Prudential Investments has launched the Prudential Short Duration Muni
High Income Fund (NASDAQ:PDSAX), a fund with the potential to provide
investors protection in a rising interest rate environment, while
seeking higher yield and tax-exempt income. Prudential Investments is
the mutual fund business of Prudential Financial, Inc. (NYSE:PRU).
The fund will seek high current income that is exempt from federal
income taxes by investing in a diversified blend of shorter duration
municipal bonds, while maintaining a weighted average portfolio duration
of 4.5 years or less. The fund will use a customized benchmark which is
a 50/50 blend of the Barclays Municipal Bond Index 1-8 Year and the
Barclays Municipal High Yield Index 1-8 Year.
“This fund will address the growing investor demand for fixed income
strategies that may perform well in a rising rate environment,” said
Stuart Parker, president of Prudential Investments. “It may also provide
an advantage for investors seeking relief from rising taxes.”
The fund will be managed by Prudential Fixed Income’s Municipal Bond
Team using collaborative fundamental, bottom-up, research-based
subsector and security selection. The team, which includes Susan
Courtney, Robert Tipp, Lee Friedman, and John Dittemer, averages 20
years of investment experience, and also manages the Prudential Muni
High Income Fund, Prudential National Muni Fund, Inc., and Prudential
California Muni Income Fund.
“We’re striving to provide the potential for higher yield and income
with tax benefits while interest rates are at or near record low
levels,” said Susan Courtney, managing director and head of Prudential
Fixed Income’s municipal team.
The fund is available in the following share classes: A: PDSAX, C: PDSCX
and Z: PDSZX.
Prudential Investments offers 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, 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 http://www.news.prudential.com/
The Barclays Municipal Bond Index 1-8 Year Index is a
capitalization-weighted bond index intended to be representative of
major municipal bonds of all quality ratings with maturities of one to
eight years.
The Barclays Municipal High Yield Index 1-8 Year is an unmanaged
index consisting of noninvestment grade, unrated or below Ba1 bonds with
maturities of one to eight years.
Duration measures the approximate price volatility of a bond or
bond portfolio for a small change in interest rates.
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. Fixed income investments are subject
to credit, market, and interest rate risk, and their value
will decline as interest rates rise. The fund will invest in high
yield (“junk”) bonds, which are subject to greater credit and market
risks. The fund is subject to fixed income obligations and municipal
bonds risk, where the fund's holdings, share price, yield, and total
return may fluctuate in response to bond market movements and municipal
bond market movements. The risks associated with each fund are explained
more fully in the fund’s prospectus. Diversification does not
assure a profit or protect against loss in declining markets.
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. Contact your
financial professional for a prospectus and summary prospectus. Read
them carefully before investing.
Class Z shares are available to institutional investors through certain
retirement, mutual fund wrap and asset allocation programs, and to
institutions at an investment minimum of $5,000,000. Performance by
share class may vary. Other share classes, which contain either a sales
load or a contingent deferred sales charge, are also available. These
expenses could lower total fund return. Please see the prospectus for
additional information about fees, expenses and investor eligibility
requirements.
Mutual funds are distributed by Prudential Investment Management
Services LLC (PIMS), member SIPC. Prudential Fixed Income is a unit of
Prudential Investment Management, Inc. (PIM), a registered investment
adviser. PIMS and PIM are Prudential Financial companies. © 2014
Prudential Financial, Inc. and its related entities. Prudential
Investments LLC, Prudential, the Prudential logo, the Rock symbol and
Bring Your Challenges are service marks of Prudential Financial, Inc.
and its related entities, registered in many jurisdictions worldwide.
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Copyright Business Wire 2014