On Wednesday, PGIM Investments launched two new bond funds — the PGIM Total Return Bond ETF (PTRB) and the PGIM ESG High Yield Fund — expanding access to its flagship core-plus bond strategy and providing a high-yield option for fixed income investors committed to environmental, social, and governance (ESG) investing principles. PGIM is the $1.5 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
The PGIM Total Return Bond ETF aims to outperform the Bloomberg U.S. Aggregate Index with opportunistic investments in non-benchmark sectors and derivatives, while the PGIM ESG High Yield Fund seeks to outperform the Bloomberg U.S. High Yield 1% Issuer Capped Index 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 bolstered by credit research, quantitative research, and risk management to help deliver competitive returns and manage volatility.
“PGIM Investments is committed to a vehicle-agnostic approach, offering our strategies in different forms across multiple platforms to meet investors where they are and enabling them to invest the way 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 time-tested active management strategies and investment options that put ESG considerations at the forefront.”
A NEW WAY TO INVEST IN A TIME-TESTED STRATEGY VIA AN ETF
PTRB is an actively managed fixed income ETF seeking 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 over 25 years has grown into one of the largest fixed income mutual funds, with more than $56 billion in total net assets.
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 with the firm.
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