Download prudential short duration high yield income fund

PGIM INVESTMENTS | Bringing you the investment managers of Prudential Financial, Inc.
PRUDENTIAL SHORT DURATION HIGH YIELD INCOME FUND
JUNE 30, 2017
Class Q and Z
Morningstar Overall Rating™ out of 590 High
Yield Bond funds, as of 6/30/2017.
Morningstar measures risk-adjusted returns. The
overall rating is a weighted average based on
the Fund's 3-, 5-, and 10-year star rating.‡
To provide a high level of current
income by investing primarily in
higher-rated, below investmentgrade fixed income instruments.1
The Fund seeks to maintain a
weighted average portfolio duration
of three years or less and a weighted
average maturity of five years or less.
STYLE
High Yield Bond
FUND FACTS
Class
Ticker
CUSIP
Assets ($mil)
A......................................................................................
HYSAX
74442J109
365
C......................................................................................
HYSCX
74442J208
377
Q......................................................................................
HYSQX
74442J406
61
Z
HYSZX
74442J307
1,570
......................................................................................
Total Net Assets
2,373
FUND STATISTICS
Average
Maturity (years)
3.9
......................................................................................
Duration (years)
2.2
......................................................................................
Standard Deviation (3-year)
2.74
PORTFOLIO MANAGEMENT
Subadvisor: PGIM Fixed Income
Managing assets since 1875
• 17 Portfolio Managers
• 30 Credit Research Analysts
FUND PORTFOLIO MANAGERS
Robert Cignarella, CFA
Terence Wheat, CFA
Robert Spano, CFA
Ryan Kelly, CFA
Brian Clapp, CFA
Daniel Thorogood, CFA
FUND PORTFOLIO ADVISORS
Brian LoDestro, CFA
Clark Biggers, CFA
Michael Tagliaferro, CFA
Scott Sweitzer
pgiminvestments.com (800) 225-1852
LARGEST ISSUERS (% OF ASSETS)
1
2
3
4
5
6
7
8
9
10
CREDIT QUALITY (% OF ASSETS)
Altice USA
Freeport-McMoRan
Tenet Healthcare
NRG Energy
Softbank Group
Dell
Lennar
Dynegy
Univision Communications
Hamlet Holdings
3.3%
2.4%
2.4%
1.9%
1.7%
1.7%
1.6%
1.6%
1.5%
1.5%
Top Ten of 209
1
2
3
4
5
6
7
8
9
10
6.2% BBB
45.9% BB
43.1% B
4.5% CCC
0.1% D
0.7% Not Rated
-0.5% Cash/Equiv
19.6%
GEOGRAPHIC CONCENTRATION (% OF ASSETS)
LARGEST INDUSTRIES (% OF ASSETS)
Health Care & Pharmaceuticals
Technology
Building Materials & Construction
Metals
Telecom
Cable
Gaming
Media & Entertainment
Foods
Packaging
10.2%
9.5%
8.8%
8.6%
7.3%
7.2%
7.1%
5.5%
4.4%
4.3%
82.2% United States
6.2% Canada
1.9% Australia
1.8% Luxembourg
1.4% Brazil
1.4% Italy
1.1% France
1.0% Netherlands
0.9% Ireland
2.5% Other
-0.5% Cash/Equiv
1
Higher-rated high yield fixed income instruments are rated below investment grade, commonly referred to as "junk bonds," and
are considered speculative. Such fixed income instruments are rated Ba or B by Moody's Investors Service, Inc. (Moody's); BB or B
by Standard & Poor's Ratings Services (S&P) or Fitch Ratings, Inc. (Fitch); or comparably rated by another nationally recognized
statistical rating organization, or if unrated, are considered of comparable quality by the subadviser at the time of purchase.
GROWTH OF $10,000 (CLASS Z)
20
DOLLAR (THOUSANDS)
★★★★
$10,000
15
$12,105
10
5
0
Year 10/12
6/13
6/14
6/15
6/16
6/17
CALENDAR YEAR PERFORMANCE (CYP) REPRESENTS A FULL YEAR'S PERFORMANCE (%) (CLASS Z)
YEAR
2013
2014
2015
2016
Fund
5.21
1.43
1.27
7.74
................................................................................................................................................................................................................
Bloomberg Barclays BB/B 1-5yr 1% Constrained High Yield Index
7.20
1.73
–3.14
11.90
Benchmark†
Past performance does not guarantee future results. Graph and CYP do not include the effects of sales charges and reflect reinvestment
of all distributions. If sales charges were included, returns would have been lower. Holdings/allocations may vary. Total number of
holdings based on issuers. Largest holdings excludes cash, cash equivalents, money market funds and enhanced cash strategies.
Totals may not sum due to rounding. Negative holdings may reflect outstanding trades at period end and/or the use of certain financial
instruments including derivatives. This is not a recommendation to buy or sell any security listed.
High yield (“junk”) bonds have greater credit and market risks; liquidity risk, when particular investments may be difficult to sell;
foreign securities have risks of currency fluctuation and political uncertainty; and derivatives have market, credit, and liquidity risks.
Fixed income investments are subject to credit, market, and interest rate risks, and their value will decline as interest rates rise.
Diversification does not assure a profit or protect against loss in declining markets. As an actively managed fund, the Fund is also
subject to management risk and certain investment techniques may not produce the desired results. The risks are more fully explained
in the prospectus and summary prospectus. These risks may result in greater share price volatility. There is no guarantee the Fund’s
objective will be achieved.
AVERAGE ANNUAL TOTAL RETURNS (%) AS OF 6/30/2017
Total Returns (Without Sales Charges)
Share Class
YTD
1-year
YIELDS (6/30/2017)
3-year
SI
Inception Date
Class A
3.02
6.23
3.41
3.90
10/26/2012
...............................................................................................................................................................................................................
Class
C
2.75
5.43
2.64
3.12
10/26/2012
...............................................................................................................................................................................................................
Class Q
3.18
6.45
—
4.36
10/27/2014
...............................................................................................................................................................................................................
Class Z
3.15
6.37
3.67
4.17
10/26/2012
SEC Standardized Returns (With Sales Charges)
Class A
—
2.77
2.28
3.17
10/26/2012
...............................................................................................................................................................................................................
Class C
—
4.43
2.64
3.12
10/26/2012
...............................................................................................................................................................................................................
Class
Q
—
6.45
—
4.36
10/27/2014
...............................................................................................................................................................................................................
Class Z
—
6.37
Bloomberg Barclays BB/B 1-5yr 1% Constrained High Yield Index
Benchmark†
3.32
8.65
3.67
4.17
10/26/2012
3.34
4.76
10/31/2012
Pastperformancedoesnotguaranteefutureresults,andcurrentperformancemaybelowerorhigherthanthepastperformance
dataquoted.Theinvestmentreturnandprincipalvaluewillfluctuate,andshares,whensold,maybeworthmoreorlessthanthe
originalcost.Forthemostrecentmonth-endperformance,visitourwebsiteatpgiminvestments.com.Maximumsalescharges:
ClassA,3.25%;ClassC,1.0%.Grossoperatingexpenses:ClassA,1.08%;ClassC,1.83%;ClassQ,0.74%;ClassZ,0.83%.Net
operatingexpensesapplyto:ClassA,1.00%;ClassC,1.75%;ClassQ,0.70%;ClassZ,0.75%,aftercontractualreductionthrough
12/31/2018.
Share
Class
SEC 30-Day
SEC 30-Day
Subsidized
Unsubsidized
Yield (%)
Yields (%)
Class A
3.42
3.32
.....................................................................................
Class C
2.78
2.68
.....................................................................................
Class
Q
3.83
3.80
.....................................................................................
Class Z
3.79
3.68
For additional yields and dividends, visit our website at
pgiminvestments.com. Yields change monthly.
"Prudential Short Duration High Yield
Income boasts a large and experienced
staff and a thorough and well-conceived
process, and there is reason to expect
good things given the record of the firm's
conventional high-yield fund."
Analyst Review, Morningstar, Inc., 4/26/2017
The views expressed in this fact sheet are for
the period indicated and are subject to change
thereafter.
Source:Benchmarksandstatistics,LipperInc.AllotherdatafromPGIM,Inc.(PGIM).Totalreturndescribesthereturntotheinvestor
afternetoperatingexpensesbutbeforeanysaleschargesareimposed.SECstandardizedreturndescribesthereturntotheinvestor
afternetoperatingexpensesandmaximumsaleschargesareimposed.Allreturnsassumesharepricechangesaswellasthecompounding
effectofreinvesteddividendsandcapitalgains.Returnsmayreflectfeewaiversand/orexpensereimbursements.Withoutsuch,returns
wouldbelower.Allreturns1-yearorlessarecumulative.ClassQandZsharesmaybeavailabletogroupretirementplansandinstitutional
investorsthroughcertainretirement,mutualfundwrapandassetallocationprogramsandtoinstitutionsataninvestmentminimum
of$5,000,000.Alldataisunauditedandsubjecttochange.
†
BloombergBarclaysBB/B1-5yr1%ConstrainedHighYieldisanunmanagedindexthatcoverstheuniverseoffixedrate,non-investment
gradedebt. Issuersarecappedat1%oftheIndex. Indexholdingsmusthaveatleastoneyeartofinalmaturity,atleast$150million
paramountoutstanding,andbepubliclyissuedwitharatingofBa1orlowerandmaturitiesfromonetofiveyears.Aninvestment
cannotbemadedirectlyinanindex.
Enhancedcashstrategiesarevariationsontraditionalmoneymarketvehicles.Theyaredesignedtoprovideliquidityandprincipal
preservation,butwithmoreofanemphasisonseekingreturnsthataresuperiortothoseoftraditionalmoneymarketofferings.Credit
qualityiscalculatedusingthehighestratingassignedbyanationallyrecognizedstatisticalratingorganization(NRSRO)suchas
Moody's,S&P,orFitch.TheNotRatedcategoryconsistsofsecuritiesthathavenotbeenratedbyanNRSRO.AverageMaturityisthe
averagetimetomaturityforabond.Durationmeasuresinvestmentriskthattakesintoaccountbothabond'sinterestpaymentsand
itsvaluetomaturity.Standarddeviationdepictshowwidelyreturnsvaryarounditsaverageandisusedtounderstandtherangeof
returnsmostlikelyforagivenfund.Ahigherstandarddeviationgenerallyimpliesgreatervolatility.Duetodataavailability,statistics
maynotbeasofthecurrentreportingperiod.
‡
Source:Morningstar.TheMorningstarRatingmaynotbecalculatedbasedonitsshareclassadjustedhistoricalreturns.Ifso,this
investment’sindependentMorningstarRatingmetricusesthefund'soldestshareclasstodetermineitshypotheticalratingforcertain
timeperiods.TheFund'sOverallBOE3-yearStarRatings/FundsinCategoryareasfollows:ClassA-3/590,and3/590;ClassC-
3/590,and3/590;ClassQ-4/590,and4/590;ClassZ-4/590,and4/590,respectively.
TheMorningstarRatingforfunds,or"starrating",iscalculatedformanagedproducts(includingmutualfunds,variableannuityand
variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded
fundsandopen-endedmutualfundsareconsideredasinglepopulationforcomparativepurposes.ItiscalculatedbasedonaMorningstar
Risk-AdjustedReturnmeasurethataccountsforvariationinamanagedproduct'smonthlyexcessperformance,placingmoreemphasis
ondownwardvariationsandrewardingconsistentperformance.Thetop10%ofproductsineachproductcategoryreceive5stars,
thenext22.5%receive4stars,thenext35%receive3stars,thenext22.5%receive2stars,andthebottom10%receive1star.The
OverallMorningstarRatingforamanagedproductisderivedfromaweightedaverageoftheperformancefiguresassociatedwithits
three-,five-,and10-year(ifapplicable)MorningstarRatingmetrics.Theweightsare:100%three-yearratingfor36-59monthsof
totalreturns,60%five-yearrating/40%three-yearratingfor60-119monthsoftotalreturns,and50%10-yearrating/30%five-year
rating/20%three-yearratingfor120ormoremonthsoftotalreturns.Whilethe10-yearoverallstarratingformulaseemstogivethe
mostweighttothe10-yearperiod,themostrecentthree-yearperiodactuallyhasthegreatestimpactbecauseitisincludedinall
threeratingperiods.
©2017Morningstar,Inc.Allrightsreserved.Theinformationcontainedherein(1)isproprietarytoMorningstarand/oritscontent
providers;(2)maynotbecopiedordistributed;and(3)isnotwarrantedtobeaccurate,complete,ortimely.NeitherMorningstarnor
itscontentprovidersareresponsibleforanydamagesorlossesarisingfromanyuseofthisinformation.Pastperformancedoesnot
guaranteefutureresults.
MutualfundsaredistributedbyPrudentialInvestmentManagementServicesLLC(PIMS)andmemberSIPC.PGIMFixedIncomeisa
unitofPGIM,aregisteredinvestmentadvisor.PIMSandPGIMarePrudentialFinancialcompanies.©2017PrudentialFinancial,Inc.
anditsrelatedentities.ThePrudentiallogoandtheRocksymbolareservicemarksofPrudentialFinancial,Inc.anditsrelatedentities,
registeredinmanyjurisdictionsworldwide.
Thesematerialsareforinformationaloreducationalpurposesonly.Theinformationisnotintendedasinvestmentadviceandisnot
arecommendationaboutmanagingorinvestingassets.InprovidingthesematerialsPGIMInvestmentsisnotactingasyourfiduciary
asdefinedbytheDepartmentofLabor.
MutualfundsarenotinsuredbytheFDICoranyfederalgovernmentagency,maylosevalue,andarenotadepositoforguaranteed
byanybankoranybankaffiliate.
MF1149 0234239-00031-00 Expiration:10/31/2017
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.
Get daily performance on your mobile
device at pgiminvestments.com