Multi-Sector Strategic Bond

Investment Objective

The investment objective of PGIM Fixed Income's Strategic Bond strategy is to outperform the 3-Month U.S. Dollar LIBOR Index (the "Index") by +400 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 Strategic Bond strategy is an actively managed strategy that seeks to achieve positive returns by investing across a broad range of fixed income sectors, securities and derivatives. The strategy combines "best ideas" from macro top-down and credit bottom-up teams across PGIM Fixed income opportunistically using 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:

200 bps

 

Subsector and Security Selection:

100 bps

 

Duration/Curve/Currency:

100 bps

Investment Process

PGIM Fixed Income employs a disciplined, three-step investment process to manage Strategic Bond 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

    Asset Allocation

    • Determine risk, sector, and term structure positioning

    • Incorporate themes given current market dynamics

    • Ideas from sector specialists are emphasized

    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