Prudential Investments has launched the Prudential Jennison MLP Fund
(NASDAQ:PRPAX), which seeks total return through a combination of income
and long-term capital appreciation, offering investors the opportunity
to invest in master limited partnerships, the company announced today.
Prudential Investments is the mutual fund business of Prudential
Financial, Inc. (NYSE:PRU), offering a range of open- and closed-end
funds.
The Prudential Jennison MLP Fund is the second mutual fund launched in
2013 by Prudential Investments that is designed to give investors an
opportunity to participate in the expanding need for enhanced
infrastructure, this time with a focus on businesses that support
increased U.S. energy production. The new fund, which invests in MLPs,
follows the recent launch of the Prudential Jennison Global
Infrastructure Fund (NASDAQ:PGJAX).
“The MLP fund provides investors with the potential to benefit from
current income and long-term capital appreciation by capitalizing on the
rapid increase in energy production in the U.S., a trend that we expect
will continue based on current market conditions,” said Stuart Parker,
president of Prudential Investments.
The fund is subadvised by Jennison Associates’ Income and Infrastructure
team, led by portfolio managers Bobby Edemeka and Shaun Hong. The MLP
investment strategy is a natural extension for the investment team,
which currently manages equity income, utility, and global
infrastructure. The team, which includes three analysts, has used MLPs
in various investment strategies since 2006.
The fund management team currently expects to focus on midstream
companies that are engaged in the transportation, storage, processing,
refining, marketing, exploration and production of oil and gas or the
mining of minerals or other natural resources. The fund will typically
contain 30 to 50 holdings, focused in North America and will use the
Alerian MLP Index as a benchmark for performance.
“Historically, MLPs have demonstrated low correlation to broader markets
and low volatility compared to other sectors, offering investors
diversification within their portfolios,” said Hong. “A focus on MLPs
provides an opportunity for dividend yields that are higher than other
asset classes and could provide consistent income, given the long life
span of many infrastructure investments.”
Added Edemeka, “the fund also offers a potential hedge against inflation
because energy MLP contracts often allow prices to rise with inflation.”
The Fund is available in the following share classes: A: PRPAX, C:
PRPCX, Z: PRPZX.
Prudential Investments is the mutual fund business of Prudential
Financial, Inc., offering a range of open- and closed-end funds. Please
visit http://www.prudentialfunds.com
for more information.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with
more than $1 trillion of assets under management as of September 30,
2013, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees are committed to
helping individual and institutional customers grow and protect their
wealth through a variety of products and services, including life
insurance, annuities, retirement-related services, mutual funds and
investment management. In the U.S., Prudential’s iconic Rock symbol has
stood for strength, stability, expertise and innovation for more than a
century. For more information, please visit www.news.prudential.com.
Alerian MLP Index is a composite of the 50 most prominent energy
Master Limited Partnerships (MLPs).
Mutual fund investing involves risk. Some mutual funds have more risk
than others. The investment return and principal value will fluctuate,
and shares, when sold, may be worth more or less than the original cost,
and it is possible to lose money. There is no guarantee a Fund’s
objectives will be achieved. The Fund primarily invests in Master
Limited Partnerships (MLP) and MLP related investments, which are
subject to complicated and in some cases unsettled accounting, tax and
valuation issues as well as risks related to limited control and limited
rights to vote, potential conflict of interest, cash flow, dilution,
limited liquidity and risks related to the general partner’s right to
force sales at undesirable times or prices. Sector funds may not be
suitable for all investors. Such funds are nondiversified, so a loss
resulting from a particular security will have greater impact on the
Fund’s return. The risks associated with each fund are explained more
fully in each fund’s respective prospectus. Indices are unmanaged and an
investment cannot be made directly in an index. Diversification does not
guarantee a profit or protect against a loss in declining markets.
There’s no guarantee that dividends or distributions will be paid.
Consider a fund’s investment objectives, risks, charges, and expenses
carefully before investing. The prospectus and summary prospectus
contain this and other information about the fund. Read the prospectus
and summary prospectus carefully before investing.
Mutual funds are distributed by Prudential Investment Management
Services LLC. Jennison Associates is a registered investment advisor.
Both are Prudential Financial companies. Prudential Investments,
Prudential, Jennison Associates, Jennison, the Prudential logo, and the
Rock symbol are service marks of Prudential Financial, Inc., and its
related entities, registered in many jurisdictions worldwide.
Control Number: 0255471-00000-01
Copyright Business Wire 2013