NEWARK, N.J. -- (Business Wire)
Prudential Global Short Duration High Yield Fund, Inc. (NYSE:
GHY) declared today its initial distribution of $0.125 per share of
common stock payable February 28, 2013. Based on the Fund’s initial
offering price of $20.00 per share, this equates to an annualized
distribution yield of 7.50%. The Fund also declared today monthly
distributions of $0.125 per share of common stock for March, April and
The distribution schedule appears below:
These distributions are the first declared by the Fund following its
successful initial public offering in December 2012 that raised
approximately $851 million, assuming full exercise of the underwriters'
overallotment option, which may not occur.
The Fund seeks to provide investors with a high level of current income.
It invests in a portfolio consisting primarily of global higher-rated,
below investment-grade fixed income instruments1.
It seeks to maintain a weighted average portfolio duration, including
the effects of leverage, of three years or less and a weighted average
maturity of five years or less. There is no guarantee the Fund’s
objective will be achieved.
This press release is not for tax reporting purposes, but is being
provided to announce the amount of the Fund’s distributions that have
been declared by the Board of Directors. In early 2014, after definitive
information is available, the Fund will send shareholders a Form
1099-DIV, if applicable, specifying how the distributions paid by the
Fund during the prior calendar year should be characterized for purposes
of reporting the distributions on a shareholder’s tax return (e.g.,
ordinary income, long-term capital gain or return of capital). If
applicable, a current estimate of the distribution's composition can be
found in the Section 19 notice section of the website. Please consult
your tax advisor for further information.
The Fund is a diversified, closed-end management investment company
managed by Prudential Investments LLC. The Fund is sub-advised by
Prudential Fixed Income, a business unit of Prudential Investment
Management Inc. and an affiliate of the investment manager.
Prudential Investments, the mutual fund and wealth management business
of Prudential Financial, Inc. (NYSE: PRU), oversees Prudential Mutual
Funds, which focuses on traditional mutual funds, separately managed
accounts, and Investment Only Defined Contribution businesses.
Prudential Investments also maintains two other business units, Wealth
Management Solutions and Strategic Investment Research Group.
Prudential Financial, Inc., a financial services leader with more than
$1 trillion of assets under management as of September 30, 2012, 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 http://www.news.prudential.com/.
The Fund invests in high yield (“junk”) bonds, which are subject
to greater credit and market risks; leveraging techniques, which
may magnify losses and increase portfolio expenses; derivative
securities, which maycarry market, credit, and liquidity
risks; foreign securities, which are subject to currency
fluctuation andpolitical uncertainty; emerging markets,
which are subject to greater volatility and price declines; liquidity
risk, which exists when particular investments are difficult to
sell; and small- and mid-cap issuers, whichmay be subject
to more erratic price and market movements than large-cap issuers. The
Fund may frequently trade at a discount to its net asset value
and contains anti-takeover provisions that may delay, defer orprevent
a transaction or a change in control that might otherwise be in the best
interests of the stockholders. Fixed income investments are
subject to interest rate risk, where their value will decline as
interest ratesrise; and credit risk, which is the
inability to make timely principal and interest payments. The Fund’s net
assetvalue may decline over time to the extent that the Fund
buys fixed income securities at a premium. The risks associated with the
Fund are more fully explained in the prospectus. These risks may
increase the Fund’s share price volatility. There is no guarantee the
Fund’s objective will be achieved.
An investment in a closed-end fund’s common stock may be speculative
in that it involves a high degree of risk and should not constitute a
complete investment program, and may result in loss of principal. Each
closed-end fund will have its own unique investment strategy, risks,
charges and expenses that need to be considered before investing. The
prospectus, which contains this and other information about the Fund,
should be read carefully before investing.
Prudential Fixed Income is a unit of PIM, which is a registered
investment advisor and Prudential Financial company. 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.
Control Number: 0238592-00001-00
1 Higher-rated high yield bonds are below investment grade,
commonly referred to as “junk bonds,” and are considered speculative.
Rated Ba, B by Moody’s Investors Service, Inc.; BB, B by Standard &
Poor’s Ratings Services or Fitch, Inc.; or comparably rated by another
nationally recognized statistical rating organization (NRSRO) or, if
unrated, are considered by the Fund’s subadvisor to be of comparable
Prudential Global Short Duration High Yield Fund, Inc.
Source: Prudential Global Short Duration High Yield Fund, Inc.
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