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Jennison Associates Review

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Jennison Associates LLC

Jennison Associates, LLC provides investment advisory services to institutional clients. Headquartered in New York, the firm also has offices in Boston. Jennison's financial advisors currently oversees more than $173 billion in assets under management (AUM). 

Jennison Associates Background

In 1969, Jennison registered with the Securities Exchange Commission (SEC) as an investment advisor and began primarily managing tax-exempt U.S. large-cap-growth equity accounts. The Prudential Insurance Company of America (PICA) acquired the firm in 1985, and Jennison began managing mutual funds in 1990. 

Today, it mainly focuses on managing portfolios for institutional clients such as corporate plan sponsors of qualified retirement plans. It conducts much of its equity portfolio management via its New York office, while most of its global equities portfolio management and investment research comes out of its offices in Boston. 

Jennison is a wholly owned subsidiary of Prudential Financial, Inc. 

Jennison Associates Client Types and Minimum Account Sizes

Jennison works with the following types of institutional clients:

  • Pension and corporate profit-sharing plans
  • Taft-Hartley plans 
  • Foundations, charities and endowments
  • Government entities and municipalities
  • Financial institutions
  • Insurance companies
  • Private funds
  • Individuals through third-party wrap fee programs

Minimum account sizes vary by product, investment vehicles and characteristics of the program. Institutional clients would discuss these minimums with the firm, which may waive these minimums at its discretion. 

Services Offered by Jennison Associates

Jennison primarily offers investment advisory services driven by specific investment strategies. These form the basis of its model portfolios

  • Growth Equity
  • Opportunistic Equity
  • Small-and-Mid-Cap Equity
  • Global Equity
  • Value Equity
  • Income & Infrastructure Equity
  • Fixed Income

In addition, the firm extends these strategies and other individualized portfolio management services to clients of wrap-fee programs sponsored by third parties.   

Jennison Associates Investment Philosophy

In evaluating securities, Jennison generally applies fundamental analysis. This research process involves projecting the performance of a company by deeply examining factors such as its financial statements, management experience and quality of products or services. 

Moreover, the firm’s analysts specialize in specific market sectors. So they evaluate these companies by gathering insights from managers, customers, suppliers and others involved in its business. 

Fees Under Jennison Associates

Fees for services from Jennison are generally negotiable. They vary based on the types of services provided and other factors. We describe the firm’s different fee-based programs below.  

Fees for Separate Account Advisory Services

These fees vary depending on factors such as services rendered, account size, investment strategy and more. For discretionary services, the firm generally charges asset-based or performance-based fees. The latter means fees can climb higher based on how well your advisor can manage your account’s growth. For non-discretionary services, Jennison usually charges asset-based fees. Fees charged to investors in these vehicles are outlined in the fund’s offering documents. 

Fees for Collectively Managed Vehicles 

Jennison serves as sub-advisor for collectively managed vehicles such as mutual funds and collective investment trusts. For these services, it typically charges both asset-based and performance-based fees.

Wrap Fee Programs 

Clients under managed accounts typically pay the sponsor a wrap fee which includes expenses for brokerage, custody and advisory services along with performance modeling and reporting. The sponsor then passes along part of that fee to Jennison. Full details would be available in the sponsor’s brochure for the wrap program. 

Jennison provides the following negotiable fee schedules for clients with dual contracts in certain programs. 

Large Cap Growth Equity

Fees Assets
0.75%  On first $10 million
0.50% on the next $30 million
0.35% on the next $25 million
0.25% on the next $335 million
0.22% On entire balance larger than $335 million

Large Cap Value Equity

Fees Assets
0.60% On the first $25 million
0.50% On the nest $25 million
0.40% On the nest $50 million
0.30% On entire balance larger than $50 million

Large Cap Blend Equity

Fees Assets
0.60% On the first $50 million
0.50% On the next $200 million
0.45% On the entire balance larger than $200 million

The fees described above generally apply to advisory fees paid to Jennison. However, client accounts will bear all fees and expenses related to the management of their investments. These may include charges from custodians, brokers, third-party investment managers and more

What to Watch Out For

Jennison had no disciplinary or legal action to disclose in its recent filings with the Securities and Exchange Commission. 

One thing to note: Jennison Associates does not provide wealth management or financial planning services to individuals. It works only with institutional and professional clients.

Opening an Account With Jennison Associates

To contact Jennison, visiting its website https://www.jennison.com/ or call the firm’s headquarters at (212) 421-1000.

All information was accurate as of the writing of this article.

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How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research