Core Plus

Actively managed strategy that seeks an excess return over the Barclays Capital U.S. Aggregate Bond Index or similar benchmark. Strategy has historically generated approximately half of its excess return from top-down sector allocation and one-third of its excess return from bottom-up subsector/security selection. Duration and yield curve, tactically managed, have historically comprised the remaining excess return. Strategy actively allocates to both benchmark and non-benchmark sectors, with heavy emphasis on the credit-oriented sectors.

Approach

  • Active sector rotation, including non-benchmark sectors
  • Focus on bottom-up security selection along with broad sector and issue diversification
  • Yield curve and duration tactically managed

Distinguishing Characteristics

  • Seeks consistent, sustainable sources of excess return
  • Highly diversified
  • 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

  • $9 billion in strategy AUM
  • 16-member investment management team
  • Senior Portfolio Managers average 22 years of investment experience
  • Core Plus team averages 20 years of investment experience and 20 years with Prudential
  • Supported by firmwide resources of credit analysts, quantitative research and risk management analysts, and sector teams