This report shows public data only. Is this your organisation? If so, login here to view your full report.

PGIM Fixed Income

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Securitised
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

PGIM Fixed Income's goal is to consider relevant ESG factors in our investment process as we work towards achieving our ultimate fiduciary duty; searching for the highest risk adjusted returns for our clients. Within this context, we seek to demonstrate a solid corporate governance framework in our investment process as we aim to protect our clients' assets for the long-term.

ESG factor integration is primarily applied within the bottom-up part of the investment process when assessing the impact on individual securities under consideration. Our research analysts are experts in their respective industries and asset classes, and we believe they are best positioned to identify ESG issues and determine their materiality.

01.3. Additional information [Optional].

Regarding the proportion of actively managed fixed income investments by strategy in response to question FI 01.1, we assess ESG risks and opportunities as an integral part of our credit research process and bottom-up investment process.  In addition, we apply ESG screens in certain separately-managed mandates, based on client requirements, as agreed to in investment management agreements.

Currently, we anticipate launching three ESG funds whose guidelines will incorporate internal ESG ratings to develop an ESG-friendly product by screening issuers below a certain rating threshold.  

 


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

          Our ESG Committee meets to discuss any updates or changes to our approach.
        

03.3. Additional information. [Optional]

The PGIM Fixed Income ESG Committee has been established to act as the governing body for directing and overseeing PGIM Fixed Income’s ESG-related activities, with specific responsibility for:

·          Developing all policies and procedures that integrate ESG factors into the PGIM Fixed Income investment process, both generally and with respect to specific PGIM Fixed Income products

·          Establishing the methodology for PGIM Fixed Income’s internal ESG rating framework

·          Overseeing the assignment of all ESG ratings

·          Monitoring ESG-related engagement with individual issuers; and

·          Establishing and maintaining guidelines for ESG-related funds managed by PGIM Fixed Income.


Our commitment to Responsible Investment at board level can be seen in the makeup of our ESG Committee which consists of senior executives and investment professionals. The committee is co-chaired by our CIO / Head of Fixed Income and Head of Global Investment Grade Credit Research. The Voting Members of the Committee include the Head of Credit, Chief Economist, and senior credit analysts from our Investment Grade, Emerging Markets, Leveraged Finance, Municipal, and Securitised Credit desks with representation from our Newark, London and Tokyo offices.


Top