PGIM Jennison Focused Growth Fund’s Strategic Positioning for 2025–2026: Leadership Transitions and Growth Equity Resilience

The PGIM Jennison Focused Growth Fund (SPFZX) is navigating a pivotal transition in 2025–2026 as it shifts from the stewardship of Kathleen McCarragher, who announced her retirement mid-2026 and will step down by December 31, 2025 [1]. Her departure marks the end of an era for the fund, which has long relied on her expertise in growth equity. However, the firm has strategically positioned itself for continuity by elevating Blair A. Boyer, Natasha Kuhlkin, and Owuraka Koney to leadership roles. These individuals, already seasoned in managing large-cap growth portfolios, now shoulder the responsibility of steering the fund through a market landscape defined by AI-driven innovation and geopolitical trade tensions [2].

A Leadership Transition with Strategic Depth

The new team’s approach is rooted in a bottom-up, fundamental research-driven philosophy, emphasizing companies with sustainable earnings growth over 12–36 months [3]. This aligns with the fund’s historical focus on large-cap stocks but introduces a more collaborative leadership structure. For instance, Owuraka Koney’s recent addition as a named portfolio manager in July 2025 underscores the team’s commitment to diversifying expertise, particularly in industrials, consumer internet, and media sectors [4]. Meanwhile, Blair Boyer and Natasha Kuhlkin, as co-heads of large-cap growth equity, are refining the fund’s sector allocations to prioritize high-conviction holdings in Information Technology, Communication Services, and Health Care—sectors poised to benefit from AI adoption and digital transformation [5].

Navigating Market Dynamics: AI and Trade Tensions

The new leadership is acutely aware of the dual forces reshaping growth equity: the AI revolution and escalating trade tensions. As Mark Baribeau, CFA, notes in PGIM’s thought leadership, AI is not merely a speculative trend but a “next frontier” for value creation, with companies demonstrating unit and cash flow growth outpacing broader market averages [6]. The fund’s portfolio managers are actively identifying firms leveraging AI to enhance operational efficiency, such as cloud infrastructure providers and semiconductors, while hedging against trade-related volatility by emphasizing domestic equities (83.2% of the portfolio) and selectively including foreign securities with strong growth profiles [7].

However, challenges persist. The fund’s 1.02% expense ratio, above the category average, and a 33% portfolio turnover rate—reflecting active trading—could pressure after-tax returns [8]. Yet, its three- and five-year performance (Grades B and D, respectively) suggests resilience in navigating market cycles, even as year-to-date returns place it in the middle of its category (Grade C) [9].

Conclusion: A Balanced Outlook for 2025–2026

The PGIM Jennison Focused Growth Fund’s strategic repositioning under its new leadership team balances continuity with innovation. By retaining a focused portfolio of 25–35 stocks and leveraging the team’s deep sector expertise, the fund aims to capitalize on AI-driven growth while mitigating risks from trade tensions. While cost efficiency remains a concern, the leadership’s emphasis on sustainable earnings and active management positions the fund to weather near-term volatility and deliver long-term value. Investors should monitor how the team adapts to regulatory shifts in AI and global trade policies, which could further shape the fund’s trajectory in the coming year.

Source:
[1] PGIM Jennison Focused Growth Fund (SPFZX), [https://www.pgim.com/us/en/intermediary/investment-capabilities/products/mutual-funds/pgim-jennison-focused-growth-fund]
[2] PGIM Jennison Focused Growth ETF (PJFG), [https://www.pgim.com/us/en/intermediary/investment-capabilities/products/etf/pgim-jennison-focused-growth-etf]
[3] Jennison Focused Large Cap Growth Equity SMA, [https://www.pgim.com/us/en/individual/investment-capabilities/products/sma/jennison-associates-smas/jennison-focused-large-cap-growth-equity-sma]
[4] PGIM Jennison Growth A (SPFAX), [https://www.aaii.com/fund/ticker/SPFAX]
[5] PGIM Jennison Focused Growth Fund Q2 2025 Commentary, [https://seekingalpha.com/article/4818763-pgim-jennison-focused-growth-fund-q2-2025-commentary]
[6] Unlocking Growth in AI and Beyond, [https://www.pgim.com/us/en/intermediary/insights/thought-leadership/unlocking-growth-ai-and-beyond]
[7] PGIM Jennison Growth R2 PJFOX Fund Analysis, [https://www.morningstar.com/funds/xnas/pjfox/analysis]
[8] PGIM Jennison Focused Growth A (SPFAX), [https://www.aaii.com/fund/ticker/SPFAX]
[9] The Next Frontier for AI Growth, [https://www.pgim.com/us/en/intermediary/insights/thought-leadership/the-next-frontier-for-ai-growth]