Prudential Investments has launched the Prudential Jennison Emerging Markets Equity Fund (PDEAX), which seeks to add broad diversification and growth potential to investor portfolios by tapping the expertise of its veteran team of portfolio managers.
The fund is sub-advised by Jennison Associates’ global equity team, which has established expertise in emerging markets investing through global and international equity strategies.
The fund’s portfolio managers – Mark Baribeau, managing director and head of global equity, Albert Kwok, managing director, and Sara Moreno, managing director – average 21 years of investment experience.
“The team builds the fund from the bottom up, using fundamental research to identify 40 to 60 high-conviction securities,” says Stuart Parker, president of Prudential Investments. “With the strong economic growth that is expected in the emerging markets, it is an exciting opportunity to invest in a concentrated portfolio of companies based in these developing countries.”
The fund seeks to identify companies based in developing markets that are at an inflection point in their growth. The source of growth will vary by company and may include a disruptive or game-changing technology, product or service; a new product cycle or market expansion; an acceleration in industry growth; an increase in an addressable market; best-of-breed leadership in a particular niche; or restructuring synergies. The team believes investing in companies with strong home-market positions and limited dependence on exports, government subsidisation, commodities cycles, or global growth reduces volatility.
“We will focus on companies, rather than countries, sectors, or exposure to economic themes,” says Baribeau. “This may enable us to exploit price inefficiencies around the developing world without being tied to a benchmark or region.”