PGIM

Last updated
PGIM
Formerly
  • Prudential Investment Management
  • Pramerica Investment Management
Company type Private
Industry Financial services
HeadquartersNewark, New Jersey
Products
AUM US$1.5 trillion (2020)
Parent Prudential Financial
Website pgim.com

PGIM, Inc. (PGIM), formerly known as Prudential Investment Management, functions as the asset management arm of Prudential Financial, an American life insurance company.

Contents

Headquartered in Newark, New Jersey, United States, PGIM manages more than $1 trillion in assets across its fixed income, equity, real estate, alternatives, and multi-asset channels, including $283 billion for retail investors, and $553 billion for institutional clients, as of December 2019. [1] David Hunt has been the CEO since 2011. [2] [3]

History

PGIM traces its history to the founding of its parent company, Prudential Financial, in 1875. [4]

PGIM is currently one of the 10 largest asset managers in the world, with more than 1,100 investment professionals working for the company across 31 offices. [5] The firm is headquartered in the Prudential Tower in Newark, New Jersey, which currently houses approximately 3,000 employees from a variety of PGIM's investment management divisions. [6]

Structure

PGIM follows a multi-manager model divided into several autonomous businesses:

PGIM Fixed Income

PGIM Fixed Income is the fixed income investment arm of PGIM, with $968 billion in assets under management as of December 31, 2020. [7] PGIM Fixed Income focuses on investing in the global fixed income markets through offices in the US, London, Amsterdam, Zurich, Munich, Hong Kong, Tokyo and Singapore.

Jennison Associates

Founded in 1969, Jennison Associates is the fundamental equity investment arm of PGIM, with $194 billion in assets under management as of April 2024. [8] The firm also invests in active fixed income, with approximately 30% of its total AUM invested in non-equity securities. [9] Jennison has offices in New York and Boston. [10]

PGIM Quantitative Solutions

PGIM Quantitative Solutions, formerly QMA, [11] is a subsidiary of PGIM that provides quantitative equity and global Multi-Asset solutions.[ clarification needed ] Founded in 1975, it has $120 billion in assets under management as of December 31, 2020. [12]

PGIM Quantitative Solutions uses factor investing in its quantitative process. The firm has drawn attention to their approaches to behavioral bias and momentum investing, unstructured data analysis, [13] and more recently ESG. [14] In 2016, QMA developed Target Date glidepaths and Prudential launched Day One Target Date Funds for retirement investors. [15]

In January 2019 PGIM acquired Wadhwani Asset Management and merged it with the QMA unit, creating QMA Wadhwani LLP. [16] [17]

PGIM Quantitative Solutions is headquartered in Newark, NJ, with locations in San Francisco, CA and London. [18]

PGIM Private Capital

PGIM Private Capital manages $101 billion in private placements and mezzanine debt as of December 31, 2020. [19]

PGIM Real Estate

PGIM Real Estate is the global real estate investment arm of PGIM, with professionals in 32 cities around the world. The firm has consistently been the largest manager of worldwide institutional assets according to Pensions & Investments , an industry publication. [20] [21]

In 2020, PGIM Real Estate merged their debt and equity businesses. [22]

As of December 31, 2020 net AUM for PGIM Real Estate was $180 billion. [23]

PGIM Investments

PGIM Investments is the retail distribution division of PGIM and offers investment advisory services for investments, assets and portfolio management. [24]

In 2018, PGIM Investments entered the exchange-traded fund space with the launch of the PGIM Ultra Short Bond. [25]

As of December 31, 2020, the firm had recorded mutual fund assets under management of $160 billion, with $21.7 billion in net mutual fund flows.[ citation needed ]

PGIM Global Partners

Established in 1998, PGIM Global Partners operates asset management companies outside the US, with assets valued at $96 billion as of March 2020. [26]

Rebranding

In January 2016, Prudential Investment Management changed its name to PGIM in an effort to unify the brand as the firm expanded its global reach. Prior to the change, PGIM used the pseudonym Pramerica in many countries outside of the United States, where UK-based insurer Prudential plc retained the rights to the Prudential name. [27]

Sustainability

In January 2020 PGIM was among the founding partners of Bloomberg Green, a newsletter focused on climate change news, analysis and solutions. [28]

PGIM Fixed Income, QMA [29] and PGIM Real Estate are signatories of the UN Principles for Responsible Investment. [30] [31]

The firm's headquarters, the Prudential Tower, is LEED Gold certified and features a rainwater retention irrigation system, a rooftop garden and walking track, two living green walls, and a parking garage outfitted with electric car charging stations. [6] [32]

In 2021, PGIM Real Estate committed to reduce the operational carbon emissions of its global portfolio of managed properties to net zero by 2050. [33]

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References

  1. ↑ "2019 Annual Report" (PDF). Prudential Financial Inc. 31 December 2019. p. 34. Retrieved 27 May 2020.
  2. ↑ Flood, Chris (13 July 2014). "Prudential boss says investors should dig in for long term". www.ft.com. Retrieved 2020-05-17.
  3. ↑ Ricketts, David (22 July 2019). "$1.2tn asset manager CEO: Fund industry is more than just stock pickers". www.fnlondon.com. Retrieved 2020-05-17.
  4. ↑ "4 PGIM Funds Funds for Healthy Returns (Revised)". finance.yahoo.com. 29 July 2019. Retrieved 28 February 2020.
  5. ↑ Shayon, Sheila (December 2, 2016). "Rebrand in pursuit of alpha: 5 questions with PGIM's Niharika Shah". www.brandchannel.com. Interbrand. Retrieved December 13, 2016.
  6. 1 2 Ortiz, Peter (October 2, 2015). "Prudential Investment Management gets new digs". Ignites. Retrieved December 13, 2016.
  7. ↑ "PGIM Fixed Income". www.fitchratings.com. Retrieved 2021-08-21.
  8. ↑ Daniel, Will (6 April 2024). "Top portfolio manager at a $194 billion asset manager breaks down her top 3 AI stocks for the next decade—and one honorable mention flying under the radar". Fortune. Retrieved 22 May 2024.
  9. ↑ "PGIM 2021 First Quarter Overview" (PDF). Prudential Financial.
  10. ↑ "Jennison Associates LLC report" (PDF).
  11. ↑ "PGIM Names Linda Gibson New CEO of QMA | PLANADVISER". www.planadviser.com. Retrieved 2022-01-11.
  12. ↑ "QMA taps Morningstar veteran as new head of retirement research". Pensions & Investments. 2021-06-07. Retrieved 2021-08-21.
  13. ↑ "Amid Big-Data Fads, One Firm Tries a New Approach". Institutional Investor. 28 April 2017. Retrieved 2021-08-21.
  14. ↑ "Where Quant Does It Better". Institutional Investor. August 2019. Retrieved 2021-08-21.
  15. ↑ Bennett, Johanna. "Target Date Funds: Prudential Enters Price War". blogs.barrons.com. Retrieved 2021-08-21.
  16. ↑ "PGIM to acquire Wadhwani, combine it with QMA". Pensions & Investments. 2018-11-13. Retrieved 2020-05-17.
  17. ↑ "PGIM launches absolute return quant fund for new affiliates". Wealth Manager. Retrieved 2020-05-17.
  18. ↑ "Contact Us". www.qma.com. Retrieved 2021-08-21.
  19. ↑ Universe, Investable (2021-02-12). "PGIM Private Capital reports a very good year, indeed". Investable Universe. Retrieved 2021-08-21.
  20. ↑ Jacobius, Arleen (October 3, 2016). "Real estate manager asset growth hits speed bump". Pensions & Investments. Retrieved December 13, 2016.
  21. ↑ "Company overview". PGIMrealestate.com. September 30, 2016. Retrieved December 13, 2016.
  22. ↑ "Executive interview: When two became one". www.funds-europe.com. Retrieved 2021-08-21.
  23. ↑ "ImpactAssets 50: PGIM Real Estate". www.impactassets.org. 16 July 2021. Retrieved 2021-08-21.
  24. ↑ "PGIM Investments LLC". www.bloomberg.com. Retrieved 2020-05-06.
  25. ↑ "PGIM Ultra Short Bond ETF, PULS:PCQ:USD summary - FT.com". markets.ft.com. Retrieved 2021-08-21.
  26. ↑ "PGIM Global Partners | PGIM". newsroom.pgim.com. Retrieved 2020-05-06.
  27. ↑ Foley, Stephen (November 10, 2015). "Prudential Investment Management changes name to drum up business". Financial Times. Retrieved December 13, 2016.
  28. ↑ "Bloomberg Media Launches Bloomberg Green, A Global Multiplatform News Brand Focused on Climate Change". www.bloomberg.com. 21 January 2020. Retrieved 2020-05-27.
  29. ↑ "Quantitative Management Associates LLC (QMA)". PRI. Retrieved 2020-05-27.
  30. ↑ "Prudential Fixed Income". UNPRI.org. UN Principles for Responsible Investment. Retrieved December 13, 2016.
  31. ↑ "PGIM Real Estate". UNPRI.org. UN Principles for Responsible Investment. Retrieved December 13, 2016.
  32. ↑ "Prudential Newark receives LEED Gold certification". KPF.com. Kohn Pederson Fox Associates PC. August 30, 2016. Retrieved December 13, 2016.
  33. ↑ "PGIM Real Estate commits to global net zero carbon operations". www.propertyfundsworld.com. 5 December 2021.
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