Investment-Grade Corporates European Corporate

Investment Objective

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

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.

Available Vehicles

Separate Account

UCITS

Investment Philosophy

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.

Security Selection:

60 bps

 

Subsector/Industry Allocation:

40 bps

 

Duration/Yield Curve:

0-5 bps

Investment Process

PGIM Fixed Income employs a disciplined, three-step investment process to manage European Corporate Portfolios:

  1. Leverage firm resources to define the current global backdrop and risk appetite

  2. Portfolio strategy and construction

    Portfolio Strategy

    • Market strategists provide macroeconomic assessment

    • Senior investment professionals assess market environment and recommend sector allocations
    •  
    • Portfolio managers actively analyze benchmark
    Arrow Right

    Asset Allocation

    • Research teams conduct intensive in-depth evaluation of all issuers in the universe
    •  

    Expertise across all areas:

    • Fundamental
    • Structured
    • Quantitative
    Arrow Right

    Relative Value Analysis

    Expertise across all areas:

    • Choose regions & select countries that reflect macro perspective
    • Choose fundamentally strong credits with best relative value
  3. A rigorous process is employed to monitor risk at all levels

Senior Portfolio Managers

 

Steven Kellner

CFA, Managing Director and Head of Investment Grade Corporates

 

Edward Farley

Managing Director and Head of the European Corporate Bond Team