PFRL Profile
The PGIM Floating Rate Income ETF is designed to provide investors with income through investments in floating rate debt securities. Under normal market conditions, the fund allocates at least 80% of its investable assets comprising net assets and any borrowings for investment purposes toward floating rate loans and other floating rate debt instruments. This focus on floating rate securities is intended to provide income that adjusts with changes in interest rates, potentially reducing the impact of rate increases on the fund's returns.
The ETF’s investment strategy includes the potential to allocate up to 25% of its total assets in senior loans made to borrowers based outside the United States, as well as other foreign securities. This international exposure can encompass securities from emerging market countries and may be denominated in both U.S. dollars and non-U.S. currencies. By including foreign and emerging market securities, the fund aims to enhance diversification and capture opportunities in various global markets.
In managing its investments, the fund seeks to maintain a portfolio predominantly composed of floating rate debt, which is expected to benefit from rising interest rates due to its variable rate nature. The inclusion of senior loans and foreign securities reflects a strategy to enhance yield and diversification, while managing risk associated with global market exposures.
The PGIM Floating Rate Income ETF targets investors looking for income from floating rate investments, while also incorporating a degree of international exposure to potentially benefit from global economic conditions. The focus on floating rate loans and debt securities is designed to mitigate interest rate risk, aiming to deliver stable income streams despite fluctuations in interest rates.
|
