About PADZX
The PGIM Absolute Return Bond Fund Class Z is a nontraditional bond mutual fund designed to achieve positive returns across diverse market conditions. Its core purpose is capital preservation and appreciation through a highly flexible approach, investing mainly in bonds issued by U.S. entities while also maintaining the latitude to deploy assets across global fixed income sectors. This fund distinguishes itself with an absolute return strategy, emphasizing risk management and adaptability rather than strict adherence to traditional bond benchmarks.
The portfolio is broadly diversified, incorporating U.S. government, investment-grade corporate, high-yield, asset-backed, mortgage-backed, and emerging market bonds, as well as derivatives and cash equivalents. The fund’s managers can take both long and short positions, and actively manage duration, which can be extended, shortened, or even brought negative to respond to shifting interest rate environments. This flexibility allows for low correlation with core bond indices and aims to mitigate volatility.
The fund is typically suited for investors seeking steady income and capital appreciation through a wide range of fixed income opportunities. With a relatively low expense ratio, monthly distributions, and a history of managing risk through multiple credit and interest rate cycles, the PGIM Absolute Return Bond Fund Class Z plays a unique role as a diversifier within the broader fixed income allocation of a portfolio.
Fund Family PGIM
Category Nontraditional Bond
Stock Exchange NASDAQ
Ticker Symbol PADZX
Share Class Class Z
Index ICE BofA US 3-Month T Bill TR IX
PADZX had a total return of 5.11% in the past year, including dividends. Since the fund's
inception, the average annual return has been 3.41%.
