LONDON--(BUSINESS WIRE)--PGIM Investments continues to expand its global UCITS footprint with the addition of its first ESG equity fund joining a number of fixed income funds incorporating an ESG process. Sub-advised by QMA, the actively managed PGIM QMA Global Core Equity ESG Fund evaluates the ESG status of every security in the global core equity universe and integrates these insights into the fund, aiming to avoid the worst ESG offenders while maintaining performance expectations.
PGIM Investments is the global manufacturer and fund distributor of PGIM, the $1 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU)—a top-10 investment manager globally.* QMA is PGIM’s quantitative equity and global multi-asset solutions manager.
“We’re pleased to provide a new investment solution for investors who want the potential benefit of ESG factors,” said Stuart Parker, president and CEO of PGIM Investments. “The ESG equity fund, like the rest of our platform, draws from PGIM’s multi-manager model, bringing PGIM Investments’ and QMA’s capabilities to serve a significant need for ESG products from global clients.”
ESG investing is estimated at more than $20 trillion—or a quarter of all professionally managed assets around the world**. The fund joins a number of fixed income UCITS that factor ESG into their strategies. The current UCITS platform, launched in 2013, has grown to 28 funds. Domiciled in Ireland, the UCITS platform spans multiple sectors in fixed income, equity and real estate with 16 country registrations across Europe and Asia. The platform has grown to $3.1 billion in assets under management as of Sept. 30, 2018, growing 24 percent in the last year.
“Our proprietary way of looking at data allows QMA to integrate ESG factors into portfolios aiming for performance comparable to non-ESG holdings,” said Andrew Dyson, QMA chairman and CEO. “This process—which also solves for the industry-wide challenge of data sparsity when investing in ESG—is built around our time-tested core investment strategy that identifies alpha opportunities using value, growth and quality factors.”
Specifically, the PGIM QMA Global Core Equity ESG Fund:
- Provides the ability to substitute less attractive ESG stocks for companies with better ESG metrics without any change to performance expectation.
- Draws on QMA’s ESG approach and proprietary methodology on data completion to solve the issue of data sparsity while seeking to maximize returns.
- Employs a client-driven focus that can be tailored to specific ESG needs with full transparency.
- Seeks to consistently capture alpha to achieve financial objectives through fundamental insights which are systematically applied through an actively managed, disciplined and adaptive strategy.
- Employs a data-driven holistic approach to ESG investing that focuses on financially relevant, material ESG items that are both industry-specific and systemic in nature.
- Incorporates carefully crafted ESG risk factors focused on Sustainability Accounting Standards Board materiality and carbon emissions into its investment process.
The UCITS strategy draws upon QMA’s research recently detailed in a study published by the company, Integrating ESG in Portfolio Construction.
All investments involve risk, including the possible loss of capital.
About PGIM Investments and PGIM Funds
PGIM Investments LLC offers more than 100 funds globally across a broad spectrum of asset classes and investment styles. All products draw on PGIM’s globally diversified investment platform that encompasses the expertise of managers across fixed income, equities and real estate.
PGIM Funds plc is an Ireland-domiciled UCITS umbrella fund serving institutional and wholesale investors across the globe. The PGIM QMA Global Core Equity ESG Fund is currently registered in the U.K., Germany, the Netherlands, Norway, Denmark, Finland, France, Sweden, Switzerland (institutional only), Luxembourg, Singapore (institutional only) and Spain. For a full list of funds available in your region, visit pgimfunds.com.
QMA applies a disciplined, research-driven approach that seeks to identify and capture alpha opportunities, and combines factor exposures to create diversified, risk-aware strategies designed for long-term, consistent performance. Founded in 1975, QMA manages portfolios for a worldwide institutional client base, including corporate and public pension plans, endowments and foundations, multi-employer pension plans, and sub-advisory accounts for other financial services companies. As of Sept. 30, 2018, QMA had approximately $128.1 billion in assets under management.
With 15 consecutive years of positive third-party institutional net flows, PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world with more than $1 trillion in assets under management as of Sept. 30, 2018. PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 15 countries across five continents. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc.’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. For more information visit news.prudential.com.
*As ranked in Pensions & Investments’ Top Money Managers list, May 2018; based on Prudential Financial, Inc. total worldwide assets under management as of Dec. 31, 2017.
**Source: Kell, G. (2018 July). The Remarkable Rise of ESG. Forbes.
In the United Kingdom and various other jurisdictions in Europe information is presented by PGIM Limited, an indirect subsidiary of PGIM, Inc. PGIM Limited is authorized and regulated by the Financial Conduct Authority (#193418) of the United Kingdom, and duly passported in various jurisdictions in the European Economic Area. Funds are available for professional investors only. Investing places capital at risk; an investor could lose some or all of their investment. An investor must review the fund’s prospectus, supplement and Key Investor Information Document (“KIID”) (together, the “Fund Documents”) before making a decision to invest. The Fund Documents are available through PGIM Limited, 1-3 The Strand, Grand Buildings, Trafalgar Square, London, WC2N 5HR or through pgimfunds.com.
Information for persons in France: The PGIM QMA Global Core Equity ESG Fund has been registered with the Autorité des marches financiers (AMF) for the offer in France to professional investors only.
Information for persons in Spain: Investments in the PGIM QMA Global Core Equity ESG Fund should be made on the basis of the current Fund Documents, which are available along with the current annual and semi-annual reports free of charge. For the purposes of distribution in Spain, the PGIM QMA Global Core Equity ESG Fund is registered with the official register of foreign collective investment schemes of the Spanish Securities Market Commission Comisión Nacional del Mercado de Valores (CNMV) under registration number 1581, where complete information is available from the PGIM QMA Global Core Equity ESG Fund’s authorized distributors. The purchase of shares in the PGIM QMA Global Core Equity ESG Fund shall be made on the basis of the Fund Documents. Prior to any purchase, investors shall receive in advance a copy of the KIID in Spanish, latest published economic report and a copy of the report of the planned types of marketing in Spain (“Marketing Memorandum”). The Fund Documents, together with the Marketing Memorandum, is available free of charge at the registered office of PGIM Funds plc and the locally authorized distributors as well as at the CNMV.
Information for persons in Switzerland: The prospectus, KIID, certificate of incorporation, memorandum and articles of association as well as the annual and semi-annual reports may be obtained free of charge from the Swiss Representative and Paying Agent as well as at the registered office of PGIM Funds plc. The Swiss Representative and Paying Agent is State Street Bank International GmbH, Munich, Zurich Branch, Beethovenstrasse 19, CH-8027, Zurich.
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