PGIM Launches First of 4 Actively-Managed ETFs
This article was originally published on ETFTrends.com.
PGIM Investments bolstered its ETF roster today with the launch of the first of four actively managed equity exchange-traded funds that it expects to roll out in 2018. Sub-advised by QMA, the quantitative equity and global multi-asset solutions manager of PGIM, the PGIM QMA Strategic Alpha Large-Cap Core ETF (NYSE Arca: PQLC) seeks long-term growth of capital by investing primarily in large-cap stocks.
PGIM Investments is the worldwide distributor of retail products for PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (etftrends.com/quote/PRU)—a top-10 investment manager globally.
“Adding equity to our mix of ETF strategies gives investors a cost-effective way to access the equity markets while obtaining the potential benefits of active management,” said Stuart Parker, president and CEO of PGIM Investments. “Introducing these funds—managed by one of the industry’s pioneering quantitative managers—is a natural evolution in our effort to create new investment vehicles that meet investors’ evolving needs.”
Related: PGIM Investments Adds Active High Yield Bond ETF ‘PHYL’
Priced at 0.17 percent, PQLC is approximately half the cost of the average passively managed ETF in the large blend category despite the active approach which targets higher returns.1 By the end of 2018, PGIM Investments plans to offer three more actively managed equity ETFs—the PGIM QMA Strategic Alpha Small-Cap Growth ETF (NYSE Arca: PQSG) , the PGIM QMA Strategic Alpha Small-Cap Value ETF (NYSE Arca: PQSV), and the PGIM QMA Strategic Alpha International Equity ETF (NYSE Arca: PQIN).
Sub-advised by QMA, these four Strategic Alpha ETFs will seek to provide investors with access to broad multifactor equity exposure while capitalizing on investor bias. By being actively managed, these strategies give the portfolio managers discretion to rebalance and enhance portfolios more flexibly, as determined by market conditions and ongoing research.
“With more than 40 years of systematic active management expertise, we’ve created an investment product that delivers our best institutional research on multifactor investing to the ETF market,” said QMA Chairman and CEO Andrew Dyson. “Our research shows that investors frequently overpay for stocks that have a low probability of outsized returns or may provide lower risk. We’ve found a way to help protect investors from such behavioral biases.” Dyson continued.
Disciplined, Research-Driven Approach
QMA applies a disciplined, research-driven approach that seeks to identify and capture alpha opportunities through a combination of factor exposures within diversified, risk-aware strategies designed for long-term performance.
Founded in 1975, QMA manages portfolios for a worldwide institutional client base, including corporate and public pension plans, endowments and foundations, sovereign wealth funds, multi-employer pension plans and sub-advisory accounts for other financial services companies. As of June 30, 2018, QMA had approximately $126.7 billion in assets under management.
More than 100 Funds Globally
PGIM Investments LLC offers more than 100 funds globally across a broad spectrum of asset classes and investment styles. Clients can also choose from a variety of investment vehicles including closed-end funds and target date funds such as the Prudential Day One Mutual Fund series. All products draw on PGIM’s globally diversified investment platform that encompasses the expertise of managers across fixed income, equities and real estate.
15 Years of Positive Third-Party Institutional Net Flows
With 15 consecutive years of positive third-party institutional net flows, PGIM, the global asset management businesses of Prudential Financial, Inc. (PRU), ranks among the top 10 largest asset managers in the world* with more than $1 trillion in assets under management as of June 30, 2018. PGIM’s businesses offer a range of investment solutions for 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 four continents. For more information about PGIM, please visit pgim.com. For more information about Prudential, please visit news.prudential.com.
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