PGIM Investments continues to expand its platform of alternative investment solutions with the launch of the PGIM Wadhwani Systematic Absolute Return Fund, a proprietary quantitative and systematic global macro strategy seeking long-term risk-adjusted total return.
This is PGIM Investments’ first PGIM Wadhwani strategy offered as a US mutual fund.
“Investors are facing a challenging market environment where stock market valuations are historically high and bond market yields are historically low. Alternative investment solutions like global macro strategies may offer a compelling way for investors to generate uncorrelated risk-adjusted returns to complement their traditional 60/40 portfolios,” says Stuart Parker, president and CEO of PGIM Investments.
The fund invests across global equities, fixed income and currencies (directly or through the use of derivatives), taking both long and short positions, in an effort to capture alpha opportunities while limiting downside risk. With its dynamic asset allocation strategy, the fund seeks to remain nimble in quickly changing market environments.
“With risk management integral to the way we construct portfolios, we employ an agile approach, dynamically tilting and timing our exposures and combining signals in a non-linear fashion to try to limit portfolio drawdowns,” says Dr Sushil Wadhwani, CBE, chief investment officer of PGIM Wadhwani and a named portfolio manager of the fund. Dr Wadhwani has 31 years of investment experience, which includes work in academia and the financial sector, as well as several years on the Bank of England’s Monetary Policy Committee.
