The Fund is a newly organized closed-end fund that seeks to provide investors with a high level of current income. It invests in a portfolio consisting primarily of higher-rated, below investment-grade fixed income instruments.1 It seeks to maintain a weighted average portfolio duration of three years or less and an average maturity of five years or less. There is no guarantee the Fund’s objective will be achieved.
“We’re excited to currently offer the only closed-end fund that focuses on the sub-style of higher-rated, short duration high yield bonds,” said
The Fund’s portfolio managers are part of Prudential Fixed Income, a credit-research-driven fixed income manager with a sharp focus on managing risk. Prudential Fixed Income and its predecessors have been managing fixed income portfolios since 1875 and is among the largest fixed income managers in the U.S., with about
The underwriting syndicate was led by Morgan Stanley & Co. LLC,
Prudential Investments, the mutual fund and wealth management business of
The Fund is a newly organized registered closed-end management company with no operating history. Shares of closed-end investment companies, such as the Fund, usually trade on a national stock exchange, and these shares frequently trade at a discount to their net asset value, which may increase investors’ risk of loss.
An investment in the Fund’s shares of common stock may be speculative in that involves a high degree of risk and should not constitute a complete investment program. Please carefully review the section entitled “Risk Factors” in the Fund’s prospectus.
Investing in this diversified Fund involves certain risks and the Fund may not achieve its intended results for a variety of reasons, including, among others, the possibility that the Fund may not successfully implement its investment strategy, because of market, economic, regulatory, geopolitical and other conditions. U.S. and foreign governments have taken a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that have experienced extreme volatility, and in some cases a lack of liquidity. The impact of these measures, as well as any additional future regulatory actions, is not yet known and cannot be predicted. Legislation or regulation may also change the way in which the Fund is regulated and could limit or preclude the Fund’s ability to achieve its investment objective. Because the market price of the Fund’s Common Stock will fluctuate, there is a risk that investors will lose money. Investments will decline in value if, among other things, the market price of the Fund’s Common Stock decreases. As with any security, a complete loss of an investment is possible. The Fund may seek to enhance the level of its current distributions to holders of Common Stock through the use of leverage, which may magnify losses and increase a portfolio’s expenses. Fixed income investments are subject to interest rate risk, where their value will decline as interest rates rise.
Prudential Fixed Income is a business unit of
1 Higher-rated high yield bonds are below investment grade, commonly referred to as “junk bonds,” and are considered speculative. Rated Ba, B by Moody’s
Control Number: 0223623-00001-00
|Copyright:||Copyright Business Wire 2012|
|Source:||Business Wire, Inc.|