PGIM Investments expands ETF platform with new QMA active equity strategies

By Business Wire

PGIM Investments today launched the first of four actively managed
equity exchange-traded funds (ETFs) that it plans to roll out in 2018,
expanding the platform from the two actively managed fixed income ETFs
launched earlier this year. 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. (NYSE: 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.”

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.

About QMA

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.

About PGIM Investments

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.

About PGIM and Prudential Financial, Inc.

With 15 consecutive years of positive third-party institutional net
flows, PGIM, the global asset management businesses 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 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.

This article provided by NewsEdge.