Prudential Fixed Interest S1
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 | 3.5% | -7.2% | -25.7% | -0.4% | 7.5% |
| Benchmark | 3.4% | -6.8% | -24.6% | -2.4% | 8.0% |
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 | 2.3% | -7.3% | -5.2% | 0.0% |
| Benchmark | 2.5% | -7.4% | -5.2% | 0.3% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| 4½% Treasury Gilt 2028 | 17.97 |
| UNITED KINGDOM OF GREAT BRITAIN AN RegS | 13.01 |
| 4% Treasury Gilt 2063 | 9.50 |
| 4¾% Treasury Gilt 2043 | 8.85 |
| 4⅛% Treasury Gilt 2027 | 8.17 |
| 3¾% Treasury Gilt 2027 | 5.30 |
| 1% Treasury Gilt 2032 | 5.25 |
| ⅞ Treasury 2046 | 5.08 |
| 1⅝% Treasury Gilt 2054 | 4.46 |
| 1½% Green Gilt 2053 | 3.60 |
| Total | 81.18 |
Fund Aims
Objective: The investment strategy of the fund is to purchase units in the M&G PP Fixed Interest Fund - the underlying fund.
Underlying Fund Objective: The fund invests mainly in UK government gilts. The fund is actively managed against its benchmark, the iBoxx Sterling Gilts Index. The fund can also invest in overseas government bonds and corporate bonds issues by UK and overseas companies and institutions. Exposure to short-term exchange rate movements from any overseas holdings is mitigated by hedging.
Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis.
Fund Manager
Miles joined M&G in January 2009 as a senior portfolio manager specialising in Government bond and macro fixed income mandates. Miles worked briefly as an accountant and a trader on the LIFFE floor before joining the investment management industry in 1996. He spent the next eight years of his career managing both Government and corporate bond portfolios for Alliance Capital. Miles joined Morley in 2004 with a brief to specialise in Government bond portfolios. Miles graduated from Cambridge University in 1993 with a BA Hons in Economics.
Fund Overview
| Bid (19/12/2024) | 4.80 |
| Offer (19/12/2024) | 5.06 |
| Fund size (31/10/2024) | £17.76m |
| Underlying Fund size | £45.99m |
| Number of holdings | 16 |
| Launch date | 02/07/1991 |
Fund Charges
| Annual Management Charge (AMC) | 0.75% |
| Further Costs | 0.01% |
| Yearly Total | 0.76% |
Asset Allocation
| UK Gilts | 80.92% | |
| Cash and Equivalents | 6.07% | |
| Other Assets | 13.01% |
Commentary
Performance as at Q3 2024 - During the quarter the manager purchased index linked Gilts maturing in 30 years vs fixed rate bonds as the backdrop is supportive for inflation linked bonds given supply is limited over the coming months. Additionally, the manager reduced the funds overall bias to long dated issuance and moved marginally shorter over the quarter. Furthermore, the manager reduced exposure to bonds maturing between 20-25 years, and bought into the wings of the 5 years and 30-40 years as the sector remains expensive and should benefit from increased supply in the area. The Fund remains underweight in the 7-20 year fixed rate gilts versus the wings. Activity in the Fund continued to focus on an active stock specific relative value approach. The manager continues to position in the Fund in anomalously cheap securities along the gilt yield curve.
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 | 80.92% | |
| Cash and Equivalents | 6.07% | |
| Other Assets | 13.01% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 80.92% | - | - | - | |
| Non-Classified | 13.01% | - | - | - | |
| Cash and Equivalents | 6.07% | - | - | - | |
Regional Allocation
| UK | 80.92% | |
| Non-Classified | 13.01% | |
| Cash and Equivalents | 6.07% |
Fixed Interest Currencies
| Pound Sterling | 80.92% | |
| Non-Fixed Interest Assets | 13.01% | |
| Cash | 6.07% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 80.92% | - | |
United Kingdom
|
- | 80.92% | |
| Non-Classified | 13.01% | - | |
| Cash and Equivalents | 6.07% | - | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
33.53% |
| 5Yr - 10Yr Maturity |
|
5.25% |
| > 15Yr Maturity |
|
42.14% |
| Cash And Equivalents |
|
6.07% |
| Unknown Maturity |
|
13.01% |
Fixed Interest Quality Profile
| AA |
|
80.92% |
| Cash and Equivalents |
|
6.07% |
| Other Asset Types |
|
13.01% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | 4½% Treasury Gilt 2028 | 17.97% | Bonds | United Kingdom |
| 2 | UNITED KINGDOM OF GREAT BRITAIN AN RegS | 13.01% | Non-Classified | Non-Classified |
| 3 | 4% Treasury Gilt 2063 | 9.50% | Bonds | United Kingdom |
| 4 | 4¾% Treasury Gilt 2043 | 8.85% | Bonds | United Kingdom |
| 5 | 4⅛% Treasury Gilt 2027 | 8.17% | Bonds | United Kingdom |
| 6 | 3¾% Treasury Gilt 2027 | 5.30% | Bonds | United Kingdom |
| 7 | 1% Treasury Gilt 2032 | 5.25% | Bonds | United Kingdom |
| 8 | ⅞ Treasury 2046 | 5.08% | Bonds | United Kingdom |
| 9 | 1⅝% Treasury Gilt 2054 | 4.46% | Bonds | United Kingdom |
| 10 | 1½% Green Gilt 2053 | 3.60% | 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 | 0702317 |
| Mex Code | PUPMF |
| Isin Code | GB0007023178 |
| Citi Code | PS22 |
Fund Charges
| Annual Management Charge (AMC) | 0.75% |
| Further Costs | 0.01% |
| Yearly Total | 0.76% |
Aims and Benchmark
| Aims | Objective: The investment strategy of the fund is to purchase units in the M&G PP Fixed Interest Fund - the underlying fund. Underlying Fund Objective: The fund invests mainly in UK government gilts. The fund is actively managed against its benchmark, the iBoxx Sterling Gilts Index. The fund can also invest in overseas government bonds and corporate bonds issues by UK and overseas companies and institutions. Exposure to short-term exchange rate movements from any overseas holdings is mitigated by hedging. Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis. |
| Benchmark | iBoxx Sterling Gilts Index |
| ABI Sector | UK Gilts |
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 | 1.28 |
| Beta | 0.99 |
| Sharpe | -0.01 |
| Standard Deviation | 11.54 |
| Info Ratio | 0.58 |
Risk Factors
| Risk Factor | Yes / No |
|---|---|
| Charges to Capital | Yes |
| Emerging Markets | No |
| Concentrated Portfolio | No |
| Smaller Companies | No |
| High Yield Bonds | No |
| Sector Specific | Yes |
| Geared Investments | No |
| Value of Investments | Yes |
| Investments Long Term | Yes |
| Property | No |
| Exchange Rate | Yes |
| 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).
Sector Specific
The fund invests in specific sectors. Funds which invest in specific sectors may carry more risk than those spread across a number of different sectors. They may assume higher risk, as markets/sectors can be more volatile. In particular, gold, technology funds and other focused funds can suffer as the underlying stocks can be more volatile and less liquid.
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.
Exchange Rate
This fund invests in securities outside the UK. The value of investments and any income from them may therefore decrease or increase as a result of changes in exchange rates between currencies.
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.
Lower to Medium Risk
These funds may invest in corporate bonds or multi-asset strategies with a higher weighting in corporate bonds (and other comparable strategies).
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.