Prudential Investments has launched the Prudential Global Tactical Allocation Fund (PTALX), providing the potential for long-term risk-adjusted total return through targeted long and short exposures to diverse sources of return across global equities, global bonds, commodities, and currencies markets.
Prudential Investments is the mutual fund business of Prudential Financial, Inc. (NYSE:PRU).
The fund targets volatility of approximately 10 per cent over a full market cycle, which is approximately two-thirds of the volatility of the S&P 500 Index over the past 15 years. The fund is designed to appeal to investors interested in an alternative strategy that may enhance their portfolio’s diversification. Investing in a dynamically managed portfolio with the ability to take long and short positions within and across asset classes may result in more stable returns across various market conditions. The fund actively invests in both traditional equity and bonds, as well as alternative asset classes including commodities and currencies—that offer broader investment opportunities and the potential for better risk-adjusted returns than more conventional asset allocation strategies.
The fund is managed by a team from QMA that averages 22 years of investment experience including: Marco Aiolfi, PhD, portfolio manager; John A Hudock, CFA, portfolio manager; and Yesim Tokat-Acikel, PhD, portfolio manager. For more than 30 years, QMA has been a leader in asset allocation and developing innovative investing techniques, having pioneered the use of advanced analytics to enhance the investment decision-making process.
“The fund offers the potential for enhanced risk-adjusted returns, lower drawdown impact and less correlated sources of alpha in an investor’s portfolio,” says Stuart Parker, president of Prudential Investments. “Further, investors benefit from QMA’s stable, experienced and highly credentialed investment team with deep asset allocation experience, across a variety of market conditions.”