October 18, 2017

Broad, Balanced Growth Puts Emerging Markets in Focus

In the latest edition of PGIM Fixed Income’s quarterly outlook, Nathan Sheets, PhD, Chief Economist and Head of Global Macroeconomic Research, looks at a global recovery that is often characterized as “sluggish,” but one that may ultimately be remembered for its durability.

July 21, 2017

PGIM: Capturing alpha from growing emerging markets will require new investment approach

A radical shift in the forces shaping emerging market growth will require investors to take a different investment approach from what may have worked in the past. Increasingly, discovering investment opportunities will be rooted in the ability to capture the alpha from the new growth drivers, rather than in chasing the beta of the broad universe.

July 17, 2017

PGIM Fixed Income: The return of absolute return fixed income

Although the majority of the three-decade, bull market in bonds is likely behind us, PGIM Fixed Income believes fixed income, including Absolute Return Fixed Income, still provides plenty of opportunities for investors. In The Return of Absolute Return Fixed Income, Michael Collins, senior investment officer and portfolio manager for Multi-Sector Fixed Income strategies, discusses different types of absolute return fixed income portfolios and how a well-diversified, duration-constrained approach can take advantage of alpha-generating opportunities while avoiding systematic exposure to rising interest rates.

March 16, 2017

PGIM: The impact of market conditions on active equity management

Since the financial crisis, investors have enjoyed generally benign conditions, with subdued volatility and strong markets, but active equity managers have remained under pressure. This should not be surprising; history has shown a strong pattern of counter-cyclicality in manager excess returns relative to the equity market. The Impact of Market Conditions on Active Equity Management takes a close look at the relationship between equity market conditions (defined by market returns, volatility, and dispersion) and active equity manager results.

March 15, 2017

QMA: Some like it hot - fiscal policy, inflation and the role of real assets

Of all the variables the new U.S. administration brings for investors, one of the trickiest to plan for is inflation. Inflationary pressures were already building before the election ushered in the prospect of a sweeping agenda of pro-growth fiscal and de-regulatory policies. QMA says one common way to hedge against inflation is to diversify portfolios with exposure to real assets. In Some Like it Hot, QMA analyzes historic returns during normal and above-average periods of inflation and makes the case for an allocation to real assets.

March 10, 2017

QMA: Start of Something Big: Demystifying the Source of Large Alpha in Small Caps

In the search for alpha, small-cap stocks are regularly viewed as one of the markets’ most fertile sources compared to larger capitalization stocks. Across every geographic market, the median outperformance of active small-cap managers relative to their respective benchmarks over the last five years is significantly higher than for large-cap managers.

March 10, 2017

PGIM: Longevity and Liabilities: Bridging the Gap

The rise in global life expectancy, based on recently updated mortality tables, could dramatically increase longevity risk for pension liabilities over the next 20 to 30 years, potentially worsening a plan's risk profile, reducing funded status and leading to unforeseen costs. In Longevity and Liabilities, PGIM explores how defined benefits plans can mitigate the threat of growing liabilities.

March 09, 2017

PGIM Fixed Income: Revisiting the Global Credit Cycle

The new, pro-growth U.S. administration and rising global political risks could affect the current credit cycle, including regulatory and tax policy changes that could accelerate the credit cycle. That acceleration, and renewed investor optimism, may sow the seeds of the next U.S. recession in three to five years. As a result, the current market climate calls for increased attention to tail risk in fixed income portfolio construction.

March 01, 2017

PGIM Real Estate: Global Real Estate Trends for 2017

In its annual outlook, PGIM Real Estate research share optimism but remain cautious about 2017's outlook. Global economic growth has been steady, although the boost from low energy prices is fading in developed economies and momentum is tilting back towards emerging markets. Meanwhile, if recent events are anything to go by, undoubtedly there will be more election-related twists and turns to come.