06-07-17 Bloomberg TV
PGIM CEO calls active vs. passive debate 'overblown'
David Hunt, CEO of PGIM, Prudential's $1 trillion global asset management business, comments on the debate over active versus passive investing with Bloomberg's Scarlet Fu, saying, "Our perspective on the whole active versus passive debate is very much that it's overblown ... and that it's mischaracterized." Hunt explained that the debate has focused solely on active U.S. equities, and has excluded the majority of professionally managed assets, including those in real estate and private asset classes, along with public fixed income. (more)
Hunt says alpha to return, shuns low-margin passive strategy
PGIM, Prudential's $1 trillion global asset management business, remains focused on active investing as it avoids seduction by the flood of money into passive strategies, writes Katherine Chiglinsky. PGIM, which has had positive inflows every year for more than a decade, has recruited from Wall Street firms like BlackRock Inc. and Goldman Sachs Group Inc. to help attract business, while also growing in niche areas. The company also has a robust real estate and private debt business, where it may be easier for an asset manager with scale to spot unique, long-term opportunities. "Fundamentally, we think that alpha will return to active-equity managers," said David Hunt, PGIM CEO. "We've seen this come in cycles before." (more)
Work with a purpose: why millennials leave big finance
Some millennials are moving from big companies to startups out of a desire for a more flexible, values-based work culture, reports Suman Bhattacharyya. To respond, Prudential Financial, which has a large investment management practice, has developed an in-house customer office that’s designed to be an innovation lab for young talent. “We have garage doors, ping-pong tables and a very open workspace that allows for more collaboration and that has a very different feel to it,” said Chrissy Toskos, vice president of human resources at Prudential who is charge of campus recruiting. “The [young] talent is very tech-savvy with more agile ways of working, and we’re inviting them to be involved and advance in our culture.” The company said it’s also offering perks like student loan repayment assistance, subsidized healthy food, on-site fitness facilities and volunteer opportunities. When asked if the moves are in response to a flight of millennials, Toskos said they are a natural evolution of the company’s organizational strategy. (more)
05-11-17 Employee Benefits News
How United Technologies created the 'retirement plan of tomorrow'
United Technologies Corporation made a point of offering its employees an in-plan guarantee of retirement income well before the topic of lifetime guarantees in 401(k) plans took center stage in the national discussion. Five years ago, the company decided to revamp its retirement plan, and worked with Prudential Retirement to offer an in-plan retirement income solution. What makes Prudential's lifetime income option work so well is that it “takes the mortality risk away from individuals and, because there are guarantees, they can take on even more equity exposure to help fight off inflation or keep pace with inflation,” said Prudential's Srinivas Reddy. (more)'