Prudential Index-Linked Passive S3
Performance
Discrete performance - to latest available quarter end
| 30/09/19 to 30/09/20 |
30/09/20 to 30/09/21 |
30/09/21 to 30/09/22 |
30/09/22 to 30/09/23 |
30/09/23 to 30/09/24 |
|
|---|---|---|---|---|---|
| Fund | 0.2% | 0.6% | -32.1% | -13.1% | 7.2% |
| Benchmark | 0.4% | 0.2% | -32.0% | -13.2% | 7.3% |
Performance - to latest available quarter end
| Quarter | Annualised | |||
|---|---|---|---|---|
| 3 2024 |
3 Years to 30/09/24 |
5 Years to 30/09/24 |
10 Years to 30/09/24 |
|
| Fund | 1.5% | -14.2% | -8.6% | 0.6% |
| Benchmark | 1.7% | -14.1% | -8.6% | 0.5% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| 1¼% Index-linked Treasury Gilt 2032 | 6.35 |
| 1⅛% Index-linked Treasury Gilt 2037 | 5.80 |
| ¾% Index-linked Treasury Gilt 2034 | 5.54 |
| ⅝% Index-linked Treasury Gilt 2040 | 5.27 |
| 2% Index-linked Treasury Stock 2035 | 5.06 |
| ⅝% Index-linked Treasury Gilt 2042 | 4.66 |
| ⅛% Index-linked Treasury Gilt 2044 | 4.48 |
| 1¼% Index-linked Treasury Gilt 2055 | 4.43 |
| ⅛% Index-linked Treasury Gilt 2036 | 4.32 |
| ¾% Index-linked Treasury Gilt 2047 | 4.27 |
| Total | 50.17 |
Fund Aims
Objective: The investment strategy of the fund is to purchase units in the M&G PP Index-Linked Passive Fund - the underlying fund.
Underlying Fund Objective: The fund invests in UK Government index-linked gilts with over five years to maturity. The fund is passively managed against its benchmark, the iBoxx UK Gilt Inflation-Linked Over 5 Years Index. Tracking this index is achieved by fully replicating the stocks in the Index.
Performance Objective: To match the performance of the benchmark as closely as possible.
Fund Manager
Robert joined M&G in 2007 as a fund managers’ assistant, supporting our institutional portfolio management team. He was promoted to Assistant Fund Manager in January 2008. Prior to M&G, Robert worked in fund accounting for Cambridge Place Investment Management, a hedge fund boutique. Robert graduated from the University of Pietermaritzburg in South Africa with an honours degree in Finance and Economics. Robert is a CFA charterholder.
Fund Overview
| Daily price (19/12/2024) | 256.80 |
| Fund size (31/10/2024) | £122.09m |
| Underlying Fund size | £140.54m |
| Number of holdings | 28 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 06/04/2001 |
Asset Allocation
| UK Gilts | 96.96% | |
| Cash and Equivalents | 0.25% | |
| Other Assets | 2.79% |
Commentary
Performance as at Q3 2024 - The price of UK index-linked government bonds (index-linked gilts) rose by 1.5% in the third quarter of 2024 and underperformed conventional gilts which rose by 2.4% as inflationary pressures eased and the Bank of England (BoE) finally cut interest rates. The rise in index-linked gilts was mainly driven by the fall in gilt yields over the three months as gilt prices rose (bond yields and prices move in opposite directions). The yield on the 10-year UK gilt fell to 4.0%, from 4.2% at the end of June. Meanwhile UK five-year breakevens fell slightly from 3.6% at the end of June to 3.5% at the end of September. The UK's Consumer Price Index (CPI) inflation rate held steady at 2.2% in July and August, just above the Bank of England's (BoE) 2% target. The BoE reduced interest rates by 25 basis points to 5% in August as inflationary pressures had "eased enough", according to BoE Governor Andrew Bailey. However, in September, the central bank held interest rates steady on concerns over wage growth. As widely expected, the general election in July saw the Conservative Party ousted after 14 years in power and Sir Keir Starmer's Labour Party win a substantial parliamentary majority. In the period, shorter-dated gilts underperformed longer-dated gilts, while UK corporate bonds returned 2.4%.
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 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 Gilts | 96.96% | |
| Cash and Equivalents | 0.25% | |
| Other Assets | 2.79% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 96.96% | - | - | - | |
| Non-Classified | 2.79% | - | - | - | |
| Cash and Equivalents | 0.25% | - | - | - | |
Regional Allocation
| UK | 96.96% | |
| Non-Classified | 2.79% | |
| Cash and Equivalents | 0.25% |
Fixed Interest Currencies
| Pound Sterling | 96.96% | |
| Non-Fixed Interest Assets | 2.79% | |
| Cash | 0.25% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 96.96% | - | |
United Kingdom
|
- | 96.96% | |
| Non-Classified | 2.79% | - | |
| Cash and Equivalents | 0.25% | - | |
Fixed Interest Maturity Profile
| 5Yr - 10Yr Maturity |
|
22.10% |
| 10Yr - 15Yr Maturity |
|
18.67% |
| > 15Yr Maturity |
|
56.19% |
| Cash And Equivalents |
|
0.25% |
| Unknown Maturity |
|
2.79% |
Fixed Interest Quality Profile
| AA |
|
96.96% |
| Cash and Equivalents |
|
0.25% |
| Other Asset Types |
|
2.79% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | 1¼% Index-linked Treasury Gilt 2032 | 6.35% | Bonds | United Kingdom |
| 2 | 1⅛% Index-linked Treasury Gilt 2037 | 5.80% | Bonds | United Kingdom |
| 3 | ¾% Index-linked Treasury Gilt 2034 | 5.54% | Bonds | United Kingdom |
| 4 | ⅝% Index-linked Treasury Gilt 2040 | 5.27% | Bonds | United Kingdom |
| 5 | 2% Index-linked Treasury Stock 2035 | 5.06% | Bonds | United Kingdom |
| 6 | ⅝% Index-linked Treasury Gilt 2042 | 4.66% | Bonds | United Kingdom |
| 7 | ⅛% Index-linked Treasury Gilt 2044 | 4.48% | Bonds | United Kingdom |
| 8 | 1¼% Index-linked Treasury Gilt 2055 | 4.43% | Bonds | United Kingdom |
| 9 | ⅛% Index-linked Treasury Gilt 2036 | 4.32% | Bonds | United Kingdom |
| 10 | ¾% Index-linked Treasury Gilt 2047 | 4.27% | Bonds | United Kingdom |
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).
Identification Codes
| Sedol Code | 3282441 |
| Mex Code | PUMGIL |
| Isin Code | GB0032824418 |
| Citi Code | P276 |
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 Passive Fund - the underlying fund. Underlying Fund Objective: The fund invests in UK Government index-linked gilts with over five years to maturity. The fund is passively managed against its benchmark, the iBoxx UK Gilt Inflation-Linked Over 5 Years Index. Tracking this index is achieved by fully replicating the stocks in the Index. Performance Objective: To match the performance of the benchmark as closely as possible. |
| Benchmark | iBoxx UK Gilt Inflation-Linked Over 5 Year Index |
| ABI Sector | 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).
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | -2.14 |
| Beta | 0.97 |
| Sharpe | -0.04 |
| Standard Deviation | 16.66 |
| Info Ratio | -0.28 |
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 | No |
| Offshore | No |
| Income Eroding Capital Growth | No |
| Umbrella Liabilities | No |
| New Fund | No |
| Solvency of Depository | No |
| 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.
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
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
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.