NINE WAYS NEW ESG REPORTING RULES CAN HELP INVESTORS
Variability in companies’ Environmental, Social and Governance (ESG) disclosures inhibits the ability of investors to analyse and compare investments.
Environmental, Social and Governance (ESG) investing, also known as sustainable investing, seeks positive returns and long-term impact on the environment, society and the performance of the business. At PGIM Investments, we approach responsible investing in a manner that is consistent with Prudential Financial Inc.'s (PFI's) long-term commitment to sustainability. As active investors, we strive to embed ESG best practices throughout our investment, risk and talent management processes, while delivering investment performance and staying true to our role as a fiduciary and risk manager.
We believe that ESG factors impact the performance of investment portfolios, and we strive to deliver a broad range of ESG strategies to help our clients achieve their financial goals while maintaining the freedom to express their policies, views and beliefs.
PGIM Investments’ broad lineup of fixed income ESG funds is constructed using proprietary ESG impact ratings to assess issuers’ impact on the environment and society. With a team of more than 110 analysts along with oversight from an ESG committee, every issuer is carefully assessed and assigned a rating. This complete integration of ESG factors helps drive higher risk-adjusted returns.
Variability in companies’ Environmental, Social and Governance (ESG) disclosures inhibits the ability of investors to analyse and compare investments.
Fund selectors from Europe and Asia reported a healthy appetite for ESG investment options despite concerns about greenwashing and inconsistent standards.
Examining the complex data, regulatory and performance considerations involved in effective fixed income ESG fund analysis.
For Professional Investors only. All investments involve risk, including the possible loss of capital.
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The information on this website is for informational or educational purposes. The information is not intended as investment advice and is not a recommendation about managing or investing assets. In providing these materials, PGIM is not acting as your fiduciary. This webpage qualified in its entirety by reference to the more complete information contained in the PGIM Funds plc's Prospectus (the “Prospectus”), Supplement (the “Supplement”) and Key Investor Information Document (the “KIID”) or Key Information Document (the “KID”), depending on the jurisdiction (collectively the “Fund Documents”). Capitalised terms used herein without definition have the respective meanings provided in the Prospectus, Supplement and KIID/KID, as applicable. Investors should review the fund documents and seek advice prior to making an investment.
Risks
An investment in the funds involve a high degree of risk, including the risk that the entire amount invested may be lost. The funds are primarily designed to purchase certain investments, which will introduce significant risk to the funds, including asset performance, price volatility, administrative risk, and counterparty risk. No guarantee or representation is made that any fund's investment program will be successful, or that such fund's returns will exhibit low correlation with an investor's traditional securities portfolio.
The Funds may be deemed to be a speculative investment and is not intended as a complete investment program. Investment in the Funds is suitable only for persons who can bear the economic risk of the loss of their investment and who meet the conditions set forth in the Fund Documents. There can be no assurances that the Fund will achieve its investment objective. Prospective and existing Shareholders should carefully consider the risks involved in an investment in the Funds, including, but not limited to, those discussed in the Fund Documents. Prospective and existing Shareholders should consult their own legal, tax and financial advisors about the risks of an investment in the Fund. Any such risk could have a material adverse effect on the Funds and its Shareholders.
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In connection with an investment in the Fund, in addition to reviewing the information, you should review the Fund Documents (Prospectus, the Supplement and the KIID/KID). You should review and carefully consider these documents, especially the risk factors explained within them, and should seek advice from your legal, tax, and other relevant advisers before making any decision to subscribe for the Fund’s Shares. If there is any conflict between this information and the Fund Documents, the Fund Documents shall prevail. You must rely solely on the information contained in the Fund Documents in making any decision to invest in the Fund.
The Fund Documents as well as the latest annual and semi-annual report and accounts are available in English and can be obtained free of charge at PGIM Limited (at its registered office at Grand Buildings, 1-3 Strand Trafalgar Square, London, WC2N 5HR, United Kingdom or at www.pgimfunds.com) and/or PGIM Investments (Ireland) Limited (at its registered office at 2nd Floor, 5 Earlsfort Terrace, Dublin 2, Ireland or at www.pgimfunds.com) and/or PGIM Netherlands B.V. (at its registered office at Gustav Mahlerlaan 1212, 1081 LA, Amsterdam, The Netherlands or at www.pgimfunds.com) and/or PGIM Luxembourg S.A. (at its registered office at 2, boulevard de la Foire, L-1528 Luxembourg or at www.pgimfunds.com). The KIIDs/KIDs can be obtained from www.pgimfunds.com and are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the UCITS Directive). In addition, a summary of investor rights is available from www.pgimfunds.com. The summary is available in English. The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. PGIM Funds plc can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
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