PGIM Investments announced today the launch of the PGIM ESG Short Duration Multi-Sector Bond Fund, an actively managed bond fund, favoring issuers with strong ESG characteristics and practices.
Stuart Parker, President, and CEO of PGIM Investments said:
“PGIM Investments continues to build out its fund lineup, with a focus on providing investors access to ESG alternatives of existing PGIM fixed income funds with proven track records.”
The new fund is managed by PGIM fixed income portfolio managers Gregory Peters, Robert Tipp, Michael Collins, Richard Piccirillo, and Lindsay Rosner, who also oversee the $3.2 billion PGIM Short Duration Multi-Sector Bond Fund.
For the new fund, the investment managers utilize an ESG methodology, beginning with an exclusionary screen and then employing a proprietary ESG impact rating for portfolio construction. The ratings are assigned by a team of analysts and overseen by PGIM Fixed Income’s ESG committee. PGIM stated that under normal circumstances, the fund will not purchase securities of issuers that have ESG impact ratings below an established threshold.
Gregory Peters, Co-Chief Investment Officer at PGIM Fixed Income, said:
“Our Short Duration Multi-Sector Fund may benefit investors in a rising rate environment and offers the flexibility to allocate to the most attractive sectors within the fixed income market. This new fund allows investors to access that same strategy with an ESG overlay.”