PGIM, Prudential Financial’s $1.2 trillion investment management arm, has launched four actively managed ETFs. According to PGIM, three of the funds invest in equities, while the fourth ETF targets fixed income.
One fund, the PGIM Jennison International Opportunities ETF (NYSE Arca: PJIO), trades on the New York Stock Exchange. The other three — the PGIM Jennison Better Future ETF (PJBF), the PGIM Jennison Focused Mid-Cap ETF (PJFM), and the PGIM Short Duration High Yield ETF (PSH) — trade on the Cboe BZX.
PJIO targets non-U.S. companies that are in the early stages of accelerating growth. It focuses on businesses with such attributes as competitive advantages and attractive valuations. The ETF’s investment strategy is similar to the $4.1 billion PGIM Jennison International Opportunities Fund.
The new equity ETFs that Jennison Associates subadvises — PJIO, PJBF, and PJFM — seek long-term capital growth with concentrated, high-conviction portfolios. Jennison’s long-term equity investment approach is based on deep, fundamental research and bottom-up security selection.
PJBF targets companies expected to address social and environmental challenges identified by the United Nations Sustainable Development Goals. This includes companies contributing to health and wellness; technological advances to improve productivity, connectivity, and economic inclusion; and climate action engagement.
In addition, PJFM invests in midsize companies across industries and sectors with potentially durable earnings growth on an intermediate basis.
Meanwhile, PSH targets shorter-duration high yield fixed income securities that are rated below investment grade. PGIM Fixed Income will subadvise PSH.
Aggressive Plans for Future Active ETFs
With these launches, PGIM now offers 14 actively managed ETFs across equity and fixed income asset classes. PGIM Investments’ President and CEO Stuart Parker said he’s seeing “accelerating demand for active ETFs from our clients.”
“Building out our suite of actively managed ETFs is a priority for PGIM,” he said in a news release. Parker added that the fund has “aggressive plans for future product development.”
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