PGIM

Last updated
PGIM
Formerly
  • Prudential Investment Management
  • Pramerica Investment Management
IndustryFinancial services
HeadquartersNewark, New Jersey
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 $224 billion in assets under management as of December 31, 2020. [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]

Related Research Articles

A real estate investment trust is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping centers, hotels and commercial forests. Some REITs engage in financing real estate.

<span class="mw-page-title-main">Fidelity Investments</span> American multinational financial services corporation

Fidelity Investments, commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.3 trillion in assets under management, and, as of December 2022, their assets under administration amount to $10.3 trillion. Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance.

<span class="mw-page-title-main">Blackstone Inc.</span> American alternative investment company

Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate. Blackstone is also active in credit, infrastructure, hedge funds, insurance, secondaries, and growth equity. As of June 2023, the company's total assets under management were approximately US$1 trillion, making it the largest alternative investment firm globally.

<span class="mw-page-title-main">D. E. Shaw & Co.</span> U.S.-based investment management firm

D. E. Shaw & Co., L.P. is a multinational investment management firm founded in 1988 by David E. Shaw and based in New York City. The company is known for developing complicated mathematical models and sophisticated computer programs to exploit anomalies in the financial market. As of June 1, 2021, D. E. Shaw manages $55 billion in AUM, $35 billion of which are alternative investments and the remaining $20 billion long-oriented investments. In 2023, Forbes reported that among hedge funds, D. E. Shaw had delivered the third-highest returns in the world since its inception.

<span class="mw-page-title-main">PIMCO</span> US global investment management firm

PIMCO is an American investment management firm focusing on active fixed income management worldwide. PIMCO manages investments in many asset classes such as fixed income, equities, commodities, asset allocation, ETFs, hedge funds, and private equity. PIMCO is one of the largest investment managers, actively managing more than $2 trillion in assets for central banks, sovereign wealth funds, pension funds, corporations, foundations and endowments, and individual investors around the world. PIMCO’s headquarters are in Newport Beach, California; the firm has over 3,100 employees working in 22 offices throughout the Americas, Europe, and Asia. PIMCO and Allianz Global Investors manage around €2.5 trillion of third-party assets.

<span class="mw-page-title-main">AllianceBernstein</span> American asset management firm

AllianceBernstein Holding L.P.(AB) is a global asset management firm providing investment management and research services worldwide to institutional, high-net-worth and retail investors.

State Street Global Advisors (SSGA) is the investment management division of State Street Corporation and the world's fourth largest asset manager, with nearly $4.14 trillion (USD) in assets under management as of 31 December 2021.

<span class="mw-page-title-main">M&G</span> British fund management company

M&G plc is a global investment manager headquartered in the City of London. Since its de-merger from Prudential plc, it has been listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

<span class="mw-page-title-main">Macquarie Group</span> Australian investment bank and financial services company

Macquarie Group Limited is an Australian global financial services group. Headquartered and listed in Australia, Macquarie employs more than 20,000 staff in 34 markets, is the world's largest infrastructure asset manager and Australia's top ranked mergers and acquisitions adviser, with more than A$871 billion in assets under management.

<span class="mw-page-title-main">Ares Management</span> American asset management company

Ares Management Corporation is a global alternative investment manager operating in the credit, private equity and real estate markets. The company was founded in 1997 with additional offices across North America, Europe, and Asia.

<span class="mw-page-title-main">GAM (company)</span> Swiss investment company

GAM Investments is an independent, pure play asset management group headquartered in Zurich. The Group sells to a wide range of client segments such as institutions, wholesale intermediaries, financial advisers, and private investors. The Group’s investment management business is complemented by a private labelling unit which provides outsourcing for third-party asset managers.

<span class="mw-page-title-main">BTG Pactual</span> Brazilian financial services company

BTG Pactual is a Brazilian financial company that operates in the markets of investment banking, wealth management, asset management, corporate lending and sales and trading. It offers advisory services in mergers and acquisitions, wealth planning, loans and financings, as well as investment solutions and market analyses. It is the sixth largest banking institution in Brazil, the eleventh largest in Latin America, and the largest investment bank in Latin America and the Caribbean.

<span class="mw-page-title-main">Amundi</span> French asset management firm

Amundi is a French asset management company. With €2 trillion of assets under management (AUM) at the end of 2021, it is the largest asset manager in Europe and one of the 10 biggest investment managers in the world.

Barings LLC, known as Barings, is a global investment management firm owned by Massachusetts Mutual Life Insurance Company (MassMutual). It operates as a subsidiary of MassMutual Financial Group, a diversified financial services organization.

Emmanuel "Manny" Roman is a French financial executive. He is the chief executive officer (CEO) and a managing director of PIMCO, one of the world’s premier fixed income investment managers, based in Newport Beach, California. In 2011, he was named by the Evening Standard as one of London's 1000 most influential people.

Candriam, a subsidiary of New York Life, is a global multi-specialist asset management firm. By 31 December 2022, Candriam had 139 billion euros of assets under management (AUM).

Axa Investment Managers is a global investment management firm with offices in over 22 locations worldwide. It operates as the investment arm for Axa, a global insurance and reinsurance company.

<span class="mw-page-title-main">Abrdn</span> UK based investment company

Abrdn plc, formerly Standard Life Aberdeen plc, is a United Kingdom-based global investment company headquartered in Edinburgh, Scotland. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

<span class="mw-page-title-main">Eastspring Investments</span> Singapore based asset manager

Eastspring Investments is an investment management firm headquartered in Singapore that is focused on investments throughout Asia. It is a subsidiary of Prudential plc.

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. "JENNISON ASSOCIATES LLC Top 13F Holdings". whalewisdom.com. Retrieved 2021-08-21.
  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.