Investment-Grade Corporates U.S. Corporate

Investment Objective

 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 with a tracking error budget of 100 bps.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 Trusts

Mutual Fund

UCITS

Investment Philosophy

PGIM Fixed Income constructs and manages portfolios in the 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 corporate market benchmark.

Individual security selection and subsector/industry rotation comprise the majority of alpha in the Corporate Fixed Income Strategy.

Security Selection:

35 bps

 

Subsector/Industry Allocation:

25 bps

 

Duration/Yield Curve:

0-5 bps

Investment Process

PGIM Fixed Income employs a disciplined, three-step investment process to manage U.S. 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