PGIM
{{Short description|American Investment Management firm}}
{{promotional|date=June 2023}}
{{Infobox company
| name = PGIM
| former_names = {{Unbulleted list|Prudential Investment Management|Pramerica Investment Management}}
| logo = Logo of PGIM.svg
| image = Prudential Tower Complete.JPG
| image_caption = Prudential Tower, PGIM's headquarters in Newark, New Jersey
| hq_location = Newark, New Jersey
| key_people =
| type = Private
| industry = Financial services
| products = {{ubl|Asset management | Risk management | Investment management | Wealth management | Life insurance | Mutual funds | Exchange-traded funds | Index funds }}
| aum = US$1.5 trillion (2020)
| parent = Prudential Financial
| homepage = [https://www.pgim.com/ pgim.com]
| divisions =
}}
PGIM, Inc. (PGIM), formerly known as Prudential Investment Management, functions as the asset management arm of Prudential Financial, an American life insurance company.
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.{{Cite web|title=2019 Annual Report|url=https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_PRU_2019.pdf|date=31 December 2019|website=Prudential Financial Inc.|page=34|access-date=27 May 2020}} David Hunt has been the CEO since 2011.{{Cite web|title=Prudential boss says investors should dig in for long term|url=https://www.ft.com/content/1ecef750-076f-11e4-81c6-00144feab7de|last=Flood|first=Chris|date=13 July 2014|website=www.ft.com|access-date=2020-05-17}}{{Cite web|title=$1.2tn asset manager CEO: Fund industry is more than just stock pickers|url=https://www.fnlondon.com/articles/1-2tn-asset-manager-ceo-fund-industry-is-more-than-just-stock-pickers-20190722|last=Ricketts|first=David|date=22 July 2019|website=www.fnlondon.com|language=en-GB|access-date=2020-05-17}}
History
PGIM traces its history to the founding of its parent company, Prudential Financial, in 1875.{{cite web |title=4 PGIM Funds Funds for Healthy Returns (Revised) |url=https://finance.yahoo.com/news/4-pgim-funds-funds-healthy-125812489.html |website=finance.yahoo.com |date=29 July 2019 |access-date=28 February 2020}}
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.{{Cite web|url=http://www.brandchannel.com/2016/12/02/5-questions-pgim-120216/|title=Rebrand in pursuit of alpha: 5 questions with PGIM's Niharika Shah|last=Shayon|first=Sheila|date=December 2, 2016|website=www.brandchannel.com|publisher=Interbrand|access-date=December 13, 2016}} 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.{{Cite news|url=http://ignites.com/c/1209773/132933?referrer_module=SearchSubFromIG&highlight=%22Prudential%20Investment%20Management%22|title=Prudential Investment Management gets new digs|last=Ortiz|first=Peter|date=October 2, 2015|work=Ignites|access-date=December 13, 2016}}
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.{{Cite web|title=PGIM Fixed Income|url=https://www.fitchratings.com/research/structured-finance/pgim-fixed-income-26-04-2021|access-date=2021-08-21|website=www.fitchratings.com}} 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.{{cite news |last1=Daniel |first1=Will |title=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 |url=https://fortune.com/2024/04/06/top-3-ai-stocks-next-decade-portfolio-manager-asml-nvda-msft/ |access-date=22 May 2024 |work=Fortune |date=6 April 2024 |language=en}} The firm also invests in active fixed income, with approximately 30% of its total AUM invested in non-equity securities.{{Cite web|title=PGIM 2021 First Quarter Overview|url=https://cdn.pficdn.com/cms/pgim4/sites/default/files/Q12021-Business-Overview.pdf|website=Prudential Financial}} Jennison has offices in New York and Boston.{{Cite web|title=Jennison Associates LLC report|url=https://reports.adviserinfo.sec.gov/reports/ADV/107959/PDF/107959.pdf}}
= PGIM Quantitative Solutions =
PGIM Quantitative Solutions, formerly QMA,{{Cite web|title=PGIM Names Linda Gibson New CEO of QMA {{!}} PLANADVISER|url=https://www.planadviser.com/pgim-names-linda-gibson-new-ceo-qma/#:~:text=The%20CEO%20change%20comes%20as,unit%20called%20PGIM%20DC%20Solutions.|access-date=2022-01-11|website=www.planadviser.com}} is a subsidiary of PGIM that provides quantitative equity and global Multi-Asset solutions.{{clarify|date=June 2023}} Founded in 1975, it has $120 billion in assets under management as of December 31, 2020.{{Cite web|date=2021-06-07|title=QMA taps Morningstar veteran as new head of retirement research|url=https://www.pionline.com/money-management/qma-taps-morningstar-veteran-new-head-retirement-research|access-date=2021-08-21|website=Pensions & Investments|language=en}}
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,{{Cite web|title=Amid Big-Data Fads, One Firm Tries a New Approach|url=https://www.institutionalinvestor.com/article/b1505qn3s4cdg5/amid-bigdata-fads-one-firm-tries-a-new-approach|access-date=2021-08-21|website=Institutional Investor|date=28 April 2017 |language=en-gb}} and more recently ESG.{{Cite web|title=Where Quant Does It Better|url=https://www.institutionalinvestor.com/article/b1gjm6rplsypfw/Where-Quant-Does-It-Better|access-date=2021-08-21|website=Institutional Investor|date=August 2019 |language=en-gb}} In 2016, QMA developed Target Date glidepaths and Prudential launched Day One Target Date Funds for retirement investors.{{Cite web|last=Bennett|first=Johanna|title=Target Date Funds: Prudential Enters Price War|url=https://blogs.barrons.com/focusonfunds/2016/12/19/target-date-funds-prudential-enters-price-war/|access-date=2021-08-21|website=blogs.barrons.com|language=en-US}}
In January 2019 PGIM acquired Wadhwani Asset Management and merged it with the QMA unit, creating QMA Wadhwani LLP.{{Cite web|title=PGIM to acquire Wadhwani, combine it with QMA|url=https://www.pionline.com/article/20181113/ONLINE/181119954/pgim-to-acquire-wadhwani-combine-it-with-qma|date=2018-11-13|website=Pensions & Investments|language=en|access-date=2020-05-17}}{{Cite news|title=PGIM launches absolute return quant fund for new affiliates|language=en|work=Wealth Manager|url=https://citywireselector.com/news/pgim-launches-absolute-return-quant-fund-for-new-affiliates/a1275107|access-date=2020-05-17}}
PGIM Quantitative Solutions is headquartered in Newark, NJ, with locations in San Francisco, CA and London.{{Cite web|title=Contact Us|url=http://www.qma.com/contact-us|access-date=2021-08-21|website=www.qma.com|language=en}}
= PGIM Private Capital =
PGIM Private Capital manages $101 billion in private placements and mezzanine debt as of December 31, 2020.{{Cite web|last=Universe|first=Investable|date=2021-02-12|title=PGIM Private Capital reports a very good year, indeed|url=https://investableuniverse.com/2021/02/12/pgim-prudential-financial-middle-market-aum/|access-date=2021-08-21|website=Investable Universe|language=en-US}}
= 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.{{Cite news|url=http://www.pionline.com/article/20161003/PRINT/310039981/real-estate-manager-asset-growth-hits-speed-bump|title=Real estate manager asset growth hits speed bump|last=Jacobius|first=Arleen|date=October 3, 2016|work=Pensions & Investments|access-date=December 13, 2016}}{{Cite web|url=http://www.pgimrealestate.com/re/company-overview.shtml|title=Company overview|date=September 30, 2016|website=PGIMrealestate.com|access-date=December 13, 2016}}
In 2020, PGIM Real Estate merged their debt and equity businesses.{{Cite web|title=Executive interview: When two became one|url=https://www.funds-europe.com/march-2020/executive-interview-when-two-became-one|access-date=2021-08-21|website=www.funds-europe.com}}
As of December 31, 2020 net AUM for PGIM Real Estate was $180 billion.{{Cite web|title=ImpactAssets 50: PGIM Real Estate|url=https://www.impactassets.org/ia50_new/fund.php?id=a012R000019mojAQAQ|access-date=2021-08-21|website=www.impactassets.org| date=16 July 2021 }}
= PGIM Investments =
PGIM Investments is the retail distribution division of PGIM and offers investment advisory services for investments, assets and portfolio management.{{Cite web|title=PGIM Investments LLC|url=https://www.bloomberg.com/profile/company/4080015Z:US|website=www.bloomberg.com|access-date=2020-05-06}}
In 2018, PGIM Investments entered the exchange-traded fund space with the launch of the PGIM Ultra Short Bond.{{Cite web|title=PGIM Ultra Short Bond ETF, PULS:PCQ:USD summary - FT.com|url=https://markets.ft.com/data/etfs/tearsheet/summary?s=PULS:PCQ:USD|access-date=2021-08-21|website=markets.ft.com}}
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|date=November 2021}}
= 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.{{Cite web|title=PGIM Global Partners {{!}} PGIM|url=https://newsroom.pgim.com/pgim/press-releases/pgim-global-partners/|website=newsroom.pgim.com|language=en|access-date=2020-05-06}}
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.{{Cite news|last=Foley|first=Stephen|date=November 10, 2015|title=Prudential Investment Management changes name to drum up business|work=Financial Times|url=https://www.ft.com/content/2c0c87f4-8174-11e5-8095-ed1a37d1e096|access-date=December 13, 2016}}
Sustainability
In January 2020 PGIM was among the founding partners of Bloomberg Green, a newsletter focused on climate change news, analysis and solutions.{{Cite web|title=Bloomberg Media Launches Bloomberg Green, A Global Multiplatform News Brand Focused on Climate Change|url=https://www.bloomberg.com/company/press/bloomberg-media-launches-bloomberg-green-a-global-multiplatform-news-brand-focused-on-climate-change/|date=21 January 2020|website=www.bloomberg.com|access-date=2020-05-27}}
PGIM Fixed Income, QMA{{Cite web|title=Quantitative Management Associates LLC (QMA)|url=https://www.unpri.org/signatory-directory/quantitative-management-associates-llc-qma/1681.article|website=PRI|language=en|access-date=2020-05-27}} and PGIM Real Estate are signatories of the UN Principles for Responsible Investment.{{Cite web|url=https://www.unpri.org/organisation/prudential-fixed-income-143504|title=Prudential Fixed Income|website=UNPRI.org|publisher=UN Principles for Responsible Investment|access-date=December 13, 2016}}{{Cite web|url=https://www.unpri.org/organisation/pgim-real-estate-144425|title=PGIM Real Estate|website=UNPRI.org|publisher=UN Principles for Responsible Investment|access-date=December 13, 2016}}
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.{{Cite web|url=http://www.kpf.com/current/news/prudential-newark-receives-leed-gold-certification|title=Prudential Newark receives LEED Gold certification|date=August 30, 2016|website=KPF.com|publisher=Kohn Pederson Fox Associates PC|access-date=December 13, 2016}}
In 2021, PGIM Real Estate committed to reduce the operational carbon emissions of its global portfolio of managed properties to net zero by 2050.{{Cite web|date=5 December 2021|title=PGIM Real Estate commits to global net zero carbon operations|url=https://www.propertyfundsworld.com/2021/05/12/300093/pgim-real-estate-commits-global-net-zero-carbon-operations|website=www.propertyfundsworld.com}}
References
{{Reflist}}
{{Major asset management companies}}