SDHY Profile
PGIM Short Duration High Yield Opportunities Fund (SDHY) is a closed-end fund that seeks to provide a high level of current income, consistent with the preservation of capital. The fund invests primarily in a diversified portfolio of high-yield corporate bonds with a duration of five years or less. It may also invest in other types of fixed income securities, such as bank loans, convertible bonds, and asset-backed securities. The fund is managed by PGIM Fixed Income, a subsidiary of Prudential Financial.
As of September 30, 2021, the fund had total net assets of approximately $2.3 billion and held a portfolio of 535 positions. The fund had an effective duration of 1.9 years and an average credit quality of BB-. The top three sectors represented in the portfolio were healthcare (14.7%), technology (12.1%), and energy (11.9%).
The fund has a distribution rate of 4.70% and pays a monthly distribution to shareholders. It has an expense ratio of 1.35%, which is higher than the average expense ratio for similar funds. The fund may use leverage to enhance returns, which increases the risk of loss.
Investing in high-yield bonds and other fixed income securities involves risks, including credit risk, interest rate risk, and default risk. High-yield bonds are subject to greater risk of default and are considered speculative. The use of leverage can magnify the impact of losses on the fund's net asset value. Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing.
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