A $1.4T-AUM Firm Adds Two Funds
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Thursday, June 2, 2022

A $1.4T-AUM Firm Adds Two Funds

A publicly traded insurer's $1.4-trillion-AUM (as of March 31) asset manager recently rolled out a pair of new funds.

Stuart Parker
PGIM Investments
President, CEO
Last week, Stuart Parter, president and CEO of PGIM Investments [profile] (the retail part of Prudential Financial's PGIM), unveiled two newly launched funds: the PGIM ESG Short Duration Multi-Sector Bond Fund and the PGIM Floating Rate Income ETF (PFRL on the NYSE Arca). PGIM Investments LLC serves as the investment advisor to both new funds, and PGIM Fixed Income and PGIM Limited serve as their subadvisors.

The PGIM ESG Short Duration Multi-Sector Bond Fund (PGIM's third ESG bond fund) comes in four share classes: A shares, with an expense ratio of 85 basis points, plus up to 225 bps in up front load and 100 bps in deferred load; C shares, with an 160-bps expense ratio and 100 bps in deferred load; Z shares, with a 39-bps expense ratio; and R6 shares, with a 32-bps expense ratio. (Those expense ratios bake in fee waivers, ranging from 89 bps to 815 bps, that PGIM promises to offer through February 29, 2024.)

The PGIM ESG Short Duration Multi-Sector Bond Fund's PM team includes: Michael Collins, managing director; Gregory Peters, managing director and co-chief investment officer of PGIM Fixed Income; Richard Piccirillo, managing director; Lindsay Rosner, principal; and Robert Tipp, managing director, chief investment strategist, and head of global bonds. The fund's other service providers include: Prudential Mutual Fund Services LLC (PMFS) as dividend disbursing agent and transfer agent; BNY Mellon Asset Servicing (US) Inc. (BNYAS) as sub-transfer agent; and Securities Finance Trust Company (eSecLending) as securities lending agent.

As for PFRL, it comes with an expense ratio of 72 bps. Its PM team includes: Robert Cignarella, managing director, head of U.S. high yield, and co-head of the global high yield strategy; Ian Johnston, principal; Brian Juliano, managing director and head of the U.S. leveraged loan team; Robert Meyer, principal; and Parag Pandya, principal. Bank of New York Mellon serves as the ETF's administrative agent and transfer agent.

Services providers to both funds include: Prudential Investment Management Services LLC (PIMS) as distributor; Bank of New York Mellon as custodian; and PricewaterhouseCoopers LLP as independent accounting firm.

"We've seen increased demand for floating rate strategies as investors look to protect against rising rates," Parker states regarding the new ETF.

As for the new mutual fund, Parker notes that his team continues to build out their fund lineup, "with a focus on providing investors access to ESG alternatives of existing PGIM fixed income funds with proven track records." (PGIM Investments and its affiliates now offer more than 100 funds around the world.) Peters notes that the new mutual fund allows investors "to access the strategy" as PGIM's Short Duration Multi-Sector Fund, but with an added ESG overlay.

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