Prudential Long Dated 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

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 1.0% 9.0% 17.0% -1.0% -24.2%
Benchmark 0.1% 9.6% 13.9% 0.0% -25.1%

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 -15.2% -4.2% -0.7% 4.6%
Benchmark -15.4% -5.2% -1.3% 3.7%

Top 10 Holdings

Stock % Weight
3¼% Treasury Gilt 2044 3.47
1½% Treasury Gilt 2047 3.44
ELECTRICITE DE FRANCE SA MTN RegS 2.91
1⅝% Treasury Gilt 2054 2.29
RESEAU FERRE DE FRANCE MTN RegS 1.86
THFC FUNDING NO 3 PLC MTN RegS 1.82
ENEL FINANCE INTERNATIONAL SA MTN RegS 1.69
GDF SUEZ MTN RegS 1.45
EON INTERNATIONAL FINANCE BV MTN RegS 1.42
THAMES WATER UTIL FIN MTN RegS 1.40
Total 21.74

Fund Aims

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

Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds with over 15 years to maturity. The fund is actively managed against its benchmark, the iBoxx sterling Over 15 Years 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 21 years and 6 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.

Mark Ellis manager of the underlying fund for 8 years and 5 months

Photo of Mark Ellis n/a

Fund Overview

Daily price (04/08/2022) 307.40
Fund size (30/06/2022) £126.71m
Underlying Fund size £0.00m
Number of holdings 228
Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan
Launch date 01/07/2003

Asset Allocation

pie chart
  UK Corporate Bonds 47.47%
  International Bonds 39.38%
  UK Gilts 9.89%
  Cash and Equivalents 0.23%
  Other Assets 3.03%

Commentary

Performance as at Q1 2022 - The first quarter was dominated by sharply higher inflation in the developed economies, and since February by the Russian invasion of Ukraine. Whilst the news coming out of the Ukraine is deeply concerning, and has caused the largest humanitarian crisis since the second world war, the economic impact of the crisis will be equally significant given both Russia and Ukraine are embedded in the global economy. The effects are already being felt, with significant commodity and energy price rises during the quarter, and through further supply chain disruption and sanctions, all of which have fuelled existing supply side inflationary pressures, resulting in US CPI inflation at a 40 year high of 7.9%, and Eurozone inflation at 5.9%, the highest since the start of the single currency.

Against this backdrop, government bonds and risk assets such as equities and corporate bonds, have all performed poorly during the quarter, with only commodity prices and related assets delivering positive returns. The inflationary environment prompted official rate increases by the US Federal Reserve and Bank of England during the quarter, and the ECB announcing rates will rise this year, contrary to their prior 'no change' guidance. Significant uncertainty and volatility remains around the likely path and magnitude of the tightening cycle, with even Federal Reserve Board members future expectations for 2022 and 2023 having very significant divergence, reflecting both the desire to curtail inflation and to support growth. Recession risks remain high, and are reflected by the inverted US Treasury yield curve.

Market expectations of future official rate increases changed substantially during the quarter, both in the magnitude and timing of the expected rate rises, with multiple increases now anticipated across major markets throughout the course of this year, alongside a faster run-down of asset purchase programmes.

A combination of the conflict, inflation and higher official rates drove government bond yields higher over the quarter, with US 10 year Treasury yields higher by 0.8%, and UK and Eurozone 10 year yields higher by 0.6%. Credit spreads, already weakening early in the quarter, were further impacted by the Russian invasion and moved wider; however the wholesale capitulation of risk evident at the start of the Covid crisis was not in evidence.

Credit spreads widened to 2018 levels, before buyers emerged, prompting risk premia to retrace a significant proportion of the sell-off by quarter end, and in a few instances individual bonds traded back to levels seen before the Ukraine crisis began. Despite this, broad investment grade and high yield credit spreads still ended the quarter wider. Taken together, the impact of rising bond yields and credit spreads across the maturity spectrum saw most government and credit indices fall in value by between -4% and -8% during the quarter, with longer duration markets like the UK among the worst performers.

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
  UK Corporate Bonds 47.47%
  International Bonds 39.38%
  UK Gilts 9.89%
  Cash and Equivalents 0.23%
  Other Assets 3.03%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 96.74% - - -
 
Non-Classified 3.03% - - -
 
Cash and Equivalents 0.23% - - -

Regional Allocation

pie chart
  UK 57.36%
  Developed Europe - Excl UK 19.43%
  North America 13.05%
  Non-Classified 6.93%
  South & Central America 1.85%
  Australia & New Zealand 0.95%
  Cash and Equivalents 0.23%
  Japan 0.10%
  Emerging Europe 0.10%

Fixed Interest Currencies

pie chart
  Pound Sterling 90.56%
  US Dollar 4.36%
  Non-Fixed Interest Assets 3.03%
  Euro 1.82%
  Cash 0.23%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 57.36% -
 
United Kingdom - 57.36%
 
Developed Europe - Excl UK 19.43% -
 
France - 8.22%
 
Netherlands - 5.69%
 
Luxembourg - 1.89%
 
Sweden - 1.20%
 
Belgium - 0.70%
 
Italy - 0.64%
 
Ireland - 0.36%
 
Denmark - 0.26%
 
Germany - 0.24%
 
Finland - 0.23%
 
North America 13.05% -
 
United States - 12.71%
 
Canada - 0.34%
 
Non-Classified 6.93% -
 
South & Central America 1.85% -
 
Mexico - 1.85%
 
Australia & New Zealand 0.95% -
 
Australia - 0.95%
 
Cash and Equivalents 0.23% -
 
Japan 0.10% -
 
Japan - 0.10%
 
Emerging Europe 0.10% -
 
Czech Republic - 0.10%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
0.51%
5Yr - 10Yr Maturity
 
 
1.42%
10Yr - 15Yr Maturity
 
 
3.61%
> 15Yr Maturity
 
 
91.21%
Cash And Equivalents
 
 
0.23%
Unknown Maturity
 
 
3.03%

Fixed Interest Quality Profile

AAA
 
 
2.42%
AA
 
 
17.25%
A
 
 
28.70%
BBB
 
 
39.15%
Sub-Investment Grade
 
 
1.14%
Unknown Quality
 
 
8.08%
Cash and Equivalents
 
 
0.23%
Other Asset Types
 
 
3.03%

Top 10 Holdings

Stock % Weight Sector Country
1 3¼% Treasury Gilt 2044 3.47% Bonds United Kingdom
2 1½% Treasury Gilt 2047 3.44% Bonds United Kingdom
3 ELECTRICITE DE FRANCE SA MTN RegS 2.91% Bonds France
4 1⅝% Treasury Gilt 2054 2.29% Bonds United Kingdom
5 RESEAU FERRE DE FRANCE MTN RegS 1.86% Bonds France
6 THFC FUNDING NO 3 PLC MTN RegS 1.82% Bonds United Kingdom
7 ENEL FINANCE INTERNATIONAL SA MTN RegS 1.69% Bonds Luxembourg
8 GDF SUEZ MTN RegS 1.45% Bonds France
9 EON INTERNATIONAL FINANCE BV MTN RegS 1.42% Bonds Netherlands
10 THAMES WATER UTIL FIN MTN RegS 1.40% Bonds United Kingdom

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).

Identification Codes

Sedol Code 3373204
Mex Code PUMLDC
Isin Code GB0033732040
Citi Code P551

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 Long-Dated Corporate Bond Fund - the underlying fund. Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds with over 15 years to maturity. The fund is actively managed against its benchmark, the iBoxx sterling Over 15 Years 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 Over 15 Years Non-Gilts Index
Sector ABI Sterling Long Bond

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

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.

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.