Michael Collins, Robert Tipp, Richard Piccirillo and Gregory Peters — Prudential Total Return Bond
The Prudential Total Return Bond gained 6.6 percent in 2017.
"In fixed income it's really about not losing money. Avoiding the downside in bonds, avoiding the downside in sectors really leads to that consistent performance over the long term," the fund's co-manager, Michael Collins, told "Power Lunch."
He said the team thinks there aren't enough rate hikes priced into the fixed-income market and therefore he likes the long end of the yield curve, or longer duration bonds.
The team also plans to continue to aggressively rotate the portfolio.
"What we're doing is reducing exposure to more cyclical industrial corporate credit risk around the globe — high yield bonds, bank loans, investment-grade corporate bonds," said Collins.
"We're rotating into very high-quality, mostly senior positions — triple-A rated positions — in structured products, in commercial mortgage-backed securities, collateralized loan obligations, etc."