How ESG is applied to a bond portfolio?
PGIM Fixed Income believes there remains an attractive opportunity for active managers with deep expertise to add alpha across the credit markets. While markets will encounter setbacks as the recovery ebbs and flows, a few decisive factors are likely to tip the balance in favor of ongoing spread sector outperformance. The combination of high cash balances and low money market rates may continue pushing investors out the risk spectrum in a search for yield. Furthermore, 2020’s heavy issuance to bolster balance sheet liquidity may give way to a bit less supply in 2021. All said, spread product looks set for further outperformance. Against this backdrop, PGIM Fixed Income believes that ESG considerations are more important than ever and continues to integrate them into their analysis and decision-making processes. In this presentation, Gabriel Doz, Portfolio Specialist for PGIM Fixed Income, will make the case that strong active management can help investors navigate challenges and opportunities in ever-changing fixed income markets and explain how the firm’s proprietary ESG framework is applied to a bond portfolio.
Gabriel Doz, CFA, is a Principal and Portfolio Strategist in European Retail Client Management supporting PGIM Investments’ European Financial Intermediary Group (FIG) in the development of PGIM Fixed Income’s subadvisory capabilities and UCIT platform. Prior to joining the firm in 2016, Mr. Doz was Senior Vice President at PIMCO where he maintained and developed relationships with the firm’s largest institutional EMEA clients. Earlier, he was a discretionary portfolio manager for Société Générale Gestion in Paris and held various roles at Amundi Asset Management an RBC Dexia Investor Services.