Multi-Sector

Global Total Return

Fact Sheet
1132579781

Investment Objective

The Global Total Return Strategy seeks to maximize excess returns versus the Bloomberg Global Aggregate Index over the long term.1

Investment Philosophy

The Strategy seeks highly diversified, sustainable sources of excess return across global fixed income sectors and currencies with an emphasis on managing downside risk. The Strategy’s approach focuses on relative-value based country and sector allocation, research-based sub-sector and security selection, and duration, yield curve, and currency management. The Strategy favors the credit-oriented sectors, reflecting the Firm’s significant research expertise.

The Strategy invests in debt securities of developed and emerging foreign corporations and governments (including supranational organizations, semi-governmental entities, or government agencies); in investment-grade developed market mortgages and mortgage-related securities; and in developed and emerging short-term and long-term bank debt securities or bank deposits. We look mostly for investment-grade securities denominated in U.S. dollars or foreign currencies but may also invest a portion of assets in non-investment grade, high yield bonds. The Strategy may invest in derivatives to generate alpha and hedge risk exposures.

The Strategy’s philosophy is that diversified portfolios, built through the integration of credit research, quantitative research, and risk management, can achieve consistent excess returns for clients with a high information ratio. This same research-based, relative-value oriented process is implemented across all multi-sector fixed income strategies managed by PGIM.

The Strategy represents a culmination of our best ideas throughout the firm.

We seek to capture several market inefficiencies when investing across the global fixed income markets.

  • We seek to anticipate both positive and negative economic and credit-related events before others do, through our large internal research staff.
  • To do so, we organize our macroeconomic, portfolio management and research teams by region/sector/ industry, fostering an in-depth knowledge of trends and individual companies, including ones not always followed closely by Wall Street.
  • We also seek to capitalize on currency dislocations and aberrations in yield curves using proprietary modeling.
  • We seek to capture inefficiencies driven by supply/demand and other technical factors, such as dislocations in spreads across different countries, sectors, industries, and even different maturity bonds, or bonds and loans, of the same issuer.

Investment Process

1. Top Down Risk Allocation:

Assess global appettite for risk to determine portfolio risk profile, leveraging firm's resources. 

2. Asset Allocation - Global Rates, FX, & Spread Sector Allocation:

  • Determine country/term structure, currency, and sector positioning.
  • Ideas from sector specialists are emphasized. 

3. Security Selection & Relative Value:

  • Bottom-up research-based approach.
  • Sector specialists and research analysts aligned by sector/industry.  

4. Risk Management:

  • Employ a rigorous process to tightly monitor risk as all levels.
  • Use proprietary tools to verify performance achieved is appropriate for risk taken.

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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