Prudential Baillie Gifford UK Equity Core 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 13.6% 2.6% -11.2% 25.5% -12.0%
Benchmark 9.0% 0.6% -13.0% 21.5% 1.6%

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 -8.8% -0.6% 2.7% 7.4%
Benchmark -5.0% 2.4% 3.3% 6.9%

Top 10 Holdings

Stock % Weight
DIAGEO 4.66
ASTRAZENECA 4.60
BUNZL 4.17
RIO TINTO 3.90
ST JAMES'S PLACE 3.73
UNILEVER 3.36
LEGAL & GENERAL GROUP 3.24
INCHCAPE 3.01
PRUDENTIAL 2.91
RELX 2.90
Total 36.47

Fund Aims

Objective: The investment strategy of the fund is to purchase units in the Baillie Gifford UK Equity Core Fund - the underlying fund.

Underlying Fund Objective: The objective of that fund is to outperform (after deduction of costs) the FTSE All-Share Index by at least 1% per annum over rolling five-year periods. The underlying (Baillie Gifford) fund will invest at least 80% directly or indirectly in shares of UK companies, being those which are incorporated, domiciled or conduct a significant portion of their business in the UK. The underlying fund will be actively managed and may invest in UK companies of any size and in any sector. The indirect investment will be through collective investment schemes including those managed or operated by the Authorised Corporate Director (ACD) of the underlying fund. The underlying fund may also invest in companies which are listed, quoted or traded in the UK. To the extent that the underlying fund is not fully invested directly or indirectly in shares of such companies, it may also invest in other transferable securities of UK companies, deposits and cash. The underlying fund may not invest in or otherwise use derivatives.

Fund Manager

Iain McCombie manager of the underlying fund for 4 years and 7 months

Photo of Iain McCombie Iain is a founding member of the Global Stewardship Team and is the lead Iain is a founding member of the Global Stewardship Team and is the lead manager of our UK Core strategy. Most recently, Iain served as Chief of Investment Staff from 2013 to 2018 and became a Partner of the firm in 2005. He initially joined Baillie Gifford in 1994 and spent five years training as an Investment Manager in the US Equities Team before joining the UK Equity Team in 1999. Iain graduated MA in Accountancy from the University of Aberdeen and subsequently trained as a Chartered Accountant.

Fund Overview

Daily price (15/08/2022) 387.05
Fund size (30/06/2022) £8.30m
Underlying Fund size £244.39m
Number of holdings 115
Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan
Launch date 05/04/2004

Asset Allocation

pie chart
  UK Equities 97.95%
  Cash and Equivalents 1.55%
  International Equities 0.40%
  Investment Trusts 0.08%
  Other Assets 0.02%

Commentary

Performance as at Q1 2022 - The underlying fund UK holdings have encountered a run of poor share price performance over the past year, however, this is at odds with the strong operational growth the fund managers are seeing from these businesses. The fund managers are sticking to their investment philosophy and process and are confident that the portfolio is well-positioned for future growth.

Amongst the most notable detractors was the holding in the motor distributor, Inchcape. The fund managers have been asked by some clients to quantify the Russian exposure in light of the tragic events in Ukraine. The short answer is that the portfolio has no direct exposure but of course it is the indirect impacts that are the ones to watch. Within the portfolio, Inchcape earned about 5 per cent of profits in 2021 from its retail operations in Moscow, inflated in the year by the globally buoyant price of second-hand cars. Following the invasion of Ukraine, the company announced that it will look to ‘transition’ this operation although it is trying to do so in a way that looks after its roughly 1,500 employees there. A future write-off of the value of the business is inevitable (it is of some comfort that Inchcape had sold its retail operation in St Petersburg earlier in 2021) but the fact that it is trying to behave responsibly in difficult circumstances is a sign of a healthy corporate culture and importantly sends a strong message about its values to the rest of its forty or so country operations around the globe.

The animal genetics company Genus also detracted, as a severe cyclical downturn in the Chinese porcine market is affecting short-term profitability. However, the fund managers believe the current hiatus only re-enforces the long-term opportunity for Genus as it would provide a further powerful boost to the ongoing consolidation and industrialisation of the pig farming industry and the growth of large-scale producers. The fund managers believe company’s world-leading genetics and its substantial investments in building its Chinese supply chain over the last five years put in great position to exploit this favourable industry backdrop.

In terms of contributors, as you might except, it has been the portfolio’s more economically sensitive assets that have held up well this quarter. A good example is the mining business, BHP. The company recorded record annual profits, driven by soaring commodity prices as industrial activity returns to all regions of the world following pandemic-induced lockdowns. Iron ore, a core product used in steel production, was the largest contributor.

For similar reasons, the global metals and mining business, Rio Tinto was also a top contributor during the quarter. Looking out, the fund managers see a very healthy demand picture for iron ore as the need to rapidly scale up the renewable energy infrastructure will act as a structural tailwind for years, indeed decades, to come.

In difficult environments such as those the fund managers face today, where sentiment has moved against the holdings and the market’s time horizon has shortened, the fund managers have to remain steadfast in their long-term, bottom-up investment approach. They appreciate periods such as these can be challenging to relative performance, and they thank you for your ongoing support.

Source: Baillie Gifford

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.

Portfolio data accurate as at:

Asset Allocation

pie chart
  UK Equities 97.95%
  Cash and Equivalents 1.55%
  International Equities 0.40%
  Investment Trusts 0.08%
  Other Assets 0.02%

Equity Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Financials 25.69% - - -
 
Insurance - 12.50% - -
 
Life Insurance - - 7.29% -
 
Life Insurance - - - 7.29%
 
Non-life Insurance - - 5.21% -
 
Property & Casualty Insurance - - - 4.08%
 
Full Line Insurance - - - 1.14%
 
Financial Services - 10.16% - -
 
Investment Banking & Brokerage Services - - 10.08% -
 
Asset Managers & Custodians - - - 8.65%
 
Investment Services - - - 1.43%
 
Equity Investment Instruments - - 0.08% -
 
Equity Investment Instruments - - - 0.08%
 
Banks - 3.03% - -
 
Banks - - 3.03% -
 
Banks - - - 3.03%
 
Industrials 25.36% - - -
 
Industrial Goods & Services - 22.59% - -
 
Industrial Support Services - - 9.72% -
 
Professional Business Support Services - - - 6.38%
 
Business Training & Employment Agencies - - - 2.63%
 
Transaction Processing Services - - - 0.71%
 
General Industrials - - 5.22% -
 
Diversified Industrials - - - 5.22%
 
Industrial Transportation - - 2.41% -
 
Commercial Vehicle-Equipment Leasing - - - 2.23%
 
Marine Transportation - - - 0.18%
 
Electronic & Electrical Equipment - - 2.13% -
 
Electronic Equipment: Gauges & Meters - - - 2.03%
 
Electronic Equipment: Control & Filter - - - 0.05%
 
Electrical Components - - - 0.05%
 
Industrial Engineering - - 2.04% -
 
Machinery: Construction & Handling - - - 2.04%
 
Aerospace & Defence - - 1.06% -
 
Defense - - - 1.06%
 
Construction & Materials - 2.77% - -
 
Construction & Materials - - 2.77% -
 
Building Materials: Other - - - 2.26%
 
Engineering & Contracting Services - - - 0.51%
 
Consumer Discretionary 16.90% - - -
 
Consumer Products & Services - 6.67% - -
 
Household Goods & Home Construction - - 3.39% -
 
Home Construction - - - 3.30%
 
Household Furnishings - - - 0.09%
 
Personal Goods - - 1.96% -
 
Clothing & Accessories - - - 1.92%
 
Cosmetics - - - 0.04%
 
Leisure Goods - - 1.32% -
 
Toys - - - 0.93%
 
Electronic Entertainment - - - 0.29%
 
Consumer Electronics - - - 0.10%
 
Recreational Products - - - 0.01%
 
Media - 4.99% - -
 
Media - - 4.99% -
 
Publishing - - - 2.90%
 
Media Agencies - - - 2.09%
 
Retail - 3.98% - -
 
Retailers - - 3.98% -
 
Home Improvement Retailers - - - 2.36%
 
Diversified Retailers - - - 1.48%
 
Apparel Retailers - - - 0.08%
 
Specialty Retailers - - - 0.06%
 
Travel & Leisure - 1.23% - -
 
Travel & Leisure - - 1.23% -
 
Travel & Tourism - - - 1.23%
 
Automobiles & Parts - 0.03% - -
 
Automobiles & Parts - - 0.03% -
 
Automobiles - - - 0.03%
 
Health Care 9.15% - - -
 
Health Care - 9.15% - -
 
Pharmaceuticals & Biotechnology - - 9.05% -
 
Pharmaceuticals - - - 6.84%
 
Biotechnology - - - 2.21%
 
Medical Equipment & Services - - 0.08% -
 
Medical Equipment - - - 0.08%
 
Health Care Providers - - 0.03% -
 
Health Care Services - - - 0.03%
 
Consumer Staples 8.68% - - -
 
Food, Beverage & Tobacco - 4.79% - -
 
Beverages - - 4.73% -
 
Distillers & Vintners - - - 4.66%
 
Soft Drinks - - - 0.07%
 
Food Producers - - 0.06% -
 
Food Products - - - 0.06%
 
Personal Care, Drug & Grocery Stores - 3.89% - -
 
Personal Care, Drug & Grocery Stores - - 3.89% -
 
Personal Products - - - 3.36%
 
Food Retailers & Wholesalers - - - 0.53%
 
Basic Materials 6.05% - - -
 
Basic Resources - 5.05% - -
 
Industrial Metals & Mining - - 5.05% -
 
General Mining - - - 3.90%
 
Metal Fabricating - - - 1.15%
 
Chemicals - 1.00% - -
 
Chemicals - - 1.00% -
 
Specialty Chemicals - - - 1.00%
 
Technology 3.00% - - -
 
Technology - 3.00% - -
 
Software & Computer Services - - 3.00% -
 
Consumer Digital Services - - - 2.73%
 
Software - - - 0.17%
 
Computer Services - - - 0.09%
 
Real Estate 2.91% - - -
 
Real Estate - 2.91% - -
 
Real Estate Investment & Services - - 2.91% -
 
Real Estate Services - - - 2.40%
 
Real Estate Holding and Development - - - 0.52%
 
Cash and Equivalents 1.55% - - -
 
Energy 0.69% - - -
 
Energy - 0.69% - -
 
Non-Renewable Energy - - 0.64% -
 
Oil: Crude Producers - - - 0.64%
 
Renewable Energy - - 0.05% -
 
Alternative Fuels - - - 0.05%
 
Non-Classified 0.02% - - -

Regional Allocation

pie chart
  UK 97.95%
  Cash and Equivalents 1.55%
  Developed Europe - Excl UK 0.30%
  Non-Classified 0.10%
  North America 0.05%
  Developed Asia 0.05%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 97.95% -
 
United Kingdom - 97.95%
 
Cash and Equivalents 1.55% -
 
Developed Europe - Excl UK 0.30% -
 
Netherlands - 0.30%
 
Non-Classified 0.10% -
 
North America 0.05% -
 
United States - 0.05%
 
Developed Asia 0.05% -
 
Singapore - 0.05%

Breakdown By Market Cap (%)

Mega
 
 
26.87%
Large
 
 
25.92%
Medium
 
 
35.84%
Small
 
 
6.55%
Micro
 
 
0.72%
Non-Classified
 
 
2.55%
Cash
 
 
1.55%

Top 10 Holdings

Stock % Weight Sector Country
1 DIAGEO 4.66% Beverages United Kingdom
2 ASTRAZENECA 4.60% Pharmaceuticals & Biotechnology United Kingdom
3 BUNZL 4.17% General Industrials United Kingdom
4 RIO TINTO 3.90% Industrial Metals & Mining United Kingdom
5 ST JAMES'S PLACE 3.73% Investment Banking & Brokerage Services United Kingdom
6 UNILEVER 3.36% Personal Care, Drug & Grocery Stores United Kingdom
7 LEGAL & GENERAL GROUP 3.24% Life Insurance United Kingdom
8 INCHCAPE 3.01% Industrial Support Services United Kingdom
9 PRUDENTIAL 2.91% Life Insurance United Kingdom
10 RELX 2.90% Media United Kingdom

Dual Aspect Equity Analysis

UK Equities Int'l Equities UK Bonds Int'l Bonds UK Gilts Property Other Cash & Equiv Total
Technology 2.70% 0.30% - - - - - - 3.00%
Financials 25.61% - - - - - 0.08% - 25.69%
Real Estate 2.91% - - - - - - - 2.91%
Consumer Discretionary 16.84% 0.05% - - - - 0.02% - 16.92%
Consumer Staples 8.68% - - - - - - - 8.68%
Energy 0.69% - - - - - - - 0.69%
Health Care 9.15% - - - - - - - 9.15%
Industrials 25.31% 0.05% - - - - - - 25.36%
Basic Materials 6.05% - - - - - - - 6.05%
Cash and Equivalents - - - - - - - 1.55% 1.55%
Non-Classified - - - - - - - - -

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 3420188
Mex Code PUPAC
Isin Code GB0034201888
Citi Code P552

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 Baillie Gifford UK Equity Core Fund - the underlying fund. Underlying Fund Objective: The objective of that fund is to outperform (after deduction of costs) the FTSE All-Share Index by at least 1% per annum over rolling five-year periods. The underlying (Baillie Gifford) fund will invest at least 80% directly or indirectly in shares of UK companies, being those which are incorporated, domiciled or conduct a significant portion of their business in the UK. The underlying fund will be actively managed and may invest in UK companies of any size and in any sector. The indirect investment will be through collective investment schemes including those managed or operated by the Authorised Corporate Director (ACD) of the underlying fund. The underlying fund may also invest in companies which are listed, quoted or traded in the UK. To the extent that the underlying fund is not fully invested directly or indirectly in shares of such companies, it may also invest in other transferable securities of UK companies, deposits and cash. The underlying fund may not invest in or otherwise use derivatives.
Benchmark FTSE All-Share Index + 1%
ABI Sector UK All Companies

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.

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

Higher Risk

These are specialist equity funds that focus on set geographical regions or a particular type of share e.g. shares of smaller companies or those that conform to certain criteria.

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

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.