Wednesday, March 23, 2011
Pru Launches a Pair of Real Estate Funds
Reported by Hung Tran
has added two new mutual funds to its real estate offerings, the Prudential U.S. Real Estate Fund
and the Prudential International Real Estate Fund
to its portfolio.
The Prudential U.S. Real Estate Fund focuses on opportunities in the U.S. while the Prudential International Real Estate Fund seeks exposure to developed and emerging markets. The funds are managed by: Marc Halle
, a managing director at Prudential Real Estate Investors; Rick Romano
, a principal who joined PREI in 1998 and is responsible for U.S. real estate securities; and Gek Lang Lee
, a Singapore-based principal at PREI, with more than 20 years of experience managing real estate securities.
The real estate funds provide the potential for investors to hedge against inflation, according to Judy Rice
, president of Prudential Investments.
Prudential Investments expands real estate fund offerings
Funds provide new options to invest in real estate securities
NEWARK, N.J.--(BUSINESS WIRE)--Prudential Investments has added two new mutual funds to its real estate offerings. The Prudential U.S. Real Estate Fund (A: PJEAX) and the Prudential International Real Estate Fund (A: PUEAX) give investors the opportunity to focus on specific markets, and complement the existing Prudential Global Real Estate Fund. Prudential Investments is the mutual fund family of Prudential Financial, Inc. (NYSE: PRU).
“Our real estate funds provide the potential for investors to hedge against inflation”
.“Our real estate funds provide the potential for investors to hedge against inflation,” said Judy Rice, president of Prudential Investments. “These funds offer the potential to lower overall risk, while providing an opportunity for solid performance.”
While clients may invest in the two new real estate funds individually, both also provide exposure to real estate as part of the recently launched Prudential Real Assets Fund (A:PUDAX). The Prudential U.S. Real Estate Fund focuses on opportunities in the United States, while the Prudential International Real Estate Fund seeks to provide investors with exposure to real estate outside of North America in developed and emerging markets.
The funds are managed by the real estate securities team at Prudential Real Estate Investors, otherwise known as PREI®,comprising:
•Marc Halle, a managing director at PREI, who oversees the global securities team in the U.S., Europe and Asia. He was recently recognized as one of the best mutual fund managers by SmartMoney Magazine and The Wall Street Journal.
•Rick Romano, a principal who joined PREI in 1998 and is responsible for U.S. real estate securities.
•Gek Lang Lee, a Singapore-based principal at PREI, with more than 20 years of experience managing real estate securities.
“Public real estate securities have gained acceptance around the world as an efficient means to provide investors access to large, high quality portfolios of real estate,” said Halle. “At the same time, real estate securities can provide current income, liquidity and historically compelling risk-adjusted returns.”
PREI, a business of Prudential, is a leader in the global real estate investment management and advisory industry, with 18 offices in 13 countries and deep expertise in private and public real estate markets.
Prudential Investments offers mutual funds across a range of asset classes and sectors, including equity, fixed income, real estate and specialty securities. Please visit http://www.prudentialfunds.com for more information.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $784 billion of assets under management as of December 31, 2010, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/
Real estate poses certain risks related to overall and specific economic conditions, as well as risks related to individual property, credit, and interest rate fluctuations. The Prudential International Real Estate Fund will normally invest at least 80% of its investable assets in equity-related securities of real estate companies, principally real estate investment trusts (REITS) and other real estate securities. The Fund will invest primarily in non- U.S. issuers located in various countries outside the U.S., including non-U.S. issuers located in emerging markets. The Prudential U.S. Real Estate Fund will normally invest at least 80% of its investable assets in equity-related securities of real estate companies operating in the United States, principally REITs and other real estate securities. Real estate companies and REITS may be leveraged, which increases risk. REIT performance depends on the strength of the real estate markets, REIT management, and property management, which can be affected by many factors, including national and regional economic conditions. Each Fund’s investments in REITS may subject the Fund to duplicate management and/ or advisory fees. The Funds may invest in foreign securities, including securities of foreign real estate companies, which are subject to currency fluctuation and political uncertainty. Investments in emerging markets securities are subject to greater volatility and price declines. The Funds may be exposed to derivative securities, which may carry market, credit, counterparty, leverage, and liquidity risks. Each Fund’s holdings, share price, yield, and total return may fluctuate in response to bond market movements. Investing in the real estate sector makes each Fund nondiversified, so a loss resulting from a particular security or sector will have a greater impact on the Fund’s return. These risks may result in greater share price volatility. There is no guarantee either Fund’s objective will be achieved. Asset allocation and diversification do not assure a profit or protect against loss in declining markets.
The risks associated with each Fund are more fully explained in its prospectus.
The Prudential Real Assets Fund is exposed to the same types of risks as the underlying funds, securities, and financial instruments in which it invests. These risks include: during periods of deflation or no inflation, the Fund may underperform broad market measures and lose value; non-U.S. issuer securities, including emerging markets, may not be as stable as those in the U.S.; non-U.S. issuer securities may also be less liquid than U.S. stocks and bonds, and investments in emerging market securities are subject to greater volatility and price declines; real estate poses risks related to overall and specific economic conditions as well as risks related to investing in equity-related securities of real estate companies, principally real estate investment trusts, operating in the U.S., outside the U.S., and in emerging markets, and credit and interest rate fluctuations; commodities may be speculative and more volatile than investments in more traditional equity and debt securities; commodity-linked notes may be subject to counterparty risk, volatility risk, and leverage; the Fund may invest in a wholly owned Cayman Subsidiary, and changes in the laws of the Cayman Islands could result in the inability of the Fund to effect its desired commodity investment strategy; derivative securities may carry market, credit, counterparty, leverage, and liquidity risks; Treasury inflation-protected securities are inflation-index bonds that may experience greater losses than other fixed income securities with similar durations; fixed income investments are subject to interest rate risk, credit risk, and illiquidity risk; the guarantee of U.S. government securities applies only to the investments in the Fund’s portfolio and not to the value of the Fund’s shares; the Fund’s manager also serves as the manager of the underlying funds, and a conflict of interest could affect how the manager and subadvisers fulfill their fiduciary duties to the Fund and the underlying funds; short sales, which involve costs and risk of potentially unlimited losses, and leveraging, which may magnify losses; and nondiversified, which means the Fund may invest in a smaller number of issues than a diversified fund, and this increases its vulnerability to any single economic, political, or regulatory developments, which will have a greater impact on the Fund’s return. These risks may result in greater share price volatility.
Consider a Fund's investment objectives, risks, charges, and expenses carefully before investing. The prospectus and, if available, the summary prospectus, contains this and other information about the Fund. Contact your financial professional for a prospectus and, if available, the summary prospectus. Read it carefully before investing.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. PREI®, also known as Prudential Real Estate Investors, is a unit of Prudential Investment Management, Inc, a registered investment advisor. All are Prudential Financial companies. Prudential Investments, Prudential,, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide, a Prudential Financial company.
Darrell Oliver, 973-802-9627
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