Core/Core Plus

Actively managed Core and Core Plus strategies that seek an excess return over the Barclays U.S. Aggregate Bond Index or similar benchmark. Core strategy is investment grade-focused and seeks to generate its excess return from fairly equal increments of both sector allocation and subsector/security allocation. Duration and yield curve positioning have not historically been primary sources of excess return. Core Plus strategy seeks to generate approximately half of its excess return from sector allocation, and up to one-third each from subsector/security selection and duration/ yield curve/currency positioning, depending on market conditions. Actively allocates to both benchmark and non-benchmark sectors, with emphasis on the credit-oriented sectors.

Investment Approach

  • Diversified portfolios across sectors, subsectors, issuers, and maturities
  • Active sector rotation all across fixed income market sectors
  • Bottom-up research-driven subsector/security selection
  • Expected modest duration, yield curve, and currency exposure
  • Comprehensive approach to risk management
Why Prudential Fixed Income?

Resources and Presence to Source Best Ideas Globally

  • Our global presence provides a broad perspective of credit markets and our expertise spans multiple strategies
  • Teams globally aligned to allow for appropriate evaluation and implementation of new ideas
  • 82 career analysts with senior analysts averaging 16 years investment experience

Broadly Diversified Portfolios Across Fixed Income Sectors, Industries, and Issuers

  • We seek to extract multiple sources of alpha through active allocations across spread sectors
  • Intense focus on industry and issuer credit research
  • A collaborative bottom-up, research-driven security selection process where managers and analysts make joint decisions

Emphasis on Quantitative Research and Risk Management

  • Feedback and monitoring of active risk positions daily
  • 64 member team focused on proprietary quantitative analytics, risk management, and performance attribution
  • A quantitative modeling and risk management infrastructure and proprietary tools aim to aid in alpha generation

As of March 31, 2014. ¹ Source: Institutional Investor. May 2012. Award winners were chosen by the editorial staff of Institutional Investor magazine based on market intelligence, performance data (including 1, 3, 5, and 10-year returns, risk data (standard deviation, Sharpe, and Sortino ratios) and additional information received from the industry following a public call for nominations. The magazine also considered the results of a survey conducted of 1,000 institutional investors overseeing the premier endowments, foundations, corporate, and public pension plans, and other institutions. ² Includes two broad market fixed income portfolios (representing $2 billion) that allocate to the "Plus" sectors.

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Highlights

  • Named top manager of U.S. Core Plus strategies by Institutional Investor at 3rd Annual U.S. Investment Management Awards¹
  • $30 billion in Core/Core Plus strategy assets²
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