This closed-end fund’s largest holders are: Parametric Portfolio Associates (11.86% of assets); SIT Investment Associates Inc (5.14%); and Saba Capital Management, L.P.(4.55%)
PGIM Global High Yield Fund, Inc (GHY)
From Income Securities Investor
PGIM Global High Yield Fund, Inc.; Discount to Net Asset Value -4.92%; Pay Cycle Me; Expense Ratio 1.59%; Leverage Ratio 26.99%; CUSIP 74433A109
PGIM Global High Yield Fund, Inc. Provides a high level of current income by investing primarily in global high-yield securities. The fund typically invests at least 80% of its managed assets in a portfolio of high-yield debt with varying maturities.
Under its 80% guideline, GHY can invest in derivatives, including interest rate and credit default swaps, up to 20% of investable assets. As of 09/30/21, approximately 70% of the fund’s investments were rated “B” or “BB.” Sector exposure was well diversified, with Other Energy (7.4%), Foods (5.2%), Telecom (4.5%), Retailers (4.4%), and Gaming (4.2%) constituting the top five sectors. GHY’s largest issuers included Ford Motor (1.9%), Petroleos Mexicanos (1.8%), Republic of Turkey (1.5%), Republic of Ukraine (1.5%), and Chesapeake Energy (1.5%).
GHY’s total return performance has been good historically, with the fund posting an 11.94% market price total return for the YTD period ended 09/30/21. The fund’s distributions, which consist of interest income and capital gains and may also include return of capital, are taxed on a variable basis. This investment is suitable for medium- to high-risk portfolios. Buy at $17.50 or below for a 7.20% annualized yield.
Martin Fridson, CFA, Income Securities Investor, isinewsletter.com, 800-472-2680, November 2021