Prudential Launches Real Estate Income Fund

NEWARK, NJ—Prudential Investments has launched the Prudential Real Estate Income Fund (NASDAQ: PRKAX), a real estate strategy driven by investments principally in real estate investment trusts, or REITs, and other real estate securities. Prudential Investments is the mutual fund business of Prudential Financial. (NYSE: PRU).

“This fund offers investors the opportunity to diversify their portfolios through exposure to an asset class that has delivered long-term competitive returns and low correlation to stocks and bonds,” says Stuart Parker, president of Prudential Investments. “By distributing a significant majority of their net income as dividends, global REITs offer investors a steady income stream and the potential for capital appreciation, as well,” said Halle. “In addition, we are seeking to have 20 percent of the portfolio invested in preferred REITs, which potentially have higher yields and less volatility than common stock REITs.”