PGIM FIXED INCOME

Task 1 – Business
Overview1

1 This material is provided for educational purposes only and should not be construed as investment advice or an offer/solicitation to buy or sell securities.
 Business Overview

Our Business
• PGIM Fixed Income is a top global fixed-income manager, managing $744 billion worth of assets
and serving 1,047 institutional clients across the globe as of September 30, 2023.
• We fall under PGIM, which is the asset management business of Prudential Financial, Inc. (NYSE:
PRU). PGIM is among the world’s largest asset managers with $1.2 trillion in assets under
management and consists of six self-governing asset management divisions, each focused on a
specific asset class. We are the business specifically focused on the public fixed income asset class.
• PGIM Fixed Income's clients range from the world’s largest corporations, central banks, pension
plans and sovereign wealth funds to U.S. mutual funds and non-U.S. fund vehicles.
• We employ 1,158 colleagues spread across 9 offices: Newark, NJ (headquarters) | London,
UK | Paris, France | Zurich, Switzerland | Amsterdam, Netherlands | Munich, Germany |
Singapore | Hong Kong | and Tokyo, Japan as of September 30, 2023.
• At PGIM Fixed Income, we have one key goal: “to provide global, actively managed,
consistently strong risk-adjusted returns and valued service to our clients.”

• PGIM Fixed Income is an active public fixed income manager and operates on the Buy-Side.
 Our Asset Class

• Fixed-Income securities are debt instruments that pay a fixed amount of interest in the form of
coupon payments until maturity to investors. At maturity, investors are repaid the principal
amount they had invested.
o The instruments are issued by governments, corporations, and other entities to finance
their operations.
o Investors buy fixed income securities as a source of income and to provide
diversification from stocks and other asset classes.
• There are a myriad of fixed income sectors across the market such as: Governments,
Corporates, Emerging Markets, and Structured Products. Corporate Bonds and Government
Bonds are the most common types of fixed-income products.
• Dominant fixed income market participants are broadly split into:
Buy-Side Sell-Side
• Buys and invests large portions of securities for • Deals with the creation, promotion, and
the purpose of money or fund management. selling of traded securities to the public,
• May determine how promising an investment which includes buy-side asset
seems and how well it coincides with the managers.
specific fund's investment strategy. • A sell-side analyst usually works for a
• A buy-side analyst usually works brokerage or investment banking firm to
for institutional investors such as asset buy and sell products for the benefit of
managers (PGIM Fixed Income), hedge funds, the financial institution's clients or the
pension funds, or mutual funds. financial institution itself.
 Our Investment Approach

• PGIM Fixed Income's long-only investment strategies cover a global range of both multi-sector
(Core+) and sector-specific strategies such as: investment grade corporates, leveraged finance
(high yield/bank loans), structured products (e.g. asset backed securities), and emerging markets.

• We also offer strategies that have specific Environmental, Social, & Governance (ESG) tilts.

• PGIM Fixed Income also offers alternative products such as: long/short (hedge fund) strategies,
opportunistic credit funds, and multi-strat hedge funds.
• We achieve all of this by:
• "Bottom-up" security selection influenced by "top down" views:
o Senior Portfolio Managers develop "top down" themes by leveraging the firm's macro-
economic resources & market knowledge.
o Credit Research develops "bottom-up” approach which includes carrying out
operational and financial reviews of each credit in our coverage universe.
o Portfolio Managers & Credit Research work together to evaluate/maximize relative
value across their sector's investment opportunities before selecting securities.
o Portfolio Managers then determine sector allocations and select securities, and refine
positioning based on above criteria.
• Using proprietary risk modeling & budgeting to construct diversified portfolio across sectors &
asset classes that seek to meet alpha objectives in a risk controlled manner:
o Portfolio Managers & Risk Management continuously work together to monitor portfolio
risk at all levels — interest rate, market, industry, issuer, and quality.
 Assets Under Management Breakdown

• Breakdown of assets under management as of September 30, 2023 is as follows:

Expertise Across a Broad Range of Sectors Asset Under Management

Corporates $276 Billion

Governments $115 Billion

Proprietary Third Party

Other¹ $2 Billion Institutional
$231 Billion
Mortgages $33 Billion $346 Billion
$744
Municipals $22 Billion Billion
$744
Billion
Money Markets $55 Billion

High Yield $56 Billion

Securitized
Products $100 Billion Third Party
Leveraged Loans $36 Billion
Retail
Emerging Markets $49 Billion $167 Billion

Assets as of September 30, 2023. Staffing as of September 30, 2023. Source: PGIM Fixed Income. Assets under management (AUM) are based on company estimates and are subject to change. PGIM
Fixed Income’s AUM includes the following businesses: (i) the PGIM Fixed income unit within PGIM, Inc., located in the USA; (ii) the public fixed income unit within PGIM Limited, located in London; (iii)
PGIM Japan Co., Ltd. (“PGIM Japan”), located in Tokyo; (iv) the public fixed income unit within PGIM (Singapore) Pte. Ltd., located in Singapore (“PGIM Singapore”); (v) the public fixed income unit within
PGIM (Hong Kong) Ltd. located in Hong Kong (“PGIM Hong Kong”); and (vi) PGIM Netherlands B.V., located in Amsterdam (“PGIM Netherlands”). Asset class breakdown based on company estimates
and is subject to change. 1Other includes Japanese equities and Japanese real estate equities.
 Our 3 Highlighted Early Talent Programs within Forage:

· Credit Research performs fundamental credit investment analysis, defines relative value within issuer capital structures and industry sectors, and communicates
investment recommendations to our Portfolio Managers.
· Our Credit Research Investment Analysts cover companies in related industry sectors across either the investment grade, leveraged finance, or emerging markets asset
classes.
· Day-to-day Analyst responsibilities include industry data collection & trend analysis, financial statement analysis, financial modeling & forecasting, assessment of business
Credit Research & financial strategy, and monitoring market movements through daily meetings with portfolio managers, economists, and strategists.

· The Portfolio Analysis Group evaluates portfolio positioning with respect to risk exposures and our internal relative value views to provide portfolio construction
and alignment insight. They also conduct attribution analysis and identify market drivers across a multitude of investment products.
· Utilizing a variety of analytical tools, the group integrates client guidelines, risk tolerances, and market research into the firm’s investment and valuation processes to
ensure complete portfolio management analytics are in place.
Portfolio · PAG Analysts works closely with Portfolio Managers, Traders, Risk Managers, the Quantitative Modeling Team, Credit Research, Client Advisory, Sales and Marketing
Analysis and a multitude of Operations teams like the Data Integrity Group, Product Support and Trade Management.
Group (PAG)

· The Client Advisory Group (CAG) is responsible for all client acquisition and servicing, distribution efforts, and external strategic positioning. The teams include
Institutional Sales, Consultant Relations, Client Management & Reporting, Marketing, Data Analysis, Request for Proposal (RFP), and Product Strategy & Development.
· Day-to-day responsibilities include gaining and maintaining prospect, consultant, and client relationships, launching new investment strategies and vehicles, creating
and distributing marketing content, and collaborating with groups across the organization to deliver premier client service.
Client Advisory · Our CAG Analysts develop a deep understanding of PGIM Fixed Income’s global client base, investment strategies and process, market impacts on portfolios and positioning,
and overall strategic and operating frameworks. They work with multiple groups across the organization including, but not limited to, Portfolio Managers & Traders, Investment
Group (CAG) Risk Management, the Portfolio Analysis Group, Credit Research, Compliance, Legal, and a multitude of Operations teams, to deliver solutions to our investors.