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The investment objective of PGIM Fixed Income's Strategic Bond strategy is to outperform the Bloomberg Barclays U.S. Intermediate Aggregate Bond Index (the "Index") by +375 bps over a full market cycle on a total return basis.1,2
The Strategic Bond strategy is an actively managed strategy that seeks to achieve positive returns by investing across a broad range of fixed income sectors, securities and derivatives. The strategy combines "best ideas" from macro top-down and credit bottom-up teams across PGIM Fixed income opportunistically using asset class and sector ideas to find alpha generating trades. Portfolio positioning at any given time is based on where we believe the most attractive risk-adjusted values lie across the investable universe. The strategy is designed to provide flexibility to respond to changing market opportunities to both generate alpha and to mitigate downside risk diversifying across individual issuers, industries and country positions.
PGIM Fixed Income employs a disciplined, three-step investment process to manage Strategic Bond 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 September 30, 2020.