PGIM Investments continues to expand its Ucits Emerging Markets Debt funds range with the launch of a total return fixed income fund.
The PGIM Emerging Market Total Return Bond Fund aims to capture the team's best ideas across emerging market hard currency sovereign/quasi-sovereign, corporate and local bonds, currencies and volatility, the firm said in a note.
The fund is managed by PGIM fixed income's Emerging Markets Debt (EMD) investment team, formed by 31 senior members, averaging 17 years of investment experience and 14 years with PGIM. The team manages US$37bn in assets.
"Emerging markets debt offers investors diversification benefits and the opportunity to generate attractive total return by investing in various countries, currencies and credits", said Kimberly LaPointe, head of PGIM Investments International, PGIM Investments.
"However, this comes with potential volatility and this fund allows investors to delegate the EMD allocation decision to a deeply resourced and experienced team with a demonstrated track record managing PGIM's active EMD portfolios for more than a decade".
Cathy Hepworth, co-head of PGIM Fixed Income's Emerging Markets Debt Team and a lead manager of this Fund, said: "This fund uses a relative value approach to identify and capture market inefficiencies and alpha opportunities within the EM fixed income and FX markets, thereby offering an integrated ‘best ideas' portfolio to investors".
The fund launched on 26 March 2019 with $25m in seed capital. It is a sub-fund of the Irish-domiciled UCITS fund umbrella, PGIM Funds, and it is registered for sale in the UK, Germany, Switzerland and Austria.
PGIM Investments is the global manufacturer and fund distributor of PGIM, the $1trn global investment management business of Prudential Financial.