Prudential Index-Linked S3
Performance
Discrete performance - to latest available quarter end
| 30/06/17 to 30/06/18 |
30/06/18 to 30/06/19 |
30/06/19 to 30/06/20 |
30/06/20 to 30/06/21 |
30/06/21 to 30/06/22 |
|
|---|---|---|---|---|---|
| Fund | 2.7% | 8.9% | 11.9% | -3.0% | -17.7% |
| Benchmark | 2.0% | 9.1% | 11.9% | -4.4% | -19.1% |
Performance - to latest available quarter end
| Quarter | Annualised | |||
|---|---|---|---|---|
| 2 2022 |
3 Years to 30/06/22 |
5 Years to 30/06/22 |
10 Years to 30/06/22 |
|
| Fund | -19.8% | -3.7% | 0.0% | 4.8% |
| Benchmark | -19.8% | -4.7% | -0.7% | 4.1% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| 1¼% Index-linked Treasury Gilt 2027 | 20.20 |
| ⅜% Index-linked Treasury Gilt 2062 | 13.88 |
| ⅛% Index-Linked Treasury Gilt 2056 | 13.71 |
| ¾% Index-linked Treasury Gilt 2034 | 12.70 |
| ¾% Index-linked Treasury Gilt 2047 | 9.98 |
| ⅛% Index-linked Treasury Gilt 2048 | 7.05 |
| 1⅛% Index-linked Treasury Gilt 2037 | 5.39 |
| ⅛% Index-linked Treasury Gilt 2028 | 3.67 |
| UK I/L GILT RegS | 3.64 |
| ORSTED A/S RegS | 3.11 |
| Total | 93.36 |
Fund Aims
Objective: The investment strategy of the fund is to purchase units in the M&G PP Index-Linked Fund - the underlying fund.
Underlying Fund Objective: The fund invests mainly in UK Government index-linked gilts, typically with over five years to maturity. The fund is actively managed against its benchmark, the FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index. The fund can also invest in corporate bonds, overseas government bonds and fixed interest gilts. Exposure to short-term exchange rate movements from any overseas holdings is mitigated by hedging.
Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis.
Fund Manager
Miles joined M&G in January 2009 as a senior portfolio manager specialising in Government bond and macro fixed income mandates. Miles worked briefly as an accountant and a trader on the LIFFE floor before joining the investment management industry in 1996. He spent the next eight years of his career managing both Government and corporate bond portfolios for Alliance Capital. Miles joined Morley in 2004 with a brief to specialise in Government bond portfolios. Miles graduated from Cambridge University in 1993 with a BA Hons in Economics.
Fund Overview
| Daily price (04/08/2022) | 416.40 |
| Fund size (30/06/2022) | £41.64m |
| Underlying Fund size | £0.00m |
| Number of holdings | 13 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 06/04/2001 |
Asset Allocation
| UK Gilts | 90.26% | |
| International Bonds | 3.11% | |
| UK Corporate Bonds | 2.67% | |
| Cash and Equivalents | 0.31% | |
| Other Assets | 3.64% |
Commentary
Performance as at Q1 2022 - During the quarter, the fund manager sold 10yr index linked gilts into 20yr index linked gilts. Inflation expectations are extremely elevated resulting in dislocations in the curve. Valuations quickly moved back to more sensible levels and the position was closed at a profit to the fund.
The funds illiquid credit holding was favourably marked over the quarter resulting in a positive contribution to performance.
During the quarter the manager tactically sold long dated index linked bonds into cash which turned a relatively quick profit and was subsequently closed.
The manager bought 25/30 year index linked gilts versus shorter dated and ultras. The 30yr sector had cheapened up and gave the manager an opportunity to move away from the ultra-part of the curve. The DMO (Debt Management Office) will be bringing further 2073 issuance to the market which should put pressure on the sector to cheapen.
Source: M&G
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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
Source of portfolio data: Broadridge. Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of fund charges and further costs, but take no account of any Annual Management Charge paid for by the deduction of units. Charges and further costs may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with gross income reinvested. The value of your investment can go down as well as up so you might get back less than you put in.
This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Asset Allocation
| UK Gilts | 90.26% | |
| International Bonds | 3.11% | |
| UK Corporate Bonds | 2.67% | |
| Cash and Equivalents | 0.31% | |
| Other Assets | 3.64% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 96.04% | - | - | - | |
| Non-Classified | 3.64% | - | - | - | |
| Cash and Equivalents | 0.31% | - | - | - | |
Regional Allocation
| UK | 92.93% | |
| Non-Classified | 3.64% | |
| Developed Europe - Excl UK | 3.11% | |
| Cash and Equivalents | 0.31% |
Fixed Interest Currencies
| Pound Sterling | 96.04% | |
| Non-Fixed Interest Assets | 3.64% | |
| Cash | 0.31% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 92.93% | - | |
United Kingdom
|
- | 92.93% | |
| Non-Classified | 3.64% | - | |
| Developed Europe - Excl UK | 3.11% | - | |
Denmark
|
- | 3.11% | |
| Cash and Equivalents | 0.31% | - | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
2.77% |
| 5Yr - 10Yr Maturity |
|
23.88% |
| 10Yr - 15Yr Maturity |
|
15.81% |
| > 15Yr Maturity |
|
53.58% |
| Cash And Equivalents |
|
0.31% |
| Unknown Maturity |
|
3.64% |
Fixed Interest Quality Profile
| AA |
|
92.93% |
| BBB |
|
3.11% |
| Cash and Equivalents |
|
0.31% |
| Other Asset Types |
|
3.64% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | 1¼% Index-linked Treasury Gilt 2027 | 20.20% | Bonds | United Kingdom |
| 2 | ⅜% Index-linked Treasury Gilt 2062 | 13.88% | Bonds | United Kingdom |
| 3 | ⅛% Index-Linked Treasury Gilt 2056 | 13.71% | Bonds | United Kingdom |
| 4 | ¾% Index-linked Treasury Gilt 2034 | 12.70% | Bonds | United Kingdom |
| 5 | ¾% Index-linked Treasury Gilt 2047 | 9.98% | Bonds | United Kingdom |
| 6 | ⅛% Index-linked Treasury Gilt 2048 | 7.05% | Bonds | United Kingdom |
| 7 | 1⅛% Index-linked Treasury Gilt 2037 | 5.39% | Bonds | United Kingdom |
| 8 | ⅛% Index-linked Treasury Gilt 2028 | 3.67% | Bonds | United Kingdom |
| 9 | UK I/L GILT RegS | 3.64% | Non-Classified | Non-Classified |
| 10 | ORSTED A/S RegS | 3.11% | Bonds | Denmark |
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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
Identification Codes
| Sedol Code | 3168604 |
| Mex Code | PUIL |
| Isin Code | GB0031686040 |
| Citi Code | P275 |
Fund Charges
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
Aims and Benchmark
| Aims | Objective: The investment strategy of the fund is to purchase units in the M&G PP Index-Linked Fund - the underlying fund. Underlying Fund Objective: The fund invests mainly in UK Government index-linked gilts, typically with over five years to maturity. The fund is actively managed against its benchmark, the FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index. The fund can also invest in corporate bonds, overseas government bonds and fixed interest gilts. Exposure to short-term exchange rate movements from any overseas holdings is mitigated by hedging. Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis. |
| Benchmark | FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index |
| Sector | ABI UK Index-linked Gilts |
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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
Charges and further costs may vary in the future and may be higher than they are now.
This factsheet is for information purposes only. If there is information or terminology included that you would like to discuss, then please contact an adviser. Investors should refer to their 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.
These risk ratings have been developed by Prudential to help provide an indication of a fund’s potential level of risk and reward based on the type of assets which may be held by the fund. Other companies may use different descriptions and as such these risk ratings should not be considered as generic across the fund management industry.
We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a material change in the fund's level of risk, for example due to a significant change to the assets held by the fund or in the way the fund is managed, we will provide information on the new risk rating. We recommend that you make sure you understand the risk rating of any fund before you invest.
You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser.
Medium Risk
These funds may invest in multi-asset strategies with a higher weighting in equities (or with significant derivative use), while funds investing mainly in property, high yield or government bonds (such as UK Gilts) are also in this category.
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Important Information
This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this 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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of fund charges and further costs, but take no account of any Annual Management Charge paid for by the deduction of units. Charges and further costs may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with gross income reinvested. The value of your investment can go down as well as up so you might get back less than you put in.
This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Prudential is a trading name of Prudential Pensions Limited. Prudential Pensions Limited is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.