UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-09439 | |
Exact name of registrant as specified in charter: | Prudential Investment Portfolios 5 | |
Address of principal executive offices: | 655 Broad Street, 6th Floor | |
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Andrew R. French | |
655 Broad Street, 6th Floor | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 7/31/2024 | |
Date of reporting period: | 1/31/2024 |
Item 1 – Reports to Stockholders
PGIM JENNISON DIVERSIFIED GROWTH FUND
SEMIANNUAL REPORT
JANUARY 31, 2024
To enroll in e-delivery, go to pgim.com/investments/resource/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 January 31, 2024 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2024 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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![]() | Dear Shareholder:
We hope you find the semiannual report for the PGIM Jennison Diversified Growth Fund informative and useful. The report covers performance for the six-month period ended January 31, 2024.
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 provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is the world’s 14th-largest investment manager with more than $1.3 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President and Principal Executive Officer
PGIM Jennison Diversified Growth Fund
March 15, 2024
PGIM Jennison Diversified Growth Fund 3
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 (without sales charges) | Average Annual Total Returns as of 1/31/24 (with sales charges) | |||||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | Since Inception (%) | ||||||
Class A | 12.05 | 30.66 | 15.06 | 12.90 | — | |||||
Class C | 11.49 | 35.80 | 15.21 | 12.56 | — | |||||
Class Z | 12.17 | 38.47 | 16.60 | N/A | 15.54 (9/27/2017) | |||||
Class R6 | 12.17 | 38.47 | 16.60 | N/A | 15.54 (9/27/2017) | |||||
Russell 1000® Growth Index | ||||||||||
9.65 | 34.99 | 18.04 | 15.48 | — |
Average Annual Total Returns as of 1/31/24 Since Inception (%) | ||||
Class Z, Class R6 (9/27/2017) | ||||
Russell 1000® Growth Index | 16.66 |
*Not annualized
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s 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 C | Class Z | Class R6 | |||||
Maximum initial sales charge | 5.50% of the public offering price | 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 | 1.00% on sales made within 12 months of purchase | 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% | None | None |
Benchmark Definition
Russell 1000 Growth Index—The Russell 1000 Growth Index is an unmanaged index which contains those securities in the Russell 1000® Index with an above-average growth orientation. Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios, lower dividend yields and higher forecasted growth rates.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Jennison Diversified Growth Fund 5
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Line of Business | % of Net Assets | ||
Microsoft Corp. | Software | 8.3% | ||
NVIDIA Corp. | Semiconductors & Semiconductor Equipment | 7.3% | ||
Amazon.com, Inc. | Broadline Retail | 6.7% | ||
Alphabet, Inc. (Class A Stock) | Interactive Media & Services | 4.6% | ||
Meta Platforms, Inc. (Class A Stock) | Interactive Media & Services | 4.4% | ||
Apple, Inc. | Technology Hardware, Storage & Peripherals | 4.3% | ||
Advanced Micro Devices, Inc. | Semiconductors & Semiconductor Equipment | 4.2% | ||
Broadcom, Inc. | Semiconductors & Semiconductor Equipment | 3.5% | ||
Adobe, Inc. | Software | 2.6% | ||
Netflix, Inc. | Entertainment | 2.5% |
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 January 31, 2024. 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 and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Jennison Diversified Growth Fund 7
Fees and Expenses (continued)
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 Jennison Diversified Growth Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $1,120.50 | 1.18% | $ 6.29 | |||||
Hypothetical | $1,000.00 | $1,019.20 | 1.18% | $ 5.99 | ||||||
Class C | Actual | $1,000.00 | $1,114.90 | 2.27% | $12.07 | |||||
Hypothetical | $1,000.00 | $1,013.72 | 2.27% | $11.49 | ||||||
Class Z | Actual | $1,000.00 | $1,121.70 | 0.98% | $ 5.23 | |||||
Hypothetical | $1,000.00 | $1,020.21 | 0.98% | $ 4.98 | ||||||
Class R6 | Actual | $1,000.00 | $1,121.70 | 0.98% | $ 5.23 | |||||
Hypothetical | $1,000.00 | $1,020.21 | 0.98% | $ 4.98 | ||||||
*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 184 days in the six-month period ended January 31, 2024, and divided by the 366 days in the Fund’s fiscal year ending July 31, 2024 (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 January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.1% | ||||||||
COMMON STOCKS 98.8% | ||||||||
Aerospace & Defense 0.3% | ||||||||
Boeing Co. (The)* | 3,816 | $ | 805,329 | |||||
Automobiles 1.0% | ||||||||
Tesla, Inc.* | 16,531 | 3,096,091 | ||||||
Beverages 0.5% | ||||||||
Coca-Cola Co. (The) | 13,110 | 779,914 | ||||||
PepsiCo, Inc. | 4,657 | 784,844 | ||||||
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1,564,758 | ||||||||
Biotechnology 3.6% | ||||||||
AbbVie, Inc. | 22,186 | 3,647,378 | ||||||
Amgen, Inc. | 4,567 | 1,435,226 | ||||||
Vertex Pharmaceuticals, Inc.* | 13,744 | 5,956,375 | ||||||
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11,038,979 | ||||||||
Broadline Retail 8.8% | ||||||||
Amazon.com, Inc.* | 133,634 | 20,739,997 | ||||||
MercadoLibre, Inc. (Brazil)* | 3,742 | 6,405,593 | ||||||
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27,145,590 | ||||||||
Capital Markets 1.0% | ||||||||
Blackstone, Inc. | 6,126 | 762,380 | ||||||
KKR & Co., Inc. | 8,984 | 777,835 | ||||||
Moody’s Corp. | 2,001 | 784,472 | ||||||
XP, Inc. (Brazil) (Class A Stock) | 29,819 | 732,951 | ||||||
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3,057,638 | ||||||||
Chemicals 0.5% | ||||||||
Linde PLC | 1,931 | 781,727 | ||||||
PPG Industries, Inc. | 5,481 | 773,040 | ||||||
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1,554,767 | ||||||||
Construction & Engineering 0.2% | ||||||||
Quanta Services, Inc. | 3,974 | 771,155 | ||||||
Consumer Finance 0.3% | ||||||||
American Express Co. | 3,899 | 782,685 |
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 9
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Consumer Staples Distribution & Retail 1.7% | ||||||||
Costco Wholesale Corp. | 6,585 | $ | 4,575,785 | |||||
Performance Food Group Co.* | 10,953 | 796,064 | ||||||
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5,371,849 | ||||||||
Electrical Equipment 0.3% | ||||||||
Vertiv Holdings Co. (Class A Stock) | 14,263 | 803,435 | ||||||
Electronic Equipment, Instruments & Components 0.5% | ||||||||
CDW Corp. | 6,543 | 1,483,429 | ||||||
Entertainment 2.5% | ||||||||
Netflix, Inc.* | 13,588 | 7,665,127 | ||||||
Financial Services 4.6% | ||||||||
FleetCor Technologies, Inc.* | 8,742 | 2,534,568 | ||||||
Mastercard, Inc. (Class A Stock) | 8,965 | 4,027,347 | ||||||
Visa, Inc. (Class A Stock) | 25,689 | 7,019,776 | ||||||
WEX, Inc.* | 3,734 | 763,192 | ||||||
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14,344,883 | ||||||||
Ground Transportation 2.5% | ||||||||
CSX Corp. | 22,002 | 785,471 | ||||||
Uber Technologies, Inc.* | 94,888 | 6,193,340 | ||||||
Union Pacific Corp. | 3,194 | 779,113 | ||||||
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7,757,924 | ||||||||
Health Care Equipment & Supplies 0.2% | ||||||||
GE HealthCare Technologies, Inc. | 10,528 | 772,334 | ||||||
Health Care Providers & Services 0.5% | ||||||||
Molina Healthcare, Inc.* | 2,208 | 787,019 | ||||||
UnitedHealth Group, Inc. | 1,551 | 793,709 | ||||||
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1,580,728 | ||||||||
Hotels, Restaurants & Leisure 3.4% | ||||||||
Airbnb, Inc. (Class A Stock)* | 11,545 | 1,664,096 | ||||||
Darden Restaurants, Inc. | 4,786 | 778,108 | ||||||
Domino’s Pizza, Inc. | 1,807 | 770,180 | ||||||
Hilton Worldwide Holdings, Inc. | 13,596 | 2,596,292 |
See Notes to Financial Statements.
10
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure (cont’d.) | ||||||||
Marriott International, Inc. (Class A Stock) | 16,403 | $ | 3,932,291 | |||||
McDonald’s Corp. | 2,679 | 784,197 | ||||||
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10,525,164 | ||||||||
Household Durables 0.3% | ||||||||
TopBuild Corp.* | 2,343 | 864,872 | ||||||
Household Products 0.3% | ||||||||
Procter & Gamble Co. (The) | 5,014 | 787,900 | ||||||
Insurance 0.5% | ||||||||
Marsh & McLennan Cos., Inc. | 4,100 | 794,744 | ||||||
Progressive Corp. (The) | 4,405 | 785,191 | ||||||
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1,579,935 | ||||||||
Interactive Media & Services 9.0% | ||||||||
Alphabet, Inc. (Class A Stock)* | 100,592 | 14,092,939 | ||||||
Meta Platforms, Inc. (Class A Stock)* | 35,228 | 13,743,852 | ||||||
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27,836,791 | ||||||||
IT Services 1.8% | ||||||||
Cloudflare, Inc. (Class A Stock)* | 9,289 | 734,296 | ||||||
MongoDB, Inc.* | 12,022 | 4,815,051 | ||||||
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5,549,347 | ||||||||
Leisure Products 0.2% | ||||||||
Brunswick Corp. | 9,196 | 741,933 | ||||||
Life Sciences Tools & Services 0.2% | ||||||||
ICON PLC* | 2,924 | 762,784 | ||||||
Machinery 0.8% | ||||||||
Caterpillar, Inc. | 6,052 | 1,817,476 | ||||||
Otis Worldwide Corp. | 8,767 | 775,354 | ||||||
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2,592,830 | ||||||||
Media 0.2% | ||||||||
Trade Desk, Inc. (The) (Class A Stock)* | 10,950 | 749,309 |
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 11
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Oil, Gas & Consumable Fuels 0.2% | ||||||||
Cheniere Energy, Inc. | 4,700 | $ | 770,753 | |||||
Passenger Airlines 0.4% | ||||||||
Delta Air Lines, Inc. | 28,837 | 1,128,680 | ||||||
Personal Care Products 0.6% | ||||||||
L’Oreal SA (France), ADR | 17,839 | 1,705,408 | ||||||
Pharmaceuticals 6.2% | ||||||||
AstraZeneca PLC (United Kingdom), ADR | 41,749 | 2,782,153 | ||||||
Eli Lilly & Co. | 10,147 | 6,551,005 | ||||||
Merck & Co., Inc. | 25,245 | 3,049,091 | ||||||
Novo Nordisk A/S (Denmark), ADR | 57,511 | 6,598,812 | ||||||
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18,981,061 | ||||||||
Semiconductors & Semiconductor Equipment 17.9% | ||||||||
Advanced Micro Devices, Inc.* | 76,984 | 12,909,447 | ||||||
Applied Materials, Inc. | 22,820 | 3,749,326 | ||||||
ARM Holdings PLC, ADR*(a) | 11,362 | 802,953 | ||||||
ASML Holding NV (Netherlands) | 888 | 772,400 | ||||||
Broadcom, Inc. | 9,279 | 10,949,220 | ||||||
Lam Research Corp. | 926 | 764,107 | ||||||
Microchip Technology, Inc. | 31,751 | 2,704,550 | ||||||
NVIDIA Corp. | 36,647 | 22,547,800 | ||||||
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55,199,803 | ||||||||
Software 17.0% | ||||||||
Adobe, Inc.* | 13,216 | 8,164,580 | ||||||
Cadence Design Systems, Inc.* | 2,660 | 767,304 | ||||||
Crowdstrike Holdings, Inc. (Class A Stock)* | 2,604 | 761,670 | ||||||
Fair Isaac Corp.* | 2,227 | 2,669,794 | ||||||
Intuit, Inc. | 2,588 | 1,633,882 | ||||||
Microsoft Corp. | 64,719 | 25,730,980 | ||||||
Oracle Corp. | 28,624 | 3,197,301 | ||||||
Palo Alto Networks, Inc.* | 2,268 | 767,741 | ||||||
Salesforce, Inc.* | 25,205 | 7,084,873 | ||||||
ServiceNow, Inc.* | 995 | 761,573 | ||||||
Synopsys, Inc.* | 1,450 | 773,358 | ||||||
|
| |||||||
52,313,056 |
See Notes to Financial Statements.
12
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Specialized REITs 0.9% | ||||||||
American Tower Corp. | 5,733 | $ | 1,121,661 | |||||
Equinix, Inc. | 941 | 780,814 | ||||||
SBA Communications Corp. | 3,441 | 770,302 | ||||||
|
| |||||||
2,672,777 | ||||||||
Specialty Retail 3.9% | ||||||||
Home Depot, Inc. (The) | 2,201 | 776,865 | ||||||
Lowe’s Cos., Inc. | 16,411 | 3,492,917 | ||||||
O’Reilly Automotive, Inc.* | 4,138 | 4,233,381 | ||||||
Ross Stores, Inc. | 20,372 | 2,857,784 | ||||||
TJX Cos., Inc. (The) | 8,122 | 770,859 | ||||||
|
| |||||||
12,131,806 | ||||||||
Technology Hardware, Storage & Peripherals 4.3% | ||||||||
Apple, Inc. | 71,195 | 13,128,358 | ||||||
Textiles, Apparel & Luxury Goods 1.5% | ||||||||
Lululemon Athletica, Inc.* | 5,263 | 2,388,454 | ||||||
LVMH Moet Hennessy Louis Vuitton SE (France) | 2,609 | 2,170,842 | ||||||
|
| |||||||
4,559,296 | ||||||||
Trading Companies & Distributors 0.2% | ||||||||
Watsco, Inc. | 1,994 | 779,614 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 304,958,178 | |||||||
|
| |||||||
PREFERRED STOCK 0.3% | ||||||||
Automobiles | ||||||||
Dr. Ing. h.c. F. Porsche AG (Germany) (PRFC), 144A | 9,418 | 799,607 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 305,757,785 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 0.6% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
PGIM Core Government Money Market Fund (7-day effective yield 5.560%)(wb) | 738,862 | 738,862 |
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 13
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
Description | Shares | Value | ||||||
AFFILIATED MUTUAL FUNDS (Continued) | ||||||||
PGIM Institutional Money Market Fund (7-day effective yield 5.727%) | 958,754 | $ | 958,466 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 1,697,328 | |||||||
|
| |||||||
TOTAL INVESTMENTS 99.7% | 307,455,113 | |||||||
Other assets in excess of liabilities 0.3% | 1,025,895 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 308,481,008 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
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
PRFC—Preference Shares
REITs—Real Estate Investment Trust
SOFR—Secured Overnight Financing Rate
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $918,710; cash collateral of $954,849 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wb) | Represents an investment in a Fund affiliated with the Manager. |
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.
See Notes to Financial Statements.
14
The following is a summary of the inputs used as of January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 805,329 | $ | — | $— | |||||||
Automobiles | 3,096,091 | — | — | |||||||||
Beverages | 1,564,758 | — | — | |||||||||
Biotechnology | 11,038,979 | — | — | |||||||||
Broadline Retail | 27,145,590 | — | — | |||||||||
Capital Markets | 3,057,638 | — | — | |||||||||
Chemicals | 1,554,767 | — | — | |||||||||
Construction & Engineering | 771,155 | — | — | |||||||||
Consumer Finance | 782,685 | — | — | |||||||||
Consumer Staples Distribution & Retail | 5,371,849 | — | — | |||||||||
Electrical Equipment | 803,435 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 1,483,429 | — | — | |||||||||
Entertainment | 7,665,127 | — | — | |||||||||
Financial Services | 14,344,883 | — | — | |||||||||
Ground Transportation | 7,757,924 | — | — | |||||||||
Health Care Equipment & Supplies | 772,334 | — | — | |||||||||
Health Care Providers & Services | 1,580,728 | — | — | |||||||||
Hotels, Restaurants & Leisure | 10,525,164 | — | — | |||||||||
Household Durables | 864,872 | — | — | |||||||||
Household Products | 787,900 | — | — | |||||||||
Insurance | 1,579,935 | — | — | |||||||||
Interactive Media & Services | 27,836,791 | — | — | |||||||||
IT Services | 5,549,347 | — | — | |||||||||
Leisure Products | 741,933 | — | — | |||||||||
Life Sciences Tools & Services | 762,784 | — | — | |||||||||
Machinery | 2,592,830 | — | — | |||||||||
Media | 749,309 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 770,753 | — | — | |||||||||
Passenger Airlines | 1,128,680 | — | — | |||||||||
Personal Care Products | 1,705,408 | — | — | |||||||||
Pharmaceuticals | 18,981,061 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 55,199,803 | — | — | |||||||||
Software | 52,313,056 | — | — | |||||||||
Specialized REITs | 2,672,777 | — | — | |||||||||
Specialty Retail | 12,131,806 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 13,128,358 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 2,388,454 | 2,170,842 | — | |||||||||
Trading Companies & Distributors | 779,614 | — | — | |||||||||
Preferred Stock | ||||||||||||
Automobiles | — | 799,607 | — |
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 15
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Short-Term Investments | ||||||||||||
Affiliated Mutual Funds | $ | 1,697,328 | $ | — | $— | |||||||
|
|
|
|
|
| |||||||
Total | $ | 304,484,664 | $ | 2,970,449 | $— | |||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of January 31, 2024 were as follows:
Semiconductors & Semiconductor Equipment | 17.9 | % | ||
Software | 17.0 | |||
Interactive Media & Services | 9.0 | |||
Broadline Retail | 8.8 | |||
Pharmaceuticals | 6.2 | |||
Financial Services | 4.6 | |||
Technology Hardware, Storage & Peripherals | 4.3 | |||
Specialty Retail | 3.9 | |||
Biotechnology | 3.6 | |||
Hotels, Restaurants & Leisure | 3.4 | |||
Ground Transportation | 2.5 | |||
Entertainment | 2.5 | |||
IT Services | 1.8 | |||
Consumer Staples Distribution & Retail | 1.7 | |||
Textiles, Apparel & Luxury Goods | 1.5 | |||
Automobiles | 1.3 | |||
Capital Markets | 1.0 | |||
Specialized REITs | 0.9 | |||
Machinery | 0.8 | |||
Personal Care Products | 0.6 | |||
Affiliated Mutual Funds (0.3% represents investments purchased with collateral from securities on loan) | 0.6 | |||
Health Care Providers & Services | 0.5 |
Insurance | 0.5 | % | ||
Beverages | 0.5 | |||
Chemicals | 0.5 | |||
Electronic Equipment, Instruments & Components | 0.5 | |||
Passenger Airlines | 0.4 | |||
Household Durables | 0.3 | |||
Aerospace & Defense | 0.3 | |||
Electrical Equipment | 0.3 | |||
Household Products | 0.3 | |||
Consumer Finance | 0.3 | |||
Trading Companies & Distributors | 0.2 | |||
Health Care Equipment & Supplies | 0.2 | |||
Construction & Engineering | 0.2 | |||
Oil, Gas & Consumable Fuels | 0.2 | |||
Life Sciences Tools & Services | 0.2 | |||
Media | 0.2 | |||
Leisure Products | 0.2 | |||
|
| |||
99.7 | ||||
Other assets in excess of liabilities | 0.3 | |||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
See Notes to Financial Statements.
16
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||
Securities on Loan | $918,710 | $(918,710) | $— |
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 17
Statement of Assets and Liabilities (unaudited)
as of January 31, 2024
Assets | ||||
Investments at value, including securities on loan of $918,710: | ||||
Unaffiliated investments (cost $169,738,615) | $ | 305,757,785 | ||
Affiliated investments (cost $1,697,237) | 1,697,328 | |||
Foreign currency, at value (cost $7) | 7 | |||
Receivable for investments sold | 34,007,903 | |||
Receivable for Fund shares sold | 190,108 | |||
Dividends receivable | 79,230 | |||
Tax reclaim receivable | 25,840 | |||
Prepaid expenses | 1,811 | |||
|
| |||
Total Assets | 341,760,012 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 31,740,824 | |||
Payable to broker for collateral for securities on loan | 954,849 | |||
Payable for Fund shares purchased | 193,985 | |||
Management fee payable | 177,740 | |||
Accrued expenses and other liabilities | 110,534 | |||
Distribution fee payable | 64,698 | |||
Affiliated transfer agent fee payable | 35,996 | |||
Trustees’ fees payable | 378 | |||
|
| |||
Total Liabilities | 33,279,004 | |||
|
| |||
Net Assets | $ | 308,481,008 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 18,270 | ||
Paid-in capital in excess of par | 165,862,829 | |||
Total distributable earnings (loss) | 142,599,909 | |||
|
| |||
Net assets, January 31, 2024 | $ | 308,481,008 | ||
|
|
See Notes to Financial Statements.
18
Class A | ||||||||
Net asset value and redemption price per share, | $ | 17.02 | ||||||
Maximum sales charge (5.50% of offering price) | 0.99 | |||||||
|
| |||||||
Maximum offering price to public | $ | 18.01 | ||||||
|
| |||||||
Class C | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.45 | ||||||
|
| |||||||
Class Z | ||||||||
Net asset value, offering price and redemption price per share, | $ | 17.24 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 17.24 | ||||||
|
|
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 19
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $9,033 foreign withholding tax) | $ | 859,739 | ||
Affiliated dividend income | 81,632 | |||
Affiliated income from securities lending, net | 7,057 | |||
|
| |||
Total income | 948,428 | |||
|
| |||
Expenses | ||||
Management fee | 981,730 | |||
Distribution fee(a) | 424,270 | |||
Transfer agent’s fees and expenses (including affiliated expense of $96,982)(a) | 226,693 | |||
Custodian and accounting fees | 24,832 | |||
Shareholders’ reports | 19,455 | |||
Registration fees(a) | 18,307 | |||
Professional fees | 16,997 | |||
Audit fee | 12,371 | |||
Trustees’ fees | 6,650 | |||
Miscellaneous | 11,243 | |||
|
| |||
Total expenses | 1,742,548 | |||
Less: Fee waiver and/or expense reimbursement(a) | (1,990 | ) | ||
Distribution fee waiver(a) | (66,556 | ) | ||
|
| |||
Net expenses | 1,674,002 | |||
|
| |||
Net investment income (loss) | (725,574 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $5,150) | 20,174,471 | |||
Foreign currency transactions | (2,880 | ) | ||
|
| |||
20,171,591 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(3,129)) | 13,781,822 | |||
Foreign currencies | (806 | ) | ||
|
| |||
13,781,016 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 33,952,607 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 33,227,033 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 399,334 | 24,936 | — | — | ||||||||||||
Transfer agent’s fees and expenses | 213,381 | 7,901 | 5,224 | 187 | ||||||||||||
Registration fees | 7,203 | 4,578 | 3,392 | 3,134 | ||||||||||||
Fee waiver and/or expense reimbursement | — | — | — | (1,990) | ||||||||||||
Distribution fee waiver | (66,556) | — | — | — |
See Notes to Financial Statements.
20
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||||||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net investment income (loss) | $ | (725,574 | ) | $ | (962,204 | ) | ||||||||||||||||||
Net realized gain (loss) on investment and foreign currency transactions | 20,171,591 | 7,554,203 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 13,781,016 | 35,404,239 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 33,227,033 | 41,996,238 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Fund share transactions (Net of share conversions) | ||||||||||||||||||||||||
Net proceeds from shares sold | 7,655,631 | 7,887,564 | ||||||||||||||||||||||
Cost of shares purchased | (15,042,159 | ) | (27,094,210 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (7,386,528 | ) | (19,206,646 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total increase (decrease) | 25,840,505 | 22,789,592 | ||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 282,640,503 | 259,850,911 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
End of period | $ | 308,481,008 | $ | 282,640,503 | ||||||||||||||||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 21
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.19 | $12.87 | $19.58 | $16.92 | $13.39 | $13.79 | ||||||||||||||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | (0.05 | ) | (0.09 | ) | (0.08 | ) | (0.06 | ) | (0.02 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.87 | 2.37 | (2.57 | ) | 5.58 | 4.14 | 0.80 | |||||||||||||||||||||
Total from investment operations | 1.83 | 2.32 | (2.66 | ) | 5.50 | 4.08 | 0.78 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | - | - | - | - | - | (0.01 | ) | |||||||||||||||||||||
Distributions from net realized gains | - | - | (4.05 | ) | (2.84 | ) | (0.55 | ) | (1.17 | ) | ||||||||||||||||||
Total dividends and distributions | - | - | (4.05 | ) | (2.84 | ) | (0.55 | ) | (1.18 | ) | ||||||||||||||||||
Net asset value, end of period | $17.02 | $15.19 | $12.87 | $19.58 | $16.92 | $13.39 | ||||||||||||||||||||||
Total Return(b): | 12.05 | % | 18.03 | % | (18.23 | )% | 35.95 | % | 31.47 | % | 6.93 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $292,074 | $269,722 | $248,177 | $337,246 | $274,044 | $229,202 | ||||||||||||||||||||||
Average net assets (000) | $264,776 | $232,502 | $298,732 | $303,103 | $231,363 | $199,190 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.18 | %(d) | 1.21 | % | 1.15 | % | 1.16 | % | 1.22 | % | 1.23 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.23 | %(d) | 1.26 | % | 1.20 | % | 1.21 | % | 1.27 | % | 1.28 | % | ||||||||||||||||
Net investment income (loss) | (0.50 | )%(d) | (0.38 | )% | (0.56 | )% | (0.48 | )% | (0.40 | )% | (0.18 | )% | ||||||||||||||||
Portfolio turnover rate(e) | 71 | % | 156 | % | 148 | % | 153 | % | 149 | % | 125 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
22
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.27 | $8.80 | $14.73 | $13.46 | $10.84 | $11.49 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.13 | ) | (0.18 | ) | (0.18 | ) | (0.14 | ) | (0.10 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.26 | 1.60 | (1.70 | ) | 4.29 | 3.31 | 0.62 | |||||||||||||||||||||
Total from investment operations | 1.18 | 1.47 | (1.88 | ) | 4.11 | 3.17 | 0.52 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Distributions from net realized gains | - | - | (4.05 | ) | (2.84 | ) | (0.55 | ) | (1.17 | ) | ||||||||||||||||||
Net asset value, end of period | $11.45 | $10.27 | $8.80 | $14.73 | $13.46 | $10.84 | ||||||||||||||||||||||
Total Return(b): | 11.49 | % | 16.70 | % | (19.09 | )% | 34.72 | % | 30.34 | % | 5.95 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $5,380 | $5,009 | $4,492 | $8,266 | $9,768 | $8,698 | ||||||||||||||||||||||
Average net assets (000) | $4,960 | $4,246 | $6,338 | $9,112 | $8,502 | $34,180 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.27 | %(d) | 2.37 | % | 2.16 | % | 2.03 | % | 2.04 | % | 2.01 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.27 | %(d) | 2.37 | % | 2.16 | % | 2.03 | % | 2.04 | % | 2.01 | % | ||||||||||||||||
Net investment income (loss) | (1.59 | )%(d) | (1.54 | )% | (1.57 | )% | (1.34 | )% | (1.22 | )% | (0.91 | )% | ||||||||||||||||
Portfolio turnover rate(e) | 71 | % | 156 | % | 148 | % | 153 | % | 149 | % | 125 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 23
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.37 | $12.99 | $19.71 | $16.98 | $13.41 | $13.81 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.02 | ) | (0.06 | ) | (0.05 | ) | (0.03 | ) | 0.01 | |||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.89 | 2.40 | (2.61 | ) | 5.62 | 4.15 | 0.80 | |||||||||||||||||||||
Total from investment operations | 1.87 | 2.38 | (2.67 | ) | 5.57 | 4.12 | 0.81 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | - | - | - | - | - | (0.04 | ) | |||||||||||||||||||||
Distributions from net realized gains | - | - | (4.05 | ) | (2.84 | ) | (0.55 | ) | (1.17 | ) | ||||||||||||||||||
Total dividends and distributions | - | - | (4.05 | ) | (2.84 | ) | (0.55 | ) | (1.21 | ) | ||||||||||||||||||
Net asset value, end of period | $17.24 | $15.37 | $12.99 | $19.71 | $16.98 | $13.41 | ||||||||||||||||||||||
Total Return(b): | 12.17 | % | 18.32 | % | (18.16 | )% | 36.27 | % | 31.73 | % | 7.20 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $9,519 | $6,901 | $6,305 | $9,295 | $6,313 | $5,270 | ||||||||||||||||||||||
Average net assets (000) | $7,999 | $4,952 | $8,098 | $7,439 | $4,915 | $4,485 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.98 | %(d) | 1.00 | % | 0.96 | % | 0.95 | % | 1.00 | % | 1.00 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.98 | %(d) | 1.08 | % | 0.96 | % | 0.95 | % | 1.14 | % | 1.15 | % | ||||||||||||||||
Net investment income (loss) | (0.31 | )%(d) | (0.17 | )% | (0.36 | )% | (0.28 | )% | (0.18 | )% | 0.05 | % | ||||||||||||||||
Portfolio turnover rate(e) | 71 | % | 156 | % | 148 | % | 153 | % | 149 | % | 125 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
24
Class R6 Shares | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.37 | $12.99 | $19.70 | $16.98 | $13.41 | $13.81 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.02 | ) | (0.05 | ) | (0.08 | ) | (0.03 | ) | (0.01 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.89 | 2.40 | (2.61 | ) | 5.64 | 4.15 | 0.82 | |||||||||||||||||||||
Total from investment operations | 1.87 | 2.38 | (2.66 | ) | 5.56 | 4.12 | 0.81 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | - | - | - | - | - | (0.04 | ) | |||||||||||||||||||||
Distributions from net realized gains | - | - | (4.05 | ) | (2.84 | ) | (0.55 | ) | (1.17 | ) | ||||||||||||||||||
Total dividends and distributions | - | - | (4.05 | ) | (2.84 | ) | (0.55 | ) | (1.21 | ) | ||||||||||||||||||
Net asset value, end of period | $17.24 | $15.37 | $12.99 | $19.70 | $16.98 | $13.41 | ||||||||||||||||||||||
Total Return(b): | 12.17 | % | 18.32 | % | (18.12 | )% | 36.19 | % | 31.73 | % | 7.20 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,508 | $1,008 | $876 | $368 | $78 | $54 | ||||||||||||||||||||||
Average net assets (000) | $1,235 | $722 | $664 | $75 | $61 | $17 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.98 | %(d) | 1.00 | % | 0.96 | % | 0.95 | % | 1.00 | % | 1.00 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.30 | %(d) | 1.68 | % | 1.81 | % | 11.34 | % | 23.28 | % | 77.09 | % | ||||||||||||||||
Net investment income (loss) | (0.32 | )%(d) | (0.19 | )% | (0.34 | )% | (0.40 | )% | (0.19 | )% | (0.10 | )% | ||||||||||||||||
Portfolio turnover rate(e) | 71 | % | 156 | % | 148 | % | 153 | % | 149 | % | 125 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Diversified Growth Fund 25
Notes to Financial Statements (unaudited)
1. | Organization |
Prudential Investment Portfolios 5 (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Delaware Statutory Trust. These financial statements relate only to the PGIM Jennison Diversified Growth Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is long-term capital appreciation.
2. | 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 is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). 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 as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Trustees (the “Board”) has approved the Fund’s valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Fund investments. Pursuant to the Board’s oversight, the Valuation Designee has established a Valuation Committee to perform the duties and responsibilities as Valuation Designee under Rule 2a-5. 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. Fair value is the estimated 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.
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
26
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 Measurement.
Common or preferred stocks, exchange-traded funds (“ETFs”) and derivative instruments, if applicable, 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 a 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.
Investments in open-end funds (other than ETFs) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on policies and procedures 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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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; and any available analyst media or other reports or information deemed reliable by the Valuation Designee 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.
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 exchange rate as of the valuation date;
PGIM Jennison Diversified Growth Fund 27
Notes to Financial Statements (unaudited) (continued)
(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 unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
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.
Master Netting Arrangements: The RIC, 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 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.
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 the securities on loan on the last business day of the reporting period, the
28
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. The remaining open loans of the securities lending transactions are considered overnight and continuous. 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, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): The Fund invested in REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
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. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts. 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. Such class specific expenses and waivers 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
PGIM Jennison Diversified Growth Fund 29
Notes to Financial Statements (unaudited) (continued)
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.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, 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. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |||
Net Investment Income | Annually | |||
Short-Term Capital Gains | Annually | |||
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
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.
3. | Agreements |
The RIC, on behalf of the Fund, has a management agreement with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of the subadviser’s performance of such services, and for rendering administrative services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended January 31, 2024, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |||
0.70% on first $500 million of average daily net assets; | 0.70% | |||
0.65% on next $500 million of average daily net assets; | ||||
0.60% over $1 billion of average daily net assets |
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The Manager has contractually agreed, through November 30, 2024, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and 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 such 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 for the purpose of preventing the expenses from exceeding a certain expense ratio limit 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 that fiscal year. The expense limitations attributable to each class are as follows:
Class | Expense Limitations | |||
A | — | % | ||
C | — | |||
Z | 1.00 | |||
R6 | 1.00 |
The RIC, 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 C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through November 30, 2024 to reduce such fees of certain classes based on the average daily net assets. The distribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rates, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | ||
A | 0.30% | 0.25% | ||
C | 1.00 | 1.00 | ||
Z | N/A | N/A | ||
R6 | N/A | N/A |
For the reporting period ended January 31, 2024, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid
PGIM Jennison Diversified Growth Fund 31
Notes to Financial Statements (unaudited) (continued)
such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||||||||||||||||||||||
A | $ | 55,170 | $ | — | ||||||||||||||||||||
C | — | 45 |
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. | Other Transactions with Affiliates |
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent and shareholder servicing 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 Government Money Market Fund (the “Core Government Fund”), a series of the Prudential Government Money Market Fund, Inc., and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), a series of Prudential Investment Portfolios 2, each registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Government Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Government Fund and the Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Affiliated 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/trustees, and/or common officers. For the reporting period ended January 31, 2024, no Rule 17a-7 transactions were entered into by the Fund.
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5. | 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 January 31, 2024, were as follows:
Cost of Purchases | Proceeds from Sales | |
$197,712,630 | $204,258,573 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended January 31, 2024, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||
PGIM Core Government Money Market Fund (7-day effective yield 5.560%)(1)(wb) |
| |||||||||||||||||||||
$1,517,759 | $10,012,683 | $10,791,580 | $ — | $ — | $ 738,862 | 738,862 | $81,632 | |||||||||||||||
PGIM Institutional Money Market Fund (7-day effective yield 5.727%)(1)(b)(wb) |
| |||||||||||||||||||||
6,997,901 | 37,534,998 | 43,576,454 | (3,129) | 5,150 | 958,466 | 958,754 | 7,057(2) | |||||||||||||||
$8,515,660 | $47,547,681 | $54,368,034 | $(3,129) | $5,150 | $1,697,328 | $88,689 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wb) | Represents an investment in a Fund affiliated with the Manager. |
6. | Tax Information |
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of January 31, 2024 were as follows:
Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation | |||
$172,598,583 | $137,044,984 | $(2,188,454) | $134,856,530 |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Fund had an approximated capital loss carryforward as of July 31, 2023 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.
Capital Loss Carryforward | Capital Loss Carryforward Utilized | |
$10,990,000 | $— |
PGIM Jennison Diversified Growth Fund 33
Notes to Financial Statements (unaudited) (continued)
The Fund elected to treat the below approximated losses as having been incurred in the following fiscal year (July 31, 2024).
Qualified Late-Year Losses | Post-October Capital Losses | |
$712,000 | $— |
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 July 31, 2023 are subject to such review.
7. | Capital and Ownership |
The Fund offers Class A, Class C, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a 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 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 eight years (ten years prior to January 22, 2021) after purchase. 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, below.
The RIC has authorized an unlimited number of shares of beneficial interest of the Fund at $0.001 par value per share, currently divided into four classes, designated Class A, Class C, Class Z and Class R6.
As of January 31, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||||
A | 25,512 | 0.1% | ||||
R6 | 1,451 | 1.7 |
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At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||||
Affiliated | — | —% | ||||
Unaffiliated | 4 | 26.8 |
Transactions in shares of beneficial interest were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 285,853 | $ | 4,395,331 | |||||
Shares purchased | (866,345 | ) | (13,127,901 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (580,492 | ) | (8,732,570 | ) | ||||
Shares issued upon conversion from other share class(es) | 18,553 | 294,117 | ||||||
Shares purchased upon conversion into other share class(es) | (38,673 | ) | (575,684 | ) | ||||
Net increase (decrease) in shares outstanding | (600,612 | ) | $ | (9,014,137 | ) | |||
Year ended July 31, 2023: | ||||||||
Shares sold | 396,908 | $ | 4,982,325 | |||||
Shares purchased | (1,895,155 | ) | (23,516,008 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (1,498,247 | ) | (18,533,683 | ) | ||||
Shares issued upon conversion from other share class(es) | 27,773 | 344,107 | ||||||
Shares purchased upon conversion into other share class(es) | (57,515 | ) | (730,440 | ) | ||||
Net increase (decrease) in shares outstanding | (1,527,989 | ) | $ | (18,920,016 | ) | |||
Class C | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 51,687 | $ | 535,695 | |||||
Shares purchased | (40,889 | ) | (428,994 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 10,798 | 106,701 | ||||||
Shares purchased upon conversion into other share class(es) | (28,569 | ) | (305,138 | ) | ||||
Net increase (decrease) in shares outstanding | (17,771 | ) | $ | (198,437 | ) | |||
Year ended July 31, 2023: | ||||||||
Shares sold | 108,747 | $ | 923,838 | |||||
Shares purchased | (88,917 | ) | (728,733 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 19,830 | 195,105 | ||||||
Shares purchased upon conversion into other share class(es) | (42,461 | ) | (357,683 | ) | ||||
Net increase (decrease) in shares outstanding | (22,631 | ) | $ | (162,578 | ) |
PGIM Jennison Diversified Growth Fund 35
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||
Class Z | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 144,012 | $ | 2,176,965 | |||||
Shares purchased | (72,707 | ) | (1,159,392 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 71,305 | 1,017,573 | ||||||
Shares issued upon conversion from other share class(es) | 34,229 | 512,029 | ||||||
Shares purchased upon conversion into other share class(es) | (2,491 | ) | (37,059 | ) | ||||
Net increase (decrease) in shares outstanding | 103,043 | $ | 1,492,543 | |||||
Year ended July 31, 2023: | ||||||||
Shares sold | 110,011 | $ | 1,622,952 | |||||
Shares purchased | (195,656 | ) | (2,377,350 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (85,645 | ) | (754,398 | ) | ||||
Shares issued upon conversion from other share class(es) | 52,204 | 665,474 | ||||||
Shares purchased upon conversion into other share class(es) | (2,783 | ) | (34,283 | ) | ||||
Net increase (decrease) in shares outstanding | (36,224 | ) | $ | (123,207 | ) | |||
Class R6 | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 35,966 | $ | 547,640 | |||||
Shares purchased | (21,243 | ) | (325,872 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 14,723 | 221,768 | ||||||
Shares issued upon conversion from other share class(es) | 7,141 | 111,735 | ||||||
Net increase (decrease) in shares outstanding | 21,864 | $ | 333,503 | |||||
Year ended July 31, 2023: | ||||||||
Shares sold | 27,120 | $ | 358,449 | |||||
Shares purchased | (37,513 | ) | (472,119 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (10,393 | ) | (113,670 | ) | ||||
Shares issued upon conversion from other share class(es) | 8,578 | 112,825 | ||||||
Net increase (decrease) in shares outstanding | (1,815 | ) | $ | (845 | ) |
8. | Borrowings |
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating 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
36
funding for capital share redemptions. The table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
Current SCA | Prior SCA | |||
Term of Commitment | 9/29/2023 - 9/26/2024 | 9/30/2022 – 9/28/2023 | ||
Total Commitment | $ 1,200,000,000 | $ 1,200,000,000 | ||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||
Annualized Interest Rate on Borrowings | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent |
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 to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended January 31, 2024.
9. | Risks of Investing in the Fund |
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth, may at times result in periods of unusually high volatility in a market or a segment of a market, which could negatively impact performance. Reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide. In addition, it remains uncertain that governmental entities will intervene in response to market disturbances, and the effect of any such future intervention cannot be predicted.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. 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. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
PGIM Jennison Diversified Growth Fund 37
Notes to Financial Statements (unaudited) (continued)
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
Growth Style Risk: The Fund’s growth style may subject the Fund to above-average fluctuations as a result of seeking higher than average capital growth. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Since the Fund follows a growth investment style, there is the risk that the growth investment style may be out of favor for long periods of time. At times when the style is out of favor, the Fund may underperform the market in general, its benchmark and other mutual funds.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the Fund’s prospectus expense table for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Large Capitalization Company Risk: Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the Fund’s value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
38
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.
Management Risk: Actively managed funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but the subadviser’s judgments about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements may be incorrect. Additionally, the investments selected for the Fund may underperform the markets in general, the Fund’s benchmark and other funds with similar investment objectives.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Market 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 your investment in the Fund will decline.
PGIM Jennison Diversified Growth Fund 39
Notes to Financial Statements (unaudited) (continued)
Portfolio Turnover Risk: The length of time the Fund has held a particular security is not generally a consideration in investment decisions. Under certain market conditions, the Fund’s turnover rate may be higher than that of other mutual funds. Portfolio turnover generally involves some expense to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestment in other securities. These transactions may result in realization of taxable capital gains. The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund’s investment performance.
10. | Recent Regulatory Developments |
Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments (the “Rule”). Other information, including financial statements, will no longer appear in the funds’ streamlined shareholder reports but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The Rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the Rule and its impact to the Fund.
40
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street | (800) 225-1852 | pgim.com/investments | ||
Newark, NJ 07102 |
PROXY VOTING
The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. 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 ● Stuart S. Parker ● Brian K. Reid ● Grace C. Torres |
OFFICERS
Stuart S. Parker, President and Principal Executive Officer ● Scott E. Benjamin, Vice President ● Christian J. Kelly, Chief Financial Officer ● Claudia DiGiacomo, Chief Legal Officer ● Andrew Donohue, Chief Compliance Officer ● Russ Shupak, Treasurer and Principal Accounting Officer ● Kelly Florio, Anti-Money Laundering Compliance Officer ● Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ● Patrick E. McGuinness, Assistant Secretary ● Debra Rubano, Assistant Secretary ● George Hoyt, Assistant Secretary ● Devan Goolsby, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer ● Robert W. McCormack, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 534432 Pittsburgh, PA 15253 | ||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at pgim.com/investments 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 pgim.com/investments/resource/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 Jennison Diversified Growth Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at 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 on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and the Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY
|
MAY LOSE VALUE | ARE NOT ADEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE
|
PGIM JENNISON DIVERSIFIED GROWTH FUND
SHARE CLASS | A | C | Z | R6 | ||||||||
NASDAQ | TBDAX | TBDCX | TBDZX | TBDQX | ||||||||
CUSIP | 74440V104 | 74440V302 | 74440V690 | 74440V716 |
MF503E2
PGIM JENNISON RISING DIVIDEND FUND
SEMIANNUAL REPORT
JANUARY 31, 2024
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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4 | ||||
7 | ||||
9 |
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 January 31, 2024 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2024 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, 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 pgim.com/investments |
![]() | Dear Shareholder:
We hope you find the semiannual report for the PGIM Jennison Rising Dividend Fund informative and useful. The report covers performance for the six-month period ended January 31, 2024.
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 provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is the world’s 14th-largest investment manager with more than $1.3 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President and Principal Executive Officer
PGIM Jennison Rising Dividend Fund
March 15, 2024
PGIM Jennison Rising Dividend Fund | 3 |
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225 1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class A | 6.66 | 3.87 | 10.21 | 8.47 (3/5/2014) | ||||
Class C | 6.16 | 8.00 | 10.63 | 8.29 (3/5/2014) | ||||
Class Z | 6.74 | 10.11 | 11.71 | 9.36 (3/5/2014) | ||||
Class R6 | 6.75 | 10.17 | 11.77 | 9.86 (9/27/2017) | ||||
S&P 500 Index | ||||||||
6.43 | 20.82 | 14.30 | — |
Average Annual Total Returns as of 1/31/24 Since Inception (%) | ||||
Class A, Class C, Class Z (3/5/2014) | Class R6 (9/27/2017) | |||
S&P 500 Index | 12.22 | 12.83 |
*Not annualized
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
4 | Visit our website at pgim.com/investments |
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 C | Class Z | Class R6 | |||||
Maximum initial sales charge | 5.50% of the public offering price | 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 | 1.00% on sales made within 12 months of purchase | 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% | None | None |
Benchmark Definition
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 large company stocks in the United States have performed.
*The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Jennison Rising Dividend Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Line of Business | % of Net Assets | ||
Eli Lilly & Co. | Pharmaceuticals | 4.6% | ||
Lam Research Corp. | Semiconductors & Semiconductor Equipment | 3.8% | ||
AbbVie, Inc. | Biotechnology | 3.5% | ||
Parker-Hannifin Corp. | Machinery | 3.3% | ||
Apple, Inc. | Technology Hardware, Storage & Peripherals | 3.2% | ||
Eaton Corp. PLC | Electrical Equipment | 3.1% | ||
Constellation Energy Corp. | Electric Utilities | 3.0% | ||
ASML Holding NV (Netherlands) | Semiconductors & Semiconductor Equipment | 3.0% | ||
AstraZeneca PLC (United Kingdom), ADR | Pharmaceuticals | 2.9% | ||
JPMorgan Chase & Co. | Banks | 2.9% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
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 January 31, 2024. 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 and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Jennison Rising Dividend Fund | 7 |
Fees and Expenses (continued)
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 Jennison Rising Dividend Fund | Beginning Account Value | Ending Account Value | Annualized the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $1,066.60 | 1.32% | $ 6.86 | |||||
Hypothetical | $1,000.00 | $1,018.50 | 1.32% | $ 6.70 | ||||||
Class C | Actual | $1,000.00 | $1,061.60 | 2.06% | $10.68 | |||||
Hypothetical | $1,000.00 | $1,014.78 | 2.06% | $10.43 | ||||||
Class Z | Actual | $1,000.00 | $1,067.40 | 1.09% | $ 5.66 | |||||
Hypothetical | $1,000.00 | $1,019.66 | 1.09% | $ 5.53 | ||||||
Class R6 | Actual | $1,000.00 | $1,067.50 | 1.08% | $ 5.61 | |||||
Hypothetical | $1,000.00 | $1,019.71 | 1.08% | $ 5.48 |
*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 184 days in the six-month period ended January 31, 2024, and divided by the 366 days in the Fund’s fiscal year ending July 31, 2024 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 98.3% | ||||||||
COMMON STOCKS | ||||||||
Aerospace & Defense 2.3% | ||||||||
Airbus SE (France), ADR | 57,368 | $ | 2,277,510 | |||||
Lockheed Martin Corp. | 1,110 | 476,645 | ||||||
|
| |||||||
2,754,155 | ||||||||
Banks 5.9% | ||||||||
Bank of America Corp. | 36,982 | 1,257,758 | ||||||
Citigroup, Inc. | 15,267 | 857,547 | ||||||
JPMorgan Chase & Co. | 19,793 | 3,451,107 | ||||||
PNC Financial Services Group, Inc. (The) | 10,160 | 1,536,294 | ||||||
|
| |||||||
7,102,706 | ||||||||
Beverages 0.7% | ||||||||
PepsiCo, Inc. | 4,949 | 834,055 | ||||||
Biotechnology 3.5% | ||||||||
AbbVie, Inc. | 25,341 | 4,166,060 | ||||||
Building Products 0.5% | ||||||||
Johnson Controls International PLC | 10,885 | 573,531 | ||||||
Capital Markets 3.8% | ||||||||
Goldman Sachs Group, Inc. (The) | 4,122 | 1,582,889 | ||||||
Moody’s Corp. | 7,534 | 2,953,630 | ||||||
|
| |||||||
4,536,519 | ||||||||
Chemicals 2.6% | ||||||||
Linde PLC | 7,636 | 3,091,282 | ||||||
Communications Equipment 2.2% | ||||||||
Cisco Systems, Inc. | 53,058 | 2,662,450 | ||||||
Consumer Staples Distribution & Retail 1.7% | ||||||||
Walmart, Inc. | 12,638 | 2,088,429 | ||||||
Diversified Consumer Services 1.4% | ||||||||
Service Corp. International | 25,131 | 1,686,793 |
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Telecommunication Services 3.0% | ||||||||
AT&T, Inc. | 186,019 | $ | 3,290,676 | |||||
Verizon Communications, Inc. | 8,700 | 368,445 | ||||||
|
| |||||||
3,659,121 | ||||||||
Electric Utilities 3.0% | ||||||||
Constellation Energy Corp. | 29,365 | 3,582,530 | ||||||
Electrical Equipment 3.1% | ||||||||
Eaton Corp. PLC | 15,371 | 3,782,496 | ||||||
Financial Services 2.6% | ||||||||
Mastercard, Inc. (Class A Stock) | 7,087 | 3,183,693 | ||||||
Food Products 2.2% | ||||||||
Hershey Co. (The) | 4,356 | 843,060 | ||||||
Lamb Weston Holdings, Inc. | 17,618 | 1,804,788 | ||||||
|
| |||||||
2,647,848 | ||||||||
Ground Transportation 2.6% | ||||||||
TFI International, Inc. (Canada) | 14,348 | 1,886,332 | ||||||
Union Pacific Corp. | 4,943 | 1,205,746 | ||||||
|
| |||||||
3,092,078 | ||||||||
Health Care Equipment & Supplies 0.6% | ||||||||
Abbott Laboratories | 6,666 | 754,258 | ||||||
Health Care Providers & Services 2.1% | ||||||||
UnitedHealth Group, Inc. | 4,931 | 2,523,390 | ||||||
Hotels, Restaurants & Leisure 4.4% | ||||||||
Marriott International, Inc. (Class A Stock) | 9,067 | 2,173,632 | ||||||
McDonald’s Corp. | 10,658 | 3,119,810 | ||||||
|
| |||||||
5,293,442 | ||||||||
Independent Power & Renewable Electricity Producers 0.5% | ||||||||
Vistra Corp. | 16,049 | 658,490 | ||||||
Industrial Conglomerates 2.2% | ||||||||
General Electric Co. | 20,281 | 2,685,610 |
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insurance 3.3% | ||||||||
Chubb Ltd. | 7,155 | $ | 1,752,975 | |||||
Marsh & McLennan Cos., Inc. | 11,227 | 2,176,242 | ||||||
|
| |||||||
3,929,217 | ||||||||
IT Services 2.2% | ||||||||
International Business Machines Corp. | 14,131 | 2,595,299 | ||||||
Machinery 4.1% | ||||||||
Caterpillar, Inc. | 3,297 | 990,122 | ||||||
Parker-Hannifin Corp. | 8,503 | 3,949,644 | ||||||
|
| |||||||
4,939,766 | ||||||||
Multi-Utilities 3.8% | ||||||||
CenterPoint Energy, Inc. | 86,611 | 2,419,912 | ||||||
NiSource, Inc. | 80,656 | 2,094,636 | ||||||
|
| |||||||
4,514,548 | ||||||||
Office REITs 1.2% | ||||||||
Alexandria Real Estate Equities, Inc. | 11,546 | 1,395,911 | ||||||
Oil, Gas & Consumable Fuels 4.1% | ||||||||
Cheniere Energy, Inc. | 4,017 | 658,748 | ||||||
Total Energies SE (France), ADR(a) | 34,701 | 2,261,811 | ||||||
Valero Energy Corp. | 14,349 | 1,993,076 | ||||||
|
| |||||||
4,913,635 | ||||||||
Pharmaceuticals 7.9% | ||||||||
AstraZeneca PLC (United Kingdom), ADR | 52,116 | 3,473,010 | ||||||
Bristol-Myers Squibb Co. | 11,442 | 559,171 | ||||||
Eli Lilly & Co. | 8,499 | 5,487,039 | ||||||
|
| |||||||
9,519,220 | ||||||||
Residential REITs 1.0% | ||||||||
AvalonBay Communities, Inc. | 6,944 | 1,243,045 | ||||||
Semiconductors & Semiconductor Equipment 10.9% | ||||||||
ASML Holding NV (Netherlands) | 4,098 | 3,564,522 | ||||||
Intel Corp. | 69,677 | 3,001,685 |
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Semiconductors & Semiconductor Equipment (cont’d.) | ||||||||
Lam Research Corp. | 5,510 | $ | 4,546,687 | |||||
Universal Display Corp. | 11,638 | 1,975,783 | ||||||
|
| |||||||
13,088,677 | ||||||||
Software 4.1% | ||||||||
Intuit, Inc. | 3,228 | 2,037,933 | ||||||
Microsoft Corp. | 7,434 | 2,955,610 | ||||||
|
| |||||||
4,993,543 | ||||||||
Specialty Retail 1.6% | ||||||||
Ross Stores, Inc. | 9,738 | 1,366,047 | ||||||
TJX Cos., Inc. (The) | 6,307 | 598,597 | ||||||
|
| |||||||
1,964,644 | ||||||||
Technology Hardware, Storage & Peripherals 3.2% | ||||||||
Apple, Inc. | 21,132 | 3,896,741 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $94,141,585) | 118,353,182 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 3.5% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
PGIM Core Government Money Market Fund (7-day effective yield 5.560%)(wb) | 1,866,506 | 1,866,506 | ||||||
PGIM Institutional Money Market Fund (7-day effective yield 5.727%) | ||||||||
(cost $2,300,991; includes $2,290,137 of cash collateral for securities on loan)(b)(wb) | 2,302,122 | 2,301,432 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(cost $4,167,497) | 4,167,938 | |||||||
|
| |||||||
TOTAL INVESTMENTS 101.8% | ||||||||
(cost $98,309,082) | 122,521,120 | |||||||
Liabilities in excess of other assets (1.8)% | (2,143,892 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 120,377,228 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
ADR—American Depositary Receipt
REITs—Real Estate Investment Trust
SOFR—Secured Overnight Financing Rate
See Notes to Financial Statements.
12 |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $2,216,120; cash collateral of $2,290,137 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wb) | Represents an investment in a Fund affiliated with the Manager. |
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 2,754,155 | $— | $— | ||||||||
Banks | 7,102,706 | — | — | |||||||||
Beverages | 834,055 | — | — | |||||||||
Biotechnology | 4,166,060 | — | — | |||||||||
Building Products | 573,531 | — | — | |||||||||
Capital Markets | 4,536,519 | — | — | |||||||||
Chemicals | 3,091,282 | — | — | |||||||||
Communications Equipment | 2,662,450 | — | — | |||||||||
Consumer Staples Distribution & Retail | 2,088,429 | — | — | |||||||||
Diversified Consumer Services | 1,686,793 | — | — | |||||||||
Diversified Telecommunication Services | 3,659,121 | — | — | |||||||||
Electric Utilities | 3,582,530 | — | — | |||||||||
Electrical Equipment | 3,782,496 | — | — | |||||||||
Financial Services | 3,183,693 | — | — | |||||||||
Food Products | 2,647,848 | — | — | |||||||||
Ground Transportation | 3,092,078 | — | — | |||||||||
Health Care Equipment & Supplies | 754,258 | — | — | |||||||||
Health Care Providers & Services | 2,523,390 | — | — | |||||||||
Hotels, Restaurants & Leisure | 5,293,442 | — | — | |||||||||
Independent Power & Renewable Electricity Producers | 658,490 | — | — | |||||||||
Industrial Conglomerates | 2,685,610 | — | — | |||||||||
Insurance | 3,929,217 | — | — | |||||||||
IT Services | 2,595,299 | — | — | |||||||||
Machinery | 4,939,766 | — | — |
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 13 |
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Long-Term Investments (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Multi-Utilities | $ | 4,514,548 | $— | $— | ||||||||
Office REITs | 1,395,911 | — | — | |||||||||
Oil, Gas & Consumable Fuels. | 4,913,635 | — | — | |||||||||
Pharmaceuticals | 9,519,220 | — | — | |||||||||
Residential REITs | 1,243,045 | — | — | |||||||||
Semiconductors & Semiconductor Equipment. | 13,088,677 | — | — | |||||||||
Software | 4,993,543 | — | — | |||||||||
Specialty Retail | 1,964,644 | — | — | |||||||||
Technology Hardware, Storage & Peripherals. | 3,896,741 | — | — | |||||||||
Short-Term Investments | ||||||||||||
Affiliated Mutual Funds | 4,167,938 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 122,521,120 | $— | $— | ||||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Semiconductors & Semiconductor Equipment | 10.9 | % | ||
Pharmaceuticals | 7.9 | |||
Banks | 5.9 | |||
Hotels, Restaurants & Leisure | 4.4 | |||
Software | 4.1 | |||
Machinery | 4.1 | |||
Oil, Gas & Consumable Fuels | 4.1 | |||
Capital Markets | 3.8 | |||
Multi-Utilities | 3.8 | |||
Biotechnology | 3.5 | |||
Affiliated Mutual Funds (1.9% represents investments purchased with collateral from securities on loan) | 3.5 | |||
Insurance | 3.3 | |||
Technology Hardware, Storage & Peripherals | 3.2 | |||
Electrical Equipment | 3.1 | |||
Diversified Telecommunication Services | 3.0 | |||
Electric Utilities | 3.0 | |||
Financial Services | 2.6 | |||
Ground Transportation | 2.6 | |||
Chemicals | 2.6 |
Aerospace & Defense | 2.3 | % | ||
Industrial Conglomerates | 2.2 | |||
Communications Equipment | 2.2 | |||
Food Products | 2.2 | |||
IT Services | 2.2 | |||
Health Care Providers & Services | 2.1 | |||
Consumer Staples Distribution & Retail | 1.7 | |||
Specialty Retail | 1.6 | |||
Diversified Consumer Services | 1.4 | |||
Office REITs | 1.2 | |||
Residential REITs | 1.0 | |||
Beverages | 0.7 | |||
Health Care Equipment & Supplies | 0.6 | |||
Independent Power & Renewable Electricity | ||||
Producers | 0.5 | |||
Building Products | 0.5 | |||
|
| |||
101.8 | ||||
Liabilities in excess of other assets | (1.8 | ) | ||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
14 |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||
Securities on Loan | $2,216,120 | $(2,216,120) | $— |
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 15 |
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||||
Investments at value, including securities on loan of $2,216,120: | ||||||||
Unaffiliated investments (cost $94,141,585) | $ | 118,353,182 | ||||||
Affiliated investments (cost $4,167,497) | 4,167,938 | |||||||
Receivable for Fund shares sold | 298,751 | |||||||
Dividends receivable | 148,845 | |||||||
Tax reclaim receivable | 27,349 | |||||||
Prepaid expenses and other assets | 1,843 | |||||||
|
| |||||||
Total Assets | 122,997,908 | |||||||
|
| |||||||
Liabilities | ||||||||
Payable to broker for collateral for securities on loan | 2,290,137 | |||||||
Payable for Fund shares purchased | 230,211 | |||||||
Management fee payable | 65,907 | |||||||
Accrued expenses and other liabilities | 18,389 | |||||||
Distribution fee payable | 12,174 | |||||||
Affiliated transfer agent fee payable | 2,838 | |||||||
Trustees’ fees payable | 1,024 | |||||||
|
| |||||||
Total Liabilities | 2,620,680 | |||||||
|
| |||||||
Net Assets | $ | 120,377,228 | ||||||
|
| |||||||
Net assets were comprised of: | ||||||||
Shares of beneficial interest, at par | $ | 7,082 | ||||||
Paid-in capital in excess of par | 106,001,333 | |||||||
Total distributable earnings (loss) | 14,368,813 | |||||||
|
| |||||||
Net assets, January 31, 2024 | $ | 120,377,228 | ||||||
|
|
See Notes to Financial Statements.
16 |
Class A | ||||||||
Net asset value, offering price and redemption price per share, | $17.01 | |||||||
Maximum sales charge (5.50% of offering price) | 0.99 | |||||||
|
| |||||||
Maximum offering price to public | $18.00 | |||||||
|
| |||||||
Class C | ||||||||
Net asset value, offering price and redemption price per share, | $16.85 | |||||||
|
| |||||||
Class Z | ||||||||
Net asset value, offering price and redemption price per share, | $17.01 | |||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $17.01 | |||||||
|
|
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 17 |
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $11,866 foreign withholding tax) | $ | 1,166,935 | ||
Affiliated dividend income | 104,704 | |||
Affiliated income from securities lending, net | 1,712 | |||
|
| |||
Total income | 1,273,351 | |||
|
| |||
Expenses | ||||
Management fee | 448,742 | |||
Distribution fee(a) | 72,044 | |||
Interest expense | 49,334 | |||
Commitment fee on syndicated credit agreement | 42,688 | |||
Transfer agent’s fees and expenses (including affiliated expense of $8,545)(a) | 32,164 | |||
Registration fees(a) | 24,002 | |||
Custodian and accounting fees | 21,746 | |||
Professional fees | 18,273 | |||
Shareholders’ reports | 14,226 | |||
Audit fee | 12,364 | |||
Trustees’ fees | 5,864 | |||
SEC registration fees | 620 | |||
Miscellaneous | 8,299 | |||
|
| |||
Total expenses | 750,366 | |||
Less: Fee waiver and/or expense reimbursement(a) | (54,122 | ) | ||
Distribution fee waiver(a) | (7,011 | ) | ||
|
| |||
Net expenses | 689,233 | |||
|
| |||
Net investment income (loss) | 584,118 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on investment transactions (including affiliated of $1,101) | 5,519,559 | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $333) | 833,062 | |||
Foreign currencies | (152 | ) | ||
|
| |||
832,910 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 6,352,469 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 6,936,587 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 42,066 | 29,978 | — | — | ||||||||||||
Transfer agent’s fees and expenses | 16,333 | 4,141 | 11,131 | 559 | ||||||||||||
Registration fees | 8,295 | 4,273 | 7,790 | 3,644 | ||||||||||||
Fee waiver and/or expense reimbursement | (24,358 | ) | (8,455 | ) | (18,383 | ) | (2,926 | ) | ||||||||
Distribution fee waiver | (7,011 | ) | — | — | — |
See Notes to Financial Statements.
18 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 584,118 | $ | 2,557,378 | ||||||
Net realized gain (loss) on investment transactions | 5,519,559 | (14,417,955 | ) | |||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 832,910 | 13,684,549 | ||||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 6,936,587 | 1,823,972 | ||||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class A | (163,522 | ) | (260,573 | ) | ||||||
Class C | (10,095 | ) | (13,657 | ) | ||||||
Class Z | (77,088 | ) | (168,772 | ) | ||||||
Class R6 | (500,639 | ) | (2,082,033 | ) | ||||||
|
|
|
| |||||||
(751,344 | ) | (2,525,035 | ) | |||||||
|
|
|
| |||||||
Fund share transactions (Net of share conversions) | ||||||||||
Net proceeds from shares sold | 19,442,786 | 263,376,535 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 750,389 | 2,498,294 | ||||||||
Cost of shares purchased | (91,888,538 | ) | (261,398,263 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | (71,695,363 | ) | 4,476,566 | |||||||
|
|
|
| |||||||
Total increase (decrease) | (65,510,120 | ) | 3,775,503 | |||||||
Net Assets: | ||||||||||
Beginning of period | 185,887,348 | 182,111,845 | ||||||||
|
|
|
| |||||||
End of period | $ | 120,377,228 | $ | 185,887,348 | ||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 19 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.04 | $16.12 | $18.00 | $13.86 | $13.54 | $13.80 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.16 | 0.12 | 0.07 | 0.11 | 0.13 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.99 | (0.08 | ) | (0.53 | )(b) | 4.72 | 0.73 | 0.75 | ||||||||||||||||||||
Total from investment operations | 1.06 | 0.08 | (0.41 | ) | 4.79 | 0.84 | 0.88 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.09 | ) | (0.16 | ) | (0.11 | ) | (0.07 | ) | (0.08 | ) | (0.13 | ) | ||||||||||||||||
Distributions from net realized gains | - | - | (1.36 | ) | (0.58 | ) | (0.44 | ) | (1.01 | ) | ||||||||||||||||||
Total dividends and distributions | (0.09 | ) | (0.16 | ) | (1.47 | ) | (0.65 | ) | (0.52 | ) | (1.14 | ) | ||||||||||||||||
Net asset value, end of period | $17.01 | $16.04 | $16.12 | $18.00 | $13.86 | $13.54 | ||||||||||||||||||||||
Total Return(c) : | 6.66 | % | 0.55 | % | (2.69 | )% | 35.44 | % | 6.24 | % | 8.27 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $29,318 | $28,354 | $22,003 | $13,908 | $7,269 | $5,391 | ||||||||||||||||||||||
Average net assets (000) | $27,892 | $25,464 | $17,151 | $10,058 | $6,608 | $4,729 | ||||||||||||||||||||||
Ratios to average net assets(d) : | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.32 | %(e)(f) | 1.25 | %(f) | 1.24 | % | 1.24 | % | 1.24 | % | 1.24 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.54 | %(e) | 1.38 | % | 1.63 | % | 1.87 | % | 2.22 | % | 2.60 | % | ||||||||||||||||
Net investment income (loss) | 0.83 | %(e) | 1.01 | % | 0.71 | % | 0.46 | % | 0.85 | % | 0.98 | % | ||||||||||||||||
Portfolio turnover rate(g) | 26 | % | 106 | % | 99 | % | 86 | % | 106 | % | 100 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(c) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | Includes interest expense on borrowings from the Syndicated Credit Agreement of 0.08% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
20 |
Class C Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.89 | $15.97 | $17.88 | $13.81 | $13.51 | $13.80 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | - | (b) | 0.04 | (c) | (0.01 | )(c) | (0.04 | )(c) | 0.02 | 0.04 | ||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.99 | (0.07 | )(d) | (0.53 | )(d) | 4.69 | 0.72 | 0.73 | ||||||||||||||||||
Total from investment operations | 0.99 | (0.03 | ) | (0.54 | ) | 4.65 | 0.74 | 0.77 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.03 | ) | (0.05 | ) | (0.01 | ) | (- | )(b) | (- | )(b) | (0.05 | ) | ||||||||||||||
Distributions from net realized gains | - | - | (1.36 | ) | (0.58 | ) | (0.44 | ) | (1.01 | ) | ||||||||||||||||
Total dividends and distributions | (0.03 | ) | (0.05 | ) | (1.37 | ) | (0.58 | ) | (0.44 | ) | (1.06 | ) | ||||||||||||||
Net asset value, end of period | $16.85 | $15.89 | $15.97 | $17.88 | $13.81 | $13.51 | ||||||||||||||||||||
Total Return(e) : | 6.16 | % | (0.14 | )% | (3.46 | )% | 34.45 | % | 5.45 | % | 7.40 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $7,385 | $5,374 | $4,001 | $2,252 | $1,498 | $1,852 | ||||||||||||||||||||
Average net assets (000) | $5,963 | $4,788 | $2,803 | $1,735 | $1,711 | $1,865 | ||||||||||||||||||||
Ratios to average net assets(f) : | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.06 | %(g)(h) | 2.00 | %(h) | 1.99 | % | 1.99 | % | 1.99 | % | 1.99 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.34 | %(g) | 2.24 | % | 2.66 | % | 2.97 | % | 3.55 | % | 3.64 | % | ||||||||||||||
Net investment income (loss) | 0.05 | %(g) | 0.26 | % | (0.05 | )% | (0.27 | )% | 0.13 | % | 0.28 | % | ||||||||||||||
Portfolio turnover rate(i) | 26 | % | 106 | % | 99 | % | 86 | % | 106 | % | 100 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(d) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(e) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(f) | Does not include expenses of the underlying funds in which the Fund invests. |
(g) | Annualized. |
(h) | Includes interest expense on borrowings from the Syndicated Credit Agreement of 0.07% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(i) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 21 |
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.04 | $16.13 | $18.01 | $13.87 | $13.56 | $13.82 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.29 | 0.18 | 0.12 | 0.14 | 0.16 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.99 | (0.19 | ) | (0.55 | )(b) | 4.71 | 0.72 | 0.75 | ||||||||||||||||||||
Total from investment operations | 1.08 | 0.10 | (0.37 | ) | 4.83 | 0.86 | 0.91 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.11 | ) | (0.19 | ) | (0.15 | ) | (0.11 | ) | (0.11 | ) | (0.16 | ) | ||||||||||||||||
Distributions from net realized gains | - | - | (1.36 | ) | (0.58 | ) | (0.44 | ) | (1.01 | ) | ||||||||||||||||||
Total dividends and distributions | (0.11 | ) | (0.19 | ) | (1.51 | ) | (0.69 | ) | (0.55 | ) | (1.17 | ) | ||||||||||||||||
Net asset value, end of period | $17.01 | $16.04 | $16.13 | $18.01 | $13.87 | $13.56 | ||||||||||||||||||||||
Total Return(c) : | 6.74 | % | 0.75 | % | (2.46 | )% | 35.74 | % | 6.46 | % | 8.54 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $9,100 | $13,513 | $156,090 | $15,364 | $18,828 | $9,122 | ||||||||||||||||||||||
Average net assets (000) | $10,377 | $31,371 | $44,393 | $13,377 | $12,973 | $8,216 | ||||||||||||||||||||||
Ratios to average net assets(d) : | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.09 | %(e)(f) | 1.00% | (f) | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.44 | %(e) | 1.08 | % | 1.19 | % | 1.58 | % | 1.70 | % | 2.02 | % | ||||||||||||||||
Net investment income (loss) | 1.15 | %(e) | 1.84 | % | 1.08 | % | 0.77 | % | 1.06 | % | 1.25 | % | ||||||||||||||||
Portfolio turnover rate(g) | 26 | % | 106 | % | 99 | % | 86 | % | 106 | % | 100 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | Includes interest expense on borrowings from the Syndicated Credit Agreement of 0.10% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
22 |
Class R6 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.04 | $16.12 | $18.01 | $13.87 | $13.55 | $13.81 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.20 | 0.17 | 0.12 | 0.15 | 0.16 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 1.00 | (0.07 | ) | | (0.55 | )(b) | 4.71 | 0.72 | 0.75 | |||||||||||||||||||
Total from investment operations | 1.09 | 0.13 | (0.38 | ) | 4.83 | 0.87 | 0.91 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.12 | ) | (0.21 | ) | (0.15 | ) | (0.11 | ) | (0.11 | ) | (0.16 | ) | ||||||||||||||||
Distributions from net realized gains | - | - | (1.36 | ) | (0.58 | ) | (0.44 | ) | (1.01 | ) | ||||||||||||||||||
Total dividends and distributions | (0.12 | ) | (0.21 | ) | (1.51 | ) | (0.69 | ) | (0.55 | ) | (1.17 | ) | ||||||||||||||||
Net asset value, end of period | $17.01 | $16.04 | $16.12 | $18.01 | $13.87 | $13.55 | ||||||||||||||||||||||
Total Return(c) : | 6.75 | % | 0.95 | % | (2.49 | )% | 35.74 | % | 6.54 | % | 8.55 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $74,574 | $138,646 | $17 | $17 | $13 | $12 | ||||||||||||||||||||||
Average net assets (000) | $70,943 | $135,960 | $17 | $15 | $12 | $11 | ||||||||||||||||||||||
Ratios to average net assets(d) : | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.08 | %(e)(f) | 0.89 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.09 | %(e) | 0.89 | % | 37.99 | % | 48.96 | % | 123.09 | % | 119.91 | % | ||||||||||||||||
Net investment income (loss) | 1.14 | %(e) | 1.26 | % | 0.97 | % | 0.73 | % | 1.10 | % | 1.25 | % | ||||||||||||||||
Portfolio turnover rate(g) | 26 | % | 106 | % | 99 | % | 86 | % | 106 | % | 100 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | Includes interest expense on borrowings from the Syndicated Credit Agreement of 0.09% which are being excluded from the Fund’s contractual waiver for the for the six months ended January 31, 2024. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Rising Dividend Fund | 23 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential Investment Portfolios 5 (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Delaware Statutory Trust. These financial statements relate only to the PGIM Jennison Rising Dividend Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek capital appreciation and income.
2. 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 is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). 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 as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Trustees (the “Board”) has approved the Fund’s valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Fund investments. Pursuant to the Board’s oversight, the Valuation Designee has established a Valuation Committee to perform the duties and responsibilities as Valuation Designee under Rule 2a-5. 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. Fair value is the estimated 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.
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
24 |
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 Measurement.
Common or preferred stocks, exchange-traded funds (“ETFs”) and derivative instruments, if applicable, 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 a 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.
Investments in open-end funds (other than ETFs) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on policies and procedures 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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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; and any available analyst media or other reports or information deemed reliable by the Valuation Designee 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.
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 exchange rate as of the valuation date;
PGIM Jennison Rising Dividend Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
(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 unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
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.
Master Netting Arrangements: The RIC, 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 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.
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 the securities on loan on the last business day of the reporting period, the
26 |
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. The remaining open loans of the securities lending transactions are considered overnight and continuous. 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, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): The Fund invested in REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
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. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts. 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. Such class specific expenses and waivers 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
PGIM Jennison Rising Dividend Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
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.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, 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. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |||
Net Investment Income | Quarterly | |||
Short-Term Capital Gains | Annually | |||
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
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.
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of the subadviser’s performance of such services, and for rendering administrative services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended January 31, 2024, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |
0.775% of average daily net assets up to $1 billion; | 0.775% | |
0.755% of average daily net assets from $1 billion to $3 billion; |
28 |
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |
0.735% of average daily net assets from $3 billion to $5 billion; | ||
0.715% of average daily net assets from $5 billion to $10 billion; | ||
0.705% of average daily net assets over $10 billion |
The Manager has contractually agreed, through November 30, 2024, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and 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 such 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 for the purpose of preventing the expenses from exceeding a certain expense ratio limit 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 that fiscal year. The expense limitations attributable to each class are as follows:
Class | Expense Limitations | |
A | 1.24% | |
C | 1.99 | |
Z | 0.99 | |
R6 | 0.99 |
The RIC, 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 C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through November 30, 2024 to limit such fees on certain classes based on the daily net assets. The distribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rates, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | ||||||
A | 0.30% | 0.25% |
PGIM Jennison Rising Dividend Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
Class | Gross Distribution Fee | Net Distribution Fee | ||||||
C | 1.00% | 1.00% | ||||||
Z | N/A | N/A | ||||||
R6 | N/A | N/A |
For the reporting period ended January 31, 2024, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||||||
A | $ | 27,697 | $ | 299 | ||||
C | — | 1,042 |
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent and shareholder servicing 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 Government Money Market Fund (the “Core Government Fund”), a series of the Prudential Government Money Market Fund, Inc., and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), a series of Prudential Investment Portfolios 2, each registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Government Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Government Fund and the Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Affiliated 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/trustees, and/or common officers. For the reporting period ended January 31,
30 |
2024, no Rule 17a-7 transactions were entered into by the Fund.
5. 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 January 31, 2024, were as follows:
Cost of Purchases | Proceeds from Sales | |
$31,231,961 | $101,206,245 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended January 31, 2024, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, Period | Shares, of Period | Income | |||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Core Government Money Market Fund (7-day effective yield 5.560%)(1)(wb) |
| |||||||||||||||||||||||||||
$ — | $ 29,059,930 | $ 27,193,424 | $ — | $ — | $1,866,506 | 1,866,506 | $104,704 | |||||||||||||||||||||
PGIM Institutional Money Market Fund (7-day effective yield 5.727%)(1)(b)(wb) |
| |||||||||||||||||||||||||||
1,109,231 | 21,901,954 | 20,711,187 | 333 | 1,101 | 2,301,432 | 2,302,122 | 1,712 | (2) | ||||||||||||||||||||
$1,109,231 | $50,961,884 | $47,904,611 | $333 | $1,101 | $4,167,938 | $106,416 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wb) | Represents an investment in a Fund affiliated with the Manager. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of January 31, 2024 were as follows:
Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation | |||
$100,012,680 | $25,060,789 | $(2,552,349) | $22,508,440 |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Fund had an approximated capital loss carryforward as of July 31, 2023 which can be carried forward for an unlimited period. No capital gains
PGIM Jennison Rising Dividend Fund | 31 |
Notes to Financial Statements (unaudited) (continued)
distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
Capital Loss Carryforward | Capital Loss Carryforward Utilized | |
$13,772,000 | $— |
The Fund elected to treat the below approximated losses as having been incurred in the following fiscal year (July 31, 2024).
Qualified Late-Year Losses | Post-October Capital Losses | |
$— | $54,000 |
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 July 31, 2023 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a 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 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 eight years (ten years prior to January 22, 2021) after purchase. 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, below.
The RIC has authorized an unlimited number of shares of beneficial interest of the Fund at
$0.001 par value per share currently divided into four classes, designated Class A, Class C, Class Z and Class R6.
32 |
As of January 31, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||
R6 | 1,068 | 0.1% |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||
Affiliated | — | —% | ||
Unaffiliated | 4 | 92.4 |
Transactions in shares of beneficial interest were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 146,266 | $ | 2,354,836 | |||||
Shares issued in reinvestment of dividends and distributions | 10,119 | 162,596 | ||||||
Shares purchased | (202,305 | ) | (3,237,841 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (45,920 | ) | (720,409 | ) | ||||
Shares issued upon conversion from other share class(es) | 4,666 | 73,965 | ||||||
Shares purchased upon conversion into other share class(es) | (2,949 | ) | (47,684 | ) | ||||
Net increase (decrease) in shares outstanding | (44,203 | ) | $ | (694,128 | ) | |||
Year ended July 31, 2023: | ||||||||
Shares sold | 682,598 | $ | 10,617,546 | |||||
Shares issued in reinvestment of dividends and distributions | 16,893 | 258,812 | ||||||
Shares purchased | (315,043 | ) | (4,891,537 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 384,448 | 5,984,821 | ||||||
Shares issued upon conversion from other share class(es) | 22,744 | 349,647 | ||||||
Shares purchased upon conversion into other share class(es) | (4,347 | ) | (67,551 | ) | ||||
Net increase (decrease) in shares outstanding | 402,845 | $ | 6,266,917 | |||||
Class C | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 147,415 | $ | 2,351,401 | |||||
Shares issued in reinvestment of dividends and distributions | 643 | 10,095 | ||||||
Shares purchased | (41,135 | ) | (647,593 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 106,923 | 1,713,903 | ||||||
Shares purchased upon conversion into other share class(es) | (7,014 | ) | (109,540 | ) | ||||
Net increase (decrease) in shares outstanding | 99,909 | $ | 1,604,363 |
PGIM Jennison Rising Dividend Fund | 33 |
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||
Year ended July 31, 2023: | ||||||||
Shares sold | 203,234 | $ | 3,131,688 | |||||
Shares issued in reinvestment of dividends and distributions | 902 | 13,599 | ||||||
Shares purchased | (93,458 | ) | (1,437,816 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 110,678 | 1,707,471 | ||||||
Shares purchased upon conversion into other share class(es) | (22,956 | ) | (349,647 | ) | ||||
Net increase (decrease) in shares outstanding | 87,722 | $ | 1,357,824 | |||||
Class Z | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 57,567 | $ | 921,425 | |||||
Shares issued in reinvestment of dividends and distributions | 4,804 | 77,059 | ||||||
Shares purchased | (373,842 | ) | (5,877,889 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (311,471 | ) | (4,879,405 | ) | ||||
Shares issued upon conversion from other share class(es) | 5,232 | 83,259 | ||||||
Shares purchased upon conversion into other share class(es) | (1,129 | ) | (17,845 | ) | ||||
Net increase (decrease) in shares outstanding | (307,368 | ) | $ | (4,813,991 | ) | |||
Year ended July 31, 2023: | ||||||||
Shares sold | 1,332,628 | $ | 21,169,943 | |||||
Shares issued in reinvestment of dividends and distributions | 11,028 | 168,749 | ||||||
Shares purchased | (10,180,878 | ) | (163,612,508 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (8,837,222 | ) | (142,273,816 | ) | ||||
Shares issued upon conversion from other share class(es) | 4,457 | 69,242 | ||||||
Net increase (decrease) in shares outstanding | (8,832,765 | ) | $ | (142,204,574 | ) | |||
Class R6 | ||||||||
Six months ended January 31, 2024: | ||||||||
Shares sold | 866,979 | $ | 13,815,124 | |||||
Shares issued in reinvestment of dividends and distributions | 31,114 | 500,639 | ||||||
Shares purchased | (5,157,927 | ) | (82,125,215 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (4,259,834 | ) | (67,809,452 | ) | ||||
Shares issued upon conversion from other share class(es) | 1,129 | 17,845 | ||||||
Net increase (decrease) in shares outstanding | (4,258,705 | ) | $ | (67,791,607 | ) |
34 |
Share Class | Shares | Amount | ||||||
Year ended July 31, 2023: | ||||||||
Shares sold | 14,384,746 | $ 228,457,358 | ||||||
Shares issued in reinvestment of dividends and distributions | 134,240 | 2,057,134 | ||||||
Shares purchased | (5,876,460 | ) | (91,456,402 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 8,642,526 | 139,058,090 | ||||||
Shares purchased upon conversion into other share class(es) | (110 | ) | (1,691 | ) | ||||
Net increase (decrease) in shares outstanding | 8,642,416 | $ 139,056,399 |
8. Borrowings
The RIC, on behalf of the Fund along with other affiliated registered investment companies (the “Participating 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 as well as the prior SCA.
Current SCA | Prior SCA | |||
Term of Commitment | 9/29/2023 - 9/26/2024 | 9/30/2022 – 9/28/2023 | ||
Total Commitment | $ 1,200,000,000 | $ 1,200,000,000 | ||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||
Annualized Interest Rate on Borrowings | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent |
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 to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended January 31, 2024. The average daily balance for the 9 days that the Fund had loans outstanding during the period was approximately $30,826,444, borrowed at a weighted average interest rate of 6.40%. The maximum loan outstanding amount during the period was $33,979,000. At January 31, 2024, the Fund did not have an outstanding loan amount.
PGIM Jennison Rising Dividend Fund | 35 |
Notes to Financial Statements (unaudited) (continued)
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Dividend Risk: There is no guarantee that the issuers of the stocks held by the Fund will pay dividends in the future or that, if dividends are paid, they will remain at their current levels or increase over time. High-dividend stocks may not experience high earnings growth or capital appreciation. The Fund’s performance during a broad market advance could suffer because dividend paying stocks may not experience the same capital appreciation as non-dividend paying stocks. A sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth, may at times result in periods of unusually high volatility in a market or a segment of a market, which could negatively impact performance. Reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide. In addition, it remains uncertain that governmental entities will intervene in response to market disturbances, and the effect of any such future intervention cannot be predicted.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. 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. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
36 |
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Large Capitalization Company Risk: Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the Fund’s value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
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.
PGIM Jennison Rising Dividend Fund | 37 |
Notes to Financial Statements (unaudited) (continued)
Management Risk: Actively managed funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but the subadviser’s judgments about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements may be incorrect. Additionally, the investments selected for the Fund may underperform the markets in general, the Fund’s benchmark and other funds with similar investment objectives.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with the market, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Market 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 your investment in the Fund will decline.
38 |
Portfolio Turnover Risk: The length of time the Fund has held a particular security is not generally a consideration in investment decisions. Under certain market conditions, the Fund’s turnover rate may be higher than that of other mutual funds. Portfolio turnover generally involves some expense to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestment in other securities. These transactions may result in realization of taxable capital gains. The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund’s investment performance.
10. Recent Regulatory Developments
Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments (the “Rule”). Other information, including financial statements, will no longer appear in the funds’ streamlined shareholder reports but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The Rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the Rule and its impact to the Fund.
PGIM Jennison Rising Dividend Fund | 39 |
|
∎ TELEPHONE |
∎ WEBSITE | ||
655 Broad Street Newark, NJ 07102
| (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. 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 ● Stuart S. Parker ● Brian K. Reid ● Grace C. Torres
|
OFFICERS |
Stuart S. Parker, President and Principal Executive Officer ● Scott E. Benjamin, Vice President ● Christian J. Kelly, Chief Financial Officer ● Claudia DiGiacomo, Chief Legal Officer ● Andrew Donohue, Chief Compliance Officer ● Russ Shupak, Treasurer and Principal Accounting Officer ● Kelly Florio, Anti-Money Laundering Compliance Officer ● Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ● Patrick E. McGuinness, Assistant Secretary ● Debra Rubano, Assistant Secretary ● George Hoyt, Assistant Secretary ● Devan Goolsby, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer ● Robert W. McCormack, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 534432 Pittsburgh, PA 15253 | ||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.
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E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/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.
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SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM Jennison Rising Dividend Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at the same address. Communications are not screened before being delivered to the addressee.
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AVAILABILITY OF PORTFOLIO HOLDINGS
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The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and the Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY
| MAY LOSE VALUE |
ARE NOT A DEPOSIT OF OR GUARANTEED
|
PGIM JENNISON RISING DIVIDEND FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | PJDAX | PJDCX | PJDZX | PJDQX | ||||
CUSIP | 74440V823 | 74440V815 | 74440V799 | 74440V682 |
MF220E2
PGIM 60/40 ALLOCATION FUND
SEMIANNUAL REPORT
JANUARY 31, 2024
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
Table of Contents
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 January 31, 2024 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. PGIM Quantitative Solutions LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), is a registered investment adviser. © 2024 Prudential Financial, Inc. and its related entities. 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 pgim.com/investments
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
Total Returns as of 1/31/24 (without sales charges) | Average Annual Total Returns as of 1/31/24 (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Fund | 6.52 | 14.60 | 8.63 | 7.93 (9/13/2017) | ||||
Custom Benchmark Index |
5.15 | 13.07 | 9.06 | 8.30 |
*Not annualized
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.
Benchmark Definitions
Custom Benchmark Index—The Custom Benchmark is comprised of 60% S&P 500 Index and 40% Bloomberg US Aggregate Bond Index.
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 stock prices in the United States have performed.
Bloomberg US Aggregate Bond Index—The Bloomberg US Aggregate Bond Index is unmanaged and represents securities that are taxable and US 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 that may be paid by an investor.
PGIM 60/40 Allocation Fund 3
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 1/31/24
Top Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | Domestic Equity | 59.4% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 40.5% |
Holdings reflect only long-term investments and are subject to change.
4 Visit our website at pgim.com/investments
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 January 31, 2024. 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 and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM 60/40 Allocation Fund 5
Fees and Expenses (continued)
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 60/40 Allocation Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||
Class R6 Actual | $1,000.00 | $1,065.20 | 0.41% | $2.13 | ||||
Hypothetical | $1,000.00 | $1,023.08 | 0.41% | $2.08 |
*Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 184 days in the six-month period ended January 31, 2024, and divided by the 366 days in the Fund’s fiscal year ending July 31, 2024 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
6 Visit our website at pgim.com/investments
PGIM 60/40 Allocation Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.9% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 59.4% | ||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | 3,113,918 | $ | 61,593,302 | |||||
Fixed Income — 40.5% | ||||||||
PGIM Total Return Bond Fund (Class R6) | 3,484,005 | 41,947,425 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 103,540,727 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.1% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund (cost $109,684) | 109,684 | 109,684 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | 103,650,411 | |||||||
Liabilities in excess of other assets (0.0)% | (27,072 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 103,623,339 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
(wa) | Represents investments in Funds affiliated with the Manager. |
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.
See Notes to Financial Statements.
PGIM 60/40 Allocation Fund 7
PGIM 60/40 Allocation Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
The following is a summary of the inputs used as of January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||||
Investments in Securities | ||||||||||||||
Assets | ||||||||||||||
Long-Term Investments | ||||||||||||||
Affiliated Mutual Funds | ||||||||||||||
Domestic Equity | $ | 61,593,302 | $— | $— | ||||||||||
Fixed Income | 41,947,425 | — | — | |||||||||||
Short-Term Investment | ||||||||||||||
Affiliated Mutual Fund | 109,684 | — | — | |||||||||||
Total | $ | 103,650,411 | $— | $— | ||||||||||
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|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 59.4 | % | ||
Fixed Income | 40.5 | |||
Short Term | 0.1 | |||
|
| |||
100.0 | ||||
Liabilities in excess of other assets | (0.0 | )* | ||
|
| |||
100.0 | % | |||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
8
Statement of Assets and Liabilities (unaudited)
as of January 31, 2024
Assets | ||||
Affiliated investments (cost $94,149,603) | $ | 103,650,411 | ||
Receivable for investments sold | 951,769 | |||
Due from Manager | 8,128 | |||
Prepaid expenses | 874 | |||
|
| |||
Total Assets | 104,611,182 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 949,093 | |||
Accrued expenses and other liabilities | 35,496 | |||
Payable for Fund shares purchased | 2,626 | |||
Trustees’ fees payable | 604 | |||
Affiliated transfer agent fee payable | 24 | |||
|
| |||
Total Liabilities | 987,843 | |||
|
| |||
Net Assets | $ | 103,623,339 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 8,410 | ||
Paid-in capital in excess of par | 98,167,028 | |||
Total distributable earnings (loss) | 5,447,901 | |||
|
| |||
Net assets, January 31, 2024 | $ | 103,623,339 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, ($103,623,339 ÷ 8,410,153 shares of beneficial interest issued and outstanding) | $ | 12.32 | ||
|
|
See Notes to Financial Statements.
PGIM 60/40 Allocation Fund 9
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss)
| ||||
Affiliated dividend income | $ | 1,854,432 | ||
|
| |||
Expenses | ||||
Management fee | 9,502 | |||
Custodian and accounting fees | 20,008 | |||
Professional fees | 17,984 | |||
Audit fee | 10,736 | |||
Shareholders’ reports | 7,825 | |||
Trustees’ fees | 5,300 | |||
Fund data services | 3,240 | |||
SEC registration fees | 424 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 61) | 108 | |||
Miscellaneous | 2,688 | |||
|
| |||
Total expenses | 77,815 | |||
Less: Fee waiver and/or expense reimbursement | (57,797 | ) | ||
|
| |||
Net expenses | 20,018 | |||
|
| |||
Net investment income (loss) | 1,834,414 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | (632,988 | ) | ||
Net capital gain distributions received | 1,270,856 | |||
|
| |||
637,868 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | 3,887,337 | |||
|
| |||
Net gain (loss) on investment transactions | 4,525,205 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 6,359,619 | ||
|
|
See Notes to Financial Statements.
10
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 1,834,414 | $ | 2,665,060 | ||||||||||
Net realized gain (loss) on investment transactions | (632,988 | ) | (2,715,273 | ) | ||||||||||
Net capital gain distributions received | 1,270,856 | 523,209 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 3,887,337 | 5,497,789 | ||||||||||||
|
|
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | 6,359,619 | 5,970,785 | ||||||||||||
|
|
|
| |||||||||||
Dividends and Distributions | ||||||||||||||
Distributions from distributable earnings | ||||||||||||||
Class R6 | (2,933,603 | ) | (4,750,724 | ) | ||||||||||
|
|
|
| |||||||||||
Fund share transactions | ||||||||||||||
Net proceeds from shares sold (763,946 and 1,435,984 shares, respectively) | 9,074,207 | 15,984,728 | ||||||||||||
Net asset value of shares issued in reinvestment of dividends and distributions (243,298 and 450,306 shares, respectively) | 2,933,603 | 4,750,724 | ||||||||||||
Cost of shares purchased (383,142 and 1,042,521 shares, respectively) | (4,578,039 | ) | (11,722,685 | ) | ||||||||||
|
|
|
| |||||||||||
Net increase (decrease) in net assets from Fund share transactions | 7,429,771 | 9,012,767 | ||||||||||||
|
|
|
| |||||||||||
Total increase (decrease) | 10,855,787 | 10,232,828 | ||||||||||||
Net Assets: | ||||||||||||||
Beginning of period | 92,767,552 | 82,534,724 | ||||||||||||
|
|
|
| |||||||||||
End of period | $ | 103,623,339 | $ | 92,767,552 | ||||||||||
|
|
|
|
See Notes to Financial Statements.
PGIM 60/40 Allocation Fund 11
PGIM 60/40 Allocation Fund
Financial Highlights (unaudited)
Class R6 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.91 | $11.89 | $13.59 | $11.53 | $11.09 | $10.77 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.23 | 0.35 | 0.25 | 0.22 | 0.24 | 0.20 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.54 | 0.32 | (b) | (1.04 | ) | 2.15 | 0.72 | 0.47 | ||||||||||||||||||||
Total from investment operations | 0.77 | 0.67 | (0.79 | ) | 2.37 | 0.96 | 0.67 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.34 | ) | (0.30 | ) | (0.85 | ) | (0.19 | ) | (0.33 | ) | (0.34 | ) | ||||||||||||||||
Distributions from net realized gains | (0.02 | ) | (0.35 | ) | (0.06 | ) | (0.12 | ) | (0.19 | ) | (0.01 | ) | ||||||||||||||||
Total dividends and distributions | (0.36 | ) | (0.65 | ) | (0.91 | ) | (0.31 | ) | (0.52 | ) | (0.35 | ) | ||||||||||||||||
Net asset value, end of period | $12.32 | $11.91 | $11.89 | $13.59 | $11.53 | $11.09 | ||||||||||||||||||||||
Total Return(c): | 6.52 | % | 6.35 | % | (6.34 | )% | 20.93 | % | 8.75 | % | 6.73 | % | ||||||||||||||||
Ratios/Supplemental Data: |
| |||||||||||||||||||||||||||
Net assets, end of period (000) | $103,623 | $92,768 | $82,535 | $76,709 | $32,266 | $17,019 | ||||||||||||||||||||||
Average net assets (000) | $94,509 | $84,138 | $82,858 | $53,068 | $23,312 | $9,866 | ||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.04 | %(e) | 0.04 | %(f) | 0.03 | % | 0.04 | % | 0.03 | % | 0.03 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.16 | %(e) | 0.19 | % | 0.17 | % | 0.27 | % | 0.72 | % | 1.78 | % | ||||||||||||||||
Net investment income (loss) | 3.86 | %(e) | 3.17 | % | 1.97 | % | 1.76 | % | 2.15 | % | 1.87 | % | ||||||||||||||||
Portfolio turnover rate(g) | 8 | % | 21 | % | 20 | % | 22 | % | 30 | % | 31 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | Annualized. |
(f) | Includes interest expense on borrowings from the Syndicated Credit Agreement and certain non-recurring expenses of 0.01%, respectively which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
12
Notes to Financial Statements (unaudited)
1. | Organization |
Prudential Investment Portfolios 5 (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Delaware Statutory Trust. These financial statements relate only to the PGIM 60/40 Allocation Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek a balance between growth and conservation of capital.
The Fund pursues its objective by primarily investing in a portfolio of other mutual funds within the PGIM fund family (collectively, the “Underlying Funds”) that provide exposure to equity and fixed income.
2. | 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 is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). 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 as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Trustees (the “Board”) has approved the Fund’s valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Fund investments. Pursuant to the Board’s oversight, the Valuation Designee has established a Valuation Committee to perform the duties and responsibilities as Valuation Designee under Rule 2a-5. 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. Fair value is the estimated 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.
PGIM 60/40 Allocation Fund 13
Notes to Financial Statements (unaudited) (continued)
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 Measurement.
Investments in open-end funds (other than exchange-traded funds (“ETFs”)) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on policies and procedures 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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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; and any available analyst media or other reports or information deemed reliable by the Valuation Designee 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.
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. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts.
14
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.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, 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. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |||
Net Investment Income | Annually | |||
Short-Term Capital Gains | Annually | |||
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
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.
3. | Agreements |
The RIC, on behalf of the Fund, has a management agreement with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of the subadviser’s performance of such services, and for rendering administrative services.
The Manager has entered into a subadvisory agreement with PGIM Quantitative Solutions LLC (“PGIM Quantative Solutions” or the “subadviser”). The Manager pays for the services of the subadviser.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended January 31, 2024, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |
0.02% of the Fund’s average daily net assets | 0.02% |
PGIM 60/40 Allocation Fund 15
Notes to Financial Statements (unaudited) (continued)
The Manager has contractually agreed, through November 30, 2024, to limit total annual operating expenses after fee waivers and/or expense reimbursements. 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. Fees and/or expenses waived and/or reimbursed by the Manager for the purpose of preventing the expenses from exceeding a certain expense ratio limit 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 that fiscal year. The expense limitations attributable to below class is:
Class | Expense Limitations | |
R6 | 0.40% |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class R6 shares of the Fund. No distribution or service fees are paid to PIMS as distributor for Class R6 shares of the Fund.
PGIM Investments, PIMS and PGIM Quantitative Solutions are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. | Other Transactions with Affiliates |
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent and shareholder servicing 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”), a series of PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income”.
16
5. | 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 January 31, 2024, were as follows:
Cost of Purchases | Proceeds from Sales | |
$15,002,025 | $7,408,556 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended January 31, 2024, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | ||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): |
| |||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) |
| |||||||||||||||||||||||||||||||
$55,599,737 | $ 8,291,993 | $4,817,048 | $2,507,992 | $ 10,628 | $ 61,593,302 | 3,113,918 | $ 901,031 | $1,270,856 | ||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) |
| |||||||||||||||||||||||||||||||
37,093,172 | 6,710,032 | 2,591,508 | 1,379,345 | (643,616) | 41,947,425 | 3,484,005 | 950,078 | — | ||||||||||||||||||||||||
$92,692,909 | $15,002,025 | $7,408,556 | $3,887,337 | $(632,988) | $103,540,727 | $1,851,109 | $1,270,856 | |||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): |
| |||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund |
| |||||||||||||||||||||||||||||||
$ 120,491 | $ 1,600,213 | $1,611,020 | $ — | $ — | $ 109,684 | 109,684 | $ 3,323 | $ — | ||||||||||||||||||||||||
$92,813,400 | $16,602,238 | $9,019,576 | $3,887,337 | $(632,988 | ) | $103,650,411 | $1,854,432 | $1,270,856 |
(wa) | Represents investments in Funds affiliated with the Manager. |
6. | Tax Information |
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of January 31, 2024 were as follows:
Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation | |||
$98,949,364 | $12,623,839 | $(7,922,792) | $4,701,047 |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
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 July 31, 2023 are subject to such review.
PGIM 60/40 Allocation Fund 17
Notes to Financial Statements (unaudited) (continued)
7. | Capital and Ownership |
The RIC is authorized to issue an unlimited number of shares of beneficial interest of the Fund, at $0.001 par value per share, currently divided into one class, designated Class R6 shares.
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, below.
As of January 31, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||
R6 | 8,409,422 | 99.9% |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||
Affiliated | 1 | 99.9% | ||
Unaffiliated | — | — |
8. | Borrowings |
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating 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 as well as the prior SCA.
Current SCA | Prior SCA | |||
Term of Commitment | 9/29/2023 - 9/26/2024 | 9/30/2022 – 9/28/2023 | ||
Total Commitment | $ 1,200,000,000 | $ 1,200,000,000 | ||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||
Annualized Interest Rate on Borrowings | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent |
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
18
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 to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended January 31, 2024.
9. | Risks of Investing in the Fund |
The risks of the Fund and/or the Underlying Funds risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Affiliated Funds Risk: The Fund’s Manager serves as manager of the Underlying Funds. In addition, the Fund invests in certain Underlying Funds for which the subadviser serves as subadviser. It is possible that a conflict of interest among the Fund and the Underlying Funds could affect how the Manager and subadviser fulfill their fiduciary duties to the Fund and the Underlying Funds. For example, the subadviser may have an incentive to allocate the Fund’s assets to those Underlying Funds for which the fees paid to the Manager or the subadviser are higher than the fees paid by other Underlying Funds for which the subadviser also serves as a subadviser. However, the Fund has adopted procedures to mitigate these concerns.
Asset Allocation Risk: The Fund’s risks will directly correspond to the risks of the Underlying Funds in which it invests. The selection of the Underlying Funds and the allocation of the Fund’s assets among the various asset classes and market sectors could cause the Fund to underperform other funds with a similar investment objective.
Asset Class Variation Risk: The Underlying Funds invest principally in the securities constituting their asset class (i.e., equity and fixed income). However, an Underlying Fund may vary the percentage of assets in these securities (subject to any applicable regulatory requirements) due to market conditions. Depending on the percentage of securities in a particular asset class held by the Underlying Funds at any given time and the percentage of the Fund’s assets invested in various Underlying Funds, the Fund’s actual exposure to the securities in a particular asset class may vary substantially from the allocation to that asset class. There is a risk that the Manager’s evaluations and assumptions regarding asset classes or Underlying Funds may be incorrect in view of actual market conditions.
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract may be unable or unwilling to make timely principal and interest payments or to otherwise honor its obligations. Additionally, the securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.
PGIM 60/40 Allocation Fund 19
Notes to Financial Statements (unaudited) (continued)
Economic and Market Events Risk: Economic and market events risk is the risk that one or more markets in which the Portfolio invests will decline in value, including the possibility that the markets will decline sharply and unpredictably. While a Portfolio’s Manager or Subadviser(s) may make efforts to control the risks associated with market changes, and may attempt to identify changes as they occur, market environment changes can be sudden and extreme. Significant shocks to or disruptions of the financial markets or the economy, including those relating to general economic, political, or financial market conditions; significant or unexpected failures, near-failures or credit downgrades of key institutions; investor sentiment and market perceptions; unexpected changes in the prices of key commodities; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry or sector, could adversely affect the liquidity and volatility of securities held by the Portfolio. In periods of market volatility and/or declines, the Portfolio may experience high levels of shareholder redemptions, and may have to sell securities at times when it would otherwise not do so, and at unfavorable prices.
Equity and Equity-Related Securities Risks: Certain Underlying Funds invest in equity and equity-related securities. Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which an Underlying Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Fixed Income Risk: As with credit risk, market risk and interest rate risk, an Underlying 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 an Underlying Fund for redemption before it matures and the Underlying Fund may lose income.
Fund of Funds Risk: The value of an investment in the Fund will be related, to a substantial degree, to the investment performance of the Underlying Funds in which it invests. Therefore, the principal risks of investing in the Fund are closely related to the principal risks associated with these Underlying Funds and their investments. Because the Fund’s allocation among different Underlying Funds and direct investments will vary, an investment in the Fund may be subject to any and all of these risks at different times and to different degrees. Investing in an Underlying Fund will also expose the Fund to a pro rata portion of the Underlying Fund’s fees and expenses. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Fund would indirectly bear the costs of these trades without accomplishing the investment purpose.
20
Fund Rebalancing Risk: Underlying Funds may experience relatively large redemptions or investments due to a rebalancing of the Fund’s allocations. In such event, an Underlying Fund may be required to sell securities or to invest cash at a time when it is not advantageous to do so. Rebalancing may increase brokerage and/or other transaction costs of an Underlying Fund, increase the Underlying Fund’s expenses or result in the Underlying Fund’s becoming too small to be economically viable. Rebalancing may also adversely affect an Underlying Fund’s performance and thus the Fund’s performance. The impact of rebalancing is likely to be greater when the Fund purchases, redeems or invests in a substantial portion of an Underlying Fund.
The subadviser will seek to cooperate with the subadvisers of the Underlying Funds to minimize any adverse impact on the Underlying Funds. The subadvisers of the Underlying Funds may take such actions as they deem appropriate to minimize such adverse impact, considering the potential benefits of such investments to the Underlying Funds and consistent with their obligations to the Underlying Funds. Such actions may delay the rebalancing of the Fund’s investments in the event of significant market or other events that may require more rapid action.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the Prospectus expense table for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Underlying Fund securities can increase expenses.
Interest Rate Risk: The value of your 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 debt securities. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” 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 lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Investment Style Risk: Under certain market conditions, growth investments have performed better during the later stages of economic expansion and value investments have performed better during periods of economic recovery. Therefore, these investment styles may over time go in and out of favor. At times when an investment style used by an Underlying Fund is out of favor, the Fund may underperform other funds that use different investment styles.
Junk Bonds Risk: High-yield, high-risk bonds have predominantly speculative characteristics, including particularly high credit risk. Junk bonds tend to have lower market
PGIM 60/40 Allocation Fund 21
Notes to Financial Statements (unaudited) (continued)
liquidity than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly and without warning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by major investors, a high profile default or a change in the market’s psychology.
Large Capitalization Company Risk: Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the Fund’s value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
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.
Management Risk: The value of your investment may decrease if judgments by the Fund’s subadviser or the subadvisers of the Underlying Funds about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets
22
and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Market Risk: Securities markets may be volatile and the market prices of an Underlying 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 an Underlying Fund fall, the value of the Fund’s investment in the Underlying Fund will decline.
Portfolio Turnover Risk: The Fund does not intend to re-allocate assets among the Underlying Funds frequently in response to day-to-day changes in markets. Historically, however, certain Underlying Funds have actively and frequently traded their portfolio securities. High portfolio turnover results in higher transaction costs and can affect an Underlying Fund’s, and, therefore, the Fund’s, performance and can have adverse tax consequences.
10. | Recent Regulatory Developments |
Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments (the “Rule”). Other information, including financial statements, will no longer appear in the funds’ streamlined shareholder reports but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The Rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the Rule and its impact to the Fund.
PGIM 60/40 Allocation Fund 23
655 Broad Street Newark, NJ 07102
|
∎ TELEPHONE (800) 225-1852 |
∎ WEBSITE pgim.com/investments |
PROXY VOTING
The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. 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 · Stuart S. Parker · Brian K. Reid · Grace C. Torres
OFFICERS
Stuart S. Parker, President and Principal Executive Officer · Scott E. Benjamin, Vice President · Christian J. Kelly, Chief Financial Officer · Claudia DiGiacomo, Chief Legal Officer · Andrew Donohue, Chief Compliance Officer · Russ Shupak, Treasurer and Principal Accounting Officer · Kelly Florio, Anti-Money Laundering Compliance Officer · Andrew R. French, Secretary · Melissa Gonzalez, Assistant Secretary · Kelly A. Coyne, Assistant Secretary · Patrick E. McGuinness, Assistant Secretary · Debra Rubano, Assistant Secretary · George Hoyt, Assistant Secretary · Devan Goolsby, Assistant Secretary · Lana Lomuti, Assistant Treasurer · Elyse M. McLaughlin, Assistant Treasurer · Deborah Conway, Assistant Treasurer · Robert W. McCormack, Assistant Treasurer
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
SUBADVISER | PGIM Quantitative Solutions LLC | 655 Broad Street Newark, NJ 07102 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 534432 Pittsburgh, PA 15253 | ||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at pgim.com/investments 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 pgim.com/investments/resource/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 60/40 Allocation Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at 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 on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and the Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter 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 60/40 ALLOCATION FUND
SHARE CLASS | R6 | |
NASDAQ | PALDX | |
CUSIP | 74440V724 |
PGIM TARGET DATE FUNDS
(formerly known as Prudential Day One Funds)
SEMIANNUAL REPORT
JANUARY 31, 2024
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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 January 31, 2024 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. PGIM Quantitative Solutions LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), is a registered investment adviser. © 2024 Prudential Financial, Inc. and its related entities. 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 pgim.com/investments
Letter from the President
![]() | Dear Shareholder:
We hope you find the semiannual report for the PGIM Target Date Funds informative and useful. The report covers performance for the six-month period ended January 31, 2024.
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 provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is the world’s 14th-largest investment manager with more than $1.3 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President and Principal Executive Officer
PGIM Target Date Funds
March 15, 2024
PGIM Target Date Funds 3
PGIM Target Date Income Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.54 | 4.37 | 3.86 | 3.68 (12/13/2016) | ||||
Class R2 | 2.58 | 4.53 | 4.11 | 3.92 (12/13/2016) | ||||
Class R3 | 2.77 | 4.79 | 4.27 | 4.09 (12/13/2016) | ||||
Class R4 | 2.82 | 4.88 | 4.37 | 4.19 (12/13/2016) | ||||
Class R5 | 2.88 | 5.00 | 4.48 | 4.30 (12/13/2016) | ||||
Class R6 | 2.86 | 5.04 | 4.64 | 4.46 (12/13/2016) | ||||
PGIM Target Date Income Custom Benchmark | ||||||||
2.80 | 5.09 | 4.65 | 4.55 | |||||
S&P Target Date Retirement Income Index | ||||||||
3.42 | 6.50 | 4.26 | 4.34 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
4 Visit our website at pgim.com/investments
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date Income Custom Benchmark*—The PGIM Target Date Income Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® Retirement Income Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date Income Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date Income Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
PGIM Target Date Funds 5
PGIM Target Date Income Fund
Your Fund’s Performance (continued)
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date Income Custom Benchmark, or the data included therein.
**The S&P Target Date Retirement Income Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Top Largest Holdings | Asset Class | % of Net Assets | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 23.1% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 16.1% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 16.1% | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 15.7% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 6.0% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 6.0% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 4.6% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 1.2% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 1.2% |
Holdings reflect only long-term investments and are subject to change.
6 Visit our website at pgim.com/investments
PGIM Target Date 2015 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.47 | 4.56 | 4.23 | 4.12 (12/13/2016) | ||||
Class R2 | 2.62 | 4.81 | 4.49 | 4.37 (12/13/2016) | ||||
Class R3 | 2.66 | 4.95 | 4.63 | 4.53 (12/13/2016) | ||||
Class R4 | 2.76 | 5.05 | 4.74 | 4.63 (12/13/2016) | ||||
Class R5 | 2.86 | 5.15 | 4.85 | 4.75 (12/13/2016) | ||||
Class R6 | 2.99 | 5.40 | 5.03 | 4.90 (12/13/2016) | ||||
PGIM Target Date 2015 Custom Benchmark | ||||||||
2.83 | 5.35 | 5.06 | 5.04 | |||||
S&P Target Date 2015 Index | ||||||||
3.44 | 7.07 | 5.25 | 5.44 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
PGIM Target Date Funds 7
PGIM Target Date 2015 Fund
Your Fund’s Performance (continued)
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2015 Custom Benchmark*—The PGIM Target Date 2015 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2015 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2015 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2015 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
8 Visit our website at pgim.com/investments
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2015 Custom Benchmark, or the data included therein.
**The S&P Target Date 2015 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Top Largest Holdings | Asset Class | % of Net Assets | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 22.9% | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 16.4% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 16.1% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 15.5% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 6.0% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.9% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 4.9% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 1.2% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 1.2% |
Holdings reflect only long-term investments and are subject to change.
PGIM Target Date Funds 9
PGIM Target Date 2020 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.72 | 5.27 | 4.76 | 4.61 (12/13/2016) | ||||
Class R2 | 2.77 | 5.42 | 5.02 | 4.86 (12/13/2016) | ||||
Class R3 | 2.91 | 5.67 | 5.17 | 5.04 (12/13/2016) | ||||
Class R4 | 2.91 | 5.76 | 5.27 | 5.14 (12/13/2016) | ||||
Class R5 | 3.01 | 5.87 | 5.38 | 5.24 (12/13/2016) | ||||
Class R6 | 3.07 | 6.04 | 5.55 | 5.35 (12/13/2016) | ||||
PGIM Target Date 2020 Custom Benchmark | ||||||||
2.95 | 6.02 | 5.64 | 5.59 | |||||
S&P Target Date 2020 Index | ||||||||
3.51 | 7.53 | 5.54 | 5.84 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
10 Visit our website at pgim.com/investments
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2020 Custom Benchmark*—The PGIM Target Date 2020 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2020 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2020 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2020 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
PGIM Target Date Funds 11
PGIM Target Date 2020 Fund
Your Fund’s Performance (continued)
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2020 Custom Benchmark, or the data included therein.
**The S&P Target Date 2020 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Top Largest Holdings | Asset Class | % of Net Assets | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 21.7% | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 19.5% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 15.9% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 12.9% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 6.3% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 6.0% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 6.0% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 1.4% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 1.4% |
Holdings reflect only long-term investments and are subject to change.
12 Visit our website at pgim.com/investments
PGIM Target Date 2025 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.76 | 5.85 | 5.28 | 5.12 (12/13/2016) | ||||
Class R2 | 2.89 | 6.08 | 5.54 | 5.38 (12/13/2016) | ||||
Class R3 | 3.04 | 6.33 | 5.70 | 5.55 (12/13/2016) | ||||
Class R4 | 3.04 | 6.43 | 5.80 | 5.65 (12/13/2016) | ||||
Class R5 | 3.13 | 6.53 | 5.92 | 5.75 (12/13/2016) | ||||
Class R6 | 3.17 | 6.67 | 6.07 | 5.93 (12/13/2016) | ||||
PGIM Target Date 2025 Custom Benchmark | ||||||||
3.08 | 6.74 | 6.18 | 6.20 | |||||
S&P Target Date 2025 Index | ||||||||
3.49 | 7.89 | 6.33 | 6.61 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
PGIM Target Date Funds 13
PGIM Target Date 2025 Fund
Your Fund’s Performance (continued)
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2025 Custom Benchmark*—The PGIM Target Date 2025 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2025 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2025 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2025 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
14 Visit our website at pgim.com/investments
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2025 Custom Benchmark, or the data included therein.
**The S&P Target Date 2025 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Top Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 22.3% | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 19.9% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 15.1% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 11.3% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 8.0% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 6.0% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 6.0% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 1.8% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 1.7% |
Holdings reflect only long-term investments and are subject to change.
PGIM Target Date Funds 15
PGIM Target Date 2030 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.86 | 6.74 | 6.17 | 6.11 (12/13/2016) | ||||
Class R2 | 3.01 | 6.97 | 6.45 | 6.38 (12/13/2016) | ||||
Class R3 | 3.18 | 7.25 | 6.62 | 6.55 (12/13/2016) | ||||
Class R4 | 3.16 | 7.34 | 6.70 | 6.63 (12/13/2016) | ||||
Class R5 | 3.16 | 7.43 | 6.82 | 6.75 (12/13/2016) | ||||
Class R6 | 3.31 | 7.57 | 6.99 | 6.92 (12/13/2016) | ||||
PGIM Target Date 2030 Custom Benchmark | ||||||||
3.23 | 7.82 | 7.24 | 7.35 | |||||
S&P Target Date 2030 Index | ||||||||
3.60 | 9.01 | 7.17 | 7.38 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
16 Visit our website at pgim.com/investments
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2030 Custom Benchmark*—The PGIM Target Date 2030 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2030 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2030 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2030 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
PGIM Target Date Funds 17
PGIM Target Date 2030 Fund
Your Fund’s Performance (continued)
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2030 Custom Benchmark, or the data included therein.
**The S&P Target Date 2030 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 26.0% | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 18.0% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 14.7% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 9.6% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 7.7% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 6.0% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 5.8% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 2.3% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 2.3% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 1.0% |
Holdings reflect only long-term investments and are subject to change.
18 Visit our website at pgim.com/investments
PGIM Target Date 2035 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.99 | 7.90 | 7.11 | 6.86 (12/13/2016) | ||||
Class R2 | 3.14 | 8.25 | 7.39 | 7.13 (12/13/2016) | ||||
Class R3 | 3.19 | 8.29 | 7.53 | 7.29 (12/13/2016) | ||||
Class R4 | 3.19 | 8.48 | 7.63 | 7.41 (12/13/2016) | ||||
Class R5 | 3.39 | 8.59 | 7.77 | 7.51 (12/13/2016) | ||||
Class R6 | 3.35 | 8.73 | 7.91 | 7.67 (12/13/2016) | ||||
PGIM Target Date 2035 Custom Benchmark | ||||||||
3.40 | 9.25 | 8.32 | 8.36 | |||||
S&P Target Date 2035 Index | ||||||||
3.71 | 10.09 | 8.06 | 8.17 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
PGIM Target Date Funds 19
PGIM Target Date 2035 Fund
Your Fund’s Performance (continued)
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2035 Custom Benchmark*—The PGIM Target Date 2035 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2035 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2035 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2035 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
20 Visit our website at pgim.com/investments
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2035 Custom Benchmark, or the data included therein.
**The S&P Target Date 2035 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 31.7% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 12.5% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 12.5% | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 12.4% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 5.9% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.8% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 5.0% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 3.5% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 3.4% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 2.8% |
Holdings reflect only long-term investments and are subject to change.
PGIM Target Date Funds 21
PGIM Target Date 2040 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.96 | 8.54 | 7.58 | 7.38 (12/13/2016) | ||||
Class R2 | 3.11 | 8.87 | 7.85 | 7.64 (12/13/2016) | ||||
Class R3 | 3.17 | 9.02 | 8.01 | 7.80 (12/13/2016) | ||||
Class R4 | 3.17 | 9.11 | 8.11 | 7.92 (12/13/2016) | ||||
Class R5 | 3.27 | 9.30 | 8.23 | 8.03 (12/13/2016) | ||||
Class R6 | 3.32 | 9.35 | 8.38 | 8.18 (12/13/2016) | ||||
PGIM Target Date 2040 Custom Benchmark | ||||||||
3.44 | 10.22 | 8.86 | 8.94 | |||||
S&P Target Date 2040 Index | ||||||||
3.73 | 11.08 | 8.74 | 8.77 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
22 Visit our website at pgim.com/investments
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2040 Custom Benchmark*—The PGIM Target Date 2040 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2040 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2040 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2040 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
PGIM Target Date Funds 23
PGIM Target Date 2040 Fund
Your Fund’s Performance (continued)
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2040 Custom Benchmark, or the data included therein.
**The S&P Target Date 2040 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 34.7% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 16.0% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 9.9% | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 8.5% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 5.1% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 5.0% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.0% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 4.9% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 4.7% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 4.5% |
Holdings reflect only long-term investments and are subject to change.
24 Visit our website at pgim.com/investments
PGIM Target Date 2045 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.92 | 9.10 | 7.97 | 7.70 (12/13/2016) | ||||
Class R2 | 3.09 | 9.36 | 8.24 | 7.97 (12/13/2016) | ||||
Class R3 | 3.14 | 9.50 | 8.39 | 8.12 (12/13/2016) | ||||
Class R4 | 3.24 | 9.62 | 8.53 | 8.24 (12/13/2016) | ||||
Class R5 | 3.24 | 9.70 | 8.63 | 8.36 (12/13/2016) | ||||
Class R6 | 3.38 | 9.93 | 8.80 | 8.53 (12/13/2016) | ||||
PGIM Target Date 2045 Custom Benchmark | ||||||||
3.49 | 10.95 | 9.27 | 9.31 | |||||
S&P Target Date 2045 Index | ||||||||
3.70 | 11.70 | 9.16 | 9.14 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
PGIM Target Date Funds 25
PGIM Target Date 2045 Fund
Your Fund’s Performance (continued)
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2045 Custom Benchmark*—The PGIM Target Date 2045 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2045 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2045 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2045 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
26 Visit our website at pgim.com/investments
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2045 Custom Benchmark, or the data included therein.
**The S&P Target Date 2045 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 36.1% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 18.7% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 8.7% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 6.3% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 6.2% | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 5.3% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.0% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 4.9% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 4.8% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 3.9% |
Holdings reflect only long-term investments and are subject to change.
PGIM Target Date Funds 27
PGIM Target Date 2050 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.93 | 9.48 | 8.17 | 7.83 (12/13/2016) | ||||
Class R2 | 3.08 | 9.80 | 8.43 | 8.10 (12/13/2016) | ||||
Class R3 | 3.13 | 9.94 | 8.60 | 8.27 (12/13/2016) | ||||
Class R4 | 3.16 | 9.98 | 8.70 | 8.35 (12/13/2016) | ||||
Class R5 | 3.25 | 10.15 | 8.82 | 8.49 (12/13/2016) | ||||
Class R6 | 3.30 | 10.28 | 8.95 | 8.66 (12/13/2016) | ||||
PGIM Target Date 2050 Custom Benchmark | ||||||||
3.54 | 11.62 | 9.51 | 9.59 | |||||
S&P Target Date 2050 Index | ||||||||
3.68 | 11.99 | 9.36 | 9.35 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
28 Visit our website at pgim.com/investments
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2050 Custom Benchmark*—The PGIM Target Date 2050 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2050 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2050 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2050 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
PGIM Target Date Funds 29
PGIM Target Date 2050 Fund
Your Fund’s Performance (continued)
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2050 Custom Benchmark, or the data included therein.
**The S&P Target Date 2050 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | Domestic Equity | 37.4% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 21.2% | ||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | Domestic Equity | 8.0% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 7.8% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 7.7% | ||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | Domestic Equity | 5.2% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.0% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 4.0% | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 1.9% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 1.8% |
Holdings reflect only long-term investments and are subject to change.
30 Visit our website at pgim.com/investments
PGIM Target Date 2055 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.71 | 9.50 | 8.23 | 8.04 (12/13/2016) | ||||
Class R2 | 2.93 | 9.79 | 8.50 | 8.33 (12/13/2016) | ||||
Class R3 | 2.95 | 9.91 | 8.66 | 8.47 (12/13/2016) | ||||
Class R4 | 3.06 | 10.02 | 8.76 | 8.59 (12/13/2016) | ||||
Class R5 | 3.06 | 10.11 | 8.86 | 8.69 (12/13/2016) | ||||
Class R6 | 3.11 | 10.25 | 9.04 | 8.85 (12/13/2016) | ||||
PGIM Target Date 2055 Custom Benchmark | ||||||||
3.45 | 11.78 | 9.61 | 9.72 | |||||
S&P Target Date 2055 Index | ||||||||
3.69 | 11.99 | 9.42 | 9.44 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
PGIM Target Date Funds 31
PGIM Target Date 2055 Fund
Your Fund’s Performance (continued)
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2055 Custom Benchmark*—The PGIM Target Date 2055 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2055 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2055 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2055 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
32 Visit our website at pgim.com/investments
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2055 Custom Benchmark, or the data included therein.
**The S&P Target Date 2055 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Ten Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund | Domestic Equity | 37.0% | ||
PGIM Quant Solutions International Developed Markets Index Fund | International Equity | 22.9% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 8.8% | ||
PGIM Quant Solutions Mid-Cap Index Fund | Domestic Equity | 8.7% | ||
PGIM Jennison Small-Cap Core Equity Fund | Domestic Equity | 5.8% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 5.5% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.0% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 4.0% | ||
PGIM TIPS Fund (Class R6) | Fixed Income | 1.2% | ||
PGIM Core Conservative Bond Fund (Class R6) | Fixed Income | 1.0% |
Holdings reflect only long-term investments and are subject to change.
PGIM Target Date Funds 33
PGIM Target Date 2060 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class R1 | 2.72 | 9.53 | 8.33 | 8.03 (12/13/2016) | ||||
Class R2 | 2.80 | 9.76 | 8.61 | 8.29 (12/13/2016) | ||||
Class R3 | 2.87 | 9.92 | 8.77 | 8.46 (12/13/2016) | ||||
Class R4 | 2.95 | 10.00 | 8.88 | 8.57 (12/13/2016) | ||||
Class R5 | 2.98 | 10.10 | 8.98 | 8.68 (12/13/2016) | ||||
Class R6 | 3.11 | 10.33 | 9.16 | 8.84 (12/13/2016) | ||||
PGIM Target Date 2060 Custom Benchmark | ||||||||
3.39 | 11.84 | 9.71 | 9.80 | |||||
S&P Target Date 2060 Index | ||||||||
3.65 | 12.08 | 9.46 | 9.51 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
34 Visit our website at pgim.com/investments
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2060 Custom Benchmark*—The PGIM Target Date 2060 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2060 Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2060 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2060 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
PGIM Target Date Funds 35
PGIM Target Date 2060 Fund
Your Fund’s Performance (continued)
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2060 Custom Benchmark, or the data included therein.
**The S&P Target Date 2060 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 20243 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Top Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund | Domestic Equity | 36.3% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 24.6% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 9.4% | ||
PGIM Quant Solutions Mid-Cap Index Fund | Domestic Equity | 8.9% | ||
PGIM Jennison Small-Cap Core Equity Fund | Domestic Equity | 6.0% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 5.7% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.0% | ||
PGIM Quant Solutions Commodity Strategies | Fixed Income | 4.0% | ||
Fund (Class R6) |
Holdings reflect only long-term investments and are subject to change.
36 Visit our website at pgim.com/investments
PGIM Target Date 2065 Fund
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 1/31/24 | Average Annual Total Returns as of 1/31/24 | |||||
(without sales charges) | (with sales charges) | |||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Class R1 | 2.37 | 9.12 | 6.92 (12/16/2019) | |||
Class R2 | 2.43 | 9.27 | 7.16 (12/16/2019) | |||
Class R3 | 2.61 | 9.56 | 7.34 (12/16/2019) | |||
Class R4 | 2.65 | 9.70 | 7.45 (12/16/2019) | |||
Class R5 | 2.66 | 9.71 | 7.55 (12/16/2019) | |||
Class R6 | 2.77 | 9.91 | 7.71 (12/16/2019) | |||
PGIM Target Date 2065 Custom Benchmark | ||||||
3.30 | 11.85 | 7.87 | ||||
S&P Target Date 2065+ Index | ||||||
3.74 | 12.25 | 7.80 |
*Not annualized
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
PGIM Target Date Funds 37
PGIM Target Date 2065 Fund
Your Fund’s Performance (continued)
The average annual total returns take into account applicable charges and fees, which are described for each share class in the table below.
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||
Maximum initial sales charge | None | 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) | None | None | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.50% | 0.25% | 0.10% | None | None | None | ||||||
Shareholder service fee | 0.10%* | 0.10%* | 0.10%* | 0.10%* | None | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
PGIM Target Date 2065 Custom Benchmark*—The PGIM Target Date 2065 Custom Benchmark reflects the normal weighted average of the underlying funds’ stock/non-traditional assets/bond/cash allocation, as represented by the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Net Index, Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index, Bloomberg US Aggregate Bond Index, FTSE 3-Month T-Bill1, Bloomberg Commodity Index, and the FTSE EPRA NAREIT Developed Net Index1. Because the asset allocation of the Fund changes over time with the Glidepath, the custom benchmark allocations also change over time. All indices are unmanaged.
S&P Target Date® 2065+ Index**—The S&P Target Date Index series is comprised of 13 multi-asset class indices, each of which (with the exception of the S&P Target Date Retirement Income Index) corresponds to a particular retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a predetermined schedule relative to the respective target date.
*The PGIM Target Date 2065 Custom Benchmark is calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PGIM Target Date 2065 Custom Benchmark, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party
38 Visit our website at pgim.com/investments
licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PGIM Target Date 2065 Custom Benchmark, or the data included therein.
**The S&P Target Date 2065+ Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
1 Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2018.
FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®” and “FTSE Russell®” are trade mark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
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 that may be paid by an investor.
Presentation of Fund Holdings as of 1/31/24
Top Largest Holdings | Asset Class | % of Net Assets | ||
PGIM Quant Solutions Large-Cap Index Fund | Domestic Equity | 36.5% | ||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | International Equity | 24.7% | ||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | International Equity | 10.4% | ||
PGIM Quant Solutions Mid-Cap Index Fund | Domestic Equity | 9.2% | ||
PGIM Jennison Small-Cap Core Equity Fund | Domestic Equity | 6.2% | ||
PGIM Global Real Estate Fund (Class R6) | International Equity | 5.0% | ||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | Fixed Income | 4.0% | ||
PGIM Total Return Bond Fund (Class R6) | Fixed Income | 3.9% |
PGIM Target Date Funds 39
PGIM Target Date 2065 Fund
Your Fund’s Performance (continued)
Holdings reflect only long-term investments and are subject to change.
40 Visit our website at pgim.com/investments
Fees and Expenses
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 January 31, 2024. 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 and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Target Date Funds 41
Fees and Expenses (continued)
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 Target Date Income Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized Expense the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,025.40 | 1.13% | $5.75 | |||||
Hypothetical | $1,000.00 | $1,019.46 | 1.13% | $5.74 | ||||||
Class R2 | Actual | $1,000.00 | $1,025.80 | 0.88% | $4.48 | |||||
Hypothetical | $1,000.00 | $1,020.71 | 0.88% | $4.47 | ||||||
Class R3 | Actual | $1,000.00 | $1,027.70 | 0.73% | $3.72 | |||||
Hypothetical | $1,000.00 | $1,021.47 | 0.73% | $3.71 | ||||||
Class R4 | Actual | $1,000.00 | $1,028.20 | 0.63% | $3.21 | |||||
Hypothetical | $1,000.00 | $1,021.97 | 0.63% | $3.20 | ||||||
Class R5 | Actual | $1,000.00 | $1,028.80 | 0.53% | $2.70 | |||||
Hypothetical | $1,000.00 | $1,022.47 | 0.53% | $2.69 | ||||||
Class R6 | Actual | $1,000.00 | $1,028.60 | 0.38% | $1.94 | |||||
Hypothetical | $1,000.00 | $1,023.23 | 0.38% | $1.93 |
42 Visit our website at pgim.com/investments
PGIM Target Date 2015 Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized Expense the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,024.70 | 1.20% | $6.11 | |||||
Hypothetical | $1,000.00 | $1,019.10 | 1.20% | $6.09 | ||||||
Class R2 | Actual | $1,000.00 | $1,026.20 | 0.95% | $4.84 | |||||
Hypothetical | $1,000.00 | $1,020.36 | 0.95% | $4.82 | ||||||
Class R3 | Actual | $1,000.00 | $1,026.60 | 0.81% | $4.13 | |||||
Hypothetical | $1,000.00 | $1,021.06 | 0.81% | $4.12 | ||||||
Class R4 | Actual | $1,000.00 | $1,027.60 | 0.71% | $3.62 | |||||
Hypothetical | $1,000.00 | $1,021.57 | 0.71% | $3.61 | ||||||
Class R5 | Actual | $1,000.00 | $1,028.60 | 0.60% | $3.06 | |||||
Hypothetical | $1,000.00 | $1,022.12 | 0.60% | $3.05 | ||||||
Class R6 | Actual | $1,000.00 | $1,029.90 | 0.45% | $2.30 | |||||
Hypothetical | $1,000.00 | $1,022.87 | 0.45% | $2.29 | ||||||
Annualized | ||||||||||
Expense | ||||||||||
Beginning | Ending | Ratio Based on | Expenses Paid | |||||||
Account Value | Account Value | the | During the | |||||||
PGIM Target Date 2020 Fund | August 1, 2023 | January 31, 2024 | Six-Month Period | Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,027.20 | 1.12% | $5.71 | |||||
Hypothetical | $1,000.00 | $1,019.51 | 1.12% | $5.69 | ||||||
Class R2 | Actual | $1,000.00 | $1,027.70 | 0.87% | $4.43 | |||||
Hypothetical | $1,000.00 | $1,020.76 | 0.87% | $4.42 | ||||||
Class R3 | Actual | $1,000.00 | $1,029.10 | 0.72% | $3.67 | |||||
Hypothetical | $1,000.00 | $1,021.52 | 0.72% | $3.66 | ||||||
Class R4 | Actual | $1,000.00 | $1,029.10 | 0.62% | $3.16 | |||||
Hypothetical | $1,000.00 | $1,022.02 | 0.62% | $3.15 | ||||||
Class R5 | Actual | $1,000.00 | $1,030.10 | 0.52% | $2.65 | |||||
Hypothetical | $1,000.00 | $1,022.52 | 0.52% | $2.64 | ||||||
Class R6 | Actual | $1,000.00 | $1,030.70 | 0.37% | $1.89 | |||||
Hypothetical | $1,000.00 | $1,023.28 | 0.37% | $1.88 |
PGIM Target Date Funds 43
Fees and Expenses (continued)
PGIM Target Date 2025 Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized Expense the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,027.60 | 1.12% | $5.71 | |||||
Hypothetical | $1,000.00 | $1,019.51 | 1.12% | $5.69 | ||||||
Class R2 | Actual | $1,000.00 | $1,028.90 | 0.86% | $4.39 | |||||
Hypothetical | $1,000.00 | $1,020.81 | 0.86% | $4.37 | ||||||
Class R3 | Actual | $1,000.00 | $1,030.40 | 0.71% | $3.62 | |||||
Hypothetical | $1,000.00 | $1,021.57 | 0.71% | $3.61 | ||||||
Class R4 | Actual | $1,000.00 | $1,030.40 | 0.61% | $3.11 | |||||
Hypothetical | $1,000.00 | $1,022.07 | 0.61% | $3.10 | ||||||
Class R5 | Actual | $1,000.00 | $1,031.30 | 0.51% | $2.60 | |||||
Hypothetical | $1,000.00 | $1,022.57 | 0.51% | $2.59 | ||||||
Class R6 | Actual | $1,000.00 | $1,031.70 | 0.37% | $1.89 | |||||
Hypothetical | $1,000.00 | $1,023.28 | 0.37% | $1.88 | ||||||
Annualized | ||||||||||
Expense | ||||||||||
Beginning | Ending | Ratio Based on | Expenses Paid | |||||||
Account Value | Account Value | the | During the | |||||||
PGIM Target Date 2030 Fund | August 1, 2023 | January 31, 2024 | Six-Month Period | Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,028.60 | 1.11% | $5.66 | |||||
Hypothetical | $1,000.00 | $1,019.56 | 1.11% | $5.63 | ||||||
Class R2 | Actual | $1,000.00 | $1,030.10 | 0.86% | $4.39 | |||||
Hypothetical | $1,000.00 | $1,020.81 | 0.86% | $4.37 | ||||||
Class R3 | Actual | $1,000.00 | $1,031.80 | 0.66% | $3.37 | |||||
Hypothetical | $1,000.00 | $1,021.82 | 0.66% | $3.35 | ||||||
Class R4 | Actual | $1,000.00 | $1,031.60 | 0.62% | $3.17 | |||||
Hypothetical | $1,000.00 | $1,022.02 | 0.62% | $3.15 | ||||||
Class R5 | Actual | $1,000.00 | $1,031.60 | 0.51% | $2.60 | |||||
Hypothetical | $1,000.00 | $1,022.57 | 0.51% | $2.59 | ||||||
Class R6 | Actual | $1,000.00 | $1,033.10 | 0.37% | $1.89 | |||||
Hypothetical | $1,000.00 | $1,023.28 | 0.37% | $1.88 |
44 Visit our website at pgim.com/investments
PGIM Target Date 2035 Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized Expense the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,029.90 | 1.12% | $5.71 | |||||
Hypothetical | $1,000.00 | $1,019.51 | 1.12% | $5.69 | ||||||
Class R2 | Actual | $1,000.00 | $1,031.40 | 0.86% | $4.39 | |||||
Hypothetical | $1,000.00 | $1,020.81 | 0.86% | $4.37 | ||||||
Class R3 | Actual | $1,000.00 | $1,031.90 | 0.70% | $3.58 | |||||
Hypothetical | $1,000.00 | $1,021.62 | 0.70% | $3.56 | ||||||
Class R4 | Actual | $1,000.00 | $1,031.90 | 0.62% | $3.17 | |||||
Hypothetical | $1,000.00 | $1,022.02 | 0.62% | $3.15 | ||||||
Class R5 | Actual | $1,000.00 | $1,033.90 | 0.52% | $2.66 | |||||
Hypothetical | $1,000.00 | $1,022.52 | 0.52% | $2.64 | ||||||
Class R6 | Actual | $1,000.00 | $1,033.50 | 0.37% | $1.89 | |||||
Hypothetical | $1,000.00 | $1,023.28 | 0.37% | $1.88 | ||||||
Annualized | ||||||||||
Expense | ||||||||||
Beginning | Ending | Ratio Based on | Expenses Paid | |||||||
Account Value | Account Value | the | During the | |||||||
PGIM Target Date 2040 Fund | August 1, 2023 | January 31, 2024 | Six-Month Period | Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,029.60 | 1.11% | $5.66 | |||||
Hypothetical | $1,000.00 | $1,019.56 | 1.11% | $5.63 | ||||||
Class R2 | Actual | $1,000.00 | $1,031.10 | 0.86% | $4.39 | |||||
Hypothetical | $1,000.00 | $1,020.81 | 0.86% | $4.37 | ||||||
Class R3 | Actual | $1,000.00 | $1,031.70 | 0.71% | $3.63 | |||||
Hypothetical | $1,000.00 | $1,021.57 | 0.71% | $3.61 | ||||||
Class R4 | Actual | $1,000.00 | $1,031.70 | 0.61% | $3.12 | |||||
Hypothetical | $1,000.00 | $1,022.07 | 0.61% | $3.10 | ||||||
Class R5 | Actual | $1,000.00 | $1,032.70 | 0.51% | $2.61 | |||||
Hypothetical | $1,000.00 | $1,022.57 | 0.51% | $2.59 | ||||||
Class R6 | Actual | $1,000.00 | $1,033.20 | 0.37% | $1.89 | |||||
Hypothetical | $1,000.00 | $1,023.28 | 0.37% | $1.88 |
PGIM Target Date Funds 45
Fees and Expenses (continued)
PGIM Target Date 2045 Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized Expense the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,029.20 | 1.12% | $5.71 | |||||
Hypothetical | $1,000.00 | $1,019.51 | 1.12% | $5.69 | ||||||
Class R2 | Actual | $1,000.00 | $1,030.90 | 0.87% | $4.44 | |||||
Hypothetical | $1,000.00 | $1,020.76 | 0.87% | $4.42 | ||||||
Class R3 | Actual | $1,000.00 | $1,031.40 | 0.71% | $3.63 | |||||
Hypothetical | $1,000.00 | $1,021.57 | 0.71% | $3.61 | ||||||
Class R4 | Actual | $1,000.00 | $1,032.40 | 0.62% | $3.17 | |||||
Hypothetical | $1,000.00 | $1,022.02 | 0.62% | $3.15 | ||||||
Class R5 | Actual | $1,000.00 | $1,032.40 | 0.52% | $2.66 | |||||
Hypothetical | $1,000.00 | $1,022.52 | 0.52% | $2.64 | ||||||
Class R6 | Actual | $1,000.00 | $1,033.80 | 0.37% | $1.89 | |||||
Hypothetical | $1,000.00 | $1,023.28 | 0.37% | $1.88 | ||||||
Annualized | ||||||||||
Expense | ||||||||||
Beginning | Ending | Ratio Based on | Expenses Paid | |||||||
Account Value | Account Value | the | During the | |||||||
PGIM Target Date 2050 Fund | August 1, 2023 | January 31, 2024 | Six-Month Period | Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,029.30 | 1.12% | $5.71 | |||||
Hypothetical | $1,000.00 | $1,019.51 | 1.12% | $5.69 | ||||||
Class R2 | Actual | $1,000.00 | $1,030.80 | 0.87% | $4.44 | |||||
Hypothetical | $1,000.00 | $1,020.76 | 0.87% | $4.42 | ||||||
Class R3 | Actual | $1,000.00 | $1,031.30 | 0.72% | $3.68 | |||||
Hypothetical | $1,000.00 | $1,021.52 | 0.72% | $3.66 | ||||||
Class R4 | Actual | $1,000.00 | $1,031.60 | 0.62% | $3.17 | |||||
Hypothetical | $1,000.00 | $1,022.02 | 0.62% | $3.15 | ||||||
Class R5 | Actual | $1,000.00 | $1,032.50 | 0.52% | $2.66 | |||||
Hypothetical | $1,000.00 | $1,022.52 | 0.52% | $2.64 | ||||||
Class R6 | Actual | $1,000.00 | $1,033.00 | 0.38% | $1.94 | |||||
Hypothetical | $1,000.00 | $1,023.23 | 0.38% | $1.93 |
46 Visit our website at pgim.com/investments
PGIM Target Date 2055 Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized Expense the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,027.10 | 1.12% | $5.71 | |||||
Hypothetical | $1,000.00 | $1,019.51 | 1.12% | $5.69 | ||||||
Class R2 | Actual | $1,000.00 | $1,029.30 | 0.87% | $4.44 | |||||
Hypothetical | $1,000.00 | $1,020.76 | 0.87% | $4.42 | ||||||
Class R3 | Actual | $1,000.00 | $1,029.50 | 0.72% | $3.67 | |||||
Hypothetical | $1,000.00 | $1,021.52 | 0.72% | $3.66 | ||||||
Class R4 | Actual | $1,000.00 | $1,030.60 | 0.62% | $3.16 | |||||
Hypothetical | $1,000.00 | $1,022.02 | 0.62% | $3.15 | ||||||
Class R5 | Actual | $1,000.00 | $1,030.60 | 0.52% | $2.65 | |||||
Hypothetical | $1,000.00 | $1,022.52 | 0.52% | $2.64 | ||||||
Class R6 | Actual | $1,000.00 | $1,031.10 | 0.38% | $1.94 | |||||
Hypothetical | $1,000.00 | $1,023.23 | 0.38% | $1.93 | ||||||
Annualized | ||||||||||
Expense | ||||||||||
Beginning | Ending | Ratio Based on | Expenses Paid | |||||||
Account Value | Account Value | the | During the | |||||||
PGIM Target Date 2060 Fund | August 1, 2023 | January 31, 2024 | Six-Month Period | Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,027.20 | 1.15% | $5.85 | |||||
Hypothetical | $1,000.00 | $1,019.36 | 1.15% | $5.83 | ||||||
Class R2 | Actual | $1,000.00 | $1,028.00 | 0.90% | $4.58 | |||||
Hypothetical | $1,000.00 | $1,020.62 | 0.90% | $4.57 | ||||||
Class R3 | Actual | $1,000.00 | $1,028.70 | 0.75% | $3.82 | |||||
Hypothetical | $1,000.00 | $1,021.37 | 0.75% | $3.81 | ||||||
Class R4 | Actual | $1,000.00 | $1,029.50 | 0.65% | $3.31 | |||||
Hypothetical | $1,000.00 | $1,021.87 | 0.65% | $3.30 | ||||||
Class R5 | Actual | $1,000.00 | $1,029.80 | 0.55% | $2.80 | |||||
Hypothetical | $1,000.00 | $1,022.38 | 0.55% | $2.79 | ||||||
Class R6 | Actual | $1,000.00 | $1,031.10 | 0.41% | $2.09 | |||||
Hypothetical | $1,000.00 | $1,023.08 | 0.41% | $2.08 |
PGIM Target Date Funds 47
Fees and Expenses (continued)
PGIM Target Date 2065 Fund | Beginning Account Value August 1, 2023 | Ending Account Value January 31, 2024 | Annualized Expense the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class R1 | Actual | $1,000.00 | $1,023.70 | 1.68% | $8.56 | |||||
Hypothetical | $1,000.00 | $1,016.67 | 1.68% | $8.53 | ||||||
Class R2 | Actual | $1,000.00 | $1,024.30 | 1.42% | $7.24 | |||||
Hypothetical | $1,000.00 | $1,017.98 | 1.42% | $7.22 | ||||||
Class R3 | Actual | $1,000.00 | $1,026.10 | 1.26% | $6.43 | |||||
Hypothetical | $1,000.00 | $1,018.79 | 1.26% | $6.41 | ||||||
Class R4 | Actual | $1,000.00 | $1,026.50 | 1.17% | $5.98 | |||||
Hypothetical | $1,000.00 | $1,019.24 | 1.17% | $5.95 | ||||||
Class R5 | Actual | $1,000.00 | $1,026.60 | 1.07% | $5.47 | |||||
Hypothetical | $1,000.00 | $1,019.74 | 1.07% | $5.45 | ||||||
Class R6 | Actual | $1,000.00 | $1,027.70 | 0.93% | $4.76 | |||||
Hypothetical | $1,000.00 | $1,020.45 | 0.93% | $4.74 |
*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 184 days in the six-month period ended January 31, 2024, and divided by the 366 days in the Fund’s fiscal year ending July 31, 2024 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which each Fund may invest.
48 Visit our website at pgim.com/investments
PGIM Target Date Income Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 89.9% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 18.1% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 17,310 | $ | 227,802 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 81,655 | 3,057,160 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 23,374 | 228,827 | ||||||
|
| |||||||
3,513,789 | ||||||||
|
| |||||||
Fixed Income — 61.3% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 360,605 | 3,122,838 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 175,801 | 1,162,042 | ||||||
PGIM TIPS Fund (Class R6) | 528,744 | 4,494,320 | ||||||
PGIM Total Return Bond Fund (Class R6) | 259,486 | 3,124,213 | ||||||
|
| |||||||
11,903,413 | ||||||||
|
| |||||||
International Equity — 10.5% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 62,907 | 1,158,114 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 66,633 | 888,882 | ||||||
|
| |||||||
2,046,996 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $18,024,125) | 17,464,198 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 10.0% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $1,938,407) | 1,938,407 | 1,938,407 | ||||||
|
| |||||||
TOTAL INVESTMENTS 99.9% | ||||||||
(cost $19,962,532)(wa) | 19,402,605 | |||||||
Other assets in excess of liabilities 0.1% | 20,006 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 19,422,611 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
See Notes to Financial Statements.
PGIM Target Date Funds 49
PGIM Target Date Income Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Affiliated Mutual Funds | ||||||||||||
Domestic Equity | $3,513,789 | $— | $— | |||||||||
Fixed Income | 11,903,413 | — | — | |||||||||
International Equity | 2,046,996 | — | — | |||||||||
Short-Term Investment | ||||||||||||
Affiliated Mutual Fund | 1,938,407 | — | — | |||||||||
| ||||||||||||
Total | $19,402,605 | $— | $— | |||||||||
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of January 31, 2024 were as follows:
Fixed Income | 61.3 | % | ||
Domestic Equity | 18.1 |
International Equity | 10.5 | % | ||||
Short Term | 10.0 | |||||
|
| |||||
99.9 | ||||||
Other assets in excess of liabilities | 0.1 | |||||
|
| |||||
100.0 | % | |||||
|
|
See Notes to Financial Statements.
50
PGIM Target Date Income Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||
Affiliated investments (cost $19,962,532) | $ | 19,402,605 | ||||
Receivable for investments sold | 120,555 | |||||
Due from Manager | 15,857 | |||||
Receivable for Fund shares sold | 1,391 | |||||
Prepaid expenses | 7,785 | |||||
|
| |||||
Total Assets | 19,548,193 | |||||
|
| |||||
Liabilities | ||||||
Payable for investments purchased | 98,425 | |||||
Custodian and accounting fees payable | 12,662 | |||||
Audit fee payable | 9,166 | |||||
Accrued expenses and other liabilities | 2,627 | |||||
Payable for Fund shares purchased | 1,572 | |||||
Trustees’ fees payable | 775 | |||||
Affiliated transfer agent fee payable | 326 | |||||
Distribution fee payable | 29 | |||||
|
| |||||
Total Liabilities | 125,582 | |||||
|
| |||||
Net Assets | $ | 19,422,611 | ||||
|
| |||||
Net assets were comprised of: | ||||||
Shares of beneficial interest, at par | $ | 1,948 | ||||
Paid-in capital in excess of par | 20,950,165 | |||||
Total distributable earnings (loss) | (1,529,502 | ) | ||||
|
| |||||
Net assets, January 31, 2024 | $ | 19,422,611 | ||||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 51
PGIM Target Date Income Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 9.96 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 9.95 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 9.96 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 9.96 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 9.96 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 9.97 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
52
PGIM Target Date Income Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 420,571 | ||
|
| |||
Expenses | ||||
Management fee | 1,581 | |||
Distribution fee(a) | 190 | |||
Shareholder servicing fees(a) | 6 | |||
Custodian and accounting fees | 29,006 | |||
Professional fees | 17,722 | |||
Audit fee | 9,167 | |||
Registration fees(a) | 8,884 | |||
Shareholders’ reports | 5,589 | |||
Fund data services | 5,273 | |||
Trustees’ fees | 4,978 | |||
Transfer agent’s fees and expenses (including affiliated expense of $943)(a) | 2,063 | |||
Miscellaneous | 3,042 | |||
|
| |||
Total expenses | 87,501 | |||
Less: Fee waiver and/or expense reimbursement(a) | (87,354 | ) | ||
|
| |||
Net expenses | 147 | |||
|
| |||
Net investment income (loss) | 420,424 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 476,027 | |||
Net capital gain distributions received | 117,010 | |||
|
| |||
593,037 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (389,441 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 203,596 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 624,020 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||||||||
Distribution fee | 65 | 40 | 85 | — | — | — | ||||||||||||||||||||||||
Shareholder servicing fees | — | — | 6 | — | — | — | ||||||||||||||||||||||||
Registration fees | 1,431 | 1,532 | 1,431 | 1,432 | 1,432 | 1,626 | ||||||||||||||||||||||||
Transfer agent’s fees and expenses | 52 | 227 | 27 | 32 | 723 | 1,002 | ||||||||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,542 | ) | (1,832 | ) | (1,858 | ) | (1,523 | ) | (4,721 | ) | (75,878 | ) |
See Notes to Financial Statements.
PGIM Target Date Funds 53
PGIM Target Date Income Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 420,424 | $ | 1,047,058 | ||||||
Net realized gain (loss) on investment transactions | 476,027 | (442,843 | ) | |||||||
Net capital gain distributions received | 117,010 | 169,897 | ||||||||
Net change in unrealized appreciation (depreciation) on investments | (389,441 | ) | (777,325 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 624,020 | (3,213 | ) | |||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class R1 | (553 | ) | (1,612 | ) | ||||||
Class R2 | (678 | ) | (2,260 | ) | ||||||
Class R3 | (4,040 | ) | (10,642 | ) | ||||||
Class R4 | (626 | ) | (1,752 | ) | ||||||
Class R5 | (22,363 | ) | (63,374 | ) | ||||||
Class R6 | (530,810 | ) | (1,548,705 | ) | ||||||
|
|
|
| |||||||
(559,070 | ) | (1,628,345 | ) | |||||||
|
|
|
| |||||||
Fund share transactions | ||||||||||
Net proceeds from shares sold | 641,656 | 1,458,642 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 559,070 | 1,628,345 | ||||||||
Cost of shares purchased | (4,336,036 | ) | (3,389,880 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | (3,135,310 | ) | (302,893 | ) | ||||||
|
|
|
| |||||||
Total increase (decrease) | (3,070,360 | ) | (1,934,451 | ) | ||||||
Net Assets: | ||||||||||
Beginning of period | 22,492,971 | 24,427,422 | ||||||||
|
|
|
| |||||||
End of period | $ | 19,422,611 | $ | 22,492,971 | ||||||
|
|
|
|
See Notes to Financial Statements.
54
PGIM Target Date Income Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.92 | $10.64 | $12.13 | $10.94 | $10.73 | $10.59 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.38 | 0.47 | 0.15 | 0.09 | 0.20 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.10 | (0.45 | ) | (1.08 | ) | 1.23 | 0.50 | 0.25 | ||||||||||||||||||||||||
Total from investment operations | 0.25 | (0.07 | ) | (0.61 | ) | 1.38 | 0.59 | 0.45 | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.18 | ) | (0.40 | ) | (0.68 | ) | (0.13 | ) | (0.21 | ) | (0.24 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.25 | ) | (0.20 | ) | (0.06 | ) | (0.17 | ) | (0.07 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.21 | ) | (0.65 | ) | (0.88 | ) | (0.19 | ) | (0.38 | ) | (0.31 | ) | ||||||||||||||||||||
Net asset value, end of period | $9.96 | $9.92 | $10.64 | $12.13 | $10.94 | $10.73 | ||||||||||||||||||||||||||
Total Return(b): | 2.54 | % | (0.34 | )% | (5.43 | )% | 12.70 | % | 5.57 | % | 4.46 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $27 | $26 | $26 | $27 | $24 | $11 | ||||||||||||||||||||||||||
Average net assets (000) | $26 | $25 | $27 | $25 | $18 | $11 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.74 | %(d) | 0.76 | % | 0.76 | % | 0.75 | % | 0.74 | % | 0.74 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 12.68 | %(d) | 12.92 | % | 15.10 | % | 28.84 | % | 77.98 | % | 108.50 | % | ||||||||||||||||||||
Net investment income (loss) | 3.08 | %(d) | 3.88 | % | 4.09 | % | 1.33 | % | 0.89 | % | 1.92 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 29 | % | 25 | % | 62 | % | 45 | % | 65 | % | 38 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 55
PGIM Target Date Income Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.92 | $10.64 | $12.13 | $10.94 | $10.73 | $10.59 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.40 | 0.58 | 0.18 | 0.20 | 0.22 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.08 | (0.44 | ) | (1.16 | ) | 1.23 | 0.42 | 0.26 | ||||||||||||||||||||||||
Total from investment operations | 0.25 | (0.04 | ) | (0.58 | ) | 1.41 | 0.62 | 0.48 | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.19 | ) | (0.43 | ) | (0.71 | ) | (0.16 | ) | (0.24 | ) | (0.27 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.25 | ) | (0.20 | ) | (0.06 | ) | (0.17 | ) | (0.07 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.22 | ) | (0.68 | ) | (0.91 | ) | (0.22 | ) | (0.41 | ) | (0.34 | ) | ||||||||||||||||||||
Net asset value, end of period | $9.95 | $9.92 | $10.64 | $12.13 | $10.94 | $10.73 | ||||||||||||||||||||||||||
Total Return(b): | 2.58 | % | (0.08 | )% | (5.20 | )% | 12.98 | % | 5.88 | % | 4.72 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $30 | $33 | $48 | $2,123 | $1,846 | $1,345 | ||||||||||||||||||||||||||
Average net assets (000) | $32 | $37 | $1,373 | $2,453 | $1,435 | $1,036 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.49 | %(d) | 0.51 | % | 0.51 | % | 0.50 | % | 0.49 | % | 0.49 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 11.95 | %(d) | 10.74 | % | 1.28 | % | 1.37 | % | 3.26 | % | 3.89 | % | ||||||||||||||||||||
Net investment income (loss) | 3.40 | %(d) | 4.07 | % | 4.96 | % | 1.58 | % | 1.90 | % | 2.13 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 29 | % | 25 | % | 62 | % | 45 | % | 65 | % | 38 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
56
PGIM Target Date Income Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.92 | $10.65 | $12.14 | $10.94 | $10.74 | $10.60 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.42 | 0.47 | 0.19 | 0.22 | 0.24 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.10 | (0.46 | ) | (1.03 | ) | 1.24 | 0.40 | 0.25 | ||||||||||||||||||||||||
Total from investment operations | 0.27 | (0.04 | ) | (0.56 | ) | 1.43 | 0.62 | 0.49 | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.20 | ) | (0.44 | ) | (0.73 | ) | (0.17 | ) | (0.25 | ) | (0.28 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.25 | ) | (0.20 | ) | (0.06 | ) | (0.17 | ) | (0.07 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.23 | ) | (0.69 | ) | (0.93 | ) | (0.23 | ) | (0.42 | ) | (0.35 | ) | ||||||||||||||||||||
Net asset value, end of period | $9.96 | $9.92 | $10.65 | $12.14 | $10.94 | $10.74 | ||||||||||||||||||||||||||
Total Return(b): | 2.77 | % | (0.03 | )% | (5.03 | )% | 13.24 | % | 5.95 | % | 4.87 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $179 | $169 | $160 | $1,623 | $1,645 | $1,597 | ||||||||||||||||||||||||||
Average net assets (000) | $170 | $157 | $196 | $1,634 | $1,557 | $1,377 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.34 | %(d) | 0.36 | % | 0.36 | % | 0.35 | % | 0.34 | % | 0.34 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.52 | %(d) | 2.62 | % | 2.49 | % | 1.36 | % | 3.02 | % | 3.50 | % | ||||||||||||||||||||
Net investment income (loss) | 3.49 | %(d) | 4.26 | % | 4.19 | % | 1.70 | % | 2.09 | % | 2.31 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 29 | % | 25 | % | 62 | % | 45 | % | 65 | % | 38 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 57
PGIM Target Date Income Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.92 | $10.65 | $12.14 | $10.94 | $10.74 | $10.60 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.43 | 0.52 | 0.21 | 0.15 | 0.25 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.10 | (0.46 | ) | (1.07 | ) | 1.23 | 0.49 | 0.25 | ||||||||||||||||||||||||
Total from investment operations | 0.28 | (0.03 | ) | (0.55 | ) | 1.44 | 0.64 | 0.50 | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.45 | ) | (0.74 | ) | (0.18 | ) | (0.27 | ) | (0.29 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.25 | ) | (0.20 | ) | (0.06 | ) | (0.17 | ) | (0.07 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.24 | ) | (0.70 | ) | (0.94 | ) | (0.24 | ) | (0.44 | ) | (0.36 | ) | ||||||||||||||||||||
Net asset value, end of period | $9.96 | $9.92 | $10.65 | $12.14 | $10.94 | $10.74 | ||||||||||||||||||||||||||
Total Return(b): | 2.82 | % | 0.07 | % | (4.94 | )% | 13.34 | % | 5.98 | % | 5.06 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $27 | $26 | $26 | $28 | $24 | $12 | ||||||||||||||||||||||||||
Average net assets (000) | $26 | $25 | $27 | $26 | $18 | $14 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.24 | %(d) | 0.26 | % | 0.26 | % | 0.25 | % | 0.25 | % | 0.24 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 11.95 | %(d) | 12.18 | % | 14.28 | % | 26.37 | % | 76.14 | % | 84.52 | % | ||||||||||||||||||||
Net investment income (loss) | 3.58 | %(d) | 4.38 | % | 4.59 | % | 1.83 | % | 1.44 | % | 2.36 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 29 | % | 25 | % | 62 | % | 45 | % | 65 | % | 38 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
58
PGIM Target Date Income Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.92 | $10.64 | $12.14 | $10.94 | $10.74 | $10.60 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.44 | 0.53 | 0.22 | 0.02 | 0.29 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.10 | (0.45 | ) | (1.08 | ) | 1.24 | 0.63 | 0.22 | ||||||||||||||||||||||||
Total from investment operations | 0.28 | (0.01 | ) | (0.55 | ) | 1.46 | 0.65 | 0.51 | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.46 | ) | (0.75 | ) | (0.20 | ) | (0.28 | ) | (0.30 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.25 | ) | (0.20 | ) | (0.06 | ) | (0.17 | ) | (0.07 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.24 | ) | (0.71 | ) | (0.95 | ) | (0.26 | ) | (0.45 | ) | (0.37 | ) | ||||||||||||||||||||
Net asset value, end of period | $9.96 | $9.92 | $10.64 | $12.14 | $10.94 | $10.74 | ||||||||||||||||||||||||||
Total Return(b): | 2.88 | % | 0.27 | % | (4.93 | )% | 13.46 | % | 6.18 | % | 5.09 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $930 | $933 | $931 | $965 | $914 | $65 | ||||||||||||||||||||||||||
Average net assets (000) | $912 | $899 | $944 | $909 | $534 | $51 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.14 | %(d) | 0.16 | % | 0.16 | % | 0.15 | % | 0.15 | % | 0.14 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.17 | %(d) | 1.18 | % | 1.05 | % | 1.47 | % | 4.36 | % | 24.81 | % | ||||||||||||||||||||
Net investment income (loss) | 3.68 | %(d) | 4.48 | % | 4.67 | % | 1.94 | % | 0.15 | % | 2.75 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 29 | % | 25 | % | 62 | % | 45 | % | 65 | % | 38 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 59
PGIM Target Date Income Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.94 | $10.66 | $12.16 | $10.96 | $10.76 | $10.61 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.46 | (b) | 0.55 | 0.24 | 0.21 | 0.29 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.09 | (0.45 | )(c) | (1.08 | ) | 1.23 | 0.46 | 0.25 | ||||||||||||||||||||||||
Total from investment operations | 0.28 | 0.01 | (0.53 | ) | 1.47 | 0.67 | 0.54 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.22 | ) | (0.48 | ) | (0.77 | ) | (0.21 | ) | (0.30 | ) | (0.32 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.25 | ) | (0.20 | ) | (0.06 | ) | (0.17 | ) | (0.07 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.25 | ) | (0.73 | ) | (0.97 | ) | (0.27 | ) | (0.47 | ) | (0.39 | ) | ||||||||||||||||||||
Net asset value, end of period | $9.97 | $9.94 | $10.66 | $12.16 | $10.96 | $10.76 | ||||||||||||||||||||||||||
Total Return(d): | 2.86 | % | 0.43 | % | (4.78 | )% | 13.59 | % | 6.36 | % | 5.33 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $18,231 | $21,305 | $23,236 | $24,185 | $16,871 | $6,939 | ||||||||||||||||||||||||||
Average net assets (000) | $20,590 | $21,430 | $25,990 | $22,559 | $9,392 | $6,203 | ||||||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(f) | 0.00 | %(g) | 0.01 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.01 | )%(g) | 0.01 | % | 0.01 | % | (0.00 | )%(h) | (0.00 | )%(h) | (0.01 | )% | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.72 | %(g) | 0.71 | % | 0.52 | % | 0.61 | % | 1.92 | % | 2.41 | % | ||||||||||||||||||||
Net investment income (loss) | 3.86 | %(g) | 4.65 | % | 4.82 | % | 2.10 | % | 1.95 | % | 2.80 | % | ||||||||||||||||||||
Portfolio turnover rate(i) | 29 | % | 25 | % | 62 | % | 45 | % | 65 | % | 38 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
See Notes to Financial Statements.
60
PGIM Target Date Income Fund
Financial Highlights (unaudited) (continued)
(f) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(g) | Annualized. |
(h) | Amount rounds to zero. |
(i) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 61
PGIM Target Date 2015 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 90.1% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 18.8% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 9,011 | $ | 118,589 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 42,682 | 1,598,026 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 12,162 | 119,070 | ||||||
|
| |||||||
1,835,685 | ||||||||
|
| |||||||
Fixed Income — 60.5% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 174,671 | 1,512,651 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 88,474 | 584,816 | ||||||
PGIM TIPS Fund (Class R6) | 263,787 | 2,242,187 | ||||||
PGIM Total Return Bond Fund (Class R6) | 130,590 | 1,572,304 | ||||||
|
| |||||||
5,911,958 | ||||||||
|
| |||||||
International Equity — 10.8% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 31,665 | 582,955 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 35,724 | 476,555 | ||||||
|
| |||||||
1,059,510 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 8,807,153 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 10.0% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | 972,350 | 972,350 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.1% | 9,779,503 | |||||||
Liabilities in excess of other assets (0.1)% | (6,373 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 9,773,130 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
See Notes to Financial Statements.
62
PGIM Target Date 2015 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Long-Term Investments | ||||||||||||||||||||||||||||
Affiliated Mutual Funds | ||||||||||||||||||||||||||||
Domestic Equity | $ | 1,835,685 | $ | — | $ | — | ||||||||||||||||||||||
Fixed Income | 5,911,958 | — | — | |||||||||||||||||||||||||
International Equity | 1,059,510 | — | — | |||||||||||||||||||||||||
Short-Term Investment | ||||||||||||||||||||||||||||
Affiliated Mutual Fund | 972,350 | — | — | |||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total | $ | 9,779,503 | $ | — | $ | — | ||||||||||||||||||||||
|
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Fixed Income | 60.5 | % | ||
Domestic Equity | 18.8 |
International Equity | 10.8 | % | ||
Short Term | 10.0 | |||
|
| |||
100.1 | ||||
Liabilities in excess of other assets | (0.1 | ) | ||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 63
PGIM Target Date 2015 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | |||||||
Affiliated investments (cost $10,029,865) | $ | 9,779,503 | |||||
Receivable for investments sold | 52,302 | ||||||
Due from Manager | 12,839 | ||||||
Receivable for Fund shares sold | 1,731 | ||||||
Prepaid expenses | 7,884 | ||||||
|
| ||||||
Total Assets | 9,854,259 | ||||||
|
| ||||||
Liabilities | |||||||
Payable for investments purchased | 55,899 | ||||||
Custodian and accounting fees payable | 12,636 | ||||||
Audit fee payable | 9,167 | ||||||
Accrued expenses and other liabilities | 2,377 | ||||||
Trustees’ fees payable | 788 | ||||||
Affiliated transfer agent fee payable | 242 | ||||||
Distribution fee payable | 20 | ||||||
|
| ||||||
Total Liabilities | 81,129 | ||||||
|
| ||||||
Net Assets | $ | 9,773,130 | |||||
|
| ||||||
Net assets were comprised of: | |||||||
Shares of beneficial interest, at par | $ | 972 | |||||
Paid-in capital in excess of par | 10,344,882 | ||||||
Total distributable earnings (loss) | (572,724 | ) | |||||
|
| ||||||
Net assets, January 31, 2024 | $ | 9,773,130 | |||||
|
|
See Notes to Financial Statements.
64
PGIM Target Date 2015 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, ($13,341 ÷ 1,328 shares of beneficial interest issued and outstanding) | $ | 10.04 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, ($55,871 ÷ 5,557 shares of beneficial interest issued and outstanding) | $ | 10.05 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, ($13,726 ÷ 1,365 shares of beneficial interest issued and outstanding) | $ | 10.05 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, ($13,813 ÷ 1,375 shares of beneficial interest issued and outstanding) | $ | 10.04 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, ($221,020 ÷ 21,968 shares of beneficial interest issued and outstanding) | $ | 10.06 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, ($9,455,359 ÷ 940,254 shares of beneficial interest issued and outstanding) | $ | 10.06 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
PGIM Target Date Funds 65
PGIM Target Date 2015 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 182,310 | ||
|
| |||
Expenses | ||||
Management fee | 683 | |||
Distribution fee(a) | 107 | |||
Custodian and accounting fees | 28,959 | |||
Professional fees | 17,687 | |||
Audit fee | 9,167 | |||
Registration fees(a) | 8,584 | |||
Shareholders’ reports | 6,005 | |||
Fund data services | 5,273 | |||
Trustees’ fees | 4,867 | |||
Transfer agent’s fees and expenses (including affiliated expense of $664)(a) | 1,139 | |||
Miscellaneous | 3,028 | |||
|
| |||
Total expenses | 85,499 | |||
Less: Fee waiver and/or expense reimbursement(a) | (80,051 | ) | ||
|
| |||
Net expenses | 5,448 | |||
|
| |||
Net investment income (loss) | 176,862 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 524,956 | |||
Net capital gain distributions received | 54,434 | |||
|
| |||
579,390 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (478,437 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 100,953 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 277,815 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 32 | 68 | 7 | — | — | — | ||||||||||||||||||
Registration fees | 1,430 | 1,431 | 1,431 | 1,431 | 1,431 | 1,430 | ||||||||||||||||||
Transfer agent’s fees and expenses | 32 | 145 | 32 | 32 | 202 | 696 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,541 | ) | (1,905 | ) | (1,544 | ) | (1,543 | ) | (2,906 | ) | (70,612 | ) |
See Notes to Financial Statements.
66
PGIM Target Date 2015 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||||
Increase (Decrease) in Net Assets | ||||||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 176,862 | $ | 495,930 | ||||||||
Net realized gain (loss) on investment transactions | 524,956 | (94,632 | ) | |||||||||
Net capital gain distributions received | 54,434 | 94,747 | ||||||||||
Net change in unrealized appreciation (depreciation) on investments | (478,437 | ) | (482,812 | ) | ||||||||
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 277,815 | 13,233 | ||||||||||
|
|
|
| |||||||||
Dividends and Distributions | ||||||||||||
Distributions from distributable earnings | ||||||||||||
Class R1 | (322 | ) | (856 | ) | ||||||||
Class R2 | (1,479 | ) | (3,495 | ) | ||||||||
Class R3 | (382 | ) | (926 | ) | ||||||||
Class R4 | (397 | ) | (944 | ) | ||||||||
Class R5 | (6,178 | ) | (12,979 | ) | ||||||||
Class R6 | (296,655 | ) | (815,992 | ) | ||||||||
|
|
|
| |||||||||
(305,413 | ) | (835,192 | ) | |||||||||
|
|
|
| |||||||||
Fund share transactions | ||||||||||||
Net proceeds from shares sold | 99,907 | 99,864 | ||||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 305,413 | 835,192 | ||||||||||
Cost of shares purchased | (409,579 | ) | (2,150,538 | ) | ||||||||
|
|
|
| |||||||||
Net increase (decrease) in net assets from Fund share transactions | (4,259 | ) | (1,215,482 | ) | ||||||||
|
|
|
| |||||||||
Total increase (decrease) | (31,857 | ) | (2,037,441 | ) | ||||||||
Net Assets: | ||||||||||||
Beginning of period | 9,804,987 | 11,842,428 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 9,773,130 | $ | 9,804,987 | ||||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 67
PGIM Target Date 2015 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.04 | $10.80 | $12.43 | $11.08 | $10.91 | $10.86 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.38 | (b) | 0.47 | 0.15 | 0.16 | 0.19 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.10 | (0.43 | )(c) | (1.05 | ) | 1.41 | 0.42 | 0.23 | ||||||||||||||||||
Total from investment operations | 0.25 | (0.05 | ) | (0.58 | ) | 1.56 | 0.58 | 0.42 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.25 | ) | (0.46 | ) | (0.67 | ) | (0.11 | ) | (0.22 | ) | (0.23 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.25 | ) | (0.38 | ) | (0.10 | ) | (0.19 | ) | (0.14 | ) | |||||||||||||||
Total dividends and distributions | (0.25 | ) | (0.71 | ) | (1.05 | ) | (0.21 | ) | (0.41 | ) | (0.37 | ) | ||||||||||||||
Net asset value, end of period | $10.04 | $10.04 | $10.80 | $12.43 | $11.08 | $10.91 | ||||||||||||||||||||
Total Return(d): | 2.47 | % | (0.06 | )% | (5.31 | )% | 14.32 | % | 5.35 | % | 4.17 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $13 | $13 | $13 | $14 | $12 | $11 | ||||||||||||||||||||
Average net assets (000) | $13 | $13 | $13 | $13 | $12 | $11 | ||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.85 | %(f)(g) | 0.77 | %(g) | 0.76 | % | 0.75 | % | 0.74 | % | 0.73 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 24.72 | %(f) | 25.08 | % | 28.64 | % | 52.16 | % | 114.82 | % | 106.63 | % | ||||||||||||||
Net investment income (loss) | 2.95 | %(f) | 3.83 | % | 4.05 | % | 1.29 | % | 1.53 | % | 1.83 | % | ||||||||||||||
Portfolio turnover rate(h) | 29 | % | 23 | % | 43 | % | 58 | % | 75 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.05% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
68
PGIM Target Date 2015 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.06 | $10.82 | $12.46 | $11.10 | $10.92 | $10.88 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.16 | 0.40 | (b) | 0.50 | 0.18 | 0.20 | 0.21 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.10 | (0.42 | )(c) | (1.05 | ) | 1.42 | 0.41 | 0.22 | ||||||||||||||||||
Total from investment operations | 0.26 | (0.02 | ) | (0.55 | ) | 1.60 | 0.61 | 0.43 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.27 | ) | (0.49 | ) | (0.71 | ) | (0.14 | ) | (0.24 | ) | (0.25 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.25 | ) | (0.38 | ) | (0.10 | ) | (0.19 | ) | (0.14 | ) | |||||||||||||||
Total dividends and distributions | (0.27 | ) | (0.74 | ) | (1.09 | ) | (0.24 | ) | (0.43 | ) | (0.39 | ) | ||||||||||||||
Net asset value, end of period | $10.05 | $10.06 | $10.82 | $12.46 | $11.10 | $10.92 | ||||||||||||||||||||
Total Return(d): | 2.62 | % | 0.21 | % | (5.05 | )% | 14.57 | % | 5.62 | % | 4.34 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $56 | $54 | $51 | $50 | $42 | $12 | ||||||||||||||||||||
Average net assets (000) | $54 | $50 | $51 | $46 | $37 | $13 | ||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.61 | %(f)(g) | 0.52 | %(g) | 0.51 | % | 0.50 | % | 0.49 | % | 0.48 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 7.69 | %(f) | 7.86 | % | 8.87 | % | 15.87 | % | 37.60 | % | 92.94 | % | ||||||||||||||
Net investment income (loss) | 3.19 | %(f) | 4.05 | % | 4.28 | % | 1.54 | % | 1.85 | % | 1.94 | % | ||||||||||||||
Portfolio turnover rate(h) | 29 | % | 23 | % | 43 | % | 58 | % | 75 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.05% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 69
PGIM Target Date 2015 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.07 | $10.83 | $12.47 | $11.11 | $10.93 | $10.89 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.42 | (b) | 0.52 | 0.20 | 0.21 | 0.24 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.10 | (0.43 | )(c) | (1.06 | ) | 1.41 | 0.42 | 0.21 | ||||||||||||||||||||
Total from investment operations | 0.27 | (0.01 | ) | (0.54 | ) | 1.61 | 0.63 | 0.45 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.29 | ) | (0.50 | ) | (0.72 | ) | (0.15 | ) | (0.26 | ) | (0.27 | ) | ||||||||||||||||
Distributions from net realized gains | - | (0.25 | ) | (0.38 | ) | (0.10 | ) | (0.19 | ) | (0.14 | ) | |||||||||||||||||
Total dividends and distributions | (0.29 | ) | (0.75 | ) | (1.10 | ) | (0.25 | ) | (0.45 | ) | (0.41 | ) | ||||||||||||||||
Net asset value, end of period | $10.05 | $10.07 | $10.83 | $12.47 | $11.11 | $10.93 | ||||||||||||||||||||||
Total Return(d): | 2.66 | % | 0.38 | % | (4.91 | )% | 14.71 | % | 5.84 | % | 4.50 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $14 | $13 | $13 | $14 | $12 | $12 | ||||||||||||||||||||||
Average net assets (000) | $13 | $13 | $14 | $13 | $12 | $11 | ||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.46 | %(f)(g) | 0.37 | %(g) | 0.36 | % | 0.35 | % | 0.34 | % | 0.33 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 23.73 | %(f) | 24.13 | % | 27.69 | % | 50.95 | % | 113.01 | % | 105.36 | % | ||||||||||||||||
Net investment income (loss) | 3.34 | %(f) | 4.22 | % | 4.45 | % | 1.69 | % | 1.93 | % | 2.23 | % | ||||||||||||||||
Portfolio turnover rate(h) | 29 | % | 23 | % | 43 | % | 58 | % | 75 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.06% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
70
PGIM Target Date 2015 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.06 | $10.82 | $12.46 | $11.11 | $10.93 | $10.88 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.43 | 0.53 | 0.21 | 0.22 | 0.30 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.11 | (0.43 | ) | (1.05 | ) | 1.41 | 0.42 | 0.17 | ||||||||||||||||||||
Total from investment operations | 0.28 | - | (b) | (0.52 | ) | 1.62 | 0.64 | 0.47 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.51 | ) | (0.74 | ) | (0.17 | ) | (0.27 | ) | (0.28 | ) | ||||||||||||||||
Distributions from net realized gains | - | (0.25 | ) | (0.38 | ) | (0.10 | ) | (0.19 | ) | (0.14 | ) | |||||||||||||||||
Total dividends and distributions | (0.30 | ) | (0.76 | ) | (1.12 | ) | (0.27 | ) | (0.46 | ) | (0.42 | ) | ||||||||||||||||
Net asset value, end of period | $10.04 | $10.06 | $10.82 | $12.46 | $11.11 | $10.93 | ||||||||||||||||||||||
Total Return(c): | 2.76 | % | 0.48 | % | (4.90 | )% | 14.82 | % | 5.97 | % | 4.62 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $14 | $13 | $13 | $14 | $12 | $12 | ||||||||||||||||||||||
Average net assets (000) | $13 | $13 | $14 | $13 | $12 | $44 | ||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.36 | %(e)(f) | 0.27 | %(f) | 0.26 | % | 0.25 | % | 0.24 | % | 0.23 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 23.49 | %(e) | 23.90 | % | 27.47 | % | 50.67 | % | 112.64 | % | 28.32 | % | ||||||||||||||||
Net investment income (loss) | 3.44 | %(e) | 4.32 | % | 4.55 | % | 1.79 | % | 2.03 | % | 2.82 | % | ||||||||||||||||
Portfolio turnover rate(g) | 29 | % | 23 | % | 43 | % | 58 | % | 75 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.06% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 71
PGIM Target Date 2015 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.08 | $10.85 | $12.49 | $11.13 | $10.95 | $10.90 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.44 | 0.51 | 0.22 | 0.01 | 0.26 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.11 | (0.44 | ) | (1.02 | ) | 1.42 | 0.64 | 0.22 | ||||||||||||||||||
Total from investment operations | 0.29 | - | (b) | (0.51 | ) | 1.64 | 0.65 | 0.48 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.31 | ) | (0.52 | ) | (0.75 | ) | (0.18 | ) | (0.28 | ) | (0.29 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.25 | ) | (0.38 | ) | (0.10 | ) | (0.19 | ) | (0.14 | ) | |||||||||||||||
Total dividends and distributions | (0.31 | ) | (0.77 | ) | (1.13 | ) | (0.28 | ) | (0.47 | ) | (0.43 | ) | ||||||||||||||
Net asset value, end of period | $10.06 | $10.08 | $10.85 | $12.49 | $11.13 | $10.95 | ||||||||||||||||||||
Total Return(c) : | 2.86 | % | 0.50 | % | (4.70 | )% | 14.91 | % | 6.03 | % | 4.82 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $221 | $180 | $175 | $133 | $256 | $40 | ||||||||||||||||||||
Average net assets (000) | $192 | $179 | $166 | $199 | $142 | $28 | ||||||||||||||||||||
Ratios to average net assets(d) : | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.26 | %(e)(f) | 0.17 | %(f) | 0.16 | % | 0.15 | % | 0.14 | % | 0.13 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 3.27 | %(e) | 3.28 | % | 3.36 | % | 4.45 | % | 10.96 | % | 43.44 | % | ||||||||||||||
Net investment income (loss) | 3.54 | %(e) | 4.39 | % | 4.45 | % | 1.90 | % | 0.11 | % | 2.44 | % | ||||||||||||||
Portfolio turnover rate(g) | 29 | % | 23 | % | 43 | % | 58 | % | 75 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.05% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
72
PGIM Target Date 2015 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.08 | $10.85 | $12.49 | $11.13 | $10.95 | $10.90 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.46 | 0.56 | 0.24 | 0.24 | 0.28 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.12 | (0.44 | ) | (1.05 | ) | 1.41 | 0.43 | 0.22 | ||||||||||||||||||
Total from investment operations | 0.30 | 0.02 | (0.49 | ) | 1.65 | 0.67 | 0.50 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.32 | ) | (0.54 | ) | (0.77 | ) | (0.19 | ) | (0.30 | ) | (0.31 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.25 | ) | (0.38 | ) | (0.10 | ) | (0.19 | ) | (0.14 | ) | |||||||||||||||
Total dividends and distributions | (0.32 | ) | (0.79 | ) | (1.15 | ) | (0.29 | ) | (0.49 | ) | (0.45 | ) | ||||||||||||||
Net asset value, end of period | $10.06 | $10.08 | $10.85 | $12.49 | $11.13 | $10.95 | ||||||||||||||||||||
Total Return(b) : | 2.99 | % | 0.66 | % | (4.57 | )% | 15.07 | % | 6.19 | % | 4.89 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $9,455 | $9,531 | $11,577 | $14,970 | $12,049 | $11,081 | ||||||||||||||||||||
Average net assets (000) | $9,258 | $10,443 | $13,808 | $15,418 | $12,078 | $9,955 | ||||||||||||||||||||
Ratios to average net assets(c) : | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.11 | %(e)(f) | 0.02 | %(f) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | 0.11 | %(e)(f) | 0.02 | %(f) | 0.01 | % | (0.00 | )%(g) | (0.01 | )% | (0.02 | )% | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.63 | %(e) | 1.47 | % | 1.02 | % | 1.00 | % | 1.72 | % | 2.04 | % | ||||||||||||||
Net investment income (loss) | 3.69 | %(e) | 4.64 | % | 4.80 | % | 2.05 | % | 2.23 | % | 2.58 | % | ||||||||||||||
Portfolio turnover rate(h) | 29 | % | 23 | % | 43 | % | 58 | % | 75 | % | 30 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.05% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | Amount rounds to zero. |
See Notes to Financial Statements.
PGIM Target Date Funds 73
PGIM Target Date 2015 Fund
Financial Highlights (unaudited) (continued)
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
74
PGIM Target Date 2020 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 91.1% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 22.3% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 38,189 | $ | 502,565 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 182,114 | 6,818,360 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 51,565 | 504,821 | ||||||
|
| |||||||
7,825,746 | ||||||||
|
| |||||||
Fixed Income — 56.5% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 523,068 | 4,529,772 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 318,761 | 2,107,008 | ||||||
PGIM TIPS Fund (Class R6) | 900,341 | 7,652,896 | ||||||
PGIM Total Return Bond Fund (Class R6) | 464,609 | 5,593,895 | ||||||
|
| |||||||
19,883,571 | ||||||||
|
| |||||||
International Equity — 12.3% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 114,063 | 2,099,899 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 168,096 | 2,242,398 | ||||||
|
| |||||||
4,342,297 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $32,312,572) | 32,051,614 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 8.8% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $3,086,693) | 3,086,693 | 3,086,693 | ||||||
|
| |||||||
TOTAL INVESTMENTS 99.9% | ||||||||
(cost $35,399,265)(wa) | 35,138,307 | |||||||
Other assets in excess of liabilities 0.1% | 41,514 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 35,179,821 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
See Notes to Financial Statements.
PGIM Target Date Funds 75
PGIM Target Date 2020 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
Affiliated Mutual Funds | |||||||||||||||
Domestic Equity | $ | 7,825,746 | $— | $— | |||||||||||
Fixed Income | 19,883,571 | — | — | ||||||||||||
International Equity | 4,342,297 | — | — | ||||||||||||
Short-Term Investment | |||||||||||||||
Affiliated Mutual Fund | 3,086,693 | — | — | ||||||||||||
|
|
|
|
|
| ||||||||||
Total | $ | 35,138,307 | $— | $— | |||||||||||
|
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of January 31, 2024 were as follows:
Fixed Income | 56.5 | % | ||
Domestic Equity | 22.3 |
International Equity | 12.3 | % | ||
Short Term | 8.8 | |||
|
| |||
99.9 | ||||
Other assets in excess of liabilities | 0.1 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
76
PGIM Target Date 2020 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||
Affiliated investments (cost $35,399,265) | $ | 35,138,307 | ||||
Receivable for investments sold | 243,016 | |||||
Due from Manager | 18,042 | |||||
Receivable for Fund shares sold | 8,575 | |||||
Prepaid expenses | 866 | |||||
|
| |||||
Total Assets | 35,408,806 | |||||
|
| |||||
Liabilities | ||||||
Payable for investments purchased | 209,335 | |||||
Custodian and accounting fees payable | 12,712 | |||||
Accrued expenses and other liabilities | 5,079 | |||||
Trustees’ fees payable | 756 | |||||
Payable for Fund shares purchased | 728 | |||||
Affiliated transfer agent fee payable | 275 | |||||
Distribution fee payable | 100 | |||||
|
| |||||
Total Liabilities | 228,985 | |||||
|
| |||||
Net Assets | $ | 35,179,821 | ||||
|
| |||||
Net assets were comprised of: | ||||||
Shares of beneficial interest, at par | $ | 3,429 | ||||
Paid-in capital in excess of par | 36,481,053 | |||||
Total distributable earnings (loss) | (1,304,661 | ) | ||||
|
| |||||
Net assets, January 31, 2024 | $ | 35,179,821 | ||||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 77
PGIM Target Date 2020 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.28 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.28 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.30 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.30 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.30 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.26 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
78
PGIM Target Date 2020 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss)
| ||||
Affiliated dividend income | $ | 739,832 | ||
|
| |||
Expenses | ||||
Management fee | 2,865 | |||
Distribution fee(a) | 601 | |||
Shareholder servicing fees(a) | 34 | |||
Custodian and accounting fees | 29,125 | |||
Professional fees | 17,607 | |||
Registration fees(a) | 9,463 | |||
Audit fee | 9,167 | |||
Shareholders’ reports | 5,860 | |||
Fund data services | 5,273 | |||
Trustees’ fees | 5,056 | |||
Transfer agent’s fees and expenses (including affiliated expense of $789)(a) | 3,258 | |||
Miscellaneous | 3,124 | |||
|
| |||
Total expenses | 91,433 | |||
Less: Fee waiver and/or expense reimbursement(a) | (90,664 | ) | ||
|
| |||
Net expenses | 769 | |||
|
| |||
Net investment income (loss) | 739,063 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 2,206,146 | |||
Net capital gain distributions received | 260,466 | |||
|
| |||
2,466,612 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (1,998,993 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 467,619 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,206,682 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 33 | 81 | 487 | — | — | — | ||||||||||||||||||
Shareholder servicing fees | — | — | 34 | — | — | — | ||||||||||||||||||
Registration fees | 1,460 | 2,063 | 1,460 | 1,460 | 1,460 | 1,560 | ||||||||||||||||||
Transfer agent’s fees and expenses | 40 | 133 | 69 | 32 | 2,106 | 878 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,511 | ) | (2,249 | ) | (2,347 | ) | (1,503 | ) | (7,289 | ) | (75,765 | ) |
See Notes to Financial Statements.
PGIM Target Date Funds 79
PGIM Target Date 2020 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 739,063 | $ | 1,971,451 | ||||||
Net realized gain (loss) on investment transactions | 2,206,146 | (435,601 | ) | |||||||
Net capital gain distributions received | 260,466 | 452,708 | ||||||||
Net change in unrealized appreciation (depreciation) on investments | (1,998,993 | ) | (1,722,015 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 1,206,682 | 266,543 | ||||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class R1 | (430 | ) | (976 | ) | ||||||
Class R2 | (2,324 | ) | (6,256 | ) | ||||||
Class R3 | (35,797 | ) | (84,476 | ) | ||||||
Class R4 | (510 | ) | (1,068 | ) | ||||||
Class R5 | (104,387 | ) | (235,551 | ) | ||||||
Class R6 | (1,427,182 | ) | (3,469,557 | ) | ||||||
|
|
|
| |||||||
(1,570,630 | ) | (3,797,884 | ) | |||||||
|
|
|
| |||||||
Fund share transactions | ||||||||||
Net proceeds from shares sold | 602,666 | 1,394,979 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,570,630 | 3,797,884 | ||||||||
Cost of shares purchased | (7,950,989 | ) | (11,215,446 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | (5,777,693 | ) | (6,022,583 | ) | ||||||
|
|
|
| |||||||
Total increase (decrease) | (6,141,641 | ) | (9,553,924 | ) | ||||||
Net Assets: | ||||||||||
Beginning of period | 41,321,462 | 50,875,386 | ||||||||
|
|
|
| |||||||
End of period | $ | 35,179,821 | $ | 41,321,462 | ||||||
|
|
|
|
See Notes to Financial Statements.
80
PGIM Target Date 2020 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.33 | $11.12 | $12.82 | $11.27 | $11.09 | $10.98 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.37 | 0.47 | 0.15 | 0.16 | 0.19 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.13 | (0.35 | ) | (1.08 | ) | 1.63 | 0.44 | 0.23 | ||||||||||||||||||||||||
Total from investment operations | 0.28 | 0.02 | (0.61 | ) | 1.78 | 0.60 | 0.42 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.29 | ) | (0.41 | ) | (0.72 | ) | (0.12 | ) | (0.21 | ) | (0.21 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.40 | ) | (0.37 | ) | (0.11 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.33 | ) | (0.81 | ) | (1.09 | ) | (0.23 | ) | (0.42 | ) | (0.31 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.28 | $10.33 | $11.12 | $12.82 | $11.27 | $11.09 | ||||||||||||||||||||||||||
Total Return(b): | 2.72 | % | 0.72 | % | (5.37 | )% | 15.93 | % | 5.35 | % | 4.19 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $14 | $13 | $13 | $14 | $12 | $12 | ||||||||||||||||||||||||||
Average net assets (000) | $13 | $13 | $14 | $13 | $12 | $11 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.73 | %(d) | 0.76 | % | 0.76 | % | 0.75 | % | 0.74 | % | 0.74 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 23.42 | %(d) | 23.81 | % | 27.64 | % | 51.00 | % | 113.14 | % | 105.39 | % | ||||||||||||||||||||
Net investment income (loss) | 2.96 | %(d) | 3.64 | % | 3.94 | % | 1.23 | % | 1.46 | % | 1.74 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 34 | % | 24 | % | 45 | % | 49 | % | 61 | % | 33 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 81
PGIM Target Date 2020 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.35 | $11.14 | $12.83 | $11.28 | $11.11 | $10.99 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.42 | 0.57 | 0.18 | 0.18 | 0.22 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.12 | (0.37 | ) | (1.14 | ) | 1.62 | 0.44 | 0.23 | ||||||||||||||||||||||||
Total from investment operations | 0.29 | 0.05 | (0.57 | ) | 1.80 | 0.62 | 0.45 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.32 | ) | (0.44 | ) | (0.75 | ) | (0.14 | ) | (0.24 | ) | (0.23 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.40 | ) | (0.37 | ) | (0.11 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.36 | ) | (0.84 | ) | (1.12 | ) | (0.25 | ) | (0.45 | ) | (0.33 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.28 | $10.35 | $11.14 | $12.83 | $11.28 | $11.11 | ||||||||||||||||||||||||||
Total Return(b): | 2.77 | % | 0.94 | % | (5.05 | )% | 16.19 | % | 5.59 | % | 4.47 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $74 | $58 | $55 | $5,742 | $4,355 | $3,446 | ||||||||||||||||||||||||||
Average net assets (000) | $64 | $70 | $3,140 | $4,596 | $3,904 | $2,456 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.48 | %(d) | 0.51 | % | 0.51 | % | 0.50 | % | 0.49 | % | 0.49 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 7.47 | %(d) | 6.89 | % | 0.83 | % | 0.88 | % | 1.27 | % | 1.51 | % | ||||||||||||||||||||
Net investment income (loss) | 3.25 | %(d) | 4.07 | % | 4.69 | % | 1.49 | % | 1.61 | % | 2.02 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 34 | % | 24 | % | 45 | % | 49 | % | 61 | % | 33 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
82
PGIM Target Date 2020 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.37 | $11.17 | $12.86 | $11.30 | $11.13 | $11.01 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.43 | 0.52 | 0.20 | 0.21 | 0.25 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.13 | (0.37 | ) | (1.07 | ) | 1.63 | 0.42 | 0.22 | ||||||||||||||||||||||||
Total from investment operations | 0.30 | 0.06 | (0.55 | ) | 1.83 | 0.63 | 0.47 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.33 | ) | (0.46 | ) | (0.77 | ) | (0.16 | ) | (0.25 | ) | (0.25 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.40 | ) | (0.37 | ) | (0.11 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.37 | ) | (0.86 | ) | (1.14 | ) | (0.27 | ) | (0.46 | ) | (0.35 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.30 | $10.37 | $11.17 | $12.86 | $11.30 | $11.13 | ||||||||||||||||||||||||||
Total Return(b) : | 2.91 | % | 1.07 | % | (4.89 | )% | 16.41 | % | 5.73 | % | 4.63 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $922 | $999 | $1,099 | $1,844 | $1,541 | $1,072 | ||||||||||||||||||||||||||
Average net assets (000) | $970 | $1,002 | $1,228 | $1,655 | $1,294 | $1,066 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.33 | %(d) | 0.36 | % | 0.36 | % | 0.35 | % | 0.34 | % | 0.34 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.81 | %(d) | 0.75 | % | 0.65 | % | 0.97 | % | 1.80 | % | 1.99 | % | ||||||||||||||||||||
Net investment income (loss) | 3.40 | %(d) | 4.15 | % | 4.37 | % | 1.63 | % | 1.87 | % | 2.28 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 34 | % | 24 | % | 45 | % | 49 | % | 61 | % | 33 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 83
PGIM Target Date 2020 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.38 | $11.18 | $12.87 | $11.31 | $11.13 | $11.03 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.42 | 0.53 | 0.21 | 0.21 | 0.28 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.12 | (0.35 | ) | (1.06 | ) | 1.63 | 0.44 | 0.18 | ||||||||||||||||||||||||
Total from investment operations | 0.30 | 0.07 | (0.53 | ) | 1.84 | 0.65 | 0.46 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.34 | ) | (0.47 | ) | (0.79 | ) | (0.17 | ) | (0.26 | ) | (0.26 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.40 | ) | (0.37 | ) | (0.11 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.38 | ) | (0.87 | ) | (1.16 | ) | (0.28 | ) | (0.47 | ) | (0.36 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.30 | $10.38 | $11.18 | $12.87 | $11.31 | $11.13 | ||||||||||||||||||||||||||
Total Return(b) : | 2.91 | % | 1.17 | % | (4.79 | )% | 16.50 | % | 5.82 | % | 4.64 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $15 | $14 | $14 | $14 | $12 | $12 | ||||||||||||||||||||||||||
Average net assets (000) | $14 | $13 | $14 | $13 | $12 | $37 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.23 | %(d) | 0.26 | % | 0.26 | % | 0.25 | % | 0.24 | % | 0.24 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 21.90 | %(d) | 22.64 | % | 26.44 | % | 49.43 | % | 110.87 | % | 31.79 | % | ||||||||||||||||||||
Net investment income (loss) | 3.45 | %(d) | 4.13 | % | 4.44 | % | 1.73 | % | 1.95 | % | 2.61 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 34 | % | 24 | % | 45 | % | 49 | % | 61 | % | 33 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
84
PGIM Target Date 2020 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.38 | $11.18 | $12.88 | $11.32 | $11.14 | $11.03 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.44 | 0.55 | 0.22 | 0.24 | 0.25 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.13 | (0.36 | ) | (1.08 | ) | 1.63 | 0.42 | 0.23 | ||||||||||||||||||||||||
Total from investment operations | 0.31 | 0.08 | (0.53 | ) | 1.85 | 0.66 | 0.48 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.35 | ) | (0.48 | ) | (0.80 | ) | (0.18 | ) | (0.27 | ) | (0.27 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.40 | ) | (0.37 | ) | (0.11 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.39 | ) | (0.88 | ) | (1.17 | ) | (0.29 | ) | (0.48 | ) | (0.37 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.30 | $10.38 | $11.18 | $12.88 | $11.32 | $11.14 | ||||||||||||||||||||||||||
Total Return(b): | 3.01 | % | 1.28 | % | (4.77 | )% | 16.60 | % | 6.03 | % | 4.75 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,815 | $2,923 | $2,967 | $3,585 | $3,624 | $3,962 | ||||||||||||||||||||||||||
Average net assets (000) | $2,835 | $2,874 | $3,448 | $3,427 | $3,783 | $3,807 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.13 | %(d) | 0.16 | % | 0.16 | % | 0.15 | % | 0.14 | % | 0.14 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.64 | %(d) | 0.62 | % | 0.50 | % | 0.58 | % | 0.92 | % | 0.99 | % | ||||||||||||||||||||
Net investment income (loss) | 3.59 | %(d) | 4.24 | % | 4.58 | % | 1.81 | % | 2.22 | % | 2.34 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 34 | % | 24 | % | 45 | % | 49 | % | 61 | % | 33 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 85
PGIM Target Date 2020 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.35 | $11.15 | $12.84 | $11.28 | $11.11 | $11.00 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.45 | 0.56 | 0.24 | 0.23 | 0.27 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.13 | (0.35 | ) | (1.06 | ) | 1.63 | 0.44 | 0.23 | ||||||||||||||||||||||||
Total from investment operations | 0.32 | 0.10 | (0.50 | ) | 1.87 | 0.67 | 0.50 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.37 | ) | (0.50 | ) | (0.82 | ) | (0.20 | ) | (0.29 | ) | (0.29 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.40 | ) | (0.37 | ) | (0.11 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.41 | ) | (0.90 | ) | (1.19 | ) | (0.31 | ) | (0.50 | ) | (0.39 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.26 | $10.35 | $11.15 | $12.84 | $11.28 | $11.11 | ||||||||||||||||||||||||||
Total Return(b) : | 3.07 | % | 1.46 | % | (4.56 | )% | 16.82 | % | 6.10 | % | 4.93 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $31,340 | $37,314 | $46,728 | $58,602 | $49,000 | $35,018 | ||||||||||||||||||||||||||
Average net assets (000) | $35,580 | $40,751 | $54,565 | $59,237 | $39,274 | $30,081 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.00 | %(e) | 0.01 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.02 | )%(e) | 0.01 | % | 0.01 | % | (0.00 | )%(f) | (0.01 | )% | (0.01 | )% | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.40 | %(e) | 0.37 | % | 0.25 | % | 0.25 | % | 0.46 | % | 0.58 | % | ||||||||||||||||||||
Net investment income (loss) | 3.75 | %(e) | 4.43 | % | 4.71 | % | 1.98 | % | 2.11 | % | 2.54 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 34 | % | 24 | % | 45 | % | 49 | % | 61 | % | 33 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | Amount rounds to zero. |
See Notes to Financial Statements.
86
PGIM Target Date 2020 Fund
Financial Highlights (unaudited) (continued)
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 87
PGIM Target Date 2025 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 92.1% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 25.8% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 64,135 | $ | 844,015 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 288,315 | 10,794,524 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 86,604 | 847,852 | ||||||
|
| |||||||
12,486,391 | ||||||||
|
| |||||||
Fixed Income — 52.3% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 630,412 | 5,459,365 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 439,060 | 2,902,187 | ||||||
PGIM TIPS Fund (Class R6) | 1,136,784 | 9,662,665 | ||||||
PGIM Total Return Bond Fund (Class R6) | 607,551 | 7,314,908 | ||||||
|
| |||||||
25,339,125 | ||||||||
|
| |||||||
International Equity — 14.0% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 157,130 | 2,892,767 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 290,171 | 3,870,880 | ||||||
|
| |||||||
6,763,647 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $44,356,349) | 44,589,163 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 7.9% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $3,810,346) | 3,810,346 | 3,810,346 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | ||||||||
(cost $48,166,695)(wa) | 48,399,509 | |||||||
Other assets in excess of liabilities 0.0% | 13,189 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 48,412,698 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
See Notes to Financial Statements.
88
PGIM Target Date 2025 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
Affiliated Mutual Funds | |||||||||||||||
Domestic Equity. | $ | 12,486,391 | $— | $— | |||||||||||
Fixed Income. | 25,339,125 | — | — | ||||||||||||
International Equity | 6,763,647 | — | — | ||||||||||||
Short-Term Investment | |||||||||||||||
Affiliated Mutual Fund | 3,810,346 | — | — | ||||||||||||
|
|
|
|
|
|
|
| ||||||||
Total | $48,399,509 | $— | $— | ||||||||||||
|
|
|
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of January 31, 2024 were as follows:
Fixed Income | 52.3 | % | ||
Domestic Equity | 25.8 |
International Equity | 14.0 | % | ||
Short Term | 7.9 | |||
|
| |||
100.0 | ||||
Other assets in excess of liabilities | 0.0 | * | ||
|
| |||
100.0 | % | |||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
PGIM Target Date Funds 89
PGIM Target Date 2025 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||
Affiliated investments (cost $48,166,695) | $ | 48,399,509 | ||||
Receivable for investments sold | 321,879 | |||||
Receivable for Fund shares sold | 21,690 | |||||
Due from Manager | 19,600 | |||||
Prepaid expenses | 864 | |||||
|
| |||||
Total Assets | 48,763,542 | |||||
|
| |||||
Liabilities | ||||||
Payable for investments purchased | 331,271 | |||||
Accrued expenses and other liabilities | 16,983 | |||||
Payable for Fund shares purchased | 1,210 | |||||
Trustees’ fees payable | 889 | |||||
Affiliated transfer agent fee payable | 406 | |||||
Distribution fee payable | 85 | |||||
|
| |||||
Total Liabilities | 350,844 | |||||
|
| |||||
Net Assets | $ | 48,412,698 | ||||
|
| |||||
Net assets were comprised of: | ||||||
Shares of beneficial interest, at par | $ | 4,551 | ||||
Paid-in capital in excess of par | 49,681,924 | |||||
Total distributable earnings (loss) | (1,273,777 | ) | ||||
|
| |||||
Net assets, January 31, 2024 | $ | 48,412,698 | ||||
|
|
See Notes to Financial Statements.
90
PGIM Target Date 2025 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.60 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.61 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.62 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.62 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.62 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 10.64 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
PGIM Target Date Funds 91
PGIM Target Date 2025 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 1,047,828 | ||
|
| |||
Expenses | ||||
Management fee | 4,183 | |||
Distribution fee(a) | 470 | |||
Shareholder servicing fees(a) | 22 | |||
Custodian and accounting fees | 28,983 | |||
Professional fees | 17,792 | |||
Audit fee | 9,167 | |||
Registration fees(a) | 8,865 | |||
Shareholders’ reports | 6,017 | |||
Trustees’ fees | 5,362 | |||
Fund data services | 5,273 | |||
Transfer agent’s fees and expenses (including affiliated expense of $1,143)(a) | 2,367 | |||
Miscellaneous | 3,122 | |||
|
| |||
Total expenses | 91,623 | |||
Less: Fee waiver and/or expense reimbursement(a) | (95,198 | ) | ||
|
| |||
Net expenses | (3,575 | ) | ||
|
| |||
Net investment income (loss) | 1,051,403 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 3,345,015 | |||
Net capital gain distributions received | 430,851 | |||
|
| |||
3,775,866 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (3,134,971 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 640,895 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,692,298 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||||||||
Distribution fee | 34 | 204 | 232 | — | — | — | ||||||||||||||||||||||||
Shareholder servicing fees | — | — | 15 | 7 | — | — | ||||||||||||||||||||||||
Registration fees | 1,461 | 1,461 | 1,461 | 1,461 | 1,461 | 1,560 | ||||||||||||||||||||||||
Transfer agent’s fees and expenses | 46 | 318 | 42 | 52 | 586 | 1,323 | ||||||||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,511 | ) | (1,822 | ) | (1,634 | ) | (1,567 | ) | (2,655 | ) | (86,009 | ) |
See Notes to Financial Statements.
92
PGIM Target Date 2025 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 1,051,403 | $ | 2,846,683 | ||||||
Net realized gain (loss) on investment transactions | 3,345,015 | (811,497 | ) | |||||||
Net capital gain distributions received | 430,851 | 768,841 | ||||||||
Net change in unrealized appreciation (depreciation) on investments | (3,134,971 | ) | (1,627,216 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 1,692,298 | 1,176,811 | ||||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class R1 | (409 | ) | (846 | ) | ||||||
Class R2 | (5,492 | ) | (7,493 | ) | ||||||
Class R3 | (15,551 | ) | (29,707 | ) | ||||||
Class R4 | (6,574 | ) | (1,952 | ) | ||||||
Class R5 | (29,051 | ) | (46,333 | ) | ||||||
Class R6 | (2,066,255 | ) | (4,701,615 | ) | ||||||
|
|
|
| |||||||
(2,123,332 | ) | (4,787,946 | ) | |||||||
|
|
|
| |||||||
Fund share transactions | ||||||||||
Net proceeds from shares sold | 1,766,579 | 4,025,535 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 2,123,332 | 4,787,946 | ||||||||
Cost of shares purchased | (19,087,820 | ) | (13,647,927 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | (15,197,909 | ) | (4,834,446 | ) | ||||||
|
|
|
| |||||||
Total increase (decrease) | (15,628,943 | ) | (8,445,581 | ) | ||||||
Net Assets: | ||||||||||
Beginning of period | 64,041,641 | 72,487,222 | ||||||||
|
|
|
| |||||||
End of period | $ | 48,412,698 | $ | 64,041,641 | ||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 93
PGIM Target Date 2025 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.62 | $11.19 | $13.01 | $11.24 | $11.14 | $11.15 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.37 | 0.47 | 0.14 | 0.05 | 0.19 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.14 | (0.25 | ) | (1.07 | ) | 1.84 | 0.53 | 0.18 | ||||||||||||||||||||||||
Total from investment operations | 0.29 | 0.12 | (0.60 | ) | 1.98 | 0.58 | 0.37 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.27 | ) | (0.38 | ) | (0.75 | ) | (0.11 | ) | (0.21 | ) | (0.20 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.31 | ) | (0.47 | ) | (0.10 | ) | (0.27 | ) | (0.18 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.31 | ) | (0.69 | ) | (1.22 | ) | (0.21 | ) | (0.48 | ) | (0.38 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.60 | $10.62 | $11.19 | $13.01 | $11.24 | $11.14 | ||||||||||||||||||||||||||
Total Return(b) : | 2.76 | % | 1.56 | % | (5.37 | )% | 17.76 | % | 5.25 | % | 3.73 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $14 | $14 | $14 | $14 | $12 | $671 | ||||||||||||||||||||||||||
Average net assets (000) | $14 | $13 | $14 | $13 | $122 | $625 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.73 | %(d) | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | 0.74 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 22.68 | %(d) | 23.35 | % | 27.65 | % | 50.15 | % | 11.62 | % | 3.01 | % | ||||||||||||||||||||
Net investment income (loss) | 2.88 | %(d) | 3.51 | % | 3.86 | % | 1.18 | % | 0.49 | % | 1.72 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 38 | % | 26 | % | 58 | % | 44 | % | 57 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
94
PGIM Target Date 2025 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.64 | $11.22 | $13.04 | $11.26 | $11.15 | $11.16 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.38 | 0.48 | 0.15 | (0.01 | ) | 0.18 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.14 | (0.24 | ) | (1.05 | ) | 1.86 | 0.63 | 0.22 | ||||||||||||||||||||||||
Total from investment operations | 0.31 | 0.14 | (0.57 | ) | 2.01 | 0.62 | 0.40 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.41 | ) | (0.78 | ) | (0.13 | ) | (0.24 | ) | (0.23 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.31 | ) | (0.47 | ) | (0.10 | ) | (0.27 | ) | (0.18 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.34 | ) | (0.72 | ) | (1.25 | ) | (0.23 | ) | (0.51 | ) | (0.41 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.61 | $10.64 | $11.22 | $13.04 | $11.26 | $11.15 | ||||||||||||||||||||||||||
Total Return(b) : | 2.89 | % | 1.74 | % | (5.12 | )% | 18.09 | % | 5.45 | % | 4.09 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $186 | $148 | $106 | $82 | $90 | $117 | ||||||||||||||||||||||||||
Average net assets (000) | $162 | $120 | $92 | $71 | $136 | $39 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.48 | %(d) | 0.51 | % | 0.51 | % | 0.50 | % | 0.50 | % | 0.49 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.71 | %(d) | 3.42 | % | 6.27 | % | 10.60 | % | 10.64 | % | 31.08 | % | ||||||||||||||||||||
Net investment income (loss) | 3.16 | %(d) | 3.65 | % | 3.99 | % | 1.29 | % | (0.13 | )% | 1.60 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 38 | % | 26 | % | 58 | % | 44 | % | 57 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 95
PGIM Target Date 2025 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.65 | $11.23 | $13.06 | $11.27 | $11.17 | $11.18 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.41 | 0.43 | 0.19 | 0.21 | 0.23 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.15 | (0.25 | ) | (0.99 | ) | 1.85 | 0.41 | 0.19 | ||||||||||||||||||||||||
Total from investment operations | 0.32 | 0.16 | (0.56 | ) | 2.04 | 0.62 | 0.42 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.31 | ) | (0.43 | ) | (0.80 | ) | (0.15 | ) | (0.25 | ) | (0.25 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.31 | ) | (0.47 | ) | (0.10 | ) | (0.27 | ) | (0.18 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.35 | ) | (0.74 | ) | (1.27 | ) | (0.25 | ) | (0.52 | ) | (0.43 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.62 | $10.65 | $11.23 | $13.06 | $11.27 | $11.17 | ||||||||||||||||||||||||||
Total Return(b) : | 3.04 | % | 1.91 | % | (5.04 | )% | 18.32 | % | 5.62 | % | 4.17 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $484 | $465 | $449 | $9,911 | $8,064 | $7,737 | ||||||||||||||||||||||||||
Average net assets (000) | $461 | $435 | $663 | $8,876 | $7,803 | $6,760 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.33 | %(d) | 0.36 | % | 0.36 | % | 0.35 | % | 0.35 | % | 0.34 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.03 | %(d) | 1.03 | % | 1.02 | % | 0.61 | % | 0.90 | % | 1.00 | % | ||||||||||||||||||||
Net investment income (loss) | 3.28 | %(d) | 3.93 | % | 3.60 | % | 1.59 | % | 1.89 | % | 2.14 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 38 | % | 26 | % | 58 | % | 44 | % | 57 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
96
PGIM Target Date 2025 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.66 | $11.24 | $13.06 | $11.28 | $11.17 | $11.18 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.47 | 0.51 | 0.20 | 0.22 | 0.22 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.13 | (0.30 | ) | (1.05 | ) | 1.84 | 0.43 | 0.21 | ||||||||||||||||||||||||
Total from investment operations | 0.32 | 0.17 | (0.54 | ) | 2.04 | 0.65 | 0.43 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.32 | ) | (0.44 | ) | (0.81 | ) | (0.16 | ) | (0.27 | ) | (0.26 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.31 | ) | (0.47 | ) | (0.10 | ) | (0.27 | ) | (0.18 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.36 | ) | (0.75 | ) | (1.28 | ) | (0.26 | ) | (0.54 | ) | (0.44 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.62 | $10.66 | $11.24 | $13.06 | $11.28 | $11.17 | ||||||||||||||||||||||||||
Total Return(b) : | 3.04 | % | 2.02 | % | (4.87 | )% | 18.43 | % | 5.73 | % | 4.27 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $201 | $14 | $22 | $15 | $13 | $12 | ||||||||||||||||||||||||||
Average net assets (000) | $153 | $21 | $18 | $14 | $12 | $45 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.22 | %(d) | 0.26 | % | 0.26 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.25 | %(d) | 14.42 | % | 21.59 | % | 48.41 | % | 109.74 | % | 26.16 | % | ||||||||||||||||||||
Net investment income (loss) | 3.63 | %(d) | 4.49 | % | 4.24 | % | 1.68 | % | 1.99 | % | 2.04 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 38 | % | 26 | % | 58 | % | 44 | % | 57 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 97
PGIM Target Date 2025 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.66 | $11.25 | $13.07 | $11.28 | $11.17 | $11.19 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.43 | 0.49 | 0.22 | 0.24 | 0.24 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.15 | (0.26 | ) | (1.02 | ) | 1.84 | 0.41 | 0.19 | ||||||||||||||||||||||||
Total from investment operations | 0.33 | 0.17 | (0.53 | ) | 2.06 | 0.65 | 0.43 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.33 | ) | (0.45 | ) | (0.82 | ) | (0.17 | ) | (0.27 | ) | (0.27 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.31 | ) | (0.47 | ) | (0.10 | ) | (0.27 | ) | (0.18 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.37 | ) | (0.76 | ) | (1.29 | ) | (0.27 | ) | (0.54 | ) | (0.45 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.62 | $10.66 | $11.25 | $13.07 | $11.28 | $11.17 | ||||||||||||||||||||||||||
Total Return(b): | 3.13 | % | 2.04 | % | (4.77 | )% | 18.53 | % | 5.90 | % | 4.29 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $900 | $727 | $606 | $266 | $160 | $295 | ||||||||||||||||||||||||||
Average net assets (000) | $797 | $647 | $425 | $197 | $238 | $71 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.13 | %(d) | 0.16 | % | 0.16 | % | 0.15 | % | 0.16 | % | 0.14 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.79 | %(d) | 0.89 | % | 1.24 | % | 3.68 | % | 6.04 | % | 16.90 | % | ||||||||||||||||||||
Net investment income (loss) | 3.49 | %(d) | 4.15 | % | 4.12 | % | 1.85 | % | 2.12 | % | 2.21 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 38 | % | 26 | % | 58 | % | 44 | % | 57 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
98
PGIM Target Date 2025 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.69 | $11.27 | $13.10 | $11.30 | $11.19 | $11.21 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.45 | 0.56 | 0.24 | 0.23 | 0.27 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.15 | (0.26 | ) | (1.08 | ) | 1.85 | 0.44 | 0.17 | ||||||||||||||||||||||||
Total from investment operations | 0.34 | 0.19 | (0.52 | ) | 2.09 | 0.67 | 0.44 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.35 | ) | (0.46 | ) | (0.84 | ) | (0.19 | ) | (0.29 | ) | (0.28 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.04 | ) | (0.31 | ) | (0.47 | ) | (0.10 | ) | (0.27 | ) | (0.18 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.39 | ) | (0.77 | ) | (1.31 | ) | (0.29 | ) | (0.56 | ) | (0.46 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.64 | $10.69 | $11.27 | $13.10 | $11.30 | $11.19 | ||||||||||||||||||||||||||
Total Return(b): | 3.17 | % | 2.29 | % | (4.70 | )% | 18.75 | % | 5.96 | % | 4.55 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $46,627 | $62,674 | $71,290 | $80,212 | $62,135 | $40,932 | ||||||||||||||||||||||||||
Average net assets (000) | $55,783 | $64,956 | $82,904 | $79,030 | $47,867 | $35,028 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.00 | %(e) | 0.01 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.02 | )%(e)0.01% | 0.01 | % | 0.00 | %(f)(0.00)%(f)(0.01)% | ||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.29 | %(e) | 0.26 | % | 0.19 | % | 0.20 | % | 0.40 | % | 0.51 | % | ||||||||||||||||||||
Net investment income (loss) | 3.65 | %(e) | 4.31 | % | 4.62 | % | 1.94 | % | 2.09 | % | 2.52 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 38 | % | 26 | % | 58 | % | 44 | % | 57 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | Amount rounds to zero. |
See Notes to Financial Statements.
PGIM Target Date Funds 99
PGIM Target Date 2025 Fund
Financial Highlights (unaudited) (continued)
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
100
PGIM Target Date 2030 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 93.3% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 30.6% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 94,087 | $ | 1,238,189 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 378,165 | 14,158,497 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 127,048 | 1,243,805 | ||||||
|
| |||||||
16,640,491 | ||||||||
|
| |||||||
Fixed Income — 46.1% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 481,455 | 4,169,404 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 477,691 | 3,157,535 | ||||||
PGIM TIPS Fund (Class R6) | 1,150,185 | 9,776,569 | ||||||
PGIM Total Return Bond Fund (Class R6) | 665,549 | 8,013,205 | ||||||
|
| |||||||
25,116,713 | ||||||||
|
| |||||||
International Equity — 16.6% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 176,852 | 3,255,854 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 50,892 | 545,558 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 390,931 | 5,215,018 | ||||||
|
| |||||||
9,016,430 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $49,717,291) | 50,773,634 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 6.7% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $3,626,672) | 3,626,672 | 3,626,672 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | ||||||||
(cost $53,343,963)(wa) | 54,400,306 | |||||||
Other assets in excess of liabilities 0.0% | 21,276 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 54,421,582 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
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.
See Notes to Financial Statements.
PGIM Target Date Funds 101
PGIM Target Date 2030 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Affiliated Mutual Funds | ||||||||||||
Domestic Equity | $16,640,491 | $— | $— | |||||||||
Fixed Income | 25,116,713 | — | — | |||||||||
International Equity | 9,016,430 | — | — | |||||||||
Short-Term Investment | ||||||||||||
Affiliated Mutual Fund | 3,626,672 | — | — | |||||||||
| ||||||||||||
Total | $54,400,306 | $— | $— | |||||||||
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of January 31, 2024 were as follows:
Fixed Income | 46.1 | % | ||
Domestic Equity | 30.6 |
International Equity | 16.6 | % | ||
Short Term | 6.7 | |||
|
| |||
100.0 | ||||
Other assets in excess of liabilities | 0.0 | * | ||
|
| |||
100.0 | % | |||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
102
PGIM Target Date 2030 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||
Affiliated investments (cost $53,343,963) | $ | 54,400,306 | ||||
Receivable for investments sold | 392,331 | |||||
Receivable for Fund shares sold | 113,960 | |||||
Due from Manager | 20,504 | |||||
Prepaid expenses | 864 | |||||
|
| |||||
Total Assets | 54,927,965 | |||||
|
| |||||
Liabilities | ||||||
Payable for investments purchased | 466,999 | |||||
Payable for Fund shares purchased | 19,527 | |||||
Accrued expenses and other liabilities | 18,426 | |||||
Trustees’ fees payable | 704 | |||||
Affiliated transfer agent fee payable | 485 | |||||
Distribution fee payable | 242 | |||||
|
| |||||
Total Liabilities | 506,383 | |||||
|
| |||||
Net Assets | $ | 54,421,582 | ||||
|
| |||||
Net assets were comprised of: | ||||||
Shares of beneficial interest, at par | $ | 4,835 | ||||
Paid-in capital in excess of par | 53,893,422 | |||||
Total distributable earnings (loss) | 523,325 | |||||
|
| |||||
Net assets, January 31, 2024 | $ | 54,421,582 | ||||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 103
PGIM Target Date 2030 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.22 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, ($344,597 ÷ 30,645 shares of beneficial interest issued and outstanding) | $ | 11.24 |
| |||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, ($1,673,576 ÷ 148,943 shares of beneficial interest issued and outstanding) | $ | 11.24 |
| |||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, ($29,912 ÷ 2,666 shares of beneficial interest issued and outstanding) | $ | 11.22 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, ($5,563,588 ÷ 494,912 shares of beneficial interest issued and outstanding) | $ | 11.24 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, ($46,735,794 ÷ 4,150,854 shares of beneficial interest issued and outstanding) | $ | 11.26 |
| |||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
104
PGIM Target Date 2030 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 1,126,158 | ||
|
| |||
Expenses | ||||
Management fee | 4,588 | |||
Distribution fee(a) | 1,360 | |||
Shareholder servicing fees(a) | 122 | |||
Custodian and accounting fees | 28,947 | |||
Professional fees | 17,663 | |||
Audit fee | 9,184 | |||
Registration fees(a) | 9,139 | |||
Fund data services | 5,273 | |||
Trustees’ fees | 5,207 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 1,385)(a) | 5,082 | |||
Shareholders’ reports | 4,993 | |||
Miscellaneous | 3,038 | |||
|
| |||
Total expenses | 94,596 | |||
Less: Fee waiver and/or expense reimbursement(a) | (96,301 | ) | ||
|
| |||
Net expenses | (1,705 | ) | ||
|
| |||
Net investment income (loss) | 1,127,863 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 4,333,836 | |||
Net capital gain distributions received | 628,267 | |||
|
| |||
4,962,103 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (3,980,579 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 981,524 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 2,109,387 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 171 | 405 | 784 | — | — | — | ||||||||||||||||||
Shareholder servicing fees | 25 | 3 | 85 | 9 | — | — | ||||||||||||||||||
Registration fees | 1,464 | 1,715 | 1,464 | 1,465 | 1,465 | 1,566 | ||||||||||||||||||
Transfer agent’s fees and expenses | 119 | 329 | 144 | 53 | 3,120 | 1,317 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,618) | (2,092) | (2,339) | (1,530) | (7,640) | (81,082) |
See Notes to Financial Statements.
PGIM Target Date Funds 105
PGIM Target Date 2030 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended | Year Ended July 31, 2023 | |||||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 1,127,863 | $ | 2,600,777 | ||||||||||||
Net realized gain (loss) on investment transactions | 4,333,836 | (844,878 | ) | |||||||||||||
Net capital gain distributions received | 628,267 | 992,911 | ||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (3,980,579 | ) | (652,590 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 2,109,387 | 2,096,220 | ||||||||||||||
|
|
|
| |||||||||||||
Dividends and Distributions | ||||||||||||||||
Distributions from distributable earnings | ||||||||||||||||
Class R1 | (2,473 | ) | (4,803 | ) | ||||||||||||
Class R2 | (12,260 | ) | (23,953 | ) | ||||||||||||
Class R3 | (61,623 | ) | (109,021 | ) | ||||||||||||
Class R4 | (1,715 | ) | (3,094 | ) | ||||||||||||
Class R5 | (215,009 | ) | (321,515 | ) | ||||||||||||
Class R6 | (2,418,912 | ) | (5,191,158 | ) | ||||||||||||
|
|
|
| |||||||||||||
(2,711,992 | ) | (5,653,544 | ) | |||||||||||||
|
|
|
| |||||||||||||
Fund share transactions | ||||||||||||||||
Net proceeds from shares sold | 4,041,296 | 4,515,739 | ||||||||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 2,711,982 | 5,653,544 | ||||||||||||||
Cost of shares purchased | (17,312,792 | ) | (12,317,579 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (10,559,514 | ) | (2,148,296 | ) | ||||||||||||
|
|
|
| |||||||||||||
Total increase (decrease) | (11,162,119 | ) | (5,705,620 | ) | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 65,583,701 | 71,289,321 | ||||||||||||||
|
|
|
| |||||||||||||
End of period | $ | 54,421,582 | $ | 65,583,701 | ||||||||||||
|
|
|
|
See Notes to Financial Statements.
106
PGIM Target Date 2030 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.29 | $11.92 | $13.72 | $11.48 | $11.45 | $11.53 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.16 | 0.35 | 0.43 | 0.13 | 0.17 | 0.18 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.16 | (0.09 | ) | (1.15 | ) | 2.32 | 0.41 | 0.13 | ||||||||||||||||||||
Total from investment operations | 0.32 | 0.26 | (0.72 | ) | 2.45 | 0.58 | 0.31 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.23 | ) | (0.40 | ) | (0.79 | ) | (0.11 | ) | (0.20 | ) | (0.22 | ) | ||||||||||||||||
Distributions from net realized gains | (0.16 | ) | (0.49 | ) | (0.29 | ) | (0.10 | ) | (0.35 | ) | (0.17 | ) | ||||||||||||||||
Total dividends and distributions | (0.39 | ) | (0.89 | ) | (1.08 | ) | (0.21 | ) | (0.55 | ) | (0.39 | ) | ||||||||||||||||
Net asset value, end of period | $11.22 | $11.29 | $11.92 | $13.72 | $11.48 | $11.45 | ||||||||||||||||||||||
Total Return(b): | 2.86 | % | 2.88 | % | (5.94 | )% | 21.50 | % | 5.04 | % | 3.18 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $74 | $69 | $59 | $55 | $38 | $33 | ||||||||||||||||||||||
Average net assets (000) | $68 | $62 | $58 | $48 | $36 | $30 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.72 | %(d) | 0.75 | % | 0.75 | % | 0.74 | % | 0.74 | % | 0.74 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 5.45 | %(d) | 5.88 | % | 7.42 | % | 14.75 | % | 37.24 | % | 40.10 | % | ||||||||||||||||
Net investment income (loss) | 2.80 | %(d) | 3.17 | % | 3.37 | % | 1.05 | % | 1.54 | % | 1.62 | % | ||||||||||||||||
Portfolio turnover rate(e) | 48 | % | 29 | % | 56 | % | 46 | % | 55 | % | 36 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 107
PGIM Target Date 2030 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.32 | $11.95 | $13.74 | $11.50 | $11.47 | $11.55 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.38 | 0.58 | 0.16 | 0.16 | 0.21 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.17 | (0.09 | ) | (1.26 | ) | 2.31 | 0.45 | 0.13 | ||||||||||||||||||||
Total from investment operations | 0.34 | 0.29 | (0.68 | ) | 2.47 | 0.61 | 0.34 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.26 | ) | (0.43 | ) | (0.82 | ) | (0.13 | ) | (0.23 | ) | (0.25 | ) | ||||||||||||||||
Distributions from net realized gains | (0.16 | ) | (0.49 | ) | (0.29 | ) | (0.10 | ) | (0.35 | ) | (0.17 | ) | ||||||||||||||||
Total dividends and distributions | (0.42 | ) | (0.92 | ) | (1.11 | ) | (0.23 | ) | (0.58 | ) | (0.42 | ) | ||||||||||||||||
Net asset value, end of period | $11.24 | $11.32 | $11.95 | $13.74 | $11.50 | $11.47 | ||||||||||||||||||||||
Total Return(b): | 3.01 | % | 3.11 | % | (5.69 | )% | 21.83 | % | 5.29 | % | 3.46 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $345 | $318 | $299 | $7,308 | $4,896 | $3,404 | ||||||||||||||||||||||
Average net assets (000) | $322 | $299 | $5,088 | $6,013 | $4,148 | $3,149 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.47 | %(d) | 0.50 | % | 0.49 | % | 0.49 | % | 0.49 | % | 0.49 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.76 | %(d) | 1.89 | % | 0.76 | % | 0.84 | % | 1.25 | % | 1.40 | % | ||||||||||||||||
Net investment income (loss) | 3.03 | %(d) | 3.44 | % | 4.39 | % | 1.29 | % | 1.42 | % | 1.87 | % | ||||||||||||||||
Portfolio turnover rate(e) | 48 | % | 29 | % | 56 | % | 46 | % | 55 | % | 36 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
108
PGIM Target Date 2030 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.32 | $11.95 | $13.75 | $11.50 | $11.47 | $11.55 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.40 | 0.47 | 0.18 | 0.19 | 0.21 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.18 | (0.09 | ) | (1.13 | ) | 2.32 | 0.44 | 0.15 | ||||||||||||||||||||
Total from investment operations | 0.36 | 0.31 | (0.66 | ) | 2.50 | 0.63 | 0.36 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.28 | ) | (0.45 | ) | (0.85 | ) | (0.15 | ) | (0.25 | ) | (0.27 | ) | ||||||||||||||||
Distributions from net realized gains | (0.16 | ) | (0.49 | ) | (0.29 | ) | (0.10 | ) | (0.35 | ) | (0.17 | ) | ||||||||||||||||
Total dividends and distributions | (0.44 | ) | (0.94 | ) | (1.14 | ) | (0.25 | ) | (0.60 | ) | (0.44 | ) | ||||||||||||||||
Net asset value, end of period | $11.24 | $11.32 | $11.95 | $13.75 | $11.50 | $11.47 | ||||||||||||||||||||||
Total Return(b): | 3.18 | % | 3.32 | % | (5.55 | )% | 22.00 | % | 5.44 | % | 3.63 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,674 | $1,563 | $1,341 | $3,414 | $2,416 | $1,349 | ||||||||||||||||||||||
Average net assets (000) | $1,559 | $1,376 | $1,397 | $2,857 | $1,832 | $1,018 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.27 | %(d) | 0.32 | % | 0.35 | % | 0.34 | % | 0.34 | % | 0.34 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.57 | %(d) | 0.57 | % | 0.57 | % | 0.78 | % | 1.50 | % | 2.03 | % | ||||||||||||||||
Net investment income (loss) | 3.23 | %(d) | 3.58 | % | 3.71 | % | 1.45 | % | 1.67 | % | 1.93 | % | ||||||||||||||||
Portfolio turnover rate(e) | 48 | % | 29 | % | 56 | % | 46 | % | 55 | % | 36 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 109
PGIM Target Date 2030 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.31 | $11.94 | $13.74 | $11.49 | $11.46 | $11.56 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.43 | 0.48 | 0.19 | 0.23 | 0.29 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.17 | (0.11 | ) | (1.13 | ) | 2.32 | 0.41 | 0.06 | ||||||||||||||||||||
Total from investment operations | 0.36 | 0.32 | (0.65 | ) | 2.51 | 0.64 | 0.35 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.29 | ) | (0.46 | ) | (0.86 | ) | (0.16 | ) | (0.26 | ) | (0.28 | ) | ||||||||||||||||
Distributions from net realized gains | (0.16 | ) | (0.49 | ) | (0.29 | ) | (0.10 | ) | (0.35 | ) | (0.17 | ) | ||||||||||||||||
Total dividends and distributions | (0.45 | ) | (0.95 | ) | (1.15 | ) | (0.26 | ) | (0.61 | ) | (0.45 | ) | ||||||||||||||||
Net asset value, end of period | $11.22 | $11.31 | $11.94 | $13.74 | $11.49 | $11.46 | ||||||||||||||||||||||
Total Return(b): | 3.16 | % | 3.44 | % | (5.47 | )% | 22.12 | % | 5.58 | % | 3.56 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $30 | $37 | $31 | $22 | $14 | $12 | ||||||||||||||||||||||
Average net assets (000) | $38 | $32 | $26 | $18 | $12 | $483 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.23 | %(d) | 0.25 | % | 0.25 | % | 0.24 | % | 0.24 | % | 0.25 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 8.33 | %(d) | 9.71 | % | 14.46 | % | 37.53 | % | 106.51 | % | 3.30 | % | ||||||||||||||||
Net investment income (loss) | 3.48 | %(d) | 3.92 | % | 3.79 | % | 1.54 | % | 2.01 | % | 2.58 | % | ||||||||||||||||
Portfolio turnover rate(e) | 48 | % | 29 | % | 56 | % | 46 | % | 55 | % | 36 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
110
PGIM Target Date 2030 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.34 | $11.97 | $13.77 | $11.52 | $11.48 | $11.57 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.42 | 0.51 | 0.21 | 0.25 | 0.25 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.17 | (0.09 | ) | (1.15 | ) | 2.31 | 0.41 | 0.12 | ||||||||||||||||||||
Total from investment operations | 0.36 | 0.33 | (0.64 | ) | 2.52 | 0.66 | 0.37 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.47 | ) | (0.87 | ) | (0.17 | ) | (0.27 | ) | (0.29 | ) | ||||||||||||||||
Distributions from net realized gains | (0.16 | ) | (0.49 | ) | (0.29 | ) | (0.10 | ) | (0.35 | ) | (0.17 | ) | ||||||||||||||||
Total dividends and distributions | (0.46 | ) | (0.96 | ) | (1.16 | ) | (0.27 | ) | (0.62 | ) | (0.46 | ) | ||||||||||||||||
Net asset value, end of period | $11.24 | $11.34 | $11.97 | $13.77 | $11.52 | $11.48 | ||||||||||||||||||||||
Total Return(b): | 3.16 | % | 3.55 | % | (5.36 | )% | 22.18 | % | 5.73 | % | 3.76 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $5,564 | $4,312 | $3,921 | $3,877 | $3,222 | $3,012 | ||||||||||||||||||||||
Average net assets (000) | $4,554 | $3,932 | $3,888 | $3,548 | $3,087 | $2,785 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.12 | %(d) | 0.15 | % | 0.15 | % | 0.14 | % | 0.14 | % | 0.14 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.45 | %(d) | 0.50 | % | 0.44 | % | 0.55 | % | 1.00 | % | 1.10 | % | ||||||||||||||||
Net investment income (loss) | 3.46 | %(d) | 3.75 | % | 3.94 | % | 1.66 | % | 2.19 | % | 2.21 | % | ||||||||||||||||
Portfolio turnover rate(e) | 48 | % | 29 | % | 56 | % | 46 | % | 55 | % | 36 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 111
PGIM Target Date 2030 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.36 | $12.00 | $13.80 | $11.54 | $11.50 | $11.59 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.20 | 0.44 | 0.53 | 0.23 | 0.24 | 0.25 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.17 | (0.10 | ) | (1.15 | ) | 2.32 | 0.44 | 0.14 | ||||||||||||||||||||
Total from investment operations | 0.37 | 0.34 | (0.62 | ) | 2.55 | 0.68 | 0.39 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.31 | ) | (0.49 | ) | (0.89 | ) | (0.19 | ) | (0.29 | ) | (0.31 | ) | ||||||||||||||||
Distributions from net realized gains | (0.16 | ) | (0.49 | ) | (0.29 | ) | (0.10 | ) | (0.35 | ) | (0.17 | ) | ||||||||||||||||
Total dividends and distributions | (0.47 | ) | (0.98 | ) | (1.18 | ) | (0.29 | ) | (0.64 | ) | (0.48 | ) | ||||||||||||||||
Net asset value, end of period | $11.26 | $11.36 | $12.00 | $13.80 | $11.54 | $11.50 | ||||||||||||||||||||||
Total Return(b): | 3.31 | % | 3.63 | % | (5.20 | )% | 22.40 | % | 5.87 | % | 3.93 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $46,736 | $59,285 | $65,639 | $71,254 | $51,305 | $36,517 | ||||||||||||||||||||||
Average net assets (000) | $56,734 | $60,037 | $73,198 | $68,119 | $40,094 | $29,867 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.00 | %(e) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager(d) | (0.03 | )%(e) | 0.00 | %(f) | (0.00 | )%(f) | (0.01 | )% | (0.01 | )% | (0.01 | )% | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.25 | %(e) | 0.26 | % | 0.20 | % | 0.22 | % | 0.46 | % | 0.57 | % | ||||||||||||||||
Net investment income (loss) | 3.57 | %(e) | 3.98 | % | 4.14 | % | 1.79 | % | 2.13 | % | 2.25 | % | ||||||||||||||||
Portfolio turnover rate(g) | 48 | % | 29 | % | 56 | % | 46 | % | 55 | % | 36 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | Amount rounds to zero. |
See Notes to Financial Statements.
112
PGIM Target Date 2030 Fund
Financial Highlights (unaudited) (continued)
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 113
PGIM Target Date 2035 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 95.5% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 38.6% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 94,229 | $ | 1,240,049 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 308,880 | 11,564,449 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 130,922 | 1,281,727 | ||||||
|
| |||||||
14,086,225 | ||||||||
|
| |||||||
Fixed Income — 35.8% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 246,799 | 2,137,277 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 276,586 | 1,828,237 | ||||||
PGIM TIPS Fund (Class R6) | 529,523 | 4,500,947 | ||||||
PGIM Total Return Bond Fund (Class R6) | 379,684 | 4,571,398 | ||||||
|
| |||||||
13,037,859 | ||||||||
|
| |||||||
International Equity — 21.1% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 114,820 | 2,113,829 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 95,709 | 1,026,005 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 342,426 | 4,567,960 | ||||||
|
| |||||||
7,707,794 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $33,165,962) | 34,831,878 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 4.5% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $1,648,490) | 1,648,490 | 1,648,490 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | ||||||||
(cost $34,814,452)(wa) | 36,480,368 | |||||||
Liabilities in excess of other assets (0.0)% | (4,921 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 36,475,447 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
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.
See Notes to Financial Statements.
114
PGIM Target Date 2035 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Affiliated Mutual Funds | ||||||||||||
Domestic Equity | $14,086,225 | $— | $— | |||||||||
Fixed Income | 13,037,859 | — | — | |||||||||
International Equity | 7,707,794 | — | — | |||||||||
Short-Term Investment | ||||||||||||
Affiliated Mutual Fund | 1,648,490 | — | — | |||||||||
| ||||||||||||
$36,480,368 | $— | $— | ||||||||||
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 38.6 | % | ||
Fixed Income | 35.8 |
International Equity | 21.1 | % | ||
Short Term | 4.5 | |||
|
| |||
100.0 | ||||
Liabilities in excess of other assets | (0.0 | )* | ||
|
| |||
100.0 | % | |||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
PGIM Target Date Funds 115
PGIM Target Date 2035 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||
Affiliated investments (cost $34,814,452) | $ | 36,480,368 | ||
Receivable for investments sold | 627,734 | |||
Due from Manager | 19,189 | |||
Receivable for Fund shares sold | 18,114 | |||
Prepaid expenses | 862 | |||
|
| |||
Total Assets | 37,146,267 | |||
|
| |||
Liabilities | ||||
Payable for Fund shares purchased | 381,491 | |||
Payable for investments purchased | 270,563 | |||
Accrued expenses and other liabilities | 17,376 | |||
Trustees’ fees payable | 807 | |||
Affiliated transfer agent fee payable | 451 | |||
Distribution fee payable | 132 | |||
|
| |||
Total Liabilities | 670,820 | |||
|
| |||
Net Assets | $ | 36,475,447 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 3,197 | ||
Paid-in capital in excess of par | 34,016,768 | |||
Total distributable earnings (loss) | 2,455,482 | |||
|
| |||
Net assets, January 31, 2024 | $ | 36,475,447 | ||
|
|
See Notes to Financial Statements.
116
PGIM Target Date 2035 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.38 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.39 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.40 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.41 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.41 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.41 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
PGIM Target Date Funds 117
PGIM Target Date 2035 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 793,148 | ||
|
| |||
Expenses | ||||
Management fee | 3,417 | |||
Distribution fee(a) | 591 | |||
Shareholder servicing fees(a) | 23 | |||
Custodian and accounting fees | 28,755 | |||
Professional fees | 18,082 | |||
Registration fees(a) | 10,394 | |||
Audit fee | 9,163 | |||
Fund data services | 5,273 | |||
Shareholders’ reports | 5,193 | |||
Trustees’ fees | 5,090 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 1,237)(a) | 2,394 | |||
Miscellaneous | 3,046 | |||
|
| |||
Total expenses | 91,421 | |||
Less: Fee waiver and/or expense reimbursement(a) | (99,833 | ) | ||
|
| |||
Net expenses | (8,412 | ) | ||
|
| |||
Net investment income (loss) | 801,560 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 3,924,498 | |||
Net capital gain distributions received | 602,182 | |||
|
| |||
4,526,680 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (3,921,582 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 605,098 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,406,658 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 78 | 206 | 307 | — | — | — | ||||||||||||||||||
Shareholder servicing fees | 9 | — | 14 | — | — | — | ||||||||||||||||||
Registration fees | 1,466 | 1,531 | 1,466 | 1,466 | 1,466 | 2,999 | ||||||||||||||||||
Transfer agent’s fees and expenses | 93 | 290 | 40 | 27 | 681 | 1,263 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,589 | ) | (1,932 | ) | (1,985 | ) | (1,503 | ) | (3,143 | ) | (89,681 | ) |
See Notes to Financial Statements.
118
PGIM Target Date 2035 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 801,560 | $ | 1,695,782 | ||||||
Net realized gain (loss) on investment transactions | 3,924,498 | (711,568 | ) | |||||||
Net capital gain distributions received | 602,182 | 898,151 | ||||||||
Net change in unrealized appreciation (depreciation) on investments | (3,921,582 | ) | 798,048 | |||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 1,406,658 | 2,680,413 | ||||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class R1 | (1,035 | ) | (2,086 | ) | ||||||
Class R2 | (6,538 | ) | (7,734 | ) | ||||||
Class R3 | (34,178 | ) | (22,868 | ) | ||||||
Class R4 | (627 | ) | (1,075 | ) | ||||||
Class R5 | (34,329 | ) | (44,097 | ) | ||||||
Class R6 | (1,902,765 | ) | (3,482,425 | ) | ||||||
|
|
|
| |||||||
(1,979,472 | ) | (3,560,285 | ) | |||||||
|
|
|
| |||||||
Fund share transactions | ||||||||||
Net proceeds from shares sold | 3,722,950 | 6,942,684 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,979,472 | 3,560,285 | ||||||||
Cost of shares purchased | (20,790,173 | ) | (6,686,238 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | (15,087,751 | ) | 3,816,731 | |||||||
|
|
|
| |||||||
Total increase (decrease) | (15,660,565 | ) | 2,936,859 | |||||||
Net Assets: | ||||||||||
Beginning of period | 52,136,012 | 49,199,153 | ||||||||
|
|
|
| |||||||
End of period | $ | 36,475,447 | $ | 52,136,012 | ||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 119
PGIM Target Date 2035 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.43 | $11.73 | $14.14 | $11.47 | $11.42 | $11.68 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.14 | (b) | 0.30 | 0.39 | 0.12 | 0.16 | 0.12 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | (c) | 0.17 | (1.17 | ) | 2.76 | 0.41 | 0.11 | ||||||||||||||||||||
Total from investment operations | 0.34 | 0.47 | (0.78 | ) | 2.88 | 0.57 | 0.23 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.25 | ) | (0.29 | ) | (0.86 | ) | (0.11 | ) | (0.18 | ) | (0.23 | ) | ||||||||||||||||
Distributions from net realized gains | (0.14 | ) | (0.48 | ) | (0.77 | ) | (0.10 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||||||
Total dividends and distributions | (0.39 | ) | (0.77 | ) | (1.63 | ) | (0.21 | ) | (0.52 | ) | (0.49 | ) | ||||||||||||||||
Net asset value, end of period | $11.38 | $11.43 | $11.73 | $14.14 | $11.47 | $11.42 | ||||||||||||||||||||||
Total Return(d): | 2.99 | % | 4.69 | % | (6.67 | )% | 25.33 | % | 4.94 | % | 2.55 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $31 | $34 | $31 | $32 | $25 | $24 | ||||||||||||||||||||||
Average net assets (000) | $31 | $31 | $31 | $29 | $24 | $17 | ||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.71 | %(f) | 0.73 | % | 0.73 | % | 0.73 | % | 0.72 | % | 0.72 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 10.81 | %(f) | 10.74 | % | 13.02 | % | 29.33 | % | 56.33 | % | 70.38 | % | ||||||||||||||||
Net investment income (loss) | 2.56 | %(f) | 2.77 | % | 3.02 | % | 0.91 | % | 1.44 | % | 1.03 | % | ||||||||||||||||
Portfolio turnover rate(g) | 54 | % | 29 | % | 52 | % | 45 | % | 45 | % | 35 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
120
PGIM Target Date 2035 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.45 | $11.75 | $14.15 | $11.48 | $11.43 | $11.69 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | (b) | 0.24 | (b) | 0.42 | 0.15 | 0.19 | 0.18 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | (c) | 0.26 | (c) | (1.16 | ) | 2.76 | 0.41 | 0.07 | |||||||||||||||||||
Total from investment operations | 0.36 | 0.50 | (0.74 | ) | 2.91 | 0.60 | 0.25 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.28 | ) | (0.32 | ) | (0.89 | ) | (0.14 | ) | (0.21 | ) | (0.25 | ) | ||||||||||||||||
Distributions from net realized gains | (0.14 | ) | (0.48 | ) | (0.77 | ) | (0.10 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||||||
Total dividends and distributions | (0.42 | ) | (0.80 | ) | (1.66 | ) | (0.24 | ) | (0.55 | ) | (0.51 | ) | ||||||||||||||||
Net asset value, end of period | $11.39 | $11.45 | $11.75 | $14.15 | $11.48 | $11.43 | ||||||||||||||||||||||
Total Return(d): | 3.14 | % | 4.96 | % | (6.36 | )% | 25.59 | % | 5.20 | % | 2.84 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $192 | $147 | $546 | $526 | $324 | $353 | ||||||||||||||||||||||
Average net assets (000) | $164 | $207 | $535 | $409 | $359 | $340 | ||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.45 | %(f) | 0.48 | % | 0.48 | % | 0.48 | % | 0.47 | % | 0.47 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.80 | %(f) | 2.57 | % | 1.80 | % | 2.54 | % | 4.84 | % | 4.85 | % | ||||||||||||||||
Net investment income (loss) | 2.99 | %(f) | 2.14 | % | 3.25 | % | 1.13 | % | 1.66 | % | 1.60 | % | ||||||||||||||||
Portfolio turnover rate(g) | 54 | % | 29 | % | 52 | % | 45 | % | 45 | % | 35 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 121
PGIM Target Date 2035 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.47 | $11.77 | $14.18 | $11.50 | $11.45 | $11.71 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.21 | 0.34 | 0.30 | 0.17 | 0.20 | 0.20 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.16 | 0.17 | (1.03 | ) | 2.76 | 0.42 | 0.07 | |||||||||||||||||||||
Total from investment operations | 0.37 | 0.51 | (0.73 | ) | 2.93 | 0.62 | 0.27 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.33 | ) | (0.91 | ) | (0.15 | ) | (0.23 | ) | (0.27 | ) | ||||||||||||||||
Distributions from net realized gains | (0.14 | ) | (0.48 | ) | (0.77 | ) | (0.10 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||||||
Total dividends and distributions | (0.44 | ) | (0.81 | ) | (1.68 | ) | (0.25 | ) | (0.57 | ) | (0.53 | ) | ||||||||||||||||
Net asset value, end of period | $11.40 | $11.47 | $11.77 | $14.18 | $11.50 | $11.45 | ||||||||||||||||||||||
Total Return(b): | 3.19 | % | 5.13 | % | (6.29 | )% | 25.80 | % | 5.34 | % | 3.01 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $947 | $429 | $303 | $9,978 | $7,298 | $6,271 | ||||||||||||||||||||||
Average net assets (000) | $611 | $339 | $463 | $8,548 | $6,663 | $5,850 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.29 | %(d) | 0.33 | % | 0.33 | % | 0.33 | % | 0.32 | % | 0.32 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.94 | %(d) | 1.31 | % | 1.36 | % | 0.70 | % | 1.11 | % | 1.31 | % | ||||||||||||||||
Net investment income (loss) | 3.78 | %(d) | 3.10 | % | 2.36 | % | 1.30 | % | 1.82 | % | 1.83 | % | ||||||||||||||||
Portfolio turnover rate(e) | 54 | % | 29 | % | 52 | % | 45 | % | 45 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
122
PGIM Target Date 2035 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.49 | $11.79 | $14.20 | $11.51 | $11.46 | $11.72 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | (b) | 0.36 | 0.46 | 0.18 | 0.22 | 0.31 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | (c) | 0.17 | (1.17 | ) | 2.78 | 0.41 | (0.03 | ) | |||||||||||||||||
Total from investment operations | 0.37 | 0.53 | (0.71 | ) | 2.96 | 0.63 | 0.28 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.31 | ) | (0.35 | ) | (0.93 | ) | (0.17 | ) | (0.24 | ) | (0.28 | ) | ||||||||||||||
Distributions from net realized gains | (0.14 | ) | (0.48 | ) | (0.77 | ) | (0.10 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||||
Total dividends and distributions | (0.45 | ) | (0.83 | ) | (1.70 | ) | (0.27 | ) | (0.58 | ) | (0.54 | ) | ||||||||||||||
Net asset value, end of period | $11.41 | $11.49 | $11.79 | $14.20 | $11.51 | $11.46 | ||||||||||||||||||||
Total Return(d): | 3.19 | % | 5.24 | % | (6.17 | )% | 25.98 | % | 5.43 | % | 3.12 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $17 | $16 | $15 | $16 | $13 | $12 | ||||||||||||||||||||
Average net assets (000) | $16 | $15 | $16 | $15 | $12 | $28 | ||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.20 | %(f) | 0.23 | % | 0.23 | % | 0.23 | % | 0.22 | % | 0.21 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 19.08 | %(f) | 19.92 | % | 23.52 | % | 44.91 | % | 106.41 | % | 41.69 | % | ||||||||||||||
Net investment income (loss) | 3.15 | %(f) | 3.28 | % | 3.53 | % | 1.41 | % | 1.94 | % | 2.78 | % | ||||||||||||||
Portfolio turnover rate(g) | 54 | % | 29 | % | 52 | % | 45 | % | 45 | % | 35 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 123
PGIM Target Date 2035 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.48 | $11.79 | $14.20 | $11.51 | $11.45 | $11.72 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | (b) | 0.35 | 0.43 | 0.19 | 0.20 | 0.24 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | (c) | 0.18 | (1.13 | ) | 2.78 | 0.45 | 0.05 | ||||||||||||||||||
Total from investment operations | 0.39 | 0.53 | (0.70 | ) | 2.97 | 0.65 | 0.29 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.32 | ) | (0.36 | ) | (0.94 | ) | (0.18 | ) | (0.25 | ) | (0.30 | ) | ||||||||||||||
Distributions from net realized gains | (0.14 | ) | (0.48 | ) | (0.77 | ) | (0.10 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||||
Total dividends and distributions | (0.46 | ) | (0.84 | ) | (1.71 | ) | (0.28 | ) | (0.59 | ) | (0.56 | ) | ||||||||||||||
Net asset value, end of period | $11.41 | $11.48 | $11.79 | $14.20 | $11.51 | $11.45 | ||||||||||||||||||||
Total Return(d): | 3.39 | % | 5.26 | % | (6.08 | )% | 26.09 | % | 5.62 | % | 3.15 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $942 | $866 | $542 | $314 | $147 | $95 | ||||||||||||||||||||
Average net assets (000) | $848 | $658 | $408 | $219 | $122 | $69 | ||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.10 | %(f) | 0.13 | % | 0.13 | % | 0.13 | % | 0.12 | % | 0.12 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.84 | %(f) | 0.97 | % | 1.35 | % | 3.46 | % | 11.56 | % | 17.68 | % | ||||||||||||||
Net investment income (loss) | 3.32 | %(f) | 3.21 | % | 3.38 | % | 1.47 | % | 1.81 | % | 2.16 | % | ||||||||||||||
Portfolio turnover rate(g) | 54 | % | 29 | % | 52 | % | 45 | % | 45 | % | 35 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
124
PGIM Target Date 2035 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.50 | $11.80 | $14.21 | $11.52 | $11.46 | $11.74 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.39 | 0.49 | 0.21 | 0.22 | 0.24 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | 0.17 | (1.17 | ) | 2.77 | 0.45 | 0.05 | |||||||||||||||||||||
Total from investment operations | 0.38 | 0.56 | (0.68 | ) | 2.98 | 0.67 | 0.29 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.33 | ) | (0.38 | ) | (0.96 | ) | (0.19 | ) | (0.27 | ) | (0.31 | ) | ||||||||||||||||
Distributions from net realized gains | (0.14 | ) | (0.48 | ) | (0.77 | ) | (0.10 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||||||
Total dividends and distributions | (0.47 | ) | (0.86 | ) | (1.73 | ) | (0.29 | ) | (0.61 | ) | (0.57 | ) | ||||||||||||||||
Net asset value, end of period | $11.41 | $11.50 | $11.80 | $14.21 | $11.52 | $11.46 | ||||||||||||||||||||||
Total Return(b): | 3.35 | % | 5.52 | % | (5.94 | )% | 26.25 | % | 5.77 | % | 3.23 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $34,347 | $50,643 | $47,761 | $53,243 | $42,659 | $24,312 | ||||||||||||||||||||||
Average net assets (000) | $45,073 | $46,943 | $54,250 | $52,063 | $28,765 | $20,031 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.00 | %(e) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.05 | )%(e) | (0.02 | )% | (0.02 | )% | (0.02 | )% | (0.03 | )% | (0.03 | )% | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.35 | %(e) | 0.35 | % | 0.28 | % | 0.28 | % | 0.61 | % | 0.81 | % | ||||||||||||||||
Net investment income (loss) | 3.41 | %(e) | 3.53 | % | 3.79 | % | 1.66 | % | 1.99 | % | 2.14 | % | ||||||||||||||||
Portfolio turnover rate(f) | 54 | % | 29 | % | 52 | % | 45 | % | 45 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 125
PGIM Target Date 2040 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 98.3% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 44.3% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 124,347 | $ | 1,636,408 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 335,949 | 12,577,941 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 189,902 | 1,859,142 | ||||||
|
| |||||||
16,073,491 | ||||||||
|
| |||||||
Fixed Income — 28.3% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 206,516 | 1,788,429 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 275,666 | 1,822,152 | ||||||
PGIM TIPS Fund (Class R6) | 363,335 | 3,088,352 | ||||||
PGIM Total Return Bond Fund (Class R6) | 296,908 | 3,574,767 | ||||||
|
| |||||||
10,273,700 | ||||||||
|
| |||||||
International Equity — 25.7% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 98,657 | 1,816,274 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 160,797 | 1,723,747 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 434,524 | 5,796,548 | ||||||
|
| |||||||
9,336,569 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $33,534,900) | 35,683,760 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 1.7% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $609,771) | 609,771 | 609,771 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | ||||||||
(cost $34,144,671)(wa) | 36,293,531 | |||||||
Other assets in excess of liabilities 0.0% | 4,349 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 36,297,880 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
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.
See Notes to Financial Statements.
126
PGIM Target Date 2040 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Affiliated Mutual Funds | ||||||||||||
Domestic Equity | $16,073,491 | $— | $— | |||||||||
Fixed Income | 10,273,700 | — | — | |||||||||
International Equity | 9,336,569 | — | — | |||||||||
Short-Term Investment | ||||||||||||
Affiliated Mutual Fund | 609,771 | — | — | |||||||||
| ||||||||||||
Total | $36,293,531 | $— | $— | |||||||||
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 44.3 | % | ||
Fixed Income | 28.3 |
International Equity | 25.7 | % | ||||
Short Term | 1.7 | |||||
|
| |||||
100.0 | ||||||
Other assets in excess of liabilities | 0.0 | * | ||||
|
| |||||
100.0 | % | |||||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
PGIM Target Date Funds 127
PGIM Target Date 2040 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||
Affiliated investments (cost $34,144,671) | $ | 36,293,531 | ||||
Receivable for investments sold | 271,762 | |||||
Receivable for Fund shares sold | 37,162 | |||||
Due from Manager | 19,697 | |||||
Prepaid expenses | 862 | |||||
|
| |||||
Total Assets | 36,623,014 | |||||
|
| |||||
Liabilities | ||||||
Payable for investments purchased | 301,162 | |||||
Custodian and accounting fee payable | 12,424 | |||||
Accrued expenses and other liabilities | 7,683 | |||||
Payable for Fund shares purchased | 2,305 | |||||
Trustees’ fees payable | 737 | |||||
Affiliated transfer agent fee payable | 434 | |||||
Fund data services payable | 251 | |||||
Distribution fee payable | 138 | |||||
|
| |||||
Total Liabilities | 325,134 | |||||
|
| |||||
Net Assets | $ | 36,297,880 | ||||
|
| |||||
Net assets were comprised of: | ||||||
Shares of beneficial interest, at par | $ | 3,007 | ||||
Paid-in capital in excess of par | 32,572,465 | |||||
Total distributable earnings (loss) | 3,722,408 | |||||
|
| |||||
Net assets, January 31, 2024 | $ | 36,297,880 | ||||
|
|
See Notes to Financial Statements.
128
PGIM Target Date 2040 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||||
Net asset value, offering price and redemption price per share, ($59,179 ÷ 4,919 shares of beneficial interest issued and outstanding) | $ | 12.03 | ||||||||
|
| |||||||||
Class R2 | ||||||||||
Net asset value, offering price and redemption price per share, ($233,364 ÷ 19,372 shares of beneficial interest issued and outstanding) | $ | 12.05 | ||||||||
|
| |||||||||
Class R3 | ||||||||||
Net asset value, offering price and redemption price per share, ($772,015 ÷ 64,049 shares of beneficial interest issued and outstanding) | $ | 12.05 | ||||||||
|
| |||||||||
Class R4 | ||||||||||
Net asset value, offering price and redemption price per share, ($72,988 ÷ 6,050 shares of beneficial interest issued and outstanding) | $ | 12.06 | ||||||||
|
| |||||||||
Class R5 | ||||||||||
Net asset value, offering price and redemption price per share, ($7,749,484 ÷ 642,293 shares of beneficial interest issued and outstanding) | $ | 12.07 | ||||||||
|
| |||||||||
Class R6 | ||||||||||
Net asset value, offering price and redemption price per share, ($27,410,850 ÷ 2,270,086 shares of beneficial interest issued and outstanding) | $ | 12.07 | ||||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
PGIM Target Date Funds 129
PGIM Target Date 2040 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 754,658 | ||
|
| |||
Expenses | ||||
Management fee | 3,221 | |||
Distribution fee(a) | 786 | |||
Shareholder servicing fees(a) | 91 | |||
Custodian and accounting fees | 28,785 | |||
Professional fees | 17,402 | |||
Registration fees(a) | 9,296 | |||
Audit fee | 9,165 | |||
Transfer agent’s fees and expenses (including affiliated expense of $1,259)(a) | 7,545 | |||
Shareholders’ reports | 5,282 | |||
Fund data services | 5,273 | |||
Trustees’ fees | 5,097 | |||
Miscellaneous | 3,116 | |||
|
| |||
Total expenses | 95,059 | |||
Less: Fee waiver and/or expense reimbursement(a) | (104,278 | ) | ||
|
| |||
Net expenses | (9,219 | ) | ||
|
| |||
Net investment income (loss) | 763,877 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 4,175,504 | |||
Net capital gain distributions received | 678,561 | |||
|
| |||
4,854,065 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (4,068,419 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 785,646 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,549,523 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 136 | 290 | 360 | — | — | — | ||||||||||||||||||
Shareholder servicing fees | 16 | 41 | 8 | 26 | — | — | ||||||||||||||||||
Registration fees | 1,461 | 1,844 | 1,461 | 1,461 | 1,461 | 1,608 | ||||||||||||||||||
Transfer agent’s fees and expenses | 120 | 552 | 29 | 79 | 5,502 | 1,263 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,644 | ) | (2,638 | ) | (2,128 | ) | (1,625 | ) | (17,066 | ) | (79,177 | ) |
See Notes to Financial Statements.
130
PGIM Target Date 2040 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||||
Increase (Decrease) in Net Assets | ||||||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 763,877 | $ | 1,462,665 | ||||||||
Net realized gain (loss) on investment transactions | 4,175,504 | (558,940 | ) | |||||||||
Net capital gain distributions received | 678,561 | 1,025,759 | ||||||||||
Net change in unrealized appreciation (depreciation) on investments | (4,068,419 | ) | 1,095,367 | |||||||||
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 1,549,523 | 3,024,851 | ||||||||||
|
|
|
| |||||||||
Dividends and Distributions | ||||||||||||
Distributions from distributable earnings | ||||||||||||
Class R1 | (1,885 | ) | (3,352 | ) | ||||||||
Class R2 | (8,256 | ) | (14,361 | ) | ||||||||
Class R3 | (26,987 | ) | (50,923 | ) | ||||||||
Class R4 | (2,615 | ) | (5,003 | ) | ||||||||
Class R5 | (288,305 | ) | (544,043 | ) | ||||||||
Class R6 | (1,518,675 | ) | (3,173,946 | ) | ||||||||
|
|
|
| |||||||||
(1,846,723 | ) | (3,791,628 | ) | |||||||||
|
|
|
| |||||||||
Fund share transactions | ||||||||||||
Net proceeds from shares sold | 4,941,834 | 5,436,207 | ||||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,846,647 | 3,791,628 | ||||||||||
Cost of shares purchased | (16,669,206 | ) | (7,368,139 | ) | ||||||||
|
|
|
| |||||||||
Net increase (decrease) in net assets from Fund share transactions | (9,880,725 | ) | 1,859,696 | |||||||||
|
|
|
| |||||||||
Total increase (decrease) | (10,177,925 | ) | 1,092,919 | |||||||||
Net Assets: | ||||||||||||
Beginning of period | 46,475,805 | 45,382,886 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 36,297,880 | $ | 46,475,805 | ||||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 131
PGIM Target Date 2040 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.07 | $12.34 | $14.54 | $11.53 | $11.61 | $11.83 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.16 | 0.29 | 0.38 | 0.10 | 0.14 | 0.15 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | 0.37 | (1.26 | ) | 3.11 | 0.33 | 0.05 | |||||||||||||||||||||||||
Total from investment operations | 0.36 | 0.66 | (0.88 | ) | 3.21 | 0.47 | 0.20 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.20 | ) | (0.32 | ) | (0.91 | ) | (0.11 | ) | (0.18 | ) | (0.24 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.61 | ) | (0.41 | ) | (0.09 | ) | (0.37 | ) | (0.18 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.40 | ) | (0.93 | ) | (1.32 | ) | (0.20 | ) | (0.55 | ) | (0.42 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.03 | $12.07 | $12.34 | $14.54 | $11.53 | $11.61 | ||||||||||||||||||||||||||
Total Return(b): | 2.96 | % | 6.22 | % | (7.02 | )% | 28.07 | % | 3.95 | % | 2.28 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $59 | $52 | $39 | $34 | $22 | $16 | ||||||||||||||||||||||||||
Average net assets (000) | $54 | $44 | $37 | $28 | $18 | $14 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.67 | %(d) | 0.70 | % | 0.70 | % | 0.69 | % | 0.69 | % | 0.70 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 6.70 | %(d) | 7.99 | % | 11.02 | % | 24.36 | % | 73.98 | % | 83.37 | % | ||||||||||||||||||||
Net investment income (loss) | 2.68 | %(d) | 2.49 | % | 2.81 | % | 0.78 | % | 1.29 | % | 1.31 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 60 | % | 31 | % | 54 | % | 41 | % | 44 | % | 26 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
132
PGIM Target Date 2040 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.10 | $12.36 | $14.57 | $11.55 | $11.63 | $11.84 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.31 | 0.59 | 0.14 | 0.18 | 0.17 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.21 | 0.38 | (1.45 | ) | 3.11 | 0.32 | 0.07 | |||||||||||||||||||||
Total from investment operations | 0.38 | 0.69 | (0.86 | ) | 3.25 | 0.50 | 0.24 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.23 | ) | (0.34 | ) | (0.94 | ) | (0.14 | ) | (0.21 | ) | (0.27 | ) | ||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.61 | ) | (0.41 | ) | (0.09 | ) | (0.37 | ) | (0.18 | ) | ||||||||||||||||
Total dividends and distributions | (0.43 | ) | (0.95 | ) | (1.35 | ) | (0.23 | ) | (0.58 | ) | (0.45 | ) | ||||||||||||||||
Net asset value, end of period | $12.05 | $12.10 | $12.36 | $14.57 | $11.55 | $11.63 | ||||||||||||||||||||||
Total Return(b): | 3.11 | % | 6.52 | % | (6.85 | )% | 28.40 | % | 4.18 | % | 2.65 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $233 | $238 | $169 | $5,733 | $3,501 | $2,424 | ||||||||||||||||||||||
Average net assets (000) | $231 | $192 | $4,165 | $4,508 | $2,845 | $1,689 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.42 | %(d) | 0.45 | % | 0.45 | % | 0.44 | % | 0.44 | % | 0.45 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.70 | %(d) | 2.88 | % | 0.83 | % | 0.94 | % | 1.61 | % | 2.02 | % | ||||||||||||||||
Net investment income (loss) | 2.85 | %(d) | 2.66 | % | 4.25 | % | 1.02 | % | 1.57 | % | 1.50 | % | ||||||||||||||||
Portfolio turnover rate(e) | 60 | % | 31 | % | 54 | % | 41 | % | 44 | % | 26 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 133
PGIM Target Date 2040 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.11 | $12.38 | $14.59 | $11.57 | $11.64 | $11.86 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.33 | 0.40 | 0.16 | 0.19 | 0.16 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | 0.38 | (1.23 | ) | 3.11 | 0.34 | 0.09 | |||||||||||||||||||||
Total from investment operations | 0.38 | 0.71 | (0.83 | ) | 3.27 | 0.53 | 0.25 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.24 | ) | (0.37 | ) | (0.97 | ) | (0.16 | ) | (0.23 | ) | (0.29 | ) | ||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.61 | ) | (0.41 | ) | (0.09 | ) | (0.37 | ) | (0.18 | ) | ||||||||||||||||
Total dividends and distributions | (0.44 | ) | (0.98 | ) | (1.38 | ) | (0.25 | ) | (0.60 | ) | (0.47 | ) | ||||||||||||||||
Net asset value, end of period | $12.05 | $12.11 | $12.38 | $14.59 | $11.57 | $11.64 | ||||||||||||||||||||||
Total Return(b): | 3.17 | % | 6.67 | % | (6.69 | )% | 28.52 | % | 4.42 | % | 2.73 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $772 | $722 | $627 | $3,617 | $2,187 | $1,491 | ||||||||||||||||||||||
Average net assets (000) | $715 | $641 | $662 | $2,996 | $1,720 | $915 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.27 | %(d) | 0.30 | % | 0.30 | % | 0.29 | % | 0.29 | % | 0.30 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.86 | %(d) | 0.92 | % | 0.95 | % | 0.85 | % | 1.76 | % | 2.43 | % | ||||||||||||||||
Net investment income (loss) | 3.04 | %(d) | 2.90 | % | 3.00 | % | 1.23 | % | 1.69 | % | 1.42 | % | ||||||||||||||||
Portfolio turnover rate(e) | 60 | % | 31 | % | 54 | % | 41 | % | 44 | % | 26 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
134
PGIM Target Date 2040 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.13 | $12.40 | $14.60 | $11.58 | $11.65 | $11.87 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.36 | (b) | 0.42 | 0.17 | 0.21 | 0.25 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | 0.36 | (c) | (1.23 | ) | 3.11 | 0.33 | 0.01 | ||||||||||||||||||||
Total from investment operations | 0.39 | 0.72 | (0.81 | ) | 3.28 | 0.54 | 0.26 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.26 | ) | (0.38 | ) | (0.98 | ) | (0.17 | ) | (0.24 | ) | (0.30 | ) | ||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.61 | ) | (0.41 | ) | (0.09 | ) | (0.37 | ) | (0.18 | ) | ||||||||||||||||
Total dividends and distributions | (0.46 | ) | (0.99 | ) | (1.39 | ) | (0.26 | ) | (0.61 | ) | (0.48 | ) | ||||||||||||||||
Net asset value, end of period | $12.06 | $12.13 | $12.40 | $14.60 | $11.58 | $11.65 | ||||||||||||||||||||||
Total Return(d): | 3.17 | % | 6.77 | % | (6.53 | )% | 28.61 | % | 4.52 | % | 2.84 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $73 | $67 | $50 | $34 | $17 | $12 | ||||||||||||||||||||||
Average net assets (000) | $67 | $59 | $42 | $26 | $13 | $35 | ||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.17 | %(f) | 0.20 | % | 0.20 | % | 0.19 | % | 0.19 | % | 0.20 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 4.97 | %(f) | 5.64 | % | 9.44 | % | 26.10 | % | 98.42 | % | 33.44 | % | ||||||||||||||||
Net investment income (loss) | 3.14 | %(f) | 3.08 | % | 3.13 | % | 1.25 | % | 1.84 | % | 2.14 | % | ||||||||||||||||
Portfolio turnover rate(g) | 60 | % | 31 | % | 54 | % | 41 | % | 44 | % | 26 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 135
PGIM Target Date 2040 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.14 | $12.41 | $14.61 | $11.58 | $11.65 | $11.88 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.36 | 0.47 | 0.18 | 0.24 | 0.22 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.21 | 0.37 | (1.27 | ) | 3.12 | 0.31 | 0.04 | |||||||||||||||||||||
Total from investment operations | 0.40 | 0.73 | (0.80 | ) | 3.30 | 0.55 | 0.26 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.27 | ) | (0.39 | ) | (0.99 | ) | (0.18 | ) | (0.25 | ) | (0.31 | ) | ||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.61 | ) | (0.41 | ) | (0.09 | ) | (0.37 | ) | (0.18 | ) | ||||||||||||||||
Total dividends and distributions | (0.47 | ) | (1.00 | ) | (1.40 | ) | (0.27 | ) | (0.62 | ) | (0.49 | ) | ||||||||||||||||
Net asset value, end of period | $12.07 | $12.14 | $12.41 | $14.61 | $11.58 | $11.65 | ||||||||||||||||||||||
Total Return(b): | 3.27 | % | 6.89 | % | (6.43 | )% | 28.81 | % | 4.61 | % | 2.87 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $7,749 | $7,404 | $6,697 | $7,393 | $6,114 | $6,056 | ||||||||||||||||||||||
Average net assets (000) | $7,317 | $6,691 | $7,073 | $6,748 | $5,963 | $5,822 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.07 | %(d) | 0.10 | % | 0.10 | % | 0.09 | % | 0.09 | % | 0.10 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.53 | %(d) | 0.56 | % | 0.46 | % | 0.53 | % | 1.01 | % | 1.18 | % | ||||||||||||||||
Net investment income (loss) | 3.23 | %(d) | 3.10 | % | 3.43 | % | 1.39 | % | 2.09 | % | 1.94 | % | ||||||||||||||||
Portfolio turnover rate(e) | 60 | % | 31 | % | 54 | % | 41 | % | 44 | % | 26 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
136
PGIM Target Date 2040 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.15 | $12.42 | $14.63 | $11.59 | $11.66 | $11.89 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.21 | (b) | 0.39 | (b) | 0.49 | 0.20 | 0.22 | 0.23 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | (c) | 0.36 | (c) | (1.27 | ) | 3.13 | 0.35 | 0.05 | |||||||||||||||||||
Total from investment operations | 0.40 | 0.75 | (0.78 | ) | 3.33 | 0.57 | 0.28 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.28 | ) | (0.41 | ) | (1.02 | ) | (0.20 | ) | (0.27 | ) | (0.33 | ) | ||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.61 | ) | (0.41 | ) | (0.09 | ) | (0.37 | ) | (0.18 | ) | ||||||||||||||||
Total dividends and distributions | (0.48 | ) | (1.02 | ) | (1.43 | ) | (0.29 | ) | (0.64 | ) | (0.51 | ) | ||||||||||||||||
Net asset value, end of period | $12.07 | $12.15 | $12.42 | $14.63 | $11.59 | $11.66 | ||||||||||||||||||||||
Total Return(d): | 3.32 | % | 7.06 | % | (6.35 | )% | 29.05 | % | 4.67 | % | 3.13 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $27,411 | $37,993 | $37,802 | $43,332 | $31,333 | $17,752 | ||||||||||||||||||||||
Average net assets (000) | $36,112 | $36,923 | $45,103 | $41,893 | $20,948 | $15,067 | ||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(f) | 0.00 | %(g) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.08 | )%(g) | (0.05 | )% | (0.05 | )% | (0.06 | )% | (0.06 | )% | (0.05 | )% | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.36 | %(g) | 0.38 | % | 0.27 | % | 0.30 | % | 0.70 | % | 0.91 | % | ||||||||||||||||
Net investment income (loss) | 3.46 | %(g) | 3.33 | % | 3.58 | % | 1.54 | % | 1.96 | % | 2.01 | % | ||||||||||||||||
Portfolio turnover rate(h) | 60 | % | 31 | % | 54 | % | 41 | % | 44 | % | 26 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
See Notes to Financial Statements.
PGIM Target Date Funds 137
PGIM Target Date 2040 Fund
Financial Highlights (unaudited) (continued)
(f) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(g) | Annualized. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
138
PGIM Target Date 2045 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.9% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 47.2% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 81,701 | $ | 1,075,188 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 213,070 | 7,977,334 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 140,692 | 1,377,377 | ||||||
|
| |||||||
10,429,899 | ||||||||
|
| |||||||
Fixed Income — 22.7% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 99,966 | 865,707 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 161,204 | 1,065,559 | ||||||
PGIM TIPS Fund (Class R6) | 137,009 | 1,164,576 | ||||||
PGIM Total Return Bond Fund (Class R6) | 158,553 | 1,908,975 | ||||||
|
| |||||||
5,004,817 | ||||||||
|
| |||||||
International Equity — 30.0% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 60,097 | 1,106,381 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 130,737 | 1,401,498 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 309,524 | 4,129,053 | ||||||
|
| |||||||
6,636,932 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 22,071,648 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.1% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | 17,355 | 17,355 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | 22,089,003 | |||||||
Other assets in excess of liabilities 0.0% | 418 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 22,089,421 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
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.
See Notes to Financial Statements.
PGIM Target Date Funds 139
PGIM Target Date 2045 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Long-Term Investments | ||||||||||||||||||||||||||||
Affiliated Mutual Funds | ||||||||||||||||||||||||||||
Domestic Equity | $ | 10,429,899 | $ | — | $ | — | ||||||||||||||||||||||
Fixed Income | 5,004,817 | — | — | |||||||||||||||||||||||||
International Equity | 6,636,932 | — | — | |||||||||||||||||||||||||
Short-Term Investment | ||||||||||||||||||||||||||||
Affiliated Mutual Fund | 17,355 | — | — | |||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total | $ | 22,089,003 | $ | — | $ | — | ||||||||||||||||||||||
|
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 47.2 | % | ||
International Equity | 30.0 |
Fixed Income | 22.7 | % | ||
Short Term | 0.1 | |||
|
| |||
100.0 | ||||
Other assets in excess of liabilities | 0.0 | * | ||
|
| |||
100.0 | % | |||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
140
PGIM Target Date 2045 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||
Affiliated investments (cost $20,403,852) | $ | 22,089,003 | ||
Receivable for investments sold | 163,597 | |||
Receivable for Fund shares sold | 28,313 | |||
Due from Manager | 18,353 | |||
Prepaid expenses | 859 | |||
|
| |||
Total Assets | 22,300,125 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 192,429 | |||
Custodian and accounting fees payable | 12,594 | |||
Accrued expenses and other liabilities | 3,866 | |||
Trustees’ fees payable | 764 | |||
Payable for Fund shares purchased | 494 | |||
Affiliated transfer agent fee payable | 460 | |||
Distribution fee payable | 97 | |||
|
| |||
Total Liabilities | 210,704 | |||
|
| |||
Net Assets | $ | 22,089,421 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 1,863 | ||
Paid-in capital in excess of par | 19,196,566 | |||
Total distributable earnings (loss) | 2,890,992 | |||
|
| |||
Net assets, January 31, 2024 | $ | 22,089,421 | ||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 141
PGIM Target Date 2045 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, ($16,981 ÷ 1,438 shares of beneficial interest issued and outstanding) | $ | 11.81 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, ($420,397 ÷ 35,564 shares of beneficial interest issued and outstanding) | $ | 11.82 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, ($27,775 ÷ 2,349 shares of beneficial interest issued and outstanding) | $ | 11.82 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, ($45,702 ÷ 3,867 shares of beneficial interest issued and outstanding) | $ | 11.82 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, ($1,040,945 ÷ 87,944 shares of beneficial interest issued and outstanding) | $ | 11.84 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, ($20,537,621 ÷ 1,732,321 shares of beneficial interest issued and outstanding) | $ | 11.86 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
142
PGIM Target Date 2045 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) |
Affiliated dividend income | $ | 532,650 | ||
|
| |||
Expenses | ||||
Management fee | 2,287 | |||
Distribution fee(a) | 531 | |||
Shareholder servicing fees(a) | 13 | |||
Custodian and accounting fees | 28,969 | |||
Professional fees | 17,398 | |||
Registration fees(a) | 9,665 | |||
Audit fee | 9,165 | |||
Fund data services | 5,273 | |||
Trustees’ fees | 5,017 | |||
Shareholders’ reports | 4,949 | |||
Transfer agent’s fees and expenses (including affiliated expense of $1,312)(a) | 2,795 | |||
Miscellaneous | 3,066 | |||
|
| |||
Total expenses | 89,128 | |||
Less: Fee waiver and/or expense reimbursement(a) | (101,651 | ) | ||
|
| |||
Net expenses | (12,523 | ) | ||
|
| |||
Net investment income (loss) | 545,173 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 3,178,504 | |||
Net capital gain distributions received | 526,584 | |||
|
| |||
3,705,088 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (3,184,383 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 520,705 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,065,878 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 40 | 478 | 13 | — | — | — | ||||||||||||||||||
Shareholder servicing fees | — | — | — | 13 | — | — | ||||||||||||||||||
Registration fees | 1,461 | 1,910 | 1,461 | 1,712 | 1,461 | 1,660 | ||||||||||||||||||
Transfer agent’s fees and expenses | 32 | 532 | 20 | 105 | 843 | 1,263 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,518) | (3,083) | (1,525) | (1,907) | (4,490) | (89,128) |
See Notes to Financial Statements.
PGIM Target Date Funds 143
PGIM Target Date 2045 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 545,173 | $ | 927,974 | ||||
Net realized gain (loss) on investment transactions | 3,178,504 | (435,172 | ) | |||||
Net capital gain distributions received | 526,584 | 801,368 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (3,184,383 | ) | 1,316,879 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 1,065,878 | 2,611,049 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R1 | (522 | ) | (956 | ) | ||||
Class R2 | (13,466 | ) | (20,461 | ) | ||||
Class R3 | (955 | ) | (2,413 | ) | ||||
Class R4 | (1,616 | ) | (2,730 | ) | ||||
Class R5 | (39,119 | ) | (52,147 | ) | ||||
Class R6 | (1,243,152 | ) | (2,127,813 | ) | ||||
|
|
|
| |||||
(1,298,830 | ) | (2,206,520 | ) | |||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 2,607,527 | 4,822,602 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,298,626 | 2,206,337 | ||||||
Cost of shares purchased | (15,366,093 | ) | (4,710,185 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (11,459,940 | ) | 2,318,754 | |||||
|
|
|
| |||||
Total increase (decrease) | (11,692,892 | ) | 2,723,283 | |||||
Net Assets: | ||||||||
Beginning of period | 33,782,313 | 31,059,030 | ||||||
|
|
|
| |||||
End of period | $ | 22,089,421 | $ | 33,782,313 | ||||
|
|
|
|
See Notes to Financial Statements.
144
PGIM Target Date 2045 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.84 | $11.79 | $14.56 | $11.34 | $11.47 | $11.91 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | (b) | 0.25 | 0.32 | 0.09 | 0.17 | 0.14 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | (c) | 0.53 | (1.25 | ) | 3.32 | 0.27 | (0.04 | ) | |||||||||||||||||||||||
Total from investment operations | 0.34 | 0.78 | (0.93 | ) | 3.41 | 0.44 | 0.10 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.18 | ) | (0.17 | ) | (0.90 | ) | (0.11 | ) | (0.18 | ) | (0.24 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.19 | ) | (0.56 | ) | (0.94 | ) | (0.08 | ) | (0.39 | ) | (0.30 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.37 | ) | (0.73 | ) | (1.84 | ) | (0.19 | ) | (0.57 | ) | (0.54 | ) | ||||||||||||||||||||
Net asset value, end of period | $11.81 | $11.84 | $11.79 | $14.56 | $11.34 | $11.47 | ||||||||||||||||||||||||||
Total Return(d) : | 2.92 | % | 7.45 | % | (7.75 | )% | 30.36 | % | 3.66 | % | 1.78 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $17 | $16 | $15 | $19 | $14 | $13 | ||||||||||||||||||||||||||
Average net assets (000) | $16 | $15 | $18 | $17 | $13 | $12 | ||||||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.66 | %(f) | 0.68 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.69 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 19.44 | %(f) | 20.73 | % | 21.60 | % | 40.37 | % | 98.28 | % | 96.93 | % | ||||||||||||||||||||
Net investment income (loss) | 2.63 | %(f) | 2.23 | % | 2.44 | % | 0.69 | % | 1.54 | % | 1.26 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 59 | % | 29 | % | 50 | % | 38 | % | 47 | % | 31 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 145
PGIM Target Date 2045 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.86 | $11.81 | $14.59 | $11.36 | $11.49 | $11.94 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | (b) | 0.26 | 0.33 | 0.11 | 0.03 | 0.09 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | (c) | 0.55 | (1.24 | ) | 3.34 | 0.44 | 0.03 | ||||||||||||||||||||||||
Total from investment operations | 0.36 | 0.81 | (0.91 | ) | 3.45 | 0.47 | 0.12 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.20 | ) | (0.93 | ) | (0.14 | ) | (0.21 | ) | (0.27 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.19 | ) | (0.56 | ) | (0.94 | ) | (0.08 | ) | (0.39 | ) | (0.30 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.40 | ) | (0.76 | ) | (1.87 | ) | (0.22 | ) | (0.60 | ) | (0.57 | ) | ||||||||||||||||||||
Net asset value, end of period | $11.82 | $11.86 | $11.81 | $14.59 | $11.36 | $11.49 | ||||||||||||||||||||||||||
Total Return(d) : | 3.09 | % | 7.73 | % | (7.56 | )% | 30.67 | % | 3.92 | % | 1.99 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $420 | $374 | $316 | $341 | $220 | $98 | ||||||||||||||||||||||||||
Average net assets (000) | $380 | $326 | $369 | $235 | $152 | $58 | ||||||||||||||||||||||||||
Ratios to average net assets(e) : | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.41 | %(f) | 0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.44 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.02 | %(f) | 2.22 | % | 2.07 | % | 3.78 | % | 10.18 | % | 21.72 | % | ||||||||||||||||||||
Net investment income (loss) | 2.90 | %(f) | 2.37 | % | 2.53 | % | 0.83 | % | 0.24 | % | 0.78 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 59 | % | 29 | % | 50 | % | 38 | % | 47 | % | 31 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
146
PGIM Target Date 2045 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.87 | $11.82 | $14.60 | $11.37 | $11.50 | $11.94 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | (b) | 0.34 | 0.07 | 0.14 | 0.21 | 0.18 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | (c) | 0.49 | (0.96 | ) | 3.33 | 0.28 | (0.03 | ) | |||||||||||||||||||||||
Total from investment operations | 0.37 | 0.83 | (0.89 | ) | 3.47 | 0.49 | 0.15 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.23 | ) | (0.22 | ) | (0.95 | ) | (0.16 | ) | (0.23 | ) | (0.29 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.19 | ) | (0.56 | ) | (0.94 | ) | (0.08 | ) | (0.39 | ) | (0.30 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.42 | ) | (0.78 | ) | (1.89 | ) | (0.24 | ) | (0.62 | ) | (0.59 | ) | ||||||||||||||||||||
Net asset value, end of period | $11.82 | $11.87 | $11.82 | $14.60 | $11.37 | $11.50 | ||||||||||||||||||||||||||
Total Return(d) : | 3.14 | % | 7.90 | % | (7.43 | )% | 30.83 | % | 4.07 | % | 2.26 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $28 | $27 | $36 | $12,568 | $8,750 | $7,639 | ||||||||||||||||||||||||||
Average net assets (000) | $26 | $30 | $301 | $10,686 | $7,880 | $6,657 | ||||||||||||||||||||||||||
Ratios to average net assets(e) : | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.26 | %(f) | 0.28 | % | 0.28 | % | 0.28 | % | 0.28 | % | 0.29 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 11.80 | %(f) | 10.50 | % | 2.13 | % | 0.81 | % | 1.51 | % | 1.80 | % | ||||||||||||||||||||
Net investment income (loss) | 3.03 | %(f) | 3.08 | % | 0.58 | % | 1.07 | % | 1.90 | % | 1.58 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 59 | % | 29 | % | 50 | % | 38 | % | 47 | % | 31 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 147
PGIM Target Date 2045 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.87 | $11.83 | $14.61 | $11.37 | $11.50 | $11.95 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | (b) | 0.27 | 0.38 | 0.16 | 0.22 | 0.23 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.21 | (c) | 0.56 | (1.25 | ) | 3.33 | 0.28 | (0.08 | ) | |||||||||||||||||||||||
Total from investment operations | 0.38 | 0.83 | (0.87 | ) | 3.49 | 0.50 | 0.15 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.24 | ) | (0.23 | ) | (0.97 | ) | (0.17 | ) | (0.24 | ) | (0.30 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.19 | ) | (0.56 | ) | (0.94 | ) | (0.08 | ) | (0.39 | ) | (0.30 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.43 | ) | (0.79 | ) | (1.91 | ) | (0.25 | ) | (0.63 | ) | (0.60 | ) | ||||||||||||||||||||
Net asset value, end of period | $11.82 | $11.87 | $11.83 | $14.61 | $11.37 | $11.50 | ||||||||||||||||||||||||||
Total Return(d) : | 3.24 | % | 7.93 | % | (7.31 | )% | 31.03 | % | 4.19 | % | 2.29 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $46 | $61 | $46 | $42 | $32 | $31 | ||||||||||||||||||||||||||
Average net assets (000) | $47 | $48 | $42 | $37 | $30 | $217 | ||||||||||||||||||||||||||
Ratios to average net assets(e) : | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.16 | %(f) | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.20 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 8.31 | %(f) | 8.10 | % | 9.50 | % | 18.71 | % | 44.47 | % | 6.89 | % | ||||||||||||||||||||
Net investment income (loss) | 2.95 | %(f) | 2.38 | % | 2.88 | % | 1.19 | % | 2.02 | % | 2.01 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 59 | % | 29 | % | 50 | % | 38 | % | 47 | % | 31 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
148
PGIM Target Date 2045 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.90 | $11.85 | $14.63 | $11.39 | $11.51 | $11.96 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.32 | 0.39 | 0.17 | 0.16 | 0.18 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.19 | 0.54 | (1.25 | ) | 3.33 | 0.36 | (0.02 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.38 | 0.86 | (0.86 | ) | 3.50 | 0.52 | 0.16 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.25 | ) | (0.25 | ) | (0.98 | ) | (0.18 | ) | (0.25 | ) | (0.31 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.19 | ) | (0.56 | ) | (0.94 | ) | (0.08 | ) | (0.39 | ) | (0.30 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.44 | ) | (0.81 | ) | (1.92 | ) | (0.26 | ) | (0.64 | ) | (0.61 | ) | ||||||||||||||||||||
Net asset value, end of period | $11.84 | $11.90 | $11.85 | $14.63 | $11.39 | $11.51 | ||||||||||||||||||||||||||
Total Return(b) : | 3.24 | % | 8.13 | % | (7.20 | )% | 31.10 | % | 4.34 | % | 2.41 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,041 | $970 | $786 | $650 | $407 | $174 | ||||||||||||||||||||||||||
Average net assets (000) | $1,004 | $812 | $703 | $525 | $265 | $101 | ||||||||||||||||||||||||||
Ratios to average net assets(c) : | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.06 | %(d) | 0.08 | % | 0.08 | % | 0.08 | % | 0.08 | % | 0.09 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.95 | %(d) | 1.06 | % | 1.11 | % | 1.84 | % | 6.12 | % | 12.95 | % | ||||||||||||||||||||
Net investment income (loss) | 3.34 | %(d) | 2.83 | % | 2.96 | % | 1.27 | % | 1.48 | % | 1.62 | % | ||||||||||||||||||||
Portfolio turnover rate(e) | 59 | % | 29 | % | 50 | % | 38 | % | 47 | % | 31 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 149
PGIM Target Date 2045 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a) : | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.92 | $11.87 | $14.66 | $11.41 | $11.53 | $11.99 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.20 | 0.34 | 0.42 | 0.18 | 0.21 | 0.22 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | 0.53 | (1.27 | ) | 3.35 | 0.32 | (0.05 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.40 | 0.87 | (0.85 | ) | 3.53 | 0.53 | 0.17 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.27 | ) | (0.26 | ) | (1.00 | ) | (0.20 | ) | (0.26 | ) | (0.33 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.19 | ) | (0.56 | ) | (0.94 | ) | (0.08 | ) | (0.39 | ) | (0.30 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.46 | ) | (0.82 | ) | (1.94 | ) | (0.28 | ) | (0.65 | ) | (0.63 | ) | ||||||||||||||||||||
Net asset value, end of period | $11.86 | $11.92 | $11.87 | $14.66 | $11.41 | $11.53 | ||||||||||||||||||||||||||
Total Return(b) : | 3.38 | % | 8.28 | % | (7.12 | )% | 31.31 | % | 4.49 | % | 2.50 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $20,538 | $32,334 | $29,859 | $32,739 | $20,178 | $9,601 | ||||||||||||||||||||||||||
Average net assets (000) | $29,854 | $29,647 | $34,127 | $28,077 | $11,758 | $8,229 | ||||||||||||||||||||||||||
Ratios to average net assets(c) : | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.00 | %(e) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.09 | )%(e) | (0.07 | )% | (0.07 | )% | (0.07 | )% | (0.07 | )% | (0.06 | )% | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.50 | %(e) | 0.53 | % | 0.42 | % | 0.42 | % | 1.11 | % | 1.43 | % | ||||||||||||||||||||
Net investment income (loss) | 3.47 | %(e) | 3.02 | % | 3.17 | % | 1.40 | % | 1.89 | % | 1.99 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 59 | % | 29 | % | 50 | % | 38 | % | 47 | % | 31 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
150
PGIM Target Date 2050 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.9% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity — 50.5% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 53,209 | $ | 700,235 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 134,696 | 5,043,005 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 110,098 | 1,077,862 | ||||||
|
| |||||||
6,821,102 | ||||||||
|
| |||||||
Fixed Income — 15.4% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 28,445 | 246,334 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 82,179 | 543,203 | ||||||
PGIM TIPS Fund (Class R6) | 29,014 | 246,622 | ||||||
PGIM Total Return Bond Fund (Class R6) | 86,423 | 1,040,536 | ||||||
|
| |||||||
2,076,695 | ||||||||
|
| |||||||
International Equity — 34.0% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 36,763 | 676,799 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 98,005 | 1,050,613 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 214,537 | 2,861,921 | ||||||
|
| |||||||
4,589,333 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 13,487,130 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.1% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $14,248) | 14,248 | 14,248 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | ||||||||
(cost $12,337,533)(wa) | 13,501,378 | |||||||
Liabilities in excess of other assets (0.0)% | (3,283 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 13,498,095 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) | Represents investments in Funds affiliated with the Manager. |
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.
See Notes to Financial Statements.
PGIM Target Date Funds 151
PGIM Target Date 2050 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Affiliated Mutual Funds | ||||||||||||
Domestic Equity | $ | 6,821,102 | $— | $— | ||||||||
Fixed Income | 2,076,695 | — | — | |||||||||
International Equity | 4,589,333 | — | — | |||||||||
Short-Term Investment | ||||||||||||
Affiliated Mutual Fund | 14,248 | — | — | |||||||||
Total | $ | 13,501,378 | $— | $— | ||||||||
|
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 50.5 | % | ||
International Equity | 34.0 |
Fixed Income | 15.4 | % | ||
Short Term | 0.1 | |||
|
| |||
100.0 | ||||
Liabilities in excess of other assets | (0.0 | )* | ||
|
| |||
100.0 | % | |||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
152
PGIM Target Date 2050 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||
Affiliated investments (cost $12,337,533) | $ | 13,501,378 | ||||
Receivable for investments sold | 196,371 | |||||
Due from Manager | 17,584 | |||||
Receivable for Fund shares sold | 17,378 | |||||
Prepaid expenses | 857 | |||||
|
| |||||
Total Assets | 13,733,568 | |||||
|
| |||||
Liabilities | ||||||
Payable for Fund shares purchased | 115,648 | |||||
Payable for investments purchased | 98,538 | |||||
Custodian and accounting fees payable | 12,527 | |||||
Accrued expenses and other liabilities | 7,387 | |||||
Trustees’ fees payable | 806 | |||||
Affiliated transfer agent fee payable | 441 | |||||
Distribution fee payable | 126 | |||||
|
| |||||
Total Liabilities | 235,473 | |||||
|
| |||||
Net Assets | $ | 13,498,095 | ||||
|
| |||||
Net assets were comprised of: | ||||||
Shares of beneficial interest, at par | $ | 1,090 | ||||
Paid-in capital in excess of par | 11,090,516 | |||||
Total distributable earnings (loss) | 2,406,489 | |||||
|
| |||||
Net assets, January 31, 2024 | $ | 13,498,095 | ||||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 153
PGIM Target Date 2050 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 12.33 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 12.37 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 12.37 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 12.34 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 12.37 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 12.39 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
154
PGIM Target Date 2050 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 351,782 | ||
|
| |||
Expenses | ||||
Management fee | 1,544 | |||
Distribution fee(a) | 699 | |||
Shareholder servicing fees(a) | 68 | |||
Custodian and accounting fees | 28,932 | |||
Professional fees | 16,843 | |||
Registration fees(a) | 11,603 | |||
Audit fee | 9,165 | |||
Shareholders’ reports | 5,490 | |||
Fund data services | 5,273 | |||
Trustees’ fees | 4,998 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 1,309)(a) | 3,255 | |||
Miscellaneous | 3,106 | |||
|
| |||
Total expenses | 90,976 | |||
Less: Fee waiver and/or expense reimbursement(a) | (98,339 | ) | ||
|
| |||
Net expenses | (7,363 | ) | ||
|
| |||
Net investment income (loss) | 359,145 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 2,225,051 | |||
Net capital gain distributions received | 374,559 | |||
|
| |||
2,599,610 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (2,283,424 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 316,186 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 675,331 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 151 | 538 | 10 | — | — | — | ||||||||||||||||||
Shareholder servicing fees | 18 | 9 | 1 | 40 | — | — | ||||||||||||||||||
Registration fees | 1,795 | 2,522 | 1,798 | 1,798 | 1,796 | 1,894 | ||||||||||||||||||
Transfer agent’s fees and expenses | 83 | 781 | 83 | 115 | 1,086 | 1,107 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (2,073 | ) | (4,569 | ) | (1,938 | ) | (2,245 | ) | (8,276 | ) | (79,238 | ) |
See Notes to Financial Statements.
PGIM Target Date Funds 155
PGIM Target Date 2050 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 359,145 | $ | 557,046 | ||||
Net realized gain (loss) on investment transactions | 2,225,051 | (196,042 | ) | |||||
Net capital gain distributions received | 374,559 | 539,460 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (2,283,424 | ) | 980,100 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 675,331 | 1,880,564 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R1 | (2,115 | ) | (3,554 | ) | ||||
Class R2 | (15,550 | ) | (25,559 | ) | ||||
Class R3 | (735 | ) | (1,194 | ) | ||||
Class R4 | (3,912 | ) | (7,035 | ) | ||||
Class R5 | (61,726 | ) | (92,260 | ) | ||||
Class R6 | (788,811 | ) | (1,466,047 | ) | ||||
|
|
|
| |||||
(872,849 | ) | (1,595,649 | ) | |||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 1,919,851 | 3,369,827 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 872,849 | 1,595,649 | ||||||
Cost of shares purchased | (11,354,118 | ) | (2,997,332 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (8,561,418 | ) | 1,968,144 | |||||
|
|
|
| |||||
Total increase (decrease) | (8,758,936 | ) | 2,253,059 | |||||
Net Assets: | ||||||||
Beginning of period | 22,257,031 | 20,003,972 | ||||||
|
|
|
| |||||
End of period | $ | 13,498,095 | $ | 22,257,031 | ||||
|
|
|
|
See Notes to Financial Statements.
156
PGIM Target Date 2050 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.38 | $12.32 | $14.87 | $11.49 | $11.59 | $11.92 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.16 | (b) | 0.23 | 0.30 | 0.07 | 0.08 | 0.13 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | (c) | 0.71 | (1.36 | ) | 3.51 | 0.31 | (0.02 | ) | |||||||||||||||||||||||
Total from investment operations | 0.36 | 0.94 | (1.06 | ) | 3.58 | 0.39 | 0.11 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.15 | ) | (0.91 | ) | (0.12 | ) | (0.19 | ) | (0.25 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.73 | ) | (0.58 | ) | (0.08 | ) | (0.30 | ) | (0.19 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.41 | ) | (0.88 | ) | (1.49 | ) | (0.20 | ) | (0.49 | ) | (0.44 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.33 | $12.38 | $12.32 | $14.87 | $11.49 | $11.59 | ||||||||||||||||||||||||||
Total Return(d): | 2.93 | % | 8.56 | % | (8.23 | )% | 31.41 | % | 3.24 | % | 1.61 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $67 | $59 | $47 | $44 | $33 | $166 | ||||||||||||||||||||||||||
Average net assets (000) | $60 | $50 | $46 | $37 | $54 | $145 | ||||||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.65 | %(f) | 0.68 | %(g) | 0.68 | % | 0.67 | % | 0.67 | % | 0.68 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 7.49 | %(f) | 7.54 | % | 9.34 | % | 18.74 | % | 26.33 | % | 11.03 | % | ||||||||||||||||||||
Net investment income (loss) | 2.69 | %(f) | 1.98 | % | 2.18 | % | 0.55 | % | 0.69 | % | 1.11 | % | ||||||||||||||||||||
Portfolio turnover rate(h) | 59 | % | 26 | % | 59 | % | 39 | % | 42 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.01% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 157
PGIM Target Date 2050 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.43 | $12.36 | $14.90 | $11.51 | $11.59 | $11.93 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | (b) | 0.25 | 0.50 | 0.11 | 0.17 | 0.15 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.21 | (c) | 0.71 | (1.51 | ) | 3.51 | 0.26 | (0.03 | ) | |||||||||||||||||||||||
Total from investment operations | 0.38 | 0.96 | (1.01 | ) | 3.62 | 0.43 | 0.12 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.24 | ) | (0.16 | ) | (0.95 | ) | (0.15 | ) | (0.21 | ) | (0.27 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.73 | ) | (0.58 | ) | (0.08 | ) | (0.30 | ) | (0.19 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.44 | ) | (0.89 | ) | (1.53 | ) | (0.23 | ) | (0.51 | ) | (0.46 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.37 | $12.43 | $12.36 | $14.90 | $11.51 | $11.59 | ||||||||||||||||||||||||||
Total Return(d): | 3.08 | % | 8.80 | % | (7.92 | )% | 31.72 | % | 3.53 | % | 1.83 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $458 | $444 | $337 | $5,209 | $3,110 | $1,951 | ||||||||||||||||||||||||||
Average net assets (000) | $428 | $370 | $3,647 | $4,026 | $2,447 | $1,348 | ||||||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.40 | %(f) | 0.43 | %(g) | 0.43 | % | 0.42 | % | 0.42 | % | 0.43 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.52 | %(f) | 2.81 | % | 1.15 | % | 1.28 | % | 2.57 | % | 3.75 | % | ||||||||||||||||||||
Net investment income (loss) | 2.88 | %(f) | 2.15 | % | 3.51 | % | 0.81 | % | 1.53 | % | 1.33 | % | ||||||||||||||||||||
Portfolio turnover rate(h) | 59 | % | 26 | % | 59 | % | 39 | % | 42 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.01% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
158
PGIM Target Date 2050 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.44 | $12.38 | $14.93 | $11.53 | $11.61 | $11.95 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | (b) | 0.28 | 0.06 | 0.13 | 0.16 | 0.14 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | (c) | 0.70 | (1.06 | ) | 3.51 | 0.28 | - | (d) | |||||||||||||||||||||||
Total from investment operations | 0.39 | 0.98 | (1.00 | ) | 3.64 | 0.44 | 0.14 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.26 | ) | (0.19 | ) | (0.97 | ) | (0.16 | ) | (0.22 | ) | (0.29 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.73 | ) | (0.58 | ) | (0.08 | ) | (0.30 | ) | (0.19 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.46 | ) | (0.92 | ) | (1.55 | ) | (0.24 | ) | (0.52 | ) | (0.48 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.37 | $12.44 | $12.38 | $14.93 | $11.53 | $11.61 | ||||||||||||||||||||||||||
Total Return(e): | 3.13 | % | 8.99 | % | (7.83 | )% | 31.93 | % | 3.65 | % | 2.01 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $21 | $19 | $15 | $4,071 | $2,212 | $1,074 | ||||||||||||||||||||||||||
Average net assets (000) | $19 | $16 | $81 | $3,123 | $1,564 | $655 | ||||||||||||||||||||||||||
Ratios to average net assets(f): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.25 | %(g) | 0.28 | %(h) | 0.27 | % | 0.27 | % | 0.27 | % | 0.28 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 20.32 | %(g) | 19.74 | % | 5.80 | % | 1.15 | % | 2.70 | % | 4.43 | % | ||||||||||||||||||||
Net investment income (loss) | 3.07 | %(g) | 2.37 | % | 0.52 | % | 0.97 | % | 1.45 | % | 1.22 | % | ||||||||||||||||||||
Portfolio turnover rate(i) | 59 | % | 26 | % | 59 | % | 39 | % | 42 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | Amount rounds to zero. |
(e) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(f) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(g) | Annualized. |
(h) | Includes certain non-recurring expenses of 0.01% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
See Notes to Financial Statements.
PGIM Target Date Funds 159
PGIM Target Date 2050 Fund
Financial Highlights (unaudited) (continued)
(i) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
160
PGIM Target Date 2050 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.42 | $12.36 | $14.91 | $11.51 | $11.59 | $11.95 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | (b) | 0.28 | 0.13 | 0.15 | 0.22 | 1.53 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | (c) | 0.72 | (1.12 | ) | 3.50 | 0.24 | (1.40 | ) | |||||||||||||||||||||||
Total from investment operations | 0.39 | 1.00 | (0.99 | ) | 3.65 | 0.46 | 0.13 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.27 | ) | (0.21 | ) | (0.98 | ) | (0.17 | ) | (0.24 | ) | (0.30 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.73 | ) | (0.58 | ) | (0.08 | ) | (0.30 | ) | (0.19 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.47 | ) | (0.94 | ) | (1.56 | ) | (0.25 | ) | (0.54 | ) | (0.49 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.34 | $12.42 | $12.36 | $14.91 | $11.51 | $11.59 | ||||||||||||||||||||||||||
Total Return(d): | 3.16 | % | 9.12 | % | (7.79 | )% | 32.10 | % | 3.81 | % | 1.95 | % | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $107 | $100 | $89 | $17 | $13 | $12 | ||||||||||||||||||||||||||
Average net assets (000) | $99 | $95 | $59 | $15 | $12 | $68 | ||||||||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.15 | %(f) | 0.18 | %(g) | 0.18 | % | 0.17 | % | 0.17 | % | 0.19 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 4.64 | %(f) | 4.14 | % | 7.09 | % | 43.52 | % | 106.71 | % | 19.83 | % | ||||||||||||||||||||
Net investment income (loss) | 3.17 | %(f) | 2.43 | % | 0.98 | % | 1.12 | % | 1.94 | % | 13.14 | % | ||||||||||||||||||||
Portfolio turnover rate(h) | 59 | % | 26 | % | 59 | % | 39 | % | 42 | % | 30 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.01% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 161
PGIM Target Date 2050 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.45 | $ | 12.39 | $ | 14.94 | $ | 11.54 | $ | 11.62 | $ | 11.96 | |||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.20 | 0.30 | 0.39 | 0.16 | 0.24 | 0.20 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | 0.71 | (1.36 | ) | 3.51 | 0.23 | (0.03 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.40 | 1.01 | (0.97 | ) | 3.67 | 0.47 | 0.17 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.28 | ) | (0.22 | ) | (1.00 | ) | (0.19 | ) | (0.25 | ) | (0.32 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.73 | ) | (0.58 | ) | (0.08 | ) | (0.30 | ) | (0.19 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.48 | ) | (0.95 | ) | (1.58 | ) | (0.27 | ) | (0.55 | ) | (0.51 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.37 | $ | 12.45 | $ | 12.39 | $ | 14.94 | $ | 11.54 | $ | 11.62 | |||||||||||||||||||||
Total Return(b): | 3.25 | % | 9.22 | % | (7.63 | )% | 32.13 | % | 3.90 | % | 2.24 | % | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,786 | $ | 1,446 | $ | 1,170 | $ | 1,149 | $ | 778 | $ | 732 | |||||||||||||||||||||
Average net assets (000) | $1,559 | $ | 1,226 | $ | 1,196 | $ | 950 | $ | 725 | $ | 608 | |||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.05 | %(d) | 0.08 | %(e) | 0.08 | % | 0.07 | % | 0.07 | % | 0.08 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.11 | %(d) | 1.20 | % | 1.03 | % | 1.44 | % | 3.47 | % | 4.47 | % | ||||||||||||||||||||
Net investment income (loss) | 3.24 | %(d) | 2.55 | % | 2.87 | % | 1.19 | % | 2.11 | % | 1.73 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 59 | % | 26 | % | 59 | % | 39 | % | 42 | % | 30 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.01% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
162
PGIM Target Date 2050 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.48 | $12.43 | $14.98 | $11.57 | $11.64 | $11.99 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.21 | 0.33 | 0.41 | 0.18 | 0.24 | 0.20 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.20 | 0.69 | (1.36 | ) | 3.52 | 0.26 | (0.03 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.41 | 1.02 | (0.95 | ) | 3.70 | 0.50 | 0.17 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.24 | ) | (1.02 | ) | (0.21 | ) | (0.27 | ) | (0.33 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.20 | ) | (0.73 | ) | (0.58 | ) | (0.08 | ) | (0.30 | ) | (0.19 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.50 | ) | (0.97 | ) | (1.60 | ) | (0.29 | ) | (0.57 | ) | (0.52 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.39 | $12.48 | $12.43 | $14.98 | $11.57 | $11.64 | ||||||||||||||||||||||||||
Total Return(b): | 3.30 | % | 9.29 | % | (7.47 | )% | 32.33 | % | 4.11 | % | 2.33 | % | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $11,059 | $20,189 | $18,346 | $18,291 | $13,037 | $7,037 | ||||||||||||||||||||||||||
Average net assets (000) | $18,731 | $18,311 | $20,531 | $17,795 | $8,309 | $5,316 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.00 | %(e) | 0.00 | %(f) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.09 | )%(e) | (0.07 | )%(f) | (0.07 | )% | (0.08 | )% | (0.08 | )% | (0.07 | )% | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.75 | %(e) | 0.81 | % | 0.58 | % | 0.63 | % | 1.67 | % | 2.60 | % | ||||||||||||||||||||
Net investment income (loss) | 3.45 | %(e) | 2.81 | % | 2.98 | % | 1.33 | % | 2.13 | % | 1.75 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 59 | % | 26 | % | 59 | % | 39 | % | 42 | % | 30 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.01% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
See Notes to Financial Statements.
PGIM Target Date Funds 163
PGIM Target Date 2050 Fund
Financial Highlights (unaudited) (continued)
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
164
PGIM Target Date 2055 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.9% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity—51.5% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 27,468 | $ | 361,472 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 61,088 | 2,287,151 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 54,882 | 537,299 | ||||||
|
| |||||||
3,185,922 | ||||||||
|
| |||||||
Fixed Income—11.7% | ||||||||
PGIM Core Conservative Bond Fund (Class R6) | 7,247 | 62,759 | ||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 37,688 | 249,119 | ||||||
PGIM TIPS Fund (Class R6) | 8,870 | 75,398 | ||||||
PGIM Total Return Bond Fund (Class R6) | 28,160 | 339,048 | ||||||
|
| |||||||
726,324 | ||||||||
|
| |||||||
International Equity—36.7% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 16,860 | 310,393 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 50,535 | 541,731 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 106,310 | 1,418,171 | ||||||
|
| |||||||
2,270,295 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $5,545,780) | 6,182,541 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.2% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $8,708) | 8,708 | 8,708 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.1% | ||||||||
(cost $5,554,488)(wa) | 6,191,249 | |||||||
Liabilities in excess of other assets (0.1)% | (3,708 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 6,187,541 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
TIPS—Treasury Inflation-Protected Securities
(wa) Represents investments in Funds affiliated with the Manager.
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.
See Notes to Financial Statements.
PGIM Target Date Funds 165
PGIM Target Date 2055 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
Affiliated Mutual Funds | |||||||||||||||
Domestic Equity | $3,185,922 | $— | $— | ||||||||||||
Fixed Income | 726,324 | — | — | ||||||||||||
International Equity | 2,270,295 | — | — | ||||||||||||
Short-Term Investment | |||||||||||||||
Affiliated Mutual Fund. | 8,708 | — | — | ||||||||||||
|
|
|
|
|
| ||||||||||
Total | $6,191,249 | $— | $— | ||||||||||||
|
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 51.5 | % | ||
International Equity | 36.7 |
Fixed Income | 11.7 | % | ||
Short Term | 0.2 | |||
|
| |||
100.1 | ||||
Liabilities in excess of other assets | (0.1 | ) | ||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
166
PGIM Target Date 2055 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||||
Affiliated investments (cost $5,554,488) | $ | 6,191,249 | ||||||
Receivable for investments sold | 53,931 | |||||||
Receivable for Fund shares sold | 20,127 | |||||||
Due from Manager | 15,747 | |||||||
Prepaid expenses | 5,376 | |||||||
|
| |||||||
Total Assets | 6,286,430 | |||||||
|
| |||||||
Liabilities | ||||||||
Payable for investments purchased | 43,977 | |||||||
Payable for Fund shares purchased | 30,095 | |||||||
Custodian and accounting fees payable | 13,941 | |||||||
Audit fee payable | 9,162 | |||||||
Trustees’ fees payable | 745 | |||||||
Accrued expenses and other liabilities | 492 | |||||||
Affiliated transfer agent fee payable | 404 | |||||||
Distribution fee payable | 73 | |||||||
|
| |||||||
Total Liabilities | 98,889 | |||||||
|
| |||||||
Net Assets | $ | 6,187,541 | ||||||
|
| |||||||
Net assets were comprised of: | ||||||||
Shares of beneficial interest, at par | $ | 575 | ||||||
Paid-in capital in excess of par | 5,140,494 | |||||||
Total distributable earnings (loss) | 1,046,472 | |||||||
|
| |||||||
Net assets, January 31, 2024 | $ | 6,187,541 | ||||||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 167
PGIM Target Date 2055 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, ($18,576 ÷ 1,746 shares of beneficial interest issued and outstanding) | $ | 10.64 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, ($286,111 ÷ 26,744 shares of beneficial interest issued and outstanding) | $ | 10.70 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, ($61,843 ÷ 5,773 shares of beneficial interest issued and outstanding) | $ | 10.71 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, ($44,449 ÷ 4,144 shares of beneficial interest issued and outstanding) | $ | 10.73 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, ($695,785 ÷ 64,694 shares of beneficial interest issued and outstanding) | $ | 10.75 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, ($5,080,777 ÷ 471,995 shares of beneficial interest issued and outstanding) | $ | 10.76 | ||||||
|
| |||||||
Net asset value per share may not recalculate due to rounding. |
See Notes to Financial Statements.
168
PGIM Target Date 2055 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 154,881 | ||
|
| |||
Expenses | ||||
Management fee | 636 | |||
Distribution fee(a) | 395 | |||
Shareholder servicing fees(a) | 8 | |||
Custodian and accounting fees | 28,837 | |||
Professional fees | 16,524 | |||
Registration fees(a) | 12,518 | |||
Audit fee | 9,163 | |||
Fund data services | 5,273 | |||
Shareholders’ reports | 5,169 | |||
Trustees’ fees | 4,826 | |||
Transfer agent’s fees and expenses (including affiliated expense of $1,173)(a) | 2,106 | |||
Miscellaneous | 2,996 | |||
|
| |||
Total expenses | 88,451 | |||
Less: Fee waiver and/or expense reimbursement(a) | (90,438 | ) | ||
|
| |||
Net expenses | (1,987 | ) | ||
|
| |||
Net investment income (loss) | 156,868 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 1,014,730 | |||
Net capital gain distributions received | 164,009 | |||
|
| |||
1,178,739 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (1,026,692 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 152,047 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 308,915 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 44 | 327 | 24 | — | — | — | ||||||||||||||||||
Shareholder servicing fees | — | — | — | 8 | — | — | ||||||||||||||||||
Registration fees | 1,815 | 3,347 | 1,814 | 1,814 | 1,814 | 1,914 | ||||||||||||||||||
Transfer agent’s fees and expenses | 43 | 499 | 40 | 51 | 529 | 944 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,991 | ) | (5,833 | ) | (2,217 | ) | (2,178 | ) | (7,233 | ) | (70,986 | ) |
See Notes to Financial Statements.
PGIM Target Date Funds 169
PGIM Target Date 2055 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 156,868 | $ | 203,766 | ||||
Net realized gain (loss) on investment transactions | 1,014,730 | (75,257 | ) | |||||
Net capital gain distributions received | 164,009 | 206,836 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (1,026,692 | ) | 466,583 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 308,915 | 801,928 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R1 | (506 | ) | (801 | ) | ||||
Class R2 | (8,217 | ) | (11,086 | ) | ||||
Class R3 | (1,615 | ) | (716 | ) | ||||
Class R4 | (1,372 | ) | (1,446 | ) | ||||
Class R5 | (20,785 | ) | (20,287 | ) | ||||
Class R6 | (298,085 | ) | (333,082 | ) | ||||
|
|
|
| |||||
(330,580 | ) | (367,418 | ) | |||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 1,317,698 | 2,609,248 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 330,580 | 367,418 | ||||||
Cost of shares purchased | (4,506,723 | ) | (1,420,797 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (2,858,445 | ) | 1,555,869 | |||||
|
|
|
| |||||
Total increase (decrease) | (2,880,110 | ) | 1,990,379 | |||||
Net Assets: | ||||||||
Beginning of period | 9,067,651 | 7,077,272 | ||||||
|
|
|
| |||||
End of period | $ | 6,187,541 | $ | 9,067,651 | ||||
|
|
|
|
See Notes to Financial Statements.
170
PGIM Target Date 2055 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.65 | $10.28 | $14.78 | $11.33 | $11.52 | $12.10 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.14 | (b) | 0.19 | 0.26 | 0.08 | 0.18 | 0.14 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.15 | (c) | 0.68 | (1.10 | ) | 3.58 | 0.18 | (0.15 | ) | |||||||||||||||||
Total from investment operations | 0.29 | 0.87 | (0.84 | ) | 3.66 | 0.36 | (0.01 | ) | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.03 | ) | (0.91 | ) | (0.11 | ) | (0.19 | ) | (0.24 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.47 | ) | (2.75 | ) | (0.10 | ) | (0.36 | ) | (0.33 | ) | |||||||||||||||
Total dividends and distributions | (0.30 | ) | (0.50 | ) | (3.66 | ) | (0.21 | ) | (0.55 | ) | (0.57 | ) | ||||||||||||||
Net asset value, end of period | $10.64 | $10.65 | $10.28 | $14.78 | $11.33 | $11.52 | ||||||||||||||||||||
Total Return(d): | 2.71 | % | 9.11 | % | (8.47 | )% | 32.63 | % | 2.89 | % | 0.89 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $19 | $18 | $17 | $18 | $14 | $15 | ||||||||||||||||||||
Average net assets (000) | $18 | $16 | $18 | $16 | $14 | $15 | ||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.68 | %(f) | 0.68 | %(g) | 0.67 | % | 0.66 | % | 0.65 | % | 0.66 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 23.21 | %(f) | 21.35 | % | 22.90 | % | 42.22 | % | 93.51 | % | 81.24 | % | ||||||||||||||
Net investment income (loss) | 2.68 | %(f) | 1.97 | % | 2.17 | % | 0.57 | % | 1.62 | % | 1.22 | % | ||||||||||||||
Portfolio turnover rate(h) | 67 | % | 29 | % | 60 | % | 37 | % | 45 | % | 29 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 171
PGIM Target Date 2055 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.71 | $10.31 | $14.82 | $11.36 | $11.54 | $12.12 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | (b) | 0.22 | 0.29 | 0.10 | 0.14 | 0.12 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.16 | (c) | 0.68 | (1.11 | ) | 3.60 | 0.25 | (0.10 | ) | |||||||||||||||||
Total from investment operations | 0.31 | 0.90 | (0.82 | ) | 3.70 | 0.39 | 0.02 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.32 | ) | (0.03 | ) | (0.94 | ) | (0.14 | ) | (0.21 | ) | (0.27 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.47 | ) | (2.75 | ) | (0.10 | ) | (0.36 | ) | (0.33 | ) | |||||||||||||||
Total dividends and distributions | (0.32 | ) | (0.50 | ) | (3.69 | ) | (0.24 | ) | (0.57 | ) | (0.60 | ) | ||||||||||||||
Net asset value, end of period | $10.70 | $10.71 | $10.31 | $14.82 | $11.36 | $11.54 | ||||||||||||||||||||
Total Return(d): | 2.93 | % | 9.38 | % | (8.28 | )% | 32.93 | % | 3.19 | % | 1.19 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $286 | $253 | $278 | $305 | $142 | $63 | ||||||||||||||||||||
Average net assets (000) | $260 | $229 | $311 | $188 | $83 | $43 | ||||||||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.43 | %(f) | 0.43 | %(g) | 0.42 | % | 0.41 | % | 0.40 | % | 0.41 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 4.89 | %(f) | 4.86 | % | 4.25 | % | 6.37 | % | 19.04 | % | 30.82 | % | ||||||||||||||
Net investment income (loss) | 2.97 | %(f) | 2.21 | % | 2.40 | % | 0.73 | % | 1.28 | % | 1.05 | % | ||||||||||||||
Portfolio turnover rate(h) | 67 | % | 29 | % | 60 | % | 37 | % | 45 | % | 29 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(d) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
172
PGIM Target Date 2055 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.73 | $10.32 | $14.82 | $11.36 | $11.55 | $12.13 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.16 | 0.02 | 0.13 | 0.20 | 0.18 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.15 | 0.75 | (0.80 | ) | 3.59 | 0.20 | (0.14 | ) | ||||||||||||||||||
Total from investment operations | 0.32 | 0.91 | (0.78 | ) | 3.72 | 0.40 | 0.04 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.34 | ) | (0.03 | ) | (0.97 | ) | (0.16 | ) | (0.23 | ) | (0.29 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.47 | ) | (2.75 | ) | (0.10 | ) | (0.36 | ) | (0.33 | ) | |||||||||||||||
Total dividends and distributions | (0.34 | ) | (0.50 | ) | (3.72 | ) | (0.26 | ) | (0.59 | ) | (0.62 | ) | ||||||||||||||
Net asset value, end of period | $10.71 | $10.73 | $10.32 | $14.82 | $11.36 | $11.55 | ||||||||||||||||||||
Total Return(b): | 2.95 | % | 9.47 | % | (8.03 | )% | 33.09 | % | 3.26 | % | 1.37 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $62 | $43 | $15 | $7,549 | $4,867 | $3,699 | ||||||||||||||||||||
Average net assets (000) | $47 | $22 | $166 | $6,237 | $4,140 | $3,177 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.27 | %(d) | 0.29 | %(e) | 0.25 | % | 0.26 | % | 0.25 | % | 0.26 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 9.63 | %(d) | 15.85 | % | 3.82 | % | 1.52 | % | 2.92 | % | 3.70 | % | ||||||||||||||
Net investment income (loss) | 3.26 | %(d) | 1.61 | % | 0.15 | % | 0.95 | % | 1.83 | % | 1.59 | % | ||||||||||||||
Portfolio turnover rate(f) | 67 | % | 29 | % | 60 | % | 37 | % | 45 | % | 29 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 173
PGIM Target Date 2055 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.75 | $10.33 | $14.84 | $11.37 | $11.56 | $12.14 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.25 | 0.31 | 0.14 | 0.22 | 0.26 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.16 | 0.67 | (1.09 | ) | 3.60 | 0.19 | (0.21 | ) | ||||||||||||||||||
Total from investment operations | 0.33 | 0.92 | (0.78 | ) | 3.74 | 0.41 | 0.05 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.35 | ) | (0.03 | ) | (0.98 | ) | (0.17 | ) | (0.24 | ) | (0.30 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.47 | ) | (2.75 | ) | (0.10 | ) | (0.36 | ) | (0.33 | ) | |||||||||||||||
Total dividends and distributions | (0.35 | ) | (0.50 | ) | (3.73 | ) | (0.27 | ) | (0.60 | ) | (0.63 | ) | ||||||||||||||
Net asset value, end of period | $10.73 | $10.75 | $10.33 | $14.84 | $11.37 | $11.56 | ||||||||||||||||||||
Total Return(b): | 3.06 | % | 9.56 | % | (8.01 | )% | 33.27 | % | 3.38 | % | 1.49 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $44 | $39 | $20 | $17 | $13 | $13 | ||||||||||||||||||||
Average net assets (000) | $40 | $29 | $18 | $15 | $12 | $33 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.17 | %(d) | 0.18 | %(e) | 0.17 | % | 0.16 | % | 0.15 | % | 0.17 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 11.03 | %(d) | 12.52 | % | 22.13 | % | 43.43 | % | 106.71 | % | 37.86 | % | ||||||||||||||
Net investment income (loss) | 3.25 | %(d) | 2.48 | % | 2.54 | % | 1.07 | % | 2.02 | % | 2.20 | % | ||||||||||||||
Portfolio turnover rate(f) | 67 | % | 29 | % | 60 | % | 37 | % | 45 | % | 29 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
174
PGIM Target Date 2055 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.78 | $10.35 | $14.86 | $11.38 | $11.56 | $12.15 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.24 | 0.34 | 0.15 | 0.24 | 0.14 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.16 | 0.69 | (1.11 | ) | 3.61 | 0.19 | (0.09 | ) | ||||||||||||||||||
Total from investment operations | 0.33 | 0.93 | (0.77 | ) | 3.76 | 0.43 | 0.05 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (0.36 | ) | (0.03 | ) | (0.99 | ) | (0.18 | ) | (0.25 | ) | (0.31 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.47 | ) | (2.75 | ) | (0.10 | ) | (0.36 | ) | (0.33 | ) | |||||||||||||||
Total dividends and distributions | (0.36 | ) | (0.50 | ) | (3.74 | ) | (0.28 | ) | (0.61 | ) | (0.64 | ) | ||||||||||||||
Net asset value, end of period | $10.75 | $10.78 | $10.35 | $14.86 | $11.38 | $11.56 | ||||||||||||||||||||
Total Return(b): | 3.06 | % | 9.64 | % | (7.88 | )% | 33.45 | % | 3.51 | % | 1.53 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $696 | $565 | $367 | $247 | $136 | $90 | ||||||||||||||||||||
Average net assets (000) | $599 | $447 | $317 | $188 | $111 | $50 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.07 | %(d) | 0.08 | %(e) | 0.07 | % | 0.06 | % | 0.05 | % | 0.05 | % | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.47 | %(d) | 2.95 | % | 2.87 | % | 4.74 | % | 14.21 | % | 26.07 | % | ||||||||||||||
Net investment income (loss) | 3.31 | %(d) | 2.45 | % | 2.79 | % | 1.12 | % | 2.15 | % | 1.20 | % | ||||||||||||||
Portfolio turnover rate(f) | 67 | % | 29 | % | 60 | % | 37 | % | 45 | % | 29 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 175
PGIM Target Date 2055 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.80 | $10.34 | $14.86 | $11.38 | $11.57 | $12.16 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.28 | 0.37 | 0.17 | 0.22 | 0.21 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.14 | 0.68 | (1.12 | ) | 3.61 | 0.22 | (0.14 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.33 | 0.96 | (0.75 | ) | 3.78 | 0.44 | 0.07 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.37 | ) | (0.03 | ) | (1.02 | ) | (0.20 | ) | (0.27 | ) | (0.33 | ) | ||||||||||||||||||||
Distributions from net realized gains | - | (0.47 | ) | (2.75 | ) | (0.10 | ) | (0.36 | ) | (0.33 | ) | |||||||||||||||||||||
Total dividends and distributions | (0.37 | ) | (0.50 | ) | (3.77 | ) | (0.30 | ) | (0.63 | ) | (0.66 | ) | ||||||||||||||||||||
Net asset value, end of period | $10.76 | $10.80 | $10.34 | $14.86 | $11.38 | $11.57 | ||||||||||||||||||||||||||
Total Return(b): | 3.11 | % | 9.95 | % | (7.82 | )% | 33.63 | % | 3.60 | % | 1.72 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $5,081 | $8,151 | $6,382 | $7,681 | $5,451 | $3,635 | ||||||||||||||||||||||||||
Average net assets (000) | $7,816 | $6,741 | $8,322 | $7,616 | $4,340 | $3,169 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expensereimbursement(d) | 0.00 | %(e) | 0.00 | %(f) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Expenses after waivers and/or reimbursement inclusiveof excess expense reimbursement from the manager | (0.07 | )%(e) | (0.07 | )%(f) | (0.08 | )% | (0.09 | )% | (0.10 | )% | (0.09 | )% | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.74 | %(e) | 2.12 | % | 1.57 | % | 1.16 | % | 2.57 | % | 3.36 | % | ||||||||||||||||||||
Net investment income (loss) | 3.60 | %(e) | 2.76 | % | 3.01 | % | 1.27 | % | 2.01 | % | 1.87 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 67 | % | 29 | % | 60 | % | 37 | % | 45 | % | 29 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
176
PGIM Target Date 2060 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.9% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity—51.2% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 29,052 | $ | 382,328 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 62,126 | 2,325,985 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 58,679 | 574,466 | ||||||
|
| |||||||
3,282,779 | ||||||||
|
| |||||||
Fixed Income—9.7% | ||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 39,027 | 257,966 | ||||||
PGIM Total Return Bond Fund (Class R6) | 30,241 | 364,102 | ||||||
|
| |||||||
622,068 | ||||||||
|
| |||||||
International Equity—39.0% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 17,460 | 321,441 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 55,826 | 598,454 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 118,185 | 1,576,585 | ||||||
|
| |||||||
2,496,480 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $5,880,574) | 6,401,327 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.1% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $7,200) | 7,200 | 7,200 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.0% | ||||||||
(cost $5,887,774)(wa) | 6,408,527 | |||||||
Liabilities in excess of other assets (0.0)% | (2,037 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 6,406,490 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
(wa) Represents investments in Funds affiliated with the Manager.
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.
See Notes to Financial Statements.
PGIM Target Date Funds 177
PGIM Target Date 2060 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
Affiliated Mutual Funds | |||||||||||||||
Domestic Equity | $3,282,779 | $— | $— | ||||||||||||
Fixed Income | 622,068 | — | — | ||||||||||||
International Equity | 2,496,480 | — | — | ||||||||||||
Short-Term Investment | |||||||||||||||
Affiliated Mutual Fund. | 7,200 | — | — | ||||||||||||
|
|
|
|
|
| ||||||||||
Total | $6,408,527 | $— | $— | ||||||||||||
|
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 51.2 | % | ||
International Equity | 39.0 |
Fixed Income | 9.7 | % | ||
Short Term | 0.1 | |||
|
| |||
100.0 | ||||
Liabilities in excess of other assets | (0.0 | )* | ||
|
| |||
100.0 | % | |||
|
|
* | Less than 0.05% |
See Notes to Financial Statements.
178
PGIM Target Date 2060 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||||
Affiliated investments (cost $5,887,774) | $ | 6,408,527 | ||||
Receivable for investments sold | 69,004 | |||||
Due from Manager | 15,411 | |||||
Receivable for Fund shares sold | 13,677 | |||||
Prepaid expenses | 4,602 | |||||
|
| |||||
Total Assets | 6,511,221 | |||||
|
| |||||
Liabilities | ||||||
Payable for investments purchased | 78,690 | |||||
Custodian and accounting fees payable | 12,444 | |||||
Audit fee payable | 9,165 | |||||
Accrued expenses and other liabilities | 1,628 | |||||
Payable for Fund shares purchased | 1,607 | |||||
Trustees’ fees payable | 747 | |||||
Affiliated transfer agent fee payable | 370 | |||||
Distribution fee payable | 80 | |||||
|
| |||||
Total Liabilities | 104,731 | |||||
|
| |||||
Net Assets | $ | 6,406,490 | ||||
|
| |||||
Net assets were comprised of: | ||||||
Shares of beneficial interest, at par | $ | 490 | ||||
Paid-in capital in excess of par | 5,863,283 | |||||
Total distributable earnings (loss) | 542,717 | |||||
|
| |||||
Net assets, January 31, 2024 | $ | 6,406,490 | ||||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 179
PGIM Target Date 2060 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 12.98 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 13.03 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 13.03 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 13.04 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 13.05 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 13.07 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
180
PGIM Target Date 2060 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 131,876 | ||
|
| |||
Expenses | ||||
Management fee | 533 | |||
Distribution fee(a) | 428 | |||
Shareholder servicing fees(a) | 4 | |||
Custodian and accounting fees | 28,826 | |||
Professional fees | 16,520 | |||
Registration fees(a) | 12,070 | |||
Audit fee | 9,163 | |||
Fund data services | 5,273 | |||
Shareholders’ reports | 4,936 | |||
Trustees’ fees | 4,828 | |||
Transfer agent’s fees and expenses (including affiliated expense of $1,090)(a) | 2,164 | |||
Miscellaneous | 2,986 | |||
|
| |||
Total expenses | 87,731 | |||
Less: Fee waiver and/or expense reimbursement(a) | (89,191 | ) | ||
|
| |||
Net expenses | (1,460 | ) | ||
|
| |||
Net investment income (loss) | 133,336 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 566,538 | |||
Net capital gain distributions received | 138,346 | |||
|
| |||
704,884 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (590,627 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 114,257 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 247,593 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||||||||
Distribution fee | 59 | 348 | 21 | — | — | — | ||||||||||||||||||||||||
Shareholder servicing fees | 3 | — | 1 | — | — | — | ||||||||||||||||||||||||
Registration fees | 1,510 | 2,362 | 1,810 | 1,810 | 1,809 | 2,769 | ||||||||||||||||||||||||
Transfer agent’s fees and expenses | 55 | 536 | 17 | 42 | 564 | 950 | ||||||||||||||||||||||||
Fee waiver and/or expense reimbursement | (1,780 | ) | (5,394 | ) | (2,204 | ) | (2,097 | ) | (9,758 | ) | (67,958 | ) |
See Notes to Financial Statements.
PGIM Target Date Funds 181
PGIM Target Date 2060 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 133,336 | $ | 191,579 | ||||||||||
Net realized gain (loss) on investment transactions | 566,538 | (233,626 | ) | |||||||||||
Net capital gain distributions received | 138,346 | 200,537 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (590,627 | ) | 551,871 | |||||||||||
|
|
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | 247,593 | 710,361 | ||||||||||||
|
|
|
| |||||||||||
Dividends and Distributions | ||||||||||||||
Distributions from distributable earnings | ||||||||||||||
Class R1 | (758 | ) | (1,368 | ) | ||||||||||
Class R2 | (9,509 | ) | (14,355 | ) | ||||||||||
Class R3 | (1,491 | ) | (2,367 | ) | ||||||||||
Class R4 | (1,076 | ) | (1,435 | ) | ||||||||||
Class R5 | (29,399 | ) | (35,836 | ) | ||||||||||
Class R6 | (248,877 | ) | (494,175 | ) | ||||||||||
|
|
|
| |||||||||||
(291,110 | ) | (549,536 | ) | |||||||||||
|
|
|
| |||||||||||
Fund share transactions | ||||||||||||||
Net proceeds from shares sold | 1,223,919 | 2,310,502 | ||||||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 291,110 | 549,536 | ||||||||||||
Cost of shares purchased | (2,766,191 | ) | (2,271,256 | ) | ||||||||||
|
|
|
| |||||||||||
Net increase (decrease) in net assets from Fund share transactions | (1,251,162 | ) | 588,782 | |||||||||||
|
|
|
| |||||||||||
Total increase (decrease) | (1,294,679 | ) | 749,607 | |||||||||||
Net Assets: | ||||||||||||||
Beginning of period | 7,701,169 | 6,951,562 | ||||||||||||
|
|
|
| |||||||||||
End of period | $ | 6,406,490 | $ | 7,701,169 | ||||||||||
|
|
|
|
See Notes to Financial Statements.
182
PGIM Target Date 2060 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.02 | $12.82 | $15.17 | $11.49 | $11.62 | $12.06 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.24 | 0.29 | 0.08 | 0.17 | 0.13 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.17 | 0.84 | (1.46 | ) | 3.74 | 0.16 | (0.15 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.35 | 1.08 | (1.17 | ) | 3.82 | 0.33 | (0.02 | ) | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.36 | ) | (0.19 | ) | (0.95 | ) | (0.08 | ) | (0.20 | ) | (0.25 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.69 | ) | (0.23 | ) | (0.06 | ) | (0.26 | ) | (0.17 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.39 | ) | (0.88 | ) | (1.18 | ) | (0.14 | ) | (0.46 | ) | (0.42 | ) | ||||||||||||||||||||
Net asset value, end of period | $12.98 | $13.02 | $12.82 | $15.17 | $11.49 | $11.62 | ||||||||||||||||||||||||||
Total Return(b): | 2.72 | % | 9.38 | % | (8.62 | )% | 33.45 | % | 2.70 | % | 0.57 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $26 | $22 | $17 | $17 | $13 | $12 | ||||||||||||||||||||||||||
Average net assets (000) | $24 | $19 | $17 | $15 | $12 | $12 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.67 | %(d) | 0.67 | %(e) | 0.66 | % | 0.65 | % | 0.65 | % | 0.66 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 15.63 | %(d) | 18.47 | % | 23.66 | % | 46.33 | % | 114.36 | % | 111.01 | % | ||||||||||||||||||||
Net investment income (loss) | 2.84 | %(d) | 1.98 | % | 2.06 | % | 0.56 | % | 1.56 | % | 1.10 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 65 | % | 42 | % | 64 | % | 35 | % | 44 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 183
PGIM Target Date 2060 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.09 | $12.86 | $15.21 | $11.52 | $11.63 | $12.08 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.25 | 0.52 | 0.10 | 0.16 | 0.15 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.18 | 0.87 | (1.66 | ) | 3.76 | 0.21 | (0.15 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.37 | 1.12 | (1.14 | ) | 3.86 | 0.37 | -(b | ) | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.40 | ) | (0.20 | ) | (0.98 | ) | (0.11 | ) | (0.22 | ) | (0.28 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.69 | ) | (0.23 | ) | (0.06 | ) | (0.26 | ) | (0.17 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.43 | ) | (0.89 | ) | (1.21 | ) | (0.17 | ) | (0.48 | ) | (0.45 | ) | ||||||||||||||||||||
Net asset value, end of period | $13.03 | $13.09 | $12.86 | $15.21 | $11.52 | $11.63 | ||||||||||||||||||||||||||
Total Return(c): | 2.80 | % | 9.70 | % | (8.37 | )% | 33.76 | % | 2.96 | % | 0.79 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $317 | $267 | $199 | $1,755 | $889 | $388 | ||||||||||||||||||||||||||
Average net assets (000) | $277 | $215 | $1,330 | $1,291 | $587 | $226 | ||||||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.42 | %(e) | 0.43 | %(f) | 0.41 | % | 0.40 | % | 0.40 | % | 0.41 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 4.30 | %(e) | 4.78 | % | 2.45 | % | 3.46 | % | 9.69 | % | 18.79 | % | ||||||||||||||||||||
Net investment income (loss) | 3.05 | %(e) | 2.07 | % | 3.57 | % | 0.74 | % | 1.47 | % | 1.31 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 65 | % | 42 | % | 64 | % | 35 | % | 44 | % | 35 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
184
PGIM Target Date 2060 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.10 | $12.89 | $15.25 | $11.55 | $11.65 | $12.09 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.20 | 0.28 | 0.16 | 0.12 | 0.17 | 0.14 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.17 | 0.86 | (1.28 | ) | 3.77 | 0.21 | (0.11 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.37 | 1.14 | (1.12 | ) | 3.89 | 0.38 | 0.03 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.41 | ) | (0.24 | ) | (1.01 | ) | (0.13 | ) | (0.22 | ) | (0.30 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.69 | ) | (0.23 | ) | (0.06 | ) | (0.26 | ) | (0.17 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.44 | ) | (0.93 | ) | (1.24 | ) | (0.19 | ) | (0.48 | ) | (0.47 | ) | ||||||||||||||||||||
Net asset value, end of period | $13.03 | $13.10 | $12.89 | $15.25 | $11.55 | $11.65 | ||||||||||||||||||||||||||
Total Return(b): | 2.87 | % | 9.90 | % | (8.28 | )% | 33.94 | % | 3.12 | % | 1.05 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $46 | $41 | $31 | $1,472 | $685 | $279 | ||||||||||||||||||||||||||
Average net assets (000) | $42 | $33 | $55 | $1,051 | $450 | $173 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.27 | %(d) | 0.28 | %(e) | 0.25 | % | 0.25 | % | 0.25 | % | 0.26 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 10.78 | %(d) | 11.21 | % | 8.75 | % | 3.27 | % | 10.14 | % | 20.50 | % | ||||||||||||||||||||
Net investment income (loss) | 3.20 | %(d) | 2.26 | % | 1.25 | % | 0.89 | % | 1.54 | % | 1.25 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 65 | % | 42 | % | 64 | % | 35 | % | 44 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 185
PGIM Target Date 2060 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.11 | $12.91 | $15.26 | $11.56 | $11.65 | $12.10 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.23 | 0.29 | 0.37 | 0.14 | 0.23 | 0.19 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.16 | 0.85 | (1.47 | ) | 3.76 | 0.17 | (0.16 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.39 | 1.14 | (1.10 | ) | 3.90 | 0.40 | 0.03 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.43 | ) | (0.25 | ) | (1.02 | ) | (0.14 | ) | (0.23 | ) | (0.31 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.69 | ) | (0.23 | ) | (0.06 | ) | (0.26 | ) | (0.17 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.46 | ) | (0.94 | ) | (1.25 | ) | (0.20 | ) | (0.49 | ) | (0.48 | ) | ||||||||||||||||||||
Net asset value, end of period | $13.04 | $13.11 | $12.91 | $15.26 | $11.56 | $11.65 | ||||||||||||||||||||||||||
Total Return(b): | 2.95 | % | 9.93 | % | (8.12 | )% | 34.14 | % | 3.18 | % | 1.09 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $33 | $24 | $18 | $17 | $13 | $12 | ||||||||||||||||||||||||||
Average net assets (000) | $27 | $20 | $17 | $15 | $12 | $12 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.17 | %(d) | 0.18 | %(e) | 0.16 | % | 0.15 | % | 0.15 | % | 0.16 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 15.50 | %(d) | 16.92 | % | 22.95 | % | 44.92 | % | 112.23 | % | 106.19 | % | ||||||||||||||||||||
Net investment income (loss) | 3.52 | %(d) | 2.36 | % | 2.60 | % | 1.06 | % | 2.06 | % | 1.66 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 65 | % | 42 | % | 64 | % | 35 | % | 44 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
186
PGIM Target Date 2060 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.13 | $12.93 | $15.28 | $11.57 | $11.66 | $12.11 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.22 | 0.28 | 0.36 | 0.14 | 0.21 | 0.02 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.17 | 0.88 | (1.45 | ) | 3.78 | 0.20 | 0.02 | |||||||||||||||||||||||||
Total from investment operations | 0.39 | 1.16 | (1.09 | ) | 3.92 | 0.41 | 0.04 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.44 | ) | (0.27 | ) | (1.03 | ) | (0.15 | ) | (0.24 | ) | (0.32 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.69 | ) | (0.23 | ) | (0.06 | ) | (0.26 | ) | (0.17 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.47 | ) | (0.96 | ) | (1.26 | ) | (0.21 | ) | (0.50 | ) | (0.49 | ) | ||||||||||||||||||||
Net asset value, end of period | $13.05 | $13.13 | $12.93 | $15.28 | $11.57 | $11.66 | ||||||||||||||||||||||||||
Total Return(b): | 2.98 | % | 10.04 | % | (8.01 | )% | 34.21 | % | 3.30 | % | 1.21 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $947 | $692 | $442 | $227 | $95 | $67 | ||||||||||||||||||||||||||
Average net assets (000) | $775 | $519 | $333 | $154 | $84 | $35 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.07 | %(d) | 0.08 | %(e) | 0.06 | % | 0.05 | % | 0.05 | % | 0.06 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.58 | %(d) | 2.92 | % | 2.96 | % | 6.69 | % | 22.80 | % | 45.88 | % | ||||||||||||||||||||
Net investment income (loss) | 3.42 | %(d) | 2.32 | % | 2.58 | % | 1.02 | % | 1.91 | % | 0.15 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 65 | % | 42 | % | 64 | % | 35 | % | 44 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | Annualized. |
(e) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 187
PGIM Target Date 2060 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.15 | $12.95 | $15.31 | $11.58 | $11.66 | $12.11 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.23 | 0.33 | 0.40 | 0.15 | 0.24 | 0.22 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.18 | 0.85 | (1.47 | ) | 3.81 | 0.18 | (0.16 | ) | ||||||||||||||||||||||||
Total from investment operations | 0.41 | 1.18 | (1.07 | ) | 3.96 | 0.42 | 0.06 | |||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.46 | ) | (0.29 | ) | (1.06 | ) | (0.17 | ) | (0.24 | ) | (0.34 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | (0.69 | ) | (0.23 | ) | (0.06 | ) | (0.26 | ) | (0.17 | ) | ||||||||||||||||||||
Total dividends and distributions | (0.49 | ) | (0.98 | ) | (1.29 | ) | (0.23 | ) | (0.50 | ) | (0.51 | ) | ||||||||||||||||||||
Net asset value, end of period | $13.07 | $13.15 | $12.95 | $15.31 | $11.58 | $11.66 | ||||||||||||||||||||||||||
Total Return(b): | 3.11 | % | 10.20 | % | (7.93 | )% | 34.50 | % | 3.46 | % | 1.39 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $5,038 | $6,655 | $6,246 | $5,912 | $2,154 | $1,424 | ||||||||||||||||||||||||||
Average net assets (000) | $6,298 | $6,474 | $6,501 | $4,213 | $1,657 | $981 | ||||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(d) | 0.00 | %(e) | 0.00 | %(f) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | (0.08 | )%(e) | (0.08 | )%(f) | (0.09 | )% | (0.10 | )% | (0.10 | )% | (0.09 | )% | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.07 | %(e) | 2.18 | % | 1.79 | % | 2.32 | % | 7.79 | % | 14.67 | % | ||||||||||||||||||||
Net investment income (loss) | 3.61 | %(e) | 2.68 | % | 2.85 | % | 1.11 | % | 2.09 | % | 1.90 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 65 | % | 42 | % | 64 | % | 35 | % | 44 | % | 35 | % |
(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 GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(d) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.02% which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
188
PGIM Target Date 2065 Fund
Schedule of Investments (unaudited)
as of January 31, 2024
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.9% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Domestic Equity—51.9% | ||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | 2,288 | $ | 30,104 | |||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | 4,750 | 177,851 | ||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | 4,566 | 44,704 | ||||||
|
| |||||||
252,659 | ||||||||
|
| |||||||
Fixed Income—7.9% | ||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | 2,965 | 19,597 | ||||||
PGIM Total Return Bond Fund (Class R6) | 1,559 | 18,770 | ||||||
|
| |||||||
38,367 | ||||||||
|
| |||||||
International Equity—40.1% | ||||||||
PGIM Global Real Estate Fund (Class R6) | 1,326 | 24,420 | ||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | 4,708 | 50,472 | ||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | 9,015 | 120,260 | ||||||
|
| |||||||
195,152 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $452,749) | 486,178 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.7% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | ||||||||
(cost $3,240) | 3,240 | 3,240 | ||||||
|
| |||||||
TOTAL INVESTMENTS 100.6% | ||||||||
(cost $455,989)(wa) | 489,418 | |||||||
Liabilities in excess of other assets (0.6)% | (2,865 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 486,553 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
SOFR—Secured Overnight Financing Rate
(wa) Represents investments in Funds affiliated with the Manager.
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.
See Notes to Financial Statements.
PGIM Target Date Funds 189
PGIM Target Date 2065 Fund
Schedule of Investments (unaudited) (continued)
as of January 31, 2024
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 January 31, 2024 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Affiliated Mutual Funds | ||||||||||||
Domestic Equity | $252,659 | $— | $— | |||||||||
Fixed Income | 38,367 | — | — | |||||||||
International Equity | 195,152 | — | — | |||||||||
Short-Term Investment | ||||||||||||
Affiliated Mutual Fund | 3,240 | — | — | |||||||||
|
|
|
|
| ||||||||
Total | $489,418 | $— | $— | |||||||||
|
|
|
|
|
Investment Allocation:
The investment allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of January 31, 2024 were as follows:
Domestic Equity | 51.9 | % | ||
International Equity | 40.1 |
Fixed Income | 7.9 | % | ||||||
Short Term | 0.7 | |||||||
|
| |||||||
100.6 | ||||||||
Liabilities in excess of other assets | (0.6 | ) | ||||||
|
| |||||||
100.0 | % | |||||||
|
|
See Notes to Financial Statements.
190
PGIM Target Date 2065 Fund
Statement of Assets & Liabilities (unaudited)
as of January 31, 2024
Assets | ||||
Affiliated investments (cost $455,989) | $ | 489,418 | ||
Due from Manager | 15,390 | |||
Receivable for investments sold | 5,731 | |||
Receivable for Fund shares sold | 123 | |||
Prepaid expenses | 5,866 | |||
|
| |||
Total Assets | 516,528 | |||
|
| |||
Liabilities | ||||
Custodian and accounting fees payable | 12,299 | |||
Audit fee payable | 9,163 | |||
Payable for investments purchased | 5,594 | |||
Shareholders’ reports fee payable | 1,237 | |||
Trustees’ fees payable | 826 | |||
Accrued expenses and other liabilities | 608 | |||
Affiliated transfer agent fee payable | 212 | |||
Distribution fee payable | 36 | |||
|
| |||
Total Liabilities | 29,975 | |||
|
| |||
Net Assets | $ | 486,553 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 43 | ||
Paid-in capital in excess of par | 456,534 | |||
Total distributable earnings (loss) | 29,976 | |||
|
| |||
Net assets, January 31, 2024 | $ | 486,553 | ||
|
|
See Notes to Financial Statements.
PGIM Target Date Funds 191
PGIM Target Date 2065 Fund
Statement of Assets & Liabilities (unaudited) (continued)
as of January 31, 2024
Class R1 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.41 | ||||||
|
| |||||||
Class R2 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.43 | ||||||
|
| |||||||
Class R3 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.43 | ||||||
|
| |||||||
Class R4 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.42 | ||||||
|
| |||||||
Class R5 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.42 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $ | 11.44 | ||||||
|
|
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
192
PGIM Target Date 2065 Fund
Statement of Operations (unaudited)
Six Months Ended January 31, 2024
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 11,018 | ||
|
| |||
Expenses | ||||
Management fee | 45 | |||
Distribution fee(a) | 196 | |||
Custodian and accounting fees | 28,810 | |||
Professional fees | 16,934 | |||
Registration fees(a) | 13,278 | |||
Audit fee | 9,163 | |||
Fund data services | 5,273 | |||
Shareholders’ reports | 5,097 | |||
Trustees’ fees | 4,826 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 615)(a) | 747 | |||
Miscellaneous | 2,565 | |||
|
| |||
Total expenses | 86,934 | |||
Less: Fee waiver and/or expense reimbursement(a) | (85,110 | ) | ||
|
| |||
Net expenses | 1,824 | |||
|
| |||
Net investment income (loss) | 9,194 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments | ||||
Net realized gain (loss) on investment transactions | 30,250 | |||
Net capital gain distributions received | 11,531 | |||
|
| |||
41,781 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | (36,482 | ) | ||
|
| |||
Net gain (loss) on investment transactions | 5,299 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 14,493 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class R1 | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||
Distribution fee | 31 | 153 | 12 | — | — | — | ||||||||||||||||||
Registration fees | 2,107 | 2,736 | 2,109 | 2,109 | 2,109 | 2,108 | ||||||||||||||||||
Transfer agent’s fees and expenses | 22 | 259 | 42 | 22 | 61 | 341 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (3,526 | ) | (16,593 | ) | (4,745 | ) | (3,554 | ) | (3,875 | ) | (52,817 | ) |
See Notes to Financial Statements.
PGIM Target Date Funds 193
PGIM Target Date 2065 Fund
Statements of Changes in Net Assets (unaudited)
Six Months Ended January 31, 2024 | Year Ended July 31, 2023 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 9,194 | $ | 10,323 | ||||
Net realized gain (loss) on investment transactions | 30,250 | (23,737 | ) | |||||
Net capital gain distributions received | 11,531 | 12,593 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (36,482 | ) | 57,897 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 14,493 | 57,076 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R1 | (203 | ) | (481 | ) | ||||
Class R2 | (2,208 | ) | (3,621 | ) | ||||
Class R3 | (608 | ) | (532 | ) | ||||
Class R4 | (277 | ) | (545 | ) | ||||
Class R5 | (347 | ) | (664 | ) | ||||
Class R6 | (10,419 | ) | (15,753 | ) | ||||
|
|
|
| |||||
(14,062 | ) | (21,596 | ) | |||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 88,718 | 315,760 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 14,062 | 21,596 | ||||||
Cost of shares purchased | (285,720 | ) | (162,372 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (182,940 | ) | 174,984 | |||||
|
|
|
| |||||
Total increase (decrease) | (182,509 | ) | 210,464 | |||||
Net Assets: | ||||||||
Beginning of period | 669,062 | 458,598 | ||||||
|
|
|
| |||||
End of period | $ | 486,553 | $ | 669,062 | ||||
|
|
|
|
See Notes to Financial Statements.
194
PGIM Target Date 2065 Fund
Financial Highlights (unaudited)
Class R1 Shares | ||||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | December 16, 2019(a) through July 31, | ||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.32 | $10.80 | $12.74 | $9.56 | $10.00 | |||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.12 | (c) | 0.18 | 0.26 | 0.06 | 0.02 | ||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.15 | (d) | 0.78 | (1.25 | ) | 3.18 | (0.41 | ) | ||||||||||||||||||||||||||
Total from investment operations | 0.27 | 0.96 | (0.99 | ) | 3.24 | (0.39 | ) | |||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.10 | ) | (0.16 | ) | (0.79 | ) | (0.05 | ) | (0.05 | ) | ||||||||||||||||||||||||
Distributions from net realized gains | (0.08 | ) | (0.28 | ) | (0.16 | ) | (0.01 | ) | - | |||||||||||||||||||||||||
Total dividends and distributions | (0.18 | ) | (0.44 | ) | (0.95 | ) | (0.06 | ) | (0.05 | ) | ||||||||||||||||||||||||
Net asset value, end of period | $11.41 | $11.32 | $10.80 | $12.74 | $9.56 | |||||||||||||||||||||||||||||
Total Return(e): | 2.37 | % | 9.50 | % | (8.61 | )% | 33.98 | % | (3.96 | )% | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $13 | $13 | $12 | $13 | $10 | |||||||||||||||||||||||||||||
Average net assets (000) | $12 | $12 | $13 | $11 | $9 | |||||||||||||||||||||||||||||
Ratios to average net assets(f): | ||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.21 | %(g)(h) | 0.87 | %(h) | 0.66 | % | 0.65 | % | 0.65 | %(g) | ||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 57.36 | %(g) | 60.29 | % | 59.08 | % | 96.73 | % | 485.07 | %(g) | ||||||||||||||||||||||||
Net investment income (loss) | 2.22 | %(g) | 1.68 | % | 2.16 | % | 0.55 | % | 0.32 | %(g) | ||||||||||||||||||||||||
Portfolio turnover rate(i) | 62 | % | 45 | % | 67 | % | 94 | % | 19 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(d) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(e) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(f) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(g) | Annualized. |
(h) | Includes certain non-recurring expenses of 0.60% and 0.22%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
See Notes to Financial Statements.
PGIM Target Date Funds 195
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
(i) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
196
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | December 16, 2019(a) through July 31, | ||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.34 | $10.82 | $12.77 | $9.58 | $10.00 | |||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.14 | 0.18 | 0.23 | 0.07 | 0.03 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.14 | 0.81 | (1.20 | ) | 3.20 | (0.40 | ) | |||||||||||||||||||||||||||
Total from investment operations | 0.28 | 0.99 | (0.97 | ) | 3.27 | (0.37 | ) | |||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.11 | ) | (0.19 | ) | (0.82 | ) | (0.07 | ) | (0.05 | ) | ||||||||||||||||||||||||
Distributions from net realized gains | (0.08 | ) | (0.28 | ) | (0.16 | ) | (0.01 | ) | - | |||||||||||||||||||||||||
Total dividends and distributions | (0.19 | ) | (0.47 | ) | (0.98 | ) | (0.08 | ) | (0.05 | ) | ||||||||||||||||||||||||
Net asset value, end of period | $11.43 | $11.34 | $10.82 | $12.77 | $9.58 | |||||||||||||||||||||||||||||
Total Return(c): | 2.43 | % | 9.77 | % | (8.45 | )% | 34.30 | % | (3.75 | )% | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $130 | $114 | $73 | $36 | $12 | |||||||||||||||||||||||||||||
Average net assets (000) | $122 | $89 | $65 | $22 | $10 | |||||||||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.98 | %(e)(f) | 0.65 | %(f) | 0.41 | % | 0.40 | % | 0.40 | %(e) | ||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 28.13 | %(e) | 36.05 | % | 34.43 | % | 71.91 | % | 446.28 | %(e) | ||||||||||||||||||||||||
Net investment income (loss) | 2.60 | %(e) | 1.74 | % | 1.97 | % | 0.63 | % | 0.49 | %(e) | ||||||||||||||||||||||||
Portfolio turnover rate(g) | 62 | % | 45 | % | 67 | % | 94 | % | 19 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.62% and 0.25%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 197
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
Class R3 Shares | ||||||||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | December 16, 2019(a) through July 31, | ||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.35 | $10.83 | $12.78 | $9.59 | $10.00 | |||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.12 | (c) | 0.16 | 0.30 | 0.11 | 0.04 | ||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.18 | (d) | 0.85 | (1.25 | ) | 3.18 | (0.40 | ) | ||||||||||||||||||||||||||
Total from investment operations | 0.30 | 1.01 | (0.95 | ) | 3.29 | (0.36 | ) | |||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.14 | ) | (0.21 | ) | (0.84 | ) | (0.09 | ) | (0.05 | ) | ||||||||||||||||||||||||
Distributions from net realized gains | (0.08 | ) | (0.28 | ) | (0.16 | ) | (0.01 | ) | - | |||||||||||||||||||||||||
Total dividends and distributions | (0.22 | ) | (0.49 | ) | (1.00 | ) | (0.10 | ) | (0.05 | ) | ||||||||||||||||||||||||
Net asset value, end of period | $11.43 | $11.35 | $10.83 | $12.78 | $9.59 | |||||||||||||||||||||||||||||
Total Return(e): | 2.61 | % | 9.94 | % | (8.30 | )% | 34.44 | % | (3.65 | )% | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $33 | $21 | $12 | $13 | $10 | |||||||||||||||||||||||||||||
Average net assets (000) | $23 | $15 | $13 | $11 | $9 | |||||||||||||||||||||||||||||
Ratios to average net assets(f): | ||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.87 | %(g)(h) | 0.53 | %(h) | 0.26 | % | 0.25 | % | 0.25 | %(g) | ||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 41.82 | %(g) | 53.40 | % | 58.37 | % | 96.05 | % | 484.23 | %(g) | ||||||||||||||||||||||||
Net investment income (loss) | 2.20 | %(g) | 1.54 | % | 2.56 | % | 0.95 | % | 0.72 | %(g) | ||||||||||||||||||||||||
Portfolio turnover rate(i) | 62 | % | 45 | % | 67 | % | 94 | % | 19 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(d) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
(e) | 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 GAAP. Total returns for periods less than one full year are not annualized. |
(f) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(g) | Annualized. |
(h) | Includes certain non-recurring expenses of 0.66% and 0.28%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
See Notes to Financial Statements.
198
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
(i) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 199
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
Class R4 Shares | |||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | December 16, 2019(a) through July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.36 | $10.84 | $12.79 | $9.59 | $10.00 | ||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.23 | 0.32 | 0.12 | 0.05 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.15 | 0.79 | (1.26 | ) | 3.19 | (0.41 | ) | ||||||||||||||||||||||
Total from investment operations | 0.30 | 1.02 | (0.94 | ) | 3.31 | (0.36 | ) | ||||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||
Dividends from net investment income | (0.16 | ) | (0.22 | ) | (0.85 | ) | (0.10 | ) | (0.05 | ) | |||||||||||||||||||
Distributions from net realized gains | (0.08 | ) | (0.28 | ) | (0.16 | ) | (0.01 | ) | - | ||||||||||||||||||||
Total dividends and distributions | (0.24 | ) | (0.50 | ) | (1.01 | ) | (0.11 | ) | (0.05 | ) | |||||||||||||||||||
Net asset value, end of period | $11.42 | $11.36 | $10.84 | $12.79 | $9.59 | ||||||||||||||||||||||||
Total Return(c): | 2.65 | % | 10.04 | % | (8.21 | )% | 34.66 | % | (3.64 | )% | |||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $13 | $13 | $12 | $13 | $10 | ||||||||||||||||||||||||
Average net assets (000) | $13 | $12 | $13 | $11 | $9 | ||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.71 | %(e)(f) | 0.37 | %(f) | 0.16 | % | 0.15 | % | 0.15 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 56.22 | %(e) | 59.30 | % | 58.20 | % | 95.88 | % | 484.02 | %(e) | |||||||||||||||||||
Net investment income (loss) | 2.72 | %(e) | 2.18 | % | 2.66 | % | 1.04 | % | 0.82 | %(e) | |||||||||||||||||||
Portfolio turnover rate(g) | 62 | % | 45 | % | 67 | % | 94 | % | 19 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.60% and 0.22%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
200
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
Class R5 Shares | |||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | December 16, 2019(a) through July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.37 | $10.85 | $12.80 | $9.60 | $10.00 | ||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||
Net investment income (loss) | 0.16 | 0.24 | 0.32 | 0.13 | 0.05 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.14 | 0.79 | (1.24 | ) | 3.19 | (0.40 | ) | ||||||||||||||||||||||
Total from investment operations | 0.30 | 1.03 | (0.92 | ) | 3.32 | (0.35 | ) | ||||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||
Dividends from net investment income | (0.17 | ) | (0.23 | ) | (0.87 | ) | (0.11 | ) | (0.05 | ) | |||||||||||||||||||
Distributions from net realized gains | (0.08 | ) | (0.28 | ) | (0.16 | ) | (0.01 | ) | - | ||||||||||||||||||||
Total dividends and distributions | (0.25 | ) | (0.51 | ) | (1.03 | ) | (0.12 | ) | (0.05 | ) | |||||||||||||||||||
Net asset value, end of period | $11.42 | $11.37 | $10.85 | $12.80 | $9.60 | ||||||||||||||||||||||||
Total Return(c): | 2.66 | % | 10.15 | % | (8.11 | )% | 34.74 | % | (3.54 | )% | |||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $16 | $16 | $14 | $14 | $11 | ||||||||||||||||||||||||
Average net assets (000) | $15 | $14 | $14 | $13 | $10 | ||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.61 | %(e)(f) | 0.27 | %(f) | 0.06 | % | 0.05 | % | 0.05 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 51.36 | %(e) | 55.47 | % | 54.91 | % | 93.88 | % | 458.95 | %(e) | |||||||||||||||||||
Net investment income (loss) | 2.82 | %(e) | 2.28 | % | 2.72 | % | 1.14 | % | 0.83 | %(e) | |||||||||||||||||||
Portfolio turnover rate(g) | 62 | % | 45 | % | 67 | % | 94 | % | 19 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | Annualized. |
(f) | Includes certain non-recurring expenses of 0.60% and 0.22%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 201
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
Class R6 Shares | |||||||||||||||||||||||||||||
Six Months Ended January 31, | Year Ended July 31, | December 16, 2019(a) through July 31, | |||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.38 | $10.86 | $12.81 | $9.61 | $10.00 | ||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.22 | 0.32 | 0.11 | 0.01 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 0.14 | 0.82 | (1.23 | ) | 3.22 | (0.35 | ) | ||||||||||||||||||||||
Total from investment operations | 0.31 | 1.04 | (0.91 | ) | 3.33 | (0.34 | ) | ||||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||
Dividends from net investment income | (0.17 | ) | (0.24 | ) | (0.88 | ) | (0.12 | ) | (0.05 | ) | |||||||||||||||||||
Distributions from net realized gains | (0.08 | ) | (0.28 | ) | (0.16 | ) | (0.01 | ) | - | ||||||||||||||||||||
Total dividends and distributions | (0.25 | ) | (0.52 | ) | (1.04 | ) | (0.13 | ) | (0.05 | ) | |||||||||||||||||||
Net asset value, end of period | $11.44 | $11.38 | $10.86 | $12.81 | $9.61 | ||||||||||||||||||||||||
Total Return(c): | 2.77 | % | 10.32 | % | (7.97 | )% | 34.88 | % | (3.43 | )% | |||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $281 | $492 | $336 | $433 | $141 | ||||||||||||||||||||||||
Average net assets (000) | $451 | $368 | $435 | $331 | $77 | ||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(e) | 0.42 | %(f)(g) | 0.15 | %(g) | 0.00 | % | 0.00 | % | 0.00 | %(f) | |||||||||||||||||||
Expenses after waivers and/or reimbursement inclusive of excess expense reimbursement from the manager | 0.42 | %(f)(g) | 0.15 | %(g) | (0.09 | )% | (0.10 | )% | (0.11 | )%(f) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 23.74 | %(f) | 30.77 | % | 25.56 | % | 34.59 | % | 166.46 | %(f) | |||||||||||||||||||
Net investment income (loss) | 3.01 | %(f) | 2.11 | % | 2.70 | % | 0.93 | % | 0.11 | %(f) | |||||||||||||||||||
Portfolio turnover rate(h) | 62 | % | 45 | % | 67 | % | 94 | % | 19 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. Expenses waived/reimbursed include those of underlying funds in which the Fund invests. Consequently, the amount waived/reimbursed may be greater than the expense ratio reflected in the financial highlights. |
(e) | As a result of reimbursing expenses, including underlying fund expenses, the Manager may reimburse amounts in excess of the respective share classes’ operating expenses. |
(f) | Annualized. |
(g) | Includes certain non-recurring expenses of 0.55% and 0.24%, respectively, which are being excluded from the Fund’s contractual waiver for the six months ended January 31, 2024 and for the year ended July 31, 2023, respectively. |
See Notes to Financial Statements.
202
PGIM Target Date 2065 Fund
Financial Highlights (unaudited) (continued)
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Target Date Funds 203
Notes to Financial Statements (unaudited)
1. | Organization |
Prudential Investment Portfolios 5 (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Delaware Statutory Trust.
These financial statements relate only to the following series of the RIC: PGIM Target Date Income Fund, PGIM Target Date 2015 Fund, PGIM Target Date 2020 Fund, PGIM Target Date 2025 Fund, PGIM Target Date 2030 Fund, PGIM Target Date 2035 Fund, PGIM Target Date 2040 Fund, PGIM Target Date 2045 Fund, PGIM Target Date 2050 Fund, PGIM Target Date 2055 Fund, PGIM Target Date 2060 Fund and PGIM Target Date 2065 Fund (each a “Fund” and collectively referred to as the “Target Date Funds” or the “Funds”) (formerly known as Prudential Day One Funds). The Target Date Funds are classified as diversified funds for purposes of the 1940 Act.
The investment objective of each of the Target Date Funds is to seek a balance between growth and conservation of capital. Each Target Date Fund seeks to achieve its objective by investing in a combination of mutual funds in the PGIM fund family (each, an “Underlying Fund”).
2. | Accounting Policies |
The Target Date Funds follow 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 is a summary of significant accounting policies followed by the Target Date Funds in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Target Date Funds consistently follow such policies in the preparation of their financial statements.
Securities Valuation: The Target Date Funds hold securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Target Date Funds’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Trustees (the “Board”) has approved the Target Date Funds’ valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Target Date Funds investments. Pursuant to the Board’s oversight, the Valuation Designee has established a Valuation Committee to perform the duties and responsibilities as Valuation Designee under
204
Rule 2a-5. The valuation procedures permit the Target Date Funds 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. Fair value is the estimated 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.
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 Target Date Funds’ foreign investments may change on days when investors cannot purchase or redeem Target Date Fund shares.
Various inputs determine how each Target Date 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 Measurement.
Investments in open-end funds (other than exchanged-traded funds (“ETFs”)) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on policies and procedures 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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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; and any available analyst media or other reports or information deemed reliable by the Valuation Designee 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.
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 Funds become aware of such dividends.
PGIM Target Date Funds 205
Notes to Financial Statements (unaudited) (continued)
Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts. 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. Such class specific expenses and waivers 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 each of the Target Date Funds’ 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.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, 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. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |||
Each Fund other than PGIM Target Date Income Fund: | ||||
Net Investment Income | Annually | |||
Short-Term Capital Gains | Annually | |||
Long-Term Capital Gains | Annually | |||
| ||||
PGIM Target Date Income Fund: | ||||
Net Investment Income | Quarterly | |||
Short-Term Capital Gains | Annually | |||
Long-Term Capital Gains | Annually |
* | Under certain circumstances, each Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
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.
206
3. Agreements
The RIC, on behalf of the Target Date Funds, has a management agreement with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of the subadviser’s performance of such services, and for rendering administrative services.
The Manager has entered into a subadvisory agreement with PGIM DC Solutions LLC (“PGIM DC Solutions” or the “subadviser”). The subadvisory fee was contractually set to 0.00% of each of the Funds’ average daily net assets effective December 11, 2023. Also effective December 11, 2023, PGIM DC Solutions replaced PGIM Quantitative Solutions LLC as the Fund’s subadviser, but the Funds’ portfolio management team remained the same.
Through December 10, 2023, each Fund paid PGIM Investments management fees (net of waivers, as applicable) at the effective rate of 0.02% of the Fund’s average daily net assets, accrued daily and payable monthly. Effective December 11, 2023, the management fee was contractually set to an annual rate of 0.00% of each of the Funds’ average daily net assets. All amounts paid or payable by the Target Date Funds to the Manager, under the agreement, are reflected in the Statement of Operations.
The Manager has contractually agreed to limit total annual operating expenses after fee waivers and/or expense reimbursements. 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 such expenses on any other share class. Fees and/or expenses waived and/or reimbursed by the Manager for the purpose of preventing the expenses from exceeding a certain expense ratio limit 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 that fiscal year. This waiver has no express termination date and may not be terminated by PGIM Investments without prior approval of the Fund’s Board of Trustees. The expense limitations attributable to each class are as follows:
Class | Expense Limitations* | Prior Expense Limitations | ||||||
R1 | 1.00 | % | 1.15 | % | ||||
R2 | 0.75 | 0.90 | ||||||
R3 | 0.60 | 0.75 | ||||||
R4 | 0.50 | 0.65 | ||||||
R5 | 0.40 | 0.55 |
PGIM Target Date Funds 207
Notes to Financial Statements (unaudited) (continued)
Class | Expense Limitations* | Prior Expense Limitations | ||||||
R6 | 0.25 | % | 0.40 | % |
*Effective December 11, 2023.
The RIC, on behalf of the Target Date Funds, has a distribution agreement, pursuant to Rule 12b-1 under the 1940 Act, with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class R1, Class R2, Class R3, Class R4, Class R5 and Class R6 shares of Target Date Funds. The Target Date Funds compensate PIMS for distributing and servicing the Target Date Funds’ Class R1, Class R2 and Class R3 shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Target Date Funds compensate PIMS for distribution related activities at an annual rate of the average daily net assets of the Class R1, Class R2 and Class R3 shares, respectively. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class R4, Class R5 and Class R6 shares of the Target Date Funds.
The Target Date Funds have adopted a Shareholder Services Plan with respect to Class R1, Class R2, Class R3 and Class R4 shares. Under the terms of the Shareholder Services Plan, each Fund’s Class R1, Class R2, Class R3 and Class R4 shares are authorized to compensate Prudential Mutual Fund Services LLC (“PMFS”), its affiliates or third-party service providers, for services rendered to the shareholders of such Class R1, Class R2, Class R3 or Class R4 shares. The shareholder service fee is accrued daily and paid monthly, as applicable.
The Target Date Funds’ annual gross and net distribution rates and maximum shareholder servicing fee, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | Shareholder Service Fee | |||||||||
R1 | 0.50 | % | 0.50 | % | 0.10 | % | ||||||
R2 | 0.25 | 0.25 | 0.10 | |||||||||
R3 | 0.10 | 0.10 | 0.10 | |||||||||
R4 | N/A | N/A | 0.10 | |||||||||
R5 | N/A | N/A | N/A | |||||||||
R6 | N/A | N/A | N/A |
PGIM Investments, PIMS, PGIM DC Solutions and PMFS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
208
4. | Other Transactions with Affiliates |
PMFS, an affiliate of PGIM Investments and an indirect, wholly- owned subsidiary of Prudential, serves as Target Date Funds’ transfer agent and shareholder servicing agent. Transfer agent’s and shareholder servicing agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Target Date Funds may invest their overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income”.
5. | Investments in Affiliated Issuers |
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 January 31, 2024, were as follows:
Fund | Cost of Purchases | Proceeds from Sales | ||||||
PGIM Target Date Income Fund | $ | 5,630,780 | $ | 8,484,077 | ||||
PGIM Target Date 2015 Fund | 2,530,328 | 2,627,547 | ||||||
PGIM Target Date 2020 Fund | 12,305,824 | 18,204,498 | ||||||
PGIM Target Date 2025 Fund | 20,182,282 | 34,938,117 | ||||||
PGIM Target Date 2030 Fund | 28,094,620 | 39,150,853 | ||||||
PGIM Target Date 2035 Fund | 24,061,499 | 39,349,484 | ||||||
PGIM Target Date 2040 Fund | 26,099,738 | 36,404,390 | ||||||
PGIM Target Date 2045 Fund | 18,184,827 | 29,861,566 | ||||||
PGIM Target Date 2050 Fund | 12,126,975 | 20,821,188 | ||||||
PGIM Target Date 2055 Fund | 5,768,767 | 8,634,899 | ||||||
PGIM Target Date 2060 Fund | 4,830,340 | 6,099,894 | ||||||
PGIM Target Date 2065 Fund | 387,023 | 563,394 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended January 31, 2024, is presented as follows:
PGIM Target Date Income Fund :
Value, Beginning of | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of | Shares, End of | Dividend Income | Capital Gain Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 3,591,710 | $ 233,067 | $ 746,453 | $ 183,628 | $ (139,114) | $ 3,122,838 | 360,605 | $ 62,850 | $ — |
PGIM Target Date Funds 209
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date Income Fund (cont’d.):
Value, Beginning of | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of | Shares, End of | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 1,353,201 | $ | 222,946 | $ | 411,365 | $ | 16,467 | $ | (23,135 | ) | $ | 1,158,114 | 62,907 | $ | 18,442 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
226,702 | 86,849 | 86,126 | (2,102 | ) | 2,479 | 227,802 | 17,310 | 2,228 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,346,777 | 268,253 | 341,339 | (49,806 | ) | (61,843 | ) | 1,162,042 | 175,801 | 50,572 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,032,529 | 136,842 | 267,246 | (35,699 | ) | 22,456 | 888,882 | 66,633 | 31,133 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,381,826 | 131,866 | 2,568,602 | (683,054 | ) | 737,964 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 3,546,146 | 656,109 | 144,529 | 22,594 | 3,057,160 | 81,655 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
226,004 | 121,625 | 112,219 | (10,423 | ) | 3,840 | 228,827 | 23,374 | 2,691 | 13,026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,304,931 | 199,411 | 1,403,181 | (414,466 | ) | 313,305 | — | — | 10,691 | 103,984 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5,169,286 | 434,795 | 1,108,159 | 237,620 | (239,222 | ) | 4,494,320 | 528,744 | 92,267 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,597,943 | 248,980 | 783,278 | 223,865 | (163,297 | ) | 3,124,213 | 259,486 | 87,660 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$20,230,909 | $ | 5,630,780 | $ | 8,484,077 | $ | (389,441 | ) | $ | 476,027 | $ | 17,464,198 | $ | 358,534 | $ | 117,010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 2,316,614 | $ | 370,325 | $ | 748,532 | $ | — | $ | — | $ | 1,938,407 | 1,938,407 | $ | 62,037 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$22,547,523 | $ | 6,001,105 | $ | 9,232,609 | $ | (389,441 | ) | $ | 476,027 | $ | 19,402,605 | $ | 420,571 | $ | 117,010 |
210
PGIM Target Date 2015 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$1,448,180 | $ | 136,812 | $ | 90,551 | $ | 34,443 | $ | (16,233 | ) | $ | 1,512,651 | 174,671 | $ | 25,658 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
589,851 | 88,506 | 91,028 | (3,508 | ) | (866 | ) | 582,955 | 31,665 | 7,974 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
103,759 | 33,326 | 18,909 | (276 | ) | 689 | 118,589 | 9,011 | 1,024 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
587,050 | 101,258 | 55,880 | (39,783 | ) | (7,829 | ) | 584,816 | 88,474 | 22,086 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
508,777 | 54,925 | 81,004 | (12,084 | ) | 5,941 | 476,555 | 35,724 | 15,321 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,124,413 | 55,695 | 1,206,952 | (385,719 | ) | 412,563 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 1,661,070 | 143,692 | 75,547 | 5,101 | 1,598,026 | 42,682 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
103,439 | 51,974 | 33,515 | (4,658 | ) | 1,830 | 119,070 | 12,162 | 1,230 | 5,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
609,999 | 88,177 | 651,591 | (219,434 | ) | 172,849 | — | — | 4,984 | 48,480 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,214,067 | 171,271 | 143,635 | 25,512 | (25,028 | ) | 2,242,187 | 263,787 | 39,172 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,568,318 | 87,314 | 110,790 | 51,523 | (24,061 | ) | 1,572,304 | 130,590 | 38,445 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$8,857,853 | $ | 2,530,328 | $ | 2,627,547 | $ | (478,437 | ) | $ | 524,956 | $ | 8,807,153 | $ | 155,894 | $ | 54,434 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 998,336 | $ | 194,815 | $ | 220,801 | $ | — | $ | — | $ | 972,350 | 972,350 | $ | 26,416 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$9,856,189 | $ | 2,725,143 | $ | 2,848,348 | $ | (478,437 | ) | $ | 524,956 | $ | 9,779,503 | $ | 182,310 | $ | 54,434 |
PGIM Target Date Funds 211
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2020 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 5,195,764 | $ | 373,421 | $ | 1,105,365 | $ | 214,560 | $ | (148,608 | ) | $ | 4,529,772 | 523,068 | $ | 89,981 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,485,756 | 366,768 | 744,247 | (12,383 | ) | 4,005 | 2,099,899 | 114,063 | 33,519 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
503,890 | 191,945 | 195,395 | (5,954 | ) | 8,079 | 502,565 | 38,189 | 4,950 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,473,963 | 484,124 | 645,762 | (104,450 | ) | (100,867 | ) | 2,107,008 | 318,761 | 92,862 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,746,100 | 331,250 | 801,903 | (118,575 | ) | 85,526 | 2,242,398 | 168,096 | 82,272 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5,733,287 | 247,325 | 6,109,735 | (1,916,524 | ) | 2,045,647 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 8,293,680 | 1,859,908 | 322,342 | 62,246 | 6,818,360 | 182,114 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
506,491 | 259,287 | 247,060 | (25,027 | ) | 11,130 | 504,821 | 51,565 | 5,993 | 29,005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,901,306 | 400,392 | 3,075,613 | (1,037,879 | ) | 811,794 | — | — | 23,796 | 231,461 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8,752,572 | 885,638 | 1,986,960 | 304,464 | (302,818 | ) | 7,652,896 | 900,341 | 154,032 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,444,006 | 471,994 | 1,432,550 | 380,433 | (269,988 | ) | 5,593,895 | 464,609 | 155,321 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$37,743,135 | $ | 12,305,824 | $ | 18,204,498 | $ | (1,998,993 | ) | $ | 2,206,146 | $ | 32,051,614 | $ | 642,726 | $ | 260,466 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 3,633,150 | $ | 595,203 | $ | 1,141,660 | $ | — | $ | — | $ | 3,086,693 | 3,086,693 | $ | 97,106 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$41,376,285 | $ | 12,901,027 | $ | 19,346,158 | $ | (1,998,993 | ) | $ | 2,206,146 | $ | 35,138,307 | $ | 739,832 | $ | 260,466 |
212
PGIM Target Date 2025 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 6,646,158 | $ | 892,115 | $ | 2,147,587 | $ | 382,806 | $ | (314,127 | ) | $ | 5,459,365 | 630,412 | $ | 108,916 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,852,266 | 536,981 | 1,475,562 | 29,573 | (50,491 | ) | 2,892,767 | 157,130 | 48,485 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
948,690 | 343,451 | 446,932 | (17,281 | ) | 16,087 | 844,015 | 64,135 | 8,608 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,833,997 | 733,476 | 1,362,090 | (97,824 | ) | (205,372 | ) | 2,902,187 | 439,060 | 134,222 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5,303,696 | 551,466 | 1,907,151 | (297,534 | ) | 220,403 | 3,870,880 | 290,171 | 148,080 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10,317,967 | 419,006 | 10,928,995 | (3,148,398 | ) | 3,340,420 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 13,800,426 | 3,639,211 | 510,318 | 122,991 | 10,794,524 | 288,315 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,022,977 | 441,854 | 587,069 | (61,377 | ) | 31,467 | 847,852 | 86,604 | 11,279 | 54,595 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5,066,300 | 653,913 | 5,339,614 | (1,789,072 | ) | 1,408,473 | — | — | 38,682 | 376,256 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12,540,481 | 1,191,386 | 4,056,683 | 638,715 | (651,234 | ) | 9,662,665 | 1,136,784 | 207,953 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9,602,422 | 618,208 | 3,047,223 | 715,103 | (573,602 | ) | 7,314,908 | 607,551 | 216,632 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$59,134,954 | $ | 20,182,282 | $ | 34,938,117 | $ | (3,134,971 | ) | $ | 3,345,015 | $ | 44,589,163 | $ | 922,857 | $ | 430,851 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 4,965,066 | $ | 788,360 | $ | 1,943,080 | $ | — | $ | — | $ | 3,810,346 | 3,810,346 | $ | 124,971 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$64,100,020 | $ | 20,970,642 | $ | 36,881,197 | $ | (3,134,971 | ) | $ | 3,345,015 | $ | 48,399,509 | $ | 1,047,828 | $ | 430,851 |
PGIM Target Date Funds 213
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2030 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 4,711,446 | $ | 742,797 | $ | 1,344,979 | $ | 243,011$ | (182,871 | ) | $ | 4,169,404 | 481,455 | $ | 82,893 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,944,561 | 663,920 | 1,342,450 | 68,178 | (78,355 | ) | 3,255,854 | 176,852 | 53,923 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,354,692 | 442,607 | 566,741 | (27,244 | ) | 34,875 | 1,238,189 | 94,087 | 13,312 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,664,147 | 1,012,269 | 1,211,417 | (105,507 | ) | (201,957 | ) | 3,157,535 | 477,691 | 140,827 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
654,903 | 100,715 | 176,302 | (36,414 | ) | 2,656 | 545,558 | 50,892 | 22,533 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,739,414 | 866,783 | 2,313,975 | (307,833 | ) | 230,629 | 5,215,018 | 390,931 | 205,639 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12,065,166 | 714,464 | 13,055,784 | (3,423,387 | ) | 3,699,541 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 18,403,566 | 5,085,208 | 669,352 | 170,787 | 14,158,497 | 378,165 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,462,525 | 680,297 | 857,949 | (79,002 | ) | 37,934 | 1,243,805 | 127,048 | 17,623 | 85,302 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,696,124 | 1,034,389 | 7,201,003 | (2,225,431 | ) | 1,695,921 | — | — | 55,822 | 542,965 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10,875,521 | 2,204,648 | 3,309,878 | 583,984 | (577,706 | ) | 9,776,569 | 1,150,185 | 193,037 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9,308,111 | 1,228,165 | 2,685,167 | 659,714 | (497,618 | ) | 8,013,205 | 665,549 | 227,081 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$61,476,610 | $ | 28,094,620 | $ | 39,150,853 | $ | (3,980,579 | ) | $ | 4,333,836 | $ | 50,773,634 | $ | 1,012,690 | $ | 628,267 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 4,159,383 | $ | 1,183,385 | $ | 1,716,096 | $ | — | $ | — | $ | 3,626,672 | 3,626,672 | $ | 113,468 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$65,635,993 | $ | 29,278,005 | $ | 40,866,949 | $ | (3,980,579 | ) | $ | 4,333,836 | $ | 54,400,306 | $ | 1,126,158 | $ | 628,267 |
214
PGIM Target Date 2035 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 2,912,435 | $ | 458,840 | $ | 1,261,752 | $ | 216,671 | $ | (188,917 | ) | $ | 2,137,277 | 246,799 | $ | 47,469 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,926,145 | 574,641 | 1,364,683 | 66,054 | (88,328 | ) | 2,113,829 | 114,820 | 36,929 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,591,346 | 523,685 | 868,233 | (4,855 | ) | (1,894 | ) | 1,240,049 | 94,229 | 14,172 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,600,167 | 617,015 | 1,185,819 | (38,099 | ) | (165,027 | ) | 1,828,237 | 276,586 | 91,376 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,665,599 | 269,791 | 827,034 | (98,237 | ) | 15,886 | 1,026,005 | 95,709 | 52,184 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,760,435 | 888,816 | 2,976,740 | (364,847 | ) | 260,296 | 4,567,960 | 342,426 | 187,829 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10,979,081 | 599,167 | 11,760,746 | (2,920,373 | ) | 3,102,871 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 16,085,582 | 5,244,560 | 546,717 | 176,710 | 11,564,449 | 308,880 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,790,691 | 717,799 | 1,167,472 | (108,972 | ) | 49,681 | 1,281,727 | 130,922 | 19,647 | 95,101 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,807,467 | 965,039 | 7,245,161 | (2,260,548 | ) | 1,733,203 | — | — | 52,133 | 507,081 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5,936,008 | 1,278,149 | 2,704,041 | 443,574 | (452,743 | ) | 4,500,947 | 529,523 | 98,919 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,147,573 | 1,082,975 | 2,743,243 | 601,333 | (517,240 | ) | 4,571,398 | 379,684 | 139,855 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$50,116,947 | $ | 24,061,499 | $ | 39,349,484 | $ | (3,921,582 | ) | $ | 3,924,498 | $ | 34,831,878 | $ | 740,513 | $ | 602,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 2,068,404 | $ | 990,931 | $ | 1,410,845 | $ | — | $ | — | $ | 1,648,490 | 1,648,490 | $ | 52,635 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$52,185,351 | $ | 25,052,430 | $ | 40,760,329 | $ | (3,921,582 | ) | $ | 3,924,498 | $ | 36,480,368 | $ | 793,148 | $ | 602,182 |
PGIM Target Date Funds 215
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2040 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 2,192,619 | $ | 456,426 | $ | 889,786 | $ | 143,361 | $ | (114,191 | ) | $ | 1,788,429 | 206,516 | $ | 38,204 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,328,671 | 478,275 | 989,824 | 45,809 | (46,657 | ) | 1,816,274 | 98,657 | 31,809 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,764,777 | 795,680 | 923,206 | (27,798 | ) | 26,955 | 1,636,408 | 124,347 | 17,014 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,317,583 | 709,821 | 1,008,608 | (40,848 | ) | (155,796 | ) | 1,822,152 | 275,666 | 89,002 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,319,657 | 482,870 | 962,782 | (129,162 | ) | 13,164 | 1,723,747 | 160,797 | 79,750 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7,444,076 | 1,218,361 | 2,782,991 | (321,362 | ) | 238,464 | 5,796,548 | 434,524 | 226,955 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10,458,671 | 397,053 | 11,090,850 | (2,681,910 | ) | 2,917,036 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 17,759,926 | 5,948,925 | 592,688 | 174,252 | 12,577,941 | 335,949 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,375,424 | 946,760 | 1,383,486 | (140,768 | ) | 61,212 | 1,859,142 | 189,902 | 28,600 | 138,437 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,662,293 | 891,225 | 7,024,980 | (2,139,581 | ) | 1,611,043 | — | — | 55,529 | 540,124 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,620,072 | 1,039,345 | 1,574,024 | 249,262 | (246,303 | ) | 3,088,352 | 363,335 | 64,048 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4,397,484 | 923,996 | 1,824,928 | 381,890 | (303,675 | ) | 3,574,767 | 296,908 | 106,670 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$45,881,327 | $ | 26,099,738 | $ | 36,404,390 | $ | (4,068,419 | ) | $ | 4,175,504 | $ | 35,683,760 | $ | 737,581 | $ | 678,561 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 641,764 | $ | 437,156 | $ | 469,149 | $ | — | $ | — | $ | 609,771 | 609,771 | $ | 17,077 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$46,523,091 | $ | 26,536,894 | $ | 36,873,539 | $ | (4,068,419 | ) | $ | 4,175,504 | $ | 36,293,531 | $ | 754,658 | $ | 678,561 |
216
PGIM Target Date 2045 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 1,145,476 | $ | 340,312 | $ | 633,949 | $ | 87,584 | $ | (73,716 | ) | $ | 865,707 | 99,966 | $ | 19,633 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,692,527 | 279,201 | 868,750 | 38,709 | (35,306 | ) | 1,106,381 | 60,097 | 22,746 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,421,966 | 446,796 | 790,630 | (36,675 | ) | 33,731 | 1,075,188 | 81,701 | 13,483 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,549,634 | 500,350 | 854,925 | (6,835 | ) | (122,665 | ) | 1,065,559 | 161,204 | 58,012 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,178,210 | 386,249 | 1,053,631 | (122,301 | ) | 12,971 | 1,401,498 | 130,737 | 72,922 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6,232,226 | 855,751 | 2,883,712 | (334,707 | ) | 259,495 | 4,129,053 | 309,524 | 185,026 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7,887,874 | 307,988 | 8,363,537 | (1,884,517 | ) | 2,052,192 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 12,645,585 | 5,213,831 | 377,134 | 168,446 | 7,977,334 | 213,070 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,292,946 | 732,428 | 1,571,285 | (153,398 | ) | 76,686 | 1,377,377 | 140,692 | 26,882 | 130,121 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5,034,549 | 655,863 | 5,298,919 | (1,540,471 | ) | 1,148,978 | — | — | 40,760 | 396,463 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,484,107 | 548,368 | 869,143 | 121,453 | (120,209 | ) | 1,164,576 | 137,009 | 25,809 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,834,751 | 485,936 | 1,459,254 | 269,641 | (222,099 | ) | 1,908,975 | 158,553 | 66,493 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$33,754,266 | $ | 18,184,827 | $ | 29,861,566 | $ | (3,184,383 | ) | $ | 3,178,504 | $ | 22,071,648 | $ | 531,766 | $ | 526,584 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 77,740 | $ | 96,132 | $ | 156,517 | $ | — | $ | — | $ | 17,355 | 17,355 | $ | 884 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$33,832,006 | $ | 18,280,959 | $ | 30,018,083 | $ | (3,184,383 | ) | $ | 3,178,504 | $ | 22,089,003 | $ | 532,650 | $ | 526,584 |
PGIM Target Date Funds 217
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2050 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 355,122 | $ | 108,795 | $ | 221,586 | $ | 24,864 | $ | (20,861 | ) | $ | 246,334 | 28,445 | $ | 6,152 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,115,020 | 187,223 | 626,600 | 27,542 | (26,386 | ) | 676,799 | 36,763 | 15,037 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,048,822 | 275,694 | 620,197 | (41,648 | ) | 37,564 | 700,235 | 53,209 | 9,710 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
887,734 | 259,793 | 529,738 | (1,284 | ) | (73,302 | ) | 543,203 | 82,179 | 33,072 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,710,442 | 321,753 | 893,923 | (96,365 | ) | 8,706 | 1,050,613 | 98,005 | 56,963 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4,616,214 | 707,264 | 2,401,392 | (265,406 | ) | 205,241 | 2,861,921 | 214,537 | 136,331 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5,256,477 | 252,255 | 5,621,162 | (1,250,008 | ) | 1,362,438 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 8,466,520 | 3,786,017 | 238,411 | 124,091 | 5,043,005 | 134,696 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,823,404 | 568,265 | 1,245,824 | (121,166 | ) | 53,183 | 1,077,862 | 110,098 | 21,265 | 102,935 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,470,217 | 485,060 | 3,686,332 | (981,062 | ) | 712,117 | — | — | 27,925 | 271,624 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
355,535 | 116,031 | 224,821 | 29,329 | (29,452 | ) | 246,622 | 29,014 | 6,436 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,600,729 | 378,322 | 963,596 | 153,369 | (128,288 | ) | 1,040,536 | 86,423 | 38,249 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$22,239,716 | $ | 12,126,975 | $ | 20,821,188 | $ | (2,283,424 | ) | $ | 2,225,051 | $ | 13,487,130 | $ | 351,140 | $ | 374,559 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 61,566 | $ | 105,087 | $ | 152,405 | $ | — | $ | — | $ | 14,248 | 14,248 | $ | 642 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$22,301,282 | $ | 12,232,062 | $ | 20,973,593 | $ | (2,283,424 | ) | $ | 2,225,051 | $ | 13,501,378 | $ | 351,782 | $ | 374,559 |
218
PGIM Target Date 2055 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Dividend Income | Capital Gain Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Conservative Bond Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ — | $ | 104,576 | $ | 41,409 | $ | (260 | ) | $ | (148 | ) | $ | 62,759 | 7,247 | $ | 234 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
454,250 | 104,699 | 251,113 | 2,977 | (420 | ) | 310,393 | 16,860 | 6,379 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
449,188 | 188,344 | 275,701 | (10,240 | ) | 9,881 | 361,472 | 27,468 | 4,432 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
361,659 | 138,360 | 219,155 | (5,308 | ) | (26,437 | ) | 249,119 | 37,688 | 14,386 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
769,222 | 211,350 | 398,996 | (44,748 | ) | 4,903 | 541,731 | 50,535 | 27,327 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,057,837 | 420,978 | 1,040,340 | (96,318 | ) | 76,014 | 1,418,171 | 106,310 | 64,830 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,118,832 | 166,745 | 2,336,029 | (534,069 | ) | 584,521 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 3,732,210 | 1,603,279 | 108,127 | 50,093 | 2,287,151 | 61,088 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
791,083 | 297,674 | 522,663 | (48,285 | ) | 19,490 | 537,299 | 54,882 | 9,842 | 47,639 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,406,493 | 246,671 | 1,540,711 | (438,630 | ) | 326,177 | — | — | 11,963 | 116,370 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM TIPS Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
108,632 | 29,582 | 63,013 | 1,160 | (963 | ) | 75,398 | 8,870 | 1,984 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
543,439 | 127,578 | 342,490 | 38,902 | (28,381 | ) | 339,048 | 28,160 | 13,086 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$9,060,635 | $ | 5,768,767 | $ | 8,634,899 | $ | (1,026,692 | ) | $ | 1,014,730 | $ | 6,182,541 | $ | 154,463 | $ | 164,009 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 54,345 | $ | 107,709 | $ | 153,346 | $ | — | $ | — | $ | 8,708 | 8,708 | $ | 418 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
$9,114,980 | $ | 5,876,476 | $ | 8,788,245 | $ | (1,026,692 | ) | $ | 1,014,730 | $ | 6,191,249 | $ | 154,881 | $ | 164,009 |
PGIM Target Date Funds 219
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2060 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Dividend Income | Capital Gain Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 385,784 | $ | 93,158 | $ | 157,254 | $ | 5,953 | $ | (6,200 | ) | $ | 321,441 | 17,460 | $ | 5,338 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
384,586 | 164,319 | 165,630 | (1,671 | ) | 724 | 382,328 | 29,052 | 3,721 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
307,150 | 118,523 | 141,982 | (9,688 | ) | (16,037 | ) | 257,966 | 39,027 | 12,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
707,086 | 188,906 | 260,273 | (34,770 | ) | (2,495 | ) | 598,454 | 55,826 | 24,668 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,853,649 | 408,243 | 663,186 | (42,635 | ) | 20,514 | 1,576,585 | 118,185 | 57,388 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,769,505 | 158,945 | 1,968,283 | (359,225 | ) | 399,058 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 3,081,603 | 891,899 | 109,962 | 26,319 | 2,325,985 | 62,126 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
689,630 | 258,217 | 347,684 | (31,044 | ) | 5,347 | 574,466 | 58,679 | 8,425 | 40,784 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,197,585 | 221,563 | 1,323,680 | (253,456 | ) | 157,988 | — | — | 10,031 | 97,562 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
399,995 | 136,863 | 180,023 | 25,947 | (18,680 | ) | 364,102 | 30,241 | 9,879 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$7,694,970 | $ | 4,830,340 | $ | 6,099,894 | $ | (590,627 | ) | $ | 566,538 | $ | 6,401,327 | $ | 131,450 | $ | 138,346 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 51,601 | $ | 88,875 | $ | 133,276 | $ | — | $ | — | $ | 7,200 | 7,200 | $ | 426 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
$7,746,571 | $ | 4,919,215 | $ | 6,233,170 | $ | (590,627 | ) | $ | 566,538 | $ | 6,408,527 | $ | 131,876 | $ | 138,346 |
220
PGIM Target Date 2065 Fund:
Value, Beginning of Period | Cost of Purchases | Proceeds from | Change in Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Dividend Income | Capital Gain Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments - Affiliated Mutual Funds(wa): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Global Real Estate Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 33,525 | $ | 7,167 | $ | 15,981 | $ | 311 | $ | (602 | ) | $ | 24,420 | 1,326 | $ | 456 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
33,816 | 14,435 | 17,717 | (44 | ) | (386 | ) | 30,104 | 2,288 | 312 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Commodity Strategies Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26,698 | 9,358 | 14,308 | (669 | ) | (1,482 | ) | 19,597 | 2,965 | 994 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Emerging Markets Equity Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
67,337 | 16,810 | 29,935 | (3,052 | ) | (688 | ) | 50,472 | 4,708 | 2,238 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions International Developed Markets Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
164,059 | 28,646 | 69,636 | (3,498 | ) | 689 | 120,260 | 9,015 | 4,838 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Core Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
154,736 | 9,126 | 166,488 | (22,822 | ) | 25,448 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Large-Cap Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 258,377 | 91,877 | 8,407 | 2,944 | 177,851 | 4,750 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions Mid-Cap Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
59,923 | 20,480 | 33,107 | (2,409 | ) | (183 | ) | 44,704 | 4,566 | 698 | 3,377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Quant Solutions US Broad Market Index Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
104,619 | 15,736 | 111,826 | (13,921 | ) | 5,392 | — | — | 838 | 8,154 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Total Return Bond Fund (Class R6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24,068 | 6,888 | 12,519 | 1,215 | (882 | ) | 18,770 | 1,559 | 582 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$668,781 | $ | 387,023 | $ | 563,394 | $ | (36,482 | ) | $ | 30,250 | $ | 486,178 | $ | 10,956 | $ | 11,531 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund(wa): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ 552 | $ | 2,990 | $ | 302 | $ | — | $ | — | $ | 3,240 | 3,240 | $ | 62 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
$669,333 | $ | 390,013 | $ | 563,696 | $ | (36,482 | ) | $ | 30,250 | $ | 489,418 | $ | 11,018 | $ | 11,531 |
(wa) | Represents investments in Funds affiliated with the Manager. |
6. | Tax Information |
The United States federal income tax basis of the Target Date Funds’ investments and the net unrealized depreciation as of January 31, 2024 were as follows:
Fund | Tax Basis | Gross Unrealized | Gross Unrealized | Net Unrealized | ||||||||||||||||
PGIM Target Date Income Fund | $21,562,180 | $495,700 | $(2,655,275 | ) | $(2,159,575 | ) |
PGIM Target Date Funds 221
Notes to Financial Statements (unaudited) (continued)
Fund | Tax Basis | Gross Unrealized | Gross Unrealized | Net Unrealized | ||||||||||||||||
PGIM Target Date 2015 Fund | $ | 10,873,740 | $ | 312,236 | $ | (1,406,473 | ) | $ | (1,094,237 | ) | ||||||||||
PGIM Target Date 2020 Fund | 38,999,755 | 1,305,015 | (5,166,463 | ) | (3,861,448 | ) | ||||||||||||||
PGIM Target Date 2025 Fund | 53,778,284 | 1,906,959 | (7,285,734 | ) | (5,378,775 | ) | ||||||||||||||
PGIM Target Date 2030 Fund | 58,889,916 | 2,427,660 | (6,917,270 | ) | (4,489,610 | ) | ||||||||||||||
PGIM Target Date 2035 Fund | 38,607,738 | 2,034,722 | (4,162,092 | ) | (2,127,370 | ) | ||||||||||||||
PGIM Target Date 2040 Fund | 37,437,213 | 2,406,922 | (3,550,604 | ) | (1,143,682 | ) | ||||||||||||||
PGIM Target Date 2045 Fund | 22,915,100 | 1,734,661 | (2,560,758 | ) | (826,097 | ) | ||||||||||||||
PGIM Target Date 2050 Fund | 13,699,642 | 1,187,554 | (1,385,818 | ) | (198,264 | ) | ||||||||||||||
PGIM Target Date 2055 Fund | 6,322,565 | 646,308 | (777,624 | ) | (131,316 | ) | ||||||||||||||
PGIM Target Date 2060 Fund | 6,477,085 | 533,435 | (601,993 | ) | (68,558 | ) | ||||||||||||||
PGIM Target Date 2065 Fund | 502,094 | 34,206 | (46,882 | ) | (12,676 | ) |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the following Funds had an approximated capital loss carryforward as of July 31, 2023 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.
Fund | Capital Loss Carryforward | Capital Loss Carryforward Utilized | ||||||||
PGIM Target Date 2015 Fund | $ | 87,000 | $ | — | ||||||
PGIM Target Date 2055 Fund | 16,000 | — |
The Manager has analyzed the Target Date Funds’ 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 Target Date Funds’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Target Date Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended July 31, 2023 are subject to such review.
222
7. | Capital and Ownership |
The RIC is authorized to issue an unlimited number of shares of beneficial interest of the Target Date Funds, at $0.001 par value per share. The Target Date Funds offer Class R1, Class R2, Class R3, Class R4, Class R5 and Class R6 shares.
Under certain circumstances, an exchange may be made from specified share classes of the Target Date Funds to one or more other share classes of the Target Date Funds as presented in the table of transactions in shares of beneficial interest, below.
As of January 31, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Target Date Funds as follows:
Fund | Number of Shares | Percentage of Outstanding Shares | ||||||||
PGIM Target Date Income Fund –Class R1 | 2,609 | 97.1 | % | |||||||
PGIM Target Date Income Fund –Class R2 | 2,655 | 89.5 | ||||||||
PGIM Target Date Income Fund –Class R4 | 2,701 | 100.0 | ||||||||
PGIM Target Date Income Fund –Class R5 | 2,723 | 2.9 | ||||||||
PGIM Target Date 2015 Fund–Class R1 | 1,328 | 100.0 | ||||||||
PGIM Target Date 2015 Fund–Class R2 | 1,350 | 24.3 | ||||||||
PGIM Target Date 2015 Fund–Class R3 | 1,365 | 100.0 | ||||||||
PGIM Target Date 2015 Fund–Class R4 | 1,375 | 100.0 | ||||||||
PGIM Target Date 2015 Fund–Class R5 | 1,384 | 6.3 | ||||||||
PGIM Target Date 2020 Fund–Class R1 | 1,342 | 100.0 | ||||||||
PGIM Target Date 2020 Fund–Class R4 | 1,388 | 93.3 | ||||||||
PGIM Target Date 2020 Fund–Class R5 | 1,398 | 0.5 | ||||||||
PGIM Target Date 2025 Fund–Class R1 | 1,348 | 100.0 | ||||||||
PGIM Target Date 2025 Fund–Class R4 | 1,394 | 7.4 | ||||||||
PGIM Target Date 2025 Fund–Class R5 | 1,404 | 1.7 | ||||||||
PGIM Target Date 2030 Fund–Class R1 | 1,361 | 20.6 | ||||||||
PGIM Target Date 2030 Fund–Class R4 | 1,409 | 52.9 | ||||||||
PGIM Target Date 2035 Fund–Class R1 | 1,411 | 51.6 | ||||||||
PGIM Target Date 2035 Fund–Class R4 | 1,460 | 100.0 | ||||||||
PGIM Target Date 2035 Fund–Class R5 | 1,470 | 1.8 | ||||||||
PGIM Target Date 2040 Fund–Class R1 | 1,382 | 28.1 | ||||||||
PGIM Target Date 2040 Fund–Class R4 | 1,428 | 23.6 | ||||||||
PGIM Target Date 2045 Fund–Class R1 | 1,438 | 100.0 | ||||||||
PGIM Target Date 2045 Fund–Class R4 | 1,489 | 38.5 | ||||||||
PGIM Target Date 2050 Fund–Class R1 | 1,389 | 25.8 | ||||||||
PGIM Target Date 2050 Fund–Class R3 | 848 | 50.1 | ||||||||
PGIM Target Date 2050 Fund–Class R4 | 1,436 | 16.5 | ||||||||
PGIM Target Date 2050 Fund–Class R5 | 1,446 | 1.0 | ||||||||
PGIM Target Date 2055 Fund–Class R1 | 1,632 | 93.5 | ||||||||
PGIM Target Date 2055 Fund–Class R2 | 1,654 | 6.2 | ||||||||
PGIM Target Date 2055 Fund–Class R3 | 963 | 16.7 | ||||||||
PGIM Target Date 2055 Fund–Class R4 | 1,678 | 40.5 | ||||||||
PGIM Target Date 2055 Fund–Class R5 | 1,687 | 2.6 | ||||||||
PGIM Target Date 2060 Fund–Class R1 | 1,337 | 67.3 |
PGIM Target Date Funds 223
Notes to Financial Statements (unaudited) (continued)
Fund | Number of Shares | Percentage of Outstanding Shares | ||||||||
PGIM Target Date 2060 Fund–Class R4 | 1,379 | 54.9 | % | |||||||
PGIM Target Date 2060 Fund–Class R5 | 1,388 | 1.9 | ||||||||
PGIM Target Date 2065 Fund–Class R1 | 1,155 | 100.0 | ||||||||
PGIM Target Date 2065 Fund–Class R2 | 1,164 | 10.2 | ||||||||
PGIM Target Date 2065 Fund–Class R3 | 1,172 | 40.8 | ||||||||
PGIM Target Date 2065 Fund–Class R4 | 1,178 | 100.0 | ||||||||
PGIM Target Date 2065 Fund–Class R5 | 1,183 | 84.2 | ||||||||
PGIM Target Date 2065 Fund–Class R6 | 1,188 | 4.8 |
At the reporting period end, the number of shareholders holding greater than 5% of the Target Date Funds are as follows:
Fund | Number of Shareholders | Percentage of Outstanding Shares | ||||||||
Affiliated: |
| |||||||||
PGIM Target Date Income Fund | — | — | % | |||||||
PGIM Target Date 2015 Fund | — | — | ||||||||
PGIM Target Date 2020 Fund | — | — | ||||||||
PGIM Target Date 2025 Fund | — | — | ||||||||
PGIM Target Date 2030 Fund | — | — | ||||||||
PGIM Target Date 2035 Fund | — | — | ||||||||
PGIM Target Date 2040 Fund | — | — | ||||||||
PGIM Target Date 2045 Fund | — | — | ||||||||
PGIM Target Date 2050 Fund | — | — | ||||||||
PGIM Target Date 2055 Fund | — | — | ||||||||
PGIM Target Date 2060 Fund | — | — | ||||||||
PGIM Target Date 2065 Fund | 1 | 16.6 | ||||||||
Unaffiliated: |
| |||||||||
PGIM Target Date Income Fund | 3 | 89.0 | ||||||||
PGIM Target Date 2015 Fund | 1 | 86.6 | ||||||||
PGIM Target Date 2020 Fund | 3 | 92.3 | ||||||||
PGIM Target Date 2025 Fund | 4 | 92.2 | ||||||||
PGIM Target Date 2030 Fund | 3 | 87.0 | ||||||||
PGIM Target Date 2035 Fund | 5 | 90.9 | ||||||||
PGIM Target Date 2040 Fund | 3 | 86.0 | ||||||||
PGIM Target Date 2045 Fund | 5 | 94.5 | ||||||||
PGIM Target Date 2050 Fund | 4 | 86.7 | ||||||||
PGIM Target Date 2055 Fund | 5 | 85.7 | ||||||||
PGIM Target Date 2060 Fund | 5 | 87.1 | ||||||||
PGIM Target Date 2065 Fund | 2 | 58.7 |
Transactions in shares of beneficial interest were as follows:
224
PGIM Target Date Income Fund :
Share Class | Shares | Amount | |||||||||||||
Class R1 | |||||||||||||||
Six months ended January 31, 2024: | |||||||||||||||
Shares sold | 14 | $ | 140 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 56 | 553 | |||||||||||||
Shares purchased | — | ** | (4 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 70 | $ | 689 | ||||||||||||
Year ended July 31, 2023: | |||||||||||||||
Shares sold | 24 | $ | 241 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 168 | 1,612 | |||||||||||||
Shares purchased | (1 | ) | (5 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 191 | $ | 1,848 | ||||||||||||
Class R2 | |||||||||||||||
Six months ended January 31, 2024: | |||||||||||||||
Shares sold | 96 | $ | 922 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 69 | 678 | |||||||||||||
Shares purchased | (524 | ) | (5,253 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (359 | ) | $ | (3,653 | ) | ||||||||||
Year ended July 31, 2023: | |||||||||||||||
Shares sold | 8,708 | $ | 91,388 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 235 | 2,260 | |||||||||||||
Shares purchased | (10,148 | ) | (103,841 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (1,205 | ) | $ | (10,193 | ) | ||||||||||
Class R3 | |||||||||||||||
Six months ended January 31, 2024: | |||||||||||||||
Shares sold | 524 | $ | 5,065 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 409 | 4,040 | |||||||||||||
Shares purchased | (46 | ) | (463 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 887 | $ | 8,642 | ||||||||||||
Year ended July 31, 2023: | |||||||||||||||
Shares sold | 965 | $ | 9,474 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 1,108 | 10,642 | |||||||||||||
Shares purchased | (45 | ) | (426 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 2,028 | $ | 19,690 | ||||||||||||
Class R4 | |||||||||||||||
Six months ended January 31, 2024: | |||||||||||||||
Shares issued in reinvestment of dividends and distributions | 63 | $ | 626 | ||||||||||||
Net increase (decrease) in shares outstanding | 63 | $ | 626 |
PGIM Target Date Funds 225
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date Income Fund (cont’d.):
Share Class | Shares | Amount | |||||||||||||
Year ended July 31, 2023: | |||||||||||||||
Shares issued in reinvestment of dividends and distributions | 183 | $ | 1,752 | ||||||||||||
Net increase (decrease) in shares outstanding | 183 | $ | 1,752 | ||||||||||||
Class R5 | |||||||||||||||
Six months ended January 31, 2024: | |||||||||||||||
Shares sold | 1,414 | $ | 13,770 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 2,266 | 22,363 | |||||||||||||
Shares purchased | (4,396 | ) | (42,824 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (716 | ) | $ | (6,691 | ) | ||||||||||
Year ended July 31, 2023: | |||||||||||||||
Shares sold | 5,953 | $ | 58,589 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 6,601 | 63,374 | |||||||||||||
Shares purchased | (5,954 | ) | (58,068 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 6,600 | $ | 63,895 | ||||||||||||
Class R6 | |||||||||||||||
Six months ended January 31, 2024: | |||||||||||||||
Shares sold | 64,010 | $ | 621,759 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 53,692 | 530,810 | |||||||||||||
Shares purchased | (433,878 | ) | (4,287,492 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (316,176 | ) | $ | (3,134,923 | ) | ||||||||||
Year ended July 31, 2023: | |||||||||||||||
Shares sold | 131,578 | $ | 1,298,950 | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 160,973 | 1,548,705 | |||||||||||||
Shares purchased | (328,136 | ) | (3,227,540 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (35,585 | ) | $ | (379,885 | ) | ||||||||||
** Less than 1 share. | |||||||||||||||
PGIM Target Date 2015 Fund:
| |||||||||||||||
Share Class | Shares | Amount | |||||||||||||
Class R1 | |||||||||||||||
Six months ended January 31, 2024: | |||||||||||||||
Shares issued in reinvestment of dividends and distributions | 32 | $ | 322 | ||||||||||||
Net increase (decrease) in shares outstanding | 32 | $ | 322 |
226
PGIM Target Date 2015 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 90 | $ | 856 | |||||||||
Net increase (decrease) in shares outstanding | 90 | $ | 856 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 93 | $ | 912 | |||||||||
Shares issued in reinvestment of dividends and distributions | 147 | 1,479 | ||||||||||
Shares purchased | (42 | ) | (416 | ) | ||||||||
Net increase (decrease) in shares outstanding | 198 | $ | 1,975 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 330 | $ | 3,272 | |||||||||
Shares issued in reinvestment of dividends and distributions | 369 | 3,495 | ||||||||||
Shares purchased | (20 | ) | (206 | ) | ||||||||
Net increase (decrease) in shares outstanding | 679 | $ | 6,561 | |||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 38 | $ | 382 | |||||||||
Net increase (decrease) in shares outstanding | 38 | $ | 382 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 98 | $ | 926 | |||||||||
Net increase (decrease) in shares outstanding | 98 | $ | 926 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 39 | $ | 397 | |||||||||
Net increase (decrease) in shares outstanding | 39 | $ | 397 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 100 | $ | 944 | |||||||||
Net increase (decrease) in shares outstanding | 100 | $ | 944 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 4,005 | $ | 39,732 | |||||||||
Shares issued in reinvestment of dividends and distributions | 615 | 6,178 | ||||||||||
Shares purchased | (518 | ) | (4,995 | ) | ||||||||
Net increase (decrease) in shares outstanding | 4,102 | $ | 40,915 |
PGIM Target Date Funds 227
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2015 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 4,207 | $ | 42,074 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,371 | 12,979 | ||||||||||
Shares purchased | (3,837 | ) | (38,007 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,741 | $ | 17,046 | |||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 6,106 | $ | 59,263 | |||||||||
Shares issued in reinvestment of dividends and distributions | 29,547 | 296,655 | ||||||||||
Shares purchased | (40,662 | ) | (404,168 | ) | ||||||||
Net increase (decrease) in shares outstanding | (5,009 | ) | $ | (48,250 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 5,243 | $ | 54,518 | |||||||||
Shares issued in reinvestment of dividends and distributions | 86,257 | 815,992 | ||||||||||
Shares purchased | (213,374 | ) | (2,112,325 | ) | ||||||||
Net increase (decrease) in shares outstanding | (121,874 | ) | $ | (1,241,815 | ) |
PGIM Target Date 2020 Fund:
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 42 | $ | 430 | |||||||||
Net increase (decrease) in shares outstanding | 42 | $ | 430 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 101 | $ | 976 | |||||||||
Net increase (decrease) in shares outstanding | 101 | $ | 976 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 1,591 | $ | 16,101 | |||||||||
Shares issued in reinvestment of dividends and distributions | 226 | 2,324 | ||||||||||
Shares purchased | (173 | ) | (1,795 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,644 | $ | 16,630 |
228
PGIM Target Date 2020 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 3,798 | $ | 40,107 | |||||||||
Shares issued in reinvestment of dividends and distributions | 647 | 6,256 | ||||||||||
Shares purchased | (3,769 | ) | (37,589 | ) | ||||||||
Net increase (decrease) in shares outstanding | 676 | $ | 8,774 | |||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 3,482 | $ | 35,797 | |||||||||
Shares purchased | (10,307 | ) | (105,647 | ) | ||||||||
Net increase (decrease) in shares outstanding | (6,825 | ) | $ | (69,850 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 8,727 | $ | 84,476 | |||||||||
Shares purchased | (10,824 | ) | (104,995 | ) | ||||||||
Net increase (decrease) in shares outstanding | (2,097 | ) | $ | (20,519 | ) | |||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 99 | $ | 1,006 | |||||||||
Shares issued in reinvestment of dividends and distributions | 50 | 510 | ||||||||||
Net increase (decrease) in shares outstanding | 149 | $ | 1,516 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 110 | $ | 1,068 | |||||||||
Net increase (decrease) in shares outstanding | 110 | $ | 1,068 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 5,762 | $ | 58,886 | |||||||||
Shares issued in reinvestment of dividends and distributions | 10,154 | 104,387 | ||||||||||
Shares purchased | (24,204 | ) | (252,280 | ) | ||||||||
Net increase (decrease) in shares outstanding | (8,288 | ) | $ | (89,007 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 13,434 | $ | 137,571 | |||||||||
Shares issued in reinvestment of dividends and distributions | 24,334 | 235,551 | ||||||||||
Shares purchased | (21,608 | ) | (218,445 | ) | ||||||||
Net increase (decrease) in shares outstanding | 16,160 | $ | 154,677 |
PGIM Target Date Funds 229
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2020 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 51,878 | $ | 526,673 | |||||||||
Shares issued in reinvestment of dividends and distributions | 139,373 | 1,427,182 | ||||||||||
Shares purchased | (741,983 | ) | (7,591,267 | ) | ||||||||
Net increase (decrease) in shares outstanding | (550,732 | ) | $ | (5,637,412 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 117,501 | $ | 1,217,301 | |||||||||
Shares issued in reinvestment of dividends and distributions | 359,913 | 3,469,557 | ||||||||||
Shares purchased | (1,063,420 | ) | (10,854,417 | ) | ||||||||
Net increase (decrease) in shares outstanding | (586,006 | ) | $ | (6,167,559 | ) |
PGIM Target Date 2025 Fund:
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 39 | $ | 409 | |||||||||
Net increase (decrease) in shares outstanding | 39 | $ | 409 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 86 | $ | 846 | |||||||||
Net increase (decrease) in shares outstanding | 86 | $ | 846 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 3,435 | $ | 35,762 | |||||||||
Shares issued in reinvestment of dividends and distributions | 518 | 5,492 | ||||||||||
Shares purchased | (317 | ) | (3,293 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,636 | $ | 37,961 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 4,409 | $ | 45,818 | |||||||||
Shares issued in reinvestment of dividends and distributions | 759 | 7,493 | ||||||||||
Shares purchased | (702 | ) | (7,409 | ) | ||||||||
Net increase (decrease) in shares outstanding | 4,466 | $ | 45,902 |
230
PGIM Target Date 2025 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 546 | $ | 5,695 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,467 | 15,551 | ||||||||||
Net increase (decrease) in shares outstanding | 2,013 | $ | 21,246 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 2,312 | $ | 23,783 | |||||||||
Shares issued in reinvestment of dividends and distributions | 3,010 | 29,707 | ||||||||||
Shares purchased | (1,690 | ) | (16,695 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,632 | $ | 36,795 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 16,968 | $ | 177,088 | |||||||||
Shares issued in reinvestment of dividends and distributions | 620 | 6,574 | ||||||||||
Shares purchased | (16 | ) | (172 | ) | ||||||||
Net increase (decrease) in shares outstanding | 17,572 | $ | 183,490 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 758 | $ | 8,064 | |||||||||
Shares issued in reinvestment of dividends and distributions | 198 | 1,952 | ||||||||||
Shares purchased | (1,604 | ) | (16,150 | ) | ||||||||
Net increase (decrease) in shares outstanding | (648 | ) | $ | (6,134 | ) | |||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 16,681 | $ | 174,785 | |||||||||
Shares issued in reinvestment of dividends and distributions | 2,741 | 29,051 | ||||||||||
Shares purchased | (2,865 | ) | (29,546 | ) | ||||||||
Net increase (decrease) in shares outstanding | 16,557 | $ | 174,290 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 22,311 | $ | 231,493 | |||||||||
Shares issued in reinvestment of dividends and distributions | 4,694 | 46,333 | ||||||||||
Shares purchased | (12,724 | ) | (130,897 | ) | ||||||||
Net increase (decrease) in shares outstanding | 14,281 | $ | 146,929 | |||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 130,538 | $ | 1,373,249 | |||||||||
Shares issued in reinvestment of dividends and distributions | 194,563 | 2,066,255 | ||||||||||
Shares purchased | (1,805,569 | ) | (19,054,809 | ) | ||||||||
Net increase (decrease) in shares outstanding | (1,480,468 | ) | $ | (15,615,305 | ) |
PGIM Target Date Funds 231
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2025 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 352,341 | $ | 3,716,377 | |||||||||
Shares issued in reinvestment of dividends and distributions | 475,872 | 4,701,615 | ||||||||||
Shares purchased | (1,288,773 | ) | (13,476,776 | ) | ||||||||
Net increase (decrease) in shares outstanding | (460,560 | ) | $ | (5,058,784 | ) | |||||||
PGIM Target Date 2030 Fund:
| ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 677 | $ | 7,463 | |||||||||
Shares issued in reinvestment of dividends and distributions | 221 | 2,473 | ||||||||||
Shares purchased | (434 | ) | (4,825 | ) | ||||||||
Net increase (decrease) in shares outstanding | 464 | $ | 5,111 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 790 | $ | 8,787 | |||||||||
Shares issued in reinvestment of dividends and distributions | 464 | 4,803 | ||||||||||
Shares purchased | (29 | ) | (313 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,225 | $ | 13,277 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 1,773 | $ | 19,601 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,092 | 12,260 | ||||||||||
Shares purchased | (263 | ) | (2,945 | ) | ||||||||
Net increase (decrease) in shares outstanding | 2,602 | $ | 28,916 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 3,537 | $ | 38,877 | |||||||||
Shares issued in reinvestment of dividends and distributions | 2,308 | 23,953 | ||||||||||
Shares purchased | (2,805 | ) | (29,924 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,040 | $ | 32,906 |
232
PGIM Target Date 2030 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 7,454 | $ | 82,556 | |||||||||
Shares issued in reinvestment of dividends and distributions | 5,492 | 61,623 | ||||||||||
Shares purchased | (2,021 | ) | (22,452 | ) | ||||||||
Net increase (decrease) in shares outstanding | 10,925 | $ | 121,727 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 15,918 | $ | 174,149 | |||||||||
Shares issued in reinvestment of dividends and distributions | 10,513 | 109,021 | ||||||||||
Shares purchased | (605 | ) | (6,290 | ) | ||||||||
Net increase (decrease) in shares outstanding | 25,826 | $ | 276,880 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 762 | $ | 8,450 | |||||||||
Shares issued in reinvestment of dividends and distributions | 153 | 1,715 | ||||||||||
Shares purchased | (1,552 | ) | (17,428 | ) | ||||||||
Net increase (decrease) in shares outstanding | (637 | ) | $ | (7,263 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 1,756 | $ | 19,353 | |||||||||
Shares issued in reinvestment of dividends and distributions | 299 | 3,094 | ||||||||||
Shares purchased | (1,334 | ) | (13,930 | ) | ||||||||
Net increase (decrease) in shares outstanding | 721 | $ | 8,517 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 107,496 | $ | 1,209,121 | |||||||||
Shares issued in reinvestment of dividends and distributions | 19,162 | 214,999 | ||||||||||
Shares purchased | (12,071 | ) | (134,176 | ) | ||||||||
Net increase (decrease) in shares outstanding | 114,587 | $ | 1,289,944 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 36,291 | $ | 399,496 | |||||||||
Shares issued in reinvestment of dividends and distributions | 31,004 | 321,515 | ||||||||||
Shares purchased | (14,490 | ) | (159,983 | ) | ||||||||
Net increase (decrease) in shares outstanding | 52,805 | $ | 561,028 |
PGIM Target Date Funds 233
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2030 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 244,595 | $ | 2,714,105 | |||||||||
Shares issued in reinvestment of dividends and distributions | 215,206 | 2,418,912 | ||||||||||
Shares purchased | (1,527,187 | ) | (17,130,966 | ) | ||||||||
Net increase (decrease) in shares outstanding | (1,067,386 | ) | $ | (11,997,949 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 350,932 | $ | 3,875,077 | |||||||||
Shares issued in reinvestment of dividends and distributions | 500,111 | 5,191,158 | ||||||||||
Shares purchased | (1,104,450 | ) | (12,107,139 | ) | ||||||||
Net increase (decrease) in shares outstanding | (253,407 | ) | $ | (3,040,904 | ) | |||||||
PGIM Target Date 2035 Fund:
| ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 20 | $ | 220 | |||||||||
Shares issued in reinvestment of dividends and distributions | 91 | 1,035 | ||||||||||
Shares purchased | (344 | ) | (3,771 | ) | ||||||||
Net increase (decrease) in shares outstanding | (233 | ) | $ | (2,516 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 156 | $ | 1,714 | |||||||||
Shares issued in reinvestment of dividends and distributions | 202 | 2,086 | ||||||||||
Shares purchased | (15 | ) | (166 | ) | ||||||||
Net increase (decrease) in shares outstanding | 343 | $ | 3,634 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 3,855 | $ | 43,045 | |||||||||
Shares issued in reinvestment of dividends and distributions | 575 | 6,538 | ||||||||||
Shares purchased | (403 | ) | (4,523 | ) | ||||||||
Net increase (decrease) in shares outstanding | 4,027 | $ | 45,060 |
234
PGIM Target Date 2035 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 4,552 | $ | 49,858 | |||||||||
Shares issued in reinvestment of dividends and distributions | 749 | 7,734 | ||||||||||
Shares purchased | (38,945 | ) | (412,730 | ) | ||||||||
Net increase (decrease) in shares outstanding | (33,644 | ) | $ | (355,138 | ) | |||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 43,630 | $ | 489,565 | |||||||||
Shares issued in reinvestment of dividends and distributions | 3,001 | 34,178 | ||||||||||
Shares purchased | (1,051 | ) | (11,750 | ) | ||||||||
Net increase (decrease) in shares outstanding | 45,580 | $ | 511,993 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 9,469 | $ | 103,483 | |||||||||
Shares issued in reinvestment of dividends and distributions | 2,212 | 22,868 | ||||||||||
Shares purchased | (25 | ) | (257 | ) | ||||||||
Net increase (decrease) in shares outstanding | 11,656 | $ | 126,094 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 56 | $ | 627 | |||||||||
Net increase (decrease) in shares outstanding | 56 | $ | 627 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 103 | $ | 1,075 | |||||||||
Net increase (decrease) in shares outstanding | 103 | $ | 1,075 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 14,756 | $ | 165,781 | |||||||||
Shares issued in reinvestment of dividends and distributions | 3,014 | 34,329 | ||||||||||
Shares purchased | (10,629 | ) | (122,716 | ) | ||||||||
Net increase (decrease) in shares outstanding | 7,141 | $ | 77,394 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 25,477 | $ | 279,458 | |||||||||
Shares issued in reinvestment of dividends and distributions | 4,265 | 44,097 | ||||||||||
Shares purchased | (304 | ) | (3,312 | ) | ||||||||
Net increase (decrease) in shares outstanding | 29,438 | $ | 320,243 |
PGIM Target Date Funds 235
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2035 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 268,131 | $ | 3,024,339 | |||||||||
Shares issued in reinvestment of dividends and distributions | 167,056 | 1,902,765 | ||||||||||
Shares purchased | (1,829,573 | ) | (20,647,413 | ) | ||||||||
Net increase (decrease) in shares outstanding | (1,394,386 | ) | $ | (15,720,309 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 593,469 | $ | 6,508,171 | |||||||||
Shares issued in reinvestment of dividends and distributions | 336,792 | 3,482,425 | ||||||||||
Shares purchased | (572,785 | ) | (6,269,773 | ) | ||||||||
Net increase (decrease) in shares outstanding | 357,476 | $ | 3,720,823 | |||||||||
PGIM Target Date 2040 Fund:
| ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 501 | $ | 5,859 | |||||||||
Shares issued in reinvestment of dividends and distributions | 157 | 1,885 | ||||||||||
Shares purchased | (16 | ) | (185 | ) | ||||||||
Net increase (decrease) in shares outstanding | 642 | $ | 7,559 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 850 | $ | 9,817 | |||||||||
Shares issued in reinvestment of dividends and distributions | 311 | 3,352 | ||||||||||
Shares purchased | (26 | ) | (297 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,135 | $ | 12,872 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 3,214 | $ | 37,776 | |||||||||
Shares issued in reinvestment of dividends and distributions | 685 | 8,256 | ||||||||||
Shares purchased | (4,199 | ) | (49,391 | ) | ||||||||
Net increase (decrease) in shares outstanding | (300 | ) | $ | (3,359 | ) |
236
PGIM Target Date 2040 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 6,424 | $ | 73,496 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,331 | 14,361 | ||||||||||
Shares purchased | (1,719 | ) | (19,820 | ) | ||||||||
Net increase (decrease) in shares outstanding | 6,036 | $ | 68,037 | |||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 2,207 | $ | 26,057 | |||||||||
Shares issued in reinvestment of dividends and distributions | 2,240 | 26,987 | ||||||||||
Net increase (decrease) in shares outstanding | 4,447 | $ | 53,044 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 4,283 | $ | 49,408 | |||||||||
Shares issued in reinvestment of dividends and distributions | 4,719 | 50,923 | ||||||||||
Net increase (decrease) in shares outstanding | 9,002 | $ | 100,331 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 304 | $ | 3,605 | |||||||||
Shares issued in reinvestment of dividends and distributions | 217 | 2,615 | ||||||||||
Shares purchased | (6 | ) | (63 | ) | ||||||||
Net increase (decrease) in shares outstanding | 515 | $ | 6,157 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 1,545 | $ | 18,043 | |||||||||
Shares issued in reinvestment of dividends and distributions | 463 | 5,003 | ||||||||||
Shares purchased | (502 | ) | (5,670 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,506 | $ | 17,376 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 26,419 | $ | 313,653 | |||||||||
Shares issued in reinvestment of dividends and distributions | 23,900 | 288,229 | ||||||||||
Shares purchased | (18,151 | ) | (214,361 | ) | ||||||||
Net increase (decrease) in shares outstanding | 32,168 | $ | 387,521 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 38,244 | $ | 436,749 | |||||||||
Shares issued in reinvestment of dividends and distributions | 50,374 | 544,043 | ||||||||||
Shares purchased | (18,333 | ) | (209,467 | ) | ||||||||
Net increase (decrease) in shares outstanding | 70,285 | $ | 771,325 |
PGIM Target Date Funds 237
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2040 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 379,700 | $ | 4,554,884 | |||||||||
Shares issued in reinvestment of dividends and distributions | 125,822 | 1,518,675 | ||||||||||
Shares purchased | (1,362,296 | ) | (16,405,206 | ) | ||||||||
Net increase (decrease) in shares outstanding | (856,774 | ) | $ | (10,331,647 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 414,930 | $ | 4,848,694 | |||||||||
Shares issued in reinvestment of dividends and distributions | 293,884 | 3,173,946 | ||||||||||
Shares purchased | (625,045 | ) | (7,132,885 | ) | ||||||||
Net increase (decrease) in shares outstanding | 83,769 | $ | 889,755 | |||||||||
PGIM Target Date 2045 Fund:
| ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 45 | $ | 522 | |||||||||
Net increase (decrease) in shares outstanding | 45 | $ | 522 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | — | ** | $ | 2 | ||||||||
Shares issued in reinvestment of dividends and distributions | 91 | 956 | ||||||||||
Shares purchased | — | ** | (2 | ) | ||||||||
Net increase (decrease) in shares outstanding | 91 | $ | 956 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 3,415 | $ | 39,343 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,126 | 13,262 | ||||||||||
Shares purchased | (542 | ) | (5,976 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,999 | $ | 46,629 |
238
PGIM Target Date 2045 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 6,174 | $ | 68,314 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,929 | 20,278 | ||||||||||
Shares purchased | (3,320 | ) | (37,987 | ) | ||||||||
Net increase (decrease) in shares outstanding | 4,783 | $ | 50,605 | |||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 81 | $ | 955 | |||||||||
Net increase (decrease) in shares outstanding | 81 | $ | 955 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 230 | $ | 2,413 | |||||||||
Shares purchased | (1,044 | ) | (11,467 | ) | ||||||||
Net increase (decrease) in shares outstanding | (814 | ) | $ | (9,054 | ) | |||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 22 | $ | 254 | |||||||||
Shares issued in reinvestment of dividends and distributions | 137 | 1,616 | ||||||||||
Shares purchased | (1,411 | ) | (16,196 | ) | ||||||||
Net increase (decrease) in shares outstanding | (1,252 | ) | $ | (14,326 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 1,571 | $ | 16,835 | |||||||||
Shares issued in reinvestment of dividends and distributions | 260 | 2,730 | ||||||||||
Shares purchased | (643 | ) | (7,282 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,188 | $ | 12,283 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 16,828 | $ | 195,754 | |||||||||
Shares issued in reinvestment of dividends and distributions | 3,318 | 39,119 | ||||||||||
Shares purchased | (13,704 | ) | (160,901 | ) | ||||||||
Net increase (decrease) in shares outstanding | 6,442 | $ | 73,972 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 21,654 | $ | 241,608 | |||||||||
Shares issued in reinvestment of dividends and distributions | 4,962 | 52,147 | ||||||||||
Shares purchased | (11,456 | ) | (128,277 | ) | ||||||||
Net increase (decrease) in shares outstanding | 15,160 | $ | 165,478 |
PGIM Target Date Funds 239
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2045 Fund (cont’d.):
Share Class
| Shares
| Amount
| ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 203,243 | $ | 2,372,176 | |||||||||
Shares issued in reinvestment of dividends and distributions | 105,263 | 1,243,152 | ||||||||||
Shares purchased | (1,288,171 | ) | (15,183,020 | ) | ||||||||
Net increase (decrease) in shares outstanding | (979,665 | ) | $ | (11,567,692 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 400,270 | $ | 4,495,843 | |||||||||
Shares issued in reinvestment of dividends and distributions | 202,072 | 2,127,813 | ||||||||||
Shares purchased | (405,305 | ) | (4,525,170 | ) | ||||||||
Net increase (decrease) in shares outstanding | 197,037 | $ | 2,098,486 | |||||||||
** Less than 1 share. | ||||||||||||
PGIM Target Date 2050 Fund:
| ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 453 | $ | 5,436 | |||||||||
Shares issued in reinvestment of dividends and distributions | 172 | 2,115 | ||||||||||
Shares purchased | (20 | ) | (242 | ) | ||||||||
Net increase (decrease) in shares outstanding | 605 | $ | 7,309 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 711 | $ | 8,252 | |||||||||
Shares issued in reinvestment of dividends and distributions | 326 | 3,554 | ||||||||||
Shares purchased | (33 | ) | (388 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,004 | $ | 11,418 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 3,274 | $ | 39,609 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,262 | 15,550 | ||||||||||
Shares purchased | (3,155 | ) | (38,331 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,381 | $ | 16,828 |
240
PGIM Target Date 2050 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 8,287 | $ | 95,673 | |||||||||
Shares issued in reinvestment of dividends and distributions | 2,341 | 25,559 | ||||||||||
Shares purchased | (2,174 | ) | (25,588 | ) | ||||||||
Net increase (decrease) in shares outstanding | 8,454 | $ | 95,644 | |||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 83 | $ | 1,007 | |||||||||
Shares issued in reinvestment of dividends and distributions | 60 | 735 | ||||||||||
Net increase (decrease) in shares outstanding | 143 | $ | 1,742 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 204 | $ | 2,372 | |||||||||
Shares issued in reinvestment of dividends and distributions | 109 | 1,194 | ||||||||||
Net increase (decrease) in shares outstanding | 313 | $ | 3,566 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 349 | $ | 4,225 | |||||||||
Shares issued in reinvestment of dividends and distributions | 318 | 3,912 | ||||||||||
Shares purchased | (8 | ) | (102 | ) | ||||||||
Net increase (decrease) in shares outstanding | 659 | $ | 8,035 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 1,916 | $ | 22,354 | |||||||||
Shares issued in reinvestment of dividends and distributions | 645 | 7,035 | ||||||||||
Shares purchased | (1,709 | ) | (20,421 | ) | ||||||||
Net increase (decrease) in shares outstanding | 852 | $ | 8,968 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 29,710 | $ | 364,773 | |||||||||
Shares issued in reinvestment of dividends and distributions | 5,010 | 61,726 | ||||||||||
Shares purchased | (6,464 | ) | (79,454 | ) | ||||||||
Net increase (decrease) in shares outstanding | 28,256 | $ | 347,045 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 25,176 | $ | 292,474 | |||||||||
Shares issued in reinvestment of dividends and distributions | 8,449 | 92,260 | ||||||||||
Shares purchased | (11,889 | ) | (138,530 | ) | ||||||||
Net increase (decrease) in shares outstanding | 21,736 | $ | 246,204 |
PGIM Target Date Funds 241
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2050 Fund (cont’d.):
Share Class
| Shares
| Amount
| ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 124,015 | $ | 1,504,801 | |||||||||
Shares issued in reinvestment of dividends and distributions | 63,871 | 788,811 | ||||||||||
Shares purchased | (912,952 | ) | (11,235,989 | ) | ||||||||
Net increase (decrease) in shares outstanding | (725,066 | ) | $ | (8,942,377 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 250,373 | $ | 2,948,702 | |||||||||
Shares issued in reinvestment of dividends and distributions | 134,008 | 1,466,047 | ||||||||||
Shares purchased | (243,613 | ) | (2,812,405 | ) | ||||||||
Net increase (decrease) in shares outstanding | 140,768 | $ | 1,602,344 | |||||||||
PGIM Target Date 2055 Fund:
| ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | — | ** | $ | 4 | ||||||||
Shares issued in reinvestment of dividends and distributions | 48 | 506 | ||||||||||
Shares purchased | — | ** | (6 | ) | ||||||||
Net increase (decrease) in shares outstanding | 48 | $ | 504 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | — | ** | $ | 8 | ||||||||
Shares issued in reinvestment of dividends and distributions | 86 | 801 | ||||||||||
Shares purchased | (1 | ) | (12 | ) | ||||||||
Net increase (decrease) in shares outstanding | 85 | $ | 797 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 2,778 | $ | 28,927 | |||||||||
Shares issued in reinvestment of dividends and distributions | 770 | 8,217 | ||||||||||
Shares purchased | (380 | ) | (3,955 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,168 | $ | 33,189 |
242
PGIM Target Date 2055 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 3,379 | $ | 33,693 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,182 | 11,086 | ||||||||||
Shares purchased | (7,924 | ) | (80,260 | ) | ||||||||
Net increase (decrease) in shares outstanding | (3,363 | ) | $ | (35,481 | ) | |||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 1,601 | $ | 16,771 | |||||||||
Shares issued in reinvestment of dividends and distributions | 151 | 1,615 | ||||||||||
Net increase (decrease) in shares outstanding | 1,752 | $ | 18,386 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 2,539 | $ | 25,708 | |||||||||
Shares issued in reinvestment of dividends and distributions | 76 | 716 | ||||||||||
Net increase (decrease) in shares outstanding | 2,615 | $ | 26,424 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 433 | $ | 4,500 | |||||||||
Shares issued in reinvestment of dividends and distributions | 128 | 1,372 | ||||||||||
Shares purchased | (2 | ) | (29 | ) | ||||||||
Net increase (decrease) in shares outstanding | 559 | $ | 5,843 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 1,533 | $ | 14,763 | |||||||||
Shares issued in reinvestment of dividends and distributions | 154 | 1,446 | ||||||||||
Shares purchased | (4 | ) | (37 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,683 | $ | 16,172 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 15,276 | $ | 161,936 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,939 | 20,785 | ||||||||||
Shares purchased | (4,883 | ) | (52,314 | ) | ||||||||
Net increase (decrease) in shares outstanding | 12,332 | $ | 130,407 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 19,244 | $ | 193,184 | |||||||||
Shares issued in reinvestment of dividends and distributions | 2,151 | 20,287 | ||||||||||
Shares purchased | (4,517 | ) | (46,383 | ) | ||||||||
Net increase (decrease) in shares outstanding | 16,878 | $ | 167,088 |
PGIM Target Date Funds 243
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2055 Fund (cont’d.):
Share Class
| Shares
| Amount
| ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 105,254 | $ | 1,105,560 | |||||||||
Shares issued in reinvestment of dividends and distributions | 27,781 | 298,085 | ||||||||||
Shares purchased | (415,883 | ) | (4,450,419 | ) | ||||||||
Net increase (decrease) in shares outstanding | (282,848 | ) | $ | (3,046,774 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 232,010 | $ | 2,341,892 | |||||||||
Shares issued in reinvestment of dividends and distributions | 35,322 | 333,082 | ||||||||||
Shares purchased | (129,391 | ) | (1,294,105 | ) | ||||||||
Net increase (decrease) in shares outstanding | 137,941 | $ | 1,380,869 | |||||||||
** Less than 1 share. | ||||||||||||
PGIM Target Date 2060 Fund:
| ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 250 | $ | 3,150 | |||||||||
Shares issued in reinvestment of dividends and distributions | 59 | 758 | ||||||||||
Net increase (decrease) in shares outstanding | 309 | $ | 3,908 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 242 | $ | 2,924 | |||||||||
Shares issued in reinvestment of dividends and distributions | 120 | 1,368 | ||||||||||
Net increase (decrease) in shares outstanding | 362 | $ | 4,292 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 3,425 | $ | 43,446 | |||||||||
Shares issued in reinvestment of dividends and distributions | 731 | 9,509 | ||||||||||
Shares purchased | (232 | ) | (2,948 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,924 | $ | 50,007 |
244
PGIM Target Date 2060 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 4,820 | $ | 58,320 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,255 | 14,355 | ||||||||||
Shares purchased | (1,135 | ) | (13,800 | ) | ||||||||
Net increase (decrease) in shares outstanding | 4,940 | $ | 58,875 | |||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 261 | $ | 3,312 | |||||||||
Shares issued in reinvestment of dividends and distributions | 115 | 1,491 | ||||||||||
Net increase (decrease) in shares outstanding | 376 | $ | 4,803 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 576 | $ | 7,092 | |||||||||
Shares issued in reinvestment of dividends and distributions | 207 | 2,367 | ||||||||||
Net increase (decrease) in shares outstanding | 783 | $ | 9,459 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 575 | $ | 7,165 | |||||||||
Shares issued in reinvestment of dividends and distributions | 83 | 1,076 | ||||||||||
Shares purchased | (1 | ) | (13 | ) | ||||||||
Net increase (decrease) in shares outstanding | 657 | $ | 8,228 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 354 | $ | 4,336 | |||||||||
Shares issued in reinvestment of dividends and distributions | 125 | 1,435 | ||||||||||
Shares purchased | (1 | ) | (11 | ) | ||||||||
Net increase (decrease) in shares outstanding | 478 | $ | 5,760 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 18,645 | $ | 239,617 | |||||||||
Shares issued in reinvestment of dividends and distributions | 2,258 | 29,399 | ||||||||||
Shares purchased | (1,012 | ) | (12,941 | ) | ||||||||
Net increase (decrease) in shares outstanding | 19,891 | $ | 256,075 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 22,786 | $ | 276,546 | |||||||||
Shares issued in reinvestment of dividends and distributions | 3,130 | 35,836 | ||||||||||
Shares purchased | (7,403 | ) | (90,852 | ) | ||||||||
Net increase (decrease) in shares outstanding | 18,513 | $ | 221,530 |
PGIM Target Date Funds 245
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2060 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 72,914 | $ | 927,229 | |||||||||
Shares issued in reinvestment of dividends and distributions | 19,100 | 248,877 | ||||||||||
Shares purchased | (212,561 | ) | (2,750,289 | ) | ||||||||
Net increase (decrease) in shares outstanding | (120,547 | ) | $ | (1,574,183 | ) | |||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 159,598 | $ | 1,961,284 | |||||||||
Shares issued in reinvestment of dividends and distributions | 43,122 | 494,175 | ||||||||||
Shares purchased | (179,056 | ) | (2,166,593 | ) | ||||||||
Net increase (decrease) in shares outstanding | 23,664 | $ | 288,866 | |||||||||
PGIM Target Date 2065 Fund: | ||||||||||||
Share Class | Shares | Amount | ||||||||||
Class R1 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 18 | $ | 203 | |||||||||
Net increase (decrease) in shares outstanding | 18 | $ | 203 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 48 | $ | 481 | |||||||||
Net increase (decrease) in shares outstanding | 48 | $ | 481 | |||||||||
Class R2 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 2,622 | $ | 28,979 | |||||||||
Shares issued in reinvestment of dividends and distributions | 193 | 2,208 | ||||||||||
Shares purchased | (1,498 | ) | (16,938 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,317 | $ | 14,249 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 3,082 | $ | 32,044 | |||||||||
Shares issued in reinvestment of dividends and distributions | 366 | 3,621 | ||||||||||
Shares purchased | (115 | ) | (1,218 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,333 | $ | 34,447 |
246
PGIM Target Date 2065 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Class R3 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 968 | $ | 11,250 | |||||||||
Shares issued in reinvestment of dividends and distributions | 53 | 608 | ||||||||||
Net increase (decrease) in shares outstanding | 1,021 | $ | 11,858 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 727 | $ | 7,500 | |||||||||
Shares issued in reinvestment of dividends and distributions | 53 | 532 | ||||||||||
Shares purchased | (25 | ) | (247 | ) | ||||||||
Net increase (decrease) in shares outstanding | 755 | $ | 7,785 | |||||||||
Class R4 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 24 | $ | 277 | |||||||||
Net increase (decrease) in shares outstanding | 24 | $ | 277 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 55 | $ | 545 | |||||||||
Net increase (decrease) in shares outstanding | 55 | $ | 545 | |||||||||
Class R5 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 30 | $ | 347 | |||||||||
Net increase (decrease) in shares outstanding | 30 | $ | 347 | |||||||||
Year ended July 31, 2023: | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 67 | $ | 664 | |||||||||
Net increase (decrease) in shares outstanding | 67 | $ | 664 | |||||||||
Class R6 | ||||||||||||
Six months ended January 31, 2024: | ||||||||||||
Shares sold | 4,355 | $ | 48,489 | |||||||||
Shares issued in reinvestment of dividends and distributions | 912 | 10,419 | ||||||||||
Shares purchased | (23,953 | ) | (268,782 | ) | ||||||||
Net increase (decrease) in shares outstanding | (18,686 | ) | $ | (209,874 | ) |
PGIM Target Date Funds 247
Notes to Financial Statements (unaudited) (continued)
PGIM Target Date 2065 Fund (cont’d.):
Share Class | Shares | Amount | ||||||||||
Year ended July 31, 2023: | ||||||||||||
Shares sold | 26,145 | $ | 276,216 | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,588 | 15,753 | ||||||||||
Shares purchased | (15,422 | ) | (160,907 | ) | ||||||||
Net increase (decrease) in shares outstanding | 12,311 | $ | 131,062 |
8. | Borrowings |
The RIC, on behalf of the Target Date Funds, along with other affiliated registered investment companies (the “Participating 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 as well as the prior SCA.
Current SCA | Prior SCA | |||||
Term of Commitment | 9/29/2023 - 9/26/2024 | 9/30/2022 – 9/28/2023 | ||||
Total Commitment | $ 1,200,000,000 | $ 1,200,000,000 | ||||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||||
Annualized Interest Rate on Borrowings | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent
| 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent
|
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 to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Target Date Funds did not utilize the SCA during the reporting period ended January 31, 2024.
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9. | Risks of Investing in the Target Date Funds |
Each Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the risks applicable to any given Fund, please refer to the Prospectus and Statement of Additional Information of that Fund.
Risks | PGIM Target Date Income Fund | PGIM Target Date 2015 Fund | PGIM 2020 Fund | PGIM 2025 Fund | PGIM 2030 Fund | PGIM 2035 Fund | ||||||||
Affiliated Funds | X | X | X | X | X | X | ||||||||
Asset Allocation | X | X | X | X | X | X | ||||||||
Asset Class Variation | X | X | X | X | X | X | ||||||||
Credit | X | X | X | X | X | X | ||||||||
Debt Obligations | X | X | X | X | X | X | ||||||||
Derivatives | X | X | X | X | X | X | ||||||||
Economic and Market Events | X | X | X | X | X | X | ||||||||
Equity and Equity-Related Securities | X | X | X | X | X | X | ||||||||
Fixed Income | X | X | X | X | X | X | ||||||||
Fund of Funds | X | X | X | X | X | X | ||||||||
Fund Rebalancing | X | X | X | X | X | X | ||||||||
Increase in Expenses | X | X | X | X | X | X | ||||||||
Index Tracking | X | X | X | X | X | X | ||||||||
Interest Rate | X | X | X | X | X | X | ||||||||
Investment Style | X | X | X | X | X | X | ||||||||
Large Shareholder and Large Scale | X | X | X | X | X | X | ||||||||
Redemption | X | X | X | X | X | X | ||||||||
Liquidity | X | X | X | X | X | X | ||||||||
Management | X | X | X | X | X | X | ||||||||
Market | X | X | X | X | X | X | ||||||||
Market Capitalization | X | X | X | X | X | X | ||||||||
Market Disruption and Geopolitical | X | X | X | X | X | X | ||||||||
Portfolio Turnover | X | X | X | X | X | X | ||||||||
Target Date/Income | X | X | X | X | X | X | ||||||||
Risks | PGIM Target Date 2040 Fund | PGIM Target Date 2045 Fund | PGIM Target Date 2050 Fund | PGIM Target Date 2055 Fund | PGIM Target Date 2060 Fund | PGIM Target Date 2065 Fund | ||||||||
Affiliated Funds | X | X | X | X | X | X | ||||||||
Asset Allocation | X | X | X | X | X | X | ||||||||
Asset Class Variation | X | X | X | X | X | X | ||||||||
Credit | X | X | X | X | X | X | ||||||||
Debt Obligations | X | X | X | X | X | X | ||||||||
Derivatives | X | X | X | X | X | X | ||||||||
Economic and Market Events | X | X | X | X | X | X | ||||||||
Equity and Equity-Related Securities | X | X | X | X | X | X | ||||||||
Fixed Income | X | X | X | X | X | X | ||||||||
Fund of Funds | X | X | X | X | X | X | ||||||||
Fund Rebalancing | X | X | X | X | X | X | ||||||||
Increase in Expenses | X | X | X | X | X | X |
PGIM Target Date Funds 249
Notes to Financial Statements (unaudited) (continued)
Risks | PGIM Target Date 2040 Fund | PGIM Target Date 2045 Fund | PGIM Target Date 2050 Fund | PGIM Target Date 2055 Fund | PGIM Target Date 2060 Fund | PGIM Target Date | ||||||
Index Tracking | X | X | X | X | X | X | ||||||
Interest Rate | X | X | X | X | X | X | ||||||
Investment Style | X | X | X | X | X | X | ||||||
Large Shareholder and Large Scale Redemption | X | X | X | X | X | X | ||||||
Liquidity | X | X | X | X | X | X | ||||||
Management | X | X | X | X | X | X | ||||||
Market | X | X | X | X | X | X | ||||||
Market Capitalization | X | X | X | X | X | X | ||||||
Market Disruption and Geopolitical | X | X | X | X | X | X | ||||||
Portfolio Turnover | X | X | X | X | X | X | ||||||
Target Date/Income | X | X | X | X | X | X |
Affiliated Funds Risk: The Fund’s Manager serves as manager of the Underlying Funds. In addition, the Fund may invest in certain Underlying Funds for which the subadviser serves as subadviser. It is possible that a conflict of interest among the Fund and the Underlying Funds could affect how the Manager and subadviser fulfill their fiduciary duties to the Fund and the Underlying Funds. For example, the subadviser may have an incentive to allocate the Fund’s assets to those Underlying Funds for which the fees paid to the Manager or the subadviser are higher than the fees paid by other Underlying Funds for which the subadviser also serves as a subadviser. However, the Fund has adopted procedures to mitigate these concerns.
Asset Allocation Risk: The Fund’s risks will directly correspond to the risks of the Underlying Funds in which it invests. By investing in many Underlying Funds, the Fund has partial exposure to the risks of many different areas in the market, and the Fund’s overall level of risk should decline over time. However, the selection of the Underlying Funds and the allocation of the Fund’s assets among the various asset classes and market sectors could cause the Fund to underperform other funds with a similar investment objective.
Asset Class Variation Risk: The Underlying Funds invest principally in the securities constituting their asset class (i.e., equity, non-traditional and fixed income). However, under normal market conditions, an Underlying Fund may vary the percentage of assets in these securities (subject to any applicable regulatory requirements). Depending on the percentage of securities in a particular asset class held by the Underlying Funds at any given time and the percentage of the Fund’s assets invested in various Underlying Funds, the Fund’s actual exposure to the securities in a particular asset class may vary substantially from the allocation to that asset class. There is a risk that the Manager’s evaluations and assumptions regarding asset classes or Underlying Funds may be incorrect in view of actual market conditions.
250
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract may be unable or unwilling to make timely principal and interest payments or to otherwise honor its obligations. Additionally, the securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.
Debt Obligations Risk: Debt obligations are subject to credit risk, market risk and interest rate risk. The Fund’s holdings, share price, yield and total return may also 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 rate of interest and therefore would earn less income.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Underlying Funds. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Underlying Funds will depend on the subadviser’s ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” or may create economic leverage for the Underlying Funds and therefore may magnify or otherwise increase investment losses to the Underlying Funds. The Underlying Funds’ use of derivatives may also increase the amount of taxes payable by shareholders.
Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Underlying Funds’ derivatives positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Underlying Funds. The use of derivatives also exposes the Underlying Funds to operational issues, such as documentation and settlement issues, systems failures, inadequate control and human error.
Derivatives may also involve legal risks, such as insufficient documentation, the lack of capacity or authority of a counterparty to execute or settle a transaction, and the legality and enforceability of derivatives contracts. The U.S. Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements and risk exposure limitations. Regulation of derivatives may make derivatives more costly, limit their availability or utility to the Underlying Funds, or otherwise adversely affect their performance or disrupt markets.
Economic and Market Events Risk: Economic and market events risk is the risk that one or more markets in which the Portfolio invests will decline in value, including the possibility that
PGIM Target Date Funds 251
Notes to Financial Statements (unaudited) (continued)
the markets will decline sharply and unpredictably. While a Portfolio’s Manager or Subadviser(s) may make efforts to control the risks associated with market changes, and may attempt to identify changes as they occur, market environment changes can be sudden and extreme. Significant shocks to or disruptions of the financial markets or the economy, including those relating to general economic, political, or financial market conditions; significant or unexpected failures, near-failures or credit downgrades of key institutions; investor sentiment and market perceptions; unexpected changes in the prices of key commodities; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry or sector, could adversely affect the liquidity and volatility of securities held by the Portfolio. In periods of market volatility and/or declines, the Portfolio may experience high levels of shareholder redemptions, and may have to sell securities at times when it would otherwise not do so, and at unfavorable prices.
Equity and Equity-Related Securities Risks: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which an Underlying Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Fixed Income Risk: As with credit risk, market risk and interest rate risk, an Underlying 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 an Underlying Fund for redemption before it matures and the Underlying Fund may lose income.
Fund of Funds Risk: The value of an investment in the Fund will be related, to a substantial degree, to the investment performance of the Underlying Funds in which it invests.
Therefore, the principal risks of investing in the Fund are closely related to the principal risks associated with these Underlying Funds and their investments. Because the Fund’s allocation among different Underlying Funds and direct investments in securities and derivatives will vary, an investment in the Fund may be subject to any and all of these risks at different times and to different degrees. Investing in an Underlying Fund will also expose the Fund to a pro rata portion of the Underlying Fund’s fees and expenses. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Fund would indirectly bear the costs of these trades without accomplishing the investment purpose.
Fund Rebalancing Risk: Underlying Funds may experience relatively large redemptions or investments due to a rebalancing of the Fund’s allocations. In such event, an Underlying
252
Fund may be required to sell securities or to invest cash at a time when it is not advantageous to do so. Rebalancing may increase brokerage and/or other transaction costs of an Underlying Fund, increase the Underlying Fund’s expenses or result in the Underlying Fund’s becoming too small to be economically viable. Rebalancing may also adversely affect an Underlying Fund’s performance and thus the Fund’s performance. The impact of rebalancing is likely to be greater when the Fund purchases, redeems or invests in a substantial portion of an Underlying Fund.
The subadviser will seek to cooperate with the subadvisers of the Underlying Funds to minimize any adverse impact on the Underlying Funds. The subadvisers of the Underlying Funds may take such actions as they deem appropriate to minimize such adverse impact, considering the potential benefits of such investments to the Underlying Funds and consistent with their obligations to the Underlying Funds. Such actions may delay the rebalancing of the Fund’s investments in the event of significant market or other events that may require more rapid action.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Underlying Fund securities can increase expenses.
Index Tracking Risk: While certain Underlying Funds generally seek to track the performance of an index as closely as possible (i.e., achieve a high degree of correlation with an index), the return may not match or achieve a high degree of correlation with the return of the index due to operating expenses, transaction costs, cash flows, regulatory requirements and operational inefficiencies. If an index fund is properly correlated to its stated index, the fund will perform poorly when the index performs poorly.
Interest Rate Risk: The value of your 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 debt securities. Similarly, a rise in interest rates may also have a greater negative impact on the value of equity securities whose issuers expect earnings further out in the future. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” 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 lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
PGIM Target Date Funds 253
Notes to Financial Statements (unaudited) (continued)
Investment Style Risk: Under certain market conditions, growth investments have performed better during the later stages of economic expansion and value investments have performed better during periods of economic recovery. Therefore, these investment styles may over time go in and out of favor. At times when an investment style used by an Underlying Fund is out of favor, the Fund may underperform other funds that use different investment styles.
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 Funds’ 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: An Underlying Fund may not be able to sell a holding in a timely manner at a desired price. This risk could affect both stock and bond funds in which the fund invests, but typically represents a greater risk for bond funds. Reduced liquidity in the bond markets can result from a number of events, such as limited trading activity, reductions in bond inventory, and rapid or unexpected changes in interest rates. Less liquid markets could lead to greater price volatility and limit an Underlying Fund’s ability to sell a holding at a suitable price.
Management Risk: Actively managed funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but the subadviser’s judgments about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements may be incorrect. Additionally, the investments selected for the Fund may underperform the markets in general, the Fund’s benchmark and other funds with similar investment objectives.
Market Risk: Securities markets may be volatile and the market prices of an Underlying 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 an Underlying Fund fall, the value of the Fund’s investment in the Underlying Fund will decline.
254
Market Capitalization Risk: Certain Underlying Funds may invest in stocks of small- and medium-size companies which may present above-average risks. These companies usually offer a smaller range of products and services than larger companies. They may also have limited financial resources and may lack management depth. As a result, the prices of stocks issued by small- and medium-size companies tend to fluctuate more than the stocks of larger, more established companies. In exchange for potentially lower risks of investing in large capitalization companies, such investments may not rise as much in value as the value of investments in smaller-capitalized companies.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Portfolio Turnover Risk: The Fund does not intend to re-allocate assets among the Underlying Funds frequently in response to day-to-day changes in markets. Historically, however, certain Underlying Funds have actively and frequently traded their portfolio securities. High portfolio turnover results in higher transaction costs and can affect an Underlying Fund’s, and, therefore, the Fund’s performance and can have adverse tax consequences.
Target Date/ Income Risk: The Fund may suffer losses near, at or after the target date, and the Fund does not provide a guarantee that sufficient capital appreciation will be achieved to provide adequate income at and through retirement. The Fund does not assure an investor that the assets in the Fund will provide income in amounts adequate to meet the investor’s retirement or financial goals. These risks may be increased to the extent that the participant begins to make withdrawals significantly before the Fund’s target year. For investors who are close to or in retirement, the Fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a
PGIM Target Date Funds 255
Notes to Financial Statements (unaudited) (continued)
need to withdraw funds. For investors who are farther from retirement, there is a risk the Fund may invest too much in investments designed to ensure capital conservation and/or current income, which may prevent the investor from meeting his or her retirement goals.
10. | Recent Regulatory Developments |
Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments (the “Rule”). Other information, including financial statements, will no longer appear in the funds’ streamlined shareholder reports but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The Rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the Rule and its impact to the Target Date Funds.
256
655 Broad Street
Newark, NJ 07102 | ∎ TELEPHONE
(800)225-1852 | ∎ WEBSITE
pgim.com/investments |
PROXY VOTING
The Board of Trustees of the Funds has delegated to the Funds’ subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Funds. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Funds’ website and on the Commission’s website at sec.gov. |
TRUSTEES
Ellen S. Alberding · Kevin J. Bannon · Scott E. Benjamin · Linda W. Bynoe · Barry H. Evans · Keith F. Hartstein · Laurie Simon Hodrick · Stuart S. Parker · Brian K. Reid · Grace C. Torres |
OFFICERS
Stuart S. Parker, President · Scott E. Benjamin, Vice President · Christian J. Kelly, Chief Financial Officer · Claudia DiGiacomo, Chief Legal Officer · Andrew Donohue, Chief Compliance Officer · Russ Shupak, Treasurer and Principal Accounting Officer · Kelly Florio, Anti-Money Laundering Compliance Officer · Andrew R. French, Secretary · Melissa Gonzalez, Assistant Secretary · Kelly A. Coyne, Assistant Secretary · Patrick E. McGuinness, Assistant Secretary · Debra Rubano, Assistant Secretary · George Hoyt, Assistant Secretary · Devan Goolsby, Assistant Secretary · Lana Lomuti, Assistant Treasurer · Elyse M. McLaughlin, Assistant Treasurer · Deborah Conway, Assistant Treasurer · Robert W. McCormack, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
SUBADVISER | PGIM DC Solutions LLC | 655 Broad Street Newark, NJ 07102 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 534432 Pittsburgh, PA 15253 | ||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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 Funds carefully before investing. The prospectus and summary prospectus for each Fund contain this and other information about the Funds. An investor may obtain a prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.
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E-DELIVERY
To receive your mutual fund documents online, go to pgim.com/investments/resource/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 Target Date Funds, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at the same address. Communications are not screened before being delivered to the addressee.
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AVAILABILITY OF PORTFOLIO SCHEDULE
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year 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. |
The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and is available without charge, upon request, by calling (800) 225-1852.
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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 TARGET DATE FUNDS | NASDAQ | CUSIP | NASDAQ | CUSIP | NASDAQ | CUSIP | ||||||||||
PGIM Target Date Income Fund (Share Class R1) | PDADX | 74445D109 | PGIM Target Date 2030 Fund (Share Class R1) | PDFCX | 74445D646 | PGIM Target Date 2050 Fund (Share Class R1) | PDJDX | 74445D372 | ||||||||
PGIM Target Date Income Fund (Share Class R2) | PDAEX | 74445D208 | PGIM Target Date 2030 Fund (Share Class R2) | PDFEX | 74445D638 | PGIM Target Date 2050 Fund (Share Class R2) | PDJEX | 74445D364 | ||||||||
PGIM Target Date Income Fund (Share Class R3) | PDAFX | 74445D307 | PGIM Target Date 2030 Fund (Share Class R3) | PDFFX | 74445D620 | PGIM Target Date 2050 Fund (Share Class R3) | PDJFX | 74445D356 | ||||||||
PGIM Target Date Income Fund (Share Class R4) | PDAGX | 74445D406 | PGIM Target Date 2030 Fund (Share Class R4) | PDFGX | 74445D612 | PGIM Target Date 2050 Fund (Share Class R4) | PDJGX | 74445D349 | ||||||||
PGIM Target Date Income Fund (Share Class R5) | PDAHX | 74445D505 | PGIM Target Date 2030 Fund (Share Class R5) | PDFHX | 74445D596 | PGIM Target Date 2050 Fund (Share Class R5) | PDJHX | 74445D331 | ||||||||
PGIM Target Date Income Fund (Share Class R6) | PDAJX | 74445D604 | PGIM Target Date 2030 Fund (Share Class R6) | PDFJX | 74445D588 | PGIM Target Date 2050 Fund (Share Class R6) | PDJJX | 74445D323 | ||||||||
PGIM Target Date 2015 Fund (Share Class R1) | PDCDX | 74445D844 | PGIM Target Date 2035 Fund (Share Class R1) | PDGCX | 74445D570 | PGIM Target Date 2055 Fund (Share Class R1) | PDKDX | 74445D315 | ||||||||
PGIM Target Date 2015 Fund (Share Class R2) | PDCEX | 74445D836 | PGIM Target Date 2035 Fund (Share Class R2) | PDGEX | 74445D562 | PGIM Target Date 2055 Fund (Share Class R2) | PDKEX | 74445D299 | ||||||||
PGIM Target Date 2015 Fund (Share Class R3) | PDCFX | 74445D828 | PGIM Target Date 2035 Fund (Share Class R3) | PDGFX | 74445D554 | PGIM Target Date 2055 Fund (Share Class R3) | PDKFX | 74445D281 | ||||||||
PGIM Target Date 2015 Fund (Share Class R4) | PDCGX | 74445D810 | PGIM Target Date 2035 Fund (Share Class R4) | PDGGX | 74445D547 | PGIM Target Date 2055 Fund (Share Class R4) | PDKGX | 74445D273 | ||||||||
PGIM Target Date 2015 Fund (Share Class R5) | PDCHX | 74445D794 | PGIM Target Date 2035 Fund (Share Class R5) | PDGHX | 74445D539 | PGIM Target Date 2055 Fund (Share Class R5) | PDKHX | 74445D265 | ||||||||
PGIM Target Date 2015 Fund (Share Class R6) | PDCJX | 74445D786 | PGIM Target Date 2035 Fund (Share Class R6) | PDGJX | 74445D521 | PGIM Target Date 2055 Fund (Share Class R6) | PDKJX | 74445D257 | ||||||||
PGIM Target Date 2020 Fund (Share Class R1) | PDDDX | 74445D778 | PGIM Target Date 2040 Fund (Share Class R1) | PDHDX | 74445D513 | PGIM Target Date 2060 Fund (Share Class R1) | PDLDX | 74445D240 | ||||||||
PGIM Target Date 2020 Fund (Share Class R2) | PDDEX | 74445D760 | PGIM Target Date 2040 Fund (Share Class R2) | PDHEX | 74445D497 | PGIM Target Date 2060 Fund (Share Class R2) | PDLEX | 74445D232 | ||||||||
PGIM Target Date 2020 Fund (Share Class R3) | PDDFX | 74445D752 | PGIM Target Date 2040 Fund (Share Class R3) | PDHFX | 74445D489 | PGIM Target Date 2060 Fund (Share Class R3) | PDLFX | 74445D224 | ||||||||
PGIM Target Date 2020 Fund (Share Class R4) | PDDGX | 74445D745 | PGIM Target Date 2040 Fund (Share Class R4) | PDHGX | 74445D471 | PGIM Target Date 2060 Fund (Share Class R4) | PDLGX | 74445D216 | ||||||||
PGIM Target Date 2020 Fund (Share Class R5) | PDDHX | 74445D737 | PGIM Target Date 2040 Fund (Share Class R5) | PDHHX | 74445D463 | PGIM Target Date 2060 Fund (Share Class R5) | PDLHX | 74445D190 | ||||||||
PGIM Target Date 2020 Fund (Share Class R6) | PDDJX | 74445D729 | PGIM Target Date 2040 Fund (Share Class R6) | PDHJX | 74445D455 | PGIM Target Date 2060 Fund (Share Class R6) | PDLJX | 74445D182 | ||||||||
PGIM Target Date 2025 Fund (Share Class R1) | PDEDX | 74445D711 | PGIM Target Date 2045 Fund (Share Class R1) | PDIDX | 74445D448 | PGIM Target Date 2065 Fund (Share Class R1) | PDOAX | 74440V674 | ||||||||
PGIM Target Date 2025 Fund (Share Class R2) | PDEEX | 74445D695 | PGIM Target Date 2045 Fund (Share Class R2) | PDIEX | 74445D430 | PGIM Target Date 2065 Fund (Share Class R2) | PDODX | 74440V666 | ||||||||
PGIM Target Date 2025 Fund (Share Class R3) | PDEFX | 74445D687 | PGIM Target Date 2045 Fund (Share Class R3) | PDIKX | 74445D422 | PGIM Target Date 2065 Fund (Share Class R3) | PDOEX | 74440V658 | ||||||||
PGIM Target Date 2025 Fund (Share Class R4) | PDEGX | 74445D679 | PGIM Target Date 2045 Fund (Share Class R4) | PDIGX | 74445D414 | PGIM Target Date 2065 Fund (Share Class R4) | PDOFX | 74440V641 | ||||||||
PGIM Target Date 2025 Fund (Share Class R5) | PDEHX | 74445D661 | PGIM Target Date 2045 Fund (Share Class R5) | PDIHX | 74445D398 | PGIM Target Date 2065 Fund (Share Class R5) | PDOGX | 74440V633 | ||||||||
PGIM Target Date 2025 Fund (Share Class R6) | PDEJX | 74445D653 | PGIM Target Date 2045 Fund (Share Class R6) | PDIJX | 74445D380 | PGIM Target Date 2065 Fund (Share Class R6) | PDOHX | 74440V625 |
MF236E2
Item 2 – | Code of Ethics – Not required, as this is not an annual filing. |
Item 3 – | Audit Committee Financial Expert – Not required, as this is not an annual filing. |
Item 4 – | Principal Accountant Fees and Services – Not required, as this is not an annual filing. |
Item 5 – | Audit Committee of Listed Registrants – Not applicable. |
Item 6 – | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. |
Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. |
Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
Item 10 – | Submission of Matters to a Vote of Security Holders – 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 (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably 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.
(a)(2)(1) Any written solicitation to purchase securities under Rule 23c-1 – Not applicable.
(a)(2)(2) Change in the registrant’s independent public accountant – Not applicable.
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 5 | |
By: | /s/ Andrew R. French | |
Andrew R. French | ||
Secretary | ||
Date: | March 19, 2024 |
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: | March 19, 2024 | |
By: | /s/ Christian J. Kelly | |
Christian J. Kelly | ||
Chief Financial Officer (Principal Financial Officer) | ||
Date: | March 19, 2024 |