Prudential UK Smaller Companies S3

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

Performance

Discrete performance - to latest available quarter end

31/03/19
to
31/03/20
31/03/20
to
31/03/21
31/03/21
to
31/03/22
31/03/22
to
31/03/23
31/03/23
to
31/03/24
Fund -21.9% 81.0% -2.7% -13.5% 6.9%
Benchmark -24.4% 74.9% 5.5% -12.9% 11.0%

Performance - to latest available quarter end

Quarter Annualised
1
2024
3 Years to
31/03/24
5 Years to
31/03/24
10 Years to
31/03/24
Fund 1.3% -3.5% 4.9% 7.5%
Benchmark -1.0% 0.7% 6.2% 5.5%

Top 10 Holdings

Stock % Weight
LSL PROPERTY SERVICES 3.39
TT ELECTRONICS 2.90
WICKES GROUP 2.85
SABRE INSURANCE GROUP 2.79
PRS REIT Plc PRS REIT Plc ORD GBP0.01 2.76
HELICAL 2.60
SEVERFIELD 2.54
FORESIGHT GROUP HLDGS LTD 2.51
POLAR CAPITAL HOLDINGS PLC. 2.38
WILMINGTON 2.38
Total 27.10

Fund Aims

Objective: The investment strategy of the fund is to purchase units in the M&G PP UK Smaller Companies Fund - the underlying fund.

Underlying Fund Objective: The fund invests in the shares of smaller UK companies outside the FTSE 350 Index. The fund is actively managed against its benchmark, the FTSE Smaller Companies (ex-Investment Trusts) Index. The fund manager adopts a medium-term time horizon and focuses on identifying higher quality companies which, we believe, are under-valued due to pricing inefficiencies in the small cap market. This is backed up with detailed fundamental research to form an exclusively bottom-up stock-picking investment process.

Performance Objective: To outperform the benchmark by 2.0% a year (before charges) on a rolling three year basis.

Fund Manager

Matthew Cable manager of the underlying fund for 9 years and 9 months

Photo of Matthew Cable Matthew Cable was appointed deputy fund manager of the M&G Smaller Companies Fund in March 2013. He joined M&G in 2007 and worked in several strategic and commercial roles before becoming a dedicated analyst in the smaller companies team in 2011. Matthew has a degree in natural sciences from Cambridge University and is a CFA charterholder.

Fund Overview

Daily price (12/06/2024) 923.50
Fund size (30/04/2024) £22.09m
Underlying Fund size £34.03m
Number of holdings 60
Annual Management Charge (AMC) Please refer to the "Fund Guide"
for your specific pension plan
Launch date 06/04/2001

Asset Allocation

pie chart
  UK Equities 89.27%
  Property 7.55%
  Cash and Equivalents 1.97%
  International Equities 1.21%

Commentary

Performance as at Q1 2024 - The UK stockmarket made a positive start to the year, although sentiment was held back by the lacklustre economic outlook. Larger companies led the way, with mid and small-cap stocks trailing. The fund was ahead of the benchmark, supported by stock selection and sector allocation, with above-benchmark positions in industrials and technology adding value. Stock picks in financials and basic materials more than offset selection in industrials, which hurt. Not holding Vanquis Banking Group was beneficial for the fund, as the company issued a profit warning. A position in Alfa Financial Software also added value on the back of stronger demand for technology stocks. Other contributors included specialty chemicals firm Elementis due to better trading as well as bid speculation. In terms of detractors, Regional REIT was weak as the property company needs to refinance its debt and is exploring its options, which may include an equity raising. Tool hire business Speedy Hire also cost some performance as wet weather and a weaker UK construction market had an impact on trading. We sold logistics firm Wincanton following a takeover approach. Building firm Kier and leisure firm Hollywood Bowl left the benchmark and we reduced our exposure. Digital transformation company Kin and Carta received a takeover bid and we closed the position. We started new positions in global distribution business Essentra, brick manufacturer Ibstock and XP Power, which designs and manufactures products to go into high voltage products. Shares in Essentra have been hurt by weak manufacturing PMIs over the past 18 months and we feel there is an opportunity for a recovery in its revenues and profit margins. In our view, Ibstock stands to benefit from a housing recovery, while we think XP Power will gain as its end markets stabilise. We added a position in FDM as it entered the benchmark. Following a very strong finish to 2023, the UK stockmarket has had a more measured start to 2024. Whilst the rhetoric for interest rates remains one of ‘higher for longer’, material reductions in the rate of inflation and improving PMIs have led to a noticeably less cautious tone from UK businesses. This gives us confidence that we should start to see a recovery in earnings during 2024, albeit companies still expect this to be weighted to the second half of the year. In our view, the valuation of UK-listed companies remains highly attractive, particularly for small and medium size companies.

Source: M&G

Important Information

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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2023. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

Source of portfolio data: Broadridge. Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of fund charges and further costs, but take no account of any Annual Management Charge paid for by the deduction of units. Charges and further costs may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with gross income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

Portfolio data accurate as at:

Asset Allocation

pie chart
  UK Equities 89.27%
  Property 7.55%
  Cash and Equivalents 1.97%
  International Equities 1.21%

Equity Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Industrials 32.46% - - -
 
Industrial Goods & Services - 21.28% - -
 
Industrial Support Services - - 14.75% -
 
Professional Business Support Services - - - 6.85%
 
Business Training & Employment Agencies - - - 4.47%
 
Transaction Processing Services - - - 1.87%
 
Industrial Suppliers - - - 1.56%
 
Electronic & Electrical Equipment - - 3.55% -
 
Electrical Components - - - 3.55%
 
Industrial Engineering - - 1.56% -
 
Machinery: Industrial - - - 1.56%
 
Aerospace & Defence - - 1.43% -
 
Defense - - - 1.43%
 
Construction & Materials - 11.19% - -
 
Construction & Materials - - 11.19% -
 
Engineering & Contracting Services - - - 4.52%
 
Building Materials: Other - - - 3.66%
 
Construction - - - 1.55%
 
Cement - - - 1.46%
 
Consumer Discretionary 20.37% - - -
 
Media - 6.67% - -
 
Media - - 6.67% -
 
Media Agencies - - - 3.44%
 
Publishing - - - 3.24%
 
Retail - 5.61% - -
 
Retailers - - 5.61% -
 
Home Improvement Retailers - - - 3.84%
 
Specialty Retailers - - - 1.77%
 
Travel & Leisure - 5.17% - -
 
Travel & Leisure - - 5.17% -
 
Restaurants & Bars - - - 3.21%
 
Recreational Services - - - 1.97%
 
Consumer Products & Services - 1.72% - -
 
Household Goods & Home Construction - - 1.72% -
 
Home Construction - - - 1.72%
 
Automobiles & Parts - 1.19% - -
 
Automobiles & Parts - - 1.19% -
 
Auto Parts - - - 1.19%
 
Real Estate 17.06% - - -
 
Real Estate - 17.06% - -
 
Real Estate Investment Trusts - - 13.67% -
 
Office REITs - - - 6.12%
 
Residential REITs - - - 3.14%
 
Diversified REITs - - - 2.33%
 
Retail REITs - - - 2.07%
 
Real Estate Investment & Services - - 3.39% -
 
Real Estate Services - - - 3.39%
 
Financials 13.02% - - -
 
Financial Services - 10.23% - -
 
Investment Banking & Brokerage Services - - 8.80% -
 
Asset Managers & Custodians - - - 5.51%
 
Investment Services - - - 2.16%
 
Diversified Financial Services - - - 1.14%
 
Finance & Credit Services - - 1.43% -
 
Mortgage Finance - - - 1.43%
 
Insurance - 2.79% - -
 
Non-life Insurance - - 2.79% -
 
Property & Casualty Insurance - - - 2.79%
 
Technology 9.53% - - -
 
Technology - 9.53% - -
 
Software & Computer Services - - 6.63% -
 
Software - - - 3.86%
 
Computer Services - - - 2.77%
 
Technology Hardware & Equipment - - 2.90% -
 
Electronic Components - - - 2.90%
 
Basic Materials 3.37% - - -
 
Chemicals - 3.37% - -
 
Chemicals - - 3.37% -
 
Chemicals: Diversified - - - 3.37%
 
Energy 2.22% - - -
 
Energy - 2.22% - -
 
Non-Renewable Energy - - 2.22% -
 
Oil: Crude Producers - - - 1.19%
 
Oil Equipment & Services - - - 1.03%
 
Cash and Equivalents 1.97% - - -

Regional Allocation

pie chart
  UK 89.27%
  Property 7.55%
  Cash and Equivalents 1.97%
  Developed Asia 1.21%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 89.27% -
 
United Kingdom - 89.27%
 
Property 7.55% -
 
Cash and Equivalents 1.97% -
 
Developed Asia 1.21% -
 
Singapore - 1.21%

Breakdown By Market Cap (%)

Medium
 
 
4.95%
Small
 
 
68.49%
Micro
 
 
23.45%
Non-Classified
 
 
1.14%
Cash
 
 
1.97%

Top 10 Holdings

Stock % Weight Sector Country
1 LSL PROPERTY SERVICES 3.39% Real Estate Investment & Services United Kingdom
2 TT ELECTRONICS 2.90% Technology Hardware & Equipment United Kingdom
3 WICKES GROUP 2.85% Retailers United Kingdom
4 SABRE INSURANCE GROUP 2.79% Non-life Insurance United Kingdom
5 PRS REIT Plc PRS REIT Plc ORD GBP0.01 2.76% Real Estate Investment Trusts Direct Property and REITs
6 HELICAL 2.60% Real Estate Investment Trusts United Kingdom
7 SEVERFIELD 2.54% Construction & Materials United Kingdom
8 FORESIGHT GROUP HLDGS LTD 2.51% Investment Banking & Brokerage Services United Kingdom
9 POLAR CAPITAL HOLDINGS PLC. 2.38% Investment Banking & Brokerage Services United Kingdom
10 WILMINGTON 2.38% Media United Kingdom

Dual Aspect Equity Analysis

UK Equities Int'l Equities UK Bonds Int'l Bonds UK Gilts Property Other Cash & Equiv Total
Technology 9.53% - - - - - - - 9.53%
Financials 13.02% - - - - - - - 13.02%
Real Estate 9.51% - - - - 7.55% - - 17.06%
Consumer Discretionary 20.37% - - - - - - - 20.37%
Energy 2.22% - - - - - - - 2.22%
Industrials 31.25% 1.21% - - - - - - 32.46%
Basic Materials 3.37% - - - - - - - 3.37%
Cash and Equivalents - - - - - - - 1.97% 1.97%

Important Information

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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2023. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

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 3169469
Mex Code PUKS
Isin Code GB0031694697
Citi Code P288

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 UK Smaller Companies Fund - the underlying fund. Underlying Fund Objective: The fund invests in the shares of smaller UK companies outside the FTSE 350 Index. The fund is actively managed against its benchmark, the FTSE Smaller Companies (ex-Investment Trusts) Index. The fund manager adopts a medium-term time horizon and focuses on identifying higher quality companies which, we believe, are under-valued due to pricing inefficiencies in the small cap market. This is backed up with detailed fundamental research to form an exclusively bottom-up stock-picking investment process. Performance Objective: To outperform the benchmark by 2.0% a year (before charges) on a rolling three year basis.
Benchmark FTSE Smaller Companies (ex-Investment Trusts) Index
Sector ABI UK Smaller Companies

Important Information

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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2023. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

Charges and further costs may vary in the future and may be higher than they are now.

This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

Risk Analysis

Ratio Value
Alpha 1.30
Beta 0.94
Sharpe -0.01
Standard Deviation 15.85
Info Ratio 0.25

Risk Factors

Risk Factor Yes / No
Charges to Capital Yes
Emerging Markets No
Concentrated Portfolio No
Smaller Companies No
High Yield Bonds No
Sector Specific Yes
Geared Investments No
Value of Investments Yes
Investments Long Term Yes
Property No
Exchange Rate No
Higher Risk No
Performance Charges No
Derivative Exposure No
Offshore No
Income Eroding Capital Growth No
Umbrella Liabilities No
New Fund No
Solvency of Depository No
Solvency of Bond Issuers No
Ethical Restrictions No
Liquidity No
Returns Are Not Guaranteed Yes
Inflation Yes
Taxation and Tax Relief Yes

Fund Specific Risks

Charges to Capital

Part, or all of the periodic annual management fee(s) and expenses may be charged to capital which could increase the potential for the capital value of your investment to be eroded. Your capital could also decrease if income withdrawals exceed the growth rate of the fund(s).

Sector Specific

The fund invests in specific sectors. Funds which invest in specific sectors may carry more risk than those spread across a number of different sectors. They may assume higher risk, as markets/sectors can be more volatile. In particular, gold, technology funds and other focused funds can suffer as the underlying stocks can be more volatile and less liquid.

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.

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

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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2023. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

The risk factor definitions are provided by Broadridge. These definitions may differ from those of Prudential or any underlying fund manager. The data itself is provided by Prudential or the underlying fund manager.

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

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

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

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

Higher Risk

These are specialist equity funds that focus on set geographical regions or a particular type of share e.g. shares of smaller companies or those that conform to certain criteria.

Help

Important Information

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

Important Information

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: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2023. FTSE Russell is a trading name of certain of the LSE Group companies. e.g., “FTSE®” “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®, The Yield Book®,” are a trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of fund charges and further costs, but take no account of any Annual Management Charge paid for by the deduction of units. Charges and further costs may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with gross income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.

This factsheet is intended for the advisers of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. You should refer to your client's scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this infomation or make any warranties regarding results from its usage.

Prudential is a trading name of Prudential Pensions Limited. Prudential Pensions Limited is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 992726. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.