Fund Evaluator:
PGIM Absolute Return Bond Z (PADZX)
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Fund Details
PGIM Absolute Return Bond Z Overview
PGIM Absolute Return Bond Z (PADZX) is an actively managed Taxable Bond Nontraditional Bond fund. PGIM launched the fund in 2011.
The investment seeks positive returns over the long term, regardless of market conditions. The fund invests at least 80% of its investable assets (net assets plus borrowings for investment purposes, if any) in debt securities (generally referred to as "bonds") and/or investments that provide exposure to bonds. It may invest up to 50% of its total assets in debt securities that are rated below investment grade (which are sometimes referred to as "junk bonds") or, if unrated, of comparable quality at the time of purchase as determined by the fund's subadviser.
About PGIM Absolute Return Bond Z (PADZX)
There are 5 members of the management team with an average tenure of 9.67 years: Gregory Peters (2014), Matthew Angelucci (2023), Tyler Thorn (2023), Robert Tipp (2011), Richard Piccirillo (2011). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US 3M Trsy Bill TR USD index with a weighting of 100%. PGIM Absolute Return Bond Z has 1227 securities in its portfolio. The top 10 holdings constitute 28.5% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
PGIM Absolute Return Bond Z is part of the Fixed Income global asset class and is within the Taxable Bond fund group. PGIM Absolute Return Bond Z has 26.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.2%. There is 0.0% allocated to foreign stock, and 0.9% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 90.6% (64.4% domestic bond, 26.1% foreign bond and 0.0% convertible bond). PGIM Absolute Return Bond Z has 8.2% of the portfolio in cash.
Assets Under Management
The fund has $3 billion in total assets, which is above the $663 million average for the Nontraditional Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
PADZX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PGIM Absolute Return Bond Z expense ratio is above average compared to funds in the Nontraditional Bond category. PGIM Absolute Return Bond Z has an expense ratio of 0.73%, which is 49% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. PGIM Absolute Return Bond Z has a portfolio turnover rate of 102%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 308% for the Nontraditional Bond category.
Recently, in the month of June 2026, PGIM Absolute Return Bond Z returned 0.3%, which earned it a grade of B, as the Nontraditional Bond category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
PGIM Absolute Return Bond Z has a trailing yield of 5.02%, which is above the 4.89% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
PGIM Absolute Return Bond Z Grades
Year to date, the fund has returned 2.5%, 1.1 percentage points better than the category, which translates into a grade of A. The fund has returned 5.5% over the past year (grade of B), 6.7% over the past three years (grade of B) and 4.4% per year over the past five years (grade of A) and 4.2% per year over the past 10 years (grade of A).
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PADZX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PADZX Return (NAV) | 0.3% | 1.7% | 5.5% | 6.7% | 4.4% | 4.2% |
| PADZX Grade | B | C | B | B | A | A |
| +/- Category | 0.1% | 0.1% | 0.6% | 0.7% | 1.9% | 0.9% |
| Nontraditional Bond Avg | 0.2% | 1.7% | 4.9% | 6.0% | 2.5% | 3.3% |
| PADZX Tax Cost Ratio | na | na | 2.0% | 2.2% | 1.9% | 1.8% |
PADZX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PADZX Return (NAV) | 2.5% | 5.1% | 8.0% | 7.7% | -1.1% | 2.1% | 0.6% | 7.6% | 0.7% | 6.7% | 5.0% |
| PADZX Grade | A | D | A | B | A | B | F | B | B | A | C |
| +/- Category | 1.1% | -1.8% | 2.5% | 1.2% | 4.9% | 0.8% | -4.9% | 1.0% | 1.5% | 2.6% | -1.4% |
| Nontraditional Bond Avg | 1.5% | 6.8% | 5.4% | 6.5% | -6.1% | 1.3% | 5.4% | 6.5% | -0.8% | 4.1% | 6.4% |
| Risk Measures | |
| Standard Deviation: | 1.1% |
| Total Risk Index: | 0.09 - Low |
| Category Risk Index: | 0.30 - Low |
| Category Risk Grade: | A (7% Rank) |
| Beta: | 0.04 |
| R-Squared: | 6% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Value |
| Bond Investment Style: | na |
| Yield: | 5.0% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $3598 Mil |
| Fund Total Assets: | $3,139 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 102% |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 15.3 years | |||
| Average Tenure: 9.7 years | |||
| Managers (Year): Tipp Robert (2011), Piccirillo Richard (2011), Peters Gregory (2014), Angelucci Matthew (2023), Thorn Tyler (2023) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 1227 |
| % in Top 10 Holdings: | 28.5% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 26.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.2% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.9% |
| Domestic Bond: | 64.4% |
| Foreign Bond: | 26.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.1% |
| Cash: | 8.2% |
Purchase Information
| Fund Family: | PGIM |
| Phone Number: | 800-225-1852 |
| Website: | www.prudentialfunds.com |
| Status: | Open |
| Inception Date: | March 30, 2011 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.73% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 1.42% |
| Share Class: | PGIM Absolute Return Bond Z |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
