PGIM High Yield R6 Fund Performance and Risk Analysis

The PGIM High Yield R6 Fund is designed to provide investors with a regular income stream through a diversified portfolio of high yield bonds. The fund has a long history of delivering consistent returns, with a track record of over 10 years.

The fund's investment approach is focused on generating income for investors, with a goal of providing a higher yield than more traditional fixed income investments. By investing in a mix of high yield bonds, the fund aims to spread risk and maximize returns.

The fund's portfolio is managed by a team of experienced professionals who have a deep understanding of the high yield bond market. They use a range of techniques to select the most attractive investments and manage the portfolio to minimize risk.

The fund's performance has been strong, with a return of over 7% per annum over the past 5 years. This has helped to make it an attractive option for investors looking for a regular income stream.

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The PGIM High Yield R6 fund has a rich history, and it's interesting to note that it was first introduced on October 31, 2011.

The fund's inception date is a significant milestone, marking the beginning of its journey in the investment world.

The fund's shares are denominated in US Dollars (USD) and are domiciled in the United States (US).

Here are the key details about the fund:

The PGIM High Yield R6 fund has a below-average expense ratio of 0.38%, which is 60% lower than its category average.

This translates to lower administrative and operating expenses, including adviser fees and transfer agent and custodial services. The fund's expense ratio grade is an A, making it a more cost-effective option.

In terms of returns, the fund has a portfolio turnover rate of 42%, which is lower than the average portfolio turnover of 53% for the High Yield Bond category. This suggests that the fund holds its assets for a longer period, potentially resulting in lower expenses and higher aftertax returns.

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Assets Under Management is an essential factor to consider when evaluating a fund's performance. The PGIM High Yield R6 fund has $9 billion in total assets, significantly higher than the $501 million average for the High Yield Bond category.

This large asset base is a double-edged sword - on one hand, it can lead to lower average expense ratios, but on the other hand, it may make it difficult for the manager to fully employ their desired active strategy.

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The performance chart is a great way to visualize how an investment has grown over time. It shows the growth of an initial investment of $10,000 in PGIM High Yield Fund Class R6, comparing it to the performance of the S&P 500 index.

One thing that stands out is the growth of the investment over the long term. In fact, the 10-year growth of the investment is a notable 5.0% annualized return.

Here's a breakdown of the performance chart's key points:

The growth of the investment over the long term is impressive, and it's worth noting that this growth is compared to the performance of the S&P 500 index.

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The performance of the fund can be measured over various periods, including the current year, since inception, and different time frames such as 1 year, 3 years, 5 years, and 10 years.

The fund's performance since inception is 100.69%, indicating a significant increase in value over time.

The fund's performance over the past year is 0.00%, suggesting a relatively flat performance during that period.

Here are the fund's returns by period:

The fund's high 1-year return is 14.39%, while its maximum loss over the same period is -1.33%.

The dividend payout for PGIM High Yield Fund Class R6 is a key factor to consider for investors. Over the last twelve months, the fund provided a 6.52% dividend yield.

The fund's dividend history shows a relatively consistent payout, with a total annual payout of $0.31 per share. This payout has been steady, with a slight increase in 2023 to $0.34 per share.

One way to visualize the dividend payout is to look at the monthly distributions. The table below shows the monthly dividend distributions for PGIM High Yield Fund Class R6.

The fund's dividend yield has varied over the years, ranging from 5.63% in 2021 to 7.11% in 2023.

The fees and charges associated with the PGIM High Yield R6 fund are relatively low compared to its category average. This is a significant advantage for investors, as high fees can eat into their returns over time.

The total expense ratio for the fund is 0.7235%, which is broken down into various components. Advisor fee expense accounts for 0.5320% of the total, making it the largest single expense.

Interest expense is another significant cost, accounting for 0.1559% of the total. This expense is likely related to the fund's investments in high-yield bonds.

In addition to these expenses, the fund also incurs custodian fee expense, auditor fee expense, shareholder reporting fee expense, and other miscellaneous fees.

Here is a breakdown of the fund's expenses:

The fund's low expense ratio is one of its key advantages, making it an attractive option for investors seeking to minimize their costs.

Risk and Volatility is a crucial aspect of investing in the PGIM High Yield Fund Class R6. The current volatility of 0.75% represents the average percentage change in the investment's value over the past month.

This level of volatility is relatively low, indicating a relatively stable investment. The rolling one-month volatility chart provides a visual representation of this stability.

The PGIM High Yield Fund Class R6 has demonstrated a consistent level of volatility, making it a reliable option for investors seeking stable returns.

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The PGIM High Yield Fund Class R6 has a current volatility of 0.75%, which represents the average percentage change in its value over the past month.

This means that the fund's value has fluctuated by 0.75% on average, either up or down, over the past 30 days.

Volatility can be a key factor in investment decisions, as it can indicate the level of risk associated with a particular fund.

The chart below shows the rolling one-month volatility of the PGIM High Yield Fund Class R6, providing a visual representation of the fund's historical volatility.

This chart can help investors understand the fund's past performance and make more informed decisions about their investments.

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Risk and volatility can be scary, but understanding them is key to making informed investment decisions.

The PGIM High Yield Fund Class R6 has experienced some significant drawdowns in the past, with the worst one being a 21.11% reduction in portfolio value.

This massive drop occurred on March 23, 2020, and took 114 trading sessions to recover.

The current drawdown is much smaller, at 1.44%.

Here's a table showing the worst drawdowns for the PGIM High Yield Fund Class R6:

These drawdowns show how the fund's value can fluctuate over time.

The PGIM High Yield R6 fund has received a grade of B for its year-to-date return of 8.8%, which is 0.7 percentage points better than the category average.

This fund has consistently delivered strong returns, with a grade of A for its 13.0% return over the past year, and a grade of A for its 5.3% annual return over the past 10 years.

However, its grade for the past three years is only a C, reflecting a 3.3% return that underperformed the category average.

The fund's risk is considered below average, with a standard deviation of 8.3% and a total risk index of 0.55.

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Here's a breakdown of the fund's grades over different time periods:

The fund's performance has been relatively consistent, with only one year (2022) showing a negative return of -11.5%.

The fund's expense ratio is 0.38%, which is considered low within its category, earning it an A grade.

PGIM High Yield R6 is an actively managed fund that launched in 2011. It's been around for over a decade, which is a testament to its stability and consistency.

The fund's primary objective is to maximize current income, with capital appreciation as a secondary goal. This means it's focused on generating regular income for investors, while also trying to grow the value of their investments over time.

The fund invests at least 80% of its assets in a diversified portfolio of high-yield fixed-income instruments, which are essentially junk bonds. These bonds are rated Ba or lower by Moody's or BB or lower by S&P, making them riskier but also potentially more rewarding.

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PGIM High Yield R6 has a management team with an average tenure of 9.42 years, which is a significant advantage for an actively managed fund. This level of experience and stability can help the fund make more informed investment decisions.

The fund has a single primary benchmark, the Bloomberg US HY 1% Issuer Cap TR USD index, which it tracks closely. This helps investors understand how the fund is performing relative to the broader market.

PGIM High Yield R6 has a relatively small top 10 holdings, which constitute just 10.7% of the fund's assets. This suggests a diversified portfolio with minimal concentration risk.

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