Prudential Investment Portfolios 16 N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number:	811-08915
Exact name of registrant as specified in charter:	Prudential Investment Portfolios 16
Address of principal executive offices:	655 Broad Street, 17th Floor
	Newark, New Jersey 07102
Name and address of agent for service:	Deborah A. Docs
	655 Broad Street, 17th Floor
	Newark, New Jersey 07102
Registrant’s telephone number, including area code:	800-225-1852
Date of fiscal year end:	10/31/2017
Date of reporting period:	4/30/2017

Item 1 – Reports to Stockholders

     PRUDENTIAL INCOME BUILDER FUND

SEMIANNUAL REPORT

APRIL 30, 2017

To enroll in e-delivery, go to pgiminvestments.com/edelivery

Objective: Income and long-term capital growth

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

The accompanying financial statements as of April 30, 2017 were not audited and, accordingly, no auditor’s opinion is expressed on them.

Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company. Jennison Associates LLC and PGIM, Inc. (PGIM) are registered investment advisers and Prudential Financial companies. QMA is the primary business name of Quantitative Management Associates LLC, a wholly owned subsidiary of PGIM. PGIM Fixed Income and PGIM Real Estate are units of PGIM. ^© 2017 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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Letter from the President

Dear Shareholder:

We hope you find the semiannual report for the Prudential Income Builder Fund informative and useful. The report covers performance for the six-month period ended April 30, 2017. We are proud to announce that Prudential Investments became PGIM^® Investments, effective April 3, 2017. Why PGIM? This new name was chosen to further align with the global

investment management businesses of Prudential Financial, which rebranded from Prudential Investment Management in January 2016. This new name allows for one brand and reflects our ability and commitment to delivering investment solutions to clients around the globe. Please keep in mind that only the Fund adviser’s name was changed: the name of your Fund and the management and operation did not change.

Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.

Your financial adviser can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.

At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. We’re part of PGIM, the 9th-largest global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.

Thank you for choosing our family of funds.

Sincerely,

Stuart S. Parker, President

Prudential Income Builder Fund

June 15, 2017

Prudential Income Builder Fund 3

Your Fund’s Performance (unaudited)

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852.

	Total Returns as of 4/30/17 (without sales charges)	Average Annual Total Returns as of 4/30/17 (with sales charges)
	Six Months* (%)	One Year (%)	Five Years (%)	Ten Years (%)	Since Inception (%)
Class A	5.16	4.54	4.35	4.05	—
Class B	4.87	3.72	4.40	3.76	—
Class C	4.87	7.61	4.53	3.75	—
Class Q	4.18**	N/A	N/A	N/A	N/A (12/30/16)
Class R	5.15	9.21	5.07	4.28	—
Class Z	5.36	9.79	5.60	4.80	—
S&P 500 Index	13.31	17.90	13.66	7.15	—
Bloomberg Barclays US Aggregate Bond Index	–0.67	0.83	2.27	4.30	—
Lipper Flexible Portfolio Funds Average	6.63	9.58	5.30	4.01	—

*Not annualized

**Since inception

Source: PGIM Investments LLC and Lipper Inc.

Inception returns are provided for any share class with less than 10 fiscal years of returns.

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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.

	Class A	Class B*	Class C	Class Q	Class R	Class Z
Maximum initial sales charge	4.50% of the public offering price	None	None	None	None	None
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption)	1% on sales of $1 million or more made within 12 months of purchase	5% (Year 1) 4% (Year 2) 3% (Year 3) 2% (Year 4) 1% (Years 5/6) 0% (Year 7)	1% on sales made within 12 months of purchase	None	None	None
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets)	.30% (.25% currently)	1%	1%	None	.75% (.50% currently)	None

*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired by except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.

Benchmark Definitions

S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how US stock prices in the United States have performed.

Bloomberg Barclays US Aggregate Bond Index—The Bloomberg Barclays US Aggregate Bond Index represents an unmanaged diversified portfolio of fixed-income securities, including US Treasuries, investment-grade corporate bonds and mortgage-backed and asset-backed securities.

Lipper Flexible Portfolio Funds Average—The Lipper Flexible Portfolio Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Flexible Portfolio Funds universe for the periods noted.

The funds in the Lipper Average allocate their investments to both domestic and foreign securities across traditional asset classes with a focus on total return.

Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes. The Since Inception

Prudential Income Builder Fund 5

Your Fund’s Performance (continued)

returns for the Indexes and the Lipper Average are measured from the closest month-end inception date for the indicated share class.

Five Largest Holdings expressed as a percentage of net assets as of 4/30/17 (%)
SPDR Bloomberg Barclays Convertible Securities ETF, Exchange Traded Funds	8.0
Prudential Short Duration High Yield Income Fund (Class Q), Affiliated Mutual Funds	3.5
PowerShares Preferred Portfolio ETF, Exchange Traded Funds	2.9
Prudential Absolute Return Bond Fund (Class Q), Affiliated Mutual Funds	2.0
Sunoco Logistics Partners LP, MLP, Oil, Gas & Consumable Fuels	1.2

Holdings reflect only long-term investments and are subject to change.

Five Largest Industries expressed as a percentage of net assets as of 4/30/17 (%)
Oil, Gas & Consumable Fuels	17.9
Exchange Traded Funds	10.9
Foreign Government Bonds	9.4
Affiliated Mutual Funds	7.4
Equity Real Estate Investment Trusts (REITs)	8.2

Industry weightings reflect only long-term investments and are subject to change.

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Fees and Expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 held through the six-month period ended April 30, 2017. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

Actual Expenses

The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM Investments Funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses

Prudential Income Builder Fund 7

Fees and Expenses (continued)

paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Prudential Income Builder Fund		Beginning  Account Value November 1, 2016		Ending  Account Value April 30, 2017		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period*
Class A	Actual	$	1,000.00	$	1,051.60		0.95	%	$	4.83
	Hypothetical	$	1,000.00	$	1,020.08		0.95	%	$	4.76
Class B	Actual	$	1,000.00	$	1,048.70		1.70	%	$	8.64
	Hypothetical	$	1,000.00	$	1,016.36		1.70	%	$	8.50
Class C	Actual	$	1,000.00	$	1,048.70		1.70	%	$	8.64
	Hypothetical	$	1,000.00	$	1,016.36		1.70	%	$	8.50
Class Q	Actual**	$	1,000.00	$	1,041.80		0.70	%	$	2.31
	Hypothetical	$	1,000.00	$	1,021.32		0.70	%	$	3.51
Class R	Actual	$	1,000.00	$	1,051.50		1.20	%	$	6.10
	Hypothetical	$	1,000.00	$	1,018.84		1.20	%	$	6.01
Class Z	Actual	$	1,000.00	$	1,053.60		0.70	%	$	3.56
	Hypothetical	$	1,000.00	$	1,021.32		0.70	%	$	3.51

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2017, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2017 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

**“Actual” expenses are calculated using the 118 day period ended April 30, 2017 due to the class’s inception date of December 30, 2016.

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Schedule of Investments (unaudited)

as of April 30, 2017

Description	Shares		Value
LONG-TERM INVESTMENTS    95.3%
AFFILIATED MUTUAL FUNDS    7.4%
Prudential Absolute Return Bond Fund (Class Q)		863,189	$	8,424,722
Prudential Floating Rate Income Fund (Class Q)		423,631		4,215,130
Prudential Short Duration High Yield Income Fund (Class Q)		1,628,435		14,786,188
Prudential Total Return Bond Fund (Class Q)		292,933		4,206,517
TOTAL AFFILIATED MUTUAL FUNDS (cost $31,324,573)(w)				31,632,557
COMMON STOCKS    39.2%
Aerospace & Defense    0.8%
General Dynamics Corp.		6,377		1,235,799
Lockheed Martin Corp.		4,371		1,177,766
Safran SA (France)		11,055		915,298
				3,328,863
Air Freight & Logistics    0.1%
bpost SA (Belgium)		14,298		342,694
Banks    1.8%
Bank of America Corp.		90,727		2,117,568
BB&T Corp.		38,517		1,663,164
JPMorgan Chase & Co.		33,425		2,907,975
PNC Financial Services Group, Inc. (The)		9,853		1,179,897
				7,868,604
Beverages    0.1%
Molson Coors Brewing Co. (Class B Stock)		4,421		423,930
Capital Markets    0.5%
Goldman Sachs Group, Inc. (The)		10,020		2,242,476
Chemicals    0.7%
Agrium, Inc. (Canada)		5,568		522,598
Air Products & Chemicals, Inc.		6,341		890,911
Dow Chemical Co. (The)		13,264		832,979
FMC Corp.		11,561		846,612
				3,093,100
Communications Equipment    0.7%
Cisco Systems, Inc.		89,590		3,052,331
Diversified Telecommunication Services    0.1%
Frontier Communications Corp.(a)		211,879		398,333

See Notes to Financial Statements.

Prudential Income Builder Fund 9

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Electric Utilities    0.2%
Exelon Corp.		23,181	$	802,758
Energy Equipment & Services    0.8%
Baker Hughes, Inc.		27,326		1,622,345
U.S. Silica Holdings, Inc.		18,654		774,141
USA Compression Partners LP, MLP		58,530		980,377
				3,376,863
Equity Real Estate Investment Trusts (REITs)    6.6%
alstria office REIT-AG (Germany)*		23,974		317,066
Ascendas Real Estate Investment Trust (Singapore)		206,400		378,290
Cache Logistics Trust (Singapore)		2,405,937		1,489,065
Care Capital Properties, Inc.		29,117		782,374
CBL & Associates Properties, Inc.		90,727		839,225
Chesapeake Lodging Trust		46,949		1,094,381
Community Healthcare Trust, Inc.		71,558		1,768,914
CyrusOne, Inc.		35,408		1,934,693
DDR Corp.		79,216		856,325
DiamondRock Hospitality Co.		27,769		305,737
Empiric Student Property PLC (United Kingdom)		634		899
Eurocommercial Properties NV (Netherlands), CVA		15,533		603,545
Frasers Logistics & Industrial Trust (Singapore)		754,145		544,810
Invincible Investment Corp. (Japan)		2,786		1,067,121
Irish Residential Properties REIT PLC (Ireland)		97,224		138,713
Keppel REIT (Singapore)		810,978		615,146
Lexington Realty Trust		64,725		658,253
Mapletree Commercial Trust (Singapore)		559,921		639,315
MedEquities Realty Trust, Inc.		154,697		1,828,518
Medical Properties Trust, Inc.		65,623		857,693
MGM Growth Properties LLC (Class A Stock)		40,111		1,147,977
Omega Healthcare Investors, Inc.		44,106		1,455,498
Park Hotels & Resorts, Inc.		40,096		1,029,264
Physicians Realty Trust		15,309		300,669
QTS Realty Trust, Inc. (Class A Stock)		12,009		641,761
Retail Properties of America, Inc. (Class A Stock)		20,939		279,326
Sabra Health Care REIT, Inc.		19,078		518,731
Senior Housing Properties Trust		38,059		819,030
Slate Retail REIT (Canada) (Class U Stock)		34,445		377,746
Spirit Realty Capital, Inc.		140,235		1,321,014
STAG Industrial, Inc.		17,962		473,478
Starhill Global REIT (Singapore)		961,921		529,964
Suntec Real Estate Investment Trust (Singapore)		477,444		604,612
Ventas, Inc.		4,670		298,927

See Notes to Financial Statements.

10

Description	Shares		Value
COMMON STOCKS (Continued)
Equity Real Estate Investment Trusts (REITs) (cont’d.)
Washington Prime Group, Inc.		108,170	$	951,896
Wereldhave NV (Netherlands)		12,281		565,490
				28,035,466
Food Products    1.1%
Conagra Brands, Inc.		28,972		1,123,534
Hershey Co. (The)		7,979		863,328
Kraft Heinz Co. (The)		20,668		1,868,180
Pilgrim’s Pride Corp.		24,605		638,746
				4,493,788
Health Care Providers & Services    0.1%
Aetna, Inc.		3,202		432,494
Hotels, Restaurants & Leisure    0.7%
Dunkin’ Brands Group, Inc.		17,194		960,457
McDonald’s Corp.		11,223		1,570,435
Starbucks Corp.		11,089		666,005
				3,196,897
Independent Power & Renewable Electricity Producers    0.3%
Atlantica Yield PLC (Spain)		52,460		1,093,266
Industrial Conglomerates    0.2%
Honeywell International, Inc.		7,472		979,878
IT Services    0.7%
DXC Technology Co.*		39,361		2,965,458
Life Sciences Tools & Services    0.3%
Thermo Fisher Scientific, Inc.		7,676		1,269,073
Machinery    0.1%
Caterpillar, Inc.		4,349		444,729
Media    0.5%
Time Warner, Inc.		15,395		1,528,262
Twenty-First Century Fox, Inc. (Class A Stock)		22,286		680,614
				2,208,876
Mortgage Real Estate Investment Trusts (REITs)    0.6%
MFA Financial, Inc.		143,959		1,196,299

See Notes to Financial Statements.

Prudential Income Builder Fund 11

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Mortgage Real Estate Investment Trusts (REITs ) (cont’d.)
Starwood Property Trust, Inc.		66,822	$	1,516,191
				2,712,490
Oil, Gas & Consumable Fuels    17.3%
Antero Midstream Partners LP, MLP		70,581		2,401,166
Boardwalk Pipeline Partners LP, MLP		116,485		2,113,038
Buckeye Partners LP, MLP		36,268		2,509,020
Cheniere Energy Partners LP Holdings LLC		89,711		2,303,779
Cheniere Energy Partners LP, MLP		99,904		3,171,952
Enbridge, Inc. (Canada)(a)		37,157		1,540,158
Energy Transfer Equity LP, MLP		80,293		1,498,267
EnLink Midstream LLC		50,034		923,127
EnLink Midstream Partners LP, MLP		70,407		1,249,724
Enterprise Products Partners LP, MLP*		90,301		2,467,023
EQT GP Holdings LP, MLP		20,544		558,180
EQT Midstream Partners LP, MLP		32,129		2,507,347
Kinder Morgan, Inc.		145,902		3,009,958
MPLX LP, MLP		105,671		3,722,789
Noble Midstream Partners LP, MLP		42,957		2,153,005
NuStar Energy LP, MLP		36,748		1,770,151
ONEOK Partners LP, MLP		57,536		2,960,803
ONEOK, Inc.		28,283		1,487,969
Pacific Exploration and Production Corp. (Colombia)*		1,116		32,889
Plains All American Pipeline LP, MLP		108,848		3,183,804
Rice Midstream Partners LP, MLP		104,644		2,639,122
Royal Dutch Shell PLC (Class A Stock) (Netherlands), ADR		58,557		3,056,090
SemGroup Corp. (Class A Stock)		69,557		2,316,248
Suncor Energy, Inc. (Canada)		18,447		578,498
Sunoco Logistics Partners LP, MLP		219,147		5,246,367
Tallgrass Energy GP LP		27,547		742,392
Tallgrass Energy Partners LP, MLP		55,513		2,847,817
Targa Resources Corp.		81,573		4,497,120
TC PipeLines LP, MLP		16,778		1,015,572
TransCanada Corp. (Canada)		38,913		1,806,751
Williams Cos., Inc. (The)		116,595		3,571,305
Williams Partners LP, MLP		95,766		3,919,702
				73,801,133
Pharmaceuticals    1.3%
Bristol-Myers Squibb Co.		37,349		2,093,411
Eli Lilly & Co.		19,343		1,587,287

See Notes to Financial Statements.

12

Description		Shares		Value
COMMON STOCKS (Continued)
Pharmaceuticals (cont’d.)
Pfizer, Inc.			50,342	$	1,707,601
					5,388,299
Pipelines    0.2%
Hess Midstream Partners LP, MLP*			28,506		729,183
Road & Rail    0.8%
CSX Corp.			21,449		1,090,467
Ryder System, Inc.			13,316		904,290
Union Pacific Corp.			13,439		1,504,630
					3,499,387
Semiconductors & Semiconductor Equipment    0.2%
Texas Instruments, Inc.			10,459		828,144
Software    0.7%
Microsoft Corp.			45,363		3,105,551
Specialty Retail    0.4%
Home Depot, Inc. (The)			7,381		1,152,174
TJX Cos., Inc. (The)			6,433		505,891
					1,658,065
Technology Hardware, Storage & Peripherals    0.6%
Apple, Inc.			16,409		2,357,153
Textiles, Apparel & Luxury Goods    0.2%
Coach, Inc.			26,654		1,049,901
Tobacco    0.3%
Altria Group, Inc.			17,559		1,260,385
Transportation Infrastructure    0.2%
EcoRodovias Infraestrutura e Logistica SA (Brazil)	��		289,303		856,775
TOTAL COMMON STOCKS (cost $150,666,137)					167,296,343
EXCHANGE TRADED FUNDS    10.9%
PowerShares Preferred Portfolio ETF			840,688		12,568,285
SPDR Bloomberg Barclays Convertible Securities ETF			697,542		34,012,148
TOTAL EXCHANGE TRADED FUNDS (cost $44,279,961)					46,580,433

See Notes to Financial Statements.

Prudential Income Builder Fund 13

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
PREFERRED STOCKS    3.6%
Diversified Telecommunication Services    0.2%
Frontier Communications Corp., CVT, Series A, 11.125%		18,734	$	830,665
Electric Utilities    0.2%
NextEra Energy, Inc., CVT, 6.123%		14,287		748,639
Electronic Equipment, Instruments & Components    0.1%
Belden, Inc., CVT, Series B, 6.750%		7,014		690,668
Equity Real Estate Investment Trusts (REITs)    1.6%
American Homes 4 Rent, Series E, 6.350%		34,000		878,900
American Tower Corp., CVT, Series B, 5.500%		7,521		870,556
CBL & Assoc. Properties, Inc., Series D, 7.375%		4,853		113,317
Cedar Realty Trust, Inc., Series B, 7.250%(a)		21,800		558,952
GGP, Inc., Series A, 6.375%		22,000		557,260
Gramercy Property Trust, Series A, 7.125%(a)		29,339		776,897
Monmouth Real Estate Investment Corp., Series C, 6.125%		10,800		271,728
Pebblebrook Hotel Trust, Series D, 6.375%(a)		10,622		273,729
Pennsylvania Real Estate Investment Trust, Series C, 7.200%		33,300		864,468
Rexford Industrial Realty, Inc., Series A, 5.875%		17,800		445,018
STAG Industrial, Inc., Series C, 6.875%		16,120		432,983
Sunstone Hotel Investors, Inc., Series E, 6.950%		28,900		740,996
				6,784,804
Internet Software & Services    0.4%
Alibaba Group Mandatory Exchangeable Trust, CVT, 144A, 5.75%(g)		12,143		1,669,541
Oil, Gas & Consumable Fuels    0.6%
Anadarko Petroleum Corp., CVT, 7.500%(a)		49,603		2,277,274
Hess Corp., CVT, 8.000%		5,746		342,749
				2,620,023
Pharmaceuticals    0.5%
Allergan PLC, CVT, Series A, 5.500%		2,282		1,975,710
TOTAL PREFERRED STOCKS (cost $15,017,857)				15,320,050

See Notes to Financial Statements.

14

Description	Interest Rate			Maturity Date		Principal Amount (000)#			Value
CONVERTIBLE BOND    0.2%
Banks
WFC Targa Resources Corp., Sr. Unsec’d. Notes, 144A, MTN(g)^ (cost $777,162)		8.030	%		07/21/17		1,297		$	716,203
CORPORATE BONDS    21.3%
Advertising    0.1%
Acosta, Inc., Sr. Unsec’d. Notes, 144A		7.750			10/01/22		275			233,063
Aerospace & Defense    0.1%
Arconic, Inc., Sr. Unsec’d. Notes		5.125			10/01/24		115			120,463
Orbital ATK, Inc., Gtd. Notes		5.250			10/01/21		75			77,625
StandardAero Aviation Holdings, Inc., Gtd. Notes, 144A		10.000			07/15/23		150			163,875
TransDigm, Inc.,
Gtd. Notes		6.375			06/15/26		50			50,375
Gtd. Notes		6.500			07/15/24		125			128,437
										540,775
Agriculture    0.0%
Vector Group Ltd., Sr. Sec’d. Notes, 144A		6.125			02/01/25		100			103,500
Auto Manufacturer    0.1%
Fiat Chrysler Automobiles NV (United Kingdom), Sr. Unsec’d. Notes		5.250			04/15/23		200			205,500
Auto Parts & Equipment    0.5%
Adient Global Holdings Ltd., Gtd. Notes, 144A		4.875			08/15/26		200			200,500
Allison Transmission, Inc., Gtd. Notes, 144A		5.000			10/01/24		100			101,875
American Axle & Manufacturing, Inc.,
Gtd. Notes		7.750			11/15/19		150			165,187
Gtd. Notes, 144A		6.250			04/01/25		125			124,375
Gtd. Notes, 144A		6.500			04/01/27		75			74,438
Cooper-Standard Automotive, Inc., Gtd. Notes, 144A		5.625			11/15/26		125			126,719
Dana Financing Luxembourg Sarl, Gtd. Notes, 144A		5.750			04/15/25		125			128,048
Dana, Inc., Sr. Unsec’d. Notes		5.500			12/15/24		100			101,750
Meritor, Inc., Gtd. Notes		6.750			06/15/21		250	��		259,375
Nemak SAB de CV (Mexico), Sr. Unsec’d. Notes, 144A		5.500			02/28/23		200			205,250
Schaeffler Finance BV (Germany), Sr. Sec’d. Notes, 144A		4.750			05/15/23		200			208,500

See Notes to Financial Statements.

Prudential Income Builder Fund 15

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Auto Parts & Equipment (cont’d.)
TI Group Automotive Systems LLC (United Kingdom), Gtd. Notes, 144A		8.750	%		07/15/23		150	$	160,500
ZF North America Capital, Inc. (Germany), Gtd. Notes, 144A		4.750			04/29/25		250		260,017
									2,116,534
Banks    0.1%
Bank of America Corp., Jr. Sub. Notes		8.125	(c)		12/29/49		25		26,188
BBVA Bancomer SA (Mexico), Sub. Notes, 144A		6.750			09/30/22		200		226,160
Citigroup, Inc., Jr. Sub. Notes		5.950	(c)		12/31/49		100		105,160
									357,508
Beverages    0.1%
Cott Holdings, Inc. (Canada), Gtd. Notes, 144A		5.500			04/01/25		200		203,500
Biotechnology    0.0%
Concordia International Corp. (Canada), Sr. Sec’d. Notes, 144A(a)		9.000			04/01/22		100		69,500
Building Materials    0.4%
BMC East LLC, Sr. Sec’d. Notes, 144A		5.500			10/01/24		150		156,187
Builders FirstSource, Inc.,
Gtd. Notes, 144A		10.750			08/15/23		175		204,312
Sr. Sec’d. Notes, 144A		5.625			09/01/24		75		77,813
Cemex SAB de CV (Mexico), Sr. Sec’d. Notes, 144A		5.700			01/11/25		200		209,000
Griffon Corp., Gtd. Notes		5.250			03/01/22		280		286,300
James Hardie International Finance Ltd. (Ireland), Gtd. Notes, 144A		5.875			02/15/23		200		209,500
Standard Industries, Inc.,
Sr. Unsec’d. Notes, 144A(g)		5.125			02/15/21		50		52,313
Sr. Unsec’d. Notes, 144A(g)		5.375			11/15/24		100		104,250
Summit Materials LLC/Summit Materials Finance Corp.,
Gtd. Notes		6.125			07/15/23		150		157,125
Gtd. Notes		8.500			04/15/22		100		112,250
US Concrete, Inc.,
Gtd. Notes		6.375			06/01/24		100		104,500
Gtd. Notes, 144A		6.375			06/01/24		175		182,875
									1,856,425

See Notes to Financial Statements.

16

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Chemicals    1.0%
A Schulman, Inc., Gtd. Notes		6.875	%		06/01/23		295	$	311,225
Alpha 3 BV/Alpha US Bidco, Inc. (United Kingdom), Gtd. Notes, 144A		6.250			02/01/25		200		203,000
Ashland LLC, Gtd. Notes		6.875			05/15/43		100		109,500
Blue Cube Spinco, Inc.,
Gtd. Notes		9.750			10/15/23		70		84,700
Gtd. Notes		10.000			10/15/25		125		154,062
Chemours Co. (The),
Gtd. Notes		6.625			05/15/23		200		214,000
Gtd. Notes		7.000			05/15/25		110		120,863
CVR Partners LP/CVR Nitrogen Finance Corp., Sec’d. Notes, 144A		9.250			06/15/23		100		102,125
Eco Services Operations LLC/Eco Finance Corp., Sr. Unsec’d. Notes, 144A(g)		8.500			11/01/22		145		152,975
GCP Applied Technologies, Inc., Gtd. Notes, 144A		9.500			02/01/23		75		85,500
Hexion, Inc.,
Sec’d. Notes, 144A		13.750			02/01/22		220		216,150
Sr. Sec’d. Notes, 144A		10.375			02/01/22		155		158,875
Hexion, Inc./Hexion Nova Scotia Finance ULC, Sec’d. Notes		9.000			11/15/20		175		135,625
Kraton Polymers LLC/Kraton Polymers Capital Corp., Gtd. Notes, 144A		7.000			04/15/25		50		52,500
Mexichem SAB de CV (Mexico), Gtd. Notes, 144A		6.750			09/19/42		200		214,500
Platform Specialty Products Corp.,
Sr. Unsec’d. Notes, 144A		6.500			02/01/22		90		92,250
Sr. Unsec’d. Notes, 144A		10.375			05/01/21		175		194,906
PQ Corp., Sr. Sec’d. Notes, 144A(g)		6.750			11/15/22		50		54,250
Rain CII Carbon LLC/CII Carbon Corp., Sec’d. Notes, 144A		7.250			04/01/25		250		250,625
TPC Group, Inc., Sr. Sec’d. Notes, 144A(g)		8.750			12/15/20		650		604,500
Tronox Finance LLC,
Gtd. Notes		6.375			08/15/20		225		228,656
Gtd. Notes, 144A(a)		7.500			03/15/22		185		193,325
Unifrax I LLC/Unifrax Holding Co.,
Gtd. Notes, 144A(g)		7.500			02/15/19		375		375,037
									4,309,149
Coal    0.2%
Alliance Resource Operating Partners LP/Alliance Resource Finance Corp., Gtd. Notes, 144A		7.500			05/01/25		200		207,500

See Notes to Financial Statements.

Prudential Income Builder Fund 17

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Coal (cont’d.)
CONSOL Energy, Inc.,
Gtd. Notes		5.875	%		04/15/22		475	$	463,125
Gtd. Notes		8.000			04/01/23		100		104,187
Peabody Energy Corp., Sr. Sec’d. Notes, 144A		6.375			03/31/25		182		184,730
									959,542
Commercial Services    0.9%
Ahern Rentals, Inc., Sec’d. Notes, 144A		7.375			05/15/23		175		150,500
AMN Healthcare, Inc., Gtd. Notes, 144A		5.125			10/01/24		25		25,250
Ashtead Capital, Inc. (United Kingdom), Sec’d. Notes, 144A		6.500			07/15/22		200		207,750
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., Gtd. Notes, 144A		5.125			06/01/22		75		72,938
Jaguar Holding Co. II/Pharmaceutical Product Development LLC, Company Guarnt, 144A(g)		6.375			08/01/23		425		443,062
Laureate Education, Inc.,
Gtd. Notes, 144A		10.000			09/01/19		1,145		1,202,250
Sr. Unsec’d. Notes, 144A		8.250			05/01/25		675		693,562
NES Rentals Holdings, Inc., Sec’d. Notes, 144A(g)		7.875			05/01/18		225		225,281
R.R. Donnelley & Sons Co., Sr. Unsec’d. Notes		6.500			11/15/23		100		97,625
United Rentals North America, Inc.,
Gtd. Notes		5.500			07/15/25		75		78,445
Gtd. Notes		5.500			05/15/27		150		154,313
Gtd. Notes		5.750			11/15/24		275		290,812
Gtd. Notes		5.875			09/15/26		200		211,000
Gtd. Notes		7.625			04/15/22		33		34,444
									3,887,232
Computers    0.3%
Dell International LLC/EMC Corp.,
Gtd. Notes, 144A		5.875			06/15/21		100		106,000
Gtd. Notes, 144A		7.125			06/15/24		100		110,534
Sr. Sec’d. Notes, 144A		5.450			06/15/23		85		91,729
NCR Corp., Gtd. Notes		6.375			12/15/23		100		107,200
Western Digital Corp., Gtd. Notes		10.500			04/01/24		660		777,150
									1,192,613

See Notes to Financial Statements.

18

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Containers & Packaging    0.5%
ARD Finance SA (Luxembourg), Sr. Sec’d. Notes, PIK, 144A		7.125	%		09/15/23		200	$	207,500
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. (Ireland),
Gtd. Notes, 144A		6.000			02/15/25		200		206,750
Gtd. Notes, 144A		7.250			05/15/24		450		489,937
Coveris Holdings SA (Luxembourg), Gtd. Notes, 144A		7.875			11/01/19		200		197,500
Owens-Brockway Glass Container, Inc., Gtd. Notes, 144A		6.375			08/15/25		50		54,375
PaperWorks Industries, Inc., Sr. Sec’d. Notes, 144A		9.500			08/15/19		150		115,500
Plastipak Holdings, Inc., Sr. Unsec’d. Notes, 144A(g)		6.500			10/01/21		300		308,250
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC (New Zealand), Gtd. Notes, 144A		7.000			07/15/24		350		376,687
Sealed Air Corp., Gtd. Notes, 144A		4.875			12/01/22		25		26,063
									1,982,562
Distribution/Wholesale    0.2%
Beacon Roofing Supply, Inc., Gtd. Notes		6.375			10/01/23		125		134,687
Global Partners LP/GLP Finance Corp.,
Gtd. Notes		6.250			07/15/22		50		49,500
Gtd. Notes		7.000			06/15/23		350		346,500
H&E Equipment Services, Inc., Gtd. Notes		7.000			09/01/22		250		261,400
									792,087
Diversified Financial Services    0.3%
Alliance Data Systems Corp., Gtd. Notes, 144A		5.375			08/01/22		145		145,906
Ally Financial, Inc.,
Gtd. Notes		8.000			03/15/20		100		112,875
Sr. Unsec’d. Notes		4.250			04/15/21		25		25,563
CIT Group, Inc., Sr. Unsec’d. Notes		5.000			08/15/22		150		161,370
FBM Finance, Inc., Sr. Sec’d. Notes, 144A		8.250			08/15/21		100		108,000
KCG Holdings, Inc., Sr. Sec’d. Notes, 144A		6.875			03/15/20		100		104,000
LPL Holdings, Inc., Gtd. Notes, 144A		5.750			09/15/25		125		126,875
Navient Corp.,
Sr. Unsec’d. Notes		5.875			10/25/24		200		194,500
Sr. Unsec’d. Notes, MTN		6.125			03/25/24		25		24,750
Sr. Unsec’d. Notes		6.625			07/26/21		50		52,937
Sr. Unsec’d. Notes		7.250			09/25/23		75		78,375
Sr. Unsec’d. Notes, MTN		8.000			03/25/20		100		109,750

See Notes to Financial Statements.

Prudential Income Builder Fund 19

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Diversified Financial Services (cont’d.)
OneMain Financial Holdings LLC, Gtd. Notes, 144A(g)		6.750	%		12/15/19		25	$	26,281
Springleaf Finance Corp., Gtd. Notes		6.000			06/01/20		50		51,188
									1,322,370
Diversified Machinery    0.1%
ATS Automation Tooling Systems, Inc. (Canada), Sr. Unsec’d. Notes, 144A		6.500			06/15/23		275		286,000
Cleaver-Brooks, Inc., Sr. Sec’d. Notes, 144A(g)		8.750			12/15/19		25		25,813
Cloud Crane LLC, Sec’d. Notes, 144A(g)		10.125			08/01/24		275		293,562
									605,375
Electric    1.1%
AES Corp.,
Sr. Unsec’d. Notes		5.500			04/15/25		175		179,375
Sr. Unsec’d. Notes		7.375			07/01/21		175		199,500
Calpine Corp.,
Sr. Unsec’d. Notes(a)		5.375			01/15/23		550		541,750
Sr. Unsec’d. Notes		5.500			02/01/24		150		144,750
Sr. Unsec’d. Notes		5.750			01/15/25		50		48,375
DPL, Inc.,
Sr. Unsec’d. Notes		6.750			10/01/19		250		261,875
Sr. Unsec’d. Notes		7.250			10/15/21		75		80,250
Dynegy, Inc.,
Gtd. Notes		5.875			06/01/23		300		264,750
Gtd. Notes		6.750			11/01/19		268		272,020
Gtd. Notes(a)		7.625			11/01/24		1,000		915,000
Gtd. Notes		8.034			02/02/24		125		114,688
GenOn Energy, Inc.,
Sr. Unsec’d. Notes (original cost $223,668; purchased 07/7/15 - 09/29/15)(f)(g)		7.875			06/15/17		225		154,687
Sr. Unsec’d. Notes (original cost $265,781; purchased 09/29/14 - 12/08/15)(a)(f)(g)		9.875			10/15/20		275		172,562
Listrindo Capital BV (Indonesia), Gtd. Notes, 144A		4.950			09/14/26		200		197,000
Mirant Mid-Atlantic Series B Pass Through Trust, Pass-Through Certificates (original cost $145,877; purchased 02/26/16)(f)(g)		9.125			06/30/17		153		139,767
NRG Energy, Inc.,
Gtd. Notes		6.250			05/01/24		244		243,146
Gtd. Notes		6.625			03/15/23		217		220,255
Gtd. Notes		7.250			05/15/26		150		153,375
Gtd. Notes		7.875			05/15/21		49		50,225

See Notes to Financial Statements.

20

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Electric (cont’d.)
NRG REMA LLC,
Pass-Through Certificates(g)		9.237	%		07/02/17		8	$	6,794
Pass-Through Certificates(g)		9.681			07/02/26		225		162,000
									4,522,144
Electrical Components & Equipment     0.0%
Belden, Inc., Gtd. Notes, 144A		5.250			07/15/24		75		75,750
Engineering & Construction     0.2%
AECOM,
Gtd. Notes		5.875			10/15/24		175		187,775
Gtd. Notes, 144A		5.125			03/15/27		125		125,144
Delhi International Airport Ltd. (India), Sr. Sec’d. Notes, 144A		6.125			10/31/26		200		212,771
Odebrecht Finance Ltd. (Brazil), Gtd. Notes, RegS(g)		7.125			06/26/42		200		90,000
									615,690
Entertainment     0.9%
AMC Entertainment Holdings, Inc.,
Gtd. Notes		5.750			06/15/25		300		309,375
Gtd. Notes, 144A		5.875			11/15/26		50		50,906
Carmike Cinemas, Inc., Sec’d. Notes, 144A		6.000			06/15/23		125		133,125
Cinemark USA, Inc., Gtd. Notes		4.875			06/01/23		350		355,250
Eldorado Resorts, Inc.,
Gtd. Notes		7.000			08/01/23		200		216,000
Sr. Unsec’d. Notes, 144A		6.000			04/01/25		50		51,688
GLP Capital LP/GLP Financing II, Inc.,
Gtd. Notes		5.375			11/01/23		75		81,000
Gtd. Notes		5.375			04/15/26		75		79,125
Greektown Holdings LLC/Greektown Mothership Corp., Sec’d. Notes, 144A		8.875			03/15/19		75		78,328
International Game Technology PLC, Sr. Sec’d. Notes, 144A		6.500			02/15/25		200		219,000
Jacobs Entertainment, Inc., Sec’d. Notes, 144A		7.875			02/01/24		50		52,250
National CineMedia LLC,
Sr. Sec’d. Notes		6.000			04/15/22		100		102,750
Sr. Unsec’d. Notes		5.750			08/15/26		100		102,000
Penn National Gaming, Inc., Sr. Unsec’d. Notes, 144A		5.625			01/15/27		75		75,563

See Notes to Financial Statements.

Prudential Income Builder Fund 21

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Entertainment (cont’d.)
Pinnacle Entertainment, Inc., Sr. Unsec’d. Notes, 144A		5.625	%		05/01/24		350	$	361,375
Regal Entertainment Group, Sr. Unsec’d. Notes		5.750			06/15/23		75		78,937
Scientific Games International, Inc.,
Gtd. Notes		6.625			05/15/21		800		771,000
Gtd. Notes		10.000			12/01/22		375		406,875
Sr. Sec’d. Notes, 144A		7.000			01/01/22		150		160,593
									3,685,140
Environmental Control     0.1%
Advanced Disposal Services, Inc., Gtd. Notes, 144A		5.625			11/15/24		125		128,594
Clean Harbors, Inc., Gtd. Notes		5.125			06/01/21		150		153,624
									282,218
Food     0.7%
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, Sr. Unsec’d. Notes, 144A		5.750			03/15/25		375		364,687
Clearwater Seafoods, Inc. (Canada), Sr. Unsec’d. Notes, 144A		6.875			05/01/25		50		51,750
Darling Ingredients, Inc., Gtd. Notes		5.375			01/15/22		100		103,625
ESAL GmbH (Brazil), Gtd. Notes, 144A		6.250			02/05/23		200		202,750
Hearthside Group Holdings LLC/Hearthside Finance Co., Gtd. Notes, 144A		6.500			05/01/22		225		226,687
Ingles Markets, Inc., Sr. Unsec’d. Notes		5.750			06/15/23		135		135,675
JBS USA LLC/JBS USA Finance, Inc. (Brazil),
Gtd. Notes, 144A(g)		5.750			06/15/25		250		258,125
Gtd. Notes, 144A(g)		5.875			07/15/24		250		260,625
Gtd. Notes, 144A(g)		7.250			06/01/21		350		359,625
Pilgrim’s Pride Corp., Gtd. Notes, 144A		5.750			03/15/25		100		104,000
Post Holdings, Inc., Gtd. Notes, 144A		8.000			07/15/25		400		455,000
Shearer’s Foods LLC/Chip Finance Corp., Sr. Sec’d. Notes, 144A		9.000			11/01/19		150		156,938
SUPERVALU, Inc., Sr. Unsec’d. Notes(a)		7.750			11/15/22		400		409,000
									3,088,487
Forest Products & Paper     0.0%
Mercer International, Inc. (Canada), Gtd. Notes, 144A		6.500			02/01/24		50		51,625

See Notes to Financial Statements.

22

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Gas     0.1%
AmeriGas Partners LP/AmeriGas Finance Corp.,
Sr. Unsec’d. Notes		5.625	%		05/20/24		75	$	76,313
Sr. Unsec’d. Notes		5.875			08/20/26		225		228,375
NGL Energy Partners LP/NGL Energy Finance Corp., Gtd. Notes, 144A		7.500			11/01/23		100		100,000
									404,688
Hand/Machine Tools     0.0%
Apex Tool Group LLC, Gtd. Notes, 144A(g)		7.000			02/01/21		100		92,500
Healthcare-Products     0.2%
Greatbatch Ltd., Gtd. Notes, 144A		9.125			11/01/23		175		183,750
Mallinckrodt International Finance SA, Gtd. Notes(a)		4.750			04/15/23		450		383,625
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostic SA, Sr. Unsec’d. Notes, 144A		6.625			05/15/22		86		79,120
									646,495
Healthcare-Services     1.4%
Acadia Healthcare Co., Inc.,
Gtd. Notes		5.625			02/15/23		368		380,784
Gtd. Notes		6.500			03/01/24		50		53,000
Centene Corp., Sr. Unsec’d. Notes		4.750			05/15/22		125		129,687
CHS/Community Health Systems, Inc.,
Gtd. Notes(a)		6.875			02/01/22		1,000		827,500
Gtd. Notes(a)		7.125			07/15/20		350		314,125
Gtd. Notes		8.000			11/15/19		75		72,986
Sr. Sec’d. Notes		6.250			03/31/23		125		127,188
Eagle Holding Co. II LLC, Sr. Unsec’d. Notes, PIK, 144A		7.625			05/15/22		25		25,469
HCA, Inc., Gtd. Notes		5.375			02/01/25		1,070		1,114,137
HealthSouth Corp.,
Gtd. Notes		5.125			03/15/23		25		25,094
Gtd. Notes		5.750			11/01/24		150		152,812
Gtd. Notes		5.750			09/15/25		75		75,844
Kindred Healthcare, Inc.,
Gtd. Notes		8.000			01/15/20		300		309,750
Gtd. Notes		8.750			01/15/23		175		179,594
LifePoint Health, Inc., Gtd. Notes		5.875			12/01/23		75		77,438
MPH Acquisition Holdings LLC, Gtd. Notes, 144A		7.125			06/01/24		75		80,625
Select Medical Corp., Gtd. Notes		6.375			06/01/21		425		434,562

See Notes to Financial Statements.

Prudential Income Builder Fund 23

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Healthcare-Services (cont’d.)
Surgery Center Holdings, Inc., Gtd. Notes, 144A		8.875	%		04/15/21		100	$	106,250
Tenet Healthcare Corp.,
Sr. Sec’d. Notes		4.750			06/01/20		150		152,250
Sr. Unsec’d. Notes		6.750			02/01/20		475		479,750
Sr. Unsec’d. Notes(a)		6.750			06/15/23		475		453,625
Sr. Unsec’d. Notes		8.125			04/01/22		525		532,875
									6,105,345
Home Builders     0.8%
Beazer Homes USA, Inc.,
Gtd. Notes		5.750			06/15/19		50		52,375
Gtd. Notes		7.250			02/01/23		100		104,750
Gtd. Notes		8.750			03/15/22		225		250,312
Gtd. Notes, 144A		6.750			03/15/25		100		102,250
Brookfield Residential Properties, Inc. (Canada),
Gtd. Notes, 144A		6.375			05/15/25		75		78,188
Gtd. Notes, 144A		6.500			12/15/20		125		129,687
CalAtlantic Group, Inc.,
Gtd. Notes		5.250			06/01/26		75		77,063
Gtd. Notes		5.375			10/01/22		25		26,688
Gtd. Notes		8.375			01/15/21		200		235,000
KB Home,
Gtd. Notes		7.250			06/15/18		150		157,125
Gtd. Notes		7.500			09/15/22		100		113,063
Gtd. Notes		7.625			05/15/23		125		138,437
Lennar Corp.,
Gtd. Notes		4.750			05/30/25		185		188,237
Gtd. Notes		4.875			12/15/23		65		67,275
M/I Homes, Inc., Gtd. Notes		6.750			01/15/21		75		78,563
Mattamy Group Corp. (Canada), Sr. Unsec’d. Notes, 144A(g)		6.875			12/15/23		125		129,687
Meritage Homes Corp.,
Gtd. Notes		6.000			06/01/25		50		53,275
Gtd. Notes		7.000			04/01/22		50		56,750
New Home Co., Inc. (The), Sr. Unsec’d. Notes, 144A		7.250			04/01/22		50		52,000
PulteGroup, Inc.,
Gtd. Notes		5.000			01/15/27		125		126,562
Gtd. Notes		5.500			03/01/26		175		184,625
Shea Homes LP/Shea Homes Funding Corp.,
Gtd. Notes, 144A		5.875			04/01/23		75		75,750
Gtd. Notes, 144A		6.125			04/01/25		150		151,500

See Notes to Financial Statements.

24

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Home Builders (cont’d.)
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., Gtd. Notes, 144A		5.875	%		04/15/23		425	$	452,625
WCI Communities, Inc./Lennar Corp., Gtd. Notes		6.875			08/15/21		75		78,563
William Lyon Homes, Inc.,
Gtd. Notes		7.000			08/15/22		200		209,000
Gtd. Notes, 144A		5.875			01/31/25		225		230,625
									3,599,975
Home Furnishings     0.1%
Tempur Sealy International, Inc., Gtd. Notes		5.500			06/15/26		200		198,876
Household Products/Wares    0.0%
ACCO Brands Corp., Gtd. Notes, 144A		5.250			12/15/24		50		51,500
Housewares     0.0%
Scotts Miracle-Gro Co. (The), Gtd. Notes		6.000			10/15/23		50		53,438
Internet     0.0%
Zayo Group LLC/Zayo Capital, Inc., Gtd. Notes, 144A		5.750			01/15/27		125		132,656
Iron/Steel     0.1%
AK Steel Corp., Sr. Sec’d. Notes		7.500			07/15/23		150		163,312
Cliffs Natural Resources, Inc., Gtd. Notes, 144A		5.750			03/01/25		75		72,375
Signode Industrial Group Lux SA/Signode Industrial Group US, Inc., Gtd. Notes, 144A(g)		6.375			05/01/22		225		231,775
									467,462
Leisure Time     0.1%
Silversea Cruise Finance Ltd. (Bahamas), Sr. Sec’d. Notes, 144A		7.250			02/01/25		100		106,000
Viking Cruises Ltd.,
Sr. Unsec’d. Notes, 144A(g)		6.250			05/15/25		175		168,438
Sr. Unsec’d. Notes, 144A(g)		8.500			10/15/22		125		130,625
									405,063
Lodging     0.5%
Boyd Gaming Corp.,
Gtd. Notes		6.375			04/01/26		50		53,875
Gtd. Notes		6.875			05/15/23		400		430,500

See Notes to Financial Statements.

Prudential Income Builder Fund 25

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Lodging (cont’d.)
Caesars Entertainment Resort Properties LLC/Caesars Entertainment Resort Properties, Sr. Sec’d. Notes		8.000	%		10/01/20		75	$	78,182
Golden Nugget, Inc., Sr. Unsec’d. Notes, 144A		8.500			12/01/21		425		453,687
Interval Acquisition Corp., Gtd. Notes		5.625			04/15/23		75		77,250
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., Sec’d. Notes, 144A		10.250			11/15/22		100		108,375
Sr. Sec’d. Notes, 144A		6.750			11/15/21		200		209,000
MGM Resorts International, Gtd. Notes		6.625			12/15/21		225		252,563
Gtd. Notes		6.750			10/01/20		50		55,625
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., Sr. Sec’d. Notes, 144A(g)		6.375			06/01/21		400		407,680
									2,126,737
Machinery-Construction & Mining    0.0%
Blueline Rental Finance Corp./Blueline Rental LLC, Sec’d. Notes, 144A		9.250			03/15/24		25		26,125
Media    2.0%
Block Communications, Inc., Sr. Unsec’d. Notes, 144A(g)		6.875			02/15/25		100		107,750
Cablevision SA (Argentina), Sr. Unsec’d. Notes, RegS		6.500			06/15/21		150		159,750
CCO Holdings LLC/CCO Holdings Capital Corp.,
Sr. Unsec’d. Notes		5.750			01/15/24		275		289,437
Sr. Unsec’d. Notes, 144A		5.375			05/01/25		50		52,125
Sr. Unsec’d. Notes, 144A		5.500			05/01/26		100		104,938
Sr. Unsec’d. Notes, 144A		5.750			02/15/26		50		53,109
Sr. Unsec’d. Notes, 144A		5.875			05/01/27		425		452,094
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
Sr. Sec’d. Notes, 144A		7.750			07/15/25		1,000		1,115,000
Sr. Unsec’d. Notes, 144A		5.125			12/15/21		305		311,862
Sr. Unsec’d. Notes, 144A		5.125			12/15/21		425		434,562
Sr. Unsec’d. Notes, 144A		6.375			09/15/20		74		76,267

See Notes to Financial Statements.

26

Description	Interest Rate			Maturity Date		Principal Amount (000)#			Value
CORPORATE BONDS (Continued)
Media (cont’d.)
Clear Channel Worldwide Holdings, Inc.,
Gtd. Notes		6.500	%		11/15/22		87		$	88,740
Gtd. Notes		7.625			03/15/20		230			228,275
Gtd. Notes		7.625			03/15/20		240			242,700
CSC Holdings LLC, Sr. Unsec’d. Notes		7.875			02/15/18		350			364,875
DISH DBS Corp.,
Gtd. Notes		6.750			06/01/21		200			217,500
Gtd. Notes		7.750			07/01/26		615			720,319
Gray Television, Inc., Gtd. Notes, 144A		5.875			07/15/26		225			232,875
Mediacom Broadband LLC/Mediacom Broadband Corp., Sr. Unsec’d. Notes		6.375			04/01/23		155			163,138
Midcontinent Communications/Midcontinent Finance Corp., Gtd. Notes, 144A		6.875			08/15/23		180	��		193,050
Nexstar Broadcasting, Inc., Gtd. Notes, 144A		5.625			08/01/24		175			179,375
Quebecor Media, Inc. (Canada), Sr. Unsec’d. Notes		5.750			01/15/23		275			289,437
SFR Group SA (France), Sr. Sec’d. Notes, 144A		7.375			05/01/26		1,100			1,156,375
Sinclair Television Group, Inc.,
Gtd. Notes, 144A		5.125			02/15/27		150			148,875
Gtd. Notes, 144A		5.625			08/01/24		80			83,188
Gtd. Notes, 144A		5.875			03/15/26		50			52,063
TEGNA, Inc., Gtd. Notes		6.375			10/15/23		200			212,500
Tribune Media Co., Gtd. Notes		5.875			07/15/22		175			183,841
Univision Communications, Inc., Sr. Sec’d. Notes, 144A(g)		6.750			09/15/22		200			209,500
UPCB Finance IV Ltd. (Netherlands), Sr. Sec’d. Notes, 144A		5.375			01/15/25		75			76,313
VTR Finance BV (Chile), Sr. Sec’d. Notes, 144A		6.875			01/15/24		200			212,500
Ziggo Bond Finance BV (Netherlands), Sr. Unsec’d. Notes, 144A		6.000			01/15/27		150			153,000
										8,565,333
Metal Fabricate & Hardware    0.1%
Grinding Media, Inc./MC Grinding Media Canada, Inc., Sr. Sec’d. Notes, 144A(g)		7.375			12/15/23		50			53,340
Novelis Corp., Gtd. Notes, 144A		5.875			09/30/26		125			128,437
Zekelman Industries, Inc., Sr. Sec’d. Notes, 144A		9.875			06/15/23		200			226,000
										407,777

See Notes to Financial Statements.

Prudential Income Builder Fund 27

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Metals & Mining    0.1%
VM Holding SA (Brazil), Gtd. Notes, 144A^		5.375	%		05/04/27		210	$	208,001
Mining    1.1%
Alcoa Nederland Holding BV, Gtd. Notes, 144A		6.750			09/30/24		200		218,800
Constellium NV (Netherlands), Sr. Unsec’d. Notes, 144A		6.625			03/01/25		250		246,250
Eldorado Gold Corp. (Canada), Gtd. Notes, 144A		6.125			12/15/20		140		143,850
First Quantum Minerals Ltd. (Canada),
Gtd. Notes, 144A		7.250			05/15/22		200		206,000
Gtd. Notes, 144A		7.250			04/01/23		200		203,625
FMG Resources August 2006 Pty Ltd. (Australia), Sr. Sec’d. Notes, 144A		9.750			03/01/22		315		362,447
Freeport-McMoRan, Inc.,
Gtd. Notes		2.375			03/15/18		100		99,500
Gtd. Notes(a)		3.550			03/01/22		250		235,000
Gtd. Notes		3.875			03/15/23		345		319,988
Gtd. Notes, 144A		6.625			05/01/21		102		104,550
Gtd. Notes, 144A		6.750			02/01/22		100		104,375
IAMGOLD Corp. (Canada), Gtd. Notes, 144A		7.000			04/15/25		200		200,500
International Wire Group, Inc., Sec’d. Notes, 144A(g)		10.750			08/01/21		250		245,000
Joseph T Ryerson & Son, Inc., Sr. Sec’d. Notes, 144A		11.000			05/15/22		75		84,657
Kinross Gold Corp. (Canada), Gtd. Notes		5.950			03/15/24		150		160,830
Lundin Mining Corp. (Canada),
Sr. Sec’d. Notes, 144A		7.500			11/01/20		100		106,000
Sr. Sec’d. Notes, 144A		7.875			11/01/22		175		192,281
New Gold, Inc. (Canada),
Gtd. Notes, 144A(a)		6.250			11/15/22		350		357,000
Gtd. Notes, 144A		7.000			04/15/20		125		126,641
Petra Diamonds US Treasury PLC (South Africa), Sec’d. Notes, 144A		7.250			05/01/22		200		209,000
Southern Copper Corp. (Peru), Sr. Unsec’d. Notes		6.750			04/16/40		100		113,535
Teck Resources Ltd. (Canada), Gtd. Notes		4.750			01/15/22		720		745,200
									4,785,029
Miscellaneous Manufacturing    0.3%
Amsted Industries, Inc., Gtd. Notes, 144A(g)		5.000			03/15/22		166		170,150
Bombardier, Inc. (Canada),
Sr. Unsec’d. Notes, 144A		7.500			03/15/25		350		364,000
Sr. Unsec’d. Notes, 144A		8.750			12/01/21		400		445,000

See Notes to Financial Statements.

28

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Miscellaneous Manufacturing (cont’d.)
EnPro Industries, Inc., Gtd. Notes		5.875	%		09/15/22		75	$	78,750
Gates Global LLC/Gates Global Co., Gtd. Notes, 144A(g)		6.000			07/15/22		175		175,875
									1,233,775
Office/Business Equipment    0.0%
CDW LLC/CDW Finance Corp.,
Gtd. Notes		5.500			12/01/24		150		159,750
Gtd. Notes		5.000			09/01/25		50		51,250
									211,000
Oil & Gas    1.1%
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., Gtd. Notes, 144A		7.875			12/15/24		75		78,750
Antero Resources Corp.,
Gtd. Notes		5.375			11/01/21		100		103,250
Gtd. Notes		5.625			06/01/23		175		180,031
Ascent Resources Utica Holdings LLC/ARU Finance Corp., Sr. Unsec’d. Notes, 144A		10.000			04/01/22		241		249,134
California Resources Corp.,
Gtd. Notes		6.000			11/15/24		13		9,230
Sec’d. Notes, 144A		8.000			12/15/22		227		173,655
Concho Resources, Inc., Gtd. Notes		5.500			04/01/23		100		103,688
Covey Park Energy LLC / Covey Park Finance Corp., Gtd. Notes, 144A		7.500			05/15/25		75		76,125
Diamondback Energy, Inc., Gtd. Notes, 144A		5.375			05/31/25		100		103,500
Endeavor Energy Resources LP/EER Finance, Inc.,
Sr. Unsec’d. Notes, 144A		7.000			08/15/21		215		223,600
Sr. Unsec’d. Notes, 144A		8.125			09/15/23		125		133,125
Halcon Resources Corp., Gtd. Notes, 144A(a)		6.750			02/15/25		325		312,000
Hilcorp Energy I LP/Hilcorp Finance Co., Sr. Unsec’d. Notes, 144A(g)		5.750			10/01/25		150		145,500
MEG Energy Corp. (Canada),
Gtd. Notes, 144A		6.375			01/30/23		275		242,000
Gtd. Notes, 144A		7.000			03/31/24		75		66,938
Sec’d. Notes, 144A		6.500			01/15/25		175		172,812
Newfield Exploration Co., Sr. Unsec’d. Notes		5.375			01/01/26		175		183,531
Noble Holding International Ltd. (United Kingdom), Gtd. Notes		7.750			01/15/24		100		91,250
Range Resources Corp.,
Gtd. Notes		4.875			05/15/25		150		144,000
Gtd. Notes, 144A		5.000			08/15/22		25		24,719
Gtd. Notes, 144A		5.000			03/15/23		75		74,250
Gtd. Notes, 144A		5.875			07/01/22		260		265,850

See Notes to Financial Statements.

Prudential Income Builder Fund 29

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Oil & Gas (cont’d.)
Rice Energy, Inc.,
Gtd. Notes		6.250	%		05/01/22		75	$	78,422
Gtd. Notes		7.250			05/01/23		125		135,000
RSP Permian, Inc., Gtd. Notes, 144A		5.250			01/15/25		175		177,625
Sunoco LP/Sunoco Finance Corp.,
Gtd. Notes		5.500			08/01/20		100		103,375
Gtd. Notes		6.375			04/01/23		361		384,465
Tesoro Corp.,
Gtd. Notes, 144A		4.750			12/15/23		100		104,750
Gtd. Notes, 144A		5.125			12/15/26		150		159,750
Western Refining Logistics LP/WNRL Finance Corp., Gtd. Notes		7.500			02/15/23		125		135,000
Western Refining, Inc., Gtd. Notes		6.250			04/01/21		150		154,875
WPX Energy, Inc.,
Sr. Unsec’d. Notes		6.000			01/15/22		115		116,725
Sr. Unsec’d. Notes		7.500			08/01/20		50		53,000
Sr. Unsec’d. Notes		8.250			08/01/23		100		111,500
									4,871,425
Oil & Gas Services    0.0%
SESI LLC, Gtd. Notes		6.375			05/01/19		50		49,688
Pharmaceuticals    0.8%
Endo Dac/Endo Finance LLC/Endo Finco, Inc.,
Gtd. Notes, 144A		6.000			07/15/23		400		350,500
Gtd. Notes, 144A		6.000			02/01/25		200		168,900
Endo Finance LLC, Gtd. Notes, 144A		5.750			01/15/22		175		161,875
Endo Finance LLC/Endo Finco, Inc., Gtd. Notes, 144A		5.375			01/15/23		275		235,812
Horizon Pharma, Inc., Gtd. Notes		6.625			05/01/23		200		197,750
Horizon Pharma, Inc./Horizon Pharma USA, Inc., Gtd. Notes, 144A		8.750			11/01/24		75		78,094
Nature’s Bounty Co. (The), Sr. Unsec’d. Notes, 144A(g)		7.625			05/15/21		350		371,875
Valeant Pharmaceuticals International, Inc.,
Gtd. Notes, 144A		5.375			03/15/20		200		171,500
Gtd. Notes, 144A		5.500			03/01/23		25		18,313
Gtd. Notes, 144A		6.125			04/15/25		375		276,844
Gtd. Notes, 144A		6.750			08/15/18		22		21,945
Gtd. Notes, 144A		7.500			07/15/21		925		765,437
Sr. Sec’d. Notes, 144A		6.500			03/15/22		75		76,781

See Notes to Financial Statements.

30

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Pharmaceuticals (cont’d.)
Vizient, Inc., Sr. Unsec’d. Notes, 144A		10.375	%		03/01/24		400	$	458,000
									3,353,626
Pipelines    0.3%
Antero Midstream Partners LP/Antero Midstream Finance Corp., Gtd. Notes, 144A		5.375			09/15/24		50		51,125
Energy Transfer Equity LP, Sr. Sec’d. Notes		7.500			10/15/20		75		84,516
Fermaca Enterprises S de RL de CV (Mexico), Sr. Sec’d. Notes, 144A(g)		6.375			03/30/38		236		244,041
Genesis Energy LP/Genesis Energy Finance Corp., Gtd. Notes		6.750			08/01/22		175		180,031
Rockies Express Pipeline LLC,
Sr. Unsec’d. Notes, 144A(g)		5.625			04/15/20		75		80,175
Sr. Unsec’d. Notes, 144A(g)		6.000			01/15/19		150		157,500
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., Gtd. Notes, 144A		5.500			09/15/24		125		125,625
Targa Resources Partners LP/Targa Resources Partners Finance Corp.,
Gtd. Notes		6.750			03/15/24		100		109,000
Gtd. Notes, 144A		5.125			02/01/25		50		51,625
Gtd. Notes, 144A		5.375			02/01/27		50		52,250
Tesoro Logistics LP/Tesoro Logistics Finance Corp., Gtd. Notes		6.375			05/01/24		125		136,562
									1,272,450
Real Estate    0.1%
Crescent Communities LLC/Crescent Venture, Inc., Sr. Sec’d. Notes, 144A		8.875			10/15/21		225		236,250
Greystar Real Estate Partners LLC, Sr. Sec’d. Notes, 144A(g)		8.250			12/01/22		100		108,000
Realogy Group LLC/Realogy Co-Issuer Corp., Gtd. Notes, 144A		4.875			06/01/23		125		126,250
									470,500
Real Estate Investment Trusts (REITs)    0.2%
FelCor Lodging LP, Gtd. Notes		6.000			06/01/25		100		106,750
MGM Growth Properties Operating Partnership LP/MGP Finance Co.-Issuer, Inc.,
Gtd. Notes		4.500			09/01/26		125		124,531
Gtd. Notes		5.625			05/01/24		50		53,938

See Notes to Financial Statements.

Prudential Income Builder Fund 31

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Real Estate Investment Trusts (REITs) (cont’d.)
MPT Operating Partnership LP/MPT Finance Corp.,
Gtd. Notes		6.375	%		02/15/22		75	$	77,531
Gtd. Notes		5.250			08/01/26		75		76,875
Gtd. Notes		6.375			03/01/24		75		81,187
RHP Hotel Properties LP/RHP Finance Corp., Gtd. Notes		5.000			04/15/21		200		203,750
Sabra Health Care LP/Sabra Capital Corp.,
Gtd. Notes		5.375			06/01/23		50		50,750
Gtd. Notes		5.500			02/01/21		100		103,750
									879,062
Retail    1.0%
1011778 BC ULC/New Red Finance, Inc. (Canada), Sec’d. Notes, 144A		6.000			04/01/22		75		78,187
Brinker International, Inc., Gtd. Notes, 144A		5.000			10/01/24		75		74,250
Caleres, Inc., Gtd. Notes		6.250			08/15/23		125		131,094
CEC Entertainment, Inc., Gtd. Notes		8.000			02/15/22		175		182,740
Claire’s Stores, Inc., Sr. Sec’d. Notes, 144A		9.000			03/15/19		100		46,250
CST Brands, Inc., Gtd. Notes		5.000			05/01/23		75		77,812
Cumberland Farms, Inc., Sr. Unsec’d. Notes, 144A		6.750			05/01/25		50		51,883
Dollar Tree, Inc., Gtd. Notes		5.750			03/01/23		50		53,050
Ferrellgas LP/Ferrellgas Finance Corp., Gtd. Notes		6.750			06/15/23		50		48,250
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.,
Sr. Unsec’d. Notes		8.625			06/15/20		200		194,250
Sr. Unsec’d. Notes, 144A		8.625			06/15/20		175		169,969
Hot Topic, Inc., Sr. Sec’d. Notes, 144A(g)		9.250			06/15/21		300		305,250
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, Gtd. Notes, 144A		5.250			06/01/26		100		102,500
L Brands, Inc., Gtd. Notes		6.750			07/01/36		250		242,187
Landry’s, Inc., Sr. Unsec’d. Notes, 144A(g)		6.750			10/15/24		325		340,437
Men’s Wearhouse, Inc. (The), Gtd. Notes(a)		7.000			07/01/22		350		304,500
Neiman Marcus Group Ltd. LLC, Gtd. Notes, 144A(a)		8.000			10/15/21		377		220,545
PetSmart, Inc., Sr. Unsec’d. Notes, 144A(a)		7.125			03/15/23		625		571,094
PF Chang’s China Bistro, Inc., Gtd. Notes, 144A		10.250			06/30/20		200		203,000
Rite Aid Corp., Gtd. Notes, 144A(a)		6.125			04/01/23		575		569,250
Ruby Tuesday, Inc., Gtd. Notes		7.625			05/15/20		225		217,125

See Notes to Financial Statements.

32

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Retail (cont’d.)
Sally Holdings LLC/Sally Capital, Inc., Gtd. Notes		5.625	%		12/01/25		75	$	77,438
Tops Holding LLC/Tops Markets II Corp., Sr. Sec’d. Notes, 144A(g)		8.000			06/15/22		175		153,125
									4,414,186
Semiconductors    0.2%
Micron Technology, Inc.,
Sr. Sec’d. Notes		7.500			09/15/23		100		112,000
Sr. Unsec’d. Notes, 144A		5.250			01/15/24		100		103,100
NXP BV/NXP Funding LLC (Netherlands), Gtd. Notes, 144A		4.625			06/15/22		200		214,750
Sensata Technologies BV, Gtd. Notes, 144A		5.000			10/01/25		325		331,906
									761,756
Software    1.1%
BMC Software Finance, Inc., Sr. Unsec’d. Notes, 144A		8.125			07/15/21		1,480		1,504,983
BMC Software, Inc., Sr. Unsec’d. Notes		7.250			06/01/18		68		70,040
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc., Sr. Unsec’d. Notes, 144A		5.750			03/01/25		120		123,150
First Data Corp., Gtd. Notes, 144A		7.000			12/01/23		1,125		1,206,225
Genesys Telecommunications Laboratories, Inc./Greeneden Lux 3 Sarl, Gtd. Notes, 144A		10.000			11/30/24		150		166,144
Infor Software Parent LLC/Infor Software Parent, Inc., Gtd. Notes, PIK, 144A(g)		7.125			05/01/21		590		602,980
Infor US, Inc., Gtd. Notes(g)		6.500			05/15/22		300		312,000
Informatica LLC, Sr. Unsec’d. Notes, 144A		7.125			07/15/23		275		270,531
Nuance Communications, Inc.,
Gtd. Notes, 144A		5.375			08/15/20		48		49,020
Gtd. Notes, 144A		6.000			07/01/24		160		168,800
Rackspace Hosting, Inc., Gtd. Notes, 144A		8.625			11/15/24		75		79,406
RP Crown Parent LLC, Sr. Sec’d. Notes, 144A		7.375			10/15/24		50		52,250
									4,605,529
Telecommunications    1.5%
Aegis Merger Sub, Inc., Sr. Unsec’d. Notes, 144A		10.250			02/15/23		143		157,658
Avaya, Inc., Sec’d. Notes, 144A(g)(d)		10.500			03/01/21		240		32,400
Bharti Airtel International Netherlands BV (India), Gtd. Notes, RegS		5.125			03/11/23		200		210,692

See Notes to Financial Statements.

Prudential Income Builder Fund 33

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Telecommunications (cont’d.)
CenturyLink, Inc.,
Sr. Unsec’d. Notes		6.875	%		01/15/28		75	$	74,813
Series S, Sr. Unsec’d. Notes		6.450			06/15/21		125		135,000
Columbus Cable Barbados Ltd. (Barbados), Gtd. Notes, RegS(g)		7.375			03/30/21		200		215,250
CommScope Technologies LLC, Gtd. Notes, 144A		6.000			06/15/25		260		277,225
Digicel Group Ltd. (Jamaica), Sr. Unsec’d. Notes, 144A		8.250			09/30/20		200		183,000
Digicel Ltd. (Jamaica),
Gtd. Notes, 144A		6.750			03/01/23		200		190,000
Sr. Unsec’d. Notes, RegS		6.000			04/15/21		200		190,000
Frontier Communications Corp.,
Sr. Unsec’d. Notes		6.875			01/15/25		100		83,275
Sr. Unsec’d. Notes		9.250			07/01/21		50		51,011
Sr. Unsec’d. Notes		10.500			09/15/22		175		175,875
Sr. Unsec’d. Notes		11.000			09/15/25		515		496,331
GTT Escrow Corp., Gtd. Notes, 144A		7.875			12/31/24		100		104,250
Intelsat Jackson Holdings SA (Luxembourg), Gtd. Notes		5.500			08/01/23		200		170,750
Intelsat Luxembourg SA (Luxembourg), Gtd. Notes		7.750			06/01/21		235		136,006
Level 3 Financing, Inc.,
Gtd. Notes		5.250			03/15/26		270		278,459
Gtd. Notes		5.375			01/15/24		25		25,984
MTN Mauritius Investment Ltd. (South Africa), Gtd. Notes, 144A		6.500			10/13/26		200		205,600
ORBCOMM, Inc., Sr. Sec’d. Notes, 144A		8.000			04/01/24		175		179,375
Sprint Capital Corp., Gtd. Notes		6.875			11/15/28		305		330,162
Sprint Communications, Inc., Gtd. Notes, 144A(g)		9.000			11/15/18		75		82,031
Sprint Corp.,
Gtd. Notes(g)		7.250			09/15/21		500		546,875
Gtd. Notes(a)(g)		7.625			02/15/25		515		574,869
T-Mobile USA, Inc.,
Gtd. Notes		6.500			01/15/26		150		166,312
Gtd. Notes		6.625			04/01/23		250		267,187
TBG Global Pte Ltd. (Indonesia), Gtd. Notes, RegS		4.625			04/03/18		200		202,250
Trilogy International Partners LLC/Trilogy International Finance, Inc., Sr. Sec’d. Notes, 144A		8.875			05/01/22		50		51,750

See Notes to Financial Statements.

34

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
CORPORATE BONDS (Continued)
Telecommunications (cont’d.)
West Corp., Gtd. Notes, 144A		5.375	%		07/15/22		125	$	126,250
Wind Acquisition Finance SA (Italy),
Sec’d. Notes, 144A		7.375			04/23/21		400		416,000
Sr. Sec’d. Notes, 144A		6.500			04/30/20		200		206,700
									6,543,340
Textiles    0.1%
Springs Industries, Inc., Sr. Sec’d. Notes		6.250			06/01/21		350		360,938
Transportation    0.1%
Hornbeck Offshore Services, Inc.,
Gtd. Notes		5.000			03/01/21		25		15,375
Gtd. Notes		5.875			04/01/20		125		80,625
XPO Logistics, Inc.,
Gtd. Notes, 144A		6.125			09/01/23		75		78,750
Gtd. Notes, 144A(a)		6.500			06/15/22		375		397,031
									571,781
TOTAL CORPORATE BONDS (cost $89,395,960)									90,934,345
NON-CORPORATE FOREIGN AGENCIES    3.2%
Banco de Costa Rica (Costa Rica), Gov’t. Gtd. Notes, RegS		5.250			08/12/18		200		202,924
Banco Nacional de Desenvolvimento Economico e Social (Brazil), Sr. Unsec’d. Notes, RegS		6.500			06/10/19		100		107,250
Banque Centrale de Tunisie International Bond (Tunisia), Sr. Unsec’d. Notes, RegS		5.750			01/30/25		200		196,200
Brazil Loan Trust 1 (Brazil), Gov’t. Gtd. Notes, RegS		5.477			07/24/23		122		124,179
Brazil Minas SPE Via State of Minas Gerais (Brazil), Gov’t. Gtd. Notes, RegS		5.333			02/15/28		500		493,750
Citgo Holding, Inc., Sr. Sec’d. Notes, 144A		10.750			02/15/20		200		214,500
Comision Federal de Electricidad (Mexico), Sr. Unsec’d. Notes, RegS		5.750			02/14/42		200		199,250
Corp. Nacional del Cobre de Chile (Chile), Sr. Unsec’d. Notes, RegS		4.875			11/04/44		400		407,560
Eskom Holdings SOC Ltd. (South Africa),
Sr. Unsec’d. Notes, RegS		5.750			01/26/21		400		401,500
Sr. Unsec’d. Notes, EMTN, RegS		6.750			08/06/23		200		205,540
Sr. Unsec’d. Notes, RegS		7.125			02/11/25		200		205,697
Export Credit Bank of Turkey (Turkey), Sr. Unsec’d. Notes, 144A		5.000			09/23/21		200		202,500

See Notes to Financial Statements.

Prudential Income Builder Fund 35

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
NON-CORPORATE FOREIGN AGENCIES (Continued)
Export-Import Bank of India (India), Sr. Unsec’d. Notes, 144A		3.375	%		08/05/26		200	$	192,454
Gazprom OAO Via Gaz Capital SA (Russia),
Sr. Unsec’d. Notes, RegS		6.510			03/07/22		100		111,306
Sr. Unsec’d. Notes, EMTN, RegS		8.625			04/28/34		240		317,280
Georgian Railway JSC (Georgia), Sr. Unsec’d. Notes, RegS		7.750			07/11/22		200		219,834
KazAgro National Management Holding JSC (Kazakhstan), Sr. Unsec’d. Notes, EMTN, RegS		4.625			05/24/23		200		197,366
Kazakhstan Temir Zholy Finance BV (Kazakhstan), Gtd. Notes, RegS		6.950			07/10/42		200		210,759
KazMunayGas National Co. JSC (Kazakhstan),
Sr. Unsec’d. Notes, RegS		7.000			05/05/20		100		109,777
Sr Unsecured, 144A		3.875			04/19/22		200		200,290
Sr. Unsec’d. Notes, EMTN, RegS		6.375			04/09/21		600		658,670
Majapahit Holding BV (Indonesia), Gtd. Notes, RegS		7.875			06/29/37		100		128,250
Mexico City Airport Trust (Mexico), Sr. Sec’d. Notes, 144A		4.250			10/31/26		200		202,000
National Savings Bank (Sri Lanka), Sr. Unsec’d. Notes, RegS		8.875			09/18/18		200		212,554
NOVA Chemicals Corp. (Canada), Sr. Unsec’d. Notes, 144A		5.000			05/01/25		100		102,375
Oschadbank Via SSB #1 PLC (Ukraine), Sr. Unsec’d. Notes, RegS		9.625	(c)		03/20/25		200		199,790
Pertamina Persero PT (Indonesia),
Sr. Unsec’d. Notes, EMTN, RegS		4.300			05/20/23		200		205,768
Sr. Unsec’d. Notes, RegS		4.875			05/03/22		200		211,008
Sr. Unsec’d. Notes, EMTN, RegS		6.450			05/30/44		200		225,611
Sr. Unsec’d. Notes, RegS		6.500			05/27/41		200		225,015
Petrobras Global Finance BV (Brazil),
Gtd. Notes		6.750			01/27/41		170		160,225
Gtd. Notes		7.375			01/17/27		550		591,415
Gtd. Notes		8.375			05/23/21		250		283,125
Gtd. Notes		8.750			05/23/26		150		174,900
Petroleos de Venezuela SA (Venezuela),
Gtd. Notes, RegS		5.375			04/12/27		625		238,438
Gtd. Notes, RegS		6.000			11/15/26		500		190,750
Gtd. Notes, RegS(a)		8.500			11/02/17		213		193,600
Gtd. Notes, RegS		9.000			11/17/21		150		79,005
Gtd. Notes, RegS		9.750			05/17/35		200		95,600
Sr. Sec’d. Notes, 144A		8.500			10/27/20		500		391,750
Petroleos Mexicanos (Mexico),
Gtd. Notes		5.500			01/21/21		260		275,600
Gtd. Notes		5.500			06/27/44		350		307,125

See Notes to Financial Statements.

36

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
NON-CORPORATE FOREIGN AGENCIES (Continued)
Petroleos Mexicanos (Mexico), (cont’d.)
Gtd. Notes		6.500	%		06/02/41		690	$	691,035
Gtd. Notes, MTN		6.875			08/04/26		80		89,400
Petroleum Co. of Trinidad & Tobago Ltd. (Trinidad And Tobago), Sr. Unsec’d. Notes, RegS		6.000			05/08/22		138		135,846
Saka Energi Indonesia PT (Indonesia), Sr. Unsec’d. Notes, 144A		4.450			05/05/24		200		200,000
Sinopec Group Overseas Development 2012 Ltd. (China), Gtd. Notes, RegS		4.875			05/17/42		400		434,581
Sinopec Group Overseas Development 2015 Ltd. (China), Gtd. Notes, RegS		3.250			04/28/25		550		539,448
Southern Gas Corridor CJSC (Azerbaijan), Gov’t. Gtd. Notes, 144A		6.875			03/24/26		250		275,912
State Oil Co. of the Azerbaijan Republic (Azerbaijan), Sr. Unsec’d. Notes, EMTN, RegS		4.750			03/13/23		400		396,147
Trade & Development Bank of Mongolia LLC (Mongolia), Gov’t. Gtd. Notes, EMTN, RegS		9.375			05/19/20		200		215,346
Ukreximbank Via Biz Finance PLC (Ukraine), Sr. Unsec’d. Notes, RegS		9.625			04/27/22		200		203,300
Vnesheconombank Via VEB Finance PLC (Russia),
Sr. Unsec’d. Notes, RegS		5.942			11/21/23		200		214,374
Sr. Unsec’d. Notes, RegS		6.025			07/05/22		200		214,460
YPF SA (Argentina),
Sr. Unsec’d. Notes, RegS		8.500			03/23/21		150		169,688
Sr. Unsec’d. Notes, 144A		8.500			03/23/21		50		56,563
TOTAL NON-CORPORATE FOREIGN AGENCIES (cost $13,254,218)									13,708,590
FOREIGN GOVERNMENT BONDS    9.4%
Angolan Government International Bond (Angola), Sr. Unsec’d. Notes, RegS		9.500			11/12/25		400		418,904
Argentina Bonar Bonds (Argentina), Bonds		8.750			05/07/24		300		351,517
Argentine Bonos del Tesoro (Argentina), Bonds, Bonds		22.750			03/05/18	ARS	426		28,149
Argentine Republic Government International Bond (Argentina),
Sr. Unsec’d. Notes		2.260	(c)		12/31/38	EUR	200		137,905
Sr. Unsec’d. Notes		2.500	(c)		12/31/38		180		119,700
Sr. Unsec’d. Notes		5.625			01/26/22		150		156,225
Sr. Unsec’d. Notes		7.500			04/22/26		480		525,840
Sr. Unsec’d. Notes		7.820			12/31/33	EUR	550		644,566
Sr. Unsec’d. Notes		8.280			12/31/33		631		705,050

See Notes to Financial Statements.

Prudential Income Builder Fund 37

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
FOREIGN GOVERNMENT BONDS (Continued)
Bahrain Government International Bond (Bahrain), Sr. Unsec’d. Notes, RegS		6.000	%		09/19/44		200	$	175,800
Brazilian Government International Bond (Brazil),
Sr. Unsec’d. Notes		2.625			01/05/23		200		186,750
Sr. Unsec’d. Notes		5.625			01/07/41		150		149,003
Sr. Unsec’d. Notes		7.125			01/20/37		100		116,000
Sr. Unsec’d. Notes		8.250			01/20/34		348		441,977
City of Buenos Aires Argentina (Argentina), Sr. Unsec’d. Notes, MTN, RegS		8.950			02/19/21		200		226,000
Colombia Government International Bond (Colombia),
Sr. Unsec’d. Notes		6.125			01/18/41		355		408,250
Sr. Unsec’d. Notes		7.375			09/18/37		540		694,440
Sr. Unsec’d. Notes		10.375			01/28/33		200		302,000
Congolese International Bond (Congo), Sr. Unsec’d. Notes, RegS		4.000			06/30/29		150		112,300
Costa Rica Government International Bond (Costa Rica),
Sr. Unsec’d. Notes, RegS		4.250			01/26/23		400		388,500
Sr. Unsec’d. Notes, RegS		7.000			04/04/44		200		206,408
Sr. Unsec’d. Notes, RegS		7.158			03/12/45		200		208,000
Croatia Government International Bond (Croatia),
Sr. Unsec’d. Notes, RegS		5.500			04/04/23		250		271,375
Sr. Unsec’d. Notes, RegS		6.375			03/24/21		300		331,821
Dominican Republic International Bond (Dominican Republic),
Sr. Unsec’d. Notes, RegS		5.875			04/18/24		300		319,542
Sr. Unsec’d. Notes, RegS		6.850			01/27/45		200		212,750
Sr. Unsec’d. Notes, RegS		7.450			04/30/44		550		623,562
Sr. Unsec’d. Notes, RegS		7.500			05/06/21		245		271,950
Ecuador Government International Bond (Ecuador),
Sr. Unsec’d. Notes, RegS		7.950			06/20/24		200		191,000
Sr. Unsec’d. Notes, 144A		9.650			12/13/26		200		203,500
Sr. Unsec’d. Notes, RegS		10.500			03/24/20		400		428,000
Sr. Unsec’d. Notes, RegS		10.750			03/28/22		200		217,000
Egypt Government International Bond (Egypt),
Sr. Unsec’d. Notes, RegS		5.875			06/11/25		400		394,616
Sr. Unsec’d. Notes, RegS		6.875			04/30/40		100		94,900
Sr. Unsec’d. Notes, 144A, MTN		8.500			01/31/47		455		495,154

See Notes to Financial Statements.

38

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
FOREIGN GOVERNMENT BONDS (Continued)
El Salvador Government International Bond (El Salvador),
Sr. Unsec’d. Notes, RegS		6.375	%		01/18/27		200	$	178,500
Sr. Unsec’d. Notes, RegS		7.375			12/01/19		105		105,525
Sr. Unsec’d. Notes, RegS		7.625			02/01/41		300		269,250
Sr. Unsec’d. Notes, RegS		7.750			01/24/23		300		302,250
Sr. Unsec’d. Notes, RegS		8.250			04/10/32		80		77,200
Sr. Unsec’d. Notes, 144A		8.625			02/28/29		50		50,500
Ethiopia International Bond (Ethiopia), Sr. Unsec’d. Notes, RegS		6.625			12/11/24		200		197,700
Gabon Government International Bond (Gabon),
Bonds, RegS		6.375			12/12/24		200		195,850
Sr. Unsec’d. Notes, RegS		6.950			06/16/25		200		198,016
Ghana Government International Bond (Ghana),
Bank Gtd. Notes, RegS		10.750			10/14/30		200		241,300
Sr. Unsec’d. Notes, RegS		7.875			08/07/23		300		297,150
Sr. Unsec’d. Notes, RegS		9.250			09/15/22		200		211,920
Guatemala Government Bond (Guatemala), Sr. Unsec’d. Notes, RegS		5.750			06/06/22		200		219,962
Honduras Government International Bond (Honduras), Sr. Unsec’d. Notes, RegS		8.750			12/16/20		200		227,728
Hungary Government International Bond (Hungary),
Sr. Unsec’d. Notes		5.375			02/21/23		278		308,469
Sr. Unsec’d. Notes		5.375			03/25/24		222		249,062
Sr. Unsec’d. Notes		5.750			11/22/23		200		227,500
Sr. Unsec’d. Notes		7.625			03/29/41		372		549,719
Indonesia Government International Bond (Indonesia),
Sr. Unsec’d. Notes, EMTN, RegS		4.125			01/15/25		250		257,524
Sr. Unsec’d. Notes, 144A		4.350			01/08/27		200		208,699
Sr. Unsec’d. Notes, EMTN, RegS		5.250			01/17/42		200		215,533
Sr. Unsec’d. Notes, 144A, MTN		5.950			01/08/46		200		235,623
Sr. Unsec’d. Notes, RegS		7.750			01/17/38		200		275,106
Sr. Unsec’d. Notes, RegS		8.500			10/12/35		100		143,309
Indonesia Treasury Bond (Indonesia),
Sr. Unsec’d. Notes		8.250			07/15/21	IDR	1,100,000		86,859
Sr. Unsec’d. Notes		8.375			09/15/26	IDR	1,000,000		81,552
Iraq International Bond (Iraq), Unsec’d. Notes, RegS		5.800			01/15/28		750		670,312
Ivory Coast Government International Bond (Cote D’lvoire), Sr. Unsec’d. Notes, RegS		6.375			03/03/28		600		603,168

See Notes to Financial Statements.

Prudential Income Builder Fund 39

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
FOREIGN GOVERNMENT BONDS (Continued)
Jamaica Government International Bond (Jamaica),
Sr. Unsec’d. Notes		7.625	%		07/09/25		200	$	231,276
Sr. Unsec’d. Notes		7.875			07/28/45		200		231,768
Sr. Unsec’d. Notes		8.000			03/15/39		100		116,196
Sr. Unsec’d. Notes		9.250			10/17/25		200		253,182
Jordan Government International Bond (Jordan), Sr. Unsec’d. Notes, RegS		5.750			01/31/27		200		197,564
Kazakhstan Government International Bond (Kazakhstan), Sr. Unsec’d. Notes, EMTN, RegS		6.500			07/21/45		400		475,656
Kenya Government International Bond (Kenya), Sr. Unsec’d. Notes, RegS		6.875			06/24/24		400		405,080
Lebanon Government International Bond (Lebanon),
Sr. Unsec’d. Notes, RegS		6.000			01/27/23		90		91,997
Sr. Unsec’d. Notes, EMTN, RegS		6.100			10/04/22		305		312,893
Sr. Unsec’d. Notes, MTN		6.250			05/27/22		110		113,322
Sr. Unsec’d. Notes, GMTN, RegS		6.250			11/04/24		170		170,666
Sr. Unsec’d. Notes, GMTN		6.375			03/09/20		65		67,145
Sr. Unsec’d. Notes, 144A		6.400			05/26/23		325		334,815
Sr. Unsec’d. Notes, GMTN, RegS		6.600			11/27/26		120		121,236
Sr. Unsec’d. Notes, RegS		6.650			04/22/24		130		134,278
Sr. Unsec’d. Notes, GMTN, RegS		6.650			11/03/28		173		173,761
Sr. Unsec’d. Notes, 144A		6.850			05/25/29		80		81,216
Sr. Unsec’d. Notes, EMTN, RegS		8.250			04/12/21		285		315,883
Malaysia Sukuk Global Bhd (Malaysia), Gov’t. Gtd. Notes, 144A		4.080			04/27/46		250		251,350
Mexican Bonos (Mexico), Bonds		6.500			06/09/22	MXN	710		36,771
Mexico Government International Bond (Mexico),
Sr. Unsec’d. Notes, MTN		6.050			01/11/40		530		614,005
Sr. Unsec’d. Notes, MTN		6.750			09/27/34		203		255,074
Mongolia Government International Bond (Mongolia),
Sr. Unsec’d. Notes, EMTN, RegS		4.125			01/05/18		200		199,200
Sr. Unsec’d. Notes, MTN, RegS		5.125			12/05/22		200		191,009
Sr. Unsec’d. Notes, 144A, MTN		8.750			03/09/24		200		222,219
Sr. Unsec’d. Notes, MTN, RegS		10.875			04/06/21		200		232,508
Morocco Government International Bond (Morocco),
Sr. Unsec’d. Notes, RegS		4.250			12/11/22		200		208,032
Sr. Unsec’d. Notes, RegS		5.500			12/11/42		200		216,800
Nigeria Government International Bond (Nigeria),
Sr. Unsec’d. Notes, RegS		6.375			07/12/23		200		206,220
Sr. Unsec’d. Notes, RegS		6.750			01/28/21		200		212,189
Sr. Unsec’d. Notes, RegS		7.875			02/16/32		200		217,200

See Notes to Financial Statements.

40

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
FOREIGN GOVERNMENT BONDS (Continued)
Oman Government International Bond (Oman),
Sr. Unsec’d. Notes, RegS		4.750	%		06/15/26		200	$	201,084
Sr. Unsec’d. Notes, 144A		6.500			03/08/47		205		220,825
Pakistan Government International Bond (Pakistan),
Sr. Unsec’d. Notes, RegS		7.250			04/15/19		300		317,400
Sr. Unsec’d. Notes, RegS		8.250			04/15/24		200		222,578
Panama Government International Bond (Panama),
Sr. Unsec’d. Notes		4.300			04/29/53		250		246,250
Sr. Unsec’d. Notes		6.700			01/26/36		100		129,250
Sr. Unsec’d. Notes		7.125			01/29/26		335		425,450
Sr. Unsec’d. Notes		9.375			04/01/29		100		148,500
Paraguay Government International Bond (Paraguay), Sr. Unsec’d. Notes, RegS		6.100			08/11/44		200		215,500
Perusahaan Penerbit SBSN Indonesia III (Indonesia), Sr. Unsec’d. Notes, 144A		4.325			05/28/25		200		206,500
Peruvian Government International Bond (Peru),
Sr. Unsec’d. Notes		5.625			11/18/50		195		236,438
Sr. Unsec’d. Notes		6.550			03/14/37		655		858,050
Philippine Government International Bond (Philippines),
Sr. Unsec’d. Notes		3.950			01/20/40		100		103,007
Sr. Unsec’d. Notes		7.750			01/14/31		460		657,240
Provincia de Buenos Aires (Argentina),
Sr. Unsec’d. Notes, RegS		3.000	(c)		05/01/20	EUR	90		96,321
Sr. Unsec’d. Notes, RegS		9.125			03/16/24		150		170,325
Sr. Unsec’d. Notes, RegS		9.950			06/09/21		150		173,280
Republic of Armenia International Bond (Armenia), Sr. Unsec’d. Notes, RegS		6.000			09/30/20		200		210,240
Republic of Cameroon International Bond (Cameroon), Sr. Unsec’d. Notes, RegS		9.500			11/19/25		200		227,532
Romanian Government International Bond (Romania), Sr. Unsec’d. Notes, EMTN, RegS		6.125			01/22/44		460		570,736
Russian Foreign Bond - Eurobond (Russia),
Sr. Unsec’d. Notes, RegS		4.750			05/27/26		400		422,124
Sr. Unsec’d. Notes, RegS		5.625			04/04/42		200		222,740
Sr. Unsec’d. Notes, RegS		12.750			06/24/28		290		514,191
Senegal Goverment International Bond (Senegal), Sr. Unsec’d. Notes, RegS		8.750			05/13/21		200		228,790
Serbia International Bond (Serbia), Sr. Unsec’d. Notes, RegS		4.875			02/25/20		600		625,500

See Notes to Financial Statements.

Prudential Income Builder Fund 41

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
FOREIGN GOVERNMENT BONDS (Continued)
South Africa Government International Bond (South Africa),
Sr. Unsec’d. Notes		4.665	%		01/17/24		150	$	151,597
Sr. Unsec’d. Notes		4.875			04/14/26		400		403,243
Sr. Unsec’d. Notes		5.875			09/16/25		200		216,000
Sri Lanka Government International Bond (Sri Lanka),
Sr. Unsec’d. Notes, RegS		6.250			10/04/20		430		455,602
Sr. Unsec’d. Notes, RegS		6.250			07/27/21		230		243,809
Sr. Unsec’d. Notes, RegS		6.850			11/03/25		400		421,035
Third Pakistan International Sukuk Co. Ltd. (The) (Pakistan), Sr. Unsec’d. Notes, 144A		5.500			10/13/21		200		206,473
Turkey Government International Bond (Turkey),
Sr. Unsec’d. Notes		3.250			03/23/23		200		187,600
Sr. Unsec’d. Notes		4.875			04/16/43		200		180,750
Sr. Unsec’d. Notes		5.625			03/30/21		100		105,974
Sr. Unsec’d. Notes		5.750			03/22/24		200		212,123
Sr. Unsec’d. Notes		6.000			01/14/41		400		414,640
Sr. Unsec’d. Notes		6.250			09/26/22		300		325,984
Sr. Unsec’d. Notes		6.875			03/17/36		459		520,162
Ukraine Government International Bond (Ukraine),
Sr. Unsec’d. Notes, 144A		4.925	(s)		05/31/40		35		12,221
Sr. Unsec’d. Notes, RegS		4.994	(s)		05/31/40		50		17,458
Sr. Unsec’d. Notes, 144A		7.750			09/01/19		300		306,012
Sr. Unsec’d. Notes, RegS		7.750			09/01/19		100		102,004
Sr. Unsec’d. Notes, 144A		7.750			09/01/20		356		358,684
Sr. Unsec’d. Notes, RegS		7.750			09/01/20		100		100,754
Sr. Unsec’d. Notes, 144A		7.750			09/01/21		104		103,680
Sr. Unsec’d. Notes, 144A		7.750			09/01/22		104		101,430
Sr. Unsec’d. Notes, RegS		7.750			09/01/22		200		195,058
Sr. Unsec’d. Notes, RegS		7.750			09/01/23		200		193,140
Sr. Unsec’d. Notes, RegS		7.750			09/01/27		300		281,250
Uruguay Government International Bond (Uruguay),
Sr. Unsec’d. Notes		5.100			06/18/50		255		253,725
Sr. Unsec’d. Notes		7.625			03/21/36		300		394,875
Venezuela Government International Bond (Venezuela),
Sr. Unsec’d. Notes, RegS		7.000			03/31/38		620		280,054
Sr. Unsec’d. Notes, RegS		7.750			10/13/19		370		222,629
Sr. Unsec’d. Notes, RegS		9.000			05/07/23		100		49,770
Sr. Unsec’d. Notes, RegS		11.950			08/05/31		300		173,250

See Notes to Financial Statements.

42

Description	Interest Rate			Maturity         Date		Principal Amount (000)#		Value
FOREIGN GOVERNMENT BONDS (Continued)
Vietnam Government International Bond (Vietnam), Sr. Unsec’d. Notes, RegS		4.800	%		11/19/24		200	$	205,316
Zambia Government International Bond (Zambia),
Sr. Unsec’d. Notes, RegS		8.500			04/14/24		200		210,040
Sr. Unsec’d. Notes, RegS		8.970			07/30/27		400		427,080
TOTAL FOREIGN GOVERNMENT BONDS (cost $38,830,910)									40,217,524
U.S. TREASURY OBLIGATION    0.1%
U.S. Treasury Notes (cost $302,676)(k)(h)		2.250			11/15/24		300		302,016
TOTAL LONG-TERM INVESTMENTS (cost $383,849,454)									406,708,061
						Shares
SHORT-TERM INVESTMENTS    6.8%
AFFILIATED MUTUAL FUNDS    6.8%
Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund(w)							16,346,723		16,346,723
Prudential Investment Portfolios 2 - Prudential Institutional Money Market Fund (cost $12,787,960; includes $12,780,906 of cash collateral for securities on loan)(b)(w)							12,786,860		12,789,417
TOTAL AFFILIATED MUTUAL FUNDS (cost $29,134,683)									29,136,140
				Counterparty		Notional Amount (000)#
OPTIONS PURCHASED*    0.0%
Call Options
Currency Option Euro vs Brazilian Real, expiring 04/04/18, Strike Price 3.40					Citigroup Global Markets	EUR	400		49,479

See Notes to Financial Statements.

Prudential Income Builder Fund 43

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Counterparty		Notional Amount (000)#		Value
OPTIONS PURCHASED* (Continued)
Call Options (cont’d.)
Currency Option Euro vs South African Rand, expiring 04/04/18, Strike Price 15.00		Goldman Sachs & Co.	EUR	200	$	17,791
Currency Option United States Dollar vs Mexican Peso, expiring 03/23/18, Strike Price 19.25		Citigroup Global Markets		600		38,652
TOTAL OPTIONS PURCHASED (cost $101,802)						105,922
TOTAL SHORT-TERM INVESTMENTS (cost $29,236,485)						29,242,062
TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN    102.1% (cost $413,085,939)						435,950,123
OPTIONS WRITTEN*    0.0%
Call Options
Currency Option Euro vs Brazilian Real, expiring 04/04/18, Strike Price 3.80		Citigroup Global Markets	EUR	400		(23,445	)
Currency Option Euro vs South African Rand, expiring 04/04/18, Strike Price 17.00		Goldman Sachs & Co.	EUR	200		(7,476	)
Currency Option United States Dollar vs Mexican Peso, expiring 03/23/18, Strike Price 21.25		Citigroup Global Markets		600		(16,892	)
						(47,813	)
Put Options
Currency Option Euro vs Brazilian Real, expiring 04/04/18, Strike Price 3.20		Citigroup Global Markets	EUR	400		(3,089	)
Currency Option Euro vs South African Rand, expiring 04/04/18, Strike Price 14.00		Goldman Sachs & Co.	EUR	200		(3,411	)
Currency Option United States Dollar vs Mexican Peso, expiring 03/23/18, Strike Price 17.75		Citigroup Global Markets		600		(6,694	)
						(13,194	)
TOTAL OPTIONS WRITTEN (premiums received $62,481)						(61,007	)
TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN    102.1% (cost $413,023,458)						435,889,116
Liabilities in excess of other assets(x)    (2.1)%						(9,153,559	)
NET ASSETS    100.0%					$	426,735,557

See Notes to Financial Statements.

44

The following abbreviations are used in the semiannual report:

144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.

RegS—Regulation S. Security was purchased pursuant to Regulation S and may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.

ADR—American Depositary Receipt

CDX—Credit Derivative Index

CVA—Certificate Van Aandelen (Bearer)

CVT—Convertible Security

EMTN—Euro Medium Term Note

ETF—Exchange Traded Fund

GMTN—Global Medium Term Note

MLP—Master Limited Partnership

MTN—Medium Term Note

OTC—Over-the-counter

PIK—Payment-in-Kind

REIT—Real Estate Investment Trust

SPDR—Standard & Poor’s Depository Receipts

ARS—Argentine Peso

AUD—Australian Dollar

BRL—Brazilian Real

CAD—Canadian Dollar

CLP—Chilean Peso

CNH—Chinese Renminbi

COP—Colombian Peso

CZK—Czech Koruna

EUR—Euro

HUF—Hungarian Forint

IDR—Indonesian Rupiah

ILS—Israeli Shekel

INR—Indian Rupee

JPY—Japanese Yen

KRW—South Korean Won

MXN—Mexican Peso

PEN—Peruvian Nuevo Sol

PHP—Philippine Peso

PLN—Polish Zloty

RUB—Russian Ruble

SGD—Singapore Dollar

THB—Thai Baht

TRY—Turkish Lira

TWD—New Taiwanese Dollar

ZAR—South African Rand

See Notes to Financial Statements.

Prudential Income Builder Fund 45

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

* Non-income producing security.

# Principal or notional amount is shown in U.S. dollars unless otherwise stated.

^ Indicates a Level 3 security. The aggregate value of Level 3 securities is $924,204 and 0.2% of net assets.

(a) All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $12,398,250; cash collateral of $12,780,906 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments.

(b) Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment.

(c) Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2017.

(d) Represents issuer in default on interest payments. Non-income producing security. Such securities may be post maturity.

(f) Indicates a restricted security; the aggregate original cost of the restricted securities is $635,326. The aggregate value of $467,016 is approximately 0.1% of net assets.

(g) Indicates a security that has been deemed illiquid; the aggregate value of $13,050,131 is approximately 3.1% of net assets.

(h) Represents security, or a portion thereof, segregated as collateral for OTC swap agreements.

(k) Represents security, or a portion thereof, segregated as collateral for futures contracts.

(n) Rates shown are the effective yields at purchase date.

(s) Represents zero coupon bond or principal only securities. Rate represents yield to maturity at purchase date.

(w) PGIM Investments LLC, the manager of the Fund, also serves as manager of the underlying funds in which the Fund invests.

(x) Includes net unrealized appreciation (depreciation) on the following derivative contracts held at reporting period end:

Futures contracts outstanding at April 30, 2017:

Number of Contracts		Type	Expiration Date		Value at Trade Date		Value at April 30, 2017		Unrealized Appreciation (Depreciation)
		Long Positions:
	9	2 Year U.S. Treasury Notes		Jun. 2017	$	1,945,500	$	1,949,485	$	3,985
	34	10 Year U.S. Treasury Notes		Jun. 2017		4,251,815		4,274,440		22,625
	6	20 Year U.S. Treasury Bonds		Jun. 2017		900,391		917,814		17,423
	3	30 Year U.S. Ultra Treasury Bonds		Jun. 2017		478,212		488,814		10,602
									$	54,635

Cash of $100,000 and U.S. Treasury Obligation with a market value of $120,806 have been segregated with Citigroup Global Markets to cover requirements for open futures contracts at April 30, 2017.

See Notes to Financial Statements.

46

Forward foreign currency exchange contracts outstanding at April 30, 2017:

Purchase Contracts	Counterparty	Notional Amount (000)		Value at Settlement Date		Current Value		Unrealized Appreciation (Depreciation)
OTC forward foreign currency exchange contracts:
Argentine Peso,
expiring 07/06/17	Citigroup Global Markets	ARS	2,020	$	126,461	$	126,803	$	342
Brazilian Real,
expiring 05/03/17	Goldman Sachs & Co.	BRL	2,268		723,082		713,647		(9,435	)
expiring 05/03/17	Goldman Sachs & Co.	BRL	2,268		718,751		713,646		(5,105	)
expiring 06/02/17	Citigroup Global Markets	BRL	2,268		708,303		708,069		(234	)
expiring 06/02/17	Goldman Sachs & Co.	BRL	2,268		707,641		708,070		429
Colombian Peso,
expiring 07/12/17	Citigroup Global Markets	COP	280,819		98,000		94,385		(3,615	)
expiring 07/12/17	UBS AG	COP	276,878		95,525		93,061		(2,464	)
expiring 07/12/17	UBS AG	COP	276,878		96,022		93,061		(2,961	)
Czech Koruna,
expiring 07/12/17	Goldman Sachs & Co.	CZK	4,829		194,311		196,937		2,626
expiring 07/12/17	UBS AG	CZK	4,829		194,475		196,937		2,462
Euro,
expiring 07/27/17	Goldman Sachs & Co.	EUR	241		263,537		263,892		355
Hungarian Forint,
expiring 07/21/17	Bank of America	HUF	126,835		434,658		442,442		7,784
Indian Rupee,
expiring 06/08/17	Citigroup Global Markets	INR	21,444		318,568		331,328		12,760
expiring 06/08/17	Citigroup Global Markets	INR	8,428		128,000		130,220		2,220
expiring 06/08/17	Citigroup Global Markets	INR	8,217		125,014		126,950		1,936
expiring 06/08/17	Citigroup Global Markets	INR	4,572		68,000		70,640		2,640
expiring 06/08/17	UBS AG	INR	39,237		582,738		606,240		23,502
expiring 06/08/17	UBS AG	INR	39,237		582,738		606,240		23,502
expiring 06/08/17	UBS AG	INR	6,735		103,958		104,066		108
expiring 06/08/17	UBS AG	INR	6,575		100,000		101,579		1,579
expiring 06/08/17	UBS AG	INR	3,634		55,000		56,145		1,145
Indonesian Rupiah,
expiring 06/16/17	Citigroup Global Markets	IDR	998,901		74,185		74,509		324
expiring 07/17/17	Citigroup Global Markets	IDR	4,897,491		358,791		363,972		5,181
Israeli Shekel,
expiring 07/21/17	Citigroup Global Markets	ILS	372		101,631		102,913		1,282
Mexican Peso,
expiring 06/08/17	Citigroup Global Markets	MXN	1,155		60,000		60,889		889
expiring 06/08/17	Citigroup Global Markets	MXN	1,105		57,000		58,302		1,302
expiring 06/08/17	Citigroup Global Markets	MXN	914		46,000		48,202		2,202
expiring 06/08/17	Goldman Sachs & Co.	MXN	16,235		822,094		856,193		34,099
expiring 06/08/17	UBS AG	MXN	1,327		65,642		69,977		4,335
expiring 06/08/17	UBS AG	MXN	1,300		65,460		68,561		3,101
expiring 06/08/17	UBS AG	MXN	815		41,000		42,975		1,975
expiring 06/08/17	UBS AG	MXN	775		39,000		40,854		1,854
expiring 06/08/17	UBS AG	MXN	672		34,000		35,451		1,451
expiring 06/08/17	UBS AG	MXN	290		15,000		15,313		313
expiring 03/27/18	Citigroup Global Markets	MXN	4,973		250,000		250,791		791

See Notes to Financial Statements.

Prudential Income Builder Fund 47

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Forward foreign currency exchange contracts outstanding at April 30, 2017 (continued):

Purchase Contracts	Counterparty	Notional Amount (000)		Value at Settlement Date		Current Value		Unrealized Appreciation (Depreciation)
OTC forward foreign currency exchange contracts (cont’d.):
New Taiwanese Dollar,
expiring 06/08/17	Bank of America	TWD	2,033	$	65,712	$	67,487	$	1,775
expiring 06/08/17	Citigroup Global Markets	TWD	6,583		216,000		218,543		2,543
expiring 06/08/17	Citigroup Global Markets	TWD	5,975		197,000		198,371		1,371
expiring 06/08/17	Citigroup Global Markets	TWD	3,521		114,000		116,890		2,890
expiring 06/08/17	UBS AG	TWD	3,896		129,682		129,357		(325	)
expiring 06/08/17	UBS AG	TWD	3,817		126,000		126,709		709
expiring 06/08/17	UBS AG	TWD	740		24,000		24,553		553
Peruvian Nuevo Sol,
expiring 07/26/17	UBS AG	PEN	423		129,347		129,113		(234	)
expiring 07/27/17	Citigroup Global Markets	PEN	371		113,288		113,279		(9	)
Philippine Peso,
expiring 07/12/17	Citigroup Global Markets	PHP	1,743		35,000		34,756		(244	)
expiring 07/12/17	UBS AG	PHP	14,573		292,950		290,538		(2,412	)
Russian Ruble,
expiring 07/07/17	Bank of America	RUB	19,607		340,442		338,971		(1,471	)
expiring 07/07/17	Citigroup Global Markets	RUB	11,844		206,937		204,766		(2,171	)
expiring 07/07/17	Citigroup Global Markets	RUB	5,893		103,958		101,884		(2,074	)
expiring 07/07/17	Citigroup Global Markets	RUB	2,991		52,000		51,709		(291	)
expiring 07/07/17	Goldman Sachs & Co.	RUB	19,607		340,170		338,971		(1,199	)
Singapore Dollar,
expiring 06/16/17	Citigroup Global Markets	SGD	261		187,400		187,192		(208	)
expiring 06/16/17	Citigroup Global Markets	SGD	123		88,000		88,050		50
expiring 06/16/17	UBS AG	SGD	360		256,670		257,824		1,154
expiring 06/16/17	UBS AG	SGD	39		28,000		28,087		87
expiring 06/16/17	UBS AG	SGD	25		18,000		18,007		7
South African Rand,
expiring 07/07/17	Citigroup Global Markets	ZAR	4,691		336,274		346,754		10,480
expiring 07/07/17	UBS AG	ZAR	1,090		81,000		80,596		(404	)
Thai Baht,
expiring 05/17/17	Citigroup Global Markets	THB	6,939		202,000		200,578		(1,422	)
expiring 05/17/17	Citigroup Global Markets	THB	2,645		75,000		76,449		1,449
expiring 05/17/17	Citigroup Global Markets	THB	767		22,000		22,183		183
expiring 05/17/17	UBS AG	THB	3,260		94,000		94,221		221
Turkish Lira,
expiring 05/08/17	Goldman Sachs & Co.	TRY	1,097		290,480		308,061		17,581
expiring 05/08/17	UBS AG	TRY	363		99,048		101,954		2,906
expiring 05/08/17	UBS AG	TRY	242		65,204		67,948		2,744
expiring 05/08/17	UBS AG	TRY	202		55,000		56,571		1,571
expiring 05/08/17	UBS AG	TRY	98		26,000		27,482		1,482
				$	12,865,147	$	13,021,114	$	155,967

See Notes to Financial Statements.

48

Forward foreign currency exchange contracts outstanding at April 30, 2017 (continued):

Sale Contracts	Counterparty	Notional Amount (000)		Value at Settlement Date		Current Value		Unrealized Appreciation (Depreciation)
OTC forward foreign currency exchange contracts:
Australian Dollar,
expiring 07/12/17	UBS AG	AUD	1	$	387	$	387	$	—
Brazilian Real,
expiring 05/03/17	Barclays Capital Group	BRL	2,268		713,293		713,647		(354	)
expiring 05/03/17	Citigroup Global Markets	BRL	2,268		713,966		713,646		320
Canadian Dollar,
expiring 07/12/17	UBS AG	CAD	1		749		732		17
Chilean Peso,
expiring 07/12/17	Citigroup Global Markets	CLP	166,378		252,088		248,397		3,691
expiring 07/12/17	UBS AG	CLP	168,768		256,975		251,965		5,010
Chinese Renminbi,
expiring 07/26/17	Citigroup Global Markets	CNH	3,034		437,948		436,558		1,390
expiring 07/26/17	UBS AG	CNH	901		129,682		129,586		96
expiring 07/26/17	UBS AG	CNH	896		129,347		128,916		431
expiring 07/26/17	UBS AG	CNH	866		124,969		124,600		369
Colombian Peso,
expiring 07/12/17	Goldman Sachs & Co.	COP	557,345		191,600		187,327		4,273
Euro,
expiring 07/27/17	Citigroup Global Markets	EUR	1,919		2,107,547		2,100,031		7,516
expiring 07/27/17	Citigroup Global Markets	EUR	238		259,464		260,210		(746	)
expiring 07/27/17	Goldman Sachs & Co.	EUR	261		280,473		285,494		(5,021	)
Hungarian Forint,
expiring 07/21/17	UBS AG	HUF	28,025		96,000		97,759		(1,759	)
Indian Rupee,
expiring 06/08/17	Bank of America	INR	4,635		68,787		71,611		(2,824	)
expiring 06/08/17	Citigroup Global Markets	INR	2,242		34,000		34,634		(634	)
expiring 06/08/17	UBS AG	INR	24,973		383,280		385,840		(2,560	)
Indonesian Rupiah,
expiring 06/16/17	UBS AG	IDR	1,541,000		115,000		114,944		56
Israeli Shekel,
expiring 07/21/17	Citigroup Global Markets	ILS	65		17,800		18,066		(266	)
Japanese Yen,
expiring 07/27/17	Citigroup Global Markets	JPY	19,110		172,944		172,085		859
expiring 07/27/17	UBS AG	JPY	14,429		129,814		129,929		(115	)
expiring 07/27/17	UBS AG	JPY	10,050		90,814		90,494		320
expiring 07/27/17	UBS AG	JPY	10,033		90,814		90,346		468
Mexican Peso,
expiring 06/08/17	Citigroup Global Markets	MXN	3,926		206,937		207,072		(135	)
expiring 06/08/17	JPMorgan Chase	MXN	834		42,095		43,968		(1,873	)

See Notes to Financial Statements.

Prudential Income Builder Fund 49

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Forward foreign currency exchange contracts outstanding at April 30, 2017 (continued):

Sale Contracts	Counterparty	Notional Amount (000)		Value at Settlement Date		Current Value		Unrealized Appreciation (Depreciation)
OTC forward foreign currency exchange contracts (cont’d.):
New Taiwanese Dollar,
expiring 06/08/17	Citigroup Global Markets	TWD	35,419	$	1,152,222	$	1,175,922	$	(23,700	)
expiring 06/08/17	Citigroup Global Markets	TWD	6,773		223,000		224,848		(1,848	)
expiring 06/08/17	Citigroup Global Markets	TWD	3,740		124,000		124,163		(163	)
expiring 06/08/17	Citigroup Global Markets	TWD	2,639		87,000		87,620		(620	)
expiring 06/08/17	Citigroup Global Markets	TWD	1,613		53,000		53,545		(545	)
expiring 06/08/17	UBS AG	TWD	8,652		280,872		287,255		(6,383	)
expiring 06/08/17	UBS AG	TWD	2,837		94,000		94,184		(184	)
expiring 06/08/17	UBS AG	TWD	1,915		63,000		63,585		(585	)
Philippine Peso,
expiring 07/12/17	Bank of America	PHP	29,292		579,806		583,967		(4,161	)
Polish Zloty,
expiring 07/21/17	UBS AG	PLN	130		32,965		33,572		(607	)
Russian Ruble,
expiring 07/07/17	Goldman Sachs & Co.	RUB	10,578		181,225		182,873		(1,648	)
expiring 07/07/17	UBS AG	RUB	10,598		181,225		183,212		(1,987	)
Singapore Dollar,
expiring 06/16/17	Citigroup Global Markets	SGD	348		246,467		249,494		(3,027	)
expiring 06/16/17	UBS AG	SGD	363		259,464		259,783		(319	)
expiring 06/16/17	UBS AG	SGD	359		255,834		257,356		(1,522	)
expiring 06/16/17	UBS AG	SGD	181		129,734		129,529		205
expiring 06/16/17	UBS AG	SGD	181		129,734		129,402		332
expiring 06/16/17	UBS AG	SGD	102		72,000		72,838		(838	)
South African Rand,
expiring 07/07/17	Citigroup Global Markets	ZAR	3,004		228,206		222,044		6,162
expiring 07/07/17	Citigroup Global Markets	ZAR	2,537		192,994		187,572		5,422
South Korean Won,
expiring 06/21/17	Barclays Capital Group	KRW	153,296		134,000		134,799		(799	)
expiring 06/21/17	Citigroup Global Markets	KRW	377,090		329,144		331,590		(2,446	)
expiring 06/21/17	UBS AG	KRW	334,578		292,950		294,207		(1,257	)
Thai Baht,
expiring 05/17/17	Citigroup Global Markets	THB	392		11,181		11,325		(144	)
Turkish Lira,
expiring 05/08/17	Goldman Sachs & Co.	TRY	630		166,766		176,705		(9,939	)
expiring 05/08/17	UBS AG	TRY	245		65,204		68,909		(3,705	)
expiring 05/08/17	UBS AG	TRY	89		24,000		24,897		(897	)
				$	12,636,766	$	12,683,440		(46,674	)
								$	109,293

See Notes to Financial Statements.

50

Cross currency exchange contracts outstanding at April 30, 2017:

Settlement	Type	Notional Amount (000)		In Exchange For (000)		Unrealized Appreciation (Depreciation)			Counterparty
OTC cross currency exchange contracts:
07/12/2017	Buy	CZK	3,184	EUR	120	$	(1,642	)		Citigroup Global Markets
07/12/2017	Buy	EUR	317	CZK	8,558		(2,098	)		Citigroup Global Markets
07/12/2017	Buy	EUR	94	CZK	2,527		(788	)		Citigroup Global Markets
07/12/2017	Buy	EUR	66	CZK	1,794		(521	)		Citigroup Global Markets
04/06/2018	Buy	BRL	603	EUR	166		(6,501	)		Citigroup Global Markets
04/06/2018	Buy	ZAR	1,369	EUR	86		1,309			Goldman Sachs & Co.
						$	(10,241	)

Credit default swap agreements outstanding at April 30, 2017:

Reference Entity/ Obligation	Termination Date		Fixed Rate		Notional Amount (000)#(3)		Fair Value(4)			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)		Counterparty
OTC credit default swaps on credit indices—Sell Protection(2):
CDX.EM.22.V2		12/20/19		1.000%		3,552	$	(119,794	)	$	(400,865	)	$	281,071		Deutsche Bank AG
CDX.EM.22.V2		12/20/19		1.000%		1,248		(42,090	)		(155,790	)		113,700		Barclays Capital Group
							$	(161,884	)	$	(556,655	)	$	394,771

The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases.

(1) If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(2) If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(3) Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

See Notes to Financial Statements.

Prudential Income Builder Fund 51

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

(4) The fair value of credit default swap agreements on credit indices and asset-backed securities serves as an indicator of the current status of the payment/performance risk and represents the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the reporting date. Increasing fair value in absolute terms, when compared to the notional amount of the swap, represents a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.

(5) Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of the reporting date serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.

Fair Value Measurements:

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

Level 1—unadjusted quoted prices generally in active markets for identical securities.

Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.

Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.

The following is a summary of the inputs used as of April 30, 2017 in valuing such portfolio securities:

	Level 1		Level 2			Level 3
Investments in Securities
Affiliated Mutual Funds	$	60,768,697	$	—		$	—
Common Stocks		158,544,315		8,752,028			—
Exchange Traded Funds		46,580,433		—			—
Preferred Stocks		15,320,050		—			—
Convertible Bond		—		—			716,203
Corporate Bonds		—		90,726,344			208,001
Non-Corporate Foreign Agencies		—		13,708,590			—
Foreign Government Bonds		—		40,217,524			—
U.S. Treasury Obligation		—		302,016			—
Options Purchased		—		105,922			—
Options Written		—		(61,007	)		—

See Notes to Financial Statements.

52

	Level 1		Level 2			Level 3
Other Financial Instruments*
Futures Contracts	$	54,635	$	—		$	—
OTC Forward Foreign Currency Exchange Contracts		—		109,293			—
OTC Cross Currency Exchange Contracts		—		(10,241	)		—
OTC Credit Default Swap Agreements		—		(161,884	)		—
Total	$	281,268,130	$	153,688,585		$	924,204

* Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value.

During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.

Industry Classification:

The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2017 were as follows:

Oil, Gas & Consumable Fuels	17.9	%
Affiliated Mutual Funds (including 3.0% of collateral for securities on loan)	14.2
Exchange Traded Funds	10.9
Foreign Government Bonds	9.4
Equity Real Estate Investment Trusts (REITs)	8.2
Non-Corporate Foreign Agencies	3.2
Pharmaceuticals	2.6
Media	2.5
Banks	2.1
Software	1.8
Chemicals	1.7
Telecommunications	1.5
Healthcare-Services	1.4
Oil & Gas	1.1
Mining	1.1
Electric	1.1
Food Products	1.1
Retail	1.0
Commercial Services	0.9
Aerospace & Defense	0.9
Entertainment	0.9
Home Builders	0.8
Road & Rail	0.8
Energy Equipment & Services	0.8
Hotels, Restaurants & Leisure	0.7
Food	0.7
Communications Equipment	0.7
IT Services	0.7
Mortgage Real Estate Investment Trusts (REITs)	0.6
Technology Hardware, Storage & Peripherals	0.6	%
Capital Markets	0.5
Lodging	0.5
Auto Parts & Equipment	0.5
Pipelines	0.5
Containers & Packaging	0.5
Building Materials	0.4
Internet Software & Services	0.4
Specialty Retail	0.4
Electric Utilities	0.4
Diversified Financial Services	0.3
Life Sciences Tools & Services	0.3
Tobacco	0.3
Miscellaneous Manufacturing	0.3
Diversified Telecommunication Services	0.3
Computers	0.3
Independent Power & Renewable Electricity Producers	0.3
Textiles, Apparel & Luxury Goods	0.2
Industrial Conglomerates	0.2
Coal	0.2
Real Estate Investment Trusts (REITs)	0.2
Transportation Infrastructure	0.2
Semiconductors & Semiconductor Equipment	0.2
Distribution/Wholesale	0.2
Semiconductors	0.2
Healthcare-Products	0.2
Beverages	0.2
Engineering & Construction	0.2
Electronic Equipment, Instruments & Components	0.1

See Notes to Financial Statements.

Prudential Income Builder Fund 53

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Industry Classification (cont’d.)
Diversified Machinery	0.1	%
Transportation	0.1
Real Estate	0.1
Iron/Steel	0.1
Machinery	0.1
Health Care Providers & Services	0.1
Metal Fabricate & Hardware	0.1
Leisure Time	0.1
Gas	0.1
Textiles	0.1
Air Freight & Logistics	0.1
U.S. Treasury Obligation	0.1
Environmental Control	0.1
Advertising	0.1
Metals & Mining	0.1
Auto Manufacturers	0.1
Home Furnishings	0.1
Office/Business Equipment	0.0	*%
Internet	0.0	*
Agriculture	0.0	*
Hand/Machine Tools	0.0	*
Electrical Components & Equipment	0.0	*
Biotechnology	0.0	*
Housewares	0.0	*
Forest Products & Paper	0.0	*
Household Products/Wares	0.0	*
Oil & Gas Services	0.0	*
Machinery-Construction & Mining	0.0	*
Options Purchased	0.0	*
	102.1
Options Written	(0.0	)*
Liabilities in excess of other assets	(2.1	)
	100.0	%

* Less than +/- 0.05%

Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:

The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are credit contracts risk, foreign exchange contracts risk and interest rate contracts risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.

Fair values of derivative instruments as of April 30, 2017 as presented in the Statement of Assets and Liabilities:

Derivatives not accounted for as hedging instruments, carried at fair value	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Credit contracts	—		$      —	Premiums received for OTC swap agreements	$	556,655
Credit contracts	Unrealized appreciation on OTC swap agreements		394,771	—		—
Foreign exchange contracts	Unaffiliated investments		105,922	Options written outstanding, at value		61,007
Foreign exchange contracts	Unrealized appreciation on OTC cross currency exchange contracts		1,309	Unrealized depreciation on OTC cross currency exchange contracts		11,550

See Notes to Financial Statements.

54

Fair values of derivative instruments as of April 30, 2017 as presented in the Statement of Assets and Liabilities (continued):

Derivatives not accounted for as hedging instruments, carried at fair value	Asset Derivatives				Liability Derivatives
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Foreign exchange contracts	Unrealized appreciation on OTC forward foreign currency exchange contracts	$	229,182		Unrealized depreciation on OTC forward foreign currency exchange contracts	$	119,889
Interest rate contracts	Due from/to broker—variation margin futures		54,635	*	—		—
Total		$	785,819			$	749,101

* Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities.

The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2017 are as follows:

Amount of Realized Gain (Loss) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Futures			Forward & Cross Currency Contracts(1)		Swaps		Total
Credit contracts	$	—		$	—	$	205,375	$	205,375
Foreign exchange contracts		—			213,787		—		213,787
Interest rate contracts		(106,578	)		—		—		(106,578	)
Total	$	(106,578	)	$	213,787	$	205,375	$	312,584

(1) Included in net realized gain (loss) on investment transactions in the Statement of Operations.

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Options Purchased(2)		Options Written		Futures		Forward & Cross Currency Contracts(3)		Swaps			Total
Credit contracts	$	—	$	—	$	—	$	—	$	(89,500	)	$	(89,500	)
Foreign exchange contracts		4,120		1,474		—		185,158		—			190,752
Interest rate contracts		—		—		85,033		—		—			85,033
Total	$	4,120	$	1,474	$	85,033	$	185,158	$	(89,500	)	$	186,285

(2) Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations.

(3) Included in net change in unrealized appreciation (depreciation) on foreign currencies in the Statement of Operations.

See Notes to Financial Statements.

Prudential Income Builder Fund 55

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

For the six months ended April 30, 2017, the average volume of derivative activities are as follows:

Options Purchased(1)		Options Written(4)		Futures Contracts— Long Positions(2)		Futures Contracts— Short Positions(2)
$	33,934	$	835,720	$	7,017,151	$	1,533,171

Forward Foreign Currency Exchange Contracts— Purchased(3)		Forward Foreign Currency Exchange Contracts— Sold(3)		Cross Currency Exchange Contracts(2)		Credit Default Swap Agreements— Sell Protection(4)
$	11,328,714	$	12,297,887	$	947,128	$	5,760,000

(1) Cost.

(2) Value at Trade Date.

(3) Value at Settlement Date.

(4) Notional Amount in USD.

Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:

The Fund invested in OTC derivatives and entered into other financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives and other financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below.

Offsetting of financial instrument/transaction assets and liabilities:

Description	Gross Amounts of Recognized Assets(3)		Collateral Received(4)			Net Amount
Securities on Loan	$	12,398,250	$	(12,398,250	)	$	—

See Notes to Financial Statements.

56

Offsetting of OTC derivative assets and liabilities:

Counterparty	Gross Amounts of Recognized Assets(1)			Gross Amounts Available for Offset			Collateral Received(4)			Net Amount
Bank of America	$	9,559		$	(8,456	)	$	—		$	1,103
Barclays Capital Group		113,700			(113,700	)		—			—
Citigroup Global Markets		164,326			(106,212	)		—			58,114
Deutsche Bank AG		281,071			(281,071	)		—			—
Goldman Sachs & Co.		78,463			(43,234	)		(10,970	)		24,259
JPMorgan Chase		—			—			—			—
UBS AG		84,065			(31,518	)		—			52,547
	$	731,184
Counterparty	Gross Amounts of Recognized Liabilities(2)			Gross Amounts Available for Offset			Collateral Pledged(4)			Net Amount
Bank of America	$	(8,456	)	$	8,456		$	—		$	—
Barclays Capital Group		(156,943	)		113,700			43,243			—
Citigroup Global Markets		(106,212	)		106,212			—			—
Deutsche Bank AG		(400,865	)		281,071			119,794			—
Goldman Sachs & Co.		(43,234	)		43,234			—			—
JPMorgan Chase		(1,873	)		—			—			(1,873	)
UBS AG		(31,518	)		31,518			—			—
	$	(749,101	)

(1) Includes unrealized appreciation on swaps and forwards, premiums paid on swap agreements and market value of purchased options.

(2) Includes unrealized depreciation on swaps and forwards, premiums received on swap agreements and market value of written options.

(3) Amount represents market value.

(4) Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions and the Fund’s OTC derivative exposure by counterparty.

See Notes to Financial Statements.

Prudential Income Builder Fund 57

Statement of Assets & Liabilities (unaudited)

as of April 30, 2017

Assets
Investments at value, including securities on loan of $12,398,250:
Unaffiliated investments (cost $352,626,683)	$	375,181,426
Affiliated investments (cost $60,459,256)		60,768,697
Foreign currency, at value (cost $24,379)		25,346
Cash segregated for counterparty—OTC		180,000
Deposit with broker for futures		100,000
Dividends and interest receivable		3,122,020
Receivable for Fund shares sold		2,567,985
Receivable for investments sold		1,908,997
Unrealized appreciation on OTC swap agreements		394,771
Unrealized appreciation on OTC forward foreign currency exchange contracts		229,182
Tax reclaim receivable		10,608
Due from broker—variation margin futures		5,422
Unrealized appreciation on OTC cross currency exchange contracts		1,309
Prepaid expenses		1,035
Total assets		444,496,798
Liabilities
Payable to broker for collateral for securities on loan		12,780,906
Payable for Fund shares reacquired		2,530,572
Payable for investments purchased		1,136,904
Premium received for OTC swap agreements		556,655
Accrued expenses		165,465
Distribution fee payable		138,629
Management fee payable		120,336
Dividends payable		120,337
Unrealized depreciation on OTC forward foreign currency exchange contracts		119,889
Options written outstanding, at value (premiums received $62,481)		61,007
Affiliated transfer agent fee payable		18,492
Unrealized depreciation on OTC cross currency exchange contracts		11,550
Deferred trustees’ fees		499
Total liabilities		17,761,241
Net Assets	$	426,735,557
Net assets were comprised of:
Shares of beneficial interest, at par	$	44,419
Paid-in capital in excess of par		430,700,815
		430,745,234
Distributions in excess of net investment income		(1,302,062	)
Accumulated net realized loss on investment transactions and foreign currencies		(26,119,540	)
Net unrealized appreciation on investments and foreign currency transactions		23,411,925
Net assets, April 30, 2017	$	426,735,557

See Notes to Financial Statements.

58

Class A
Net asset value and redemption price per share, ($165,623,876 ÷ 17,176,413 shares of beneficial interest issued and outstanding)	$	9.64
Maximum sales charge (4.50% of offering price)		.45
Maximum offering price to public	$	10.09
Class B
Net asset value, offering price and redemption price per share, ($2,551,357 ÷ 269,501 shares of beneficial interest issued and outstanding)	$	9.47
Class C
Net asset value, offering price and redemption price per share, ($125,691,879 ÷ 13,282,959 shares of beneficial interest issued and outstanding)	$	9.46
Class Q
Net asset value, offering price and redemption price per share, ($1,189,414 ÷ 122,585 shares of beneficial interest issued and outstanding)	$	9.70
Class R
Net asset value, offering price and redemption price per share, ($521,229 ÷ 54,136 shares of beneficial interest issued and outstanding)	$	9.63
Class Z
Net asset value, offering price and redemption price per share, ($131,157,802 ÷ 13,512,953 shares of beneficial interest issued and outstanding)	$	9.71

See Notes to Financial Statements.

Prudential Income Builder Fund 59

Statement of Operations (unaudited)

Six Months Ended April 30, 2017

Net Investment Income (Loss)
Income
Interest income	$	4,470,926
Unaffiliated dividend income (net of foreign withholding taxes of $62,339)		3,291,111
Affiliated dividend income		977,151
Income from securities lending, net (including affiliated income of $7,824)		56,144
Total income		8,795,332
Expenses
Management fee		1,347,171
Distribution fee—Class A		247,801
Distribution fee—Class B		13,124
Distribution fee—Class C		577,463
Distribution fee—Class R		1,957
Transfer agent’s fees and expenses (including affiliated expense of $39,700)		176,000
Custodian and accounting fees		122,000
Shareholders’ reports		60,000
Registration fees		55,000
Audit fee		25,000
Legal fees and expenses		10,000
Trustees’ fees		7,000
Miscellaneous		13,639
Total expenses		2,656,155
Less: Management fee waiver and/or expense reimbursement		(679,747	)
Distribution fee waiver—Class A		(41,300	)
Distribution fee waiver—Class R		(652	)
Net expenses		1,934,456
Net investment income (loss)		6,860,876
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions (including affiliated of $(221,315))		(3,293,387	)
Net capital gain distributions received (including affiliated of $151,076)		1,057,408
Futures transactions		(106,578	)
Swap agreements transactions		205,375
Foreign currency transactions		178,553
		(1,958,629	)
Net change in unrealized appreciation (depreciation) on:
Investments (including affiliated of $(237,612))		14,399,660
Futures		85,033
Options written		1,474
Swap agreements		(89,500	)
Foreign currencies		188,049
		14,584,716
Net gain (loss) on investment and foreign currency transactions		12,626,087
Net Increase (Decrease) In Net Assets Resulting From Operations	$	19,486,963

See Notes to Financial Statements.

60

Statement of Changes in Net Assets (unaudited)

	Six Months Ended April 30, 2017			Year Ended October 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	6,860,876		$	11,596,610
Net realized gain (loss) on investment and foreign currency transactions		(1,958,629	)		(16,347,292	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		14,584,716			15,956,531
Net increase (decrease) in net assets resulting from operations		19,486,963			11,205,849
Dividends and Distributions
Dividends from net investment income:
Class A		(3,464,320	)		(6,266,134	)
Class B		(46,489	)		(105,634	)
Class C		(2,044,885	)		(3,350,236	)
Class Q		(5,778	)		—
Class R		(10,178	)		(16,891	)
Class Z		(2,257,745	)		(2,949,966	)
		(7,829,395	)		(12,688,861	)
Tax return of capital distributions:
Class A		—			(873,996	)
Class B		—			(14,734	)
Class C		—			(467,288	)
Class R		—			(2,356	)
Class Z		—			(411,458	)
		—			(1,769,832	)
Fund share transactions (Net of share conversions)
Net proceeds from shares sold		105,334,936			169,263,582
Net asset value of shares issued in reinvestment of dividends and distributions		6,899,284			12,625,332
Cost of shares reacquired		(57,970,688	)		(112,431,080	)
Net increase (decrease) in net assets from Fund share transactions		54,263,532			69,457,834
Total increase (decrease)		65,921,100			66,204,990
Net Assets:
Beginning of period		360,814,457			294,609,467
End of period	$	426,735,557		$	360,814,457

See Notes to Financial Statements.

Prudential Income Builder Fund 61

Notes to Financial Statements (unaudited)

Prudential Investment Portfolios 16 (the “Trust”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”) as an open-end, diversified management investment company. The Trust presently consists of two funds: Prudential QMA Defensive Equity Fund and Prudential Income Builder Fund (the “Fund”). These financial statements relate only to Prudential Income Builder Fund. The financial statements of the other fund are not presented herein. The Trust was organized as a business trust in Delaware on July 29, 1998.

The investment objective of the Fund is to seek income and long-term capital growth.

Note 1. Accounting Policies

The Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Trust and the Fund consistently follows such policies in the preparation of its financial statements.

Securities Valuation: The Fund holds securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Trustees (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or “the Manager”) (formerly known as Prudential Investments LLC). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.

Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Schedule of Investments.

Common and preferred stocks, exchange-traded funds, and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.

62

In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.

Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.

Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third party vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing recent transaction prices for identical or comparable securities. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques.

OTC derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach when quoted prices in broker-dealer markets are available but also include consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing OTC derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated OTC derivative price is based on evaluating observable inputs, including but not limited to,

Prudential Income Builder Fund 63

Notes to Financial Statements (unaudited) (continued)

underlying asset prices, indices, spreads, interest rates and exchange rates. Certain OTC derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing significant unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are generally valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.

Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.

When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

Restricted and Illiquid Securities: Subject to guidelines adopted by the Board, the Fund may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities are valued pursuant to the valuation procedures noted above. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the investment. Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Fund’s Subadviser under the guidelines adopted by the Trustees of the Fund. However, the liquidity of the Fund’s investments in Rule 144A securities could be impaired if trading does not develop or declines.

64

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars Foreign currency amounts are translated into U.S. dollars on the following basis:

(i) market value of investment securities, other assets and liabilities—at the current rates of exchange.

(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.

Notwithstanding the above, the Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.

Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from holdings of foreign currencies, forward currency contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currency transactions.

Concentration of Risk: The ability of debt securities issuers (other than those issued or guaranteed by the U.S. Government) held by the Fund to meet its obligations may be affected by the economic or political developments in a specific industry, region or country. Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the possibility of political and economic instability or the level of governmental supervision and regulation of foreign securities markets.

Forward Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Fund entered into forward currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency and to gain exposure to certain currencies. The contracts are valued daily at current exchange rates and any unrealized gain (loss) is

Prudential Income Builder Fund 65

Notes to Financial Statements (unaudited) (continued)

included in the Statement of Assets and Liabilities as unrealized appreciation or depreciation on foreign currencies. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on foreign currency transactions. Upon entering into these contracts, risks may arise from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life.

Cross Currency Exchange Contracts: A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.

Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.

The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Financial futures contracts involve elements of risk in excess of the amounts reflected on the Statement of Assets and Liabilities. With exchange-traded futures contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.

Options: The Fund purchased and wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates with respect to securities or financial

66

instruments which the Fund currently owns or intends to purchase. The Fund may also use options to gain additional market exposure. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone.

When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Fund realizes a gain (loss) to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain (loss) on written options is presented separately as net realized gain (loss) on options written transactions.

The Fund, as writer of an option, may have no control over whether the underlying securities or financial instruments may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. OTC options also involve the risk of the potential inability of the counterparties to meet the terms of their contracts. With exchange-traded options contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.

When a Fund writes an option on a swap, an amount equal to any premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the written option on the swap. If a call option on a swap is exercised, the Fund becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put option on a swap is exercised, the Fund becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing options on swaps that expire or are exercised are treated as realized gains upon the expiration or exercise of such options on swaps. The risk associated with writing put and call options on swaps is that the Fund will be obligated to be party to a swap agreement if an option on a swap is exercised.

Swap Agreements: The Fund may enter into credit default, interest rate, total return and other forms of swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with a counterparty (“OTC-traded”) or through a central clearing facility, such as a registered commodities exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on investments. Centrally cleared swaps pay or receive an amount, known as “variation margin”, based on daily changes in the valuation of a swap contract. Payments received or paid by the Fund are recorded as realized gains (losses) upon termination or maturity of the swap. Risk of loss may

Prudential Income Builder Fund 67

Notes to Financial Statements (unaudited) (continued)

exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.

Interest Rate Swaps: Interest rate swaps represent agreements between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund may be subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The Fund used interest rate swaps to either maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments using interest rate swap contracts. A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life.

Credit Default Swaps: Credit default swaps (“CDS”) involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity (typically corporate issues or sovereign issues of an emerging country) on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund entered into CDS contracts to provide a measure of protection against defaults or take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases. The Fund’s maximum risk of loss from counterparty credit risk for purchased credit default swaps is the inability of the counterparty to honor the contract up to the notional value based on a credit event.

As a seller of protection on credit default swap agreements, the Fund generally receives an agreed upon payment from the buyer of protection throughout the term of the swap, provided no credit event occurs. As the seller, the Fund effectively increases its investment risk because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.

The maximum amount of the payment that the Fund, as a seller of protection, could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit event. This potential amount will be partially offset by any recovery values of the respective referenced obligations, or net amounts received from the settlement of buy protection credit default

68

swap agreements which the Fund entered into for the same referenced entity or index. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues of an emerging country as of period end are disclosed in the footnotes to the Schedule of Investments, if applicable. These spreads serve as indicators of the current status of the payment/performance risk and represent the likelihood of default risk for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as indicators of the current status of the payment/performance risk. Wider credit spreads and increased market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.

Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.

The Fund is party to International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or re-pledged, are presented in the Schedule of Investments. Collateral pledged by the Fund is segregated by the Fund’s custodian and identified in the Schedule of Investments. Collateral can be in the form of cash or debt by the U.S. Government or related agencies or other securities as agreed to by the Fund and the applicable counterparty. Collateral requirements are determined based on the Fund’s net position with each counterparty. Termination events applicable to the Fund may occur

Prudential Income Builder Fund 69

Notes to Financial Statements (unaudited) (continued)

upon a decline in the Fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Fund’s counterparties to elect early termination could impact the Fund’s future derivative activity.

In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the Fund may be identified or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such OTC derivative agreements include conditions which, when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.

As of April 30, 2017, the Fund has not met conditions under such agreements, which give the counterparty the right to call for an early termination.

Forward currency contracts, written options, swaps and financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. Such risks may be mitigated by engaging in master netting arrangements.

Rights: The Fund may hold rights acquired either through a direct purchase, included as part of a private placement, or pursuant to corporate actions. Rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. The Fund holds such rights as long positions by the Fund until exercised, sold or expired. Rights are valued at fair value in accordance with the Board approved fair valuation procedures.

Payment in Kind Securities: The Fund may invest in the open market or receive pursuant to debt restructuring, securities that pay in kind (PIK) the interest due on such debt instruments. The PIK interest, computed at the contractual rate specified, is added to the

70

existing principal balance of the debt when issued bonds have same terms as the bond or recorded as a separate bond when terms are different from the existing debt, and is recorded as interest income.

Securities Lending: The Fund may lend its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed on the Statement of Operations as “Income from securities lending, net”.

Real Estate Investment Trusts (REITs): The Fund invests in REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. These estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.

Concentration of Risk for REITs: Real estate securities are subject to the same risks as direct investments in real estate and mortgages, and their value will depend on the value of the underlying properties or the underlying loans or interests. The underlying loans may be subject to the risks of default or of prepayments that occur earlier or later than expected, and such loans may also include so-called “subprime” mortgages. The value of these securities will rise and fall in response to many factors, including economic conditions, the demand for rental property and interest rates. In particular, the value of these securities may decline when interest rates rise and will also be affected by the real estate market and by the management of the underlying properties.

In addition, investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management skills, may not be diversified geographically or by property/mortgage asset type, and are subject to heavy cash flow dependency, default by borrowers

Prudential Income Builder Fund 71

Notes to Financial Statements (unaudited) (continued)

and self-liquidation. REITs may be more volatile and/or more illiquid than other types of equity securities. REITs (especially mortgage REITs) are subject to interest rate risks. REITs may incur significant amounts of leverage. The Fund will indirectly bear a portion of the expenses, including management fees, paid by each REIT in which it invests, in addition to the expenses of the Fund.

Master Limited Partnerships (MLPs): The Fund invests in MLPs. Distributions received from the Fund’s investments in MLPs generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on historical information available from each MLP and other industry sources. These estimates may subsequently be revised based on information received from MLPs after their respective tax reporting periods have concluded.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis, which may require the use of certain estimates by management that may differ from actual.

Net investment income or loss (other than distribution fees which are charged directly to its respective class and transfer agency fees specific to Class Q shares which are charged to that share class) and unrealized and realized gains (losses), are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.

Dividends and Distributions: The Fund expects to pay dividends from net investment income monthly and distributions from net realized capital and currency gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.

Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends are recorded, net

of reclaimable amounts, at the time the related income is earned.

72

Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.

Note 2. Agreements

The Trust, on behalf of the Fund, has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadvisers’ performance of such services. PGIM Investments has entered into subadvisory agreements with each of Quantitative Management Associates LLC (“QMA”), Jennison Associates LLC, PGIM Fixed Income and PGIM Real Estate, formerly known as Prudential Real Estate Investors (“PREI”), each a Subadviser and together, the Subadvisers. PGIM Fixed Income and PGIM Real Estate are business units of PGIM, Inc. The subadvisory agreements provide that the Subadvisers furnish investment advisory services in connection with the management of the Fund. In connection therewith, the Subadvisers are obligated to keep certain books and records of the Fund. Pursuant to the advisory agreement, PGIM Investments pays the cost of compensation of officers of the Fund, occupancy and certain clerical and accounting costs of the Fund. The Fund bears all other costs and expenses.

The management fee paid to PGIM Investments is accrued daily and payable monthly at an annual rate of .70% of the Fund’s average daily net assets up to $1 billion and .65% of the average daily net assets in excess of $1 billion. The effective management fee rate before any waivers and/or expense reimbursement was .70% for the six months ended April 30, 2017. The effective management fee rate, net of waivers and/or expense reimbursement, was .35%.

PGIM Investments has contractually agreed through February 28, 2018 to limit the net annual operating expenses and acquired fund fees and expenses (exclusive of distribution and service (12b-1) fees, taxes (such as income and foreign withholdings taxes, stamp duty and deferred tax expenses, including acquired fund taxes), interest, brokerage, extraordinary and certain other expenses such as dividend, broker charges and interest expense on short sales, including acquired fund dividend and interest expense on short sales) of each class of shares of the Fund to .70% of the Fund’s average daily net assets. Expenses waived/reimbursed by the Manager in accordance with this agreement may be recouped by the Manager within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.

The Trust, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class Q, Class R and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B, Class C and Class R shares, pursuant to plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Q and Class Z shares of the Fund.

Prudential Income Builder Fund 73

Notes to Financial Statements (unaudited) (continued)

Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1%, 1% and .75% of the average daily net assets of the Class A, B, C and R shares, respectively. PIMS has contractually agreed through February 28, 2018 to limit such fees to .25% and .50% of the average daily net assets of the Class A and Class R shares, respectively.

PIMS has advised the Fund that it has received $509,463 in front-end sales charges resulting from sales of Class A shares during the six months ended April 30, 2017. From these fees, PIMS paid such sales charges to broker-dealers, which in turn paid commissions to sales persons and incurred other distribution costs. PIMS has advised the Fund that for six months ended April 30, 2017, it has received $1,092, $952 and $10,241 in contingent deferred sales charges imposed upon certain redemptions by Class A, Class B and Class C, respectively.

PGIM, Inc., PGIM Investments, PIMS, and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

Note 3. Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments, and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common trustees, and/or common officers. Such transactions are subject to ratification by the Board.

The Fund may invest its overnight sweep cash in the Prudential Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the Prudential Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. For the period ended April 30, 2017, PGIM, Inc. was compensated $5,514 by PGIM Investments for managing the Fund’s securities lending cash collateral as subadviser to the Money Market Fund. The Fund also invests in other affiliated mutual funds. Earnings from the Core Fund and other affiliated mutual funds are disclosed on the Statement of Operations as “Affiliated dividend income”. Earnings from the Money Market Fund are disclosed on the Statement of Operations as “Income from securities lending, net.”

74

Note 4. Portfolio Securities

The cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Treasury securities) for the six months ended April 30, 2017, were $258,767,088 and $204,691,866, respectively.

A summary of cost of purchases and proceeds of sales of shares of affiliated mutual funds, other than short-term investments, for the six months ended April 30, 2017 is presented as follows:

Affiliated Mutual Funds	Value, beginning of period		Cost of Purchases		Proceeds of Sales		Distributions Received		Capital Gain Distributions Received		Value, end of period
Prudential Absolute Return Bond Fund (Class Q)	$	—	$	8,398,905	$	—	$	13,904	$	—	$	8,424,722
Prudential Floating Rate Income Fund (Class Q)		—		15,855,315		11,633,500		168,655		—		4,215,130
Prudential Short Duration High Yield Income Fund (Class Q)		10,744,837		23,585,773		19,667,200		556,946		—		14,786,188
Prudential Total Return Bond Fund (Class Q)		20,504,299		5,430,301		20,979,300		166,827		151,076		4,206,517
	$	31,249,136	$	53,270,294	$	52,280,000	$	906,332	$	151,076	$	31,632,557

Transactions in options written during the six months ended April 30, 2017, were as follows:

	Notional Amount (000)		Premiums Received
Balance at beginning of period		—	$	—
Written options		2,400,000		62,481
Expired options		—		—
Closed options		—		—
Balance at end of period		2,400,000	$	62,481

Note 5. Tax Information

The United States federal income tax basis of the Fund’s investments and the total net unrealized appreciation as of April 30, 2017 were as follows:

Tax Basis	$	417,588,719
Appreciation		23,824,939
Depreciation		(5,463,535	)
Net Unrealized Appreciation	$	18,361,404

The book basis may differ from tax basis due to certain tax-related adjustments.

For federal income tax purposes, the Fund had a capital loss carryforward as of October 31, 2016 of approximately $19,613,000 which can be carry forward for an

Prudential Income Builder Fund 75

Notes to Financial Statements (unaudited) (continued)

unlimited period. No capital gain distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.

Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Note 6. Capital

The Fund offers Class A, Class B, Class C, Class Q, Class R and Class Z shares. Class A shares are subject to a maximum front-end sales charge of 4.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are not subject to an initial sales charge but are subject to a contingent deferred sales charge (“CDSC”) of 1%. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class B shares are subject to a CDSC of 5%, which decreases by 1% annually to 1% in the fifth and sixth years and 0% in the seventh year. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. The CDSC for Class C shares is 1% for shares redeemed within 12 months of purchase. An exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Q, Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.

Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of beneficial interest.

The Trust has authorized an unlimited number of shares of beneficial interest at $.001 par value per share.

As of April 30, 2017, Prudential, through its affiliates, owned 1,074 shares of Class Q and 353 shares of Class R of the Fund. At reporting period end, seven shareholders of record held 64% of the Fund’s outstanding shares on behalf of multiple beneficial owners.

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Transactions in shares of beneficial interest were as follows:

Class A	Shares			Amount
Six months ended April 30, 2017:
Shares sold		3,081,818		$	29,118,977
Shares issued in reinvestment of dividends and distributions		337,449			3,195,921
Shares reacquired		(2,099,881	)		(19,843,430	)
Net increase (decrease) in shares outstanding before conversion		1,319,386			12,471,468
Shares issued upon conversion from other share class(es)		63,928			604,621
Shares reacquired upon conversion into other share class(es)		(1,853,862	)		(17,826,324	)
Net increase (decrease) in shares outstanding		(470,548	)	$	(4,750,235	)
Year ended October 31, 2016:
Shares sold		6,136,054		$	56,948,938
Shares issued in reinvestment of dividends and distributions		692,375			6,371,045
Shares reacquired		(4,184,582	)		(38,113,694	)
Net increase (decrease) in shares outstanding before conversion		2,643,847			25,206,289
Shares issued upon conversion from other share class(es)		84,076			774,528
Shares reacquired upon conversion into other share class(es)		(146,912	)		(1,392,549	)
Net increase (decrease) in shares outstanding		2,581,011		$	24,588,268
Class B
Six months ended April 30, 2017:
Shares sold		46,582		$	428,046
Shares issued in reinvestment of dividends and distributions		4,845			45,042
Shares reacquired		(22,957	)		(214,991	)
Net increase (decrease) in shares outstanding before conversion		28,470			258,097
Shares reacquired upon conversion into other share class(es)		(39,160	)		(362,546	)
Net increase (decrease) in shares outstanding		(10,690	)	$	(104,449	)
Year ended October 31, 2016:
Shares sold		58,927		$	536,738
Shares issued in reinvestment of dividends and distributions		13,276			119,688
Shares reacquired		(53,278	)		(476,663	)
Net increase (decrease) in shares outstanding before conversion		18,925			179,763
Shares reacquired upon conversion into other share class(es)		(72,760	)		(656,006	)
Net increase (decrease) in shares outstanding		(53,835	)	$	(476,243	)
Class C
Six months ended April 30, 2017:
Shares sold		2,864,122		$	26,676,940
Shares issued in reinvestment of dividends and distributions		192,694			1,792,374
Shares reacquired		(1,179,928	)		(10,954,900	)
Net increase (decrease) in shares outstanding before conversion		1,876,888			17,514,414
Shares reacquired upon conversion into other share class(es)		(411,408	)		(3,848,344	)
Net increase (decrease) in shares outstanding		1,465,480		$	13,666,070
Year ended October 31, 2016:
Shares sold		5,763,197		$	52,392,702
Shares issued in reinvestment of dividends and distributions		359,547			3,251,707
Shares reacquired		(2,358,027	)		(21,083,233	)
Net increase (decrease) in shares outstanding before conversion		3,764,717			34,561,176
Shares reacquired upon conversion into other share class(es)		(142,489	)		(1,294,898	)
Net increase (decrease) in shares outstanding		3,622,228		$	33,266,278

Prudential Income Builder Fund 77

Notes to Financial Statements (unaudited) (continued)

Class Q	Shares			Amount
Period ended April 30, 2017*:
Shares sold		127,885		$	1,236,310
Shares issued in reinvestment of dividends and distributions		586			5,677
Shares reacquired		(11,230	)		(108,167	)
Net increase (decrease) in shares outstanding before conversion		117,241			1,133,820
Shares issued upon conversion from other share class(es)		5,344			51,815
Net increase (decrease) in shares outstanding		122,585		$	1,185,635
Class R
Six months ended April 30, 2017:
Shares sold		7,524		$	71,344
Shares issued in reinvestment of dividends and distributions		1,012			9,571
Shares reacquired		(14,399	)		(135,501	)
Net increase (decrease) in shares outstanding		(5,863	)	$	(54,586	)
Year ended October 31, 2016:
Shares sold		21,131		$	196,606
Shares issued in reinvestment of dividends and distributions		1,975			18,168
Shares reacquired		(1,376	)		(12,288	)
Net increase (decrease) in shares outstanding		21,730		$	202,486
Class Z
Six months ended April 30, 2017:
Shares sold		4,995,102		$	47,803,319
Shares issued in reinvestment of dividends and distributions		193,663			1,850,699
Shares reacquired		(2,813,195	)		(26,713,699	)
Net increase (decrease) in shares outstanding before conversion		2,375,570			22,940,319
Shares issued upon conversion from other share class(es)		2,227,957			21,544,440
Shares reacquired upon conversion into other share class(es)		(17,103	)		(163,662	)
Net increase (decrease) in shares outstanding		4,586,424		$	44,321,097
Year ended October 31, 2016:
Shares sold		6,339,942		$	59,188,598
Shares issued in reinvestment of dividends and distributions		309,110			2,864,724
Shares reacquired		(5,841,516	)		(52,745,202	)
Net increase (decrease) in shares outstanding before conversion		807,536			9,308,120
Shares issued upon conversion from other share class(es)		276,772			2,608,772
Shares reacquired upon conversion into other share class(es)		(4,302	)		(39,847	)
Net increase (decrease) in shares outstanding		1,080,006		$	11,877,045

* Commencement of operation was December 30, 2016.

Note 7. Borrowings

The Trust, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a

78

group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 6, 2016 through October 5, 2017. The Funds pay an annualized commitment fee of .15% of the unused portion of the SCA. The Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under the SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the 1-month LIBOR rate or (3) zero percent.

The Fund did not utilize the SCA during the six months ended April 30, 2017.

Note 8. Recent Accounting Pronouncements and Reporting Updates

On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. In an effort to enhance monitoring and regulation, the new rules and forms will allow the SEC to more effectively collect and use data reported by funds. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.

Note 9. Other

At the Trust’s Board meeting in March, 2017, the Board of Trustees approved a change in the methodology of allocating certain expenses, like Transfer Agent fees (including sub-transfer agent and networking fees) and Blue Sky fees. The impact to the net assets of the Fund and individual share classes is not ascertainable at the present time. PGIM Investments expects to implement the changes by December 31, 2017.

Prudential Income Builder Fund 79

Financial Highlights (unaudited)

Class A Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017			2016			2015			2014(f)			2014			2013			2012
Per Share Operating Performance(b):
Net Asset Value, Beginning of Period		$9.36			$9.39			$11.90			$11.78			$11.55			$10.69			$10.30
Income (loss) from investment operations:
Net investment income (loss)		.18			.37			.39			.05			.05			.14			.17
Net realized and unrealized gain (loss) on investments		.30			.06			(.70	)		.14			.89			.86			.38
Total from investment operations		.48			.43			(.31	)		.19			.94			1.00			.55
Less Dividends and Distributions:
Dividends from net investment income		(.20	)		(.40	)		(.44	)		(.07	)		(.12	)		(.14	)		(.16	)
Distributions from net realized gains		-			-			(1.76	)		-			(.59	)		-			-
Tax return of capital distributions		-			(.06	)		-			-			-			-			-
Total dividends and distributions		(.20	)		(.46	)		(2.20	)		(.07	)		(.71	)		(.14	)		(.16	)
Net asset value, end of period		$9.64			$9.36			$9.39			$11.90			$11.78			$11.55			$10.69
Total Return(a)		5.16%			4.76%			(2.59)%			1.63%			8.37%			9.41%			5.53%
Ratios/Supplemental Data:
Net assets, end of period (000)		$165,624			$165,090			$141,432			$84,863			$85,292			$86,386			$86,352
Average net assets (000)		$166,570			$143,159			$109,965			$84,889			$86,591			$85,636			$84,243
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		.84%	(d)		.83%			.78%			1.03%	(d)		1.51%			1.52%			1.54%
Expenses before waivers and/or expense reimbursement		1.24%	(d)		1.30%			1.37%			1.92%	(d)		1.56%			1.57%			1.59%
Net investment income (loss)		3.76%	(d)		4.05%			3.96%			1.58%	(d)		.43%			1.25%			1.64%
Portfolio turnover rate		56%	(e)		90%			93%			140%	(e)		478%			210%			248%

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying funds in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

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Class B Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017			2016			2015			2014(f)			2014			2013			2012
Per Share Operating Performance(b):
Net Asset Value, Beginning of Period		$9.19			$9.23			$11.74			$11.59			$11.38			$10.54			$10.15
Income (loss) from investment operations:
Net investment income (loss)		.14			.30			.32			.02			(.04	)		.06			.09
Net realized and unrealized gain (loss) on investments		.30			.05			(.70	)		.15			.88			.84			.39
Total from investment operations		.44			.35			(.38	)		.17			.84			.90			.48
Less Dividends and Distributions:
Dividends from net investment income		(.16	)		(.34	)		(.37	)		(.02	)		(.04	)		(.06	)		(.09	)
Distributions from net realized gains		-			-			(1.76	)		-			(.59	)		-			-
Tax return of capital distributions		-			(.05	)		-			-			-			-			-
Total dividends and distributions		(.16	)		(.39	)		(2.13	)		(.02	)		(.63	)		(.06	)		(.09	)
Net asset value, end of period		$9.47			$9.19			$9.23			$11.74			$11.59			$11.38			$10.54
Total Return(a)		4.87%			3.97%			(3.35)%			1.47%			7.52%			8.57%			4.86%
Ratios/Supplemental Data:
Net assets, end of period (000)		$2,551			$2,575			$3,083			$4,810			$5,180			$6,012			$7,856
Average net assets (000)		$2,647			$2,762			$3,824			$5,005			$5,826			$6,958			$10,840
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.59%	(d)		1.58%			1.51%			1.78%	(d)		2.26%			2.27%			2.29%
Expenses before waivers and/or expense reimbursement		1.94%	(d)		2.00%			2.09%			2.59%	(d)		2.26%			2.27%			2.29%
Net investment income (loss)		3.00%	(d)		3.34%			3.24%			.80%	(d)		(.31)%			.52%			.93%
Portfolio turnover rate		56%	(e)		90%			93%			140%	(e)		478%			210%			248%

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying funds in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

Prudential Income Builder Fund 81

Financial Highlights (unaudited) (continued)

Class C Shares
	Six Months Ended April 30,			Year Ended October 31,							Three Months Ended October 31,			Year Ended July 31,
	2017			2016			2015				2014(f)			2014			2013			2012
Per Share Operating Performance(b):
Net Asset Value, Beginning of Period		$9.18			$9.23			$11.74				$11.59			$11.38			$10.54			$10.15
Income (loss) from investment operations:
Net investment income (loss)		.14			.30			.31				.02			(.04	)		.06			.09
Net realized and unrealized gain (loss) on investments		.30			.04			(.69	)			.15			.88			.84			.39
Total from investment operations		.44			.34			(.38	)			.17			.84			.90			.48
Less Dividends and Distributions:
Dividends from net investment income		(.16	)		(.34	)		(.37	)	��		(.02	)		(.04	)		(.06	)		(.09	)
Distributions from net realized gains		-			-			(1.76	)			-			(.59	)		-			-
Tax return of capital distributions		-			(.05	)		-				-			-			-			-
Total dividends and distributions		(.16	)		(.39	)		(2.13	)			(.02	)		(.63	)		(.06	)		(.09	)
Net asset value, end of period		$9.46			$9.18			$9.23				$11.74			$11.59			$11.38			$10.54
Total Return(a)		4.87%			3.86%			(3.35)%				1.47%			7.53%			8.57%			4.86%
Ratios/Supplemental Data:
Net assets, end of period (000)		$125,692			$108,543			$75,622				$17,474			$17,887			$17,217			$17,307
Average net assets (000)		$116,450			$88,099			$44,389				$17,513			$17,793			$17,251			$17,651
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.59%	(d)		1.58%			1.55%				1.78%	(d)		2.26%			2.27%			2.29%
Expenses before waivers and/or expense reimbursement		1.94%	(d)		2.00%			2.05%				2.61%	(d)		2.26%			2.27%			2.29%
Net investment income (loss)		2.98%	(d)		3.27%			3.19%				.82%	(d)		(.32)%			.51%			.89%
Portfolio turnover rate		56%	(e)		90%			93%				140%	(e)		478%			210%			248%

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying funds in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

82

Class Q Shares
	December 30, 2016(a) through April 30, 2017
Per Share Operating Performance(b):
Net Asset Value, Beginning of Period		$9.44
Income (loss) from investment operations:
Net investment income (loss)		.11
Net realized and unrealized gain (loss) on investments		.28
Total from investment operations		.39
Less Dividends:
Dividends from net investment income		(.13	)
Net asset value, end of period		$9.70
Total Return(c):		4.18%
Ratios/Supplemental Data:
Net assets, end of period (000)		$1,189
Average net assets (000)		$380
Ratios to average net assets:
Expense after waivers and/or expense reimbursement		.59%	(d)
Expense before waivers and/or expense reimbursement		.88%	(d)
Net investment income (loss)		3.41%	(d)
Portfolio turnover rate		56%	(e)

(a) Commencement of operations.

(b) Calculated based on average shares outstanding during the period.

(c) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(d) Annualized.

(e) Not annualized.

See Notes to Financial Statements.

Prudential Income Builder Fund 83

Financial Highlights (unaudited) (continued)

Class R Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017			2016			2015			2014(f)			2014			2013			2012
Per Share Operating Performance(b):
Net Asset Value, Beginning of Period		$9.34			$9.38			$11.89			$11.75			$11.52			$10.67			$10.28
Income (loss) from investment operations:
Net investment income (loss)		.16			.35			.36			.04			.02			.11			.14
Net realized and unrealized gain (loss) on investments		.32			.05			(.69	)		.15			.89			.85			.39
Total from investment operations		.48			.40			(.33	)		.19			.91			.96			.53
Less Dividends and Distributions:
Dividends from net investment income		(.19	)		(.38	)		(.42	)		(.05	)		(.09	)		(.11	)		(.14	)
Distributions from net realized gains		-			-			(1.76	)		-			(.59	)		-			-
Tax return of capital distributions		-			(.06	)		-			-			-			-			-
Total dividends and distributions		(.19	)		(.44	)		(2.18	)		(.05	)		(.68	)		(.11	)		(.14	)
Net asset value, end of period		$9.63			$9.34			$9.38			$11.89			$11.75			$11.52			$10.67
Total Return(a)		5.15%			4.40%			(2.83)%			1.60%			8.13%			9.07%			5.29%
Ratios/Supplemental Data:
Net assets, end of period (000)		$521			$561			$359			$393			$288			$167			$231
Average net assets (000)		$526			$404			$427			$347			$275			$196			$219
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.09%	(d)		1.08%			1.03%			1.25%	(d)		1.76%			1.77%			1.79%
Expenses before waivers and/or expense reimbursement		1.69%	(d)		1.75%			1.82%			2.45%	(d)		2.01%			2.02%			2.04%
Net investment income (loss)		3.51%	(d)		3.76%			3.69%			1.45%	(d)		.19%			1.04%			1.39%
Portfolio turnover rate		56%	(e)		90%			93%			140%	(e)		478%			210%			248%

(a) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying funds in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

84

Class Z Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017			2016			2015			2014(f)			2014			2013			2012
Per Share Operating Performance(b):
Net Asset Value, Beginning of Period		$9.42			$9.45			$11.96			$11.85			$11.62			$10.75			$10.35
Income (loss) from investment operations:
Net investment income (loss)		.19			.40			.41			.06			.08			.17			.20
Net realized and unrealized gain (loss) on investments		.31			.05			(.69	)		.15			.89			.87			.39
Total from investment operations		.50			.45			(.28	)		.21			.97			1.04			.59
Less Dividends and Distributions:
Dividends from net investment income		(.21	)		(.42	)		(.47	)		(.10	)		(.15	)		(.17	)		(.19	)
Distributions from net realized gains		-			-			(1.76	)		-			(.59	)		-			-
Tax return of capital distributions		-			(.06	)		-			-			-			-			-
Total dividends and distributions		(.21	)		(.48	)		(2.23	)		(.10	)		(.74	)		(.17	)		(.19	)
Net asset value, end of period		$9.71			$9.42			$9.45			$11.96			$11.85			$11.62			$10.75
Total Return(a)		5.36%			4.98%			(2.33)%			1.74%			8.59%			9.72%			5.85%
Ratios/Supplemental Data:
Net assets, end of period (000)		$131,158			$84,046			$74,114			$5,965			$5,287			$3,178			$3,717
Average net assets (000)		$101,656			$64,595			$45,082			$5,426			$4,306			$3,181			$4,379
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		.59%	(d)		.58%			.56%			.77%	(d)		1.26%			1.27%			1.29%
Expenses before waivers and/or expense reimbursement		.95%	(d)		1.00%			1.03%			1.64%	(d)		1.26%			1.27%			1.29%
Net investment income (loss)		3.93%	(d)		4.35%			4.15%			1.87%	(d)		.69%			1.51%			1.90%
Portfolio turnover rate		56%	(e)		90%			93%			140%	(e)		478%			210%			248%

(a) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying funds in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

Prudential Income Builder Fund 85

∎   MAIL	∎   TELEPHONE	∎   WEBSITE
655 Broad Street Newark, NJ 07102	(800) 225-1852	www.pgiminvestments.com

PROXY VOTING

The Board of Trustees of the Fund has delegated to the Fund’s investment subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.

TRUSTEES

Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Chad A. Earnst, Chief Compliance Officer • Deborah A. Docs, Secretary • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer

MANAGER	PGIM Investments LLC	655 Broad Street Newark, NJ 07102
INVESTMENT SUBADVISERS	Jennison Associates LLC	466 Lexington Avenue New York, NY 10017
	PGIM Fixed Income	655 Broad Street Newark, NJ 07102
	PGIM Real Estate	7 Giralda Farms Madison, NJ 07940
	Quantitative Management Associates LLC	Gateway Center Two 100 Mulberry Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	655 Broad Street Newark, NJ 07102
CUSTODIAN	The Bank of New York Mellon	225 Liberty Street New York, NY 10286
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 9658 Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154
FUND COUNSEL	Willkie Farr & Gallagher LLP	787 Seventh Avenue New York, NY 10019

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.

E-DELIVERY

To receive your mutual fund documents online, go to www.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.

SHAREHOLDER COMMUNICATIONS WITH TRUSTEES

Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Prudential Income Builder Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee.

AVAILABILITY OF PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month.

Mutual Funds:

ARE NOT INSURED BY THE FDIC OR ANY
FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED
BY ANY BANK OR ANY BANK AFFILIATE

PRUDENTIAL INCOME BUILDER FUND

SHARE CLASS	A	B	C	Q	R	Z
NASDAQ	PCGAX	PBCFX	PCCFX	PCGQX	PCLRX	PDCZX
CUSIP	74442X108	74442X207	74442X306	74442X769	74442X405	74442X504

MFSP504E2

PRUDENTIAL QMA DEFENSIVE EQUITY FUND

SEMIANNUAL REPORT

APRIL 30, 2017

To enroll in e-delivery, go to pgiminvestments.com/edelivery

Objective: Long-term capital appreciation

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

The accompanying financial statements as of April 30, 2017 were not audited and, accordingly, no auditor’s opinion is expressed on them.

Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. QMA is the primary business name of Quantitative Management Associates LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company. ^© 2017 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

2 Visit our website at pgiminvestments.com

Letter from the President

Dear Shareholder:

We hope you find the semiannual report for the Prudential QMA Defensive Equity Fund informative and useful. The report covers performance for the six-month period ended April 30, 2017. We are proud to announce that Prudential Investments became PGIM^® Investments, effective April 3, 2017. Why PGIM? This new name was chosen to further align with the global investment management businesses of Prudential Financial, which rebranded from Prudential Investment Management in January 2016. This new name allows for one brand and reflects our ability and commitment to delivering investment solutions to clients around the globe. Please keep in mind that only the Fund adviser’s name was changed: the name of your Fund and the management and operation did not change.

Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.

Your financial adviser can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.

At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. We’re part of PGIM, the 9th-largest global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.

Thank you for choosing our family of funds.

Sincerely,

Stuart S. Parker, President

Prudential QMA Defensive Equity Fund

June 15, 2017

Prudential QMA Defensive Equity Fund 3

Your Fund’s Performance (unaudited)

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852.

	Total Returns as of 4/30/17 (without sales charges)	Average Annual Total Returns as of 4/30/17 (with sales charges)
	Six Months* (%)	One Year (%)	Five Years (%)	Ten Years (%)	Since Inception (%)
Class A	9.67	4.48	8.12	4.60	—
Class B	9.31	4.72	8.40	4.41	—
Class C	9.40	8.81	8.54	4.41	—
Class Q	4.65**	N/A	N/A	N/A	N/A (12/28/16)
Class R	9.65	10.30	9.09	4.94	—
Class Z	9.83	10.80	9.63	5.45
S&P 500 Index	13.31	17.90	13.66	7.15	—
Russell 1000 Defensive Index	11.63	13.59	13.11	7.46	—
Lipper Large-Cap Core Funds Average	12.59	16.28	12.13	6.30	—

*Not annualized

**Since inception

Source: PGIM Investments LLC and Lipper Inc.

Inception returns are provided for any share class with less than 10 fiscal years of returns.

4 Visit our website at pgiminvestments.com

The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.

	Class A	Class B*	Class C	Class Q	Class R	Class Z
Maximum initial sales charge	5.50% of the public offering price	None	None	None	None	None
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption)	1% on sales of $1 million or more made within 12 months of purchase	5% (Yr. 1) 4% (Yr. 2) 3% (Yr. 3) 2% (Yr. 4) 1% (Yrs. 5/6) 0% (Yr. 7)	1% on sales made within 12 months of purchase	None	None	None
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets)	.30% (.25% currently)	1%	1%	None	.75% (.50% currently)	None

*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.

Benchmark Definitions

S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.

Russell 1000 Defensive Index—The Russell 1000 Defensive Index is unmanaged and measures the performance of the large-cap defensive segment of the US equity universe. It includes those Russell 1000 Index companies with relatively stable business conditions which are less sensitive to economic cycles, credit cycles, and market volatility based on their stability variables. Stability is measured in terms of volatility (price and earnings), leverage, and return on assets.

Lipper Large-Cap Core Funds Average—The Lipper Large-Cap Core Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Large-Cap Core Funds universe for the periods noted. Funds in the Lipper Average invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap core funds have wide latitude in the companies in which they invest. These funds typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share-growth value compared with the S&P 500 Index. Class Q shares have been in existence for less than one year and have no average annual total return performance.

Prudential QMA Defensive Equity Fund 5

Your Fund’s Performance (continued)

Investors cannot invest directly in an index or average. The returns for the indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes. The Since Inception returns for the indexes and the Lipper Average are measured from the closest month-end to the inception date for the indicated share class.

Five Largest Holdings expressed as a percentage of net assets as of 4/30/17 (%)
AT&T, Inc., Diversified Telecommunication Services	3.8
Verizon Communications, Inc., Diversified Telecommunication Services	2.9
Procter & Gamble Co. (The), Household Products	2.2
Berkshire Hathaway, Inc., Diversified Financial Services	1.8
JPMorgan Chase & Co., Banks	1.8

Holdings reflect only long-term investments and are subject to change.

Five Largest Industries expressed as a percentage of net assets as of 4/30/17 (%)
Banks	7.3
Diversified Telecommunication Services	7.2
Beverages	4.2
Food & Staples Retailing	4.2
Equity Real Estate Investment Trusts (REITs)	4.1

Industry weightings reflect only long-term investments and are subject to change.

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Fees and Expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 held through the six-month period ended April 30, 2017. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

Actual Expenses

The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM Investments Funds, including the Fund, that you own. You should consider the additional fees that were charged to your

Prudential QMA Defensive Equity Fund 7

Fees and Expenses (continued)

Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Prudential  QMA Defensive Equity Fund		Beginning  Account Value November 1, 2016		Ending Account Value April 30, 2017		Annualized Expense Ratio Based on the Six-Month Period			Expenses  Paid During the Six-Month Period*
Class A	Actual	$	1,000.00	$	1,096.70		1.30	%	$	6.76
	Hypothetical	$	1,000.00	$	1,018.35		1.30	%	$	6.51
Class B	Actual	$	1,000.00	$	1,093.10		2.05	%	$	10.64
	Hypothetical	$	1,000.00	$	1,014.63		2.05	%	$	10.24
Class C	Actual	$	1,000.00	$	1,094.00		2.05	%	$	10.64
	Hypothetical	$	1,000.00	$	1,014.63		2.05	%	$	10.24
Class Q	Actual**	$	1,000.00	$	1,046.50		0.90	%	$	3.10
	Hypothetical	$	1,000.00	$	1,020.33		0.90	%	$	4.51
Class R	Actual	$	1,000.00	$	1,096.50		1.55	%	$	8.06
	Hypothetical	$	1,000.00	$	1,017.11		1.55	%	$	7.75
Class Z	Actual	$	1,000.00	$	1,098.30		1.05	%	$	5.46
	Hypothetical	$	1,000.00	$	1,019.59		1.05	%	$	5.26

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2017, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2017 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

**“Actual” expenses are calculated using the 123 day period ended April 30, 2017 due to the Fund’s inception date of December 28, 2016.

8 Visit our website at pgiminvestments.com

Schedule of Investments (unaudited)

as of April 30, 2017

Description	Shares		Value
LONG-TERM INVESTMENTS    95.5%
COMMON STOCKS    95.4%
Aerospace & Defense    2.6%
Arconic, Inc.		5,633	$	153,950
Boeing Co. (The)		7,310		1,351,107
General Dynamics Corp.		3,650		707,334
L3 Technologies, Inc.		1,000		171,770
Lockheed Martin Corp.		3,210		864,934
Northrop Grumman Corp.		2,240		550,950
Raytheon Co.		3,760		583,590
Rockwell Collins, Inc.		1,700		176,953
Textron, Inc.		3,400		158,644
TransDigm Group, Inc.(a)		640		157,907
United Technologies Corp.		9,620		1,144,684
				6,021,823
Air Freight & Logistics    0.8%
C.H. Robinson Worldwide, Inc.		1,800		130,860
Expeditors International of Washington, Inc.		2,300		129,007
FedEx Corp.		3,150		597,555
United Parcel Service, Inc. (Class B Stock)*		8,840		949,946
				1,807,368
Airlines    0.7%
Alaska Air Group, Inc.		1,600		136,144
American Airlines Group, Inc.		6,400		272,768
Delta Air Lines, Inc.		9,400		427,136
Southwest Airlines Co.		7,900		444,138
United Continental Holdings, Inc.		3,700		259,777
				1,539,963
Auto Components    0.2%
BorgWarner, Inc.		1,860		78,641
Delphi Automotive PLC		2,600		209,040
Goodyear Tire & Rubber Co. (The)		2,400		86,952
				374,633
Automobiles    0.4%
Ford Motor Co.		37,800		433,566
General Motors Co.		13,200		457,248
Harley-Davidson, Inc.		1,700		96,577
				987,391

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 9

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Banks    7.3%
Bank of America Corp.		129,300	$	3,017,862
BB&T Corp.		10,600		457,708
Citigroup, Inc.		35,800		2,116,496
Citizens Financial Group, Inc.		6,800		249,628
Comerica, Inc.		2,400		169,680
Fifth Third Bancorp		10,000		244,300
Huntington Bancshares, Inc.		14,600		187,756
JPMorgan Chase & Co.		46,100		4,010,700
KeyCorp		14,300		260,832
M&T Bank Corp.		2,050		318,591
People’s United Financial, Inc.		4,900		85,603
PNC Financial Services Group, Inc. (The)		6,330		758,017
Regions Financial Corp.		16,100		221,375
SunTrust Banks, Inc.		6,500		369,265
U.S. Bancorp		20,600		1,056,368
Wells Fargo & Co.		58,100		3,128,104
Zions Bancorporation		2,800		112,084
				16,764,369
Beverages    4.2%
Brown-Forman Corp. (Class B Stock)		4,000		189,280
Coca-Cola Co. (The)		88,800		3,831,720
Constellation Brands, Inc. (Class A Stock)		3,970		684,984
Dr. Pepper Snapple Group, Inc.		4,200		384,930
Molson Coors Brewing Co. (Class B Stock)		4,240		406,573
Monster Beverage Corp.*		9,200		417,496
PepsiCo, Inc.		32,800		3,715,584
				9,630,567
Biotechnology    1.1%
AbbVie, Inc.		6,800		448,392
Alexion Pharmaceuticals, Inc.*		950		121,391
Amgen, Inc.		3,120		509,558
Biogen, Inc.*		920		249,513
Celgene Corp.*		3,300		409,365
Gilead Sciences, Inc.		5,570		381,824
Incyte Corp.*		750		93,210
Regeneron Pharmaceuticals, Inc.*		330		128,202
Vertex Pharmaceuticals, Inc.*		1,060		125,398
				2,466,853

See Notes to Financial Statements.

10

Description	Shares		Value
COMMON STOCKS (Continued)
Building Products    0.4%
Allegion PLC		1,266	$	99,558
Fortune Brands Home & Security, Inc.		2,000		127,480
Johnson Controls International PLC		11,978		497,926
Masco Corp.		4,100		151,782
				876,746
Capital Markets    3.3%
Affiliated Managers Group, Inc.*		790		130,816
Ameriprise Financial, Inc.		2,050		262,093
Bank of New York Mellon Corp. (The)		13,500		635,310
BlackRock, Inc.		1,590		611,466
CBOE Holdings, Inc.		1,300		107,133
Charles Schwab Corp. (The)		15,800		613,830
CME Group, Inc.		4,450		517,046
E*TRADE Financial Corp.*		3,800		131,290
Franklin Resources, Inc.		4,590		197,875
Goldman Sachs Group, Inc. (The)		4,810		1,076,478
Intercontinental Exchange, Inc.		7,830		471,366
Invesco Ltd.		5,400		177,876
Moody’s Corp.		2,220		262,670
Morgan Stanley		18,700		811,019
Nasdaq, Inc.		1,600		110,192
Northern Trust Corp.		2,900		261,000
Raymond James Financial, Inc.		1,800		134,136
S&P Global, Inc.		3,400		456,246
State Street Corp.		4,700		394,330
T. Rowe Price Group, Inc.		3,300		233,937
				7,596,109
Chemicals    2.1%
Air Products & Chemicals, Inc.		2,420		340,010
Albemarle Corp.		1,250		136,137
CF Industries Holdings, Inc.		2,550		68,187
Dow Chemical Co. (The)		12,400		778,720
E.I. du Pont de Nemours & Co.		9,600		765,600
Eastman Chemical Co.		1,600		127,600
Ecolab, Inc.		2,920		376,943
FMC Corp.		1,500		109,845
International Flavors & Fragrances, Inc.		880		121,959
LyondellBasell Industries NV (Class A Stock)		3,660		310,222
Monsanto Co.		4,880		569,057
Mosaic Co. (The)		3,800		102,334

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 11

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Chemicals (cont’d.)
PPG Industries, Inc.		2,860	$	314,142
Praxair, Inc.		3,170		396,186
Sherwin-Williams Co. (The)		910		304,559
				4,821,501
Commercial Services & Supplies    0.4%
Cintas Corp.		1,110		135,942
Republic Services, Inc.		3,000		188,970
Stericycle, Inc.*		1,070		91,314
Waste Management, Inc.		5,200		378,456
				794,682
Communications Equipment    0.4%
Cisco Systems, Inc.		21,800		742,726
F5 Networks, Inc.*		280		36,156
Harris Corp.		540		60,421
Juniper Networks, Inc.		1,600		48,112
Motorola Solutions, Inc.		700		60,179
				947,594
Construction & Engineering    0.1%
Fluor Corp.		1,800		92,376
Jacobs Engineering Group, Inc.*		1,500		82,380
Quanta Services, Inc.*		1,900		67,336
				242,092
Construction Materials    0.1%
Martin Marietta Materials, Inc.		700		154,133
Vulcan Materials Co.		1,470		177,694
				331,827
Consumer Finance    0.9%
American Express Co.		9,900		784,575
Capital One Financial Corp.		6,300		506,394
Discover Financial Services		5,100		319,209
Navient Corp.		4,300		65,360
Synchrony Financial		10,101		280,808
				1,956,346
Containers & Packaging 0.3%
Avery Dennison Corp.		1,000		83,210
Ball Corp.		2,000		153,780

See Notes to Financial Statements.

12

Description	Shares		Value
COMMON STOCKS (Continued)
Containers & Packaging (cont’d.)
International Paper Co.		4,600	$	248,262
Sealed Air Corp.		2,100		92,442
WestRock Co.		2,736		146,540
				724,234
Distributors    0.1%
Genuine Parts Co.		1,460		134,349
LKQ Corp.*		2,900		90,596
				224,945
Diversified Consumer Services    0.0%
H&R Block, Inc.		2,000		49,580
Diversified Financial Services    1.8%
Berkshire Hathaway, Inc. (Class B Stock)*		24,480		4,044,341
Leucadia National Corp.		4,500		114,255
				4,158,596
Diversified Telecommunication Services    7.2%
AT&T, Inc.		219,494		8,698,547
CenturyLink, Inc.(a)		19,500		500,565
Level 3 Communications, Inc.*		10,400		631,904
Verizon Communications, Inc.		145,700		6,689,087
				16,520,103
Electric Utilities    4.1%
Alliant Energy Corp.		5,200		204,464
American Electric Power Co., Inc.		11,300		766,479
Duke Energy Corp.		16,200		1,336,500
Edison International		7,500		599,775
Entergy Corp.		4,100		312,666
Eversource Energy		7,300		433,620
Exelon Corp.		21,300		737,619
FirstEnergy Corp.		10,200		305,388
NextEra Energy, Inc.		10,790		1,441,112
PG&E Corp.		11,700		784,485
Pinnacle West Capital Corp.		2,600		221,234
PPL Corp.		15,600		594,516
Southern Co. (The)		22,900		1,140,420
Xcel Energy, Inc.		11,700		527,085
				9,405,363

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 13

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Electrical Equipment    0.6%
Acuity Brands, Inc.		570	$	100,377
AMETEK, Inc.		2,900		165,880
Eaton Corp. PLC		5,800		438,712
Emerson Electric Co.		8,300		500,324
Rockwell Automation, Inc.		1,650		259,628
				1,464,921
Electronic Equipment, Instruments & Components    0.2%
Amphenol Corp. (Class A Stock)		1,340		96,895
Corning, Inc.		4,000		115,400
FLIR Systems, Inc.		600		22,038
TE Connectivity Ltd.		1,600		123,792
				358,125
Energy Equipment & Services    0.4%
Baker Hughes, Inc.		2,000		118,740
Halliburton Co.		4,100		188,108
Helmerich & Payne, Inc.(a)		570		34,565
National Oilwell Varco, Inc.		1,800		62,946
Schlumberger Ltd.		6,719		487,732
TechnipFMC PLC (United Kingdom)*		2,200		66,286
Transocean Ltd.*(a)		1,800		19,854
				978,231
Equity Real Estate Investment Trusts (REITs)    4.1%
Alexandria Real Estate Equities, Inc.		1,440		162,014
American Tower Corp.		6,910		870,245
Apartment Investment & Management Co. (Class A Stock)		2,500		109,350
AvalonBay Communities, Inc.		2,220		421,445
Boston Properties, Inc.		2,490		315,234
Crown Castle International Corp.		5,850		553,410
Digital Realty Trust, Inc.		2,580		296,287
Equinix, Inc.		1,261		526,720
Equity Residential		5,900		381,022
Essex Property Trust, Inc.		1,060		259,138
Extra Space Storage, Inc.		2,000		151,060
Federal Realty Investment Trust		1,170		153,141
GGP, Inc.		9,400		203,134
HCP, Inc.		7,500		235,125
Host Hotels & Resorts, Inc.		11,900		213,605
Iron Mountain, Inc.		3,938		136,885

See Notes to Financial Statements.

14

Description	Shares		Value
COMMON STOCKS (Continued)
Equity Real Estate Investment Trusts (REITs) (cont’d.)
Kimco Realty Corp.		6,800	$	137,972
Macerich Co. (The)		2,000		124,860
Mid-America Apartment Communities, Inc.		1,840		182,546
Prologis, Inc.		8,600		467,926
Public Storage		2,420		506,700
Realty Income Corp.		4,400		256,740
Regency Centers Corp.		2,400		151,632
Simon Property Group, Inc.		5,180		856,047
SL Green Realty Corp.		1,630		171,036
UDR, Inc.		4,300		160,562
Ventas, Inc.		5,700		364,857
Vornado Realty Trust		2,790		268,510
Welltower, Inc.		5,900		421,496
Weyerhaeuser Co.		12,040		407,795
				9,466,494
Food & Staples Retailing    4.2%
Costco Wholesale Corp.		10,090		1,791,177
CVS Health Corp.		23,590		1,944,759
Kroger Co. (The)		21,200		628,580
Sysco Corp.		11,400		602,718
Wal-Mart Stores, Inc.		34,600		2,601,228
Walgreens Boots Alliance, Inc.		19,600		1,696,184
Whole Foods Market, Inc.		7,300		265,501
				9,530,147
Food Products    3.1%
Archer-Daniels-Midland Co.		13,100		599,325
Campbell Soup Co.		4,400		253,176
Conagra Brands, Inc.		9,500		368,410
General Mills, Inc.		13,300		764,883
Hershey Co. (The)		3,210		347,322
Hormel Foods Corp.		6,200		217,496
J.M. Smucker Co. (The)		2,680		339,610
Kellogg Co.		5,800		411,800
Kraft Heinz Co. (The)		13,700		1,238,343
McCormick & Co., Inc.		2,610		260,739
Mead Johnson Nutrition Co.		4,180		370,849
Mondelez International, Inc. (Class A Stock)		35,100		1,580,553
Tyson Foods, Inc. (Class A Stock)		6,600		424,116
				7,176,622

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 15

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Health Care Equipment & Supplies    1.0%
Abbott Laboratories		7,257	$	316,695
Baxter International, Inc.		2,100		116,928
Becton, Dickinson and Co.		905		169,208
Boston Scientific Corp.*		5,700		150,366
C.R. Bard, Inc.		310		95,319
Cooper Cos., Inc. (The)		210		42,069
Danaher Corp.		2,600		216,658
DENTSPLY SIRONA, Inc.		1,000		63,240
Edwards Lifesciences Corp.*		940		103,090
Hologic, Inc.*		1,200		54,180
Intuitive Surgical, Inc.*		160		133,739
Medtronic PLC		5,788		480,925
Stryker Corp.		1,310		178,645
Varian Medical Systems, Inc.*		400		36,296
Zimmer Biomet Holdings, Inc.		850		101,703
				2,259,061
Health Care Providers & Services    1.0%
Aetna, Inc.		1,490		201,254
AmerisourceBergen Corp.		750		61,538
Anthem, Inc.		1,120		199,237
Cardinal Health, Inc.		1,300		94,367
Centene Corp.*		700		52,080
Cigna Corp.		1,090		170,443
DaVita, Inc.*		680		46,927
Envision Healthcare Corp.*		500		28,015
Express Scripts Holding Co.*		2,600		159,484
HCA Holdings, Inc.*		1,200		101,052
Henry Schein, Inc.*		340		59,092
Humana, Inc.		640		142,067
Laboratory Corp. of America Holdings*		440		61,666
McKesson Corp.		900		124,461
Patterson Cos., Inc.		300		13,347
Quest Diagnostics, Inc.		600		63,306
UnitedHealth Group, Inc.		4,080		713,510
Universal Health Services, Inc. (Class B Stock)		380		45,889
				2,337,735
Health Care Technology    0.0%
Cerner Corp.*		1,200		77,700
Health Care Equipment & Supplies    0.0%
IDEXX Laboratories, Inc.*		380		63,737

See Notes to Financial Statements.

16

Description	Shares		Value
COMMON STOCKS (Continued)
Hotels, Restaurants & Leisure    1.4%
Carnival Corp.		4,000	$	247,080
Chipotle Mexican Grill, Inc.*		280		132,851
Darden Restaurants, Inc.		1,200		102,228
Marriott International, Inc. (Class A Stock)		3,040		287,037
McDonald’s Corp.		7,940		1,111,044
Royal Caribbean Cruises Ltd.		1,600		170,560
Starbucks Corp.		14,100		846,846
Wyndham Worldwide Corp.		1,000		95,310
Wynn Resorts Ltd.		770		94,718
Yum! Brands, Inc.		3,300		216,975
				3,304,649
Household Durables    0.4%
D.R. Horton, Inc.		3,200		105,248
Garmin Ltd.		1,100		55,924
Leggett & Platt, Inc.		1,300		68,302
Lennar Corp. (Class A Stock)		2,000		101,000
Mohawk Industries, Inc.*		610		143,222
Newell Brands, Inc.		4,700		224,378
PulteGroup, Inc.		2,700		61,209
Whirlpool Corp.		730		135,546
				894,829
Household Products    3.7%
Church & Dwight Co., Inc.		5,840		289,255
Clorox Co. (The)		2,950		394,386
Colgate-Palmolive Co.		20,300		1,462,412
Kimberly-Clark Corp.		8,180		1,061,355
Procter & Gamble Co. (The)		58,800		5,135,004
				8,342,412
Independent Power & Renewable Electricity Producers    0.1%
AES Corp.		15,200		171,912
NRG Energy, Inc.		7,200		121,680
				293,592
Industrial Conglomerates    2.8%
3M Co.		7,650		1,498,099
General Electric Co.		111,820		3,241,662
Honeywell International, Inc.		9,770		1,281,238
Roper Technologies, Inc.		1,310		286,497
				6,307,496

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 17

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Insurance    2.9%
Aflac, Inc.		5,300	$	396,864
Allstate Corp. (The)		4,800		390,192
American International Group, Inc.		12,100		737,011
Aon PLC		3,460		414,647
Arthur J. Gallagher & Co.		2,500		139,525
Assurant, Inc.		800		76,992
Chubb Ltd.		6,057		831,323
Cincinnati Financial Corp.		2,100		151,389
Hartford Financial Services Group, Inc. (The)		5,000		241,800
Lincoln National Corp.		3,000		197,790
Loews Corp.		3,700		172,494
Marsh & McLennan Cos., Inc.		6,800		504,084
MetLife, Inc.		14,100		730,521
Principal Financial Group, Inc.		3,600		234,468
Progressive Corp. (The)		7,700		305,844
Torchmark Corp.		1,500		115,065
Travelers Cos., Inc. (The)		3,670		446,492
Unum Group		3,100		143,623
Willis Towers Watson PLC		1,710		226,780
XL Group Ltd. (Bermuda)		3,600		150,660
				6,607,564
Internet & Direct Marketing Retail    2.3%
Amazon.com, Inc.*		3,840		3,551,962
Expedia, Inc.		1,170		156,452
Netflix, Inc.*		4,170		634,674
Priceline Group, Inc. (The)*		480		886,474
TripAdvisor, Inc.*		1,090		49,061
				5,278,623
Internet Software & Services    1.9%
Akamai Technologies, Inc.*		800		48,752
Alphabet, Inc. (Class A Stock)*		1,300		1,201,876
Alphabet, Inc. (Class C Stock)*		1,291		1,169,594
eBay, Inc.*		4,400		147,004
Facebook, Inc. (Class A Stock)*		10,260		1,541,565
VeriSign, Inc.*		400		35,568
Yahoo!, Inc.*		3,800		183,198
				4,327,557

See Notes to Financial Statements.

18

Description	Shares		Value
COMMON STOCKS (Continued)
IT Services    1.5%
Accenture PLC (Class A Stock)		2,710	$	328,723
Alliance Data Systems Corp.		250		62,407
Automatic Data Processing, Inc.		1,960		204,800
Cognizant Technology Solutions Corp. (Class A Stock)*		2,620		157,803
CSRA, Inc.		600		17,448
DXC Technology Co.*		1,259		94,856
Fidelity National Information Services, Inc.		1,400		117,866
Fiserv, Inc.*		940		111,992
Gartner, Inc.*		390		44,495
Global Payments, Inc.		700		57,232
International Business Machines Corp.		3,740		599,485
Mastercard, Inc. (Class A Stock)		4,110		478,075
Paychex, Inc.		1,400		82,992
PayPal Holdings, Inc.*		4,900		233,828
Teradata Corp.*		500		14,590
Total System Services, Inc.		700		40,117
Visa, Inc. (Class A Stock)		8,060		735,233
Western Union Co. (The)		2,000		39,720
				3,421,662
Leisure Products    0.1%
Hasbro, Inc.		1,100		109,021
Mattel, Inc.		3,300		73,986
				183,007
Life Sciences Tools & Services    0.3%
Agilent Technologies, Inc.		1,400		77,070
Illumina, Inc.*		620		114,613
Mettler-Toledo International, Inc.*		110		56,476
PerkinElmer, Inc.		500		29,705
Thermo Fisher Scientific, Inc.		1,660		274,448
Waters Corp.*		340		57,763
				610,075
Machinery    1.8%
Caterpillar, Inc.		7,580		775,131
Cummins, Inc.		1,990		300,371
Deere & Co.		3,760		419,654
Dover Corp.		2,000		157,760
Flowserve Corp.		1,700		86,479
Fortive Corp.		3,850		243,551
Illinois Tool Works, Inc.		4,000		552,360

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 19

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Machinery (cont’d.)
Ingersoll-Rand PLC		3,300	$	292,875
PACCAR, Inc.		4,500		300,285
Parker-Hannifin Corp.		1,710		274,968
Pentair PLC (United Kingdom)		2,100		135,471
Snap-on, Inc.		750		125,647
Stanley Black & Decker, Inc.		1,960		266,854
Xylem, Inc.		2,300		118,243
				4,049,649
Media    2.8%
CBS Corp. (Class B Stock)		3,600		239,616
Charter Communications, Inc. (Class A Stock)*		2,090		721,384
Comcast Corp. (Class A Stock)		45,800		1,794,902
Discovery Communications, Inc. (Class A Stock)*		1,400		40,292
Discovery Communications, Inc. (Class C Stock)*		2,000		55,960
DISH Network Corp. (Class A Stock)*		2,200		141,768
Interpublic Group of Cos., Inc. (The)		3,800		89,566
News Corp. (Class A Stock)		3,650		46,428
News Corp. (Class B Stock)		1,100		14,300
Omnicom Group, Inc.		2,300		188,876
Scripps Networks Interactive, Inc. (Class A Stock)		900		67,248
TEGNA, Inc.		2,000		50,960
Time Warner, Inc.		7,500		744,525
Twenty-First Century Fox, Inc. (Class A Stock)		10,100		308,454
Twenty-First Century Fox, Inc. (Class B Stock)		4,700		140,342
Viacom, Inc. (Class B Stock)		3,300		140,448
Walt Disney Co. (The)		14,100		1,629,960
				6,415,029
Metals & Mining    0.3%
Freeport-McMoRan, Inc.*		14,700		187,425
Newmont Mining Corp.		5,900		199,479
Nucor Corp.		3,500		214,655
				601,559
Multi-Utilities    2.2%
Ameren Corp.		5,600		306,264
CenterPoint Energy, Inc.		9,900		282,447
CMS Energy Corp.		6,400		290,560
Consolidated Edison, Inc.		7,000		554,960
Dominion Resources, Inc.		14,500		1,122,735
DTE Energy Co.		4,140		433,003

See Notes to Financial Statements.

20

Description	Shares		Value
COMMON STOCKS (Continued)
Multi-Utilities (cont’d.)
NiSource, Inc.		7,400	$	179,450
Public Service Enterprise Group, Inc.		11,700		515,385
SCANA Corp.		3,300		218,823
Sempra Energy		5,780		653,255
WEC Energy Group, Inc.		7,284		440,828
				4,997,710
Multiline Retail    0.4%
Dollar General Corp.		2,500		181,775
Dollar Tree, Inc.*		2,300		190,371
Kohl’s Corp.		1,700		66,351
Macy’s, Inc.		2,900		84,738
Nordstrom, Inc.(a)		1,100		53,097
Target Corp.		5,400		301,590
				877,922
Oil, Gas & Consumable Fuels    2.3%
Anadarko Petroleum Corp.		2,630		149,962
Apache Corp.		1,800		87,552
Cabot Oil & Gas Corp.		2,200		51,128
Chesapeake Energy Corp.*(a)		3,600		18,936
Chevron Corp.		9,070		967,769
Cimarex Energy Co.		460		53,673
Concho Resources, Inc.*		710		89,929
ConocoPhillips		5,900		282,669
Devon Energy Corp.		2,500		98,725
EOG Resources, Inc.		2,810		259,925
EQT Corp.		870		50,582
Exxon Mobil Corp.		19,920		1,626,468
Hess Corp.		1,230		60,061
Kinder Morgan, Inc.		9,100		187,733
Marathon Oil Corp.		4,000		59,480
Marathon Petroleum Corp.		2,480		126,331
Murphy Oil Corp.		700		18,326
Newfield Exploration Co.*		900		31,158
Noble Energy, Inc.		2,000		64,660
Occidental Petroleum Corp.		3,700		227,698
ONEOK, Inc.		1,000		52,610
Phillips 66		2,100		167,076
Pioneer Natural Resources Co.		820		141,852
Range Resources Corp.		900		23,841

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 21

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Oil, Gas & Consumable Fuels (cont’d.)
Tesoro Corp.		600	$	47,826
Valero Energy Corp.		2,200		142,142
Williams Cos., Inc. (The)		3,900		119,457
				5,207,569
Personal Products    0.3%
Coty, Inc. (Class A Stock)(a)		10,800		192,780
Estee Lauder Cos., Inc. (The) (Class A Stock)		5,100		444,414
				637,194
Pharmaceuticals    1.7%
Bristol-Myers Squibb Co.		7,100		397,955
Eli Lilly & Co.		4,100		336,446
Johnson & Johnson		11,500		1,419,905
Mallinckrodt PLC*		470		22,052
Merck & Co., Inc.		11,600		723,028
Mylan NV*		1,900		70,965
Perrigo Co. PLC		650		48,061
Pfizer, Inc.		25,200		854,784
Zoetis, Inc.		2,100		117,831
				3,991,027
Professional Services    0.3%
Equifax, Inc.		1,540		208,377
Nielsen Holdings PLC		4,300		176,859
Robert Half International, Inc.		1,600		73,680
Verisk Analytics, Inc.*		2,000		165,620
				624,536
Real Estate Management & Development    0.1%
CBRE Group, Inc. (Class A Stock)*		4,800		171,888
Road & Rail    1.1%
CSX Corp.		11,900		604,996
J.B. Hunt Transport Services, Inc.		1,100		98,626
Kansas City Southern		1,400		126,098
Norfolk Southern Corp.		3,730		438,238
Ryder System, Inc.		700		47,537
Union Pacific Corp.		10,440		1,168,862
				2,484,357

See Notes to Financial Statements.

22

Description	Shares		Value
COMMON STOCKS (Continued)
Semiconductors & Semiconductor Equipment    1.3%
Advanced Micro Devices, Inc.*		3,300	$	43,890
Analog Devices, Inc.		1,548		117,958
Applied Materials, Inc.		4,700		190,867
Broadcom Ltd.		1,752		386,859
Intel Corp.		20,600		744,690
KLA-Tencor Corp.		700		68,754
Lam Research Corp.		710		102,844
Microchip Technology, Inc.(a)		900		68,022
Micron Technology, Inc.*		4,500		124,515
NVIDIA Corp.		2,570		268,051
Qorvo, Inc.*		600		40,818
QUALCOMM, Inc.		6,400		343,936
Skyworks Solutions, Inc.		830		82,784
Texas Instruments, Inc.		4,400		348,392
Xilinx, Inc.		1,100		69,421
				3,001,801
Software    1.9%
Activision Blizzard, Inc.		3,000		156,750
Adobe Systems, Inc.*		2,160		288,878
Autodesk, Inc.*		900		81,063
CA, Inc.		1,300		42,679
Citrix Systems, Inc.*		700		56,658
Electronic Arts, Inc.*		1,400		132,748
Intuit, Inc.		1,060		132,723
Microsoft Corp.		33,700		2,307,102
Oracle Corp.		13,000		584,480
Red Hat, Inc.*		800		70,464
salesforce.com, Inc.*		2,900		249,748
Symantec Corp.		2,600		82,238
Synopsys, Inc.*		700		51,590
				4,237,121
Specialty Retail    2.1%
Advance Auto Parts, Inc.		720		102,341
AutoNation, Inc.*		600		25,200
AutoZone, Inc.*		280		193,813
Bed Bath & Beyond, Inc.		1,400		54,250
Best Buy Co., Inc.		2,600		134,706
CarMax, Inc.*(a)		1,800		105,300
Foot Locker, Inc.		1,300		100,542

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 23

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Shares		Value
COMMON STOCKS (Continued)
Specialty Retail (cont’d.)
Gap, Inc. (The)		2,100	$	55,020
Home Depot, Inc. (The)		11,810		1,843,541
L Brands, Inc.		2,300		121,463
Lowe’s Cos., Inc.		8,400		712,992
O’Reilly Automotive, Inc.*		890		220,853
Ross Stores, Inc.		3,780		245,700
Signet Jewelers Ltd.		670		44,113
Staples, Inc.		6,300		61,551
Tiffany & Co.		1,040		95,316
TJX Cos., Inc. (The)		6,300		495,432
Tractor Supply Co.		1,300		80,483
Ulta Beauty, Inc.*		570		160,421
				4,853,037
Technology Hardware, Storage & Peripherals    1.7%
Apple, Inc.		22,860		3,283,839
Hewlett Packard Enterprise Co.		7,200		134,136
HP, Inc.		7,300		137,386
NetApp, Inc.		1,200		47,820
Seagate Technology PLC		1,300		54,769
Western Digital Corp.		1,232		109,734
Xerox Corp.		3,700		26,603
				3,794,287
Textiles, Apparel & Luxury Goods    0.6%
Coach, Inc.		2,700		106,353
Hanesbrands, Inc.		3,600		78,516
Michael Kors Holdings Ltd.*		1,500		55,995
NIKE, Inc. (Class B Stock)		12,820		710,356
PVH Corp.		770		77,793
Ralph Lauren Corp.		570		46,010
Under Armour, Inc. (Class A Stock)*(a)		1,700		36,533
Under Armour, Inc. (Class C Stock)		1,711		33,211
VF Corp.		3,220		175,909
				1,320,676
Tobacco    3.7%
Altria Group, Inc.		44,600		3,201,388
Philip Morris International, Inc.		35,650		3,951,446
Reynolds American, Inc.		19,030		1,227,435
				8,380,269

See Notes to Financial Statements.

24

Description	Shares		Value
COMMON STOCKS (Continued)
Trading Companies & Distributors    0.2%
Fastenal Co.		3,700	$	165,316
United Rentals, Inc.*		1,080		118,433
W.W. Grainger, Inc.		700		134,890
				418,639
Water Utilities    0.1%
American Water Works Co., Inc.		4,100		327,016
TOTAL COMMON STOCKS (cost $164,180,269)				217,918,210
PREFERRED STOCK    0.1%
Pharmaceuticals
Allergan PLC, CVT, 5.50%* (cost $243,895)		1,428		348,232
	Units
RIGHTS*    0.0%
Food & Staples Retailing
Safeway Casa Ley, expiring 01/30/19, CVR(b)^		2,400		559
Safeway PDC, CVR(b)^		2,400		—
TOTAL RIGHTS (cost $2,553)				559
TOTAL LONG-TERM INVESTMENTS (cost $164,426,717)				218,267,001
	Shares
SHORT-TERM INVESTMENTS    5.1%
AFFILIATED MUTUAL FUNDS    4.8%
Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund(c)		9,843,399		9,843,399
Prudential Investment Portfolios 2 - Prudential Institutional Money Market Fund (cost $1,185,694; includes $1,183,941 of cash collateral for securities on loan)(c)(d)		1,185,446		1,185,684
TOTAL AFFILIATED MUTUAL FUNDS (cost $11,029,093)				11,029,083

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 25

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value
U.S. TREASURY OBLIGATION(e)(f)    0.3%
U.S. Treasury Bill (cost $599,446)		0.745	%		06/15/17		600	$	599,510
TOTAL SHORT-TERM INVESTMENTS (cost $11,628,539)									11,628,593
TOTAL INVESTMENTS    100.6% (cost $176,055,256)									229,895,594
Liabilities in excess of other assets(h)    (0.6)%									(1,462,812	)
NET ASSETS    100.0%								$	228,432,782

The following abbreviations are used in semiannual report:

CVR—Contingent Value Rights

CVT—Convertible Security

LIBOR—London Interbank Offered Rate

OTC—Over-the-counter

^ Indicates a Level 3 security. The aggregate value of Level 3 securities is $559 and 0.0% of net assets.

# Principal amount is shown in U.S. dollars unless otherwise stated.

* Non-income producing security.

(a) All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $1,147,909; cash collateral of $1,183,941 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments.

(b) Indicates a security that has been deemed illiquid; the aggregate value of $559 is approximately 0.0% of net assets.

(c) PGIM Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund and Prudential Institutional Money Market Fund.

(d) Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment.

(e) Represents security, or a portion thereof, segregated as collateral for futures contracts.

(f) Rates shown reflect yield to maturity at purchase date.

(h) Includes net unrealized appreciation (depreciation) on the following derivative contracts held at reporting period end:

Futures contracts outstanding at April 30, 2017:

Number of Contracts		Type	Expiration Date		Value at Trade Date		Value at April 30, 2017		Unrealized Appreciation (Depreciation)
		Long Position:
	83	S&P 500 E-Mini Index		Jun. 2017	$	9,816,260	$	9,879,075	$	62,815

U.S. Treasury Obligation with a market value of $599,510 has been segregated with Goldman Sachs & Co. to cover requirements for open futures contracts at April 30, 2017.

See Notes to Financial Statements.

26

Fair Value Measurements:

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

Level 1—unadjusted quoted prices generally in active markets for identical securities.

Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.

Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.

The following is a summary of the inputs used as of April 30, 2017 in valuing such portfolio securities:

	Level 1		Level 2		Level 3
Investments in Securities
Common Stocks
Aerospace & Defense	$	6,021,823	$	—	$	—
Air Freight & Logistics		1,807,368		—		—
Airlines		1,539,963		—		—
Auto Components		374,633		—		—
Automobiles		987,391		—		—
Banks		16,764,369		—		—
Beverages		9,630,567		—		—
Biotechnology		2,466,853		—		—
Building Products		876,746		—		—
Capital Markets		7,596,109		—		—
Chemicals		4,821,501		—		—
Commercial Services & Supplies		794,682		—		—
Communications Equipment		947,594		—		—
Construction & Engineering		242,092		—		—
Construction Materials		331,827		—		—
Consumer Finance		1,956,346		—		—
Containers & Packaging		724,234		—		—
Distributors		224,945		—		—
Diversified Consumer Services		49,580		—		—
Diversified Financial Services		4,158,596		—		—
Diversified Telecommunication Services		16,520,103		—		—
Electric Utilities		9,405,363		—		—
Electrical Equipment		1,464,921		—		—
Electronic Equipment, Instruments & Components		358,125		—		—
Energy Equipment & Services		978,231		—		—
Equity Real Estate Investment Trusts (REITs)		9,466,494		—		—
Food & Staples Retailing		9,530,147		—		—
Food Products		7,176,622		—		—

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 27

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

	Level 1		Level 2		Level 3
Common Stocks (continued)
Health Care Equipment & Supplies	$	2,259,061	$	—	$	—
Health Care Providers & Services		2,337,735		—		—
Health Care Technology		77,700		—		—
Health Care Equipment & Supplies		63,737		—		—
Hotels, Restaurants & Leisure		3,304,649		—		—
Household Durables		894,829		—		—
Household Products		8,342,412		—		—
Independent Power & Renewable Electricity Producers		293,592		—		—
Industrial Conglomerates		6,307,496		—		—
Insurance		6,607,564		—		—
Internet & Direct Marketing Retail		5,278,623		—		—
Internet Software & Services		4,327,557		—		—
IT Services		3,421,662		—		—
Leisure Products		183,007		—		—
Life Sciences Tools & Services		610,075		—		—
Machinery		4,049,649		—		—
Media		6,415,029		—		—
Metals & Mining		601,559		—		—
Multi-Utilities		4,997,710		—		—
Multiline Retail		877,922		—		—
Oil, Gas & Consumable Fuels		5,207,569		—		—
Personal Products		637,194		—		—
Pharmaceuticals		3,991,027		—		—
Professional Services		624,536		—		—
Real Estate Management & Development		171,888		—		—
Road & Rail		2,484,357		—		—
Semiconductors & Semiconductor Equipment		3,001,801		—		—
Software		4,237,121		—		—
Specialty Retail		4,853,037		—		—
Technology Hardware, Storage & Peripherals		3,794,287		—		—
Textiles, Apparel & Luxury Goods		1,320,676		—		—
Tobacco		8,380,269		—		—
Trading Companies & Distributors		418,639		—		—
Water Utilities		327,016		—		—
Preferred Stock
Pharmaceuticals		348,232		—		—
Rights
Food & Staples Retailing		—		—		559
Affiliated Mutual Funds		11,029,083		—		—
U.S. Treasury Obligation		—		599,510		—
Other Financial Instruments*
Futures Contracts		62,815		—		—
Total	$	229,358,340	$	599,510	$	559

* Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value.

See Notes to Financial Statements.

28

During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.

Industry Classification:

The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2017 were as follows:

Banks	7.3	%
Diversified Telecommunication Services	7.2
Affiliated Mutual Funds (including 0.5% of collateral for securities on loan)	4.8
Beverages	4.2
Food & Staples Retailing	4.2
Equity Real Estate Investment Trusts (REITs)	4.1
Electric Utilities	4.1
Tobacco	3.7
Household Products	3.7
Capital Markets	3.3
Food Products	3.1
Insurance	2.9
Media	2.8
Industrial Conglomerates	2.8
Aerospace & Defense	2.6
Internet & Direct Marketing Retail	2.3
Oil, Gas & Consumable Fuels	2.3
Multi-Utilities	2.2
Specialty Retail	2.1
Chemicals	2.1
Internet Software & Services	1.9
Software	1.9
Pharmaceuticals	1.8
Diversified Financial Services	1.8
Machinery	1.8
Technology Hardware, Storage & Peripherals	1.7
IT Services	1.5
Hotels, Restaurants & Leisure	1.4
Semiconductors & Semiconductor Equipment	1.3
Road & Rail	1.1
Biotechnology	1.1
Health Care Providers & Services	1.0
Health Care Equipment & Supplies	1.0
Consumer Finance	0.9
Air Freight & Logistics	0.8
Airlines	0.7	%
Electrical Equipment	0.6
Textiles, Apparel & Luxury Goods	0.6
Automobiles	0.4
Energy Equipment & Services	0.4
Communications Equipment	0.4
Household Durables	0.4
Multiline Retail	0.4
Building Products	0.4
Commercial Services & Supplies	0.4
Containers & Packaging	0.3
Personal Products	0.3
Professional Services	0.3
Life Sciences Tools & Services	0.3
Metals & Mining	0.3
U.S. Treasury Obligation	0.3
Trading Companies & Distributors	0.2
Auto Components	0.2
Electronic Equipment, Instruments & Components	0.2
Construction Materials	0.1
Water Utilities	0.1
Independent Power & Renewable Electricity Producers	0.1
Construction & Engineering	0.1
Distributors	0.1
Leisure Products	0.1
Real Estate Management & Development	0.1
Health Care Technology	0.0	*
Health Care Equipment & Supplies	0.0	*
Diversified Consumer Services	0.0	*
	100.6
Liabilities in excess of other assets	(0.6	)
	100.0	%

* Less than +/- 0.05%

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 29

Schedule of Investments (unaudited) (continued)

as of April 30, 2017

Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:

The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity contracts risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.

Fair values of derivative instruments as of April 30, 2017 as presented in the Statement of Assets and Liabilities:

	Asset Derivatives					Liability Derivatives
Derivatives not accounted for as hedging instruments, carried at fair value	Balance Sheet Location		Fair Value			Balance Sheet Location		Fair Value
Equity contracts		Due from/to broker—variation margin futures	$	62,815	*		—	$	—
Equity contracts		Unaffiliated investments		559			—		—
Total			$	63,374				$	—

* Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities.

The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2017 are as follows:

Amount of Realized Gain (Loss) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Futures
Equity contracts	$	744,218

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Rights(1)			Futures		Total
Equity contracts	$	(47	)	$	152,717	$	152,670

(1) Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations.

For the six months ended April 30, 2017, the Fund’s average value at trade date for futures contracts-long positions was $8,262,598.

See Notes to Financial Statements.

30

Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:

The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below.

Offsetting of financial instruments/transactions assets and liabilities:

Description	Gross amounts  of recognized assets(1)		Collateral Pledged(2)			Net Amount
Securities on Loan	$	1,147,909	$	(1,147,909	)	$	—

(1) Amount represents market value.

(2) Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions.

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 31

Statement of Assets & Liabilities (unaudited)

as of April 30, 2017

Assets
Investments at value, including securities on loan of $1,147,909:
Unaffiliated investments (cost $165,026,163)	$	218,866,511
Affiliated investments (cost $11,029,093)		11,029,083
Dividends and interest receivable		375,603
Receivable for Fund shares sold		100,123
Tax reclaim receivable		8,870
Prepaid expenses		805
Total assets		230,380,995
Liabilities
Payable to broker for collateral for securities on loan		1,183,941
Payable for Fund shares reacquired		329,948
Accrued expenses		164,262
Management fee payable		140,892
Distribution fee payable		74,031
Affiliated transfer agent fee payable		31,400
Due to broker—variation margin futures		23,240
Deferred trustees’ fees		499
Total liabilities		1,948,213
Net Assets	$	228,432,782
Net assets were comprised of:
Shares of beneficial interest, at par	$	16,432
Paid-in capital in excess of par		175,641,814
		175,658,246
Undistributed net investment income		386,937
Accumulated net realized loss on investment transactions		(1,514,066	)
Net unrealized appreciation on investments and foreign currencies		53,901,665
Net assets, April 30, 2017	$	228,432,782

See Notes to Financial Statements.

32

Class A
Net asset value and redemption price per share, ($175,450,115 ÷ 12,608,859 shares of beneficial interest issued and outstanding)	$	13.91
Maximum sales charge (5.50% of offering price)		.81
Maximum offering price to public	$	14.72
Class B
Net asset value, offering price and redemption price per share, ($7,373,230 ÷ 532,366 shares of beneficial interest issued and outstanding)	$	13.85
Class C
Net asset value, offering price and redemption price per share, ($38,710,042 ÷ 2,795,895 shares of beneficial interest issued and outstanding)	$	13.85
Class Q
Net asset value, offering price and redemption price per share, ($29,292 ÷ 2,098 shares of beneficial interest issued and outstanding)	$	13.96
Class R
Net asset value, offering price and redemption price per share, ($362,393 ÷ 26,074 shares of beneficial interest issued and outstanding)	$	13.90
Class Z
Net asset value, offering price and redemption price per share, ($6,507,710 ÷ 466,745 shares of beneficial interest issued and outstanding)	$	13.94

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 33

Statement of Operations (unaudited)

Six Months Ended April 30, 2017

Net Investment Income (Loss)
Income
Unaffiliated dividend income	$	2,485,311
Affiliated dividend income		42,105
Income from securities lending, net (including affiliated income of $1,794)		3,456
Interest income		1,190
Total income		2,532,062
Expenses
Management fee		850,287
Distribution fee—Class A		258,434
Distribution fee—Class B		40,480
Distribution fee—Class C		196,889
Distribution fee—Class R		1,268
Transfer agent’s fees and expenses (including affiliated expense of $57,700)		168,000
Custodian and accounting fees		54,000
Registration fees		43,000
Shareholders’ reports		27,000
Audit fee		25,000
Legal fees and expenses		10,000
Trustees’ fees		6,000
Miscellaneous		9,089
Total expenses		1,689,447
Less: Distribution fee waiver—Class A		(43,072	)
Less: Distribution fee waiver—Class R		(423	)
Net expenses		1,645,952
Net investment income (loss)		886,110
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions (including affiliated of $168)		2,051,393
Futures transactions		744,218
Foreign currency transactions		(1,796	)
		2,793,815
Net change in unrealized appreciation (depreciation) on:
Investments (including affiliated of ($170))		17,191,698
Futures		152,717
Foreign currencies		1,280
		17,345,695
Net gain (loss) on investments and foreign currency transactions		20,139,510
Net Increase (Decrease) In Net Assets Resulting From Operations	$	21,025,620

See Notes to Financial Statements.

34

Statement of Changes in Net Assets (unaudited)

	Six Months Ended April 30, 2017			Year Ended October 31, 2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	886,110		$	2,402,535
Net realized gain (loss) on investments and foreign currency transactions		2,793,815			14,576,675
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		17,345,695			(10,996,934	)
Net increase (decrease) in net assets resulting from operations		21,025,620			5,982,276
Dividends and Distributions
Dividends from net investment income
Class A		(2,090,702	)		(1,783,179	)
Class B		(42,128	)		(32,714	)
Class C		(201,451	)		(124,223	)
Class Q		—			—
Class R		(3,166	)		(2,642	)
Class Z		(96,074	)		(69,723	)
		(2,433,521	)		(2,012,481	)
Distributions from net realized gains
Class A		(10,624,756	)		(3,297,410	)
Class B		(520,479	)		(218,683	)
Class C		(2,488,861	)		(830,401	)
Class Q		—			—
Class R		(20,046	)		(6,443	)
Class Z		(407,553	)		(103,730	)
		(14,061,695	)		(4,456,667	)
Fund share transactions (Net of share conversions)
Net proceeds from shares sold		4,689,947			13,780,024
Net asset value of shares issued in reinvestment of dividends and distributions		16,111,166			6,324,163
Cost of shares reacquired		(20,464,018	)		(34,975,736	)
Net increase (decrease) in net assets from Fund share transactions		337,095			(14,871,549	)
Total increase (decrease)		4,867,499			(15,358,421	)
Net Assets:
Beginning of period		223,565,283			238,923,704
End of period(a)	$	228,432,782		$	223,565,283
(a) Includes undistributed net investment income of:	$	386,937		$	1,934,348

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 35

Notes to Financial Statements (unaudited)

Prudential Investment Portfolios 16 (the “Trust”) is registered under the Investment Company Act of 1940, as amended, (“1940 Act”) as an open-end, diversified management investment company. The Trust is presently comprised of two funds: Prudential QMA Defensive Equity Fund (the “Fund”) and Prudential Income Builder Fund. These financial statements relate only to Prudential QMA Defensive Equity Fund. The financial statements of the other fund are not presented herein. The Trust was organized as a business trust in Delaware on July 29, 1998.

The investment objective of the Fund is to seek long-term capital appreciation.

Note 1. Accounting Policies

The Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services-Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.

Securities Valuation: The Fund holds securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Trustees (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or “The Manager”)(formerly known as Prudential Investments LLC). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.

Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Schedule of Investments.

Common and preferred stocks, exchange-traded funds, and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official

36

closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.

In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.

Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. Such confidence level is a measure of the probability of a relationship between a given equity security and the factors used in the models. If the confidence level is not met or the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.

Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.

Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.

When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

Restricted and Illiquid Securities: Subject to guidelines adapted by the Board, the Fund may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted

Prudential QMA Defensive Equity Fund 37

Notes to Financial Statements (unaudited) (continued)

securities are valued pursuant to the valuation procedures noted above. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the investment. Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Fund’s Subadviser under the guidelines adopted by the Trustees of the Fund. However, the liquidity of the Fund’s investments in Rule 144A securities could be impaired if trading does not develop or declines.

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:

(i) market value of investment securities, other assets and liabilities-at the current rates of exchange;

(ii) purchases and sales of investment securities, income and expenses-at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.

Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from holdings of foreign currencies, forward currency contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.

38

Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.

Securities Lending: The Fund may lend its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed on the Statement of Operations as “Income from securities lending, net”.

Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.

Prudential QMA Defensive Equity Fund 39

Notes to Financial Statements (unaudited) (continued)

The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates. The Fund may also use futures to gain additional market exposure. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Financial futures contracts involve elements of risk in excess of the amounts reflected on the Statement of Assets and Liabilities. With exchange-traded futures contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.

Rights: The Fund may hold rights acquired either through a direct purchase, including as part of private placement, or pursuant to corporate actions. Rights entitle the holder to buy a proportionate amount of common stock at a specific price and time through the expiration dates. Such rights are held as long positions by the Fund until exercised, sold or expired. Rights are valued at fair value in accordance with the Board approved fair valuation procedures.

Concentration of Risk: Foreign security and currency transaction may involve certain considerations and risks not typically associated with those of U.S. companies as a result of, among other factors, the possibility of political or economic instability or the level of governmental supervision and regulation of foreign security markets.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on an accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.

Net investment income or loss (other than distribution fees which are charged directly to the respective class and transfer agency fees specific to Class Q shares which are charged to that share class) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.

Dividends and Distributions: The Fund expects to pay dividends from net investment income and distributions from net realized capital and currency gains, if any, annually.

40

Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.

Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded net of reclaimable amounts, at the time the related income is earned.

Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those amounts.

Note 2. Agreements

The Trust, on behalf of the Fund, has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PGIM Investments has entered into a subadvisory agreement with Quantitative Management Associates LLC (“QMA”). The subadvisory agreement provides that QMA furnishes investment advisory services in connection with the management of the Fund. In connection therewith, QMA is obligated to keep certain books and records of the Fund. PGIM Investments pays for the services of QMA, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.

The management fee paid to PGIM Investments is accrued daily and payable monthly at an annual rate of .75% of the average daily net assets up to $500 million, .70% of average daily net assets for the next $500 million and .65% of average daily net assets in excess of $1 billion. The effective management fee rate was .75% for the six months ended April 30, 2017.

The Trust, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class Q, Class R and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B, Class C and Class R shares, pursuant to plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Q and Class Z shares of the Fund.

Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1%, 1% and .75% of the average daily net assets of the Class A, B, C and R shares, respectively. PIMS has contractually agreed through February 28, 2018 to limit such expenses to .25% and .50% of the average daily net assets of the Class A and Class R shares, respectively.

Prudential QMA Defensive Equity Fund 41

Notes to Financial Statements (unaudited) (continued)

PIMS has advised the Fund that it has received $76,063 in front-end sales charges resulting from sales of Class A shares, during the six months ended April 30, 2017. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

PIMS has advised the Fund that for the six months ended April 30, 2017, it has received $250, $4,950 and $2,576 in contingent deferred sales charges imposed upon certain redemptions by Class A, Class B and Class C shareholders, respectively.

PGIM Investments, PIMS, and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

Note 3. Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments, and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.

The Fund may invest its overnight sweep cash in the Prudential Core Ultra Short Bond Fund (the “Core Fund”) and its securities lending cash collateral in the Prudential Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. For the period ended April 30, 2017, PGIM, Inc., was compensated $ 330 by PGIM Investments for managing the Fund’s securities lending cash collateral as subadviser to the Money Market Fund. Earnings from the Core Fund and the Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.

Note 4. Portfolio Securities

The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Treasury securities) for the six months ended April 30, 2017, were $120,459,642 and $135,296,594, respectively.

42

Note 5. Tax Information

The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2017 were as follows:

Tax Basis	$	180,464,582
Appreciation		50,001,026
Depreciation		(570,014	)
Net Unrealized Appreciation	$	49,431,012

The book basis may differ from tax basis due to certain tax-related adjustments.

Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Note 6. Capital

The Fund offers Class A, Class B, Class C, Class Q, Class R, and Class Z shares. Class A shares are subject to a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are not subject to an initial sales charge but are subject to a contingent deferred sales charge (“CDSC”) of 1%. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class B shares are subject to a CDSC of 5%, which decreases by 1% annually to 1% in the fifth and sixth years and 0% in the seventh year. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. The CDSC for Class C shares is 1% for shares redeemed within 12 months of purchase. An exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Q, Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.

Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of beneficial interest.

The Fund has authorized an unlimited number of shares of beneficial interest at $.001 par value per share.

As of April 30, 2017, Prudential, through its affiliates, owned 750 shares of Class Q and 293 shares of Class R. At reporting period end, two shareholders of record held 36% of the Fund’s outstanding shares on behalf of multiple beneficial owners.

Prudential QMA Defensive Equity Fund 43

Notes to Financial Statements (unaudited) (continued)

Transactions in shares of beneficial interest were as follows:

Class A	Shares			Amount
Six months ended April 30, 2017:
Shares sold		218,886		$	2,997,103
Shares issued in reinvestment of dividends and distributions		938,366			12,527,192
Shares reacquired		(893,084	)		(12,245,663	)
Net increase (decrease) in shares outstanding before conversion		264,168			3,278,632
Shares issued upon conversion from other share class(es)		105,416			1,482,561
Shares reacquired upon conversion into other share class(es)		(25,087	)		(345,504	)
Net increase (decrease) in shares outstanding		344,497		$	4,415,689
Year ended October 31, 2016:
Shares sold		567,867		$	7,727,845
Shares issued in reinvestment of dividends and distributions		386,671			5,007,395
Shares reacquired		(1,717,332	)		(23,193,564	)
Net increase (decrease) in shares outstanding before conversion		(762,794	)		(10,458,324	)
Shares issued upon conversion from other share class(es)		240,556			3,261,217
Shares reacquired upon conversion into other share class(es)		(53,272	)		(731,865	)
Net increase (decrease) in shares outstanding		(575,510	)	$	(7,928,972	)
Class B
Six months ended April 30, 2017:
Shares sold		3,167		$	42,983
Shares issued in reinvestment of dividends and distributions		42,047			560,494
Shares reacquired		(59,715	)		(811,923	)
Net increase (decrease) in shares outstanding before conversion		(14,501	)		(208,446	)
Shares reacquired upon conversion into other share class(es)		(93,570	)		(1,311,306	)
Net increase (decrease) in shares outstanding		(108,071	)	$	(1,519,752	)
Year ended October 31, 2016:
Shares sold		20,217		$	272,889
Shares issued in reinvestment of dividends and distributions		19,353			250,234
Shares reacquired		(99,609	)		(1,344,719	)
Net increase (decrease) in shares outstanding before conversion		(60,039	)		(821,596	)
Shares reacquired upon conversion into other share class(es)		(211,481	)		(2,848,892	)
Net increase (decrease) in shares outstanding		(271,520	)	$	(3,670,488	)

44

Class C	Shares			Amount
Six months ended April 30, 2017:
Shares sold		61,708		$	842,043
Shares issued in reinvestment of dividends and distributions		189,094			2,518,726
Shares reacquired		(363,837	)		(4,977,572	)
Net increase (decrease) in shares outstanding before conversion		(113,035	)		(1,616,803	)
Shares reacquired upon conversion into other share class(es)		(40,152	)		(547,794	)
Net increase (decrease) in shares outstanding		(153,187	)	$	(2,164,597	)
Year ended October 31, 2016:
Shares sold		185,313		$	2,517,562
Shares issued in reinvestment of dividends and distributions		68,958			891,629
Shares reacquired		(563,808	)		(7,650,426	)
Net increase (decrease) in shares outstanding before conversion		(309,537	)		(4,241,235	)
Shares reacquired upon conversion into other share class(es)		(54,815	)		(741,013	)
Net increase (decrease) in shares outstanding		(364,352	)	$	(4,982,248	)
Class Q
Period* ended April 30, 2017:
Shares sold		2,532		$	34,736
Shares reacquired		(2,011	)		(27,862	)
Net increase (decrease) in shares outstanding before conversion		521			6,874
Shares issued upon conversion from other share class(es)		1,577			21,855
Net increase (decrease) in shares outstanding		2,098		$	28,729
Class R
Six months ended April 30, 2017:
Shares sold		1,580		$	21,289
Shares issued in reinvestment of dividends and distributions		1,738			23,213
Shares reacquired		—	(1)		(3	)
Net increase (decrease) in shares outstanding		3,318		$	44,499
Year ended October 31, 2016:
Shares sold		1,427		$	18,898
Shares issued in reinvestment of dividends and distributions		702			9,085
Shares reacquired		(4,345	)		(60,678	)
Net increase (decrease) in shares outstanding		(2,216	)	$	(32,695	)
Class Z
Six months ended April 30, 2017:
Shares sold		55,157		$	751,793
Shares issued in reinvestment of dividends and distributions		36,017			481,541
Shares reacquired		(173,445	)		(2,400,995	)
Net increase (decrease) in shares outstanding before conversion		(82,271	)		(1,167,661	)
Shares issued upon conversion from other share class(es)		50,992			700,188
Net increase (decrease) in shares outstanding		(31,279	)	$	(467,473	)
Year ended October 31, 2016:
Shares sold		233,391		$	3,242,830
Shares issued in reinvestment of dividends and distributions		12,785			165,820
Shares reacquired		(198,129	)		(2,726,349	)
Net increase (decrease) in shares outstanding before conversion		48,047			682,301
Shares issued upon conversion from other share class(es)		77,250			1,060,553
Net increase (decrease) in shares outstanding		125,297		$	1,742,854

* Commencement of operations was December 28, 2016.

(1) Less than one full share.

Prudential QMA Defensive Equity Fund 45

Notes to Financial Statements (unaudited) (continued)

Note 7. Borrowings

The Trust, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 6, 2016 through October 5, 2017. The Funds pay an annualized commitment fee of .15% of the unused portion of the SCA. The Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under the SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the 1-month LIBOR rate or (3) zero percent.

The Fund did not utilize the SCA during the six months ended April 30, 2017.

Note 8. Recent Accounting Pronouncements and Reporting Updates

On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.

Note 9. Other

At the Trust’s Board meeting in March, 2017, the Board of Trustees approved a change in the methodology of allocating certain expenses, like Transfer Agent fees (including sub-transfer agent and networking fees) and Blue Sky fees. The impact to the net assets of the Fund and individual share classes is not ascertainable at the present time. PGIM Investment expects to implement the changes by December 31, 2017.

46

Financial Highlights (unaudited)

Class A Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017(b)			2016(b)			2015			2014(b)(f)			2014(b)			2013(b)			2012(b)
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$13.68			$13.71			$14.26			$13.65			$12.86			$11.23			$11.12
Income (loss) from investment operations:
Net investment income (loss)		.06			.16			.13			.03			.12			.13			.13
Net realized and unrealized gain (loss) on investment transactions		1.22			.21			.24			.58			1.46			1.72			.09
Total from investment operations		1.28			.37			.37			.61			1.58			1.85			.22
Less Dividends and Distributions:
Dividends from net investment income		(.17	)		(.14	)		(.12	)		-			(.13	)		(.22	)		(.11	)
Distributions from net realized gains		(.88	)		(.26	)		(.80	)		-			(.66	)		-			-
Total dividends and distributions		(1.05	)		(.40	)		(.92	)		-			(.79	)		(.22	)		(.11	)
Net asset value, end of period		$13.91			$13.68			$13.71			$14.26			$13.65			$12.86			$11.23
Total Return(a)		9.67%			2.85%			2.64%			4.47%			12.66%			16.69%			2.05%
Ratios/Supplemental Data:
Net assets, end of period (000)		$175,450			$167,731			$176,009			$184,830			$181,385			$179,711			$170,788
Average net assets (000)		$173,717			$172,299			$180,590			$181,880			$182,251			$172,847			$188,087
Ratios to average net assets(c):
Expense after waivers and/or expense reimbursement		1.30%	(d)		1.30%			1.27%			1.40%	(d)		1.25%			1.38%			1.41%
Expense before waivers and/or expense reimbursement		1.35%	(d)		1.35%			1.32%			1.45%	(d)		1.30%			1.43%			1.46%
Net investment income (loss)		.93%	(d)		1.20%			.88%			.74%	(d)		.90%			1.05%			1.19%
Portfolio turnover rate		55%	(e)		96%			74%			20%	(e)		87%			239%			174%

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying portfolios in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 47

Financial Highlights (unaudited) (continued)

Class B Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017(b)			2016(b)			2015			2014(b)(f)			2014(b)			2013(b)			2012(b)
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$13.57			$13.60			$14.15			$13.58			$12.80			$11.17			$11.06
Income (loss) from investment operations:
Net investment income (loss)		.01			.06			.04			-	(g)		.02			.04			.05
Net realized and unrealized gain (loss) on investment transactions		1.22			.21			.23			.57			1.45			1.73			.09
Total from investment operations		1.23			.27			.27			.57			1.47			1.77			.14
Less Dividends and Distributions:
Dividends from net investment income		(.07	)		(.04	)		(.02	)		-			(.03	)		(.14	)		(.03	)
Distributions from net realized gains		(.88	)		(.26	)		(.80	)		-			(.66	)		-			-
Total dividends and distributions		(.95	)		(.30	)		(.82	)		-			(.69	)		(.14	)		(.03	)
Net asset value, end of period		$13.85			$13.57			$13.60			$14.15			$13.58			$12.80			$11.17
Total Return(a)		9.31%			2.07%			1.90%			4.20%			11.84%			15.94%			1.26%
Ratios/Supplemental Data:
Net assets, end of period (000)		$7,373			$8,689			$12,401			$17,164			$17,425			$20,780			$24,968
Average net assets (000)		$8,163			$10,392			$14,669			$17,140			$19,454			$22,938			$29,979
Ratios to average net assets(c):
Expense after waivers and/or expense reimbursement		2.05%	(d)		2.05%			2.02%			2.15%	(d)		2.00%			2.13%			2.16%
Expense before waivers and/or expense reimbursement		2.05%	(d)		2.05%			2.02%			2.15%	(d)		2.00%			2.13%			2.16%
Net investment income (loss)		.21%	(d)		.46%			.15%			-%	(d)(h)		.16%			.30%			.45%
Portfolio turnover rate		55%	(e)		96%			74%			20%	(e)		87%			239%			174%

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying portfolios in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

(g) Less than $.005.

(h) Less than .005%.

See Notes to Financial Statements.

48

Class C Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017(b)			2016(b)			2015			2014(b)(f)			2014(b)			2013(b)			2012(b)
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$13.56			$13.60			$14.15			$13.57			$12.80			$11.17			$11.06
Income (loss) from investment operations:
Net investment income (loss)		.01			.06			.02			-	(g)		.02			.04			.05
Net realized and unrealized gain (loss) on investment transactions		1.23			.20			.25			.58			1.44			1.73			.09
Total from investment operations		1.24			.26			.27			.58			1.46			1.77			.14
Less Dividends and Distributions:
Dividends from net investment income		(.07	)		(.04	)		(.02	)		-			(.03	)		(.14	)		(.03	)
Distributions from net realized gains		(.88	)		(.26	)		(.80	)		-			(.66	)		-			-
Total dividends and distributions		(.95	)		(.30	)		(.82	)		-			(.69	)		(.14	)		(.03	)
Net asset value, end of period		$13.85			$13.56			$13.60			$14.15			$13.57			$12.80			$11.17
Total Return(a)		9.40%			2.00%			1.91%			4.27%			11.75%			15.94%			1.26%
Ratios/Supplemental Data:
Net assets, end of period (000)		$38,710			$40,003			$45,046			$50,550			$49,855			$48,666			$50,632
Average net assets (000)		$39,704			$42,741			$48,105			$50,000			$49,435			$49,670			$52,831
Ratios to average net assets(c):
Expense after waivers and/or expense reimbursement		2.05%	(d)		2.05%			2.02%			2.15%	(d)		2.00%			2.13%			2.16%
Expense before waivers and/or expense reimbursement		2.05%	(d)		2.05%			2.02%			2.15%	(d)		2.00%			2.13%			2.16%
Net investment income (loss)		.19%	(d)		.45%			.13%			(.01)%	(d)		.15%			.30%			.44%
Portfolio turnover rate		55%	(e)		96%			74%			20%	(e)		87%			239%			174%

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying portfolios in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

(g) Less than $.005.

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 49

Financial Highlights (unaudited) (continued)

Class Q Shares
	December 28, 2016(a) through April 30, 2017(c)
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$13.34
Income (loss) from investment operations:
Net investment income (loss)		.04
Net realized and unrealized gain (loss) on investments		.58
Total from investment operations		.62
Less Dividends and Distributions:
Dividends from net investment income		-
Distributions from net realized gains on investments		-
Total dividends and distributions		-
Net asset value, end of period		$13.96
Total Return(b)		4.65%
Ratios/Supplemental Data:
Net assets, end of period (000)		$29
Average net assets (000)		$19
Ratios to average net assets(d):
Expense after waivers and/or expense reimbursement		.90%	(e)
Expense before waivers and/or expense reimbursement		.90%	(e)
Net investment income (loss)		.87%	(e)
Portfolio turnover rate		55%	(f)

(a) Commencement of operations.

(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(c) Calculated based on average shares outstanding during the period.

(d) Does not include expenses of the underlying portfolios in which the Fund invests.

(e) Annualized.

(f) Not annualized.

See Notes to Financial Statements.

50

Class R Shares
	Six Months Ended April 30,			Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017(b)			2016(b)			2015			2014(b)(f)			2014(b)			2013(b)			2012(b)
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$13.64			$13.68			$14.23			$13.63			$12.85			$11.21			$11.10
Income (loss) from investment operations:
Net investment income (loss)		.05			.12			.09			.02			.09			.10			.10
Net realized and unrealized gain (loss) on investment transactions		1.22			.20			.25			.58			1.44			1.73			.09
Total from investment operations		1.27			.32			.34			.60			1.53			1.83			.19
Less Dividends and Distributions:
Dividends from net investment income		(.13	)		(.10	)		(.09	)		-			(.09	)		(.19	)		(.08	)
Distributions from net realized gains		(.88	)		(.26	)		(.80	)		-			(.66	)		-			-
Total dividends and distributions		(1.01	)		(.36	)		(.89	)		-			(.75	)		(.19	)		(.08	)
Net asset value, end of period		$13.90			$13.64			$13.68			$14.23			$13.63			$12.85			$11.21
Total Return(a)		9.65%			2.51%			2.39%			4.40%			12.32%			16.52%			1.78%
Ratios/Supplemental Data:
Net assets, end of period (000)		$362			$311			$341			$434			$415			$373			$311
Average net assets (000)		$341			$345			$358			$422			$391			$341			$306
Ratios to average net assets(c):
Expense after waivers and/or expense reimbursement		1.55%	(d)		1.55%			1.52%			1.65%	(d)		1.50%			1.63%			1.66%
Expense before waivers and/or expense reimbursement		1.80%	(d)		1.80%			1.77%			1.90%	(d)		1.75%			1.88%			1.91%
Net investment income (loss)		.66%	(d)		.95%			.63%			.48%	(d)		.65%			.81%			.94%
Portfolio turnover rate		55%	(e)		96%			74%			20%	(e)		87%			239%			174%

(a) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying portfolios in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

Prudential QMA Defensive Equity Fund 51

Financial Highlights (unaudited) (continued)

Class Z Shares
	Six Months Ended April 30,				Year Ended October 31,						Three Months Ended October 31,			Year Ended July 31,
	2017(b)				2016(b)			2015			2014(b)(f)			2014(b)			2013(b)			2012(b)
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$13.72				$13.75			$14.30			$13.68			$12.89			$11.24			$11.14
Income (loss) from investment operations:				��
Net investment income (loss)		.08				.19			.15			.03			.15			.16			.16
Net realized and unrealized gain (loss) on investment transactions		1.22				.21			.26			.59			1.46			1.74			.08
Total from investment operations		1.30				.40			.41			.62			1.61			1.90			.24
Less Dividends and Distributions:
Dividends from net investment income		(.20	)			(.17	)		(.16	)		-			(.16	)		(.25	)		(.14	)
Distributions from net realized gains		(.88	)			(.26	)		(.80	)		-			(.66	)		-			-
Total dividends and distributions		(1.08	)			(.43	)		(.96	)		-			(.82	)		(.25	)		(.14	)
Net asset value, end of period		$13.94				$13.72			$13.75			$14.30			$13.68			$12.89			$11.24
Total Return(a)		9.83%				3.10%			2.89%			4.53%			12.90%			17.13%			2.22%
Ratios/Supplemental Data:
Net assets, end of period (000)		$6,508				$6,832			$5,126			$3,694			$3,473			$3,346			$3,464
Average net assets (000)		$6,684				$5,953			$4,473			$4,210			$3,596			$3,533			$3,240
Ratios to average net assets(c):
Expense after waivers and/or expense reimbursement		1.05%	(d)			1.05%			1.02%			1.15%	(d)		1.00%			1.13%			1.16%
Expense before waivers and/or expense reimbursement		1.05%	(d)			1.05%			1.02%			1.15%	(d)		1.00%			1.13%			1.16%
Net investment income (loss)		1.20%	(d)			1.46%			1.12%			.99%	(d)		1.16%			1.30%			1.44%
Portfolio turnover rate		55%	(e)			96%			74%			20%	(e)		87%			239%			174%

(a) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(b) Calculated based on average shares outstanding during the period.

(c) Does not include expenses of the underlying portfolios in which the Fund invests.

(d) Annualized.

(e) Not annualized.

(f) For the three month period ended October 31, 2014. The Fund changed its fiscal year end from July 31 to October 31, effective October 31, 2014.

See Notes to Financial Statements.

52

∎   MAIL	∎   TELEPHONE	∎   WEBSITE
655 Broad Street Newark, NJ 07102	(800) 225-1852	www.pgiminvestments.com

PROXY VOTING

The Board of Trustees of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.

TRUSTEES

Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’ Hara, Chief Legal Officer • Chad A. Earnst, Chief Compliance Officer • Deborah A. Docs, Secretary • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer

MANAGER	PGIM Investments LLC	655 Broad Street Newark, NJ 07102
INVESTMENT SUBADVISER	Quantitative Management Associates LLC	Gateway Center Two 100 Mulberry Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	655 Broad Street Newark, NJ 07102
CUSTODIAN	The Bank of New York Mellon	225 Liberty Street New York, NY 10286
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 9658 Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154
FUND COUNSEL	Willkie Farr & Gallagher LLP	787 Seventh Avenue New York, NY 10019

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.

E-DELIVERY

To receive your mutual fund documents online, go to www.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.

SHAREHOLDER COMMUNICATIONS WITH TRUSTEES

Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Prudential QMA Defensive Equity Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee.

AVAILABILITY OF PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month.

Mutual Funds:

ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE

PRUDENTIAL QMA DEFENSIVE EQUITY FUND

SHARE CLASS	A	B	C	Q	R	Z
NASDAQ	PAMGX	DMGBX	PIMGX	PAMQX	SPMRX	PDMZX
CUSIP	74442X868	74442X785	74442X793	74442X777	74442X819	74442X827

MFSP504E4

Item 2 – Code of Ethics – Not required, as this is not an annual filing.

Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.

Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.

Item 5 – Audit Committee of Listed Registrants – Not applicable.

Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.

Item 10 – Submission of Matters to a Vote of Security Holders – Not applicable.

Item 11 – Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits

(a) (1) Code of Ethics – Not required, as this is not an annual filing.

      (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.

      (3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:	Prudential Investment Portfolios 16
By:	/s/ Deborah A. Docs
	Deborah A. Docs
	Secretary
Date:	June 19, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Stuart S. Parker
	Stuart S. Parker
	President and Principal Executive Officer
Date:	June 19, 2017
By:	/s/ M. Sadiq Peshimam
	M. Sadiq Peshimam
	Treasurer and Principal Financial and Accounting Officer
Date:	June 19, 2017