PGAFX — PGIM Wadhwani Systematic Absolute Return Fund
Data updated: 2024-09-27
PGAFX — PGIM Wadhwani Systematic Absolute Return Fund. Long-Short · $37.67M AUM · 2.16% expense ratio. Holdings, fees, performance and SEC filings.
PGAFX Fund Overview
PGAFX — PGIM Wadhwani Systematic Absolute Return Fund is a US mutual fund managed by Prudential Investment Portfolios 3, categorised as Long-Short. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Prudential Investment Portfolios 3
- Category: Long-Short
- Assets under management: $37.67M
- 1-year return: -0.5%
- Ticker: PGAFX
- SEC CIK: 0001104631
- SEC series ID: S000070253
- Share class ID: C000223431
PGAFX Investment Objective and Strategy
PGIM Wadhwani Systematic Absolute Return Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Prudential Investment Portfolios 3.
Investment objective
The investment objective of the Fund is to seek long-term risk adjusted total return .
Principal investment strategy
The Fund will seek to achieve its investment objective by investing globally in instruments that provide exposure to three broad asset classes: equities, fixed income and currencies. The Fund may gain exposure to equities through derivative instruments such as equity index futures and equity index swaps or by direct investment in equities. The Fund may gain exposure to fixed income through derivative instruments such as bond futures and index futures or swaps, interest rate futures or swaps, and inflation swaps, or by direct investment (including sovereign debt). The Fund will gain exposure to currencies through derivative instruments such as foreign exchange contracts. Under normal market conditions, the Fund expects its investments in fixed income securities will be predominantly in debt securities that are rated investment grade.
Investment grade securities are those rated BBB or higher by S&P Global Ratings (S&P), or Baa2 or higher by Moodys Investors Service, Inc. (Moodys), or the equivalent by another nationally recognized statistical rating organization (NRSRO), or if unrated, are considered by the Funds subadviser to be of comparable quality. Up to 30% of the Funds total assets may be invested in non-investment grade securities (commonly referred to as junk bonds). In the event that a security receives different ratings from different NRSROs, the Fund will treat the security as being rated in the highest rating category received from an NRSRO. The Fund will enter into certain derivative instruments and transactions, such as futures, swaps (including index swaps and total return swaps), forward foreign exchange contracts, foreign exchange spot transactions and short sales, that create leverage (effective leverage).
The Fund may employ effective leverage in addition to any borrowings permitted by the Funds policies and restrictions with respect to borrowing. In addition to using these instruments to pursue its investment objective, the Fund may also use derivative instruments and transactions to seek to enhance return or seek to reduce (hedge) investment risks. Because the Funds investments in derivatives and other financial instruments often involve leverage, the Fund expects to hold substantial amounts of cash and/or money market instruments (including cash deposits, certificates of deposits, U.S. treasuries and money market funds). Cash and money market instruments may be held and used for various purposes, such as to make margin payments on the derivatives held by the Fund. The use of leverage, however, may make the Funds portfolio more volatile compared to a fund that otherwise invests significantly in cash and cash equivalents.
The Funds investments may have exposure to both developed and emerging market countries. Under normal circumstances, the Fund intends to invest a majority of its assets in securities (or financial instruments linked to those securities) of issuers located, or conducting a significant portion of their business, in developed market countries (defined as those countries in the FTSE Developed Index or any other country with similar characteristics as determined by the subadviser from time to time). Under normal market conditions, the Fund may invest up to 30% of its total assets in securities (or financial instruments linked to those securities) of issuers located, or conducting a significant portion of their business, in emerging market countries. Emerging market countries are defined as those countries included in the FTSE Emerging Index or any other country with similar characteristics as determined by the subadviser from time to time.
The Fund may invest up to 10% of its total assets in affiliated and non-affiliated exchange-traded funds (ETFs). The Funds subadviser will employ a proprietary quantitative and systematic global macro investment strategy that attempts to exploit perceived short-term mispricings in various issuers and assets. In this context, systematic refers to the automated implementation of portfolio position changes derived from quantitative models known as algorithms which have been developed by the subadviser and are frequently refined as part of the investment research process. The subadviser uses the algorithms to allocate exposure on a tactical basis between the various asset classes in which the Fund may invest. The subadvisers global macro investment strategy is a long/short, liquid and systematic multi-asset strategy using a global portfolio that is diversified across asset classes, investment styles and time frames.
The strategy focuses on general movements in the market rather than on performance of individual securities within each market. The Fund seeks risk adjusted returns focusing on both directional and relative value strategies. In pursuing these strategies, the subadviser uses proprietary models to determine long and short exposures on a tactical basis among the asset classes in which the Fund may invest. The models focus on various inputs, including asset prices, economic variables and technical indicators which are measured across different regions and geographical markets. The subadviser considers macroeconomic, value, carry, sentiment and intermarket factors to determine asset allocation while employing advanced risk management techniques (including stop loss rules applied to individual positions and the portfolio as a whole) to seek to limit drawdowns.
The subadviser shall be entitled in its absolute discretion to intervene as it deems appropriate in the quantitative strategies applied in the management of the Fund. This might not only affect the actual position held in an individual instrument, but is also likely to affect the allocation of capital to certain models or asset classes and could also lead to changes in overall exposure. Examples where such intervention might occur include, but are not limited to, where an event or market movement has occurred that the quantitative models were not designed to deal with, where ongoing research suggests that a change in the model parameters or weighting might be warranted, or for risk management reasons. The Fund is non-diversified for purposes of the Investment Company Act of 1940 (the 1940 Act), which means it may invest in a smaller number of issuers than a diversified fund.
PGAFX Holdings
Top 10 holdings of PGIM Wadhwani Systematic Absolute Return Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| (PIPA070) PGIM Core Government Money Market Fund | 73.32% |
| Eurex Clearing Aktiengesellschaft | 0.49% |
| Montreal Exchange Inc. | 0.25% |
| Australian Securities Exchange Trade24 | 0.20% |
| Rbc Dominion Securities Inc. | 0.17% |
| Chicago Mercantile Exchange Inc. | 0.14% |
| Eurex Clearing Aktiengesellschaft | 0.11% |
| Rbc Dominion Securities Inc. | 0.10% |
| Board Of Trade Of The City Of Chicago, Inc. | 0.10% |
| Board Of Trade Of The City Of Chicago, Inc. | 0.09% |
PGAFX Portfolio Allocation
Asset-class allocation of PGIM Wadhwani Systematic Absolute Return Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Cash & Equivalents | 73.3% |
| Real Estate | 0.8% |
PGAFX Performance
Total returns for PGAFX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -0.5% |
| 3 years (annualised) | 1.6% |
PGAFX Risk Information
Risk metrics for PGAFX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 5.3%
PGAFX Costs and Fees
PGAFX costs about $216 per $10,000 invested per year in fund expenses.
- Net expense ratio: 2.16%
- Gross expense ratio: 13.76%
- Portfolio turnover: 0%
- Brokerage commissions: 9.23 bps of average net assets (SEC N-CEN)
PGAFX Cashflows
Over the 12 months to 2024-07, PGIM Wadhwani Systematic Absolute Return Fund had net inflows of $3.33M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-07 | $3.01M |
| 2024-06 | −$627.09K |
| 2024-05 | −$4.08M |
| 2024-04 | $52.00K |
| 2024-03 | −$200.70K |
| 2024-02 | $4.76K |
PGAFX Debt Constituents
No individual debt constituents are reported in PGIM Wadhwani Systematic Absolute Return Fund's latest SEC N-PORT filing.
PGAFX Prospectus and SEC Filings
Official PGIM Wadhwani Systematic Absolute Return Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-02-23
- Prospectus (485BPOS) — filed 2022-02-15
- Prospectus supplement (497) — filed 2024-05-08
- Portfolio holdings (N-PORT) — filed 2024-09-27
- Portfolio holdings (N-PORT) — filed 2024-06-24
- Portfolio holdings (N-PORT) — filed 2024-03-26
- Annual census (N-CEN) — filed 2024-01-16
- Annual census (N-CEN) — filed 2023-01-17
Related Funds
Other Long-Short funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.