ANNUAL BEST IDEAS
REVIVAL INSTINCTS
Opportunities for long-term investors to thrive
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The Road to Renewal
Two years into the pandemic, uncertainty persists. Inflation, supply-chain constraints and stretched valuations are all concerns, yet there is also reason for optimism. Watch the replay to hear PGIM experts from across the firm discuss these topics and more in a free-flowing discussion aimed at institutional investors and senior investment professionals.
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BRIAN THOMAS
PGIM Private Capital
Gavin Smith
PGIM Quantitative
Solutions
CATHy MARCUS
PGIM Real Estate
speakers
Transitory, or enduring?
As we enter the new year, there’s no shortage of issues facing investors. Some may be shorter-term in nature, others more lasting. When will the Fed raise rates? How do we view the ongoing impact of COVID-19 and its many variants on the financial markets? Is now the time to finally see some substantial headway made on the ESG and sustainability fronts? Tough questions, and none of the answers are especially easy.
Will the Fed, and central banks around the world, pivot to a more balanced monetary policy? It’s a near certainty (at least in the US), barring some unforeseen circumstance that dents the economic recovery. The good news is that investors should be well prepared for a such a move. And over the longer term, key secular trends such as the aging population and debt overhang should manage to keep a lid on rates, reinforcing the ongoing ‘hunt for yield’ and the allure of private markets.
Is ESG for real this time around? Yes, with a caveat. Talk has indeed turned into action, and there’s a significant appetite for managing portfolios’ climate risks and opportunities. But the “greenwashers” are still out there. Better ESG data, and more access to that data, should help.
What’s the role of COVID-19 going forward? As the recent scare surrounding new variants has taught us, we’ll be learning on the fly. But the momentum for a return to some form of normalcy seems to be building, with the financial services industry coming together in fundamentally new ways, with an eye towards maintaining recent levels of productivity and flexibility.
These issues and an array of others play a role in shaping our latest installment of PGIM’s Annual Best Ideas report. Yes, the investment horizon remains riddled with potential pitfalls, but the step-up in growth we’ve experienced as vaccinations have become more ubiquitous should stick around for a while. Cities will once again become the place to be. Opportunities in emerging markets, renewable energy and across the tech universe should be ample.
Either way, our focus will be on the long-term trends and undercurrents that can lead to unique and untapped investment opportunities for our clients. The quarters ahead will surely bring surges and stalls across key economic data, from retail sales and job creation to inflation. And the resulting swings in investor sentiment will no doubt contribute to more volatile days like those we saw in 2021. But despite the lingering risks, we remain confident that the ongoing economic revival has staying power, offering long-term investors in a host of public and private asset classes the opportunity to thrive.
Explore PGIM’s 2022 best IDEAS
1. Will the Fed, and central banks around the world pivot to a more balanced monetary policy?
2. Is ESG for real this time around?
3. What’s the role of
COVID-19 going forward?
Uncovering Tech-Driven Growth in a Crowded Market
The outperformance of tech-related companies is a reminder that the opportunities are not confined solely to hardware, software, and the internet giants.
jennison associates
Unprecedented dislocations in various parts of the Treasury market have resulted in attractive relative value opportunities, including in 10- and 20-year bonds.
Finding Value in Volatility
PGIM FIXED INCOME
Evolving market conditions are supportive of mezzanine debt and other “structured” capital as a relevant source of funding for middle-market upstream companies.
The Growing Role of Alternative
Funding for E&P Companies
PGIM PRIVATE CAPITAL
Cities are seeing signs of improved rental growth, benefiting from a sharp increase in hiring intentions that are driving employment and space requirements.
Cities Are Making a Comeback
PGIM REAL ESTATE
Explore our framework that allows investors to capitalize on alpha opportunities across securities, industries, and countries, while balancing risk.
SOURCING Alpha in Emerging Market
PGIM QUANTITATIVE SOLUTIONS
Explore our framework that allows investors to capitalize on alpha opportunities across securities, industries, and countries, while balancing risk.
Improving Risk/Return Through
Private Equity Secondaries
MONTANA CAPITAL PARTNERS
DC plans need to broaden their focus by offering workers the tools and solutions necessary to convert DC plan savings into lifetime retirement income.
A Roadmap for Generating Income After Work
PGIM DC SOLUTIONS
THE PURSUIT OF OUTPERFORMANCE
Explore ideas
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three questions to consider
It’s a near certainty (at least in the US), barring some unforeseen circumstance that dents the economic recovery. The good news is that investors should be well prepared for a such a move. And over the longer term, key secular trends such as the aging population and debt overhang should manage to keep a lid on rates, reinforcing the ongoing “hunt for yield” and the allure of private markets.
1. Will the Fed and central banks around the world pivot to a more balanced monetary policy?
Yes, with a caveat. Talk has indeed turned into action, and there’s a significant appetite for managing portfolios’ climate risks and opportunities. But the “greenwashers” are still out there. Better ESG data, and more access to that data, should help.
2. Is ESG for real this time around?
video will go here
As the recent scare surrounding new variants has taught us, we’ll be learning on the fly. But the momentum for a return to some form of normalcy seems to be building, with the financial services industry coming together in fundamentally new ways, with an eye towards maintaining recent levels of productivity and flexibility.
3. What’s the role of COVID-19 going forward?
video will go here
Uncovering Tech-Driven Growth in a Crowded Market
jennison associates
Finding Value in Volatility
PGIM FIXED INCOME
The Growing Role of Alternative
Funding for E&P Companies
PGIM PRIVATE CAPITAL
Cities Are Making a Comeback
PGIM REAL ESTATE
SOURCING Alpha in Emerging MarketS
Improving Risk/ Return Through
Private Equity Secondaries
A Roadmap for Generating Retirement Income
PGIM QUANTITATIVE SOLUTIONS
MONTANA CAPITAL PARTNERS
PGIM DC SOLUTIONS
The outperformance of tech-related companies is a reminder that the opportunities are not confined solely to hardware, software, and the internet giants.
Unprecedented dislocations in various parts of the Treasury market have resulted in attractive relative value opportunities, including in 10- and 20-year bonds.
Evolving market conditions are supportive of mezzanine debt and other “structured” capital as a relevant source of funding for middle-market upstream companies.
Cities are seeing signs of improved rental growth, benefiting from a sharp increase in hiring intentions that are driving employment and space requirements.
Explore our framework that allows investors to capitalize on alpha opportunities across securities, industries, and countries, while balancing risk.
Private equity secondaries remain one of the top three long-term strategic preferences of investors, ahead of some other well-established strategies.
DC plans need to broaden their focus by offering workers the tools and solutions necessary to convert DC plan savings into lifetime retirement income.
VIDEO
CATHy MARCUS
PGIM Real Estate
Lisa Abramowicz
Bloomberg
Moderator
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