Emerging Markets Debt (Long/Short)

Actively managed strategy that seeks to maximise total return in excess of 3-month LIBOR on a risk-adjusted basis by utilizing multiple strategies primarily within the emerging markets debt sector and investing primarily in sovereign, quasi-sovereign and corporate bonds of emerging market issuers in hard and local currencies. In managing this Strategy, PGIM Fixed Income may also invest in derivatives, including credit default swaps, index products, currency forwards, options, and futures contracts, for investment or hedging purposes. The Strategy centers on relative value and directionally driven trades, including sovereign and corporate long/short positioning, credit curve positioning and local currency versus hard currency exposures with dynamic hedging of systemic risk.

Objective and Approach

Absolute return
Long/short strategy investing in emerging markets debt
Concentrated portfolios of long/short opportunities across emerging markets debt universe
Three primary trade strategies
Each strategy utilises a different fundamental or technical approaches
Risk hedged to attempt to foster more stable returns

Why PGIM Fixed Income?

A Stable Management Team with Extensive Experience and Tenure

Investing in emerging markets for [an error occurred while processing this directive] years, with nearly a decade of investing in local markets
Our senior team has been managing the strategy since its inception---stable team contributes to a stable process

Market Stature

$[an error occurred while processing this directive] billion in assets under management
Deep relationships with major broker-dealers

A Deep Culture of Bottom Up Credit and Quantitative Research and Risk Management

An extensive credit research team providing fundamental, bottom up analysis
Independent risk management/quantitative research team of [an error occurred while processing this directive]
Proprietary risk analytics integrating hard currency, local currency, and FX positions

As of [an error occurred while processing this directive].

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Designed to have low correlation to major debt and equity markets over the long-term
Focuses on more liquid emerging markets securities
Does not rely heavily on leverage

FOR INSTITUTIONAL / WHOLESALE OR PROFESSIONAL CLIENT USE ONLY - NOT FOR RETAIL DISTRIBUTION

Past performance is not a guarantee or a reliable indicator of future results. Any discussion of risk management is intended to describe PGIM Fixed Income's efforts to monitor and manage risk but does not imply low risk. All investing involves risk, including the risk of loss. Fixed income securities are subject to certain risks, including credit, interest rate, issuer, market and inflation risk. Foreign and emerging market securities are subject to currency, political, economic, and market risks, which may be enhanced in emerging market countries. High yield securities are lower rated securities that may have a higher degree of credit and liquidity risk. Mortgage and asset-backed securities are sensitive to early prepayment risk, a higher risk of default and may be hard to value and difficult to sell. U.S. Government securities may not be backed by the full faith and credit of the U.S., thus, these issuers may not be able to meet their future payment obligations. With sovereign debt securities, the issuer or governmental authority that controls the repayment of the debt may not be willing or able to repay the principal and/or pay the interest when it becomes due, in accordance with the terms of such obligations. Collateralised mortgage obligations may have unpredictable cash flows that can increase the risk of loss. Public bank loans are subject to liquidity risk and the credit risks of lower rated securities. The use of derivative instruments may disproportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks.

There is no guarantee that any investment strategy will achieve its objective under all market conditions or be suitable for all investors. Each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market.

The views and opinions expressed herein are those of PGIM Fixed Income and are subject to change without notice. This material has been provided for informational purposes only and should not be construed as investment advice or as a recommendation to buy or sell any security or participate in any strategy.