterling and a minimum of 60% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Fund Manager

Craig Moran manager of the underlying fund for 11 years and 6 months

Photo of Craig Moran Craig Moran joined M&G in 2005 as a performance and risk analyst. He was appointed deputy fund manager of the M&G Managed Fund and the M&G Global Dynamic Allocation Fund in January 2011. Previously, he was fund manager assistant to the multi asset team for three years, and in 2010 became an investment analyst in that team. Craig has a bachelor of business from Queensland University of Technology and a masters in applied finance and investments from the Financial Services Institute of Australasia. He is a CFA charterholder.

Stuart Canning manager of the underlying fund for 2 years and 9 months

Photo of Stuart Canning Stuart Canning has worked with the multi asset team for twelve years and a research analyst since 2015. In those twelve years Stuart has worked closely across the various funds managed the team, and particularly closely with Tony Finding on the M&G Episode Allocation Fund. As well as providing input to investment decision making, Stuart has worked extensively on the marketing material of the M&G Episode Allocation fund to launch the proposition in the institutional space (as a competitor to ‘Diversified growth’ strategies). Stuart also represents the investment team in direct client and prospect meetings for this and other funds. Stuart has also been responsible for driving the written marketing material for the team, having written extensively for the Cayman-based Episode fund for over a decade and leading the team’s blog. Stuart is a Chartered Financial Analyst and has a degree in English and History from the University of York.

Tony Finding manager of the underlying fund for 11 years and 6 months

Photo of Tony Finding Tony Finding joined PPM (now M&G) in 1997 as an economist. Subsequently, he took responsibility for the generation of views on yield curve and foreign exchange trading opportunities. In 2001, Tony developed his expertise in credit and exotic fixed interest securities by spending time seconded to Prudential's US-based investment management team. Tony has been in his current role as a member of the multi asset team since 1999. In January 2011, Tony was appointed co-manager of the M&G Cautious Multi Asset Fund and the M&G Dynamic Allocation Fund. He has a BSc in economics from the LSE and is also a CFA charterholder.

Juan Nevado manager of the underlying fund for 11 years and 7 months

Photo of Juan Nevado Juan Nevado joined PPM (now M&G) in 1988 and has been working as part of the Multi Asset team led by Dave Fishwick since 1999. In January 2011, Juan was appointed co-manager of the M&G Episode Balanced Fund and the M&G Dynamic Allocation Fund. In November 2013, he was also appointed deputy manager of the M&G Income Allocation Fund upon its launch. Prior to joining M&G, Juan worked as a bond economist at the Bank of Montreal, and before that, as an economist for the Commodities Research Unit, a private business consultancy specialising in macro/micro research on commodities markets. Juan has a BSc in economics from the LSE and an MA in economics from Warwick University.

Fund Overview

Bid (12/08/2022) 3.02
Offer (12/08/2022) 3.18
Fund size (30/06/2022) £3.19m
Underlying Fund size £283.78m
Number of holdings 3917
Launch date 09/04/2003

Fund Charges

Annual Management Charge (AMC) 1.30%
Further Costs 0.00%
Yearly Total 1.30%

Asset Allocation

pie chart
  International Bonds 34.04%
  Cash and Equivalents 12.70%
  International Equities 9.45%
  Property 6.84%
  UK Equities 5.08%
  Money Market 2.74%
  Alternative Trading Strategies 1.47%
  Commodities 1.44%
  UK Corporate Bonds 0.82%
  Other Assets 25.43%
Portfolio data accurate as at: 30/06/22

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 the fund's currency of denomination 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 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 34.04%
  Cash and Equivalents 12.70%
  International Equities 9.45%
  Property 6.84%
  UK Equities 5.08%
  Money Market 2.74%
  Alternative Trading Strategies 1.47%
  Commodities 1.44%
  UK Corporate Bonds 0.82%
  Other Assets 25.43%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 34.88% - - -
 
Non-Classified 32.71% - - -
 
Non-Classified - 26.32% - -
 
Non-Classified - - 26.32% -
 
Non-Classified - - - 26.32%
 
Cash and Equivalents 12.72% - - -
 
Property 6.34% - - -
 
Property - 6.34% - -
 
Property - - 6.34% -
 
Property - - - 6.34%
 
Financials 5.16% - - -
 
Banks - 4.19% - -
 
Banks - - 4.19% -
 
Banks - - - 4.19%
 
Financial Services - 0.62% - -
 
Investment Banking & Brokerage Services - - 0.62% -
 
Investment Services - - - 0.48%
 
Asset Managers & Custodians - - - 0.14%
 
Insurance - 0.35% - -
 
Non-life Insurance - - 0.34% -
 
Property & Casualty Insurance - - - 0.23%
 
Full Line Insurance - - - 0.10%
 
Insurance Brokers - - - 0.01%
 
Life Insurance - - 0.01% -
 
Life Insurance - - - 0.01%
 
Alternative Trading Strategies 1.47% - - -
 
Alternative Trading Strategies - 1.47% - -
 
Alternative Trading Strategies - - 1.47% -
 
Alternative Trading Strategies - - - 1.47%
 
Commodities 1.44% - - -
 
Commodities - 1.44% - -
 
Commodities - - 1.44% -
 
Commodities - - - 1.44%
 
Industrials 0.96% - - -
 
Industrial Goods & Services - 0.75% - -
 
Industrial Support Services - - 0.58% -
 
Transaction Processing Services - - - 0.47%
 
Professional Business Support Services - - - 0.09%
 
Industrial Suppliers - - - 0.02%
 
General Industrials - - 0.14% -
 
Diversified Industrials - - - 0.09%
 
Plastics - - - 0.03%
 
Containers & Packaging - - - 0.02%
 
Electronic & Electrical Equipment - - 0.01% -
 
Electrical Components - - - 0.01%
 
Aerospace & Defence - - 0.01% -
 
Defense - - - 0.01%
 
Industrial Engineering - - 0.01% -
 
Machinery: Industrial - - - 0.01%
 
Industrial Transportation - - 0.00% -
 
Transportation Services - - - 0.00%
 
Construction & Materials - 0.21% - -
 
Construction & Materials - - 0.21% -
 
Construction - - - 0.14%
 
Engineering & Contracting Services - - - 0.06%
 
Basic Materials 0.79% - - -
 
Basic Resources - 0.66% - -
 
Industrial Metals & Mining - - 0.62% -
 
General Mining - - - 0.45%
 
Copper - - - 0.10%
 
Nonferrous Metals - - - 0.07%
 
Precious Metals & Mining - - 0.04% -
 
Gold Mining - - - 0.04%
 
Chemicals - 0.13% - -
 
Chemicals - - 0.13% -
 
Chemicals: Diversified - - - 0.08%
 
Specialty Chemicals - - - 0.05%
 
Consumer Discretionary 0.73% - - -
 
Media - 0.28% - -
 
Media - - 0.28% -
 
Media Agencies - - - 0.15%
 
Publishing - - - 0.08%
 
Radio & TV Broadcasters - - - 0.06%
 
Consumer Products & Services - 0.18% - -
 
Consumer Services - - 0.15% -
 
Vending & Catering Service - - - 0.15%
 
Funeral Parlors & Cemetery - - - 0.00%
 
Personal Goods - - 0.03% -
 
Footwear - - - 0.02%
 
Luxury Items - - - 0.01%
 
Clothing & Accessories - - - 0.01%
 
Travel & Leisure - 0.16% - -
 
Travel & Leisure - - 0.16% -
 
Travel & Tourism - - - 0.09%
 
Airlines - - - 0.03%
 
Hotels & Motels - - - 0.03%
 
Restaurants & Bars - - - 0.01%
 
Casinos & Gambling - - - 0.00%
 
Retail - 0.10% - -
 
Retailers - - 0.10% -
 
Diversified Retailers - - - 0.06%
 
Specialty Retailers - - - 0.03%
 
Home Improvement Retailers - - - 0.01%
 
Real Estate 0.65% - - -
 
Real Estate - 0.65% - -
 
Real Estate Investment Trusts - - 0.65% -
 
Residential REITs - - - 0.18%
 
Industrial REITs - - - 0.13%
 
Diversified REITs - - - 0.12%
 
Office REITs - - - 0.08%
 
Retail REITs - - - 0.07%
 
Other Specialty REITs - - - 0.06%
 
Energy 0.59% - - -
 
Energy - 0.59% - -
 
Non-Renewable Energy - - 0.59% -
 
Integrated Oil & Gas - - - 0.45%
 
Oil: Crude Producers - - - 0.10%
 
Pipelines - - - 0.04%
 
Coal - - - 0.00%
 
Oil Equipment & Services - - - 0.00%
 
Health Care 0.54% - - -
 
Health Care - 0.54% - -
 
Pharmaceuticals & Biotechnology - - 0.48% -
 
Pharmaceuticals - - - 0.28%
 
Biotechnology - - - 0.20%
 
Medical Equipment & Services - - 0.04% -
 
Medical Equipment - - - 0.04%
 
Health Care Providers - - 0.01% -
 
Health Care Management Services - - - 0.01%
 
Consumer Staples 0.39% - - -
 
Food, Beverage & Tobacco - 0.27% - -
 
Food Producers - - 0.19% -
 
Food Products - - - 0.16%
 
Farming, Fishing, Ranching & Plantations - - - 0.03%
 
Tobacco - - 0.05% -
 
Tobacco - - - 0.05%
 
Beverages - - 0.03% -
 
Soft Drinks - - - 0.02%
 
Distillers & Vintners - - - 0.01%
 
Personal Care, Drug & Grocery Stores - 0.12% - -
 
Personal Care, Drug & Grocery Stores - - 0.12% -
 
Personal Products - - - 0.12%
 
Technology 0.32% - - -
 
Technology - 0.32% - -
 
Software & Computer Services - - 0.24% -
 
Software - - - 0.16%
 
Consumer Digital Services - - - 0.07%
 
Computer Services - - - 0.00%
 
Technology Hardware & Equipment - - 0.08% -
 
Semiconductors - - - 0.06%
 
Production Technology Equipment - - - 0.03%
 
Utilities 0.19% - - -
 
Utilities - 0.19% - -
 
Gas, Water & Multi-utilities - - 0.18% -
 
Multi-Utilities - - - 0.18%
 
Electricity - - 0.01% -
 
Conventional Electricity - - - 0.01%
 
Telecommunications 0.12% - - -
 
Telecommunications - 0.12% - -
 
Telecommunications Service Providers - - 0.12% -
 
Telecommunications Services - - - 0.12%

Regional Allocation

pie chart
  Non-Classified 26.99%
  North America 18.57%
  Cash and Equivalents 15.44%
  South & Central America 8.27%
  Property 6.84%
  Developed Europe - Excl UK 6.39%
  UK 5.92%
  Middle East & Africa 4.19%
  Emerging Asia 3.98%
  Other Regions 3.41%

Fixed Interest Currencies

pie chart
  Non-Fixed Interest Assets 60.06%
  US Dollar 10.93%
  Unrecognised 7.79%
  Cash 5.06%
  Mexican Peso 4.78%
  Rand 3.35%
  Other Currencies 8.04%

Regional Breakdown

Expand allCollapse all
Region Country
 
Non-Classified 26.99% -
 
North America 18.57% -
 
United States - 18.25%
 
Canada - 0.31%
 
Bermuda - 0.00%
 
Cash and Equivalents 15.44% -
 
South & Central America 8.27% -
 
Mexico - 4.95%
 
Brazil - 2.34%
 
Colombia - 0.27%
 
Peru - 0.24%
 
Chile - 0.22%
 
Dominican Republic - 0.06%
 
Uruguay - 0.05%
 
Ecuador - 0.04%
 
Argentina - 0.03%
 
Jamaica - 0.02%
 
Costa Rica - 0.01%
 
Paraguay - 0.01%
 
Cayman Islands - 0.01%
 
Guatemala - 0.00%
 
El Salvador - 0.00%
 
Trinidad and Tobago - 0.00%
 
Bolivia - 0.00%
 
Venezuela - 0.00%
 
Property 6.84% -
 
Developed Europe - Excl UK 6.39% -
 
Germany - 2.91%
 
Luxembourg - 1.62%
 
Ireland - 0.54%
 
Netherlands - 0.43%
 
France - 0.32%
 
Italy - 0.18%
 
Spain - 0.09%
 
Switzerland - 0.05%
 
Sweden - 0.05%
 
Belgium - 0.05%
 
Austria - 0.04%
 
Finland - 0.04%
 
Denmark - 0.03%
 
Portugal - 0.03%
 
Iceland - 0.02%
 
Norway - 0.00%
 
UK 5.92% -
 
United Kingdom - 5.92%
 
Middle East & Africa 4.19% -
 
South Africa - 3.41%
 
Egypt - 0.21%
 
Qatar - 0.10%
 
Saudi Arabia - 0.10%
 
United Arab Emirates - 0.09%
 
Oman - 0.08%
 
Nigeria - 0.04%
 
Ghana - 0.03%
 
Angola - 0.02%
 
Kenya - 0.02%
 
Kuwait - 0.02%
 
Jordan - 0.02%
 
Zambia - 0.01%
 
Iraq - 0.01%
 
Senegal - 0.01%
 
Morocco - 0.01%
 
Cote D'Ivoire - 0.00%
 
Gabon - 0.00%
 
Tunisia - 0.00%
 
Ethiopia - 0.00%
 
Lebanon - 0.00%
 
Israel - 0.00%
 
Emerging Asia 3.98% -
 
Indonesia - 1.63%
 
Taiwan - 1.00%
 
China - 0.44%
 
Malaysia - 0.39%
 
Thailand - 0.32%
 
Philippines - 0.09%
 
Kazakhstan - 0.05%
 
Azerbaijan - 0.02%
 
Pakistan - 0.02%
 
India - 0.02%
 
Sri Lanka - 0.01%
 
Viet Nam - 0.00%
 
Macau - 0.00%
 
Emerging Europe 3.14% -
 
Turkey - 2.23%
 
Poland - 0.26%
 
Czech Republic - 0.22%
 
Hungary - 0.21%
 
Romania - 0.20%
 
Ukraine - 0.02%
 
Croatia - 0.01%
 
Serbia - 0.00%
 
Australia & New Zealand 0.20% -
 
Australia - 0.20%
 
Developed Asia 0.04% -
 
Hong Kong - 0.04%
 
Singapore - 0.00%
 
Japan 0.03% -
 
Japan - 0.03%

Breakdown By Market Cap (%)

Mega
 
 
6.41%
Large
 
 
0.92%
Medium
 
 
1.31%
Small
 
 
1.22%
Micro
 
 
0.29%
Non-Classified
 
 
42.25%
Bonds
 
 
34.88%
Cash
 
 
12.72%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
10.48%
5Yr - 10Yr Maturity
 
 
6.58%
10Yr - 15Yr Maturity
 
 
3.70%
> 15Yr Maturity
 
 
14.12%
Cash And Equivalents
 
 
12.72%
Unknown Maturity
 
 
6.39%
Other Asset Types
 
 
46.01%

Fixed Interest Quality Profile

AAA
 
 
8.10%
AA
 
 
0.12%
A
 
 
0.66%
BBB
 
 
6.63%
Sub-Investment Grade
 
 
11.75%
Unknown Quality
 
 
7.64%
Cash and Equivalents
 
 
12.72%
Other Asset Types
 
 
52.40%

Top 10 Holdings

Stock % Weight Sector Country
1 UNITED STATES TREASURY 0% 13/10/2022 11.17% Non-Classified Non-Classified
2 MEXICO (UNITED MEXICAN STATES) (GO 4.42% Bonds Mexico
3 SOUTH AFRICA (REPUBLIC OF) 3.03% Bonds South Africa
4 UNITED STATES TREASURY 0% 08/09/2022 3.03% Bonds United States
5 Northern Trust The Sterling Fund Class E 2.60% Non-Classified Cash and Equivalents
6 XTrackers Xtrackers DAX UCITS ETF ETF [Xetra] 2.52% Non-Classified Germany
7 TURKEY (REPUBLIC OF) 2.00% Bonds Turkey
8 BRAZIL FEDERATIVE REPUBLIC OF (GOVERNMENT) 10% 01/01/2023 1.90% Bonds Brazil
9 XTrackers Xtrackers MSCI Indonesia Swap UCITS ETF 1.08% Non-Classified Indonesia
10 XTrackers Xtrackers MSCI Taiwan UCITS ETF ETF [LSE] 0.98% Non-Classified Taiwan

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 3283080
Mex Code SBMGCC
Isin Code IE0032830808
Citi Code S780

Fund Charges

Annual Management Charge (AMC) 1.30%
Further Costs 0.00%
Yearly Total 1.30%

Aims and Benchmark

Aims Objective: The investment strategy of the fund is to purchase units in the M&G Episode Allocation Fund - the underlying fund. Underlying Fund Objective: The fund aims to deliver a total return (the combination of capital growth and income) of at least 5% per annum above the Sterling Overnight Index Average (SONIA), before any charges are taken, over any five year period. There is no guarantee that the fund will achieve a positive return over five years, or any other period, and investors may not get back the original amount they invested. It is a multi-asset fund that invests across a range of asset classes, including equities, fixed income securities, convertibles, cash and near cash. Exposure to these assets may be gained either directly or indirectly via collective investment schemes or derivatives. The fund may also invest indirectly via collective investment schemes or derivatives in other asset classes such as property and gold. The currency exposure of the fund will be actively managed, seeking to enhance returns, with a minimum of 30% of the fund exposed to sterling and a minimum of 60% in developed market currencies (including sterling). Derivatives may be used for investment purposes, efficient portfolio management and hedging.
Benchmark SONIA + 5%
Sector OI Mixed Investment 20-60% Shares

Ratings

FE Crown Crown Rating of 1

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 -0.15
Beta 1.19
Sharpe 0.00
Standard Deviation 12.13
Info Ratio -0.06

Risk Factors

Risk Factor Yes / No
Charges to Capital Yes
Emerging Markets Yes
Concentrated Portfolio No
Smaller Companies Yes
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 Yes
Offshore No
Income Eroding Capital Growth Yes
Umbrella Liabilities Yes
New Fund No
Solvency of Depository No
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).

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.

Smaller Companies

The fund invests in smaller companies. Smaller companies shares can be more volatile and less liquid than larger company shares, so smaller companies funds can 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.

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.

Umbrella Liabilities

If the liabilities of one fund were to exceed its assets, the other funds within the scheme might have to transfer across money to cover the liabilities.

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 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 the fund's currency of denomination 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 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.

The registered office of Prudential International is in Ireland at Montague House, Adelaide Road, Dublin 2. Prudential International is a marketing name of Prudential International Assurance plc, a life assurance company operating from Ireland. Registration No. 209956. Prudential International Assurance plc is authorised and regulated by the Central Bank of Ireland and in the context of its UK regulated activities only, is deemed authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. Prudential International is part of the same corporate group as The Prudential Assurance Company Limited. Both The Prudential Assurance Company Limited and Prudential International are direct and indirect subsidiaries respectively of M&G plc, a company incorporated in the United Kingdom. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.