PGIM Investments has launched three actively managed ETFs — the PGIM Jennison Focused Growth ETF (PJFG), the PGIM Jennison Focused Value ETF (PJFV) and the PGIM Portfolio Ballast ETF (PBL).
The firm writes that with these launches it has expanded its line-up of active ETFs to eight funds. The new funds complement PGIM Investments’ existing suite of actively managed fixed income ETFs.
“PGIM continues to expand access to our time-tested investment strategies by bringing them to market in the ETF wrapper. These new funds offer compelling investment strategies, combined with the benefits of the ETF structure, including increased transparency and greater tax-efficiency,” says Stuart Parker, president and CEO of PGIM Investments.
The PGIM Jennison funds are fully transparent ETFs with concentrated, high-conviction portfolios. Jennison’s equity investment approach is rooted in deep, fundamental research and bottom-up security selection. Both funds’ investment strategies are substantially similar to those of their respective mutual fund and institutional strategy counterparts.
The PGIM Jennison Focused Growth ETF (PJFG) seeks to provide long-term growth of capital by investing in a focused portfolio of primarily mid- and large-capitalisation stocks believed to have strong capital appreciation potential. The Fund’s investment team believes that excess returns can be generated by investing in market-leading companies that create economic value through unique business models, long-duration competitive advantages and catalysts that drive growth rates well above that of the market.
The PGIM Jennison Focused Value ETF (PJFV) seeks to provide long-term growth of capital by investing in a focused portfolio of predominantly large-capitalisation companies believed to be undervalued compared to their perceived worth. The Fund’s investment team looks for companies that have one or more of the following characteristics: attractive valuation metrics that are unique to that business, high levels of durability and viability of the business, good business models that are being mispriced, high returns on assets and/or equity, high free cash flow yields, management teams that are willing to make changes, and/or something operationally wrong that can be fixed or is temporary.
The PGIM Portfolio Ballast ETF (PBL), seeks to provide long-term capital growth with reduced volatility compared to the equity market. PBL’s long-term goal is to capture 60 per cent of the performance of the S&P 500 on average in appreciating equity markets, and to capture 30 per cent of the performance of the S&P 500 on average in declining equity markets over a market cycle.
The firm writes that like ballast on a ship providing critical stability amid rough waters, the PGIM Portfolio Ballast ETF offers what may be an attractive and uniquely diversifying solution in the face of uncertain and turbulent markets.
PBL’s underlying strategy is substantially similar to the U.S. Market Participation Strategy (MPS) — an institutional strategy with a live 30-year track record and more than USD1 billion of client capital as of Oct. 31, 2022. Both MPS and PBL are managed by PGIM Quantitative Solutions, the quantitative and multi-asset specialist of PGIM.