Prudential Long Term Bond 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 | 6.7% | -6.5% | -36.1% | -3.9% | 11.9% |
| Benchmark | 6.0% | -7.0% | -36.8% | -4.5% | 11.1% |
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 | 2.5% | -11.8% | -7.3% | 0.9% |
| Benchmark | 2.2% | -12.5% | -7.9% | 0.4% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| 1¾% Treasury Gilt 2049 | 4.06 |
| 1½% Treasury Gilt 2047 | 3.99 |
| 3¼% Treasury Gilt 2044 | 3.78 |
| 1¼ % Treasury Gilt 2041 | 3.38 |
| 4½% Treasury Gilt 2042 | 2.92 |
| 4¼% Treasury Gilt 2040 | 2.67 |
| 4¼% Treasury Gilt 2055 | 2.67 |
| 3½% Treasury Gilt 2045 | 2.58 |
| 4¼% Treasury Gilt 2046 | 2.46 |
| 4¾% Treasury Gilt 2043 | 2.40 |
| Total | 30.93 |
Fund Aims
Objective: The investment strategy of the fund is to purchase units in the M&G PP Long Term Bond Fund - the underlying fund.
Underlying Fund Objective: The fund invests, via other M&G PP funds, in long-dated bonds split equally between UK Government gilts and corporate bonds. It is a "fund of funds" with the gilts component passively managed. The actively managed corporate bonds are mainly high quality sterling issues, but may include limited amounts of high yield and hedged non-sterling bonds. The split between government and corporate bonds may be reviewed from time to time.
Performance Objective: To match the performance of the benchmark as closely as possible.
Fund Manager
With access to investment professionals around the world, the M&G Treasury & Investment Office (T&IO) has a broad and well-resourced investment capability. T&IO set the strategic asset allocation and undertakes the ‘manager of managers’ role for our insured funds. Over the years they have built a thorough and effective governance framework, which includes the setting and monitoring of investment mandates, regular performance and activity health checks and independent analysis of investment, credit and liquidity risks.
Fund Overview
| Daily price (19/12/2024) | 248.90 |
| Fund size (31/10/2024) | £15.68m |
| Underlying Fund size | £16.02m |
| Number of holdings | 230 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 30/04/2002 |
Asset Allocation
| UK Gilts | 58.00% | |
| UK Corporate Bonds | 22.27% | |
| International Bonds | 16.85% | |
| Cash and Equivalents | 1.64% | |
| Alternative Trading Strategies | 0.00% | |
| Other Assets | 1.24% |
Commentary
Performance as at Q3 2024 - The price of UK government bonds (gilts) rose 2.4% in the third quarter of 2024, but underperformed US government bonds (treasuries) and German government bonds (bunds). The yield on the 10-year UK gilt fell to 4.0%, from 4.2% at the end of June (bond yields and prices move in opposite directions). 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
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 Gilts | 58.00% | |
| UK Corporate Bonds | 22.27% | |
| International Bonds | 16.85% | |
| Cash and Equivalents | 1.64% | |
| Alternative Trading Strategies | 0.00% | |
| Other Assets | 1.24% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 97.12% | - | - | - | |
| Cash and Equivalents | 1.64% | - | - | - | |
| Non-Classified | 1.24% | - | - | - | |
| Alternative Trading Strategies | 0.00% | - | - | - | |
| Alternative Trading Strategies | - | 0.00% | - | - | |
| Alternative Trading Strategies | - | - | 0.00% | - | |
| Alternative Trading Strategies | - | - | - | 0.00% | |
Regional Allocation
| UK | 80.27% | |
| Developed Europe - Excl UK | 7.43% | |
| Non-Classified | 5.42% | |
| North America | 3.86% | |
| Cash and Equivalents | 1.64% | |
| South & Central America | 0.76% | |
| Australia & New Zealand | 0.49% | |
| Japan | 0.14% |
Fixed Interest Currencies
| Pound Sterling | 95.28% | |
| Cash | 1.64% | |
| US Dollar | 1.33% | |
| Non-Fixed Interest Assets | 1.24% | |
| Euro | 0.51% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 80.27% | - | |
United Kingdom
|
- | 80.27% | |
| Developed Europe - Excl UK | 7.43% | - | |
France
|
- | 4.57% | |
Netherlands
|
- | 0.75% | |
Luxembourg
|
- | 0.72% | |
Denmark
|
- | 0.65% | |
Sweden
|
- | 0.47% | |
Germany
|
- | 0.20% | |
Norway
|
- | 0.07% | |
| Non-Classified | 5.42% | - | |
| North America | 3.86% | - | |
United States
|
- | 3.86% | |
| Cash and Equivalents | 1.64% | - | |
| South & Central America | 0.76% | - | |
Mexico
|
- | 0.76% | |
| Australia & New Zealand | 0.49% | - | |
Australia
|
- | 0.49% | |
| Japan | 0.14% | - | |
Japan
|
- | 0.14% | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
0.36% |
| 5Yr - 10Yr Maturity |
|
0.15% |
| 10Yr - 15Yr Maturity |
|
2.64% |
| > 15Yr Maturity |
|
93.98% |
| Cash And Equivalents |
|
1.64% |
| Unknown Maturity |
|
1.24% |
Fixed Interest Quality Profile
| AAA |
|
0.56% |
| AA |
|
61.83% |
| A |
|
13.57% |
| BBB |
|
15.84% |
| Sub-Investment Grade |
|
0.53% |
| Unknown Quality |
|
4.80% |
| Cash and Equivalents |
|
1.64% |
| Other Asset Types |
|
1.24% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | 1¾% Treasury Gilt 2049 | 4.06% | Bonds | United Kingdom |
| 2 | 1½% Treasury Gilt 2047 | 3.99% | Bonds | United Kingdom |
| 3 | 3¼% Treasury Gilt 2044 | 3.78% | Bonds | United Kingdom |
| 4 | 1¼ % Treasury Gilt 2041 | 3.38% | Bonds | United Kingdom |
| 5 | 4½% Treasury Gilt 2042 | 2.92% | Bonds | United Kingdom |
| 6 | 4¼% Treasury Gilt 2040 | 2.67% | Bonds | United Kingdom |
| 7 | 4¼% Treasury Gilt 2055 | 2.67% | Bonds | United Kingdom |
| 8 | 3½% Treasury Gilt 2045 | 2.58% | Bonds | United Kingdom |
| 9 | 4¼% Treasury Gilt 2046 | 2.46% | Bonds | United Kingdom |
| 10 | 4¾% Treasury Gilt 2043 | 2.40% | 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 | 3169403 |
| Mex Code | PUPR |
| Isin Code | GB0031694036 |
| Citi Code | P282 |
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 Term Bond Fund - the underlying fund. Underlying Fund Objective: The fund invests, via other M&G PP funds, in long-dated bonds split equally between UK Government gilts and corporate bonds. It is a "fund of funds" with the gilts component passively managed. The actively managed corporate bonds are mainly high quality sterling issues, but may include limited amounts of high yield and hedged non-sterling bonds. The split between government and corporate bonds may be reviewed from time to time. Performance Objective: To match the performance of the benchmark as closely as possible. |
| Benchmark | 50% iBoxx £ Gilts 15+ and 50% 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).
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | 0.34 |
| Beta | 1.05 |
| Sharpe | -0.03 |
| Standard Deviation | 16.82 |
| Info Ratio | -0.16 |
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 | 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.
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
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.