Prudential Long Dated Corporate Bond S3
Performance
Discrete performance - to latest available quarter end
| 30/06/20 to 30/06/21 |
30/06/21 to 30/06/22 |
30/06/22 to 30/06/23 |
30/06/23 to 30/06/24 |
30/06/24 to 30/06/25 |
|
|---|---|---|---|---|---|
| Fund | -1.0% | -24.2% | -12.0% | 7.5% | 0.4% |
| Benchmark | 0.0% | -25.1% | -13.6% | 8.2% | 0.2% |
Performance - to latest available quarter end
| Quarter | Annualised | |||
|---|---|---|---|---|
| 2 2025 |
3 Years to 30/06/25 |
5 Years to 30/06/25 |
10 Years to 30/06/25 |
|
| Fund | 3.2% | -1.7% | -6.5% | 1.5% |
| Benchmark | 3.3% | -2.2% | -6.9% | 0.8% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| 3¼% Treasury Gilt 2044 | 8.62 |
| 1½% Treasury Gilt 2047 | 3.11 |
| ELECTRICITE DE FRANCE SA MTN RegS | 3.07 |
| 4⅜% Treasury Gilt 2054 | 2.80 |
| THFC FUNDING NO 3 PLC MTN RegS | 1.75 |
| ENEL FINANCE INTERNATIONAL SA MTN RegS | 1.39 |
| GDF SUEZ MTN RegS | 1.39 |
| MOTABILITY OPERATIONS GROUP PLC RegS | 1.30 |
| AT&T INC | 1.27 |
| ANGLIAN WATER SERVICES FINANCING P RegS | 1.18 |
| Total | 25.88 |
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 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.
n/a
Fund Overview
| Daily price (20/08/2025) | 265.80 |
| Fund size (30/06/2025) | £106.84m |
| Underlying Fund size | £287.04m |
| Number of holdings | 207 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 01/07/2003 |
Asset Allocation
| UK Corporate Bonds | 57.65% | |
| International Bonds | 32.72% | |
| UK Gilts | 15.29% | |
| Alternative Trading Strategies | 0.00% | |
| Cash and Equivalents | -6.02% | |
| Other Assets | 0.36% |
Commentary
Performance as at Q2 2025 - The second quarter of 2025 was marked by heightened market volatility following President Trump’s tariff announcements on 2 April, referred to as ‘Liberation Day’. Despite concerns over trade disruption, inflationary effects have yet to materialise. US core inflation, which excludes food and energy, remained steady at 2.8% year-on-year in April and May.
Central banks responded with caution. The European Central Bank cut interest rates in May and June, ending the quarter at 2.15%, down from 2.65%, following revised inflation forecasts. The Federal Reserve held rates at 4.25%–4.5% for the fourth consecutive meeting, despite political pressure for cuts. The Bank of England reduced its base rate from 4.5% to 4.25% in May and maintained that level in June, citing signs of a softening labour market.
The Bank of Japan kept its rate unchanged at 0.5%, the highest since 2008, reflecting a cautious stance amid global uncertainty. In the UK, inflation remained relatively elevated, easing slightly from 3.5% in April to 3.4% in May.
UK government bonds (gilts) performed well, outperforming US Treasuries and German bunds in local currency terms. The yield on the 10-year gilt fell from 4.7% to 4.5%. However, Chancellor Rachel Reeves’ announcement of £2 trillion in future public spending raised concerns about fiscal sustainability, briefly pushing gilt yields higher. Short and medium-dated gilts outperformed longer maturities, while inflation-linked gilts lagged.
European bond markets benefited from US-driven volatility, as investors sought alternative assets. Italian government bonds (BTPs) were standout performers, returning 2.9% in euros. Greek and Spanish bonds also saw positive returns, supported by stabilising fiscal profiles. However, Europe faces potential growth headwinds from renewed US tariffs, including a 10% universal rate and additional levies on automobiles, steel, and aluminium, set to resume in July. Bunds rose 1.2% but were outperformed by BTPs, French OATs, and Spanish bonds.
In the US, government bonds posted modest gains despite considerable political and fiscal uncertainty. US Treasuries rose 0.8%, with the 10-year yield ending the quarter at 4.2%. The quarter began with a sharp sell-off following the tariff announcements, with the 30-year yield briefly surpassing 5% before easing after a 90-day tariff pause. Moody’s downgraded the US credit rating due to concerns over the fiscal outlook, which was further strained by the proposed $3.3 trillion tax bill. Despite these pressures, the US economy remained resilient, and inflationary effects from tariffs have yet to emerge.
Corporate bond markets experienced volatility early in the quarter, with spreads widening sharply before tightening by the end of June. Investment grade spreads in EUR and USD markets peaked at 125bps and 121bps respectively, before rallying to 91bps and 86bps. GBP spreads followed a similar pattern, ending the quarter at 96bps after peaking at 130bps. This tightening supported strong total returns across IG markets: EUR IG returned 1.65%, US IG 2.02%, and UK IG 3.07%.
Government bonds also rallied across regions, with returns of 1.31% in Europe, 1.06% in the US, and 2.22% in the UK. High yield spreads also tightened across all regions. US HY narrowed by 35bps to 296bps, while European HY tightened by 16bps to 310bps. This led to strong quarterly returns, with US HY up 3.51% and European HY up 1.91%. Year-to-date, US HY returned 4.55% compared to 2.75% for European HY.
Looking ahead, the potential for further geopolitical or financial shocks remains. In this environment, a patient and selective approach to fixed income investment is considered the most prudent strategy to identify opportunities while managing risk.
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 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 intended for the advisers 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. You should refer to your client's 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 infomation or make any warranties regarding results from its usage.
Asset Allocation
| UK Corporate Bonds | 57.65% | |
| International Bonds | 32.72% | |
| UK Gilts | 15.29% | |
| Alternative Trading Strategies | 0.00% | |
| Cash and Equivalents | -6.02% | |
| Other Assets | 0.36% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 105.66% | - | - | - | |
| Non-Classified | 0.36% | - | - | - | |
| Alternative Trading Strategies | 0.00% | - | - | - | |
| Alternative Trading Strategies | - | 0.00% | - | - | |
| Alternative Trading Strategies | - | - | 0.00% | - | |
| Alternative Trading Strategies | - | - | - | 0.00% | |
| Cash and Equivalents | -6.02% | - | - | - | |
Regional Allocation
| UK | 72.94% | |
| Developed Europe - Excl UK | 16.59% | |
| North America | 9.66% | |
| Non-Classified | 3.08% | |
| South & Central America | 1.71% | |
| Australia & New Zealand | 1.07% | |
| Japan | 0.96% | |
| Cash and Equivalents | -6.02% |
Fixed Interest Currencies
| Pound Sterling | 101.89% | |
| US Dollar | 3.08% | |
| Euro | 0.69% | |
| Non-Fixed Interest Assets | 0.36% | |
| Cash | -6.02% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 72.94% | - | |
United Kingdom
|
- | 72.94% | |
| Developed Europe - Excl UK | 16.59% | - | |
France
|
- | 11.03% | |
Netherlands
|
- | 2.00% | |
Luxembourg
|
- | 1.48% | |
Denmark
|
- | 1.07% | |
Germany
|
- | 0.59% | |
Austria
|
- | 0.16% | |
Norway
|
- | 0.16% | |
Italy
|
- | 0.10% | |
| North America | 9.66% | - | |
United States
|
- | 9.40% | |
Canada
|
- | 0.26% | |
| Non-Classified | 3.08% | - | |
| South & Central America | 1.71% | - | |
Mexico
|
- | 1.71% | |
| Australia & New Zealand | 1.07% | - | |
Australia
|
- | 1.07% | |
| Japan | 0.96% | - | |
Japan
|
- | 0.96% | |
| Cash and Equivalents | -6.02% | - | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
0.65% |
| 5Yr - 10Yr Maturity |
|
0.63% |
| 10Yr - 15Yr Maturity |
|
7.49% |
| > 15Yr Maturity |
|
96.90% |
| Cash And Equivalents |
|
-6.02% |
| Unknown Maturity |
|
0.36% |
Fixed Interest Quality Profile
| AAA |
|
1.61% |
| AA |
|
26.13% |
| A |
|
31.80% |
| BBB |
|
31.26% |
| Sub-Investment Grade |
|
1.65% |
| Unknown Quality |
|
13.21% |
| Cash and Equivalents |
|
-6.02% |
| Other Asset Types |
|
0.36% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | 3¼% Treasury Gilt 2044 | 8.62% | Bonds | United Kingdom |
| 2 | 1½% Treasury Gilt 2047 | 3.11% | Bonds | United Kingdom |
| 3 | ELECTRICITE DE FRANCE SA MTN RegS | 3.07% | Bonds | France |
| 4 | 4⅜% Treasury Gilt 2054 | 2.80% | Bonds | United Kingdom |
| 5 | THFC FUNDING NO 3 PLC MTN RegS | 1.75% | Bonds | United Kingdom |
| 6 | ENEL FINANCE INTERNATIONAL SA MTN RegS | 1.39% | Bonds | Luxembourg |
| 7 | GDF SUEZ MTN RegS | 1.39% | Bonds | France |
| 8 | MOTABILITY OPERATIONS GROUP PLC RegS | 1.30% | Bonds | United Kingdom |
| 9 | AT&T INC | 1.27% | Bonds | United States |
| 10 | ANGLIAN WATER SERVICES FINANCING P RegS | 1.18% | 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).
The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.
This factsheet is intended for the advisers 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. You should refer to your client's 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 infomation or make any warranties regarding results from its usage.
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 |
| ABI Sector | 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 intended for the advisers 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. You should refer to your client's 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 infomation or make any warranties regarding results from its usage.
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | 3.62 |
| Beta | 0.98 |
| Sharpe | -0.01 |
| Standard Deviation | 14.85 |
| Info Ratio | 1.14 |
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 | No |
| Umbrella Liabilities | No |
| New Fund | No |
| Solvency of Depository | Yes |
| Solvency of Bond Issuers | Yes |
| Ethical Restrictions | No |
| Liquidity | No |
| 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.
Solvency of Depository
The value of a cash or currency fund may be affected if any of the institutions with which cash is deposited becomes insolvent or experiences other financial difficulties.
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.
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 intended for the advisers 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. You should refer to your client's 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 infomation 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.
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 advisers 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. You should refer to your client's 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 infomation 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 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 intended for the advisers 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. You should refer to your client's 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 infomation 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.