Overview
The Jennison Natural Resources Equity SMA strategy combines the expertise of Jennison’s Global Natural Resources Equity and Custom Solutions teams. The investment portfolio is based on Jennison’s Global Natural Resources Equity portfolio, but in keeping with the restrictions on separately managed accounts (SMAs), all foreign ordinaries are replaced with appropriate US-listed natural resources exchange traded funds (ETFs).
The Global Natural Resources Equity team attempts to identify market dynamics underpinning natural resource commodities and looks for companies with the potential to outperform even in an environment of changing commodity prices. The team uses a combination of top-down and bottom-up analysis, with a focus on secular, rather than tactical considerations. Top-down analysis identifies relative strengths across commodity groups to determine which have favorable supply/demand characteristics; bottom-up fundamental research identifies companies with desirable characteristics which we believe indicate the potential to outperform.
In an era of rising marginal costs for commodities, we believe we can outperform by owning companies that can organically grow both reserves and production, control costs and gain access to reserves in a world increasingly dominated by state-run resource companies. We also look at whether the companies under consideration can provide the needed technology and infrastructure used in the search for reserves and the final production process.
Portfolio Managers
Neil P. Brown, CFA
Managing Director
Jay Saunders
Managing Director, Global Natural Resources Equity Portfolio Manager, and Research Analyst
Jason McManus
Managing Director and Quantitative Portfolio Manager
SMAs differ from pooled vehicles like mutual funds in that each portfolio is unique to a single account therefore the investment decisions may vary from those made for other accounts. SMAs do not issue registered prospectuses, the fees structures differ from those normally seen in mutual funds and generally carry higher account investment minimums. Please remember that there are inherent risks involved with investing in the markets, and investments may be worth more or less than 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. 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.
All investments contain risk, including possible loss of principal. Sector risk: The chance that significant problems will affect a particular sector, or that returns from that sector will trail returns from the overall stock market. Daily fluctuations in specific market sectors are often more extreme or volatile than fluctuations in the overall market. Because the portfolio invests all, or substantially all, of its assets in the natural resources sector, the portfolio’s performance largely depends—for better or for worse—on the general condition of that sector. Companies in the natural resources sector could be affected by, among other things, commodity prices, government regulation, inflation expectations, resource availability, and economic cycles. Sector risk is expected to be high for the portfolio. Investing in a specific sector makes the portfolio nondiversified, thereby increasing its vulnerability to any single economic, political, or regulatory developments, which will have a greater impact on the portfolio's return. International investments may be more volatile and less liquid than investments in U.S. securities and are subject to the risks of currency fluctuations and adverse economic, social or political developments.
Separately Managed Accounts are offered through our affiliates. Jennison Associates is a registered investment advisor under the U.S. Investment Advisers Act of 1940, as amended and a Prudential Financial company. Registration as a registered investment advisor does not imply a certain level of skill or training.
Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.
© 2025 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
