Prudential International Bond - closed to new members S3

Essentials Portfolio Analysis Background Data Prudential Risk Performance View PDF Factsheet
Portfolio data accurate as at:

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 14.93
TREASURY NOTE 13.91
JAPAN (GOVERNMENT OF) 5YR #175 10.03
TREASURY NOTE 5.85
TREASURY BOND 5.76
NORWAY (KINGDOM OF) 5.65
ITALY (REPUBLIC OF) MTN RegS 5.24
JAPAN (GOVERNMENT OF) 2YR #462 4.09
TREASURY NOTE 4.08
CZECH REPUBLIC 3.93
Total 73.48

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 Burrows manager of the underlying fund for 1 years and 10 months

Photo of Robert Burrows 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 (27/03/2025) 278.10
Fund size (28/02/2025) £2.04m
Underlying Fund size £2.07m
Number of holdings 32
Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan
Launch date 06/04/2001

Asset Allocation

pie chart
  International Bonds 96.06%
  Cash and Equivalents 2.29%
  Other Assets 1.65%

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 investment can go down as well as up so you might get back less than you put in.

This factsheet is intended for the trustees, sponsors, advisers and members 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. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their 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 information or make any warranties regarding results from its usage.

Portfolio data accurate as at:

Asset Allocation

pie chart
  International Bonds 96.06%
  Cash and Equivalents 2.29%
  Other Assets 1.65%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 96.06% - - -
 
Cash and Equivalents 2.29% - - -
 
Non-Classified 1.65% - - -

Regional Allocation

pie chart
  North America 49.70%
  Developed Europe - Excl UK 16.31%
  Japan 14.76%
  Australia & New Zealand 6.86%
  Non-Classified 5.58%
  South & Central America 3.40%
  Cash and Equivalents 2.29%
  Emerging Europe 1.10%

Fixed Interest Currencies

pie chart
  US Dollar 46.68%
  Yen 14.76%
  Pound Sterling 7.39%
  Australian Dollar 5.67%
  Norwegian Krone 5.65%
  Czech Koruna 3.93%
  Other Currencies 15.92%

Regional Breakdown

Expand allCollapse all
Region Country
 
North America 49.70% -
 
United States - 49.70%
 
Developed Europe - Excl UK 16.31% -
 
Norway - 5.65%
 
Germany - 5.41%
 
Italy - 5.24%
 
Japan 14.76% -
 
Japan - 14.76%
 
Australia & New Zealand 6.86% -
 
Australia - 5.67%
 
New Zealand - 1.19%
 
Non-Classified 5.58% -
 
South & Central America 3.40% -
 
Mexico - 3.40%
 
Cash and Equivalents 2.29% -
 
Emerging Europe 1.10% -
 
Poland - 1.10%

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
48.38%
5Yr - 10Yr Maturity
 
 
32.27%
10Yr - 15Yr Maturity
 
 
8.21%
> 15Yr Maturity
 
 
7.19%
Cash And Equivalents
 
 
2.29%
Unknown Maturity
 
 
1.65%

Fixed Interest Quality Profile

AAA
 
 
65.20%
AA
 
 
2.43%
BBB
 
 
8.64%
Unknown Quality
 
 
19.79%
Cash and Equivalents
 
 
2.29%
Other Asset Types
 
 
1.65%

Top 10 Holdings

Stock % Weight Sector Country
1 TREASURY (CPI) NOTE 14.93% Bonds United States
2 TREASURY NOTE 13.91% Bonds United States
3 JAPAN (GOVERNMENT OF) 5YR #175 10.03% Bonds Japan
4 TREASURY NOTE 5.85% Bonds United States
5 TREASURY BOND 5.76% Bonds United States
6 NORWAY (KINGDOM OF) 5.65% Bonds Norway
7 ITALY (REPUBLIC OF) MTN RegS 5.24% Bonds Italy
8 JAPAN (GOVERNMENT OF) 2YR #462 4.09% Bonds Japan
9 TREASURY NOTE 4.08% Bonds United States
10 CZECH REPUBLIC 3.93% Bonds 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 information purposes only. If there is information or terminology included that you would like to discuss, then please contact an adviser. Investors should refer to their 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 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 for information purposes only. If there is information or terminology included that you would like to discuss, then please contact an adviser. Investors should refer to their 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.

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.

You should also consider discussing your decision and the appropriateness of a fund's risk rating with an adviser.

  • Higher Risk
  • Medium to Higher Risk
  • Medium Risk
  • Lower to Medium Risk
  • Lower Risk
  • Minimal Risk

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 trustees, sponsors, advisers and members 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. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their 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 information 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 investment can go down as well as up so you might get back less than you put in.

This factsheet is intended for the trustees, sponsors, advisers and members 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. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their 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 information 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.