$209 Billion in Fixed Income Assets

Prudential Fixed Income Management is one of the largest fixed income managers in the US* with $209 billion in assets under management (as of June 30, 2008) for institutional, retail, and affiliated insurance company clients worldwide. Prudential Fixed Income Management and its predecessor business units have managed US fixed income accounts for institutional clients since 1928.

Our comprehensive product line offers institutional clients traditional fixed income strategies including Enhanced Index, Core, Core Plus, Single-Sector, and Asset Liability Management. Our objective is to deliver consistent outperformance over benchmarks, with a high information ratio. Our market presence, sector-specific expertise, 44-person in-house credit research staff, and quantitative analytic tools are powerful advantages in reaching these objectives. Additionally, Prudential Fixed Income Management offers specialized products, such as fixed income hedge funds and collateralized debt obligations (CDOs).

Investment Philosophy

We believe highly diversified portfolios, where a variety of exposures are implemented simultaneously within a risk managed framework, offer the best opportunity for above-average returns with below-average volatility.

Investment Approach

•  Construct portfolios that achieve high information ratios through risk budgeting and broad diversification across sectors, subsectors and issuers.
•  Use varying degrees of the following strategies, depending on client objective and risk tolerances:
  •  Yield curve and duration management
  •  Active sector rotation, benchmark and non-benchmark
  •  Active subsector rotation
  •  Research-driven security selection
•  Monitor and control risk


Prudential Investment Management is the primary asset management business of Prudential Financial, Inc. Prudential Fixed Income Management is Prudential Investment Management's largest public fixed income asset management unit and operates through Prudential Investment Management, Inc. (PIM), a registered investment advisor. Prudential Fixed Income, which is housed within Prudential Fixed Income Management, had $201 billion in assets under management as of June 30, 2008. Prudential Fixed Income does not include certain hedge fund, CDO, and managed account strategies managed by Prudential Fixed Income Management. In managing assets of client accounts, Prudential Fixed Income Management may at times sub-delegate or otherwise partner with certain affiliates and subsidiaries.

* Source of ranking: Institutional Investor, July 2008, based on domestic fixed income securities held as of 12/31/07. Excludes additional assets in total public fixed income managed by certain other units or affiliates of Prudential Investment Management.




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© Copyright 2008 Prudential Financial, Inc., Newark, NJ USA. All rights reserved.
Prudential Investment Management is a business of Prudential Financial.

Prudential is authorized to transact business in all U.S. states and the District
of Columbia. Product availability varies by state and country.

Market Outlook/Research
Market Outlook
Corporate Outlook
Leveraged Finance
Emerging Markets Outlook
Where is the Tail? Why Short-Selling Makes Sense in Fixed Income (April 2007)

Emerging Markets: The Engine That Will Power The Global Economy In Coming Years  (January 2007)

The Value of Short Selling: Lifting the Long-Only Constraint  (Vol. I, December 2006)

Investing in Emerging Markets Debt: Myths, Legends, and Facts, (October 2006)



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What Makes Us Different

1) Market Presence

Attractive economies of scale permit us to apply and execute our best ideas consistently across all client portfolios, leveraging each advantage for the benefit of all.

2) Focused Sector
     Expertise


Having expertise in a number of different sectors increases the odds of being able to quickly and effectively seize infrequent or unexpected opportunities.

3) Superior Research
     Organization


As credit issuance increases worldwide, fundamental credit research becomes increasingly critical.

4) Proprietary
     Quantitative
     Analytics


Technology has transformed global fixed income markets, requiring extensive quantitative analytics to effectively manage disciplined, risk-controlled portfolios.