Multi-Sector Absolute Return
The Absolute Return Fixed Income Strategy is an actively managed, diversified strategy that seeks +300 bps of annualized gross excess return over the ICE BofAML 3-month LIBOR Index over a full market cycle.1,2 Unconstrained by a traditional benchmark, the Strategy seeks to capitalize on the Firm’s ‘best ideas’ by allocating assets across the full spectrum of global fixed income securities and currencies, while maintaining a duration profile similar to that of the cash-like benchmark.
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.
PGIM Fixed Income employs a disciplined, three-step investment process to manage Absolute Return Fixed
Senior investment team assesses global market environment:
- Economic research
- Sector analysis
Senior portfolio managers construct portfolio with sector specialists and analysts
- Establish risk targets within client's risk budget
- Capture thresholds for systematic and idiosyncratic risks
- Determine risk, sector, and term structure positioning
- Incorporate themes given current market dynamics
- Ideas from sector specialists are emphasized
- Sector specialists and research analysts aligned by industry determine individual securities
- Research-based approach
Senior portfolio managers and risk managers oversee risk positions