Core Conservative

Benchmark-focused, investment grade bond strategy that seeks an excess return over the Barclays U.S. Aggregate Bond Index or similar benchmark. Strategy has historically generated virtually all of its excess return from bottom-up subsector and security selection, with top-down decisions such as duration, yield curve, and sector positioning tightly constrained to benchmark weightings at all times.

Investment Approach

  • Lower expected risk alternative to Core strategies
  • Higher expected alpha alternative to passive strategies
  • Research-driven security selection
  • Tightly constrained to benchmark
Why Prudential Fixed Income?

Security selection adds value in sustainable fashion

  • Experienced sector specialists supported by extensive credit and quantitative research resources

Benchmark-oriented approach seeks to minimize tracking error

  • Tightly constrain duration, yield curve, and sector allocation

Comprehensive firm-wide approach to risk management

  • Feedback and monitoring of active risk positions daily
  • Comprehensive risk budgeting, monitoring, and performance attribution

As of March 31, 2014.

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Highlights

  • 24 years of consistent annual outperformance vs. benchmark
  • Popular underlying investment strategy for stable value portfolios
  • Senior Manager in place since inception
  • Team averages 18 years with Prudential
  • $38 billion in strategy assets