Credit Income

Investment Objective

PGIM Fixed Income's Credit Income Strategy seeks total return, through a combination of current income and capital appreciation. The strategy seeks to achieve its investment objective by investing in a multi-sector fixed income portfolio of less liquid credits and securitized products, utilizing both public and private securities.¹

Investment Philosophy

The Strategy's investment approach accesses PGIM Fixed Income’s best ideas across public and private credit and securitized markets. Further, the Strategy has a diversified opportunity set, which focuses on a broad array of private, public and opportunistic fixed income sectors. The Credit Income Strategy also utilizes PGIM Fixed Income’s resources and market leadership across public and private markets to drive opportunity set. The Strategy’s longer-term investment horizon and liquidity profile can help minimize the negative impact of large redemptions

The Strategy utilizes its risk management framework to focus risk in areas with the highest potential reward while limiting downside risk.

Features of the Credit Income Strategy include:

• Diversified portfolio of more illiquid names of approximately 60+ issuers
• Leverage
• Shorting Allowed

Investment Process

PGIM Fixed Income's Credit Income Strategy's sources its discretionary best ideas across a private and public multi-sector universe comprised of 2000+ issuers. The investment process also utilizes:

Fundamental and Relative Value Assessments - Portfolio managers and credit analysts, specialized and aligned by sector, identify best ideas by sector, geography & currency:

• Evaluate all industries and issuers focusing on asset quality, transparency and business model
• Utilize proprietary framework to assess relative value across all sectors and issuers
• Identify best total return ideas achieved from capital appreciation or spread opportunity

Expected Port-Leverage Return Profiles - Overlay relative value framework with expected leverage

High Conviction Ideas - Long highest conviction sector and issuer investments combined with the lowest relative value ranking