Prudential M&G Global High Yield Bond S5 (Inc)

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% 3.5% -1.3% 5.5% -11.8%
Sector 0.3% 3.3% -1.0% 7.6% -9.3%
Rank 32/34 17/34 23/34 30/34 25/34
Quartile 4 2 3 4 3

Annualised performance

Annualised
3 Years to
31/07/22
5 Years to
31/07/22
10 Years to
31/07/22
Fund -2.8% -1.1% 1.8%
Sector -1.1% 0.0% 2.6%
Rank 30/34 30/34 28/31
Quartile 4 4 4

Top 10 Holdings

Stock % Weight
EURO-BOBL SEP 22 EUR Notional Cash Offset 5.38
Northern Trust The Sterling Fund Class E 4.42
UNITED STATES TREASURY 3.25% 30/06/2027 2.11
PETROLEOS MEXICANOS 6.5% 13/03/2027 1.42
FORD MOTOR CREDIT COMPANY LLC 4.95% 28/05/2027 1.21
FORD MOTOR COMPANY 9% 22/04/2025 1.13
LONG GILT SEP 22 GBP Notional Cash Offset 1.07
SOUTHWESTERN ENERGY CO 7.75% 01/10/2027 1.05
⅛% Treasury Gilt 2023 1.04
DT MIDSTREAM INC 4.375% 15/06/2031 0.89
Total 19.71

Fund Aims

Objective: The investment strategy of the fund is to purchase units in the M&G Global High Yield 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 that of the ICE BofAML Global High Yield Index (GBP Hedged) over any five-year period. At least 80% of the fund is invested, directly or indirectly through derivatives, in below investment grade corporate debt securities, These securities can be issued by companies from anywhere in the world, including Emerging Markets.

Other investments may include: • Asset-Backed Securities, and • other transferable securities, government bonds, 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. The fund aims to hedge any non-sterling assets back to sterling. Derivatives may be used for investment purposes, efficient portfolio management and hedging.

Fund Manager

Stefan Isaacs manager of the underlying fund for 11 years and 10 months

Photo of Stefan Isaacs Stefan Isaacs started at M&G in 2001 and was promoted to corporate bond dealer specialising in high yield bonds and euro denominated credit. He joined the fund management team in 2006 as an assistant fund manager covering high yield and European investment grade for M&G's fixed interest fund range. He was appointed fund manager of the M&G European Corporate Bond Fund in April 2007 and the M&G High Yield Corporate Bond Fund in October 2010. Stefan graduated from Manchester Metropolitan University with a degree in international business and French. James Tomlins joined M&G in 2011 and was appointed fund manager of the M&G European High Yield Bond Fund later that year. In January 2014, he became co-manager of the M&G High Yield Corporate Bond Fund after two years being deputy manager on the fund. James is a specialist in high yield credit with more than 10 years’ experience in this sector. He was previously an analyst and then a fund manager at Cazenove Capital Management. Before Cazenove, James was at KBC Alternative Investment Management and in the three years prior to that worked at Merrill Lynch Investment Managers. James is a CFA charterholder. He holds an MA in history and PgDip in economics from the University of Cambridge.

James Tomlins manager of the underlying fund for 7 years and 10 months

Photo of James Tomlins James Tomlins joined M&G in 2011 and was appointed fund manager of the M&G European High Yield Bond Fund later that year. In January 2014, he became co-manager of the M&G High Yield Corporate Bond Fund after two years being deputy manager on the fund. James is a specialist in high yield credit with more than 10 years’ experience in this sector. He was previously an analyst and then a fund manager at Cazenove Capital Management. Before Cazenove, James was at KBC Alternative Investment Management and in the three years prior to that worked at Merrill Lynch Investment Managers. James is a CFA charterholder. He holds an MA in history and PgDip in economics from the University of Cambridge.

Fund Overview

Bid (16/08/2022) 60.40
Offer n/a
Yield 4.77%
Fund size (30/06/2022) £6.92m
Underlying Fund size £1199.75m
Number of holdings 338
Launch date 25/04/2005

Fund Charges

Annual Management Charge (AMC) 1.80%
Further Costs 0.01%
Yearly Total 1.81%

Asset Allocation

pie chart
  International Bonds 72.16%
  Money Market 12.34%
  UK Corporate Bonds 10.56%
  Alternative Trading Strategies 3.56%
  UK Gilts 1.04%
  Cash and Equivalents 0.49%
  UK Equities 0.00%
  International Equities 0.00%
  Other Assets -0.15%
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.

The yield shown is the fund series pence per unit as an annualised percentage of the fund bid price at the time of distribution. The rate of growth of funds and any income from them cannot be guaranteed.

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 72.16%
  Money Market 12.34%
  UK Corporate Bonds 10.56%
  Alternative Trading Strategies 3.56%
  UK Gilts 1.04%
  Cash and Equivalents 0.49%
  UK Equities 0.00%
  International Equities 0.00%
  Other Assets -0.15%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 83.76% - - -
 
Cash and Equivalents 8.41% - - -
 
Non-Classified 4.27% - - -
 
Alternative Trading Strategies 3.56% - - -
 
Alternative Trading Strategies - 3.56% - -
 
Alternative Trading Strategies - - 3.56% -
 
Alternative Trading Strategies - - - 3.56%
 
Consumer Discretionary 0.00% - - -
 
Travel & Leisure - 0.00% - -
 
Travel & Leisure - - 0.00% -
 
Casinos & Gambling - - - 0.00%

Regional Allocation

pie chart
  North America 42.18%
  Developed Europe - Excl UK 24.60%
  Cash and Equivalents 12.83%
  UK 11.60%
  Non-Classified 4.10%
  South & Central America 3.56%
  Emerging Europe 0.51%
  Japan 0.30%
  Developed Asia 0.26%
  Emerging Asia 0.06%

Fixed Interest Currencies

pie chart
  US Dollar 49.17%
  Euro 27.27%
  Non-Fixed Interest Assets 15.75%
  Pound Sterling 7.33%
  Cash 0.49%

Regional Breakdown

Expand allCollapse all
Region Country
 
North America 42.18% -
 
United States - 41.34%
 
Canada - 0.67%
 
Bermuda - 0.16%
 
Developed Europe - Excl UK 24.60% -
 
Netherlands - 6.76%
 
France - 4.01%
 
Luxembourg - 3.07%
 
Germany - 2.87%
 
Italy - 2.10%
 
Ireland - 1.45%
 
Spain - 1.25%
 
Sweden - 0.91%
 
Finland - 0.71%
 
Belgium - 0.51%
 
Austria - 0.47%
 
Switzerland - 0.38%
 
Portugal - 0.12%
 
Cash and Equivalents 12.83% -
 
UK 11.60% -
 
United Kingdom - 11.60%
 
Non-Classified 4.10% -
 
South & Central America 3.56% -
 
Mexico - 2.87%
 
Brazil - 0.69%
 
Emerging Europe 0.51% -
 
Czech Republic - 0.36%
 
Poland - 0.14%
 
Japan 0.30% -
 
Japan - 0.30%
 
Developed Asia 0.26% -
 
Hong Kong - 0.15%
 
Singapore - 0.11%
 
Emerging Asia 0.06% -
 
Macau - 0.04%
 
China - 0.03%

Breakdown By Market Cap (%)

Non-Classified
 
 
7.83%
Bonds
 
 
83.76%
Cash
 
 
8.41%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
33.73%
5Yr - 10Yr Maturity
 
 
40.77%
10Yr - 15Yr Maturity
 
 
1.33%
> 15Yr Maturity
 
 
7.93%
Cash And Equivalents
 
 
8.41%
Unknown Maturity
 
 
4.27%
Other Asset Types
 
 
3.56%

Fixed Interest Quality Profile

AAA
 
 
0.63%
AA
 
 
1.04%
A
 
 
0.19%
BBB
 
 
3.66%
Sub-Investment Grade
 
 
56.43%
Unknown Quality
 
 
21.83%
Cash and Equivalents
 
 
8.41%
Other Asset Types
 
 
7.83%

Top 10 Holdings

Stock % Weight Sector Country
1 EURO-BOBL SEP 22 EUR Notional Cash Offset 5.38% Non-Classified Non-Classified
2 Northern Trust The Sterling Fund Class E 4.42% Non-Classified Cash and Equivalents
3 UNITED STATES TREASURY 3.25% 30/06/2027 2.11% Non-Classified Non-Classified
4 PETROLEOS MEXICANOS 6.5% 13/03/2027 1.42% Bonds Mexico
5 FORD MOTOR CREDIT COMPANY LLC 4.95% 28/05/2027 1.21% Non-Classified Non-Classified
6 FORD MOTOR COMPANY 9% 22/04/2025 1.13% Bonds United States
7 LONG GILT SEP 22 GBP Notional Cash Offset 1.07% Non-Classified Non-Classified
8 SOUTHWESTERN ENERGY CO 7.75% 01/10/2027 1.05% Bonds United States
9 ⅛% Treasury Gilt 2023 1.04% Bonds United Kingdom
10 DT MIDSTREAM INC 4.375% 15/06/2031 0.89% 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.

The yield shown is the fund series pence per unit as an annualised percentage of the fund bid price at the time of distribution. The rate of growth of funds and any income from them cannot be guaranteed.

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 B06LDR4
Mex Code PUMGV
Isin Code GB00B06LDR41
Citi Code WU20

Fund Charges

Annual Management Charge (AMC) 1.80%
Further Costs 0.01%
Yearly Total 1.81%

Aims and Benchmark

Aims Objective: The investment strategy of the fund is to purchase units in the M&G Global High Yield 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 that of the ICE BofAML Global High Yield Index (GBP Hedged) over any five-year period. At least 80% of the fund is invested, directly or indirectly through derivatives, in below investment grade corporate debt securities, These securities can be issued by companies from anywhere in the world, including Emerging Markets. Other investments may include: • Asset-Backed Securities, and • other transferable securities, government bonds, 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. The fund aims to hedge any non-sterling assets back to sterling. Derivatives may be used for investment purposes, efficient portfolio management and hedging.
Benchmark IA Sterling High Yield sector average
ABI Sector Sterling High Yield

Ratings

FE Crown Crown Rating of 3

Distribution Income Details

Distribution Rate as at 16/05/2022 1.40 pence per unit
Distribution Yield as at 16/05/2022 4.77%

Source: Prudential

The yield shown is the fund series pence per unit as an annualised percentage of the fund bid price at the time of distribution. The rate of growth of funds and any income from them cannot be guaranteed.

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.

The yield shown is the fund series pence per unit as an annualised percentage of the fund bid price at the time of distribution. The rate of growth of funds and any income from them cannot be guaranteed.

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 -1.76
Beta 1.06
Sharpe -0.01
Standard Deviation 10.53
Info Ratio -0.97

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 No
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 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.

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.

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.

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.

The yield shown is the fund series pence per unit as an annualised percentage of the fund bid price at the time of distribution. The rate of growth of funds and any income from them cannot be guaranteed.

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.