Why are emerging markets an upcoming investment opportunity?

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Speed of Growth

Speed of Growth

Emerging economies are growing at a fast pace and now contribute 60% to the Global GDP.

Source:
IMF World Economic Outlook
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Size

Size

Seven largest emerging economies (E7) are now the same size as the seven largest developed economies.

Source: IMF
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Dependency Ratio

Dependency Ratio

Emerging markets (E7) have a lower dependency ratio compared to G7.

Source or data:
United Nations' population division
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Manufacturing Capabilities

Manufacturing Capabilities

Large emerging economies produce more goods than the large developed economies.

Source of data: World Bank,
IMF World Economic Outbok April 2020
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Global Recognition

Global Recognition

29% of companies from the emerging economies feature in the Fortune 500 list of top corporates for their scale and global recognition.

Source Fortune 500

What are the benefits of investing in PGIM India Emerging Markets Equity Fund?

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Improve portfolio diversification and reduce volatility

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Participate in the trend of dollar appreciation against the Rupee

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Participate in opportunities/themes with inadequate representation in the domestic markets

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Jennison Associates is a quality investment manager

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Concentrated stock exposure

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Limitless sector/region exposure

PGIM India Emerging Markets Equity Fund is a Fund of Fund feeding into the PGIM Jennison Emerging Markets Equity Fund.

  • Indian Investors

    in ₹
     
  • PGIM India Emerging Markets Equity Fund

    in $
     
  • PGIM Jennison Emerging Markets Equity Fund

    Invests in
     
  • Emerging Market Companies

About Jennison Associates

  • A growth manager from PGIM family
  • Managing growth equities successfully for over 50 years
  • A strong team consisting of 68 investment professionals, 18 portfolio managers with an average experience of 30 years
  • Total AUM of 224.3 bn USD as of 31st December 2020 with global / emerging equity assets of 22.6 bn USD

What is the investment approach?

What is the investment approach?

PGIM Jennison Emerging Markets Equity Fund (the underlying fund) lets you invest across the entire foreign equity landscape without limitations such as benchmark, region, or market cap. Through the bottom-up selection process, it aims for a portfolio of 35-45 stocks, which can result in a high degree of active share and alpha potential.

The fund finds potential investment opportunities from emerging markets with a focus on:
  • Innovative and disruptive businesses, driving structural shifts in their industries
  • Businesses that can benefit from secular demand trends driven by superior product offerings
  • Businesses that have defensible business models with significant competitive barriers to entry
  • For the long-term growth of capital, this fund invests in companies in their early stages of acceleration in their growth

Interactive Investment Process of PGIM Jennison Emerging Markets Equity Fund

  • idea
    generation
  • Fundamental
    research
  • valuation
    analysis
  • portfolio
    construction
  • sell
    discipline
integrated risk management
  • Global Universe 2,000

     
  • Research Focus 100

     
  • Portfolio Holdings 35-45

Invests in industries like:

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Biotech and Healthcare

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Multiline Retail

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Internet and Direct Marketing Retail

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Semiconductor and Semiconductor Equipment

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Interactive Media and Services

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Luxury Goods,Textiles and Apparels

Other Characteristics

Number of holdings Average position size Top 10 equities Cash
Typically 35–45 securities Generally 2–7% of portfolio Typically 35–45% of portfolio Average less than 5%

Geographic Allocation (%)

(of underlying fund as of 28 th February 2021)

 

Top 10 holdings

(of underlying fund as of 28 th February 2021)

  • Sea(7.5%)
    Taiwan Semiconductor Manufacturing (3.4%)
  • MercadoLibre(5.9%)
    Tencent(3.5%)
  • Wuxi Biologics Cayman(4.2%)
    Weimob(3.4%)
  • Bilibili(5.4%)
    Samsung SDI (3.7%)
  • Meituan Dianping(3.5%)
    Ashok Leyland(3.6%)

Sectoral Allocation (%)

(of underlying fund as of 28 th February 2021)

What are the features of PGIM India Emerging Markets Equity Fund?

Underlying Fund
PGIM Jennison Emerging Markets Equity Fund
Benchmark
MSCI Emerging Markets Index
Minimum Investment
₹5000/- and in multiples of ₹1/- thereafter
Investment Strategy
Predominantly invest in the units of PGIM Jennison Emerging Markets Equity Fund (the Underlying Fund).
Fund Manager
Mr. Anandha Padmanabhan Anjeneyan: Anandha Padmanabhan is an Equity Analyst and Fund Manager, and also manages the PGIM India Emerging Markets Equity Fund. He has been appointed as Dedicated Fund Manager for Overseas investments w.e.f January 10, 2020. He has over 10 years of experience in the Equity Market. He is an ACA, CFA & FRM.
Investment Objective
To generate long-term capital growth by investing in the units of PGIM Jennison Emerging Markets Equity Fund, which invests primarily in equity and equity-related securities of companies located in or otherwise economically tied to emerging market countries. However, there can be no assurance that the investment objective of the scheme will be achieved. The scheme does not guarantee/indicate any returns.
Exit Load
Exit Load: (w.e.f. January 13, 2021) 10% of the units allotted may be redeemed/switched-out to debt schemes/PGIM India Arbitrage Fund without any exit load within 90 days from the date of allotment of units; Any redemptions/switch-outs in excess of the above mentioned limit would be subject to an exit load of 0.50%, if the units are redeemed/switched-out to debt schemes/PGIM India Arbitrage Fund within 90 days from the date of allotment of units; Nil - If the units are redeemed/switched-out after 90 days from the date of allotment of units. No exit load will be charged for switches and STP between any open-ended equity schemes, hybrid schemes (except PGIM India Arbitrage Fund) and fund of funds schemes.
SIP / Top-Up SIP / STP / SWP
Available
  • SIP/Top-Up SIP/STP/SWP: Available. SIP: Monthly and Quarterly: 5installments of ₹1000/- each and in multiples of ₹1/- thereafter.
  • Top-Up SIP:Monthly/Quarterly: ₹100/- each and in multiples of ₹1/- thereafter.
  • STP: Daily/Weekly/Monthly/Quarterly: 5 installments of ₹1000/- each and in multiples of ₹1/- thereafter.
  • SWP (Monthly and Quarterly): 5 (five) installments of ₹1000/- each and in multiples of ₹1/- thereafter. (Application Amount/Additional Purchase/Redemption Amount/SIP/Top Up SIP/STP/SWP values are applicable from January 08, 2021)

PGIM India Emerging Markets Equity Fund Performance

Performance (CAGR)
  PGIM India Emerging Market Equity Fund MSCI Emerging Markets Index^ Nifty 50 TR Index #
Period Returns (%) Value (INR)* Returns (%) Value (INR)* Returns (%) Value (INR)*
Regular Plan - Growth Option
Last 1 Year 46.64 14,664.43 50.58 15,058.01 72.54 17,253.52
Last 3 Years 9.10 12,989.73 8.09 12,630.28 14.63 15,069.22
Last 5 Years 8.38 14,956.25 11.71 17,405.11 15.13 20,235.91
Since Inception 4.20 17,480.00 5.93 21,828.94 10.40 38,272.28
Direct Plan - Growth Option
Last 1 Year 47.82 14,782.27 50.58 15,058.01 72.54 17,253.52
Last 3 Years 10.39 13,457.29 8.09 12,630.28 14.63 15,069.22
Last 5 Years 9.67 15,872.13 11.71 17,405.11 15.13 20,235.91
Since Inception 8.19 19,144.01 6.40 16,681.89 12.95 27,299.71

Date of Inception: Regular Plan: September 11, 2007; Direct Plan: January 01, 2013. CAGR – Compounded Annual Growth Rate

^ Scheme Benchmark. # Standard Benchmark. *Based on standard investment of ₹10,000 made at the beginning of the relevant period. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

The above returns are as on March 31, 2021.

W.e.f. October 24, 2020 the benchmark of the Scheme is MSCI Emerging Markets Index.

W.e.f. October 24, 2020 the underlying fund of the scheme has been changed to PGIM Jennison Emerging Markets Equity Fund.

The Scheme has undergone change in Fundamental attributes w.e.f. October 24, 2020 changed its Underlying Fund. Accordingly, the Scheme’s benchmark has also changed. Hence, the past performance of the Scheme may not strictly be comparable with that of the new benchmark.

Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of type of the scheme i.e. Overseas Fund of Fund.

This product is suitable for investors who are seeking*:

  • Capital growth over the long term
  • Investment in units of overseas mutual funds that invest in equity securities of companies around the world in the early stage of acceleration in their growth
  • Degree of risk – VERY HIGH

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Investors will bear the recurring expenses of the scheme, in addition to the expenses of the underlying scheme.

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