PGIM Investments Launches Total Return Bond ETF, PTRB

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ohn On Wednesday, PGIM Investments launched two new bond funds – the PGIM Total Return Bond ETF (PTRB) and the PGIM ESG High Yield fund – broadening access to its flagship core-plus bond strategy and offering a high-yield option to bond investors committed to environmental, social and governance (ESG) investment principles. PGIM is the $ 1.5 trillion global investment management firm of Prudential Financial, Inc. (NYSE: PRU).

The PGIM Total Return Bond ETF aims to outperform the Bloomberg US Aggregate Index through opportunistic investments in non-benchmark sectors and derivatives, while the PGIM ESG High Yield Fund seeks to outperform the Bloomberg US Index High Yield 1% Issuer Capped over the long term while investing in bond issuers with stronger ESG characteristics and practices.

Both funds are managed by PGIM Fixed Income, one of the largest and most experienced global fixed income managers in the world, with more than $ 960 billion in assets under management. PGIM Fixed Income’s active investment approach is enhanced by credit seeking, quantitative research and risk management to help generate competitive returns and manage volatility.

“PGIM Investments is committed to a vehicle independent approach, offering our strategies in different forms across multiple platforms to meet investors where they are and enable them to invest however they want,” said Stuart Parker, President and CEO of PGIM Investments. “These new funds respond to the demand we’re seeing for expanded access to proven active management strategies and investment options that put ESG considerations at the forefront.

A NEW WAY TO INVEST IN A PROVEN STRATEGY VIA AN ETF

PTRB is an actively managed fixed income ETF that seeks total return by investing in a diversified portfolio of bonds across multiple fixed income sectors. It mirrors the strategy used by PGIM Fixed Income’s Total Return Bond mutual fund, a core plus strategy that in 25 years has grown into one of the largest fixed income mutual funds, with net assets. total of more than 56 billion dollars.

The ETF is managed by the same portfolio managers as the mutual fund – Robert Tipp, Michael Collins, Richard Piccirillo, Gregory Peters and Lindsay Rosner – a team with an average of 22 years of experience and 19 years in the company.

OFFERING THE CHOICE BETWEEN TRADITIONAL AND ESG APPROACHES

The PGIM ESG High Yield Fund seeks total return, through a combination of current income and capital appreciation, by investing in a diversified portfolio of high yield fixed income securities, with an emphasis on issuers with stronger ESG characteristics and practices than traditional high yield bond portfolios.

The portfolio is managed by Robert Cignarella, Robert Spano, Ryan Kelly, Brian Clapp, Daniel Thorogood and Brian Barnhurst, the same managers who oversee the PGIM High Yield fund, with $ 24.5 billion in assets under management.

PGIM Fixed Income’s ESG methodology, which distinguishes the new PGIM ESG High Yield fund, begins with exclusion screening, then uses a proprietary rating methodology to assign ESG impact ratings and build the fund’s portfolio. These ESG ratings are assigned by a team of over 110 analysts and overseen by the PGIM Fixed Income ESG committee. Under normal circumstances, the fund will not purchase securities from issuers with ESG impact ratings below a set threshold.

The PGIM ESG High Yield fund is the second ESG mutual fund launched in the United States by PGIM this year, after the PGIM ESG Total Return Bond fund, demonstrating the company’s actions to broaden product choice and help investors to achieve their sustainable development goals.

For more information on PGIM, visit pgim.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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