Absolute Return

Actively managed strategy that seeks to maximise absolute risk-adjusted return over ML 3-month LIBOR Index. Strategy focuses on relative-value based sector allocation, research-based subsector and security selection, and duration, yield curve, and currency management across fixed income sectors and currencies, favouring the credit-oriented sectors. Portfolio positioning at any given time is based on where we believe the most attractive risk-adjusted values lie across the investable universe. Strategy is designed to provide flexibility to respond to changing market opportunities to both generate alpha and to mitigate downside risk.

Objective and Approach

Diversified portfolios investing across a broad range of fixed income sectors, securities, and derivatives
Active sector rotation all across fixed income market sectors
Bottom-up research-driven subsector/security selection
Tactical duration, credit quality, yield curve, and currency management
Comprehensive approach to risk management

Why PGIM Fixed Income?

Resources and Presence to Source Ideas Globally

Our global presence provides a broad perspective of credit markets and our expertise spans multiple strategies
Teams globally aligned to allow for appropriate evaluation and implementation of new ideas
[an error occurred while processing this directive] career analysts with senior analysts averaging [an error occurred while processing this directive] years investment experience

Broadly Diversified Portfolios Across Fixed Income Sectors, Industries, and Issuers

We seek to extract multiple sources of alpha through active allocations across spread sectors
Focus on industry and issuer credit research
A collaborative bottom-up, research-driven security selection process where managers and analysts make joint decisions

Emphasis on Quantitative Research and Risk Management

Feedback and monitoring of active risk positions daily
[an error occurred while processing this directive] member team focused on proprietary quantitative analytics, risk management, and performance attribution
A quantitative modeling and risk management infrastructure and proprietary tools aim to aid in alpha generation

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Senior Managers average [an error occurred while processing this directive] years experience
Team averages [an error occurred while processing this directive] years experience and [an error occurred while processing this directive] years with PFI
$[an error occurred while processing this directive] billion in strategy assets

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.