Prudential All Stocks Corporate Bond S3
Performance
Discrete performance - to latest available quarter end
| 30/06/19 to 30/06/20 |
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 |
|
|---|---|---|---|---|---|
| Fund | 9.8% | 1.5% | -12.2% | -5.2% | 10.2% |
| Benchmark | 6.4% | 1.7% | -13.1% | -6.9% | 9.7% |
Performance - to latest available quarter end
| Quarter | Annualised | |||
|---|---|---|---|---|
| 2 2024 |
3 Years to 30/06/24 |
5 Years to 30/06/24 |
10 Years to 30/06/24 |
|
| Fund | 0.3% | -2.8% | 0.4% | 3.2% |
| Benchmark | -0.1% | -3.9% | -0.8% | 2.3% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| ⅜% Treasury Gilt 2026 | 3.91 |
| 5% Treasury Stock 2025 | 3.56 |
| ⅛% Treasury Gilt 2026 | 3.29 |
| 4½% Treasury Gilt 2028 | 2.80 |
| 3¼% Treasury Gilt 2044 | 1.47 |
| 1½% Treasury Gilt 2026 | 1.40 |
| 4¼% Treasury Gilt 2039 | 1.23 |
| EUROPEAN INVESTMENT BANK | 1.21 |
| LCR FINANCE PLC - GTD RegS | 1.20 |
| BARCLAYS PLC RegS | 0.94 |
| Total | 21.01 |
Fund Aims
Objective: The investment strategy of the fund is to purchase units in the M&G PP All Stocks Corporate Bond Fund - the underlying fund.
Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds across the range of maturities. The fund is actively managed against its benchmark, the iBoxx sterling 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.
Fund Overview
| Daily price (22/08/2024) | 330.00 |
| Fund size (30/06/2024) | £28.65m |
| Underlying Fund size | £1570.71m |
| Number of holdings | 520 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 06/04/2001 |
Asset Allocation
| International Bonds | 40.53% | |
| UK Corporate Bonds | 29.62% | |
| UK Gilts | 22.58% | |
| Cash and Equivalents | 1.12% | |
| International Equities | 0.00% | |
| UK Equities | 0.00% | |
| Alternative Trading Strategies | 0.00% | |
| Other Assets | 6.16% |
Commentary
Performance as at Q2 2024 - Q2 saw four developed market central banks (the ECB, BoC, Riksbank, and the SNB) commence their respective rate cutting journeys, with the BoE expected to join in August as headline CPI returned to its target of 2.0% YoY in May. In the UK housing market, mortgage approvals declined as a consequence of higher borrowing costs, however, house prices surprisingly increased following the market stabilising ahead of the BoE’s expected rate cuts. The anticipated rate cuts has increased competition amongst mortgage providers, cutting borrowing costs across a range of residential products and other providers are expected to follow. Elsewhere in the UK, British retail sales appeared stronger than expected during the second quarter, driven by increased consumer confidence and slowing levels of inflation. As central banks across major developed markets begin to cut rates, it positions the Fed as one of the last to embark on the 'easing train', with rate cutting pace across the board expected to be gradual as inflation remains ahead of central banks' targets in most regions (except for Switzerland, which has seen two rate cuts so far). In particular, US CPI in May showed the lowest monthly core CPI reading since August 2021 at 3.4% YoY, with core PCE (the Fed's preferred inflation gauge) increasing 0.08% MoM in May to 2.6% YoY, the softest reading since November 2020. These figures helped cement expectations that rate cuts were still on the horizon from the Federal Reserve, but suggest that more evidence of disinflation will be needed to gain confidence that inflation is moving back to the 2% target. Despite the lowering of policy rates in Europe, the fallout from the European parliamentary elections and subsequent announcement of snap French legislative elections saw European sovereign yields rise, with the Franco-German 10-year spread widening by +29bps to 80bps in Q2 - the biggest quarterly widening since Q4 2011, when the Euro sovereign crisis was ongoing. In the Investment Grade (IG) market, spreads finally widened in June after tightening for most of the year, with the sell-off being attributed to several factors, including the weaker economic data and political risks in France. Despite the widening spreads, total returns have remained generally positive, driven by the duration component as yields fell. GBP IG generated a total return of 0.6% over the month, with USD and EUR up at 0.7% and 0.8% respectively. The GBP IG corporate index offers a spread of 99 basis points, +3bps wider versus end of May. June was also a positive month for high yield markets, with carry and tighter rates driving returns. Global HY index delivered 0.91% thanks to the rally in government bond yields that followed the news of softer US inflation and the first rate cut from the ECB. However, French election uncertainty weighed on spread performance and Euro HY markets lagged (0.54%) their US (0.97%) counterparts.
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 | 40.53% | |
| UK Corporate Bonds | 29.62% | |
| UK Gilts | 22.58% | |
| Cash and Equivalents | 1.12% | |
| International Equities | 0.00% | |
| UK Equities | 0.00% | |
| Alternative Trading Strategies | 0.00% | |
| Other Assets | 6.16% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 92.72% | - | - | - | |
| Non-Classified | 6.16% | - | - | - | |
| Cash and Equivalents | 1.12% | - | - | - | |
| Consumer Staples | 0.00% | - | - | - | |
| Personal Care, Drug & Grocery Stores | - | 0.00% | - | - | |
| Personal Care, Drug & Grocery Stores | - | - | 0.00% | - | |
| Food Retailers & Wholesalers | - | - | - | 0.00% | |
| Alternative Trading Strategies | 0.00% | - | - | - | |
| Alternative Trading Strategies | - | 0.00% | - | - | |
| Alternative Trading Strategies | - | - | 0.00% | - | |
| Alternative Trading Strategies | - | - | - | 0.00% | |
Regional Allocation
| UK | 52.20% | |
| Developed Europe - Excl UK | 20.91% | |
| Non-Classified | 12.60% | |
| North America | 12.12% | |
| Cash and Equivalents | 1.12% | |
| Australia & New Zealand | 0.39% | |
| South & Central America | 0.28% | |
| Japan | 0.21% | |
| Middle East & Africa | 0.11% | |
| Developed Asia | 0.06% |
Fixed Interest Currencies
| Pound Sterling | 89.09% | |
| Non-Fixed Interest Assets | 6.16% | |
| Euro | 2.70% | |
| Cash | 1.12% | |
| US Dollar | 0.93% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 52.20% | - | |
United Kingdom
|
- | 52.20% | |
| Developed Europe - Excl UK | 20.91% | - | |
France
|
- | 7.62% | |
Netherlands
|
- | 4.67% | |
Luxembourg
|
- | 2.95% | |
Germany
|
- | 1.23% | |
Spain
|
- | 1.04% | |
Switzerland
|
- | 0.92% | |
Italy
|
- | 0.90% | |
Sweden
|
- | 0.78% | |
Denmark
|
- | 0.38% | |
Ireland
|
- | 0.28% | |
Finland
|
- | 0.09% | |
Austria
|
- | 0.04% | |
Norway
|
- | 0.01% | |
| Non-Classified | 12.60% | - | |
| North America | 12.12% | - | |
United States
|
- | 10.75% | |
Canada
|
- | 1.38% | |
| Cash and Equivalents | 1.12% | - | |
| Australia & New Zealand | 0.39% | - | |
Australia
|
- | 0.39% | |
| South & Central America | 0.28% | - | |
Mexico
|
- | 0.28% | |
| Japan | 0.21% | - | |
Japan
|
- | 0.21% | |
| Middle East & Africa | 0.11% | - | |
United Arab Emirates
|
- | 0.11% | |
| Developed Asia | 0.06% | - | |
Hong Kong
|
- | 0.06% | |
Breakdown By Market Cap (%)
| Non-Classified |
|
6.16% |
| Bonds |
|
92.72% |
| Cash |
|
1.12% |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
46.71% |
| 5Yr - 10Yr Maturity |
|
17.72% |
| 10Yr - 15Yr Maturity |
|
10.28% |
| > 15Yr Maturity |
|
18.01% |
| Cash And Equivalents |
|
1.12% |
| Unknown Maturity |
|
6.16% |
Fixed Interest Quality Profile
| AAA |
|
5.17% |
| AA |
|
33.16% |
| A |
|
20.74% |
| BBB |
|
23.99% |
| Sub-Investment Grade |
|
0.85% |
| Unknown Quality |
|
8.81% |
| Cash and Equivalents |
|
1.12% |
| Other Asset Types |
|
6.16% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | ⅜% Treasury Gilt 2026 | 3.91% | Bonds | United Kingdom |
| 2 | 5% Treasury Stock 2025 | 3.56% | Bonds | United Kingdom |
| 3 | ⅛% Treasury Gilt 2026 | 3.29% | Bonds | United Kingdom |
| 4 | 4½% Treasury Gilt 2028 | 2.80% | Bonds | United Kingdom |
| 5 | 3¼% Treasury Gilt 2044 | 1.47% | Bonds | United Kingdom |
| 6 | 1½% Treasury Gilt 2026 | 1.40% | Bonds | United Kingdom |
| 7 | 4¼% Treasury Gilt 2039 | 1.23% | Bonds | United Kingdom |
| 8 | EUROPEAN INVESTMENT BANK | 1.21% | Bonds | Luxembourg |
| 9 | LCR FINANCE PLC - GTD RegS | 1.20% | Bonds | United Kingdom |
| 10 | BARCLAYS PLC RegS | 0.94% | Non-Classified | Non-Classified |
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 for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product 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 information or make any warranties regarding results from its usage.
Identification Codes
| Sedol Code | 3168563 |
| Mex Code | PUCB |
| Isin Code | GB0031685638 |
| Citi Code | P270 |
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 All Stocks Corporate Bond Fund - the underlying fund. Underlying Fund Objective: The fund invests mainly in high quality sterling corporate bonds across the range of maturities. The fund is actively managed against its benchmark, the iBoxx sterling 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 Non-Gilts Index |
| Sector | ABI Sterling 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 for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product 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 information or make any warranties regarding results from its usage.
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | 3.19 |
| Beta | 0.80 |
| Sharpe | -0.01 |
| Standard Deviation | 9.00 |
| Info Ratio | 1.48 |
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
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
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.