Where the ESG Flowers Should Bloom
David Hunt joins Funds Europe for a discussion on the rise of ESG investing.
NEWARK, N.J., Feb. 2, 2021 – QMA, the quantitative equity and multi-asset solutions specialist of PGIM, the $1.4 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU), has launched PGIM Quant Select, the first service for registered investment advisors (RIAs) that combines active multifactor equity solutions with customized environmental, social and governance (ESG) and tax management. PGIM Quant Select delivers institutional-level experience from one of the world’s largest asset managers through an intuitive online platform enabled by San Francisco-based financial technology company Just Invest.
PGIM Quant Select offers five advantages that have not previously been delivered in combination for separately managed account (SMA) clients: active multifactor investing, tax management, custom ESG solutions, innovative technology, and flexible account minimums starting at $50,000.
“The future of the investment industry lies at the intersection of active management and customized solutions,” QMA’s chief executive officer Andrew Dyson said. “ESG investing is growing in popularity in the United States, but everyone’s definition of ESG is different, as are their sustainability goals. PGIM Quant Select takes a personalized approach to ESG, allowing advisors to align their clients’ investments with their values.”
Dyson continued, “With active quant at its core and flexible account minimums, PGIM Quant Select is democratizing ESG investing. We are opening up decades of institutional experience to a wider range of investors—all backed by the full capabilities of QMA.”
PGIM Quant Select seeks to deliver systematic solutions to individual investment problems, building portfolios based on a dynamic combination of factors. The new service draws from QMA’s 45 years of expertise providing quant-based solutions to institutional clients, harnessing fundamental insights built on academic and macroeconomic foundations.
The technology that powers PGIM Quant Select is designed specifically for ease of use, showcasing clear options for market exposure, tax expectations, and thematic and issue-driven sustainability with on-demand reporting. PGIM Quant Select allows clients to select their preferred level of ESG exposure. Customization includes specific stock restrictions and values-based investing options, which help investors align their portfolios with their personal beliefs.
Just Invest CEO Jonathan Hudacko said, “We are excited to partner with QMA and share their vision to bring institutional-level offerings to a broader market that is increasingly looking to align their investments with their personal values. Just Invest was built on that foundation and this is the perfect opportunity to offer advisors and their clients a service that delivers the best of modern finance that reflects the desires of investors and deepens the relationship between the advisor and investor.”
PGIM Quant Select will be available to RIAs by the end of 1Q 2021.
QMA is a complete quantitative player. We draw from the latest market data to help guide our clients with specific risk and return needs through any economic climate. Our multifactor portfolios provide cost-efficient diversification, along with the collective wisdom that comes from decades of enhancements to our decision-making models.
QMA’s worldwide institutional client base includes corporate and public pension plans, endowments and foundations, multiemployer pension plans, and subadvisory accounts for other financial services companies. As of December 31, 2020, QMA had approximately $120.3 billion in assets under management.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world1 with more than $1.4 trillion in assets under management as of Sept. 30, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) 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. For more information please visit news.prudential.com.
1 Prudential Financial, Inc. (PFI) is the 10th largest investment manager (out of 527 firms surveyed) in terms of global assets under management based on Pensions & Investments’ Top Money Managers list published on June 1, 2020. This ranking represents global assets under management by PFI as of March 31, 2020.