Prudential Jennison Equity Income Fund

Fund Overview

This fund isn't much like its peers, but recently it's clearly managed to beat most of them.

As of April 04, 2012, the fund has assets totaling almost $2.64 billion invested in 87 different holdings. Its portfolio consists of a wide range of stock holdings.

This isn't your typical large-cap fund. Its average market cap, for instance, is $13 billion, or roughly a quarter of the average for the S&P 500. The fund dabbles in small caps. Take, for instance, B&G Foods, a manufacturer and distributor of products including canned meats and beans. Meanwhile, as of the end of January, 30 percent of the fund's assets were invested abroad. The main theme among its holdings is that most pay out dividends.  After gaining 42 percent in 2009, the fund did a fine job managing last year's volatile market. It finished in the top 9 percent of its category in 2010. This year, however, the fund has slowed down a bit, with poor performance by Frontier Communications Corporation and International Power Plc dragging down returns in the first quarter. The fund has returned 2.44 percent over the past year and 24.07 percent over the past three years. 

Historically, the fund has had its fair share of ups and downs. Since 2000, it has finished in the bottom half of Morningstar's large-value category in six separate years. But its good years have made up for the bad ones, and patient investors have been rewarded. The fund has returned 3.66 percent over the past five years and 5.09 percent over the past decade.  

Investment Strategy

According to the fund's prospectus: "The Fund will invest under normal circumstances at least 65% of its total assets in income-producing equity and equity-related securities. ... The Fund will seek companies with the ability to sustain and grow their dividends. The Fund will employ a value strategy to identify such companies, seeking companies [it believes] to be fundamentally sound, but are being valued at a discount to their true worth, as defined by the value of their earnings, free cash flow, the value of their assets, their private market value, or some combination of these factors." 

Role in Portfolio

This fund could lend support to a well-balanced portfolio.

Management

Ubong Edemeka and Shaun Hong comanage the fund.

The fund is advised by Prudential Investments and subadvised by Jennison Associates.   

2010-10-10

Performance

The fund has returned 2.44 percent over the past year, 24.07 percent over the past three years, 3.66 percent over the past five years, and 5.09 percent over the past decade. 

Hypothetical Growth of $10,000

Updated 03.31.2012

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Holdings

The fund's holdings are broadly diversified, both geographically and by market capitalization. 

Asset Allocation

	% Long	% Short	% Net
Cash	1.04	0.0	1.04
Stocks	63.04	0.0	63.04
Bonds	0.0	0.0	0.0
Other	4.96	0.0	4.96
Foreign Bonds	0.0	0.0	0.0
Foreign Stocks	23.0	0.0	23.0
Convertible	0.91	0.0	0.91
Preferred	7.04	0.0	7.04

Updated 01.31.2012

Top Holdings

Performance as of 03.31.2012

Portfolio as of 01.31.2012

	Ticker	YTD Return %	% Net Assets
Targa Resources Corp	TRGP	12.48	2.36
Digital Realty Trust, Inc.	DLR	12.63	2.29
Sara Lee Corporation	SLE	15.88	2.21
Philip Morris International, Inc.	PM	14.87	2.18
Bristol-Myers Squibb Company	BMY	-2.87	2.16

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Fees

Prudential Jennison Equity Income Fund has an expense ratio of 1.97 percent. 

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Risk

Like all stock funds, this one comes with some risks.

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