PGIM is a giant in investment management, handling a massive $821 billion in assets. It’s one of the biggest managers of fixed-income investments. With a strong track record and deep market knowledge, PGIM is ready to guide investors through today’s complex financial world. They aim to help investors reach their long-term financial goals.
PGIM’s mutual funds offer smart, varied investment options for all types of investors. The firm uses its vast asset management skills to create portfolios that fit each investor’s financial goals. These portfolios aim for good returns while keeping risk in check.
Whether you’re an experienced investor or just beginning, PGIM’s mutual funds could be a good choice. They focus on smart investing. This means you get to pick from a broad range of investments. This approach helps spread out your investments and could help you make the most of market chances.
Key Takeaways
- PGIM is a leading asset management firm managing over $821 billion in assets.
- PGIM offers a variety of mutual fund options designed for smart, diversified investing.
- PGIM’s expert-managed portfolios are tailored to meet individual financial goals and risk tolerance levels.
- PGIM’s mutual fund offerings leverage the firm’s extensive asset management expertise to create investment strategies for long-term success.
- PGIM’s mutual funds provide access to a wide range of asset classes, allowing for diversification and potential market opportunities.
What is PGIM Custom Harvest?
PGIM Custom Harvest is a top name in creating new, tax-friendly investment plans using exchange-traded funds (ETFs). They offer separately managed accounts (SMAs) that match an investor’s goals. These accounts also aim to bring big tax benefits by actively managing taxes.
A Leader in Tax-Beneficial Investment Strategies
The PGIM Custom Harvest team is packed with experience in ETFs and managing investments. Robert Holderith started Green Harvest in 2017 and has worked with ETFs since 1999. Brian Jacobs, Jeff Conway, and Denise Gallo also join the team, bringing a lot of knowledge and skills.
Customized Exposure and Significant Tax Benefits
- PGIM Custom Harvest’s portfolios can be made to match what clients want, like the MSCI All Country World (ACWI) Index or the S&P 500 Index.
- They use the tax benefits of ETFs and manage the portfolios actively. This way, they aim to give their clients extra value through smart tax management.
- Their strategies, like the PGIM Custom Harvest U.S. Equity Plus, PGIM Custom Harvest Global Equity Plus, and PGIM Custom Harvest U.S. Equity Plus 50% Hedged, offer tailored exposure and big tax benefits.
“Our focus is on delivering customized exposure and significant tax benefits to our clients through the strategic use of ETFs and active tax management,” said Robert Holderith, Head of PGIM Custom Harvest.
The Benefits of Using ETFs for Direct Indexing
Direct indexing lets investors control their investments by buying individual stocks in an index. This approach gives them more power than index mutual funds or ETFs. Investors can sell stocks to reduce capital gains, which can lower their taxes.
PGIM, a top investment firm, suggests using ETFs for direct indexing. ETFs bring many benefits to this strategy:
- Greater Autonomy: ETFs let investors control their stock choices for better tax efficiency.
- Improved Tax Advantages: ETFs help investors use tax-loss harvesting to offset gains and lower taxes.
- Cost Efficiency: ETFs are cheaper than traditional funds, making direct indexing more affordable.
PGIM uses ETFs for direct indexing to offer a customized investment plan. This plan aims to capture market returns while improving after-tax results.
“Direct indexing through ETFs allows investors to have greater control over their portfolios and better manage their tax liability, ultimately leading to improved after-tax returns.”
PGIM combines direct indexing and ETF benefits for a full investment strategy. This strategy aims to help investors reach their financial goals.
Tax-Loss Harvesting: A Key Strategy
Tax-loss harvesting is a key strategy in investing. It helps increase your after-tax returns. This method captures capital losses in your portfolio. These losses can then offset capital gains, lowering your taxes.
PGIM’s Smart Capture discipline combines benchmark investing with active tax-loss management. This approach allows for harvesting losses in both rising and falling markets. It keeps your portfolio fully invested, making tax-loss capture efficient while keeping tracking error low.
Using tax-loss harvesting can greatly benefit you. Long-term capital gains tax rates are between 0% and 20%, based on your income. Short-term gains are taxed as regular income, which can be higher. By offsetting these gains with losses, you can reduce your taxes and boost your after-tax returns.
The IRS has rules for tax-loss harvesting, like the 30-day wash sale rule. This rule stops you from buying the same securities within 30 days of selling them. Also, this strategy doesn’t work with tax-deferred accounts like traditional 401(k)s or IRAs.
It’s wise to talk to a financial expert or tax advisor. They can help decide if tax-loss harvesting fits your investment and tax situation.
| Benefit | Description |
|---|---|
| Reduced Tax Burden | Tax-loss harvesting lets you offset capital gains, lowering your taxes. |
| Increased After-Tax Returns | Lowering your tax exposure can improve your portfolio’s after-tax returns. |
| Flexible Reinvestment | IRS rules let you reinvest in similar securities, giving you options. |
| Carryover Losses | Any losses from tax-loss harvesting can be carried over indefinitely. |
Tax-loss harvesting is a powerful strategy for optimizing your portfolio and cutting taxes. With PGIM’s skilled team, you can use their expertise to navigate tax-loss harvesting. This could lead to better investment outcomes for you.
The Smart Capture Investment Process
PGIM’s Smart Capture investment process aims to give you full exposure to your desired market while making the most of tax benefits. It uses customized ETF portfolios to achieve this. This method follows a strict three-step process to fine-tune your investment strategy.
Identifying Optimal ETFs and Constructing Portfolios
First, we pick the best ETFs for each part of your portfolio. Our experts look at many ETFs to find those that are most cost-effective and accurate. Then, we build a portfolio that exactly matches what you want to achieve, whether it’s a specific benchmark or allocation.
Determining Trading Thresholds and Monitoring ETFs
Next, we set clear rules for buying and selling to capture tax benefits. Our advanced algorithms watch the market closely, finding chances to cut taxes while keeping your investments fully invested. This way, we aim to increase your returns without taking on more risk.
As we invest, our team keeps a close eye on the ETFs in your portfolio. We make changes when needed to keep your investments in line with your goals and tax strategies. This careful attention is crucial for the long-term success of the Smart Capture strategy.
“The Smart Capture investment process is a game-changer for investors seeking to maximize their after-tax returns while maintaining full market exposure.”
Featured Strategies
PGIM Custom Harvest offers innovative, tax-friendly investment strategies. These strategies aim to give investors a wide view of the equity and fixed income markets. They also help maximize after-tax returns. The strategies include PGIM Custom Harvest U.S. Equity Plus, PGIM Custom Harvest Global Equity Plus, and PGIM Custom Harvest U.S. Equity Plus 50% Hedged.
PGIM Custom Harvest U.S. Equity Plus
This strategy aims to give broad exposure to the U.S. equity market. It uses active tax-loss harvesting and other tax management techniques to lower taxes. By using direct indexing, it tries to match the U.S. equity market’s performance while keeping taxes low.
PGIM Custom Harvest Global Equity Plus
The PGIM Custom Harvest Global Equity Plus strategy offers global equity exposure. It uses direct indexing and tax-loss harvesting for tax-efficient returns. By investing in a mix of global equities, it aims to grow investments while managing taxes well.
PGIM Custom Harvest U.S. Equity Plus 50% Hedged
This strategy combines tax-efficient direct indexing with a 50% currency hedge to the U.S. dollar. It gives investors exposure to the U.S. equity market while reducing currency risks. The goal is to balance equity market participation and currency risk management.
PGIM Custom Harvest’s strategies show the firm’s dedication to offering investors innovative, tax-optimized investment solutions. These solutions can help investors reach their long-term financial goals.
Meet the PGIM Custom Harvest Team
The PGIM Custom Harvest team is led by experienced investment pros. They have deep backgrounds in managing portfolios, creating ETFs, and investing wisely. Robert Holderith, the team leader, has worked with ETFs and strategies since 1999. Brian Jacobs has a strong history in leading and growing investment teams.
Jeff Conway focuses on the investment strategy and managing portfolios. Denise Gallo handles the daily management of investment accounts. Together, they ensure a focused and tax-smart way of investing.
| Team Member | Role | Experience |
|---|---|---|
| Robert Holderith | Head of PGIM Custom Harvest | Implementing, structuring, and developing ETFs and related strategies since 1999 |
| Brian Jacobs | Head of Client Portfolio Management | Proven track record in distribution and leadership roles in the asset management industry |
| Jeff Conway | Chief Investment Officer | Responsible for the overall investment strategy and portfolio management |
| Denise Gallo | Senior Portfolio Manager | Oversees the day-to-day management of separately managed accounts |
The PGIM Custom Harvest team offers deep knowledge and expertise. They ensure a disciplined and tax-efficient way of investing.
Participating in the Equity Rally with Tax Benefits
The equity markets are on the rise, and investors want to make the most of it while cutting their taxes. PGIM Custom Harvest offers a special strategy. This strategy helps investors join the equity rally and use tax benefits.
PGIM Custom Harvest uses tax-loss harvesting as a key strategy. They manage their portfolios closely to find assets that are doing poorly. When they sell these assets at a loss, they can offset their gains from other investments. This reduces the taxes they owe.
“PGIM Custom Harvest’s disciplined approach to tax-loss harvesting enables investors to capitalize on the equity rally while potentially enhancing their after-tax returns,” said a PGIM Investments spokesperson.
The PGIM team knows how to make the most of the equity rally for their clients. They pick and watch the ETFs in their portfolios carefully. This helps them make trades at the best times to get tax benefits.
Investing in the equity rally with tax benefits is a great way for investors to improve their financial results. PGIM Custom Harvest’s tax-loss harvesting strategy is a powerful tool for those aiming for long-term financial success.
The Why, What, and How of Direct Indexing
Direct indexing is a smart way to invest that gives investors control and tax benefits. Experts at PGIM Custom Harvest, led by Robert Holderith, explain this strategy well.
Why Direct Indexing? This method has big perks for investors. It lets you build a portfolio that tracks a benchmark index closely. This means you can use tax-loss harvesting to boost your returns after taxes. Plus, you can make your portfolio fit your goals and likes.
What is Direct Indexing? Simply put, direct indexing means making a portfolio of individual stocks that mimic a target index, like the S&P 500. It lets you be part of the big market but still control your investments. You can also add ESG factors or skip certain sectors or companies.
How Does Direct Indexing Work? PGIM Custom Harvest’s team builds and manages direct indexing portfolios with care. They pick the best ETFs to match the target index, looking at tracking error, liquidity, and cost. They set trading rules and keep an eye on the portfolio to keep it in line with your goals and tax aims.
With PGIM Custom Harvest’s help, investors can enjoy the perks of direct indexing. These include better tax efficiency, a portfolio made just for you, and possibly higher after-tax returns. As more people learn about it, direct indexing is becoming a top choice for those wanting a customized, tax-smart investment strategy.
“Direct indexing allows investors to gain exposure to a benchmark index while maintaining greater control and tax efficiency compared to traditional index funds or ETFs.”
The After-Tax Advantages of pgim mutual fund
Investing in the PGIM mutual fund offers big benefits after taxes. This is thanks to direct indexing and PGIM Custom Harvest. Robert Holderith, the Head of PGIM Custom Harvest, explains how these strategies help investors get better after-tax results.
PGIM uses active tax management and ETF flexibility to boost after-tax returns for taxable clients. The main perks of the PGIM mutual fund include:
- Customized exposure to target specific market segments or factors
- Substantial tax savings through strategic tax-loss harvesting
- Improved after-tax returns compared to traditional index funds
PGIM’s direct indexing gives investors more control over their portfolio’s tax exposure. By managing each security in the portfolio, PGIM can harvest tax losses. This helps offset capital gains and lowers the investor’s tax bill.
“PGIM Custom Harvest allows us to deliver enhanced after-tax returns for our clients by actively managing the tax implications of their portfolio,” said Holderith. “This approach gives us the flexibility to optimize for after-tax outcomes in a way that traditional index funds simply can’t match.”
For investors wanting to be in the equity markets but keep taxes low, the PGIM mutual fund’s after-tax advantages and direct indexing are great options. By working with PGIM, investors can potentially increase their returns and reach their financial goals.
Direct Indexing Goes Mainstream
Direct indexing is becoming more popular among smart investors. Robert Holderith, the Head of PGIM Custom Harvest, sees this trend. He notes the rise of mainstream adoption of this new way to manage money.
Holderith says direct indexing gives investors more control and helps with taxes. By owning the securities themselves, not just a fund, people can manage their money better. They can also use tax-loss harvesting more effectively.
“Direct indexing lets investors make their portfolios fit their needs and goals. It also offers tax benefits,” says Holderith. “This is why we’re seeing more people choose this method.”
Technology, easier access, and a focus on personal investment strategies have pushed direct indexing forward. Investors want to improve their portfolio’s performance and cut taxes. So, direct indexing is getting more popular.
Holderith and PGIM Custom Harvest are key to this trend. They offer solutions that use direct indexing. Their knowledge in making custom portfolios and managing taxes has helped many people reach their financial goals.
PGIM’s Fixed Income Offerings
PGIM offers a range of actively managed fixed-income ETFs. They use their deep knowledge in the field to give investors good yields and risk-adjusted returns. These funds include the PGIM Ultra Short Bond ETF, PGIM Total Return Bond ETF, and PGIM AAA CLO ETF.
PGIM Ultra Short Bond ETF
The PGIM Ultra Short Bond ETF aims to offer a low-risk, high-quality fixed-income option. It acts as a cash alternative or a short-term asset holder. The fund invests in short-term, high-quality bonds. This gives a higher yield than cash while keeping risk low.
PGIM Total Return Bond ETF
The PGIM Total Return Bond ETF is an actively managed pgim fixed income fund. It aims for income and capital growth by investing in various fixed-income securities. The fund’s managers use PGIM’s deep research to find the best opportunities in the total return bond etf market. This includes investment-grade corporate bonds, government securities, and securitized assets.
PGIM AAA CLO ETF
The PGIM AAA CLO ETF gives investors access to the top tranches of collateralized loan obligations (CLOs). These are usually rated aaa clo etf. By focusing on this high-quality part of the CLO market, the fund aims for a competitive yield with low risk.
These PGIM fixed-income options show the firm’s dedication to offering investors diverse solutions. These solutions are designed to meet their changing financial needs.
PGIM’s Asset Management Expertise
PGIM is a top name in the investment world, part of Prudential Financial, Inc.. It handles over $821 billion in assets. This makes PGIM a giant in managing public fixed-income investments.
PGIM doesn’t just focus on fixed income. It’s a leader in managing equity strategies and quantitative investing. With $208 billion and $102 billion in assets, respectively, PGIM offers a wide range of investment strategies.
| PGIM’s Investment Capabilities | Assets Under Management (AUM) |
|---|---|
| Fixed Income | $821 billion |
| Fundamental Active Equity | $208 billion |
| Quantitative Investing | $102 billion |
| Private Alternatives | $319 billion |
| Real Estate | $132 billion in net AUM and $47 billion in AUA |
PGIM has been around for 145 years, navigating 30 market cycles. Its long history, commitment to innovation, and diverse offerings make it a leader in asset management.
“PGIM is the 11th largest investment manager in the world in terms of institutional assets under management.”
PGIM focuses on adding value for its clients. Its expertise, size, and range of services make it a reliable choice for investors looking for investment strategies to meet their financial goals.
Risks and Disclosures
When you invest in PGIM’s mutual funds and ETFs, you need to know the risks. These include market risks, interest rate risks, and credit risks. ETF shares trade at market prices, which might be more or less than their net asset value (NAV). They are not redeemed one by one from the fund. Buying and selling ETF shares can also lead to brokerage commissions, which can cut into your returns.
Active management also brings risks, like the chance that investment methods might not work as planned or that outside factors could change investment outcomes. Always look at the fund’s prospectus and summary prospectus to fully understand the risks before you invest.
| Key Risks | Potential Impact |
|---|---|
| Market Risk | Changes in the stock or bond market can affect your investment’s value. |
| Interest Rate Risk | When interest rates go up, the value of fixed-income securities often falls. |
| Credit Risk | The risk that a bond issuer might not pay interest or return the principal. |
| Tracking Error | The risk that an ETF might not exactly match the performance of its underlying index. |
| Premium/Discount Risk | The risk that an ETF’s market price could be higher or lower than its net asset value (NAV). |
It’s crucial to think about these risks and disclosures before you invest. PGIM’s mutual funds and ETFs offer various options to fit your financial goals and risk level. But remember, all investments come with some level of risk.
“Investing in PGIM’s mutual funds and ETFs involves risks, and investors should review the prospectus and summary prospectus for a complete understanding of the risks before investing.”
Conclusion
PGIM offers a wide range of smart investing options to help you reach your financial goals. Their PGIM Custom Harvest strategies use deep asset management skills to create tailored portfolios. These portfolios aim to give you broad market coverage and big tax benefits.
PGIM combines advanced portfolio building, active tax management, and a skilled investment team. This approach helps you take part in market chances and boost your after-tax earnings. With a focus on custom solutions and global expertise, PGIM’s mutual funds are a strong choice for smart investing and long-term success.
If you’re looking for diversified investments, tax-smart strategies, or expert advice, consider PGIM’s mutual funds. They offer a variety of options to help you meet your financial goals. Discover how PGIM can guide you to smart investing and financial success.
FAQ
What is PGIM Custom Harvest?
PGIM Custom Harvest is a top name in creating tax-smart investment plans using exchange-traded funds (ETFs). They offer separately managed accounts (SMAs) that match a client’s investment goals and aim to boost tax efficiency. These accounts can be tailored to fit each client’s needs, offering big tax savings through ETFs and smart tax handling.
What are the benefits of using ETFs for direct indexing?
Direct indexing with ETFs gives investors more control and tax benefits over traditional index funds or ETFs. By picking individual stocks in an index, investors can sell to offset gains, potentially leading to better after-tax results.
How does PGIM’s tax-loss harvesting strategy work?
Tax-loss harvesting captures capital losses in a portfolio to offset gains. PGIM’s Smart Capture method blends benchmark investing with active tax-loss management. This approach helps capture losses in any market, keeping portfolios fully invested and efficiently managing taxes.
What are the key features of PGIM Custom Harvest’s investment strategies?
PGIM Custom Harvest offers tax-smart investment strategies to help investors gain broad market exposure and maximize their after-tax returns. Their strategies include PGIM Custom Harvest U.S. Equity Plus, PGIM Custom Harvest Global Equity Plus, and PGIM Custom Harvest U.S. Equity Plus 50% Hedged. These strategies aim to cut taxes through active tax-loss harvesting and smart tax management.
Who is the PGIM Custom Harvest team?
The PGIM Custom Harvest team includes seasoned investment pros with deep experience in managing portfolios, ETF development, and tax-efficient investing. Robert Holderith leads the team, starting with ETFs in 1999. Brian Jacobs brings a strong background in distribution and leadership in the asset management field. Jeff Conway oversees the investment strategy and portfolio management. Denise Gallo manages the day-to-day of separately managed accounts.
What are the risks associated with investing in PGIM’s mutual funds and ETFs?
Investing in PGIM’s funds and ETFs comes with market, interest rate, and credit risks. ETF shares trade at market prices, which might differ from their net asset value (NAV). Investors face brokerage commissions when buying and selling ETF shares, affecting returns. Active management also brings risks, like techniques not working as expected or external factors impacting investment performance. Always review the fund’s prospectus and summary prospectus for a full list of risks before investing.