Archived: PGIM Investments Expands Active ETF Platform with the Launch of a New High Yield Bond Fund

Originally Published by Prudential.

PGIM Investments has launched its second actively managed exchange-traded fund, the PGIM Active High Yield Bond ETF (NYSE Arca: PHYL), as it continues to expand the ETF platform created earlier this year. PGIM Investments is the worldwide distributor of retail products for PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU)—a top-10 investment manager globally.


“Having the benefit of scale has provided us the flexibility to expand our platform and thoughtfully develop strategies in a variety of vehicles that meet client demand,” said Stuart Parker, president and CEO of PGIM Investments. “When it comes to ETFs, our focus is on developing competitive products that align with our core investment capabilities.”

PGIM Investments’ first ETF, the PGIM Ultra Short Bond ETF (NYSE Arca: PULS), was launched in April and has more than doubled in size, growing to $51 million as of August 31, 2018. Just like PULS, the PGIM Active High Yield Bond ETF (PHYL) is also actively managed by sub-adviser PGIM Fixed Income and is attractively priced. PHYL is priced at 0.53 percent, 14 basis points below the average active high yield ETF, according to Morningstar as of August 31, 2018. The Fund invests primarily in high yield bonds and seeks to generate total return through a combination of current income and capital appreciation.

“We see a lot of opportunity for an experienced active manager with a core capability in high yield bond investing,” said Parker. “Our investors couldn’t be in more capable hands—our portfolio management team has the experience, credit research, and risk management capabilities critical to investing in this sector.”

The PGIM Active High Yield Bond ETF is managed by the same PGIM Fixed Income team that manages the 5-Star Overall Morningstar-rated PGIM High Yield Fund as of June 30, 2018, an actively managed open-end fund that has also earned Morningstar’s Gold Analyst rating as of July 23, 2018.

PGIM Fixed Income, with $716 billion under management as of June 30, 2018, has been managing high yield bonds since 1979, including $67 billion in global leveraged finance assets. Its integrated, 49-member leveraged finance team, led by Managing Director Robert Cignarella, is based in the U.S. and Europe. The team builds portfolios using bottom-up credit research, focused on identifying credits with solid fundamentals, while managing risk. The team averages 19 years of investment experience.

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