PGIM Investments ranks no. 2 for net mutual fund flows in 2020

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Firm reaches 12 th consecutive year of positive net flows

PGIM Investments ended 2020 with $21.7 billion in net mutual fund flows, No. 2 in the industry, and record mutual fund assets under management (AUM) of $160.4 billion, up 31% from 2019. 1 The firm is the fourth fastest growing fund family by organic growth and has reached its 12th consecutive year of positive net mutual fund flows. 2

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Stuart Parker, President and CEO, PGIM Investments (Photo: Business Wire)

PGIM Investments and its affiliates manufacture and distribute funds on behalf of PGIM, Inc., the $1.5 trillion global investment management business of Prudential Financial, Inc. ( NYSE: PRU )—a top-10 investment manager globally.

Strong fund flows and AUM growth were largely driven by demand for PGIM’s actively managed fixed income funds. The firm is the eighth largest fixed income mutual fund family in the U.S. 3

Additional 2020 business highlights include:

  • Top-rated funds: 86% of the firm’s mutual fund AUM is in 5- and 4-star-rated funds as rated by Morningstar. 4
  • Solid performance: 91%, 90%, 90%, 92%, and 93% of PGIM’s mutual fund AUM beat their Morningstar category averages over the last 3-, 5-, 10-, 15-, and 20-year periods, respectively. 5
  • Lowering costs for investors:
    • In addition to delivering attractive returns, the firm continues to lower costs for investors. PGIM Investments has executed on 58 strategic fee reductions resulting in $166 million in annual shareholder savings since 2012. 6
    • A majority (84%) of PGIM mutual fund assets are now in the first or second quartile of expense ratio rankings. 7
  • A vehicle-agnostic approach:
    • In November 2020, PGIM Investments launched its third closed-end fund , raising $493 million upon its IPO.
    • Total PGIM Investments AUM including ETFs and closed-end funds as of Dec. 31, 2020 amounted to $163.3 billion.
    • PGIM Investments and its affiliates also raised nearly $5 billion in products outside of traditional open- and closed-end mutual funds and ETFs, including separately managed accounts, subadvised, collective investment trusts and strategist model portfolios.

“PGIM Investments’ continued success is both the outcome of investments made in our business over the past decade as well as the strong investment performance delivered by our asset managers,” said Stuart Parker, PGIM Investments president and CEO. “We look forward to serving our financial intermediary clients into 2021 and beyond.”

About PGIM Investments

PGIM Investments LLC and its affiliates offer more than 100 funds globally across a broad spectrum of asset classes and investment styles. All products draw on PGIM’s globally diversified investment platform that encompasses the expertise of managers across fixed income, equities and real estate.

About PGIM

PGIM , the global asset management business of Prudential Financial, Inc. ( NYSE: PRU ), ranks among the top 10 largest asset managers in the world* with $1.5 trillion in assets under management as of December 31, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com .

* Prudential Financial Inc. (PFI) is the 10th largest investment manager (out of 527 firms surveyed) in terms of global assets under management based on Pensions & Investments’ Top Money Managers list published on June 1, 2020. This ranking represents global assets under management by PFI as of March 31, 2020.

1 PGIM Investments, as of Dec. 31, 2020.

2 ISS Strategic Insight Simfund, as of Dec. 31, 2020. Note: PGIM ranks 4 th for organic growth among the industry’s top 50 U.S. mutual fund families, ranked by total AUM.

3 ISS Strategic Insight Simfund, as of Dec. 31, 2020.

4 Source: Calculated by PGIM Investments using Morningstar data as of Dec. 31, 2020. Approximately 41% of total AUM is representative of one fund. As of Dec. 31, 2020, 32 of PGIM’s mutual funds across asset classes were rated 4- or 5-stars by Morningstar.

5 91%, 90%, 90%, 92%, and 93% of our Mutual Fund AUM beat the Morningstar category averages over the last 3-, 5-, 10-, 15-, and 20-year periods, respectively. Source: Morningstar, including all available share classes ranked by Morningstar in the respective time periods. Simfund utilized for share class AUM. All information as of Dec. 31, 2020.

6 PGIM Investments, based on each Funds’ total net assets as of Dec. 31, 2020.

7 84% of our Mutual Fund AUM ranks 1st and 2nd quartile in terms of fees. Source: Morningstar based on like-to-like share class level category information. Simfund data for share class AUM. All information as of Dec. 31, 2020.

Mutual fund and ETF investing involves risk. Some mutual funds have more risk than others. The investment return and principal value will fluctuate and shares when sold may be worth more or less than the original cost and it is possible to lose money. There is no guarantee a Fund’s objectives will be achieved. Fixed income investments are subject to interest rate risk, where their value will decline as interest rates rise. Diversification does not assure a profit or protect against loss in declining markets.

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Mutual funds and ETFs are distributed by Prudential Investment Management Services LLC, a Prudential Financial company. Jennison Associates and PGIM are registered investment advisors and Prudential Financial companies. PGIM Fixed Income and PGIM Real Estate are units of PGIM. © 2021 Prudential Financial, Inc. and its related entities. Jennison, Jennison Associates, PGIM, PGIM Real Estate and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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Morningstar Rating for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

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MEDIA: Kylie Scott
973-902-2503
kylie.scott@pgim.com