The team at a publicly traded insurer's $1.2-trillion-AUM (as of September 30) asset manager is launching a pair of new fund series.

Stuart Parker PGIM Investments President, CEO

Yesterday, Stuart Parker, president and CEO of PGIM Investments LLC (part of Prudential Financial's PGIM) [profile] unveiled the launch of the PGIM U.S. Large-Cap Buffer 12 ETF series and the PGIM U.S. Large-Cap Buffer 20 ETF series. The first funds in the series are the PGIM US Large-Cap Buffer 12 ETF - January (JANP on the Cboe BZX) and PGIM US Large-Cap Buffer 20 ETF - January (PBJA). The launch boosts PGIM Investments' active ETF lineup to 16 funds and counting.

Both series will combine predetermined upside caps with market returns (specifically that of the S&P 500) while incorporating limited downside protection against either first 12 percent or the first 20 percent of the funds' potential losses over a one-year period. All the funds in the new series will come with an expense ratio of 50 basis points and will be series of the PGIM Rock ETF.

The PGIM team plans to launch one fund each month in each new series, for a grand total of 12 funds per series (i.e. 24 funds in total). PGIM Investments will serve as the funds' investment advisor, PGIM Quantitative Solutions LLC as subadvisor, and PGIM QS' Devang Gambhirwala (principal and portfolio manager), John Hall (vice president), and Peter Vaiciunas (principal and PM) as PM team.

In times of market uncertainty, our clients are looking for ways to participate in the market's upside, while tempering downside risks," Parker states. "Buffer ETFs provide investors with a more narrowly defined outcome range, which can offer more predictability in volatile markets."

Linda Gibson, CEO of PGIM QS, notes that her unit has offered institutional "options trading strategies ... for more than 30 years."

"The Buffer ETF series represents yet another enhancement to our suite of offerings for clients who are looking for meaningful upside access while helping to mitigate risk," Gibson states.

The new funds' other service providers include: the Bank of New York Mellon as custodian, dividend disbursing agent, and transfer agent; PricewaterhouseCoopers, LLP as independent accounting firm; and Prudential Investment Management Services LLC (PIMS) as distributor. 

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