Multi Assest

Defensive Equity

PGIM Quantitative Solutions' US Market Participation Strategy (MPS) seeks to provide upside equity participation while seeking to reduce downside risk.

Fact Sheet
Strategy Overview

Reasons To Invest

  • Seeks to Capture 60% of Market Upside With Only 30% of the Downside  
  • Utilizes Highly Liquid Instruments to Achieve Targeted Exposures
  • Provides Diversification to Traditional Asset Classes Within an Overall Portfolio

There is no guarantee that these objectives will be achieved.

Investment Approach

MPS Combines Quantitative Parameters and Portfolio Manager Judgement

The strategy dynamically adjusts factor exposures (market, volatility, and duration) using:

  • S&P 500 Index options and futures, which provide equity participation with limited risk
  • US Government bonds and futures, which seek to preserve capital and provide downside protection

 

Exposures Are Actively Managed In Response To Changing Market Conditions

Since the strategy’s inception on 1/1/1992, this combination of reduced maximum drawdown with significant upside capture has provided annualized returns in line with the S&P 500 Index over the long term – but with significantly less volatility.

Senior Portfolio Managers

Devang Gambhirwala

Portfolio Manager

Joel M. Kallman

Portfolio Manager

Marcus M Perl

Head of Multi Asset

Edward J.Tostanoski III

Portfolio Manager

Advantages of Market Participation Strategy (MPS)

MPS is a risk-mitigation strategy (RMS) designed to deliver consistent returns by providing upside market capture while limiting portfolio losses during market downturns.

Learn More

Related Insights

These materials are for informational or educational purposes only. All investments involve risks, including possible loss of principal. Past performance is not indicative of future results.

The information contained herein is provided by PGIM, the principal asset management business of Prudential Financial, Inc. (PFI), and a trading name of PGIM, Inc. and its global subsidiaries and affiliates.

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