Prudential All Stocks Corporate Bond S3

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

Performance

Discrete performance - to latest available quarter end

31/03/19
to
31/03/20
31/03/20
to
31/03/21
31/03/21
to
31/03/22
31/03/22
to
31/03/23
31/03/23
to
31/03/24
Fund 3.9% 8.8% -4.6% -8.8% 6.4%
Benchmark 1.5% 7.0% -5.2% -10.2% 6.1%

Performance - to latest available quarter end

Quarter Annualised
1
2024
3 Years to
31/03/24
5 Years to
31/03/24
10 Years to
31/03/24
Fund 1.0% -2.6% 0.9% 3.4%
Benchmark 0.1% -3.3% -0.4% 2.5%

Top 10 Holdings

Stock % Weight
⅜% Treasury Gilt 2026 3.91
5% Treasury Stock 2025 3.57
⅛% Treasury Gilt 2026 3.29
4½% Treasury Gilt 2028 2.86
3¼% Treasury Gilt 2044 1.44
1¾% Treasury Gilt 2037 1.44
1½% Treasury Gilt 2026 1.41
LCR FINANCE PLC - GTD RegS 1.23
EUROPEAN INVESTMENT BANK 1.19
BARCLAYS PLC RegS 1.12
Total 21.45

Fund Aims

Objective: The investment strategy of the fund is to purchase units in the M&G PP All Stocks Corporate Bond Fund - the underlying fund.

Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds across the range of maturities. The fund is actively managed against its benchmark, the iBoxx sterling Non-Gilts Index. The fund may also hold UK government gilts and limited amounts of high yield and hedged non-sterling corporate bonds. Derivative instruments may be used for efficient portfolio fund management.

Performance Objective: To outperform the benchmark by 0.80% a year (before charges) on a rolling three year basis.

Fund Manager

Jamie Hamilton manager of the underlying fund for 23 years and 3 months

Photo of Jamie Hamilton Jamie Hamilton joined Prudential Group in 2001 as a fund manager in the fixed income team managing a range of institutional corporate bond funds. Prior to joining M&G, Jamie worked for Dresdner RCM Global Investors as a fixed income fund manager, managing corporate bond funds. Jamie graduated from Newcastle University with a degree in economics and is a chartered financial analyst (CFA) charterholder.

Fund Overview

Daily price (23/05/2024) 321.10
Fund size (30/04/2024) £28.05m
Underlying Fund size £1552.59m
Number of holdings 521
Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan
Launch date 06/04/2001

Asset Allocation

pie chart
  International Bonds 41.45%
  UK Corporate Bonds 29.61%
  UK Gilts 22.45%
  Cash and Equivalents 0.60%
  International Equities 0.00%
  UK Equities 0.00%
  Alternative Trading Strategies 0.00%
  Other Assets 5.89%

Commentary

Performance as at Q1 2024 - In the UK, inflation continues to be on a downward trajectory with the latest CPI figures at 3.4%, down from 4% as at the start of the year, levels which were last seen in 2021. The Bank of England held rates steady at 5.25% and with inflation levels remaining above the target of 2%, markets are now pricing in less rate cuts over the course of 2024 which saw Gilt yields increase across the curve. Higher borrowing cost have also impacted the UK housing sector, with house prices remaining flat and rent levels generally increasing as landlords look to pass on higher costs on to tenants. Sales in the retail sector proved to be stronger than expected and remained similar to that of January 2024 which is a positive sign for the UK economy despite being in a recession. Elsewhere in the UK, political uncertainty remains with Rishi Sunak continuing to face pressures from opposing parties and the public on setting a General Election date, which has to take place by the 28th of January 2025. During the first quarter, higher US inflation prints and more hawkish comments from the Federal Reserve combined with the positive growth data (US economy was shown to have grown at +3.4% in Q4 23), have provided a major boost to the S&P 500 (+10.6%), saw HY credit spreads tightening, and oil prices rising (Brent crude +13.6% on the quarter to $87.48/bbl). Eurozone inflation continued its downward trajectory, albeit wider reinflationary concerns saw the market price out between 70-100bps of interest rate cuts in 2024. The market is now pricing June ‘24 as the most likely timing for a first cut in the US, Europe and UK. US Treasuries (-1.0%), German Bunds (-1.4%), and UK Gilts (-1.7%) were all seen to struggle over the quarter as inflation remained persistent, and central banks pushed out the timing of rate cuts versus the start of the year. Despite the weaker period overall, March did see a more positive backdrop for sovereign bonds. Q1 saw Investment Grade (IG) new issuance at record levels and strong positive market sentiment drove credit spreads tighter across markets. Spreads on EUR, GBP and US IG corporates ended the quarter 113bps (-23bps), 114 (-20bps) and 94bps (-10bps) respectively, with high beta names, cyclicals and financials being the outperformers. However, given the scaling back of rate cut expectations government bond yields moved higher, leading to more muted total returns during the quarter with EUR, GBP and US IG corporates delivering +0.4%, +0.2% and -0.1% respectively (local ccy). All in yields remain historically high, offering a positive real yield for investors (EUR 3.6%, GBP 5.2%, USD 5.4%). Over Q1 2024, the credit market saw a continuation of strength. As a result, the manager continued to de-risk, reducing exposure to names which no longer offered sufficient compensation for the underlying risks, and re-deployed into cash, UK government bonds, and higher quality corporates. Separately, March also saw two significant milestones: (i) the Bank of Japan ending their negative interest rate policy, and (ii) the Swiss National Bank being the first G10 currency to cut rates this cycle, with a 25bp cut in their policy rate to 1.50%. High Yield (HY) credit fared similarly. Spread tightening (-38bps) helped the European HY credit market deliver gains of +1.7% over the quarter, with the shorter dated nature of the index negating the impact of higher rates. Most sectors delivered solid performance in March. Q1 was the busiest quarter for HY issuance in over 2 years, however, the pace moderated during March and is expected to continue along this trajectory going forward.

Source: M&G

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 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.

Portfolio data accurate as at:

Asset Allocation

pie chart
  International Bonds 41.45%
  UK Corporate Bonds 29.61%
  UK Gilts 22.45%
  Cash and Equivalents 0.60%
  International Equities 0.00%
  UK Equities 0.00%
  Alternative Trading Strategies 0.00%
  Other Assets 5.89%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 93.51% - - -
 
Non-Classified 5.89% - - -
 
Cash and Equivalents 0.60% - - -
 
Consumer Staples 0.00% - - -
 
Personal Care, Drug & Grocery Stores - 0.00% - -
 
Personal Care, Drug & Grocery Stores - - 0.00% -
 
Food Retailers & Wholesalers - - - 0.00%
 
Alternative Trading Strategies 0.00% - - -
 
Alternative Trading Strategies - 0.00% - -
 
Alternative Trading Strategies - - 0.00% -
 
Alternative Trading Strategies - - - 0.00%

Regional Allocation

pie chart
  UK 52.06%
  Developed Europe - Excl UK 21.46%
  North America 12.67%
  Non-Classified 12.05%
  Cash and Equivalents 0.60%
  Australia & New Zealand 0.49%
  South & Central America 0.29%
  Japan 0.21%
  Middle East & Africa 0.11%
  Developed Asia 0.06%

Fixed Interest Currencies

pie chart
  Pound Sterling 89.27%
  Non-Fixed Interest Assets 5.89%
  Euro 3.01%
  US Dollar 1.23%
  Cash 0.60%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 52.06% -
 
United Kingdom - 52.06%
 
Developed Europe - Excl UK 21.46% -
 
France - 7.64%
 
Netherlands - 4.80%
 
Luxembourg - 3.13%
 
Germany - 1.34%
 
Spain - 1.04%
 
Switzerland - 0.92%
 
Italy - 0.90%
 
Sweden - 0.79%
 
Denmark - 0.40%
 
Finland - 0.19%
 
Ireland - 0.16%
 
Iceland - 0.09%
 
Austria - 0.04%
 
Norway - 0.01%
 
North America 12.67% -
 
United States - 11.29%
 
Canada - 1.38%
 
Non-Classified 12.05% -
 
Cash and Equivalents 0.60% -
 
Australia & New Zealand 0.49% -
 
Australia - 0.49%
 
South & Central America 0.29% -
 
Mexico - 0.29%
 
Japan 0.21% -
 
Japan - 0.21%
 
Middle East & Africa 0.11% -
 
United Arab Emirates - 0.11%
 
Developed Asia 0.06% -
 
Hong Kong - 0.06%

Breakdown By Market Cap (%)

Non-Classified
 
 
5.89%
Bonds
 
 
93.51%
Cash
 
 
0.60%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
45.82%
5Yr - 10Yr Maturity
 
 
19.54%
10Yr - 15Yr Maturity
 
 
11.29%
> 15Yr Maturity
 
 
16.86%
Cash And Equivalents
 
 
0.60%
Unknown Maturity
 
 
5.89%

Fixed Interest Quality Profile

AAA
 
 
5.26%
AA
 
 
33.51%
A
 
 
20.33%
BBB
 
 
25.52%
Sub-Investment Grade
 
 
0.46%
Unknown Quality
 
 
8.42%
Cash and Equivalents
 
 
0.60%
Other Asset Types
 
 
5.89%

Top 10 Holdings

Stock % Weight Sector Country
1 ⅜% Treasury Gilt 2026 3.91% Bonds United Kingdom
2 5% Treasury Stock 2025 3.57% Bonds United Kingdom
3 ⅛% Treasury Gilt 2026 3.29% Bonds United Kingdom
4 4½% Treasury Gilt 2028 2.86% Bonds United Kingdom
5 3¼% Treasury Gilt 2044 1.44% Bonds United Kingdom
6 1¾% Treasury Gilt 2037 1.44% Bonds United Kingdom
7 1½% Treasury Gilt 2026 1.41% Bonds United Kingdom
8 LCR FINANCE PLC - GTD RegS 1.23% Bonds United Kingdom
9 EUROPEAN INVESTMENT BANK 1.19% Bonds Luxembourg
10 BARCLAYS PLC RegS 1.12% Non-Classified Non-Classified

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 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.

Identification Codes

Sedol Code 3168563
Mex Code PUCB
Isin Code GB0031685638
Citi Code P270

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 All Stocks Corporate Bond Fund - the underlying fund. Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds across the range of maturities. The fund is actively managed against its benchmark, the iBoxx sterling Non-Gilts Index. The fund may also hold UK government gilts and limited amounts of high yield and hedged non-sterling corporate bonds. Derivative instruments may be used for efficient portfolio fund management. Performance Objective: To outperform the benchmark by 0.80% a year (before charges) on a rolling three year basis.
Benchmark iBoxx Sterling Non-Gilts Index
Sector ABI Sterling Fixed Interest

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 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.

  • Higher Risk
  • Medium to Higher Risk
  • Medium Risk
  • Lower to Medium Risk
  • Lower Risk
  • Minimal Risk

Lower to Medium Risk

These funds may invest in corporate bonds or multi-asset strategies with a higher weighting in corporate bonds (and other comparable strategies).

Help

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

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 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.