Prudential UK Smaller Companies S3
Performance
Discrete performance - to latest available quarter end
| 30/06/19 to 30/06/20 |
30/06/20 to 30/06/21 |
30/06/21 to 30/06/22 |
30/06/22 to 30/06/23 |
30/06/23 to 30/06/24 |
|
|---|---|---|---|---|---|
| Fund | -14.1% | 86.5% | -26.1% | -1.6% | 18.1% |
| Benchmark | -12.3% | 65.2% | -14.6% | -0.4% | 18.5% |
Performance - to latest available quarter end
| Quarter | Annualised | |||
|---|---|---|---|---|
| 2 2024 |
3 Years to 30/06/24 |
5 Years to 30/06/24 |
10 Years to 30/06/24 |
|
| Fund | 8.7% | -5.0% | 6.6% | 8.9% |
| Benchmark | 9.3% | 0.3% | 7.9% | 6.7% |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| LSL PROPERTY SERVICES | 3.69 |
| HELICAL | 3.07 |
| SEVERFIELD | 2.77 |
| Workspace Group Workspace Group Plc Ord GBP1 | 2.63 |
| FORESIGHT GROUP HLDGS LTD | 2.60 |
| PRS REIT Plc PRS REIT Plc ORD GBP0.01 | 2.55 |
| SABRE INSURANCE GROUP | 2.54 |
| WICKES GROUP | 2.54 |
| WILMINGTON | 2.47 |
| POLAR CAPITAL HOLDINGS PLC. | 2.41 |
| Total | 27.25 |
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 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 (24/07/2024) | 946.07 |
| Fund size (30/06/2024) | £22.66m |
| Underlying Fund size | £34.97m |
| Number of holdings | 61 |
| Annual Management Charge (AMC) | Please refer to the "Fund Guide" for your specific pension plan |
| Launch date | 06/04/2001 |
Asset Allocation
| UK Equities | 90.52% | |
| Property | 6.22% | |
| Cash and Equivalents | 1.67% | |
| International Equities | 1.59% |
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 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.
Asset Allocation
| UK Equities | 90.52% | |
| Property | 6.22% | |
| Cash and Equivalents | 1.67% | |
| International Equities | 1.59% |
Equity Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Industrials | 34.56% | - | - | - | |
| Industrial Goods & Services | - | 22.69% | - | - | |
| Industrial Support Services | - | - | 15.47% | - | |
| Professional Business Support Services | - | - | - | 6.78% | |
| Business Training & Employment Agencies | - | - | - | 4.79% | |
| Transaction Processing Services | - | - | - | 1.84% | |
| Industrial Suppliers | - | - | - | 1.36% | |
| Security Services | - | - | - | 0.71% | |
| Electronic & Electrical Equipment | - | - | 3.89% | - | |
| Electrical Components | - | - | - | 3.89% | |
| Industrial Engineering | - | - | 1.83% | - | |
| Machinery: Industrial | - | - | - | 1.83% | |
| Aerospace & Defence | - | - | 1.51% | - | |
| Defense | - | - | - | 1.51% | |
| Construction & Materials | - | 11.87% | - | - | |
| Construction & Materials | - | - | 11.87% | - | |
| Engineering & Contracting Services | - | - | - | 4.83% | |
| Building Materials: Other | - | - | - | 3.86% | |
| Cement | - | - | - | 1.70% | |
| Construction | - | - | - | 1.48% | |
| Consumer Discretionary | 21.14% | - | - | - | |
| Media | - | 7.02% | - | - | |
| Media | - | - | 7.02% | - | |
| Publishing | - | - | - | 3.58% | |
| Media Agencies | - | - | - | 3.43% | |
| Travel & Leisure | - | 5.95% | - | - | |
| Travel & Leisure | - | - | 5.95% | - | |
| Restaurants & Bars | - | - | - | 3.33% | |
| Recreational Services | - | - | - | 1.72% | |
| Travel & Tourism | - | - | - | 0.90% | |
| Retail | - | 5.17% | - | - | |
| Retailers | - | - | 5.17% | - | |
| Home Improvement Retailers | - | - | - | 3.45% | |
| Specialty Retailers | - | - | - | 1.72% | |
| Consumer Products & Services | - | 1.92% | - | - | |
| Household Goods & Home Construction | - | - | 1.92% | - | |
| Home Construction | - | - | - | 1.92% | |
| Automobiles & Parts | - | 1.09% | - | - | |
| Automobiles & Parts | - | - | 1.09% | - | |
| Auto Parts | - | - | - | 1.09% | |
| Real Estate | 16.78% | - | - | - | |
| Real Estate | - | 16.78% | - | - | |
| Real Estate Investment Trusts | - | - | 13.10% | - | |
| Office REITs | - | - | - | 6.88% | |
| Residential REITs | - | - | - | 2.92% | |
| Retail REITs | - | - | - | 2.20% | |
| Diversified REITs | - | - | - | 1.10% | |
| Real Estate Investment & Services | - | - | 3.69% | - | |
| Real Estate Services | - | - | - | 3.69% | |
| Financials | 12.70% | - | - | - | |
| Financial Services | - | 10.16% | - | - | |
| Investment Banking & Brokerage Services | - | - | 8.85% | - | |
| Asset Managers & Custodians | - | - | - | 5.52% | |
| Investment Services | - | - | - | 2.08% | |
| Diversified Financial Services | - | - | - | 1.26% | |
| Finance & Credit Services | - | - | 1.31% | - | |
| Mortgage Finance | - | - | - | 1.31% | |
| Insurance | - | 2.54% | - | - | |
| Non-life Insurance | - | - | 2.54% | - | |
| Property & Casualty Insurance | - | - | - | 2.54% | |
| Technology | 9.31% | - | - | - | |
| Technology | - | 9.31% | - | - | |
| Software & Computer Services | - | - | 7.00% | - | |
| Software | - | - | - | 3.91% | |
| Computer Services | - | - | - | 3.09% | |
| Technology Hardware & Equipment | - | - | 2.31% | - | |
| Electronic Components | - | - | - | 2.31% | |
| Energy | 2.32% | - | - | - | |
| Energy | - | 2.32% | - | - | |
| Non-Renewable Energy | - | - | 2.32% | - | |
| Oil: Crude Producers | - | - | - | 1.48% | |
| Oil Equipment & Services | - | - | - | 0.84% | |
| Cash and Equivalents | 1.67% | - | - | - | |
| Basic Materials | 1.52% | - | - | - | |
| Chemicals | - | 1.52% | - | - | |
| Chemicals | - | - | 1.52% | - | |
| Chemicals: Diversified | - | - | - | 1.52% | |
| Non-Classified | 0.00% | - | - | - | |
Regional Allocation
| UK | 90.52% | |
| Property | 6.22% | |
| Cash and Equivalents | 1.67% | |
| Developed Asia | 1.59% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 90.52% | - | |
United Kingdom
|
- | 90.52% | |
Guernsey
|
- | 0.00% | |
| Property | 6.22% | - | |
| Cash and Equivalents | 1.67% | - | |
| Developed Asia | 1.59% | - | |
Singapore
|
- | 1.59% | |
Breakdown By Market Cap (%)
| Medium |
|
5.14% |
| Small |
|
66.54% |
| Micro |
|
25.38% |
| Non-Classified |
|
1.26% |
| Cash |
|
1.67% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | LSL PROPERTY SERVICES | 3.69% | Real Estate Investment & Services | United Kingdom |
| 2 | HELICAL | 3.07% | Real Estate Investment Trusts | United Kingdom |
| 3 | SEVERFIELD | 2.77% | Construction & Materials | United Kingdom |
| 4 | Workspace Group Workspace Group Plc Ord GBP1 | 2.63% | Real Estate Investment Trusts | United Kingdom |
| 5 | FORESIGHT GROUP HLDGS LTD | 2.60% | Investment Banking & Brokerage Services | United Kingdom |
| 6 | PRS REIT Plc PRS REIT Plc ORD GBP0.01 | 2.55% | Real Estate Investment Trusts | Direct Property and REITs |
| 7 | SABRE INSURANCE GROUP | 2.54% | Non-life Insurance | United Kingdom |
| 8 | WICKES GROUP | 2.54% | Retailers | United Kingdom |
| 9 | WILMINGTON | 2.47% | Media | United Kingdom |
| 10 | POLAR CAPITAL HOLDINGS PLC. | 2.41% | Investment Banking & Brokerage Services | United Kingdom |
Dual Aspect Equity Analysis
| UK Equities | Int'l Equities | UK Bonds | Int'l Bonds | UK Gilts | Property | Other | Cash & Equiv | Total | |
|---|---|---|---|---|---|---|---|---|---|
| Technology | 9.31% | - | - | - | - | - | - | - | 9.31% |
| Financials | 12.70% | - | - | - | - | - | - | - | 12.70% |
| Real Estate | 10.56% | - | - | - | - | 6.22% | - | - | 16.78% |
| Consumer Discretionary | 21.14% | - | - | - | - | - | - | - | 21.14% |
| Energy | 2.32% | - | - | - | - | - | - | - | 2.32% |
| Industrials | 32.97% | 1.59% | - | - | - | - | - | - | 34.56% |
| Basic Materials | 1.52% | - | - | - | - | - | - | - | 1.52% |
| Cash and Equivalents | - | - | - | - | - | - | - | 1.67% | 1.67% |
| Non-Classified | - | - | - | - | - | - | - | - | - |
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
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.