Prudential International Bond - closed to new members S3
Performance
Discrete performance - to latest available quarter end
| 31/12/19 to 31/12/20 |
31/12/20 to 31/12/21 |
31/12/21 to 31/12/22 |
31/12/22 to 31/12/23 |
31/12/23 to 31/12/24 |
|
|---|---|---|---|---|---|
| Fund | 7.6% | -5.0% | 2.5% | -2.3% | -3.9% |
| Benchmark | 6.0% | -5.9% | -6.2% | -2.2% | -1.9% |
Performance - to latest available quarter end
| Quarter | Annualised | |||
|---|---|---|---|---|
| 4 2024 |
3 Years to 31/12/24 |
5 Years to 31/12/24 |
10 Years to 31/12/24 |
|
| Fund | -0.5% | -1.3% | -0.3% | 3.0% |
| Benchmark | 1.0% | -3.4% | -2.1% | 1.7% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| TREASURY (CPI) NOTE | 28.92 |
| TREASURY NOTE | 13.85 |
| TREASURY NOTE (2OLD) | 5.76 |
| NORWAY (KINGDOM OF) | 5.67 |
| TREASURY BOND | 5.61 |
| ITALY (REPUBLIC OF) MTN RegS | 5.20 |
| TREASURY NOTE | 4.04 |
| CZECH REPUBLIC | 3.96 |
| INTERNATIONAL BANK FOR RECONSTRUCT MTN | 3.37 |
| GERMANY (FEDERAL REPUBLIC OF) RegS | 3.30 |
| Total | 79.69 |
Fund Aims
Objective: The investment strategy of the fund is to purchase units in the M&G PP International Bond Fund - the underlying fund.
Underlying Fund Objective: The fund invests in all the major government bond markets outside the UK with principal holdings in the US, Japan and Europe. The fund is actively managed against its benchmark, the Barclays Global Aggregate Treasury Custom Over $3bn Index. Both active stock selection and asset allocation are used to add value.
Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis.
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 (06/03/2025) | 281.10 |
| Fund size (31/01/2025) | £2.04m |
| Underlying Fund size | £2.06m |
| Number of holdings | 31 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 06/04/2001 |
Asset Allocation
| International Bonds | 97.67% | |
| Cash and Equivalents | 0.69% | |
| Other Assets | 1.64% |
Commentary
Performance as at Q4 2024 - Q4 24 was difficult for fixed income markets. Economic data is causing investor sentiment to swing between extremes. The European Central Bank cut rates by 25 basis points (bps) in October and December to 3.00%. Meanwhile, business activity remained sluggish, and Eurozone Consumer Price Index (CPI) moved up to 2.2%, with unemployment unchanged. Furthermore, the Eurozone grew by 0.9% YoY in Q3, largely as expected. In November there were significant political developments in France, with growing speculation about the government's survival as they looked to pass a budget. This continued into December as the government led by Michel Barnier fell. As a result, French assets continued to underperform with the CAC 40 down -3.3% in total return terms, and the Franco-German 10-year yield spread widening to 83bps. In the US, October saw a much brighter global outlook as markets bounced back. On October 3rd, the US ISM services index hit a 19-month high at 54.9. Then the US jobs report came in stronger than expected. This meant that unemployment fell to 4.1%. The presidential election saw victory for Donald Trump, as well as Republican control of the House of Representatives and Senate. That saw higher US Treasury yields and USD. There was growing scepticism that the Federal Reserve (Fed) would cut rates rapidly over the year. Data also showed core Personal Consumption Expenditures at a seven-month high in October. So, there was growing concern that inflation was proving sticky. In December, the Fed reduced rates again, bringing the total 2024 cuts to 100bps. They only indicated a further 50bps of cuts for 2025, which was more aggressive than anticipated. This led to Treasury yields rising. By the end of the year, the 10-year yield closed at 4.57%. The CPI indicated a continued rise in inflation while Core inflation remained at 3.3%. Unemployment remained relatively stable, while non-farm payrolls and the Job Openings and Labour Turnover Survey showed better a trend in December, suggesting a resilient labour market. In the UK, the Labour government budget announced additional borrowing, raising concerns over long-term growth. The Office for Budget Responsibility forecast growth of 1% this year and 2% in 2025. The market absorbed a post-budget update from the UK Debt Management Office that gross financing needs for 2024/25 will be GBP 23 billion higher than projected in April, with an additional cumulative increase of GBP 145 billion over the next four years. Yields eased by 5 to 10bps from their session highs, though volatility remained pronounced. For the Bank of England (BoE), the market's takeaway was that rates are likely to stay elevated for longer. The BoE cut rates by 25bps to 4.75% in November but kept it unchanged at 4.75% in December. However, Monetary Policy Committee divisions increased with three dissenters calling for an imminent rate cut. Still, a gradual approach to removing policy restraint was preferred. Inflationary pressures remain in the UK with November CPI at 2.6% (from 2.3) and Core CPI at 3.5%. The UK grew by 0.9% YoY in Q3 2024 and was flat QoQ vs. Q2. The spread of 10-year gilts over bunds widened by 32bps in Q4 to 220bps, the highest since October 2022. European IG spreads tighten by 15bps. However, government bond yields rose to 2.21% which offset the impact of widening spreads and resulted in a 0.81% total return. US IG spreads also tightened; however, US treasury yields rose markedly by 69bps to 4.47% resulting in a -2.84% total return. Sterling IG spreads saw more pronounced tightening whilst Gilt yields rose which led to a -0.41% total return. Overall, Global IG spreads tightened by 12bps, reflecting regional divergences but maintaining stability amid significant geopolitical and economic developments. Similarly, global HY markets returned 0.46% with European HY outperforming US HY. European HY spreads ended at 311bps, while US HY spreads tightened to 292bps.
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
| International Bonds | 97.67% | |
| Cash and Equivalents | 0.69% | |
| Other Assets | 1.64% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 97.67% | - | - | - | |
| Non-Classified | 1.64% | - | - | - | |
| Cash and Equivalents | 0.69% | - | - | - | |
Regional Allocation
| North America | 64.34% | |
| Developed Europe - Excl UK | 16.32% | |
| Australia & New Zealand | 6.86% | |
| Non-Classified | 5.60% | |
| South & Central America | 3.28% | |
| Japan | 1.81% | |
| Emerging Europe | 1.09% | |
| Cash and Equivalents | 0.69% |
Fixed Interest Currencies
| US Dollar | 60.97% | |
| Pound Sterling | 7.34% | |
| Norwegian Krone | 5.67% | |
| Australian Dollar | 5.66% | |
| Czech Koruna | 3.96% | |
| Brazilian Real | 3.37% | |
| Other Currencies | 13.02% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| North America | 64.34% | - | |
United States
|
- | 64.34% | |
| Developed Europe - Excl UK | 16.32% | - | |
Norway
|
- | 5.67% | |
Germany
|
- | 5.44% | |
Italy
|
- | 5.20% | |
| Australia & New Zealand | 6.86% | - | |
Australia
|
- | 5.66% | |
New Zealand
|
- | 1.20% | |
| Non-Classified | 5.60% | - | |
| South & Central America | 3.28% | - | |
Mexico
|
- | 3.28% | |
| Japan | 1.81% | - | |
Japan
|
- | 1.81% | |
| Emerging Europe | 1.09% | - | |
Poland
|
- | 1.09% | |
| Cash and Equivalents | 0.69% | - | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
48.61% |
| 5Yr - 10Yr Maturity |
|
31.99% |
| 10Yr - 15Yr Maturity |
|
8.06% |
| > 15Yr Maturity |
|
9.01% |
| Cash And Equivalents |
|
0.69% |
| Unknown Maturity |
|
1.64% |
Fixed Interest Quality Profile
| AAA |
|
79.89% |
| AA |
|
2.43% |
| BBB |
|
8.48% |
| Unknown Quality |
|
6.86% |
| Cash and Equivalents |
|
0.69% |
| Other Asset Types |
|
1.64% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | TREASURY (CPI) NOTE | 28.92% | Bonds | United States |
| 2 | TREASURY NOTE | 13.85% | Bonds | United States |
| 3 | TREASURY NOTE (2OLD) | 5.76% | Bonds | United States |
| 4 | NORWAY (KINGDOM OF) | 5.67% | Bonds | Norway |
| 5 | TREASURY BOND | 5.61% | Bonds | United States |
| 6 | ITALY (REPUBLIC OF) MTN RegS | 5.20% | Bonds | Italy |
| 7 | TREASURY NOTE | 4.04% | Bonds | United States |
| 8 | CZECH REPUBLIC | 3.96% | Bonds | Non-Classified |
| 9 | INTERNATIONAL BANK FOR RECONSTRUCT MTN | 3.37% | Bonds | United States |
| 10 | GERMANY (FEDERAL REPUBLIC OF) RegS | 3.30% | Bonds | Germany |
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 | 3168615 |
| Mex Code | PUIBD |
| Isin Code | GB0031686156 |
| Citi Code | P278 |
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 International Bond Fund - the underlying fund. Underlying Fund Objective: The fund invests in all the major government bond markets outside the UK with principal holdings in the US, Japan and Europe. The fund is actively managed against its benchmark, the Barclays Global Aggregate Treasury Custom Over $3bn Index. Both active stock selection and asset allocation are used to add value. Performance Objective: To outperform the benchmark by 0.75% a year (before charges) on a rolling three year basis. |
| Benchmark | Barclays Global Aggregate Treasury Custom > $3bn |
| ABI Sector | Global Fixed Interest |
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 | 0.11 |
| Beta | 0.43 |
| Sharpe | 0.00 |
| Standard Deviation | 5.27 |
| Info Ratio | 0.13 |
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 | 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).
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.
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.
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.