Long Duration LDI

Actively managed long duration strategy targeting an excess return over a custom benchmark we develop that reflects client liabilities. Most portfolios are composed predominately of investment grade corporate bonds, but also include U.S. Government and Agency and structured product securities. Since the objective in each Long Duration Custom portfolio is to match the client's specific liabilities while generating some alpha, the strategy typically targets portfolio duration equal to benchmark duration to minimize tracking error.

Investment Approach

Customize to client requirements
Closely match liability characteristics
Higher alpha can be sought, depending on client requirements
Typically heavy exposure to high quality long corporate bonds
Tight duration match to liabilities
Research-based security selection across broader range of sectors
Active sector rotation

Why PGIM Fixed Income?

Decades of experience managing long duration portfolios

Managing LDI-oriented portfolios for third-party clients since 1980s
[an error occurred while processing this directive]-year track record in Long Duration Government/Credit Strategy
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Expected Sustainable Alpha Generation

Emphasize research-driven security selection
De-emphasize interest rate timing

Comprehensive Credit and Quantitative Research Expertise

[an error occurred while processing this directive] career analysts, with senior analysts averaging [an error occurred while processing this directive] years experience
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Read benchmark descriptions.

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$[an error occurred while processing this directive] billion in long duration assets
LDI product manager has [an error occurred while processing this directive] years investment experience
Specialized teams comprised of seasoned investment professionals based upon mandate requirements

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.