prudential with-profits fund · 2017. 7. 26. · btbq00068 03_2017 with-profits bonus series...

The asset mix is likely to vary in the future.Source: Prudential as at 31 March 2017 Asset allocations are regularly reviewed and may vary from time to time, but will always be consistent with the fund

Fund breakdown

Source: Prudential. The above are calendar year returns for the With-Profits Fund (before charges, tax and effects of smoothing).The value of your policy will be sent out in your annual statement or is available on request. The value will depend on when you actually invested allowing for tax, charges and smoothing. The value could change by more or less than the underlying investment return of the overall fund.Past performance is not a reliable indicator of future performance.

Underlying investment returns

Prudential With-Profits Fund

This document has been produced to provide factual information on Prudential’s With-Profits Fund, and specifically, that part of the fund directly relevant to investments of this type, and should not be used as financial advice. If you are unsure what bonus series you are invested in or if there is information or terminology included that you would like to discuss, then please contact your adviser.

Fund descriptionThe fund offers the prospect of competitive long-term real returns whilst smoothing the peaks and troughs of day-to-day market movements. Investment returns are passed to policyholders through bonuses. The fund is invested in a diversified portfolio of UK and overseas shares, bonds, property and cash. A significant proportion of the fund is invested in shares and property which can be expected to produce attractive longterm returns, but the return on these assets can be volatile and so the fund is actively managed to optimise the returns while controlling risk.

Prudential risk ratingLower to Medium

CommentaryThe first quarter of 2017 continued to see generally positive returns for equity markets, particularly in the US where the S&P 500 reached a record high, with investor sentiment continuing to be buoyed by the expectation of Trump’s fiscal policies boosting the economy. This sentiment softened slightly following a defeat over healthcare and concerns over Trump’s ability to enact his stated policies within his initial timeframes.

PPMG believes the effects of possible fiscal easing will have the greatest impact in 2018 while there is a risk that a move towards greater protectionism at the expense of foreign companies as tipped by Trump could result in stagflation (a period of high inflation, slow economic growth and high unemployment).

The UK continued to grow post the Brexit referendum, supported by corporate results and an increase in merger and acquisitions. European equities were up although they started weakly. The rally came from signs of an improving global economic outlook in the face of increased political uncertainty from Dutch and French elections. Japan’s Tokyo Price Index rose over the quarter, although held back by gradual yen appreciation. Emerging equities had a strong quarter, supported by the positive global economic outlook and a weaker US dollar.

Government bond yields were mixed over the quarter, with investment grade and high yield bonds outperforming due to expected monetary policy tightening, strengthening growth and rising inflation.

Key factsFund Size £72.4 billion as at 31 March 2017Prudential Financial Strength rating* AAPortfolio Manager Prudential Portfolio Management

Group LtdInvestment Style Prudent ActivePerformance Objective To offer competitve long term returns

*Standard & Poor’s as at June 2016

What is the risk rating?• 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 will find this information at www.pru.co.uk/factsheets.

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

Page 1 of 2 Quarter ending 31 March 2017

UK Equities 16.1%Property 14.9%Pacific Market Equities 9.8%North American Equities 8.5%European Equities 8.4%UK Fixed Interest 8.4%US Fixed Interest 8.3%Other Investment Assets 6.1%Cash 5.0%Euro Fixed Interest 4.5%Japanese Equities 3.6%Global Emerging Markets Equities 3.3%Asia Fixed Interest 2.5%Other Fixed Interest 0.6%

%-25 -20 -15 -10 -5 0 5 10 15 20 25

14.520163.62015

8.3201410.3201310.52012

2.1201112.72010

18.72009-19.72008

7.22007

“Prudential” is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

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With-Profits bonus series explained

Cash Accumulation With-ProfitsCash Accumulation MPP With-Profits is used soley by the oldest “pre 101” money purchase contracts for occupational pension schemes typically established from 1974.

Cash Accumulation AVC With-Profits is used solely by Additional Voluntary Contribution contracts as part of an occupational scheme (but not where VCs are paid through another Prudential group pension contract).

Unitised With-ProfitsUnitised L With-Profits is used by the “101” money purchase contracts for occupational pension schemes and grouped personal pension contracts (including the “Shout/Xafinity” contracts) typically established from 06/04/1987 where holdings are expressed in terms of units.

Unitised N With-Profits is used by the “Select” group personal pension (established 1997) and “Money Purchase Plan/Group Personal Pension” money purchase contracts for occupational pension schemes and group personal pension contracts established since 2001 where holdings are expressed in terms of units.

Prudential With-Profits Fund

Important information

Who manages the funds?Prudential Assurance Company Limited holds the assets of the With-Profits Fund through custodians. Prudential has delegated the investment management of the fund through agreements with various investment managers including M&G Investments.

Can I get advice?This factsheet should not be considered as financial advice and any changes to investment arrangements should be discussed with an adviser. It is not our intention to give an indication of how any particular funds will perform in the future. The commentary in this factsheet reflects the general views of the individual fund manager and should not be taken as a recommendation or advice as to how a specific market or fund is likely to perform.

Who is this factsheet for and what does it do?This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts. Its purpose is to provide an insight into how the fund(s) have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included on this factsheet, then please contact an adviser.

Other important informationIf money invested in the With-Profits Fund is taken out at any time other than on death or normal retirement date, a Market Value Reduction (MVR) may be applied; this may have the effect of reducing the fund value.

For details on MVR and charges applicable to your investment, please refer to the Key Features document for the relevant contract. For a copy of the Key Features document, please contact your pensions department for scheme members or usual Prudential contact for trustees and advisers.

Performance (applicable from 6 April 2017)For investments in the With-Profits Fund, the value of the policy depends on how much profit the fund makes and how we decide to distribute that profit. Policyholders receive a distribution of profits by means of bonuses, or other methods as specified in the relevant policy documentation. There are two types of bonus, regular (or reversionary) and final (or terminal) bonus.

The performance figures shown are overall annualised returns for contributions made on the dates specified. The returns include both regular and final bonuses added to a benefit paid at normal retirement date, but make no allowance for any applicable initial charges, allocation rates or early cash in charges (explicit charges).

Final bonus may vary and is not guaranteed. The rate of future bonuses cannot be guaranteed. The value of an investment may go down as well as up and the fund value in the future may be less than the payments you have made. Please bear in mind that inflation will reduce what you can buy in the future.

Please read the important information below and the Key Features document for the relevant contract.

The performance figures are declared by Prudential Assurance Company Limited, usually each February.

For the Unitised returns shown, it is assumed that the contribution was invested without any allowance made for any explicit charges on 6 April 1, 3, 5 or 10 years ago and realised on or after 6 April 2017 to secure benefits

at normal retirement age. For the Cash Accumulation returns shown, it is assumed that 1, 3, 5 or 10 scheme revision dates ending after 15 March 2017 have passed since the contribution was invested.

Source: Prudential. *overall annualised returns

The value of your policy will be sent out in your annual statement or is available on request. The value will depend on when you actually invested allowing for tax, charges and smoothing. The value could change by more or less than the underlying investment return of the overall fund.

Past performance is not a reliable indicator of future performance.

Bonus Series 1 Year* 3 Years* 5 Years* 10 Years*

Unitised L With-Profits Returns 2.50% 5.65% 6.15% 4.90%

Unitised N With-Profits Returns 2.50% 5.65% 6.15% 4.90%

Cash Accumulation MPP With-Profits Returns 2.50% 5.65% 6.15% 4.90%

Cash Accumulation AVC With-Profits Returns 2.50% 5.65% 6.15% 4.90%

Page 2 of 2 Quarter ending 31 March 2017

Prudential Cash S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP Cash Fund. That fund invests in bothsecured (reverse repurchase agreements) andunsecured interest bearing deposits, as well asshort-term UK Government bonds and Certificates ofDeposit. It is actively managed against its benchmark, theLondon Interbank LIBID 7 Day Deposit rate.

Performance Objective: To outperform the benchmarkbefore charges on a rolling three year basis.

BenchmarkBenchmark London Interbank LIBID 7 Day Deposit RateABI Sector Deposit & Treasury

Identification CodesSedol Code 3168110Mex Code PUCAIsin Code GB0031681108Citi Code P269

Fund OverviewDaily price (21/07/2017) 153.10Fund size (31/05/2017) £97.08m

Underlying Fund size £214.15mNumber of holdings 5Launch date 06/04/2001

Fund Charges

Base Annual ManagementCharge (AMC)

Please refer to the"Fund Guide"

for your specificpension plan

Performance

Discrete performance - to latest available quarter end30/06/12

to30/06/13

30/06/13to

30/06/14

30/06/14to

30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund 0.4% 0.4% 0.5% 0.5% 0.1%Benchmark 0.4% 0.4% 0.4% 0.4% 0.1%

Performance - to latest available quarter endQuarter Annualised

22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund 0.0% 0.4% 0.4% 1.2%Benchmark 0.0% 0.3% 0.3% 1.1%

Prudential Risk Rating

Minimal RiskThese funds may invest in a combination of deposits, money market instruments and other interest bearingsecurities.

These risk ratings have been developed by Prudential to help provide an indication of a fund’s potential level of riskand reward based on the type of assets which may be held by the fund. Other companies may use differentdescriptions and as such these risk ratings should not be considered as generic across the fund managementindustry.

We regularly review our fund risk ratings, so they may change in the future. If, in our view, there is a materialchange in the fund's level of risk, for example due to a significant change to the assets held by the fund or in theway the fund is managed, we will provide information on the new risk rating. We recommend that you make sureyou 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.

Fund Managers

Name:Manager of the underlying fund for:

Prudential Capital17 years, 2 months

Important Information

Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.Please note if the total charges taken from your plan exceed the growth achieved, you will get back less than you originally invested.For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.

Prudential Cash S3

Portfolio data accurate as at: 31/05/17

Holdings

Name % Weight Sector Country1 CASH 100.00% Managed Funds Non-Classified

Asset Allocation

Other Assets 100.00%

Asset Allocation

Cash Deposit 70.00% Cash 30.00%

Equity Sector Breakdown

Non-Classified 100.00%

Regional Allocation


Top Country Breakdown



Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall. Please note if the total charges taken from your plan exceed the growthachieved, you will get back less than you originally invested.The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.Prudential is a trading name of Prudential Pensions Limited. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered inEngland and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated bythe Financial Conduct Authority and the Prudential Regulation Authority.

Prudential Cash S3

Performance comment

Performance as at Q1 2017 - During the first quarter of 2017, the performance of the fund was in line with its benchmark, the London Interbank LIBID 7 Day Deposit Rate.

The fund is primarily invested in reverse repurchase agreements (or ‘reverse repos’), which provide collateral (typically short-term gilts) against cash deposits made by the fund.As with short-term money market deposits, reverse repos are transacted with banks from M&G’s counterparty credit risk panel. At the end of this quarter, the fund’s assetsremain invested in reverse repos with a maturity of no more than one month.

This commentary reflects the general views of individual fund managers and should not be taken as a recommendation of advice as to how any specific market is likely to perform.Source: M&G Investments


Prudential is a trading name of Prudential Pensions Limited. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered inEngland and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated bythe Financial Conduct Authority and the Prudential Regulation Authority.

Prudential All Stocks Corporate Bond (previously known as CorporateBond) S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP All Stocks Corporate Bond Fund. That fundinvests mainly in high quality Sterling corporate bondsacross the range of maturities. The fund is activelymanaged against its benchmark, the iBoxx SterlingNon-Gilts Index. The fund may also hold UK governmentgilts and limited amounts of high yield and hedgednon-sterling corporate bonds. Derivative instruments maybe used for efficient portfolio fund management.

Performance Objective: To outperform the benchmark by0.80% a year (before charges) on a rolling three yearbasis.

BenchmarkBenchmark iBoxx Sterling Non-Gilts IndexABI Sector Sterling Corporate Bond

Identification CodesSedol Code 3168563Mex Code PUCBIsin Code GB0031685638Citi Code P270



Fund Charges




Performance


to30/06/13

30/06/13to

30/06/14

30/06/14to

30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund 7.8% 7.6% 6.9% 9.0% 7.0%Benchmark 6.5% 6.8% 6.5% 9.0% 5.3%


22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund 1.0% 7.6% 7.7% 7.7%Benchmark 0.5% 6.9% 6.8% 6.5%


Lower to Medium RiskThese funds may invest in corporate bonds or multi-asset strategies with a higher weighting in corporate bonds(and other comparable strategies).




Fund Managers


Jamie Hamilton16 years, 5 months


For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.



Top 10 Holdings

Name % Weight Sector Country1 5% Treasury Stock 2025 3.83% Bonds United Kingdom2 4¾% Treasury Gilt 2030 1.58% Bonds United Kingdom3 KREDITANST FUR WIE6% GTD SNR 07/12/28 GBP1000 1.38% Banks Germany4 EDF6% SNR EMTN 23/01/2114 GBP 1.19% Electricity France5 European Investment Bank 6% 2028 1.04% Banks Luxembourg6 4¼% Treasury Stock 2036 1.03% Bonds United Kingdom7 LEGAL & GENERAL GP5.5%-STP SUB 27/06/2064 GBP 0.99% Life Insurance United Kingdom8 MEXICO(UTD MEX ST)5.625% SNR MTN 19/03/14 GBP 0.92% Bonds Mexico9 EURO INV BANK5% SNR 15/04/2039 GBP1000 0.90% Banks Luxembourg

10 EURO INV BANK4.5% SNR 07/06/2029 GBP1000 0.89% Banks Luxembourg

Asset Allocation

International Bonds 42.18% UK Corporate Bonds 41.43% UK Gilts 9.31% Cash and Equivalents 8.78% Other Assets -1.70%

Bond Sector Breakdown

Basic Materials 0.86%

Consumer Goods 3.62%

Consumer Services 7.25%

Financials 37.29%

Health Care 1.34%

Industrials 7.02%

Oil & Gas 2.00%

Other Sectors 40.62%

Fixed Interest Quality Profile

BBB 27.33%

A 19.87%

AA 19.83%

AAA 9.87%

Sub-Investment Grade 2.98%

Unknown Quality 13.03%

Cash and Equivalents 8.78%

Other Asset Types -1.70%

Fixed Interest Currencies

Pound Sterling 89.42% Cash 8.78% Euro 2.75% US Dollar 0.75% Non-Fixed Interest Assets -1.70%

Regional Allocation

UK 50.73% Developed Europe - Excl UK 24.18% North America 13.00% Cash and Equivalents 8.78% Australia & New Zealand 1.84% South & Central America 1.61% Other Regions -0.15%


United Kingdom 50.73%

United States 12.58%


France 6.03%

Luxembourg 4.75%

Netherlands 4.68%

Germany 2.13%

Other Countries 10.31%

Fixed Interest Maturity Profile

> 15Yr Maturity 35.69%

5Yr - 10Yr Maturity 22.36%


< 5Yr Maturity 14.88%

Cash And Equivalents 8.78%

Unknown Maturity -1.70%


The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.Prudential is a trading name of Prudential Pensions Limited. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered inEngland and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated bythe Financial Conduct Authority and the Prudential Regulation Authority.


Performance comment

Performance as at Q1 2017 - Global economic data was surprisingly encouraging in the first quarter of 2017, providing a positive backdrop for riskier securities; credit spreadscontinued to tighten over the period even as government bond yields remained broadly unchanged. Political developments across the globe continued to dominate news, much thesame as we saw at the tail end of 2016.

The fund’s off-benchmark positions in US dollar-denominated credit and euro-denominated credit continued to perform strongly, as the manager de-risked and switched back intosterling equivalents where possible. The fund continued to benefit from being overweight financials, particularly the subordinated debt of insurance companies such as Legal andGeneral and AXA, which look attractive compared to other sectors within the index. A number of holdings added to performance during the quarter, with the key contributorsbeing overweight positions in Glencore and Tesco. The fund maintained a neutral interest rate duration position relative to the benchmark over the period.

The fund outperformed the benchmark during the first quarter.




Prudential Discretionary S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP Discretionary Fund. That fund provides amulti-asset approach to investment, holding a mix of UKand overseas company shares, bonds, property andcash via other M&G PP funds. It is actively managedagainst an internal composite benchmark asset allocationset by the Prudential Portfolio Management Group. It is a“fund of funds” where both active stock selection, withinthe underlying sector funds, and asset allocationdecisions are used to add value.

Performance Objective: To outperform the internalcomposite benchmark by 1.15%-1.40% a year (beforecharges) on a rolling three year basis.

Benchmark

Benchmark Internal composite benchmark, assetallocation set by the PPMGABI Sector Mixed Investment 40-85% Shares

Identification CodesSedol Code 3168574Mex Code PUDIsin Code GB0031685745Citi Code P271



Fund Charges




Performance


to30/06/13

30/06/13to

30/06/14

30/06/14to

30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund 15.5% 10.4% 6.4% 6.0% 22.3%Benchmark 14.3% 7.9% 6.3% 3.2% 15.7%


22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund 1.5% 11.3% 12.0% 7.4%Benchmark 1.2% 8.3% 9.4% 5.1%


Medium RiskThese funds may invest in multi-asset strategies with a higher weighting in equities, while funds investing mainly inproperty and, currently, government bonds (such as UK Gilts) are also in this category.




Fund Managers


Prudential Portfolio Management Group34 years, 3 months


Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. Therefore the figures shown until after this point in timemay be for the previous quarter.For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.



Top 10 Holdings

Name % Weight Sector Country1 BP 1.72% Oil & Gas Producers United Kingdom2 HSBC Holdings PLC (UK Reg) 1.43% Banks United Kingdom3 British American Tobacco 1.27% Tobacco United Kingdom4 Royal Dutch Shell B 1.04% Oil & Gas Producers United Kingdom5 Lloyds Banking Group 0.96% Banks United Kingdom6 AstraZeneca 0.83% Pharmaceuticals & Biotechnology United Kingdom7 Aviva 0.74% Life Insurance United Kingdom8 Roche Holding AG Part. Cert. 0.68% Pharmaceuticals & Biotechnology Switzerland9 GlaxoSmithKline 0.67% Pharmaceuticals & Biotechnology United Kingdom

10 Novartis AG 0.62% Pharmaceuticals & Biotechnology Switzerland

Asset Allocation

International Equities 51.15% UK Equities 31.35% Cash and Equivalents 4.16% International Bonds 2.76% Property 2.72% UK Gilts 1.87% Other Assets 5.99%





Financials 19.14%

Health Care 8.19%

Industrials 12.57%

Oil & Gas 6.31%


Breakdown By Market Cap (%)

Mega 44.97%

Large 16.39%

Medium 14.83%

Small 3.60%

Micro 1.55%


Bonds 4.98%

Cash 4.16%

Regional Allocation

UK 33.57% Developed Europe - Excl UK 17.94% North America 16.65% Japan 10.63% Cash and Equivalents 4.16% Emerging Asia 3.85% Other Regions 13.21%




Japan 10.63%


Germany 3.64%


France 2.94%



Non-Fixed Interest Assets 90.86% Cash 4.16% Pound Sterling 2.50% US Dollar 0.62% Euro 0.50% Yen 0.49% Other Currencies 0.87%


Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall. Please note the performance figures for this fund's benchmark are not availableuntil around week 3 after a quarter end. Therefore the figures shown until after this point in time may be for the previous quarter.The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.Prudential is a trading name of Prudential Pensions Limited. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered inEngland and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated bythe Financial Conduct Authority and the Prudential Regulation Authority.


Performance comment

Performance as at Q1 2017 - While the Discretionary Fund is moving to its new internal asset allocation benchmark, the fund outperformed both the ABI benchmark and the internalbenchmark for a second quarter. Amid signs of continuing growth in the global economy and greater inflationary pressures, equities performed better than bonds during thequarter.

In terms of equities, the fund’s performance was helped by positive stock selection in the UK and Pacific markets, with the remaining overseas markets lagging their respectivebenchmarks slightly.

Meanwhile, although the absolute return for bonds lagged that of equities, stock selection was generally positive across bond funds in the portfolio.

The fund’s new asset allocation benchmark has a reduced equity weighting and an increased bond and property weighting, compared to the fund’s current positioning. However,once the fund manager has completed the repositioning of the portfolio, the fund is still expected to retain an above-index presence in equities and a below-index position in bondsand property.

Within the portfolio, this move is likely to result in a reduced exposure to US, European and UK equities and a correspondingly greater presence in Asian equities, property andbonds.

Global growth remains positive, with the US and UK economies progressing well, while Europe is showing a more broad-based recovery than previously. China too seems to beholding up well. Notwithstanding this favourable environment, investor sentiment remains vulnerable to political risk, most notably a number of elections in Europe this year, theBrexit negotiations and geopolitical tension in Asia.




Prudential Fixed Interest S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP Fixed Interest Fund. That fund investsmainly in UK government gilts. The fund is activelymanaged against its benchmark, the FTSE Actuaries UKConventional Gilts All Stocks Index. The fund can alsoinvest in overseas government bonds and corporatebonds issued by UK and overseas companies andinstitutions. Exposure to short-term exchange ratemovements from any overseas holdings is mitigated byhedging.


Benchmark

Benchmark FTSE Actuaries UK Conventional Gilts AllStocks IndexABI Sector Sterling Fixed Interest

Identification CodesSedol Code 3168585Mex Code PUFITIsin Code GB0031685851Citi Code P272



Fund Charges




Performance


to30/06/13

30/06/13to

30/06/14

30/06/14to

30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund -2.0% 2.7% 9.4% 13.7% -0.2%Benchmark -2.4% 2.3% 8.9% 13.5% -0.9%


22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund -0.9% 7.5% 4.6% 7.1%Benchmark -1.3% 7.0% 4.1% 6.5%






Fund Managers


Miles Tym4 years, 9 months


For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source: FTSE International Limited (“FTSE”) © FTSE 2015. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limitedunder licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions inthe FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.



Top 10 Holdings

Name % Weight Sector Country1 1¾% Treasury Gilt 2019 22.61% Bonds United Kingdom2 1¾% Treasury Gilt 2037 16.40% Bonds United Kingdom3 1½% Treasury Gilt 2047 14.11% Bonds United Kingdom4 4¼% Treasury Stock 2032 11.40% Bonds United Kingdom5 ⅛% Index-linked Treasury Gilt 2019 10.61% Bonds United Kingdom6 1 3/4 Treasury 2057 10.21% Bonds United Kingdom7 ½% Treasury Gilt 2022 8.93% Bonds United Kingdom8 1½% Treasury Gilt 2026 7.28% Bonds United Kingdom9 4¼% Treasury Gilt 2039 2.00% Bonds United Kingdom

10 LEGAL & GENERAL GP5.5%-STP SUB 27/06/2064 GBP 0.80% Life Insurance United Kingdom

Asset Allocation

UK Gilts 103.71% Cash and Equivalents 2.15% UK Corporate Bonds 0.80% Other Assets -6.65%


Financials 0.80%

Government 103.71%

Non-Classified -6.65%



AA 103.71%

BBB 0.80%


Other Asset Types -6.65%


Pound Sterling 104.50% Cash 2.15% Non-Fixed Interest Assets -6.65%

Regional Allocation

UK 104.50% Cash and Equivalents 2.15% Non-Classified -6.65%




Non-Classified -6.65%






Unknown Maturity -6.65%




Performance comment

Performance as at Q1 2017 - During the quarter, the fund manager opened a tactical short duration position in UK government bonds (gilts). This has contributed negatively to thefund’s performance. However, this position is expected to be supported going forward as central bank bond-buying programmes end, along with increased gilt issuance.

The manager added further exposure to gilts maturing in 30 years which he believes offered better relative value than shorter and longer dated issues. The manager increasedthe size of this position as these securities continued to cheapen during the course of the quarter.

The overweight versus benchmark position in gilts maturing in 10 years being held against shorter and longer dated gilts was closed. The 10-year part of the yield curve hadnormalised after cheapening significantly.




Prudential Global Equity S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP Global Equity Fund. That fund provides anall equity approach to investment, holding a 70% UKequity and 30% mix of overseas company shares, viaother M&G PP funds. For the overseas shares it isactively managed against an internal compositebenchmark asset allocation set by the Prudential PortfolioManagement Group. It is a “fund of funds” where bothactive stock selection, within the underlying sectorfunds, and asset allocation decisions are used to addvalue.

Performance Objective: To outperform the internalcomposite benchmark by 1.0% a year (before charges)on a rolling three year basis.

Benchmark

Benchmark Internal composite benchmark, assetallocation set by the PPMGABI Sector Global Equities

Identification CodesSedol Code 3168596Mex Code PUGLEIsin Code GB0031685968Citi Code P273



Fund Charges




Performance


to30/06/13

30/06/13to

30/06/14

30/06/14to

30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund 19.7% 12.0% 5.7% 2.4% 23.9%Sector 21.6% 9.6% 8.5% 6.5% 24.0%Rank 333/722 214/755 668/797 703/846 558/883Quartile 2 2 4 4 3


22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund 1.8% 10.3% 12.4% 7.0%Sector 1.5% 12.7% 13.8% 6.9%Rank 345/901 716/797 582/722 333/468Quartile 2 4 4 3


Medium to Higher RiskThese funds offer a diverse geographical spread of equity investment. The funds within this category will havegreater overseas exposure and underlying volatility than the "medium" sector.




Fund Managers




Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source: FTSE International Limited (“FTSE”) © FTSE 2015. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limitedunder licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions inthe FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCIdata may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced byMSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not berelied on as such.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.



Top 10 Holdings

Name % Weight Sector Country1 BP 3.52% Oil & Gas Producers United Kingdom2 HSBC Holdings PLC (UK Reg) 2.85% Banks United Kingdom3 British American Tobacco 2.67% Tobacco United Kingdom4 Royal Dutch Shell B 2.11% Oil & Gas Producers United Kingdom5 Lloyds Banking Group 1.94% Banks United Kingdom6 AstraZeneca 1.70% Pharmaceuticals & Biotechnology United Kingdom7 Aviva 1.50% Life Insurance United Kingdom8 GlaxoSmithKline 1.36% Pharmaceuticals & Biotechnology United Kingdom9 Rio Tinto 1.25% Mining United Kingdom

10 Vodafone Group 1.11% Mobile Telecommunications United Kingdom

Asset Allocation

UK Equities 63.64% International Equities 32.60% Cash and Equivalents 1.45% Property 1.38% Investment Trusts 0.67% Alternative Trading Strategies 0.00% Other Assets 0.27%





Financials 23.43%

Health Care 9.11%

Industrials 14.75%

Oil & Gas 9.03%



Mega 48.52%

Large 17.92%

Medium 19.75%

Small 6.34%

Micro 3.10%


Cash 1.45%

Regional Allocation

UK 63.64% Developed Europe - Excl UK 10.45% North America 8.61% Emerging Asia 4.98% Japan 3.42% Developed Asia 2.38% Other Regions 6.53%



United States 7.62%

Japan 3.42%

Ireland 2.26%

Australia 2.01%

Hong Kong 1.83%

Germany 1.79%



Non-Fixed Interest Assets 98.08% Cash 1.92%


Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.Prudential is a trading name of Prudential Pensions Limited. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered inEngland and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated bythe Financial Conduct Authority and the Prudential Regulation Authority.


Performance comment

Performance as at Q1 2017 - The global economy continues to show signs of growth and inflationary pressures are starting to increase. In this environment, investors werebroadly confident and equities performed well over the quarter.

The fund was broadly in line with the benchmark; stock selection in the UK equity component of the fund was positive, while the relatively small exposure to the Pacific Basin alsoadded value on the back of a weaker US dollar and signs of encouraging economic growth.

The underlying European fund was behind its index as stock selection held back returns. Meanwhile, asset allocation in this fund was broadly neutral; a below-index position infinancials was helpful, although a relatively large presence in oil detracted from performance.

Meanwhile, the US, Japanese and emerging markets were also behind their respective benchmarks.

The fund is transitioning to its new overseas equity benchmark and the fund manager aims to achieve this in the most efficient and cost-effective manner.

Prospects for the global economy remain fairly encouraging, while inflationary pressures are increasing in many markets, most notably the US, UK and Europe. At the same time,political risk is at the front of many investors’ minds, with elections due in France, the UK and Germany this year. Furthermore, there remains considerable uncertainty about Brexitnegotiations.

Investors’ initial euphoria following the election of President Trump in the US has been tempered somewhat in the wake of his failure thus far to implement significant healthreforms; there appears to be reduced confidence in the new president’s ability to pass anticipated tax reforms.




Prudential Index-Linked S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP Index-Linked Fund. That fund investsmainly in UK Government index-linked gilts, typically withover five years to maturity. The fund is actively managedagainst its benchmark, the FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index. The fund can alsoinvest in corporate bonds, overseas government bondsand fixed interest gilts. Exposure to short-term exchangerate movements from any overseas holdings is mitigatedby hedging.


Benchmark

Benchmark FTSE Actuaries UK Index-Linked Gilts Over5 Years IndexABI Sector UK Index-linked Gilts

Identification CodesSedol Code 3168604Mex Code PUILIsin Code GB0031686040Citi Code P275



Fund Charges




Performance


to30/06/13

30/06/13to

30/06/14

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30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund 3.4% 5.1% 15.9% 18.4% 7.4%Benchmark 2.7% 4.3% 15.8% 17.0% 7.1%


22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund -2.5% 13.8% 9.9% 10.6%Benchmark -2.4% 13.2% 9.2% 9.7%






Fund Managers


Miles Tym4 years, 9 months


For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source: FTSE International Limited (“FTSE”) © FTSE 2015. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limitedunder licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions inthe FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.



Top 10 Holdings

Name % Weight Sector Country1 1¼% Index-linked Treasury Gilt 2032 19.86% Bonds United Kingdom2 ⅛ I-L Treasury 2065 16.33% Bonds United Kingdom3 ⅜% Index-linked Treasury Gilt 2062 13.27% Bonds United Kingdom4 ⅛% Index-linked Treasury Gilt 2029 10.85% Bonds United Kingdom5 2% Index-linked Treasury Stock 2035 9.28% Bonds United Kingdom6 1¼% Index-linked Treasury Gilt 2017 8.17% Bonds United Kingdom7 1¼% Index-linked Treasury Gilt 2055 7.88% Bonds United Kingdom8 ½% Index-linked Treasury Gilt 2050 4.48% Bonds United Kingdom9 ⅛% Index-linked Treasury Gilt 2036 2.29% Bonds United Kingdom

10 2½% Index-linked Treasury Stock 2024 2.16% Bonds United Kingdom

Asset Allocation

UK Gilts 96.86% Cash and Equivalents 3.14%


Government 96.86%



AA 96.86%



Pound Sterling 96.86% Cash 3.14%

Regional Allocation

UK 96.86% Cash and Equivalents 3.14%













Performance comment

Performance as at Q1 2017 - During the quarter, the manager opened and later closed an overweight position in 50-year conventional UK government bonds (gilts) versus 50-yearindex-linked gilts. This contributed to the bulk of the fund’s outperformance over the quarter.

The manager opened a tactical short duration position, using 10-year futures, as the market had become increasingly overvalued. This position detracted from the performance ofthe fund.




Prudential International Equity S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP International Equity Fund. That fundinvests, via other M&G PP funds, in the shares ofoverseas companies. It is actively managed against aninternal composite benchmark asset allocation set by thePrudential Portfolio Management Group. It is a “fund offunds” where both active stock selection, within theunderlying sector funds, and asset allocation decisionsare used to add value.

Performance Objective: To outperform the internalcomposite benchmark by 1.0% a year (before charges)on a rolling three year basis.

Benchmark

Benchmark Internal composite benchmark, assetallocation set by the PPMGABI Sector Global Equities

Identification CodesSedol Code 3168626Mex Code PUINEIsin Code GB0031686263Citi Code P279



Fund Charges




Performance


to30/06/13

30/06/13to

30/06/14

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30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund 22.7% 11.0% 8.8% 10.7% 28.3%Benchmark 23.1% 9.0% 9.9% 11.6% 26.0%


22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund 1.6% 15.6% 16.1% 8.9%Benchmark 1.9% 15.6% 15.7% 8.4%






Fund Managers


Prudential Portfolio Management Group36 years, 3 monthsImportant Information

Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.Please note the performance figures for this fund's benchmark are not available until around week 3 after a quarter end. Therefore the figures shown until after this point in timemay be for the previous quarter.For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source: FTSE International Limited (“FTSE”) © FTSE 2015. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limitedunder licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions inthe FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCIdata may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced byMSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not berelied on as such.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.



Top 10 Holdings

Name % Weight Sector Country1 Apple 1.45% Technology Hardware & Equipment United States2 Roche Holding AG Part. Cert. 1.28% Pharmaceuticals & Biotechnology Switzerland3 Microsoft Corp. 1.23% Software & Computer Services United States4 Novartis AG 1.15% Pharmaceuticals & Biotechnology Switzerland5 Nestle S.A. 0.92% Food Producers Switzerland6 Bayer AG 0.90% Chemicals Germany7 Sanofi 0.84% Pharmaceuticals & Biotechnology France8 JPMorgan Chase & Co. 0.83% Banks United States9 Siemens AG 0.81% General Industrials Germany

10 Exxon Mobil Corp. 0.79% Oil & Gas Producers United States

Asset Allocation

International Equities 97.68% Cash and Equivalents 1.44% Property 0.50% UK Equities 0.31% Alternative Trading Strategies 0.00% Other Assets 0.07%





Financials 21.98%

Health Care 10.43%

Industrials 14.25%

Oil & Gas 5.73%



Mega 62.23%

Large 19.80%

Medium 12.42%

Small 1.09%


Cash 1.44%

Regional Allocation

North America 38.80% Developed Europe - Excl UK 30.47% Japan 16.05% Emerging Asia 6.22% Developed Asia 2.70% Australia & New Zealand 1.63% Other Regions 4.12%



Japan 16.05%

Germany 6.47%

France 5.25%

Switzerland 5.19%

Netherlands 3.50%

South Korea 2.27%



Non-Fixed Interest Assets 98.70% Cash 1.29% Euro 0.01%


Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall. Please note the performance figures for this fund's benchmark are not availableuntil around week 3 after a quarter end. Therefore the figures shown until after this point in time may be for the previous quarter.The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.Prudential is a trading name of Prudential Pensions Limited. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered inEngland and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated bythe Financial Conduct Authority and the Prudential Regulation Authority.


Performance comment

Performance as at Q1 2017 - Against a backdrop of sustained growth in the global economy and generally positive investor sentiment, equity markets made solid gains over thequarter. In this environment, the fund was behind its new internal benchmark.

Stockpicking in the underlying Pacific Market fund was beneficial for performance, while this market also produced one of the strongest returns in absolute terms, aided by theweaker US dollar and solid economic growth. Meanwhile, in the underlying US fund, stock selection in industrials, information technology and energy detracted from relativeperformance. However, the allocation to healthcare contributed to performance over the quarter.

Although all of the underlying funds produced positive absolute returns, all but the Pacific Market lagged the returns of their respective benchmarks.

The fund is transitioning to its new overseas equity benchmark and the fund manager aims to achieve this in the most efficient and cost-effective manner.

The outlook appears reasonably positive on the economic front: the US and other major economies, including Europe, are growing at a reasonable pace. Investor sentimentregarding US equities has modified from the euphoria following Donald Trump’s election as president in light of questions emerging regarding his ability to pass significant economicreforms. Nevertheless, the US remains a stable and growing economy.

Against this favourable economic backdrop, a number of political factors may lead to greater investor caution and volatility: Europe is facing significant elections in France andGermany, while investors will also be watching the Brexit negotiations closely. Furthermore, any further tensions concerning North Korea and its relations with major militarypowers could also affect sentiment.




Prudential Long Term Growth Passive S3

AimsThe investment strategy of the fund is to purchase unitsin the M&G PP Long Term Growth Passive Fund. Thatfund invests, via other M&G PP funds, in the shares ofcompanies around the world against a benchmark of50% UK and 50% overseas (in fixed proportionsreflecting each region’s economic importance). It is a“fund of funds” and both the proportions invested ineach region and investments in each region arepassively managed except for emerging markets whichare actively managed. The split between the UK andoverseas regions may be reviewed from time to time.

Performance Objective: To match the performance of thebenchmark as closely as possible.

BenchmarkBenchmark Mix of FTSE and MSCI regional indicesABI Sector Global Equities

Identification CodesSedol Code 3168637Mex Code PULTGRIsin Code GB0031686370Citi Code P280



Fund Charges




Performance


to30/06/13

30/06/13to

30/06/14

30/06/14to

30/06/15

30/06/15to

30/06/16

30/06/16to

30/06/17Fund 20.4% 11.6% 4.7% 5.8% 22.4%Sector 21.6% 9.6% 8.5% 6.5% 24.0%Rank 586/722 246/755 711/797 485/846 652/883Quartile 4 2 4 3 3


22017

3 Years to30/06/17

5 Years to30/06/17

10 Years to30/06/17

Fund 1.6% 10.7% 12.7% 7.0%Sector 1.5% 12.7% 13.8% 6.9%Rank 392/901 671/797 605/722 329/468Quartile 2 4 4 3






Fund Managers




Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.For some funds, there is a short time-lag between a policyholder investing his money, the money passing through the accounting system and then buying the underlyinginvestments. This time-lag or “dealing cycle” is not factored in to performance of the Prudential fund. You may therefore see a difference between the Prudential fund’sperformance and that of any underlying fund it invests in to.Source: FTSE International Limited (“FTSE”) © FTSE 2015. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limitedunder licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions inthe FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCIdata may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced byMSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not berelied on as such.Source of portfolio data: FundsLibrary. Source of performance data: Financial Express (FE). Please remember that past performance is not a reliable indicator of futureperformance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. The application of charges mayimpact the overall performance. Please also note that our charges may vary in the future and may be higher than they are now. Fund Performance is based upon the movement ofthe 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 and you may not get back the amountyou put in.This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential groupedpersonal 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 providedfor 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 beappreciated that neither FundsLibrary, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regardingresults from its usage.



Top 10 Holdings

Name % Weight Sector Country1 HSBC Holdings PLC (UK Reg) 2.80% Banks United Kingdom2 British American Tobacco 2.11% Tobacco United Kingdom3 Royal Dutch Shell A 1.84% Oil & Gas Producers United Kingdom4 BP 1.82% Oil & Gas Producers United Kingdom5 Royal Dutch Shell B 1.73% Oil & Gas Producers United Kingdom6 GlaxoSmithKline 1.72% Pharmaceuticals & Biotechnology United Kingdom7 AstraZeneca 1.35% Pharmaceuticals & Biotechnology United Kingdom8 Vodafone Group 1.27% Mobile Telecommunications United Kingdom9 Diageo 1.20% Beverages United Kingdom

10 Unilever 1.07% Personal Goods United Kingdom

Asset Allocation

International Equities 49.34% UK Equities 44.89% Investment Trusts 2.15% Property 1.82% Cash and Equivalents 0.81% International Bonds 0.01% Other Assets 0.98%





Financials 24.33%

Health Care 9.21%

Industrials 12.77%

Oil & Gas 7.79%



Mega 56.11%

Large 23.29%

Medium 12.40%

Small 1.94%

Micro 0.18%


Bonds 0.01%

Cash 0.81%

Regional Allocation

UK 44.89% Developed Europe - Excl UK 19.32% North America 11.22% Japan 7.10% Emerging Asia 5.59% Non-Classified 3.13% Other Regions 8.74%




Japan 7.10%

Germany 3.75%

France 3.58%

Switzerland 3.53%




Non-Fixed Interest Assets 99.19% Cash 0.81% US Dollar 0.01%


Exchange rate fluctuations may cause the Sterling values of overseas investments to rise or fall.The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.Prudential is a trading name of Prudential Pensions Limited. This name is also used by other companies within the Prudential Group. Prudential Pensions Limited is registered inEngland and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated bythe Financial Conduct Authority and the Prudential Regulation Authority.


Performance comment

Performance as at Q1 2017 - While political events, such as the UK’s first steps on the road to Brexit, approaching elections in Europe and President Trump’s attempts to meetcampaign promises dominated headlines, global economic data continued to improve. Investors were encouraged by higher company profits and some significant takeover activity,prompting several major stockmarket indices to hit all-time highs, notably in the US and UK. For much of the quarter, sentiment was supported by hopes that President Trump wouldintroduce policies designed to stimulate growth, such as lower taxes, even though the prospect of such moves faded later.

The prospect of protracted Brexit negotiations weighed on the pound, which boosted the value of the many multinational companies represented in the UK’s FTSE 100. Thispushed the index to record highs.

US stockmarket indices hit successive record highs as well, but the rally stalled towards the end of the quarter, as doubts began to build over the new president’s ability to deliveron his pledges, especially as he was forced to abandon his attempts to reform healthcare. Technology companies were among the market leaders, which helped the technology-dominated Nasdaq Index to outperform.

Although th

prudential with-profits fund · 2017. 7. 26. · btbq00068 03_2017 with-profits bonus series...

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