UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
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: | Andrew R. French |
| 655 Broad Street, 17th Floor |
| Newark, New Jersey 07102 |
Registrant's telephone number, including area code: | 800-225-1852 |
Date of fiscal year end: | 10/31/2020 |
Date of reporting period: | 4/30/2020 |
Item 1 – Reports to Stockholders
PGIM INCOME BUILDER FUND
SEMIANNUAL REPORT
APRIL 30, 2020
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an email request to PGIM Investments at shareholderreports@pgim.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to shareholderreports@pgim.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
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This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2020 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, member SIPC. Jennison Associates LLC and PGIM, Inc. (PGIM) are registered investment advisers and Prudential Financial companies. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM. PGIM Fixed Income and PGIM Real Estate are units of PGIM. © 2020 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM Real Estate, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgiminvestments.com |
Dear Shareholder:
We hope you find the semiannual report for PGIM Income Builder Fund informative and useful. The report covers performance for the six-month period ended April 30, 2020.
Regarding your investments with PGIM, 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 advisor 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. PGIM is a top-10 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
PGIM Income Builder Fund
June 15, 2020
PGIM Income Builder Fund | 3 |
Performance data quoted represents 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 pgiminvestments.com or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/20 (with sales charges) | |||||||||||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | Since Inception (%) | ||||||||||||
Class A | –13.23 | –14.67 | –0.38 | 3.23 | — | |||||||||||
Class B | –13.52 | –15.51 | –0.38 | 2.94 | — | |||||||||||
Class C | –13.52 | –12.08 | –0.19 | 2.94 | — | |||||||||||
Class R | –13.36 | –10.79 | 0.29 | 3.45 | — | |||||||||||
Class Z | –13.12 | –10.34 | 0.81 | 3.97 | — | |||||||||||
Class R6 | –13.13 | –10.36 | N/A | N/A | 0.59 (12/30/16) | |||||||||||
S&P 500 Index |
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–3.15 | 0.88 | 9.12 | 11.69 | — | ||||||||||||
Bloomberg Barclays US Aggregate Bond Index |
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4.86 | 10.84 | 3.80 | 3.96 | — | ||||||||||||
Average Annual Total Returns as of 4/30/20 Since Inception (%) | ||
Class R6 (12/30/16) | ||
S&P 500 Index | 10.37 | |
Bloomberg Barclays US Aggregate Bond Index | 5.14 |
*Not annualized
Source: PGIM Investments LLC and Lipper Inc.
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Indexes are measured from the closest month-end to the class’ inception date.
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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 R | Class Z | Class R6 | |||||||
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 the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 5.00% (Year 1) 4.00% (Year 2) 3.00% (Year 3) 2.00% (Year 4) 1.00% (Years 5/6) 0.00% (Year 7) | 1.00% 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) | 0.30% (0.25% currently) | 1.00% | 1.00% | 0.75% (0.50% currently) | None | 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 reinvestment of dividends and/or capital gains. Effective on or about June 26, 2020, all issued and outstanding Class B shares will be automatically converted to Class A shares. See the supplement included with this shareholder report for details.
Benchmark Definitions
S&P 500 Index—The 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 is unmanaged and represents securities that are SEC registered, taxable, and dollar denominated. It covers the US investment-grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
Investors cannot invest directly in an index. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes.
PGIM Income Builder Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/20
Ten Largest Holdings | Line of Business | % of Net Assets | ||
PGIM Total Return Bond Fund Class R6 | Affiliated Mutual Funds | 8.9% | ||
Invesco Preferred ETF | Exchange-Traded Funds | 8.0% | ||
SPDR Bloomberg Barclays Convertible Securities ETF | Exchange-Traded Funds | 7.0% | ||
PGIM QMA International Equity Fund Class R6 | Affiliated Mutual Funds | 4.4% | ||
PGIM Short Duration High Yield Income Fund Class R6 | Affiliated Mutual Funds | 2.8% | ||
PGIM QMA Strategic Alpha International Equity ETF | Exchange-Traded Funds | 2.7% | ||
Energy Select Sector SPDR Fund | Exchange-Traded Funds | 1.7% | ||
iShares Core MSCI Emerging Markets ETF | Exchange-Traded Funds | 0.9% | ||
Williams Cos., Inc. (The) | Oil, Gas & Consumable Fuels | 0.9% | ||
AstraZeneca PLC (United Kingdom), ADR | Pharmaceuticals | 0.7% |
Holdings reflect only long-term investments and are subject to change.
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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, 2020. 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 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 paid over the period
PGIM Income Builder Fund | 7 |
Fees and Expenses (continued)
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.
PGIM Income Builder Fund | Beginning Account Value November 1, 2019 | Ending Account Value April 30, 2020 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 867.70 | 0.95 | % | $ | 4.41 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.14 | 0.95 | % | $ | 4.77 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 864.80 | 1.70 | % | $ | 7.88 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.41 | 1.70 | % | $ | 8.52 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 864.80 | 1.70 | % | $ | 7.88 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.41 | 1.70 | % | $ | 8.52 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 866.40 | 1.20 | % | $ | 5.57 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.90 | 1.20 | % | $ | 6.02 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 868.80 | 0.70 | % | $ | 3.25 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.38 | 0.70 | % | $ | 3.52 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 868.70 | 0.70 | % | $ | 3.25 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.38 | 0.70 | % | $ | 3.52 |
*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 182 days in the six-month period ended April 30, 2020, and divided by the 366 days in the Fund’s fiscal year ending October 31, 2020 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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Schedule of Investments (unaudited)
as of April 30, 2020
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 98.6% | ||||||||
AFFILIATED MUTUAL FUNDS 16.1% | ||||||||
PGIM QMA International Equity Fund (Class R6) | 2,411,338 | $ | 14,636,821 | |||||
PGIM Short Duration High Yield Income Fund (Class R6) | 1,119,664 | 9,102,872 | ||||||
PGIM Total Return Bond Fund (Class R6) | 2,054,708 | 29,300,135 | ||||||
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TOTAL AFFILIATED MUTUAL FUNDS | 53,039,828 | |||||||
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COMMON STOCKS 29.4% | ||||||||
Aerospace & Defense 0.7% | ||||||||
Lockheed Martin Corp. | 5,347 | 2,080,304 | ||||||
Raytheon Technologies Corp. | 5,268 | 341,419 | ||||||
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2,421,723 | ||||||||
Banks 0.8% | ||||||||
BNP Paribas SA (France) | 18,942 | 599,184 | ||||||
JPMorgan Chase & Co. | 15,999 | 1,532,064 | ||||||
Truist Financial Corp. | 9,803 | 365,848 | ||||||
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2,497,096 | ||||||||
Biotechnology 0.5% | ||||||||
AbbVie, Inc. | 20,185 | 1,659,207 | ||||||
Capital Markets 0.7% | ||||||||
CME Group, Inc. | 4,049 | 721,572 | ||||||
Goldman Sachs Group, Inc. (The) | 8,573 | 1,572,460 | ||||||
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2,294,032 | ||||||||
Chemicals 0.7% | ||||||||
Akzo Nobel NV (Netherlands) | 10,333 | 780,979 | ||||||
Hexion Holdings Corp. (Class B Stock)* | 3,950 | 33,377 | ||||||
Linde PLC (United Kingdom) | 7,222 | 1,328,776 | ||||||
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2,143,132 | ||||||||
Commercial Services & Supplies 0.3% | ||||||||
Republic Services, Inc. | 13,242 | 1,037,378 | ||||||
Consumer Finance 0.3% | ||||||||
American Express Co. | 12,111 | 1,105,129 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Telecommunication Services 0.2% | ||||||||
Telefonica Deutschland Holding AG (Germany) | 235,493 | $ | 670,515 | |||||
Electric Utilities 0.7% | ||||||||
Edison International | 17,083 | 1,002,943 | ||||||
GenOn Energy Holdings, Inc. (Class A Stock)*^ | 1,853 | 426,190 | ||||||
Keycon Power Holdings LLC^ | 350 | 86,800 | ||||||
SSE PLC (United Kingdom) | 49,460 | 778,858 | ||||||
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2,294,791 | ||||||||
Entertainment 0.3% | ||||||||
Walt Disney Co. (The) | 10,379 | 1,122,489 | ||||||
Equity Real Estate Investment Trusts (REITs) 8.2% | ||||||||
Activia Properties, Inc. (Japan) | 100 | 294,122 | ||||||
Alexandria Real Estate Equities, Inc. | 2,384 | 374,503 | ||||||
American Assets Trust, Inc. | 18,712 | 529,924 | ||||||
American Campus Communities, Inc. | 57,713 | 2,036,692 | ||||||
American Tower Corp. | 3,673 | 874,174 | ||||||
Boston Properties, Inc. | 5,812 | 564,810 | ||||||
Brandywine Realty Trust(a) | 158,758 | 1,771,739 | ||||||
Corporate Office Properties Trust | 19,898 | 525,705 | ||||||
Cousins Properties, Inc. | 8,414 | 253,850 | ||||||
Dexus (Australia) | 47,931 | 285,704 | ||||||
Digital Realty Trust, Inc. | 4,796 | 716,954 | ||||||
Four Corners Property Trust, Inc. | 60,345 | 1,351,125 | ||||||
Frasers Centrepoint Trust (Singapore) | 442,241 | 664,218 | ||||||
Global Medical REIT, Inc. | 139,213 | 1,450,599 | ||||||
Healthpeak Properties, Inc.(a) | 43,784 | 1,144,514 | ||||||
Keppel REIT (Singapore) | 1,090,992 | 815,774 | ||||||
Life Storage, Inc. | 5,474 | 479,468 | ||||||
Link REIT (Hong Kong) | 76,244 | 685,634 | ||||||
Mapletree Logistics Trust (Singapore) | 532,946 | 675,945 | ||||||
Medical Properties Trust, Inc.(a) | 49,929 | 855,783 | ||||||
MGM Growth Properties LLC (Class A Stock) | 65,777 | 1,655,607 | ||||||
Nomura Real Estate Master Fund, Inc. (Japan) | 288 | 330,904 | ||||||
NSI NV (Netherlands) | 16,759 | 672,919 | ||||||
Omega Healthcare Investors, Inc. | 53,706 | 1,565,530 | ||||||
Physicians Realty Trust | 68,903 | 1,062,484 | ||||||
Prologis, Inc. | 23,197 | 2,069,868 | ||||||
Realty Income Corp. | 13,008 | 714,399 | ||||||
Stockland (Australia) | 821,070 | 1,536,526 |
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont’d.) | ||||||||
Summit Industrial Income REIT (Canada) | 66,716 | $ | 497,512 | |||||
Supermarket Income REIT PLC (United Kingdom) | 354,000 | 475,883 | ||||||
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26,932,869 | ||||||||
Food & Staples Retailing 0.3% | ||||||||
Walmart, Inc. | 7,282 | 885,127 | ||||||
Health Care Equipment & Supplies 0.9% | ||||||||
Abbott Laboratories | 18,396 | 1,694,088 | ||||||
Zimmer Biomet Holdings, Inc. | 11,877 | 1,421,677 | ||||||
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3,115,765 | ||||||||
Hotels, Restaurants & Leisure 0.6% | ||||||||
McDonald’s Corp. | 4,087 | 766,558 | ||||||
Six Flags Entertainment Corp. | 63,162 | 1,263,871 | ||||||
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2,030,429 | ||||||||
Household Products 0.5% | ||||||||
Procter & Gamble Co. (The) | 14,989 | 1,766,753 | ||||||
Independent Power & Renewable Electricity Producers 0.6% | ||||||||
Atlantica Yield PLC (Spain) | 7,761 | 185,799 | ||||||
Brookfield Renewable Partners LP (Canada) | 7,862 | 368,649 | ||||||
Clearway Energy, Inc. (Class C Stock)(a) | 31,443 | 629,803 | ||||||
NextEra Energy Partners LP | 12,945 | 651,004 | ||||||
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1,835,255 | ||||||||
Insurance 0.6% | ||||||||
Marsh & McLennan Cos., Inc. | 5,691 | 553,905 | ||||||
MetLife, Inc. | 39,169 | 1,413,218 | ||||||
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1,967,123 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) 0.2% | ||||||||
Starwood Property Trust, Inc. | 57,313 | 741,630 | ||||||
Multi-Utilities 0.4% | ||||||||
Dominion Energy, Inc. | 12,966 | 1,000,067 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Multi-Utilities (cont’d.) | ||||||||
DTE Energy Co. | 1,404 | $ | 145,651 | |||||
Sempra Energy | 796 | 98,585 | ||||||
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1,244,303 | ||||||||
Oil, Gas & Consumable Fuels 4.0% | ||||||||
BP PLC (United Kingdom), ADR(a) | 51,985 | 1,237,243 | ||||||
Cheniere Energy Partners LP, MLP | 10,343 | 348,869 | ||||||
Cheniere Energy, Inc.* | 7,488 | 349,615 | ||||||
Enbridge, Inc. (Canada) | 24,421 | 748,271 | ||||||
Energy Transfer LP, MLP | 55,194 | 463,630 | ||||||
Enterprise Products Partners LP, MLP | 46,647 | 819,121 | ||||||
EQM Midstream Partners LP, MLP | 10,157 | 204,562 | ||||||
Equitrans Midstream Corp.(a) | 4,250 | 35,615 | ||||||
Frontera Energy Corp. (Colombia) | 2,232 | 7,212 | ||||||
Gibson Energy, Inc. (Canada) | 28,114 | 400,518 | ||||||
Keyera Corp. (Canada) | 6,109 | 90,629 | ||||||
Kinder Morgan, Inc. | 57,245 | 871,841 | ||||||
Magellan Midstream Partners LP, MLP | 11,063 | 455,021 | ||||||
MPLX LP, MLP | 38,907 | 704,217 | ||||||
ONEOK, Inc. | 10,597 | 317,168 | ||||||
Pembina Pipeline Corp. (Canada) | 18,104 | 415,306 | ||||||
Phillips 66 Partners LP, MLP | 14,851 | 631,910 | ||||||
Plains All American Pipeline LP, MLP | 29,582 | 261,209 | ||||||
Plains GP Holdings LP (Class A Stock)* | 3,691 | 33,920 | ||||||
Royal Dutch Shell PLC (Netherlands) (Class A Stock), ADR(a) | 26,969 | 893,483 | ||||||
Targa Resources Corp. | 24,545 | 318,103 | ||||||
TC Energy Corp. (Canada) | 10,374 | 477,430 | ||||||
TC PipeLines LP, MLP | 3,278 | 109,813 | ||||||
Williams Cos., Inc. (The)(a) | 153,672 | 2,976,627 | ||||||
|
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13,171,333 | ||||||||
Pharmaceuticals 1.3% | ||||||||
AstraZeneca PLC (United Kingdom), ADR | 43,009 | 2,248,510 | ||||||
Bristol-Myers Squibb Co. | 28,420 | 1,728,220 | ||||||
Merck & Co., Inc. | 4,158 | 329,896 | ||||||
|
| |||||||
4,306,626 | ||||||||
Real Estate Management & Development 0.6% | ||||||||
New World Development Co. Ltd. (Hong Kong) | 950,758 | 1,119,304 |
See Notes to Financial Statements.
12 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Real Estate Management & Development (cont’d.) | ||||||||
Sun Hung Kai Properties Ltd. (Hong Kong) | 38,619 | $ | 528,018 | |||||
Swire Properties Ltd. (Hong Kong) | 161,181 | 453,647 | ||||||
|
| |||||||
2,100,969 | ||||||||
Road & Rail 0.3% | ||||||||
Union Pacific Corp. | 6,486 | 1,036,398 | ||||||
Semiconductors & Semiconductor Equipment 2.3% | ||||||||
Advanced Micro Devices, Inc.* | 31,235 | 1,636,402 | ||||||
Intel Corp. | 22,778 | 1,366,224 | ||||||
Lam Research Corp. | 6,779 | 1,730,543 | ||||||
QUALCOMM, Inc. | 16,467 | 1,295,459 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan), ADR | 12,799 | 680,011 | ||||||
Texas Instruments, Inc. | 6,221 | 722,071 | ||||||
|
| |||||||
7,430,710 | ||||||||
Software 0.6% | ||||||||
Microsoft Corp. | 10,365 | 1,857,512 | ||||||
Specialty Retail 0.3% | ||||||||
Lowe’s Cos., Inc. | 8,601 | 900,955 | ||||||
Technology Hardware, Storage & Peripherals 1.1% | ||||||||
Apple, Inc. | 7,354 | 2,160,605 | ||||||
Western Digital Corp. | 30,425 | 1,401,984 | ||||||
|
| |||||||
3,562,589 | ||||||||
Tobacco 0.8% | ||||||||
Altria Group, Inc. | 41,697 | 1,636,607 | ||||||
Philip Morris International, Inc. | 11,230 | 837,758 | ||||||
|
| |||||||
2,474,365 | ||||||||
Wireless Telecommunication Services 0.6% | ||||||||
Tele2 AB (Sweden) (Class B Stock) | 87,643 | 1,136,855 | ||||||
Vodafone Group PLC (United Kingdom), ADR | 60,754 | 859,061 | ||||||
|
| |||||||
1,995,916 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 96,602,119 | |||||||
|
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See Notes to Financial Statements.
PGIM Income Builder Fund | 13 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Shares | Value | ||||||
EXCHANGE-TRADED FUNDS 20.3% | ||||||||
Energy Select Sector SPDR Fund | 145,700 | $ | 5,536,600 | |||||
Invesco Preferred ETF | 1,839,488 | 26,139,124 | ||||||
iShares Core MSCI Emerging Markets ETF | 71,900 | 3,139,154 | ||||||
PGIM QMA Strategic Alpha International Equity ETF(g) | 200,000 | 8,948,500 | ||||||
SPDR Bloomberg Barclays Convertible Securities ETF | 429,742 | 22,875,167 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS | 66,638,545 | |||||||
|
| |||||||
PREFERRED STOCKS 3.6% | ||||||||
Electric Utilities 0.3% | ||||||||
American Electric Power Co., Inc., CVT, 6.125%(a) | 19,252 | 978,002 | ||||||
Equity Real Estate Investment Trusts (REITs) 2.4% | ||||||||
American Homes 4 Rent | 46,059 | 1,077,320 | ||||||
EPR Properties | 29,313 | 547,860 | ||||||
Gladstone Commercial Corp. | 33,487 | 703,227 | ||||||
Investors Real Estate Trust | 29,730 | 746,223 | ||||||
Monmouth Real Estate Investment Corp. | 35,232 | 861,070 | ||||||
Office Properties Income Trust | 34,464 | 787,158 | ||||||
PS Business Parks, Inc. | 26,949 | 680,462 | ||||||
Rexford Industrial Realty, Inc. | 31,506 | 779,458 | ||||||
UMH Properties, Inc. | 31,575 | 745,802 | ||||||
Vornado Realty Trust | 40,265 | 899,117 | ||||||
|
| |||||||
7,827,697 | ||||||||
|
| |||||||
Health Care Equipment & Supplies 0.5% | ||||||||
Danaher Corp., Series A, CVT, 4.750% | 1,497 | 1,780,113 | ||||||
Multi-Utilities 0.4% | ||||||||
Sempra Energy, Series A, CVT, 6.000% | 11,346 | 1,160,809 | ||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 11,746,621 | |||||||
|
|
Interest Rate | Maturity Date | Principal | ||||||||||||||
ASSET-BACKED SECURITY 0.1% | ||||||||||||||||
Collateralized Loan Obligations | ||||||||||||||||
Zais CLO Ltd. (Cayman Islands), | 2.335 | %(c) | 07/20/31 | 495 | 455,956 | |||||||||||
|
|
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
BANK LOANS 0.3% | ||||||||||||||||
Computers 0.0% | ||||||||||||||||
Everi Payments, Inc., | 11.500 | %(c) | 05/09/24 | 25 | $ | 24,875 | ||||||||||
Electric 0.1% | ||||||||||||||||
Heritage Power LLC, | 7.771 | (c) | 07/30/26 | 273 | 224,373 | |||||||||||
Engineering & Construction 0.0% | ||||||||||||||||
Landry’s Finance Acquisition Co., | — | (p) | 10/04/23 | 75 | 76,500 | |||||||||||
Entertainment 0.1% | ||||||||||||||||
Playtika Holding Corp., | 7.072 | (c) | 12/10/24 | 247 | 243,943 | |||||||||||
Twin River Worldwide Holdings, Inc., | — | (p) | 05/10/26 | 50 | 48,500 | |||||||||||
|
| |||||||||||||||
292,443 | ||||||||||||||||
Oil & Gas 0.1% | ||||||||||||||||
Chesapeake Energy Corp., | 9.000 | (c) | 05/23/24 | 400 | 138,000 | |||||||||||
CITGO Petroleum Corp., | 6.000 | (c) | 03/28/24 | 99 | 87,120 | |||||||||||
Term B Loan, 1 Month LIBOR + 4.500%^ | 5.500 | (c) | 07/29/21 | 99 | 93,760 | |||||||||||
|
| |||||||||||||||
318,880 | ||||||||||||||||
Software 0.0% | ||||||||||||||||
Informatica LLC, | 7.125 | (c) | 02/25/25 | 50 | 47,250 | |||||||||||
TIBCO Software, Inc., | 7.660 | (c) | 03/03/28 | 100 | 92,000 | |||||||||||
|
| |||||||||||||||
139,250 | ||||||||||||||||
|
| |||||||||||||||
TOTAL BANK LOANS | 1,076,321 | |||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Income Builder Fund | 15 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CONVERTIBLE BOND 0.2% | ||||||||||||||||
Insurance | ||||||||||||||||
AXA SA (France), | 7.250 | % | 05/15/21 | 623 | $ | 546,535 | ||||||||||
|
| |||||||||||||||
CORPORATE BONDS 16.3% | ||||||||||||||||
Advertising 0.1% | ||||||||||||||||
National CineMedia LLC, | 5.750 | 08/15/26 | 225 | 108,939 | ||||||||||||
Terrier Media Buyer, Inc., | 8.875 | 12/15/27 | 235 | 193,869 | ||||||||||||
|
| |||||||||||||||
302,808 | ||||||||||||||||
Aerospace & Defense 0.4% | ||||||||||||||||
Boeing Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.150 | 05/01/30 | 175 | 175,000 | ||||||||||||
Sr. Unsec’d. Notes | 5.805 | 05/01/50 | 225 | 225,000 | ||||||||||||
Bombardier, Inc. (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 12/01/24 | 750 | 499,338 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 03/15/25 | 50 | 32,446 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.875 | 04/15/27 | 450 | 296,424 | ||||||||||||
Howmet Aerospace, Inc., | 6.875 | 05/01/25 | 25 | 25,572 | ||||||||||||
Spirit AeroSystems, Inc., | 7.500 | 04/15/25 | 50 | 49,259 | ||||||||||||
SSL Robotics LLC, | 9.750 | 12/31/23 | 125 | 132,727 | ||||||||||||
|
| |||||||||||||||
1,435,766 | ||||||||||||||||
Agriculture 0.1% | ||||||||||||||||
Vector Group Ltd., | ||||||||||||||||
Gtd. Notes, 144A | 10.500 | 11/01/26 | 50 | 46,830 | ||||||||||||
Sr. Sec’d. Notes, 144A | 6.125 | 02/01/25 | 225 | 218,253 | ||||||||||||
|
| |||||||||||||||
265,083 | ||||||||||||||||
Apparel 0.0% | ||||||||||||||||
Hanesbrands, Inc., | 5.375 | 05/15/25 | 15 | 15,000 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Auto Manufacturers 0.2% | ||||||||||||||||
Ford Motor Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | % | 01/15/43 | 75 | $ | 48,728 | ||||||||||
Sr. Unsec’d. Notes | 5.291 | 12/08/46 | 450 | 301,122 | ||||||||||||
Sr. Unsec’d. Notes | 9.000 | 04/22/25 | 75 | 72,957 | ||||||||||||
Sr. Unsec’d. Notes | 9.625 | 04/22/30 | 40 | 39,308 | ||||||||||||
General Motors Financial Co., Inc., | 4.200 | 11/06/21 | 25 | 24,660 | ||||||||||||
Navistar International Corp., | ||||||||||||||||
Gtd. Notes, 144A | 6.625 | 11/01/25 | 250 | 214,208 | ||||||||||||
Sr. Sec’d. Notes, 144A | 9.500 | 05/01/25 | 50 | 52,403 | ||||||||||||
|
| |||||||||||||||
753,386 | ||||||||||||||||
Auto Parts & Equipment 0.2% | ||||||||||||||||
Adient Global Holdings Ltd., | 4.875 | 08/15/26 | 200 | 149,014 | ||||||||||||
Adient U.S. LLC, | 9.000 | 04/15/25 | 25 | 26,069 | ||||||||||||
American Axle & Manufacturing, Inc., | ||||||||||||||||
Gtd. Notes | 6.250 | 03/15/26 | 75 | 55,811 | ||||||||||||
Gtd. Notes(a) | 6.500 | 04/01/27 | 225 | 169,568 | ||||||||||||
Cooper-Standard Automotive, Inc., | 5.625 | 11/15/26 | 100 | 67,072 | ||||||||||||
Dana Financing Luxembourg Sarl, | 6.500 | 06/01/26 | 200 | 184,854 | ||||||||||||
Dana, Inc., | 5.375 | 11/15/27 | 75 | 66,415 | ||||||||||||
Titan International, Inc., | 6.500 | 11/30/23 | 150 | 69,616 | ||||||||||||
|
| |||||||||||||||
788,419 | ||||||||||||||||
Banks 0.3% | ||||||||||||||||
Banque Centrale de Tunisie International Bond (Tunisia), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 01/30/25 | 200 | 168,266 | ||||||||||||
Sr. Unsec’d. Notes | 6.750 | 10/31/23 | EUR | 200 | 188,279 | |||||||||||
Sr. Unsec’d. Notes, 144A | 6.375 | 07/15/26 | EUR | 100 | 89,777 | |||||||||||
Grupo Aval Ltd. (Colombia), | 4.375 | 02/04/30 | 200 | 167,696 | ||||||||||||
State Savings Bank of Ukraine Via SSB #1 PLC (Ukraine), | 9.625 | 03/20/25 | 100 | 93,539 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 17 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
TC Ziraat Bankasi A/S (Turkey), | 5.125 | % | 09/29/23 | 200 | $ | 190,056 | ||||||||||
Turkiye Sinai Kalkinma Bankasi A/S (Turkey), | 6.000 | 01/23/25 | 200 | 184,206 | ||||||||||||
|
| |||||||||||||||
1,081,819 | ||||||||||||||||
Building Materials 0.2% | ||||||||||||||||
Cornerstone Building Brands, Inc., | 8.000 | 04/15/26 | 100 | 85,020 | ||||||||||||
Griffon Corp., | 5.750 | 03/01/28 | 100 | 95,782 | ||||||||||||
JELD-WEN, Inc., | 4.625 | 12/15/25 | 25 | 22,485 | ||||||||||||
Masonite International Corp., | 5.375 | 02/01/28 | 45 | 43,155 | ||||||||||||
Patrick Industries, Inc., | 7.500 | 10/15/27 | 100 | 93,995 | ||||||||||||
Standard Industries, Inc., | 4.750 | 01/15/28 | 150 | 147,934 | ||||||||||||
Summit Materials LLC/Summit Materials Finance Corp., | 6.500 | 03/15/27 | 100 | 98,704 | ||||||||||||
U.S. Concrete, Inc., | 6.375 | 06/01/24 | 225 | 212,351 | ||||||||||||
|
| |||||||||||||||
799,426 | ||||||||||||||||
Chemicals 0.9% | ||||||||||||||||
Ashland LLC, | 6.875 | 05/15/43 | 50 | 53,282 | ||||||||||||
Atotech Alpha 2 BV (Germany), | 8.750 | 06/01/23 | 425 | 402,084 | ||||||||||||
Blue Cube Spinco LLC, | 10.000 | 10/15/25 | 150 | 158,875 | ||||||||||||
Braskem America Finance Co. (Brazil), | 7.125 | 07/22/41 | 200 | 181,000 | ||||||||||||
Chemours Co. (The), | ||||||||||||||||
Gtd. Notes | 5.375 | 05/15/27 | 200 | 169,478 | ||||||||||||
Gtd. Notes(a) | 7.000 | 05/15/25 | 245 | 230,385 | ||||||||||||
CNAC HK Finbridge Co. Ltd. (China), Gtd. Notes | 3.875 | 06/19/29 | 400 | 406,581 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Chemicals (cont’d.) | ||||||||||||||||
Cornerstone Chemical Co., | 6.750 | % | 08/15/24 | 85 | $ | 68,784 | ||||||||||
Hexion, Inc., | 7.875 | 07/15/27 | 160 | 147,163 | ||||||||||||
NOVA Chemicals Corp. (Canada), | 5.250 | 06/01/27 | 100 | 79,984 | ||||||||||||
Orbia Advance Corp. SAB de CV (Mexico), | 5.500 | 01/15/48 | 225 | 209,152 | ||||||||||||
Rain CII Carbon LLC/CII Carbon Corp., | 7.250 | 04/01/25 | 125 | 108,356 | ||||||||||||
Starfruit Finco BV/Starfruit US Holdco LLC (Netherlands), | 8.000 | 10/01/26 | 200 | 187,353 | ||||||||||||
TPC Group, Inc., | 10.500 | 08/01/24 | 125 | 102,305 | ||||||||||||
Tronox Finance PLC, | 5.750 | 10/01/25 | 115 | 104,989 | ||||||||||||
Tronox, Inc., | ||||||||||||||||
Gtd. Notes, 144A(a) | 6.500 | 04/15/26 | 120 | 108,619 | ||||||||||||
Sr. Sec’d. Notes, 144A | 6.500 | 05/01/25 | 50 | 50,453 | ||||||||||||
Venator Finance Sarl/Venator Materials LLC, | 5.750 | 07/15/25 | 160 | 111,371 | ||||||||||||
|
| |||||||||||||||
2,880,214 | ||||||||||||||||
Commercial Services 0.5% | ||||||||||||||||
Allied Universal Holdco LLC/Allied Universal Finance Corp., | 9.750 | 07/15/27 | 225 | 230,986 | ||||||||||||
DP World PLC (United Arab Emirates), | 6.850 | 07/02/37 | 100 | 109,577 | ||||||||||||
Laureate Education, Inc., | 8.250 | 05/01/25 | 100 | 102,172 | ||||||||||||
United Rentals North America, Inc., | ||||||||||||||||
Gtd. Notes | 4.875 | 01/15/28 | 600 | 601,861 | ||||||||||||
Gtd. Notes | 5.250 | 01/15/30 | 225 | 225,553 | ||||||||||||
Verscend Escrow Corp., | 9.750 | 08/15/26 | 180 | 187,490 | ||||||||||||
|
| |||||||||||||||
1,457,639 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 19 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Computers 0.2% | ||||||||||||||||
Banff Merger Sub, Inc., | 9.750 | % | 09/01/26 | 428 | $ | 383,817 | ||||||||||
Everi Payments, Inc., | 7.500 | 12/15/25 | 154 | 126,306 | ||||||||||||
NCR Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.750 | 09/01/27 | 50 | 50,069 | ||||||||||||
Gtd. Notes, 144A | 8.125 | 04/15/25 | 25 | 26,507 | ||||||||||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., | 5.750 | 06/01/25 | 25 | 25,000 | ||||||||||||
|
| |||||||||||||||
611,699 | ||||||||||||||||
Distribution/Wholesale 0.0% | ||||||||||||||||
Anixter, Inc., | 6.000 | 12/01/25 | 100 | 101,208 | ||||||||||||
Diversified Financial Services 0.5% | ||||||||||||||||
Alliance Data Systems Corp., | 4.750 | 12/15/24 | 100 | 74,307 | ||||||||||||
Fairstone Financial, Inc. (Canada), | 7.875 | 07/15/24 | 110 | 103,929 | ||||||||||||
Nationstar Mortgage Holdings, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 6.000 | 01/15/27 | 75 | 64,497 | ||||||||||||
Gtd. Notes, 144A | 9.125 | 07/15/26 | 660 | 632,797 | ||||||||||||
Power Finance Corp. Ltd. (India), | 6.150 | 12/06/28 | 200 | 208,877 | ||||||||||||
Springleaf Finance Corp., | ||||||||||||||||
Gtd. Notes | 6.625 | 01/15/28 | 175 | 154,400 | ||||||||||||
Gtd. Notes | 7.125 | 03/15/26 | 425 | 396,426 | ||||||||||||
|
| |||||||||||||||
1,635,233 | ||||||||||||||||
Electric 1.3% | ||||||||||||||||
Abu Dhabi National Energy Co. PJSC (United Arab Emirates), | 4.000 | 10/03/49 | 200 | 199,757 | ||||||||||||
Calpine Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 01/15/25 | 725 | 726,442 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.125 | 03/15/28 | 500 | 487,396 | ||||||||||||
Comision Federal de Electricidad (Mexico), | 5.750 | 02/14/42 | 200 | 191,271 |
See Notes to Financial Statements.
20 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Electric (cont’d.) | ||||||||||||||||
Engie Energia Chile SA (Chile), | 3.400 | % | 01/28/30 | 200 | $ | 194,240 | ||||||||||
Eskom Holdings SOC Ltd. (South Africa), | ||||||||||||||||
Gov’t. Gtd. Notes, MTN | 6.350 | 08/10/28 | 600 | 536,279 | ||||||||||||
Sr. Unsec’d. Notes | 7.125 | 02/11/25 | 200 | 146,100 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.750 | 08/06/23 | 200 | 149,218 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 8.450 | 08/10/28 | 460 | 324,271 | ||||||||||||
Keystone Power Pass-Through Holders LLC/Conemaugh Power Pass-Through Holders, | ||||||||||||||||
Gtd. Notes, 144A | 9.000 | 12/01/23 | 32 | 32,143 | ||||||||||||
Sub. Notes, 144A, Cash coupon 13.000% or PIK N/A | 13.000 | 06/01/24 | 89 | 89,034 | ||||||||||||
Listrindo Capital BV (Indonesia), | 4.950 | 09/14/26 | 200 | 188,796 | ||||||||||||
Perusahaan Listrik Negara PT (Indonesia), | 5.450 | 05/21/28 | 420 | 452,649 | ||||||||||||
Vistra Operations Co. LLC, | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 07/31/27 | 110 | 112,301 | ||||||||||||
Gtd. Notes, 144A | 5.625 | 02/15/27 | 275 | 289,784 | ||||||||||||
|
| |||||||||||||||
4,119,681 | ||||||||||||||||
Energy-Alternate Sources 0.1% | ||||||||||||||||
Azure Power Solar Energy Private Ltd. (India), | 5.650 | 12/24/24 | 200 | 185,462 | ||||||||||||
Enviva Partners LP/Enviva Partners Finance Corp., | 6.500 | 01/15/26 | 50 | 52,391 | ||||||||||||
|
| |||||||||||||||
237,853 | ||||||||||||||||
Engineering & Construction 0.2% | ||||||||||||||||
AECOM, | 5.125 | 03/15/27 | 275 | 279,984 | ||||||||||||
GMR Hyderabad International Airport Ltd. (India), | 4.250 | 10/27/27 | 200 | 160,050 | ||||||||||||
Mexico City Airport Trust (Mexico), | 5.500 | 07/31/47 | 200 | 165,397 | ||||||||||||
TopBuild Corp., | 5.625 | 05/01/26 | 125 | 123,662 | ||||||||||||
|
| |||||||||||||||
729,093 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 21 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Entertainment 0.6% | ||||||||||||||||
AMC Entertainment Holdings, Inc., | ||||||||||||||||
Gtd. Notes | 5.750 | % | 06/15/25 | 125 | $ | 28,487 | ||||||||||
Gtd. Notes | 5.875 | 11/15/26 | 400 | 89,129 | ||||||||||||
Caesars Resort Collection LLC/CRC Finco, Inc., | 5.250 | 10/15/25 | 400 | 314,542 | ||||||||||||
Eldorado Resorts, Inc., | ||||||||||||||||
Gtd. Notes | 6.000 | 04/01/25 | 25 | 24,055 | ||||||||||||
Gtd. Notes | 7.000 | 08/01/23 | 75 | 72,363 | ||||||||||||
Golden Entertainment, Inc., | 7.625 | 04/15/26 | 225 | 170,570 | ||||||||||||
International Game Technology PLC, | 6.500 | 02/15/25 | 150 | 147,165 | ||||||||||||
Jacobs Entertainment, Inc., | 7.875 | 02/01/24 | 175 | 132,562 | ||||||||||||
Penn National Gaming, Inc., | 5.625 | 01/15/27 | 200 | 166,505 | ||||||||||||
Scientific Games International, Inc., | ||||||||||||||||
Gtd. Notes | 6.625 | 05/15/21 | 150 | 134,151 | ||||||||||||
Gtd. Notes, 144A | 7.000 | 05/15/28 | 75 | 54,100 | ||||||||||||
Gtd. Notes, 144A | 7.250 | 11/15/29 | 50 | 35,744 | ||||||||||||
Gtd. Notes, 144A | 8.250 | 03/15/26 | 350 | 265,427 | ||||||||||||
Six Flags Entertainment Corp., | 4.875 | 07/31/24 | 50 | 43,994 | ||||||||||||
Six Flags Theme Parks, Inc., | 7.000 | 07/01/25 | 25 | 26,055 | ||||||||||||
Twin River Worldwide Holdings, Inc., | 6.750 | 06/01/27 | 125 | 98,307 | ||||||||||||
Vail Resorts, Inc., | 6.250 | 05/15/25 | 20 | 20,613 | ||||||||||||
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.125 | 10/01/29 | 60 | 56,406 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.750 | 04/15/25 | 25 | 25,589 | ||||||||||||
|
| |||||||||||||||
1,905,764 | ||||||||||||||||
Food Service 0.0% | ||||||||||||||||
Aramark Services, Inc., | 6.375 | 05/01/25 | 50 | 51,997 | ||||||||||||
Foods 0.3% | ||||||||||||||||
B&G Foods, Inc., | 5.250 | 09/15/27 | 180 | 182,220 |
See Notes to Financial Statements.
22 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Foods (cont’d.) | ||||||||||||||||
JBS USA LUX SA/JBS USA Finance, Inc., | 5.750 | % | 06/15/25 | 274 | $ | 278,762 | ||||||||||
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc., | 6.500 | 04/15/29 | 120 | 127,201 | ||||||||||||
Pilgrim’s Pride Corp., | 5.750 | 03/15/25 | 25 | 25,250 | ||||||||||||
Post Holdings, Inc., | 5.500 | 12/15/29 | 175 | 176,194 | ||||||||||||
US Foods, Inc., | 5.875 | 06/15/24 | 25 | 23,833 | ||||||||||||
|
| |||||||||||||||
813,460 | ||||||||||||||||
Gas 0.1% | ||||||||||||||||
AmeriGas Partners LP/AmeriGas Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 05/20/27 | 225 | 229,123 | ||||||||||||
Sr. Unsec’d. Notes | 5.875 | 08/20/26 | 225 | 230,418 | ||||||||||||
|
| |||||||||||||||
459,541 | ||||||||||||||||
Healthcare-Services 0.5% | ||||||||||||||||
Acadia Healthcare Co., Inc., | 6.500 | 03/01/24 | 25 | 23,924 | ||||||||||||
Hadrian Merger Sub, Inc., | 8.500 | 05/01/26 | 25 | 21,749 | ||||||||||||
HCA, Inc., | ||||||||||||||||
Gtd. Notes | 3.500 | 09/01/30 | 25 | 23,949 | ||||||||||||
Gtd. Notes | 5.875 | 02/01/29 | 175 | 200,818 | ||||||||||||
MEDNAX, Inc., | 6.250 | 01/15/27 | 75 | 67,884 | ||||||||||||
Polaris Intermediate Corp., | 8.500 | 12/01/22 | 300 | 251,618 | ||||||||||||
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc., | 9.750 | 12/01/26 | 375 | 400,510 | ||||||||||||
Surgery Center Holdings, Inc., | 10.000 | 04/15/27 | 150 | 140,605 | ||||||||||||
Tenet Healthcare Corp., | 6.250 | 02/01/27 | 75 | 73,878 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 23 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Healthcare-Services (cont’d.) | ||||||||||||||||
Tenet Healthcare Corp., (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes(a) | 6.750 | % | 06/15/23 | 475 | $ | 474,287 | ||||||||||
Sr. Unsec’d. Notes | 6.875 | 11/15/31 | 25 | 21,416 | ||||||||||||
|
| |||||||||||||||
1,700,638 | ||||||||||||||||
Home Builders 0.8% | ||||||||||||||||
Ashton Woods USA LLC/Ashton Woods Finance Co., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 08/01/25 | 225 | 187,654 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 9.875 | 04/01/27 | 75 | 72,150 | ||||||||||||
Beazer Homes USA, Inc., | ||||||||||||||||
Gtd. Notes | 5.875 | 10/15/27 | 175 | 135,417 | ||||||||||||
Gtd. Notes | 6.750 | 03/15/25 | 100 | 86,616 | ||||||||||||
Gtd. Notes | 7.250 | 10/15/29 | 125 | 97,023 | ||||||||||||
Brookfield Residential Properties, Inc./Brookfield Residential US Corp. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 4.875 | 02/15/30 | 100 | 82,453 | ||||||||||||
Gtd. Notes, 144A | 6.250 | 09/15/27 | 125 | 115,000 | ||||||||||||
Gtd. Notes, 144A | 6.375 | 05/15/25 | 200 | 199,677 | ||||||||||||
Century Communities, Inc., | 6.750 | 06/01/27 | 200 | 175,637 | ||||||||||||
Forestar Group, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 03/01/28 | 50 | 43,725 | ||||||||||||
Gtd. Notes, 144A | 8.000 | 04/15/24 | 100 | 98,584 | ||||||||||||
KB Home, | ||||||||||||||||
Gtd. Notes | 4.800 | 11/15/29 | 50 | 46,442 | ||||||||||||
Gtd. Notes | 6.875 | 06/15/27 | 200 | 210,841 | ||||||||||||
M/I Homes, Inc., | 4.950 | 02/01/28 | 175 | 153,840 | ||||||||||||
Mattamy Group Corp. (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.625 | 03/01/30 | 100 | 89,675 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.250 | 12/15/27 | 75 | 70,343 | ||||||||||||
Meritage Homes Corp., | 5.125 | 06/06/27 | 75 | 72,979 | ||||||||||||
New Home Co., Inc. (The), | 7.250 | 04/01/22 | 79 | 68,305 | ||||||||||||
Taylor Morrison Communities, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.875 | 01/31/25 | 250 | 236,294 | ||||||||||||
Gtd. Notes, 144A | 5.875 | 06/15/27 | 350 | 321,446 | ||||||||||||
Gtd. Notes, 144A | 6.625 | 07/15/27 | 175 | 160,186 | ||||||||||||
|
| |||||||||||||||
2,724,287 |
See Notes to Financial Statements.
24 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Household Products/Wares 0.0% | ||||||||||||||||
Spectrum Brands, Inc., | 5.000 | % | 10/01/29 | 50 | $ | 47,749 | ||||||||||
Housewares 0.0% | ||||||||||||||||
Scotts Miracle-Gro Co. (The), | 4.500 | 10/15/29 | 75 | 73,300 | ||||||||||||
Iron/Steel 0.1% | ||||||||||||||||
Cleveland-Cliffs, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 6.750 | 03/15/26 | 25 | 21,808 | ||||||||||||
Sr. Sec’d. Notes, 144A | 9.875 | 10/17/25 | 200 | 196,828 | ||||||||||||
|
| |||||||||||||||
218,636 | ||||||||||||||||
Leisure Time 0.1% | ||||||||||||||||
NCL Corp. Ltd., | 3.625 | 12/15/24 | 100 | 64,221 | ||||||||||||
Royal Caribbean Cruises Ltd., | 2.650 | 11/28/20 | 25 | 22,931 | ||||||||||||
Viking Cruises Ltd., | 5.875 | 09/15/27 | 100 | 67,214 | ||||||||||||
|
| |||||||||||||||
154,366 | ||||||||||||||||
Lodging 0.1% | ||||||||||||||||
Hilton Domestic Operating Co., Inc., | ||||||||||||||||
Gtd. Notes | 5.125 | 05/01/26 | 100 | 98,801 | ||||||||||||
Gtd. Notes, 144A | 5.375 | 05/01/25 | 25 | 25,059 | ||||||||||||
Gtd. Notes, 144A | 5.750 | 05/01/28 | 25 | 25,302 | ||||||||||||
Marriott International, Inc., | 5.750 | 05/01/25 | 25 | 26,119 | ||||||||||||
MGM Resorts International, | 6.750 | 05/01/25 | 75 | 73,199 | ||||||||||||
Station Casinos LLC, | ||||||||||||||||
Gtd. Notes, 144A | 4.500 | 02/15/28 | 125 | 99,990 | ||||||||||||
Gtd. Notes, 144A | 5.000 | 10/01/25 | 25 | 20,829 | ||||||||||||
Wyndham Destinations, Inc., | 4.625 | 03/01/30 | 50 | 42,483 | ||||||||||||
|
| |||||||||||||||
411,782 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 25 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Machinery-Diversified 0.1% | ||||||||||||||||
Maxim Crane Works Holdings Capital LLC, | 10.125 | % | 08/01/24 | 275 | $ | 259,238 | ||||||||||
Media 1.1% | ||||||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.500 | 08/15/30 | 125 | 125,936 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 03/01/30 | 225 | 229,058 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.375 | 06/01/29 | 200 | 210,946 | ||||||||||||
Clear Channel Worldwide Holdings, Inc., | 9.250 | 02/15/24 | 833 | 692,844 | ||||||||||||
CSC Holdings LLC, | 5.375 | 07/15/23 | 200 | 202,262 | ||||||||||||
Cumulus Media New Holdings, Inc., | 6.750 | 07/01/26 | 75 | 61,203 | ||||||||||||
Diamond Sports Group LLC/Diamond Sports Finance Co., | ||||||||||||||||
Gtd. Notes, 144A(a) | 6.625 | 08/15/27 | 490 | 268,797 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.375 | 08/15/26 | 460 | 349,926 | ||||||||||||
DISH DBS Corp., | 7.750 | 07/01/26 | 305 | 300,425 | ||||||||||||
Entercom Media Corp., | ||||||||||||||||
Gtd. Notes, 144A | 7.250 | 11/01/24 | 100 | 63,005 | ||||||||||||
Sec’d. Notes, 144A | 6.500 | 05/01/27 | 90 | 66,164 | ||||||||||||
Gray Television, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.875 | 07/15/26 | 75 | 72,585 | ||||||||||||
Gtd. Notes, 144A | 7.000 | 05/15/27 | 45 | 45,292 | ||||||||||||
iHeartCommunications, Inc., | 8.375 | 05/01/27 | 175 | 146,013 | ||||||||||||
Radiate Holdco LLC/Radiate Finance, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.625 | 02/15/25 | 150 | 149,381 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.875 | 02/15/23 | 215 | 212,857 | ||||||||||||
Scripps Escrow, Inc., | 5.875 | 07/15/27 | 50 | 42,576 | ||||||||||||
Univision Communications, Inc., | 5.125 | 02/15/25 | 235 | 208,029 | ||||||||||||
|
| |||||||||||||||
3,447,299 | ||||||||||||||||
Mining 0.7% | ||||||||||||||||
Constellium SE, | 5.875 | 02/15/26 | 250 | 239,610 | ||||||||||||
Corp. Nacional del Cobre de Chile (Chile), | 4.875 | 11/04/44 | 400 | 427,384 |
See Notes to Financial Statements.
26 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Mining (cont’d.) | ||||||||||||||||
Eldorado Gold Corp. (Canada), | 9.500 | % | 06/01/24 | 200 | $ | 213,423 | ||||||||||
First Quantum Minerals Ltd. (Zambia), | 6.500 | 03/01/24 | 250 | 220,307 | ||||||||||||
Hecla Mining Co., | 7.250 | 02/15/28 | 75 | 74,051 | ||||||||||||
IAMGOLD Corp. (Canada), | 7.000 | 04/15/25 | 215 | 216,638 | ||||||||||||
Indonesia Asahan Aluminium Persero PT (Indonesia), | 6.530 | 11/15/28 | 220 | 238,337 | ||||||||||||
New Gold, Inc. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 6.250 | 11/15/22 | 100 | 100,040 | ||||||||||||
Gtd. Notes, 144A | 6.375 | 05/15/25 | 150 | 144,439 | ||||||||||||
Nexa Resources SA (Peru), | 5.375 | 05/04/27 | 210 | 192,661 | ||||||||||||
Novelis Corp., | 5.875 | 09/30/26 | 150 | 145,963 | ||||||||||||
|
| |||||||||||||||
2,212,853 | ||||||||||||||||
Miscellaneous Manufacturing 0.1% | ||||||||||||||||
Amsted Industries, Inc., | 4.625 | 05/15/30 | 190 | 176,309 | ||||||||||||
Oil & Gas 3.0% | ||||||||||||||||
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., | 7.875 | 12/15/24 | (d) | 775 | 1,460 | |||||||||||
Antero Resources Corp., | ||||||||||||||||
Gtd. Notes | 5.000 | 03/01/25 | 475 | 261,105 | ||||||||||||
Gtd. Notes | 5.125 | 12/01/22 | 50 | 34,936 | ||||||||||||
Gtd. Notes | 5.375 | 11/01/21 | 100 | 89,522 | ||||||||||||
Gtd. Notes | 5.625 | 06/01/23 | 50 | 29,323 | ||||||||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.000 | 11/01/26 | 275 | 156,370 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 10.000 | 04/01/22 | 201 | 156,138 | ||||||||||||
Chesapeake Energy Corp., | 4.875 | 04/15/22 | 25 | 708 | ||||||||||||
Citgo Holding, Inc., | 9.250 | 08/01/24 | 225 | 202,355 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 27 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Oil & Gas (cont’d.) | ||||||||||||||||
CNX Resources Corp., | ||||||||||||||||
Gtd. Notes | 5.875 | % | 04/15/22 | 30 | $ | 29,823 | ||||||||||
Gtd. Notes, 144A | 7.250 | 03/14/27 | 275 | 243,695 | ||||||||||||
CrownRock LP/CrownRock Finance, Inc., | 5.625 | 10/15/25 | 50 | 40,455 | ||||||||||||
Denbury Resources, Inc., | 9.000 | 05/15/21 | 50 | 8,849 | ||||||||||||
Diamond Offshore Drilling, Inc., | 7.875 | 08/15/25 | (d) | 125 | 13,043 | |||||||||||
Endeavor Energy Resources LP/EER Finance, Inc., | 5.750 | 01/30/28 | 145 | 126,171 | ||||||||||||
Extraction Oil & Gas, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.625 | 02/01/26 | 325 | 53,496 | ||||||||||||
Gtd. Notes, 144A | 7.375 | 05/15/24 | 130 | 20,330 | ||||||||||||
Gazprom PJSC Via Gaz Capital SA (Russia), | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 7.288 | 08/16/37 | 100 | 137,476 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 8.625 | 04/28/34 | 400 | 590,288 | ||||||||||||
Hilcorp Energy I LP/Hilcorp Finance Co., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.750 | 10/01/25 | 125 | 69,738 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.250 | 11/01/28 | 150 | 77,803 | ||||||||||||
KazMunayGas National Co. JSC (Kazakhstan), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 04/19/47 | 200 | 199,475 | ||||||||||||
Sr. Unsec’d. Notes | 6.375 | 10/24/48 | 200 | 209,073 | ||||||||||||
MEG Energy Corp. (Canada), | 7.000 | 03/31/24 | 135 | 94,311 | ||||||||||||
Nabors Industries Ltd., | ||||||||||||||||
Gtd. Notes, 144A | 7.250 | 01/15/26 | 50 | 20,475 | ||||||||||||
Gtd. Notes, 144A | 7.500 | 01/15/28 | 100 | 39,937 | ||||||||||||
Nabors Industries, Inc., | 5.750 | 02/01/25 | 250 | 57,019 | ||||||||||||
NAK Naftogaz Ukraine via Kondor Finance PLC (Ukraine), | 7.125 | 07/19/24 | EUR | 200 | 191,045 | |||||||||||
Oil & Gas Holding Co. BSCC (The) (Bahrain), | 8.375 | 11/07/28 | 400 | 389,738 | ||||||||||||
Pertamina Persero PT (Indonesia), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.700 | 07/30/49 | 200 | 185,634 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 11/07/48 | 200 | 225,104 | ||||||||||||
Petrobras Global Finance BV (Brazil), | ||||||||||||||||
Gtd. Notes | 6.900 | 03/19/49 | 170 | 164,558 | ||||||||||||
Gtd. Notes | 7.375 | 01/17/27 | 643 | 678,184 | ||||||||||||
Gtd. Notes | 8.750 | 05/23/26 | 330 | 367,024 |
See Notes to Financial Statements.
28 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Oil & Gas (cont’d.) | ||||||||||||||||
Petroleos de Venezuela SA (Venezuela), | 8.500 | % | 10/27/20 | 385 | $ | 49,088 | ||||||||||
Sr. Unsec’d. Notes | 5.375 | 04/12/27 | (d) | 625 | 23,438 | |||||||||||
Sr. Unsec’d. Notes | 6.000 | 05/16/24 | (d) | 115 | 4,313 | |||||||||||
Sr. Unsec’d. Notes | 6.000 | 11/15/26 | (d) | 670 | 25,125 | |||||||||||
Sr. Unsec’d. Notes | 9.000 | 11/17/21 | (d) | 150 | 5,625 | |||||||||||
Sr. Unsec’d. Notes | 9.750 | 05/17/35 | (d) | 200 | 7,500 | |||||||||||
Petroleos Mexicanos (Mexico), | ||||||||||||||||
Gtd. Notes | 6.350 | 02/12/48 | 554 | 371,440 | ||||||||||||
Gtd. Notes | 6.500 | 03/13/27 | 470 | 381,118 | ||||||||||||
Gtd. Notes | 6.500 | 01/23/29 | 430 | 336,218 | ||||||||||||
Gtd. Notes | 6.500 | 06/02/41 | 730 | 492,678 | ||||||||||||
Gtd. Notes, 144A | 5.950 | 01/28/31 | 175 | 127,354 | ||||||||||||
Gtd. Notes, 144A | 6.490 | 01/23/27 | 295 | 239,792 | ||||||||||||
Gtd. Notes, 144A | 7.690 | 01/23/50 | 245 | 179,732 | ||||||||||||
Gtd. Notes, MTN | 6.875 | 08/04/26 | 255 | 211,182 | ||||||||||||
Petronas Capital Ltd. (Malaysia), | 4.550 | 04/21/50 | 400 | 434,997 | ||||||||||||
Precision Drilling Corp. (Canada), | 7.125 | 01/15/26 | 225 | 90,117 | ||||||||||||
Range Resources Corp., | ||||||||||||||||
Gtd. Notes | 4.875 | 05/15/25 | 250 | 193,476 | ||||||||||||
Gtd. Notes | 5.000 | 03/15/23 | 50 | 44,674 | ||||||||||||
Gtd. Notes, 144A | 9.250 | 02/01/26 | 100 | 81,842 | ||||||||||||
Saka Energi Indonesia PT (Indonesia), | 4.450 | 05/05/24 | 200 | 173,000 | ||||||||||||
Sinopec Group Overseas Development 2012 Ltd. (China), | 4.875 | 05/17/42 | 200 | 248,486 | ||||||||||||
Sinopec Group Overseas Development 2017 Ltd. (China), | 4.000 | 09/13/47 | 200 | 225,420 | ||||||||||||
Sinopec Group Overseas Development 2018 Ltd. (China), | 3.680 | 08/08/49 | 200 | 214,222 | ||||||||||||
Sunoco LP/Sunoco Finance Corp., | 5.500 | 02/15/26 | 100 | 96,000 | ||||||||||||
Transocean, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 7.250 | 11/01/25 | 375 | 144,623 | ||||||||||||
Gtd. Notes, 144A | 8.000 | 02/01/27 | 75 | 29,118 | ||||||||||||
Trinidad Petroleum Holdings Ltd. (Trinidad & Tobago), | 9.750 | 06/15/26 | 75 | 67,335 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 29 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Oil & Gas (cont’d.) | ||||||||||||||||
Valaris PLC (Saudi Arabia), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | % | 10/01/44 | 50 | $ | 3,972 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 02/01/26 | 225 | 17,946 | ||||||||||||
WPX Energy, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 09/15/24 | 125 | 112,316 | ||||||||||||
Sr. Unsec’d. Notes | 5.250 | 10/15/27 | 150 | 130,548 | ||||||||||||
|
| |||||||||||||||
9,927,356 | ||||||||||||||||
Pharmaceuticals 0.2% | ||||||||||||||||
Bausch Health Americas, Inc., | 8.500 | 01/31/27 | 185 | 203,851 | ||||||||||||
Bausch Health Cos., Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 01/30/28 | 75 | 72,254 | ||||||||||||
Gtd. Notes, 144A | 5.250 | 01/30/30 | 75 | 74,198 | ||||||||||||
Gtd. Notes, 144A | 7.000 | 01/15/28 | 100 | 103,875 | ||||||||||||
Gtd. Notes, 144A | 7.250 | 05/30/29 | 110 | 117,580 | ||||||||||||
|
| |||||||||||||||
571,758 | ||||||||||||||||
Pipelines 0.4% | ||||||||||||||||
Abu Dhabi Crude Oil Pipeline LLC (United Arab Emirates), | 4.600 | 11/02/47 | 200 | 214,128 | ||||||||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp., | 5.750 | 01/15/28 | 250 | 184,038 | ||||||||||||
Energy Transfer Operating LP, | 7.125 | (ff) | — | (rr) | 100 | 79,662 | ||||||||||
Global Partners LP/GLP Finance Corp., | 7.000 | 08/01/27 | 40 | 32,173 | ||||||||||||
Rockies Express Pipeline LLC, | 6.875 | 04/15/40 | 225 | 197,877 | ||||||||||||
Southern Gas Corridor CJSC (Azerbaijan), | ||||||||||||||||
Gov’t. Gtd. Notes | 6.875 | 03/24/26 | 200 | 209,046 | ||||||||||||
Gov’t. Gtd. Notes, 144A | 6.875 | 03/24/26 | 250 | 261,308 | ||||||||||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | 5.500 | 01/15/28 | 275 | 186,336 | ||||||||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp., | 6.500 | 07/15/27 | 100 | 89,791 | ||||||||||||
|
| |||||||||||||||
1,454,359 |
See Notes to Financial Statements.
30 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Real Estate 0.2% | ||||||||||||||||
Country Garden Holdings Co. Ltd. (China), | 8.000 | % | 01/27/24 | 200 | $ | 211,720 | ||||||||||
Five Point Operating Co. LP/Five Point Capital Corp., | 7.875 | 11/15/25 | 175 | 169,227 | ||||||||||||
Greystar Real Estate Partners LLC, | 5.750 | 12/01/25 | 200 | 181,781 | ||||||||||||
Hunt Cos., Inc., | 6.250 | 02/15/26 | 225 | 191,000 | ||||||||||||
|
| |||||||||||||||
753,728 | ||||||||||||||||
Real Estate Investment Trusts (REITs) 0.1% | ||||||||||||||||
ESH Hospitality, Inc., | 5.250 | 05/01/25 | 125 | 117,443 | ||||||||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc., | 4.500 | 01/15/28 | 150 | 141,536 | ||||||||||||
RHP Hotel Properties LP/RHP Finance Corp., | 5.000 | 04/15/23 | 25 | 23,337 | ||||||||||||
VICI Properties LP/VICI Note Co., Inc., | 4.250 | 12/01/26 | 95 | 88,930 | ||||||||||||
|
| |||||||||||||||
371,246 | ||||||||||||||||
Retail 0.7% | ||||||||||||||||
Brinker International, Inc., | 5.000 | 10/01/24 | 150 | 126,234 | ||||||||||||
CEC Entertainment, Inc., | 8.000 | 02/15/22 | 275 | 19,207 | ||||||||||||
eG Global Finance PLC (United Kingdom), | 8.500 | 10/30/25 | 200 | 192,181 | ||||||||||||
Ferrellgas LP/Ferrellgas Finance Corp., | 6.750 | 01/15/22 | 200 | 159,488 | ||||||||||||
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 8.625 | 06/15/20 | 450 | 179,519 | ||||||||||||
Sr. Unsec’d. Notes | 8.625 | 06/15/20 | 225 | 106,570 | ||||||||||||
Golden Nugget, Inc., | 8.750 | 10/01/25 | 425 | 245,220 | ||||||||||||
L Brands, Inc., | 5.625 | 10/15/23 | 50 | 40,682 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 31 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Retail (cont’d.) | ||||||||||||||||
Michaels Stores, Inc., | 8.000 | % | 07/15/27 | 175 | $ | 122,014 | ||||||||||
PetSmart, Inc., | 5.875 | 06/01/25 | 234 | 235,652 | ||||||||||||
Rite Aid Corp., | ||||||||||||||||
Gtd. Notes, 144A | 6.125 | 04/01/23 | 190 | 173,568 | ||||||||||||
Sr. Sec’d. Notes, 144A | 7.500 | 07/01/25 | 85 | 83,631 | ||||||||||||
Sally Holdings LLC/Sally Capital, Inc., | ||||||||||||||||
Gtd. Notes | 5.625 | 12/01/25 | 350 | 289,043 | ||||||||||||
Sec’d. Notes, 144A | 8.750 | 04/30/25 | 50 | 50,742 | ||||||||||||
Suburban Propane Partners LP/Suburban Energy Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 03/01/25 | 25 | 24,497 | ||||||||||||
Sr. Unsec’d. Notes | 5.875 | 03/01/27 | 150 | 144,595 | ||||||||||||
Superior Plus LP/Superior General Partner, Inc. (Canada), | 7.000 | 07/15/26 | 100 | 100,177 | ||||||||||||
|
| |||||||||||||||
2,293,020 | ||||||||||||||||
Software 0.4% | ||||||||||||||||
Dun & Bradstreet Corp. (The), | 6.875 | 08/15/26 | 65 | 68,641 | ||||||||||||
Infor US, Inc., | 6.500 | 05/15/22 | 1,105 | 1,106,077 | ||||||||||||
RP Crown Parent LLC, | 7.375 | 10/15/24 | 130 | 128,302 | ||||||||||||
|
| |||||||||||||||
1,303,020 | ||||||||||||||||
Telecommunications 1.2% | ||||||||||||||||
CenturyLink, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.625 | 04/01/25 | 100 | 100,563 | ||||||||||||
Sr. Unsec’d. Notes, Series P | 7.600 | 09/15/39 | 180 | 184,347 | ||||||||||||
CommScope Technologies LLC, | 6.000 | 06/15/25 | 200 | 178,113 | ||||||||||||
CommScope, Inc., | 6.000 | 03/01/26 | 100 | 100,008 | ||||||||||||
Digicel Group One Ltd. (Jamaica), | 8.250 | 12/30/22 | 157 | 93,892 | ||||||||||||
Digicel Group Two Ltd. (Jamaica), | 8.250 | 09/30/22 | 98 | 3,031 |
See Notes to Financial Statements.
32 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Telecommunications (cont’d.) | ||||||||||||||||
Digicel Ltd. (Jamaica), | ||||||||||||||||
Gtd. Notes, 144A | 6.750 | % | 03/01/23 | 800 | $ | 311,798 | ||||||||||
Sr. Unsec’d. Notes | 6.000 | 04/15/21 | (d) | 200 | 120,575 | |||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 04/15/21 | 200 | 120,575 | ||||||||||||
Embarq Corp., | 7.995 | 06/01/36 | 590 | 616,576 | ||||||||||||
Intelsat Jackson Holdings SA (Luxembourg), | ||||||||||||||||
Gtd. Notes(original cost $80,437; purchased 01/31/20)(f) | 5.500 | 08/01/23 | 95 | 51,705 | ||||||||||||
Gtd. Notes, 144A(original cost $643,344; purchased 01/03/18)(f) | 9.750 | 07/15/25 | (d) | 635 | 367,570 | |||||||||||
Intelsat Luxembourg SA (Luxembourg), | 8.125 | 06/01/23 | 95 | 7,723 | ||||||||||||
Intrado Corp., | 8.500 | 10/15/25 | 360 | 251,388 | ||||||||||||
MTN Mauritius Investments Ltd. (South Africa), | 6.500 | 10/13/26 | 200 | 193,043 | ||||||||||||
ORBCOMM, Inc., | 8.000 | 04/01/24 | 200 | 184,106 | ||||||||||||
Sprint Capital Corp., | ||||||||||||||||
Gtd. Notes | 6.875 | 11/15/28 | 96 | 115,947 | ||||||||||||
Gtd. Notes | 8.750 | 03/15/32 | 165 | 231,913 | ||||||||||||
T-Mobile USA, Inc., | 6.500 | 01/15/26 | 200 | 211,027 | ||||||||||||
Xplornet Communications, Inc. (Canada), | 9.625 | 06/01/22 | 452 | 455,768 | ||||||||||||
Zayo Group Holdings, Inc., | 6.125 | 03/01/28 | 75 | 70,671 | ||||||||||||
|
| |||||||||||||||
3,970,339 | ||||||||||||||||
Transportation 0.3% | ||||||||||||||||
Kazakhstan Temir Zholy Finance BV (Kazakhstan), | 6.950 | 07/10/42 | 400 | 462,851 | ||||||||||||
Pelabuhan Indonesia III Persero PT (Indonesia), | 4.875 | 10/01/24 | 200 | 203,457 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 33 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Transportation (cont’d.) | ||||||||||||||||
XPO Logistics, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 6.125 | % | 09/01/23 | 175 | $ | 177,130 | ||||||||||
Gtd. Notes, 144A | 6.750 | 08/15/24 | 100 | 103,116 | ||||||||||||
|
| |||||||||||||||
946,554 | ||||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | 53,462,926 | |||||||||||||||
|
| |||||||||||||||
SOVEREIGN BONDS 12.3% | ||||||||||||||||
1MDB Global Investments Ltd. (Malaysia), | 4.400 | 03/09/23 | 1,000 | 890,595 | ||||||||||||
Abu Dhabi Government International Bond (United Arab Emirates), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.125 | 09/30/49 | 200 | 190,965 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 3.875 | 04/16/50 | 200 | 212,293 | ||||||||||||
Angolan Government International Bond (Angola), | ||||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 05/09/28 | 200 | 87,507 | ||||||||||||
Sr. Unsec’d. Notes | 9.375 | 05/08/48 | 400 | 171,383 | ||||||||||||
Sr. Unsec’d. Notes | 9.500 | 11/12/25 | 600 | 284,845 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 8.000 | 11/26/29 | 200 | 87,350 | ||||||||||||
Argentina Bonar Bonds (Argentina), | 8.750 | 05/07/24 | 167 | 40,043 | ||||||||||||
Argentine Republic Government International Bond (Argentina), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.375 | 01/15/23 | EUR | 390 | 107,323 | |||||||||||
Sr. Unsec’d. Notes | 3.380 | (cc) | 12/31/38 | EUR | 200 | 57,666 | ||||||||||
Sr. Unsec’d. Notes | 3.750 | (cc) | 12/31/38 | 180 | 56,752 | |||||||||||
Sr. Unsec’d. Notes | 5.625 | 01/26/22 | 900 | 251,994 | ||||||||||||
Sr. Unsec’d. Notes | 6.875 | 04/22/21 | 210 | 60,504 | ||||||||||||
Sr. Unsec’d. Notes | 6.875 | 01/11/48 | 75 | 17,605 | ||||||||||||
Sr. Unsec’d. Notes | 7.820 | 12/31/33 | EUR | 825 | 294,022 | |||||||||||
Sr. Unsec’d. Notes | 8.280 | 12/31/33 | 561 | 196,674 | ||||||||||||
Bahrain Government International Bond (Bahrain), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 01/26/26 | 200 | 199,850 | ||||||||||||
Sr. Unsec’d. Notes | 7.000 | 10/12/28 | 200 | 199,136 | ||||||||||||
Sr. Unsec’d. Notes | 7.500 | 09/20/47 | 400 | 379,804 | ||||||||||||
Brazilian Government International Bond (Brazil), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.625 | 01/07/41 | 150 | 149,263 | ||||||||||||
Sr. Unsec’d. Notes | 7.125 | 01/20/37 | 235 | 265,572 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 01/20/34 | 683 | 835,003 | ||||||||||||
Colombia Government International Bond (Colombia), | ||||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 01/18/41 | 225 | 250,787 | ||||||||||||
Sr. Unsec’d. Notes | 7.375 | 09/18/37 | 440 | 542,123 |
See Notes to Financial Statements.
34 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Colombia Government International Bond (Colombia), (cont’d.) | 10.375 | % | 01/28/33 | 200 | $ | 281,544 | ||||||||||
Congolese International Bond (Congo (Republic)), | 6.000 | 06/30/29 | 191 | 149,813 | ||||||||||||
Costa Rica Government International Bond (Costa Rica), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.250 | 01/26/23 | 400 | 358,267 | ||||||||||||
Sr. Unsec’d. Notes | 4.375 | 04/30/25 | 200 | 165,829 | ||||||||||||
Sr. Unsec’d. Notes | 7.000 | 04/04/44 | 200 | 152,750 | ||||||||||||
Sr. Unsec’d. Notes | 7.158 | 03/12/45 | 200 | 155,045 | ||||||||||||
Croatia Government International Bond (Croatia), | 2.750 | 01/27/30 | EUR | 100 | 116,198 | |||||||||||
Dominican Republic International Bond (Dominican Republic), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 04/18/24 | 350 | 338,253 | ||||||||||||
Sr. Unsec’d. Notes | 7.450 | 04/30/44 | 760 | 686,803 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.875 | 01/30/60 | 150 | 118,091 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 07/19/28 | 320 | 288,321 | ||||||||||||
Ecuador Government International Bond (Ecuador), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.950 | 06/20/24 | 200 | 63,192 | ||||||||||||
Sr. Unsec’d. Notes | 8.875 | 10/23/27 | 220 | 62,700 | ||||||||||||
Sr. Unsec’d. Notes | 9.650 | 12/13/26 | 200 | 56,664 | ||||||||||||
Sr. Unsec’d. Notes | 10.750 | 03/28/22 | 400 | 127,718 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.875 | 01/23/28 | 200 | 56,910 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.750 | 06/02/23 | 265 | 82,410 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.875 | 10/23/27 | 200 | 57,000 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 9.650 | 12/13/26 | 420 | 118,994 | ||||||||||||
Egypt Government International Bond (Egypt), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.903 | 02/21/48 | 200 | 172,761 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.700 | 03/01/49 | 210 | 188,344 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.750 | 04/11/25 | EUR | 100 | 96,405 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.750 | 04/16/26 | EUR | 200 | 186,290 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.375 | 04/11/31 | EUR | 220 | 202,555 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 7.600 | 03/01/29 | 200 | 189,773 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 8.500 | 01/31/47 | 255 | 227,987 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.625 | 04/16/30 | EUR | 100 | 90,104 | |||||||||||
El Salvador Government International Bond (El Salvador), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 01/30/25 | 355 | 283,371 | ||||||||||||
Sr. Unsec’d. Notes | 7.625 | 02/01/41 | 300 | 230,087 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 04/10/32 | 280 | 228,213 | ||||||||||||
Emirate of Dubai Government International Bonds (United Arab Emirates), Sr. Unsec’d. Notes, EMTN | 5.250 | 01/30/43 | 200 | 197,466 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 35 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Ethiopia International Bond (Ethiopia), | 6.625 | % | 12/11/24 | 200 | $ | 172,376 | ||||||||||
Export-Import Bank of India (India), | 3.250 | 01/15/30 | 200 | 183,201 | ||||||||||||
Gabon Government International Bond (Gabon), Bonds | 6.375 | 12/12/24 | 200 | 144,080 | ||||||||||||
Sr. Unsec’d. Notes | 6.950 | 06/16/25 | 200 | 142,774 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.625 | 02/06/31 | 215 | 151,646 | ||||||||||||
Ghana Government International Bond (Ghana), | ||||||||||||||||
Bank Gtd. Notes | 10.750 | 10/14/30 | 400 | 415,683 | ||||||||||||
Sr. Unsec’d. Notes | 7.875 | 03/26/27 | 200 | 159,594 | ||||||||||||
Sr. Unsec’d. Notes | 8.125 | 01/18/26 | 200 | 164,740 | ||||||||||||
Sr. Unsec’d. Notes | 8.125 | 03/26/32 | 200 | 153,321 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.750 | 03/11/61 | 200 | 150,923 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.950 | 03/26/51 | 205 | 154,734 | ||||||||||||
Guatemala Government Bond (Guatemala), | 4.875 | 02/13/28 | 200 | 200,768 | ||||||||||||
Hellenic Republic Government Bond (Greece), | ||||||||||||||||
Bonds | 3.650 | (cc) | 02/24/38 | EUR | 240 | 315,001 | ||||||||||
Bonds | 3.650 | (cc) | 02/24/40 | EUR | 115 | 151,639 | ||||||||||
Honduras Government International Bond (Honduras), | 7.500 | 03/15/24 | 200 | 192,104 | ||||||||||||
Hungary Government International Bond (Hungary), | 7.625 | 03/29/41 | 262 | 420,073 | ||||||||||||
Indonesia Government International Bond (Indonesia), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/17/38 | 200 | 280,640 | ||||||||||||
Sr. Unsec’d. Notes | 8.500 | 10/12/35 | 420 | 607,320 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.125 | 01/15/45 | 200 | 225,193 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.250 | 01/17/42 | 200 | 226,580 | ||||||||||||
Iraq International Bond (Iraq), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.800 | 01/15/28 | 500 | 363,995 | ||||||||||||
Sr. Unsec’d. Notes | 6.752 | 03/09/23 | 400 | 302,802 | ||||||||||||
Israel Government International Bond (Israel), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.875 | 07/03/50 | 200 | 220,816 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/03/20 | 200 | 233,836 | ||||||||||||
Ivory Coast Government International Bond (Ivory Coast), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.125 | 06/15/25 | EUR | 100 | 100,863 | |||||||||||
Sr. Unsec’d. Notes | 5.250 | 03/22/30 | EUR | 100 | 89,955 | |||||||||||
Sr. Unsec’d. Notes | 6.375 | 03/03/28 | 200 | 179,862 | ||||||||||||
Sr. Unsec’d. Notes | 6.625 | 03/22/48 | EUR | 240 | 210,197 | |||||||||||
Sr. Unsec’d. Notes | 6.875 | 10/17/40 | EUR | 100 | 90,003 |
See Notes to Financial Statements.
36 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Jamaica Government International Bond (Jamaica), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.875 | % | 07/28/45 | 200 | $ | 209,965 | ||||||||||
Sr. Unsec’d. Notes | 9.250 | 10/17/25 | 200 | 214,592 | ||||||||||||
Jordan Government International Bond (Jordan), | 7.375 | 10/10/47 | 200 | 184,672 | ||||||||||||
Kazakhstan Government International Bond (Kazakhstan), | 6.500 | 07/21/45 | 200 | 264,206 | ||||||||||||
Kenya Government International Bond (Kenya), | ||||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 06/24/24 | 200 | 183,904 | ||||||||||||
Sr. Unsec’d. Notes | 7.000 | 05/22/27 | 200 | 181,437 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.000 | 05/22/32 | 200 | 181,202 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.250 | 02/28/48 | 200 | 179,791 | ||||||||||||
Lebanon Government International Bond (Lebanon), | ||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 01/27/23 | (d) | 89 | 14,335 | |||||||||||
Sr. Unsec’d. Notes | 6.650 | 04/22/24 | (d) | 120 | 19,349 | |||||||||||
Sr. Unsec’d. Notes | 6.750 | 11/29/27 | (d) | 150 | 24,000 | |||||||||||
Sr. Unsec’d. Notes | 7.000 | 04/22/31 | (d) | 80 | 12,800 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 6.100 | 10/04/22 | (d) | 10 | 1,638 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 6.850 | 05/25/29 | (d) | 195 | 31,294 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.250 | 05/27/22 | (d) | 130 | 21,229 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.250 | 11/04/24 | (d) | 320 | 51,528 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.375 | 03/09/20 | (d) | 220 | 36,266 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.400 | 05/26/23 | (d) | 100 | 16,416 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.600 | 11/27/26 | (d) | 30 | 4,800 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.650 | 02/26/30 | (d) | 315 | 50,400 | |||||||||||
Malaysia Sukuk Global Bhd (Malaysia), | 4.080 | 04/27/46 | 250 | 289,709 | ||||||||||||
Mexican Bonos (Mexico), | 10.000 | 11/20/36 | MXN | 1,800 | 93,921 | |||||||||||
Mexico Government International Bond (Mexico), | ||||||||||||||||
Sr. Unsec’d. Notes, MTN | 6.050 | 01/11/40 | 236 | 256,116 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 6.750 | 09/27/34 | 203 | 243,998 | ||||||||||||
Mozambique International Bond (Mozambique), | ||||||||||||||||
Unsec’d. Notes | 5.000 | 09/15/31 | 200 | 138,074 | ||||||||||||
Unsec’d. Notes, 144A | 5.000 | 09/15/31 | 200 | 138,074 | ||||||||||||
Namibia International Bonds (Namibia), | 5.250 | 10/29/25 | 200 | 182,158 | ||||||||||||
Nigeria Government International Bond (Nigeria), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.143 | 02/23/30 | 200 | 151,768 | ||||||||||||
Sr. Unsec’d. Notes | 7.875 | 02/16/32 | 640 | 485,136 | ||||||||||||
Sr. Unsec’d. Notes | 8.747 | 01/21/31 | 400 | 321,106 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 11/28/27 | 200 | 150,829 | ||||||||||||
Oman Government International Bond (Oman), | 4.750 | 06/15/26 | 230 | 176,035 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 37 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Oman Government International Bond (Oman), (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 6.500 | % | 03/08/47 | 600 | $ | 422,100 | ||||||||||
Sr. Unsec’d. Notes | 6.750 | 01/17/48 | 200 | 141,554 | ||||||||||||
Pakistan Government International Bond (Pakistan), | ||||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 12/05/27 | 200 | 174,811 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 09/30/25 | 400 | 371,940 | ||||||||||||
Panama Government International Bond (Panama), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.870 | 07/23/60 | 200 | 208,614 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/01/56 | 200 | 225,569 | ||||||||||||
Sr. Unsec’d. Notes | 6.700 | 01/26/36 | 445 | 584,615 | ||||||||||||
Sr. Unsec’d. Notes | 9.375 | 04/01/29 | 80 | 112,119 | ||||||||||||
Papua New Guinea Government International Bond (Papua New Guinea), | 8.375 | 10/04/28 | 200 | 176,674 | ||||||||||||
Paraguay Government International Bond (Paraguay), | 6.100 | 08/11/44 | 200 | 218,714 | ||||||||||||
Peruvian Government International Bond (Peru), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.783 | 01/23/31 | 55 | 56,731 | ||||||||||||
Sr. Unsec’d. Notes | 5.625 | 11/18/50 | 150 | 222,904 | ||||||||||||
Sr. Unsec’d. Notes | 6.550 | 03/14/37 | 200 | 287,330 | ||||||||||||
Sr. Unsec’d. Notes | 8.750 | 11/21/33 | 335 | 529,058 | ||||||||||||
Philippine Government International Bond (Philippines), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.950 | 05/05/45 | 200 | 205,633 | ||||||||||||
Sr. Unsec’d. Notes | 3.950 | 01/20/40 | 300 | 350,023 | ||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/14/31 | 320 | 470,019 | ||||||||||||
Provincia de Buenos Aires (Argentina), | 4.000 | 05/01/20 | (d) | EUR | 15 | 7,209 | ||||||||||
Provincia de Buenos Aires/Government Bonds (Argentina), | ||||||||||||||||
Sr. Unsec’d. Notes | 9.125 | 03/16/24 | 300 | 82,590 | ||||||||||||
Sr. Unsec’d. Notes | 9.950 | 06/09/21 | 620 | 168,200 | ||||||||||||
Qatar Government International Bond (Qatar), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.103 | 04/23/48 | 400 | 497,321 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.400 | 04/16/50 | 200 | 226,397 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.817 | 03/14/49 | 355 | 425,829 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.103 | 04/23/48 | 400 | 497,321 | ||||||||||||
Republic of Belarus International Bond (Belarus), | 7.625 | 06/29/27 | 425 | 418,562 | ||||||||||||
Republic of Cameroon International Bond (Cameroon), | 9.500 | 11/19/25 | 200 | 172,958 | ||||||||||||
Republic of South Africa Government International Bond (South Africa), | 5.000 | 10/12/46 | 200 | 148,697 |
See Notes to Financial Statements.
38 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Republic of South Africa Government International Bond (South Africa), (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 5.650 | % | 09/27/47 | 200 | $ | 155,497 | ||||||||||
Sr. Unsec’d. Notes | 6.300 | 06/22/48 | 200 | 166,006 | ||||||||||||
Romanian Government International Bond (Romania), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.125 | 06/15/48 | 354 | 373,480 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 3.375 | 01/28/50 | EUR | 31 | 28,950 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.625 | 04/03/49 | EUR | 48 | 53,040 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 4.125 | 03/11/39 | EUR | 102 | 109,527 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 04/03/49 | EUR | 20 | 22,100 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 6.125 | 01/22/44 | 264 | 312,513 | ||||||||||||
Russian Foreign Bond - Eurobond (Russia), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.100 | 03/28/35 | 600 | 701,799 | ||||||||||||
Sr. Unsec’d. Notes | 5.625 | 04/04/42 | 200 | 253,007 | ||||||||||||
Sr. Unsec’d. Notes | 12.750 | 06/24/28 | 35 | 58,829 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.100 | 03/28/35 | 200 | 233,933 | ||||||||||||
Saudi Government International Bond (Saudi Arabia), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 01/16/50 | 200 | 225,553 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.500 | 10/26/46 | 800 | 825,975 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 10/04/47 | 200 | 208,515 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.000 | 04/17/49 | 200 | 219,612 | ||||||||||||
Senegal Government International Bond (Senegal), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 03/13/28 | EUR | 100 | 95,040 | |||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 03/13/48 | 200 | 166,361 | ||||||||||||
Sri Lanka Government International Bond (Sri Lanka), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 04/18/23 | 600 | 353,881 | ||||||||||||
Sr. Unsec’d. Notes | 5.875 | 07/25/22 | 200 | 125,700 | ||||||||||||
Sr. Unsec’d. Notes | 6.850 | 11/03/25 | 200 | 115,355 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.750 | 04/18/23 | 200 | 117,960 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 04/18/28 | 200 | 113,073 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.850 | 03/14/24 | 265 | 159,777 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.850 | 03/14/29 | 400 | 227,475 | ||||||||||||
Turkey Government International Bond (Turkey), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 10/09/26 | 300 | 263,847 | ||||||||||||
Sr. Unsec’d. Notes | 6.000 | 03/25/27 | 280 | 257,663 | ||||||||||||
Sr. Unsec’d. Notes | 6.000 | 01/14/41 | 400 | 320,734 | ||||||||||||
Sr. Unsec’d. Notes | 6.875 | 03/17/36 | 99 | 89,082 | ||||||||||||
Sr. Unsec’d. Notes | 7.375 | 02/05/25 | 125 | 127,257 | ||||||||||||
Sr. Unsec’d. Notes | 7.625 | 04/26/29 | 200 | 197,279 | ||||||||||||
Turkiye Ihracat Kredi Bankasi A/S (Turkey), | ||||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 05/03/24 | 200 | 190,814 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 01/24/24 | 200 | 204,985 | ||||||||||||
Ukraine Government International Bond (Ukraine), | ||||||||||||||||
Sr. Unsec’d. Notes | — | (p) | 05/31/40 | 111 | 81,669 | |||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/23 | 165 | 156,871 |
See Notes to Financial Statements.
PGIM Income Builder Fund | 39 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Ukraine Government International Bond (Ukraine), (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | % | 09/01/24 | 100 | $ | 94,311 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/25 | 260 | 242,873 | ||||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/26 | 250 | 231,289 | ||||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/27 | 200 | 183,774 | ||||||||||||
Sr. Unsec’d. Notes | 8.994 | 02/01/24 | 200 | 195,477 | ||||||||||||
Sr. Unsec’d. Notes | 9.750 | 11/01/28 | 535 | 525,546 | ||||||||||||
Sr. Unsec’d. Notes, 144A | — | (p) | 05/31/40 | 35 | 25,752 | |||||||||||
Sr. Unsec’d. Notes, 144A | 4.375 | 01/27/30 | EUR | 100 | 84,474 | |||||||||||
Ukreximbank Via Biz Finance PLC (Ukraine), | ||||||||||||||||
Sr. Unsec’d. Notes | 9.625 | 04/27/22 | 67 | 65,386 | ||||||||||||
Sr. Unsec’d. Notes | 9.750 | 01/22/25 | 200 | 194,281 | ||||||||||||
Uruguay Government International Bond (Uruguay), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.125 | 11/20/45 | 80 | 82,079 | ||||||||||||
Sr. Unsec’d. Notes | 4.975 | 04/20/55 | 100 | 113,009 | ||||||||||||
Sr. Unsec’d. Notes | 5.100 | 06/18/50 | 290 | 328,952 | ||||||||||||
Sr. Unsec’d. Notes | 7.625 | 03/21/36 | 325 | 451,778 | ||||||||||||
Venezuela Government International Bond (Venezuela), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 03/31/38 | (d) | 220 | 20,339 | |||||||||||
Sr. Unsec’d. Notes | 7.750 | 10/13/19 | (d) | 110 | 8,800 | |||||||||||
Sr. Unsec’d. Notes | 9.000 | 05/07/23 | (d) | 100 | 9,177 | |||||||||||
Sr. Unsec’d. Notes | 11.950 | 08/05/31 | (d) | 300 | 26,277 | |||||||||||
Zambia Government International Bond (Zambia), | ||||||||||||||||
Sr. Unsec’d. Notes | 8.500 | 04/14/24 | 400 | 131,069 | ||||||||||||
Unsec’d. Notes | 5.375 | 09/20/22 | 400 | 130,484 | ||||||||||||
|
| |||||||||||||||
TOTAL SOVEREIGN BONDS | 40,336,162 | |||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | 323,905,013 | |||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENTS 4.8% | ||||||||||||||||
AFFILIATED MUTUAL FUNDS | ||||||||||||||||
PGIM Core Ultra Short Bond Fund(w) | 5,066,004 | 5,066,004 |
See Notes to Financial Statements.
40 |
Description | Shares | Value | ||||||||||||||
AFFILIATED MUTUAL FUNDS (Continued) | ||||||||||||||||
PGIM Institutional Money Market Fund | 10,627,567 | $ | 10,625,441 | |||||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | 15,691,445 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 103.4% | 339,596,458 | |||||||||||||||
Liabilities in excess of other assets(z) (3.4)% | (11,163,973 | ) | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 328,432,485 | ||||||||||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
AUD—Australian Dollar
BRL—Brazilian Real
CAD—Canadian Dollar
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
EGP—Egyptian Pound
EUR—Euro
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli Shekel
INR—Indian Rupee
JPY—Japanese Yen
KRW—South Korean Won
KZT—Kazakhstani Tenge
MXN—Mexican Peso
NZD—New Zealand Dollar
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
USD—US Dollar
ZAR—South African Rand
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
ADR—American Depositary Receipt
CDX—Credit Derivative Index
CLO—Collateralized Loan Obligation
CVT—Convertible Security
See Notes to Financial Statements.
PGIM Income Builder Fund | 41 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
EMTN—Euro Medium Term Note
ETF—Exchange-Traded Fund
GMTN—Global Medium Term Note
LIBOR—London Interbank Offered Rate
LP—Limited Partnership
MLP—Master Limited Partnership
MSCI—Morgan Stanley Capital International
MTN—Medium Term Note
OTC—Over-the-counter
PIK—Payment-in-Kind
PJSC—Public Joint-Stock Company
REITs—Real Estate Investment Trust
SPDR—Standard & Poor’s Depositary Receipts
Q—Quarterly payment frequency for swaps
* | Non-income producing security. |
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $795,245 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 $10,095,681; cash collateral of $10,603,987 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. |
(b) | Represents security, or portion thereof, 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, 2020. |
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of April 30, 2020. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
(f) | Indicates a restricted security; the aggregate original cost of such securities is $981,031. The aggregate value of $587,194 is 0.2% of net assets. |
(g) | An affiliated security. |
(ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
(p) | Interest rate not available as of April 30, 2020. |
(rr) | Perpetual security with no stated maturity date. |
(w) | PGIM Investments LLC, the manager of the Fund, also serves as the manager of the underlying funds in which the Fund invests. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Futures contracts outstanding at April 30, 2020:
Number of Contracts | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||
Long Positions: | ||||||||||||||||
11 | 2 Year U.S. Treasury Notes | Jun. 2020 | $ | 2,424,727 | $ | 11,854 | ||||||||||
6 | 5 Year U.S. Treasury Notes | Jun. 2020 | 752,906 | 30,024 |
See Notes to Financial Statements.
42 |
Futures contracts outstanding at April 30, 2020 (continued):
Number of Contracts | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||
Long Positions (cont’d): | ||||||||||||||||
15 | 10 Year U.S. Treasury Notes | Jun. 2020 | $ | 2,085,938 | $ | 54,217 | ||||||||||
4 | 20 Year U.S. Treasury Bonds | Jun. 2020 | 724,125 | 65,900 | ||||||||||||
|
| |||||||||||||||
161,995 | ||||||||||||||||
|
| |||||||||||||||
Short Positions: | ||||||||||||||||
9 | 10 Year Euro-Bund | Jun. 2020 | 1,720,342 | (28,478 | ) | |||||||||||
11 | 20 Year U.S. Treasury Bonds | Jun. 2020 | 1,991,344 | (22,191 | ) | |||||||||||
6 | 30 Year U.S. Ultra Treasury Bonds | Jun. 2020 | 1,348,687 | (11,185 | ) | |||||||||||
|
| |||||||||||||||
(61,854 | ) | |||||||||||||||
|
| |||||||||||||||
$ | 100,141 | |||||||||||||||
|
|
Forward foreign currency exchange contracts outstanding at April 30, 2020:
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: |
| |||||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||
Expiring 05/05/20 | Goldman Sachs International | BRL | 1,098 | $ | 197,023 | $ | 201,880 | $ | 4,857 | $ | — | |||||||||||
Expiring 05/05/20 | HSBC Bank USA, N.A. | BRL | 1,433 | 253,102 | 263,389 | 10,287 | — | |||||||||||||||
Expiring 05/05/20 | Morgan Stanley & Co. International PLC | BRL | 1,477 | 261,611 | 271,499 | 9,888 | — | |||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||
Expiring 05/11/20 | Citibank, N.A. | CNH | 3,312 | 472,739 | 467,765 | — | (4,974 | ) | ||||||||||||||
Expiring 05/11/20 | Citibank, N.A. | CNH | 1,445 | 204,000 | 204,077 | 77 | — | |||||||||||||||
Expiring 05/11/20 | Citibank, N.A. | CNH | 942 | 133,000 | 133,100 | 100 | — | |||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 1,463 | 211,000 | 206,640 | — | (4,360 | ) | ||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 1,463 | 206,000 | 206,675 | 675 | — | |||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 1,239 | 178,000 | 174,963 | — | (3,037 | ) | ||||||||||||||
Expiring 05/11/20 | JPMorgan Chase Bank, N.A. | CNH | 1,436 | 203,000 | 202,800 | — | (200 | ) | ||||||||||||||
Expiring 05/14/21 | Citibank, N.A. | CNH | 2,567 | 367,933 | 358,920 | — | (9,013 | ) | ||||||||||||||
Czech Koruna, | ||||||||||||||||||||||
Expiring 07/17/20 | JPMorgan Chase Bank, N.A. | CZK | 2,914 | 115,913 | 117,926 | 2,013 | — | |||||||||||||||
Egyptian Pound, | ||||||||||||||||||||||
Expiring 05/18/20 | Citibank, N.A. | EGP | 353 | 21,636 | 22,241 | 605 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | EGP | 1,249 | 76,395 | 77,793 | 1,398 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | EGP | 361 | 22,091 | 22,464 | 373 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | EGP | 126 | 7,622 | 7,865 | 243 | — |
See Notes to Financial Statements.
PGIM Income Builder Fund | 43 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||
Egyptian Pound (cont’d.), | ||||||||||||||||||||||
Expiring 06/17/20 | Goldman Sachs International | EGP | 1,209 | $ | 74,887 | $ | 75,265 | $ | 378 | $ | — | |||||||||||
Hungarian Forint, | ||||||||||||||||||||||
Expiring 07/17/20 | BNP Paribas S.A. | HUF | 24,438 | 74,000 | 75,892 | 1,892 | — | |||||||||||||||
Expiring 07/17/20 | Citibank, N.A. | HUF | 37,078 | 115,000 | 115,147 | 147 | — | |||||||||||||||
Expiring 07/17/20 | JPMorgan Chase Bank, N.A. | HUF | 50,277 | 151,575 | 156,138 | 4,563 | — | |||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | HUF | 31,620 | 98,000 | 98,198 | 198 | — | |||||||||||||||
Indian Rupee, | ||||||||||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 16,626 | 217,000 | 218,975 | 1,975 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 15,948 | 212,000 | 210,055 | — | (1,945 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 13,399 | 172,000 | 176,479 | 4,479 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 9,999 | 128,000 | 131,693 | 3,693 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 8,461 | 109,000 | 111,441 | 2,441 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 7,959 | 102,000 | 104,828 | 2,828 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 7,095 | 92,000 | 93,442 | 1,442 | — | |||||||||||||||
Expiring 06/17/20 | The Toronto-Dominion Bank | INR | 7,622 | 104,484 | 100,385 | — | (4,099 | ) | ||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | IDR | 2,127,244 | 147,994 | 139,067 | — | (8,927 | ) | ||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | IDR | 1,385,251 | 97,409 | 90,559 | — | (6,850 | ) | ||||||||||||||
Expiring 06/17/20 | Credit Suisse International | IDR | 5,336,769 | 369,967 | 348,886 | — | (21,081 | ) | ||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | IDR | 2,043,390 | 131,000 | 133,584 | 2,584 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | IDR | 1,417,147 | 95,980 | 92,644 | — | (3,336 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | IDR | 1,265,688 | 80,000 | 82,743 | 2,743 | — | |||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | IDR | 2,547,444 | 178,205 | 166,536 | — | (11,669 | ) | ||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | ILS | 706 | 197,000 | 202,706 | 5,706 | — | |||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | ILS | 526 | 145,000 | 151,040 | 6,040 | — | |||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | ILS | 182 | 51,300 | 52,373 | 1,073 | — | |||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | ILS | 83 | 23,745 | 23,909 | 164 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | ILS | 354 | 101,000 | 101,763 | 763 | — |
See Notes to Financial Statements.
44 |
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||
Israeli Shekel (cont’d.), | ||||||||||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | ILS | 644 | $ | 185,000 | $ | 185,139 | $ | 139 | $ | — | |||||||||||
Japanese Yen, | ||||||||||||||||||||||
Expiring 05/15/20 | Citibank, N.A. | JPY | 10,354 | 97,207 | 96,500 | — | (707 | ) | ||||||||||||||
Expiring 07/17/20 | JPMorgan Chase Bank, N.A. | JPY | 20,324 | 189,594 | 189,619 | 25 | — | |||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | JPY | 1,844 | 17,200 | 17,204 | 4 | — | |||||||||||||||
Kazakhstani Tenge, | ||||||||||||||||||||||
Expiring 05/11/20 | JPMorgan Chase Bank, N.A. | KZT | 26,650 | 69,129 | 62,471 | — | (6,658 | ) | ||||||||||||||
Expiring 05/11/20 | JPMorgan Chase Bank, N.A. | KZT | 12,409 | 32,260 | 29,087 | — | (3,173 | ) | ||||||||||||||
Expiring 06/30/20 | Morgan Stanley & Co. International PLC | KZT | 14,068 | 29,711 | 32,419 | 2,708 | — | |||||||||||||||
Mexican Peso, | ||||||||||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | MXN | 1,155 | 48,000 | 47,542 | — | (458 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | MXN | 2,925 | 139,752 | 120,450 | — | (19,302 | ) | ||||||||||||||
Expiring 06/17/20 | Goldman Sachs International | MXN | 1,680 | 70,458 | 69,176 | — | (1,282 | ) | ||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | TWD | 2,904 | 98,118 | 98,502 | 384 | — | |||||||||||||||
Expiring 06/17/20 | Credit Suisse International | TWD | 5,667 | 190,000 | 192,186 | 2,186 | — | |||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | PEN | 525 | 155,000 | 154,931 | — | (69 | ) | ||||||||||||||
Expiring 06/17/20 | Goldman Sachs International | PEN | 356 | 100,860 | 105,257 | 4,397 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | PEN | 498 | 146,000 | 147,188 | 1,188 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | PEN | 408 | 120,000 | 120,461 | 461 | — | |||||||||||||||
Philippine Peso, | ||||||||||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | PHP | 11,247 | 221,000 | 222,243 | 1,243 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | PHP | 8,487 | 162,000 | 167,694 | 5,694 | — | |||||||||||||||
Polish Zloty, | ||||||||||||||||||||||
Expiring 07/17/20 | UBS AG | PLN | 1,059 | 253,395 | 255,156 | 1,761 | — | |||||||||||||||
Russian Ruble, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | RUB | ��19,375 | 290,592 | 258,280 | — | (32,312 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | RUB | 13,687 | 189,440 | 182,459 | — | (6,981 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | RUB | 4,091 | 55,000 | 54,533 | — | (467 | ) |
See Notes to Financial Statements.
PGIM Income Builder Fund | 45 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||
Russian Ruble (cont’d.), | ||||||||||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | RUB | 3,787 | $ | 47,900 | $ | 50,485 | $ | 2,585 | $ | — | |||||||||||
Singapore Dollar, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | SGD | 220 | 154,000 | 156,102 | 2,102 | — | |||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | SGD | 264 | 186,000 | 187,545 | 1,545 | — | |||||||||||||||
Expiring 06/17/20 | Credit Suisse International | SGD | 380 | 269,000 | 269,786 | 786 | — | |||||||||||||||
Expiring 06/17/20 | Credit Suisse International | SGD | 285 | 202,000 | 202,401 | 401 | — | |||||||||||||||
Expiring 06/17/20 | Credit Suisse International | SGD | 162 | 114,000 | 114,936 | 936 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | SGD | 381 | 275,073 | 270,289 | — | (4,784 | ) | ||||||||||||||
South African Rand, | ||||||||||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | ZAR | 1,073 | 68,000 | 57,600 | — | (10,400 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | ZAR | 1,144 | 65,000 | 61,401 | — | (3,599 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | ZAR | 620 | 32,785 | 33,273 | 488 | — | |||||||||||||||
South Korean Won, | ||||||||||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | KRW | 110,240 | 90,780 | 90,815 | 35 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | KRW | 102,791 | 85,000 | 84,678 | — | (322 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | KRW | 51,005 | 41,940 | 42,018 | 78 | — | |||||||||||||||
Thai Baht, | ||||||||||||||||||||||
Expiring 06/17/20 | Credit Suisse International | THB | 3,862 | 118,000 | 119,380 | 1,380 | — | |||||||||||||||
Expiring 06/17/20 | Credit Suisse International | THB | 3,607 | 110,000 | 111,494 | 1,494 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | THB | 4,473 | 137,000 | 138,249 | 1,249 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | THB | 4,020 | 123,000 | 124,235 | 1,235 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | THB | 3,872 | 117,000 | 119,682 | 2,682 | — | |||||||||||||||
Turkish Lira, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | TRY | 570 | 82,000 | 80,498 | — | (1,502 | ) | ||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | TRY | 357 | 51,000 | 50,441 | — | (559 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
$ | 11,428,805 | $ | 11,367,550 | 110,811 | (172,066 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
46 |
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: |
| |||||||||||||||||||||
Australian Dollar, | ||||||||||||||||||||||
Expiring 07/20/20 | HSBC Bank USA, N.A. | AUD | 644 | $ | 412,062 | $ | 419,677 | $ | — | $ | (7,615 | ) | ||||||||||
Brazilian Real, | ||||||||||||||||||||||
Expiring 05/05/20 | Goldman Sachs International | BRL | 812 | 159,087 | 149,340 | 9,747 | — | |||||||||||||||
Expiring 05/05/20 | JPMorgan Chase Bank, N.A. | BRL | 368 | 69,288 | 67,681 | 1,607 | — | |||||||||||||||
Expiring 05/05/20 | Morgan Stanley & Co. International PLC | BRL | 2,827 | 554,397 | 519,747 | 34,650 | — | |||||||||||||||
Expiring 06/02/20 | Goldman Sachs International | BRL | 1,098 | 196,544 | 201,390 | — | (4,846 | ) | ||||||||||||||
Expiring 06/02/20 | HSBC Bank USA, N.A. | BRL | 1,433 | 252,539 | 262,749 | — | (10,210 | ) | ||||||||||||||
Expiring 06/02/20 | Morgan Stanley & Co. International PLC | BRL | 1,477 | 261,029 | 270,840 | — | (9,811 | ) | ||||||||||||||
Canadian Dollar, | ||||||||||||||||||||||
Expiring 07/20/20 | Morgan Stanley & Co. International PLC | CAD | 102 | 71,979 | 72,936 | — | (957 | ) | ||||||||||||||
Chilean Peso, | ||||||||||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | CLP | 25,640 | 29,790 | 30,749 | — | (959 | ) | ||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | CLP | 262,688 | 314,578 | 315,033 | — | (455 | ) | ||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | CLP | 59,744 | 71,985 | 71,649 | 336 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | CLP | 371,671 | 444,529 | 445,731 | — | (1,202 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | CLP | 107,410 | 127,000 | 128,813 | — | (1,813 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | CLP | 76,817 | 90,779 | 92,123 | — | (1,344 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | CLP | 57,897 | 71,000 | 69,434 | 1,566 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | CLP | 35,883 | 41,940 | 43,034 | — | (1,094 | ) | ||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | CLP | 75,276 | 90,000 | 90,276 | — | (276 | ) | ||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | CLP | 66,481 | 78,000 | 79,728 | — | (1,728 | ) | ||||||||||||||
Expiring 06/17/20 | The Toronto-Dominion Bank | CLP | 145,239 | 172,288 | 174,180 | — | (1,892 | ) | ||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||
Expiring 05/11/20 | Barclays Bank PLC | CNH | 1,201 | 169,000 | 169,690 | — | (690 | ) | ||||||||||||||
Expiring 05/11/20 | Citibank, N.A. | CNH | 1,318 | 187,000 | 186,093 | 907 | — | |||||||||||||||
Expiring 05/11/20 | Credit Suisse International | CNH | 1,840 | 259,000 | 259,864 | — | (864 | ) | ||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 1,418 | 202,000 | 200,266 | 1,734 | — | |||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 1,200 | 171,000 | 169,545 | 1,455 | — |
See Notes to Financial Statements.
PGIM Income Builder Fund | 47 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||
Chinese Renminbi (cont’d.), | ||||||||||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 1,108 | $ | 156,000 | $ | 156,524 | $ | — | $ | (524 | ) | ||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 878 | 125,550 | 123,959 | 1,591 | — | |||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 871 | 124,400 | 123,063 | 1,337 | — | |||||||||||||||
Expiring 05/11/20 | HSBC Bank USA, N.A. | CNH | 590 | 84,000 | 83,312 | 688 | — | |||||||||||||||
Expiring 05/11/20 | Morgan Stanley & Co. International PLC | CNH | 359 | 50,300 | 50,652 | — | (352 | ) | ||||||||||||||
Expiring 05/14/21 | JPMorgan Chase Bank, N.A. | CNH | 2,567 | 368,530 | 358,921 | 9,609 | — | |||||||||||||||
Colombian Peso, | ||||||||||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | COP | 402,320 | 105,888 | 101,185 | 4,703 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | COP | 361,450 | 92,000 | 90,906 | 1,094 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | COP | 92,238 | 26,700 | 23,198 | 3,502 | — | |||||||||||||||
Expiring 06/17/20 | Goldman Sachs | |||||||||||||||||||||
International | COP | 338,077 | 97,409 | 85,027 | 12,382 | — | ||||||||||||||||
Expiring 06/17/20 | Goldman Sachs International | COP | 291,078 | 71,603 | 73,207 | — | (1,604 | ) | ||||||||||||||
Expiring 06/17/20 | Goldman Sachs International | COP | 290,858 | 75,000 | 73,151 | 1,849 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | COP | 120,312 | 34,437 | 30,259 | 4,178 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | COP | 312,200 | 80,000 | 78,519 | 1,481 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | COP | 235,753 | 58,000 | 59,292 | — | (1,292 | ) | ||||||||||||||
Expiring 06/17/20 | UBS AG | COP | 231,856 | 57,000 | 58,312 | — | (1,312 | ) | ||||||||||||||
Czech Koruna, | ||||||||||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | CZK | 2,858 | 114,000 | 115,666 | — | (1,666 | ) | ||||||||||||||
Egyptian Pound, | ||||||||||||||||||||||
Expiring 05/18/20 | Citibank, N.A. | EGP | 262 | 16,407 | 16,517 | — | (110 | ) | ||||||||||||||
Expiring 05/18/20 | Citibank, N.A. | EGP | 91 | 5,703 | 5,725 | — | (22 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | EGP | 1,309 | 81,072 | 81,531 | — | (459 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | EGP | 1,043 | 64,249 | 64,933 | — | (684 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | EGP | 593 | 36,623 | 36,922 | — | (299 | ) | ||||||||||||||
Euro, | ||||||||||||||||||||||
Expiring 07/17/20 | Barclays Bank PLC | EUR | 440 | 476,971 | 482,934 | — | (5,963 | ) | ||||||||||||||
Expiring 07/17/20 | Barclays Bank PLC | EUR | 292 | 319,657 | 320,647 | — | (990 | ) | ||||||||||||||
Expiring 07/17/20 | Goldman Sachs International | EUR | 36 | 39,200 | 39,234 | — | (34 | ) | ||||||||||||||
Expiring 07/17/20 | JPMorgan Chase Bank, N.A. | EUR | 285 | 310,611 | 312,609 | — | (1,998 | ) | ||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | EUR | 285 | 310,496 | 312,608 | — | (2,112 | ) |
See Notes to Financial Statements.
48 |
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||
Euro (cont’d.), | ||||||||||||||||||||||
Expiring 11/03/20 | Morgan Stanley & Co. International PLC | EUR | 1,912 | $ | 2,162,540 | $ | 2,104,243 | $ | 58,297 | $ | — | |||||||||||
Hungarian Forint, | ||||||||||||||||||||||
Expiring 07/17/20 | JPMorgan Chase Bank, N.A. | HUF | 35,685 | 108,000 | 110,821 | — | (2,821 | ) | ||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | HUF | 28,048 | 85,000 | 87,103 | — | (2,103 | ) | ||||||||||||||
Indian Rupee, | ||||||||||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 8,249 | 106,029 | 108,653 | — | (2,624 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | INR | 7,608 | 97,400 | 100,203 | — | (2,803 | ) | ||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | IDR | 1,568,196 | 98,000 | 102,519 | — | (4,519 | ) | ||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | IDR | 2,193,446 | 134,000 | 143,394 | — | (9,394 | ) | ||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | IDR | 1,514,722 | 88,000 | 99,023 | — | (11,023 | ) | ||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | IDR | 881,814 | 53,000 | 57,648 | — | (4,648 | ) | ||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | IDR | 832,364 | 52,000 | 54,415 | — | (2,415 | ) | ||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | ILS | 525 | 137,000 | 150,795 | — | (13,795 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | ILS | 842 | 240,000 | 241,842 | — | (1,842 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | ILS | 438 | 120,000 | 125,809 | — | (5,809 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | ILS | 128 | 36,520 | 36,870 | — | (350 | ) | ||||||||||||||
Expiring 06/17/20 | Goldman Sachs International | ILS | 457 | 129,480 | 131,167 | — | (1,687 | ) | ||||||||||||||
Japanese Yen, | ||||||||||||||||||||||
Expiring 07/17/20 | JPMorgan Chase Bank, N.A. | JPY | 10,876 | 100,181 | 101,471 | — | (1,290 | ) | ||||||||||||||
Mexican Peso, | ||||||||||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | MXN | 1,408 | 62,000 | 57,952 | 4,048 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | MXN | 1,610 | 67,000 | 66,274 | 726 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | MXN | 2,092 | 98,604 | 86,152 | 12,452 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | MXN | 1,837 | 78,300 | 75,628 | 2,672 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | MXN | 1,239 | 50,000 | 51,024 | — | (1,024 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | MXN | 988 | 40,100 | 40,675 | — | (575 | ) | ||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | MXN | 1,050 | 43,200 | 43,221 | — | (21 | ) | ||||||||||||||
Expiring 06/17/20 | UBS AG | MXN | 2,852 | 134,000 | 117,432 | 16,568 | — |
See Notes to Financial Statements.
PGIM Income Builder Fund | 49 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||
Expiring 06/17/20 | Credit Suisse International | TWD | 5,804 | $ | 195,000 | $ | 196,840 | $ | — | $ | (1,840 | ) | ||||||||||
Expiring 06/17/20 | Goldman Sachs International | TWD | 4,962 | 167,000 | 168,293 | — | (1,293 | ) | ||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | TWD | 8,618 | 291,000 | 292,295 | — | (1,295 | ) | ||||||||||||||
Expiring 06/17/20 | UBS AG | TWD | 7,703 | 260,000 | 261,237 | — | (1,237 | ) | ||||||||||||||
Expiring 06/17/20 | UBS AG | TWD | 4,349 | 146,000 | 147,512 | — | (1,512 | ) | ||||||||||||||
New Zealand Dollar, | ||||||||||||||||||||||
Expiring 07/20/20 | JPMorgan Chase Bank, N.A. | NZD | 411 | 246,599 | 252,109 | — | (5,510 | ) | ||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | PEN | 734 | 213,547 | 216,682 | — | (3,135 | ) | ||||||||||||||
Philippine Peso, | ||||||||||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | PHP | 7,265 | 143,000 | 143,557 | — | (557 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | PHP | 3,586 | 70,204 | 70,866 | — | (662 | ) | ||||||||||||||
Polish Zloty, | ||||||||||||||||||||||
Expiring 07/17/20 | Barclays Bank PLC | PLN | 410 | 98,000 | 98,899 | — | (899 | ) | ||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | PLN | 395 | 94,000 | 95,113 | — | (1,113 | ) | ||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | PLN | 387 | 93,000 | 93,313 | — | (313 | ) | ||||||||||||||
Expiring 07/17/20 | Morgan Stanley & Co. International PLC | PLN | 72 | 17,200 | 17,339 | — | (139 | ) | ||||||||||||||
Expiring 07/17/20 | UBS AG | PLN | 414 | 99,000 | 99,686 | — | (686 | ) | ||||||||||||||
Russian Ruble, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | RUB | 7,982 | 104,750 | 106,399 | — | (1,649 | ) | ||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | RUB | 2,753 | 36,410 | 36,696 | — | (286 | ) | ||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | RUB | 2,311 | 29,790 | 30,807 | — | (1,017 | ) | ||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | RUB | 6,813 | 92,994 | 90,814 | 2,180 | — | |||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | SGD | 193 | 134,000 | 137,233 | — | (3,233 | ) | ||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | SGD | 208 | 150,000 | 147,789 | 2,211 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | SGD | 211 | 150,300 | 149,614 | 686 | — | |||||||||||||||
South African Rand, | ||||||||||||||||||||||
Expiring 06/17/20 | Bank of America, N.A. | ZAR | 1,358 | 74,000 | 72,914 | 1,086 | — | |||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | ZAR | 1,057 | 55,000 | 56,744 | — | (1,744 | ) | ||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | ZAR | 849 | 46,000 | 45,572 | 428 | — | |||||||||||||||
Expiring 06/17/20 | BNP Paribas S.A. | ZAR | 1,079 | 66,000 | 57,922 | 8,078 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | ZAR | 1,262 | 69,000 | 67,742 | 1,258 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | ZAR | 1,298 | 71,438 | 69,700 | 1,738 | — |
See Notes to Financial Statements.
50 |
Forward foreign currency exchange contracts outstanding at April 30, 2020 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||
South African Rand (cont’d.), | ||||||||||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | ZAR | 495 | $ | 31,820 | $ | 26,562 | $ | 5,258 | $ | — | |||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | ZAR | 5,582 | 347,434 | 299,669 | 47,765 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | ZAR | 1,123 | 61,000 | 60,314 | 686 | — | |||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | ZAR | 1,506 | 97,724 | 80,871 | 16,853 | — | |||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | ZAR | 830 | 44,000 | 44,549 | — | (549 | ) | ||||||||||||||
South Korean Won, | ||||||||||||||||||||||
Expiring 06/17/20 | Credit Suisse International | KRW | 826,919 | 699,599 | 681,212 | 18,387 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | KRW | 114,174 | 96,423 | 94,056 | 2,367 | — | |||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | KRW | 155,745 | 126,000 | 128,302 | — | (2,302 | ) | ||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | KRW | 114,464 | 96,423 | 94,295 | 2,128 | — | |||||||||||||||
Expiring 06/17/20 | Morgan Stanley & Co. International PLC | KRW | 113,157 | 95,596 | 93,218 | 2,378 | — | |||||||||||||||
Expiring 06/17/20 | UBS AG | KRW | 114,358 | 96,423 | 94,207 | 2,216 | — | |||||||||||||||
Thai Baht, | ||||||||||||||||||||||
Expiring 06/17/20 | Goldman Sachs International | THB | 4,012 | 128,000 | 123,988 | 4,012 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | THB | 4,403 | 139,925 | 136,090 | 3,835 | — | |||||||||||||||
Expiring 06/17/20 | HSBC Bank USA, N.A. | THB | 3,656 | 115,000 | 112,985 | 2,015 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | THB | 6,085 | 193,000 | 188,077 | 4,923 | — | |||||||||||||||
Turkish Lira, | ||||||||||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | TRY | 829 | 131,000 | 117,186 | 13,814 | — | |||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | TRY | 630 | 100,143 | 88,996 | 11,147 | — | |||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | TRY | 534 | 83,871 | 75,477 | 8,394 | — | |||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | TRY | 488 | 69,928 | 69,012 | 916 | — | |||||||||||||||
Expiring 06/17/20 | Barclays Bank PLC | TRY | 481 | 71,438 | 67,998 | 3,440 | — | |||||||||||||||
Expiring 06/17/20 | Citibank, N.A. | TRY | 434 | 68,829 | 61,278 | 7,551 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | TRY | 510 | 78,000 | 72,123 | 5,877 | — | |||||||||||||||
Expiring 06/17/20 | JPMorgan Chase Bank, N.A. | TRY | 500 | 76,762 | 70,630 | 6,132 | — | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
$ | 18,460,544 | $ | 18,248,497 | 376,938 | (164,891 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
$ | 487,749 | $ | (336,957 | ) | ||||||||||||||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Income Builder Fund | 51 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Cross currency exchange contracts outstanding at April 30, 2020:
Settlement | Type | Notional Amount (000) | In Exchange For (000) | Unrealized Appreciation | Unrealized Depreciation | Counterparty | ||||||||||||||||||||
OTC Cross Currency Exchange Contracts: |
| |||||||||||||||||||||||||
07/17/20 | Buy | EUR | 171 | CZK | 4,623 | $ | 113 | $ | — | Citibank, N.A. | ||||||||||||||||
|
|
|
|
Credit default swap agreements outstanding at April 30, 2020:
Reference Entity/ Obligation | Termination Date | Fixed Rate | Notional Amount (000)#(3) | Value at Trade Date | Value at April 30, 2020 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Centrally Cleared Credit Default Swap Agreement on credit indices—Buy Protection(1): |
| |||||||||||||||||||||||
CDX.NA.HY.34.V1 | 06/20/25 | 5.000%(Q) | 8,290 | $ | 364,463 | $ | 377,349 | $ | 12,886 | |||||||||||||||
|
|
|
|
|
|
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 of the swap 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. |
(4) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements where the Fund is the seller of protection 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 |
See Notes to Financial Statements.
52 |
under the terms of the agreement. |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||
Citigroup Global Markets, Inc. | $1,120,000 | $ — | ||
|
|
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, 2020 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Affiliated Mutual Funds | $ | 68,731,273 | $ | — | $ | — | ||||||
Common Stocks | 83,584,140 | 12,504,989 | 512,990 | |||||||||
Exchange-Traded Funds | 66,638,545 | — | — | |||||||||
Preferred Stocks | 11,746,621 | — | — | |||||||||
Asset-Backed Security | ||||||||||||
Collateralized Loan Obligation | — | 455,956 | — | |||||||||
Bank Loans | — | 794,066 | 282,255 | |||||||||
Convertible Bond | — | 546,535 | — | |||||||||
Corporate Bonds | — | 53,462,926 | — | |||||||||
Sovereign Bonds | — | 40,336,162 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 230,700,579 | $ | 108,100,634 | $ | 795,245 | ||||||
|
|
|
|
|
| |||||||
Other Financial Instruments* | ||||||||||||
Assets | ||||||||||||
Futures Contracts | $ | 161,995 | $ | — | $ | — | ||||||
OTC Forward Foreign Currency Exchange Contracts | — | 487,749 | — | |||||||||
OTC Cross Currency Exchange Contracts | — | 113 | — | |||||||||
Centrally Cleared Credit Default Swap Agreement | — | 12,886 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 161,995 | $ | 500,748 | $ | — | ||||||
|
|
|
|
|
|
See Notes to Financial Statements.
PGIM Income Builder Fund | 53 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Level 1 | Level 2 | Level 3 | ||||||||||
Other Financial Instruments* (continued) | ||||||||||||
Liabilities | ||||||||||||
Futures Contracts | $ | (61,854 | ) | $ | — | $ | — | |||||
OTC Forward Foreign Currency Exchange Contracts | — | (336,957 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total | $ | (61,854 | ) | $ | (336,957 | ) | $ | — | ||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Schedule 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. |
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, 2020 were as follows:
Affiliated Mutual Funds (3.2% represents investments purchased with collateral from securities on loan) | 20.9 | % | ||
Exchange-Traded Funds | 20.3 | |||
Sovereign Bonds | 12.3 | |||
Equity Real Estate Investment Trusts (REITs) | 10.6 | |||
Oil, Gas & Consumable Fuels | 4.0 | |||
Oil & Gas | 3.1 | |||
Semiconductors & Semiconductor Equipment | 2.3 | |||
Chemicals | 1.6 | |||
Pharmaceuticals | 1.5 | |||
Health Care Equipment & Supplies | 1.4 | |||
Electric | 1.4 | |||
Telecommunications | 1.2 | |||
Aerospace & Defense | 1.1 | |||
Banks | 1.1 | |||
Technology Hardware, Storage & Peripherals | 1.1 | |||
Media | 1.1 | |||
Entertainment | 1.0 | |||
Software | 1.0 | |||
Electric Utilities | 1.0 | |||
Home Builders | 0.8 | |||
Insurance | 0.8 | |||
Tobacco | 0.8 | |||
Multi-Utilities | 0.8 | |||
Capital Markets | 0.7 | |||
Retail | 0.7 | |||
Mining | 0.7 | |||
Real Estate Management & Development | 0.6 | |||
Hotels, Restaurants & Leisure | 0.6 |
Wireless Telecommunication Services | 0.6 | % | ||
Independent Power & Renewable Electricity Producers | 0.6 | |||
Household Products | 0.5 | |||
Healthcare-Services | 0.5 | |||
Biotechnology | 0.5 | |||
Diversified Financial Services | 0.5 | |||
Commercial Services | 0.5 | |||
Pipelines | 0.4 | |||
Consumer Finance | 0.3 | |||
Commercial Services & Supplies | 0.3 | |||
Road & Rail | 0.3 | |||
Transportation | 0.3 | |||
Specialty Retail | 0.3 | |||
Food & Staples Retailing | 0.3 | |||
Foods | 0.3 | |||
Engineering & Construction | 0.2 | |||
Building Materials | 0.2 | |||
Auto Parts & Equipment | 0.2 | |||
Real Estate | 0.2 | |||
Auto Manufacturers | 0.2 | |||
Mortgage Real Estate Investment Trusts (REITs) | 0.2 | |||
Diversified Telecommunication Services | 0.2 | |||
Computers | 0.2 | |||
Gas | 0.1 | |||
Collateralized Loan Obligation | 0.1 | |||
Lodging | 0.1 | |||
Real Estate Investment Trusts (REITs) | 0.1 | |||
Advertising | 0.1 | |||
Agriculture | 0.1 |
See Notes to Financial Statements.
54 |
Industry Classification (continued):
Machinery-Diversified | 0.1 | % | ||
Energy-Alternate Sources | 0.1 | |||
Iron/Steel | 0.1 | |||
Miscellaneous Manufacturing | 0.1 | |||
Leisure Time | 0.1 | |||
Distribution/Wholesale | 0.0 | * | ||
Housewares | 0.0 | * | ||
Food Service | 0.0 | * | ||
Household Products/Wares | 0.0 | * |
Apparel | 0.0 | *% | ||
|
| |||
103.4 | ||||
Liabilities in excess of other assets | (3.4 | ) | ||
|
| |||
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, equity contracts risk, foreign exchange contracts risk and interest rate contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. 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, 2020 as presented in the Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Statement of | Fair Value | Statement of | Fair Value | ||||||||
Credit contracts | Due from/to broker—variation margin swaps | $ | 12,886 | * | — | $ | — | |||||
Foreign exchange contracts | Unrealized appreciation on OTC cross currency exchange contracts | 113 | — | — | ||||||||
Foreign exchange contracts | Unrealized appreciation on OTC forward foreign currency exchange contracts | 487,749 | Unrealized depreciation on OTC forward foreign currency exchange contracts | 336,957 | ||||||||
Interest rate contracts | Due from/to broker—variation margin futures | 161,995 | * | Due from/to broker—variation margin futures | 61,854 | * | ||||||
|
|
|
| |||||||||
$ | 662,743 | $ | 398,811 | |||||||||
|
|
|
|
* | 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. |
See Notes to Financial Statements.
PGIM Income Builder Fund | 55 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2020 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 Exchange Contracts | Swaps | |||||||||
Credit contracts | $ | — | $ | — | $ | 560,661 | ||||||
Foreign exchange contracts | — | 32,930 | — | |||||||||
Interest rate contracts | 122,491 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 122,491 | $ | 32,930 | $ | 560,661 | ||||||
|
|
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Rights(1) | Futures | Forward & Cross Currency Exchange Contracts | Swaps | ||||||||||||
Credit contracts | $ | — | $ | — | $ | — | $ | 65,284 | ||||||||
Equity contracts | (4,763 | ) | — | — | — | |||||||||||
Foreign exchange contracts | — | — | 178,637 | — | ||||||||||||
Interest rate contracts | — | 110,687 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (4,763 | ) | $ | 110,687 | $ | 178,637 | $ | 65,284 | |||||||
|
|
|
|
|
|
|
|
(1) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2020, the Fund’s average volume of derivative activities is as follows:
Futures | Futures Contracts— Short Positions(1) | Forward Foreign Currency Exchange Contracts— Purchased(2) | ||||||||
$ | 7,681,818 | $ | 1,942,416 | $ | 15,013,708 |
Forward | Cross Currency Exchange Contracts(3) | Credit Default Swap Agreements— Buy Protection(1) | ||||||||
$ | 18,992,511 | $ | 120,280 | $ | 5,945,667 |
(1) | Notional Amount in USD. |
(2) | Value at Settlement Date. |
(3) | Value at Trade Date. |
See Notes to Financial Statements.
56 |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund invested in OTC derivatives and 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 OTC derivatives and 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 Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/ (Received)(2) | Net Amount | |||||||||
Securities on Loan | $ | 10,095,681 | $ | (10,095,681 | ) | $ | — | |||||
|
|
|
|
|
|
Offsetting of OTC derivative assets and liabilities:
Counterparty | Gross Amounts of Recognized Assets(1) | Gross Amounts of Recognized Liabilities(1) | Net Amounts of Recognized Assets/ (Liabilities) | Collateral Pledged/ (Received)(2) | Net Amount | |||||||||||||||
Bank of America, N.A. | $ | 1,086 | $ | — | $ | 1,086 | $ | — | $ | 1,086 | ||||||||||
Barclays Bank PLC | 53,060 | (65,925 | ) | (12,865 | ) | — | (12,865 | ) | ||||||||||||
BNP Paribas S.A. | 16,766 | (54,933 | ) | (38,167 | ) | — | (38,167 | ) | ||||||||||||
Citibank, N.A. | 24,390 | (58,781 | ) | (34,391 | ) | — | (34,391 | ) | ||||||||||||
Credit Suisse International | 25,570 | (23,785 | ) | 1,785 | — | 1,785 | ||||||||||||||
Goldman Sachs International | 37,622 | (10,746 | ) | 26,876 | — | 26,876 | ||||||||||||||
HSBC Bank USA, N.A. | 40,874 | (33,804 | ) | 7,070 | — | 7,070 | ||||||||||||||
JPMorgan Chase Bank, N.A. | 138,260 | (43,134 | ) | 95,126 | — | 95,126 | ||||||||||||||
Morgan Stanley & Co. International PLC | 129,689 | (35,111 | ) | 94,578 | — | 94,578 | ||||||||||||||
The Toronto-Dominion Bank | — | (5,991 | ) | (5,991 | ) | — | (5,991 | ) | ||||||||||||
UBS AG | 20,545 | (4,747 | ) | 15,798 | — | 15,798 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 487,862 | $ | (336,957 | ) | $ | 150,905 | $ | — | $ | 150,905 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
(2) | 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.
PGIM Income Builder Fund | 57 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2020
Assets | ||||
Investments at value, including securities on loan of $10,095,681: | ||||
Unaffiliated investments (cost $277,820,052) | $ | 261,916,685 | ||
Affiliated investments (cost $82,310,158) | 77,679,773 | |||
Cash | 480 | |||
Foreign currency, at value (cost $190,174) | 191,717 | |||
Receivable for investments sold | 2,419,256 | |||
Dividends and interest receivable | 2,168,363 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 1,120,000 | |||
Receivable for Fund shares sold | 532,466 | |||
Unrealized appreciation on OTC forward foreign currency exchange contracts | 487,749 | |||
Tax reclaim receivable | 16,638 | |||
Unrealized appreciation on OTC cross currency exchange contracts | 113 | |||
Prepaid expenses and other assets | 9,948 | |||
|
| |||
Total Assets | 346,543,188 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 10,603,987 | |||
Payable for Fund shares reacquired | 4,106,109 | |||
Payable for investments purchased | 2,570,879 | |||
Unrealized depreciation on OTC forward foreign currency exchange contracts | 336,957 | |||
Accrued expenses and other liabilities | 266,167 | |||
Distribution fee payable | 91,155 | |||
Dividends payable | 53,802 | |||
Management fee payable | 49,460 | |||
Affiliated transfer agent fee payable | 18,824 | |||
Due to broker—variation margin swaps | 9,218 | |||
Due to broker—variation margin futures | 4,145 | |||
|
| |||
Total Liabilities | 18,110,703 | |||
|
| |||
Net Assets | $ | 328,432,485 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 39,998 | ||
Paid-in capital in excess of par | 393,200,252 | |||
Total distributable earnings (loss) | (64,807,765 | ) | ||
|
| |||
Net assets, April 30, 2020 | $ | 328,432,485 | ||
|
|
See Notes to Financial Statements.
58 |
Class A | ||||
Net asset value and redemption price per share, | $ | 8.23 | ||
Maximum sales charge (4.50% of offering price) | 0.39 | |||
|
| |||
Maximum offering price to public | $ | 8.62 | ||
|
| |||
Class B | ||||
Net asset value, offering price and redemption price per share, | $ | 8.06 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | $ | 8.06 | ||
|
| |||
Class R | ||||
Net asset value, offering price and redemption price per share, | $ | 8.22 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | $ | 8.30 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | $ | 8.29 | ||
|
|
See Notes to Financial Statements.
PGIM Income Builder Fund | 59 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2020
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $62,810 foreign withholding tax) | $ | 4,370,006 | ||
Interest income | 4,191,069 | |||
Affiliated dividend income | 764,444 | |||
Income from securities lending, net (including affiliated income of $16,508) | 21,215 | |||
|
| |||
Total income | 9,346,734 | |||
|
| |||
Expenses | ||||
Management fee | 1,370,528 | |||
Distribution fee(a) | 707,744 | |||
Transfer agent’s fees and expenses (including affiliated expense of $45,440)(a) | 211,115 | |||
Custodian and accounting fees | 149,292 | |||
Shareholders’ reports | 90,948 | |||
Registration fees(a) | 46,288 | |||
Audit fee | 26,104 | |||
Legal fees and expenses | 11,387 | |||
Trustees’ fees | 8,513 | |||
Miscellaneous | 17,703 | |||
|
| |||
Total expenses | 2,639,622 | |||
Less: Fee waiver and/or expense reimbursement(a) | (827,048 | ) | ||
Distribution fee waiver(a) | (39,164 | ) | ||
|
| |||
Net expenses | 1,773,410 | |||
|
| |||
Net investment income (loss) | 7,573,324 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(283,945)) | (21,614,582 | ) | ||
Affiliated net capital gain distributions received | 699,078 | |||
Futures transactions | 122,491 | |||
Forward and cross currency contract transactions | 32,930 | |||
Swap agreement transactions | 560,661 | |||
Foreign currency transactions | (7,476 | ) | ||
|
| |||
(20,206,898 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(6,804,384)) | (43,305,331 | ) | ||
Futures | 110,687 | |||
Forward and cross currency contracts | 178,637 | |||
Swap agreements | 65,284 | |||
Foreign currencies | (767 | ) | ||
|
| |||
(42,951,490 | ) | |||
|
| |||
Net gain (loss) on investment and foreign currency transactions | (63,158,388 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (55,585,064 | ) | |
|
|
See Notes to Financial Statements.
60 |
(a) | Class specific expenses and waivers were as follows: |
Class A | Class B | Class C | Class R | Class Z | Class R6 | |||||||||||||||||||
Distribution fee | 222,978 | 4,586 | 474,177 | 6,003 | — | — | ||||||||||||||||||
Transfer agent’s fees and expenses | 88,233 | 3,794 | 43,694 | 1,182 | 74,143 | 69 | ||||||||||||||||||
Registration fees | 8,056 | 4,267 | 8,682 | 7,638 | 9,830 | 7,815 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (312,740 | ) | (9,382 | ) | (190,359 | ) | (11,150 | ) | (288,353 | ) | (15,064 | ) | ||||||||||||
Distribution fee waiver | (37,163 | ) | — | — | (2,001 | ) | — | — |
See Notes to Financial Statements.
PGIM Income Builder Fund | 61 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2020 | Year Ended October 31, 2019 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 7,573,324 | $ | 14,806,651 | ||||
Net realized gain (loss) on investment and foreign currency transactions | (20,905,976 | ) | 7,936,642 | |||||
Affiliated net capital gain distributions received | 699,078 | — | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (42,951,490 | ) | 17,595,518 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (55,585,064 | ) | 40,338,811 | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class A | (3,124,788 | ) | (6,442,235 | ) | ||||
Class B | (15,880 | ) | (50,955 | ) | ||||
Class C | (1,684,672 | ) | (3,718,035 | ) | ||||
Class R | (31,710 | ) | (71,291 | ) | ||||
Class Z | (3,105,263 | ) | (5,983,556 | ) | ||||
Class R6 | (109,594 | ) | (184,335 | ) | ||||
|
|
|
| |||||
(8,071,907 | ) | (16,450,407 | ) | |||||
|
|
|
| |||||
Tax return of capital distributions | ||||||||
Class A | — | (234,063 | ) | |||||
Class B | — | (1,851 | ) | |||||
Class C | — | (135,086 | ) | |||||
Class R | — | (2,590 | ) | |||||
Class Z | — | (217,398 | ) | |||||
Class R6 | — | (6,697 | ) | |||||
|
|
|
| |||||
— | (597,685 | ) | ||||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 36,811,135 | 73,837,097 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 7,402,087 | 15,652,104 | ||||||
Cost of shares reacquired | (65,042,091 | ) | (103,251,012 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (20,828,869 | ) | (13,761,811 | ) | ||||
|
|
|
| |||||
Total increase (decrease) | (84,485,840 | ) | 9,528,908 | |||||
Net Assets: | ||||||||
Beginning of period | 412,918,325 | 403,389,417 | ||||||
|
|
|
| |||||
End of period | $ | 328,432,485 | $ | 412,918,325 | ||||
|
|
|
|
See Notes to Financial Statements.
62 |
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 management investment company. The Trust currently consists of one fund: PGIM Income Builder Fund (the “Fund”) is a diversified fund for the purposes of the 1940 Act.
The investment objective of the Fund is seek income and long-term capital growth.
1. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 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 and liabilities 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 Trust’s 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”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. 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.
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
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 Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820—Fair Value Measurements and Disclosures.
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Notes to Financial Statements (unaudited) (continued)
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. 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.
Foreign equities traded on foreign securities exchanges are generally 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 up to the time the Fund is valued. 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 stock valuation policies 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.
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 transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
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Bank loans are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Bank loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy. Bank loans valued based on a single broker quote or at the original transaction price in excess of five business days are classified as Level 3 in the fair value hierarchy.
OTC and centrally cleared 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 includes 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 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 derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing 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.
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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Illiquid Securities: Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a Board approved Liquidity Risk Management Program (“LRMP”) that requires, among other things, that the Fund limit its illiquid investments that are assets to no more than 15% of net
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Notes to Financial Statements (unaudited) (continued)
assets. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its subadviser(s) and may incur transaction costs that would not be incurred in the sale of securities that were freely marketable.
Restricted Securities: Securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer are considered restricted as to disposition under federal securities law (“restricted securities”). Such restricted securities are valued pursuant to the valuation procedures noted above. Restricted securities that would otherwise be considered illiquid investments pursuant to the Fund’s LRMP 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. Therefore, these Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act of 1933, may be classified higher than “illiquid” under the LRMP (i.e. “moderately liquid” or “less liquid” investments). However, the liquidity of the Fund’s investments in restricted 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. 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.
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Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment 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) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Forward and Cross 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 enters into forward currency contracts, as defined in the prospectus, 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 forward exchange rates and any unrealized gain (loss) is included in net unrealized appreciation (depreciation) on forward and cross currency contracts. 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 forward and cross currency contract transactions. Risks may arise upon entering into these contracts 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. 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. 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. Since
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Notes to Financial Statements (unaudited) (continued)
futures contracts are exchange-traded, 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.
Bank Loans: The Fund invested in bank loans. Bank loans include fixed and floating rate loans that are privately negotiated between a corporate borrower and one or more financial institutions, including, but not limited to, term loans, revolvers, and other instruments issued in the bank loan market. The Fund acquired interests in loans directly (by way of assignment from the selling institution) or indirectly (by way of the purchase of a participation interest from the selling institution). Under a bank loan assignment, the Fund generally will succeed to all the rights and obligations of an assigning lending institution and becomes a lender under the loan agreement with the relevant borrower in connection with that loan. Under a bank loan participation, the Fund generally will have a contractual relationship only with the lender, not with the relevant borrower. As a result, the Fund generally will have the right to receive payments of principal, interest, and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the relevant borrower. The Fund may not directly benefit from the collateral supporting the debt obligation in which it has purchased the participation. As a result, the Fund will assume the credit risk of both the borrower and the institution selling the participation to the Fund.
Swap Agreements: The Fund entered into certain types of swap agreements detailed in the disclosures below. 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 exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation (depreciation) on swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may 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.
Credit Default Swaps (“CDS”): 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.
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The Fund is subject to credit risk in the normal course of pursuing its investment objectives, and as such, has entered into CDS contracts 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. The Fund’s maximum risk of loss from counterparty credit risk for purchased CDS is the inability of the counterparty to honor the contract up to the notional value due to 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 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 where the Fund is the seller of protection 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. 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 Trust, on behalf of 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 all or a portion 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
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Notes to Financial Statements (unaudited) (continued)
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 Trust, on behalf of the Fund, is a 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, is 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 securities issued 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 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 portfolio 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
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election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
As of April 30, 2020, the Fund has not met conditions under such agreements which give the counterparty the right to call for an early termination.
Forward currency contracts, forward rate agreements, written options, short sales, 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 held rights acquired either through a direct purchase 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. 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.
Payment-In-Kind: The Fund invested 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 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 lends 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. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. 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
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Notes to Financial Statements (unaudited) (continued)
collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively equity REITs): The Fund invested in equity REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from equity REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the equity REITs.
Master Limited Partnerships (MLPs): The Fund invested in MLPs. Distributions received from the Fund’s investment 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, or for certain foreign securities, when the Fund becomes aware of such dividends. 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 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 class specific expenses and waivers, which are allocated as noted below) 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. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Class specific expenses include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
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.
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Tax reform legislation commonly referred to as the Tax Cuts and Jobs Act permits a direct REIT shareholder to claim a 20% “qualified business income” deduction for ordinary REIT dividends. The tax legislation did not expressly permit regulated investment companies (“RICs”) paying dividends attributable to such income to pass through this special treatment to its shareholders. On January 18, 2019, the Internal Revenue Service issued final regulations that permit RICs to pass through “qualified REIT dividends” to their shareholders.
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 between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
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 estimates.
2. Agreements
The Trust, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadvisers’ performance of such services. In addition, under the management agreement, the Manager provides all of the administrative functions necessary for the organization, operation and management of the Fund. The Manager administers the corporate affairs of the Fund and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund’s custodian and the Fund’s transfer agent. The Manager is also responsible for the staffing and management of dedicated groups of legal, marketing, compliance and related personnel necessary for the operation of the Fund. The legal, marketing, compliance and related personnel are also responsible for the management and oversight of the various service providers to the Fund, including, but not limited to, the custodian, transfer agent, and accounting agent.
The Manager has entered into subadvisory agreements with QMA LLC (“QMA”), Jennison Associates LLC, PGIM, Inc., PGIM Limited (on behalf of its PGIM Fixed Income unit), PGIM Real Estate and PGIM Real Estate (UK) Limited, (each a “Subadviser” and together, the “Subadvisers”). 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. The Manager pays for the services of the Subadvisers, 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.
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Notes to Financial Statements (unaudited) (continued)
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.70% of the Fund’s average daily net assets up to $1 billion and 0.65% of such assets in excess of $1 billion. The effective management fee rate before any waivers and/or expense reimbursements was 0.70% for the reporting period ended April 30, 2020.
The Manager has contractually agreed, through February 28, 2021, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 0.95% of average daily net assets for Class A shares, 1.70% of average daily net assets for Class B shares, 1.70% of average daily net assets for Class C shares, 1.20% of average daily net assets for Class R shares, 0.70% of average daily net assets for Class Z shares and 0.70% of average daily net assets for Class R6 shares. This contractual waiver includes acquired fund fees and expenses, and excludes Fund and any acquired fund interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives similar expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for the 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 R, Class Z and Class R6 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 the 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 Z and Class R6 shares of the Fund.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to 0.30%, 1%, 1% and 0.75% of the average daily net assets of the Class A, Class B, Class C and Class R shares, respectively. PIMS has contractually agreed through February 28, 2021 to limit such fees to 0.25% and 0.50% of the average daily net assets of the Class A and Class R shares.
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For the reporting period ended April 30, 2020, PIMS received $151,368 in front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended April 30, 2020, PIMS received $112 and $3,160 in contingent deferred sales charges imposed upon redemptions by certain Class B and Class C shareholders, respectively. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs.
PGIM, Inc., PGIM Limted, Jennison Associates LLC, PGIM Investments, PIMS, and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
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 Trust’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 invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (formerly known as 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. Through the Fund’s investments in the mentioned underlying funds, PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services. In addition to the realized and unrealized gains on investments in the Core Fund and other affiliated mutual funds, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income”and “Income from securities lending, net” respectively.
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 subject to certain conditions, 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. Pursuant to the Rule 17a-7 procedures and consistent with guidance issued by the Securities and Exchange Commission (“SEC”), the Trust’s Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such 17a-7 transactions were effected in accordance with the Fund’s Rule 17a-7 procedures. For the reporting period ended April 30, 2020, no 17a-7 transactions were entered into by the Fund.
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Notes to Financial Statements (unaudited) (continued)
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2020, were $180,030,856 and $191,743,951, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated investments for the reporting period ended April 30, 2020, is presented as follows:
Affiliated mutual funds | Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | ||||||||||||
PGIM Core Ultra Short Bond Fund* | $ | 10,599,251 | $ | 173,000,646 | $ | 178,533,893 | $ | — | ||||||||
PGIM Institutional Money Market Fund* | 17,284,425 | 57,347,660 | 64,003,686 | 12,645 | ||||||||||||
PGIM QMA International Equity Fund (Class R6)* | 3,176,536 | 14,527,167 | — | (3,066,882 | ) | |||||||||||
PGIM QMA Strategic Alpha International Equity ETF* | 10,697,380 | — | — | (1,748,880 | ) | |||||||||||
PGIM Short Duration High Yield Income Fund (Class R6)* | 20,563,438 | 673,975 | 10,875,000 | (991,199 | ) | |||||||||||
PGIM Total Return Bond Fund (Class R6) | 20,792,080 | 9,518,123 | — | (1,010,068 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 83,113,110 | $ | 255,067,571 | $ | 253,412,579 | $ | (6,804,384 | ) | ||||||||
|
|
|
|
|
|
|
|
Affiliated mutual funds | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | Capital Gain Distrib. | |||||||||||||||
PGIM Core Ultra Short Bond Fund* | $ | — | $ | 5,066,004 | 5,066,004 | $ | 90,729 | $ | — | |||||||||||
PGIM Institutional Money Market Fund* | (15,603 | ) | 10,625,441 | 10,627,567 | 16,508 | ** | — | |||||||||||||
PGIM QMA International Equity Fund (Class R6)* | — | 14,636,821 | 2,411,338 | 477,167 | — | |||||||||||||||
PGIM QMA Strategic Alpha International Equity ETF* | — | 8,948,500 | 200,000 | 130,778 | — | |||||||||||||||
PGIM Short Duration High Yield Income Fund (Class R6)* | (268,342 | ) | 9,102,872 | 1,119,664 | 11,685 | — | ||||||||||||||
PGIM Total Return Bond Fund (Class R6) | — | 29,300,135 | 2,054,708 | 54,085 | 699,078 | |||||||||||||||
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| |||||||||||||
$ | (283,945 | ) | $ | 77,679,773 | $ | 780,952 | $ | 699,078 | ||||||||||||
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|
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|
|
* | The Fund did not have any capital gain distributions during the reporting period. |
** | Represents the affiliated amount of securities lending income shown on the Statement of Operations. |
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2020 were as follows:
Tax Basis | $ | 370,424,118 | ||
|
| |||
Gross Unrealized Appreciation | 15,890,866 | |||
Gross Unrealized Depreciation | (46,454,594 | ) | ||
|
| |||
Net Unrealized Depreciation | $ | (30,563,728 | ) | |
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
76 |
For federal income tax purposes, the Fund had a capital loss carryforward as of October 31, 2019 of approximately $13,483,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager 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. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2019 are subject to such review.
6. Capital and Ownership
The Fund offers Class A, Class B, Class C, Class R, Class Z and Class R6 shares. Class A shares are sold with 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 subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. 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 will automatically convert to Class A shares on a monthly basis approximately seven years after purchase. Effective on or about June 26, 2020, all issued and outstanding Class B shares will be automatically converted to Class A shares. Class B shares are closed to new purchases. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately 10 years after purchase. Class R, Class Z and Class R6 shares are not subject to any sales or redemption charges and are available 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 of the Fund at $0.001 par value per share, divided into six classes, designated Class A, Class B, Class C, Class R, Class Z and Class R6.
As of April 30, 2020, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Number of Shares | Percentage of Outstanding Shares | |||||||
Class A | 10,100 | — | %* | |||||
Class B | 61 | — | %* |
PGIM Income Builder Fund | 77 |
Notes to Financial Statements (unaudited) (continued)
* | Amount represents less than 1% of outstanding shares. |
At reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
— | —% | 10 | 81% |
Transactions in shares of beneficial interest were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2020: | ||||||||
Shares sold | 1,161,034 | $ | 10,991,115 | |||||
Shares issued in reinvestment of dividends and distributions | 333,779 | 3,042,265 | ||||||
Shares reacquired | (2,162,322 | ) | (19,150,888 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (667,509 | ) | (5,117,508 | ) | ||||
Shares issued upon conversion from other share class(es) | 231,841 | 2,188,865 | ||||||
Shares reacquired upon conversion into other share class(es) | (103,973 | ) | (989,745 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (539,641 | ) | $ | (3,918,388 | ) | |||
|
|
|
| |||||
Year ended October 31, 2019: | ||||||||
Shares sold | 1,672,862 | $ | 15,764,279 | |||||
Shares issued in reinvestment of dividends and distributions | 690,793 | 6,490,092 | ||||||
Shares reacquired | (3,641,941 | ) | (33,864,753 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (1,278,286 | ) | (11,610,382 | ) | ||||
Shares issued upon conversion from other share class(es) | 945,183 | 9,070,452 | ||||||
Shares reacquired upon conversion into other share class(es) | (363,702 | ) | (3,467,673 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (696,805 | ) | $ | (6,007,603 | ) | |||
|
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|
| |||||
Class B | ||||||||
Six months ended April 30, 2020: | ||||||||
Shares sold | 1,731 | $ | 16,873 | |||||
Shares issued in reinvestment of dividends and distributions | 1,762 | 15,875 | ||||||
Shares reacquired | (14,169 | ) | (133,781 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (10,676 | ) | (101,033 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (34,895 | ) | (313,732 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (45,571 | ) | $ | (414,765 | ) | |||
|
|
|
| |||||
Year ended October 31, 2019: | ||||||||
Shares sold | 3,072 | $ | 29,368 | |||||
Shares issued in reinvestment of dividends and distributions | 5,767 | 52,806 | ||||||
Shares reacquired | (29,198 | ) | (270,915 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (20,359 | ) | (188,741 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (51,415 | ) | (476,949 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (71,774 | ) | $ | (665,690 | ) | |||
|
|
|
|
78 |
Class C | Shares | Amount | ||||||
Six months ended April 30, 2020: | ||||||||
Shares sold | 779,236 | $ | 7,285,882 | |||||
Shares issued in reinvestment of dividends and distributions | 178,282 | 1,590,598 | ||||||
Shares reacquired | (1,376,180 | ) | (12,001,652 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (418,662 | ) | (3,125,172 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (168,330 | ) | (1,505,809 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (586,992 | ) | $ | (4,630,981 | ) | |||
|
|
|
| |||||
Year ended October 31, 2019: | ||||||||
Shares sold | 1,704,279 | $ | 15,708,834 | |||||
Shares issued in reinvestment of dividends and distributions | 396,872 | 3,645,078 | ||||||
Shares reacquired | (2,597,954 | ) | (23,643,831 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (496,803 | ) | (4,289,919 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (1,178,598 | ) | (11,051,858 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,675,401 | ) | $ | (15,341,777 | ) | |||
|
|
|
| |||||
Class R | ||||||||
Six months ended April 30, 2020: | ||||||||
Shares sold | 12,471 | $ | 113,676 | |||||
Shares issued in reinvestment of dividends and distributions | 3,464 | 31,519 | ||||||
Shares reacquired | (24,136 | ) | (235,232 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (8,201 | ) | (90,037 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (1,734 | ) | (14,030 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (9,935 | ) | $ | (104,067 | ) | |||
|
|
|
| |||||
Year ended October 31, 2019: | ||||||||
Shares sold | 32,714 | $ | 309,924 | |||||
Shares issued in reinvestment of dividends and distributions | 7,829 | 73,372 | ||||||
Shares reacquired | (52,589 | ) | (500,289 | ) | ||||
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| |||||
Net increase (decrease) in shares outstanding | (12,046 | ) | $ | (116,993 | ) | |||
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|
|
| |||||
Class Z | ||||||||
Six months ended April 30, 2020: | ||||||||
Shares sold | 1,868,009 | $ | 17,685,756 | |||||
Shares issued in reinvestment of dividends and distributions | 283,794 | 2,612,234 | ||||||
Shares reacquired | (3,793,182 | ) | (32,999,624 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (1,641,379 | ) | (12,701,634 | ) | ||||
Shares issued upon conversion from other share class(es) | 229,148 | 2,152,687 | ||||||
Shares reacquired upon conversion into other share class(es) | (157,559 | ) | (1,523,707 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,569,790 | ) | $ | (12,072,654 | ) | |||
|
|
|
| |||||
Year ended October 31, 2019: | ||||||||
Shares sold | 4,239,459 | $ | 40,355,685 | |||||
Shares issued in reinvestment of dividends and distributions | 548,948 | 5,199,630 | ||||||
Shares reacquired | (4,734,303 | ) | (44,177,541 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 54,104 | 1,377,774 | ||||||
Shares issued upon conversion from other share class(es) | 672,125 | 6,434,135 | ||||||
Shares reacquired upon conversion into other share class(es) | (71,462 | ) | (683,130 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 654,767 | $ | 7,128,779 | |||||
|
|
|
|
PGIM Income Builder Fund | 79 |
Notes to Financial Statements (unaudited) (continued)
Class R6 | Shares | Amount | ||||||
Six months ended April 30, 2020: | ||||||||
Shares sold | 76,097 | $ | 717,833 | |||||
Shares issued in reinvestment of dividends and distributions | 11,944 | 109,596 | ||||||
Shares reacquired | (58,630 | ) | (520,914 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 29,411 | 306,515 | ||||||
Shares issued upon conversion from other share class(es) | 591 | 5,471 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 30,002 | $ | 311,986 | |||||
|
|
|
| |||||
Year ended October 31, 2019: | ||||||||
Shares sold | 176,297 | $ | 1,669,007 | |||||
Shares issued in reinvestment of dividends and distributions | 20,151 | 191,126 | ||||||
Shares reacquired | (83,060 | ) | (793,683 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 113,388 | 1,066,450 | ||||||
Shares issued upon conversion from other share class(es) | 18,454 | 175,023 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 131,842 | $ | 1,241,473 | |||||
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|
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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 table below provides details of the current SCA in effect at the reporting period-end.
SCA | ||
Term of Commitment | 10/3/2019 – 10/1/2020 | |
Total Commitment | $ 1,222,500,000* | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.20% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
* | Effective March 31, 2020, the SCA’s total commitment was increased from $900,000,000 to $1,162,500,000 and subsequently, effective April 7, 2020 was increased to $1,222,500,000. |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager
80 |
to allocate available funding per a Board-approved methodology designed to treat the Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2020.
8. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below:
Bond Obligations Risk: The Fund’s holdings, share price, yield and total return may fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed-income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may not be able to reinvest at the same level and therefore would earn less income.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivative transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Fund. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many OTC derivative instruments will not have liquidity beyond the counterparty to the instrument. OTC derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.
Equity and Equity-Related Securities Risks: The value of a particular security could go down and you could lose money. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. The Fund’s holdings can vary significantly from broad market indexes and the performance of the Fund can deviate from the performance of these indexes. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: The Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. Foreign countries in which the Fund may invest may have markets that are less liquid, less regulated and more volatile than US markets. The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability.
Interest Rate Risk: The value of an investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities.
PGIM Income Builder Fund | 81 |
Notes to Financial Statements (unaudited) (continued)
When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk”. The Fund may face a heightened level of interest rate risk as a result of the U.S. Federal Reserve Board’s policies. The Fund’s investments may lose value if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: The Fund may invest in instruments that trade in lower volumes and are less liquid than other investments. Liquidity risk exists when particular investments made by the Fund are difficult to purchase or sell. Liquidity risk includes the risk that the Fund may make investments that may become less liquid in response to market developments or adverse investor perceptions. Investments that are illiquid or that trade in lower volumes may be more difficult to value. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, the Fund may incur higher transaction costs when executing trade orders of a given size. The reduction in dealer market-making capacity in the fixed-income markets that has occurred in recent years also has the potential to reduce liquidity. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Market and Credit Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of an investment in the Fund will decline.
82 |
Additionally, the Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally.
Risks of Investing in equity REITs: Real estate securities are subject to similar 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 payments 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 equity 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 equity REITs, while mortgage REITs may be affected by the quality of any credit extended. Equity 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 and self-liquidation. Since equity REITs are relatively smaller in size when compared to the broader market, and smaller companies tend to be more volatile than larger companies, they may be more volatile and/or more illiquid than other types of equity securities. Equity REITs are subject to interest rate risks. Equity REITs may incur significant amounts of leverage. The Fund will indirectly bear a portion of the expenses, including management fees, paid by each equity REIT in which it invests, in addition to the expenses of the Fund. Since the Fund concentrates in the real estate industry, its holdings can vary significantly from broad market indexes. As a result, the Fund’s performance can deviate from the performance of such indexes.
9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the
PGIM Income Builder Fund | 83 |
Notes to Financial Statements (unaudited) (continued)
amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Fund’s policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has adopted the aspects related to the removal and modification of certain fair value measurement disclosures under the ASU. The Manager continues to evaluate certain other provisions of the ASU and does not expect a material impact to financial statement disclosures.
84 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months 2020 | Year Ended October 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.69 | $9.12 | $9.62 | $9.36 | $9.39 | $11.90 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.36 | 0.35 | 0.35 | 0.37 | 0.39 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.45 | ) | 0.62 | (0.46 | ) | 0.32 | 0.06 | (0.70 | ) | |||||||||||||||||||
Total from investment operations | (1.27 | ) | 0.98 | (0.11 | ) | 0.67 | 0.43 | (0.31 | ) | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.19 | ) | (0.40 | ) | (0.33 | ) | (0.36 | ) | (0.40 | ) | (0.44 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.01 | ) | (0.06 | ) | (0.05 | ) | (0.06 | ) | - | ||||||||||||||||||
Distributions from net realized gains | - | - | - | - | - | (1.76 | ) | |||||||||||||||||||||
Total dividends and distributions | (0.19 | ) | (0.41 | ) | (0.39 | ) | (0.41 | ) | (0.46 | ) | (2.20 | ) | ||||||||||||||||
Net asset value, end of period | $8.23 | $9.69 | $9.12 | $9.62 | $9.36 | $9.39 | ||||||||||||||||||||||
Total Return(b): | (13.23)% | 11.01% | (1.22)% | 7.34% | 4.76% | (2.59)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $128,682 | $156,683 | $153,762 | $171,047 | $165,090 | $141,432 | ||||||||||||||||||||||
Average net assets (000) | $149,469 | $153,066 | $169,651 | $167,079 | $143,159 | $109,965 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.81% | (e) | 0.85% | 0.85% | 0.85% | 0.83% | 0.78% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.28% | (e) | 1.28% | 1.25% | 1.27% | 1.30% | 1.37% | |||||||||||||||||||||
Net investment income (loss) | 3.96% | (e) | 3.82% | 3.63% | 3.69% | 4.05% | 3.96% | |||||||||||||||||||||
Portfolio turnover rate(f) | 48% | 110% | 114% | 102% | 90% | 93% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | 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. |
(c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Income Builder Fund | 85 |
Financial Highlights (unaudited) (continued)
Class B Shares | ||||||||||||||||||||||||||||
Six Months 2020 | Year Ended October 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.49 | $8.94 | $9.45 | $9.19 | $9.23 | $11.74 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.29 | 0.27 | 0.28 | 0.30 | 0.32 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.42 | ) | 0.60 | (0.46 | ) | 0.33 | 0.05 | (0.70 | ) | |||||||||||||||||||
Total from investment operations | (1.27 | ) | 0.89 | (0.19 | ) | 0.61 | 0.35 | (0.38 | ) | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.16 | ) | (0.33 | ) | (0.27 | ) | (0.31 | ) | (0.34 | ) | (0.37 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.01 | ) | (0.05 | ) | (0.04 | ) | (0.05 | ) | - | ||||||||||||||||||
Distributions from net realized gains | - | - | - | - | - | (1.76 | ) | |||||||||||||||||||||
Total dividends and distributions | (0.16 | ) | (0.34 | ) | (0.32 | ) | (0.35 | ) | (0.39 | ) | (2.13 | ) | ||||||||||||||||
Net asset value, end of period | $8.06 | $9.49 | $8.94 | $9.45 | $9.19 | $9.23 | ||||||||||||||||||||||
Total Return(b): | (13.52)% | 10.20% | (2.08)% | 6.69% | 3.97% | (3.35)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $605 | $1,145 | $1,720 | $2,332 | $2,575 | $3,083 | ||||||||||||||||||||||
Average net assets (000) | $922 | $1,417 | $2,080 | $2,532 | $2,762 | $3,824 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.57% | (e) | 1.60% | 1.60% | 1.60% | 1.58% | 1.51% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 3.62% | (e) | 3.36% | 2.96% | 1.97% | 2.00% | 2.09% | |||||||||||||||||||||
Net investment income (loss) | 3.27% | (e) | 3.12% | 2.88% | 2.95% | 3.34% | 3.24% | |||||||||||||||||||||
Portfolio turnover rate(f) | 48% | 110% | 114% | 102% | 90% | 93% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | 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. |
(c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
86 |
Class C Shares | ||||||||||||||||||||||||||||
Six Months 2020 | Year Ended October 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.49 | $8.94 | $9.44 | $9.18 | $9.23 | $11.74 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.28 | 0.27 | 0.27 | 0.30 | 0.31 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.42 | ) | 0.61 | (0.45 | ) | 0.34 | 0.04 | (0.69 | ) | |||||||||||||||||||
Total from investment operations | (1.27 | ) | 0.89 | (0.18 | ) | 0.61 | 0.34 | (0.38 | ) | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.16 | ) | (0.33 | ) | (0.27 | ) | (0.31 | ) | (0.34 | ) | (0.37 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.01 | ) | (0.05 | ) | (0.04 | ) | (0.05 | ) | - | ||||||||||||||||||
Distributions from net realized gains | - | - | - | - | - | (1.76 | ) | |||||||||||||||||||||
Total dividends and distributions | (0.16 | ) | (0.34 | ) | (0.32 | ) | (0.35 | ) | (0.39 | ) | (2.13 | ) | ||||||||||||||||
Net asset value, end of period | $8.06 | $9.49 | $8.94 | $9.44 | $9.18 | $9.23 | ||||||||||||||||||||||
Total Return(b): | (13.52)% | 10.32% | (1.98)% | 6.69% | 3.86% | (3.35)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $80,757 | $100,653 | $109,767 | $129,397 | $108,543 | $75,622 | ||||||||||||||||||||||
Average net assets (000) | $95,356 | $103,441 | $123,584 | $122,174 | $88,099 | $44,389 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.56% | (e) | 1.60% | 1.60% | 1.60% | 1.58% | 1.55% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.96% | (e) | 1.96% | 1.94% | 1.98% | 2.00% | 2.05% | |||||||||||||||||||||
Net investment income (loss) | 3.21% | (e) | 3.09% | 2.88% | 2.93% | 3.27% | 3.19% | |||||||||||||||||||||
Portfolio turnover rate(f) | 48% | 110% | 114% | 102% | 90% | 93% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | 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. |
(c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Income Builder Fund | 87 |
Financial Highlights (unaudited) (continued)
Class R Shares | ||||||||||||||||||||||||||||
Six Months 2020 | Year Ended October 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.68 | $9.10 | $9.61 | $9.34 | $9.38 | $11.89 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.34 | 0.31 | 0.33 | 0.35 | 0.36 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.45 | ) | 0.63 | (0.45 | ) | 0.33 | 0.05 | (0.69 | ) | |||||||||||||||||||
Total from investment operations | (1.28 | ) | 0.97 | (0.14 | ) | 0.66 | 0.40 | (0.33 | ) | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.18 | ) | (0.38 | ) | (0.31 | ) | (0.34 | ) | (0.38 | ) | (0.42 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.01 | ) | (0.06 | ) | (0.05 | ) | (0.06 | ) | - | ||||||||||||||||||
Distributions from net realized gains | - | - | - | - | - | (1.76 | ) | |||||||||||||||||||||
Total dividends and distributions | (0.18 | ) | (0.39 | ) | (0.37 | ) | (0.39 | ) | (0.44 | ) | (2.18 | ) | ||||||||||||||||
Net asset value, end of period | $8.22 | $9.68 | $9.10 | $9.61 | $9.34 | $9.38 | ||||||||||||||||||||||
Total Return(b): | (13.36)% | 10.88% | (1.58)% | 7.20% | 4.40% | (2.83)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,416 | $1,762 | $1,768 | $610 | $561 | $359 | ||||||||||||||||||||||
Average net assets (000) | $1,610 | $1,787 | $1,196 | $579 | $404 | $427 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.06% | (e) | 1.10% | 1.10% | 1.10% | 1.08% | 1.03% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.70% | (e) | 2.48% | 3.02% | 1.73% | 1.75% | 1.82% | |||||||||||||||||||||
Net investment income (loss) | 3.71% | (e) | 3.57% | 3.25% | 3.41% | 3.76% | 3.69% | |||||||||||||||||||||
Portfolio turnover rate(f) | 48% | 110% | 114% | 102% | 90% | 93% |
(a) | Calculated based on average shares outstanding during the period. |
(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) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
88 |
Class Z Shares | ||||||||||||||||||||||||||||
Six Months 2020 | Year Ended October 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.76 | $9.18 | $9.69 | $9.42 | $9.45 | $11.96 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.20 | 0.39 | 0.37 | 0.38 | 0.40 | 0.41 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.45 | ) | 0.63 | (0.46 | ) | 0.33 | 0.05 | (0.69 | ) | |||||||||||||||||||
Total from investment operations | (1.25 | ) | 1.02 | (0.09 | ) | 0.71 | 0.45 | (0.28 | ) | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.42 | ) | (0.36 | ) | (0.39 | ) | (0.42 | ) | (0.47 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.02 | ) | (0.06 | ) | (0.05 | ) | (0.06 | ) | - | ||||||||||||||||||
Distributions from net realized gains | - | - | - | - | - | (1.76 | ) | |||||||||||||||||||||
Total dividends and distributions | (0.21 | ) | (0.44 | ) | (0.42 | ) | (0.44 | ) | (0.48 | ) | (2.23 | ) | ||||||||||||||||
Net asset value, end of period | $8.30 | $9.76 | $9.18 | $9.69 | $9.42 | $9.45 | ||||||||||||||||||||||
Total Return(b): | (13.12)% | 11.44% | (1.08)% | 7.67% | 4.98% | (2.33)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $112,610 | $147,834 | $133,029 | $142,478 | $84,046 | $74,114 | ||||||||||||||||||||||
Average net assets (000) | $141,421 | $135,434 | $141,463 | $119,795 | $64,595 | $45,082 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.56% | (e) | 0.60% | 0.60% | 0.60% | 0.58% | 0.56% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.97% | (e) | 0.97% | 0.96% | 0.98% | 1.00% | 1.03% | |||||||||||||||||||||
Net investment income (loss) | 4.21% | (e) | 4.06% | 3.87% | 3.90% | 4.35% | 4.15% | |||||||||||||||||||||
Portfolio turnover rate(f) | 48% | 110% | 114% | 102% | 90% | 93% |
(a) | Calculated based on average shares outstanding during the period. |
(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) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Income Builder Fund | 89 |
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | December 30, 2016(a) through October 31, | ||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.76 | $9.18 | $9.69 | $9.44 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.20 | 0.38 | 0.37 | 0.30 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.46 | ) | 0.64 | (0.46 | ) | 0.31 | ||||||||||||||||||
Total from investment operations | (1.26 | ) | 1.02 | (0.09 | ) | 0.61 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.42 | ) | (0.36 | ) | (0.31 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.02 | ) | (0.06 | ) | (0.05 | ) | |||||||||||||||||
Total dividends and distributions | (0.21 | ) | (0.44 | ) | (0.42 | ) | (0.36 | ) | ||||||||||||||||
Net asset value, end of period | $8.29 | $9.76 | $9.18 | $9.69 | ||||||||||||||||||||
Total Return(c): | (13.13)% | 11.33% | (1.07)% | 6.58% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $4,362 | $4,840 | $3,343 | $2,622 | ||||||||||||||||||||
Average net assets (000) | $4,953 | $4,163 | $3,088 | $1,384 | ||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.56% | (f) | 0.60% | 0.60% | 0.60% | (f) | ||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.17% | (f) | 1.05% | 1.32% | 0.90% | (f) | ||||||||||||||||||
Net investment income (loss) | 4.20% | (f) | 4.04% | 3.85% | 3.74% | (f) | ||||||||||||||||||
Portfolio turnover rate(g) | 48% | 110% | 114% | 102% |
(a) | Commencement of offering. |
(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) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
90 |
Fund Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Fund. The Fund’s Board of Trustees (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includes no less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Fund’s Board.
At a meeting of the Board of Trustees on March 3-5, 2020, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any material changes to the LRMP for the period from the inception of the Fund’s program on December 1, 2018 through December 31, 2019 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to be appropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
PGIM Income Builder Fund | 91 |
Supplement dated December 18, 2019
to the Currently Effective Summary Prospectus, Prospectus
and Statement of Additional Information of the Funds Listed Below
This supplement should be read in conjunction with your Summary Prospectus, Statutory Prospectus and Statement of Additional Information, be retained for future reference and is in addition to any existing Fund supplements.
The Board of Directors/Trustees for each Fund listed below has approved the conversion of all issued and outstanding Class B shares of the Funds to Class A shares of the same Fund, effective on or about June 26, 2020.
As a result, effective on or about the close of business on June 26, 2020, all of the issued and outstanding Class B shares of a Fund will be converted into Class A shares of that Fund with the same relative aggregate net asset value as the Class B shares held immediately prior to the conversion. Class A shares currently have lower total expense ratios, and equal or lower distribution fees and shareholder servicing fees payable under the Fund’s 12b-1 plan than Class B shares. No sales load, fee, or other charge will be imposed on the conversion of these shares. Class A shares are not subject to the contingent deferred sales charge (if any) currently charged on the redemption of Class B shares. Please refer to your Fund’s Prospectus for more information regarding Class A shares. The conversion is not expected to be a taxable event for federal income tax purposes and should not result in recognition of gain or loss by converting shareholders.
LR1263
The Prudential Investment Portfolios, Inc.
PGIM Balanced Fund
PGIM Jennison Focused Value Fund
PGIM Jennison Growth Fund
Prudential Investment Portfolios 3
PGIM Jennison Focused Growth Fund
PGIM QMA Large-Cap Value Fund
PGIM Real Assets Fund
Prudential Investment Portfolios 4
PGIM Muni High Income Fund
Prudential Investment Portfolios 5
PGIM Jennison Diversified Growth Fund
Prudential Investment Portfolios 6
PGIM California Muni Income Fund
Prudential Investment Portfolios 7
PGIM Jennison Value Fund
Prudential Investment Portfolios 9
PGIM QMA Large-Cap Core Equity Fund
Prudential Investment Portfolios, Inc. 10
PGIM Jennison Global Equity Income��Fund
PGIM QMA Mid-Cap Value Fund
Prudential Investment Portfolios 12
PGIM Global Real Estate Fund
PGIM US Real Estate Fund
Prudential Investment Portfolios, Inc. 14
PGIM Government Income Fund
Prudential Investment Portfolios, Inc. 15
PGIM High Yield Fund
Prudential Investment Portfolios 16
PGIM Income Builder Fund
Prudential Investment Portfolios, Inc. 17
PGIM Total Return Bond Fund
Prudential Investment Portfolios 18
PGIM Jennison 20/20 Focus Fund
Prudential Global Total Return Fund, Inc.
PGIM Global Total Return Fund
Prudential Jennison Blend Fund, Inc.
PGIM Jennison Blend Fund
Prudential Jennison Mid-Cap Growth Fund, Inc.
PGIM Jennison Mid-Cap Growth Fund
Prudential Jennison Natural Resources Fund, Inc.
PGIM Jennison Natural Resources Fund
Prudential Jennison Small Company Fund, Inc.
PGIM Jennison Small Company Fund
Prudential Government Money Market Fund, Inc.
PGIM Government Money Market Fund
Prudential National Muni Fund, Inc.
PGIM National Muni Fund
Prudential Sector Funds, Inc.
PGIM Jennison Financial Services Fund
PGIM Jennison Health Sciences Fund
PGIM Jennison Utility Fund
Prudential Short-Term Corporate Bond Fund, Inc.
PGIM Short-Term Corporate Bond Fund
Prudential World Fund, Inc.
PGIM QMA International Equity Fund
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street | (800) 225-1852 | pgiminvestments.com |
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Fund’s 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 • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Michael S. Hyland • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Jonathan D. Shain, Assistant Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISERS | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
PGIM Fixed Income
PGIM Limited | 655 Broad Street
Grand Buildings, 1-3 Strand | |||
PGIM Real Estate
PGIM Real Estate (UK) Limited | 7 Giralda Farms Madison, NJ 07940
Grand Buildings, 1-3 Strand | |||
QMA LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | |||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue | ||
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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 the prospectus and summary prospectus by visiting our website at 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 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, PGIM 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 HOLDINGS |
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 as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
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 |
PGIM INCOME BUILDER FUND
SHARE CLASS | A | B | C | R | Z | R6 | ||||||
NASDAQ | PCGAX | PBCFX | PCCFX | PCLRX | PDCZX | PCGQX | ||||||
CUSIP | 74442X108 | 74442X207 | 74442X306 | 74442X405 | 74442X504 | 74442X769 |
MFSP504E2
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 required, as this is not an annual filing.
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 – There have been no material changes to these procedures.
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 – Controls and Procedures - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not applicable.
Item 13 – 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.
(4)Registrant's Independent Public Accountant, attached as Exhibit 99.ACCT.
(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/ Andrew R. French |
| Andrew R. French |
| Secretary |
Date: | June 17, 2020 |
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 17, 2020 |
By: | /s/ Christian J. Kelly |
| Christian J. Kelly |
| Treasurer and Principal Financial and Accounting Officer |
Date: | June 17, 2020 |