A Flexible and Diversified Approach to Equity Income Investing
KEY CHARACTERISTICS & MATERIALS
- Employs a relative value strategy and invests in companies with the ability to sustain and grow their dividends and generate high free cash-flow that can be returned to investors in the form of stock buybacks or dividends
- Our ability to selectively invest in both equity & equity-related securities including convertibles/structured notes, allows us to enhance diversification through exposure to a broader investment universe of non-traditional equity income sectors and/or industries
- Seeks to provide a yield premium to the S&P 500 Index
|No. of Holdings:|
|$1,466.1 Million as of 6/30/19|
|S&P 500 Index|
|Typically 70 – 90|
|50 - 70% under normal conditions|
Our Equity Income team is a part of our Income & Infrastructure investment suite which also includes our Rising Dividend, Global Infrastructure, MLP, and Utility strategies. The investment teams’ extensive experience within the utility and telecommunication sectors, which has historically been two of the higher dividend-yielding sectors, is complemented by our MLP / midstream energy infrastructure experience. In addition, the investment team leverages the firm’s internal research analysts where there is constant discussion, debate, and sharing of ideas across the suite and the broader firm.Meet The Team
|As of June 30, 2019||Qtr||1 Year||3 Year||5 Year||10 Year||Since Inception|
|Equity Income Composite - Gross||2.9||8.2||8.5||6.0||12.7||7.7|
|Equity Income Composite - Net*||2.7||7.4||8.0||5.5||12.3||7.3|
|Lipper Equity Income Funds Index||3.7||8.9||10.6||7.6||12.4||6.4|
*For periods prior to 4/1/18, net of fee performance is presented net of Jennison’s actual advisory fees and transaction costs. For periods beginning 4/1/18, net of fee performance reflects the deduction of a model fee. It is net of transaction costs and is calculated based on the highest tier of the fee schedule in effect for the respective period (0.70%), which may not reflect the actual historical fees applied to accounts in the Composite.
Past performance does not guarantee future results. Performance results are calculated in US dollars and reflect reinvestment of dividends and other earnings. Inception of Equity Income Composite: 1/31/07. Periods greater than one year are annualized. Please click here to view the GIPS presentation for additional details, important performance information and disclosures.
This website is intended for Institutional and Professional Investors only.
Jennison Associates is a registered investment advisor and a Prudential Financial company. Certain investment vehicles are distributed or offered through Prudential Investment Management Services LLC (also a Prudential Financial Company) or other affiliated entities. Additionally, vehicles may not be registered or available for investment in all jurisdictions.
Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors.
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.These materials do not purport to provide any legal, tax or accounting advice.
The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.
Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.
Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.