Intermediate Core Conservative

Intermediate duration strategy targeting an excess return over the Barclays Capital U.S. Intermediate Aggregate 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 benchmark
  • Heavy emphasis on fundamental research
  • Strategy targets securities with intermediate maturities that generally do not exceed 10 years
  • Intermediate version of flagship Core Conservative Strategy

Distinguishing Characteristics

  • Lower expected risk alternative to Core strategies
  • Higher expected alpha alternative than passive strategies
  • Reduces interest rate risk vs. longer duration strategies
  • 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

  • Strategy introduced in May 2009
  • Managed by the same Senior Portfolio Manager and team as flagship Core Conservative Strategy
  • 7-member investment management team
  • Senior Portfolio Manager has 27 years of investment experience
  • 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