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PGIM Credit Income Fund Alters Fee Structure on Class A, C Shares

PGIM Credit Income Fund, a diversified closed-end interval fund managed by PGIM Investments LLC, amended its prospectus to reflect fee changes, effective immediately.

The fund’s maximum sales load on Class A shares was reduced from 3.25% to 2.5%, with no sales load charged on purchases of $250,000 or more. The sales load was only previously waived on purchases of $500,000 or more.

However, a contingent deferred sales charge of 1.5% will now be assessed on Class A shares purchased without a sales charge if the shares are repurchased during the first 12 months of their purchase. A contingent deferred sales charge of 1% will be assessed on Class C shares purchased without a sales charge and repurchased within the first 12 months.

Finally, Class A shares are now subject to a distribution and servicing fee of 0.75%, previously 0.25%; and the redemption fee, which was 2% if held less than a year, is eliminated.

The fund’s investment objective is to seek total return through a combination of current income and capital appreciation. Launched in December 2023, it invests across a wide array of credit markets, including corporate, mortgage, consumer and municipal, and employs a flexible asset allocation strategy among multiple public and private credit sectors in global credit markets – including but not limited to corporate debt; mortgage-related and other consumer-related instruments; collateralized debt obligations, including, but not limited to, collateralized loan obligations; municipal bonds; and other fixed-, variable-, and floating-rate income-producing securities of U.S. and foreign issuers.

The fund currently offers three common share classes on a continuous basis at net asset value: Class Z, Class A; and Class C. The original offering price was $25 per share.

Like other similarly structured funds, shareholders cannot redeem their common shares. To provide some liquidity to shareholders, however, the fund will conduct periodic repurchase offers for a portion of its outstanding common shares.

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