Prudential Investments has begun offering three new fixed income funds: the Prudential Floating Rate Income Fund, the Prudential Absolute Return Bond Fund, and the Prudential Emerging Markets Debt Local Currency Fund.
Prudential Investments is the mutual fund family of Prudential Financial Inc. (NYSE: PRU).
“Today’s historically low interest rates have many investors concerned that if rates start rising, it could have a negative impact on their bond investments,” says Judy Rice (pictured), president of Prudential Investments. “Two of our new funds help protect against changing market conditions and may reduce interest rate risk, while the third fund focuses on helping investors take advantage of growing opportunities in developing markets.”
The Prudential Absolute Return Bond Fund (A: PADAX): seeks to generate positive returns over time regardless of market conditions by investing across a broad range of sectors and securities. Its flexible strategy uses a variety of investment techniques, which may include managing duration and credit quality, yield curve positioning, and currency exposure.
The Prudential Floating Rate Income Fund (A: FRFAX): invests primarily in floating rate loans and other floating rate debt securities. Floating rates loans have historically offered attractive yield and stability in times of rising interest rates.
The Prudential Emerging Markets Debt Local Currency Fund (A: EMDAX) invests primarily in currencies and fixed income securities denominated in the local currencies of emerging market countries. Many of these countries are growing faster, have less debt, and maintain lower national budget deficits than their counterparts in developed countries.
The portfolio managers for all three funds are part of Prudential Fixed Income, which has been managing fixed income portfolios since 1875 and is among the largest fixed income managers in the US with about USD270 billion in assets under management as of December 31, 2010. The principal managers for each fund average more than 20 years of industry experience.