Multi-Sector Global Dynamic Bond

Investment Objective

The investment objective of the Global Dynamic Bond strategy is to outperform the ICE BofAML 3-Month LIBOR Index (the "Index") by +425 bps over a full market cycle on a total return basis.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

Available Vehicles

Separate Account

Mutual Fund

Investment Philosophy

The Global Dynamic Bond strategy is an actively managed strategy that combines "best ideas" from macro top-down and credit/country bottom-up teams across PGIM Fixed Income opportunistically using geography, 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.

Sector Allocation:

160 bps

 

Subsector and Security Selection:

125 bps

 

Duration/Curve:

70 bps

 

Currency:

70 bps

Investment Process

PGIM Fixed Income employs a disciplined, four-step investment process to manage Global Dynamic Bond portfolios:

1. Top Down Risk Allocation:

Assess global appettite for risk to determine portfolio risk profile, leveraging firm's resources.

 

2. Asset Allocation - Global Rates, FX, & Spread Sector Allocation:

Determine country/term structure, currency, and sector positioning. Ideas from sector specialists are emphasized.

 

3. Security Selection & Relative Value:

Bottom-up research-based approach. Sector specialists and research analysts aligned by sector/industry.

 

4. Risk Management:

Employ a rigorous process to tightly monitor risk as all levels. Use proprietary tools to verify performance achieved is appropriate for risk taken.

Senior Portfolio Managers

 

Robert Tipp

CFA, Managing Director, Chief Investment Strategist, and Head of Global Bonds

 

Michael Collins

CFA, Managing Director and Senior Portfolio Manager