PGIM Investments sets record AUM with $12.2B of net fund flows in 2019

PGIM Investments ended 2019 with $12.2 billion in net mutual fund flows and record mutual fund assets under management of $122.5 billion.i The strong flows and record AUM growth were largely driven by demand for its fixed income funds.

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Stuart Parker, President and CEO, PGIM Investments (Photo: Business Wire)

PGIM Investments ranks fourth out of 722 firms in terms of net new active mutual fund flows for 2019 and ninth over the past decade.ii This was the firm’s 11th consecutive year of positive net mutual fund flows.

PGIM Investments is the global manufacturer and fund distributor of PGIM Inc., the $1.3 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU)—a top-10 investment manager globally.

Stuart Parker, PGIM Investments president and CEO, said, “Our success is a direct result of strong investment performance across multiple asset classes, particularly fixed income. In a challenging environment for many managers, we believe our continued growth confirms that there is significant demand for a combination of strong performance, competitive fees and a breadth of products.”

#1 for Active Taxable Fixed Income Flows for Past 5 Years

Among all U.S. fund families, PGIM Investments attracted the most net new flows for active taxable fixed income mutual funds for the five-year period ending Dec. 31, 2019.iii

Top-Decile Performance

Flows into PGIM’s fixed income funds were fueled by strong performance. PGIM Investments is the only U.S. fund family that offers a top decile-ranked fund for the 15-year period in four highly competitive Morningstar fixed income categories, as shown below.iv

The PGIM Jennison Global Opportunities Fund and the PGIM Select Real Estate Fund also delivered strong performance over multiple time periods. Among active stock mutual funds, the PGIM Jennison Global Opportunities Fund ranked second for net flows in the Morningstar World Large Stock category in 2019.v

Lowering Costs for Investors

In addition to delivering attractive returns, the firm continues to lower costs for shareholders. Since 2012, PGIM Investments has lowered the expense ratio for 33 funds. A majority (85%) of PGIM mutual fund assets are now in the first or second quartile of expense ratio rankings.vi

A Vehicle-Agnostic Approach

PGIM Investments continues to expand the ways that clients can access investment strategies outside of the mutual fund structure, including ETFs, Separately Managed Accounts and private fund offerings. The PGIM Ultra Short Bond ETF (PULS), named 2019 New Active ETF of the Year by Fund Intelligence, recently surpassed $1 billion in assets under management. vii The firm also helped market the first private real estate deal to the private wealth channel.

Parker added, “Looking ahead, we will continue to take a vehicle-agnostic approach, offering investment strategies in the way our clients want to access them. There’s no one-size-fits-all when it comes to our clients and we are committed to remaining their partner of choice in 2020 and beyond.”

About PGIM Investments

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.

About PGIM and Prudential Financial, Inc.

PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the worldviii with more than $1.3 trillion in assets under management as of Dec. 31, 2019. With offices in 16 countries, 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 public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.

Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about Prudential, please visit news.prudential.com.

Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.

Mutual fund and ETF investing involves risk. Some mutual funds have more risk than others. The investment return and principal value will fluctuate and shares when sold may be worth more or less than the original cost and it is possible to lose money. There is no guarantee a Fund’s objectives will be achieved. Fixed income investments are subject to interest rate risk, where their value will decline as interest rates rise. Diversification does not assure a profit or protect against loss in declining markets.

Class Z shares may be available to group retirement plans and institutional investors through certain retirement, mutual fund wrap and asset allocation programs. They may also be available to institutional investors and through fee- or commission-based retail brokerage programs of certain financial intermediaries. Class Z shares are generally closed to new retirement plans. Please see the prospectus for additional information about fees, expenses, and investor eligibility.

Consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and summary prospectus. Read them carefully before investing.

Mutual funds and ETFs are distributed by Prudential Investment Management Services LLC, a Prudential Financial company. Jennison Associates and PGIM are registered investment advisors and Prudential Financial companies. PGIM Fixed Income and PGlM Real Estate are units of PGIM. © 2020 Prudential Financial, Inc. and its related entities. Jennison, Jennison Associates PGIM, PGIM Real Estate and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

© 2020 Morningstar, Inc. All rights reserved. The information contained herein (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

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i PGIM Investments, as of Dec. 31, 2019.
ii ISS Strategic Insight Simfund, as of Dec. 31, 2019.
iii ISS Strategic Insight Simfund, as of Dec. 31, 2019.
iv Morningstar, as of Dec. 31, 2019.
v Morningstar, as of Dec. 31, 2019.
vi Morningstar, as of Dec. 31, 2019. Analysis is based on like-to-like share class type. Fee ranks are calculated by Morningstar based on the official Morningstar Category Share Class subsets. Assets are based on each individual share class AUM as of Dec. 31, 2019.
viiPGIM Ultra Short Bond ETF was the recipient of the Fund Intelligence 2019 Mutual Fund and ETF Award for New Active ETF of the Year. ETF awards are given to the most successful ETF in each category. New Active ETF of the Year is given to the most successful active ETF as determined by a combination of several factors, including flows, performance and innovation. The ETF must be considered active by the Securities and Exchange Commission to qualify. ETFs launched on or after Jan. 1, 2018 are eligible for entry.
viii Pensions & Investments’ Top Money Managers list, May 27, 2019; based on Prudential Financial total worldwide institutional assets under management as of Dec. 31, 2018. Assets under management (AUM) are based on company estimates and are subject to change.

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