Investment-Grade Credit

Global Corporate

Fact Sheet
1132579781

Investment Objective

The Global Corporate Fixed Income Strategy seeks to maximize excess returns versus the Bloomberg Global Corporate Index (Unhedged) over the long term.1

Investment Philosophy

The majority of bonds held in a global corporate bond portfolio are typically included in the portfolio’s benchmark. If permitted by client investment guidelines, we would also invest nominally (up to 10% of assets) in higher quality high yield bonds, crossover securities, emerging markets debt, and derivatives.

The Strategy does not take large currency positions and does not invest in local emerging markets debt.

The Strategy is duration-neutral; duration typically ranges from +/-0.1 year of benchmark.

PGIM constructs and manages global corporate fixed income portfolios based on the philosophy that bottom-up industry and security selection generate high information ratios and, when executed successfully, can provide sustainable excess return over a global corporate bond benchmark.

We follow this same philosophy in all global, U.S., and European corporate fixed income portfolios.

The Strategy seeks to capture several market inefficiencies.

  • First, we seek to anticipate both positive and negative credit events before others do, through our large, internal corporate bond credit research staff.
  • We organize our corporate portfolio managers and analysts by industry/region, fostering an in-depth knowledge of many companies, including ones not always followed closely by other firms.
  • We seek to capture aberrations in the yield curve, using proprietary modelling.
  • Finally, we seek to capture inefficiencies driven by supply/demand and other technical factors, such as a dislocation in spreads among different maturity bonds of the same issuer or a dislocation in spreads between USD, Euro, GBP, yen, and other currency-denominated securities of the same issuer.

Investment Process

1. Leverage firm resources to define the current global backdrop and risk appetite

2. Portfolio strategy and construction

Portfolio Strategy

Market strategists provide macroeconomic assessment, senior investment professional assess market environment and recommend sector allocations, and portfolio managers actively analyze benchmark

Research

Research teams conduct intensive in-depth evaluation of all issuers in the universe with expertise across all areas:

  • Fundamental
  • Structured
  • Quantitative

Relative Value Analysis

Portfolio managers evaluate and maximize relative value among approved universe:

  • Choose regions and countries that reflect macro perspective
  • Choose fundamentally strong credits with best relative value

3. A rigorous process is employed to monitor risk at all levels

Past performance is not a guarantee or a reliable indicator of future results. Your capital is at risk and the value of investments can go down as well as up. No investment strategy or management technique can guarantee returns or eliminate risk in any market environment. Where overseas investments are held the rate of currency may cause the value of investments to fluctuate. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Non-USD securities are converted to USD using a spot rate conversion.

1 Gross target excess returns do not reflect the deduction of investment advisory fees and other expenses, which will reduce returns and may be substantial. Net target excess returns reflect the deduction of a model fee equal to the highest fee borne by a portfolio utilizing the strategy. Targets are shown for illustrative purposes only, are subject to change and are current as of the date of this presentation only. Targets are objectives and should not be construed as providing any assurance or guarantee as to the results that may be realized in the future from investments in any asset or asset class described herein. If any of the assumptions used do not prove to be true, results may vary substantially. Available for professional and institutional investors only. Please see the Notice for additional important disclosures regarding the information contained herein.

Source: PGIM Credit as of June 30, 2026.

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