Prudential Jennison Utility Fund (PRUAX)

Prudential Jennison Utility Fund (PRUAX) is a sector stock mutual fund. Prudential Jennison Utility Fund invests mainly in securities of utility companies.

Prudential Jennison Utility Fund (PRUAX)

The investment objective of Prudential Jennison Utility Fund is to provide total return through a combination of capital appreciation and current income. The equity fund uses its assets to purchase equity and investment-grade debt securities of utility companies. The fund participates in the initial public offering (IPO) market. In deciding which stocks to buy, it uses what is known as a value investment style. The fund is non-diversified.

Fund Profile

Prudential Fund

• Fund Inception Date: January 21, 1990
• Ticker Symbol: PRUAX
• CUSIP: 74441P858
• Beta (3yr): 0.62
• Rank in category (YTD): 34%
• Category: Utilities
• Yield: 2.37%
• Capital Gains: 0%
• Expense Ratio: 0.87%
• Net Assets: $ 3.1 billion
• Number of Years Up: 18 years
• Number of Years Down: 4 years
• Annual Turnover Rate: 37%

Updated on July 5, 2013

This PRUAX fund is currently managed by Ubong “Bobby” Edemeka, Shaun Hong and Teresa Ho Kim. It has $3.1 billion of total net assets. The annual expense ratio is 0.87%. There is 0.30% of 12b1 fee and 5.50% of front-end sales load fee.  The current yield is 2.14%. The annual holdings turnover is 37.0% as of April 29, 2013.

Sector Stock Fund

This Prudential Jennison Utility fund’s benchmark is Lipper Utility Funds Average. The fund uses Mid Value investment style. It has 3-stars and Bronze rating from Morningstar. As of May 9, 2013, it has 30-day SEC Yield of 1.85%. The YTD return is 17.05%. The fund has 18 years of positive return and 4 years of negative return. Based on the load adjusted returns, the past fund performance is as follow:

• 1-year: 9.26%
• 3-year: 12.85%
• 5-year: 0.39%
• 10-year: 13.20%

The minimum initial investment for this fund is $2,500. Lower amount of $1,000 required for retirement account including Roth IRA or traditional IRA. A minimum $100 for next investment is applied for either account. The fund is also available in some other classes, such as Class B (PRUTX), Class C (PCUFX), Class R (JDURX) and Class Z (PRUZX). Schwab Retail, Edward Jones, Merrill Lynch, Scottrade Load, DATALynx are some of the brokerages that provide the sale of this fund.

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As of March 2013, the 10 largest stock holdings are Cheniere Energy (4.3%), Targa Resources (3.9%), Williams Cos (3.4%), NRG Energy (3.3%), OGE Energy (3.2%), Calpine (3.2%), Comcast (2.8%), Sempra Energy (2.8%), ITC Holdings (2.6%) and CenterPoint Energy (2.5%). They represent 32.0% of total assets out of 60 holdings. The top sector is Utilities (58.0%).

Principal risks of investing in the Fund include recent market events, risks of increase in expenses, utility sector risk, equity and equity-related securities risks, market risk, value style risk, foreign securities risk and currency risk.

Disclosure: No Position