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The European Corporate Fixed Income Strategy is a single sector product that invests primarily in investment grade corporate bonds of European country issuers. The Strategy is managed to achieve an excess return of +100 bps over a iBoxx Euro Corporate Index (USD Hedged), over a full market cycle. 1,2
PGIM Fixed Income constructs and manages portfolios in the European Corporate Fixed Income Strategy based on the philosophy that bottom-up industry and issue research and security selection, including relative value trading, generate high information ratios and, when executed successfully, can provide sustainable excess return over a European corporate market benchmark.
PGIM Fixed Income employs a disciplined, three-step investment process to manage European Corporate Portfolios:
1 There is no guarantee that these objectives will be met.
2 On average, over a full market cycle defined as three to five years.
No risk management technique can guarantee the mitigation of elimination of risk in any market environment.
Source: PGIM Fixed Income as of December 31, 2020.