Prudential Investments has launched 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.
“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,” said Judy Rice, president of Prudential Investments. “Two of our new funds help protect against changing market conditions and may reduce interest rate risk, while the third focuses on helping investors take advantage of growing opportunities in developing markets.”
The floating rate fund invests primarily in floating rate loans and other floating rate debt securities, which have historically offered attractive yield and stability in times of rising interest rates.
The absolute return fund seeks to generate positive returns over time regardless of market conditions by investing across a broad range of sectors and securities. It uses a variety of investing techniques, including managing duation and credit quality, yield curve positioning and currency exposure.
The emerging markets fund 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.