Prudential Short Duration Muni High Income Fund launches

By Toni Weeks

San Luis Obispo, Calif., June 4 - Prudential Investments said it has launched the Prudential Short Duration Muni High Income Fund, according to a press release.

The fund will seek high current income that is exempt from federal income taxes by investing in a diversified blend of shorter-duration municipal bonds while maintaining a weighted average portfolio duration of 4.5 years or less. The fund will use a customized benchmark consisting of equal weights of the Barclays Municipal Bond Index 1-8 Year and the Barclays Municipal High Yield Index 1-8 Year.

"This fund will address the growing investor demand for fixed-income strategies that may perform well in a rising-rate environment," Prudential Investments president Stuart Parker said in the release. "It may also provide an advantage for investors seeking relief from rising taxes."

The fund will be managed by Prudential's Fixed Income Municipal Bond Team, which is led by Susan Courtney, managing director and head of the team, and also includes Robert Tipp, Lee Friedman and John Dittemer.

"We're striving to provide the potential for higher yield and income with tax benefits while interest rates are at or near record low levels," Courtney said in the release.

The fund is available in class A, class C and class Z share classes. The ticker symbols are "PDSAX," "PDSCX," and "PDSZX," respectively.

Prudential Investments is based in Newark, N.J.

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