Fund Evaluator:

PGIM Jennison Small Company R2 Overview

PGIM Jennison Small Company R2 (PSCHX) is an actively managed U.S. Equity Small Growth fund. PGIM launched the fund in 2017.

The investment seeks capital growth. The fund normally invests at least 80% of its investable assets in equity and equity-related securities of small, less well-known companies that the subadviser believes are relatively undervalued. In deciding which stocks to buy, the subadviser uses a blend of both value and growth styles. The subadviser currently considers small companies to be those with a market capitalization less than the largest market capitalization of the Russell 2500 Index at the time of investment.

About PGIM Jennison Small Company R2 (PSCHX)

There are 2 members of the management team with an average tenure of 10.37 years: Jason Swiatek (2013), Jonathan Shapiro (2018). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 2500 TR USD index with a weighting of 100%. PGIM Jennison Small Company R2 has 124 securities in its portfolio. The top 10 holdings constitute 20.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

PGIM Jennison Small Company R2 is part of the Equity global asset class and is within the U.S. Equity fund group. PGIM Jennison Small Company R2 has 4.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 93.0%. There is 4.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). PGIM Jennison Small Company R2 has 2.4% of the portfolio in cash.

Assets Under Management

The fund has $10 million in total assets, which is below the $431 million average for the Small Growth category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PSCHX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PGIM Jennison Small Company R2 expense ratio is high compared to funds in the Small Growth category. PGIM Jennison Small Company R2 has an expense ratio of 1.18%, which is the same as its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PGIM Jennison Small Company R2 has a portfolio turnover rate of 62%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 78% for the Small Growth category.

Recently, in the month of July 2026, PGIM Jennison Small Company R2 returned -4.8%, which earned it a grade of B, as the Small Growth category had an average return of -6.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

PGIM Jennison Small Company R2 has a trailing yield of 0.10%, which is above the 0.06% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PGIM Jennison Small Company R2 Grades

Year to date, the fund has returned 13.4%, 0.2 percentage points worse than the category, which translates into a grade of C. The fund has returned 26.1% over the past year (grade of C), 12.0% over the past three years (grade of C) and 5.8% per year over the past five years (grade of B) and 11.1% per year over the past 10 years (grade of C).

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