Legal & General Strategic Bond I Inc
Report And Accounts
Simplified Prospectus / KIID
Performance
Discrete performance - to last month end
| 30/11/19 to 30/11/20 |
30/11/20 to 30/11/21 |
30/11/21 to 30/11/22 |
30/11/22 to 30/11/23 |
30/11/23 to 30/11/24 |
|
|---|---|---|---|---|---|
| Fund | 11.1% | 4.2% | -4.7% | 3.8% | 13.9% |
| Sector | 6.1% | 1.7% | -10.6% | 3.5% | 8.9% |
| Rank | 6/70 | 11/75 | 8/79 | 48/85 | 5/88 |
| Quartile | 1 | 1 | 1 | 3 | 1 |
Annualised performance
| Annualised | ||||
|---|---|---|---|---|
| 3 Years to 30/11/24 |
5 Years to 30/11/24 |
10 Years to 30/11/24 |
||
| Fund | 4.1% | 5.5% | 3.1% | |
| Sector | 0.3% | 1.7% | 2.7% | |
| Rank | 2/79 | 2/70 | 19/51 | |
| Quartile | 1 | 1 | 2 | |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| AA BD. 8.45% | 1.39 |
| SAUDI ARABIAN OIL C 5.87% | 0.99 |
| ATHORA HLDG. 5.875% | 0.94 |
| EUSHI FINANCE INC 1 7.62% | 0.91 |
| BANK OF NOVA SCOTIA/ F2V | 0.87 |
| AROUNDTOWN FIN. SARL F2V | 0.85 |
| 9.25% | 0.83 |
| BANCA MONTE DEI PASC F2V | 0.82 |
| VOLKSWAGEN FIN SERV 6.5% | 0.76 |
| BARCLAYS F2F | 0.72 |
| Total | 9.06 |
Fund Aims
The objective of this fund is to provide a combination of income and growth. The fund will invest between 80% and 100% in bonds and/or derivatives and/or cash. The bonds may have a fixed or variable rate of income. The bonds that the fund invests in may be investment grade (rated as lower risk) or sub-investment grade (rated as higher risk). The bonds held may be issued by companies or governments and may be issued in the UK or overseas. 35% or more of the fund can be invested in bonds issued by the government of any one of various countries or by any one of various international organisations. The fund may use derivatives to reduce risk or cost, or to generate additional capital or income with no, or an acceptably low, level of risk. The fund may also use derivatives for investment purposes to enhance the performance of the fund, manage the effect of changes in interest rates, manage the effect of changes in exchange rates with Sterling, removing 90% or more of this exchange rate risk. The fund may also invest in other funds and/or company shares.
Fund Manager
As Head of Active Strategies, Colin has responsibility for both the London-based fixed income and equity teams, as well as portfolio management responsibilities for our Global Credit, Absolute Return and Equity/Credit strategies. Colin joined LGIM in 2005 and has over 30 years’ experience.
Matthew was appointed Head of Global Bond Strategies in September 2019. Prior to this he was co-head of the Euro credit portfolio management team, and joined LGIM in March 2009. Matthew has more than 25 years’ experience in financial markets.
Fund Overview
| Mid (20/12/2024) | 53.99p |
| Distribution yield | 6.50% |
| Underlying yield | 6.20% |
| Fund size (31/07/2024) | £674.00m |
| Number of holdings | 536 |
| Entry Charge | 0.00% |
| Ongoing Charges | 0.63% |
| Launch date | 30/04/2007 |
Asset Allocation
| International Bonds | 70.99% | |
| UK Corporate Bonds | 16.71% | |
| Cash and Equivalents | 6.09% | |
| UK Equities | 0.49% | |
| UK Gilts | 0.15% | |
| Other Assets | 5.57% |
Commentary
December was marked by an unusually early onset of the traditional pre-Christmas low levels of liquidity, combined with elevated market volatility. In the aftermath of the EU/IMF bailout of Ireland in November, subordinated financial issues staged a partial recovery in early December, though senior bank debt performed relatively poorly amid concerns that senior bondholders could be forced to share the costs of future bailouts. During the month we put money to work in non-financial corporate issues, concentrating on those areas set to remain beneficiaries of the trend of rising demand for commodities in emerging markets, adding exposure to raw material supplier Glencore. We also lifted some of portfolio’s hedging in non-financial corporates, both at the single-name and index levels. Over the month our exposure to high-yield, non-financial corporate and financial corporates rose by approximately 2.0%, 3.1% and 9.3% respectively, with the latter largely achieved through much-reduced hedging of the portfolio’s exposure. However, we maintained our hedging on UK government issues, retaining our view that gilts could yet suffer from any potential overspill of the Irish crisis. Elsewhere, we locked in healthy gains from our interest rate strategies, taking profits from our duration stances in both the US and Europe; we closed our exposure to German Schatz short-dated bond futures at a very advantageous level, before taking the opportunity to re-establish some exposure later in the month.
Important Information
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 ongoing charges, but take no account of product charges. Ongoing charges 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 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 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.
Asset Allocation
| International Bonds | 70.99% | |
| UK Corporate Bonds | 16.71% | |
| Cash and Equivalents | 6.09% | |
| UK Equities | 0.49% | |
| UK Gilts | 0.15% | |
| Other Assets | 5.57% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 87.85% | - | - | - | |
| Cash and Equivalents | 6.09% | - | - | - | |
| Non-Classified | 5.57% | - | - | - | |
| Financials | 0.49% | - | - | - | |
| Banks | - | 0.49% | - | - | |
| Banks | - | - | 0.49% | - | |
| Banks | - | - | - | 0.49% | |
Regional Allocation
| Developed Europe - Excl UK | 27.97% | |
| North America | 18.11% | |
| UK | 17.35% | |
| Non-Classified | 14.72% | |
| Cash and Equivalents | 6.09% | |
| South & Central America | 5.16% | |
| Middle East & Africa | 3.99% | |
| Emerging Europe | 2.90% | |
| Emerging Asia | 2.19% | |
| Other Regions | 1.51% |
Fixed Interest Currencies
| US Dollar | 39.57% | |
| Euro | 24.53% | |
| Pound Sterling | 23.47% | |
| Cash | 6.09% | |
| Non-Fixed Interest Assets | 6.06% | |
| Indian Rupee | 0.17% | |
| Other Currencies | 0.11% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| Developed Europe - Excl UK | 27.97% | - | |
France
|
- | 5.36% | |
Luxembourg
|
- | 4.41% | |
Netherlands
|
- | 3.59% | |
Italy
|
- | 2.58% | |
Spain
|
- | 2.48% | |
Germany
|
- | 2.42% | |
Ireland
|
- | 1.44% | |
Denmark
|
- | 1.06% | |
Belgium
|
- | 1.03% | |
Austria
|
- | 0.91% | |
Portugal
|
- | 0.68% | |
Norway
|
- | 0.49% | |
Iceland
|
- | 0.47% | |
Sweden
|
- | 0.43% | |
Switzerland
|
- | 0.41% | |
Finland
|
- | 0.22% | |
| North America | 18.11% | - | |
United States
|
- | 15.89% | |
Canada
|
- | 2.22% | |
| UK | 17.35% | - | |
United Kingdom
|
- | 17.35% | |
| Non-Classified | 14.72% | - | |
| Cash and Equivalents | 6.09% | - | |
| South & Central America | 5.16% | - | |
Chile
|
- | 1.65% | |
Mexico
|
- | 1.39% | |
Argentina
|
- | 0.47% | |
Colombia
|
- | 0.42% | |
Guatemala
|
- | 0.36% | |
Brazil
|
- | 0.31% | |
Dominican Republic
|
- | 0.29% | |
Venezuela
|
- | 0.17% | |
Peru
|
- | 0.11% | |
| Middle East & Africa | 3.99% | - | |
Cote D'Ivoire
|
- | 0.86% | |
Nigeria
|
- | 0.66% | |
Oman
|
- | 0.51% | |
Senegal
|
- | 0.43% | |
Egypt
|
- | 0.40% | |
Angola
|
- | 0.35% | |
United Arab Emirates
|
- | 0.30% | |
Israel
|
- | 0.20% | |
Qatar
|
- | 0.16% | |
Cameroon
|
- | 0.11% | |
| Emerging Europe | 2.90% | - | |
Turkey
|
- | 0.88% | |
Greece
|
- | 0.83% | |
Romania
|
- | 0.54% | |
Latvia
|
- | 0.31% | |
Hungary
|
- | 0.18% | |
Poland
|
- | 0.16% | |
| Emerging Asia | 2.19% | - | |
India
|
- | 0.65% | |
Mongolia
|
- | 0.37% | |
Kazakhstan
|
- | 0.34% | |
Georgia
|
- | 0.27% | |
Azerbaijan
|
- | 0.27% | |
Pakistan
|
- | 0.26% | |
Indonesia
|
- | 0.03% | |
| Developed Asia | 1.04% | - | |
Singapore
|
- | 0.78% | |
Hong Kong
|
- | 0.26% | |
| Japan | 0.43% | - | |
Japan
|
- | 0.43% | |
| Australia & New Zealand | 0.04% | - | |
Australia
|
- | 0.04% | |
Property Regions
| 7,a,2 - 3 | 223.43% | |
| 9,a,0 - 1 | 20.86% | |
| 8,a,1 - 2 | 12.38% | |
| 5,a,5 - 7 | 9.64% | |
| 1,a,15+ | 1.93% | |
| 2,a,12 - 15 | 0.32% | |
| Other | -130.73% |
Asset Allocation
| 2,b,AA | 169.89% | |
| 5,a,<BBB | 62.24% | |
| 4,a,BBB | 26.90% | |
| 7,a,Cash and Equivalents | 4.90% | |
| 3,a,A | 4.75% | |
| 1,a,AAA | 2.42% | |
| Other Assets | -132.80% |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
38.63% |
| 5Yr - 10Yr Maturity |
|
20.95% |
| 10Yr - 15Yr Maturity |
|
3.20% |
| > 15Yr Maturity |
|
25.07% |
| Cash And Equivalents |
|
6.09% |
| Unknown Maturity |
|
5.57% |
| Other Asset Types |
|
0.49% |
Fixed Interest Quality Profile
| AA |
|
2.26% |
| A |
|
5.15% |
| BBB |
|
19.99% |
| Sub-Investment Grade |
|
21.91% |
| Unknown Quality |
|
38.54% |
| Cash and Equivalents |
|
6.09% |
| Other Asset Types |
|
6.06% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | AA BD. 8.45% | 1.39% | Bonds | Non-Classified |
| 2 | SAUDI ARABIAN OIL C 5.87% | 0.99% | Non-Classified | Non-Classified |
| 3 | ATHORA HLDG. 5.875% | 0.94% | Bonds | Non-Classified |
| 4 | EUSHI FINANCE INC 1 7.62% | 0.91% | Bonds | United States |
| 5 | BANK OF NOVA SCOTIA/ F2V | 0.87% | Bonds | Canada |
| 6 | AROUNDTOWN FIN. SARL F2V | 0.85% | Bonds | Luxembourg |
| 7 | 9.25% | 0.83% | Bonds | United States |
| 8 | BANCA MONTE DEI PASC F2V | 0.82% | Bonds | Non-Classified |
| 9 | VOLKSWAGEN FIN SERV 6.5% | 0.76% | Bonds | Netherlands |
| 10 | BARCLAYS F2F | 0.72% | Non-Classified | Non-Classified |
Important Information
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 | B1TWMY1 |
| Mex Code | LGDBTI |
| Isin Code | GB00B1TWMY10 |
| Citi Code | X103 |
Fund Charges
| Entry Charge | 0.00% |
| Ongoing Charges | 0.63% |
Aims and Benchmark
| Aims | The objective of this fund is to provide a combination of income and growth. The fund will invest between 80% and 100% in bonds and/or derivatives and/or cash. The bonds may have a fixed or variable rate of income. The bonds that the fund invests in may be investment grade (rated as lower risk) or sub-investment grade (rated as higher risk). The bonds held may be issued by companies or governments and may be issued in the UK or overseas. 35% or more of the fund can be invested in bonds issued by the government of any one of various countries or by any one of various international organisations. The fund may use derivatives to reduce risk or cost, or to generate additional capital or income with no, or an acceptably low, level of risk. The fund may also use derivatives for investment purposes to enhance the performance of the fund, manage the effect of changes in interest rates, manage the effect of changes in exchange rates with Sterling, removing 90% or more of this exchange rate risk. The fund may also invest in other funds and/or company shares. |
| Benchmark | N/A |
| Benchmark Category | - |
| IA Sector | £ Strategic Bond |
Fund Background
| Valuation frequency | Daily |
| Valuation point | 12:00 |
| Fund type | Unit Trust |
| Launch price | £0.50 |
| Fund currency | Pound Sterling |
| Fund domicile | United Kingdom |
| ISA allowable | Yes |
| SIPP allowable | Yes |
Distribution Details
| Income frequency | Quarterly |
| Distribution Type | Interest |
| Distribution Payment Basis | Net |
Distribution Dates
| Ex dividend date(s) | Income payment date(s) |
|---|---|
| 05 December | 05 February |
| 05 March | 05 May |
| 05 June | 05 August |
| 05 September | 05 November |
Ratings
| FE Crown |  |
Effect of Deductions
| Assuming a growth rate of 5.20% | Assuming a growth rate of 7.00% |
|---|---|
| 4.50% | - |
Fund Administration
| Fund Trustee/Depository | The Northern Trust Company |
| Fund Administrator | Internal |
| Fund Registrar | Internal |
| Fund Custodian | The Northern Trust Company |
Group Details
| Group name | Legal & General Unit Trust Managers Limited |
| Group address | Legal & General One Coleman Street London EC2R 5AA |
| Group telephone | 0370 050 0955 |
| Dealing telephone | - |
| investments@landg.com | |
| Homepage | www.lgim.com |
| Fax number | - |
Dealing
| Minimum Investment | £1000000 |
| Minimum Top Up | £20000 |
| Minimum Regular Saving | - |
| Settlement Period: Buy | 4 days |
| Settlement Period: Sell | 4 days |
| Pricing Basis | Forward |
| Dealing Decimals | 3 |
Important Information
Ongoing charges 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 | 4.43 |
| Beta | 0.76 |
| Sharpe | 0.08 |
| Standard Deviation | 6.57 |
| Info Ratio | 1.04 |
Risk Factors
| Risk Factor | Yes / No |
|---|---|
| Charges to Capital | No |
| 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 | Yes |
| Offshore | No |
| Income Eroding Capital Growth | Yes |
| 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
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.
Derivative Exposure
The fund invests in derivatives as part of its investment strategy, over and above their use for Efficient Portfolio Management (EPM). Investors should be aware that the use of these instruments can, under certain circumstances, increase the volatility and risk profile of the Fund beyond that expected of a fund that only invests in equities. The fund may also be exposed to the risk that the company issuing the derivative may not honour their obligations which in turn could lead to losses arising.
Income Eroding Capital Growth
The fund focuses on providing an income, which can reduce the prospects for capital growth, and in some cases the capital value may fall.
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
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 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.
Important Information
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 ongoing charges, but take no account of product charges. Ongoing charges 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 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 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.
"Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.