PGIM launches Jennison NextGeneration Opportunities Fund
PGIM, the USD1.5 trillion global investment management business of Prudential Financial, has bolstered its equity UCITS offering with the launch of the PGIM Jennison NextGeneration Opportunities Fund.
Managed by PGIM’s active equity manager, Jennison Associates, the Fund invests in the next generation of high-growth opportunities across small and mid-sized companies. The investment team seeks to identify and invest early in businesses with unique products and services, unearthing secular themes that are changing the way the world works and therefore, driving growth in the next generation economy. Taking a global and region-agnostic approach, the team looks to discover companies that are starting to experience rapid growth but have yet to be fully appreciated by the wider market.
Jennison’s investment teams employ a bottom-up stock selection approach, seeking to invest in high-growth firms that are benefitting from secular themes, with evidence of a structural tailwind. The PGIM Jennison NextGeneration Opportunities Fund holds companies across a range of industries innovating within the themes driving the next generation economy such as digital payments, e-commerce platforms, and cloud computing, amongst others. The Fund is benchmarked against the MSCI All Country World SMID Cap Index.
The portfolio concentrates on 30-40 companies, reflecting the investment team’s conviction and the uniqueness of the business models in its universe. The Fund is managed by an experienced team of investment professionals from Jennison, led by global small- and mid-cap equity portfolio manager, John Donnelly, and head of global equity, Mark Baribeau.
With its robust research resources and deep growth equity investing capabilities, Jennison aims to invest early in a company’s life cycle to take advantage of a long runway of compounded returns. The Fund’s focus on small and mid-sized companies complements the existing equity UCITS suite – PGIM Jennison Global Equity Opportunities and PGIM Jennison Emerging Markets Equity Funds – both of which are ranked top decile over the 1-, 3-, and 5-year time periods, within their respective categories and also benefit from Baribeau’s experience as a growth manager.
Donnelly says: “At Jennison, we look to discover the high-growth companies of tomorrow. As growth becomes harder to find, our active approach seeks to invest early in a company’s life cycle to capture a long runway of compounded returns. Our strategy allows investors to tap into opportunities not realised or appreciated by the broader investment community, whilst delivering long-term risk adjusted returns.”
Kimberly LaPointe, head of PGIM Investments International, adds: “We are delighted to bring this thematic fund to our cross-border investor base, as we believe it is a unique offering that leverages the expertise of our specialist growth manager, building on our existing range of top-performing growth equity funds. Small and mid-cap stocks tend to be less well researched than larger-capitalisation stocks, and Jennison’s specialism in unearthing equity growth is well suited to this segment of the market. We are excited that we are able to offer our clients access to the next generation of growth companies driving the next generation economy.”