PAB Profile
The PGIM Active Aggregate Bond ETF is an actively managed fund that aims to achieve its investment objective by focusing on a diverse range of bonds. Under normal market conditions, the fund allocates at least 80% of its investable assets to various bond securities. This broad bond exposure encompasses U.S. dollar-denominated fixed-income instruments, ensuring that all investments are conducted in the currency of the U.S. dollar to mitigate foreign exchange risk.
In addition to its core investment in domestic bonds, the fund has the flexibility to invest up to 25% of its assets in U.S. dollar-denominated fixed-income securities issued by foreign entities, including those from emerging markets. This global approach allows the fund to capture opportunities across different international markets while maintaining a focus on dollar-denominated securities to manage currency risk.
The investment strategy of the fund is centered around acquiring bonds rated investment grade at the time of purchase. This rating criterion ensures that the fund invests in high-quality, lower-risk securities, aiming to provide investors with stable returns and capital preservation. The fund’s active management approach allows it to adjust its portfolio dynamically based on changing market conditions and interest rate environments.
Overall, the PGIM Active Aggregate Bond ETF offers investors a comprehensive solution for accessing a broad spectrum of fixed-income securities, combining domestic and international exposures while maintaining a focus on investment-grade quality. By leveraging an active management strategy, the fund seeks to enhance returns and manage risk through selective bond investments and tactical adjustments in response to market conditions.
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