PGIM, the investment management business of Prudential Financial, has made the recently launched PGIM Strategic Income ESG Fund available to professional investors in Singapore and Hong Kong
Managed by PGIM Fixed Income, the fund is an ESG integrated multi-sector fixed income strategy, focused on both income generation and capital appreciation, according to the asset manager.
The strategy’s investment universe covers investment grade and high yield credit, emerging market debt, commercial mortgage-backed securities, asset-backed securities and government bonds. Since launching the PGIM Strategic Income ESG Fund in Europe last December, the portfolio management team has maintained a significant underweight to US Treasuries and agency mortgage-backed securities, preferring to focus on more attractive opportunities across all spread sectors.
The management team is led by Michael Collins, Gregory Peters, Richard Piccirillo, Lindsay Rosner and Robert Tipp. The portfolio managers seek to identify attractive relative value opportunities across a wide range of global fixed income sectors, while emphasizing issuers with strong ESG credentials.
“Income strategies continue to be a priority for Asian investors and over the past few years we have seen a marked increase in portfolio allocation to ESG in the Singapore and Hong Kong markets. A growing number of investors are looking for sustainable investment products that align with their social purpose,” Jessica Jones, Managing Director and Head of Asia at PGIM Investments, said in a statement.
Proprietary ESG Framework
PGIM Fixed Income uses a proprietary ESG impact rating framework to assess the impact of issuers on the environment and society, with ratings for each issuer. These ESG ratings are assigned by its team of more than 110 analysts, working in conjunction with the five-person ESG research team, and overseen by PGIM Fixed Income’s ESG committee.
The PGIM Strategic Income ESG fund is the group’s eighth dedicated UCITS ESG strategy offered to non-US investors, with each fund being classified under Article 8 of the Sustainable Finance Disclosure Regulation.
“As the post-pandemic global recovery continues, with unknown headwinds such as lingering inflation, our ESG Diversified Strategic Income Fund has the ability to capitalize on evolving market opportunities, while mitigating downside risks. Credit spreads have become much more volatile in this highly uncertain geopolitical and macroeconomic environment, and warrant a judicious approach to credit selection,” said Gregory Peters, co-CIO and head of multi-sector and strategy at PGIM Fixed Income.
The PGIM Strategic Income ESG Fund, a sub-fund of the Irish-domiciled UCITS fund umbrella, PGIM Funds plc, is currently registered for sale in the UK and various European jurisdictions, and is also available to professional investors in Hong Kong. Kong and Singapore. .