NEWARK, N.J.--(BUSINESS WIRE)--Prudential Investments has launched the Prudential Select Real Estate Fund (NASDAQ:SREAX), a fund that offers investors the potential to generate capital appreciation and income by investing primarily in publicly traded equity securities of real estate companies. Prudential Investments is the mutual fund business of Prudential Financial, Inc. (NYSE:PRU).
The Fund invests in a concentrated portfolio of real estate securities in which the portfolio managers have a high level of conviction. Prudential Investments believes that this approach potentially leads to higher alpha opportunities over a full market cycle than traditional real estate mutual funds. At least 80% of the Fund’s investable assets are invested in equity and equity-related securities of real estate companies (real estate investment trusts or REITs). The Fund is subadvised by Prudential Real Estate Investors, also known as PREI®, which has $55.8 billion of assets under management as of March 31, 2014. PREI also subadvises the Prudential Global Real Estate Fund, the Prudential U.S. Real Estate Fund and the Prudential International Real Estate Fund.
“PREI has successfully managed our Morningstar 5-star rated Prudential Global Real Estate Fund since 2007 and it has grown to be one of the largest real estate mutual funds at $3.5 billion in assets1,” said Stuart Parker, President of Prudential Investments. “With this new offering, investors can now invest in a concentrated portfolio that is comprised of what PREI believes are prime opportunities for capital appreciation within real estate securities markets around the world.”
The portfolio management team, led by Marc Halle, Managing Director at PREI, averages over 23 years of investment experience. The securities team is located in the U.S., Europe and Asia and is integrated into the substantial private side real estate activities of PREI’s global real estate investment management business.
“At PREI, we have over 300 investment professionals in 21 locations in 15 countries,” said Marc Halle. “Our local market presence and integration provides real time access to local market information on a global scale. Our global infrastructure and scale affords us the ability to identify and take advantage of investment opportunities that may not be apparent to investors who do not have the kind of access that our firm has.”
The Fund is available in the following share classes: A: SREAX, C: SRECX, Q: SREQX, Z: SREZX
Prudential Investments® is the mutual fund business of Prudential Financial, Inc., offering a range of open- and closed-end funds. Please visit www.prudentialfunds.com for more information.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1.1 trillion of assets under management as of March 31, 2014, 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 and investment management. 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 www.news.prudential.com.
Alpha measures risk-adjusted performance, factoring in the risk due to the specific manager rather than the overall market.
Mutual fund investing involves risk. Some mutual funds have more risk than others. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost, and it is possible to lose money. There is no guarantee a fund’s objectives will be achieved. The Fund may have additional risks due to its narrow focus. The Fund may invest in foreign securities, which are subject to currency fluctuation and political uncertainty and real estate investment trusts (REITs), which may not be suitable for all investors. There is no guarantee a REIT will pay distributions given the inherent risks associated with the market. A REIT may fail to qualify as a REIT as defined in the Tax Code, which could affect operations and negatively impact the ability to make distributions. The risks associated with each fund are explained more fully in each fund’s respective prospectus.
Consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Read the prospectus and summary prospectus carefully before investing.
Class Z shares are available to various institutional investors through certain retirement, mutual fund wrap and asset allocation programs, and the minimum for such investors is generally $5,000,000. Performance by share class may vary. Other share classes, which contain either a sales load or a contingent deferred sales charge, are also available. These expenses could lower total fund return. Please see the prospectus for additional information about fees, expenses and investor eligibility requirements.
For the overall, 3-, 5-, and 10-year periods as of 6/30/2014, Prudential Global Real Estate Fund Z was rated 5 stars out of 174 funds, 4 stars out of 174 funds, 4 stars out of 147 funds, and 5 stars out of 27 funds, respectively. For each fund with at least a 3-year history, Morningstar calculates a Morningstar rating (based on a Morningstar risk-adjusted return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, and the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star (each share class is rated separately, which may cause slight variations in the distribution percentages). The overall Morningstar rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar rating metrics. The Fund was rated against U.S.-domiciled funds. The Morningstar Rating may not be customarily calculated based on adjusted historical returns. If so, this investment's independent Morningstar Rating metric is compared against the retail mutual fund universe break points to determine its hypothetical rating for certain time periods.©2014 Morningstar, Inc. All rights reserved. The information contained herein (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. PREI is a business unit of Prudential Investment Management, Inc., a Prudential Financial company. ©2014 Prudential Financial, Inc. and its related entities. Prudential Investments LLC, Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.
1 AUM as of June 30, 2014