Morningstar - Q4 2022 - 52

Strategies
For the Long Haul
PGIM Jennison Focused Growth remains a worthy option
despite recent stumbles.
BEST IDEAS: MANAGER
Paul Ruppe
This article is adapted from the fund's Morningstar Global Fund Report dated
Oct. 10, 2022.
PGIM Jennison Focused Growth remains a worthwhile offering for the long
haul. The strategy's capable managers and team-based approach earn it
Morningstar Analyst Ratings ranging from Silver to Neutral, depending on fees.
The market soured on the stocks favored by this strategy a little over a
year and a half ago. It struggled versus the Russell 1000 Growth Index (the
benchmark for its large-growth Morningstar Category) from February
2021 through September 2022, when its Z shares posted an annualized loss
of 22.9%, lagging the index's 6.7% decline. The strategy's high-growth,
high-volatility bias has hurt, to be sure, but so have its stock selections. Former
market darlings that powered the strategy's big gains in 2020, such as
Shopify SHOP and Twilio TWLO, overstayed their welcome here. Their crash
in early 2022 took a toll on returns.
Managers Natasha Kuhlkin and Rebecca Irwin remain capable; they are industry
veterans who make the day-to-day decisions and are part of one of the
industry's most talented growth-investing teams. They are supported by one of
the industry's brightest analyst teams that hunt exclusively for growth stocks.
The strategy's high-conviction, aggressive-growth approach benefits from
an experienced and intensely collaborative team. It focuses on market-leading
companies with high growth expectations and favors economically sensitive
sectors such as technology and consumer cyclicals. Its concentrated,
30-stock portfolio owns many fast-growing companies with high volatility and
premium valuations whose share prices can falter when growth fundamentals
decelerate. It requires the team members to differentiate between
company-specific temporary headwinds and long-term structural woes. They
have accomplished this feat over longer periods here and on the firm's
flagship 60-stock growth strategy (which includes Gold- and Silver-rated PGIM
Jennison Growth PJFZX, among others).
The strategy's talented team, battle-tested approach, and historical performance
pattern suggest it can make up lost ground when the sun shines again on
growth stocks. K
Paul Ruppe is a manager research analyst at Morningstar Research Services LLC.
52
Morningstar Q4 2022
PGIM Jennison Focused Growth SPFZX
Stats 09/30/2022
Morningstar Analyst Rating
„
Fee Level
Average
Process
Above Average
Growth of 10K 09/30/2022
$25K
20
15
10
5
09/2019
Value
Blend
09/2020
Morningstar Style Box 08/31/2022
Growth
Snapshot as
of most recent
portfolio.
09/2021
Morningstar Ratings 09/30/2022
Period
Mstar
Return
3-Yr
5-Yr
10-Yr
Mstar
Risk
Average High
Average High
Above Avg High
Overall Rating
Top 5 Sectors 08/31/2022
■ Fund ❙ Category Average
a Technology
t Consumer Cyclical
d Healthcare
s Consumer Defensive
i Communication Services
33.26
15.59
14.75
4.31
0%
7.08
6.21 9.99
10
20
30
40
15.55
31.54
33.76
PGIM Jennison
Focused Growth
11.99
Morningstar
US Large Growth
10.96
Morningstar Category
Large Growth
10-Yr Annlzd Return
9.32%
Morningstar Pillars 09/30/2022
People
Above Average
Parent
Above Average
Expense Ratio
0.75%
10-Yr % Rank in Cat
46
Mstar
Rating
QQ
QQ
QQQ
QQQ
Small
Mid
Large

https://www.morningstar.com/authors/2419/paul-ruppe https://www.morningstar.com/stocks/xnys/twlo/quote https://www.morningstar.com/stocks/xnys/shop/quote https://www.morningstar.com/funds/xnas/pjfzx/quote https://www.morningstar.com/funds/xnas/pjfzx/quote https://www.morningstar.com/authors/2419/paul-ruppe

Morningstar - Q4 2022

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