UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
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| Investment Company Act file number: | | 811-09999 |
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| Exact name of registrant as specified in charter: | | Prudential Investment Portfolios 2 |
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| (This FormN-CSR relates solely to the Registrant’s: PGIM QMA Emerging Markets Equity Fund and PGIM QMA International Developed Markets Index Fund) |
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| Address of principal executive offices: | | 655 Broad Street, 17th Floor |
| | Newark, New Jersey 07102 |
| |
| Name and address of agent for service: | | Andrew R. French |
| | 655 Broad Street, 17th Floor |
| | Newark, New Jersey 07102 |
| |
| Registrant’s telephone number, including area code: | | 800-225-1852 |
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| Date of fiscal year end: | | 10/31/2019 |
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| Date of reporting period: | | 4/30/2019 |
Item 1 – Reports to Stockholders
PGIM QMA EMERGING MARKETS EQUITY FUND
SEMIANNUAL REPORT
APRIL 30, 2019
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an email request to PGIM Investments at shareholderreports@pgim.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to shareholderreports@pgim.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
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Objective:To seek to provide returns in excess of the Morgan Stanley Capital
International Emerging Markets Index over full market cycles. |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2019 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. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company.© 2019 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.
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| 2 | | Visit our website at pgiminvestments.com |
Your Fund’s Performance (unaudited)
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
| | | | | | |
| | |
| | | Total Returns as of 4/30/19 | | Average Annual Total Returns as of 4/30/19 |
| | | Six Months* (%) | | One Year (%) | | Since Inception (%) |
Fund | | 9.72 | | –8.51 | | 10.59 (11/29/16) |
| MSCI Emerging Markets Index | | | | |
| | 13.76 | | –5.04 | | 12.14 |
| Lipper Emerging Markets Funds Average | | | | |
| | | 13.57 | | –5.59 | | 10.43 |
Source: PGIM Investments LLC and Lipper Inc.
*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. Since Inception returns for the Index and the Lipper Average are measured from the closest month-end to the Fund’s inception date.
Benchmark Definitions
MSCI Emerging Markets Index—The MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates.
Lipper Emerging Markets Funds Average—The Lipper Emerging Markets Funds Average (Lipper Average) is comprised of funds that seek long-term capital appreciation by investing at least 65% of total assets in emerging market equity securities, where “emerging market” is defined by a country’s GNP per capita or other economic measures.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
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| PGIM QMA Emerging Markets Equity Fund | | | 3 | |
Your Fund’s Performance(continued)
Presentation of Fund Holdings
| | | | |
|
Five Largest Holdings expressed as a
percentage of net assets as of 04/30/19 (%) | |
Tencent Holdings Ltd.,Interactive Media & Services | | | 5.2 | |
| Alibaba Group Holding Ltd.,Internet & Direct Marketing Retail | | | 4.1 | |
| Taiwan Semiconductor Manufacturing Co. Ltd.,Semiconductors & Semiconductor Equipment | | | 3.2 | |
| Samsung Electronics Co. Ltd.,Technology Hardware, Storage & Peripherals | | | 2.9 | |
| China Construction Bank Corp. (Class H Stock),Banks | | | 1.6 | |
Holdings reflect only long-term investments and are subject to change.
| | | | |
|
Five Largest Industries expressed as a
percentage of net assets as of 04/30/19 (%) | |
| Banks | | | 17.7 | |
| Oil, Gas & Consumable Fuels | | | 7.2 | |
| Interactive Media & Services | | | 6.4 | |
| Internet & Direct Marketing Retail | | | 6.4 | |
| Semiconductors & Semiconductor Equipment | | | 4.9 | |
Industry weightings reflect only long-term investments and are subject to change.
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| 4 | | Visit our website at pgiminvestments.com |
Fees and Expenses (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2019. 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
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| PGIM QMA Emerging Markets Equity Fund | | | 5 | |
Fees and Expenses (continued)
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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PGIM QMA
Emerging Markets
Equity Fund | | Beginning Account
Value
November 1, 2018 | | | Ending Account
Value
April 30, 2019 | | | Annualized
Expense Ratio
Based on the
Six-Month Period | | | Expenses Paid
During the
Six-Month Period* | |
Actual | | | $1,000.00 | | | $ | 1,097.20 | | | | 1.20 | % | | $ | 6.24 | |
| Hypothetical | | $ | 1,000.00 | | | $ | 1,018.84 | | | | 1.20 | % | | $ | 6.01 | |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2019, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2019 (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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| 6 | | Visit our website at pgiminvestments.com |
Schedule of Investments(unaudited)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
LONG-TERM INVESTMENTS 99.8% | | | | | | | | |
| | |
COMMON STOCKS 95.4% | | | | | | | | |
| | |
Brazil 5.1% | | | | | | | | |
Atacadao SA | | | 2,200 | | | $ | 11,911 | |
B3 SA-Brasil Bolsa Balcao | | | 11,200 | | | | 98,687 | |
Banco Bradesco SA | | | 6,613 | | | | 52,267 | |
Banco do Brasil SA | | | 21,300 | | | | 269,272 | |
Banco Santander Brasil SA, UTS | | | 17,000 | | | | 196,182 | |
Centrais Eletricas Brasileiras SA | | | 1,200 | | | | 10,038 | |
Engie Brasil Energia SA | | | 10,925 | | | | 124,209 | |
Hypera SA | | | 7,700 | | | | 55,456 | |
IRB Brasil Resseguros SA | | | 6,500 | | | | 156,570 | |
Lojas Renner SA | | | 4,100 | | | | 48,433 | |
Magazine Luiza SA | | | 4,500 | | | | 217,994 | |
Petrobras Distribuidora SA | | | 6,600 | | | | 39,521 | |
Petroleo Brasileiro SA | | | 16,600 | | | | 127,047 | |
Porto Seguro SA | | | 4,100 | | | | 56,851 | |
Vale SA | | | 5,632 | | | | 72,161 | |
| | | | | | | | |
| | | | | | | 1,536,599 | |
| | |
Chile 1.2% | | | | | | | | |
Cencosud SA | | | 82,442 | | | | 156,412 | |
Cia Cervecerias Unidas SA | | | 10,510 | | | | 145,244 | |
Colbun SA | | | 198,200 | | | | 44,305 | |
Enel Americas SA | | | 158,155 | | | | 27,752 | |
| | | | | | | | |
| | | | | | | 373,713 | |
| | |
China 32.8% | | | | | | | | |
3SBio, Inc., 144A | | | 7,000 | | | | 12,999 | |
Agricultural Bank of China Ltd. (Class H Stock) | | | 156,000 | | | | 72,055 | |
Alibaba Group Holding Ltd., ADR* | | | 6,600 | | | | 1,224,762 | |
Angang Steel Co. Ltd. (Class H Stock) | | | 128,000 | | | | 86,138 | |
Anhui Conch Cement Co. Ltd. (Class H Stock) | | | 40,500 | | | | 247,931 | |
ANTA Sports Products Ltd. | | | 14,000 | | | | 98,996 | |
Autohome, Inc., ADR*(a) | | | 2,300 | | | | 265,627 | |
Baidu, Inc., ADR* | | | 500 | | | | 83,115 | |
Bank of China Ltd. (Class H Stock) | | | 442,000 | | | | 210,828 | |
Bank of Communications Co. Ltd. (Class H Stock) | | | 51,000 | | | | 43,006 | |
Beijing Enterprises Holdings Ltd. | | | 9,500 | | | | 50,615 | |
Beijing Enterprises Water Group Ltd.* | | | 30,000 | | | | 18,614 | |
CGN Power Co. Ltd. (Class H Stock), 144A | | | 59,000 | | | | 15,574 | |
China Communications Services Corp. Ltd. (Class H Stock) | | | 14,000 | | | | 11,281 | |
China Conch Venture Holdings Ltd. | | | 9,000 | | | | 30,480 | |
China Construction Bank Corp. (Class H Stock) | | | 552,000 | | | | 488,369 | |
See Notes to Financial Statements.
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| PGIM QMA Emerging Markets Equity Fund | | | 7 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
China (cont’d.) | | | | | | | | |
China Medical System Holdings Ltd. | | | 146,000 | | | $ | 129,708 | |
China Merchants Securities Co. Ltd. (Class A Stock) | | | 5,900 | | | | 15,379 | |
China Mobile Ltd. | | | 50,500 | | | | 481,895 | |
China National Building Material Co. Ltd. (Class H Stock) | | | 232,000 | | | | 216,500 | |
China Pacific Insurance Group Co. Ltd. (Class H Stock) | | | 14,000 | | | | 57,496 | |
China Resources Cement Holdings Ltd. | | | 14,000 | | | | 14,048 | |
China Resources Pharmaceutical Group Ltd., 144A | | | 43,500 | | | | 61,886 | |
China Resources Power Holdings Co. Ltd. | | | 10,000 | | | | 14,005 | |
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. (Class A Stock) | | | 3,700 | | | | 16,200 | |
China Shenhua Energy Co. Ltd. (Class H Stock) | | | 18,500 | | | | 40,955 | |
China State Construction Engineering Corp. Ltd. (Class A Stock) | | | 19,400 | | | | 17,652 | |
China Telecom Corp. Ltd. (Class H Stock) | | | 406,000 | | | | 210,333 | |
China Unicom Hong Kong Ltd. | | | 174,000 | | | | 206,601 | |
CITIC Ltd. | | | 152,000 | | | | 221,753 | |
CNOOC Ltd. | | | 98,000 | | | | 177,437 | |
COSCO SHIPPING Ports Ltd. | | | 72,000 | | | | 71,879 | |
Country Garden Holdings Co. Ltd. | | | 87,000 | | | | 140,330 | |
Daqin Railway Co. Ltd. (Class A Stock) | | | 12,400 | | | | 15,694 | |
Far East Horizon Ltd. | | | 145,000 | | | | 161,638 | |
Fosun International Ltd. | | | 13,500 | | | | 20,979 | |
Future Land Development Holdings Ltd. | | | 10,000 | | | | 11,989 | |
Geely Automobile Holdings Ltd. | | | 36,000 | | | | 72,278 | |
Greenland Holdings Group Co. Ltd. (Class A Stock) | | | 13,100 | | | | 14,548 | |
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. (Class A Stock) | | | 2,500 | | | | 16,903 | |
Henan Shuanghui Investment & Development Co. Ltd. (Class A Stock) | | | 4,100 | | | | 16,905 | |
Hengan International Group Co. Ltd. | | | 13,500 | | | | 118,953 | |
Industrial & Commercial Bank of China Ltd. (Class H Stock) | | | 373,000 | | | | 280,244 | |
JD.com, Inc., ADR* | | | 6,200 | | | | 187,674 | |
Jinke Properties Group Co. Ltd. (Class A Stock) | | | 16,300 | | | | 18,435 | |
Kangmei Pharmaceutical Co. Ltd. (Class A Stock) | | | 9,500 | | | | 13,417 | |
Lenovo Group Ltd. | | | 68,000 | | | | 63,080 | |
Logan Property Holdings Co. Ltd. | | | 8,000 | | | | 12,762 | |
Longfor Group Holdings Ltd. | | | 8,000 | | | | 29,548 | |
Luye Pharma Group Ltd., 144A(a) | | | 173,500 | | | | 157,668 | |
Pinduoduo, Inc., ADR* | | | 2,300 | | | | 51,129 | |
Ping An Bank Co. Ltd. (Class A Stock) | | | 7,500 | | | | 15,432 | |
Ping An Insurance Group Co. of China Ltd. (Class H Stock) | | | 32,000 | | | | 385,794 | |
Sany Heavy Industry Co. Ltd. (Class A Stock) | | | 9,100 | | | | 16,582 | |
Seazen Holdings Co. Ltd. (Class A Stock) | | | 2,400 | | | | 14,116 | |
Shaanxi Coal Industry Co. Ltd. (Class A Stock) | | | 10,900 | | | | 14,620 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
China (cont’d.) | | | | | | | | |
Shandong Weigao Group Medical Polymer Co. Ltd. (Class H Stock) | | | 72,000 | | | $ | 70,846 | |
Shanghai Pharmaceuticals Holding Co. Ltd. (Class H Stock) | | | 4,900 | | | | 10,266 | |
Shanghai Pudong Development Bank Co. Ltd. (Class A Stock) | | | 11,000 | | | | 19,583 | |
Shimao Property Holdings Ltd. | | | 75,500 | | | | 230,861 | |
Shui On Land Ltd. | | | 454,500 | | | | 110,855 | |
Sinopec Shanghai Petrochemical Co. Ltd. (Class H Stock) | | | 316,000 | | | | 143,097 | |
Sinotruk Hong Kong Ltd.(a) | | | 82,000 | | | | 178,017 | |
Sunac China Holdings Ltd. | | | 20,000 | | | | 103,638 | |
Tencent Holdings Ltd. | | | 31,700 | | | | 1,568,027 | |
Tencent Music Entertainment Group, ADR* | | | 2,700 | | | | 46,440 | |
Tongwei Co. Ltd. (Class A Stock) | | | 7,900 | | | | 16,808 | |
Vipshop Holdings Ltd., ADR* | | | 2,400 | | | | 20,664 | |
Weichai Power Co. Ltd. (Class H Stock) | | | 144,000 | | | | 236,205 | |
Wuliangye Yibin Co. Ltd. (Class A Stock) | | | 1,300 | | | | 19,718 | |
XCMG Construction Machinery Co. Ltd. (Class A Stock) | | | 23,400 | | | | 15,901 | |
Yum China Holdings, Inc. | | | 5,700 | | | | 270,978 | |
Zhejiang Chint Electrics Co. Ltd. (Class A Stock) | | | 3,500 | | | | 13,197 | |
Zoomlion Heavy Industry Science and Technology Co. Ltd. (Class A Stock) | | | 22,600 | | | | 16,590 | |
| | | | | | | | |
| | | | | | | 9,856,526 | |
| | |
Colombia 0.7% | | | | | | | | |
Bancolombia SA | | | 1,330 | | | | 16,207 | |
Ecopetrol SA | | | 198,678 | | | | 183,424 | |
| | | | | | | | |
| | | | | | | 199,631 | |
| | |
Czech Republic 0.7% | | | | | | | | |
Komercni banka A/S | | | 5,361 | | | | 203,494 | |
| | |
Greece 0.9% | | | | | | | | |
Hellenic Telecommunications Organization SA | | | 1,346 | | | | 18,674 | |
JUMBO SA | | | 10,979 | | | | 199,402 | |
Motor Oil Hellas Corinth Refineries SA | | | 2,465 | | | | 62,909 | |
| | | | | | | | |
| | | | | | | 280,985 | |
| | |
Hong Kong 0.1% | | | | | | | | |
Sino Biopharmaceutical Ltd. | | | 36,000 | | | | 34,626 | |
| | |
Hungary 0.2% | | | | | | | | |
OTP Bank Nyrt | | | 1,236 | | | | 54,815 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 9 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
India 8.0% | | | | | | | | |
Adani Ports & Special Economic Zone Ltd. | | | 2,826 | | | $ | 15,975 | |
Bajaj Auto Ltd. | | | 4,629 | | | | 198,885 | |
Bajaj Finance Ltd. | | | 962 | | | | 42,903 | |
Bharti Infratel Ltd. | | | 38,028 | | | | 143,539 | |
Container Corp. Of India Ltd. | | | 1,150 | | | | 8,165 | |
Dr Reddy’s Laboratories Ltd. | | | 620 | | | | 26,231 | |
HCL Technologies Ltd. | | | 14,688 | | | | 250,190 | |
Hindalco Industries Ltd. | | | 59,451 | | | | 176,418 | |
Housing Development Finance Corp. Ltd. | | | 2,838 | | | | 81,508 | |
Indiabulls Housing Finance Ltd. | | | 1,530 | | | | 15,328 | |
Infosys Ltd., ADR | | | 2,200 | | | | 23,672 | |
Larsen & Toubro Ltd. | | | 2,953 | | | | 57,332 | |
LIC Housing Finance Ltd. | | | 1,647 | | | | 11,777 | |
NTPC Ltd. | | | 83,157 | | | | 160,406 | |
Power Grid Corp. of India Ltd. | | | 74,685 | | | | 200,405 | |
Reliance Industries Ltd., GDR, 144A | | | 3,298 | | | | 132,737 | |
Tata Consultancy Services Ltd. | | | 4,896 | | | | 159,390 | |
Tata Steel Ltd. | | | 20,527 | | | | 164,675 | |
Tech Mahindra Ltd. | | | 7,449 | | | | 89,630 | |
Titan Co. Ltd. | | | 7,511 | | | | 125,270 | |
Vedanta Ltd. | | | 7,265 | | | | 17,401 | |
Wipro Ltd. | | | 50,080 | | | | 215,232 | |
Zee Entertainment Enterprises Ltd. | | | 14,930 | | | | 93,051 | |
| | | | | | | | |
| | | | | | | 2,410,120 | |
| | |
Indonesia 1.9% | | | | | | | | |
Astra International Tbk PT | | | 43,400 | | | | 23,237 | |
Bank Rakyat Indonesia Persero Tbk PT | | | 544,500 | | | | 167,153 | |
Bukit Asam Tbk PT* | | | 622,600 | | | | 173,513 | |
Gudang Garam Tbk PT | | | 32,100 | | | | 190,379 | |
Kalbe Farma Tbk PT | | | 115,200 | | | | 12,484 | |
| | | | | | | | |
| | | | | | | 566,766 | |
| | |
Luxembourg 0.0% | | | | | | | | |
Reinet Investments SCA | | | 803 | | | | 13,511 | |
| | |
Malaysia 1.6% | | | | | | | | |
Genting Bhd | | | 11,800 | | | | 20,124 | |
Genting Malaysia Bhd | | | 16,600 | | | | 12,771 | |
Petronas Chemicals Group Bhd | | | 85,100 | | | | 185,197 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Malaysia (cont’d.) | | | | | | | | |
RHB Bank Bhd | | | 150,000 | | | $ | 216,494 | |
Tenaga Nasional Bhd | | | 17,300 | | | | 51,392 | |
| | | | | | | | |
| | | | | | | 485,978 | |
| | |
Mexico 2.2% | | | | | | | | |
America Movil SAB de CV (Class L Stock) | | | 202,000 | | | | 149,920 | |
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand (Class B Stock) | | | 40,600 | | | | 68,167 | |
El Puerto de Liverpool SAB de CV (Class C1 Stock) | | | 17,400 | | | | 112,563 | |
Fibra Uno Administracion SA de CV, REIT | | | 17,400 | | | | 25,791 | |
Gruma SAB de CV (Class B Stock) | | | 17,065 | | | | 170,580 | |
Grupo Aeroportuario del Pacifico SAB de CV (Class B Stock) | | | 2,000 | | | | 20,266 | |
Grupo Financiero Inbursa SAB de CV (Class O Stock) | | | 12,600 | | | | 19,255 | |
Promotora y Operadora de Infraestructura SAB de CV | | | 1,245 | | | | 12,636 | |
Wal-Mart de Mexico SAB de CV | | | 28,400 | | | | 83,442 | |
| | | | | | | | |
| | | | | | | 662,620 | |
| | |
Pakistan 0.6% | | | | | | | | |
Oil & Gas Development Co. Ltd. | | | 171,300 | | | | 170,592 | |
| | |
Peru 0.3% | | | | | | | | |
Credicorp Ltd. | | | 400 | | | | 94,760 | |
| | |
Philippines 1.6% | | | | | | | | |
International Container Terminal Services, Inc. | | | 4,810 | | | | 11,653 | |
Jollibee Foods Corp. | | | 5,850 | | | | 34,210 | |
PLDT, Inc. | | | 7,930 | | | | 187,650 | |
SM Prime Holdings, Inc. | | | 316,000 | | | | 250,758 | |
| | | | | | | | |
| | | | | | | 484,271 | |
| | |
Poland 0.7% | | | | | | | | |
Polski Koncern Naftowy ORLEN SA | | | 540 | | | | 13,882 | |
Powszechna Kasa Oszczednosci Bank Polski SA | | | 4,848 | | | | 49,890 | |
Powszechny Zaklad Ubezpieczen SA | | | 13,309 | | | | 146,515 | |
| | | | | | | | |
| | | | | | | 210,287 | |
| | |
Qatar 0.1% | | | | | | | | |
Masraf Al Rayan QSC | | | 1,992 | | | | 19,811 | |
| | |
Russia 4.2% | | | | | | | | |
Gazprom PJSC | | | 89,470 | | | | 227,527 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 11 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Russia (cont’d.) | | | | | | | | |
Inter RAO UES PJSC | | | 171,000 | | | $ | 10,439 | |
LUKOIL PJSC | | | 3,857 | | | | 328,806 | |
Magnit PJSC, GDR | | | 2,160 | | | | 30,965 | |
Magnitogorsk Iron & Steel Works PJSC | | | 12,400 | | | | 8,484 | |
MMC Norilsk Nickel PJSC | | | 130 | | | | 28,895 | |
Novolipetsk Steel PJSC | | | 6,090 | | | | 16,166 | |
Rosneft Oil Co. PJSC | | | 14,720 | | | | 97,743 | |
Sberbank of Russia PJSC, ADR | | | 22,221 | | | | 321,729 | |
Tatneft PJSC | | | 11,470 | | | | 134,628 | |
X5 Retail Group NV, GDR | | | 1,728 | | | | 52,282 | |
| | | | | | | | |
| | | | | | | 1,257,664 | |
| | |
South Africa 5.8% | | | | | | | | |
Absa Group Ltd. | | | 2,473 | | | | 28,390 | |
Anglo American Platinum Ltd. | | | 3,019 | | | | 152,491 | |
Aspen Pharmacare Holdings Ltd. | | | 14,077 | | | | 101,386 | |
Exxaro Resources Ltd. | | | 16,091 | | | | 183,864 | |
Kumba Iron Ore Ltd. | | | 7,271 | | | | 218,036 | |
MultiChoice Group Ltd.* | | | 2,396 | | | | 21,535 | |
Naspers Ltd. (Class N Stock) | | | 1,662 | | | | 424,829 | |
Nedbank Group Ltd. | | | 9,706 | | | | 180,671 | |
Netcare Ltd. | | | 6,499 | | | | 10,890 | |
Old Mutual Ltd. | | | 27,166 | | | | 43,664 | |
RMB Holdings Ltd. | | | 3,961 | | | | 23,144 | |
SPAR Group Ltd. (The) | | | 6,788 | | | | 92,211 | |
Standard Bank Group Ltd. | | | 20,037 | | | | 279,495 | |
| | | | | | | | |
| | | | | | | 1,760,606 | |
| | |
South Korea 11.6% | | | | | | | | |
BNK Financial Group, Inc. | | | 2,507 | | | | 15,045 | |
Cheil Worldwide, Inc. | | | 7,322 | | | | 159,647 | |
Daelim Industrial Co. Ltd. | | | 1,011 | | | | 83,949 | |
Fila Korea Ltd. | | | 610 | | | | 43,176 | |
GS Engineering & Construction Corp. | | | 327 | | | | 11,393 | |
Hana Financial Group, Inc. | | | 7,799 | | | | 245,858 | |
Hanwha Chemical Corp. | | | 574 | | | | 10,144 | |
HLB, Inc.* | | | 172 | | | | 12,389 | |
Hotel Shilla Co. Ltd. | | | 181 | | | | 17,900 | |
Hyundai Glovis Co. Ltd. | | | 104 | | | | 14,200 | |
Hyundai Mobis Co. Ltd. | | | 371 | | | | 73,813 | |
Industrial Bank of Korea | | | 18,217 | | | | 220,716 | |
KB Financial Group, Inc. | | | 4,362 | | | | 172,158 | |
Kia Motors Corp. | | | 6,841 | | | | 265,708 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
Korea Gas Corp. | | | 948 | | | $ | 37,485 | |
KT&G Corp. | | | 2,666 | | | | 232,615 | |
LG Uplus Corp. | | | 595 | | | | 7,291 | |
Lotte Corp. | | | 679 | | | | 28,485 | |
Orange Life Insurance Ltd., 144A | | | 2,959 | | | | 90,012 | |
POSCO | | | 1,210 | | | | 264,572 | |
Samsung C&T Corp. | | | 1,256 | | | | 110,178 | |
Samsung Electronics Co. Ltd. | | | 22,507 | | | | 883,840 | |
Samsung Fire & Marine Insurance Co. Ltd. | | | 166 | | | | 43,189 | |
Samsung Life Insurance Co. Ltd. | | | 379 | | | | 27,526 | |
Shinhan Financial Group Co. Ltd. | | | 4,828 | | | | 182,158 | |
SK Hynix, Inc. | | | 771 | | | | 52,122 | |
SK Telecom Co. Ltd. | | | 109 | | | | 23,128 | |
Woori Financial Group, Inc. | | | 14,516 | | | | 172,078 | |
| | | | | | | | |
| | | | | | | 3,500,775 | |
| | |
Taiwan 12.0% | | | | | | | | |
AU Optronics Corp. | | | 47,000 | | | | 16,841 | |
Cathay Financial Holding Co. Ltd. | | | 45,000 | | | | 65,098 | |
Chailease Holding Co. Ltd. | | | 6,000 | | | | 25,557 | |
Delta Electronics, Inc. | | | 46,000 | | | | 242,356 | |
Feng TAY Enterprise Co. Ltd. | | | 29,000 | | | | 235,992 | |
Hon Hai Precision Industry Co. Ltd. | | | 134,000 | | | | 377,409 | |
Largan Precision Co. Ltd. | | | 1,000 | | | | 150,984 | |
Lite-On Technology Corp. | | | 12,000 | | | | 16,909 | |
Nien Made Enterprise Co. Ltd. | | | 9,000 | | | | 70,674 | |
Novatek Microelectronics Corp. | | | 32,000 | | | | 209,306 | |
Quanta Computer, Inc. | | | 15,000 | | | | 28,776 | |
Realtek Semiconductor Corp. | | | 34,000 | | | | 230,233 | |
Shanghai Commercial & Savings Bank Ltd. (The) | | | 60,000 | | | | 96,680 | |
SinoPac Financial Holdings Co. Ltd. | | | 59,000 | | | | 22,725 | |
Taiwan High Speed Rail Corp. | | | 106,000 | | | | 129,151 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | 114,000 | | | | 958,947 | |
Uni-President Enterprises Corp. | | | 109,000 | | | | 259,099 | |
Wistron Corp. | | | 15,000 | | | | 12,449 | |
Yuanta Financial Holding Co. Ltd. | | | 428,000 | | | | 248,048 | |
Zhen Ding Technology Holding Ltd. | | | 63,000 | | | | 225,922 | |
| | | | | | | | |
| | | | | | | 3,623,156 | |
| | |
Thailand 1.3% | | | | | | | | |
Airports of Thailand PCL | | | 106,600 | | | | 229,027 | |
Bumrungrad Hospital PCL | | | 2,000 | | | | 11,092 | |
Electricity Generating PCL | | | 4,200 | | | | 38,935 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 13 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Thailand (cont’d.) | | | | | | | | |
Indorama Ventures PCL | | | 9,239 | | | $ | 13,259 | |
Krung Thai Bank PCL | | | 149,700 | | | | 88,653 | |
| | | | | | | | |
| | | | | | | 380,966 | |
| | |
Turkey 1.2% | | | | | | | | |
BIM Birlesik Magazalar A/S | | | 12,144 | | | | 169,014 | |
Coca-Cola Icecek A/S | | | 13,219 | | | | 70,239 | |
Eregli Demir ve Celik Fabrikalari TAS | | | 23,557 | | | | 36,213 | |
Haci Omer Sabanci Holding A/S | | | 34,125 | | | | 44,137 | |
KOC Holding A/S | | | 4,145 | | | | 11,282 | |
Tupras Turkiye Petrol Rafinerileri A/S | | | 715 | | | | 14,793 | |
Turkcell Iletisim Hizmetleri A/S | | | 6,332 | | | | 13,291 | |
| | | | | | | | |
| | | | | | | 358,969 | |
| | |
United Arab Emirates 0.5% | | | | | | | | |
Abu Dhabi Commercial Bank PJSC | | | 49,421 | | | | 132,912 | |
Aldar Properties PJSC | | | 21,467 | | | | 10,394 | |
| | | | | | | | |
| | | | | | | 143,306 | |
| | |
United States 0.1% | | | | | | | | |
JBS SA | | | 5,300 | | | | 26,519 | |
| | | | | | | | |
TOTAL COMMON STOCKS
(cost $25,102,300) | | | | | | | 28,711,066 | |
| | | | | | | | |
| | |
EXCHANGE-TRADED FUND 1.5% | | | | | | | | |
| | |
United States | | | | | | | | |
iShares MSCI Emerging Markets ETF
(cost $397,692) | | | 10,049 | | | | 441,453 | |
| | | | | | | | |
| | |
PREFERRED STOCKS 2.9% | | | | | | | | |
| | |
Brazil 2.3% | | | | | | | | |
Banco Bradesco SA (PRFC) | | | 30,000 | | | | 272,373 | |
Cia Brasileira de Distribuicao (PRFC) | | | 900 | | | | 22,188 | |
Itau Unibanco Holding SA (PRFC) | | | 26,900 | | | | 232,839 | |
Petroleo Brasileiro SA (PRFC) | | | 20,300 | | | | 140,403 | |
Telefonica Brasil SA (PRFC) | | | 2,400 | | | | 28,517 | |
| | | | | | | | |
| | | | | | | 696,320 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
PREFERRED STOCKS (Continued) | | | | | | | | |
| | |
Colombia 0.1% | | | | | | | | |
Bancolombia SA (PRFC) | | | 2,448 | | | $ | 30,967 | |
| | |
South Korea 0.5% | | | | | | | | |
LG Chem Ltd. (PRFC) | | | 43 | | | | 7,388 | |
Samsung Electronics Co. Ltd. (PRFC) | | | 4,800 | | | | 152,571 | |
| | | | | | | | |
| | | | | | | 159,959 | |
| | | | | | | | |
TOTAL PREFERRED STOCKS
(cost $854,680) | | | | | | | 887,246 | |
| | | | | | | | |
TOTAL LONG-TERM INVESTMENTS
(cost $26,354,672) | | | | | | | 30,039,765 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENTS 4.2% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUNDS | | | | | | | | |
PGIM Core Ultra Short Bond Fund(w) | | | 657,431 | | | | 657,431 | |
PGIM Institutional Money Market Fund (cost $585,365; includes $584,149 of cash collateral for securities on loan)(b)(w) | | | 585,336 | | | | 585,511 | |
| | | | | | | | |
TOTAL SHORT-TERM INVESTMENTS
(cost $1,242,796) | | | | | | | 1,242,942 | |
| | | | | | | | |
TOTAL INVESTMENTS 104.0%
(cost $27,597,468) | | | | | | | 31,282,707 | |
Liabilities in excess of other assets (4.0)% | | | | | | | (1,190,188 | ) |
| | | | | | | | |
NET ASSETS 100.0% | | | | | | $ | 30,092,519 | |
| | | | | | | | |
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
ETF—Exchange-Traded Fund
GDR—Global Depositary Receipt
LIBOR—London Interbank Offered Rate
MSCI—Morgan Stanley Capital International
PJSC—Public Joint-Stock Company
PRFC—Preference Shares
REIT(s)—Real Estate Investment Trust(s)
UTS—Unit Trust Security
| * | Non-income producing security. |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 15 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| (a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $553,252; cash collateral of $584,149 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. |
| (b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (w) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2019 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | |
Brazil | | $ | 1,536,599 | | | $ | — | | | $ | — | |
Chile | | | 373,713 | | | | — | | | | — | |
China | | | 2,150,389 | | | | 7,706,137 | | | | — | |
Colombia | | | 199,631 | | | | — | | | | — | |
Czech Republic | | | — | | | | 203,494 | | | | — | |
Greece | | | — | | | | 280,985 | | | | — | |
Hong Kong | | | — | | | | 34,626 | | | | — | |
Hungary | | | — | | | | 54,815 | | | | — | |
India | | | 23,672 | | | | 2,386,448 | | | | — | |
Indonesia | | | — | | | | 566,766 | | | | — | |
Luxembourg | | | — | | | | 13,511 | | | | — | |
Malaysia | | | — | | | | 485,978 | | | | — | |
Mexico | | | 662,620 | | | | — | | | | — | |
Pakistan | | | — | | | | 170,592 | | | | — | |
Peru | | | 94,760 | | | | — | | | | — | |
Philippines | | | — | | | | 484,271 | | | | — | |
Poland | | | — | | | | 210,287 | | | | — | |
Qatar | | | — | | | | 19,811 | | | | — | |
Russia | | | — | | | | 1,257,664 | | | | — | |
South Africa | | | — | | | | 1,760,606 | | | | — | |
South Korea | | | — | | | | 3,500,775 | | | | — | |
Taiwan | | | — | | | | 3,623,156 | | | | — | |
Thailand | | | — | | | | 380,966 | | | | — | |
Turkey | | | — | | | | 358,969 | | | | — | |
United Arab Emirates | | | — | | | | 143,306 | | | | — | |
United States | | | 26,519 | | | | — | | | | — | |
Exchange-Traded Fund | | | | | | | | | | | | |
United States | | | 441,453 | | | | — | | | | — | |
See Notes to Financial Statements.
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities (continued) | | | | | | | | | | | | |
Preferred Stocks | | | | | | | | | | | | |
Brazil | | $ | 696,320 | | | $ | — | | | $ | — | |
Colombia | | | 30,967 | | | | — | | | | — | |
South Korea | | | — | | | | 159,959 | | | | — | |
Affiliated Mutual Funds | | | 1,242,942 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 7,479,585 | | | $ | 23,803,122 | | | $ | — | |
| | | | | | | | | | | | |
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2019 were as follows:
| | | | |
Banks | | | 17.7 | % |
Oil, Gas & Consumable Fuels | | | 7.2 | |
Interactive Media & Services | | | 6.4 | |
Internet & Direct Marketing Retail | | | 6.4 | |
Semiconductors & Semiconductor Equipment | | | 4.9 | |
Affiliated Mutual Funds (1.9% represents investments purchased with collateral from securities on loan) | | | 4.2 | |
Metals & Mining | | | 4.2 | |
Technology Hardware, Storage & Peripherals | | | 3.8 | |
Insurance | | | 3.6 | |
Electronic Equipment, Instruments & Components | | | 3.3 | |
Real Estate Management & Development | | | 3.0 | |
Wireless Telecommunication Services | | | 2.8 | |
IT Services | | | 2.4 | |
Food & Staples Retailing | | | 2.1 | |
Diversified Telecommunication Services | | | 2.0 | |
Pharmaceuticals | | | 2.0 | |
Automobiles | | | 1.9 | |
Machinery | | | 1.8 | |
Food Products | | | 1.8 | |
Transportation Infrastructure | | | 1.7 | |
Textiles, Apparel & Luxury Goods | | | 1.6 | |
Construction Materials | | | 1.5 | |
Exchange-Traded Fund | | | 1.5 | |
Tobacco | | | 1.4 | |
Industrial Conglomerates | | | 1.3 | |
Multiline Retail | | | 1.3 | |
Independent Power & Renewable Electricity Producers | | | 1.2 | |
Capital Markets | | | 1.2 | |
Chemicals | | | 1.2 | |
Hotels, Restaurants & Leisure | | | 1.1 | % |
Electric Utilities | | | 1.0 | |
Media | | | 0.9 | |
Specialty Retail | | | 0.9 | |
Diversified Financial Services | | | 0.9 | |
Beverages | | | 0.8 | |
Construction & Engineering | | | 0.6 | |
Personal Products | | | 0.4 | |
Thrifts & Mortgage Finance | | | 0.4 | |
Gas Utilities | | | 0.3 | |
Auto Components | | | 0.2 | |
Health Care Equipment & Supplies | | | 0.2 | |
Household Durables | | | 0.2 | |
Entertainment | | | 0.2 | |
Consumer Finance | | | 0.1 | |
Equity Real Estate Investment Trusts (REITs) | | | 0.1 | |
Road & Rail | | | 0.1 | |
Water Utilities | | | 0.1 | |
Air Freight & Logistics | | | 0.1 | |
Health Care Providers & Services | | | 0.0 | * |
Electrical Equipment | | | 0.0 | * |
Biotechnology | | | 0.0 | * |
Leisure Products | | | 0.0 | * |
| | | | |
| | | 104.0 | |
Liabilities in excess of other assets | | | (4.0 | ) |
| | | | |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 17 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2019
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments equity contracts risk risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
The Fund did not hold any derivative instruments as of April 30, 2019, accordingly, no derivative positions were presented in the Statement of Assets and Liabilities.
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2019 are as follows:
| | | | |
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging
instruments, carried at fair value | | Rights(1) | |
Equity contracts | | $ | 6,214 | |
| | | | |
| (1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
For the six months ended April 30, 2019, the Fund did not have any net change in unrealized appreciation (depreciation) on investments in the Statement of Operations.
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 toset-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 | | $ | 553,252 | | | $ | (553,252 | ) | | $ | — | |
| | | | | | | | | | | | |
| (1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
Statement of Assets & Liabilities(unaudited)
as of April 30, 2019
| | | | |
Assets | | | | |
Investments at value, including securities on loan of $553,252: | | | | |
Unaffiliated investments (cost $26,354,672) | | $ | 30,039,765 | |
Affiliated investments (cost $1,242,796) | | | 1,242,942 | |
Foreign currency, at value (cost $385,795) | | | 387,020 | |
Receivable for investments sold | | | 648,535 | |
Receivable for Fund shares sold | | | 64,128 | |
Dividends receivable | | | 45,968 | |
Tax reclaim receivable | | | 3,397 | |
Prepaid expenses | | | 615 | |
| | | | |
Total Assets | | | 32,432,370 | |
| | | | |
| |
Liabilities | | | | |
Payable for investments purchased | | | 1,661,740 | |
Payable to broker for collateral for securities on loan | | | 584,149 | |
Accrued expenses and other liabilities | | | 73,755 | |
Management fee payable | | | 11,059 | |
Foreign capital gains tax liability accrued | | | 4,810 | |
Payable for Fund shares reacquired | | | 4,284 | |
Affiliated transfer agent fee payable | | | 54 | |
| | | | |
Total Liabilities | | | 2,339,851 | |
| | | | |
| |
Net Assets | | $ | 30,092,519 | |
| | | | |
| | | | | |
Net assets were comprised of: | | | | |
Shares of beneficial interest, at par | | $ | 2,605 | |
Paid-in capital in excess of par | | | 27,293,551 | |
Total distributable earnings (loss) | | | 2,796,363 | |
| | | | |
Net assets, April 30, 2019 | | $ | 30,092,519 | |
| | | | |
| |
Class R6 | | | | |
Net asset value, offering price and redemption price per share,
($30,092,519 ÷ 2,604,998 shares of beneficial interest issued and outstanding) | | $ | 11.55 | |
| | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 19 | |
Statement of Operations(unaudited)
Six Months Ended April 30, 2019
| | | | |
Net Investment Income (Loss) | | | | |
Income | | | | |
Unaffiliated dividend income (net of $64,222 foreign withholding tax) | | $ | 237,030 | |
Income from securities lending, net (including affiliated income of $1,241) | | | 4,020 | |
Affiliated dividend income | | | 1,024 | |
| | | | |
Total income | | | 242,074 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 105,440 | |
Custodian and accounting fees | | | 60,949 | |
Audit fee | | | 16,187 | |
Shareholders’ reports | | | 9,995 | |
Legal fees and expenses | | | 8,028 | |
Trustees’ fees | | | 5,949 | |
Transfer agent’s fees and expenses (including affiliated expense of $152) | | | 164 | |
Registration fees | | | 31 | |
Miscellaneous | | | 11,878 | |
| | | | |
Total expenses | | | 218,621 | |
Less: Fee waiver and/or expense reimbursement | | | (49,749 | ) |
| | | | |
Net expenses | | | 168,872 | |
| | | | |
Net investment income (loss) | | | 73,202 | |
| | | | |
| |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $325) | | | (793,228 | ) |
Foreign currency transactions | | | (4,392 | ) |
| | | | |
| | | (797,620 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $152) (net of change in foreign capital gains taxes $4,810) | | | 3,353,542 | |
Foreign currencies | | | (458 | ) |
| | | | |
| | | 3,353,084 | |
| | | | |
Net gain (loss) on investment and foreign currency transactions | | | 2,555,464 | |
| | | | |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 2,628,666 | |
| | | | |
See Notes to Financial Statements.
Statements of Changes in Net Assets(unaudited)
| | | | | | | | |
| | |
| | | Six Months
Ended
April 30, 2019 | | | Year
Ended
October 31, 2018 | |
Increase (Decrease) in Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 73,202 | | | $ | 464,900 | |
Net realized gain (loss) on investment and foreign currency transactions | | | (797,620 | ) | | | 262,144 | |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | 3,353,084 | | | | (4,494,759 | ) |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 2,628,666 | | | | (3,767,715 | ) |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class R6 | | | (787,341 | ) | | | (1,869,012 | ) |
| | | | | | | | |
| | |
Fund share transactions | | | | | | | | |
Net proceeds from shares sold | | | 1,215,835 | | | | 3,217,983 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 787,340 | | | | 1,869,012 | |
Cost of shares reacquired | | | (896,557 | ) | | | (775,578 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 1,106,618 | | | | 4,311,417 | |
| | | | | | | | |
Total increase (decrease) | | | 2,947,943 | | | | (1,325,310 | ) |
| | |
Net Assets: | | | | | | | | |
Beginning of period | | | 27,144,576 | | | | 28,469,886 | |
| | | | | | | | |
End of period | | $ | 30,092,519 | | | $ | 27,144,576 | |
| | | | | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 21 | |
Notes to Financial Statements(unaudited)
Prudential Investment Portfolios 2 (“PIP2”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as anopen-end management investment company. PIP2 consists of eleven separate series: PGIM Core Conservative Bond Fund, PGIM Core Short-Term Bond Fund, PGIM Core Ultra Short Bond Fund, PGIM Institutional Money Market Fund, PGIM JennisonSmall-Cap Core Equity Fund, PGIM QMA Emerging Markets Equity Fund, PGIM QMA International Developed Markets Index Fund, PGIM QMAMid-Cap Core Equity Fund, PGIM QMA US Broad Market Index Fund and PGIM TIPS Fund, each of which are diversified funds and PGIM QMA Commodity Strategies Fund, which is anon-diversified fund for purposes of the 1940 Act and may invest a greater percentage of their assets in the securities of a single company or other issuer than a diversified fund. Investing in anon-diversified fund involves greater risk than investing in a diversified fund because a loss resulting from the decline in value of any one security may represent a greater portion of the total assets of anon-diversified fund. These financial statements relate only to the PGIM QMA Emerging Markets Equity Fund (the “Fund”).
The investment objective of the Fund is to seek to provide returns in excess of the Morgan Stanley Capital International Emerging Markets Index over full market cycles.
1. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services—Investment Companies.The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of their financial statements.
Securities Valuation:The Fund holds securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. PIP2’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
For the fiscal reportingperiod-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820—Fair Value Measurements and Disclosures.
Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures or options, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Fund is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments inopen-end,non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 23 | |
Notes to Financial Statements(unaudited) (continued)
general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation:The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
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 securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements:The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a Subadviser may have negotiated and entered into on behalf of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of
collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right toset-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 toset-off the amount owed with the amount owed by the other party, the reporting party intends toset-off and the right ofset-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
Rights:The Fund holds rights acquired either through a direct purchase or pursuant to corporate actions. Rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. Such rights are held as long positions by the Fund until exercised, sold or expired. Rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Securities Lending:The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed on the Statement of Operations as “Income from securities lending, net”.
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 theex-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.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 25 | |
Notes to Financial Statements(unaudited) (continued)
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:The Fund expects to pay dividends from net investment income and distributions from net realized capital gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on theex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) andpaid-in capital in excess of par, as appropriate.
Estimates:The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
PIP2, on behalf of the Fund, has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. In addition, under the management agreement, PGIM Investments provides all of the administrative functions necessary for the organization, operation and management of the Fund. PGIM Investments administers the corporate affairs of the Fund and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund’s custodian and the Fund’s transfer agent. PGIM Investments is also responsible for the staffing and management of dedicated groups of legal, marketing, compliance and related personnel necessary for the operation of the Fund. The legal, marketing, compliance and related personnel are also responsible for the management and oversight of the various service providers to the Fund, including, but not limited to, the custodian, transfer agent, and accounting agent.
PGIM Investments has entered into a subadvisory agreement with QMA LLC (“QMA”) (formerly known as Quantitative Management Associates LLC). The subadvisory agreement provides that QMA will furnish investment advisory services in connection with the management of the Fund. In connection therewith, QMA is obligated to keep certain books and records of the Fund. PGIM Investments pays for the services of QMA, the cost of
compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.75% of the Fund’s average daily net assets.
The Manager has contractually agreed, through February 29, 2020, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.20% of average daily net assets for Class R6 shares. 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. Fees and/or expenses waived and/or reimbursed by PGIM Investments may be recouped by PGIM Investments within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
PIP2, 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 QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certainout-of-pocket expenses paid tonon-affiliates, where applicable.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule17a-7 procedures. Rule17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Pursuant to the Rule17a-7 procedures and consistent with guidance issued by the SEC, the Trust’s Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such17a-7 transactions were effected in accordance with the Fund’s Rule17a-7 procedures. Any17a-7 transactions for the reporting period are disclosed in the “Portfolio Securities” note, below.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 27 | |
Notes to Financial Statements(unaudited) (continued)
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of PIP2, registered under the 1940 Act and managed by PGIM Investments. Through the Fund’s investments in the mentioned underlying funds, PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services. Earnings from the Core Fund and Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2019, were $18,319,024 and $17,865,972, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated investments for the reporting period ended April 30, 2019, 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 | |
| | PGIM Core Ultra Short Bond Fund* | | | | | | | | | | | | | | | | | | | | | |
| $ | 69,757 | | | $ | 5,137,166 | | | $ | 4,549,492 | | | $ | — | | | $ | — | | | $ | 657,431 | | | | 657,431 | | | $ | 1,024 | |
| | PGIM Institutional Money Market Fund* | | | | | | | | | | | | | | | | | | | | | |
| | 69,541 | | | | 6,111,067 | | | | 5,595,574 | | | | 152 | | | | 325 | | | | 585,511 | | | | 585,336 | | | | 1,241 | ** |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 139,298 | | | $ | 11,248,233 | | | $ | 10,145,066 | | | $ | 152 | | | $ | 325 | | | $ | 1,242,942 | | | | | | | $ | 2,265 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| * | The Fund did not have any capital gain distributions during the reporting period. |
| ** | This amount is included in “Income from securities lending, net” on the Statement of Operations. |
For the reporting period ended April 30, 2019, no17a-7 transactions were entered into by the Fund.
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2019 were as follows:
| | | | |
Tax Basis | | $ | 27,701,107 | |
| | | | |
Gross Unrealized Appreciation | | | 4,516,393 | |
Gross Unrealized Depreciation | | | (934,793 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 3,581,600 | |
| | | | |
The book basis may differ from tax basis due to certaintax-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. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
6. Capital and Ownership
The Fund offers Class R6 shares. Class R6 shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.
PIP2 has authorized the Fund to issue an unlimited number of shares of beneficial interest of the Fund at $0.001 par value per share.
As of April 30, 2019, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned 2,604,998 Class R6 shares of the Fund. At reporting period end, one shareholder of record held 85% of the Fund’s outstanding shares, of which all were held by an affiliate of Prudential.
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
Class R6 | | Shares | | | Amount | |
Six months ended April 30, 2019: | | | | | | | | |
Shares sold | | | 109,350 | | | $ | 1,215,835 | |
Shares issued in reinvestment of dividends and distributions | | | 74,137 | | | | 787,340 | |
Shares reacquired | | | (82,672 | ) | | | (896,557 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 100,815 | | | $ | 1,106,618 | |
| | | | | | | | |
Year ended October 31, 2018: | | | | | | | | |
Shares sold | | | 260,427 | | | $ | 3,217,983 | |
Shares issued in reinvestment of dividends and distributions | | | 149,044 | | | | 1,869,012 | |
Shares reacquired | | | (61,115 | ) | | | (775,578 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 348,356 | | | $ | 4,311,417 | |
| | | | | | | | |
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 29 | |
Notes to Financial Statements(unaudited) (continued)
7. Borrowings
PIP2, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 4, 2018 through October 3, 2019. The Funds pay an annualized commitment fee of 0.15% of the unused portion of the SCA. Each Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under the SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the1-month LIBOR rate 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 Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended April 30, 2019. The average daily balance for the 15 days that the Fund had loans outstanding during the period was approximately $111,467, borrowed at a weighted average interest rate of 3.65%. The maximum loan outstanding amount during the period was $112,000. At April 30, 2019, the Fund did not have an outstanding loan amount.
8. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below:
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.
Equity and Equity-Related Securities Risks:The value of a particular security could go down and you could lose money. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. The Fund’s holdings
can vary significantly from broad market indexes and the performance of the Fund can deviate from the performance of these indexes. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Geographic Concentration Risk:The Fund’s performance may be closely tied to the market, economic, political, regulatory or other conditions in the countries or regions in which the Fund invests. This can result in more pronounced risks based upon conditions that impact one or more countries or regions more or less than other countries or regions.
Market and Credit Risk:Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of an investment in the Fund will decline. Additionally, the Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the FASB issued Accounting Standards Update (“ASU”)No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Fund’s policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has determined to early adopt aspects related to the removal and modification of certain fair value measurement disclosures under the ASU effective immediately. At this time, the Manager is evaluating the implications of certain other provisions of the ASU related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 31 | |
Financial Highlights(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | |
| | | Six Months
Ended
April 30,
2019 | | | | | | Year Ended October 31,
2018 | | | | | | November 29,
2016(a)
through
October 31,
2017 | |
| Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $10.84 | | | | | | | | $13.21 | | | | | | | | $10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.03 | | | | | | | | 0.20 | | | | | | | | 0.16 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 1.00 | | | | | | | | (1.71 | ) | | | | | | | 3.09 | |
| Total from investment operations | | | 1.03 | | | | | | | | (1.51 | ) | | | | | | | 3.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.21 | ) | | | | | | | (0.17 | ) | | | | | | | (0.04 | ) |
| Distributions fron net realized gains | | | (0.11 | ) | | | | | | | (0.69 | ) | | | | | | | - | |
| Total dividends and distributions | | | (0.32 | ) | | | | | | | (0.86 | ) | | | | | | | (0.04 | ) |
| Net asset value, end of period | | | $11.55 | | | | | | | | $10.84 | | | | | | | | $13.21 | |
| Total Return(c): | | | 9.72% | | | | | | | | (12.31)% | | | | | | | | 32.58% | |
| |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | |
| Net assets, end of period (000) | | | $30,093 | | | | | | | | $27,145 | | | | | | | | $28,470 | |
| Average net assets (000) | | | $28,350 | | | | | | | | $29,759 | | | | | | | | $24,017 | |
| Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 1.20% | (e) | | | | | | | 1.20% | | | | | | | | 1.20% | (e) |
| Expenses before waivers and/or expense reimbursement | | | 1.55% | (e) | | | | | | | 1.54% | | | | | | | | 1.74% | (e) |
| Net investment income (loss) | | | 0.52% | (e) | | | | | | | 1.56% | | | | | | | | 1.49% | (e) |
| Portfolio turnover rate(f) | | | 63% | | | | | | | | 118% | | | | | | | | 102% | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
| | | | |
| | |
| ∎ MAIL | | ∎ TELEPHONE | | ∎ WEBSITE |
655 Broad Street Newark, NJ 07102 | | (800) 225-1852 | | pgiminvestments.com |
|
| 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. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 will be available on the Fund’s website and on the Securities and Exchange Commission’s website at the end of August. |
|
TRUSTEES |
| Ellen S. Alberding• Kevin J. Bannon• Scott E. Benjamin• Linda W. Bynoe• Barry H. Evans• Keith F. Hartstein • Laurie Simon Hodrick• Michael S. Hyland• Stuart S. Parker• Brian K. Reid• Grace C. Torres |
|
| OFFICERS |
| Stuart S. Parker,President• Scott E. Benjamin,Vice President• Christian J. Kelly,Treasurer and Principal Financial and Accounting Officer• Raymond A. O’Hara,Chief Legal Officer• Chad A. Earnst,Chief Compliance Officer• Dino Capasso,Deputy Chief Compliance Officer• Andrew R. French,Secretary• Jonathan D. Shain,Assistant Secretary• Claudia DiGiacomo,Assistant Secretary• Diana N. Huffman,Assistant Secretary• Peter Parrella,Assistant Treasurer• Lana Lomuti, Assistant Treasurer• Linda McMullin,Assistant Treasurer• Kelly A. Coyne,Assistant Treasurer• Charles H. Smith,Anti-Money Laundering Compliance Officer |
| | | | |
| MANAGER | | PGIM Investments LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| SUBADVISER | | QMA LLC | | Gateway Center Two
100 Mulberry Street
Newark, NJ 07102 |
|
| DISTRIBUTOR | | Prudential Investment
Management Services LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street New York, NY 10286 |
|
| TRANSFER AGENT | | Prudential Mutual Fund
Services LLC | | PO Box 9658
Providence, RI 02940 |
|
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | KPMG LLP | | 345 Park Avenue New York, NY 10154 |
|
| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue
New York, NY 10019 |
|
|
| An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. An investor may obtain the prospectus by visiting our website atpgiminvestments.com or by calling(800) 225-1852. The prospectus should be read carefully before investing. |
|
| SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
| Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM QMA Emerging Markets Equity Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
|
| AVAILABILITY OF PORTFOLIO SCHEDULE |
| The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-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 each 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. |
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 QMA EMERGING MARKETS EQUITY FUND
| | |
| NASDAQ | | PQEMX |
| CUSIP | | 74440E706 |
PGIM QMA INTERNATIONAL DEVELOPED MARKETS INDEX FUND
SEMIANNUAL REPORT
APRIL 30, 2019
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an email request to PGIM Investments at shareholderreports@pgim.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to shareholderreports@pgim.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
|
Objective:To provide investment results that approximate the performance of
the FTSE Developed Markets Ex-North America Net Index |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2019 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company.© 2019 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 pgiminvestments.com |
Your Fund’s Performance(unaudited)
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
| | | | | | |
| | |
| | | Total Returns as of 4/30/19 | | Average Annual Total Returns as of 4/30/19 |
| | | Six Months* (%) | | One Year (%) | | Since Inception (%) |
| Fund | | 7.17 | | –3.38 | | 9.50 (11/17/16) |
| FTSE Developed Markets Ex-North America Net Index** | | | | |
| | 7.22 | | –4.40 | | 9.99 |
| Lipper International Large-Cap Core Funds Average*** | | | | |
| | 7.73 | | –4.11 | | 8.87 |
| Lipper International Multi-Cap Core Funds Average*** | | | | |
| | | 7.04 | | –4.40 | | 8.81 |
Source: PGIM Investments LLC and Lipper Inc.
*Not annualized
**Effective as of December 31, 2018, the Russell Developed ex-North America Large Cap Net Index was decommissioned by Russell. The Fund now compares its performance to the FTSE Developed Markets ex-North America Net Index.
***The Fund is compared to the Lipper International Large-Cap Core performance universe, although Lipper classifies the Fund in the Lipper International Multi-Cap Core Funds performance universe. The Lipper International Large-Cap Core performance universe is utilized because the Fund’s manager believes that the funds included in this universe provide a more appropriate basis for Fund performance comparisons.
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. Since Inception returns for the Index and the Lipper Averages are measured from the closest month-end to the Fund’s inception date.
Benchmark Definitions
FTSE Developed Markets Ex-North America Net Index—The FTSE Developed All Cap ex-North America Index is a part of a range of indexes designed to help investors benchmark their international Investments. The index comprises large and mid cap stocks providing coverage of developed markets, excluding the US and Canada. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.
Lipper International Large-Cap Core Funds Average—The Lipper International Large-Cap Core Funds Average are funds that, by portfolio practice, invest at least 75% of their equity assets in companies strictly outside of the US with market capitalizations (on a three-year weighted basis) above Lipper’s international large-cap floor. International large-cap core funds typically have average characteristics compared to their large-cap-specific subset of the MSCI EAFE Index.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 3 | |
Your Fund’s Performance(continued)
Lipper International Multi-Cap Core Funds Average—The Lipper International Multi-Cap Core Funds Average are funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. International multi-cap core funds typically have average characteristics compared to the MSCI EAFE Index.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Averages reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
Presentation of Fund Holdings
| | | | |
|
Five Largest Holdings expressed as a
percentage of net assets as of 04/30/19 (%) | |
| iShares MSCI EAFE ETF,Exchange-Traded Funds | | | 3.1 | |
| Nestle SA,Food Products | | | 1.7 | |
| Samsung Electronics Co. Ltd.,Technology Hardware, Storage & Peripherals | | | 1.1 | |
| Roche Holding AG,Pharmaceuticals | | | 1.1 | |
| Novartis AG,Pharmaceuticals | | | 1.1 | |
Holdings reflect only long-term investments and are subject to change.
| | | | |
|
Five Largest Industries expressed as a
percentage of net assets as of 04/30/19 (%) | |
| Banks | | | 9.6 | |
| Pharmaceuticals | | | 6.6 | |
| Insurance | | | 5.1 | |
| Oil, Gas & Consumable Fuels | | | 5.0 | |
| Food Products | | | 3.3 | |
Industry weightings reflect only long-term investments and are subject to change.
| | |
| 4 | | Visit our website at pgiminvestments.com |
Fees and Expenses(unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2019. 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 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.
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 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 QMA International Developed Markets Index Fund | | | 5 | |
Fees and Expenses(continued)
| | | | | | | | | | | | | | | | |
| | | | |
PGIM QMA
International
Developed Markets
Index Fund | | Beginning Account
Value
November 1, 2018 | | | Ending Account
Value
April 30, 2019 | | | Annualized
Expense Ratio
Based on the
Six-Month Period | | | Expenses Paid
During the
Six-Month Period* | |
| Actual | | $ | 1,000.00 | | | $ | 1,071.70 | | | | 0.30 | % | | $ | 1.54 | |
| Hypothetical | | $ | 1,000.00 | | | $ | 1,023.31 | | | | 0.30 | % | | $ | 1.51 | |
*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 181 days in the six-month period ended April 30, 2019, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2019 (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 pgiminvestments.com |
Schedule of Investments(unaudited)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
LONG-TERM INVESTMENTS 95.3% | |
|
COMMON STOCKS 91.5% | |
|
Australia 6.7% | |
Adelaide Brighton Ltd. | | | 1,140 | | | $ | 3,473 | |
AGL Energy Ltd. | | | 1,873 | | | | 29,347 | |
ALS Ltd. | | | 1,304 | | | | 7,292 | |
Alumina Ltd. | | | 7,414 | | | | 11,721 | |
Amcor Ltd. | | | 3,263 | | | | 36,867 | |
AMP Ltd. | | | 8,001 | | | | 12,800 | |
Ansell Ltd. | | | 426 | | | | 8,097 | |
APA Group | | | 3,245 | | | | 21,983 | |
Aristocrat Leisure Ltd. | | | 1,790 | | | | 32,825 | |
ASX Ltd. | | | 540 | | | | 28,328 | |
Atlas Arteria Ltd. | | | 1,802 | | | | 8,899 | |
Aurizon Holdings Ltd. | | | 5,235 | | | | 17,577 | |
AusNet Services | | | 4,484 | | | | 5,607 | |
Australia & New Zealand Banking Group Ltd. | | | 7,973 | | | | 152,708 | |
Bank of Queensland Ltd. | | | 1,028 | | | | 6,716 | |
Bendigo & Adelaide Bank Ltd. | | | 1,410 | | | | 10,244 | |
BHP Group Ltd. | | | 8,503 | | | | 224,233 | |
BHP Group PLC | | | 5,807 | | | | 137,024 | |
BlueScope Steel Ltd. | | | 1,487 | | | | 14,099 | |
Boral Ltd. | | | 3,203 | | | | 10,924 | |
Brambles Ltd. | | | 4,466 | | | | 37,966 | |
Caltex Australia Ltd. | | | 731 | | | | 14,032 | |
Challenger Ltd. | | | 1,601 | | | | 9,266 | |
CIMIC Group Ltd. | | | 279 | | | | 9,954 | |
Coca-Cola Amatil Ltd. | | | 1,502 | | | | 9,318 | |
Cochlear Ltd. | | | 153 | | | | 20,237 | |
Coles Group Ltd.* | | | 3,126 | | | | 27,565 | |
Commonwealth Bank of Australia | | | 4,931 | | | | 259,145 | |
Computershare Ltd. | | | 1,330 | | | | 16,651 | |
Crown Resorts Ltd. | | | 1,096 | | | | 10,265 | |
CSL Ltd. | | | 1,261 | | | | 176,399 | |
CSR Ltd. | | | 1,412 | | | | 3,537 | |
Dexus, REIT | | | 2,854 | | | | 25,206 | |
Domain Holdings Australia Ltd. | | | 294 | | | | 559 | |
Domino’s Pizza Enterprises Ltd. | | | 157 | | | | 4,747 | |
Downer EDI Ltd. | | | 1,578 | | | | 8,598 | |
DuluxGroup Ltd. | | | 1,036 | | | | 7,126 | |
Evolution Mining Ltd. | | | 2,789 | | | | 6,297 | |
Flight Centre Travel Group Ltd. | | | 142 | | | | 3,841 | |
Fortescue Metals Group Ltd. | | | 4,672 | | | | 23,630 | |
Goodman Group, REIT | | | 4,918 | | | | 45,711 | |
GPT Group (The), REIT | | | 4,918 | | | | 19,867 | |
Harvey Norman Holdings Ltd. | | | 1,363 | | | | 4,012 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 7 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | |
|
Australia (cont’d.) | |
Healthscope Ltd. | | | 5,208 | | | $ | 8,976 | |
Iluka Resources Ltd. | | | 1,089 | | | | 6,626 | |
Incitec Pivot Ltd. | | | 4,968 | | | | 11,764 | |
Insurance Australia Group Ltd. | | | 6,637 | | | | 36,777 | |
IOOF Holdings Ltd. | | | 952 | | | | 4,356 | |
Lendlease Group | | | 1,631 | | | | 15,269 | |
Macquarie Group Ltd. | | | 882 | | | | 83,525 | |
Magellan Financial Group Ltd. | | | 344 | | | | 10,800 | |
Medibank Private Ltd. | | | 7,734 | | | | 15,548 | |
Metcash Ltd. | | | 2,437 | | | | 4,903 | |
Mirvac Group, REIT | | | 10,637 | | | | 21,267 | |
National Australia Bank Ltd. | | | 7,777 | | | | 138,876 | |
Newcrest Mining Ltd. | | | 2,167 | | | | 38,325 | |
Northern Star Resources Ltd. | | | 1,697 | | | | 9,826 | |
Nufarm Ltd. | | | 807 | | | | 2,881 | |
Oil Search Ltd. | | | 3,716 | | | | 20,341 | |
Orica Ltd. | | | 1,102 | | | | 14,453 | |
Origin Energy Ltd. | | | 5,025 | | | | 25,984 | |
Orora Ltd. | | | 3,207 | | | | 6,842 | |
OZ Minerals Ltd. | | | 841 | | | | 5,887 | |
Perpetual Ltd. | | | 120 | | | | 3,451 | |
Platinum Asset Management Ltd. | | | 508 | | | | 1,782 | |
Qantas Airways Ltd. | | | 1,932 | | | | 7,644 | |
QBE Insurance Group Ltd. | | | 3,818 | | | | 34,898 | |
Qube Holdings Ltd. | | | 3,391 | | | | 6,763 | |
Ramsay Health Care Ltd. | | | 371 | | | | 17,086 | |
REA Group Ltd. | | | 137 | | | | 7,714 | |
Rio Tinto Ltd. | | | 1,088 | | | | 73,094 | |
Rio Tinto PLC | | | 3,094 | | | | 180,817 | |
Santos Ltd. | | | 4,909 | | | | 24,820 | |
Scentre Group, REIT | | | 14,178 | | | | 38,198 | |
SEEK Ltd. | | | 1,017 | | | | 13,012 | |
Seven Group Holdings Ltd. | | | 355 | | | | 4,893 | |
Shopping Centres Australasia Property Group, REIT | | | 2,347 | | | | 4,235 | |
Sonic Healthcare Ltd. | | | 1,261 | | | | 22,841 | |
South32 Ltd. | | | 14,615 | | | | 34,437 | |
Star Entertainment Group Ltd. (The) | | | 2,231 | | | | 7,131 | |
Stockland, REIT | | | 6,926 | | | | 18,443 | |
Suncorp Group Ltd. | | | 3,618 | | | | 33,834 | |
Sydney Airport | | | 3,210 | | | | 17,242 | |
Tabcorp Holdings Ltd. | | | 5,258 | | | | 17,738 | |
Telstra Corp. Ltd. | | | 11,805 | | | | 28,122 | |
TPG Telecom Ltd. | | | 1,090 | | | | 5,158 | |
Transurban Group | | | 7,422 | | | | 70,388 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Australia (cont’d.) | |
Treasury Wine Estates Ltd. | | | 1,989 | | | $ | 24,149 | |
Vicinity Centres, REIT | | | 8,827 | | | | 15,832 | |
Vocus Group Ltd.* | | | 1,928 | | | | 5,289 | |
Washington H Soul Pattinson & Co. Ltd. | | | 249 | | | | 4,039 | |
Wesfarmers Ltd. | | | 3,175 | | | | 80,635 | |
Westpac Banking Corp. | | | 9,589 | | | | 185,943 | |
Whitehaven Coal Ltd. | | | 2,201 | | | | 6,510 | |
WiseTech Global Ltd. | | | 215 | | | | 3,391 | |
Woodside Petroleum Ltd. | | | 2,603 | | | | 64,974 | |
Woolworths Group Ltd. | | | 3,655 | | | | 82,092 | |
WorleyParsons Ltd. | | | 903 | | | | 9,085 | |
| | | | | | | | |
| | | | | | | 3,163,599 | |
|
Austria 0.2% | |
ANDRITZ AG | | | 198 | | | | 9,457 | |
Erste Group Bank AG | | | 805 | | | | 32,273 | |
OMV AG | | | 397 | | | | 21,266 | |
Raiffeisen Bank International AG | | | 391 | | | | 10,448 | |
Telekom Austria AG* | | | 312 | | | | 2,340 | |
Verbund AG | | | 179 | | | | 8,857 | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | | 98 | | | | 2,731 | |
voestalpine AG | | | 337 | | | | 10,879 | |
| | | | | | | | |
| | | | | | | 98,251 | |
|
Belgium 0.9% | |
Ackermans & van Haaren NV | | | 67 | | | | 10,793 | |
Ageas | | | 544 | | | | 28,741 | |
Anheuser-Busch InBev SA/NV | | | 2,147 | | | | 191,914 | |
Colruyt SA | | | 152 | | | | 10,944 | |
Galapagos NV* | | | 129 | | | | 14,844 | |
Groupe Bruxelles Lambert SA | | | 199 | | | | 19,050 | |
KBC Group NV | | | 777 | | | | 57,726 | |
Proximus SADP | | | 420 | | | | 11,777 | |
Sofina SA | | | 44 | | | | 9,065 | |
Solvay SA | | | 188 | | | | 22,683 | |
Telenet Group Holding NV | | | 130 | | | | 6,904 | |
UCB SA | | | 332 | | | | 26,359 | |
Umicore SA | | | 566 | | | | 21,987 | |
| | | | | | | | |
| | | | | | | 432,787 | |
|
Cambodia 0.0% | |
NagaCorp Ltd. | | | 4,000 | | | | 5,135 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 9 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Chile 0.0% | |
Antofagasta PLC | | | 1,053 | | | $ | 12,539 | |
|
China 0.4% | |
AAC Technologies Holdings, Inc. | | | 2,200 | | | | 14,262 | |
BOC Hong Kong Holdings Ltd. | | | 9,900 | | | | 44,317 | |
China Mengniu Dairy Co. Ltd.* | | | 7,600 | | | | 28,202 | |
China Travel International Investment Hong Kong Ltd. | | | 4,000 | | | | 922 | |
FIH Mobile Ltd.* | | | 6,000 | | | | 897 | |
Guotai Junan International Holdings Ltd. | | | 6,000 | | | | 1,211 | |
Kerry Logistics Network Ltd. | | | 1,600 | | | | 2,852 | |
Lenovo Group Ltd. | | | 22,000 | | | | 20,408 | |
Minth Group Ltd. | | | 1,300 | | | | 4,131 | |
MMG Ltd.* | | | 6,000 | | | | 2,596 | |
Nexteer Automotive Group Ltd. | | | 2,000 | | | | 3,145 | |
Semiconductor Manufacturing International Corp.* | | | 8,600 | | | | 9,226 | |
Shougang Fushan Resources Group Ltd. | | | 8,000 | | | | 1,939 | |
Shui On Land Ltd. | | | 8,000 | | | | 1,951 | |
Tingyi Cayman Islands Holding Corp. | | | 6,400 | | | | 10,544 | |
Towngas China Co. Ltd.* | | | 2,000 | | | | 1,592 | |
Uni-President China Holdings Ltd. | | | 2,600 | | | | 2,384 | |
Want Want China Holdings Ltd. | | | 15,000 | | | | 11,939 | |
Xinyi Solar Holdings Ltd. | | | 8,000 | | | | 4,572 | |
| | | | | | | | |
| | | | | | | 167,090 | |
|
Denmark 1.5% | |
Ambu A/S (Class B Stock) | | | 433 | | | | 12,469 | |
AP Moller - Maersk A/S (Class A Stock) | | | 12 | | | | 14,681 | |
AP Moller - Maersk A/S (Class B Stock) | | | 18 | | | | 23,521 | |
Carlsberg A/S (Class B Stock) | | | 303 | | | | 39,225 | |
Chr Hansen Holding A/S | | | 278 | | | | 28,478 | |
Coloplast A/S (Class B Stock) | | | 368 | | | | 39,793 | |
Danske Bank A/S | | | 1,893 | | | | 33,661 | |
Demant A/S* | | | 309 | | | | 9,782 | |
Drilling Co. of 1972 (The)* | | | 60 | | | | 4,606 | |
DSV A/S | | | 506 | | | | 46,897 | |
Genmab A/S* | | | 155 | | | | 25,798 | |
GN Store Nord A/S | | | 374 | | | | 19,213 | |
H. Lundbeck A/S | | | 170 | | | | 7,169 | |
ISS A/S | | | 527 | | | | 16,448 | |
Jyske Bank A/S | | | 196 | | | | 7,912 | |
Novo Nordisk A/S (Class B Stock) | | | 4,756 | | | | 233,112 | |
Novozymes A/S (Class B Stock) | | | 588 | | | | 27,488 | |
Orsted A/S, 144A | | | 428 | | | | 32,868 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Denmark (cont’d.) | |
Pandora A/S | | | 284 | | | $ | 11,919 | |
Rockwool International A/S (Class B Stock) | | | 17 | | | | 4,554 | |
Tryg A/S | | | 317 | | | | 9,694 | |
Vestas Wind Systems A/S | | | 552 | | | | 50,033 | |
| | | | | | | | |
| | | | | | | 699,321 | |
|
Finland 1.1% | |
Elisa OYJ | | | 392 | | | | 16,642 | |
Fortum OYJ | | | 1,191 | | | | 25,204 | |
Huhtamaki OYJ | | | 241 | | | | 9,211 | |
Kesko OYJ (Class B Stock) | | | 196 | | | | 10,177 | |
Kone OYJ (Class B Stock) | | | 1,108 | | | | 60,880 | |
Metso OYJ | | | 279 | | | | 10,420 | |
Neste OYJ | | | 1,140 | | | | 37,695 | |
Nokia OYJ | | | 15,808 | | | | 83,155 | |
Nokian Renkaat OYJ | | | 397 | | | | 13,301 | |
Nordea Bank Abp | | | 8,794 | | | | 71,334 | |
Orion OYJ (Class B Stock) | | | 304 | | | | 10,121 | |
Sampo OYJ (Class A Stock) | | | 1,367 | | | | 62,686 | |
Stora Enso OYJ (Class R Stock) | | | 1,639 | | | | 20,420 | |
UPM-Kymmene OYJ | | | 1,512 | | | | 42,745 | |
Wartsila OYJ Abp | | | 1,272 | | | | 20,382 | |
| | | | | | | | |
| | | | | | | 494,373 | |
|
France 9.2% | |
Accor SA | | | 558 | | | | 23,556 | |
Adevinta ASA (Class A Stock)* | | | 214 | | | | 2,131 | |
Adevinta ASA (Class B Stock)* | | | 394 | | | | 3,876 | |
Aeroports de Paris | | | 81 | | | | 16,557 | |
AirFrance-KLM* | | | 651 | | | | 7,542 | |
Air Liquide SA | | | 1,172 | | | | 156,178 | |
Airbus SE | | | 1,534 | | | | 210,758 | |
ALD SA, 144A | | | 178 | | | | 2,621 | |
Alstom SA | | | 420 | | | | 18,516 | |
Amundi SA, 144A | | | 172 | | | | 12,389 | |
Arkema SA | | | 202 | | | | 20,781 | |
Atos SE | | | 259 | | | | 26,738 | |
AXA SA | | | 5,367 | | | | 143,213 | |
BioMerieux | | | 124 | | | | 9,858 | |
BNP Paribas SA | | | 3,045 | | | | 162,580 | |
Bollore SA | | | 2,803 | | | | 13,316 | |
Bouygues SA | | | 572 | | | | 21,598 | |
Bureau Veritas SA | | | 754 | | | | 19,161 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 11 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
France (cont’d.) | |
Capgemini SE | | | 431 | | | $ | 52,349 | |
Carrefour SA | | | 1,570 | | | | 30,695 | |
Casino Guichard Perrachon SA | | | 168 | | | | 6,888 | |
Cie de Saint-Gobain | | | 1,366 | | | | 56,109 | |
Cie Generale des Etablissements Michelin SCA | | | 488 | | | | 63,324 | |
Cie Plastic Omnium SA | | | 132 | | | | 4,005 | |
CNP Assurances | | | 467 | | | | 11,023 | |
Covivio, REIT | | | 122 | | | | 13,217 | |
Credit Agricole SA | | | 3,222 | | | | 44,311 | |
Danone SA | | | 1,670 | | | | 135,169 | |
Dassault Aviation SA | | | 6 | | | | 9,105 | |
Dassault Systemes SE | | | 374 | | | | 59,433 | |
Edenred | | | 658 | | | | 31,090 | |
Eiffage SA | | | 204 | | | | 21,341 | |
Electricite de France SA | | | 1,384 | | | | 19,951 | |
Elis SA | | | 503 | | | | 8,986 | |
Engie SA | | | 4,567 | | | | 67,857 | |
EssilorLuxottica SA | | | 810 | | | | 98,767 | |
Eurazeo SE | | | 135 | | | | 10,608 | |
Eutelsat Communications SA | | | 508 | | | | 9,186 | |
Faurecia SA | | | 215 | | | | 10,973 | |
Gecina SA, REIT | | | 147 | | | | 21,991 | |
Getlink SE | | | 1,237 | | | | 19,930 | |
Hermes International | | | 86 | | | | 60,703 | |
ICADE, REIT | | | 101 | | | | 8,654 | |
Iliad SA | | | 67 | | | | 6,838 | |
Imerys SA | | | 100 | | | | 5,352 | |
Ingenico Group SA | | | 184 | | | | 15,526 | |
Ipsen SA | | | 96 | | | | 11,229 | |
JCDecaux SA | | | 189 | | | | 6,207 | |
Kering SA | | | 207 | | | | 122,980 | |
Klepierre SA, REIT | | | 544 | | | | 19,363 | |
Lagardere SCA | | | 306 | | | | 8,350 | |
Legrand SA | | | 755 | | | | 55,617 | |
L’Oreal SA | | | 673 | | | | 185,333 | |
LVMH Moet Hennessy Louis Vuitton SE | | | 695 | | | | 273,675 | |
Natixis SA | | | 2,432 | | | | 14,355 | |
Orange SA | | | 5,335 | | | | 83,666 | |
Orpea | | | 129 | | | | 15,755 | |
Pernod Ricard SA | | | 592 | | | | 103,314 | |
Peugeot SA | | | 1,524 | | | | 40,101 | |
Publicis Groupe SA | | | 597 | | | | 35,525 | |
Remy Cointreau SA | | | 67 | | | | 8,934 | |
Renault SA | | | 522 | | | | 35,729 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
France (cont’d.) | |
Rexel SA | | | 789 | | | $ | 10,616 | |
Rubis SCA | | | 252 | | | | 13,802 | |
Safran SA | | | 905 | | | | 132,228 | |
Sanofi | | | 3,036 | | | | 264,470 | |
Sartorius Stedim Biotech | | | 64 | | | | 8,709 | |
Schneider Electric SE | | | 1,431 | | | | 121,478 | |
SCOR SE | | | 440 | | | | 17,921 | |
SEB SA | | | 75 | | | | 13,761 | |
Societe BIC SA | | | 76 | | | | 6,557 | |
Societe Generale SA | | | 2,032 | | | | 64,537 | |
Sodexo SA | | | 245 | | | | 28,137 | |
Suez | | | 1,057 | | | | 14,843 | |
Teleperformance | | | 158 | | | | 30,437 | |
Thales SA | | | 285 | | | | 34,126 | |
TOTAL SA | | | 7,003 | | | | 390,658 | |
Ubisoft Entertainment SA* | | | 248 | | | | 23,727 | |
Unibail-Rodamco-Westfield, REIT | | | 377 | | | | 64,841 | |
Valeo SA | | | 664 | | | | 24,173 | |
Veolia Environnement SA | | | 1,381 | | | | 32,739 | |
Vinci SA | | | 1,298 | | | | 131,441 | |
Vivendi SA | | | 2,672 | | | | 77,708 | |
Wendel SA | | | 74 | | | | 10,258 | |
Worldline SA/France, 144A* | | | 104 | | | | 6,560 | |
| | | | | | | | |
| | | | | | | 4,318,610 | |
|
Germany 7.2% | |
1&1 Drillisch AG | | | 128 | | | | 4,788 | |
adidas AG | | | 529 | | | | 136,470 | |
Allianz SE | | | 1,182 | | | | 285,666 | |
Aroundtown SA | | | 1,870 | | | | 15,197 | |
Axel Springer SE | | | 116 | | | | 6,586 | |
BASF SE | | | 2,555 | | | | 209,267 | |
Bayer AG | | | 2,611 | | | | 174,241 | |
Bayerische Motoren Werke AG | | | 895 | | | | 76,464 | |
Beiersdorf AG | | | 282 | | | | 30,836 | |
Brenntag AG | | | 418 | | | | 22,596 | |
Carl Zeiss Meditec AG | | | 107 | | | | 10,543 | |
Commerzbank AG* | | | 2,862 | | | | 25,844 | |
Continental AG | | | 303 | | | | 50,119 | |
Covestro AG, 144A | | | 492 | | | | 26,994 | |
Daimler AG | | | 2,416 | | | | 158,721 | |
Delivery Hero SE, 144A* | | | 314 | | | | 14,514 | |
Deutsche Bank AG | | | 5,728 | | | | 47,481 | |
Deutsche Boerse AG | | | 504 | | | | 67,354 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 13 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Germany (cont’d.) | |
Deutsche Lufthansa AG | | | 682 | | | $ | 16,525 | |
Deutsche Post AG | | | 2,702 | | | | 93,959 | |
Deutsche Telekom AG | | | 8,997 | | | | 150,887 | |
Deutsche Wohnen SE | | | 999 | | | | 44,994 | |
DWS Group GmbH & Co. KGaA, 144A* | | | 97 | | | | 3,572 | |
E.ON SE | | | 6,160 | | | | 66,201 | |
Evonik Industries AG | | | 481 | | | | 14,393 | |
Fielmann AG | | | 77 | | | | 5,481 | |
Fraport AG Frankfurt Airport Services Worldwide | | | 93 | | | | 7,735 | |
Fresenius Medical Care AG & Co. KGaA | | | 596 | | | | 50,214 | |
Fresenius SE & Co. KGaA | | | 1,129 | | | | 64,221 | |
FUCHS PETROLUB SE | | | 95 | | | | 3,799 | |
GEA Group AG | | | 484 | | | | 13,564 | |
GRENKE AG | | | 66 | | | | 7,037 | |
Hannover Rueck SE | | | 174 | | | | 26,292 | |
Hapag-Lloyd AG, 144A | | | 78 | | | | 2,409 | |
HeidelbergCement AG | | | 410 | | | | 33,232 | |
Hella GmbH & Co. KGaA | | | 121 | | | | 6,601 | |
Henkel AG & Co. KGaA | | | 278 | | | | 26,585 | |
HOCHTIEF AG | | | 55 | | | | 8,220 | |
HUGO BOSS AG | | | 189 | | | | 13,203 | |
Infineon Technologies AG | | | 3,133 | | | | 74,402 | |
Innogy SE, 144A | | | 367 | | | | 17,038 | |
K+S AG | | | 585 | | | | 11,922 | |
KION Group AG | | | 211 | | | | 14,480 | |
Knorr-Bremse AG* | | | 133 | | | | 14,484 | |
LANXESS AG | | | 254 | | | | 14,733 | |
LEG Immobilien AG | | | 173 | | | | 20,174 | |
Merck KGaA | | | 360 | | | | 38,421 | |
METRO AG | | | 513 | | | | 8,706 | |
MTU Aero Engines AG | | | 147 | | | | 34,706 | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | | 415 | | | | 103,921 | |
OSRAM Licht AG | | | 283 | | | | 9,743 | |
ProSiebenSat.1 Media SE | | | 627 | | | | 9,891 | |
Puma SE | | | 24 | | | | 14,867 | |
Rational AG | | | 10 | | | | 6,771 | |
Rheinmetall AG | | | 120 | | | | 13,834 | |
Rocket Internet SE, 144A* | | | 176 | | | | 4,648 | |
RWE AG* | | | 1,505 | | | | 38,559 | |
SAP SE | | | 2,702 | | | | 348,213 | |
Scout24 AG, 144A | | | 318 | | | | 16,414 | |
Siemens AG | | | 2,148 | | | | 257,614 | |
Siemens Healthineers AG, 144A | | | 376 | | | | 16,067 | |
Suedzucker AG | | | 209 | | | | 3,218 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Germany (cont’d.) | |
Symrise AG | | | 349 | | | $ | 33,660 | |
Talanx AG | | | 124 | | | | 4,970 | |
Telefonica Deutschland Holding AG | | | 1,782 | | | | 5,802 | |
thyssenkrupp AG | | | 1,281 | | | | 18,072 | |
TUI AG | | | 1,303 | | | | 14,572 | |
Uniper SE | | | 560 | | | | 16,975 | |
United Internet AG | | | 339 | | | | 13,632 | |
Volkswagen AG | | | 91 | | | | 16,277 | |
Vonovia SE | | | 1,455 | | | | 72,691 | |
Wacker Chemie AG | | | 42 | | | | 3,693 | |
Wirecard AG | | | 319 | | | | 48,291 | |
Zalando SE, 144A* | | | 392 | | | | 18,482 | |
| | | | | | | | |
| | | | | | | 3,382,748 | |
|
Hong Kong 3.1% | |
AIA Group Ltd. | | | 33,900 | | | | 346,832 | |
ASM Pacific Technology Ltd. | | | 800 | | | | 9,274 | |
Bank of East Asia Ltd. (The) | | | 3,600 | | | | 11,366 | |
Brightoil Petroleum Holdings Ltd.*^ | | | 7,000 | | | | 67 | |
Cathay Pacific Airways Ltd. | | | 1,700 | | | | 2,864 | |
Champion REIT | | | 5,000 | | | | 4,235 | |
Chow Tai Fook Jewellery Group Ltd. | | | 2,600 | | | | 2,787 | |
CK Asset Holdings Ltd. | | | 7,500 | | | | 60,212 | |
CK Hutchison Holdings Ltd. | | | 7,400 | | | | 77,839 | |
CK Infrastructure Holdings Ltd. | | | 1,700 | | | | 13,809 | |
CLP Holdings Ltd. | | | 4,600 | | | | 52,155 | |
Dah Sing Banking Group Ltd. | | | 800 | | | | 1,530 | |
Dah Sing Financial Holdings Ltd. | | | 500 | | | | 2,626 | |
Dairy Farm International Holdings Ltd. | | | 900 | | | | 7,043 | |
First Pacific Co. Ltd. | | | 7,000 | | | | 2,905 | |
Great Eagle Holdings Ltd. | | | 1,200 | | | | 5,652 | |
Haitong International Securities Group Ltd. | | | 7,000 | | | | 2,539 | |
Hang Lung Group Ltd. | | | 2,800 | | | | 8,370 | |
Hang Lung Properties Ltd. | | | 6,000 | | | | 14,121 | |
Hang Seng Bank Ltd. | | | 2,040 | | | | 53,575 | |
Henderson Land Development Co. Ltd. | | | 3,640 | | | | 22,438 | |
Hong Kong & China Gas Co. Ltd. | | | 25,762 | | | | 61,506 | |
Hong Kong Exchanges & Clearing Ltd. | | | 3,440 | | | | 119,575 | |
Hongkong Land Holdings Ltd. | | | 3,300 | | | | 22,995 | |
Hopewell Holdings Ltd. | | | 1,800 | | | | 8,871 | |
Huabao International Holdings Ltd. | | | 2,000 | | | | 939 | |
Hutchison Port Holdings Trust, UTS | | | 12,000 | | | | 2,816 | |
Hutchison Telecommunications Hong Kong Holdings Ltd. | | | 4,000 | | | | 1,695 | |
Hysan Development Co. Ltd. | | | 2,000 | | | | 11,209 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 15 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Hong Kong (cont’d.) | |
Jardine Matheson Holdings Ltd. | | | 570 | | | $ | 37,455 | |
Jardine Strategic Holdings Ltd. | | | 550 | | | | 20,822 | |
Johnson Electric Holdings Ltd. | | | 1,000 | | | | 2,355 | |
Kerry Properties Ltd. | | | 2,400 | | | | 10,258 | |
Li & Fung Ltd. | | | 16,000 | | | | 2,658 | |
Lifestyle International Holdings Ltd. | | | 1,400 | | | | 2,442 | |
Link REIT | | | 5,900 | | | | 68,862 | |
Melco International Development Ltd. | | | 2,000 | | | | 4,916 | |
MTR Corp. Ltd. | | | 4,200 | | | | 25,008 | |
New World Development Co. Ltd. | | | 16,600 | | | | 27,483 | |
NWS Holdings Ltd. | | | 4,000 | | | | 8,304 | |
PCCW Ltd. | | | 13,000 | | | | 7,846 | |
Power Assets Holdings Ltd. | | | 3,600 | | | | 25,138 | |
Sa Sa International Holdings Ltd. | | | 2,000 | | | | 679 | |
Shangri-La Asia Ltd. | | | 2,800 | | | | 3,977 | |
Shun Tak Holdings Ltd. | | | 6,000 | | | | 2,674 | |
Sino Land Co. Ltd. | | | 9,600 | | | | 16,924 | |
Sun Art Retail Group Ltd. | | | 6,500 | | | | 5,688 | |
Sun Hung Kai Properties Ltd. | | | 4,000 | | | | 69,120 | |
Swire Pacific Ltd. (Class A Stock) | | | 1,200 | | | | 15,233 | |
Swire Pacific Ltd. (Class B Stock) | | | 2,900 | | | | 5,746 | |
Swire Properties Ltd. | | | 2,800 | | | | 11,389 | |
Techtronic Industries Co. Ltd. | | | 3,500 | | | | 25,391 | |
Television Broadcasts Ltd. | | | 200 | | | | 393 | |
United Energy Group Ltd. | | | 21,000 | | | | 3,914 | |
Vitasoy International Holdings Ltd. | | | 2,000 | | | | 10,057 | |
VTech Holdings Ltd. | | | 400 | | | | 3,655 | |
WH Group Ltd., 144A | | | 23,500 | | | | 27,913 | |
Wharf Holdings Ltd. (The) | | | 3,400 | | | | 9,777 | |
Wharf Real Estate Investment Co. Ltd. | | | 3,700 | | | | 28,375 | |
Wheelock & Co. Ltd. | | | 2,400 | | | | 17,104 | |
Xinyi Glass Holdings Ltd. | | | 6,000 | | | | 6,861 | |
Yue Yuen Industrial Holdings Ltd. | | | 1,800 | | | | 5,827 | |
| | | | | | | | |
| | | | | | | 1,446,089 | |
|
Ireland 0.5% | |
AIB Group PLC | | | 2,069 | | | | 9,607 | |
Bank of Ireland Group PLC | | | 2,544 | | | | 16,210 | |
CRH PLC | | | 2,323 | | | | 77,951 | |
Glanbia PLC | | | 579 | | | | 10,651 | |
James Hardie Industries PLC | | | 1,262 | | | | 17,159 | |
Kerry Group PLC (Class A Stock) | | | 409 | | | | 45,893 | |
Kingspan Group PLC | | | 424 | | | | 22,332 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Ireland (cont’d.) | |
Paddy Power Betfair PLC | | | 213 | | | $ | 18,066 | |
Smurfit Kappa Group PLC | | | 642 | | | | 18,819 | |
| | | | | | | | |
| | | | | | | 236,688 | |
|
Israel 0.4% | |
Airport City Ltd.* | | | 168 | | | | 2,789 | |
Alony Hetz Properties & Investments Ltd. | | | 283 | | | | 3,447 | |
Amot Investments Ltd. | | | 329 | | | | 1,940 | |
Azrieli Group Ltd. | | | 95 | | | | 5,408 | |
Bank Hapoalim BM | | | 3,012 | | | | 22,145 | |
Bank LeumiLe-Israel BM | | | 4,181 | | | | 28,589 | |
Bezeq The Israeli Telecommunication Corp. Ltd. | | | 6,000 | | | | 4,102 | |
Delek Group Ltd. | | | 11 | | | | 2,090 | |
Elbit Systems Ltd. | | | 67 | | | | 9,326 | |
First International Bank of Israel Ltd. | | | 141 | | | | 3,543 | |
Gazit-Globe Ltd. | | | 246 | | | | 1,987 | |
Harel Insurance Investments & Financial Services Ltd. | | | 307 | | | | 2,300 | |
Israel Chemicals Ltd. | | | 1,812 | | | | 9,589 | |
Israel Corp. Ltd. (The) | | | 10 | | | | 2,408 | |
Israel Discount Bank Ltd. | | | 3,170 | | | | 12,355 | |
Melisron Ltd. | | | 44 | | | | 2,223 | |
Migdal Insurance & Financial Holding Ltd. | | | 1,777 | | | | 1,841 | |
Mizrahi Tefahot Bank Ltd. | | | 335 | | | | 7,244 | |
Nice Ltd.* | | | 173 | | | | 23,865 | |
Oil Refineries Ltd.* | | | 3,115 | | | | 1,530 | |
Paz Oil Co. Ltd. | | | 28 | | | | 4,074 | |
Phoenix Holdings Ltd. (The) | | | 334 | | | | 1,906 | |
Shufersal Ltd. | | | 264 | | | | 1,755 | |
Strauss Group Ltd. | | | 121 | | | | 3,088 | |
Teva Pharmaceutical Industries Ltd.* | | | 2,808 | | | | 42,889 | |
Tower Semiconductor Ltd.* | | | 265 | | | | 4,817 | |
| | | | | | | | |
| | | | | | | 207,250 | |
|
Italy 1.9% | |
A2A SpA | | | 4,682 | | | | 7,850 | |
Assicurazioni Generali SpA | | | 3,621 | | | | 70,458 | |
Atlantia SpA | | | 1,463 | | | | 40,072 | |
Banca Mediolanum SpA | | | 798 | | | | 5,902 | |
Banco BPM SpA* | | | 4,203 | | | | 10,060 | |
Buzzi Unicem SpA | | | 227 | | | | 5,071 | |
Buzzi Unicem SpA, RSP | | | 87 | | | | 1,328 | |
Davide Campari-Milano SpA | | | 1,580 | | | | 15,951 | |
DiaSorin SpA | | | 56 | | | | 5,489 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 17 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Italy (cont’d.) | |
Enel SpA | | | 21,831 | | | $ | 138,551 | |
Eni SpA | | | 6,993 | | | | 119,536 | |
Ferrari NV | | | 355 | | | | 48,348 | |
FinecoBank Banca Fineco SpA | | | 1,116 | | | | 14,731 | |
Hera SpA | | | 2,217 | | | | 7,913 | |
Intesa Sanpaolo SpA | | | 42,280 | | | | 110,938 | |
Italgas SpA | | | 1,322 | | | | 8,263 | |
Leonardo SpA | | | 1,076 | | | | 12,484 | |
Mediaset SpA* | | | 839 | | | | 2,797 | |
Mediobanca Banca di Credito Finanziario SpA | | | 2,003 | | | | 21,322 | |
Moncler SpA | | | 508 | | | | 20,949 | |
Pirelli & C SpA, 144A* | | | 1,165 | | | | 8,543 | |
Poste Italiane SpA, 144A | | | 1,228 | | | | 13,131 | |
PRADA SpA | | | 1,600 | | | | 4,544 | |
Prysmian SpA | | | 756 | | | | 14,606 | |
Recordati SpA | | | 292 | | | | 11,819 | |
Saipem SpA* | | | 1,654 | | | | 8,422 | |
Salvatore Ferragamo SpA | | | 186 | | | | 4,213 | |
Snam SpA | | | 6,333 | | | | 32,361 | |
Telecom Italia SpA* | | | 31,460 | | | | 17,669 | |
Telecom Italia SpA, RSP | | | 15,694 | | | | 8,204 | |
Terna Rete Elettrica Nazionale SpA | | | 3,955 | | | | 23,731 | |
UniCredit SpA | | | 6,210 | | | | 86,309 | |
Unione di Banche Italiane SpA | | | 2,935 | | | | 9,200 | |
UnipolSai Assicurazioni SpA | | | 1,961 | | | | 5,375 | |
| | | | | | | | |
| | | | | | | 916,140 | |
|
Japan 21.9% | |
77 Bank Ltd. (The) | | | 200 | | | | 2,872 | |
ABC-Mart, Inc. | | | 70 | | | | 4,357 | |
Acom Co. Ltd. | | | 1,300 | | | | 4,567 | |
Advantest Corp. | | | 580 | | | | 16,510 | |
Aeon Co. Ltd. | | | 1,980 | | | | 36,644 | |
AEON Financial Service Co. Ltd. | | | 310 | | | | 6,449 | |
Aeon Mall Co. Ltd. | | | 330 | | | | 5,066 | |
AGC, Inc. | | | 520 | | | | 17,744 | |
Aica Kogyo Co. Ltd. | | | 100 | | | | 3,469 | |
Aiful Corp.* | | | 400 | | | | 937 | |
Ain Holdings, Inc. | | | 60 | | | | 4,799 | |
Air Water, Inc. | | | 480 | | | | 7,330 | |
Aisin Seiki Co. Ltd. | | | 500 | | | | 19,424 | |
Ajinomoto Co., Inc. | | | 1,370 | | | | 22,210 | |
Alfresa Holdings Corp. | | | 550 | | | | 15,385 | |
Alps Alpine Co. Ltd. | | | 600 | | | | 12,729 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | |
|
Japan (cont’d.) | |
Amada Holdings Co. Ltd. | | | 1,000 | | | $ | 11,170 | |
ANA Holdings, Inc. | | | 350 | | | | 12,257 | |
Aoyama Trading Co. Ltd. | | | 60 | | | | 1,319 | |
Aozora Bank Ltd. | | | 320 | | | | 7,820 | |
Aplus Financial Co. Ltd.* | | | 1,100 | | | | 853 | |
Asahi Group Holdings Ltd. | | | 1,090 | | | | 47,390 | |
Asahi Intecc Co. Ltd. | | | 300 | | | | 15,189 | |
Asahi Kasei Corp. | | | 3,500 | | | | 36,129 | |
Asics Corp. | | | 500 | | | | 6,165 | |
ASKUL Corp. | | | 100 | | | | 2,689 | |
Astellas Pharma, Inc. | | | 5,480 | | | | 74,830 | |
Autobacs Seven Co. Ltd. | | | 200 | | | | 3,492 | |
Awa Bank Ltd. (The) | | | 120 | | | | 3,018 | |
Azbil Corp. | | | 400 | | | | 9,638 | |
Bandai Namco Holdings, Inc. | | | 570 | | | | 27,220 | |
Bank of Kyoto Ltd. (The) | | | 240 | | | | 10,365 | |
Benefit One, Inc. | | | 140 | | | | 2,925 | |
Benesse Holdings, Inc. | | | 180 | | | | 4,968 | |
Bic Camera, Inc. | | | 400 | | | | 4,299 | |
Bridgestone Corp. | | | 1,720 | | | | 68,348 | |
Brother Industries Ltd. | | | 700 | | | | 13,817 | |
Calbee, Inc. | | | 170 | | | | 4,700 | |
Canon Marketing Japan, Inc. | | | 160 | | | | 3,469 | |
Canon, Inc. | | | 2,880 | | | | 80,190 | |
Capcom Co. Ltd. | | | 300 | | | | 6,774 | |
Casio Computer Co. Ltd. | | | 600 | | | | 7,578 | |
Central Japan Railway Co. | | | 474 | | | | 102,088 | |
Chiba Bank Ltd. (The) | | | 2,000 | | | | 10,513 | |
Chubu Electric Power Co., Inc. | | | 2,000 | | | | 29,035 | |
Chugai Pharmaceutical Co. Ltd. | | | 580 | | | | 36,850 | |
Chugoku Bank Ltd. (The) | | | 450 | | | | 4,367 | |
Chugoku Electric Power Co., Inc. (The) | | | 780 | | | | 9,307 | |
Citizen Watch Co. Ltd. | | | 780 | | | | 4,391 | |
Coca-Cola Bottlers Japan Holdings, Inc. | | | 440 | | | | 10,823 | |
COMSYS Holdings Corp. | | | 400 | | | | 10,518 | |
Concordia Financial Group Ltd. | | | 3,300 | | | | 12,871 | |
Cosmo Energy Holdings Co. Ltd. | | | 200 | | | | 4,147 | |
Credit Saison Co. Ltd. | | | 450 | | | | 5,766 | |
CyberAgent, Inc. | | | 230 | | | | 9,219 | |
Dai Nippon Printing Co. Ltd. | | | 850 | | | | 20,204 | |
Daicel Corp. | | | 880 | | | | 9,870 | |
Daido Steel Co. Ltd. | | | 60 | | | | 2,445 | |
Daifuku Co. Ltd. | | | 300 | | | | 18,463 | |
Dai-ichi Life Holdings, Inc. | | | 3,100 | | | | 44,568 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 19 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Daiichi Sankyo Co. Ltd. | | | 1,770 | | | $ | 87,730 | |
Daiichikosho Co. Ltd. | | | 130 | | | | 6,372 | |
Daikin Industries Ltd. | | | 700 | | | | 89,302 | |
Daishi Hokuetsu Financial Group, Inc. | | | 130 | | | | 3,827 | |
Daito Trust Construction Co. Ltd. | | | 156 | | | | 20,862 | |
Daiwa House Industry Co. Ltd. | | | 1,870 | | | | 52,461 | |
Daiwa Securities Group, Inc. | | | 4,400 | | | | 20,443 | |
DeNA Co. Ltd. | | | 310 | | | | 4,836 | |
Denka Co. Ltd. | | | 200 | | | | 6,047 | |
Denso Corp. | | | 1,280 | | | | 56,036 | |
Dentsu, Inc. | | | 580 | | | | 23,728 | |
DIC Corp. | | | 300 | | | | 8,811 | |
Disco Corp. | | | 80 | | | | 13,837 | |
DMG Mori Co. Ltd. | | | 300 | | | | 4,313 | |
Dowa Holdings Co. Ltd. | | | 120 | | | | 3,914 | |
East Japan Railway Co. | | | 990 | | | | 93,371 | |
Ebara Corp. | | | 300 | | | | 9,241 | |
Eisai Co. Ltd. | | | 744 | | | | 43,295 | |
Electric Power Development Co. Ltd. | | | 500 | | | | 11,617 | |
Exedy Corp. | | | 60 | | | | 1,371 | |
Ezaki Glico Co. Ltd. | | | 160 | | | | 8,417 | |
FamilyMart UNY Holdings Co. Ltd. | | | 600 | | | | 16,034 | |
Fancl Corp. | | | 200 | | | | 5,975 | |
FANUC Corp. | | | 543 | | | | 102,257 | |
Fast Retailing Co. Ltd. | | | 110 | | | | 63,746 | |
FP Corp. | | | 90 | | | | 5,476 | |
Fuji Electric Co. Ltd. | | | 400 | | | | 14,215 | |
Fuji Media Holdings, Inc. | | | 100 | | | | 1,347 | |
Fuji Oil Holdings, Inc. | | | 160 | | | | 5,141 | |
FUJIFILM Holdings Corp. | | | 1,070 | | | | 50,060 | |
Fujikura Ltd. | | | 700 | | | | 2,893 | |
Fujitsu General Ltd. | | | 100 | | | | 1,460 | |
Fujitsu Ltd. | | | 550 | | | | 40,272 | |
Fukuoka Financial Group, Inc. | | | 460 | | | | 10,715 | |
Fukuyama Transporting Co. Ltd. | | | 100 | | | | 3,851 | |
Furukawa Electric Co. Ltd. | | | 200 | | | | 5,296 | |
Fuyo General Lease Co. Ltd. | | | 100 | | | | 4,988 | |
Glory Ltd. | | | 100 | | | | 2,526 | |
GMO internet, Inc. | | | 200 | | | | 3,105 | |
GMO Payment Gateway, Inc. | | | 140 | | | | 11,140 | |
GS Yuasa Corp. | | | 200 | | | | 4,018 | |
GungHo Online Entertainment, Inc. | | | 1,200 | | | | 3,751 | |
Gunma Bank Ltd. (The) | | | 1,300 | | | | 5,150 | |
H2O Retailing Corp. | | | 200 | | | | 2,549 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Hachijuni Bank Ltd. (The) | | | 1,290 | | | $ | 5,195 | |
Hakuhodo DY Holdings, Inc. | | | 700 | | | | 11,844 | |
Hamamatsu Photonics KK | | | 330 | | | | 13,440 | |
Hankyu Hanshin Holdings, Inc. | | | 670 | | | | 25,051 | |
Haseko Corp. | | | 770 | | | | 9,308 | |
Heiwa Corp. | | | 100 | | | | 1,993 | |
Hikari Tsushin, Inc. | | | 20 | | | | 3,703 | |
Hino Motors Ltd. | | | 800 | | | | 7,572 | |
Hirose Electric Co. Ltd. | | | 51 | | | | 5,918 | |
Hiroshima Bank Ltd. (The) | | | 900 | | | | 4,858 | |
HIS Co. Ltd. | | | 80 | | | | 2,553 | |
Hisamitsu Pharmaceutical Co., Inc. | | | 210 | | | | 8,928 | |
Hitachi Capital Corp. | | | 130 | | | | 3,031 | |
Hitachi Chemical Co. Ltd. | | | 290 | | | | 7,701 | |
Hitachi Construction Machinery Co. Ltd. | | | 320 | | | | 8,564 | |
Hitachi High-Technologies Corp. | | | 200 | | | | 8,938 | |
Hitachi Ltd. | | | 2,580 | | | | 85,849 | |
Hitachi Metals Ltd. | | | 600 | | | | 6,953 | |
Hitachi Transport System Ltd. | | | 100 | | | | 2,777 | |
Hokkaido Electric Power Co., Inc. | | | 500 | | | | 2,805 | |
Hokuhoku Financial Group, Inc. | | | 400 | | | | 4,407 | |
Hokuriku Electric Power Co.* | | | 500 | | | | 3,717 | |
Honda Motor Co. Ltd. | | | 4,880 | | | | 136,623 | |
Horiba Ltd. | | | 100 | | | | 6,070 | |
Hoshizaki Corp. | | | 170 | | | | 11,048 | |
House Foods Group, Inc. | | | 200 | | | | 8,068 | |
Hoya Corp. | | | 1,000 | | | | 70,700 | |
Hulic Co. Ltd. | | | 1,060 | | | | 9,147 | |
Ibiden Co. Ltd. | | | 360 | | | | 6,469 | |
Ichigo, Inc. | | | 400 | | | | 1,294 | |
Idemitsu Kosan Co. Ltd. | | | 648 | | | | 21,014 | |
IHI Corp. | | | 430 | | | | 10,246 | |
Iida Group Holdings Co. Ltd. | | | 430 | | | | 7,281 | |
Inpex Corp. | | | 2,600 | | | | 25,238 | |
Isetan Mitsukoshi Holdings Ltd. | | | 1,000 | | | | 9,532 | |
Isuzu Motors Ltd. | | | 1,400 | | | | 20,309 | |
Ito En Ltd. | | | 170 | | | | 8,465 | |
ITOCHU Corp. | | | 4,000 | | | | 72,138 | |
Itochu Techno-Solutions Corp. | | | 280 | | | | 6,868 | |
Itoham Yonekyu Holdings, Inc. | | | 400 | | | | 2,498 | |
Iyo Bank Ltd. (The) | | | 870 | | | | 4,846 | |
Izumi Co. Ltd. | | | 130 | | | | 5,677 | |
J Front Retailing Co. Ltd. | | | 700 | | | | 8,559 | |
Japan Airlines Co. Ltd. | | | 300 | | | | 9,929 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 21 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Japan Airport Terminal Co. Ltd. | | | 150 | | | $ | 6,352 | |
Japan Aviation Electronics Industry Ltd. | | | 80 | | | | 1,291 | |
Japan Exchange Group, Inc. | | | 1,500 | | | | 24,468 | |
Japan Petroleum Exploration Co. Ltd. | | | 60 | | | | 1,304 | |
Japan Post Bank Co. Ltd. | | | 1,200 | | | | 13,211 | |
Japan Post Holdings Co. Ltd. | | | 3,700 | | | | 41,372 | |
Japan Post Insurance Co. Ltd. | | | 200 | | | | 4,038 | |
Japan Steel Works Ltd. (The) | | | 200 | | | | 3,866 | |
Japan Tobacco, Inc. | | | 3,350 | | | | 77,350 | |
JFE Holdings, Inc. | | | 1,480 | | | | 25,472 | |
JGC Corp. | | | 580 | | | | 8,333 | |
JSR Corp. | | | 600 | | | | 9,147 | |
JTEKT Corp. | | | 700 | | | | 9,048 | |
JXTG Holdings, Inc. | | | 8,810 | | | | 42,885 | |
Kagome Co. Ltd. | | | 300 | | | | 8,204 | |
Kajima Corp. | | | 1,300 | | | | 19,314 | |
Kakaku.com, Inc. | | | 350 | | | | 7,190 | |
Kaken Pharmaceutical Co. Ltd. | | | 100 | | | | 4,280 | |
Kamigumi Co. Ltd. | | | 280 | | | | 6,693 | |
Kandenko Co. Ltd. | | | 300 | | | | 2,527 | |
Kaneka Corp. | | | 130 | | | | 5,025 | |
Kansai Electric Power Co., Inc. (The) | | | 2,070 | | | | 24,986 | |
Kansai Mirai Financial Group, Inc. | | | 500 | | | | 3,504 | |
Kansai Paint Co. Ltd. | | | 580 | | | | 11,060 | |
Kao Corp. | | | 1,280 | | | | 98,936 | |
Kawasaki Heavy Industries Ltd. | | | 490 | | | | 11,465 | |
Kawasaki Kisen Kaisha Ltd.* | | | 200 | | | | 2,906 | |
KDDI Corp. | | | 4,900 | | | | 112,520 | |
Keihan Holdings Co. Ltd. | | | 310 | | | | 13,197 | |
Keikyu Corp. | | | 700 | | | | 11,960 | |
Keio Corp. | | | 330 | | | | 19,923 | |
Keisei Electric Railway Co. Ltd. | | | 450 | | | | 15,774 | |
Kewpie Corp. | | | 300 | | | | 6,954 | |
Keyence Corp. | | | 203 | | | | 126,961 | |
Kikkoman Corp. | | | 510 | | | | 23,772 | |
Kinden Corp. | | | 400 | | | | 6,427 | |
Kintetsu Group Holdings Co. Ltd. | | | 510 | | | | 22,652 | |
Kirin Holdings Co. Ltd. | | | 2,240 | | | | 50,788 | |
Kissei Pharmaceutical Co. Ltd. | | | 100 | | | | 2,482 | |
Kobayashi Pharmaceutical Co. Ltd. | | | 190 | | | | 15,184 | |
Kobe Steel Ltd. | | | 900 | | | | 6,896 | |
Koei Tecmo Holdings Co. Ltd. | | | 200 | | | | 3,643 | |
Koito Manufacturing Co. Ltd. | | | 280 | | | | 16,760 | |
Kokuyo Co. Ltd. | | | 200 | | | | 2,541 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Komatsu Ltd. | | | 2,610 | | | $ | 67,647 | |
Komeri Co. Ltd. | | | 100 | | | | 2,110 | |
Konami Holdings Corp. | | | 300 | | | | 13,694 | |
Konica Minolta, Inc. | | | 1,400 | | | | 14,074 | |
Kose Corp. | | | 60 | | | | 11,298 | |
K’s Holdings Corp. | | | 500 | | | | 4,471 | |
Kubota Corp. | | | 3,100 | | | | 47,216 | |
Kuraray Co. Ltd. | | | 1,000 | | | | 13,431 | |
Kurita Water Industries Ltd. | | | 360 | | | | 9,360 | |
Kyocera Corp. | | | 850 | | | | 55,278 | |
KYORIN Holdings, Inc. | | | 100 | | | | 1,885 | |
Kyoritsu Maintenance Co. Ltd. | | | 100 | | | | 5,143 | |
Kyowa Exeo Corp. | | | 240 | | | | 6,568 | |
Kyowa Hakko Kirin Co. Ltd. | | | 720 | | | | 14,023 | |
Kyudenko Corp. | | | 100 | | | | 2,849 | |
Kyushu Electric Power Co., Inc. | | | 1,300 | | | | 12,580 | |
Kyushu Financial Group, Inc. | | | 1,100 | | | | 4,445 | |
Kyushu Railway Co. | | | 470 | | | | 15,321 | |
Lawson, Inc. | | | 130 | | | | 6,057 | |
LINE Corp.* | | | 180 | | | | 6,057 | |
Lintec Corp. | | | 140 | | | | 3,029 | |
Lion Corp. | | | 740 | | | | 15,246 | |
LIXIL Group Corp. | | | 720 | | | | 9,375 | |
M3, Inc. | | | 1,120 | | | | 19,978 | |
Mabuchi Motor Co. Ltd. | | | 160 | | | | 5,934 | |
Maeda Corp. | | | 400 | | | | 3,977 | |
Maeda Road Construction Co. Ltd. | | | 200 | | | | 3,973 | |
Makita Corp. | | | 750 | | | | 27,458 | |
Marubeni Corp. | | | 4,500 | | | | 32,306 | |
Maruha Nichiro Corp. | | | 80 | | | | 2,549 | |
Marui Group Co. Ltd. | | | 580 | | | | 11,800 | |
Maruichi Steel Tube Ltd. | | | 200 | | | | 5,533 | |
Matsui Securities Co. Ltd. | | | 300 | | | | 2,679 | |
Matsumotokiyoshi Holdings Co. Ltd. | | | 240 | | | | 7,931 | |
Mazda Motor Corp. | | | 1,600 | | | | 18,978 | |
Mebuki Financial Group, Inc. | | | 2,800 | | | | 7,130 | |
Medipal Holdings Corp. | | | 500 | | | | 11,247 | |
Megmilk Snow Brand Co. Ltd. | | | 60 | | | | 1,326 | |
MEIJI Holdings Co. Ltd. | | | 336 | | | | 26,457 | |
MINEBEA MITSUMI, Inc. | | | 1,200 | | | | 21,412 | |
Miraca Holdings, Inc. | | | 100 | | | | 2,564 | |
MISUMI Group, Inc. | | | 780 | | | | 20,337 | |
Mitsubishi Chemical Holdings Corp. | | | 3,700 | | | | 26,360 | |
Mitsubishi Corp. | | | 3,630 | | | | 100,125 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 23 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Mitsubishi Electric Corp. | | | 5,580 | | | $ | 79,672 | |
Mitsubishi Estate Co. Ltd. | | | 3,370 | | | | 57,032 | |
Mitsubishi Gas Chemical Co., Inc. | | | 520 | | | | 7,798 | |
Mitsubishi Heavy Industries Ltd. | | | 850 | | | | 35,411 | |
Mitsubishi Logistics Corp. | | | 190 | | | | 5,087 | |
Mitsubishi Materials Corp. | | | 410 | | | | 10,647 | |
Mitsubishi Motors Corp. | | | 1,800 | | | | 10,111 | |
Mitsubishi Shokuhin Co. Ltd. | | | 120 | | | | 3,105 | |
Mitsubishi Tanabe Pharma Corp. | | | 640 | | | | 8,077 | |
Mitsubishi UFJ Financial Group, Inc. | | | 34,800 | | | | 173,150 | |
Mitsubishi UFJ Lease & Finance Co. Ltd. | | | 1,350 | | | | 6,885 | |
Mitsui & Co. Ltd. | | | 4,800 | | | | 77,696 | |
Mitsui Chemicals, Inc. | | | 540 | | | | 13,264 | |
Mitsui Fudosan Co. Ltd. | | | 2,660 | | | | 61,696 | |
Mitsui Mining & Smelting Co. Ltd. | | | 200 | | | | 5,207 | |
Mitsui OSK Lines Ltd. | | | 370 | | | | 9,447 | |
Miura Co. Ltd. | | | 230 | | | | 5,872 | |
Mizuho Financial Group, Inc. | | | 70,300 | | | | 109,941 | |
Mochida Pharmaceutical Co. Ltd. | | | 30 | | | | 1,395 | |
MonotaRO Co. Ltd. | | | 360 | | | | 8,326 | |
Morinaga & Co. Ltd. | | | 140 | | | | 5,849 | |
Morinaga Milk Industry Co. Ltd. | | | 70 | | | | 2,322 | |
MS&AD Insurance Group Holdings, Inc. | | | 1,400 | | | | 43,460 | |
Murata Manufacturing Co. Ltd. | | | 1,620 | | | | 87,455 | |
Nabtesco Corp. | | | 330 | | | | 10,161 | |
Nagase & Co. Ltd. | | | 300 | | | | 4,587 | |
Nagoya Railroad Co. Ltd. | | | 560 | | | | 15,181 | |
Nankai Electric Railway Co. Ltd. | | | 330 | | | | 9,008 | |
NEC Corp. | | | 670 | | | | 22,650 | |
Nexon Co. Ltd.* | | | 1,140 | | | | 16,433 | |
NGK Insulators Ltd. | | | 730 | | | | 10,844 | |
NGK Spark Plug Co. Ltd. | | | 550 | | | | 10,725 | |
NH Foods Ltd. | | | 300 | | | | 12,118 | |
NHK Spring Co. Ltd. | | | 480 | | | | 4,333 | |
Nichirei Corp. | | | 300 | | | | 6,968 | |
Nidec Corp. | | | 620 | | | | 88,767 | |
Nifco, Inc. | | | 250 | | | | 7,058 | |
Nihon Kohden Corp. | | | 200 | | | | 5,848 | |
Nihon M&A Center, Inc. | | | 400 | | | | 11,420 | |
Nihon Unisys Ltd. | | | 200 | | | | 5,128 | |
Nikon Corp. | | | 950 | | | | 13,310 | |
Nintendo Co. Ltd. | | | 256 | | | | 88,000 | |
Nippo Corp. | | | 160 | | | | 3,257 | |
Nippon Electric Glass Co. Ltd. | | | 190 | | | | 5,233 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Nippon Express Co. Ltd. | | | 200 | | | $ | 11,012 | |
Nippon Gas Co. Ltd. | | | 100 | | | | 2,629 | |
Nippon Kayaku Co. Ltd. | | | 500 | | | | 5,877 | |
Nippon Paint Holdings Co. Ltd. | | | 480 | | | | 18,332 | |
Nippon Paper Industries Co. Ltd. | | | 300 | | | | 5,956 | |
Nippon Shinyaku Co. Ltd. | | | 160 | | | | 11,041 | |
Nippon Shokubai Co. Ltd. | | | 40 | | | | 2,778 | |
Nippon Steel Corp. | | | 2,330 | | | | 41,725 | |
Nippon Telegraph & Telephone Corp. | | | 1,800 | | | | 74,879 | |
Nippon Television Holdings, Inc. | | | 150 | | | | 2,193 | |
Nippon Yusen KK | | | 450 | | | | 7,696 | |
Nipro Corp. | | | 300 | | | | 3,728 | |
Nishi-Nippon Financial Holdings, Inc. | | | 400 | | | | 3,307 | |
Nishi-Nippon Railroad Co. Ltd. | | | 200 | | | | 4,702 | |
Nissan Chemical Corp. | | | 400 | | | | 17,863 | |
Nissan Motor Co. Ltd. | | | 5,400 | | | | 43,414 | |
Nissan Shatai Co. Ltd. | | | 200 | | | | 1,839 | |
Nisshin Seifun Group, Inc. | | | 760 | | | | 17,795 | |
Nisshinbo Holdings, Inc. | | | 400 | | | | 3,560 | |
Nissin Foods Holdings Co. Ltd. | | | 200 | | | | 13,255 | |
Nitori Holdings Co. Ltd. | | | 212 | | | | 25,299 | |
Nitto Denko Corp. | | | 400 | | | | 21,685 | |
NOF Corp. | | | 200 | | | | 7,146 | |
NOK Corp. | | | 300 | | | | 4,822 | |
Nomura Holdings, Inc. | | | 9,400 | | | | 35,526 | |
Nomura Real Estate Holdings, Inc. | | | 330 | | | | 7,017 | |
Nomura Research Institute Ltd. | | | 320 | | | | 15,697 | |
North Pacific Bank Ltd. | | | 600 | | | | 1,473 | |
NS Solutions Corp. | | | 80 | | | | 2,155 | |
NSK Ltd. | | | 1,400 | | | | 14,559 | |
NTN Corp. | | | 1,100 | | | | 3,636 | |
NTT Data Corp. | | | 1,800 | | | | 21,019 | |
NTT DOCOMO, Inc. | | | 3,440 | | | | 74,773 | |
Obayashi Corp. | | | 2,000 | | | | 19,665 | |
OBIC Business Consultants Co. Ltd. | | | 40 | | | | 1,610 | |
Obic Co. Ltd. | | | 200 | | | | 23,205 | |
Odakyu Electric Railway Co. Ltd. | | | 840 | | | | 19,779 | |
Oji Holdings Corp. | | | 2,500 | | | | 15,045 | |
OKUMA Corp. | | | 100 | | | | 5,896 | |
Olympus Corp. | | | 3,280 | | | | 36,809 | |
Omron Corp. | | | 570 | | | | 30,661 | |
Ono Pharmaceutical Co. Ltd. | | | 1,230 | | | | 23,377 | |
Open House Co. Ltd. | | | 100 | | | | 3,678 | |
Oracle Corp. | | | 100 | | | | 6,860 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 25 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Orient Corp. | | | 1,400 | | | $ | 1,477 | |
Oriental Land Co. Ltd. | | | 490 | | | | 54,242 | |
ORIX Corp. | | | 3,600 | | | | 51,124 | |
Osaka Gas Co. Ltd. | | | 1,140 | | | | 21,115 | |
OSG Corp. | | | 260 | | | | 5,231 | |
Otsuka Corp. | | | 290 | | | | 11,424 | |
Otsuka Holdings Co. Ltd. | | | 1,210 | | | | 43,218 | |
Paltac Corp. | | | 100 | | | | 5,517 | |
Pan Pacific International Holdings Corp. | | | 320 | | | | 20,659 | |
Panasonic Corp. | | | 6,100 | | | | 56,246 | |
Park24 Co. Ltd. | | | 260 | | | | 5,474 | |
Penta-Ocean Construction Co. Ltd. | | | 800 | | | | 3,671 | |
PeptiDream, Inc.* | | | 270 | | | | 14,659 | |
Persol Holdings Co. Ltd. | | | 550 | | | | 10,368 | |
Pigeon Corp. | | | 260 | | | | 11,173 | |
Pilot Corp. | | | 100 | | | | 4,142 | |
Pola Orbis Holdings, Inc. | | | 210 | | | | 6,640 | |
Rakuten, Inc. | | | 2,150 | | | | 24,015 | |
Recruit Holdings Co. Ltd. | | | 3,390 | | | | 101,891 | |
Relo Group, Inc. | | | 300 | | | | 8,220 | |
Renesas Electronics Corp.* | | | 2,080 | | | | 11,151 | |
Rengo Co. Ltd. | | | 600 | | | | 5,289 | |
Resona Holdings, Inc. | | | 6,300 | | | | 26,770 | |
Resorttrust, Inc. | | | 160 | | | | 2,238 | |
Ricoh Co. Ltd. | | | 1,900 | | | | 19,256 | |
Rinnai Corp. | | | 60 | | | | 4,042 | |
Rohm Co. Ltd. | | | 260 | | | | 19,198 | |
Rohto Pharmaceutical Co. Ltd. | | | 300 | | | | 8,447 | |
Ryohin Keikaku Co. Ltd. | | | 32 | | | | 6,121 | |
San-In Godo Bank Ltd. (The) | | | 400 | | | | 2,650 | |
Sankyo Co. Ltd. | | | 160 | | | | 6,313 | |
Sankyu, Inc. | | | 100 | | | | 4,795 | |
Sanrio Co. Ltd. | | | 240 | | | | 5,470 | |
Santen Pharmaceutical Co. Ltd. | | | 1,000 | | | | 15,340 | |
Sanwa Holdings Corp. | | | 560 | | | | 6,748 | |
Sapporo Holdings Ltd. | | | 200 | | | | 4,091 | |
Sawai Pharmaceutical Co. Ltd. | | | 100 | | | | 5,380 | |
SBI Holdings, Inc. | | | 600 | | | | 12,882 | |
SCREEN Holdings Co. Ltd. | | | 80 | | | | 3,866 | |
SCSK Corp. | | | 150 | | | | 7,116 | |
Secom Co. Ltd. | | | 560 | | | | 47,192 | |
Sega Sammy Holdings, Inc. | | | 570 | | | | 7,194 | |
Seibu Holdings, Inc. | | | 600 | | | | 9,776 | |
Seiko Epson Corp. | | | 800 | | | | 12,846 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Seino Holdings Co. Ltd. | | | 400 | | | $ | 5,451 | |
Sekisui Chemical Co. Ltd. | | | 1,000 | | | | 16,074 | |
Sekisui House Ltd. | | | 1,680 | | | | 27,129 | |
Seven & i Holdings Co. Ltd. | | | 2,170 | | | | 75,480 | |
Seven Bank Ltd. | | | 2,100 | | | | 5,714 | |
SG Holdings Co. Ltd. | | | 600 | | | | 16,083 | |
Sharp Corp.* | | | 440 | | | | 4,921 | |
Shiga Bank Ltd. (The) | | | 100 | | | | 2,392 | |
Shikoku Electric Power Co., Inc. | | | 500 | | | | 5,046 | |
Shima Seiki Manufacturing Ltd. | | | 100 | | | | 3,371 | |
Shimachu Co. Ltd. | | | 100 | | | | 2,415 | |
Shimadzu Corp. | | | 780 | | | | 20,894 | |
Shimamura Co. Ltd. | | | 20 | | | | 1,498 | |
Shimano, Inc. | | | 220 | | | | 32,225 | |
Shimizu Corp. | | | 1,600 | | | | 13,708 | |
Shin-Etsu Chemical Co. Ltd. | | | 1,100 | | | | 104,683 | |
Shinsei Bank Ltd.* | | | 480 | | | | 6,682 | |
Shionogi & Co. Ltd. | | | 790 | | | | 46,258 | |
Shiseido Co. Ltd. | | | 1,040 | | | | 82,054 | |
Shizuoka Bank Ltd. (The) | | | 1,360 | | | | 10,472 | |
Showa Denko KK | | | 400 | | | | 13,676 | |
SKY Perfect JSAT Holdings, Inc. | | | 400 | | | | 1,600 | |
Skylark Holdings Co. Ltd. | | | 500 | | | | 8,238 | |
SMC Corp. | | | 130 | | | | 54,328 | |
Softbank Corp. | | | 4,000 | | | | 47,217 | |
SoftBank Group Corp. | | | 2,370 | | | | 249,994 | |
Sohgo Security Services Co. Ltd. | | | 220 | | | | 9,825 | |
Sojitz Corp. | | | 3,700 | | | | 12,789 | |
Sompo Holdings, Inc. | | | 960 | | | | 36,113 | |
Sony Corp. | | | 3,580 | | | | 171,030 | |
Sony Financial Holdings, Inc. | | | 480 | | | | 9,842 | |
Sotetsu Holdings, Inc. | | | 260 | | | | 7,204 | |
Square Enix Holdings Co. Ltd. | | | 210 | | | | 7,250 | |
Stanley Electric Co. Ltd. | | | 440 | | | | 11,953 | |
Subaru Corp. | | | 1,770 | | | | 43,433 | |
Sugi Holdings Co. Ltd. | | | 100 | | | | 5,056 | |
SUMCO Corp. | | | 680 | | | | 8,935 | |
Sumitomo Bakelite Co. Ltd. | | | 100 | | | | 3,911 | |
Sumitomo Chemical Co. Ltd. | | | 4,300 | | | | 21,461 | |
Sumitomo Corp. | | | 3,180 | | | | 45,609 | |
Sumitomo Dainippon Pharma Co. Ltd. | | | 500 | | | | 11,083 | |
Sumitomo Electric Industries Ltd. | | | 2,170 | | | | 28,879 | |
Sumitomo Forestry Co. Ltd. | | | 400 | | | | 5,511 | |
Sumitomo Heavy Industries Ltd. | | | 310 | | | | 11,007 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 27 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Sumitomo Metal Mining Co. Ltd. | | | 690 | | | $ | 21,740 | |
Sumitomo Mitsui Financial Group, Inc. | | | 3,700 | | | | 134,712 | |
Sumitomo Mitsui Trust Holdings, Inc. | | | 1,080 | | | | 37,673 | |
Sumitomo Osaka Cement Co. Ltd. | | | 100 | | | | 4,071 | |
Sumitomo Realty & Development Co. Ltd. | | | 1,200 | | | | 44,384 | |
Sumitomo Rubber Industries Ltd. | | | 500 | | | | 6,157 | |
Sundrug Co. Ltd. | | | 180 | | | | 4,829 | |
Suntory Beverage & Food Ltd. | | | 370 | | | | 16,306 | |
Suzuken Co. Ltd. | | | 230 | | | | 13,283 | |
Suzuki Motor Corp. | | | 1,150 | | | | 52,523 | |
Sysmex Corp. | | | 550 | | | | 31,562 | |
T&D Holdings, Inc. | | | 1,600 | | | | 17,338 | |
Tadano Ltd. | | | 300 | | | | 3,175 | |
Taiheiyo Cement Corp. | | | 330 | | | | 10,628 | |
Taisei Corp. | | | 600 | | | | 26,395 | |
Taisho Pharmaceutical Holdings Co. Ltd. | | | 140 | | | | 13,003 | |
Taiyo Nippon Sanso Corp. | | | 390 | | | | 6,501 | |
Taiyo Yuden Co. Ltd. | | | 400 | | | | 9,788 | |
Takara Bio, Inc. | | | 130 | | | | 2,860 | |
Takara Holdings, Inc. | | | 500 | | | | 5,834 | |
Takashimaya Co. Ltd. | | | 400 | | | | 4,504 | |
Takeda Pharmaceutical Co. Ltd. | | | 4,283 | | | | 158,819 | |
TDK Corp. | | | 300 | | | | 26,362 | |
TechnoPro Holdings, Inc. | | | 100 | | | | 6,022 | |
Teijin Ltd. | | | 540 | | | | 9,285 | |
Terumo Corp. | | | 1,860 | | | | 56,246 | |
THK Co. Ltd. | | | 370 | | | | 9,748 | |
TIS, Inc. | | | 200 | | | | 9,123 | |
Tobu Railway Co. Ltd. | | | 630 | | | | 17,835 | |
Toda Corp. | | | 600 | | | | 3,710 | |
Toho Co. Ltd. | | | 320 | | | | 13,403 | |
Toho Gas Co. Ltd. | | | 270 | | | | 11,144 | |
Tohoku Electric Power Co., Inc. | | | 1,380 | | | | 15,776 | |
Tokai Carbon Co. Ltd. | | | 500 | | | | 5,774 | |
Tokai Rika Co. Ltd. | | | 100 | | | | 1,742 | |
Tokai Tokyo Financial Holdings, Inc. | | | 600 | | | | 1,992 | |
Tokio Marine Holdings, Inc. | | | 1,920 | | | | 97,250 | |
Tokuyama Corp. | | | 200 | | | | 4,982 | |
Tokyo Broadcasting System Holdings, Inc. | | | 100 | | | | 1,903 | |
Tokyo Century Corp. | | | 160 | | | | 7,392 | |
Tokyo Electric Power Co. Holdings, Inc.* | | | 4,500 | | | | 25,443 | |
Tokyo Electron Ltd. | | | 440 | | | | 70,138 | |
Tokyo Gas Co. Ltd. | | | 1,240 | | | | 31,546 | |
Tokyo Tatemono Co. Ltd. | | | 570 | | | | 6,432 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Tokyu Corp. | | | 1,400 | | | $ | 22,872 | |
Tokyu Fudosan Holdings Corp. | | | 1,700 | | | | 9,597 | |
Topcon Corp. | | | 300 | | | | 3,647 | |
Toppan Printing Co. Ltd. | | | 750 | | | | 12,195 | |
Toray Industries, Inc. | | | 4,290 | | | | 29,304 | |
Toshiba Corp. | | | 1,660 | | | | 55,274 | |
Toshiba Plant Systems & Services Corp. | | | 100 | | | | 1,796 | |
Tosoh Corp. | | | 850 | | | | 13,708 | |
TOTO Ltd. | | | 430 | | | | 18,234 | |
Toyo Seikan Group Holdings Ltd. | | | 470 | | | | 9,409 | |
Toyo Suisan Kaisha Ltd. | | | 270 | | | | 10,302 | |
Toyo Tire Corp. | | | 300 | | | | 3,519 | |
Toyobo Co. Ltd. | | | 200 | | | | 2,617 | |
Toyoda Gosei Co. Ltd. | | | 210 | | | | 4,381 | |
Toyota Boshoku Corp. | | | 180 | | | | 2,660 | |
Toyota Industries Corp. | | | 470 | | | | 26,720 | |
Toyota Motor Corp. | | | 6,950 | | | | 432,073 | |
Toyota Tsusho Corp. | | | 660 | | | | 21,954 | |
Trend Micro, Inc. | | | 340 | | | | 16,989 | |
TS Tech Co. Ltd. | | | 180 | | | | 5,406 | |
Tsumura & Co. | | | 180 | | | | 5,539 | |
Tsuruha Holdings, Inc. | | | 70 | | | | 5,973 | |
TV Asahi Holdings Corp. | | | 100 | | | | 1,765 | |
Ube Industries Ltd. | | | 300 | | | | 6,425 | |
Ulvac, Inc. | | | 100 | | | | 3,365 | |
Unicharm Corp. | | | 1,140 | | | | 37,540 | |
Ushio, Inc. | | | 300 | | | | 3,650 | |
USS Co. Ltd. | | | 600 | | | | 11,505 | |
Wacoal Holdings Corp. | | | 200 | | | | 4,937 | |
Welcia Holdings Co. Ltd. | | | 160 | | | | 6,293 | |
West Japan Railway Co. | | | 520 | | | | 38,686 | |
Yahoo Japan Corp. | | | 6,500 | | | | 17,369 | |
Yakult Honsha Co. Ltd. | | | 360 | | | | 24,607 | |
Yamada Denki Co. Ltd. | | | 2,200 | | | | 10,427 | |
Yamaguchi Financial Group, Inc. | | | 600 | | | | 4,443 | |
Yamaha Corp. | | | 460 | | | | 23,825 | |
Yamaha Motor Co. Ltd. | | | 800 | | | | 16,527 | |
Yamato Holdings Co. Ltd. | | | 1,030 | | | | 22,432 | |
Yamato Kogyo Co. Ltd. | | | 100 | | | | 2,782 | |
Yamazaki Baking Co. Ltd. | | | 400 | | | | 5,928 | |
Yaoko Co. Ltd. | | | 100 | | | | 4,762 | |
Yaskawa Electric Corp. | | | 760 | | | | 28,280 | |
Yokogawa Electric Corp. | | | 700 | | | | 14,688 | |
Yokohama Rubber Co. Ltd. (The) | | | 370 | | | | 6,990 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 29 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Japan (cont’d.) | |
Zenkoku Hosho Co. Ltd. | | | 100 | | | $ | 3,508 | |
Zensho Holdings Co. Ltd. | | | 300 | | | | 6,759 | |
Zeon Corp. | | | 400 | | | | 3,929 | |
ZOZO, Inc. | | | 490 | | | | 8,708 | |
| | | | | | | | |
| | | | | | | 10,271,051 | |
|
Jordan 0.0% | |
Hikma Pharmaceuticals PLC | | | 371 | | | | 8,573 | |
|
Kazakhstan 0.0% | |
KAZ Minerals PLC | | | 611 | | | | 5,188 | |
|
Luxembourg 0.2% | |
ArcelorMittal | | | 1,730 | | | | 37,858 | |
Eurofins Scientific SE | | | 32 | | | | 14,685 | |
L’Occitane International SA | | | 1,250 | | | | 2,255 | |
RTL Group SA | | | 111 | | | | 6,253 | |
SES SA | | | 978 | | | | 16,680 | |
Tenaris SA | | | 1,271 | | | | 17,696 | |
| | | | | | | | |
| | | | | | | 95,427 | |
|
Macau 0.2% | |
Galaxy Entertainment Group Ltd. | | | 5,700 | | | | 42,722 | |
Macau Legend Development Ltd. | | | 2,000 | | | | 324 | |
MGM China Holdings Ltd. | | | 1,900 | | | | 3,931 | |
Sands China Ltd. | | | 6,800 | | | | 37,428 | |
SJM Holdings Ltd. | | | 4,600 | | | | 5,555 | |
Wynn Macau Ltd. | | | 4,400 | | | | 12,655 | |
| | | | | | | | |
| | | | | | | 102,615 | |
|
Mexico 0.0% | |
Fresnillo PLC | | | 493 | | | | 4,819 | |
|
Netherlands 3.8% | |
Aalberts NV | | | 250 | | | | 9,846 | |
ABN AMRO Group NV, CVA, 144A | | | 1,169 | | | | 27,552 | |
Adyen NV, 144A* | | | 23 | | | | 18,826 | |
Aegon NV | | | 4,937 | | | | 25,877 | |
Akzo Nobel NV | | | 638 | | | | 54,305 | |
ASML Holding NV | | | 1,114 | | | | 233,319 | |
ASR Nederland NV | | | 394 | | | | 17,556 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
|
Netherlands (cont’d.) | |
Boskalis Westminster | | | 207 | | | $ | 5,673 | |
EXOR NV | | | 293 | | | | 19,602 | |
GrandVision NV, 144A | | | 107 | | | | 2,409 | |
Heineken Holding NV | | | 292 | | | | 29,710 | |
Heineken NV | | | 658 | | | | 71,162 | |
ING Groep NV | | | 10,918 | | | | 139,526 | |
Koninklijke Ahold Delhaize NV | | | 3,025 | | | | 72,808 | |
Koninklijke DSM NV | | | 486 | | | | 55,764 | |
Koninklijke KPN NV | | | 9,216 | | | | 28,332 | |
Koninklijke Philips NV | | | 2,599 | | | | 111,462 | |
Koninklijke Vopak NV | | | 174 | | | | 7,773 | |
NN Group NV | | | 940 | | | | 41,017 | |
OCI NV* | | | 262 | | | | 7,622 | |
Randstad NV | | | 310 | | | | 17,747 | |
Royal Dutch Shell PLC (Class A Stock) | | | 12,469 | | | | 398,602 | |
Royal Dutch Shell PLC (Class B Stock) | | | 10,495 | | | | 337,710 | |
Signify NV, 144A | | | 320 | | | | 9,612 | |
Wolters Kluwer NV | | | 776 | | | | 54,225 | |
| | | | | | | | |
| | | | | | | 1,798,037 | |
|
New Zealand 0.3% | |
a2 Milk Co. Ltd.* | | | 2,003 | | | | 22,487 | |
Air New Zealand Ltd. | | | 1,405 | | | | 2,522 | |
Auckland International Airport Ltd. | | | 2,642 | | | | 14,044 | |
Contact Energy Ltd. | | | 1,902 | | | | 8,525 | |
Fisher & Paykel Healthcare Corp. Ltd. | | | 1,634 | | | | 17,219 | |
Fletcher Building Ltd. | | | 2,568 | | | | 8,846 | |
Kiwi Property Group Ltd. | | | 3,935 | | | | 4,052 | |
Mercury NZ Ltd. | | | 1,871 | | | | 4,622 | |
Meridian Energy Ltd. | | | 3,215 | | | | 8,721 | |
Ryman Healthcare Ltd. | | | 1,069 | | | | 8,697 | |
SKYCITY Entertainment Group Ltd. | | | 1,805 | | | | 4,919 | |
Spark New Zealand Ltd. | | | 5,082 | | | | 12,465 | |
Xero Ltd.* | | | 242 | | | | 9,290 | |
| | | | | | | | |
| | | | | | | 126,409 | |
|
Norway 0.6% | |
Aker ASA (Class A Stock) | | | 56 | | | | 3,847 | |
Aker BP ASA | | | 285 | | | | 9,418 | |
DNB ASA | | | 2,951 | | | | 56,888 | |
Equinor ASA | | | 2,738 | | | | 61,037 | |
Gjensidige Forsikring ASA | | | 432 | | | | 8,393 | |
Leroy Seafood Group ASA | | | 710 | | | | 5,139 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 31 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Norway (cont’d.) | | | | | | | | |
Mowi ASA | | | 1,177 | | | $ | 25,552 | |
Norsk Hydro ASA | | | 3,630 | | | | 15,641 | |
Orkla ASA | | | 2,159 | | | | 16,955 | |
Salmar ASA | | | 143 | | | | 6,512 | |
Schibsted ASA (Class A Stock) | | | 214 | | | | 5,635 | |
Schibsted ASA (Class B Stock) | | | 268 | | | | 6,419 | |
Telenor ASA | | | 1,895 | | | | 38,083 | |
Yara International ASA | | | 513 | | | | 23,265 | |
| | | | | | | | |
| | | | | | | 282,784 | |
| | |
Poland 0.3% | | | | | | | | |
Bank Polska Kasa Opieki SA | | | 441 | | | | 13,144 | |
CD Projekt SA* | | | 166 | | | | 9,380 | |
Cyfrowy Polsat SA* | | | 718 | | | | 4,993 | |
Dino Polska SA, 144A* | | | 131 | | | | 4,359 | |
Grupa Lotos SA | | | 275 | | | | 5,996 | |
KGHM Polska Miedz SA* | | | 360 | | | | 9,719 | |
LPP SA | | | 2 | | | | 4,485 | |
mBank SA | | | 35 | | | | 4,066 | |
PGE Polska Grupa Energetyczna SA* | | | 1,951 | | | | 4,876 | |
Polski Koncern Naftowy ORLEN SA | | | 859 | | | | 22,082 | |
Polskie Gornictwo Naftowe i Gazownictwo SA | | | 4,575 | | | | 6,956 | |
Powszechna Kasa Oszczednosci Bank Polski SA | | | 2,359 | | | | 24,276 | |
Powszechny Zaklad Ubezpieczen SA | | | 1,648 | | | | 18,142 | |
Santander Bank Polska SA | | | 83 | | | | 8,629 | |
| | | | | | | | |
| | | | | | | 141,103 | |
| | |
Portugal 0.1% | | | | | | | | |
EDP - Energias de Portugal SA | | | 6,603 | | | | 25,054 | |
Galp Energia SGPS SA | | | 1,424 | | | | 23,906 | |
Jeronimo Martins SGPS SA | | | 665 | | | | 10,852 | |
| | | | | | | | |
| | | | | | | 59,812 | |
| | |
Russia 0.1% | | | | | | | | |
Evraz PLC | | | 1,526 | | | | 12,599 | |
Polymetal International PLC | | | 738 | | | | 7,778 | |
VEON Ltd. | | | 1,828 | | | | 4,421 | |
| | | | | | | | |
| | | | | | | 24,798 | |
| | |
Singapore 1.2% | | | | | | | | |
Ascendas Real Estate Investment Trust, REIT | | | 7,000 | | | | 15,441 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Singapore (cont’d.) | | | | | | | | |
BOC Aviation Ltd., 144A | | | 500 | | | $ | 4,307 | |
CapitaLand Commercial Trust, REIT | | | 6,597 | | | | 9,416 | |
CapitaLand Ltd. | | | 7,100 | | | | 18,438 | |
CapitaLand Mall Trust, REIT | | | 7,300 | | | | 12,989 | |
City Developments Ltd. | | | 1,400 | | | | 9,200 | |
ComfortDelGro Corp. Ltd. | | | 5,500 | | | | 10,896 | |
DBS Group Holdings Ltd. | | | 5,032 | | | | 104,613 | |
Frasers Property Ltd. | | | 900 | | | | 1,232 | |
Genting Singapore Ltd. | | | 16,600 | | | | 12,041 | |
Golden Agri-Resources Ltd. | | | 17,800 | | | | 3,794 | |
Jardine Cycle & Carriage Ltd. | | | 240 | | | | 6,256 | |
Keppel Corp. Ltd. | | | 4,000 | | | | 19,915 | |
Keppel REIT | | | 5,400 | | | | 4,838 | |
Mapletree Commercial Trust, REIT | | | 5,300 | | | | 7,520 | |
Mapletree Industrial Trust, REIT | | | 4,300 | | | | 6,515 | |
Mapletree Logistics Trust, REIT | | | 6,700 | | | | 7,291 | |
Mapletree North Asia Commercial Trust, REIT | | | 5,800 | | | | 5,796 | |
Olam International Ltd. | | | 2,400 | | | | 3,495 | |
Oversea-Chinese Banking Corp. Ltd. | | | 9,314 | | | | 82,897 | |
SATS Ltd. | | | 1,600 | | | | 6,156 | |
Sembcorp Industries Ltd. | | | 2,500 | | | | 4,897 | |
Sembcorp Marine Ltd.* | | | 1,800 | | | | 2,265 | |
SIA Engineering Co. Ltd. | | | 600 | | | | 1,103 | |
Singapore Airlines Ltd. | | | 1,500 | | | | 10,696 | |
Singapore Exchange Ltd. | | | 2,300 | | | | 12,484 | |
Singapore Post Ltd. | | | 4,200 | | | | 3,211 | |
Singapore Press Holdings Ltd. | | | 4,300 | | | | 7,944 | |
Singapore Technologies Engineering Ltd. | | | 4,500 | | | | 13,112 | |
Singapore Telecommunications Ltd. | | | 20,800 | | | | 48,501 | |
StarHub Ltd. | | | 1,200 | | | | 1,369 | |
Suntec Real Estate Investment Trust, REIT | | | 5,500 | | | | 7,479 | |
United Overseas Bank Ltd. | | | 3,557 | | | | 72,721 | |
UOL Group Ltd. | | | 1,300 | | | | 7,257 | |
Venture Corp. Ltd. | | | 700 | | | | 8,732 | |
Wilmar International Ltd. | | | 5,700 | | | | 15,239 | |
Wing Tai Holdings Ltd. | | | 300 | | | | 453 | |
| | | | | | | | |
| | | | | | | 570,509 | |
| | |
South Africa 0.2% | | | | | | | | |
Anglo American PLC | | | 2,756 | | | | 71,558 | |
Investec PLC | | | 1,927 | | | | 12,223 | |
Mediclinic International PLC | | | 1,083 | | | | 4,853 | |
| | | | | | | | |
| | | | | | | 88,634 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 33 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea 3.9% | | | | | | | | |
Amorepacific Corp. | | | 86 | | | $ | 15,329 | |
AMOREPACIFIC Group | | | 80 | | | | 5,162 | |
BGF Co. Ltd. | | | 232 | | | | 1,637 | |
BGF retail Co. Ltd. | | | 17 | | | | 3,184 | |
BNK Financial Group, Inc. | | | 773 | | | | 4,639 | |
Celltrion Healthcare Co. Ltd.* | | | 136 | | | | 8,826 | |
Celltrion, Inc.* | | | 227 | | | | 41,328 | |
Cheil Worldwide, Inc. | | | 191 | | | | 4,164 | |
CJ CheilJedang Corp. | | | 21 | | | | 5,667 | |
CJ Corp. | | | 34 | | | | 3,478 | |
CJ ENM Co. Ltd. | | | 27 | | | | 5,059 | |
CJ Logistics Corp.* | | | 20 | | | | 2,701 | |
Daelim Industrial Co. Ltd. | | | 74 | | | | 6,145 | |
Daewoo Engineering & Construction Co. Ltd.* | | | 483 | | | | 2,089 | |
Daewoo Shipbuilding & Marine Engineering Co. Ltd.* | | | 130 | | | | 3,237 | |
DB Insurance Co. Ltd. | | | 124 | | | | 7,255 | |
DGB Financial Group, Inc. | | | 416 | | | | 2,996 | |
Dongsuh Cos., Inc. | | | 96 | | | | 1,607 | |
Doosan Bobcat, Inc. | | | 66 | | | | 1,805 | |
Doosan Corp. | | | 20 | | | | 1,756 | |
Doosan Heavy Industries & Construction Co. Ltd.* | | | 302 | | | | 1,809 | |
Doosan Infracore Co. Ltd.* | | | 367 | | | | 2,288 | |
E-MART, Inc. | | | 53 | | | | 7,810 | |
Fila Korea Ltd. | | | 144 | | | | 10,192 | |
GS Engineering & Construction Corp. | | | 152 | | | | 5,296 | |
GS Holdings Corp. | | | 136 | | | | 6,055 | |
GS Retail Co. Ltd. | | | 72 | | | | 2,414 | |
Hana Financial Group, Inc. | | | 827 | | | | 26,071 | |
Hankook Tire Co. Ltd. | | | 197 | | | | 6,698 | |
Hanmi Pharm Co. Ltd. | | | 19 | | | | 7,079 | |
Hanmi Science Co. Ltd | | | 36 | | | | 2,317 | |
Hanon Systems | | | 554 | | | | 5,958 | |
Hanssem Co. Ltd. | | | 27 | | | | 2,383 | |
Hanwha Aerospace Co. Ltd.* | | | 98 | | | | 2,596 | |
Hanwha Chemical Corp. | | | 219 | | | | 3,870 | |
Hanwha Corp. | | | 134 | | | | 3,396 | |
Hanwha Life Insurance Co. Ltd. | | | 647 | | | | 2,210 | |
HDC Holdings Co. Ltd. | | | 102 | | | | 1,504 | |
HDC Hyundai DevelopmentCo-Engineering & Construction | | | 83 | | | | 3,318 | |
Helixmith Co. Ltd.* | | | 37 | | | | 8,267 | |
Hite Jinro Co. Ltd. | | | 102 | | | | 1,774 | |
HLB, Inc.* | | | 96 | | | | 6,915 | |
Hotel Shilla Co. Ltd. | | | 82 | | | | 8,109 | |
Hyosung TNC Co. Ltd. | | | 11 | | | | 1,564 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
Hyundai Construction Equipment Co. Ltd. | | | 40 | | | $ | 1,682 | |
Hyundai Department Store Co. Ltd. | | | 42 | | | | 3,658 | |
Hyundai Engineering & Construction Co. Ltd. | | | 191 | | | | 8,626 | |
Hyundai Glovis Co. Ltd. | | | 49 | | | | 6,690 | |
Hyundai Heavy Industries Co. Ltd.* | | | 127 | | | | 13,574 | |
Hyundai Heavy Industries Holdings Co. Ltd. | | | 33 | | | | 9,660 | |
Hyundai Marine & Fire Insurance Co. Ltd. | | | 164 | | | | 5,366 | |
Hyundai Mipo Dockyard Co. Ltd. | | | 55 | | | | 2,652 | |
Hyundai Mobis Co. Ltd. | | | 188 | | | | 37,404 | |
Hyundai Motor Co. | | | 392 | | | | 46,605 | |
Hyundai Steel Co. | | | 197 | | | | 7,816 | |
Hyundai Wia Corp. | | | 47 | | | | 2,009 | |
Industrial Bank of Korea | | | 695 | | | | 8,421 | |
Kakao Corp. | | | 143 | | | | 14,719 | |
Kangwon Land, Inc. | | | 281 | | | | 8,180 | |
KB Financial Group, Inc. | | | 1,119 | | | | 44,164 | |
KCC Corp. | | | 15 | | | | 4,557 | |
KEPCO Plant Service & Engineering Co. Ltd. | | | 58 | | | | 1,820 | |
Kia Motors Corp. | | | 710 | | | | 27,577 | |
Korea Aerospace Industries Ltd. | | | 209 | | | | 6,274 | |
Korea Electric Power Corp.* | | | 732 | | | | 17,733 | |
Korea Gas Corp. | | | 52 | | | | 2,056 | |
Korea Investment Holdings Co. Ltd. | | | 101 | | | | 5,919 | |
Korea Zinc Co. Ltd. | | | 30 | | | | 11,620 | |
Korean Air Lines Co. Ltd. | | | 128 | | | | 3,641 | |
KT&G Corp. | | | 309 | | | | 26,961 | |
Kumho Petrochemical Co. Ltd. | | | 48 | | | | 3,776 | |
LG Chem Ltd. | | | 131 | | | | 40,592 | |
LG Corp. | | | 248 | | | | 15,502 | |
LG Display Co. Ltd.* | | | 683 | | | | 11,660 | |
LG Electronics, Inc. | | | 297 | | | | 19,290 | |
LG Household & Health Care Ltd. | | | 24 | | | | 29,251 | |
LG Uplus Corp. | | | 510 | | | | 6,250 | |
Lotte Chemical Corp. | | | 39 | | | | 8,980 | |
Lotte Chilsung Beverage Co. Ltd. | | | 1 | | | | 1,479 | |
Lotte Corp. | | | 157 | | | | 6,586 | |
LOTTE Fine Chemical Co. Ltd. | | | 48 | | | | 1,980 | |
Lotte Shopping Co. Ltd. | | | 30 | | | | 4,576 | |
LS Corp. | | | 37 | | | | 1,570 | |
Mando Corp. | | | 90 | | | | 2,576 | |
Medy-Tox, Inc. | | | 11 | | | | 5,274 | |
Mirae Asset Daewoo Co. Ltd. | | | 1,010 | | | | 6,753 | |
NAVER Corp. | | | 374 | | | | 38,319 | |
NCSoft Corp. | | | 47 | | | | 21,205 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 35 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
Netmarble Corp., 144A* | | | 47 | | | $ | 5,136 | |
NH Investment & Securities Co. Ltd. | | | 343 | | | | 4,041 | |
NHN Corp.* | | | 27 | | | | 1,943 | |
NongShim Co. Ltd. | | | 9 | | | | 2,161 | |
OCI Co. Ltd. | | | 48 | | | | 3,833 | |
Orion Corp. | | | 58 | | | | 4,816 | |
Ottogi Corp. | | | 4 | | | | 2,486 | |
Paradise Co. Ltd. | | | 124 | | | | 1,974 | |
POSCO | | | 195 | | | | 42,638 | |
POSCO Chemical Co. Ltd. | | | 57 | | | | 2,805 | |
Posco International Corp. | | | 122 | | | | 1,914 | |
S-1 Corp. | | | 50 | | | | 4,201 | |
Samsung Biologics Co. Ltd., 144A* | | | 36 | | | | 10,498 | |
Samsung C&T Corp. | | | 230 | | | | 20,176 | |
Samsung Card Co. Ltd. | | | 83 | | | | 2,638 | |
Samsung Electro-Mechanics Co. Ltd. | | | 154 | | | | 14,333 | |
Samsung Electronics Co. Ltd. | | | 13,159 | | | | 516,748 | |
Samsung Engineering Co. Ltd.* | | | 419 | | | | 6,129 | |
Samsung Fire & Marine Insurance Co. Ltd. | | | 91 | | | | 23,676 | |
Samsung Heavy Industries Co. Ltd.* | | | 1,155 | | | | 8,144 | |
Samsung Life Insurance Co. Ltd. | | | 171 | | | | 12,419 | |
Samsung SDI Co. Ltd. | | | 145 | | | | 29,392 | |
Samsung SDS Co. Ltd. | | | 92 | | | | 17,100 | |
Samsung Securities Co. Ltd. | | | 167 | | | | 5,101 | |
Shinhan Financial Group Co. Ltd. | | | 1,296 | | | | 48,897 | |
Shinsegae, Inc. | | | 18 | | | | 5,241 | |
SillaJen, Inc.* | | | 138 | | | | 7,756 | |
SK Holdings Co. Ltd. | | | 90 | | | | 19,766 | |
SK Hynix, Inc. | | | 1,441 | | | | 97,417 | |
SK Innovation Co. Ltd. | | | 157 | | | | 24,552 | |
SK Networks Co. Ltd. | | | 404 | | | | 2,030 | |
SK Telecom Co. Ltd. | | | 68 | | | | 14,429 | |
SKC Co. Ltd. | | | 52 | | | | 1,591 | |
S-Oil Corp. | | | 108 | | | | 8,522 | |
Ssangyong Cement Industrial Co. Ltd. | | | 296 | | | | 1,465 | |
Woongjin Coway Co. Ltd. | | | 170 | | | | 12,849 | |
Woori Financial Group, Inc. | | | 1,528 | | | | 18,113 | |
Yuhan Corp. | | | 24 | | | | 5,045 | |
| | | | | | | | |
| | | | | | | 1,824,935 | |
| | |
Spain 2.6% | | | | | | | | |
Acciona SA | | | 54 | | | | 6,268 | |
Acerinox SA | | | 484 | | | | 5,047 | |
ACS Actividades de Construccion y Servicios SA | | | 688 | | | | 31,676 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Spain (cont’d.) | | | | | | | | |
Aena SME SA, 144A | | | 175 | | | $ | 32,550 | |
Amadeus IT Group SA | | | 1,157 | | | | 92,220 | |
Banco Bilbao Vizcaya Argentaria SA | | | 18,638 | | | | 113,771 | |
Banco de Sabadell SA | | | 15,414 | | | | 17,972 | |
Banco Santander SA | | | 45,016 | | | | 228,920 | |
Bankia SA | | | 3,609 | | | | 10,028 | |
Bankinter SA | | | 1,967 | | | | 15,754 | |
CaixaBank SA | | | 9,934 | | | | 31,774 | |
Cellnex Telecom SA, 144A* | | | 572 | | | | 17,642 | |
Corp. Financiera Alba SA | | | 52 | | | | 2,676 | |
EDP Renovaveis SA | | | 352 | | | | 3,486 | |
Enagas SA | | | 619 | | | | 17,655 | |
Endesa SA | | | 927 | | | | 23,106 | |
Ferrovial SA | | | 1,366 | | | | 33,712 | |
Fomento de Construcciones y Contratas SA* | | | 171 | | | | 2,093 | |
Grifols SA | | | 950 | | | | 26,423 | |
Iberdrola SA | | | 17,155 | | | | 156,130 | |
Industria de Diseno Textil SA | | | 2,978 | | | | 90,313 | |
Inmobiliaria Colonial Socimi SA, REIT | | | 875 | | | | 9,426 | |
Mapfre SA | | | 2,571 | | | | 7,732 | |
Merlin Properties Socimi SA, REIT | | | 930 | | | | 12,691 | |
Naturgy Energy Group SA | | | 863 | | | | 24,555 | |
Red Electrica Corp. SA | | | 1,193 | | | | 24,803 | |
Repsol SA | | | 3,786 | | | | 64,359 | |
Siemens Gamesa Renewable Energy SA | | | 604 | | | | 10,886 | |
Telefonica SA | | | 12,724 | | | | 106,408 | |
Zardoya Otis SA | | | 409 | | | | 3,309 | |
| | | | | | | | |
| | | | | | | 1,223,385 | |
| | |
Sweden 2.3% | | | | | | | | |
Alfa Laval AB | | | 875 | | | | 20,384 | |
Assa Abloy AB (Class B Stock) | | | 2,571 | | | | 55,054 | |
Atlas Copco AB (Class A Stock) | | | 1,743 | | | | 54,345 | |
Atlas Copco AB (Class B Stock) | | | 1,051 | | | | 30,021 | |
Axis Communications AB^ | | | 40 | | | | 1,522 | |
Boliden AB | | | 778 | | | | 23,243 | |
Castellum AB | | | 746 | | | | 13,420 | |
Electrolux AB (Class B Stock) | | | 693 | | | | 17,050 | |
Elekta AB (Class B Stock) | | | 1,045 | | | | 12,404 | |
Epiroc AB (Class A Stock)* | | | 1,716 | | | | 17,778 | |
Epiroc AB (Class B Stock)* | | | 982 | | | | 9,737 | |
Essity AB (Class B Stock) | | | 1,683 | | | | 50,049 | |
Fastighets AB Balder (Class B Stock)* | | | 279 | | | | 8,836 | |
Hennes & Mauritz AB (Class B Stock) | | | 2,428 | | | | 42,345 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 37 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Sweden (cont’d.) | | | | | | | | |
Hexagon AB (Class B Stock) | | | 711 | | | $ | 38,910 | |
Husqvarna AB (Class B Stock) | | | 1,150 | | | | 10,527 | |
ICA Gruppen AB | | | 235 | | | | 8,499 | |
Industrivarden AB (Class A Stock) | | | 554 | | | | 12,848 | |
Industrivarden AB (Class C Stock) | | | 441 | | | | 9,939 | |
Investment AB Latour (Class B Stock) | | | 312 | | | | 4,428 | |
Investor AB (Class A Stock) | | | 371 | | | | 17,659 | |
Investor AB (Class B Stock) | | | 1,256 | | | | 60,011 | |
Kinnevik AB (Class B Stock) | | | 662 | | | | 19,315 | |
L E Lundbergforetagen AB (Class B Stock) | | | 192 | | | | 6,579 | |
Lundin Petroleum AB | | | 495 | | | | 16,216 | |
Nibe Industrier AB (Class B Stock) | | | 870 | | | | 11,717 | |
Saab AB (Class B Stock) | | | 260 | | | | 8,574 | |
Sandvik AB | | | 3,035 | | | | 56,338 | |
Securitas AB (Class B Stock) | | | 895 | | | | 15,665 | |
Skandinaviska Enskilda Banken AB (Class A Stock) | | | 4,026 | | | | 38,509 | |
Skanska AB (Class B Stock) | | | 1,001 | | | | 17,430 | |
SKF AB (Class B Stock) | | | 1,043 | | | | 19,353 | |
Svenska Cellulosa AB SCA (Class A Stock) | | | 107 | | | | 1,049 | |
Svenska Cellulosa AB SCA (Class B Stock) | | | 1,675 | | | | 14,650 | |
Svenska Handelsbanken AB (Class A Stock) | | | 4,109 | | | | 44,939 | |
Svenska Handelsbanken AB (Class B Stock) | | | 150 | | | | 1,633 | |
Swedbank AB (Class A Stock) | | | 2,788 | | | | 45,208 | |
Swedish Match AB | | | 471 | | | | 22,986 | |
Swedish Orphan Biovitrum AB* | | | 487 | | | | 8,887 | |
Tele2 AB (Class B Stock) | | | 1,464 | | | | 19,582 | |
Telefonaktiebolaget LM Ericsson (Class A Stock) | | | 104 | | | | 1,036 | |
Telefonaktiebolaget LM Ericsson (Class B Stock) | | | 8,261 | | | | 81,859 | |
Telia Co. AB | | | 7,722 | | | | 32,918 | |
Trelleborg AB (Class B Stock) | | | 684 | | | | 11,334 | |
Volvo AB (Class B Stock) | | | 4,142 | | | | 66,530 | |
| | | | | | | | |
| | | | | | | 1,081,316 | |
| | |
Switzerland 7.8% | | | | | | | | |
ABB Ltd. | | | 4,990 | | | | 103,416 | |
Adecco Group AG | | | 438 | | | | 25,276 | |
Alcon, Inc.* | | | 1,213 | | | | 69,855 | |
Baloise Holding AG | | | 133 | | | | 22,848 | |
Banque Cantonale Vaudoise | | | 8 | | | | 6,321 | |
Barry Callebaut AG | | | 6 | | | | 11,017 | |
Chocoladefabriken Lindt & Spruengli AG | | | 3 | | | | 19,942 | |
Cie Financiere Richemont SA | | | 1,427 | | | | 104,503 | |
Clariant AG* | | | 589 | | | | 12,106 | |
Coca-Cola HBC AG* | | | 551 | | | | 19,714 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Switzerland (cont’d.) | | | | | | | | |
Credit Suisse Group AG* | | | 7,122 | | | $ | 95,236 | |
DKSH Holding AG | | | 87 | | | | 5,355 | |
Dufry AG* | | | 92 | | | | 9,000 | |
EMS-Chemie Holding AG | | | 21 | | | | 12,755 | |
Flughafen Zurich AG | | | 59 | | | | 9,740 | |
Geberit AG | | | 101 | | | | 42,489 | |
Georg Fischer AG | | | 12 | | | | 11,725 | |
Givaudan SA | | | 26 | | | | 67,479 | |
Glencore PLC* | | | 31,600 | | | | 126,314 | |
Helvetia Holding AG | | | 19 | | | | 12,094 | |
Julius Baer Group Ltd.* | | | 638 | | | | 30,859 | |
Kuehne + Nagel International AG | | | 141 | | | | 20,518 | |
LafargeHolcim Ltd.* | | | 1,343 | | | | 69,280 | |
Logitech International SA | | | 427 | | | | 16,654 | |
Lonza Group AG* | | | 211 | | | | 65,599 | |
Nestle SA | | | 8,431 | | | | 813,070 | |
Novartis AG | | | 6,094 | | | | 499,004 | |
OC Oerlikon Corp. AG | | | 574 | | | | 7,532 | |
Pargesa Holding SA | | | 104 | | | | 8,198 | |
Partners Group Holding AG | | | 46 | | | | 34,729 | |
PSP Swiss Property AG | | | 116 | | | | 11,853 | |
Roche Holding AG | | | 1,945 | | | | 514,098 | |
Roche Holding AG (XBRN) | | | 79 | | | | 20,678 | |
Schindler Holding AG | | | 54 | | | | 11,507 | |
Schindler Holding AG, (Part. Cert.) | | | 112 | | | | 24,276 | |
SGS SA | | | 15 | | | | 39,664 | |
Sika AG | | | 392 | | | | 60,299 | |
Sonova Holding AG | | | 147 | | | | 29,693 | |
STMicroelectronics NV | | | 1,771 | | | | 32,627 | |
Straumann Holding AG | | | 30 | | | | 24,329 | |
Sulzer AG | | | 31 | | | | 3,280 | |
Swatch Group AG (The) | | | 85 | | | | 26,053 | |
Swatch Group AG (The) | | | 135 | | | | 7,959 | |
Swiss Life Holding AG* | | | 97 | | | | 45,788 | |
Swiss Prime Site AG* | | | 214 | | | | 17,208 | |
Swiss Re AG | | | 852 | | | | 82,114 | |
Swisscom AG | | | 72 | | | | 33,654 | |
Temenos AG* | | | 163 | | | | 27,245 | |
UBS Group AG* | | | 9,874 | | | | 132,900 | |
Vifor Pharma AG | | | 126 | | | | 16,522 | |
Zurich Insurance Group AG | | | 421 | | | | 134,522 | |
| | | | | | | | |
| | | | | | | 3,648,897 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 39 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Taiwan 0.0% | | | | | | | | |
FIT Hon Teng Ltd., 144A | | | 2,000 | | | $ | 1,042 | |
| | |
United Arab Emirates 0.0% | | | | | | | | |
NMC Health PLC | | | 238 | | | | 8,789 | |
| | |
United Kingdom 12.7% | | | | | | | | |
3i Group PLC | | | 2,670 | | | | 37,291 | |
Admiral Group PLC | | | 589 | | | | 16,952 | |
Ashmore Group PLC | | | 999 | | | | 5,992 | |
Ashtead Group PLC | | | 1,370 | | | | 38,023 | |
Associated British Foods PLC | | | 957 | | | | 31,995 | |
AstraZeneca PLC | | | 3,673 | | | | 273,781 | |
Auto Trader Group PLC, 144A | | | 2,686 | | | | 19,842 | |
AVEVA Group PLC | | | 170 | | | | 7,421 | |
Aviva PLC | | | 10,940 | | | | 61,337 | |
B&M European Value Retail SA | | | 2,246 | | | | 11,577 | |
Babcock International Group PLC | | | 745 | | | | 5,114 | |
BAE Systems PLC | | | 8,846 | | | | 56,979 | |
Barclays PLC | | | 47,622 | | | | 102,371 | |
Barratt Developments PLC | | | 2,740 | | | | 21,570 | |
Bellway PLC | | | 361 | | | | 14,679 | |
Berkeley Group Holdings PLC | | | 340 | | | | 16,689 | |
BP PLC | | | 55,444 | | | | 404,612 | |
British American Tobacco PLC | | | 6,375 | | | | 249,309 | |
British Land Co. PLC (The), REIT | | | 2,706 | | | | 20,992 | |
BT Group PLC | | | 23,214 | | | | 69,478 | |
Bunzl PLC | | | 925 | | | | 27,912 | |
Burberry Group PLC | | | 1,148 | | | | 30,225 | |
Capital & Counties Properties PLC | | | 1,926 | | | | 6,094 | |
Centrica PLC | | | 15,771 | | | | 21,943 | |
Cineworld Group PLC | | | 2,674 | | | | 11,124 | |
CNH Industrial NV | | | 2,797 | | | | 30,519 | |
Cobham PLC* | | | 6,222 | | | | 9,346 | |
Compass Group PLC | | | 4,418 | | | | 100,407 | |
ConvaTec Group PLC, 144A | | | 3,762 | | | | 6,812 | |
Croda International PLC | | | 347 | | | | 23,304 | |
CYBG PLC | | | 3,261 | | | | 8,675 | |
DCC PLC | | | 273 | | | | 24,430 | |
Derwent London PLC, REIT | | | 294 | | | | 12,171 | |
Diageo PLC | | | 6,627 | | | | 279,649 | |
Direct Line Insurance Group PLC | | | 3,801 | | | | 16,355 | |
DS Smith PLC | | | 3,591 | | | | 16,772 | |
easyJet PLC | | | 569 | | | | 8,639 | |
Experian PLC | | | 2,556 | | | | 74,325 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
United Kingdom (cont’d.) | | | | | | | | |
Fiat Chrysler Automobiles NV | | | 3,112 | | | $ | 48,278 | |
G4S PLC | | | 4,334 | | | | 12,241 | |
GlaxoSmithKline PLC | | | 13,645 | | | | 280,444 | |
GVC Holdings PLC | | | 1,526 | | | | 13,017 | |
Halma PLC | | | 1,047 | | | | 24,612 | |
Hammerson PLC, REIT | | | 2,338 | | | | 9,831 | |
Hargreaves Lansdown PLC | | | 732 | | | | 21,569 | |
Hiscox Ltd. | | | 763 | | | | 16,681 | |
Howden Joinery Group PLC | | | 1,779 | | | | 11,809 | |
HSBC Holdings PLC | | | 56,271 | | | | 490,729 | |
IMI PLC | | | 692 | | | | 9,497 | |
Imperial Brands PLC | | | 2,642 | | | | 84,098 | |
Inchcape PLC | | | 1,239 | | | | 9,959 | |
Informa PLC | | | 3,588 | | | | 36,476 | |
InterContinental Hotels Group PLC | | | 498 | | | | 32,356 | |
International Consolidated Airlines Group SA | | | 2,812 | | | | 19,881 | |
Intertek Group PLC | | | 446 | | | | 31,206 | |
ITV PLC | | | 10,487 | | | | 18,705 | |
J Sainsbury PLC | | | 4,407 | | | | 12,801 | |
JD Sports Fashion PLC | | | 976 | | | | 8,038 | |
John Wood Group PLC | | | 1,881 | | | | 11,539 | |
Johnson Matthey PLC | | | 534 | | | | 23,326 | |
Just Eat PLC* | | | 1,662 | | | | 15,193 | |
Kingfisher PLC | | | 5,849 | | | | 20,131 | |
Land Securities Group PLC, REIT | | | 1,992 | | | | 23,996 | |
Legal & General Group PLC | | | 16,402 | | | | 59,667 | |
Lloyds Banking Group PLC | | | 198,382 | | | | 162,494 | |
London Stock Exchange Group PLC | | | 874 | | | | 57,239 | |
Marks & Spencer Group PLC | | | 4,628 | | | | 17,261 | |
Meggitt PLC | | | 2,249 | | | | 16,086 | |
Melrose Industries PLC | | | 13,471 | | | | 35,659 | |
Merlin Entertainments PLC, 144A | | | 2,114 | | | | 10,106 | |
Micro Focus International PLC | | | 968 | | | | 24,460 | |
Mondi PLC | | | 1,019 | | | | 22,408 | |
National Grid PLC | | | 9,510 | | | | 103,851 | |
Next PLC | | | 382 | | | | 28,736 | |
Ocado Group PLC* | | | 1,302 | | | | 23,153 | |
Pearson PLC | | | 2,132 | | | | 23,093 | |
Pennon Group PLC | | | 1,268 | | | | 12,381 | |
Persimmon PLC | | | 887 | | | | 25,956 | |
Phoenix Group Holdings PLC | | | 1,818 | | | | 17,197 | |
Prudential PLC | | | 7,237 | | | | 164,203 | |
Quilter PLC, 144A | | | 5,008 | | | | 9,655 | |
Reckitt Benckiser Group PLC | | | 1,753 | | | | 141,942 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 41 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
United Kingdom (cont’d.) | | | | | | | | |
RELX PLC | | | 5,294 | | | $ | 121,565 | |
Renishaw PLC | | | 91 | | | | 5,364 | |
Rentokil Initial PLC | | | 5,192 | | | | 26,453 | |
Rightmove PLC | | | 2,596 | | | | 18,350 | |
Rolls-Royce Holdings PLC* | | | 4,699 | | | | 56,221 | |
Rolls-Royce Redemable ’C’ Shares | | | 333,629 | | | | 435 | |
Royal Bank of Scotland Group PLC | | | 12,890 | | | | 40,440 | |
Royal Mail PLC | | | 2,572 | | | | 8,503 | |
RPC Group PLC | | | 1,131 | | | | 11,666 | |
RSA Insurance Group PLC | | | 2,877 | | | | 20,361 | |
Sage Group PLC (The) | | | 3,036 | | | | 28,777 | |
Schroders PLC | | | 312 | | | | 12,919 | |
Segro PLC, REIT | | | 2,987 | | | | 26,441 | |
Severn Trent PLC | | | 668 | | | | 17,780 | |
Smith & Nephew PLC | | | 2,425 | | | | 46,863 | |
Smiths Group PLC | | | 1,105 | | | | 21,989 | |
Spirax-Sarco Engineering PLC | | | 209 | | | | 22,529 | |
SSE PLC | | | 2,847 | | | | 42,517 | |
St. James’s Place PLC | | | 1,419 | | | | 20,813 | |
Standard Chartered PLC | | | 7,495 | | | | 68,554 | |
Standard Life Aberdeen PLC | | | 7,122 | | | | 25,940 | |
Subsea 7 SA | | | 749 | | | | 9,550 | |
Tate & Lyle PLC | | | 1,380 | | | | 13,844 | |
Taylor Wimpey PLC | | | 8,848 | | | | 20,979 | |
TechnipFMC PLC | | | 1,285 | | | | 31,757 | |
Tesco PLC | | | 27,132 | | | | 88,552 | |
Travis Perkins PLC | | | 707 | | | | 12,881 | |
Unilever NV, CVA | | | 4,226 | | | | 256,020 | |
Unilever PLC | | | 3,052 | | | | 185,420 | |
United Utilities Group PLC | | | 1,939 | | | | 21,024 | |
Vodafone Group PLC | | | 74,558 | | | | 138,538 | |
Weir Group PLC (The) | | | 731 | | | | 15,863 | |
Whitbread PLC | | | 529 | | | | 30,789 | |
WM Morrison Supermarkets PLC | | | 5,927 | | | | 16,718 | |
WPP PLC | | | 3,473 | | | | 43,521 | |
| | | | | | | | |
| | | | | | | 5,946,602 | |
| | |
United States 0.2% | | | | | | | | |
Carnival PLC | | | 472 | | | | 24,889 | |
Ferguson PLC | | | 650 | | | | 46,212 | |
QIAGEN NV* | | | 607 | | | | 23,514 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
United States (cont’d.) | | | | | | | | |
Samsonite International SA, 144A* | | | 3,900 | | | $ | 11,243 | |
Sims Metal Management Ltd. | | | 452 | | | | 3,288 | |
| | | | | | | | |
| | | | | | | 109,146 | |
| | | | | | | | |
TOTAL COMMON STOCKS
(cost $40,429,179) | | | | | | | 43,004,491 | |
| | | | | | | | |
| | |
EXCHANGE-TRADED FUND 3.1% | | | | | | | | |
| | |
United States | | | | | | | | |
iShares MSCI EAFE ETF(a)
(cost $1,339,395) | | | 21,600 | | | | 1,442,016 | |
| | | | | | | | |
| | |
PREFERRED STOCKS 0.7% | | | | | | | | |
| | |
Germany 0.5% | | | | | | | | |
Bayerische Motoren Werke AG (PRFC) | | | 155 | | | | 11,479 | |
FUCHS PETROLUB SE (PRFC) | | | 200 | | | | 8,718 | |
Henkel AG & Co. KGaA (PRFC) | | | 486 | | | | 49,247 | |
Porsche Automobil Holding SE (PRFC) | | | 423 | | | | 29,453 | |
RWE AG (PRFC) | | | 103 | | | | 2,631 | |
Sartorius AG (PRFC) | | | 99 | | | | 18,181 | |
Volkswagen AG (PRFC) | | | 514 | | | | 89,579 | |
| | | | | | | | |
| | | | | | | 209,288 | |
| | |
South Korea 0.2% | | | | | | | | |
Amorepacific Corp. (PRFC) | | | 29 | | | | 2,905 | |
CJ CheilJedang Corp. (PRFC) | | | 14 | | | | 1,657 | |
Hanwha Corp. (PRFC) | | | 128 | | | | 1,616 | |
Hyundai Motor Co. (2nd PRFC) | | | 96 | | | | 7,197 | |
Hyundai Motor Co. (PRFC) | | | 62 | | | | 4,311 | |
LG Chem Ltd. (PRFC) | | | 21 | | | | 3,608 | |
LG Electronics, Inc. (PRFC) | | | 64 | | | | 1,664 | |
LG Household & Health Care Ltd. (PRFC) | | | 6 | | | | 4,161 | |
Mirae Asset Daewoo Co. Ltd. (PRFC) | | | 512 | | | | 1,740 | |
Samsung Electronics Co. Ltd. (PRFC) | | | 2,227 | | | | 70,787 | |
Samsung Fire & Marine Insurance Co. Ltd. (PRFC) | | | 9 | | | | 1,521 | |
| | | | | | | | |
| | | | | | | 101,167 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 43 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
| | | | | | | | | | | | | | | | |
| Description | | | | | | | | Shares | | | Value | |
PREFERRED STOCKS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Spain 0.0% | | | | | | | | | | | | | | | | |
Grifols SA (Class B Stock) (PRFC) | | | | | | | | | | | 755 | | | $ | 14,549 | |
| | | | | | | | | | | | | | | | |
TOTAL PREFERRED STOCKS
(cost $308,941) | | | | | | | | | | | | | | | 325,004 | |
| | | | | | | | | | | | | | | | |
TOTAL LONG-TERM INVESTMENTS
(cost $42,077,515) | | | | | | | | | | | | | | | 44,771,511 | |
| | | | | | | | | | | | | | | | |
| | | | |
SHORT-TERM INVESTMENTS 4.7% | | | | | | | | | | | | | | | | |
| | | | |
AFFILIATED MUTUAL FUNDS 4.3% | | | | | | | | | | | | | | | | |
PGIM Core Ultra Short Bond Fund(w) | | | | | | | | | | | 615,698 | | | | 615,698 | |
PGIM Institutional Money Market Fund
(cost $1,430,615; includes $1,430,108 of cash collateral for securities on loan)(b)(w) | | | | | | | | | | | 1,430,328 | | | | 1,430,757 | |
| | | | | | | | | | | | | | | | |
TOTAL AFFILIATED MUTUAL FUNDS
(cost $2,046,313) | | | | | | | | | | | | | | | 2,046,455 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | | |
| | | | |
U.S. TREASURY OBLIGATION(k)(n) 0.4% | | | | | | | | | | | | | | | | |
U.S. Treasury Bills
(cost $179,396) | | | 2.430 | % | | | 06/20/19 | | | | 180 | | | | 179,405 | |
| | | | | | | | | | | | | | | | |
TOTAL SHORT-TERM INVESTMENTS
(cost $2,225,709) | | | | | | | | | | | | | | | 2,225,860 | |
| | | | | | | | | | | | | | | | |
TOTAL INVESTMENTS 100.0%
(cost $44,303,224) | | | | | | | | | | | | | | | 46,997,371 | |
Liabilities in excess of other assets(z) (0.0)% | | | | | | | | | | | | | | | (4,025 | ) |
| | | | | | | | | | | | | | | | |
NET ASSETS 100.0% | | | | | | | | | | | | | | $ | 46,993,346 | |
| | | | | | | | | | | | | | | | |
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.
CVA—Certificate Van Aandelen (Bearer)
EAFE—Europe, Australasia, Far East
ETF—Exchange-Traded Fund
LIBOR—London Interbank Offered Rate
MSCI—Morgan Stanley Capital International
PRFC—Preference Shares
REIT(s)—Real Estate Investment Trust(s)
RSP—Savings Shares
See Notes to Financial Statements.
UTS—Unit Trust Security
XBRN—Berne Stock Exchange
| * | Non-income producing security. |
| # | Principal amount is shown in U.S. dollars unless otherwise stated. |
| ^ | Indicates a Level 3 security. The aggregate value of Level 3 securities is $1,589 and 0.0% of net assets. |
| (a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $1,401,960; cash collateral of $1,430,108 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. |
| (b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
| (n) | Rate shown reflects yield to maturity at purchased date. |
| (w) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Futures contracts outstanding at April 30, 2019:
| | | | | | | | | | | | | | | | |
Number of
Contracts | | | Type | | Expiration
Date | | | Current
Notional
Amount | | | Value/
Unrealized
Appreciation
(Depreciation) | |
| | | | Long Positions: | | | | | | | | | | | | |
| | 1 | | | ASX SPI 200 Index | | | Jun. 2019 | | | $ | 111,100 | | | $ | 1,956 | |
| | 2 | | | CAC40 10 Euro Index | | | Jun. 2019 | | | | 124,419 | | | | 2,367 | |
| | 15 | | | Euro STOXX 50 Index | | | Jun. 2019 | | | | 580,767 | | | | 39,032 | |
| | 4 | | | FTSE 100 Index | | | Jun. 2019 | | | | 384,498 | | | | 17,317 | |
| | 6 | | | Mini MSCI EAFE Index | | | Jun. 2019 | | | | 575,100 | | | | 16,660 | |
| | 1 | | | Nikkei 225 Index | | | Jun. 2019 | | | | 111,875 | | | | 4,200 | |
| | 3 | | | TOPIX Index | | | Jun. 2019 | | | | 434,939 | | | | 2,962 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 84,494 | |
| | | | | | | | | | | | | | | | |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
| | | | | | | | |
Broker | | Cash and/or Foreign Currency | | | Securities Market Value | |
Morgan Stanley & Co. LLC | | $ | — | | | $ | 179,405 | |
| | | | | | | | |
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 QMA International Developed Markets Index Fund | | | 45 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2019 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | |
Australia | | $ | — | | | $ | 3,163,599 | | | $ | — | |
Austria | | | — | | | | 98,251 | | | | — | |
Belgium | | | — | | | | 432,787 | | | | — | |
Cambodia | | | — | | | | 5,135 | | | | — | |
Chile | | | — | | | | 12,539 | | | | — | |
China | | | — | | | | 167,090 | | | | — | |
Denmark | | | — | | | | 699,321 | | | | — | |
Finland | | | — | | | | 494,373 | | | | — | |
France | | | — | | | | 4,318,610 | | | | — | |
Germany | | | — | | | | 3,382,748 | | | | — | |
Hong Kong | | | — | | | | 1,446,022 | | | | 67 | |
Ireland | | | — | | | | 236,688 | | | | — | |
Israel | | | — | | | | 207,250 | | | | — | |
Italy | | | — | | | | 916,140 | | | | — | |
Japan | | | — | | | | 10,271,051 | | | | — | |
Jordan | | | — | | | | 8,573 | | | | — | |
Kazakhstan | | | — | | | | 5,188 | | | | — | |
Luxembourg | | | — | | | | 95,427 | | | | — | |
Macau | | | — | | | | 102,615 | | | | — | |
Mexico | | | — | | | | 4,819 | | | | — | |
Netherlands | | | — | | | | 1,798,037 | | | | — | |
New Zealand | | | — | | | | 126,409 | | | | — | |
Norway | | | — | | | | 282,784 | | | | — | |
Poland | | | — | | | | 141,103 | | | | — | |
Portugal | | | — | | | | 59,812 | | | | — | |
Russia | | | — | | | | 24,798 | | | | — | |
Singapore | | | — | | | | 570,509 | | | | — | |
South Africa | | | — | | | | 88,634 | | | | — | |
South Korea | | | — | | | | 1,824,935 | | | | — | |
Spain | | | — | | | | 1,223,385 | | | | — | |
Sweden | | | — | | | | 1,079,794 | | | | 1,522 | |
Switzerland | | | — | | | | 3,648,897 | | | | — | |
Taiwan | | | — | | | | 1,042 | | | | — | |
United Arab Emirates | | | — | | | | 8,789 | | | | — | |
United Kingdom | | | 24,460 | | | | 5,922,142 | | | | — | |
United States | | | 3,288 | | | | 105,858 | | | | — | |
Exchange-Traded Fund | | | | | | | | | | | | |
United States | | | 1,442,016 | | | | — | | | | — | |
Preferred Stocks | | | | | | | | | | | | |
Germany | | | — | | | | 209,288 | | | | — | |
South Korea | | | 3,356 | | | | 97,811 | | | | — | |
Spain | | | — | | | | 14,549 | | | | — | |
Affiliated Mutual Funds | | | 2,046,455 | | | | — | | | | — | |
U.S. Treasury Obligation | | | — | | | | 179,405 | | | | — | |
See Notes to Financial Statements.
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Other Financial Instruments* | | | | | | | | | | | | |
Futures Contracts | | $ | 84,494 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | |
Total | | $ | 3,604,069 | | | $ | 43,476,207 | | | $ | 1,589 | |
| | | | | | | | | | | | |
| * | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2019 were as follows:
| | | | |
Banks | | | 9.6 | % |
Pharmaceuticals | | | 6.6 | |
Insurance | | | 5.1 | |
Oil, Gas & Consumable Fuels | | | 5.0 | |
Affiliated Mutual Funds (3.0% represents investments purchased with collateral from securities on loan) | | | 4.3 | |
Food Products | | | 3.3 | |
Chemicals | | | 3.2 | |
Automobiles | | | 3.2 | |
Exchange-Traded Fund | | | 3.1 | |
Metals & Mining | | | 3.0 | |
Machinery | | | 2.4 | |
Capital Markets | | | 2.2 | |
Personal Products | | | 2.1 | |
Textiles, Apparel & Luxury Goods | | | 2.0 | |
Beverages | | | 2.0 | |
Electric Utilities | | | 2.0 | |
Technology Hardware, Storage & Peripherals | | | 1.9 | |
Diversified Telecommunication Services | | | 1.8 | |
Real Estate Management & Development | | | 1.7 | |
Industrial Conglomerates | | | 1.7 | |
Electronic Equipment, Instruments & Components | | | 1.6 | |
Health Care Equipment & Supplies | | | 1.6 | |
Wireless Telecommunication Services | | | 1.6 | |
Semiconductors & Semiconductor Equipment | | | 1.4 | |
Software | | | 1.4 | |
Aerospace & Defense | | | 1.3 | |
Road & Rail | | | 1.3 | |
Trading Companies & Distributors | | | 1.3 | |
Electrical Equipment | | | 1.2 | |
Food & Staples Retailing | | | 1.2 | |
Professional Services | | | 1.2 | |
Hotels, Restaurants & Leisure | | | 1.1 | |
| | | | |
Equity Real Estate Investment Trusts (REITs) | | | 1.1 | % |
Auto Components | | | 1.1 | |
Household Durables | | | 1.1 | |
Tobacco | | | 1.1 | |
Construction & Engineering | | | 1.0 | |
Multi-Utilities | | | 1.0 | |
IT Services | | | 0.9 | |
Building Products | | | 0.8 | |
Biotechnology | | | 0.7 | |
Household Products | | | 0.7 | |
Entertainment | | | 0.7 | |
Specialty Retail | | | 0.6 | |
Transportation Infrastructure | | | 0.6 | |
Media | | | 0.5 | |
Commercial Services & Supplies | | | 0.5 | |
Construction Materials | | | 0.5 | |
Gas Utilities | | | 0.5 | |
Diversified Financial Services | | | 0.4 | |
Multiline Retail | | | 0.4 | |
U.S. Treasury Obligation | | | 0.4 | |
Communications Equipment | | | 0.4 | |
Air Freight & Logistics | | | 0.4 | |
Health Care Providers & Services | | | 0.3 | |
Interactive Media & Services | | | 0.3 | |
Paper & Forest Products | | | 0.3 | |
Internet & Direct Marketing Retail | | | 0.3 | |
Leisure Products | | | 0.3 | |
Containers & Packaging | | | 0.2 | |
Energy Equipment & Services | | | 0.2 | |
Life Sciences Tools & Services | | | 0.1 | |
Marine | | | 0.1 | |
Health Care Technology | | | 0.1 | |
Airlines | | | 0.0 | * |
Water Utilities | | | 0.0 | * |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 47 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2019
Industry Classification (continued):
| | | | |
Independent Power & Renewable Electricity Producers | | | 0.0 | *% |
Consumer Finance | | | 0.0 | * |
Distributors | | | 0.0 | * |
Diversified Consumer Services | | | 0.0 | * |
| | | | |
| | | 100.0 | |
Liabilities in excess of other assets | | | 0.0 | * |
| | | | |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity contracts risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2019 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | |
| | | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Statement of
Assets and
Liabilities Location | | Fair
Value | | | Statement of
Assets and
Liabilities Location | | Fair
Value | |
| Equity contracts | | Due from/to
broker—variation
margin futures | | $ | 84,494 | * | | — | | $ | — | |
| | | | | | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2019 are as follows:
| | | | | | | | |
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging
instruments, carried at fair value | | Rights(1) | | | Futures | |
Equity contracts | | $ | (4,202 | ) | | $ | (20,924 | ) |
| | | | | | | | |
| (1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
See Notes to Financial Statements.
| | | | | | | | |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging
instruments, carried at fair value | | Rights(2) | | | Futures | |
Equity contracts | | $ | 63 | | | $ | 175,338 | |
| | | | | | | | |
| (2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2019, the Fund’s average volume of derivative activities is as follows:
| | | | |
| | | Futures
Contracts—
Long
Positions(1) | | |
| | | $2,105,222 | | |
| (1) | Notional Amount in USD. |
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 toset-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 | | $ | 1,401,960 | | | $ | (1,401,960 | ) | | $ | — | |
| | | | | | | | | | | | |
| (1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 49 | |
Statement of Assets & Liabilities(unaudited)
as of April 30, 2019
| | | | |
Assets | | | | |
Investments at value, including securities on loan of $1,401,960: | | | | |
Unaffiliated investments (cost $42,256,911) | | $ | 44,950,916 | |
Affiliated investments (cost $2,046,313) | | | 2,046,455 | |
Foreign currency, at value (cost $1,469,234) | | | 1,473,826 | |
Dividends and interest receivable | | | 189,407 | |
Receivable for Fund shares sold | | | 129,380 | |
Tax reclaim receivable | | | 71,461 | |
Due from Manager | | | 18,649 | |
Receivable for investments sold | | | 1,079 | |
Due from broker—variation margin futures | | | 714 | |
Prepaid expenses | | | 285 | |
| | | | |
Total Assets | | | 48,882,172 | |
| | | | |
| |
Liabilities | | | | |
Payable to broker for collateral for securities on loan | | | 1,430,108 | |
Payable for Fund shares reacquired | | | 193,468 | |
Custodian and accounting fees payable | | | 116,958 | |
Payable for investments purchased | | | 106,212 | |
Accrued expenses and other liabilities | | | 41,687 | |
Deposit due to broker for centrally cleared/exchange-traded derivatives | | | 308 | |
Affiliated transfer agent fee payable | | | 85 | |
| | | | |
Total Liabilities | | | 1,888,826 | |
| | | | |
| |
Net Assets | | $ | 46,993,346 | |
| | | | |
| | | | | |
Net assets were comprised of: | | | | |
Shares of beneficial interest, at par | | $ | 3,962 | |
Paid-in capital in excess of par | | | 44,318,743 | |
Total distributable earnings (loss) | | | 2,670,641 | |
| | | | |
Net assets, April 30, 2019 | | $ | 46,993,346 | |
| | | | |
| |
Class R6 | | | | |
Net asset value, offering price and redemption price per share,
($46,993,346 ÷ 3,962,466 shares of beneficial interest issued and outstanding) | | $ | 11.86 | |
| | | | |
See Notes to Financial Statements.
Statement of Operations(unaudited)
Six Months Ended April 30, 2019
| | | | |
Net Investment Income (Loss) | | | | |
Income | | | | |
Unaffiliated dividend income (net of $68,370 foreign withholding tax) | | $ | 647,943 | |
Affiliated dividend income | | | 8,445 | |
Income from securities lending, net (including affiliated income of $54) | | | 426 | |
| | | | |
Total income | | | 656,814 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 52,841 | |
Custodian and accounting fees | | | 128,303 | |
Audit fee | | | 16,187 | |
Shareholders’ reports | | | 12,476 | |
Legal fees and expenses | | | 8,047 | |
Trustees’ fees | | | 5,992 | |
Transfer agent’s fees and expenses (including affiliated expense of $242) | | | 242 | |
Registration fees | | | 31 | |
Miscellaneous | | | 27,083 | |
| | | | |
Total expenses | | | 251,202 | |
Less: Fee waiver and/or expense reimbursement | | | (187,793 | ) |
| | | | |
Net expenses | | | 63,409 | |
| | | | |
Net investment income (loss) | | | 593,405 | |
| | | | |
| |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $8) | | | (449,533 | ) |
Futures transactions | | | (20,924 | ) |
Foreign currency transactions | | | (6,819 | ) |
| | | | |
| | | (477,276 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $142) | | | 2,749,315 | |
Futures | | | 175,338 | |
Foreign currencies | | | 3,866 | |
| | | | |
| | | 2,928,519 | |
| | | | |
Net gain (loss) on investment and foreign currency transactions | | | 2,451,243 | |
| | | | |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 3,044,648 | |
| | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 51 | |
Statements of Changes in Net Assets(unaudited)
| | | | | | | | |
| | |
| | | Six Months
Ended
April 30, 2019 | | | Year Ended
October 31, 2018 | |
Increase (Decrease) in Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 593,405 | | | $ | 932,556 | |
Net realized gain (loss) on investment and foreign currency transactions | | | (477,276 | ) | | | 62,110 | |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | 2,928,519 | | | | (4,139,387 | ) |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 3,044,648 | | | | (3,144,721 | ) |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class R6 | | | (1,020,616 | ) | | | (776,665 | ) |
| | | | | | | | |
| | |
Fund share transactions | | | | | | | | |
Net proceeds from shares sold | | | 6,247,443 | | | | 18,825,405 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 1,020,616 | | | | 776,665 | |
Cost of shares reacquired | | | (3,727,366 | ) | | | (4,572,348 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 3,540,693 | | | | 15,029,722 | |
| | | | | | | | |
Total increase (decrease) | | | 5,564,725 | | | | 11,108,336 | |
| | |
Net Assets: | | | | | | | | |
Beginning of period | | | 41,428,621 | | | | 30,320,285 | |
| | | | | | | | |
End of period | | $ | 46,993,346 | | | $ | 41,428,621 | |
| | | | | | | | |
See Notes to Financial Statements.
Notes to Financial Statements(unaudited)
Prudential Investment Portfolios 2 (“PIP2”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as anopen-end management investment company. PIP2 consists of eleven separate series: PGIM Core Conservative Bond Fund, PGIM Core Short-Term Bond Fund, PGIM Core Ultra Short Bond Fund, PGIM Institutional Money Market Fund, PGIM JennisonSmall-Cap Core Equity Fund, PGIM QMA Emerging Markets Equity Fund, PGIM QMA International Developed Markets Index Fund, PGIM QMAMid-Cap Core Equity Fund, PGIM QMA US Broad Market Index Fund and PGIM TIPS Fund, each of which are diversified funds and PGIM QMA Commodity Strategies Fund, which is anon-diversified fund for purposes of the 1940 Act and may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. Investing in anon-diversified fund involves greater risk than investing in a diversified fund because a loss resulting from the decline in value of any one security may represent a greater portion of the total assets of anon-diversified fund. These financial statements relate only to the PGIM QMA International Developed Markets Index Fund (the “Fund”).
The investment objective of the Fund is to provide investment results that approximate the performance of the FTSE Developed MarketsEx-North America Net Index.
1. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of their financial statements.
Securities Valuation:The Fund holds securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. PIP2’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 53 | |
Notes to Financial Statements(unaudited) (continued)
For the fiscal reportingperiod-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820—Fair Value Measurements and Disclosures.
Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures or options, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Fund is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments inopen-end,non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party
vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Illiquid Securities:Pursuant to Rule22e-4 under the 1940 Act, the Fund has adopted a Board approved Liquidity Risk Management Program (“LRMP”) that requires, among other things, that the Fund limit its illiquid investments that are assets to no more than 15% of net assets. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its subadviser and may incur transaction costs that would not be incurred in the sale of securities that were freely marketable.
Restricted Securities:Securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer are considered restricted as to disposition under federal securities law (“restricted securities”). Such restricted securities are valued pursuant to the valuation procedures noted above. Restricted securities that would otherwise be considered illiquid investments pursuant to the Fund’s LRMP because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. Therefore, these Rule 144A securities, as well as
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 55 | |
Notes to Financial Statements(unaudited) (continued)
commercial paper that is sold in private placements under Section 4(2) of the Securities Act of 1933, may be classified higher than “illiquid” under the LRMP (i.e. “moderately liquid” or “less liquid” investments). However, the liquidity of the Fund’s investments in restricted securities could be impaired if trading does not develop or declines.
Foreign Currency Translation:The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
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 securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Financial Futures Contracts:A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or
is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Master Netting Arrangements:The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a Subadviser may have negotiated and entered into on behalf of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right toset-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 toset-off the amount owed with the amount owed by the other party, the reporting party intends toset-off and the right ofset-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
Warrants and Rights:The Fund holds warrants and rights acquired either through a direct purchase or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Fund until exercised, sold or expired. Warrants and rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Securities Lending:The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 57 | |
Notes to Financial Statements(unaudited) (continued)
securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed on the Statement of Operations as “Income from securities lending, net”.
Equity and Mortgage Real Estate Investment Trusts (collectively equity REITs):The Fund invests in equity REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from equity REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the equity REITs.
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 theex-date, or for certain foreign securities, when the Fund becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
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:The Fund expects to pay dividends from net investment income and distributions from net realized capital gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on theex-date. Permanent book/tax differences relating to income and gain (loss)
are reclassified between total distributable earnings (loss) andpaid-in capital in excess of par, as appropriate.
Estimates:The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
PIP2, on behalf of the Fund, has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. In addition, under the management agreement, PGIM Investments provides all of the administrative functions necessary for the organization, operation and management of the Fund. PGIM Investments administers the corporate affairs of the Fund and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund’s custodian and the Fund’s transfer agent. PGIM Investments is also responsible for the staffing and management of dedicated groups of legal, marketing, compliance and related personnel necessary for the operation of the Fund. The legal, marketing, compliance and related personnel are also responsible for the management and oversight of the various service providers to the Fund, including, but not limited to, the custodian, transfer agent, and accounting agent.
PGIM Investments has entered into a subadvisory agreement with QMA LLC (“QMA”) (formerly known as Quantitative Management Associates, LLC). The subadvisory agreement provides that QMA will furnish investment advisory services in connection with the management of the Fund. In connection therewith, QMA is obligated to keep certain books and records of the Fund. PGIM Investments pays for the services of QMA, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.25% of the Fund’s average daily net assets.
The Manager has contractually agreed, through February 29, 2020, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 0.30% of average daily net assets for Class R6 shares. 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. Fees and/or expenses waived and/or reimbursed by PGIM Investments may be recouped by PGIM Investments within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 59 | |
Notes to Financial Statements(unaudited) (continued)
PIP2, 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, Inc., PGIM Investments, PIMS and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certainout-of-pocket expenses paid tonon-affiliates, where applicable.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule17a-7 procedures. Rule17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Pursuant to the Rule17a-7 procedures and consistent with guidance issued by the SEC, the Trust’s Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such17a-7 transactions were effected in accordance with the Fund’s Rule17a-7 procedures. Any17a-7 transactions for the reporting period are disclosed in the “Portfolio Securities” note, below.
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of PIP2, registered under the 1940 Act and managed by PGIM Investments. Through the Fund’s investments in the mentioned underlying funds, PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services. Earnings from the Core Fund and Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2019, were $7,257,476 and $3,805,943, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated investments for the reporting period ended April 30, 2019, 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 | |
| | PGIM Core Ultra Short Bond Fund* | |
| $ | 1,006,402 | | | $ | 4,606,152 | | | $ | 4,996,856 | | | $ | — | | | $ | — | | | $ | 615,698 | | | | 615,698 | | | $ | 8,445 | |
| | PGIM Institutional Money Market Fund* | |
| | 731 | | | | 3,707,543 | | | | 2,277,667 | | | | 142 | | | | 8 | | | | 1,430,757 | | | | 1,430,328 | | | | 54 | ** |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,007,133 | | | $ | 8,313,695 | | | $ | 7,274,523 | | | $ | 142 | | | $ | 8 | | | $ | 2,046,455 | | | | | | | $ | 8,499 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| * | The Fund did not have any capital gain distributions during the reporting period. |
| ** | This amount is included in “Income from securities lending, net” on the Statement of Operations. |
For the reporting period ended April 30, 2019, no17a-7 transactions were entered into by the Fund.
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2019 were as follows:
| | | | |
Tax Basis | | $ | 44,496,321 | |
| | | | |
Gross Unrealized Appreciation | | | 5,083,074 | |
Gross Unrealized Depreciation | | | (2,497,530 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 2,585,544 | |
| | | | |
The book basis may differ from tax basis due to certaintax-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. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
6. Capital and Ownership
The Fund offers Class R6 shares. Class R6 shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.
PIP2 has authorized the Fund to issue an unlimited number of shares of beneficial interest of the Fund at $0.001 par value per share.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 61 | |
Notes to Financial Statements(unaudited) (continued)
As of April 30, 2019, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned 3,962,466 Class R6 shares of the Fund. At reporting period end, seven shareholders of record, each holding greater than 5% of the Fund, held 89% of the Fund’s outstanding shares, of which all were held by an affiliate of Prudential.
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
Class R6 | | Shares | | | Amount | |
Six months ended April 30, 2019: | | | | | | | | |
Shares sold | | | 556,421 | | | $ | 6,247,443 | |
Shares issued in reinvestment of dividends and distributions | | | 96,741 | | | | 1,020,616 | |
Shares reacquired | | | (336,361 | ) | | | (3,727,366 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 316,801 | | | $ | 3,540,693 | |
| | | | | | | | |
Year ended October 31, 2018: | | | | | | | | |
Shares sold | | | 1,534,018 | | | $ | 18,825,405 | |
Shares issued in reinvestment of dividends and distributions | | | 63,092 | | | | 776,665 | |
Shares reacquired | | | (366,560 | ) | | | (4,572,348 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 1,230,550 | | | $ | 15,029,722 | |
| | | | | | | | |
7. Borrowings
PIP2, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 4, 2018 through October 3, 2019. The Funds pay an annualized commitment fee of 0.15% of the unused portion of the SCA. Each Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under the SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the1-month LIBOR rate 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 Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2019.
8. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below:
Derivatives Risk:Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivative transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Fund. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many OTC derivative instruments will not have liquidity beyond the counterparty to the instrument. OTC derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.
Equity and Equity-Related Securities Risks:The value of a particular security could go down and you could lose money. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. The Fund’s holdings can vary significantly from broad market indexes and the performance of the Fund can deviate from the performance of these indexes. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk:The Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. Foreign countries in which the Fund may invest may have markets that are less liquid, less regulated and more volatile than US markets. The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability.
Geographic Concentration Risk:The Fund’s performance may be closely tied to the market, economic, political, regulatory or other conditions in the countries or regions in which the Fund invests. This can result in more pronounced risks based upon conditions that impact one or more countries or regions more or less than other countries or regions.
Market and Credit Risk:Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of an investment in the Fund will decline. Additionally, the Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 63 | |
Notes to Financial Statements(unaudited) (continued)
9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the FASB issued Accounting Standards Update (“ASU”)No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Fund’s policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has determined to early adopt aspects related to the removal and modification of certain fair value measurement disclosures under the ASU effective immediately. At this time, the Manager is evaluating the implications of certain other provisions of the ASU related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
Financial Highlights(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended
April 30,
2019 | | | | | | Year Ended
October 31,
2018 | | | | | | November 17,
2016(a)
through
October 31,
2017 | |
| Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $11.36 | | | | | | | | $12.55 | | | | | | | | $10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.16 | | | | | | | | 0.32 | | | | | | | | 0.26 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.62 | | | | | | | | (1.20 | ) | | | | | | | 2.30 | |
| Total from investment operations | | | 0.78 | | | | | | | | (0.88 | ) | | | | | | | 2.56 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.27 | ) | | | | | | | (0.23 | ) | | | | | | | (0.01 | ) |
| Distributions fron net realized gains | | | (0.01 | ) | | | | | | | (0.08 | ) | | | | | | | - | |
| Total dividends and distributions | | | (0.28 | ) | | | | | | | (0.31 | ) | | | | | | | (0.01 | ) |
| Net asset value, end of period | | | $11.86 | | | | | | | | $11.36 | | | | | | | | $12.55 | |
| Total Return(c): | | | 7.17% | | | | | | | | (7.22 | )% | | | | | | | 25.61% | |
| |
| Ratios/Supplemental Data: | | | | | | | |
| Net assets, end of period (000) | | | $46,993 | | | | | | | | $41,429 | | | | | | | | $30,320 | |
| Average net assets (000) | | | $42,623 | | | | | | | | $36,379 | | | | | | | | $20,731 | |
| Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.30% | (e) | | | | | | | 0.30% | | | | | | | | 0.33% | (e) |
| Expenses before waivers and/or expense reimbursement | | | 1.19% | (e) | | | | | | | 1.49% | | | | | | | | 2.61% | (e) |
| Net investment income (loss) | | | 2.81% | (e) | | | | | | | 2.56% | | | | | | | | 2.39% | (e) |
| Portfolio turnover rate(f) | | | 9% | | | | | | | | 9% | | | | | | | | 7% | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 65 | |
| | | | |
| | |
| ∎ MAIL | | ∎ TELEPHONE | | ∎ WEBSITE |
655 Broad Street Newark, NJ 07102 | | (800) 225-1852 | | pgiminvestments.com |
|
| 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. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 will be available on the Fund’s website and on the Securities and Exchange Commission’s website at the end of August. |
|
| TRUSTEES |
| Ellen S. Alberding• Kevin J. Bannon• Scott E. Benjamin• Linda W. Bynoe• Barry H. Evans• Keith F. Hartstein • Laurie Simon Hodrick• Michael S. Hyland• Stuart S. Parker• Brian K. Reid• Grace C. Torres |
|
| OFFICERS |
| Stuart S. Parker,President• Scott E. Benjamin,Vice President• Christian J. Kelly,Treasurer and Principal Financial and Accounting Officer• Raymond A. O’Hara,Chief Legal Officer• Chad A. Earnst,Chief Compliance Officer• Dino Capasso,Deputy Chief Compliance Officer• Andrew R. French,Secretary• Jonathan D. Shain,Assistant Secretary• Claudia DiGiacomo,Assistant Secretary• Diana N. Huffman,Assistant Secretary• Peter Parrella,Assistant Treasurer• Lana Lomuti, Assistant Treasurer• Linda McMullin,Assistant Treasurer• Kelly A. Coyne,Assistant Treasurer• Charles H. Smith,Anti-Money Laundering Compliance Officer |
| | | | |
| MANAGER | | PGIM Investments LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| SUBADVISER | | QMA LLC | | Gateway Center Two
100 Mulberry Street
Newark, NJ 07102 |
|
| DISTRIBUTOR | | Prudential Investment
Management Services LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street
New York, NY 10286 |
|
| TRANSFER AGENT | | Prudential Mutual Fund
Services LLC | | PO Box 9658
Providence, RI 02940 |
|
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | KPMG LLP | | 345 Park Avenue New York, NY 10154 |
|
| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue
New York, NY 10019 |
|
|
| An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. An investor may obtain the prospectus by visiting our website atpgiminvestments.com or by calling(800) 225-1852. The prospectus should be read carefully before investing. |
|
| SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
| Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM QMA International Developed Markets Index Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
|
| AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-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 each 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. |
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 QMA INTERNATIONAL DEVELOPED MARKETS INDEX FUND
| | |
| NASDAQ | | PQDMX |
| CUSIP | | 74440E607 |
| | |
| 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 forClosed-End Management Investment Companies – Not applicable. |
| |
| Item 8 – | | Portfolio Managers ofClosed-End Management Investment Companies – Not applicable. |
| |
| Item 9 – | | Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
| | |
| Item 10 – | | Submission of Matters to a Vote of Security Holders – Not applicable. |
| |
| Item 11 – | | Controls and Procedures |
| | |
(a) | | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
| (b) | | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
| | | | | | |
| | | |
| | (a) | | (1) | | Code of Ethics – Not required, as this is not an annual filing. |
| | | |
| | | | (2) | | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as ExhibitEX-99.CERT. |
| | | |
| | | | (3) | | Any written solicitation to purchase securities under Rule23c-1. – Not applicable. |
| | |
| | (b) | | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as ExhibitEX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
Registrant: | | Prudential Investment Portfolios 2 |
| |
By: | | /s/ Andrew R. French |
| | Andrew R. French |
| | Secretary |
| |
Date: | | June 17, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
By: | | /s/ Stuart S. Parker |
| | Stuart S. Parker |
| | President and Principal Executive Officer |
| |
Date: | | June 17, 2019 |
| | |
By: | | /s/ Christian J. Kelly |
| | Christian J. Kelly |
| | Treasurer and Principal Financial and Accounting Officer |
| |
Date: | | June 17, 2019 |
