Prudential UK Smaller Companies S3

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

Performance

Discrete performance - to latest available quarter end

31/12/18
to
31/12/19
31/12/19
to
31/12/20
31/12/20
to
31/12/21
31/12/21
to
31/12/22
31/12/22
to
31/12/23
Fund 28.0% 1.9% 33.2% -25.1% 4.2%
Benchmark 17.7% 1.7% 31.3% -17.3% 10.4%

Performance - to latest available quarter end

Quarter Annualised
4
2023
3 Years to
31/12/23
5 Years to
31/12/23
10 Years to
31/12/23
Fund 8.3% 1.3% 6.3% 7.6%
Benchmark 6.5% 6.2% 7.5% 5.9%

Top 10 Holdings

Stock % Weight
KIER GROUP 3.51
HOLLYWOOD BOWL GROUP 3.33
WICKES GROUP 3.24
SABRE INSURANCE GROUP 2.84
LSL PROPERTY SERVICES 2.79
PRS REIT Plc PRS REIT Plc ORD GBP0.01 2.72
ELEMENTIS 2.58
FORESIGHT GROUP HLDGS LTD 2.54
HELICAL 2.53
WILMINGTON 2.37
Total 28.46

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 6 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 (26/03/2024) 841.57
Fund size (29/02/2024) £21.02m
Underlying Fund size £32.65m
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 90.76%
  Property 7.56%
  Cash and Equivalents 0.87%
  International Equities 0.80%

Commentary

Performance as at Q4 2023 - The UK stockmarket ended the year on a positive note, although it lagged some global counterparts due to concerns over the UK’s lacklustre economic activity. Small and mid-cap stocks led the way. The fund was ahead of the benchmark, with performance boosted by both sector allocation and stock selection. Below-benchmark positions in energy and utilities were beneficial, as was an above-benchmark allocation to technology. Stock picks in technology cost some performance but this was more than offset by stock selection in industrials and consumer discretionary. Contributors included sofa retailer SCS, which accepted a bid offer at a material premium to the firm’s stock price. Online travel agency On The Beach also added value on the back of an improving consumer market. The firm had a positive trading statement and the shares are fairly inexpensive. Mortgage Advice Bureau, a service provider to mortgage intermediaries, was a further contributor. Shares in the company rose in expectation of an improving housing market. Detractors included branding and promotional products firm Pebble Group, which issued a profit warning on the back of a weaker end-market environment. Alfa Financial Software also detracted after a bid approach failed to proceed and the shares subsequently fell back. Property company Home Reit held back performance after the firm gave a portfolio update, leading to a very material reduction in the value of properties. The shares remain suspended following an earlier report alleging serious valuation and management issues. The fund manager started new positions in cyber services business NCC and Avon Protection, a manufacturer of larger military respiratory masks and helmets, which in her opinion are both attractive recovery stories. NCC has suffered a slowdown in spending from large US tech companies, but the manager feels the outlook for cyber security spending is positive. Meanwhile, Avon has had a lot of management and operational issues and the manager feels there are signs that new management will be able to resolve these matters. In terms of sales, the fund manager disposed of SCS, as mentioned above. She also reduced the holding in On The Beach, following the share price gains described earlier. A number of stocks left the benchmark (fluid systems provider Senior and oil services firm Hunting) and the fund manager sold the holding in Senior and reduced the position in Hunting. Valuations in UK smaller companies are at attractive levels and, whilst higher interest rates remain a headwind for consumers and businesses alike, earnings estimates appear to be stabilising. M&A is still a feature of the market environment, and the fund manager believes external buyers will remain interested in high quality franchises.

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

This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

Portfolio data accurate as at:

Asset Allocation

pie chart
  UK Equities 90.76%
  Property 7.56%
  Cash and Equivalents 0.87%
  International Equities 0.80%

Equity Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Industrials 34.66% - - -
 
Industrial Goods & Services - 22.15% - -
 
Industrial Support Services - - 14.64% -
 
Professional Business Support Services - - - 7.47%
 
Business Training & Employment Agencies - - - 3.47%
 
Transaction Processing Services - - - 2.17%
 
Industrial Suppliers - - - 1.53%
 
Electronic & Electrical Equipment - - 2.86% -
 
Electrical Components - - - 2.86%
 
Industrial Engineering - - 1.93% -
 
Machinery: Industrial - - - 1.93%
 
Industrial Transportation - - 1.49% -
 
Transportation Services - - - 1.49%
 
Aerospace & Defence - - 1.23% -
 
Defense - - - 1.23%
 
Construction & Materials - 12.52% - -
 
Construction & Materials - - 12.52% -
 
Engineering & Contracting Services - - - 4.02%
 
Construction - - - 3.51%
 
Building Materials: Other - - - 3.32%
 
Cement - - - 1.66%
 
Consumer Discretionary 20.97% - - -
 
Media - 6.51% - -
 
Media - - 6.51% -
 
Media Agencies - - - 3.42%
 
Publishing - - - 3.09%
 
Retail - 6.13% - -
 
Retailers - - 6.13% -
 
Home Improvement Retailers - - - 4.27%
 
Specialty Retailers - - - 1.86%
 
Travel & Leisure - 5.32% - -
 
Travel & Leisure - - 5.32% -
 
Recreational Services - - - 3.33%
 
Restaurants & Bars - - - 1.99%
 
Consumer Products & Services - 1.63% - -
 
Household Goods & Home Construction - - 1.63% -
 
Home Construction - - - 1.63%
 
Automobiles & Parts - 1.38% - -
 
Automobiles & Parts - - 1.38% -
 
Auto Parts - - - 1.38%
 
Real Estate 16.65% - - -
 
Real Estate - 16.65% - -
 
Real Estate Investment Trusts - - 13.87% -
 
Office REITs - - - 6.31%
 
Residential REITs - - - 3.12%
 
Diversified REITs - - - 2.38%
 
Retail REITs - - - 2.07%
 
Real Estate Investment & Services - - 2.79% -
 
Real Estate Services - - - 2.79%
 
Financials 12.91% - - -
 
Financial Services - 10.07% - -
 
Investment Banking & Brokerage Services - - 8.30% -
 
Asset Managers & Custodians - - - 5.12%
 
Investment Services - - - 1.79%
 
Diversified Financial Services - - - 1.39%
 
Finance & Credit Services - - 1.77% -
 
Mortgage Finance - - - 1.77%
 
Insurance - 2.84% - -
 
Non-life Insurance - - 2.84% -
 
Property & Casualty Insurance - - - 2.84%
 
Technology 8.51% - - -
 
Technology - 8.51% - -
 
Software & Computer Services - - 6.82% -
 
Software - - - 3.82%
 
Computer Services - - - 3.00%
 
Technology Hardware & Equipment - - 1.70% -
 
Electronic Components - - - 1.70%
 
Basic Materials 3.26% - - -
 
Chemicals - 3.26% - -
 
Chemicals - - 3.26% -
 
Chemicals: Diversified - - - 3.26%
 
Energy 2.16% - - -
 
Energy - 2.16% - -
 
Non-Renewable Energy - - 2.16% -
 
Oil: Crude Producers - - - 1.16%
 
Oil Equipment & Services - - - 1.00%
 
Cash and Equivalents 0.87% - - -

Regional Allocation

pie chart
  UK 90.76%
  Property 7.56%
  Cash and Equivalents 0.87%
  Developed Asia 0.80%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 90.76% -
 
United Kingdom - 90.76%
 
Property 7.56% -
 
Cash and Equivalents 0.87% -
 
Developed Asia 0.80% -
 
Singapore - 0.80%

Breakdown By Market Cap (%)

Medium
 
 
4.18%
Small
 
 
68.57%
Micro
 
 
24.99%
Non-Classified
 
 
1.39%
Cash
 
 
0.87%

Top 10 Holdings

Stock % Weight Sector Country
1 KIER GROUP 3.51% Construction & Materials United Kingdom
2 HOLLYWOOD BOWL GROUP 3.33% Travel & Leisure United Kingdom
3 WICKES GROUP 3.24% Retailers United Kingdom
4 SABRE INSURANCE GROUP 2.84% Non-life Insurance United Kingdom
5 LSL PROPERTY SERVICES 2.79% Real Estate Investment & Services United Kingdom
6 PRS REIT Plc PRS REIT Plc ORD GBP0.01 2.72% Real Estate Investment Trusts Direct Property and REITs
7 ELEMENTIS 2.58% Chemicals United Kingdom
8 FORESIGHT GROUP HLDGS LTD 2.54% Investment Banking & Brokerage Services United Kingdom
9 HELICAL 2.53% Real Estate Investment Trusts United Kingdom
10 WILMINGTON 2.37% 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 8.51% - - - - - - - 8.51%
Financials 12.91% - - - - - - - 12.91%
Real Estate 9.09% - - - - 7.56% - - 16.65%
Consumer Discretionary 20.97% - - - - - - - 20.97%
Energy 2.16% - - - - - - - 2.16%
Industrials 33.86% 0.80% - - - - - - 34.66%
Basic Materials 3.26% - - - - - - - 3.26%
Cash and Equivalents - - - - - - - 0.87% 0.87%

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.

This factsheet is for information purposes only. If there is information or terminology included that you would like to discuss, then please contact an adviser. Investors should refer to their policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

Identification Codes

Sedol Code 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 information purposes only. If there is information or terminology included that you would like to discuss, then please contact an adviser. Investors should refer to their policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

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

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

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

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

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 trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

Important Information

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

This factsheet is intended for the trustees, sponsors, advisers and members of occupational pension schemes using Prudential group pension contracts and Prudential grouped personal pensions and Stakeholder pension contracts. Its purpose is to provide an insight into how investment markets and funds have performed over the period and is provided for information only. If you are not familiar with any of the investment terminology included, then please contact an adviser. Investors should refer to their scheme documentation (e.g. Fund Guide) for fund availability, investment strategy, any scheme information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.

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