PGIM Short Duration High Yield Income Fund Class A (HYSAX)

Overview

Under normal market conditions, the fund invests at least 80% of its investable assets in a diversified portfolio of high yield fixed income instruments that are graded below investment grade, encompassing a range of maturities. Additionally, the fund diversifies its investments by including derivatives and other financial instruments that share similar economic characteristics with high yield fixed income instruments. This strategy aims to generate higher returns compared to investment-grade bond funds, though it comes with a higher risk due to the lower credit quality of the assets in which it invests.

Products and Services

• Diversified High Yield Fixed Income Instruments

  The core of the fund's portfolio is its investment in a variety of high yield fixed income instruments. These are typically bonds issued by corporations with lower credit ratings, indicating a higher risk of default compared to more highly rated, investment-grade bonds. Due to this increased risk, these instruments generally offer higher yields, aiming to provide investors with better returns in exchange for the increased risk they bear.

• Derivatives and Similar Economic Instruments

  In addition to high yield fixed income instruments, the fund invests in derivatives and other financial instruments that have similar economic characteristics. Derivatives might include options, futures, and swap contracts that are used to hedge risks or to take speculative positions on various financial outcomes. Other financial instruments might include structured notes or synthetic securities that replicate the performance of high yield bonds or indices. These investments allow the fund to achieve a broader diversification and potentially enhance returns while managing risk.