Investment Strategies

Investment Strategies

PGIM Fixed Income’s investment capabilities cover a global range of broad market and sector-specific strategies, as well as alternative and LIBOR-based strategies

Multi-Sector

PGIM Fixed Income's 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.

PGIM Fixed Income’s Core Fixed Income Strategy is an actively-managed, multi-sector investment grade fixed income strategy that typically seeks +60 bps annualized over the Bloomberg Barclays U.S. Aggregate Bond Index or similar broad market benchmark over a full market cycle.

PGIM Fixed Income’s Core Conservative Strategy is a benchmark-focused, risk-controlled, investment grade Core strategy that seeks +25 bps excess return over the Barclay’s Aggregate Index over a market cycle.

PGIM Fixed Income's Core Plus Fixed Income Strategy seeks to add +150 bps of annualized excess return over a broad market fixed income index over a full market cycle.

PGIM Fixed Income's Global Core Strategy seeks to outperform Bloomberg Barclays Global Aggregate Index (the "Index") or similar index by +100 bps over a full market cycle.

PGIM Fixed Income's Global Dynamic Bond Strategy seeks to outperform the ICE BofAML 3-Month LIBOR Index (the "Index") by +425 bps over a full market cycle on a total return basis.

PGIM Fixed Income's Global Total Return Strategy seeks to add +200 bps of annualized gross excess return over the Bloomberg Barclays Global Aggregate Index over a full market cycle.

The investment objective of the Intermediate Core Fixed Income Strategy is to outperform Bloomberg Barclays U.S. Intermediate Aggregate Index (the "Index") or similar index by +50 bps.

PGIM Fixed Income's Long Duration Government/Credit Bond strategy seeks to outperform the Bloomberg Barclays U.S. Long Government/Credit Index (the "Index") by +60 bps over a full market cycle.

PGIM Fixed Income's Multi-Asset Credit Strategy is an actively managed, diversified strategy that seeks to add +400 bps of annualized gross excess return over the ICE BofAML 3-Month LIBOR Index over a full market cycle.

PGIM Fixed Income's Strategic Bond Strategy seeks 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.

PGIM Fixed Income's Strategic Credit Strategy is an actively managed strategy that seeks to add +165 bps of annualized gross excess return over a custom blended (U.S. high yield, U.S. bank loan, and EM) benchmark over a full market cycle.

Investment-Grade Corporates

PGIM Fixed Income's European Corporate Fixed Income Strategy seeks to achieve an excess return of +100 bps over the iBoxx Euro Corporate Index (USD Hedged) over a full market cycle.

PGIM Fixed Income's Global Corporate Fixed Income Strategy seeks to achieve an excess return of +100 bps over a global corporate bond benchmark, typically the Bloomberg Barclays Global Corporate Index (Unhedged), over a full market cycle.

PGIM Fixed Income’s U.S. Corporate Fixed Income Strategy is a single sector product, investing primarily in the investment grade corporate fixed income market. The Strategy is managed to achieve an excess return of +60 bps over a corporate market benchmark over a full market cycle..

Leveraged Finance

PGIM Fixed Income's European Bank Loan Strategy seeks to provide +150 bps in excess return over the Credit Suisse Western European Leveraged Loan Index (EUR hedged) or a similar market index over a full market cycle.

PGIM Fixed Income's European High Yield Bonds Strategy seeks to outperform the ICE BofAML Euro HY ex Finance 2% Constrained Index by 125 bps over a full market cycle.

PGIM Fixed Income's Global Senior Secured Loans Strategy seeks to provide +100 bps in excess return over a customized blend of the Credit Suisse Leveraged Loan Index and the Credit Suisse Western European Leveraged Loan: Euro Denominated (USD Hedged), or a similar market index over a full market cycle.

PGIM Fixed Income's Global High Yield Strategy seeks to outperform the Bloomberg Barclays Global High Yield Index or a similar index by +125 bps over a full market cycle.

PGIM Fixed Income's U.S. Senior Secured Loans Strategy seeks to provide +100 bps in excess return over the Credit Suisse Leveraged Loan Index or a similar market index over a full market cycle.

PGIM Fixed Income's Broad Market High Yield Strategy seeks to earn 125 bps of alpha versus the Bloomberg Barclays U.S. High Yield Index.

PGIM Fixed Income's Higher Quality High Yield Strategy seeks to add +125 bps of alpha over the Bloomberg Barclays U.S. High Yield Ba/B 1% Capped Index over a full market cycle.

Emerging Markets

PGIM Fixed Income's Emerging Markets Corporate Debt Strategy seeks to outperform the JP Morgan CEMBI Global Diversified Index (the "Index") by +150 bps over a full market cycle.

PGIM Fixed Income's Emerging Markets Total Return Strategy seeks to generate +450 bps of annualized gross excess return over ICE BofAML 3-Month LIBOR over a full market cycle.

PGIM Fixed Income's Emerging Markets Debt Hard Currency Strategy seeks to outperform the JPM EMBI Global Diversified Index (the "Index") or similar index by +200 bps over a full market cycle.

PGIM Fixed Income's Emerging Markets Debt Blend Strategy seeks to outperform the blend of the JPM EMBI Global Diversified & GBI-EM Global Diversified indices (the "Index") by +200 bps over a full market cycle.

PGIM Fixed Income's Emerging Markets Debt Local Strategy seeks to outperform the JPM GBI-EM Global Diversified Index (the "Index") by +150 bps over a full market cycle.

Alternatives

PGIM Fixed Income's Emerging Markets Debt Long/Short Strategy seeks to maximize its total return in excess of ICE BofAML 3-Month LIBOR on a risk-adjusted basis over a full market cycle.

PGIM Fixed Income’s Global Liquidity Relative Value Strategy is a market-neutral strategy investing in liquid sectors of developed country fixed income markets and select emerging markets that seeks to maximize total return on a risk-adjusted basis.

PGIM Fixed Income’s U.S. Liquidity Relative Value Strategy is a market-neutral, non-credit strategy investing in liquid sectors of the U.S. fixed income market that seeks to maximize returns relative to ICE BofAML 3-Month LIBOR.

PGIM Fixed Income's U.S. Liquidity Relative Value (S&P 500 Overlay) Strategy seeks to achieve a 1.0 beta to the S&P 500 Total Return Index while adding significant alpha over this beta/benchmark exposure.

Liability-Driven Investing

PGIM Fixed Income has extensive experience managing liability-driven portfolios, available through custom liability cashflow strategies, completion & overlay strategies, and market-based index strategies.

CLO Management

PGIM Fixed Income has extensive experience as a global manager for collateralized loan obligations within cash and synthetic structures. Please visit our CLO site for additional information.

 


For Professional Investors only. All investments involve risk, including possible loss of capital.

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.

Source(s) of data (unless otherwise noted): PGIM Fixed Income.

Pursuant to the international adviser registration exemption in National Instrument 31-103, PGIM, Inc. is informing you of that: (1) PGIM, Inc. is not registered in Canada and is advising you in reliance upon an exemption from the adviser registration requirement under National Instrument 31-103; (2) PGIM, Inc.’s jurisdiction of residence is New Jersey, U.S.A.; (3) there may be difficulty enforcing legal rights against PGIM, Inc. because it is resident outside of Canada and all or substantially all of its assets may be situated outside of Canada; and (4) the name and address of the agent for service of process of PGIM, Inc. in the applicable Provinces of Canada are as follows: in Québec: Borden Ladner Gervais LLP, 1000 de La Gauchetière Street West, Suite 900 Montréal, QC H3B 5H4; in British Columbia: Borden Ladner Gervais LLP, 1200 Waterfront Centre, 200 Burrard Street, Vancouver, BC V7X 1T2; in Ontario: Borden Ladner Gervais LLP, 22 Adelaide Street West, Suite 3400, Toronto, ON M5H 4E3; in Nova Scotia: Cox & Palmer, Q.C., 1100 Purdy’s Wharf Tower One, 1959 Upper Water Street, P.O. Box 2380 - Stn Central RPO, Halifax, NS B3J 3E5; in Alberta: Borden Ladner Gervais LLP, 530 Third Avenue S.W., Calgary, AB T2P R3.

It is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. The views and opinions expressed herein are those of PGIM Fixed Income and are subject to change without notice. PGIM, Inc. is the principal asset management business of Prudential Financial, Inc. (PFI) and is a registered investment adviser with the United States Securities and Exchange Commission.  PGIM is a trading name of PGIM, Inc. and its global subsidiaries. In the United Kingdom, and in various European Economic Area (EEA) jurisdictions, information is issued by PGIM Limited, an indirect subsidiary of PGIM, Inc.   PGIM Limited registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR is authorised and regulated by the Financial Conduct Authority of the United Kingdom (registration number 193418) and duly passported in various jurisdictions in the EEA.  These materials are issued to persons who are professional clients or eligible counterparties for the purposes of the Financial Conduct Authority’s Conduct of Business Sourcebook. In Japan, investment management services are made available by PGIM Japan Co., Ltd. (PGIM Japan), a registered Financial Instruments Business Operator with the Financial Services Agency of Japan.  In Hong Kong, information is presented by representatives of PGIM (Hong Kong) Limited, a regulated entity with the Securities and Futures Commission in Hong Kong to professional investors as defined in Part 1 of Schedule 1 of the Securities and Futures Ordinance.  In Singapore, information is issued by PGIM (Singapore) Pte. Ltd. (PGIM Singapore), a Singapore investment manager that is licensed as a capital markets service license holder by the Monetary Authority of Singapore and an exempt financial adviser. These materials are issued by PGIM Singapore for the general information of “institutional investors” pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the SFA) and “accredited investors” and other relevant persons in accordance with the conditions specified in Sections 305 of the SFA.  In South Korea, information is issued by PGIM, Inc., which is licensed to provide discretionary investment management services directly to South Korean qualified institutional investors.

The information on this website is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In making the information available on this website, PGIM, Inc. and its affiliates are not acting as your fiduciary under ERISA, any Department of Labor regulations or any other statutes or regulations.

Any discussion of risk management is intended to describe PGIM Fixed Income’s efforts to monitor and manage risk but does not imply low risk.  All investing involves risk, including the risk of loss.  Fixed Income securities are subject to certain risks, including credit, interest rate, issuer, market and inflation risk.  Foreign and emerging market securities are subject to currency, political, economic and market risks, which may be enhanced in emerging market countries.  High Yield securities are lower rated securities that may have a higher degree of credit and liquidity risk.  Mortgage and asset-backed securities are sensitive to early prepayment risk, a higher risk of default and may be hard to value and difficult to sell.  U.S. government securities may not be backed by the full faith and credit of the U.S.; thus, these issuers may not be able to meet their future payment obligations.  With sovereign debt securities, the issuer or governmental authority that controls the repayment of the debt may not be willing or able to repay the principal and/or pay the interest when it becomes due, in accordance with the terms of such obligations.  Collateralized mortgage obligations may have unpredictable cash flows that can increase the risk of loss.  Public bank loans are subject to liquidity risks of lower rated securities.  The use of derivative instruments may disproportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks.

There is no guarantee that any investment strategy will achieve its objective under all market conditions or be suitable for all investors.  Each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market.  

The views and opinions expressed herein are those of PGIM Fixed Income and are subject to change without notice.

Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. Prudential, PGIM, their respective logos and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

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2018 RTS 28 Report - PGIM Limited (PGIM Fixed Income)

2017 RTS 28 Report - PGIM Limited (PGIM Fixed Income)