Core Conservative

Benchmark-focused, investment grade bond strategy that seeks an excess return over the Barclays Capital 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.

Approach

  • Majority of excess return sought from bottom-up security selection decisions
  • Top-down sector, quality, duration, and yield curve constrained to benchmark
  • Heavy emphasis on fundamental research

Distinguishing Characteristics

  • Lower expected risk alternative to other Core strategies
  • Higher expected alpha alternative than passive strategies
  • Popular underlying investment strategy for stable value portfolios
  • Comprehensive approach to risk management
  • Dedicated teams of credit and quantitative analysts specialize by sector

As of March 31, 2014. There can be no assurance that these objectives will be met. Read benchmark descriptions.

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Strategy Highlights

  • Seeks consistent outperformance with modest tracking error
  • $38 billion in strategy AUM
  • 7-member investment management team
  • Senior Portfolio Manager has managed strategy since inception (27 years)
  • Core Conservative team averages 17 years of investment experience and 18 years with Prudential
  • Supported by firmwide resources of credit analysts, quantitative research and risk management analysts, and sector teams