PGIM Fixed Income manages a variety of fixed income strategies, including multi-sector, securitized products, investment grade credit, leveraged finance, emerging markets, municipals, money market, government, short duration, systematic, alternative, and long duration strategies. PGIM Fixed Income serves as collateral manager for collateralized loan obligations (CLOs). PGIM Fixed Income integrates environmental, social, and governance (ESG) factors into its investment process.
Fee Structure
PGIM Fixed Income's fees are negotiated and vary based on factors like account size, investment strategy, and client relationship. Fees are generally asset-based or performance-based. Asset-based fees are tiered, decreasing as the amount invested increases. Performance-based fees include incentive fees and carried interest, based on realized profits. Here are some examples of their fee schedules:
- Absolute Return Fixed Income and Securitized Credit:
- 0.39% on the first $100 million
- 0.35% on the next $100 million
- 0.29% thereafter
- Agency and Non-Agency Mortgage-Backed Securities, Global Sovereign, and U.S. Treasury STRIPS:
- 0.15% on the first $100 million
- 0.12% on the next $100 million
- 0.10% thereafter
- Asset Based Finance:
- 0.59% on the first $200 million
- 0.49% on the next $200 million
- 0.40% thereafter
- CLO Management:
- 0.20% on all assets (senior fee)
- 0.30% on all assets (subordinated fee)
- Annual Incentive fee: 20% of return over a 10% internal rate of return
- Credit Income: 1.60% on all assets
- Credit Opportunities: Annual Management Fee: 1.50% plus Annual Incentive Fee: 20% of net return over 7%
- Large Cap Private Credit: Annual Management Fee: 1.25% plus Carried Interest: 12.5% of realized profits over a 6% preferred return
- Special Opportunities: Annual Management Fee: 2.00% plus Carried Interest: 20% of realized profits over an 8% preferred return