Summary

• The PGIM Jennison Utility Fund advanced though underperformed the 8.3% return of the S&P 500 Utilities Index for the first quarter.
• Overall, U.S. utility stocks performed solidly in 1Q26, outperforming the broad U.S. equity indices.
• Within the utilities sector, the Fund's overweight to IPPs along with stock selection in that segment was the largest detractor from relative results.

Market Review

Overall, U.S. utility stocks performed solidly in 1Q26, outperforming the broad U.S. equity indices. 2025 was a year that provided powerful reminders that the benefits of Artificial Intelligence (AI)-related power demand also extend to regulated electric utilities as