Investors are Turning to Real Estate as Trade War Rages On

As trade uncertainty continues to spark fluctuation in the markets, Head of Global Real Estate Securities at PGIM Real Estate, Rick Romano, joins Yahoo Finance’s On the Move to discuss why investors should consider real estate, and more specifically REITs.

September 24, 2019

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PGIM Real Estate Fund Offerings

PGIM Global Real Estate Fund (PURZX)

Source: Morningstar as of 8/31/2019. Class Z Overall Morningstar Rating out of 204 Global Real Estate funds. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on a fund’s 3-, 5-, and 10-year star ratings. The Fund’s 3-, 5-, and 10-year Star Ratings/Funds in category are as follows: Class Z – 4/204, 3/162, and 4/115, respectively. Morningstar category rankings are based on total return, do not include the effect of sales charges, and are calculated against all funds in each fund’s respective Morningstar category as of 8/31/2019.

The PGIM Global Real Estate Fund (PURZX) has an overall Morningstar rating of four stars. Year to date, the fund ranks in the top 15% as the 43rd fund out of 233 funds in the Global Real Estate category. For the 1-year, the fund ranks in the top 15% and is the 46th fund out of 231 funds. For the 3-year, the fund ranks in the top 23% and is the 60th fund out of 204 funds. For the 5-year, the fund ranks in the top 34% and is the 53rd fund out of 162 funds. For the 10-year, the fund ranks in the top 22% and is the 24th fund out of 115 funds. All data is sourced from Morningstar as of 8/31/2019.

 

This fund seeks to provide capital appreciation and income by investing primarily in domestic and international real estate securities. May be suited to investors looking to increase overall portfolio diversification and take advantage of potential real estate opportunities anywhere in the world.

 

PGIM Select Real Estate Fund (SREZX)

Source: Morningstar as of 8/31/2019. Class Z Overall Morningstar Rating out of 204 Global Real Estate funds as of 8/31/2019. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on a fund’s 3-, 5-, and 10-year star ratings. The Fund’s 3- and 5-year Star Ratings/Funds in category are Class Z - 5/204, and 5/162, respectively. Morningstar category rankings are based on total return, do not include the effect of sales charges, and are calculated against all funds in each fund’s respective Morningstar category as of 8/31/2019.

The PGIM Select Real Estate Fund (SREZX) has an overall Morningstar rating of five stars. Year to date, the fund ranks in the top 1% as the 1st fund out of 233 funds in the Global Real Estate category. For the 1-year, the fund ranks in the top 1% and is the 2nd fund out of 231 funds. For the 3-year, the fund ranks in the top 2% and is the 5th fund out of 204 funds. For the 5-year, the fund ranks in the top 1% and is the 1st fund out of 162 funds. All data is sourced from Morningstar as of 8/31/2019.

 

This fund seeks to provide capital appreciation and income by investing primarily in 30 to 45 domestic and international real estate securities in which the portfolio managers have a high level of conviction. May be suited to investors looking to take advantage of potential real estate opportunities anywhere in the world.

 

PGIM US Real Estate Fund (PJEZX)

Source: Morningstar as of 8/31/2019. Class Z Overall Morningstar Rating out of 223 Real Estate funds. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on a fund’s 3-, 5-, and 10-year star ratings. The Fund’s 3- and 5-year Star Ratings/Funds in category are as follows: Class Z - 4/223 and 4/198, respectively. Morningstar category rankings are based on total return, do not include the effect of sales charges, and are calculated against all funds in each fund’s respective Morningstar category as of 8/31/2019. The PGIM US Real Estate Fund (PJEZX) seeks to provide capital appreciation and income by investing primarily in domestic real estate securities. The Fund may be suited to investors looking to increase overall portfolio diversification and take advantage of potential real estate opportunities in the United States

The PGIM US Real Estate Fund (PJEZX) has an overall Morningstar rating of four stars. Year to date, the fund ranks in the top 7% as the 14th fund out of 263 funds in the Real Estate category. For the 1-year, the fund ranks in the top 9% and is the 18th fund out of 258 funds. For the 3-year, the fund ranks in the top 12% and is the 26th fund out of 223 funds. For the 5-year, the fund ranks in the top 24% and is the 45th fund out of 198 funds. All data is sourced from Morningstar as of 8/31/2019.

 

This fund seeks to provide capital appreciation and income by investing primarily in domestic real estate securities. The Fund may be suited to investors looking to increase overall portfolio diversification and take advantage of potential real estate opportunities in the United States.

 

PGIM Real Estate Income Fund (PRKZX)

Source: Morningstar as of 8/31/2019. Class Z Overall Morningstar Rating out of 223 Global Real Estate funds. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on a fund’s 3-, 5-, and 10-year star ratings. The Fund’s 3-year Star Rating/Funds in category is Class Z - 3/223. Morningstar category rankings are based on total return, do not include the effect of sales charges, and are calculated against all funds in each fund’s respective Morningstar category as of 8/31/2019.

The PGIM Real Estate Income Fund (PRKZX) has an overall Morningstar rating of three stars. Year to date, the fund ranks in the top 39% as the 116st fund out of 263 funds in the Global Real Estate category. For the 1-year, the fund ranks in the top 70% and is the 200th fund out of 258 funds. For the 3-year, the fund ranks in the top 64% and is the 135th fund out of 223 funds. All data is sourced from Morningstar as of 8/31/2019.

 

This fund seeks income and capital appreciation by investing primarily in domestic and international real estate securities that the subadvisor believes offer the potential for income. The Fund may be suited for investors looking for attractive income opportunities from real estate securities around the globe.

Source: Morningstar. The Morningstar Rating for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Average Annual Returns % (with sales charge) and Expenses
 

Average Annual Returns % (with sales charge)

Expenses

Class

Fund Name

Ticker

1-Year

3-Year

5-year

10-year

Since Inception

Gross(%)

Net(%)

Date*

Maximum Sales Charge (%)

Z

PGIM Global Real Estate

PURZX

11.56

5.77

5.15

10.92

8.64

0.93

0.93

2/29/2020

-

5/5/1998

Z

PGIM Select Real Estate

SREZX

18.73

8.99

-

-

7.89

14.92

1.05

2/29/2020

-

8/1/2014

Z

PGIM Real Estate Income Fund

PRKZX

11.61

6.20

-

-

5.32

2.70

1.10

2/29/2020

-

6/3/2015

Z

PGIM US Real Estate Fund

PJEZX

16.59

6.57

8.26

-

9.9

1.54

1.00

7/31/2020

-

12/21/2010

*This date represents the contractual reduction date through which the net expense ratio is in effect.


Footnotes

Past performance does not guarantee future results, and current performance may be lower or higher than the past performance data quoted. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost. For the most-recent and complete information about performance, charges and expenses, visit our website at pgiminvestments.com.

Total return describes the return to the investor after net operating expenses but before any sales charges are imposed. Lipper average is unmanaged, is based on the average return of all funds in this category, and does not take into consideration applicable sales charges. Unless noted otherwise, Lipper averages and index returns reflect performance beginning the closest month-end date to the Fund's inception. Benchmark since inception average is based on Class Z inception date. SEC standardized return describes the return to the investor after net operating expenses and maximum sales charges are imposed. All returns assume share price changes as well as the compounding effect of reinvested dividends and capital gains. Returns may reflect fee waivers and/or expense reimbursements. Without such, returns would be lower. All returns 1-year or less are cumulative.

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. Contact your financial professional for a prospectus and summary prospectus. Read them carefully before investing.

Investing in real estate poses certain risks related to overall and specific economic conditions, as well as risks related to individual property, credit, and interest rate fluctuations. The Fund may have additional risks due to its narrow focus; is nondiversified, so a loss resulting from a particular security or sector will have a greater impact on the Fund’s return; and invests in foreign securities, which are subject to currency fluctuation and political uncertainty. These risks may result in greater share price volatility. Real estate investment trusts (REITs) 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 Fund’s distributions will be primarily from REITs and from net realized gains, if any, from the sale of REITs. REIT distributions may be from income, from realized gain, and from return of capital. The Fund will provide to shareholders early in each calendar year the final tax character of the Fund’s distributions for the previous year. Also, at such time that a Fund distribution is expected to be from sources other than current or accumulated net income, a notice to shareholders may be required. There is no guarantee a REIT’s investment objectives will be achieved. For compliance use only

1026463-00001-00 Ed. 9/19

 

Disclaimer

Consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus and the summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and the summary prospectus. Read them carefully before investing.

An investment in our money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your clients investment at $1.00 per share, it is possible to lose money by investing in the funds.

Mutual fund investing involves risk. Some mutual funds have more risk than others. The investment return and principal value will fluctuate and investor's shares when sold may be worth more or less than the original cost. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise. Asset allocation and diversification do not assure a profit or protect against loss in declining markets. There is no guarantee a Fund's objectives will be achieved. The risks associated with each fund are explained more fully in each fund's respective prospectus. Consult with your attorney, accountant, and/or tax professional for advice concerning your particular situation.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

Investment products are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. Separately Managed Accounts are offered through our affiliates. Jennison Associates and PGIM, Inc. (PGIM) are registered investment advisors and Prudential Financial companies. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM. PGIM Fixed Income and PGIM Real Estate are units of PGIM. © 2019 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM Real Estate, PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

Prudential Financial, Inc. of the United States is not affiliated with Prudential plc. which is headquartered in the United Kingdom.

Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.