Key Takeaways
- • PGIM Wadhwani's Keynes Systematic Absolute Return Fund ranked first year-to-date out of 880 funds in The Investment Association's 'Flexible Investment' category and third over one year out of 847 funds, demonstrating outperformance during 2022 market volatility.
- • The Fund targets LIBOR plus 5% returns with a 7% volatility cap, employing a systematic global macro strategy that takes long and short positions across stocks, bonds, and currencies to deliver uncorrelated returns to traditional asset classes.
- • Dr. Sushil Wadhwani, Chief Investment Officer with 30+ years of experience and former Bank of England Monetary Policy Committee member, leads approximately two dozen investment professionals executing the strategy.
- • The liquid alternatives strategy is designed to benefit from market uncertainty through systematic positioning, offering institutional investors portfolio diversification and downside protection during periods of elevated volatility and macroeconomic instability.
- • The Fund has maintained a seven-year track record of achieving its targeted information ratio, demonstrating consistency in generating risk-adjusted returns independent of equity and bond market performance.
Summary
PGIM Wadhwani has positioned its Keynes Systematic Absolute Return Fund as a differentiated vehicle for institutional investors seeking diversification beyond traditional long-only equity and bond allocations. According to Michael Dicks, Chief Economist and Deputy Head of Research at PGIM Wadhwani, the Fund employs a systematic global macro strategy designed to deliver returns uncorrelated to traditional capital markets by taking both long and short positions across stocks, bonds, and currencies. This approach enables the strategy to monetize market dislocations and policy divergences that characterize volatile market environments.
The Fund's performance metrics underscore its resilience during 2022's market turmoil. It achieved first-place ranking year-to-date among 880 funds in The Investment Association's 'Flexible Investment' category and placed third over a one-year period out of 847 funds. These results support the Fund's stated objective of delivering LIBOR plus 5% returns while maintaining a 7% volatility target—a meaningful achievement given the simultaneous compression of risk assets and currency volatility witnessed during the period.
Leadership of the strategy reflects deep expertise in macroeconomic analysis and policy dynamics. Dr. Sushil Wadhwani, Chief Investment Officer, brings more than 30 years of investment experience and served on the Bank of England's Monetary Policy Committee before founding the London-based multi-asset macro specialist. A team of approximately two dozen investment professionals executes the systematic framework, balancing quantitative signal generation with macro overlay discretion.
The Fund's positioning emphasizes that uncertainty—rather than stability—creates favorable conditions for systematic global macro strategies. By maintaining flexibility to adjust exposures across geographies, asset classes, and policy regimes, the strategy captures alpha from macroeconomic transitions. This approach addresses a key institutional investor need: achieving positive absolute returns and capital preservation during periods when traditional diversification (60/40 equity-bond portfolios) proves insufficient. The seven-year track record of achieving targeted information ratios suggests the systematic framework has delivered consistent risk-adjusted performance across varying market cycles.
The Fund's performance metrics underscore its resilience during 2022's market turmoil. It achieved first-place ranking year-to-date among 880 funds in The Investment Association's 'Flexible Investment' category and placed third over a one-year period out of 847 funds. These results support the Fund's stated objective of delivering LIBOR plus 5% returns while maintaining a 7% volatility target—a meaningful achievement given the simultaneous compression of risk assets and currency volatility witnessed during the period.
Leadership of the strategy reflects deep expertise in macroeconomic analysis and policy dynamics. Dr. Sushil Wadhwani, Chief Investment Officer, brings more than 30 years of investment experience and served on the Bank of England's Monetary Policy Committee before founding the London-based multi-asset macro specialist. A team of approximately two dozen investment professionals executes the systematic framework, balancing quantitative signal generation with macro overlay discretion.
The Fund's positioning emphasizes that uncertainty—rather than stability—creates favorable conditions for systematic global macro strategies. By maintaining flexibility to adjust exposures across geographies, asset classes, and policy regimes, the strategy captures alpha from macroeconomic transitions. This approach addresses a key institutional investor need: achieving positive absolute returns and capital preservation during periods when traditional diversification (60/40 equity-bond portfolios) proves insufficient. The seven-year track record of achieving targeted information ratios suggests the systematic framework has delivered consistent risk-adjusted performance across varying market cycles.
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