Multi-Sector Long Duration Government/Credit

Investment Objective

The investment objective of the Long Duration Government/Credit Bond strategy is to outperform the Bloomberg Barclays U.S. Long Government/Credit Index (the "Index") by +60 bps 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

Available Vehicles

Separate Account

Collective Trust

Investment Philosophy

The Long Duration Government/Credit Bond Strategy seeks to maximize its excess return in equal increments of top-down sector allocation and bottom-up subsector and security selection, with an emphasis on the credit and "spread" sectors..

Sector Allocation:

20-40 bps

 

Subsector and Security Selection:

15-40 bps

 

Duration/Curve/Currency:

0-10 bps

Investment Process

PGIM Fixed Income employs a disciplined, three-step investment process to manage Long Duration Government/Credit Portfolios:

  1. Senior investment team assesses global market environment:

    • Economic research
    • Sector analysis
  2. Senior portfolio managers construct portfolio with sector specialists and analysts

    Risk Budgeting

    • Establish risk targets within client's risk budget

    • Capture thresholds for systematic and idiosyncratic risks
    Arrow Right

    Asset Allocation

    • Determine risk, sector, and term structure positioning

    • Incorporate themes given current market dynamics

    • Ideas from sector specialists are emphasized
    Arrow Right

    Security Selection

    • Sector specialists and research analysts aligned by industry determine individual securities

    • Research-based approach
  3. Senior portfolio managers and risk managers oversee risk positions

Senior Portfolio Managers

 

Michael Collins

CFA, Managing Director and Senior Portfolio Manager

 

Gregory Peters

Managing Director and Senior Portfolio Manager

 

Richard Piccirillo

Managing Director and Senior Portfolio Manager