Portfolio

PGIM Investments Launches ESG Multisector Fixed Income Fund

New environmental, social, governance fund complements $60 billion PGIM Total Return Bond Fund[1]

NEWARK, N.J.–(BUSINESS WIRE)–PGIM Investments is expanding its commitment to environmental, social and governance (ESG) investing with the launch of the PGIM ESG Total Return Bond Fund, its first dedicated ESG strategy offered to U.S. investors. The new fund is an alternative but complementary offering to PGIM’s $60 billion PGIM Total Return Bond Fund.

PGIM is the $1.5 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).

The fund seeks total return by investing in a diversified portfolio of bonds across multiple fixed income sectors, emphasizing issuers with stronger ESG characteristics and practices than traditional intermediate core-plus bond portfolios.

The fund is managed by an experienced team of PGIM Fixed Income portfolio managers including Gregory Peters, Robert Tipp, Michael Collins, Richard Piccirillo, and Lindsay Rosner, averaging 27 years’ investment experience.

PGIM Fixed Income Methodology

PGIM Fixed Income’s methodology begins with an exclusionary screen and then utilizes a proprietary scoring methodology to assign ESG impact ratings and construct the fund’s portfolio. These ESG ratings are assigned by a team of more than 110 analysts and overseen by PGIM Fixed Income’s ESG committee. Under normal circumstances, the fund will not purchase securities of issuers that have ESG impact ratings below an established threshold.

“As one of the largest fixed income fund providers, we recognize the increased demand from clients for optionality between traditional and ESG investment strategies,” said Stuart Parker, president and CEO of PGIM Investments. “With this launch, we are pleased to offer our clients the ability to express their values and beliefs through their investments, while continuing to deliver on the rigorous investment standards PGIM Fixed Income is known for.”

Greg Peters, head of Multi-Sector and Strategy, PGIM Fixed Income, added, “Our relative value analysis incorporates credit material ESG factors to help identify risks and opportunities. Taking that analysis a step further in the PGIM ESG Total Return Bond Fund, our ESG Impact ratings allow us to construct a portfolio with the dual objective of maximizing return while also accounting for the positive or negative potential outcomes of our investments on the environment and society.”

 

 

 

About PGIM Investments
PGIM Investments LLC and its affiliates offer more than 100 funds globally across a broad spectrum of asset classes and investment styles. All products draw on PGIM’s globally diversified investment platform that encompasses the expertise of managers across fixed income, equities, alternatives, and real estate.
About PGIM Fixed Income
PGIM Fixed Income, with $954 billion in assets under management as of June 30, 2021, is a global asset manager offering active solutions across all fixed income markets. The company has offices in Newark, N.J., London, Amsterdam, Frankfurt, Zurich, Tokyo, Hong Kong, and Singapore. For more information, visit pgimfixedincome.com.
About PGIM
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world[2] with approximately $1.5 trillion in assets under management as of June 30, 2021. With offices in 17 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
[1] As of June 30, 2021.
[2] Prudential Financial, Inc. (PFI) is the 10th-largest investment manager (out of 477) in terms of global AUM based on the Pensions & Investments Top Money Managers list published on May 31, 2021. This ranking represents assets managed by PFI as of Dec. 31, 2020.