UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number: | 811-09999 | |
Exact name of registrant as specified in charter: | Prudential Investment Portfolios 2 | |
(This Form N-CSR relates solely to the Registrant’s PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM QMA Commodity Strategies Fund, PGIM QMA Mid-Cap Core Equity Fund and PGIM QMA US Broad Market Index Fund.) | ||
Address of principal executive offices: | 655 Broad Street, 17th Floor | |
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Andrew R. French | |
655 Broad Street, 17th Floor | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 7/31/2021 | |
Date of reporting period: | 7/31/2021 |
Item 1 – Reports to Stockholders
PGIM Jennison Small-Cap Core Equity Fund | PGIM QMA Commodity Strategies Fund | |
PGIM Core Conservative Bond Fund | PGIM QMA Mid-Cap Core Equity Fund | |
PGIM TIPS Fund | PGIM QMA US Broad Market Index Fund |
ANNUAL REPORT
JULY 31, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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Holdings and Financial Statements | 33 | |||
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Funds’ portfolio holdings are for the period covered by this report and are subject to change thereafter.
Mutual funds are distributed by Prudential Investment Management Services LLC a Prudential Financial company and member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. Jennison Associates LLC is a registered investment adviser. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company. © 2021 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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| Dear Shareholder:
We hope you find the annual report for the PGIM Day One Underlying Funds informative and useful. The report covers performance for the 12-month period that ended July 31, 2021.
The COVID-19 pandemic had a significant impact on the global economy and markets early in 2020, but a dramatic recovery was underway as the summer began. The Federal Reserve slashed interest rates to encourage borrowing. Congress passed stimulus bills worth several trillion dollars to help consumers and businesses. And several effective COVID-19 vaccines received regulatory approval later in the year. | |
At the start of the period, stocks had recovered most of the steep losses they had suffered at the onset of the pandemic. Equities rallied as states reopened their economies but became more volatile in the fall as investors worried that a surge in COVID-19 infections would stall the recovery. However, rising corporate profits and economic growth, the resolution of the US presidential election, and the global rollout of approved vaccines lifted equity markets to record levels, helping stocks around the globe post gains for the full period.
Much of the bond market performed well during the period as investors sought safety in fixed income. While investment-grade bonds in the US declined slightly as the economy recovered, global bonds and emerging market debt rose. A significant rally in interest rates pushed the 10-year US Treasury yield down to a record low at the beginning of the period, but longer-term interest rates moved higher later on as investors began to focus on stronger economic growth and the prospects of higher inflation. The Fed also took several aggressive actions to keep the bond markets running smoothly, restarting many of the relief programs that proved to be successful in helping end the global financial crisis in 2008-09.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This scale and investment expertise allow us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Day One Underlying Funds
September 15, 2021
PGIM Day One Underlying Funds | 3 |
PGIM Jennison Small-Cap Core Equity Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
Average Annual Total Returns as of 7/31/21 | ||||
One Year (%) | Since Inception (%) | |||
Fund | 62.10 | 18.22 (11/15/2016) | ||
Russell 2000 Index | ||||
51.97
| 13.28
|
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception return for the Index is measured from the closest month-end to the Fund’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Russell 2000 Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2021), as measured on a quarterly basis. The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all recurring
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fees (including management fees) were deducted; and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definitions
Russell 2000 Index—The Russell 2000® Index is an unmanaged index of the 2,000 smallest US companies included in the Russell 3000® Index. It gives an indication of how the stock prices of smaller companies have performed.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
Presentation of Fund Holdings as of 7/31/2021
PGIM Jennison Small-Cap Core Equity Fund Ten Largest Holdings | Line of Business | % of Net Assets | ||
WillScot Mobile Mini Holdings Corp. | Construction & Engineering | 1.7% | ||
PDC Energy, Inc. | Oil, Gas & Consumable Fuels | 1.6% | ||
Saia, Inc. | Road & Rail | 1.6% | ||
Brunswick Corp. | Leisure Products | 1.5% | ||
Rexnord Corp. | Machinery | 1.5% | ||
Brightsphere Investment Group, Inc. | Capital Markets | 1.5% | ||
Avient Corp. | Chemicals | 1.5% | ||
NextEra Energy Partners LP | Independent Power & Renewable Electricity Producers | 1.4% | ||
Varonis Systems, Inc. | Software | 1.4% | ||
Performance Food Group Co. | Food & Staples Retailing | 1.4% |
For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.
PGIM Day One Underlying Funds | 5 |
PGIM Core Conservative Bond Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
Average Annual Total Returns as of 7/31/21 | ||||
One Year (%) | Since Inception (%) | |||
Fund | -1.07 | 3.42 (11/15/2016) | ||
Bloomberg US Aggregate Bond Index | ||||
-0.70
| 4.09
|
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception return for the Index is measured from the closest month-end to the Fund’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Bloomberg US Aggregate Bond Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2021), as measured on a quarterly basis.The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has been assumed
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that (a) all recurring fees (including management fees) were deducted; and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definitions
Bloomberg US Aggregate Bond Index—The Bloomberg US Aggregate Bond Index is unmanaged and represents securities that are taxable and dollar denominated. It covers the US investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
Credit Quality expressed as a percentage of total investments as of 7/31/21 (%)
| ||||
AAA | 70.0 | |||
AA | 5.5 | |||
A | 9.6 | |||
BBB | 14.1 | |||
Cash/Cash Equivalents | 0.8 | |||
Total | 100 |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
PGIM Day One Underlying Funds | 7 |
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
Average Annual Total Returns as of 7/31/21 | ||||
One Year (%) | Since Inception (%) | |||
Fund | 6.49 | 4.82 (11/15/2016) | ||
Bloomberg US Treasury Inflation-Protected (TIPS) Index | ||||
6.90
| 5.38
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The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception return for the Index is measured from the closest month-end to the Fund’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Bloomberg US Treasury Inflation-Protected (TIPS) Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2021), as measured on a quarterly basis.The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has
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been assumed that (a) all recurring fees (including management fees) were deducted; and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definitions
Bloomberg US Treasury Inflation-Protected (TIPS) Index—The Bloomberg US Treasury Inflation-Protected (TIPS) Index is an unmanaged index that consists of inflation-protected securities issued by the US Treasury.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
Credit Quality expressed as a percentage of total investments as of 7/31/21 (%)
| ||||
AAA | 99.9 | |||
Cash/Cash Equivalents | 0.1 | |||
Total | 100 |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
PGIM Day One Underlying Funds | 9 |
PGIM QMA Commodity Strategies Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
Average Annual Total Returns as of 7/31/21 | ||||
One Year (%) | Since Inception (%) | |||
Fund | 44.12 | 5.18 (11/15/2016) | ||
Bloomberg Commodity Index | ||||
40.28
| 3.66
|
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception return for the Index is measured from the closest month-end to the Fund’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Bloomberg Commodity Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2021), as measured on a quarterly basis.The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all
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recurring fees (including management fees) were deducted; and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definitions
Bloomberg Commodity Index—The Bloomberg Commodity Index is a diversified benchmark for the commodity futures market. It is composed of futures contracts on 23 physical commodities traded on US exchanges, with the exception of aluminum, nickel, and zinc, which trade on the London Metal Exchange (LME).
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
Presentation of Fund Holdings as of 7/31/2021
PGIM QMA Commodity Strategies Fund | ||
Ten Largest Commodities Future Exposure Holdings | % of Net Assets | |
Gold 100 OZ | 12.4% | |
WTI Crude | 12.1% | |
Natural Gas | 9.8% | |
Brent Crude | 8.0% | |
Copper | 6.9% | |
Soybean | 6.4% | |
Corn | 6.4% | |
Soybean Oil | 5.9% | |
LME Nickel | 3.4% | |
Live Cattle | 3.1% |
PGIM Day One Underlying Funds | 11 |
PGIM QMA Mid-Cap Core Equity Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
Average Annual Total Returns as of 7/31/21 | ||||
One Year (%) | Since Inception (%) | |||
Fund | 47.88 | 10.48 (11/17/2016) | ||
S&P MidCap 400 Index | ||||
46.99
| 13.26
|
The returns in the table do not reflect the deduction of taxes that a shareholder `would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception return for the Index is measured from the closest month-end to the Fund’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the S&P MidCap 400 Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2021), as measured on a quarterly basis.The R6 share class assumes an initial investment on November 17, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all
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recurring fees (including management fees) were deducted; and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definitions
S&P MidCap 400 Index*—The S&P MidCap 400 Index is an unmanaged index of 400 domestic stocks chosen for market capitalization, liquidity and industry representation. It gives a broad look at how US mid-cap stock prices have performed.
*The S&P MidCap 400 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2021 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices, please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Day One Underlying Funds | 13 |
PGIM QMA Mid-Cap Core Equity Fund
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 7/31/2021
PGIM QMA Mid-Cap Core Equity Fund Ten Largest Holdings | Line of Business | % of Net Assets | ||
iShares Core S&P Mid-Cap ETF | Exchange-Traded Funds | 3.6% | ||
Bio-Techne Corp. | Life Sciences Tools & Services | 1.4% | ||
Steel Dynamics, Inc. | Metals & Mining | 1.3% | ||
Molina Healthcare, Inc. | Health Care Providers & Services | 1.3% | ||
Fair Isaac Corp. | Software | 1.2% | ||
Medical Properties Trust, Inc. | Equity Real Estate Investment Trusts (REITs) | 1.1% | ||
Manhattan Associates, Inc. | Software | 1.1% | ||
Deckers Outdoor Corp. | Textiles, Apparel & Luxury Goods | 1.1% | ||
Hill-Rom Holdings, Inc. | Health Care Equipment & Supplies | 1.1% | ||
AutoNation, Inc. | Specialty Retail | 1.0% |
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PGIM QMA US Broad Market Index Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
Average Annual Total Returns as of 7/31/21 | ||||
One Year (%) | Since Inception (%) | |||
Fund | 36.70 | 17.54 (11/17/2016) | ||
S&P Composite 1500 Index | ||||
37.52
| 17.72
|
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception return for the Index is measured from the closest month-end to the Fund’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the S&P Composite 1500 Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2021), as measured on a quarterly basis.The R6 share class assumes an initial investment on November 17, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all
PGIM Day One Underlying Funds | 15 |
PGIM QMA US Broad Market Index Fund
Your Fund’s Performance (continued)
recurring fees (including management fees) were deducted; and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definitions
S&P Composite 1500 Index*—The S&P Composite 1500® Index is an unmanaged index of the stocks of 1,500 US companies, with market capitalizations ranging from small to large. The S&P Composite 1500 Index is a combination of three leading US stock indices: The S&P 500 Index (which measures the performance of US large cap stocks), the S&P MidCap 400 Index (which measures the performance of mid cap stocks) and the S&P 600 Index (which measures the performance of US small cap stocks) and gives an indication of how the broad US stock market has performed.
*The S&P Composite 1500 Index (the Index) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2021 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
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Presentation of Fund Holdings as of 7/31/2021
PGIM QMA US Broad Market Index Fund Ten Largest Holdings | Line of Business | % of Net Assets | ||
Apple, Inc. | Technology Hardware, Storage & Peripherals | 5.5% | ||
Microsoft Corp. | Software | 5.2% | ||
Amazon.com, Inc. | Internet & Direct Marketing Retail | 3.4% | ||
Facebook, Inc. (Class A Stock) | Interactive Media & Services | 2.1% | ||
Alphabet, Inc. (Class A Stock) | Interactive Media & Services | 1.9% | ||
Alphabet, Inc. (Class C Stock) | Interactive Media & Services | 1.9% | ||
iShares Core S&P 500 ETF | Exchange-Traded Funds | 1.3% | ||
Tesla, Inc. | Automobiles | 1.3% | ||
Berkshire Hathaway, Inc. (Class B Stock) | Diversified Financial Services | 1.3% | ||
NVIDIA Corp. | Semiconductors & Semiconductor Equipment | 1.2% |
PGIM Day One Underlying Funds | 17 |
PGIM Jennison Small-Cap Core Equity Fund
Strategy and Performance Overview
How did the Fund perform?
The PGIM Jennison Small-Cap Core Equity Fund’s Class R6 shares returned 62.10% in the 12-month reporting period that ended July 31, 2021, outperforming the 51.97% return of the Russell 2000 Index (the Index).
What was the market environment?
• | Equity markets continued to rally in the second half of 2020, as fiscal stimulus blunted the COVID-19 pandemic’s effects on the economy and record-low interest rates bolstered liquidity and stabilized asset prices. Productivity-enhancing products and services increased in demand, and the valuations of many of these companies expanded meaningfully. |
• | Beginning in September 2020, investors began to favor areas of the market that were most exposed to a recovery and most debilitated by the pandemic. This rotation extended into the first quarter of 2021, boosting valuations of cyclical companies and reducing the earnings multiples of secular growth companies. |
• | June 2021 marked a turning point in the US economic reopening and reflation outlook, with the Federal Reserve’s (the Fed’s) comments beginning to reflect concerns about labor shortages and rising prices. Corporate profit growth reported through the end of the period was strong, highlighting the expanding recovery and boosting business confidence to its highest level since the early days of the pandemic. |
• | Small-cap stocks, as measured by the Index, significantly outperformed their large-cap counterparts, based on the S&P 500 Index, during the period. Within the Index, energy, consumer discretionary, and materials were the best-performing sectors. |
What worked?
• | Healthcare positions were noteworthy contributors to the Fund’s positive absolute and Index-relative performance during the reporting period. Results were led by Natera Inc., a leader in the reproductive health-testing market. The company has successfully commercialized tests for non-invasive prenatal testing and expanded carrier screening, among others. Jennison eliminated the position during the period, as its market capitalization grew outside of the Fund’s investable range. |
• | Darling Ingredients Inc. drove outperformance in consumer staples. The company serves the agri-food industry and reduces food waste by collecting and repurposing animal-based co-products and other natural materials. The company reported strong quarterly results over the period, with core earnings that exceeded expectations. In addition, it remains an active re-payer of debt, and Jennison continues to like its self-funded growth trajectory. The Fund no longer held this position at the end of the reporting period. |
• | On a sector level, information technology and financials were also strong contributors. Other top contributors were in the consumer discretionary sector. |
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• | Penn National Gaming Inc. is an American operator of 43 casinos and racetracks in the United States and Canada, many under the Hollywood Casino brand. The company also controls a 36% stake in Barstool Sports Inc. Despite capacity restrictions for much of the period, spending per visit was up, and the company has seen a significant increase in new customers, particularly among a younger demographic. The Fund no longer held this position at the end of the reporting period. |
• | Saia Inc., an American trucking company, posted strong financial results during the period, with material volume acceleration along with accelerating pricing trends. Jennison likes Saia’s solid pricing power and strong operating leverage, and it views the company’s network expansion—both in the Northeast and in the company’s legacy footprint—as a key driver of growth going forward. |
• | Kontoor Brands Inc. markets denim clothing under the Lee, Wrangler, and Rock & Republic brand names. The company reported robust quarterly results during the period. In Jennison’s view, Kontoor has a best-in-class wholesale distribution that is focused on segmentation, along with several company-specific drivers that should continue to benefit them going forward. |
What didn’t work?
Despite a few notable contributors mentioned above, consumer discretionary detracted, in aggregate, from the Fund’s performance relative to the Index during the reporting period.
• | Vroom Inc. is a used-car retailer and e-commerce company that enables consumers to buy, sell, and finance cars online. In Jennison’s opinion, its shares declined due to poor communication from management. Jennison believes Vroom’s industry dynamics are extremely positive, as the pandemic has accelerated the acceptance of used-auto economics for both sellers and buyers, with inventory/capacity supply constraints the limiting factor in recent months. |
• | Rush Street Interactive Inc. operates regulated online casinos in New Jersey and Pennsylvania. Jennison believes the company should experience strong growth from its own initiatives, as existing markets mature and more states legalize online gambling. Shares traded down recently, despite robust quarterly results. |
Other notable detractors were found in other sectors:
• | In healthcare, Emergent BioSolutions Inc. underperformed during the period. The multi-national specialty biopharmaceutical company develops vaccines and antibody therapeutics for infectious diseases and opioid overdoses, and it provides medical devices for biodefense purposes. Shares were down amid quality concerns for COVID-19 vaccines at one of its manufacturing facilities, and the position was eliminated during the period. |
• | ORIC Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company focused on developing innovative therapies to counter resistance mechanisms in cancer. |
PGIM Day One Underlying Funds | 19 |
PGIM Jennison Small-Cap Core Equity Fund
Strategy and Performance Overview (continued)
Jennison believes it has the potential to address a significant commercial opportunity in treatment-resistant prostate cancer and other cancers. The company’s management and founders have a track record of success in these areas of oncology drug development, and ORIC has a robust pipeline of novel oncology drug candidates. Jennison believes shares were down perhaps due to negative sentiment in the biopharma space. |
• | WPX Energy Inc. is engaged in hydrocarbon exploration. Its shares declined during the period along with the overall energy sector, as the pandemic was a severe headwind for global energy demand. In late September 2020, WPX and Devon Energy Corp. announced an all-stock merger of equals to create one of the nation’s largest shale producers. Jennison closed out of the position during the period. |
Current outlook
• | The economic recovery has continued to strengthen as the pandemic’s most serious effects wane, particularly in the United States, where COVID-19 vaccination rates are among the highest in the world. Although pre-pandemic activity has begun to resume, labor shortages and higher prices of goods continue to weigh on the pace of recovery. The Fed’s communications have begun to reflect these concerns. |
• | Fiscal stimulus has peaked and is expected to decline as extended state unemployment benefits expire at the end of September 2021. This should help ease labor shortages that have persisted despite higher wages. However, a revenue windfall from the US Treasury remains and will be awarded at the discretion of state governments to local counties and cities over the balance of 2021. As such, Jennison expects the US public sector to be an unusually strong source of demand and spending over the medium term. |
• | The pandemic is by no means over, and the COVID-19 Delta variant’s spread is affecting the economic reopening outside the US. Jennison believes that lingering ambiguity surrounding the economic growth outlook points to continued market volatility ahead, with a positive bias from ongoing higher earnings revisions. |
• | Jennison’s Small-Cap Core’s diversified approach is executing well, in Jennison’s view, in an environment that has observed frequent leadership rotation by sector and market capitalization. Jennison continues to identify companies that have strong fundamentals and might outgrow market averages, which it believes favors its disciplined and bottom-up investment approach that focuses on identifying these above-average growers with reasonable valuations. |
20 | Visit our website at pgim.com/investments |
PGIM Core Conservative Bond Fund
Strategy and Performance Overview
How did the Fund perform?
The PGIM Core Conservative Bond Fund’s Class R6 shares returned -1.07% in the 12-month reporting period that ended July 31, 2021, underperforming the -0.70% return of the Bloomberg US Aggregate Bond Index (the Index).
What were the market conditions?
• | The strong global rebound from the depths of the COVID-19 pandemic continued throughout the reporting period, as economies responded to the unprecedented monetary and fiscal stimulus programs. The rollout of vaccines, President Biden’s $1.9 trillion stimulus package, a $900 billion aid bill, and anticipation of the Biden administration’s infrastructure bill fueled growth expectations in late 2020 and early 2021. Shifts in the prospects for growth and inflation kicked off a massive “reflation trade” in bond markets, which propelled yields higher during the first quarter of 2021. |
• | Although yields for short-term Treasuries remained well anchored by the Federal Reserve’s (the Fed’s) commitment to maintain its low-rate policy, longer-term Treasuries sold off sharply in the first quarter of 2021, with the yield on the benchmark US 10-year Treasury note rising from 0.92% on December 31, 2020, to 1.74% on March 31, 2021. Similarly, the yield on the 30-year Treasury bond rose from 1.65% to 2.41% over the same period. |
• | Market volatility for rates then eased in the second quarter of 2021, escaping the sell-offs observed earlier in the year, with lower long-dated yields and higher front-end rates forming a substantially flatter Treasury yield curve by the end of the period. Instead of pushing up the yield curve, the Fed’s turn toward tapering near the end of the second quarter led to a decline in long-term Treasury yields, as investors assumed a more hawkish Fed would simply mean a lower path for rates over the long run. |
• | Following the volatility of the first quarter of 2021, the US 10-year and 30-year Treasury yields ended the period at 1.18% and 1.90%, respectively. Meanwhile, the yield on the 2-year Treasury note ended the period at 0.19%, a rise of four basis points (bps) over the period. (One basis point equals 0.01%.) |
• | Spread markets continued to tighten, supported by the Fed’s monetary responses, fiscal stimulus, the rollout of vaccines, better-than-expected corporate earnings, and surging growth in the US, Europe, and some emerging market economies. The US investment grade corporate market performed well, with spreads tightening to near-historic levels in the second quarter of 2021, supported by better-than-expected corporate earnings, positive vaccination progress, and a favorable technical backdrop. Strengthening fundamentals generally kept securitized credit on a tightening trajectory as well, with commercial mortgage-backed securities (CMBS) spreads trading well below their pre-pandemic tights by the end of the period. Meanwhile, agency mortgage-backed securities (MBS) spreads tightened on the back of ongoing Fed buying and bank purchases. |
PGIM Day One Underlying Funds | 21 |
PGIM Core Conservative Bond Fund
Strategy and Performance Overview (continued)
What worked?
• | Overall sector allocation contributed to the Fund’s performance during the reporting period, with positioning in CMBS, municipal bonds, and investment grade corporates the largest contributors. |
• | While overall security selection was negative, positioning within MBS and emerging markets contributed to returns. |
• | Within credit, positioning in midstream and upstream energy, foreign non-corporates, and technology contributed to results. |
• | In individual security selection, the Fund benefited from overweights to ONEOK Inc. (midstream energy), Marathon Petroleum Corp. (downstream energy), and ConocoPhillips (upstream energy). The Fund did not hold Marathon Petroleum Corp. at the end of the reporting period. |
• | The Fund’s duration positioning was a modest contributor to returns. (Duration measures the sensitivity of the price—the value of principal—of a bond to a change in interest rates.) |
What didn’t work?
• | Overall sector allocation was negative, with an underweight (on a spread duration contribution basis) to investment grade corporates and overweights to CMBS and municipal bonds limiting results during the reporting period. |
• | The Fund’s positioning in the midstream energy, telecom, and media & entertainment sectors detracted from performance. |
• | In individual security selection, the Fund’s underweight positioning in General Electric Co. (capital goods) and Dell Technologies Inc. (technology), along with an overweight to Citigroup Inc. (banking), detracted from performance. The Fund did not hold General Electric Co. and Dell Technologies Inc. at the end of the reporting period. |
Current outlook
• | In considering the composition of the Treasury curve, PGIM Fixed Income believes the repricing of forward rates and inflation expectations in various parts of the curve will likely continue. Even when accounting for the recent change in policy messaging, the hurdle for the Fed to raise rates remains high, and officials will likely wait to observe whether the inflation pressure is transitory. |
• | The US saw a marked acceleration in inflation through the first half of 2021. Part of the increase came from “base effects,” but the lion’s share of the gains reflected surprisingly vigorous price increases. (Base effect is the distortion in a monthly inflation figure that results from abnormally high or low levels of inflation a year earlier. In this case, inflation was low a year ago.) Recent developments suggest that inflation will likely continue to run somewhat hot through the months ahead. However, PGIM |
22 | Visit our website at pgim.com/investments |
Fixed Income believes inflation could slowly abate toward the end of the year and early next year, as many of the structural factors that drove soft inflation during much of the past decade remain firmly in place. |
• | To date, developed markets central banks have felt comfortable looking through recent price pressures and have kept rates on hold. While maintaining a baseline view that the current bout of inflation will be “transitory,” the Fed at its June meeting recognized that the upside risks to inflation have increased. Even so, PGIM Fixed Income expects monetary policy to remain highly stimulative through at least this year and much of next year. |
• | PGIM Fixed Income maintains its positive view of the spread sectors over the medium to long term; and the Fund is overweight structured products (CMBS), investment grade corporates (from a duration contribution perspective), and municipal bonds. The Fund is underweight in MBS in favor of more attractive opportunities across spread sectors. |
• | While valuations are now a bit full, with spreads in many sectors tighter than historical norms, PGIM Fixed Income generally expects ongoing spread sector outperformance. The combination of high cash balances and low money market rates is likely to continue pushing investors out on the risk spectrum in a search for yield. However, this outlook is not without caveats. First, the relatively narrow level of spreads diminishes the pace and magnitude of further outperformance. Additionally, narrower spreads leave little room for error, and the uncertain course of the long-term economic recovery warrants a discerning approach to credit selection. |
• | Within structured products, PGIM Fixed Income is biased to own the top of the capital structure, as near-zero policy rates and ongoing Fed purchases support a spread-tightening environment. In investment grade corporates, PGIM Fixed Income is looking to take advantage of spread compression in select higher-yielding BBB-rated bonds, solid credits in stressed industries, and cyclicals. While agency CMBS have benefited from strong bank demand and Fed support, a change in that dynamic—particularly from the Fed—could contribute some widening pressure on spreads. |
PGIM Day One Underlying Funds | 23 |
PGIM TIPS Fund
Strategy and Performance Overview
How did the Fund perform?
The PGIM TIPS Fund’s Class R6 shares returned 6.49% in the 12-month reporting period that ended July 31, 2021, underperforming the 6.90% return of the Bloomberg US Treasury Inflation-Protected (TIPS) Index (the Index).
What were the market conditions?
• | The strong global rebound from the depths of the COVID-19 pandemic continued throughout the reporting period, as economies responded to the unprecedented monetary and fiscal stimulus programs. The rollout of vaccines, President Biden’s $1.9 trillion stimulus package, a $900 billion aid bill, and anticipation of the Biden administration’s infrastructure bill fueled growth expectations in late 2020 and early 2021. Shifts in the prospects for growth and inflation kicked off a massive “reflation trade” in bond markets, which propelled yields higher during the first quarter of 2021. |
• | Although yields for short-term Treasuries remained well anchored by the Federal Reserve’s (the Fed’s) commitment to maintain its low-rate policy, longer-term Treasuries sold off sharply in the first quarter of 2021, with the yield on the benchmark US 10-year Treasury note rising from 0.92% on December 31, 2020, to 1.74% on March 31, 2021. Similarly, the yield on the 30-year Treasury bond rose from 1.65% to 2.41% over the same period. |
• | Market volatility for rates then eased in the second quarter of 2021, escaping the sell-offs observed earlier in the year, with lower long-dated yields and higher front-end rates forming a substantially flatter Treasury yield curve by the end of the period. Instead of pushing up the yield curve, the Fed’s turn toward tapering near the end of the second quarter led to a decline in long-term Treasury yields, as investors assumed a more hawkish Fed would simply mean a lower path for rates over the long run. |
• | Following the volatility of the first quarter of 2021, the US 10- and 30-year Treasury yields ended the period at 1.18% and 1.90%, respectively. Meanwhile, the yield on the 2-year Treasury note ended the period at 0.19%, a rise of four basis points (bps) over the period. (One basis point equals 0.01%.) |
• | While longer-term Treasuries saw substantial volatility throughout the period, yields on short-term securities, which influence money market yields, remained near zero. The 3-month Treasury bill declined from 0.086% to 0.045% during the period, while the 6-month Treasury bill declined from 0.114% to 0.048%. Meanwhile, the 3-month London Interbank Offered Rate (LIBOR) fell from 0.25% on July 31, 2020, to 0.12% by July 31, 2021. |
• | The US saw a marked acceleration in inflation through the first half of 2021, with core personal consumption expenditures inflation for June 2021 rising 3.5% from the year before. Part of this increase came from “base effects,” but the lion’s share of the gains reflected surprisingly vigorous price increases. (Base effect is the distortion in a monthly inflation figure that results from abnormally high or low levels of inflation a year earlier. In this case, inflation was low a year ago.) Recent developments suggest that inflation will likely continue to run somewhat hot through the months ahead. |
24 | Visit our website at pgim.com/investments |
Reflecting the increase in inflation expectations, the 10-year break-even inflation rate rose from 1.55% as of July 31, 2020, to a high of 2.54% in mid-May 2021 before ending the period at 2.40%. |
• | Meanwhile, 5-year TIPS rallied substantially the last month of the period to record-low real yields. Five-year inflation break-evens rose 13 bps in July 2021, while 5-year TIPS yields fell 33 bps to -1.98%. |
What worked?
• | Yield curve flattener positioning added to the Fund’s performance for the reporting period. (A yield curve flattener is an interest rate environment in which long-term rates are decreasing more quickly than short-term rates.) |
• | The duration of the Fund was tactically managed versus the Index during the period. (Duration measures the sensitivity of the price—the value of principal—of a bond to a change in interest rates.) Overall, duration positioning helped performance. The Fund ended July 2021 with a nearly flat duration position versus the Index. |
• | Security selection added to the Fund’s performance during the period. |
Current outlook
• | In considering the composition of the Treasury curve, PGIM Fixed Income believes the repricing of forward rates and inflation expectations in various parts of the curve will likely continue. Even when accounting for the recent change in policy messaging, the hurdle for the Fed to raise rates remains high, and officials will likely wait to observe whether the inflation pressure is transitory. |
• | As mentioned above, inflation has accelerated in the US in recent months. However, PGIM Fixed Income expects inflation to slowly abate toward the end of the year and early next year, as many of the structural factors that drove soft inflation during much of the past decade remain firmly in place. |
• | To date, the Fed has felt comfortable looking through these recent price pressures and has kept rates on hold. That said, the Fed seems to have recently shifted to more of a “risk management” approach. While maintaining a baseline view that the current bout of inflation will be “transitory,” the Fed at its June meeting recognized that the upside risks to inflation have increased. Even so, PGIM Fixed Income expects monetary policy to remain highly stimulative through at least this year and much of next year. |
PGIM Day One Underlying Funds | 25 |
PGIM QMA Commodity Strategies Fund
Strategy and Performance Overview
How did the Fund perform?
The PGIM QMA Commodity Strategies Fund’s Class R6 shares returned 44.12% in the 12-month reporting period that ended July 31, 2021, outperforming the 40.28% return of the Bloomberg Commodity Index (the Index).
What were the market conditions?
For the reporting period, commodities in general appreciated strongly, as inflation picked up after the initial shock of the COVID-19 pandemic, especially in the energy and grains sectors. Precious metals were roughly flat over the period, having appreciated earlier in 2020.
What worked?
The Fund’s gains for the reporting period were driven by overweight positions in soybean oil, gasoline, and crude oil.
What didn’t work?
An underweight position (relative to the Index) in corn detracted most from the Fund’s performance for the period.
Did the Fund hold derivatives?
The Fund primarily trades in listed exchange-traded commodities futures contracts. These futures are a form of derivatives based on the underlying price of a specific commodity. Since the Fund is invested primarily in these derivatives, its performance during the reporting period is explained by the derivatives.
Current outlook
As of the end of the reporting period (relative to the Index), the Fund was positioned with overweights in the grain and energy sectors, and it held underweight positions in the soft commodities, livestock, and precious metals sectors. Within industrial metals (relative to the Index), the Fund was overweight copper and nickel while underweight aluminum and zinc.
26 | Visit our website at pgim.com/investments |
PGIM QMA Mid-Cap Core Equity Fund
Strategy and Performance Overview
How did the Fund perform?
The PGIM QMA Mid-Cap Core Equity Fund’s Class R6 shares returned 47.88% in the 12-month reporting period that ended July 31, 2021, outperforming the 46.99% return of the S&P MidCap 400 Index (the Index).
What were the market conditions?
• | Although uncertainty triggered by the COVID-19 pandemic hovered over markets throughout the reporting period, investors remained focused on positive vaccine developments at the end of 2020 and vaccine rollouts during the first half of 2021. |
• | These events boosted investor expectations for a recovery in many sectors that had been negatively affected early in the pandemic but helped fuel the subsequent market rally. |
• | US equity markets were also buoyed by ongoing fiscal stimulus and accommodative monetary policies, improving employment and gross domestic product data, and stronger-than-anticipated corporate earnings reports. |
What worked?
• | The Fund is comprised of a diversified portfolio of stocks that QMA identifies as attractive using a proprietary quantitative model. The model evaluates stocks based on quality, earnings expectations, and relative value metrics. The emphasis on these factors varies based on the growth rate of the company under evaluation. |
• | Overweighting companies that were inexpensive, while underweighting those that were expensive, was a favorable contributor to the Fund’s performance over the reporting period as value rebounded. |
• | The Fund’s largest relative gains were in financials, energy, and materials. Relative gains were broadly distributed among a handful of industries. |
What didn’t work?
• | Overweighting high-quality companies with improving growth prospects, while underweighting low-quality companies with deteriorating growth prospects, was unfavorable to the Fund’s performance over the reporting period. |
• | Stock selection in the consumer discretionary and information technology sectors lagged the Index during the period. Losses in consumer discretionary were largely driven by casino/gaming stocks, while information technology losses were due to semiconductors. |
Did the Fund hold derivatives?
The Fund did not hold derivatives during the reporting period. The Fund did, however, hold exchange-traded funds that track the Index. QMA uses these instruments primarily to manage daily cash flows and provide liquidity, not as a means of adding to performance. Subsequently, the effect on performance was minimal.
PGIM Day One Underlying Funds | 27 |
PGIM QMA Mid-Cap Core Equity Fund
Strategy and Performance Overview (continued)
Current outlook
First-quarter performance in 2021 demonstrated the impact that increasing inflation and rising interest rates can have on the high-growth segment of the market. QMA believes that while short-term inflation may indeed be transitory due to pent-up demand and supply/demand imbalances, the risk of long-term inflation resulting from wage increases is very real. Periods of high and/or rising inflation have historically favored value stocks and thus should benefit the Fund’s strategy, in QMA’s view.
28 | Visit our website at pgim.com/investments |
PGIM QMA US Broad Market Index Fund
Strategy and Performance Overview
How did the Fund perform?
The PGIM QMA US Broad Market Index Fund’s Class R6 shares returned 36.70% in the 12-month reporting period that ended July 31, 2021, underperforming the 37.52% return of the S&P 1500 Composite Index (the Index).
What were the market conditions?
• | US equities reached record highs in July 2021 as the economy rebounded from economic disruptions caused by the COVID-19 pandemic that began early in 2020. Equities across the globe reacted in a similar fashion. |
• | Aided by continued fiscal and monetary stimulus, US equities have performed well since the middle of the fourth quarter of 2020. |
• | Equities have received an additional boost from the distribution and effectiveness of COVID-19 vaccines. |
What worked?
• | The Fund’s performance closely tracked the Index’s performance over the reporting period. |
• | The Fund held all stocks included in the Index in approximately the same proportions. |
Did the Fund hold derivatives?
The Fund held S&P 500, S&P 400, and Russell 2000 E-Mini stock index futures, a form of derivatives, to maintain exposure to equities and provide portfolio liquidity. Futures had minimal impact on performance over the period.
PGIM Day One Underlying Funds | 29 |
As a shareholder of a 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 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 July 31, 2021. The example is for illustrative purposes only; you should consult the Funds’ Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line in the tables below 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 tables below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a 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 a 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 each table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison Small-Cap Core Equity Fund | Beginning Account Value February 1, 2021 | Ending Account Value July 31, 2021 | Annualized Expense | Expenses Paid During the Six-Month Period* | ||||
Class R6 Actual | $1,000.00 | $1,149.00 | 0.95% | $5.06 | ||||
Hypothetical
| $1,000.00
| $1,020.08
| 0.95%
| $4.76
| ||||
30 | Visit our website at pgim.com/investments |
PGIM Core Conservative Bond Fund | Beginning Account Value February 1, 2021 | Ending Account Value July 31, 2021 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||
Class R6 Actual | $1,000.00 | $ 999.40 | 0.50% | $2.48 | ||||
Hypothetical
| $1,000.00
| $1,022.32
| 0.50%
| $2.51
| ||||
PGIM TIPS Fund | Beginning Account Value February 1, 2021 | Ending Account Value July 31, 2021 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||
Class R6 Actual | $1,000.00 | $1,040.80 | 0.40% | $2.02 | ||||
Hypothetical
| $1,000.00
| $1,022.81
| 0.40%
| $2.01
| ||||
PGIM QMA Commodity Strategies Fund | Beginning Account Value February 1, 2021 | Ending Account Value July 31, 2021 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||
Class R6 Actual | $1,000.00 | $1,212.90 | 0.63% | $3.46 | ||||
Hypothetical
| $1,000.00
| $1,021.67
| 0.63%
| $3.16
| ||||
PGIM QMA Mid-Cap Core Equity Fund | Beginning Account Value February 1, 2021 | Ending Account Value July 31, 2021 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||
Class R6 Actual | $1,000.00 | $1,196.10 | 0.84% | $4.57 | ||||
Hypothetical
| $1,000.00
| $1,020.63
| 0.84%
| $4.21
| ||||
PGIM QMA US Broad Market Index Fund | Beginning Account Value February 1, 2021 | Ending Account Value July 31, 2021 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||
Class R6 Actual | $1,000.00 | $1,184.40 | 0.20% | $1.08 | ||||
Hypothetical
| $1,000.00
| $1,023.80
| 0.20%
| $1.00
|
*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 July 31, 2021, and divided by the 365 days in the Fund’s fiscal year ended July 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
PGIM Day One Underlying Funds | 31 |
Glossary
The following abbreviations are used in the Funds’ descriptions:
USD—US Dollar
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.
BABs—Build America Bonds
ETF—Exchange-Traded Fund
GMTN—Global Medium Term Note
LIBOR—London Interbank Offered Rate
LME—London Metal Exchange
LP—Limited Partnership
MTN—Medium Term Note
OTC—Over-the-counter
PRI—Primary Rate Interface
RBOB—Reformulated Gasoline Blendstock for Oxygen Blending
REITs—Real Estate Investment Trust
S&P—Standard & Poor’s
Strips—Separate Trading of Registered Interest and Principal of Securities
TBA—To Be Announced
TIPS—Treasury Inflation-Protected Securities
ULSD—Ultra-Low Sulfur Diesel
WTI—West Texas Intermediate
33 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments
as of July 31, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 98.0% | ||||||||
COMMON STOCKS | ||||||||
Aerospace & Defense 0.3% | ||||||||
Curtiss-Wright Corp. | 772 | $ | 91,328 | |||||
Airlines 0.5% | ||||||||
Sun Country Airlines Holdings, Inc.* | 4,934 | 160,306 | ||||||
Banks 8.1% | ||||||||
Ameris Bancorp | 1,694 | 82,345 | ||||||
Atlantic Union Bankshares Corp. | 3,707 | 131,487 | ||||||
BankUnited, Inc. | 7,086 | 280,464 | ||||||
Brookline Bancorp, Inc. | 16,753 | 240,741 | ||||||
Byline Bancorp, Inc. | 5,754 | 141,606 | ||||||
Eastern Bankshares, Inc. | 7,363 | 134,375 | ||||||
Enterprise Financial Services Corp. | 5,478 | 244,154 | ||||||
First Bancorp. | 6,132 | 245,280 | ||||||
First Foundation, Inc. | 9,724 | 229,195 | ||||||
PacWest Bancorp | 6,334 | 252,220 | ||||||
Pinnacle Financial Partners, Inc. | 3,261 | 292,218 | ||||||
Silvergate Capital Corp. (Class A Stock)* | 1,441 | 148,135 | ||||||
Wintrust Financial Corp. | 3,400 | 242,760 | ||||||
|
| |||||||
2,664,980 | ||||||||
Biotechnology 3.6% | ||||||||
Amicus Therapeutics, Inc.* | 17,039 | 158,292 | ||||||
Apellis Pharmaceuticals, Inc.* | 3,432 | 219,614 | ||||||
Avid Bioservices, Inc.* | 8,238 | 211,305 | ||||||
C4 Therapeutics, Inc.* | 2,119 | 91,414 | ||||||
Nurix Therapeutics, Inc.* | 3,331 | 102,395 | ||||||
ORIC Pharmaceuticals, Inc.* | 4,490 | 74,758 | ||||||
Turning Point Therapeutics, Inc.* | 1,832 | 116,918 | ||||||
Veracyte, Inc.* | 4,911 | 218,834 | ||||||
|
| |||||||
1,193,530 | ||||||||
Building Products 1.0% | ||||||||
JELD-WEN Holding, Inc.* | 12,963 | 343,260 | ||||||
Capital Markets 6.8% | ||||||||
AssetMark Financial Holdings, Inc.* | 3,367 | 87,879 | ||||||
Bridge Investment Group Holdings, Inc. (Class A Stock)* | 10,549 | 166,252 | ||||||
Brightsphere Investment Group, Inc. | 19,409 | 485,031 |
See Notes to Financial Statements.
34 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Capital Markets (cont’d.) | ||||||||
Focus Financial Partners, Inc. (Class A Stock)* | 7,306 | $ | 375,017 | |||||
Hamilton Lane, Inc. (Class A Stock) | 2,315 | 215,295 | ||||||
Houlihan Lokey, Inc. | 3,857 | 343,659 | ||||||
Lazard Ltd. (Class A Stock) | 4,228 | 199,562 | ||||||
Moelis & Co. (Class A Stock) | 2,270 | 134,497 | ||||||
Open Lending Corp. (Class A Stock)* | 5,610 | 213,180 | ||||||
|
| |||||||
2,220,372 | ||||||||
Chemicals 1.5% | ||||||||
Avient Corp. | 9,920 | 481,318 | ||||||
Commercial Services & Supplies 1.3% | ||||||||
ACV Auctions, Inc. (Class A Stock)* | 4,432 | 102,645 | ||||||
Harsco Corp.* | 16,256 | 327,071 | ||||||
|
| |||||||
429,716 | ||||||||
Construction & Engineering 3.5% | ||||||||
Concrete Pumping Holdings, Inc.* | 15,273 | 132,875 | ||||||
Great Lakes Dredge & Dock Corp.* | 28,476 | 438,530 | ||||||
WillScot Mobile Mini Holdings Corp.* | 19,487 | 559,472 | ||||||
|
| |||||||
1,130,877 | ||||||||
Construction Materials 1.3% | ||||||||
Summit Materials, Inc. (Class A Stock)* | 13,110 | 440,496 | ||||||
Diversified Consumer Services 0.2% | ||||||||
Duolingo, Inc.* | 507 | 71,107 | ||||||
Diversified Telecommunication Services 1.4% | ||||||||
Bandwidth, Inc. (Class A Stock)* | 3,530 | 457,700 | ||||||
Electronic Equipment, Instruments & Components 2.6% | ||||||||
FARO Technologies, Inc.* | 2,081 | 151,684 | ||||||
Littelfuse, Inc. | 1,360 | 361,746 | ||||||
nLight, Inc.* | 9,278 | 321,854 | ||||||
|
| |||||||
835,284 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 35 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Energy Equipment & Services 0.8% | ||||||||
Cactus, Inc. (Class A Stock) | 7,005 | $ | 252,460 | |||||
Equity Real Estate Investment Trusts (REITs) 5.8% | ||||||||
American Assets Trust, Inc. | 6,140 | 226,750 | ||||||
Cousins Properties, Inc. | 7,369 | 292,697 | ||||||
Independence Realty Trust, Inc. | 21,767 | 419,668 | ||||||
National Storage Affiliates Trust | 7,032 | 380,924 | ||||||
Plymouth Industrial REIT, Inc. | 3,640 | 84,011 | ||||||
Retail Opportunity Investments Corp. | 7,599 | 134,274 | ||||||
Summit Hotel Properties, Inc.* | 20,742 | 186,885 | ||||||
UMH Properties, Inc. | 8,069 | 187,846 | ||||||
|
| |||||||
1,913,055 | ||||||||
Food & Staples Retailing 2.5% | ||||||||
BJ’s Wholesale Club Holdings, Inc.* | 4,796 | 242,870 | ||||||
Performance Food Group Co.* | 10,077 | 461,728 | ||||||
Sprouts Farmers Market, Inc.* | 4,623 | 113,633 | ||||||
|
| |||||||
818,231 | ||||||||
Food Products 1.8% | ||||||||
Adecoagro SA (Brazil)* | 14,405 | 137,712 | ||||||
Freshpet, Inc.* | 1,950 | 285,577 | ||||||
Utz Brands, Inc. | 6,883 | 155,831 | ||||||
|
| |||||||
579,120 | ||||||||
Health Care Equipment & Supplies 4.3% | ||||||||
BioLife Solutions, Inc.* | 2,741 | 128,553 | ||||||
Integra LifeSciences Holdings Corp.* | 2,398 | 173,591 | ||||||
Intersect ENT, Inc.* | 8,339 | 194,716 | ||||||
Nevro Corp.* | 2,154 | 333,870 | ||||||
Outset Medical, Inc.* | 4,254 | 174,244 | ||||||
Silk Road Medical, Inc.* | 2,100 | 105,378 | ||||||
Tandem Diabetes Care, Inc.* | 2,765 | 300,472 | ||||||
|
| |||||||
1,410,824 | ||||||||
Health Care Providers & Services 4.4% | ||||||||
Acadia Healthcare Co., Inc.* | 7,086 | 437,348 | ||||||
Accolade, Inc.* | 6,469 | 302,814 |
See Notes to Financial Statements.
36 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Providers & Services (cont’d.) | ||||||||
Covetrus, Inc.* | 6,465 | $ | 164,599 | |||||
HealthEquity, Inc.* | 2,059 | 152,325 | ||||||
Progyny, Inc.* | 5,423 | 302,007 | ||||||
Talkspace, Inc.*(a) | 12,819 | 75,632 | ||||||
|
| |||||||
1,434,725 | ||||||||
Health Care Technology 2.5% | ||||||||
Inspire Medical Systems, Inc.* | 1,711 | 313,387 | ||||||
Phreesia, Inc.* | 6,373 | 435,594 | ||||||
Sophia Genetics SA (Switzerland)* | 3,854 | 60,315 | ||||||
|
| |||||||
809,296 | ||||||||
Hotels, Restaurants & Leisure 3.7% | ||||||||
Bally’s Corp.* | 3,845 | 189,366 | ||||||
Bloomin’ Brands, Inc.* | 12,130 | 304,827 | ||||||
Jack in the Box, Inc. | 2,681 | 291,854 | ||||||
Rush Street Interactive, Inc.* | 8,946 | 88,118 | ||||||
Wingstop, Inc. | 2,024 | 346,731 | ||||||
|
| |||||||
1,220,896 | ||||||||
Household Durables 1.2% | ||||||||
Century Communities, Inc. | 5,691 | 395,240 | ||||||
Independent Power & Renewable Electricity Producers 1.4% | ||||||||
NextEra Energy Partners LP | 6,023 | 466,963 | ||||||
Insurance 1.4% | ||||||||
Axis Capital Holdings Ltd. | 4,558 | 231,865 | ||||||
Goosehead Insurance, Inc. (Class A Stock) | 2,003 | 240,741 | ||||||
|
| |||||||
472,606 | ||||||||
Internet & Direct Marketing Retail 0.2% | ||||||||
Stamps.com, Inc.* | 198 | 64,699 | ||||||
IT Services 2.8% | ||||||||
Evo Payments, Inc. (Class A Stock)* | 12,264 | 358,109 | ||||||
Flywire Corp.* | 2,447 | 77,717 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 37 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
IT Services (cont’d.) | ||||||||
Grid Dynamics Holdings, Inc.* | 17,370 | $ | 365,638 | |||||
Payoneer Global, Inc.*(a) | 12,354 | 116,622 | ||||||
|
| |||||||
918,086 | ||||||||
Leisure Products 1.5% | ||||||||
Brunswick Corp. | 4,802 | 501,329 | ||||||
Life Sciences Tools & Services 0.5% | ||||||||
NeoGenomics, Inc.* | 2,921 | 134,658 | ||||||
Rapid Micro Biosystems, Inc. (Class A Stock)* | 1,199 | 26,606 | ||||||
|
| |||||||
161,264 | ||||||||
Machinery 6.3% | ||||||||
Colfax Corp.* | 8,795 | 403,515 | ||||||
Enerpac Tool Group Corp. | 10,735 | 275,568 | ||||||
Gates Industrial Corp. PLC* | 9,021 | 163,370 | ||||||
Kennametal, Inc. | 6,665 | 241,606 | ||||||
Mayville Engineering Co., Inc.* | 9,016 | 158,411 | ||||||
Mueller Water Products, Inc. (Class A Stock) | 6,147 | 91,099 | ||||||
Rexnord Corp. | 8,625 | 485,846 | ||||||
Trinity Industries, Inc. | 8,458 | 229,296 | ||||||
|
| |||||||
2,048,711 | ||||||||
Media 0.9% | ||||||||
Cardlytics, Inc.* | 2,325 | 292,857 | ||||||
Oil, Gas & Consumable Fuels 1.6% | ||||||||
PDC Energy, Inc. | 13,579 | 537,049 | ||||||
Personal Products 1.2% | ||||||||
elf Beauty, Inc.* | 14,558 | 401,946 | ||||||
Pharmaceuticals 1.2% | ||||||||
Prestige Consumer Healthcare, Inc.* | 3,943 | 207,205 | ||||||
Revance Therapeutics, Inc.* | 6,326 | 183,960 | ||||||
|
| |||||||
391,165 |
See Notes to Financial Statements.
38 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Professional Services 1.8% | ||||||||
ASGN, Inc.* | 3,321 | $ | 335,853 | |||||
First Advantage Corp.* | 4,453 | 87,323 | ||||||
Huron Consulting Group, Inc.* | 3,472 | 170,579 | ||||||
|
| |||||||
593,755 | ||||||||
Road & Rail 1.6% | ||||||||
Saia, Inc.* | 2,295 | 518,670 | ||||||
Semiconductors & Semiconductor Equipment 4.5% | ||||||||
Brooks Automation, Inc. | 2,563 | 228,133 | ||||||
Lattice Semiconductor Corp.* | 3,102 | 176,038 | ||||||
MACOM Technology Solutions Holdings, Inc.* | 6,392 | 394,514 | ||||||
MaxLinear, Inc.* | 7,513 | 362,352 | ||||||
Tower Semiconductor Ltd. (Israel)* | 10,783 | 300,307 | ||||||
|
| |||||||
1,461,344 | ||||||||
Software 5.8% | ||||||||
Clear Secure, Inc. (Class A Stock)* | 3,665 | 181,161 | ||||||
Descartes Systems Group, Inc. (The) (Canada)* | 2,426 | 176,273 | ||||||
Everbridge, Inc.* | 2,769 | 391,038 | ||||||
Intapp, Inc.* | 3,482 | 118,040 | ||||||
PagerDuty, Inc.* | 3,957 | 160,615 | ||||||
Q2 Holdings, Inc.* | 2,533 | 261,684 | ||||||
Sprout Social, Inc. (Class A Stock)* | 1,788 | 158,846 | ||||||
Varonis Systems, Inc.* | 7,626 | 466,711 | ||||||
|
| |||||||
1,914,368 | ||||||||
Specialty Retail 3.2% | ||||||||
Boot Barn Holdings, Inc.* | 3,182 | 274,989 | ||||||
Citi Trends, Inc.* | 2,491 | 198,657 | ||||||
National Vision Holdings, Inc.* | 7,197 | 388,494 | ||||||
Vroom, Inc.* | 4,673 | 173,088 | ||||||
|
| |||||||
1,035,228 | ||||||||
Textiles, Apparel & Luxury Goods 1.3% | ||||||||
Kontoor Brands, Inc. | 7,550 | 418,119 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 39 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Thrifts & Mortgage Finance 0.5% | ||||||||
WSFS Financial Corp. | 3,474 | $ | 152,092 | |||||
Trading Companies & Distributors 1.2% | ||||||||
Core & Main, Inc. (Class A Stock)* | 6,918 | 183,327 | ||||||
Rush Enterprises, Inc. (Class A Stock) | 4,314 | 202,715 | ||||||
|
| |||||||
386,042 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 32,090,414 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 3.6% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
PGIM Core Ultra Short Bond Fund(wa) | 972,794 | 972,794 | ||||||
PGIM Institutional Money Market Fund | 214,702 | 214,574 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 1,187,368 | |||||||
|
| |||||||
TOTAL INVESTMENTS 101.6% | 33,277,782 | |||||||
Liabilities in excess of other assets (1.6)% | (512,575 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 32,765,207 | ||||||
|
|
See the Glossary for a list of the abbreviation(s) used in the annual report.
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $187,856; cash collateral of $214,558 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | 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, if applicable. |
See Notes to Financial Statements.
40 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
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 July 31, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 91,328 | $— | $— | ||||||||
Airlines | 160,306 | — | — | |||||||||
Banks | 2,664,980 | — | — | |||||||||
Biotechnology | 1,193,530 | — | — | |||||||||
Building Products | 343,260 | — | — | |||||||||
Capital Markets | 2,220,372 | — | — | |||||||||
Chemicals | 481,318 | — | — | |||||||||
Commercial Services & Supplies | 429,716 | — | — | |||||||||
Construction & Engineering | 1,130,877 | — | — | |||||||||
Construction Materials | 440,496 | — | — | |||||||||
Diversified Consumer Services | 71,107 | — | — | |||||||||
Diversified Telecommunication Services | 457,700 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 835,284 | — | — | |||||||||
Energy Equipment & Services | 252,460 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 1,913,055 | — | — | |||||||||
Food & Staples Retailing | 818,231 | — | — | |||||||||
Food Products | 579,120 | — | — | |||||||||
Health Care Equipment & Supplies | 1,410,824 | — | — | |||||||||
Health Care Providers & Services | 1,434,725 | — | — | |||||||||
Health Care Technology | 809,296 | — | — | |||||||||
Hotels, Restaurants & Leisure | 1,220,896 | — | — | |||||||||
Household Durables | 395,240 | — | — | |||||||||
Independent Power & Renewable Electricity Producers | 466,963 | — | — | |||||||||
Insurance | 472,606 | — | — | |||||||||
Internet & Direct Marketing Retail | 64,699 | — | — | |||||||||
IT Services | 918,086 | — | — | |||||||||
Leisure Products | 501,329 | — | — | |||||||||
Life Sciences Tools & Services | 161,264 | — | — | |||||||||
Machinery | 2,048,711 | — | — | |||||||||
Media | 292,857 | — | — |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 41 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Long-Term Investments (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Oil, Gas & Consumable Fuels | $ | 537,049 | $— | $— | ||||||||
Personal Products | 401,946 | — | — | |||||||||
Pharmaceuticals | 391,165 | — | — | |||||||||
Professional Services | 593,755 | — | — | |||||||||
Road & Rail | 518,670 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 1,461,344 | — | — | |||||||||
Software | 1,914,368 | — | — | |||||||||
Specialty Retail | 1,035,228 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 418,119 | — | — | |||||||||
Thrifts & Mortgage Finance | 152,092 | — | — | |||||||||
Trading Companies & Distributors | 386,042 | — | — | |||||||||
Short-Term Investments | ||||||||||||
Affiliated Mutual Funds | 1,187,368 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 33,277,782 | $— | $— | ||||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2021 were as follows (unaudited):
Banks | 8.1 | % | ||
Capital Markets | 6.8 | |||
Machinery | 6.3 | |||
Software | 5.8 | |||
Equity Real Estate Investment Trusts (REITs) | 5.8 | |||
Semiconductors & Semiconductor Equipment | 4.5 | |||
Health Care Providers & Services | 4.4 | |||
Health Care Equipment & Supplies | 4.3 | |||
Hotels, Restaurants & Leisure | 3.7 | |||
Biotechnology | 3.6 | |||
Affiliated Mutual Funds (0.7% represents investments purchased with collateral from securities on loan) | 3.6 | |||
Construction & Engineering | 3.5 | |||
Specialty Retail | 3.2 | |||
IT Services | 2.8 | |||
Electronic Equipment, Instruments & Components | 2.6 | |||
Food & Staples Retailing | 2.5 | |||
Health Care Technology | 2.5 | |||
Professional Services | 1.8 |
Food Products | 1.8 | % | ||
Oil, Gas & Consumable Fuels | 1.6 | |||
Road & Rail | 1.6 | |||
Leisure Products | 1.5 | |||
Chemicals | 1.5 | |||
Insurance | 1.4 | |||
Independent Power & Renewable Electricity | 1.4 | |||
Diversified Telecommunication Services | 1.4 | |||
Construction Materials | 1.3 | |||
Commercial Services & Supplies | 1.3 | |||
Textiles, Apparel & Luxury Goods | 1.3 | |||
Personal Products | 1.2 | |||
Household Durables | 1.2 | |||
Pharmaceuticals | 1.2 | |||
Trading Companies & Distributors | 1.2 | |||
Building Products | 1.0 | |||
Media | 0.9 | |||
Energy Equipment & Services | 0.8 | |||
Life Sciences Tools & Services | 0.5 |
See Notes to Financial Statements.
42 |
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Industry Classification (continued):
Airlines | 0.5 | % | ||
Thrifts & Mortgage Finance | 0.5 | |||
Aerospace & Defense | 0.3 | |||
Diversified Consumer Services | 0.2 | |||
Internet & Direct Marketing Retail | 0.2 | |||
|
| |||
101.6 | ||||
Liabilities in excess of other assets | (1.6 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
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 | $ | 187,856 | $ | (187,856 | ) | $ | — | ||||||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 43 |
PGIM Jennison Small-Cap Core Equity Fund
Statement of Assets & Liabilities
as of July 31, 2021
Assets | ||||
Investments at value, including securities on loan of $187,856: | ||||
Unaffiliated investments (cost $22,172,268) | $ | 32,090,414 | ||
Affiliated investments (cost $1,187,368) | 1,187,368 | |||
Receivable for investments sold | 11,348 | |||
Receivable for Fund shares sold | 8,544 | |||
Dividends receivable | 2,013 | |||
Prepaid expenses | 303 | |||
|
| |||
Total Assets | 33,299,990 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 214,558 | |||
Payable for Fund shares purchased | 190,773 | |||
Payable for investments purchased | 69,450 | |||
Accrued expenses and other liabilities | 47,837 | |||
Management fee payable | 11,289 | |||
Trustees’ fees payable | 804 | |||
Affiliated transfer agent fee payable | 72 | |||
|
| |||
Total Liabilities | 534,783 | |||
|
| |||
Net Assets | $ | 32,765,207 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 1,686 | ||
Paid-in capital in excess of par | 17,306,070 | |||
Total distributable earnings (loss) | 15,457,451 | |||
|
| |||
Net assets, July 31, 2021 | $ | 32,765,207 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, ($32,765,207 ÷ 1,685,898 shares of beneficial interest issued and outstanding) | $ | 19.43 | ||
|
|
See Notes to Financial Statements.
44 |
PGIM Jennison Small-Cap Core Equity Fund
Statement of Operations
Year Ended July 31, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $301 foreign withholding tax) | $ | 155,067 | ||
Income from securities lending, net (including affiliated income of $400) | 5,496 | |||
Affiliated dividend income | 1,362 | |||
|
| |||
Total income | 161,925 | |||
|
| |||
Expenses | ||||
Management fee | 215,002 | |||
Custodian and accounting fees | 47,174 | |||
Audit fee | 26,188 | |||
Legal fees and expenses | 20,126 | |||
Trustees’ fees | 10,224 | |||
Shareholders’ reports | 4,765 | |||
Transfer agent’s fees and expenses (including affiliated expense of $415) | 565 | |||
SEC registration fees | 293 | |||
Registration fees | 250 | |||
Miscellaneous | 16,756 | |||
|
| |||
Total expenses | 341,343 | |||
Less: Fee waiver and/or expense reimbursement | (69,007 | ) | ||
|
| |||
Net expenses | 272,336 | |||
|
| |||
Net investment income (loss) | (110,411 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on investment transactions (including affiliated of $251) | 7,351,681 | |||
Net change in unrealized appreciation (depreciation) on investments (including affiliated of $(438)) | 5,900,851 | |||
|
| |||
Net gain (loss) on investment transactions | 13,252,532 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 13,142,121 | ||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 45 |
PGIM Jennison Small-Cap Core Equity Fund
Statements of Changes in Net Assets
Year Ended July 31, | ||||||||
2021
| 2020
| |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | (110,411 | ) | $ | (5,161 | ) | ||
Net realized gain (loss) on investment transactions | 7,351,681 | (351,664 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 5,900,851 | 1,646,389 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 13,142,121 | 1,289,564 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R6 | (1,083,084 | ) | — | |||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 5,375,200 | 6,847,970 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,083,084 | — | ||||||
Cost of shares purchased | (7,190,963 | ) | (4,069,959 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (732,679 | ) | 2,778,011 | |||||
|
|
|
| |||||
Total increase (decrease) | 11,326,358 | 4,067,575 | ||||||
Net Assets: | ||||||||
Beginning of year | 21,438,849 | 17,371,274 | ||||||
|
|
|
| |||||
End of year | $ | 32,765,207 | $ | 21,438,849 | ||||
|
|
|
|
See Notes to Financial Statements.
46 |
PGIM Core Conservative Bond Fund
Schedule of Investments
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 97.7% | ||||||||||||||||
ASSET-BACKED SECURITY 0.2% | ||||||||||||||||
Credit Cards | ||||||||||||||||
Citibank Credit Card Issuance Trust, | ||||||||||||||||
Series 2018-A07, Class A7 | ||||||||||||||||
(cost $117,771) | 3.960% | 10/13/30 | 100 | $ | 118,309 | |||||||||||
|
| |||||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES 5.5% |
| |||||||||||||||
BANK, | ||||||||||||||||
Series 2020-BN29, Class A3 | 1.742 | 11/15/53 | 100 | 99,363 | ||||||||||||
Barclays Commercial Mortgage Trust, | ||||||||||||||||
Series 2019-C04, Class A4 | 2.661 | 08/15/52 | 100 | 105,502 | ||||||||||||
Benchmark Mortgage Trust, | ||||||||||||||||
Series 2018-B03, Class A3 | 3.746 | 04/10/51 | 30 | 32,393 | ||||||||||||
Series 2020-B19, Class A3 | 1.787 | 09/15/53 | 175 | 177,888 | ||||||||||||
Series 2020-B21, Class A4 | 1.704 | 12/17/53 | 100 | 99,495 | ||||||||||||
Series 2021-B23, Class A4A1 | 1.823 | 02/15/54 | 200 | 199,869 | ||||||||||||
Series 2021-B24, Class A4 | 2.264 | 03/15/54 | 200 | 206,135 | ||||||||||||
CCUBS Commercial Mortgage Trust, | ||||||||||||||||
Series 2017-C01, Class A3 | 3.283(cc) | 11/15/50 | 90 | 97,872 | ||||||||||||
CD Mortgage Trust, | ||||||||||||||||
Series 2017-CD06, Class A3 | 3.104 | 11/13/50 | 40 | 41,882 | ||||||||||||
Citigroup Commercial Mortgage Trust, | ||||||||||||||||
Series 2016-P06, Class A4 | 3.458 | 12/10/49 | 125 | 137,595 | ||||||||||||
Series 2017-P08, Class A3 | 3.203 | 09/15/50 | 75 | 81,175 | ||||||||||||
Commercial Mortgage Trust, | ||||||||||||||||
Series 2015-PC01, Class A4 | 3.620 | 07/10/50 | 154 | 157,980 | ||||||||||||
Series 2016-DC02, Class A5 | 3.765 | 02/10/49 | 25 | 27,659 | ||||||||||||
CSAIL Commercial Mortgage Trust, | ||||||||||||||||
Series 2016-C07, Class A4 | 3.210 | 11/15/49 | 43 | 46,580 | ||||||||||||
GS Mortgage Securities Trust, | ||||||||||||||||
Series 2020-GC47, Class A4 | 2.125 | 05/12/53 | 100 | 102,192 | ||||||||||||
JPMCC Commercial Mortgage Securities Trust, | ||||||||||||||||
Series 2019-COR04, Class A3 | 3.763 | 03/10/52 | 125 | 139,964 | ||||||||||||
JPMorgan Chase Commercial Mortgage Securities Trust, | ||||||||||||||||
Series 2016-JP02, Class A3 | 2.559 | 08/15/49 | 19 | 20,303 | ||||||||||||
Series 2016-JP04, Class A3 | 3.393 | 12/15/49 | 125 | 136,567 | ||||||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, | ||||||||||||||||
Series 2015-C21, Class A3 | 3.077 | 03/15/48 | 66 | 69,651 | ||||||||||||
Series 2016-C32, Class A3 | 3.459 | 12/15/49 | 125 | 137,145 | ||||||||||||
Morgan Stanley Capital I Trust, | ||||||||||||||||
Series 2016-UB12, Class A3 | 3.337 | 12/15/49 | 125 | 133,794 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 47 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) |
| |||||||||||||||
Morgan Stanley Capital I Trust, (cont’d.) | ||||||||||||||||
Series 2021-L06, Class A3 | 2.196% | 06/15/54 | 225 | $ | 230,449 | |||||||||||
UBS Commercial Mortgage Trust, | ||||||||||||||||
Series 2018-C08, Class A3 | 3.720 | 02/15/51 | 200 | 225,323 | ||||||||||||
Series 2018-C09, Class ASB | 4.090 | 03/15/51 | 60 | 66,831 | ||||||||||||
Series 2018-C11, Class A3 | 4.312 | 06/15/51 | 75 | 83,452 | ||||||||||||
Series 2018-C13, Class A3 | 4.069 | 10/15/51 | 200 | 224,141 | ||||||||||||
Wells Fargo Commercial Mortgage Trust, | ||||||||||||||||
Series 2016-LC25, Class A3 | 3.374 | 12/15/59 | 125 | 136,018 | ||||||||||||
Series 2017-C39, Class A3 | 2.878 | 09/15/50 | 100 | 104,357 | ||||||||||||
Series 2020-C55, Class A4 | 2.474 | 02/15/53 | 125 | 130,593 | ||||||||||||
|
| |||||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES | 3,452,168 | |||||||||||||||
|
| |||||||||||||||
CORPORATE BONDS 26.5% | ||||||||||||||||
Aerospace & Defense 0.9% | ||||||||||||||||
Boeing Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.196 | 02/04/26 | 45 | 45,388 | ||||||||||||
Sr. Unsec’d. Notes | 2.250 | 06/15/26 | 35 | 35,907 | ||||||||||||
Sr. Unsec’d. Notes | 2.700 | 02/01/27 | 20 | 20,784 | ||||||||||||
Sr. Unsec’d. Notes | 3.100 | 05/01/26 | 10 | 10,658 | ||||||||||||
Sr. Unsec’d. Notes | 3.600 | 05/01/34 | 30 | 32,014 | ||||||||||||
Sr. Unsec’d. Notes | 3.900 | 05/01/49 | 10 | 10,564 | ||||||||||||
Sr. Unsec’d. Notes | 4.508 | 05/01/23 | 45 | 47,808 | ||||||||||||
Sr. Unsec’d. Notes | 5.805 | 05/01/50 | 70 | 95,392 | ||||||||||||
General Dynamics Corp., | ||||||||||||||||
Gtd. Notes | 3.250 | 04/01/25 | 60 | 65,173 | ||||||||||||
Gtd. Notes | 3.500 | 05/15/25 | 45 | 49,424 | ||||||||||||
Lockheed Martin Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.900 | 03/01/25 | 25 | 26,860 | ||||||||||||
Northrop Grumman Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 06/01/43 | 25 | 32,801 | ||||||||||||
Raytheon Technologies Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.125 | 11/16/28 | 30 | 34,813 | ||||||||||||
Teledyne FLIR LLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.500 | 08/01/30 | 5 | 5,149 | ||||||||||||
Teledyne Technologies, Inc., | ||||||||||||||||
Gtd. Notes | 2.250 | 04/01/28 | 65 | 67,235 | ||||||||||||
|
| |||||||||||||||
579,970 |
See Notes to Financial Statements.
48 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Agriculture 0.2% | ||||||||||||||||
Altria Group, Inc., | ||||||||||||||||
Gtd. Notes | 3.400% | 02/04/41 | 70 | $ | 67,830 | |||||||||||
Gtd. Notes | 4.800 | 02/14/29 | 5 | 5,858 | ||||||||||||
BAT Capital Corp. (United Kingdom), | ||||||||||||||||
Gtd. Notes | 3.215 | 09/06/26 | 15 | 16,070 | ||||||||||||
Gtd. Notes | 3.557 | 08/15/27 | 30 | 32,482 | ||||||||||||
Gtd. Notes | 4.700 | 04/02/27 | 10 | 11,382 | ||||||||||||
Philip Morris International, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.125 | 05/01/23 | 10 | 10,141 | ||||||||||||
|
| |||||||||||||||
143,763 | ||||||||||||||||
Airlines 0.2% | ||||||||||||||||
Southwest Airlines Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.625 | 02/10/30 | 20 | 20,775 | ||||||||||||
Sr. Unsec’d. Notes | 4.750 | 05/04/23 | 40 | 42,844 | ||||||||||||
Sr. Unsec’d. Notes | 5.125 | 06/15/27 | 50 | 59,163 | ||||||||||||
United Airlines 2012-1 Class A Pass-Through Trust, | ||||||||||||||||
Pass-Through Certificates | 4.150 | 10/11/25 | 21 | 22,548 | ||||||||||||
|
| |||||||||||||||
145,330 | ||||||||||||||||
Auto Manufacturers 0.4% | ||||||||||||||||
General Motors Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 6.250 | 10/02/43 | 15 | 20,901 | ||||||||||||
Sr. Unsec’d. Notes | 6.600 | 04/01/36 | 10 | 13,844 | ||||||||||||
Sr. Unsec’d. Notes | 6.750 | 04/01/46 | 70 | 101,913 | ||||||||||||
General Motors Financial Co., Inc., | ||||||||||||||||
Gtd. Notes | 4.000 | 01/15/25 | 80 | 87,311 | ||||||||||||
|
| |||||||||||||||
223,969 | ||||||||||||||||
Banks 5.6% | ||||||||||||||||
Bank of America Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.687(ff) | 04/22/32 | 150 | 156,645 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 3.970(ff) | 03/05/29 | 345 | 390,564 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 4.083(ff) | 03/20/51 | 65 | 78,596 | ||||||||||||
Barclays PLC (United Kingdom), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.645(ff) | 06/24/31 | 150 | 153,285 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 49 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
Citigroup, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.572%(ff) | 06/03/31 | 70 | $ | 72,488 | |||||||||||
Sr. Unsec’d. Notes | 2.666(ff) | 01/29/31 | 35 | 36,570 | ||||||||||||
Sr. Unsec’d. Notes | 2.976(ff) | 11/05/30 | 115 | 122,894 | ||||||||||||
Sr. Unsec’d. Notes | 3.400 | 05/01/26 | 45 | 49,530 | ||||||||||||
Sr. Unsec’d. Notes | 3.668(ff) | 07/24/28 | 60 | 66,683 | ||||||||||||
Sr. Unsec’d. Notes | 3.980(ff) | 03/20/30 | 30 | 34,240 | ||||||||||||
Sr. Unsec’d. Notes | 4.075(ff) | 04/23/29 | 50 | 57,044 | ||||||||||||
Sr. Unsec’d. Notes | 4.650 | 07/30/45 | 40 | 52,253 | ||||||||||||
Credit Suisse Group AG (Switzerland), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.550 | 04/17/26 | 100 | 113,645 | ||||||||||||
Deutsche Bank AG (Germany), | ||||||||||||||||
Sr. Unsec’d. Notes, Series D | 5.000 | 02/14/22 | 50 | 51,179 | ||||||||||||
Goldman Sachs Group, Inc. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 1.992(ff) | 01/27/32 | 70 | 69,049 | ||||||||||||
Sr. Unsec’d. Notes | 2.615(ff) | 04/22/32 | 10 | 10,369 | ||||||||||||
Sr. Unsec’d. Notes | 3.814(ff) | 04/23/29 | 100 | 112,634 | ||||||||||||
Sr. Unsec’d. Notes | 4.223(ff) | 05/01/29 | 180 | 207,250 | ||||||||||||
HSBC Holdings PLC (United Kingdom), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.583(ff) | 06/19/29 | 85 | 98,929 | ||||||||||||
JPMorgan Chase & Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.522(ff) | 04/22/31 | 35 | 36,424 | ||||||||||||
Sr. Unsec’d. Notes | 2.525(ff) | 11/19/41 | 10 | 9,788 | ||||||||||||
Sr. Unsec’d. Notes | 2.580(ff) | 04/22/32 | 35 | 36,432 | ||||||||||||
Sr. Unsec’d. Notes | 2.739(ff) | 10/15/30 | 15 | 15,886 | ||||||||||||
Sr. Unsec’d. Notes | 3.509(ff) | 01/23/29 | 260 | 288,609 | ||||||||||||
Sr. Unsec’d. Notes | 3.882(ff) | 07/24/38 | 95 | 111,296 | ||||||||||||
Sr. Unsec’d. Notes | 4.452(ff) | 12/05/29 | 65 | 76,407 | ||||||||||||
Sub. Notes | 3.875 | 09/10/24 | 60 | 65,358 | ||||||||||||
Morgan Stanley, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.217(ff) | 04/22/42 | 80 | 85,930 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 3.772(ff) | 01/24/29 | 170 | 191,404 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 4.431(ff) | 01/23/30 | 70 | 82,320 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 1.794(ff) | 02/13/32 | 40 | 38,904 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 1.928(ff) | 04/28/32 | 80 | 78,560 | ||||||||||||
Natwest Group PLC (United Kingdom), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.269(ff) | 03/22/25 | 30 | 32,580 | ||||||||||||
PNC Financial Services Group, Inc. (The), | ||||||||||||||||
Sub. Notes | 3.900 | 04/29/24 | 50 | 54,254 |
See Notes to Financial Statements.
50 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
Truist Bank, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.750% | 05/01/23 | 20 | $ | 20,829 | |||||||||||
Truist Financial Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.700 | 01/27/22 | 20 | 20,201 | ||||||||||||
Wells Fargo & Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.000 | 10/23/26 | 55 | 59,677 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 2.572(ff) | 02/11/31 | 55 | 57,577 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 2.879(ff) | 10/30/30 | 190 | 202,962 | ||||||||||||
|
| |||||||||||||||
3,499,245 | ||||||||||||||||
Beverages 0.6% | ||||||||||||||||
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev | ||||||||||||||||
Worldwide, Inc. (Belgium), | ||||||||||||||||
Gtd. Notes | 4.700 | 02/01/36 | 20 | 24,880 | ||||||||||||
Gtd. Notes | 4.900 | 02/01/46 | 95 | 121,829 | ||||||||||||
Anheuser-Busch InBev Worldwide, Inc. (Belgium), | ||||||||||||||||
Gtd. Notes | 4.750 | 01/23/29 | 90 | 108,161 | ||||||||||||
Gtd. Notes | 5.550 | 01/23/49 | 20 | 28,078 | ||||||||||||
Constellation Brands, Inc., | ||||||||||||||||
Gtd. Notes | 3.700 | 12/06/26 | 20 | 22,327 | ||||||||||||
Gtd. Notes | 4.400 | 11/15/25 | 10 | 11,323 | ||||||||||||
Sr. Unsec’d. Notes | 2.250 | 08/01/31 | 10 | 10,085 | ||||||||||||
PepsiCo, Inc., | �� | |||||||||||||||
Sr. Unsec’d. Notes | 2.750 | 03/05/22 | 75 | 76,134 | ||||||||||||
|
| |||||||||||||||
402,817 | ||||||||||||||||
Biotechnology 0.3% | ||||||||||||||||
Amgen, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.600 | 08/19/26 | 170 | 181,514 | ||||||||||||
Gilead Sciences, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.400 | 12/01/21 | 20 | 20,065 | ||||||||||||
Regeneron Pharmaceuticals, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.800 | 09/15/50 | 15 | 14,142 | ||||||||||||
|
| |||||||||||||||
215,721 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 51 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Building Materials 0.3% | ||||||||||||||||
Martin Marietta Materials, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.400% | 07/15/31 | 25 | $ | 25,684 | |||||||||||
Sr. Unsec’d. Notes, Series CB | 2.500 | 03/15/30 | 30 | 30,971 | ||||||||||||
Owens Corning, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.200 | 12/01/24 | 35 | 38,373 | ||||||||||||
Sr. Unsec’d. Notes | 4.300 | 07/15/47 | 35 | 41,634 | ||||||||||||
Vulcan Materials Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 06/15/47 | 25 | 31,013 | ||||||||||||
|
| |||||||||||||||
167,675 | ||||||||||||||||
Chemicals 0.7% | ||||||||||||||||
Dow Chemical Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.625 | 05/15/26 | 55 | 61,199 | ||||||||||||
Sr. Unsec’d. Notes | 4.625 | 10/01/44 | 20 | 25,160 | ||||||||||||
DuPont de Nemours, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.493 | 11/15/25 | 65 | 73,960 | ||||||||||||
FMC Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.450 | 10/01/29 | 15 | 16,535 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 10/01/49 | 25 | 30,735 | ||||||||||||
LYB International Finance BV, | ||||||||||||||||
Gtd. Notes | 4.875 | 03/15/44 | 40 | 51,042 | ||||||||||||
LYB International Finance III LLC, | ||||||||||||||||
Gtd. Notes | 2.250 | 10/01/30 | 5 | 5,098 | ||||||||||||
Gtd. Notes | 3.375 | 05/01/30 | 75 | 82,962 | ||||||||||||
Gtd. Notes | 3.375 | 10/01/40 | 5 | 5,344 | ||||||||||||
Nutrien Ltd. (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.500 | 06/01/23 | 50 | 52,364 | ||||||||||||
Sr. Unsec’d. Notes | 5.250 | 01/15/45 | 25 | 33,940 | ||||||||||||
Sherwin-Williams Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 06/01/47 | 10 | 12,721 | ||||||||||||
|
| |||||||||||||||
451,060 | ||||||||||||||||
Commercial Services 0.4% | ||||||||||||||||
Automatic Data Processing, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.700 | 05/15/28 | 25 | 25,552 | ||||||||||||
California Institute of Technology, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.650 | 09/01/2119 | 15 | 17,758 |
See Notes to Financial Statements.
52 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Commercial Services (cont’d.) | ||||||||||||||||
Cintas Corp. No. 2, | ||||||||||||||||
Gtd. Notes | 3.700% | 04/01/27 | 20 | $ | 22,485 | |||||||||||
Equifax, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.600 | 12/01/24 | 30 | 31,639 | ||||||||||||
IHS Markit Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.125 | 08/01/23 | 5 | 5,322 | ||||||||||||
Massachusetts Institute of Technology, | ||||||||||||||||
Sr. Unsec’d. Notes, Series F | 2.989 | 07/01/50 | 35 | 38,887 | ||||||||||||
President & Fellows of Harvard College, | ||||||||||||||||
Unsec’d. Notes | 3.150 | 07/15/46 | 9 | 10,250 | ||||||||||||
Trustees of the University of Pennsylvania (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.610 | 02/15/2119 | 5 | 5,946 | ||||||||||||
Unsec’d. Notes, Series 2020 | 2.396 | 10/01/50 | 15 | 14,886 | ||||||||||||
University of Southern California, | ||||||||||||||||
Unsec’d. Notes, Series 2017 | 3.841 | 10/01/47 | 10 | 12,413 | ||||||||||||
Verisk Analytics, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.125 | 09/12/22 | 20 | 20,793 | ||||||||||||
Yale University, | ||||||||||||||||
Unsec’d. Notes, Series 2020 | 2.402 | 04/15/50 | 45 | 44,776 | ||||||||||||
|
| |||||||||||||||
250,707 | ||||||||||||||||
Computers 0.4% | ||||||||||||||||
Apple, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.250 | 02/23/26 | 130 | 142,945 | ||||||||||||
Sr. Unsec’d. Notes | 3.850 | 08/04/46 | 50 | 59,988 | ||||||||||||
Genpact Luxembourg Sarl/Genpact USA, Inc., | ||||||||||||||||
Gtd. Notes | 1.750 | 04/10/26 | 35 | 35,495 | ||||||||||||
|
| |||||||||||||||
238,428 | ||||||||||||||||
Diversified Financial Services 0.6% | ||||||||||||||||
Capital One Bank USA NA, | ||||||||||||||||
Sub. Notes | 3.375 | 02/15/23 | 20 | 20,890 | ||||||||||||
Discover Financial Services, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.100 | 02/09/27 | 20 | 22,717 | ||||||||||||
GE Capital International Funding Co. Unlimited Co., | ||||||||||||||||
Gtd. Notes | 3.373 | 11/15/25 | 135 | 148,195 | ||||||||||||
Jefferies Group LLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.750 | 10/15/32 | 55 | 56,569 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 53 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Diversified Financial Services (cont’d.) | ||||||||||||||||
Mastercard, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.375% | 04/01/24 | 20 | $ | 21,554 | |||||||||||
Private Export Funding Corp., | ||||||||||||||||
U.S. Gov’t. Gtd. Notes, Series KK | 3.550 | 01/15/24 | 25 | 26,888 | ||||||||||||
U.S. Gov’t. Gtd. Notes, Series PP | 1.400 | 07/15/28 | 45 | 45,568 | ||||||||||||
Visa, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.700 | 04/15/40 | 5 | 5,251 | ||||||||||||
|
| |||||||||||||||
347,632 | ||||||||||||||||
Electric 2.9% | ||||||||||||||||
AEP Texas, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.450 | 05/15/51 | 20 | 21,326 | ||||||||||||
Sr. Unsec’d. Notes | 3.800 | 10/01/47 | 30 | 33,614 | ||||||||||||
Sr. Unsec’d. Notes, Series I | 2.100 | 07/01/30 | 25 | 24,989 | ||||||||||||
AEP Transmission Co. LLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.750 | 12/01/47 | 15 | 17,637 | ||||||||||||
Alabama Power Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.850 | 12/01/42 | 15 | 17,650 | ||||||||||||
Ameren Illinois Co., | ||||||||||||||||
Sr. Sec’d. Notes | 4.150 | 03/15/46 | 30 | 37,311 | ||||||||||||
Arizona Public Service Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.600 | 08/15/29 | 10 | 10,636 | ||||||||||||
Atlantic City Electric Co., | ||||||||||||||||
First Mortgage | 2.300 | 03/15/31 | 10 | 10,368 | ||||||||||||
Berkshire Hathaway Energy Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 04/01/36 | 80 | 114,576 | ||||||||||||
CenterPoint Energy Houston Electric LLC, | ||||||||||||||||
General Ref. Mortgage | 3.950 | 03/01/48 | 20 | 24,353 | ||||||||||||
CenterPoint Energy, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.950 | 03/01/30 | 25 | 26,797 | ||||||||||||
Commonwealth Edison Co., | ||||||||||||||||
First Mortgage | 4.600 | 08/15/43 | 45 | 58,535 | ||||||||||||
Dominion Energy South Carolina, Inc., | ||||||||||||||||
First Mortgage | 5.450 | 02/01/41 | 20 | 28,020 | ||||||||||||
DTE Electric Co., | ||||||||||||||||
General Ref. Mortgage | 3.750 | 08/15/47 | 20 | 23,810 | ||||||||||||
Duke Energy Carolinas LLC, | ||||||||||||||||
First Mortgage | 4.250 | 12/15/41 | 15 | 18,539 | ||||||||||||
First Ref. Mortgage | 4.000 | 09/30/42 | 40 | 48,208 |
See Notes to Financial Statements.
54 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Electric (cont’d.) | ||||||||||||||||
Duke Energy Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.650% | 09/01/26 | 75 | $ | 80,038 | |||||||||||
Duke Energy Florida LLC, | ||||||||||||||||
First Mortgage | 6.350 | 09/15/37 | 15 | 22,528 | ||||||||||||
Duke Energy Indiana LLC, | ||||||||||||||||
First Mortgage, Series YYY | 3.250 | 10/01/49 | 25 | 27,124 | ||||||||||||
Emera US Finance LP (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 2.639 | 06/15/31 | 50 | 51,219 | ||||||||||||
Entergy Louisiana LLC, | ||||||||||||||||
Collateral Trust | 4.200 | 04/01/50 | 5 | 6,318 | ||||||||||||
Entergy Texas, Inc., | ||||||||||||||||
First Mortgage | 1.750 | 03/15/31 | 50 | 48,769 | ||||||||||||
Evergy Kansas Central, Inc., | ||||||||||||||||
First Mortgage | 4.125 | 03/01/42 | 15 | 18,197 | ||||||||||||
Eversource Energy, | ||||||||||||||||
Sr. Unsec’d. Notes, Series R | 1.650 | 08/15/30 | 15 | 14,652 | ||||||||||||
Exelon Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.625 | 06/15/35 | 5 | 6,711 | ||||||||||||
Florida Power & Light Co., | ||||||||||||||||
First Mortgage | 3.800 | 12/15/42 | 15 | 18,038 | ||||||||||||
First Mortgage | 5.250 | 02/01/41 | 25 | 35,036 | ||||||||||||
Fortis, Inc. (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.055 | 10/04/26 | 7 | 7,587 | ||||||||||||
Hydro-Quebec (Canada), | ||||||||||||||||
Local Gov’t. Gtd. Notes, Series IO | 8.050 | 07/07/24 | 10 | 12,102 | ||||||||||||
Louisville Gas & Electric Co., | ||||||||||||||||
First Mortgage | 5.125 | 11/15/40 | 5 | 6,586 | ||||||||||||
Nevada Power Co., | ||||||||||||||||
General Ref. Mortgage, Series R | 6.750 | 07/01/37 | 10 | 14,946 | ||||||||||||
NextEra Energy Capital Holdings, Inc., | ||||||||||||||||
Gtd. Notes | 2.750 | 11/01/29 | 30 | 32,072 | ||||||||||||
Northern States Power Co., | ||||||||||||||||
First Mortgage | 3.600 | 09/15/47 | 10 | 11,677 | ||||||||||||
Ohio Power Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 06/01/49 | 20 | 24,249 | ||||||||||||
Pacific Gas & Electric Co., | ||||||||||||||||
First Mortgage | 1.750 | 06/16/22 | 30 | 29,977 | ||||||||||||
First Mortgage | 3.950 | 12/01/47 | 40 | 37,504 | ||||||||||||
First Mortgage | 4.500 | 07/01/40 | 15 | 15,126 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 55 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Electric (cont’d.) | ||||||||||||||||
PacifiCorp, | ||||||||||||||||
First Mortgage | 2.700% | 09/15/30 | 25 | $ | 26,696 | |||||||||||
First Mortgage | 2.900 | 06/15/52 | 20 | 20,426 | ||||||||||||
First Mortgage | 5.250 | 06/15/35 | 45 | 60,176 | ||||||||||||
First Mortgage | 6.000 | 01/15/39 | 15 | 21,676 | ||||||||||||
PECO Energy Co., | ||||||||||||||||
First Mortgage | 2.800 | 06/15/50 | 10 | 10,238 | ||||||||||||
PPL Electric Utilities Corp., | ||||||||||||||||
First Mortgage | 4.125 | 06/15/44 | 15 | 18,475 | ||||||||||||
First Mortgage | 4.150 | 10/01/45 | 20 | 24,753 | ||||||||||||
First Mortgage | 6.250 | 05/15/39 | 10 | 14,835 | ||||||||||||
PSEG Power LLC, | ||||||||||||||||
Gtd. Notes | 3.850 | 06/01/23 | 140 | 148,240 | ||||||||||||
Public Service Electric & Gas Co., | ||||||||||||||||
First Mortgage, MTN | 3.600 | 12/01/47 | 5 | 5,848 | ||||||||||||
First Mortgage, MTN | 3.650 | 09/01/28 | 30 | 34,246 | ||||||||||||
First Ref. Mortgage, MTN | 3.950 | 05/01/42 | 10 | 12,137 | ||||||||||||
Puget Energy, Inc., | ||||||||||||||||
Sr. Sec’d. Notes | 3.650 | 05/15/25 | 20 | 21,681 | ||||||||||||
Sr. Sec’d. Notes | 4.100 | 06/15/30 | 35 | 39,707 | ||||||||||||
Sr. Sec’d. Notes, 144A | 2.379 | 06/15/28 | 5 | 5,113 | ||||||||||||
San Diego Gas & Electric Co., | ||||||||||||||||
First Mortgage, Series RRR | 3.750 | 06/01/47 | 5 | 5,816 | ||||||||||||
First Mortgage, Series UUU | 3.320 | 04/15/50 | 25 | 27,426 | ||||||||||||
Sempra Energy, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 02/01/48 | 15 | 17,246 | ||||||||||||
Southern California Edison Co., | ||||||||||||||||
First Ref. Mortgage | 4.000 | 04/01/47 | 25 | 26,641 | ||||||||||||
First Ref. Mortgage | 4.650 | 10/01/43 | 40 | 46,239 | ||||||||||||
First Ref. Mortgage, Series C | 3.500 | 10/01/23 | 50 | 52,777 | ||||||||||||
Tampa Electric Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.450 | 06/15/49 | 15 | 19,565 | ||||||||||||
Virginia Electric & Power Co., | ||||||||||||||||
Sr. Unsec’d. Notes, Series A | 6.000 | 05/15/37 | 20 | 28,387 | ||||||||||||
Sr. Unsec’d. Notes, Series B | 6.000 | 01/15/36 | 10 | 14,254 | ||||||||||||
Xcel Energy, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 0.500 | 10/15/23 | 20 | 20,023 | ||||||||||||
Sr. Unsec’d. Notes | 4.000 | 06/15/28 | 70 | 80,447 | ||||||||||||
|
| |||||||||||||||
1,839,893 |
See Notes to Financial Statements.
56 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Electronics 0.1% | ||||||||||||||||
Agilent Technologies, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.300% | 03/12/31 | 50 | $ | 50,994 | |||||||||||
Foods 0.2% | ||||||||||||||||
Hormel Foods Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 0.650 | 06/03/24 | 30 | 30,100 | ||||||||||||
Mondelez International, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.750 | 04/13/30 | 25 | 26,717 | ||||||||||||
Tyson Foods, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 03/01/26 | 60 | 67,330 | ||||||||||||
|
| |||||||||||||||
124,147 | ||||||||||||||||
Forest Products & Paper 0.0% | ||||||||||||||||
International Paper Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.000 | 09/15/35 | 10 | 12,837 | ||||||||||||
Gas 0.2% | ||||||||||||||||
Atmos Energy Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.375 | 09/15/49 | 10 | 11,130 | ||||||||||||
NiSource, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.800 | 02/15/44 | 15 | 19,255 | ||||||||||||
Sr. Unsec’d. Notes | 5.250 | 02/15/43 | 30 | 40,212 | ||||||||||||
Southern Co. Gas Capital Corp., | ||||||||||||||||
Gtd. Notes | 4.400 | 06/01/43 | 25 | 30,397 | ||||||||||||
|
| |||||||||||||||
100,994 | ||||||||||||||||
Healthcare-Products 0.1% | ||||||||||||||||
Abbott Laboratories, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.900 | 11/30/46 | 5 | 7,007 | ||||||||||||
Stryker Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.375 | 05/15/24 | 10 | 10,721 | ||||||||||||
Sr. Unsec’d. Notes | 3.375 | 11/01/25 | 10 | 10,951 | ||||||||||||
Thermo Fisher Scientific, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.133 | 03/25/25 | 10 | 11,099 | ||||||||||||
|
| |||||||||||||||
39,778 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 57 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Healthcare-Services 1.5% | ||||||||||||||||
Advocate Health & Hospitals Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.387% | 10/15/49 | 15 | $ | 17,066 | |||||||||||
Aetna, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.750 | 11/15/22 | 50 | 51,238 | ||||||||||||
AHS Hospital Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, Series 2021 | 2.780 | 07/01/51 | 10 | 10,149 | ||||||||||||
Anthem, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.650 | 12/01/27 | 90 | 101,432 | ||||||||||||
Sr. Unsec’d. Notes | 4.625 | 05/15/42 | 30 | 38,025 | ||||||||||||
Ascension Health, | ||||||||||||||||
Sr. Unsec’d. Notes, Series B | 2.532 | 11/15/29 | 15 | 16,031 | ||||||||||||
Unsec’d. Notes | 4.847 | 11/15/53 | 15 | 21,616 | ||||||||||||
Baylor Scott & White Holdings, | ||||||||||||||||
Unsec’d. Notes, Series 2021 | 1.777 | 11/15/30 | 30 | 29,924 | ||||||||||||
Children’s Health System of Texas, | ||||||||||||||||
Unsec’d. Notes | 2.511 | 08/15/50 | 10 | 9,610 | ||||||||||||
Children’s Hospital Corp. (The), | ||||||||||||||||
Gtd. Notes, Series 2017 | 4.115 | 01/01/47 | 10 | 13,049 | ||||||||||||
CommonSpirit Health, | ||||||||||||||||
Sr. Sec’d. Notes | 2.760 | 10/01/24 | 20 | 21,070 | ||||||||||||
HCA, Inc., | ||||||||||||||||
Sr. Sec’d. Notes | 3.500 | 07/15/51 | 40 | 41,261 | ||||||||||||
Kaiser Foundation Hospitals, | ||||||||||||||||
Gtd. Notes | 4.150 | 05/01/47 | 20 | 25,462 | ||||||||||||
Unsec’d. Notes, Series 2021 | 2.810 | 06/01/41 | 70 | 73,345 | ||||||||||||
Memorial Sloan-Kettering Cancer Center, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.000 | 07/01/42 | 30 | 41,650 | ||||||||||||
Unsec’d. Notes, Series 2020 | 2.955 | 01/01/50 | 10 | 10,535 | ||||||||||||
Methodist Hospital (The), | ||||||||||||||||
Unsec’d. Notes, Series 20A | 2.705 | 12/01/50 | 25 | 25,121 | ||||||||||||
Mount Sinai Hospitals Group, Inc., | ||||||||||||||||
Sec’d. Notes, Series 2019 | 3.737 | 07/01/49 | 10 | 11,237 | ||||||||||||
New York & Presbyterian Hospital (The), | ||||||||||||||||
Unsec’d. Notes | 4.024 | 08/01/45 | 45 | 56,938 | ||||||||||||
NYU Langone Hospitals, | ||||||||||||||||
Sec’d. Notes | 4.368 | 07/01/47 | 15 | 18,748 | ||||||||||||
PeaceHealth Obligated Group, | ||||||||||||||||
Sr. Unsec’d. Notes, Series 2020 | 1.375 | 11/15/25 | 5 | 5,086 | ||||||||||||
Providence St. Joseph Health Obligated Group, | ||||||||||||||||
Unsec’d. Notes, Series 19A | 2.532 | 10/01/29 | 10 | 10,619 |
See Notes to Financial Statements.
58 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Healthcare-Services (cont’d.) | ||||||||||||||||
Providence St. Joseph Health Obligated Group, (cont’d.) | ||||||||||||||||
Unsec’d. Notes, Series H | 2.746% | 10/01/26 | 30 | $ | 32,260 | |||||||||||
Stanford Health Care, | ||||||||||||||||
Unsec’d. Notes | 3.027 | 08/15/51 | 30 | 31,898 | ||||||||||||
Unsec’d. Notes, Series 2018 | 3.795 | 11/15/48 | 15 | 18,147 | ||||||||||||
Sutter Health, | ||||||||||||||||
Unsec’d. Notes, Series 2018 | 4.091 | 08/15/48 | 45 | 55,555 | ||||||||||||
UnitedHealth Group, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.050 | 05/15/41 | 30 | 32,192 | ||||||||||||
Sr. Unsec’d. Notes | 3.750 | 07/15/25 | 90 | 100,366 | ||||||||||||
Sr. Unsec’d. Notes | 4.250 | 06/15/48 | 25 | 31,751 | ||||||||||||
|
| |||||||||||||||
951,381 | ||||||||||||||||
Insurance 0.6% | ||||||||||||||||
American International Group, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 07/16/44 | 90 | 112,374 | ||||||||||||
Arch Capital Finance LLC, | ||||||||||||||||
Gtd. Notes | 4.011 | 12/15/26 | 45 | 51,221 | ||||||||||||
Chubb Corp. (The), | ||||||||||||||||
Gtd. Notes | 6.000 | 05/11/37 | 20 | 29,463 | ||||||||||||
CNA Financial Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.900 | 05/01/29 | 25 | 28,526 | ||||||||||||
Sr. Unsec’d. Notes | 3.950 | 05/15/24 | 35 | 37,940 | ||||||||||||
Everest Reinsurance Holdings, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.500 | 10/15/50 | 25 | 27,405 | ||||||||||||
Lincoln National Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.050 | 01/15/30 | 5 | 5,427 | ||||||||||||
Loews Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.200 | 05/15/30 | 15 | 16,437 | ||||||||||||
Markel Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.150 | 09/17/50 | 15 | 17,858 | ||||||||||||
Sr. Unsec’d. Notes | 4.300 | 11/01/47 | 15 | 18,130 | ||||||||||||
|
| |||||||||||||||
344,781 | ||||||||||||||||
Iron/Steel 0.0% | ||||||||||||||||
Steel Dynamics, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.400 | 06/15/25 | 10 | 10,503 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 59 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Lodging 0.1% | ||||||||||||||||
Marriott International, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.600% | 04/15/24 | 5 | $ | 5,334 | |||||||||||
Sr. Unsec’d. Notes, Series R | 3.125 | 06/15/26 | 45 | 48,181 | ||||||||||||
|
| |||||||||||||||
53,515 | ||||||||||||||||
Machinery-Diversified 0.2% | ||||||||||||||||
John Deere Capital Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.800 | 01/27/23 | 10 | 10,379 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 2.650 | 06/24/24 | 10 | 10,624 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 2.800 | 03/06/23 | 30 | 31,231 | ||||||||||||
Westinghouse Air Brake Technologies Corp., | ||||||||||||||||
Gtd. Notes | 3.450 | 11/15/26 | 60 | 64,609 | ||||||||||||
Gtd. Notes | 4.950 | 09/15/28 | 30 | 35,162 | ||||||||||||
|
| |||||||||||||||
152,005 | ||||||||||||||||
Media 1.0% | ||||||||||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital, | ||||||||||||||||
Sr. Sec’d. Notes | 3.700 | 04/01/51 | 110 | 111,039 | ||||||||||||
Sr. Sec’d. Notes | 3.900 | 06/01/52 | 5 | 5,186 | ||||||||||||
Sr. Sec’d. Notes | 4.800 | 03/01/50 | 15 | 17,635 | ||||||||||||
Sr. Sec’d. Notes | 5.375 | 04/01/38 | 45 | 56,225 | ||||||||||||
Sr. Sec’d. Notes | 6.484 | 10/23/45 | 50 | 70,412 | ||||||||||||
Comcast Corp., | ||||||||||||||||
Gtd. Notes | 3.450 | 02/01/50 | 40 | 44,454 | ||||||||||||
Gtd. Notes | 3.750 | 04/01/40 | 10 | 11,560 | ||||||||||||
Gtd. Notes | 4.600 | 08/15/45 | 55 | 70,388 | ||||||||||||
Gtd. Notes | 4.650 | 07/15/42 | 15 | 19,181 | ||||||||||||
Discovery Communications LLC, | ||||||||||||||||
Gtd. Notes | 4.000 | 09/15/55 | 76 | 81,684 | ||||||||||||
Gtd. Notes | 4.125 | 05/15/29 | 10 | 11,394 | ||||||||||||
Gtd. Notes | 5.300 | 05/15/49 | 30 | 38,534 | ||||||||||||
ViacomCBS, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.875 | 04/01/24 | 20 | 21,492 | ||||||||||||
Sr. Unsec’d. Notes | 5.850 | 09/01/43 | 20 | 27,828 |
See Notes to Financial Statements.
60 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Media (cont’d.) | ||||||||||||||||
Walt Disney Co. (The), | ||||||||||||||||
Gtd. Notes | 7.300% | 04/30/28 | 40 | $ | 54,349 | |||||||||||
|
| |||||||||||||||
641,361 | ||||||||||||||||
Mining 0.5% | ||||||||||||||||
Barrick North America Finance LLC (Canada), | ||||||||||||||||
Gtd. Notes | 5.700 | 05/30/41 | 50 | 70,115 | ||||||||||||
Gtd. Notes | 5.750 | 05/01/43 | 30 | 43,112 | ||||||||||||
Barrick PD Australia Finance Pty Ltd. (Canada), | ||||||||||||||||
Gtd. Notes | 5.950 | 10/15/39 | 20 | 28,192 | ||||||||||||
Kinross Gold Corp. (Canada), | ||||||||||||||||
Gtd. Notes | 4.500 | 07/15/27 | 65 | 74,650 | ||||||||||||
Newmont Corp., | ||||||||||||||||
Gtd. Notes | 2.250 | 10/01/30 | 20 | 20,339 | ||||||||||||
Gtd. Notes | 2.800 | 10/01/29 | 40 | 42,568 | ||||||||||||
Gtd. Notes | 5.450 | 06/09/44 | 15 | 20,995 | ||||||||||||
|
| |||||||||||||||
299,971 | ||||||||||||||||
Miscellaneous Manufacturing 0.1% | ||||||||||||||||
Pentair Finance Sarl, | ||||||||||||||||
Gtd. Notes | 4.500 | 07/01/29 | 15 | 17,593 | ||||||||||||
Textron, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.450 | 03/15/31 | 55 | 56,192 | ||||||||||||
|
| |||||||||||||||
73,785 | ||||||||||||||||
Oil & Gas 0.8% | ||||||||||||||||
Chevron Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.078 | 05/11/50 | 5 | 5,279 | ||||||||||||
Chevron USA, Inc., | ||||||||||||||||
Gtd. Notes | 6.000 | 03/01/41 | 20 | 29,835 | ||||||||||||
ConocoPhillips, | ||||||||||||||||
Gtd. Notes, 144A | 2.400 | 02/15/31 | 15 | 15,577 | ||||||||||||
Gtd. Notes, 144A | 3.750 | 10/01/27 | 35 | 39,688 | ||||||||||||
Gtd. Notes, 144A | 4.300 | 08/15/28 | 55 | 64,398 | ||||||||||||
ConocoPhillips Co., | ||||||||||||||||
Gtd. Notes | 4.950 | 03/15/26 | 30 | 34,957 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 61 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Oil & Gas (cont’d.) | ||||||||||||||||
Devon Energy Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.600% | 07/15/41 | 10 | $ | 12,491 | |||||||||||
Diamondback Energy, Inc., | ||||||||||||||||
Gtd. Notes | 3.125 | 03/24/31 | 45 | 47,217 | ||||||||||||
Gtd. Notes | 3.500 | 12/01/29 | 35 | 37,902 | ||||||||||||
Ecopetrol SA (Colombia), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.375 | 06/26/26 | 30 | 32,877 | ||||||||||||
EOG Resources, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.900 | 04/01/35 | 25 | 29,371 | ||||||||||||
Equinor ASA (Norway), | ||||||||||||||||
Gtd. Notes | 3.700 | 04/06/50 | 20 | 23,592 | ||||||||||||
Exxon Mobil Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.114 | 03/01/46 | 15 | 18,187 | ||||||||||||
Pioneer Natural Resources Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.900 | 08/15/30 | 40 | 38,867 | ||||||||||||
Sr. Unsec’d. Notes | 2.150 | 01/15/31 | 20 | 19,769 | ||||||||||||
TotalEnergies Capital International SA (France), | ||||||||||||||||
Gtd. Notes | 2.829 | 01/10/30 | 25 | 27,125 | ||||||||||||
Valero Energy Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 04/01/29 | 20 | 22,410 | ||||||||||||
|
| |||||||||||||||
499,542 | ||||||||||||||||
Oil & Gas Services 0.1% | ||||||||||||||||
Halliburton Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 08/01/43 | 25 | 29,106 | ||||||||||||
Packaging & Containers 0.1% | ||||||||||||||||
Berry Global, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 0.950 | 02/15/24 | 35 | 35,098 | ||||||||||||
Sr. Sec’d. Notes, 144A | 1.570 | 01/15/26 | 55 | 55,405 | ||||||||||||
|
| |||||||||||||||
90,503 | ||||||||||||||||
Pharmaceuticals 2.2% | ||||||||||||||||
AbbVie, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.200 | 11/21/29 | 20 | 22,000 | ||||||||||||
Sr. Unsec’d. Notes | 4.250 | 11/21/49 | 105 | 128,734 | ||||||||||||
Sr. Unsec’d. Notes | 4.550 | 03/15/35 | 40 | 49,331 | ||||||||||||
Sr. Unsec’d. Notes | 4.700 | 05/14/45 | 50 | 63,398 |
See Notes to Financial Statements.
62 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Pharmaceuticals (cont’d.) | ||||||||||||||||
Astrazeneca Finance LLC (United Kingdom), | ||||||||||||||||
Gtd. Notes | 2.250% | 05/28/31 | 15 | $ | 15,579 | |||||||||||
Becton, Dickinson & Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.734 | 12/15/24 | 32 | 34,830 | ||||||||||||
Bristol-Myers Squibb Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.250 | 10/26/49 | 20 | 25,815 | ||||||||||||
Cigna Corp., | ||||||||||||||||
Gtd. Notes | 4.500 | 02/25/26 | 120 | 137,068 | ||||||||||||
Gtd. Notes | 4.900 | 12/15/48 | 15 | 19,898 | ||||||||||||
Sr. Unsec’d. Notes | 2.375 | 03/15/31 | 20 | 20,675 | ||||||||||||
Sr. Unsec’d. Notes | 2.400 | 03/15/30 | 20 | 20,797 | ||||||||||||
Sr. Unsec’d. Notes | 3.400 | 03/15/50 | 45 | 48,398 | ||||||||||||
CVS Health Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.300 | 03/25/28 | 37 | 42,842 | ||||||||||||
Sr. Unsec’d. Notes | 4.780 | 03/25/38 | 35 | 43,950 | ||||||||||||
Sr. Unsec’d. Notes | 5.050 | 03/25/48 | 25 | 33,292 | ||||||||||||
Sr. Unsec’d. Notes | 5.125 | 07/20/45 | 40 | 52,971 | ||||||||||||
GlaxoSmithKline Capital PLC (United Kingdom), | ||||||||||||||||
Gtd. Notes | 2.850 | 05/08/22 | 45 | 45,915 | ||||||||||||
Johnson & Johnson, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.625 | 03/03/37 | 35 | 41,509 | ||||||||||||
Merck & Co., Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.400 | 09/15/22 | 100 | 101,926 | ||||||||||||
Sr. Unsec’d. Notes | 3.400 | 03/07/29 | 15 | 16,995 | ||||||||||||
Mylan, Inc., | ||||||||||||||||
Gtd. Notes | 4.200 | 11/29/23 | 30 | 32,149 | ||||||||||||
Gtd. Notes | 5.200 | 04/15/48 | 75 | 93,891 | ||||||||||||
Pfizer, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.550 | 05/28/40 | 25 | 25,659 | ||||||||||||
Takeda Pharmaceutical Co. Ltd. (Japan), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.050 | 03/31/30 | 135 | 135,702 | ||||||||||||
Viatris, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 3.850 | 06/22/40 | 20 | 21,808 | ||||||||||||
Gtd. Notes, 144A | 4.000 | 06/22/50 | 45 | 48,685 | ||||||||||||
Wyeth LLC, | ||||||||||||||||
Gtd. Notes | 6.450 | 02/01/24 | 50 | 57,456 | ||||||||||||
|
| |||||||||||||||
1,381,273 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 63 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Pipelines 1.6% | ||||||||||||||||
Energy Transfer LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.900% | 07/15/26 | 50 | $ | 55,033 | |||||||||||
Sr. Unsec’d. Notes | 4.200 | 04/15/27 | 30 | 33,486 | ||||||||||||
Sr. Unsec’d. Notes | 4.750 | 01/15/26 | 40 | 45,139 | ||||||||||||
Sr. Unsec’d. Notes | 4.900 | 03/15/35 | 30 | 35,002 | ||||||||||||
Sr. Unsec’d. Notes | 5.300 | 04/15/47 | 10 | 11,831 | ||||||||||||
Sr. Unsec’d. Notes | 5.350 | 05/15/45 | 5 | 5,906 | ||||||||||||
Sr. Unsec’d. Notes | 6.000 | 06/15/48 | 15 | 19,136 | ||||||||||||
Sr. Unsec’d. Notes | 6.625 | 10/15/36 | 10 | 13,323 | ||||||||||||
Enterprise Products Operating LLC, | ||||||||||||||||
Gtd. Notes | 4.850 | 03/15/44 | 110 | 137,815 | ||||||||||||
Kinder Morgan, Inc., | ||||||||||||||||
Gtd. Notes | 3.250 | 08/01/50 | 5 | 4,953 | ||||||||||||
Magellan Midstream Partners LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.250 | 06/01/30 | 20 | 21,833 | ||||||||||||
Sr. Unsec’d. Notes | 3.950 | 03/01/50 | 30 | 33,063 | ||||||||||||
Sr. Unsec’d. Notes | 4.200 | 10/03/47 | 10 | 11,318 | ||||||||||||
MPLX LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.125 | 03/01/27 | 10 | 11,273 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 07/15/23 | 20 | 21,339 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/15/38 | 20 | 23,142 | ||||||||||||
Sr. Unsec’d. Notes | 4.700 | 04/15/48 | 50 | 59,023 | ||||||||||||
Sr. Unsec’d. Notes | 4.800 | 02/15/29 | 60 | 70,977 | ||||||||||||
ONEOK Partners LP, | ||||||||||||||||
Gtd. Notes | 3.375 | 10/01/22 | 35 | 35,907 | ||||||||||||
ONEOK, Inc., | ||||||||||||||||
Gtd. Notes | 3.100 | 03/15/30 | 100 | 105,984 | ||||||||||||
Gtd. Notes | 4.450 | 09/01/49 | 20 | 22,727 | ||||||||||||
Gtd. Notes | 4.950 | 07/13/47 | 10 | 11,964 | ||||||||||||
Phillips 66 Partners LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.750 | 03/01/28 | 10 | 11,032 | ||||||||||||
Sr. Unsec’d. Notes | 4.900 | 10/01/46 | 25 | 29,751 | ||||||||||||
Plains All American Pipeline LP/PAA Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.550 | 12/15/29 | 25 | 26,727 | ||||||||||||
Sr. Unsec’d. Notes | 3.800 | 09/15/30 | 5 | 5,419 | ||||||||||||
Transcontinental Gas Pipe Line Co. LLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.250 | 05/15/30 | 45 | 49,064 | ||||||||||||
Sr. Unsec’d. Notes | 4.600 | 03/15/48 | 25 | 30,691 |
See Notes to Financial Statements.
64 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Pipelines (cont’d.) | ||||||||||||||||
Williams Cos., Inc. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.750% | 06/15/27 | 30 | $ | 33,511 | |||||||||||
Sr. Unsec’d. Notes | 4.850 | 03/01/48 | 5 | 6,174 | ||||||||||||
|
| |||||||||||||||
982,543 | ||||||||||||||||
Real Estate Investment Trusts (REITs) 0.7% | ||||||||||||||||
Boston Properties LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.850 | 02/01/23 | 20 | 20,827 | ||||||||||||
Essex Portfolio LP, | ||||||||||||||||
Gtd. Notes | 1.700 | 03/01/28 | 15 | 15,024 | ||||||||||||
Healthpeak Properties, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.000 | 01/15/30 | 20 | 21,662 | ||||||||||||
Kimco Realty Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.900 | 03/01/28 | 25 | 25,262 | ||||||||||||
Realty Income Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.000 | 01/15/27 | 10 | 10,910 | ||||||||||||
Simon Property Group LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.450 | 09/13/29 | 20 | 20,821 | ||||||||||||
Sr. Unsec’d. Notes | 3.375 | 10/01/24 | 70 | 75,504 | ||||||||||||
Sr. Unsec’d. Notes | 3.500 | 09/01/25 | 5 | 5,485 | ||||||||||||
Sr. Unsec’d. Notes | 3.750 | 02/01/24 | 10 | 10,708 | ||||||||||||
Spirit Realty LP, | ||||||||||||||||
Gtd. Notes | 2.700 | 02/15/32 | 25 | 25,413 | ||||||||||||
Ventas Realty LP, | ||||||||||||||||
Gtd. Notes | 3.850 | 04/01/27 | 15 | 16,917 | ||||||||||||
VEREIT Operating Partnership LP, | ||||||||||||||||
Gtd. Notes | 3.100 | 12/15/29 | 45 | 48,877 | ||||||||||||
Welltower, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.700 | 02/15/27 | 10 | 10,686 | ||||||||||||
Weyerhaeuser Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 04/15/30 | 65 | 74,770 | ||||||||||||
WP Carey, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.250 | 04/01/33 | 35 | 34,460 | ||||||||||||
|
| |||||||||||||||
417,326 | ||||||||||||||||
Retail 0.4% | ||||||||||||||||
AutoZone, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.650 | 01/15/31 | 5 | 4,831 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 65 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Retail (cont’d.) | ||||||||||||||||
AutoZone, Inc., (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 3.750% | 04/18/29 | 30 | $ | 33,957 | |||||||||||
Dollar Tree, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.200 | 05/15/28 | 15 | 17,217 | ||||||||||||
Home Depot, Inc. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.750 | 02/15/24 | 110 | 118,439 | ||||||||||||
Sr. Unsec’d. Notes | 3.900 | 06/15/47 | 25 | 30,299 | ||||||||||||
Lowe’s Cos., Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.100 | 05/03/27 | 20 | 21,985 | ||||||||||||
McDonald’s Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, MTN | 3.700 | 01/30/26 | 5 | 5,571 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 4.700 | 12/09/35 | 25 | 31,602 | ||||||||||||
O’Reilly Automotive, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.750 | 03/15/31 | 15 | 14,688 | ||||||||||||
|
| |||||||||||||||
278,589 | ||||||||||||||||
Semiconductors 0.3% | ||||||||||||||||
Broadcom, Inc., | ||||||||||||||||
Gtd. Notes | 3.150 | 11/15/25 | 13 | 13,974 | ||||||||||||
Gtd. Notes | 4.110 | 09/15/28 | 80 | 90,293 | ||||||||||||
Gtd. Notes, 144A | 3.500 | 02/15/41 | 25 | 25,977 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.419 | 04/15/33 | 62 | 66,359 | ||||||||||||
|
| |||||||||||||||
196,603 | ||||||||||||||||
Software 0.5% | ||||||||||||||||
Fidelity National Information Services, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.100 | 03/01/41 | 15 | 15,752 | ||||||||||||
Fiserv, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.750 | 07/01/24 | 5 | 5,294 | ||||||||||||
Sr. Unsec’d. Notes | 3.850 | 06/01/25 | 15 | 16,529 | ||||||||||||
Intuit, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.350 | 07/15/27 | 5 | 5,044 | ||||||||||||
Microsoft Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.921 | 03/17/52 | 42 | 45,316 | ||||||||||||
Oracle Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.800 | 04/01/27 | 85 | 90,911 | ||||||||||||
Sr. Unsec’d. Notes | 2.950 | 05/15/25 | 85 | 90,744 |
See Notes to Financial Statements.
66 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Software (cont’d.) | ||||||||||||||||
ServiceNow, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.400% | 09/01/30 | 30 | $ | 28,656 | |||||||||||
|
| |||||||||||||||
298,246 | ||||||||||||||||
Telecommunications 1.4% | ||||||||||||||||
AT&T, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.700 | 03/25/26 | 100 | 101,534 | ||||||||||||
Sr. Unsec’d. Notes | 3.500 | 06/01/41 | 110 | 116,598 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 2.550 | 12/01/33 | 54 | 54,473 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.550 | 09/15/55 | 85 | 87,861 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.800 | 12/01/57 | 30 | 31,962 | ||||||||||||
T-Mobile USA, Inc., | ||||||||||||||||
Sr. Sec’d. Notes | 2.050 | 02/15/28 | 50 | 51,269 | ||||||||||||
Sr. Sec’d. Notes | 3.000 | 02/15/41 | 100 | 100,984 | ||||||||||||
Sr. Sec’d. Notes | 3.875 | 04/15/30 | 15 | 16,950 | ||||||||||||
Verizon Communications, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.650 | 11/20/40 | 10 | 9,782 | ||||||||||||
Sr. Unsec’d. Notes | 3.400 | 03/22/41 | 45 | 48,607 | ||||||||||||
Sr. Unsec’d. Notes | 4.016 | 12/03/29 | 60 | 69,400 | ||||||||||||
Sr. Unsec’d. Notes | 4.522 | 09/15/48 | 148 | 187,159 | ||||||||||||
|
| |||||||||||||||
876,579 | ||||||||||||||||
Transportation 0.3% | ||||||||||||||||
Burlington Northern Santa Fe LLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.750 | 04/01/24 | 75 | 80,924 | ||||||||||||
CSX Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.800 | 03/01/28 | 40 | 45,438 | ||||||||||||
Sr. Unsec’d. Notes | 3.800 | 04/15/50 | 10 | 11,705 | ||||||||||||
Union Pacific Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.000 | 04/15/27 | 20 | 21,837 | ||||||||||||
Sr. Unsec’d. Notes | 3.250 | 02/05/50 | 30 | 32,264 | ||||||||||||
Sr. Unsec’d. Notes | 3.600 | 09/15/37 | 10 | 11,417 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.799 | 04/06/71 | 5 | 5,770 | ||||||||||||
|
| |||||||||||||||
209,355 | ||||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | ||||||||||||||||
(cost $15,630,354) | 16,621,927 | |||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 67 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS 1.0% | ||||||||||||||||
Arizona 0.1% | ||||||||||||||||
Salt River Project Agricultural Improvement & Power District, | ||||||||||||||||
Revenue Bonds, BABs | 4.839% | 01/01/41 | 35 | $ | 47,332 | |||||||||||
California 0.4% | ||||||||||||||||
Bay Area Toll Authority, | ||||||||||||||||
Revenue Bonds, BABs, Series F2 | 6.263 | 04/01/49 | 90 | 148,413 | ||||||||||||
Taxable, Revenue Bonds | 2.574 | 04/01/31 | 15 | 16,103 | ||||||||||||
Los Angeles Department of Water & Power, Power System Revenue, | ||||||||||||||||
Revenue Bonds, BABs | 5.716 | 07/01/39 | 20 | 28,805 | ||||||||||||
State of California, | ||||||||||||||||
General Obligation Unlimited, Taxable, BABs | 7.550 | 04/01/39 | 30 | 51,838 | ||||||||||||
|
| |||||||||||||||
245,159 | ||||||||||||||||
Illinois 0.0% | ||||||||||||||||
State of Illinois, | ||||||||||||||||
General Obligation Unlimited, Taxable | 5.100 | 06/01/33 | 25 | 29,810 | ||||||||||||
Michigan 0.1% | ||||||||||||||||
Michigan Finance Authority, | ||||||||||||||||
Taxable, Revenue Bonds | 3.384 | 12/01/40 | 15 | 16,980 | ||||||||||||
University of Michigan, | ||||||||||||||||
Taxable, Revenue Bonds, Series B | 2.437 | 04/01/40 | 25 | 25,897 | ||||||||||||
|
| |||||||||||||||
42,877 | ||||||||||||||||
New Jersey 0.1% | ||||||||||||||||
New Jersey Turnpike Authority, | ||||||||||||||||
Taxable, Revenue Bonds, BABs, Series F | 7.414 | 01/01/40 | 60 | 101,143 | ||||||||||||
New York 0.1% | ||||||||||||||||
New York State Dormitory Authority, | ||||||||||||||||
Taxable, Revenue Bonds, Series C | 2.202 | 03/15/34 | 30 | 30,743 | ||||||||||||
Port Authority of New York & New Jersey, | ||||||||||||||||
Revenue Bonds | 4.458 | 10/01/62 | 15 | 20,600 | ||||||||||||
|
| |||||||||||||||
51,343 |
See Notes to Financial Statements.
68 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) | ||||||||||||||||
Ohio 0.1% | ||||||||||||||||
JobsOhio Beverage System, | ||||||||||||||||
Taxable, Revenue Bonds, Series A | 2.833% | 01/01/38 | 5 | $ | 5,271 | |||||||||||
Ohio State University (The), | ||||||||||||||||
Taxable, Revenue Bonds, Series A | 4.048 | 12/01/56 | 12 | 15,842 | ||||||||||||
Taxable, Revenue Bonds, Series A | 4.800 | 06/01/2111 | 25 | 36,710 | ||||||||||||
Taxable, Revenue Bonds, BABs, Series C | 4.910 | 06/01/40 | 10 | 13,720 | ||||||||||||
|
| |||||||||||||||
71,543 | ||||||||||||||||
Texas 0.0% | ||||||||||||||||
Texas Private Activity Bond Surface Transportation Corp., | ||||||||||||||||
Taxable, Revenue Bonds, Series B | 3.922 | 12/31/49 | 15 | 17,234 | ||||||||||||
Virginia 0.1% | ||||||||||||||||
University of Virginia, | ||||||||||||||||
Taxable, Revenue Bonds, Series B | 2.584 | 11/01/51 | 40 | 40,873 | ||||||||||||
|
| |||||||||||||||
TOTAL MUNICIPAL BONDS | ||||||||||||||||
(cost $573,139) | 647,314 | |||||||||||||||
|
| |||||||||||||||
SOVEREIGN BONDS 1.7% | ||||||||||||||||
Hungary Government International Bond (Hungary), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 03/29/41 | 16 | 26,942 | ||||||||||||
Indonesia Government International Bond (Indonesia), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.500 | 01/11/28 | 200 | 219,980 | ||||||||||||
Israel Government International Bond (Israel), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.875 | 03/16/26 | 225 | 242,966 | ||||||||||||
Mexico Government International Bond (Mexico), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 10/02/23 | 20 | 21,592 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/22/29 | 200 | 227,832 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 4.750 | 03/08/44 | 66 | 73,172 | ||||||||||||
Philippine Government International Bond (Philippines), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/14/31 | 100 | 147,806 | ||||||||||||
Province of Quebec (Canada), | ||||||||||||||||
Debentures, Series NN | 7.125 | 02/09/24 | 40 | 46,574 | ||||||||||||
Uruguay Government International Bond (Uruguay), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.975 | 04/20/55 | 10 | 12,933 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 69 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Principal | ||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||
Description | Rate | Date | (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Uruguay Government International Bond (Uruguay), (cont’d.) | 5.100% | 06/18/50 | 55 | $ | 72,134 | |||||||||||
|
| |||||||||||||||
TOTAL SOVEREIGN BONDS | ||||||||||||||||
(cost $1,064,040) | 1,091,931 | |||||||||||||||
|
| |||||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS 27.9% | ||||||||||||||||
Federal Home Loan Bank | 3.250 | 11/16/28 | 70 | 80,560 | ||||||||||||
Federal Home Loan Mortgage Corp. | 0.375 | 05/05/23 | 105 | 105,385 | ||||||||||||
Federal Home Loan Mortgage Corp. | 1.500 | 10/01/50 | 241 | 239,190 | ||||||||||||
Federal Home Loan Mortgage Corp. | 2.000 | 01/01/32 | 42 | 44,014 | ||||||||||||
Federal Home Loan Mortgage Corp. | 2.000 | 12/01/50 | 478 | 487,615 | ||||||||||||
Federal Home Loan Mortgage Corp. | 2.500 | 07/01/31 | 110 | 116,429 | ||||||||||||
Federal Home Loan Mortgage Corp. | 2.500 | 04/01/51 | 312 | 325,463 | ||||||||||||
Federal Home Loan Mortgage Corp. | 2.500 | 06/01/51 | 495 | 516,368 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 02/01/32 | 31 | 33,141 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 02/01/32 | 35 | 37,704 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 01/01/37 | 12 | 12,921 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 12/01/37 | 18 | 19,106 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 12/01/42 | 107 | 114,713 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 11/01/46 | 34 | 36,418 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 01/01/47 | 215 | 228,787 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 03/01/47 | 143 | 151,240 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 12/01/47 | 89 | 93,142 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 12/01/47 | 141 | 148,715 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 11/01/37 | 20 | 21,414 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 06/01/42 | 29 | 31,318 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 04/01/46 | 41 | 44,505 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 11/01/47 | 55 | 58,400 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 11/01/47 | 70 | 74,729 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 02/01/48 | 199 | 211,876 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 04/01/48 | 450 | 477,786 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 10/01/45 | 37 | 40,443 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 05/01/46 | 77 | 83,093 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 03/01/47 | 45 | 48,639 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 01/01/48 | 72 | 77,593 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.500 | 07/01/47 | 79 | 86,358 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.500 | 12/01/48 | 23 | 24,518 | ||||||||||||
Federal Home Loan Mortgage Corp. | 6.250 | 07/15/32 | 30 | 44,853 | ||||||||||||
Federal National Mortgage Assoc. | 0.500 | 06/17/25 | 50 | 49,928 | ||||||||||||
Federal National Mortgage Assoc. | 0.500 | 11/07/25 | 30 | 29,875 | ||||||||||||
Federal National Mortgage Assoc. | 0.625 | 04/22/25 | 15 | 15,072 |
See Notes to Financial Statements.
70 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Principal | ||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||
Description | Rate | Date | (000)# | Value | ||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) | ||||||||||||||||
Federal National Mortgage Assoc. | 0.750% | 10/08/27 | 110 | $ | 108,878 | |||||||||||
Federal National Mortgage Assoc. | 0.875 | 08/05/30 | 50 | 48,192 | ||||||||||||
Federal National Mortgage Assoc. | 1.500 | 10/01/50 | 254 | 252,034 | ||||||||||||
Federal National Mortgage Assoc. | 1.500 | 02/01/51 | 246 | 244,038 | ||||||||||||
Federal National Mortgage Assoc. | 2.000 | 07/01/40 | 233 | 238,697 | ||||||||||||
Federal National Mortgage Assoc. | 2.000 | 01/01/41 | 494 | 509,659 | ||||||||||||
Federal National Mortgage Assoc. | 2.000 | 05/01/41 | 480 | 493,386 | ||||||||||||
Federal National Mortgage Assoc. | 2.000 | 09/01/50 | 371 | 378,451 | ||||||||||||
Federal National Mortgage Assoc. | 2.000 | 12/01/50 | 184 | 188,244 | ||||||||||||
Federal National Mortgage Assoc. | 2.000 | 01/01/51 | 341 | 347,798 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 02/05/24 | 95 | 100,298 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 06/01/28 | 97 | 101,735 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 01/01/32 | 104 | 109,756 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 06/01/41 | 324 | 338,848 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 02/01/43 | 44 | 45,784 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 09/01/46 | 40 | 41,762 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 09/01/46 | 80 | 83,159 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 05/01/50 | 228 | 237,418 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 08/01/50 | 438 | 456,788 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 10/01/50 | 531 | 553,023 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 04/01/51 | 431 | 449,159 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | 08/01/51 | 120 | 125,631 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | TBA | 750 | 784,541 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 11/01/28 | 59 | 62,623 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 01/01/30 | 119 | 126,562 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 12/01/36 | 38 | 40,368 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 10/01/42 | 20 | 21,700 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 02/01/43 | 238 | 254,551 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 04/01/43 | 64 | 67,944 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 08/01/43 | 177 | 189,198 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 01/01/47 | 216 | 228,891 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 02/01/47 | 145 | 153,353 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 01/01/50 | 134 | 140,096 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 08/01/31 | 38 | 41,005 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 10/01/32 | 20 | 21,579 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 06/01/33 | 29 | 31,083 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 01/01/42 | 93 | 100,978 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 03/01/42 | 86 | 92,986 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 10/01/42 | 236 | 256,237 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 11/01/42 | 64 | 70,277 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 08/01/43 | 82 | 89,883 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 03/01/45 | 141 | 152,539 |
See Notes to Financial Statements. |
PGIM Day One Underlying Funds | 71 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) | ||||||||||||
Federal National Mortgage Assoc. | 3.500% | 01/01/46 | 29 | $ | 31,139 | |||||||
Federal National Mortgage Assoc. | 3.500 | 12/01/46 | 275 | 293,737 | ||||||||
Federal National Mortgage Assoc. | 3.500 | 01/01/47 | 63 | 67,963 | ||||||||
Federal National Mortgage Assoc. | 3.500 | 09/01/47 | 98 | 106,061 | ||||||||
Federal National Mortgage Assoc. | 4.000 | 01/01/41 | 156 | 171,376 | ||||||||
Federal National Mortgage Assoc. | 4.000 | 04/01/41 | 92 | 101,362 | ||||||||
Federal National Mortgage Assoc. | 4.000 | 02/01/47 | 109 | 117,253 | ||||||||
Federal National Mortgage Assoc. | 4.000 | 04/01/48 | 186 | 198,137 | ||||||||
Federal National Mortgage Assoc. | 4.000 | 12/01/48 | 174 | 186,252 | ||||||||
Federal National Mortgage Assoc. | 4.000 | 03/01/49 | 368 | 392,225 | ||||||||
Federal National Mortgage Assoc. | 4.500 | 03/01/41 | 87 | 96,136 | ||||||||
Federal National Mortgage Assoc. | 4.500 | 02/01/44 | 81 | 89,067 | ||||||||
Federal National Mortgage Assoc. | 4.500 | 01/01/45 | 84 | 94,011 | ||||||||
Federal National Mortgage Assoc. | 4.500 | 04/01/48 | 71 | 75,824 | ||||||||
Federal National Mortgage Assoc. | 4.500 | 05/01/48 | 18 | 19,603 | ||||||||
Federal National Mortgage Assoc. | 4.500 | 08/01/48 | 25 | 26,735 | ||||||||
Federal National Mortgage Assoc. | 4.500 | 02/01/49 | 21 | 22,507 | ||||||||
Federal National Mortgage Assoc. | 5.000 | 11/01/35 | 108 | 122,777 | ||||||||
Federal National Mortgage Assoc. | 5.000 | 06/01/40 | 23 | 26,040 | ||||||||
Federal National Mortgage Assoc. | 5.000 | 03/01/42 | 50 | 56,612 | ||||||||
Federal National Mortgage Assoc. | 6.625 | 11/15/30 | 15 | 21,952 | ||||||||
Government National Mortgage Assoc. | 2.500 | TBA | 500 | 518,809 | ||||||||
Government National Mortgage Assoc. | 2.500 | 03/20/43 | 10 | 10,594 | ||||||||
Government National Mortgage Assoc. | 2.500 | 12/20/46 | 19 | 20,083 | ||||||||
Government National Mortgage Assoc. | 3.000 | 01/20/43 | 92 | 98,504 | ||||||||
Government National Mortgage Assoc. | 3.000 | 04/20/45 | 41 | 43,719 | ||||||||
Government National Mortgage Assoc. | 3.000 | 07/20/46 | 76 | 80,201 | ||||||||
Government National Mortgage Assoc. | 3.000 | 09/20/46 | 78 | 82,370 | ||||||||
Government National Mortgage Assoc. | 3.000 | 11/20/46 | 55 | 57,700 | ||||||||
Government National Mortgage Assoc. | 3.000 | 03/20/49 | 111 | 116,610 | ||||||||
Government National Mortgage Assoc. | 3.500 | 12/20/42 | 190 | 204,206 | ||||||||
Government National Mortgage Assoc. | 3.500 | 01/20/44 | 54 | 58,276 | ||||||||
Government National Mortgage Assoc. | 3.500 | 04/20/45 | 31 | 32,876 | ||||||||
Government National Mortgage Assoc. | 3.500 | 07/20/46 | 140 | 149,167 | ||||||||
Government National Mortgage Assoc. | 3.500 | 08/20/46 | 211 | 225,108 | ||||||||
Government National Mortgage Assoc. | 3.500 | 09/20/46 | 33 | 35,201 | ||||||||
Government National Mortgage Assoc. | 3.500 | 06/20/47 | 83 | 88,124 | ||||||||
Government National Mortgage Assoc. | 3.500 | 07/20/47 | 93 | 98,304 | ||||||||
Government National Mortgage Assoc. | 3.500 | 11/20/47 | 62 | 66,273 | ||||||||
Government National Mortgage Assoc. | 4.000 | 12/20/45 | 91 | 98,520 | ||||||||
Government National Mortgage Assoc. | 4.000 | 10/20/46 | 6 | 5,960 | ||||||||
Government National Mortgage Assoc. | 4.000 | 03/20/47 | 47 | 50,880 |
See Notes to Financial Statements.
72 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) | ||||||||||||
Government National Mortgage Assoc. | 4.000% | 07/20/47 | 63 | $ | 67,236 | |||||||
Government National Mortgage Assoc. | 4.000 | 09/20/47 | 159 | 170,250 | ||||||||
Government National Mortgage Assoc. | 4.000 | 03/20/49 | 27 | 28,690 | ||||||||
Government National Mortgage Assoc. | 4.500 | 04/20/41 | 17 | 18,919 | ||||||||
Government National Mortgage Assoc. | 4.500 | 03/20/44 | 45 | 50,608 | ||||||||
Government National Mortgage Assoc. | 4.500 | 12/20/44 | 42 | 46,966 | ||||||||
Government National Mortgage Assoc. | 4.500 | 11/20/46 | 24 | 26,747 | ||||||||
Government National Mortgage Assoc. | 4.500 | 01/20/47 | 7 | 8,085 | ||||||||
Government National Mortgage Assoc. | 5.000 | 04/20/45 | 31 | 35,423 | ||||||||
Government National Mortgage Assoc. | 5.500 | 12/15/33 | 13 | 14,662 | ||||||||
Tennessee Valley Authority, Sr. Unsec’d. Notes | 0.750 | 05/15/25 | 25 | 25,230 | ||||||||
|
| |||||||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | 17,541,513 | |||||||||||
|
| |||||||||||
U.S. TREASURY OBLIGATIONS 34.9% | ||||||||||||
U.S. Treasury Bonds | 1.375 | 11/15/40 | 1,305 | 1,213,242 | ||||||||
U.S. Treasury Bonds | 1.375 | 08/15/50 | 575 | 505,191 | ||||||||
U.S. Treasury Bonds | 1.625 | 11/15/50 | 133 | 123,888 | ||||||||
U.S. Treasury Bonds | 1.875 | 02/15/51 | 135 | 134,009 | ||||||||
U.S. Treasury Bonds | 2.250 | 05/15/41 | 605 | 649,997 | ||||||||
U.S. Treasury Bonds | 2.500 | 02/15/46 | 565 | 633,506 | ||||||||
U.S. Treasury Bonds | 2.500 | 05/15/46 | 175 | 196,355 | ||||||||
U.S. Treasury Bonds | 3.625 | 08/15/43 | �� | 860 | 1,140,172 | |||||||
U.S. Treasury Bonds | 6.250 | 08/15/23 | 790 | 886,652 | ||||||||
U.S. Treasury Notes | 0.125 | 09/30/22 | 95 | 95,030 | ||||||||
U.S. Treasury Notes | 0.125 | 06/30/23 | 25 | 24,979 | ||||||||
U.S. Treasury Notes | 0.125 | 09/15/23 | 1,422 | 1,419,157 | ||||||||
U.S. Treasury Notes | 0.250 | 09/30/25 | 1,510 | 1,489,945 | ||||||||
U.S. Treasury Notes | 0.375 | 07/15/24 | 475 | 475,408 | ||||||||
U.S. Treasury Notes | 0.375 | 04/30/25 | 1,570 | 1,562,763 | ||||||||
U.S. Treasury Notes | 0.500 | 03/15/23 | 2,159 | 2,171,566 | ||||||||
U.S. Treasury Notes | 0.750 | 03/31/26 | 1,110 | 1,115,116 | ||||||||
U.S. Treasury Notes | 0.750 | 04/30/26 | 245 | 246,014 | ||||||||
U.S. Treasury Notes | 0.875 | 06/30/26 | 239 | 241,185 | ||||||||
U.S. Treasury Notes | 1.000 | 07/31/28 | 100 | 99,970 | ||||||||
U.S. Treasury Notes | 1.250 | 06/30/28 | 250 | 254,336 | ||||||||
U.S. Treasury Notes | 1.375 | 02/15/23 | 205 | 208,916 | ||||||||
U.S. Treasury Notes | 1.625 | 11/15/22 | 55 | 56,068 | ||||||||
U.S. Treasury Notes | 1.625 | 04/30/23 | 1,310 | 1,343,466 | ||||||||
U.S. Treasury Notes | 1.625 | 05/15/31 | 255 | 264,363 | ||||||||
U.S. Treasury Notes | 1.750 | 09/30/22 | 215 | 219,124 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 73 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. TREASURY OBLIGATIONS (Continued) |
| |||||||||||||||
U.S. Treasury Notes | 2.000% | 02/15/25 | 470 | $ | 495,336 | |||||||||||
U.S. Treasury Notes | 2.000 | 08/15/25 | 795 | 841,023 | ||||||||||||
U.S. Treasury Notes | 2.125 | 06/30/22 | 230 | 234,295 | ||||||||||||
U.S. Treasury Notes | 2.125 | 07/31/24 | 1,160 | 1,221,534 | ||||||||||||
U.S. Treasury Notes | 2.125 | 05/15/25 | 210 | 222,748 | ||||||||||||
U.S. Treasury Notes | 2.625 | 02/15/29 | 1,280 | 1,425,600 | ||||||||||||
U.S. Treasury Notes | 3.125 | 11/15/28 | 120 | 137,700 | ||||||||||||
U.S. Treasury Strips Coupon | 1.122(s) | 02/15/36 | 35 | 27,258 | ||||||||||||
U.S. Treasury Strips Coupon | 1.225(s) | 02/15/41 | 15 | 10,245 | ||||||||||||
U.S. Treasury Strips Coupon | 1.371(s) | 05/15/42 | 55 | 36,315 | ||||||||||||
U.S. Treasury Strips Coupon | 1.394(s) | 11/15/41 | 20 | 13,331 | ||||||||||||
U.S. Treasury Strips Coupon | 1.450(s) | 08/15/42 | 15 | 9,809 | ||||||||||||
U.S. Treasury Strips Coupon | 1.463(s) | 11/15/42 | 35 | 22,751 | ||||||||||||
U.S. Treasury Strips Coupon | 1.920(s) | 02/15/29 | 5 | 4,571 | ||||||||||||
U.S. Treasury Strips Coupon | 2.045(s) | 11/15/36 | 45 | 34,553 | ||||||||||||
U.S. Treasury Strips Coupon | 2.222(s) | 05/15/39 | 115 | 82,319 | ||||||||||||
U.S. Treasury Strips Coupon | 2.271(s) | 08/15/39 | 185 | 131,617 | ||||||||||||
U.S. Treasury Strips Coupon | 2.350(s) | 05/15/44 | 250 | 157,461 | ||||||||||||
|
| |||||||||||||||
TOTAL U.S. TREASURY OBLIGATIONS | ||||||||||||||||
(cost $21,389,483) | 21,878,884 | |||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||||||||||
(cost $59,227,681) | 61,352,046 | |||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENT 4.6% | ||||||||||||||||
AFFILIATED MUTUAL FUND | ||||||||||||||||
PGIM Core Ultra Short Bond Fund | ||||||||||||||||
(cost $2,855,615)(wb) | 2,855,615 | 2,855,615 | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 102.3% | ||||||||||||||||
(cost $62,083,296) | 64,207,661 | |||||||||||||||
Liabilities in excess of other assets (2.3)% | (1,427,222 | ) | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 62,780,439 | ||||||||||||||
|
|
See the Glossary for a list of the abbreviation(s) used in the annual report.
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
See Notes to Financial Statements.
74 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of July 31, 2021. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
(s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
(wb) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond 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 July 31, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
Asset-Backed Security | |||||||||||||||
Credit Cards | $ | — | $ | 118,309 | $— | ||||||||||
Commercial Mortgage-Backed Securities | — | 3,452,168 | — | ||||||||||||
Corporate Bonds | — | 16,621,927 | — | ||||||||||||
Municipal Bonds | — | 647,314 | — | ||||||||||||
Sovereign Bonds | — | 1,091,931 | — | ||||||||||||
U.S. Government Agency Obligations | — | 17,541,513 | — | ||||||||||||
U.S. Treasury Obligations | — | 21,878,884 | — | ||||||||||||
Short-Term Investment | |||||||||||||||
Affiliated Mutual Fund | 2,855,615 | — | — | ||||||||||||
|
|
|
|
|
| ||||||||||
Total | $ | 2,855,615 | $ | 61,352,046 | $— | ||||||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2021 were as follows (unaudited):
U.S. Treasury Obligations | 34.9 | % | ||
U.S. Government Agency Obligations | 27.9 | |||
Banks | 5.6 | |||
Commercial Mortgage-Backed Securities | 5.5 |
Affiliated Mutual Fund | 4.6 | % | ||
Electric | 2.9 | |||
Pharmaceuticals | 2.2 | |||
Sovereign Bonds | 1.7 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 75 |
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2021
Industry Classification (continued):
Pipelines | 1.6 | % | ||
Healthcare-Services | 1.5 | |||
Telecommunications | 1.4 | |||
Municipal Bonds | 1.0 | |||
Media | 1.0 | |||
Aerospace & Defense | 0.9 | |||
Oil & Gas | 0.8 | |||
Chemicals | 0.7 | |||
Real Estate Investment Trusts (REITs) | 0.7 | |||
Beverages | 0.6 | |||
Diversified Financial Services | 0.6 | |||
Insurance | 0.6 | |||
Mining | 0.5 | |||
Software | 0.5 | |||
Retail | 0.4 | |||
Commercial Services | 0.4 | |||
Computers | 0.4 | |||
Auto Manufacturers | 0.4 | |||
Biotechnology | 0.3 | |||
Transportation | 0.3 | |||
Semiconductors | 0.3 | |||
Building Materials | 0.3 |
Machinery-Diversified | 0.2 | % | ||
Airlines | 0.2 | |||
Agriculture | 0.2 | |||
Foods | 0.2 | |||
Credit Cards | 0.2 | |||
Gas | 0.2 | |||
Packaging & Containers | 0.1 | |||
Miscellaneous Manufacturing | 0.1 | |||
Lodging | 0.1 | |||
Electronics | 0.1 | |||
Healthcare-Products | 0.1 | |||
Oil & Gas Services | 0.1 | |||
Forest Products & Paper | 0.0 | * | ||
Iron/Steel | 0.0 | * | ||
|
| |||
102.3 | ||||
Liabilities in excess of other assets | (2.3 | ) | ||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05% |
See Notes to Financial Statements.
76 |
PGIM Core Conservative Bond Fund
Statement of Assets & Liabilities
as of July 31, 2021
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $59,227,681) | $ | 61,352,046 | ||
Affiliated investments (cost $2,855,615) | 2,855,615 | |||
Receivable for Fund shares sold | 521,685 | |||
Dividends and interest receivable | 319,545 | |||
Receivable for investments sold | 312,908 | |||
Prepaid expenses and other assets | 12,644 | |||
|
| |||
Total Assets | 65,374,443 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 2,497,079 | |||
Accrued expenses and other liabilities | 83,983 | |||
Management fee payable | 11,220 | |||
Payable for Fund shares purchased | 849 | |||
Trustees’ fees payable | 816 | |||
Affiliated transfer agent fee payable | 57 | |||
|
| |||
Total Liabilities | 2,594,004 | |||
|
| |||
Net Assets | $ | 62,780,439 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 6,040 | ||
Paid-in capital in excess of par | 60,875,140 | |||
Total distributable earnings (loss) | 1,899,259 | |||
|
| |||
Net assets, July 31, 2021 | $ | 62,780,439 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, ($62,780,439 ÷ 6,039,815 shares of beneficial interest issued and outstanding) | $ | 10.39 | ||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 77 |
PGIM Core Conservative Bond Fund
Statement of Operations
Year Ended July 31, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 1,110,177 | ||
Affiliated dividend income | 8,351 | |||
|
| |||
Total income | 1,118,528 | |||
|
| |||
Expenses | ||||
Management fee | 169,473 | |||
Custodian and accounting fees | 59,027 | |||
Audit fee | 57,488 | |||
Legal fees and expenses | 21,722 | |||
Trustees’ fees | 10,506 | |||
Shareholders’ reports | 7,786 | |||
SEC registration fees | 1,236 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 330) | 456 | |||
Registration fees | 250 | |||
Miscellaneous | 19,284 | |||
|
| |||
Total expenses | 347,228 | |||
Less: Fee waiver and/or expense reimbursement | (33,359 | ) | ||
|
| |||
Net expenses | 313,869 | |||
|
| |||
Net investment income (loss) | 804,659 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on investment transactions | 613,791 | |||
Net change in unrealized appreciation (depreciation) on investments | (1,990,566 | ) | ||
|
| |||
Net gain (loss) on investment transactions | (1,376,775 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (572,116 | ) | |
|
|
See Notes to Financial Statements.
78 |
PGIM Core Conservative Bond Fund
Statements of Changes in Net Assets
Year Ended July 31, | ||||||||
2021 | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 804,659 | $ | 1,040,617 | ||||
Net realized gain (loss) on investment transactions | 613,791 | 895,916 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (1,990,566 | ) | 2,688,469 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (572,116 | ) | 4,625,002 | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R6 | (1,812,150 | ) | (1,252,954 | ) | ||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 21,288,669 | 20,298,716 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,812,150 | 1,246,574 | ||||||
Cost of shares purchased | (15,898,690 | ) | (13,859,437 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 7,202,129 | 7,685,853 | ||||||
|
|
|
| |||||
Total increase (decrease) | 4,817,863 | 11,057,901 | ||||||
Net Assets: | ||||||||
Beginning of year | 57,962,576 | 46,904,675 | ||||||
|
|
|
| |||||
End of year | $ | 62,780,439 | $ | 57,962,576 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 79 |
PGIM TIPS Fund
Schedule of Investments
as of July 31, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 98.6% | ||||||||||||||||
U.S. TREASURY OBLIGATIONS | ||||||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.125% | 01/15/23 | 15,383 | $ | 16,061,345 | |||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.125 | 01/15/30 | 4,672 | 5,284,206 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.125 | 07/15/30 | 2,814 | 3,200,143 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.125 | 01/15/31 | 1,313 | 1,488,337 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.125 | 02/15/51 | 165 | 189,991 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.250 | 01/15/25 | 4,762 | 5,196,291 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.375 | 01/15/27 | 1,087 | 1,227,433 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.500 | 01/15/28 | 4,949 | 5,687,608 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.625 | 04/15/23 | 108 | 114,653 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.625 | 01/15/24 | 2,861 | 3,092,514 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.625 | 01/15/26 | 9,313 | 10,491,040 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.625 | 02/15/43 | 35 | 43,390 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.750 | 02/15/42 | 1,483 | 1,866,115 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.750 | 02/15/45 | 423 | 539,594 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.875 | 01/15/29 | 10,501 | 12,492,669 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 0.875 | 02/15/47 | 139 | 186,020 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 1.000 | 02/15/48 | 4,541 | 6,287,732 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 1.000 | 02/15/49 | 460 | 643,128 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 2.125 | 02/15/40 | 1,202 | 1,842,300 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 2.125 | 02/15/41 | 2,262 | 3,509,644 | ||||||||||||
U.S. Treasury Inflation Indexed Bonds, TIPS | 2.375 | 01/15/27 | 2,530 | 3,154,426 | ||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | 82,598,579 | |||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENT 2.0% | ||||||||||||||||
AFFILIATED MUTUAL FUND | ||||||||||||||||
PGIM Core Ultra Short Bond Fund | ||||||||||||||||
(cost $1,720,587)(wb) | 1,720,587 | 1,720,587 | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 100.6% | ||||||||||||||||
(cost $79,678,517) | 84,319,166 | |||||||||||||||
Liabilities in excess of other assets (0.6)% | (526,388 | ) | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 83,792,778 | ||||||||||||||
|
|
See the Glossary for a list of the abbreviation(s) used in the annual report.
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
(wb) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
See Notes to Financial Statements.
80 |
PGIM TIPS Fund
Schedule of Investments (continued)
as of July 31, 2021
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 July 31, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 82,598,579 | $— | ||||||||||
Short-Term Investment | |||||||||||||||
Affiliated Mutual Fund | 1,720,587 | — | — | ||||||||||||
|
|
|
|
|
| ||||||||||
Total | $ | 1,720,587 | $ | 82,598,579 | $— | ||||||||||
|
|
|
|
|
|
Sector Allocations:
The sector allocations of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2021 were as follows (unaudited):
U.S. Treasury Obligations | 98.6 | % | ||
Affiliated Mutual Fund | 2.0 | % | ||
|
| |||
100.6 | ||||
Liabilities in excess of other assets | (0.6 | ) | ||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 81 |
PGIM TIPS Fund
Statement of Assets & Liabilities
as of July 31, 2021
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $77,957,930) | $ | 82,598,579 | ||
Affiliated investments (cost $1,720,587) | 1,720,587 | |||
Receivable for investments sold | 2,837,013 | |||
Receivable for Fund shares sold | 490,271 | |||
Interest receivable | 80,462 | |||
Prepaid expenses | 413 | |||
|
| |||
Total Assets | 87,727,325 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 3,858,918 | |||
Accrued expenses and other liabilities | 58,361 | |||
Management fee payable | 13,151 | |||
Payable for Fund shares purchased | 3,177 | |||
Trustees’ fees payable | 883 | |||
Affiliated transfer agent fee payable | 57 | |||
|
| |||
Total Liabilities | 3,934,547 | |||
|
| |||
Net Assets | $ | 83,792,778 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 7,739 | ||
Paid-in capital in excess of par | 79,033,027 | |||
Total distributable earnings (loss) | 4,752,012 | |||
|
| |||
Net assets, July 31, 2021 | $ | 83,792,778 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, ($83,792,778 ÷ 7,739,319 shares of beneficial interest issued and outstanding) | $ | 10.83 | ||
|
|
See Notes to Financial Statements.
82 |
PGIM TIPS Fund
Statement of Operations
Year Ended July 31, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 2,995,826 | ||
Affiliated dividend income | 1,179 | |||
|
| |||
Total income | 2,997,005 | |||
|
| |||
Expenses | ||||
Management fee | 182,047 | |||
Custodian and accounting fees | 44,787 | |||
Audit fee | 34,238 | |||
Legal fees and expenses | 21,733 | |||
Trustees’ fees | 11,250 | |||
Shareholders’ reports | 4,498 | |||
SEC registration fees | 4,410 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 326) | 452 | |||
Registration fees | 251 | |||
Miscellaneous | 22,835 | |||
|
| |||
Total expenses | 326,501 | |||
Less: Fee waiver and/or expense reimbursement | (9,270 | ) | ||
|
| |||
Net expenses | 317,231 | |||
|
| |||
Net investment income (loss) | 2,679,774 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on investment transactions | 1,399,665 | |||
Net change in unrealized appreciation (depreciation) on investments | 1,275,072 | |||
|
| |||
Net gain (loss) on investment transactions | 2,674,737 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 5,354,511 | ||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 83 |
PGIM TIPS Fund
Statements of Changes in Net Assets
Year Ended July 31, | ||||||||
2021 | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 2,679,774 | $ | 47,057 | ||||
Net realized gain (loss) on investment transactions | 1,399,665 | 1,120,200 | ||||||
Net change in unrealized appreciation (depreciation) on investments | 1,275,072 | 2,501,891 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 5,354,511 | 3,669,148 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R6 | (4,092,491 | ) | (550,849 | ) | ||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 62,803,571 | 34,833,583 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 4,092,491 | 550,849 | ||||||
Cost of shares purchased | (33,100,869 | ) | (25,704,948 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 33,795,193 | 9,679,484 | ||||||
|
|
|
| |||||
Total increase (decrease) | 35,057,213 | 12,797,783 | ||||||
Net Assets: | ||||||||
Beginning of year | 48,735,565 | 35,937,782 | ||||||
|
|
|
| |||||
End of year | $ | 83,792,778 | $ | 48,735,565 | ||||
|
|
|
|
See Notes to Financial Statements.
84 |
PGIM QMA Commodity Strategies Fund
Consolidated Schedule of Investments
as of July 31, 2021
Description | Shares | Value | ||||||||||||||
SHORT-TERM INVESTMENTS 101.5% |
| |||||||||||||||
AFFILIATED MUTUAL FUND 16.5% |
| |||||||||||||||
PGIM Core Ultra Short Bond Fund |
| 10,169,885 | $ | 10,169,885 | ||||||||||||
|
| |||||||||||||||
Interest Rate | Maturity Date | Principal Amount (000)# | ||||||||||||||
U.S. TREASURY OBLIGATIONS(n) 85.0% |
| |||||||||||||||
U.S. Treasury Bills | 0.055 | % | 02/24/22 | (bb)(k) | 5,500 | 5,498,637 | ||||||||||
U.S. Treasury Bills | 0.060 | 02/24/22 | 18,500 | 18,495,416 | ||||||||||||
U.S. Treasury Bills | 0.107 | 09/09/21 | 28,500 | 28,498,808 | ||||||||||||
|
| |||||||||||||||
TOTAL U.S. TREASURY OBLIGATIONS | 52,492,861 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 101.5% | 62,662,746 | |||||||||||||||
Liabilities in excess of other assets(z) (1.5)% | (941,443 | ) | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 61,721,303 | ||||||||||||||
|
|
See the Glossary for a list of the abbreviation(s) used in the annual report.
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
(bb) | Represents security, or a portion thereof, held in the Cayman Subsidiary. |
(k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
(n) | Rate shown is the effective yield at purchase date. |
(wb) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Consolidated Schedule of Investments: |
Commodity Futures contracts outstanding at July 31, 2021(1):
Number | Type | Expiration Date | Current Notional Amount | Value/ Unrealized Appreciation (Depreciation) | |||||||||||||
Long Positions: |
| ||||||||||||||||
66 | Brent Crude | Nov. 2021 | $ | 4,922,940 | $ | 68,809 | |||||||||||
11 | Coffee “C” | Sep. 2021 | 740,644 | 60,480 | |||||||||||||
38 | Copper | Sep. 2021 | 4,258,375 | (36,905 | ) | ||||||||||||
144 | Corn | Sep. 2021 | 3,938,400 | (539,325 | ) | ||||||||||||
22 | Cotton No. 2 | Dec. 2021 | 983,290 | 29,576 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 85 |
PGIM QMA Commodity Strategies Fund
Consolidated Schedule of Investments (continued)
as of July 31, 2021
Commodity Futures contracts outstanding at July 31, 2021(1) (continued):
Number | Type | Expiration Date | Current Notional Amount | Value/ Unrealized Appreciation (Depreciation) | |||||||||||||
Long Positions (cont’d): |
| ||||||||||||||||
18 | Gasoline RBOB | Sep. 2021 | $ | 1,765,033 | $ | 129,957 | |||||||||||
42 | Gold 100 OZ | Dec. 2021 | 7,632,240 | (2,337 | ) | ||||||||||||
27 | Hard Red Winter Wheat | Sep. 2021 | 908,888 | 47,509 | |||||||||||||
12 | Lean Hogs | Oct. 2021 | 422,520 | (1,022 | ) | ||||||||||||
38 | Live Cattle | Oct. 2021 | 1,933,440 | 22,703 | |||||||||||||
18 | LME Nickel | Sep. 2021 | 2,111,508 | 128,094 | |||||||||||||
29 | LME PRI Aluminum | Sep. 2021 | 1,881,375 | 113,930 | |||||||||||||
17 | LME Zinc | Sep. 2021 | 1,289,875 | 11,179 | |||||||||||||
31 | Low Sulphur Gas Oil | Sep. 2021 | 1,904,175 | 91,947 | |||||||||||||
155 | Natural Gas | Sep. 2021 | 6,066,700 | 1,247,002 | |||||||||||||
20 | NY Harbor ULSD | Sep. 2021 | 1,844,304 | 67,262 | |||||||||||||
12 | Silver | Sep. 2021 | 1,532,820 | (150,569 | ) | ||||||||||||
14 | Soft Red Winter Wheat | Sep. 2021 | 492,625 | 14,567 | |||||||||||||
59 | Soybean | Nov. 2021 | 3,980,287 | (227,068 | ) | ||||||||||||
43 | Soybean Meal | Dec. 2021 | 1,521,770 | (162,020 | ) | ||||||||||||
97 | Soybean Oil | Dec. 2021 | 3,668,928 | (127,639 | ) | ||||||||||||
38 | Sugar No. 11 | Oct. 2021 | 762,250 | 15,789 | |||||||||||||
101 | WTI Crude | Sep. 2021 | 7,468,950 | 533,079 | |||||||||||||
|
| ||||||||||||||||
$ | 1,334,998 | ||||||||||||||||
|
|
(1) | Represents positions held in the Cayman Subsidiary. |
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 | $ | 253,204 | $ | 5,498,637 | ||||||
|
|
|
|
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
See Notes to Financial Statements.
86 |
PGIM QMA Commodity Strategies Fund
Consolidated Schedule of Investments (continued)
as of July 31, 2021
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 July 31, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Short-Term Investments | |||||||||||||||
Affiliated Mutual Fund | $ | 10,169,885 | $ | — | $ | — | |||||||||
U.S. Treasury Obligations | — | 52,492,861 | — | ||||||||||||
|
|
|
|
|
| ||||||||||
Total | $ | 10,169,885 | $ | 52,492,861 | $ | — | |||||||||
|
|
|
|
|
| ||||||||||
Other Financial Instruments* | |||||||||||||||
Assets | |||||||||||||||
Commodity Futures Contracts | $ | 2,581,883 | $ | — | $ | — | |||||||||
|
|
|
|
|
| ||||||||||
Liabilities | |||||||||||||||
Commodity Futures Contracts | $ | (1,246,885 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Consolidated 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. |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 87 |
PGIM QMA Commodity Strategies Fund
Consolidated Schedule of Investments (continued)
as of July 31, 2021
Sector Allocation:
The sector allocation of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2021 were as follows (unaudited):
U.S. Treasury Obligations | 85.0 | % | ||
Affiliated Mutual Fund | 16.5 | |||
|
| |||
101.5 | ||||
Liabilities in excess of other assets | (1.5 | ) | ||
|
| |||
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 commodity contracts risk. See the Notes to Consolidated Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Consolidated Statement of Assets and Liabilities and Consolidated Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of July 31, 2021 as presented in the Consolidated Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Consolidated Statement of Assets and Liabilities Location | Fair Value | Consolidated Statement of Liabilities Location | Fair Value | ||||||||
Commodity contracts | Due from/to broker-variation margin futures | $ | 2,581,883 | * | Due from/to broker-variation margin futures | $ | 1,246,885 | * | ||||
|
|
|
|
* | 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 Consolidated Statement of Assets and Liabilities. |
The effects of derivative instruments on the Consolidated Statement of Operations for the year ended July 31, 2021 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |||||
Derivatives not accounted for as hedging instruments, carried at fair value | Futures | ||||
Commodity contracts | $ | 20,720,588 | |||
|
|
See Notes to Financial Statements.
88
PGIM QMA Commodity Strategies Fund
Consolidated Schedule of Investments (continued)
as of July 31, 2021
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |||||
Derivatives not accounted for as hedging instruments, carried at fair value | Futures | ||||
Commodity contracts | $ | (842,648 | ) | ||
|
|
For the year ended July 31, 2021, the Fund’s average volume of derivative activities is as follows:
Futures Contracts— Long Positions(1) | Futures Contracts— Short Positions(1) | |||
$55,066,587 | $2,873,098 |
(1) | Notional Amount in USD. |
Average volume is based on average quarter end balances as noted for the year ended July 31, 2021.
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 89 |
PGIM QMA Commodity Strategies Fund
Consolidated Statement of Assets & Liabilities
as of July 31, 2021
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $52,488,611) | $ | 52,492,861 | ||
Affiliated investments (cost $10,169,885) | 10,169,885 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 253,204 | |||
Receivable for Fund shares sold | 9,671 | |||
Prepaid expenses | 300 | |||
|
| |||
Total Assets | 62,925,921 | |||
|
| |||
Liabilities | ||||
Due to broker—variation margin futures | 687,306 | |||
Payable for Fund shares purchased | 445,422 | |||
Accrued expenses and other liabilities | 50,082 | |||
Management fee payable | 20,918 | |||
Trustees’ fees payable | 807 | |||
Affiliated transfer agent fee payable | 83 | |||
|
| |||
Total Liabilities | 1,204,618 | |||
|
| |||
Net Assets | $ | 61,721,303 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 5,137 | ||
Paid-in capital in excess of par | 46,892,968 | |||
Total distributable earnings (loss) | 14,823,198 | |||
|
| |||
Net assets, July 31, 2021 | $ | 61,721,303 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, ($61,721,303 ÷ 5,136,639 shares of beneficial interest issued and outstanding) | $ | 12.02 | ||
|
|
See Notes to Financial Statements.
90 |
PGIM QMA Commodity Strategies Fund
Consolidated Statement of Operations
Year Ended July 31, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 45,530 | ||
Affiliated dividend income | 13,357 | |||
Unaffiliated dividend income | 383 | |||
|
| |||
Total income | 59,270 | |||
|
| |||
Expenses | ||||
Management fee | 253,687 | |||
Custodian and accounting fees | 40,830 | |||
Audit fee | 30,239 | |||
Legal fees and expenses | 29,353 | |||
Trustees’ fees | 10,333 | |||
Shareholders’ reports | 3,762 | |||
SEC registration fees | 1,092 | |||
Transfer agent’s fees and expenses (including affiliated expense of $ 453) | 606 | |||
Registration fees | 250 | |||
Miscellaneous | 15,236 | |||
|
| |||
Total expenses | 385,388 | |||
Less: Fee waiver and/or expense reimbursement | (37,790 | ) | ||
|
| |||
Net expenses | 347,598 | |||
|
| |||
Net investment income (loss) | (288,328 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 715 | |||
Futures transactions | 20,720,588 | |||
|
| |||
20,721,303 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 1,236 | |||
Futures | (842,648 | ) | ||
|
| |||
(841,412 | ) | |||
|
| |||
Net gain (loss) on investment transactions | 19,879,891 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 19,591,563 | ||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 91 |
PGIM QMA Commodity Strategies Fund
Consolidated Statements of Changes in Net Assets
Year Ended July 31, | ||||||||
2021 | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | (288,328 | ) | $ | 47,521 | |||
Net realized gain (loss) on investment transactions | 20,721,303 | (5,611,042 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | (841,412 | ) | 2,328,821 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 19,591,563 | (3,234,700 | ) | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R6 | — | (227,598 | ) | |||||
Tax return of capital distributions | ||||||||
Class R6 | — | (6,154 | ) | |||||
|
|
|
| |||||
Total dividends and distributions | — | (233,752 | ) | |||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 18,968,112 | 30,076,283 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | — | 233,752 | ||||||
Cost of shares purchased | (15,391,089 | ) | (9,411,703 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 3,577,023 | 20,898,332 | ||||||
|
|
|
| |||||
Total increase (decrease) | 23,168,586 | 17,429,880 | ||||||
Net Assets: | ||||||||
Beginning of year | 38,552,717 | 21,122,837 | ||||||
|
|
|
| |||||
End of year | $ | 61,721,303 | $ | 38,552,717 | ||||
|
|
|
|
See Notes to Financial Statements.
92 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments
as of July 31, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 101.3% | ||||||||
COMMON STOCKS 97.7% | ||||||||
Aerospace & Defense 0.9% | ||||||||
Curtiss-Wright Corp. | 1,496 | $ | 176,977 | |||||
Howmet Aerospace, Inc.* | 898 | 29,472 | ||||||
|
| |||||||
206,449 | ||||||||
Auto Components 1.6% | ||||||||
Adient PLC* | 1,646 | 69,346 | ||||||
Dana, Inc. | 6,135 | 148,221 | ||||||
Goodyear Tire & Rubber Co. (The)* | 10,501 | 164,971 | ||||||
|
| |||||||
382,538 | ||||||||
Automobiles 1.2% | ||||||||
Harley-Davidson, Inc. | 3,816 | 151,190 | ||||||
Thor Industries, Inc. | 1,197 | 141,677 | ||||||
|
| |||||||
292,867 | ||||||||
Banks 5.6% | ||||||||
Associated Banc-Corp. | 6,235 | 123,453 | ||||||
East West Bancorp, Inc. | 898 | 63,893 | ||||||
First Horizon Corp. | 10,774 | 166,458 | ||||||
FNB Corp. | 14,231 | 163,087 | ||||||
Hancock Whitney Corp. | 890 | 38,902 | ||||||
OFG Bancorp (Puerto Rico) | 524 | 12,104 | ||||||
PacWest Bancorp | 5,312 | 211,524 | ||||||
Signature Bank | 352 | 79,894 | ||||||
Synovus Financial Corp. | 4,190 | 171,371 | ||||||
UMB Financial Corp. | 75 | 7,020 | ||||||
Valley National Bancorp | 13,468 | 173,603 | ||||||
Wintrust Financial Corp. | 1,646 | 117,524 | ||||||
|
| |||||||
1,328,833 | ||||||||
Beverages 0.0% | ||||||||
Molson Coors Beverage Co. (Class B Stock)* | 200 | 9,778 | ||||||
Biotechnology 1.7% | ||||||||
Emergent BioSolutions, Inc.* | 2,507 | 165,211 | ||||||
Exelixis, Inc.* | 823 | 13,867 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 93 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology (cont’d.) | ||||||||
United Therapeutics Corp.* | 1,190 | $ | 216,497 | |||||
Vanda Pharmaceuticals, Inc.* | 1,096 | 17,876 | ||||||
|
| |||||||
413,451 | ||||||||
Building Products 2.3% | ||||||||
Carlisle Cos., Inc. | 1,125 | 227,520 | ||||||
JELD-WEN Holding, Inc.* | 1,871 | 49,544 | ||||||
Owens Corning | 2,394 | 230,207 | ||||||
UFP Industries, Inc. | 374 | 27,773 | ||||||
|
| |||||||
535,044 | ||||||||
Capital Markets 3.1% | ||||||||
Evercore, Inc. (Class A Stock) | 1,347 | 178,074 | ||||||
Janus Henderson Group PLC | 3,983 | 166,649 | ||||||
Jefferies Financial Group, Inc. | 1,796 | 59,609 | ||||||
SEI Investments Co. | 2,394 | 145,555 | ||||||
Stifel Financial Corp. | 2,843 | 189,173 | ||||||
|
| |||||||
739,060 | ||||||||
Chemicals 3.3% | ||||||||
Cabot Corp. | 2,866 | 157,802 | ||||||
Chemours Co. (The) | 5,163 | 171,670 | ||||||
Huntsman Corp. | 1,970 | 52,028 | ||||||
Ingevity Corp.* | 898 | 76,276 | ||||||
Mosaic Co. (The) | 1,347 | 42,067 | ||||||
Olin Corp. | 4,190 | 197,055 | ||||||
Westlake Chemical Corp. | 898 | 74,462 | ||||||
|
| |||||||
771,360 | ||||||||
Commercial Services & Supplies 1.1% | ||||||||
ABM Industries, Inc. | 150 | 6,974 | ||||||
BrightView Holdings, Inc.* | 4,639 | 74,363 | ||||||
Clean Harbors, Inc.* | 773 | 73,435 | ||||||
HNI Corp. | 1,721 | 64,193 | ||||||
Tetra Tech, Inc. | 254 | 33,914 | ||||||
|
| |||||||
252,879 |
See Notes to Financial Statements.
94 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Communications Equipment 0.5% | ||||||||
NetScout Systems, Inc.* | 4,138 | $ | 119,009 | |||||
Construction & Engineering 1.6% | ||||||||
AECOM* | 2,469 | 155,448 | ||||||
EMCOR Group, Inc. | 1,758 | 214,142 | ||||||
Valmont Industries, Inc. | 60 | 14,217 | ||||||
|
| |||||||
383,807 | ||||||||
Construction Materials 0.8% | ||||||||
Eagle Materials, Inc. | 1,347 | 190,358 | ||||||
Consumer Finance 0.9% | ||||||||
Navient Corp. | 593 | 12,115 | ||||||
SLM Corp. | 11,104 | 209,088 | ||||||
|
| |||||||
221,203 | ||||||||
Containers & Packaging 0.4% | ||||||||
Greif, Inc. (Class A Stock) | 1,496 | 90,688 | ||||||
Diversified Consumer Services 0.3% | ||||||||
Grand Canyon Education, Inc.* | 606 | 55,976 | ||||||
Service Corp. International | 250 | 15,623 | ||||||
|
| |||||||
71,599 | ||||||||
Electric Utilities 0.7% | ||||||||
Hawaiian Electric Industries, Inc. | 500 | 21,670 | ||||||
OGE Energy Corp. | 4,310 | 145,463 | ||||||
|
| |||||||
167,133 | ||||||||
Electrical Equipment 2.5% | ||||||||
Acuity Brands, Inc. | 949 | 166,435 | ||||||
Hubbell, Inc. | 632 | 126,691 | ||||||
nVent Electric PLC | 4,639 | 146,639 | ||||||
Regal Beloit Corp. | 1,010 | 148,702 | ||||||
|
| |||||||
588,467 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 95 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electronic Equipment, Instruments & Components 3.9% | ||||||||
Arrow Electronics, Inc.* | 1,878 | $ | 222,674 | |||||
Avnet, Inc. | 2,245 | 92,763 | ||||||
Jabil, Inc. | 3,853 | 229,408 | ||||||
Sanmina Corp.* | 599 | 23,013 | ||||||
ScanSource, Inc.* | 374 | 10,319 | ||||||
SYNNEX Corp. | 1,646 | 196,763 | ||||||
Vishay Intertechnology, Inc. | 7,183 | 158,960 | ||||||
|
| |||||||
933,900 | ||||||||
Entertainment 0.8% | ||||||||
Playtika Holding Corp.* | 2,245 | 49,906 | ||||||
World Wrestling Entertainment, Inc. (Class A Stock) | 2,694 | 133,030 | ||||||
|
| |||||||
182,936 | ||||||||
Equity Real Estate Investment Trusts (REITs) 9.1% | ||||||||
Apartment Income REIT Corp. | 3,217 | 169,343 | ||||||
Brixmor Property Group, Inc. | 4,938 | 113,673 | ||||||
Camden Property Trust | 940 | 140,427 | ||||||
Corporate Office Properties Trust | 4,295 | 126,445 | ||||||
Cousins Properties, Inc. | 3,891 | 154,550 | ||||||
Gaming & Leisure Properties, Inc. | 2,261 | 107,036 | ||||||
Highwoods Properties, Inc. | 3,659 | 174,498 | ||||||
JBG SMITH Properties | 1,945 | 63,465 | ||||||
Lamar Advertising Co. (Class A Stock) | 1,796 | 191,453 | ||||||
Medical Properties Trust, Inc. | 12,675 | 266,555 | ||||||
National Storage Affiliates Trust | 100 | 5,417 | ||||||
Omega Healthcare Investors, Inc. | 3,472 | 125,964 | ||||||
Piedmont Office Realty Trust, Inc. (Class A Stock) | 5,537 | 105,314 | ||||||
PotlatchDeltic Corp. | 3,068 | 159,352 | ||||||
Sabra Health Care REIT, Inc. | 1,519 | 28,238 | ||||||
Spirit Realty Capital, Inc. | 3,217 | 161,558 | ||||||
Urban Edge Properties | 374 | 7,106 | ||||||
Weingarten Realty Investors | 1,721 | 55,399 | ||||||
|
| |||||||
2,155,793 | ||||||||
Food & Staples Retailing 0.1% | ||||||||
Sprouts Farmers Market, Inc.* | 773 | 19,000 |
See Notes to Financial Statements.
96 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Food Products 2.5% | ||||||||
Bunge Ltd. | 300 | $ | 23,289 | |||||
Darling Ingredients, Inc.* | 3,143 | 217,087 | ||||||
Ingredion, Inc. | 1,122 | 98,523 | ||||||
Pilgrim’s Pride Corp.* | 4,340 | 96,131 | ||||||
Sanderson Farms, Inc. | 890 | 166,287 | ||||||
|
| |||||||
601,317 | ||||||||
Gas Utilities 1.0% | ||||||||
New Jersey Resources Corp. | 673 | 25,924 | ||||||
Southwest Gas Holdings, Inc. | 673 | 47,063 | ||||||
UGI Corp. | 3,382 | 155,538 | ||||||
|
| |||||||
228,525 | ||||||||
Health Care Equipment & Supplies 3.9% | ||||||||
Envista Holdings Corp.* | 4,639 | 199,848 | ||||||
Globus Medical, Inc. (Class A Stock)* | 374 | 31,105 | ||||||
Hill-Rom Holdings, Inc. | 1,826 | 252,828 | ||||||
ICU Medical, Inc.* | 771 | 156,737 | ||||||
Integer Holdings Corp.* | 75 | 7,342 | ||||||
Integra LifeSciences Holdings Corp.* | 973 | 70,435 | ||||||
Masimo Corp.* | 748 | 203,748 | ||||||
|
| |||||||
922,043 | ||||||||
Health Care Providers & Services 2.4% | ||||||||
Amedisys, Inc.* | 120 | 31,274 | ||||||
Chemed Corp. | 397 | 188,980 | ||||||
Molina Healthcare, Inc.* | 1,092 | 298,127 | ||||||
Patterson Cos., Inc. | 224 | 6,973 | ||||||
Select Medical Holdings Corp. | 150 | 5,918 | ||||||
Universal Health Services, Inc. (Class B Stock) | 250 | 40,102 | ||||||
|
| |||||||
571,374 | ||||||||
Hotels, Restaurants & Leisure 1.9% | ||||||||
Boyd Gaming Corp.* | 823 | 46,911 | ||||||
Century Casinos, Inc.* | 2,544 | 28,518 | ||||||
Del Taco Restaurants, Inc. | 5,612 | 47,758 | ||||||
Jack in the Box, Inc. | 823 | 89,592 | ||||||
Papa John’s International, Inc. | 1,048 | 119,598 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 97 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure (cont’d.) | ||||||||
Texas Roadhouse, Inc. | 599 | $ | 55,210 | |||||
Wendy’s Co. (The) | 2,768 | 64,245 | ||||||
|
| |||||||
451,832 | ||||||||
Household Durables 1.5% | ||||||||
PulteGroup, Inc. | 898 | 49,273 | ||||||
Skyline Champion Corp.* | 299 | 16,864 | ||||||
Tempur Sealy International, Inc. | 3,966 | 171,609 | ||||||
Toll Brothers, Inc. | 1,646 | 97,558 | ||||||
Tri Pointe Homes, Inc.* | 599 | 14,448 | ||||||
|
| |||||||
349,752 | ||||||||
Independent Power & Renewable Electricity Producers 0.3% | ||||||||
AES Corp. (The) | 2,843 | 67,379 | ||||||
Insurance 3.5% | ||||||||
Alleghany Corp.* | 22 | 14,588 | ||||||
American Financial Group, Inc. | 1,301 | 164,563 | ||||||
First American Financial Corp. | 1,646 | 110,792 | ||||||
Hanover Insurance Group, Inc. (The) | 1,339 | 181,970 | ||||||
Lincoln National Corp. | 400 | 24,648 | ||||||
Mercury General Corp. | 748 | 45,501 | ||||||
Old Republic International Corp. | 8,522 | 210,153 | ||||||
Reinsurance Group of America, Inc. | 748 | 82,415 | ||||||
|
| |||||||
834,630 | ||||||||
IT Services 1.5% | ||||||||
BM Technologies, Inc.* | 200 | 2,006 | ||||||
Concentrix Corp.* | 1,048 | 171,589 | ||||||
Maximus, Inc. | 1,945 | 173,105 | ||||||
|
| |||||||
346,700 | ||||||||
Leisure Products 1.3% | ||||||||
Brunswick Corp. | 2,125 | 221,850 | ||||||
Mattel, Inc.* | 3,688 | 80,103 | ||||||
|
| |||||||
301,953 |
See Notes to Financial Statements.
98 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Life Sciences Tools & Services 2.6% | ||||||||
Bio-Techne Corp. | 673 | $ | 324,548 | |||||
Bruker Corp. | 824 | 67,774 | ||||||
Charles River Laboratories International, Inc.* | 112 | 45,575 | ||||||
Medpace Holdings, Inc.* | 633 | 111,370 | ||||||
Syneos Health, Inc.* | 823 | 73,798 | ||||||
|
| |||||||
623,065 | ||||||||
Machinery 5.9% | ||||||||
AGCO Corp. | 1,781 | 235,288 | ||||||
Crane Co. | 1,930 | 187,654 | ||||||
Donaldson Co., Inc. | 1,197 | 79,229 | ||||||
Graco, Inc. | 673 | 52,548 | ||||||
ITT, Inc. | 404 | 39,556 | ||||||
Lincoln Electric Holdings, Inc. | 898 | 125,208 | ||||||
Nordson Corp. | 1,088 | 246,029 | ||||||
Oshkosh Corp. | 1,721 | 205,746 | ||||||
REV Group, Inc. | 524 | 7,918 | ||||||
Timken Co. (The) | 1,197 | 95,161 | ||||||
Toro Co. (The) | 1,197 | 136,147 | ||||||
|
| |||||||
1,410,484 | ||||||||
Media 0.8% | ||||||||
Nexstar Media Group, Inc. (Class A Stock) | 253 | 37,209 | ||||||
TEGNA, Inc. | 8,679 | 153,792 | ||||||
|
| |||||||
191,001 | ||||||||
Metals & Mining 2.3% | ||||||||
Reliance Steel & Aluminum Co. | 1,414 | 222,210 | ||||||
Steel Dynamics, Inc. | 4,849 | 312,518 | ||||||
|
| |||||||
534,728 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) 0.4% | ||||||||
Granite Point Mortgage Trust, Inc. | 6,285 | 88,681 | ||||||
Multiline Retail 0.7% | ||||||||
Kohl’s Corp. | 3,217 | 163,424 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 99 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Multi-Utilities 1.2% | ||||||||
MDU Resources Group, Inc. | 5,881 | $ | 186,545 | |||||
NorthWestern Corp. | 1,422 | 88,150 | ||||||
|
| |||||||
274,695 | ||||||||
Oil, Gas & Consumable Fuels 1.5% | ||||||||
APA Corp. | 4,738 | 88,838 | ||||||
Continental Resources, Inc. | 700 | 23,905 | ||||||
Targa Resources Corp. | 1,945 | 81,904 | ||||||
World Fuel Services Corp. | 4,579 | 157,792 | ||||||
|
| |||||||
352,439 | ||||||||
Paper & Forest Products 0.1% | ||||||||
Louisiana-Pacific Corp. | 374 | 20,735 | ||||||
Personal Products 0.7% | ||||||||
Medifast, Inc. | 37 | 10,564 | ||||||
Nu Skin Enterprises, Inc. (Class A Stock) | 2,716 | 145,822 | ||||||
|
| |||||||
156,386 | ||||||||
Professional Services 2.2% | ||||||||
ASGN, Inc.* | 1,272 | 128,638 | ||||||
Insperity, Inc. | 224 | 22,187 | ||||||
ManpowerGroup, Inc. | 1,721 | 204,076 | ||||||
Science Applications International Corp. | 1,871 | 163,338 | ||||||
|
| |||||||
518,239 | ||||||||
Real Estate Management & Development 0.6% | ||||||||
Jones Lang LaSalle, Inc.* | 679 | 151,125 | ||||||
Road & Rail 1.2% | ||||||||
Knight-Swift Transportation Holdings, Inc. | 2,544 | 126,411 | ||||||
Ryder System, Inc. | 224 | 17,058 | ||||||
Werner Enterprises, Inc. | 2,668 | 121,954 | ||||||
XPO Logistics, Inc.* | 150 | 20,804 | ||||||
|
| |||||||
286,227 |
See Notes to Financial Statements.
100 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Semiconductors & Semiconductor Equipment 3.5% | ||||||||
Amkor Technology, Inc. | 1,945 | $ | 47,925 | |||||
Cirrus Logic, Inc.* | 2,020 | 166,832 | ||||||
CMC Materials, Inc. | 1,152 | 166,625 | ||||||
MKS Instruments, Inc. | 1,309 | 204,780 | ||||||
Semtech Corp.* | 2,320 | 143,631 | ||||||
Ultra Clean Holdings, Inc.* | 1,945 | 105,050 | ||||||
|
| |||||||
834,843 | ||||||||
Software 4.4% | ||||||||
Blackbaud, Inc.* | 673 | 48,005 | ||||||
CDK Global, Inc. | 3,868 | 185,625 | ||||||
CommVault Systems, Inc.* | 150 | 11,339 | ||||||
Fair Isaac Corp.* | 526 | 275,577 | ||||||
J2 Global, Inc.* | 733 | 103,551 | ||||||
Manhattan Associates, Inc.* | 1,654 | 264,028 | ||||||
PTC, Inc.* | 696 | 94,273 | ||||||
Teradata Corp.* | 1,190 | 59,095 | ||||||
|
| |||||||
1,041,493 | ||||||||
Specialty Retail 3.8% | ||||||||
AutoNation, Inc.* | 2,035 | 246,906 | ||||||
Dick’s Sporting Goods, Inc. | 449 | 46,759 | ||||||
Foot Locker, Inc. | 3,517 | 200,680 | ||||||
L Brands, Inc. | 2,095 | 167,747 | ||||||
Lithia Motors, Inc. | 180 | 67,900 | ||||||
Williams-Sonoma, Inc. | 1,107 | 167,932 | ||||||
|
| |||||||
897,924 | ||||||||
Technology Hardware, Storage & Peripherals 0.0% | ||||||||
NCR Corp.* | 224 | 9,946 | ||||||
Textiles, Apparel & Luxury Goods 2.6% | ||||||||
Capri Holdings Ltd.* | 1,871 | 105,356 | ||||||
Columbia Sportswear Co. | 1,422 | 141,660 | ||||||
Crocs, Inc.* | 673 | 91,400 | ||||||
Deckers Outdoor Corp.* | 636 | 261,300 | ||||||
Tapestry, Inc.* | 200 | 8,460 | ||||||
|
| |||||||
608,176 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 101 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Thrifts & Mortgage Finance 0.1% | ||||||||
Premier Financial Corp. | 524 | $ | 14,033 | |||||
Trading Companies & Distributors 0.9% | ||||||||
Boise Cascade Co. | 299 | 15,294 | ||||||
Rush Enterprises, Inc. (Class A Stock) | 224 | 10,526 | ||||||
Univar Solutions, Inc.* | 5,312 | 130,357 | ||||||
Veritiv Corp.* | 973 | 59,625 | ||||||
|
| |||||||
215,802 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 23,125,103 | |||||||
|
| |||||||
EXCHANGE-TRADED FUND 3.6% | ||||||||
iShares Core S&P Mid-Cap ETF | 3,148 | 849,047 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 23,974,150 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.4% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | 108,408 | 108,408 | ||||||
|
| |||||||
TOTAL INVESTMENTS 101.7% | 24,082,558 | |||||||
Liabilities in excess of other assets (1.7)% | (407,835 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 23,674,723 | ||||||
|
|
See the Glossary for a list of the abbreviation(s) used in the annual report.
* | Non-income producing security. |
(wa) | 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, if applicable. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
See Notes to Financial Statements.
102 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
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 July 31, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
Common Stocks | |||||||||||||||
Aerospace & Defense | $ | 206,449 | $— | $— | |||||||||||
Auto Components | 382,538 | — | — | ||||||||||||
Automobiles | 292,867 | — | — | ||||||||||||
Banks | 1,328,833 | — | — | ||||||||||||
Beverages | 9,778 | — | — | ||||||||||||
Biotechnology | 413,451 | — | — | ||||||||||||
Building Products | 535,044 | — | — | ||||||||||||
Capital Markets | 739,060 | — | — | ||||||||||||
Chemicals | 771,360 | — | — | ||||||||||||
Commercial Services & Supplies | 252,879 | — | — | ||||||||||||
Communications Equipment | 119,009 | — | — | ||||||||||||
Construction & Engineering | 383,807 | — | — | ||||||||||||
Construction Materials | 190,358 | — | — | ||||||||||||
Consumer Finance | 221,203 | — | — | ||||||||||||
Containers & Packaging | 90,688 | — | — | ||||||||||||
Diversified Consumer Services | 71,599 | — | — | ||||||||||||
Electric Utilities | 167,133 | — | — | ||||||||||||
Electrical Equipment | 588,467 | — | — | ||||||||||||
Electronic Equipment, Instruments & Components | 933,900 | — | — | ||||||||||||
Entertainment | 182,936 | — | — | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 2,155,793 | — | — | ||||||||||||
Food & Staples Retailing | 19,000 | — | — | ||||||||||||
Food Products | 601,317 | — | — | ||||||||||||
Gas Utilities | 228,525 | — | — | ||||||||||||
Health Care Equipment & Supplies | 922,043 | — | — | ||||||||||||
Health Care Providers & Services | 571,374 | — | — | ||||||||||||
Hotels, Restaurants & Leisure | 451,832 | — | — | ||||||||||||
Household Durables | 349,752 | — | — | ||||||||||||
Independent Power & Renewable Electricity Producers | 67,379 | — | — | ||||||||||||
Insurance | 834,630 | — | — | ||||||||||||
IT Services | 346,700 | — | — | ||||||||||||
Leisure Products | 301,953 | — | — | ||||||||||||
Life Sciences Tools & Services | 623,065 | — | — | ||||||||||||
Machinery | 1,410,484 | — | — | ||||||||||||
Media | 191,001 | — | — | ||||||||||||
Metals & Mining | 534,728 | — | — | ||||||||||||
Mortgage Real Estate Investment Trusts (REITs) | 88,681 | — | — |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 103 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities (continued) | |||||||||||||||
Assets (continued) | |||||||||||||||
Long-Term Investments (continued) | |||||||||||||||
Common Stocks (continued) | |||||||||||||||
Multiline Retail | $ | 163,424 | $— | $— | |||||||||||
Multi-Utilities | 274,695 | — | — | ||||||||||||
Oil, Gas & Consumable Fuels | 352,439 | — | — | ||||||||||||
Paper & Forest Products | 20,735 | — | — | ||||||||||||
Personal Products | 156,386 | — | — | ||||||||||||
Professional Services | 518,239 | — | — | ||||||||||||
Real Estate Management & Development | 151,125 | — | — | ||||||||||||
Road & Rail | 286,227 | — | — | ||||||||||||
Semiconductors & Semiconductor Equipment | 834,843 | — | — | ||||||||||||
Software | 1,041,493 | — | — | ||||||||||||
Specialty Retail | 897,924 | — | — | ||||||||||||
Technology Hardware, Storage & Peripherals | 9,946 | — | — | ||||||||||||
Textiles, Apparel & Luxury Goods | 608,176 | — | — | ||||||||||||
Thrifts & Mortgage Finance | 14,033 | — | — | ||||||||||||
Trading Companies & Distributors | 215,802 | — | — | ||||||||||||
Exchange-Traded Fund | 849,047 | — | — | ||||||||||||
Short-Term Investment | |||||||||||||||
Affiliated Mutual Fund | 108,408 | — | — | ||||||||||||
|
|
|
|
|
| ||||||||||
Total | $ | 24,082,558 | $— | $— | |||||||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2021 were as follows (unaudited):
Equity Real Estate Investment Trusts (REITs) | 9.1 | % | ||
Machinery | 5.9 | |||
Banks | 5.6 | |||
Software | 4.4 | |||
Electronic Equipment, Instruments & Components | 3.9 | |||
Health Care Equipment & Supplies | 3.9 | |||
Specialty Retail | 3.8 | |||
Exchange-Traded Fund | 3.6 | |||
Semiconductors & Semiconductor Equipment | 3.5 | |||
Insurance | 3.5 | |||
Chemicals | 3.3 | |||
Capital Markets | 3.1 | |||
Life Sciences Tools & Services | 2.6 | |||
Textiles, Apparel & Luxury Goods | 2.6 | |||
Food Products | 2.5 |
Electrical Equipment | 2.5 | % | ||
Health Care Providers & Services | 2.4 | |||
Building Products | 2.3 | |||
Metals & Mining | 2.3 | |||
Professional Services | 2.2 | |||
Hotels, Restaurants & Leisure | 1.9 | |||
Biotechnology | 1.7 | |||
Construction & Engineering | 1.6 | |||
Auto Components | 1.6 | |||
Oil, Gas & Consumable Fuels | 1.5 | |||
Household Durables | 1.5 | |||
IT Services | 1.5 | |||
Leisure Products | 1.3 | |||
Automobiles | 1.2 | |||
Road & Rail | 1.2 |
See Notes to Financial Statements.
104 |
PGIM QMA Mid-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2021
Industry Classification (continued):
Multi-Utilities | 1.2 | % | ||
Commercial Services & Supplies | 1.1 | |||
Gas Utilities | 1.0 | |||
Consumer Finance | 0.9 | |||
Trading Companies & Distributors | 0.9 | |||
Aerospace & Defense | 0.9 | |||
Media | 0.8 | |||
Construction Materials | 0.8 | |||
Entertainment | 0.8 | |||
Electric Utilities | 0.7 | |||
Multiline Retail | 0.7 | |||
Personal Products | 0.7 | |||
Real Estate Management & Development | 0.6 | |||
Communications Equipment | 0.5 | |||
Affiliated Mutual Fund | 0.4 | |||
Containers & Packaging | 0.4 |
Mortgage Real Estate Investment Trusts (REITs) | 0.4 | % | ||
Diversified Consumer Services | 0.3 | |||
Independent Power & Renewable Electricity Producers | 0.3 | |||
Paper & Forest Products | 0.1 | |||
Food & Staples Retailing | 0.1 | |||
Thrifts & Mortgage Finance | 0.1 | |||
Technology Hardware, Storage & Peripherals | 0.0 | * | ||
Beverages | 0.0 | * | ||
|
| |||
101.7 | ||||
Liabilities in excess of other assets | (1.7 | ) | ||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05% |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 105 |
PGIM QMA Mid-Cap Core Equity Fund
Statement of Assets & Liabilities
as of July 31, 2021
Assets | |||||
Investments at value: | |||||
Unaffiliated investments (cost $18,329,094) | $ | 23,974,150 | |||
Affiliated investments (cost $108,408) | 108,408 | ||||
Receivable for investments sold | 749,281 | ||||
Receivable for Fund shares sold | 19,174 | ||||
Dividends receivable | 10,481 | ||||
Prepaid expenses | 352 | ||||
|
| ||||
Total Assets | 24,861,846 | ||||
|
| ||||
Liabilities | |||||
Payable for investments purchased | 769,228 | ||||
Payable for Fund shares purchased | 361,770 | ||||
Accrued expenses and other liabilities | 47,153 | ||||
Management fee payable | 8,093 | ||||
Trustees’ fees payable | 803 | ||||
Affiliated transfer agent fee payable | 76 | ||||
|
| ||||
Total Liabilities | 1,187,123 | ||||
|
| ||||
Net Assets | $ | 23,674,723 | |||
|
| ||||
| |||||
Net assets were comprised of: | |||||
Shares of beneficial interest, at par | $ | 1,659 | |||
Paid-in capital in excess of par | 15,157,836 | ||||
Total distributable earnings (loss) | 8,515,228 | ||||
|
| ||||
Net assets, July 31, 2021 | $ | 23,674,723 | |||
|
| ||||
Class R6 | |||||
Net asset value, offering price and redemption price per share, ($23,674,723 ÷ 1,659,057 shares of beneficial interest issued and outstanding) | $ | 14.27 | |||
|
|
See Notes to Financial Statements.
106 |
PGIM QMA Mid-Cap Core Equity Fund
Statement of Operations
Year Ended July 31, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $15 foreign withholding tax) | $ | 438,620 | ||
Affiliated dividend income | 295 | |||
Affiliated income from securities lending, net | 46 | |||
|
| |||
Total income | 438,961 | |||
|
| |||
Expenses | ||||
Management fee | 139,311 | |||
Custodian and accounting fees | 48,425 | |||
Audit fee | 26,188 | |||
Legal fees and expenses | 20,329 | |||
Trustees’ fees | 10,223 | |||
Shareholders’ reports | 4,684 | |||
Transfer agent’s fees and expenses (including affiliated expense of $419) | 537 | |||
SEC registration fees | 520 | |||
Registration fees | 250 | |||
Miscellaneous | 17,978 | |||
|
| |||
Total expenses | 268,445 | |||
Less: Fee waiver and/or expense reimbursement | (32,562 | ) | ||
|
| |||
Net expenses | 235,883 | |||
|
| |||
Net investment income (loss) | 203,078 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(79)) | 5,090,722 | |||
In-kind redemptions | 806,180 | |||
|
| |||
5,896,902 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | 4,461,420 | |||
|
| |||
Net gain (loss) on investment transactions | 10,358,322 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 10,561,400 | ||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 107 |
PGIM QMA Mid-Cap Core Equity Fund
Statements of Changes in Net Assets
Year Ended July 31, | ||||||||
2021 | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 203,078 | $ | 171,181 | ||||
Net realized gain (loss) on investment transactions | 5,896,902 | (1,792,623 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 4,461,420 | 353,492 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 10,561,400 | (1,267,950 | ) | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R6 | (184,245 | ) | (170,308 | ) | ||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 12,246,219 | 14,514,549 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 184,245 | 170,308 | ||||||
Cost of shares purchased | (19,947,084 | ) | (7,792,793 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (7,516,620 | ) | 6,892,064 | |||||
|
|
|
| |||||
Total increase (decrease) | 2,860,535 | 5,453,806 | ||||||
Net Assets: | ||||||||
Beginning of year | 20,814,188 | 15,360,382 | ||||||
|
|
|
| |||||
End of year | $ | 23,674,723 | $ | 20,814,188 | ||||
|
|
|
|
See Notes to Financial Statements.
108 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments
as of July 31, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 98.8% | ||||||||
COMMON STOCKS 97.2% | ||||||||
Aerospace & Defense 1.5% | ||||||||
AAR Corp.* | 34 | $ | 1,216 | |||||
Aerojet Rocketdyne Holdings, Inc. | 123 | 5,803 | ||||||
AeroVironment, Inc.* | 42 | 4,246 | ||||||
Axon Enterprise, Inc.* | 101 | 18,788 | ||||||
Boeing Co. (The)* | 849 | 192,282 | ||||||
Curtiss-Wright Corp. | 66 | 7,808 | ||||||
General Dynamics Corp. | 356 | 69,787 | ||||||
Hexcel Corp.* | 119 | 6,476 | ||||||
Howmet Aerospace, Inc.* | 598 | 19,626 | ||||||
Huntington Ingalls Industries, Inc. | 69 | 14,154 | ||||||
Kaman Corp. | 35 | 1,552 | ||||||
L3Harris Technologies, Inc. | 319 | 72,330 | ||||||
Lockheed Martin Corp. | 379 | 140,863 | ||||||
Mercury Systems, Inc.* | 85 | 5,610 | ||||||
Moog, Inc. (Class A Stock) | 45 | 3,504 | ||||||
National Presto Industries, Inc. | 6 | 579 | ||||||
Northrop Grumman Corp. | 231 | 83,858 | ||||||
Park Aerospace Corp. | 18 | 268 | ||||||
Raytheon Technologies Corp. | 2,336 | 203,115 | ||||||
Teledyne Technologies, Inc.* | 76 | 34,411 | ||||||
Textron, Inc. | 348 | 24,015 | ||||||
TransDigm Group, Inc.* | 89 | 57,057 | ||||||
Triumph Group, Inc.* | 46 | 876 | ||||||
|
| |||||||
968,224 | ||||||||
Air Freight & Logistics 0.6% | ||||||||
Atlas Air Worldwide Holdings, Inc.* | 34 | 2,277 | ||||||
C.H. Robinson Worldwide, Inc. | 206 | 18,369 | ||||||
Echo Global Logistics, Inc.* | 15 | 464 | ||||||
Expeditors International of Washington, Inc. | 260 | 33,345 | ||||||
FedEx Corp. | 378 | 105,821 | ||||||
Forward Air Corp. | 39 | 3,449 | ||||||
Hub Group, Inc. (Class A Stock)* | 51 | 3,380 | ||||||
United Parcel Service, Inc. (Class B Stock) | 1,116 | 213,558 | ||||||
|
| |||||||
380,663 | ||||||||
Airlines 0.2% | ||||||||
Alaska Air Group, Inc.* | 193 | 11,200 | ||||||
Allegiant Travel Co.* | 25 | 4,753 | ||||||
American Airlines Group, Inc.* | 987 | 20,115 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 109 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Airlines (cont’d.) | ||||||||
Delta Air Lines, Inc.* | 985 | $ | 39,302 | |||||
Hawaiian Holdings, Inc.* | 54 | 1,065 | ||||||
JetBlue Airways Corp.* | 429 | 6,345 | ||||||
SkyWest, Inc.* | 68 | 2,753 | ||||||
Southwest Airlines Co.* | 913 | 46,125 | ||||||
United Airlines Holdings, Inc.* | 497 | 23,220 | ||||||
|
| |||||||
154,878 | ||||||||
Auto Components 0.3% | ||||||||
Adient PLC* | 147 | 6,193 | ||||||
American Axle & Manufacturing Holdings, Inc.* | 85 | 824 | ||||||
Aptiv PLC* | 420 | 70,077 | ||||||
BorgWarner, Inc. | 372 | 18,221 | ||||||
Cooper-Standard Holdings, Inc.* | 22 | 573 | ||||||
Dana, Inc. | 186 | 4,494 | ||||||
Dorman Products, Inc.* | 44 | 4,451 | ||||||
Fox Factory Holding Corp.* | 67 | 10,823 | ||||||
Gentex Corp. | 343 | 11,672 | ||||||
Gentherm, Inc.* | 47 | 3,898 | ||||||
Goodyear Tire & Rubber Co. (The)* | 388 | 6,095 | ||||||
LCI Industries | 42 | 6,124 | ||||||
Lear Corp. | 83 | 14,523 | ||||||
Motorcar Parts of America, Inc.* | 15 | 334 | ||||||
Patrick Industries, Inc. | 31 | 2,562 | ||||||
Standard Motor Products, Inc. | 20 | 835 | ||||||
Visteon Corp.* | 46 | 5,246 | ||||||
|
| |||||||
166,945 | ||||||||
Automobiles 1.6% | ||||||||
Ford Motor Co.* | 5,969 | 83,268 | ||||||
General Motors Co.* | 1,967 | 111,804 | ||||||
Harley-Davidson, Inc. | 239 | 9,469 | ||||||
Tesla, Inc.* | 1,192 | 819,142 | ||||||
Thor Industries, Inc. | 88 | 10,416 | ||||||
Winnebago Industries, Inc. | 47 | 3,378 | ||||||
|
| |||||||
1,037,477 | ||||||||
Banks 4.2% | ||||||||
Allegiance Bancshares, Inc. | 23 | 839 |
See Notes to Financial Statements.
110 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
Ameris Bancorp | 95 | $ | 4,618 | |||||
Associated Banc-Corp. | 193 | 3,821 | ||||||
Banc of California, Inc. | 23 | 394 | ||||||
BancFirst Corp. | 35 | 1,942 | ||||||
Bancorp, Inc. (The)* | 75 | 1,753 | ||||||
BancorpSouth Bank | 112 | 2,890 | ||||||
Bank of America Corp. | 11,618 | 445,666 | ||||||
Bank of Hawaii Corp. | 62 | 5,190 | ||||||
Bank OZK | 193 | 7,857 | ||||||
BankUnited, Inc. | 139 | 5,502 | ||||||
Banner Corp. | 62 | 3,288 | ||||||
Berkshire Hills Bancorp, Inc. | 42 | 1,136 | ||||||
Brookline Bancorp, Inc. | 51 | 733 | ||||||
Cadence BanCorp | 153 | 2,907 | ||||||
Cathay General Bancorp | 101 | 3,825 | ||||||
Central Pacific Financial Corp. | 15 | 384 | ||||||
CIT Group, Inc. | 141 | 6,802 | ||||||
Citigroup, Inc. | 3,183 | 215,234 | ||||||
Citizens Financial Group, Inc. | 654 | 27,573 | ||||||
City Holding Co. | 31 | 2,345 | ||||||
Columbia Banking System, Inc. | 92 | 3,214 | ||||||
Comerica, Inc. | 215 | 14,762 | ||||||
Commerce Bancshares, Inc. | 163 | 11,529 | ||||||
Community Bank System, Inc. | 81 | 5,803 | ||||||
Cullen/Frost Bankers, Inc. | 90 | 9,659 | ||||||
Customers Bancorp, Inc.* | 25 | 905 | ||||||
CVB Financial Corp. | 193 | 3,679 | ||||||
Dime Community Bancshares, Inc. | 53 | 1,750 | ||||||
Eagle Bancorp, Inc. | 39 | 2,146 | ||||||
East West Bancorp, Inc. | 217 | 15,440 | ||||||
FB Financial Corp. | 45 | 1,701 | ||||||
Fifth Third Bancorp | 1,086 | 39,411 | ||||||
First Bancorp. | 46 | 1,840 | ||||||
First BanCorp. (Puerto Rico) | 265 | 3,214 | ||||||
First Commonwealth Financial Corp. | 79 | 1,040 | ||||||
First Financial Bancorp | 127 | 2,857 | ||||||
First Financial Bankshares, Inc. | 214 | 10,452 | ||||||
First Hawaiian, Inc. | 193 | 5,313 | ||||||
First Horizon Corp. | 838 | 12,947 | ||||||
First Midwest Bancorp, Inc. | 122 | 2,189 | ||||||
First Republic Bank | 274 | 53,435 | ||||||
FNB Corp. | 424 | 4,859 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 111 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
Fulton Financial Corp. | 200 | $ | 3,064 | |||||
Glacier Bancorp, Inc. | 144 | 7,425 | ||||||
Great Western Bancorp, Inc. | 66 | 2,033 | ||||||
Hancock Whitney Corp. | 123 | 5,376 | ||||||
Hanmi Financial Corp. | 15 | 273 | ||||||
Heritage Financial Corp. | 27 | 653 | ||||||
Hilltop Holdings, Inc. | 78 | 2,471 | ||||||
Home BancShares, Inc. | 194 | 4,109 | ||||||
Hope Bancorp, Inc. | 126 | 1,669 | ||||||
Huntington Bancshares, Inc. | 2,201 | 30,990 | ||||||
Independent Bank Corp. | 51 | 3,605 | ||||||
Independent Bank Group, Inc. | 54 | 3,764 | ||||||
International Bancshares Corp. | 75 | 2,931 | ||||||
Investors Bancorp, Inc. | 295 | 4,077 | ||||||
JPMorgan Chase & Co. | 4,668 | 708,509 | ||||||
KeyCorp | 1,495 | 29,392 | ||||||
M&T Bank Corp. | 201 | 26,904 | ||||||
National Bank Holdings Corp. (Class A Stock) | 41 | 1,454 | ||||||
NBT Bancorp, Inc. | 64 | 2,230 | ||||||
OFG Bancorp (Puerto Rico) | 35 | 809 | ||||||
Old National Bancorp | 202 | 3,250 | ||||||
Pacific Premier Bancorp, Inc. | 135 | 5,127 | ||||||
PacWest Bancorp | 163 | 6,491 | ||||||
Park National Corp. | 23 | 2,620 | ||||||
People’s United Financial, Inc. | 635 | 9,969 | ||||||
Pinnacle Financial Partners, Inc. | 123 | 11,022 | ||||||
PNC Financial Services Group, Inc. (The) | 657 | 119,843 | ||||||
Preferred Bank | 15 | 885 | ||||||
Prosperity Bancshares, Inc. | 151 | 10,297 | ||||||
Regions Financial Corp. | 1,427 | 27,470 | ||||||
Renasant Corp. | 77 | 2,709 | ||||||
S&T Bancorp, Inc. | 43 | 1,266 | ||||||
Seacoast Banking Corp. of Florida | 58 | 1,763 | ||||||
ServisFirst Bancshares, Inc. | 68 | 4,833 | ||||||
Signature Bank | 90 | 20,427 | ||||||
Simmons First National Corp. (Class A Stock) | 137 | 3,729 | ||||||
Southside Bancshares, Inc. | 47 | 1,694 | ||||||
Sterling Bancorp | 267 | 5,797 | ||||||
SVB Financial Group* | 90 | 49,496 | ||||||
Synovus Financial Corp. | 231 | 9,448 | ||||||
Texas Capital Bancshares, Inc.* | 73 | 4,598 | ||||||
Tompkins Financial Corp. | 15 | 1,151 |
See Notes to Financial Statements.
112 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
Triumph Bancorp, Inc.* | 31 | $ | 2,376 | |||||
Truist Financial Corp. | 2,072 | 112,779 | ||||||
Trustmark Corp. | 83 | 2,492 | ||||||
U.S. Bancorp | 2,092 | 116,190 | ||||||
UMB Financial Corp. | 67 | 6,271 | ||||||
Umpqua Holdings Corp. | 287 | 5,416 | ||||||
United Bankshares, Inc. | 210 | 7,253 | ||||||
United Community Banks, Inc. | 104 | 2,996 | ||||||
Valley National Bancorp | 602 | 7,760 | ||||||
Veritex Holdings, Inc. | 54 | 1,812 | ||||||
Webster Financial Corp. | 147 | 7,071 | ||||||
Wells Fargo & Co. | 6,367 | 292,500 | ||||||
Westamerica BanCorp | 34 | 1,889 | ||||||
Wintrust Financial Corp. | 85 | 6,069 | ||||||
Zions Bancorp NA | 245 | 12,777 | ||||||
|
| |||||||
2,684,118 | ||||||||
Beverages 1.3% | ||||||||
Boston Beer Co., Inc. (The) (Class A Stock)* | 17 | 12,070 | ||||||
Brown-Forman Corp. (Class B Stock) | 281 | 19,929 | ||||||
Celsius Holdings, Inc.* | 59 | 4,049 | ||||||
Coca-Cola Co. (The) | 5,979 | 340,982 | ||||||
Coca-Cola Consolidated, Inc. | 9 | 3,592 | ||||||
Constellation Brands, Inc. (Class A Stock) | 262 | 58,777 | ||||||
MGP Ingredients, Inc. | 13 | 775 | ||||||
Molson Coors Beverage Co. (Class B Stock)* | 291 | 14,227 | ||||||
Monster Beverage Corp.* | 571 | 53,857 | ||||||
National Beverage Corp. | 31 | 1,407 | ||||||
PepsiCo, Inc. | 2,128 | 333,990 | ||||||
|
| |||||||
843,655 | ||||||||
Biotechnology 1.8% | ||||||||
AbbVie, Inc. | 2,723 | 316,685 | ||||||
Amgen, Inc. | 889 | 214,729 | ||||||
Anika Therapeutics, Inc.* | 17 | 682 | ||||||
Arrowhead Pharmaceuticals, Inc.* | 157 | 10,879 | ||||||
Biogen, Inc.* | 236 | 77,108 | ||||||
Coherus Biosciences, Inc.* | 77 | 1,005 | ||||||
Cytokinetics, Inc.* | 103 | 3,057 | ||||||
Eagle Pharmaceuticals, Inc.* | 14 | 651 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 113 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology (cont’d.) | ||||||||
Emergent BioSolutions, Inc.* | 77 | $ | 5,074 | |||||
Enanta Pharmaceuticals, Inc.* | 20 | 845 | ||||||
Exelixis, Inc.* | 462 | 7,785 | ||||||
Gilead Sciences, Inc. | 1,937 | 132,278 | ||||||
Halozyme Therapeutics, Inc.* | 198 | 8,183 | ||||||
Incyte Corp.* | 289 | 22,354 | ||||||
Ligand Pharmaceuticals, Inc.* | 32 | 3,632 | ||||||
Moderna, Inc.* | 470 | 166,192 | ||||||
Myriad Genetics, Inc.* | 116 | 3,669 | ||||||
Neurocrine Biosciences, Inc.* | 149 | 13,888 | ||||||
Organogenesis Holdings, Inc.* | 20 | 307 | ||||||
Regeneron Pharmaceuticals, Inc.* | 163 | 93,661 | ||||||
REGENXBIO, Inc.* | 46 | 1,487 | ||||||
Spectrum Pharmaceuticals, Inc.* | 73 | 235 | ||||||
United Therapeutics Corp.* | 77 | 14,009 | ||||||
Vanda Pharmaceuticals, Inc.* | 54 | 881 | ||||||
Vericel Corp.* | 77 | 4,076 | ||||||
Vertex Pharmaceuticals, Inc.* | 400 | 80,632 | ||||||
Xencor, Inc.* | 93 | 2,863 | ||||||
|
| |||||||
1,186,847 | ||||||||
Building Products 0.7% | ||||||||
A.O. Smith Corp. | 209 | 14,699 | ||||||
AAON, Inc. | 64 | 3,978 | ||||||
Allegion PLC | 141 | 19,261 | ||||||
American Woodmark Corp.* | 31 | 2,302 | ||||||
Apogee Enterprises, Inc. | 28 | 1,111 | ||||||
Builders FirstSource, Inc.* | 320 | 14,240 | ||||||
Carlisle Cos., Inc. | 79 | 15,977 | ||||||
Carrier Global Corp. | 1,258 | 69,504 | ||||||
Fortune Brands Home & Security, Inc. | 216 | 21,054 | ||||||
Gibraltar Industries, Inc.* | 46 | 3,435 | ||||||
Griffon Corp. | 28 | 647 | ||||||
Insteel Industries, Inc. | 34 | 1,320 | ||||||
Johnson Controls International PLC | 1,106 | 78,990 | ||||||
Lennox International, Inc. | 54 | 17,789 | ||||||
Masco Corp. | 390 | 23,287 | ||||||
Owens Corning | 160 | 15,386 | ||||||
PGT Innovations, Inc.* | 48 | 1,084 | ||||||
Quanex Building Products Corp. | 23 | 571 | ||||||
Resideo Technologies, Inc.* | 190 | 5,605 |
See Notes to Financial Statements.
114 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Building Products (cont’d.) | ||||||||
Simpson Manufacturing Co., Inc. | 67 | $ | 7,536 | |||||
Trane Technologies PLC | 371 | 75,539 | ||||||
Trex Co., Inc.* | 179 | 17,381 | ||||||
UFP Industries, Inc. | 93 | 6,906 | ||||||
|
| |||||||
417,602 | ||||||||
Capital Markets 2.8% | ||||||||
Affiliated Managers Group, Inc. | 72 | 11,408 | ||||||
Ameriprise Financial, Inc. | 183 | 47,134 | ||||||
B Riley Financial, Inc. | 31 | 2,094 | ||||||
Bank of New York Mellon Corp. (The) | 1,246 | 63,957 | ||||||
BlackRock, Inc. | 223 | 193,379 | ||||||
Blucora, Inc.* | 46 | 776 | ||||||
Brightsphere Investment Group, Inc. | 62 | 1,549 | ||||||
Cboe Global Markets, Inc. | 165 | 19,548 | ||||||
Charles Schwab Corp. (The) | 2,316 | 157,372 | ||||||
CME Group, Inc. | 554 | 117,520 | ||||||
Donnelley Financial Solutions, Inc.* | 15 | 483 | ||||||
Evercore, Inc. (Class A Stock) | 69 | 9,122 | ||||||
FactSet Research Systems, Inc. | 62 | 22,151 | ||||||
Federated Hermes, Inc. | 124 | 4,023 | ||||||
Franklin Resources, Inc. | 385 | 11,377 | ||||||
Goldman Sachs Group, Inc. (The) | 526 | 197,187 | ||||||
Greenhill & Co., Inc. | 15 | 240 | ||||||
Interactive Brokers Group, Inc. (Class A Stock) | 123 | 7,609 | ||||||
Intercontinental Exchange, Inc. | 867 | 103,893 | ||||||
Invesco Ltd. | 583 | 14,214 | ||||||
Janus Henderson Group PLC | 244 | 10,209 | ||||||
Jefferies Financial Group, Inc. | 306 | 10,156 | ||||||
MarketAxess Holdings, Inc. | 61 | 28,985 | ||||||
Moody’s Corp. | 252 | 94,752 | ||||||
Morgan Stanley | 2,292 | 219,986 | ||||||
MSCI, Inc. | 127 | 75,687 | ||||||
Nasdaq, Inc. | 179 | 33,425 | ||||||
Northern Trust Corp. | 324 | 36,563 | ||||||
Piper Sandler Cos. | 20 | 2,454 | ||||||
Raymond James Financial, Inc. | 190 | 24,601 | ||||||
S&P Global, Inc. | 371 | 159,055 | ||||||
SEI Investments Co. | 183 | 11,126 | ||||||
State Street Corp. | 539 | 46,968 | ||||||
Stifel Financial Corp. | 154 | 10,247 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 115 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Capital Markets (cont’d.) | ||||||||
StoneX Group, Inc.* | 19 | $ | 1,226 | |||||
T. Rowe Price Group, Inc. | 351 | 71,660 | ||||||
Virtus Investment Partners, Inc. | 15 | 4,142 | ||||||
WisdomTree Investments, Inc. | 69 | 426 | ||||||
|
| |||||||
1,826,704 | ||||||||
Chemicals 1.8% | ||||||||
AdvanSix, Inc.* | 19 | 636 | ||||||
Air Products & Chemicals, Inc. | 343 | 99,823 | ||||||
Albemarle Corp. | 181 | 37,293 | ||||||
American Vanguard Corp. | 23 | 380 | ||||||
Ashland Global Holdings, Inc. | 86 | 7,316 | ||||||
Avient Corp. | 127 | 6,162 | ||||||
Balchem Corp. | 54 | 7,284 | ||||||
Cabot Corp. | 80 | 4,405 | ||||||
Celanese Corp. | 173 | 26,948 | ||||||
CF Industries Holdings, Inc. | 330 | 15,592 | ||||||
Chemours Co. (The) | 253 | 8,412 | ||||||
Corteva, Inc. | 1,136 | 48,598 | ||||||
Dow, Inc. | 1,151 | 71,546 | ||||||
DuPont de Nemours, Inc. | 823 | 61,766 | ||||||
Eastman Chemical Co. | 214 | 24,122 | ||||||
Ecolab, Inc. | 388 | 85,682 | ||||||
Ferro Corp.* | 87 | 1,810 | ||||||
FMC Corp. | 198 | 21,176 | ||||||
FutureFuel Corp. | 23 | 195 | ||||||
GCP Applied Technologies, Inc.* | 62 | 1,441 | ||||||
Hawkins, Inc. | 15 | 545 | ||||||
HB Fuller Co. | 85 | 5,493 | ||||||
Ingevity Corp.* | 71 | 6,031 | ||||||
Innospec, Inc. | 43 | 3,803 | ||||||
International Flavors & Fragrances, Inc. | 387 | 58,298 | ||||||
Koppers Holdings, Inc.* | 15 | 461 | ||||||
Kraton Corp.* | 40 | 1,528 | ||||||
Linde PLC (United Kingdom) | 806 | 247,756 | ||||||
Livent Corp.* | 232 | 4,526 | ||||||
LyondellBasell Industries NV (Class A Stock) | 400 | 39,732 | ||||||
Minerals Technologies, Inc. | 50 | 4,011 | ||||||
Mosaic Co. (The) | 528 | 16,489 | ||||||
NewMarket Corp. | 15 | 4,739 | ||||||
Olin Corp. | 206 | 9,688 |
See Notes to Financial Statements.
116 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Chemicals (cont’d.) | ||||||||
PPG Industries, Inc. | 369 | $ | 60,339 | |||||
Quaker Chemical Corp. | 23 | 5,790 | ||||||
Rayonier Advanced Materials, Inc.* | 46 | 321 | ||||||
RPM International, Inc. | 201 | 17,405 | ||||||
Scotts Miracle-Gro Co. (The) | 69 | 12,210 | ||||||
Sensient Technologies Corp. | 62 | 5,405 | ||||||
Sherwin-Williams Co. (The) | 372 | 108,263 | ||||||
Stepan Co. | 37 | 4,364 | ||||||
Tredegar Corp. | 15 | 196 | ||||||
Trinseo SA | 49 | 2,664 | ||||||
Valvoline, Inc. | 279 | 8,560 | ||||||
|
| |||||||
1,159,204 | ||||||||
Commercial Services & Supplies 0.5% | ||||||||
ABM Industries, Inc. | 91 | 4,231 | ||||||
Brady Corp. (Class A Stock) | 65 | 3,554 | ||||||
Brink’s Co. (The) | 77 | 5,926 | ||||||
Cintas Corp. | 136 | 53,608 | ||||||
Clean Harbors, Inc.* | 74 | 7,030 | ||||||
Copart, Inc.* | 325 | 47,775 | ||||||
CoreCivic, Inc.* | 103 | 1,059 | ||||||
Deluxe Corp. | 54 | 2,371 | ||||||
Harsco Corp.* | 74 | 1,489 | ||||||
Healthcare Services Group, Inc. | 88 | 2,297 | ||||||
Herman Miller, Inc. | 105 | 4,531 | ||||||
HNI Corp. | 52 | 1,940 | ||||||
IAA, Inc.* | 204 | 12,338 | ||||||
Interface, Inc. | 46 | 663 | ||||||
KAR Auction Services, Inc.* | 162 | 2,670 | ||||||
Matthews International Corp. (Class A Stock) | 31 | 1,073 | ||||||
MSA Safety, Inc. | 64 | 10,527 | ||||||
Pitney Bowes, Inc. | 172 | 1,376 | ||||||
Republic Services, Inc. | 328 | 38,822 | ||||||
Rollins, Inc. | 335 | 12,840 | ||||||
Stericycle, Inc.* | 136 | 9,595 | ||||||
Team, Inc.* | 15 | 92 | ||||||
Tetra Tech, Inc. | 83 | 11,082 | ||||||
UniFirst Corp. | 31 | 6,751 | ||||||
US Ecology, Inc.* | 54 | 1,890 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 117 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Commercial Services & Supplies (cont’d.) | ||||||||
Viad Corp.* | 23 | $ | 1,054 | |||||
Waste Management, Inc. | 601 | 89,104 | ||||||
|
| |||||||
335,688 | ||||||||
Communications Equipment 0.8% | ||||||||
ADTRAN, Inc. | 70 | 1,569 | ||||||
Applied Optoelectronics, Inc.* | 15 | 116 | ||||||
Arista Networks, Inc.* | 87 | 33,094 | ||||||
CalAmp Corp.* | 23 | 279 | ||||||
Ciena Corp.* | 237 | 13,779 | ||||||
Cisco Systems, Inc. | 6,493 | 359,517 | ||||||
Comtech Telecommunications Corp. | 25 | 624 | ||||||
Digi International, Inc.* | 23 | 476 | ||||||
Extreme Networks, Inc.* | 118 | 1,299 | ||||||
F5 Networks, Inc.* | 96 | 19,825 | ||||||
Harmonic, Inc.* | 44 | 389 | ||||||
Juniper Networks, Inc. | 503 | 14,154 | ||||||
Lumentum Holdings, Inc.* | 116 | 9,743 | ||||||
Motorola Solutions, Inc. | 263 | 58,891 | ||||||
NETGEAR, Inc.* | 39 | 1,336 | ||||||
NetScout Systems, Inc.* | 83 | 2,387 | ||||||
Plantronics, Inc.* | 41 | 1,279 | ||||||
Viasat, Inc.* | 104 | 5,163 | ||||||
Viavi Solutions, Inc.* | 303 | 5,057 | ||||||
|
| |||||||
528,977 | ||||||||
Construction & Engineering 0.1% | ||||||||
AECOM* | 225 | 14,166 | ||||||
Arcosa, Inc. | 67 | 3,669 | ||||||
Comfort Systems USA, Inc. | 52 | 3,887 | ||||||
Dycom Industries, Inc.* | 45 | 3,123 | ||||||
EMCOR Group, Inc. | 83 | 10,110 | ||||||
Fluor Corp.* | 143 | 2,383 | ||||||
Granite Construction, Inc. | 77 | 2,958 | ||||||
MasTec, Inc.* | 90 | 9,111 | ||||||
Matrix Service Co.* | 31 | 338 | ||||||
MYR Group, Inc.* | 24 | 2,295 | ||||||
Quanta Services, Inc. | 214 | 19,453 | ||||||
Valmont Industries, Inc. | 35 | 8,293 | ||||||
|
| |||||||
79,786 |
See Notes to Financial Statements.
118 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Construction Materials 0.1% | ||||||||
Eagle Materials, Inc. | 72 | $ | 10,175 | |||||
Martin Marietta Materials, Inc. | 98 | 35,603 | ||||||
U.S. Concrete, Inc.* | 31 | 2,257 | ||||||
Vulcan Materials Co. | 208 | 37,438 | ||||||
|
| |||||||
85,473 | ||||||||
Consumer Finance 0.7% | ||||||||
American Express Co. | 1,005 | 171,383 | ||||||
Capital One Financial Corp. | 700 | 113,190 | ||||||
Discover Financial Services | 470 | 58,430 | ||||||
Encore Capital Group, Inc.* | 39 | 1,846 | ||||||
Enova International, Inc.* | 39 | 1,290 | ||||||
EZCORP, Inc. (Class A Stock)* | 31 | 177 | ||||||
FirstCash, Inc. | 63 | 4,990 | ||||||
Green Dot Corp. (Class A Stock)* | 85 | 3,916 | ||||||
LendingTree, Inc.* | 19 | 3,709 | ||||||
Navient Corp. | 244 | 4,985 | ||||||
PRA Group, Inc.* | 77 | 2,987 | ||||||
PROG Holdings, Inc. | 91 | 3,983 | ||||||
SLM Corp. | 490 | 9,227 | ||||||
Synchrony Financial | 833 | 39,168 | ||||||
World Acceptance Corp.* | 8 | 1,517 | ||||||
|
| |||||||
420,798 | ||||||||
Containers & Packaging 0.3% | ||||||||
Amcor PLC | 2,287 | 26,438 | ||||||
AptarGroup, Inc. | 103 | 13,279 | ||||||
Avery Dennison Corp. | 129 | 27,178 | ||||||
Ball Corp. | 505 | 40,844 | ||||||
Greif, Inc. (Class A Stock) | 34 | 2,061 | ||||||
International Paper Co. | 604 | 34,887 | ||||||
Myers Industries, Inc. | 27 | 572 | ||||||
O-I Glass, Inc.* | 192 | 2,840 | ||||||
Packaging Corp. of America | 148 | 20,942 | ||||||
Sealed Air Corp. | 234 | 13,279 | ||||||
Silgan Holdings, Inc. | 123 | 4,984 | ||||||
Sonoco Products Co. | 157 | 10,015 | ||||||
Westrock Co. | 412 | 20,274 | ||||||
|
| |||||||
217,593 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 119 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Distributors 0.1% | ||||||||
Core-Mark Holding Co., Inc. | 77 | $ | 3,314 | |||||
Genuine Parts Co. | 223 | 28,303 | ||||||
LKQ Corp.* | 430 | 21,823 | ||||||
Pool Corp. | 66 | 31,536 | ||||||
|
| |||||||
84,976 | ||||||||
Diversified Consumer Services 0.1% | ||||||||
Adtalem Global Education, Inc.* | 69 | 2,508 | ||||||
American Public Education, Inc.* | 15 | 444 | ||||||
Graham Holdings Co. (Class B Stock) | 9 | 5,982 | ||||||
Grand Canyon Education, Inc.* | 77 | 7,113 | ||||||
H&R Block, Inc. | 248 | 6,088 | ||||||
Perdoceo Education Corp.* | 69 | 818 | ||||||
Regis Corp.* | 23 | 183 | ||||||
Service Corp. International | 258 | 16,123 | ||||||
Strategic Education, Inc. | 38 | 3,013 | ||||||
WW International, Inc.* | 54 | 1,660 | ||||||
|
| |||||||
43,932 | ||||||||
Diversified Financial Services 1.3% | ||||||||
Berkshire Hathaway, Inc. (Class B Stock)* | 2,920 | 812,607 | ||||||
Diversified Telecommunication Services 1.1% | ||||||||
AT&T, Inc. | 10,971 | 307,737 | ||||||
ATN International, Inc. | 15 | 646 | ||||||
Cincinnati Bell, Inc.* | 31 | 475 | ||||||
Cogent Communications Holdings, Inc. | 69 | 5,355 | ||||||
Consolidated Communications Holdings, Inc.* | 46 | 354 | ||||||
Iridium Communications, Inc.* | 188 | 7,939 | ||||||
Lumen Technologies, Inc. | 1,531 | 19,092 | ||||||
Verizon Communications, Inc. | 6,377 | 355,709 | ||||||
|
| |||||||
697,307 | ||||||||
Electric Utilities 1.5% | ||||||||
ALLETE, Inc. | 82 | 5,766 | ||||||
Alliant Energy Corp. | 384 | 22,476 | ||||||
American Electric Power Co., Inc. | 773 | 68,117 | ||||||
Duke Energy Corp. | 1,187 | 124,766 | ||||||
Edison International | 585 | 31,883 |
See Notes to Financial Statements.
120 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electric Utilities (cont’d.) | ||||||||
Entergy Corp. | 312 | $ | 32,111 | |||||
Evergy, Inc. | 352 | 22,957 | ||||||
Eversource Energy | 530 | 45,723 | ||||||
Exelon Corp. | 1,509 | 70,621 | ||||||
FirstEnergy Corp. | 838 | 32,112 | ||||||
Hawaiian Electric Industries, Inc. | 160 | 6,934 | ||||||
IDACORP, Inc. | 78 | 8,225 | ||||||
NextEra Energy, Inc. | 3,022 | 235,414 | ||||||
NRG Energy, Inc. | 376 | 15,506 | ||||||
OGE Energy Corp. | 311 | 10,496 | ||||||
Pinnacle West Capital Corp. | 172 | 14,371 | ||||||
PNM Resources, Inc. | 139 | 6,718 | ||||||
PPL Corp. | 1,151 | 32,654 | ||||||
Southern Co. (The) | 1,634 | 104,364 | ||||||
Xcel Energy, Inc. | 830 | 56,647 | ||||||
|
| |||||||
947,861 | ||||||||
Electrical Equipment 0.6% | ||||||||
Acuity Brands, Inc. | 62 | 10,873 | ||||||
AMETEK, Inc. | 358 | 49,780 | ||||||
AZZ, Inc. | 34 | 1,802 | ||||||
Eaton Corp. PLC | 617 | 97,517 | ||||||
Emerson Electric Co. | 928 | 93,626 | ||||||
Encore Wire Corp. | 32 | 2,510 | ||||||
EnerSys | 73 | 7,202 | ||||||
Generac Holdings, Inc.* | 98 | 41,097 | ||||||
Hubbell, Inc. | 87 | 17,440 | ||||||
nVent Electric PLC | 227 | 7,175 | ||||||
Powell Industries, Inc. | 8 | 233 | ||||||
Regal Beloit Corp. | 69 | 10,159 | ||||||
Rockwell Automation, Inc. | 181 | 55,643 | ||||||
Sunrun, Inc.* | 242 | 12,819 | ||||||
Vicor Corp.* | 39 | 4,509 | ||||||
|
| |||||||
412,385 | ||||||||
Electronic Equipment, Instruments & Components 0.9% | ||||||||
Advanced Energy Industries, Inc. | 66 | 6,848 | ||||||
Amphenol Corp. (Class A Stock) | 921 | 66,763 | ||||||
Arlo Technologies, Inc.* | 76 | 464 | ||||||
Arrow Electronics, Inc.* | 116 | 13,754 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 121 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electronic Equipment, Instruments & Components (cont’d.) | ||||||||
Avnet, Inc. | 140 | $ | 5,785 | |||||
Badger Meter, Inc. | 46 | 4,647 | ||||||
Bel Fuse, Inc. (Class B Stock) | 15 | 205 | ||||||
Belden, Inc. | 77 | 3,773 | ||||||
Benchmark Electronics, Inc. | 39 | 1,030 | ||||||
CDW Corp. | 219 | 40,154 | ||||||
Cognex Corp. | 271 | 24,501 | ||||||
Coherent, Inc.* | 46 | 11,313 | ||||||
Corning, Inc. | 1,193 | 49,939 | ||||||
CTS Corp. | 31 | 1,085 | ||||||
Daktronics, Inc.* | 39 | 238 | ||||||
ePlus, Inc.* | 28 | 2,589 | ||||||
Fabrinet (Thailand)* | 54 | 5,104 | ||||||
FARO Technologies, Inc.* | 31 | 2,260 | ||||||
II-VI, Inc.* | 160 | 11,170 | ||||||
Insight Enterprises, Inc.* | 54 | 5,421 | ||||||
IPG Photonics Corp.* | 63 | 13,744 | ||||||
Itron, Inc.* | 70 | 6,903 | ||||||
Jabil, Inc. | 204 | 12,146 | ||||||
Keysight Technologies, Inc.* | 285 | 46,897 | ||||||
Knowles Corp.* | 100 | 2,004 | ||||||
Littelfuse, Inc. | 37 | 9,842 | ||||||
Methode Electronics, Inc. | 51 | 2,439 | ||||||
National Instruments Corp. | 191 | 8,425 | ||||||
OSI Systems, Inc.* | 35 | 3,502 | ||||||
PC Connection, Inc. | 15 | 713 | ||||||
Plexus Corp.* | 44 | 3,974 | ||||||
Rogers Corp.* | 32 | 6,099 | ||||||
Sanmina Corp.* | 86 | 3,304 | ||||||
ScanSource, Inc.* | 31 | 855 | ||||||
SYNNEX Corp. | 70 | 8,368 | ||||||
TE Connectivity Ltd. | 511 | 75,357 | ||||||
Trimble, Inc.* | 389 | 33,259 | ||||||
TTM Technologies, Inc.* | 116 | 1,623 | ||||||
Vishay Intertechnology, Inc. | 166 | 3,674 | ||||||
Vontier Corp. | 237 | 7,667 | ||||||
Zebra Technologies Corp. (Class A Stock)* | 86 | 47,513 | ||||||
|
| |||||||
555,351 | ||||||||
Energy Equipment & Services 0.2% | ||||||||
Archrock, Inc. | 88 | 758 |
See Notes to Financial Statements.
122 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Energy Equipment & Services (cont’d.) | ||||||||
Baker Hughes Co. | 1,071 | $ | 22,748 | |||||
Bristow Group, Inc.* | 8 | 208 | ||||||
ChampionX Corp.* | 261 | 6,066 | ||||||
Core Laboratories NV | 55 | 1,835 | ||||||
DMC Global, Inc.* | 24 | 1,050 | ||||||
Dril-Quip, Inc.* | 39 | 1,114 | ||||||
Halliburton Co. | 1,369 | 28,311 | ||||||
Helix Energy Solutions Group, Inc.* | 108 | 448 | ||||||
Helmerich & Payne, Inc. | 142 | 4,071 | ||||||
Nabors Industries Ltd.* | 14 | 1,225 | ||||||
NOV, Inc.* | 584 | 8,065 | ||||||
Oceaneering International, Inc.* | 93 | 1,233 | ||||||
Oil States International, Inc.* | 54 | 306 | ||||||
Patterson-UTI Energy, Inc. | 196 | 1,572 | ||||||
ProPetro Holding Corp.* | 66 | 498 | ||||||
RPC, Inc.* | 69 | 290 | ||||||
Schlumberger NV | 2,155 | 62,129 | ||||||
US Silica Holdings, Inc.* | 62 | 626 | ||||||
|
| |||||||
142,553 | ||||||||
Entertainment 1.7% | ||||||||
Activision Blizzard, Inc. | 1,200 | 100,344 | ||||||
Cinemark Holdings, Inc.* | 126 | 1,957 | ||||||
Electronic Arts, Inc. | 443 | 63,774 | ||||||
Live Nation Entertainment, Inc.* | 224 | 17,671 | ||||||
Marcus Corp. (The)* | 15 | 241 | ||||||
Netflix, Inc.* | 687 | 355,571 | ||||||
Take-Two Interactive Software, Inc.* | 178 | 30,869 | ||||||
Walt Disney Co. (The)* | 2,803 | 493,384 | ||||||
World Wrestling Entertainment, Inc. (Class A Stock) | 65 | 3,210 | ||||||
|
| |||||||
1,067,021 | ||||||||
Equity Real Estate Investment Trusts (REITs) 3.0% | ||||||||
Acadia Realty Trust | 95 | 2,033 | ||||||
Agree Realty Corp. | 101 | 7,590 | ||||||
Alexander & Baldwin, Inc. | 63 | 1,261 | ||||||
Alexandria Real Estate Equities, Inc. | 212 | 42,684 | ||||||
American Assets Trust, Inc. | 54 | 1,994 | ||||||
American Campus Communities, Inc. | 216 | 10,867 | ||||||
American Tower Corp. | 701 | 198,243 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 123 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont’d.) | ||||||||
Apartment Income REIT Corp. | 241 | $ | 12,686 | |||||
Armada Hoffler Properties, Inc. | 27 | 351 | ||||||
AvalonBay Communities, Inc. | 218 | 49,667 | ||||||
Boston Properties, Inc. | 220 | 25,824 | ||||||
Brandywine Realty Trust | 231 | 3,225 | ||||||
Brixmor Property Group, Inc. | 426 | 9,807 | ||||||
Camden Property Trust | 152 | 22,707 | ||||||
CareTrust REIT, Inc. | 109 | 2,629 | ||||||
Centerspace | 30 | 2,700 | ||||||
Chatham Lodging Trust* | 19 | 233 | ||||||
Community Healthcare Trust, Inc. | 21 | 1,046 | ||||||
CoreSite Realty Corp. | 70 | 9,675 | ||||||
Corporate Office Properties Trust | 150 | 4,416 | ||||||
Cousins Properties, Inc. | 228 | 9,056 | ||||||
Crown Castle International Corp. | 670 | 129,370 | ||||||
CyrusOne, Inc. | 186 | 13,256 | ||||||
DiamondRock Hospitality Co.* | 204 | 1,756 | ||||||
Digital Realty Trust, Inc. | 438 | 67,522 | ||||||
Diversified Healthcare Trust | 239 | 932 | ||||||
Douglas Emmett, Inc. | 255 | 8,517 | ||||||
Duke Realty Corp. | 580 | 29,510 | ||||||
Easterly Government Properties, Inc. | 120 | 2,724 | ||||||
EastGroup Properties, Inc. | 61 | 10,749 | ||||||
EPR Properties | 111 | 5,583 | ||||||
Equinix, Inc. | 138 | 113,217 | ||||||
Equity Residential | 534 | 44,925 | ||||||
Essential Properties Realty Trust, Inc. | 180 | 5,364 | ||||||
Essex Property Trust, Inc. | 100 | 32,810 | ||||||
Extra Space Storage, Inc. | 206 | 35,873 | ||||||
Federal Realty Investment Trust | 111 | 13,046 | ||||||
First Industrial Realty Trust, Inc. | 208 | 11,394 | ||||||
Four Corners Property Trust, Inc. | 116 | 3,330 | ||||||
Franklin Street Properties Corp. | 131 | 684 | ||||||
GEO Group, Inc. (The) | 120 | 830 | ||||||
Getty Realty Corp. | 42 | 1,327 | ||||||
Global Net Lease, Inc. | 92 | 1,699 | ||||||
Healthcare Realty Trust, Inc. | 212 | 6,759 | ||||||
Healthpeak Properties, Inc. | 830 | 30,685 | ||||||
Hersha Hospitality Trust* | 15 | 141 | ||||||
Highwoods Properties, Inc. | 170 | 8,107 | ||||||
Host Hotels & Resorts, Inc.* | 1,024 | 16,312 | ||||||
Hudson Pacific Properties, Inc. | 199 | 5,425 |
See Notes to Financial Statements.
124 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont’d.) | ||||||||
Independence Realty Trust, Inc. | 113 | $ | 2,179 | |||||
Industrial Logistics Properties Trust | 77 | 2,087 | ||||||
Innovative Industrial Properties, Inc. | 41 | 8,815 | ||||||
Iron Mountain, Inc. | 446 | 19,517 | ||||||
iStar, Inc. | 93 | 2,253 | ||||||
JBG SMITH Properties | 154 | 5,025 | ||||||
Kilroy Realty Corp. | 170 | 11,776 | ||||||
Kimco Realty Corp. | 618 | 13,182 | ||||||
Kite Realty Group Trust | 81 | 1,633 | ||||||
Lamar Advertising Co. (Class A Stock) | 134 | 14,284 | ||||||
Lexington Realty Trust | 417 | 5,484 | ||||||
Life Storage, Inc. | 122 | 14,318 | ||||||
LTC Properties, Inc. | 46 | 1,741 | ||||||
Macerich Co. (The) | 214 | 3,488 | ||||||
Mack-Cali Realty Corp.* | 100 | 1,800 | ||||||
Medical Properties Trust, Inc. | 904 | 19,011 | ||||||
Mid-America Apartment Communities, Inc. | 176 | 33,986 | ||||||
National Retail Properties, Inc. | 264 | 12,902 | ||||||
National Storage Affiliates Trust | 118 | 6,392 | ||||||
NexPoint Residential Trust, Inc. | 31 | 1,827 | ||||||
Office Properties Income Trust | 49 | 1,420 | ||||||
Omega Healthcare Investors, Inc. | 360 | 13,061 | ||||||
Park Hotels & Resorts, Inc.* | 315 | 5,828 | ||||||
Pebblebrook Hotel Trust | 163 | 3,666 | ||||||
Physicians Realty Trust | 324 | 6,140 | ||||||
PotlatchDeltic Corp. | 98 | 5,090 | ||||||
Prologis, Inc. | 1,145 | 146,606 | ||||||
PS Business Parks, Inc. | 33 | 5,071 | ||||||
Public Storage | 235 | 73,433 | ||||||
Rayonier, Inc. | 208 | 7,844 | ||||||
Realty Income Corp. | 577 | 40,557 | ||||||
Regency Centers Corp. | 246 | 16,091 | ||||||
Retail Opportunity Investments Corp. | 133 | 2,350 | ||||||
Retail Properties of America, Inc. (Class A Stock) | 270 | 3,405 | ||||||
Rexford Industrial Realty, Inc. | 208 | 12,796 | ||||||
RPT Realty | 62 | 790 | ||||||
Sabra Health Care REIT, Inc. | 279 | 5,187 | ||||||
Safehold, Inc. | 31 | 2,800 | ||||||
Saul Centers, Inc. | 8 | 365 | ||||||
SBA Communications Corp. | 171 | 58,309 | ||||||
Service Properties Trust | 190 | 2,115 | ||||||
Simon Property Group, Inc. | 506 | 64,019 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 125 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont’d.) | ||||||||
SITE Centers Corp. | 223 | $ | 3,537 | |||||
SL Green Realty Corp. | 108 | 8,042 | ||||||
Spirit Realty Capital, Inc. | 175 | 8,788 | ||||||
STORE Capital Corp. | 375 | 13,571 | ||||||
Summit Hotel Properties, Inc.* | 73 | 658 | ||||||
Tanger Factory Outlet Centers, Inc. | 115 | 1,975 | ||||||
UDR, Inc. | 457 | 25,130 | ||||||
Uniti Group, Inc. | 309 | 3,618 | ||||||
Universal Health Realty Income Trust | 20 | 1,195 | ||||||
Urban Edge Properties | 131 | 2,489 | ||||||
Urstadt Biddle Properties, Inc. (Class A Stock) | 15 | 286 | ||||||
Ventas, Inc. | 577 | 34,493 | ||||||
Vornado Realty Trust | 240 | 10,440 | ||||||
Washington Real Estate Investment Trust | 100 | 2,429 | ||||||
Weingarten Realty Investors | 158 | 5,086 | ||||||
Welltower, Inc. | 643 | 55,851 | ||||||
Weyerhaeuser Co. | 1,153 | 38,891 | ||||||
Whitestone REIT | 23 | 204 | ||||||
Xenia Hotels & Resorts, Inc.* | 125 | 2,210 | ||||||
|
| |||||||
1,898,077 | ||||||||
Food & Staples Retailing 1.2% | ||||||||
Andersons, Inc. (The) | 25 | 667 | ||||||
BJ’s Wholesale Club Holdings, Inc.* | 216 | 10,938 | ||||||
Casey’s General Stores, Inc. | 62 | 12,258 | ||||||
Chefs’ Warehouse, Inc. (The)* | 23 | 665 | ||||||
Costco Wholesale Corp. | 683 | 293,499 | ||||||
Grocery Outlet Holding Corp.* | 109 | 3,610 | ||||||
Kroger Co. (The) | 1,167 | 47,497 | ||||||
PriceSmart, Inc. | 46 | 4,128 | ||||||
SpartanNash Co. | 15 | 292 | ||||||
Sprouts Farmers Market, Inc.* | 145 | 3,564 | ||||||
Sysco Corp. | 788 | 58,470 | ||||||
United Natural Foods, Inc.* | 63 | 2,087 | ||||||
Walgreens Boots Alliance, Inc. | 1,107 | 52,195 | ||||||
Walmart, Inc. | 2,116 | 301,636 | ||||||
|
| |||||||
791,506 | ||||||||
Food Products 0.9% | ||||||||
Archer-Daniels-Midland Co. | 861 | 51,419 |
See Notes to Financial Statements.
126 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Food Products (cont’d.) | ||||||||
B&G Foods, Inc. | 70 | $ | 2,010 | |||||
Calavo Growers, Inc. | 23 | 1,296 | ||||||
Cal-Maine Foods, Inc. | 41 | 1,430 | ||||||
Campbell Soup Co. | 312 | 13,641 | ||||||
Conagra Brands, Inc. | 737 | 24,682 | ||||||
Darling Ingredients, Inc.* | 250 | 17,268 | ||||||
Flowers Foods, Inc. | 293 | 6,903 | ||||||
Fresh Del Monte Produce, Inc. | 39 | 1,204 | ||||||
General Mills, Inc. | 941 | 55,387 | ||||||
Hain Celestial Group, Inc. (The)* | 123 | 4,909 | ||||||
Hershey Co. (The) | 226 | 40,427 | ||||||
Hormel Foods Corp. | 433 | 20,083 | ||||||
Ingredion, Inc. | 99 | 8,693 | ||||||
J & J Snack Foods Corp. | 26 | 4,274 | ||||||
J.M. Smucker Co. (The) | 169 | 22,158 | ||||||
John B. Sanfilippo & Son, Inc. | 23 | 2,124 | ||||||
Kellogg Co. | 389 | 24,647 | ||||||
Kraft Heinz Co. (The) | 1,001 | 38,508 | ||||||
Lamb Weston Holdings, Inc. | 227 | 15,157 | ||||||
Lancaster Colony Corp. | 35 | 6,925 | ||||||
McCormick & Co., Inc. | 387 | 32,574 | ||||||
Mondelez International, Inc. (Class A Stock) | 2,166 | 137,021 | ||||||
Pilgrim’s Pride Corp.* | 62 | 1,373 | ||||||
Post Holdings, Inc.* | 93 | 9,518 | ||||||
Sanderson Farms, Inc. | 32 | 5,979 | ||||||
Seneca Foods Corp. (Class A Stock)* | 12 | 657 | ||||||
Simply Good Foods Co. (The)* | 109 | 4,085 | ||||||
Tootsie Roll Industries, Inc. | 15 | 516 | ||||||
TreeHouse Foods, Inc.* | 74 | 3,286 | ||||||
Tyson Foods, Inc. (Class A Stock) | 453 | 32,371 | ||||||
|
| |||||||
590,525 | ||||||||
Gas Utilities 0.1% | ||||||||
Atmos Energy Corp. | 203 | 20,014 | ||||||
Chesapeake Utilities Corp. | 29 | 3,613 | ||||||
National Fuel Gas Co. | 139 | 7,149 | ||||||
New Jersey Resources Corp. | 137 | 5,277 | ||||||
Northwest Natural Holding Co. | 43 | 2,248 | ||||||
ONE Gas, Inc. | 82 | 6,050 | ||||||
South Jersey Industries, Inc. | 162 | 4,078 | ||||||
Southwest Gas Holdings, Inc. | 97 | 6,783 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 127 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Gas Utilities (cont’d.) | ||||||||
Spire, Inc. | 74 | $ | 5,250 | |||||
UGI Corp. | 314 | 14,441 | ||||||
|
| |||||||
74,903 | ||||||||
Health Care Equipment & Supplies 3.7% | ||||||||
Abbott Laboratories | 2,739 | 331,364 | ||||||
ABIOMED, Inc.* | 74 | 24,208 | ||||||
Align Technology, Inc.* | 115 | 80,017 | ||||||
AngioDynamics, Inc.* | 23 | 613 | ||||||
Avanos Medical, Inc.* | 62 | 2,352 | ||||||
Baxter International, Inc. | 776 | 60,024 | ||||||
Becton, Dickinson & Co. | 450 | 115,088 | ||||||
Boston Scientific Corp.* | 2,189 | 99,818 | ||||||
Cardiovascular Systems, Inc.* | 69 | 2,780 | ||||||
CONMED Corp. | 44 | 6,069 | ||||||
Cooper Cos., Inc. (The) | 80 | 33,742 | ||||||
CryoLife, Inc.* | 23 | 621 | ||||||
Cutera, Inc.* | 33 | 1,714 | ||||||
Danaher Corp. | 980 | 291,540 | ||||||
DENTSPLY SIRONA, Inc. | 338 | 22,322 | ||||||
Dexcom, Inc.* | 152 | 78,358 | ||||||
Edwards Lifesciences Corp.* | 960 | 107,779 | ||||||
Envista Holdings Corp.* | 245 | 10,555 | ||||||
Glaukos Corp.* | 70 | 3,570 | ||||||
Globus Medical, Inc. (Class A Stock)* | 125 | 10,396 | ||||||
Haemonetics Corp.* | 85 | 5,167 | ||||||
Heska Corp.* | 21 | 5,055 | ||||||
Hill-Rom Holdings, Inc. | 106 | 14,677 | ||||||
Hologic, Inc.* | 395 | 29,641 | ||||||
ICU Medical, Inc.* | 29 | 5,895 | ||||||
IDEXX Laboratories, Inc.* | 135 | 91,602 | ||||||
Inogen, Inc.* | 25 | 1,994 | ||||||
Integer Holdings Corp.* | 47 | 4,601 | ||||||
Integra LifeSciences Holdings Corp.* | 105 | 7,601 | ||||||
Intuitive Surgical, Inc.* | 186 | 184,412 | ||||||
Invacare Corp.* | 31 | 224 | ||||||
Lantheus Holdings, Inc.* | 68 | 1,780 | ||||||
LeMaitre Vascular, Inc. | 33 | 1,797 | ||||||
LivaNova PLC* | 74 | 6,386 | ||||||
Masimo Corp.* | 80 | 21,791 | ||||||
Medtronic PLC | 2,073 | 272,206 |
See Notes to Financial Statements.
128 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Equipment & Supplies (cont’d.) | ||||||||
Meridian Bioscience, Inc.* | 34 | $ | 697 | |||||
Merit Medical Systems, Inc.* | 69 | 4,836 | ||||||
Mesa Laboratories, Inc. | 8 | 2,356 | ||||||
Natus Medical, Inc.* | 31 | 828 | ||||||
Neogen Corp.* | 149 | 6,490 | ||||||
NuVasive, Inc.* | 74 | 4,732 | ||||||
OraSure Technologies, Inc.* | 104 | 1,226 | ||||||
Orthofix Medical, Inc.* | 23 | 914 | ||||||
Penumbra, Inc.* | 58 | 15,441 | ||||||
Quidel Corp.* | 59 | 8,347 | ||||||
ResMed, Inc. | 224 | 60,883 | ||||||
STAAR Surgical Co.* | 75 | 9,594 | ||||||
STERIS PLC | 152 | 33,128 | ||||||
Stryker Corp. | 507 | 137,367 | ||||||
Surmodics, Inc.* | 15 | 827 | ||||||
Tactile Systems Technology, Inc.* | 32 | 1,567 | ||||||
Teleflex, Inc. | 74 | 29,410 | ||||||
Varex Imaging Corp.* | 30 | 819 | ||||||
West Pharmaceutical Services, Inc. | 117 | 48,172 | ||||||
Zimmer Biomet Holdings, Inc. | 325 | 53,112 | ||||||
Zynex, Inc.* | 15 | 208 | ||||||
|
| |||||||
2,358,713 | ||||||||
Health Care Providers & Services 2.6% | ||||||||
Acadia Healthcare Co., Inc.* | 143 | 8,826 | ||||||
Addus HomeCare Corp.* | 29 | 2,517 | ||||||
Amedisys, Inc.* | 59 | 15,377 | ||||||
AmerisourceBergen Corp. | 229 | 27,977 | ||||||
AMN Healthcare Services, Inc.* | 70 | 7,039 | ||||||
Anthem, Inc. | 377 | 144,772 | ||||||
Apollo Medical Holdings, Inc.* | 20 | 1,767 | ||||||
Cardinal Health, Inc. | 446 | 26,483 | ||||||
Centene Corp.* | 898 | 61,612 | ||||||
Chemed Corp. | 29 | 13,805 | ||||||
Cigna Corp. | 532 | 122,089 | ||||||
Community Health Systems, Inc.* | 177 | 2,358 | ||||||
CorVel Corp.* | 19 | 2,676 | ||||||
Covetrus, Inc.* | 116 | 2,953 | ||||||
Cross Country Healthcare, Inc.* | 23 | 378 | ||||||
CVS Health Corp. | 2,034 | 167,520 | ||||||
DaVita, Inc.* | 108 | 12,987 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 129 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Providers & Services (cont’d.) | ||||||||
Encompass Health Corp. | 155 | $ | 12,904 | |||||
Ensign Group, Inc. (The) | 78 | 6,635 | ||||||
Fulgent Genetics, Inc.* | 24 | 2,214 | ||||||
Hanger, Inc.* | 46 | 1,129 | ||||||
HCA Healthcare, Inc. | 407 | 101,017 | ||||||
HealthEquity, Inc.* | 131 | 9,691 | ||||||
Henry Schein, Inc.* | 218 | 17,473 | ||||||
Humana, Inc. | 200 | 85,172 | ||||||
Joint Corp. (The)* | 20 | 1,580 | ||||||
Laboratory Corp. of America Holdings* | 151 | 44,719 | ||||||
LHC Group, Inc.* | 53 | 11,404 | ||||||
Magellan Health, Inc.* | 34 | 3,207 | ||||||
McKesson Corp. | 246 | 50,142 | ||||||
MEDNAX, Inc.* | 105 | 3,058 | ||||||
ModivCare, Inc.* | 20 | 3,400 | ||||||
Molina Healthcare, Inc.* | 90 | 24,571 | ||||||
Owens & Minor, Inc. | 108 | 4,995 | ||||||
Patterson Cos., Inc. | 106 | 3,300 | ||||||
Pennant Group, Inc. (The)* | 29 | 992 | ||||||
Progyny, Inc.* | 62 | 3,453 | ||||||
Quest Diagnostics, Inc. | 205 | 29,069 | ||||||
R1 RCM, Inc.* | 197 | 4,218 | ||||||
RadNet, Inc.* | 46 | 1,690 | ||||||
Select Medical Holdings Corp. | 170 | 6,706 | ||||||
Tenet Healthcare Corp.* | 165 | 11,854 | ||||||
Tivity Health, Inc.* | 43 | 1,078 | ||||||
UnitedHealth Group, Inc. | 1,456 | 600,192 | ||||||
Universal Health Services, Inc. (Class B Stock) | 124 | 19,891 | ||||||
US Physical Therapy, Inc. | 21 | 2,481 | ||||||
|
| |||||||
1,689,371 | ||||||||
Health Care Technology 0.1% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 171 | 2,921 | ||||||
Cerner Corp. | 465 | 37,381 | ||||||
Computer Programs & Systems, Inc. | 15 | 474 | ||||||
HealthStream, Inc.* | 15 | 438 | ||||||
NextGen Healthcare, Inc.* | 85 | 1,379 | ||||||
Omnicell, Inc.* | 67 | 9,815 |
See Notes to Financial Statements.
130 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Technology (cont’d.) | ||||||||
Simulations Plus, Inc. | 23 | $ | 1,085 | |||||
Tabula Rasa HealthCare, Inc.* | 31 | 1,332 | ||||||
|
| |||||||
54,825 | ||||||||
Hotels, Restaurants & Leisure 2.0% | ||||||||
BJ’s Restaurants, Inc.* | 21 | 852 | ||||||
Bloomin’ Brands, Inc.* | 100 | 2,513 | ||||||
Booking Holdings, Inc.* | 64 | 139,409 | ||||||
Boyd Gaming Corp.* | 125 | 7,125 | ||||||
Brinker International, Inc.* | 65 | 3,532 | ||||||
Caesars Entertainment, Inc.* | 325 | 28,392 | ||||||
Carnival Corp.* | 1,227 | 26,565 | ||||||
Cheesecake Factory, Inc. (The)* | 80 | 3,621 | ||||||
Chipotle Mexican Grill, Inc.* | 44 | 81,991 | ||||||
Choice Hotels International, Inc. | 44 | 5,276 | ||||||
Churchill Downs, Inc. | 59 | 10,962 | ||||||
Chuy’s Holdings, Inc.* | 15 | 495 | ||||||
Cracker Barrel Old Country Store, Inc. | 38 | 5,175 | ||||||
Darden Restaurants, Inc. | 204 | 29,759 | ||||||
Dave & Buster’s Entertainment, Inc.* | 77 | 2,563 | ||||||
Dine Brands Global, Inc.* | 23 | 1,782 | ||||||
Domino’s Pizza, Inc. | 63 | 33,106 | ||||||
El Pollo Loco Holdings, Inc.* | 24 | 447 | ||||||
Expedia Group, Inc.* | 222 | 35,713 | ||||||
Fiesta Restaurant Group, Inc.* | 23 | 308 | ||||||
Hilton Worldwide Holdings, Inc.* | 433 | 56,918 | ||||||
Jack in the Box, Inc. | 39 | 4,246 | ||||||
Las Vegas Sands Corp.* | 508 | 21,514 | ||||||
Marriott International, Inc. (Class A Stock)* | 411 | 59,998 | ||||||
Marriott Vacations Worldwide Corp.* | 64 | 9,432 | ||||||
McDonald’s Corp. | 1,151 | 279,359 | ||||||
MGM Resorts International | 628 | 23,569 | ||||||
Monarch Casino & Resort, Inc.* | 15 | 958 | ||||||
Norwegian Cruise Line Holdings Ltd.* | 566 | 13,601 | ||||||
Papa John’s International, Inc. | 49 | 5,592 | ||||||
Penn National Gaming, Inc.* | 230 | 15,727 | ||||||
Red Robin Gourmet Burgers, Inc.* | 8 | 210 | ||||||
Royal Caribbean Cruises Ltd.* | 340 | 26,136 | ||||||
Ruth’s Hospitality Group, Inc.* | 23 | 459 | ||||||
Scientific Games Corp.* | 85 | 5,245 | ||||||
Shake Shack, Inc. (Class A Stock)* | 60 | 6,032 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 131 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure (cont’d.) | ||||||||
Six Flags Entertainment Corp.* | 106 | $ | 4,404 | |||||
Starbucks Corp. | 1,815 | 220,395 | ||||||
Texas Roadhouse, Inc. | 101 | 9,309 | ||||||
Travel + Leisure Co. | 127 | 6,579 | ||||||
Wendy’s Co. (The) | 262 | 6,081 | ||||||
Wingstop, Inc. | 52 | 8,908 | ||||||
Wyndham Hotels & Resorts, Inc. | 139 | 10,016 | ||||||
Wynn Resorts Ltd.* | 164 | 16,126 | ||||||
Yum! Brands, Inc. | 460 | 60,439 | ||||||
|
| |||||||
1,290,839 | ||||||||
Household Durables 0.5% | ||||||||
Cavco Industries, Inc.* | 19 | 4,465 | ||||||
Century Communities, Inc. | 54 | 3,750 | ||||||
D.R. Horton, Inc. | 505 | 48,192 | ||||||
Ethan Allen Interiors, Inc. | 15 | 357 | ||||||
Garmin Ltd. | 232 | 36,470 | ||||||
Helen of Troy Ltd.* | 46 | 10,276 | ||||||
Installed Building Products, Inc. | 37 | 4,440 | ||||||
iRobot Corp.* | 50 | 4,375 | ||||||
KB Home | 122 | 5,178 | ||||||
La-Z-Boy, Inc. | 62 | 2,082 | ||||||
Leggett & Platt, Inc. | 206 | 9,894 | ||||||
Lennar Corp. (Class A Stock) | 427 | 44,899 | ||||||
LGI Homes, Inc.* | 40 | 6,836 | ||||||
M/I Homes, Inc.* | 39 | 2,524 | ||||||
MDC Holdings, Inc. | 77 | 4,106 | ||||||
Meritage Homes Corp.* | 54 | 5,863 | ||||||
Mohawk Industries, Inc.* | 91 | 17,736 | ||||||
Newell Brands, Inc. | 574 | 14,206 | ||||||
NVR, Inc.* | 6 | 31,336 | ||||||
PulteGroup, Inc. | 407 | 22,332 | ||||||
Taylor Morrison Home Corp.* | 161 | 4,318 | ||||||
Tempur Sealy International, Inc. | 284 | 12,289 | ||||||
Toll Brothers, Inc. | 165 | 9,779 | ||||||
TopBuild Corp.* | 56 | 11,351 | ||||||
Tri Pointe Homes, Inc.* | 144 | 3,473 | ||||||
Tupperware Brands Corp.* | 62 | 1,295 |
See Notes to Financial Statements.
132 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Household Durables (cont’d.) | ||||||||
Universal Electronics, Inc.* | 23 | $ | 1,075 | |||||
Whirlpool Corp. | 105 | | 23,262 | | ||||
|
| |||||||
346,159 | ||||||||
Household Products 1.2% | ||||||||
Central Garden & Pet Co.* | 15 | 724 | ||||||
Central Garden & Pet Co. (Class A Stock)* | 68 | 2,945 | ||||||
Church & Dwight Co., Inc. | 379 | 32,814 | ||||||
Clorox Co. (The) | 193 | 34,912 | ||||||
Colgate-Palmolive Co. | 1,307 | 103,907 | ||||||
Energizer Holdings, Inc. | 80 | 3,428 | ||||||
Kimberly-Clark Corp. | 520 | 70,574 | ||||||
Procter & Gamble Co. (The) | 3,775 | 536,918 | ||||||
WD-40 Co. | 25 | 6,075 | ||||||
|
| |||||||
792,297 | ||||||||
Independent Power & Renewable Electricity Producers 0.0% | ||||||||
AES Corp. (The) | 1,023 | 24,245 | ||||||
Industrial Conglomerates 1.1% | ||||||||
3M Co. | 894 | 176,958 | ||||||
General Electric Co. | 13,459 | 174,294 | ||||||
Honeywell International, Inc. | 1,075 | 251,324 | ||||||
Raven Industries, Inc.* | 59 | 3,437 | ||||||
Roper Technologies, Inc. | 163 | 80,089 | ||||||
|
| |||||||
686,102 | ||||||||
Insurance 1.9% | ||||||||
Aflac, Inc. | 973 | 53,515 | ||||||
Alleghany Corp.* | 25 | 16,578 | ||||||
Allstate Corp. (The) | 464 | 60,343 | ||||||
Ambac Financial Group, Inc.* | 42 | 610 | ||||||
American Equity Investment Life Holding Co. | 104 | 3,337 | ||||||
American Financial Group, Inc. | 107 | 13,534 | ||||||
American International Group, Inc. | 1,325 | 62,739 | ||||||
AMERISAFE, Inc. | 26 | 1,487 | ||||||
Aon PLC (Class A Stock) | 350 | 91,011 | ||||||
Arthur J. Gallagher & Co. | 317 | 44,161 | ||||||
Assurant, Inc. | 95 | 14,992 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 133 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insurance (cont’d.) | ||||||||
Assured Guaranty Ltd. | 106 | $ | 5,068 | |||||
Brighthouse Financial, Inc.* | 139 | 5,985 | ||||||
Brown & Brown, Inc. | 361 | 19,638 | ||||||
Chubb Ltd. | 693 | 116,937 | ||||||
Cincinnati Financial Corp. | 233 | 27,466 | ||||||
CNO Financial Group, Inc. | 179 | 4,088 | ||||||
eHealth, Inc.* | 46 | 2,392 | ||||||
Employers Holdings, Inc. | 28 | 1,163 | ||||||
Everest Re Group Ltd. | 66 | 16,687 | ||||||
First American Financial Corp. | 165 | 11,106 | ||||||
Genworth Financial, Inc. (Class A Stock)* | 617 | 2,061 | ||||||
Globe Life, Inc. | 147 | 13,687 | ||||||
Hanover Insurance Group, Inc. (The) | 58 | 7,882 | ||||||
Hartford Financial Services Group, Inc. (The) | 550 | 34,991 | ||||||
HCI Group, Inc. | 11 | 1,105 | ||||||
Horace Mann Educators Corp. | 47 | 1,871 | ||||||
James River Group Holdings Ltd. | 38 | 1,382 | ||||||
Kemper Corp. | 101 | 6,667 | ||||||
Kinsale Capital Group, Inc. | 39 | 6,967 | ||||||
Lincoln National Corp. | 278 | 17,130 | ||||||
Loews Corp. | 347 | 18,610 | ||||||
Marsh & McLennan Cos., Inc. | 785 | 115,568 | ||||||
Mercury General Corp. | 34 | 2,068 | ||||||
MetLife, Inc. | 1,148 | 66,240 | ||||||
Old Republic International Corp. | 429 | 10,579 | ||||||
Palomar Holdings, Inc.* | 39 | 3,176 | ||||||
Primerica, Inc. | 59 | 8,627 | ||||||
Principal Financial Group, Inc. | 392 | 24,355 | ||||||
ProAssurance Corp. | 69 | 1,399 | ||||||
Progressive Corp. (The) | 906 | 86,215 | ||||||
Prudential Financial, Inc.(g) | 611 | 61,271 | ||||||
Reinsurance Group of America, Inc. | 105 | 11,569 | ||||||
RenaissanceRe Holdings Ltd. (Bermuda) | 84 | 12,826 | ||||||
RLI Corp. | 62 | 6,720 | ||||||
Safety Insurance Group, Inc. | 22 | 1,686 | ||||||
Selective Insurance Group, Inc. | 100 | 8,135 | ||||||
Selectquote, Inc.* | 10 | 178 | ||||||
SiriusPoint Ltd. (Bermuda)* | 69 | 676 | ||||||
Stewart Information Services Corp. | 49 | 2,891 | ||||||
Travelers Cos., Inc. (The) | 391 | 58,228 | ||||||
Trupanion, Inc.* | 52 | 5,981 | ||||||
United Fire Group, Inc. | 27 | 673 |
See Notes to Financial Statements.
134 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insurance (cont’d.) | ||||||||
United Insurance Holdings Corp. | 23 | $ | 101 | |||||
Universal Insurance Holdings, Inc. | 39 | 552 | ||||||
Unum Group | 312 | 8,549 | ||||||
W.R. Berkley Corp. | 216 | 15,805 | ||||||
Willis Towers Watson PLC | 201 | 41,422 | ||||||
|
| |||||||
1,240,680 | ||||||||
Interactive Media & Services 6.0% | ||||||||
Alphabet, Inc. (Class A Stock)* | 464 | 1,250,262 | ||||||
Alphabet, Inc. (Class C Stock)* | 439 | 1,187,241 | ||||||
Facebook, Inc. (Class A Stock)* | 3,696 | 1,316,885 | ||||||
QuinStreet, Inc.* | 54 | 990 | ||||||
TripAdvisor, Inc.* | 154 | 5,844 | ||||||
Twitter, Inc.* | 1,232 | 85,932 | ||||||
Yelp, Inc.* | 93 | 3,478 | ||||||
|
| |||||||
3,850,632 | ||||||||
Internet & Direct Marketing Retail 3.6% | ||||||||
Amazon.com, Inc.* | 661 | 2,199,537 | ||||||
eBay, Inc. | 1,001 | 68,278 | ||||||
Etsy, Inc.* | 196 | 35,968 | ||||||
Liquidity Services, Inc.* | 39 | 774 | ||||||
PetMed Express, Inc. | 15 | 471 | ||||||
Shutterstock, Inc. | 39 | 4,231 | ||||||
Stamps.com, Inc.* | 28 | 9,149 | ||||||
|
| |||||||
2,318,408 | ||||||||
IT Services 4.8% | ||||||||
Accenture PLC (Class A Stock) | 981 | 311,644 | ||||||
Akamai Technologies, Inc.* | 253 | 30,340 | ||||||
Alliance Data Systems Corp. | 79 | 7,367 | ||||||
Automatic Data Processing, Inc. | 659 | 138,146 | ||||||
BM Technologies, Inc.* | 3 | 30 | ||||||
Broadridge Financial Solutions, Inc. | 179 | 31,055 | ||||||
Cognizant Technology Solutions Corp. (Class A Stock) | 815 | 59,927 | ||||||
Concentrix Corp.* | 70 | 11,461 | ||||||
CSG Systems International, Inc. | 39 | 1,769 | ||||||
DXC Technology Co.* | 391 | 15,632 | ||||||
EVERTEC, Inc. (Puerto Rico) | 82 | 3,583 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 135 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
IT Services (cont’d.) | ||||||||
ExlService Holdings, Inc.* | 55 | $ | 6,227 | |||||
Fidelity National Information Services, Inc. | 960 | 143,088 | ||||||
Fiserv, Inc.* | 919 | 105,786 | ||||||
FleetCor Technologies, Inc.* | 131 | 33,827 | ||||||
Gartner, Inc.* | 134 | 35,474 | ||||||
Genpact Ltd. | 270 | 13,449 | ||||||
Global Payments, Inc. | 458 | 88,582 | ||||||
International Business Machines Corp. | 1,381 | 194,666 | ||||||
Jack Henry & Associates, Inc. | 116 | 20,194 | ||||||
LiveRamp Holdings, Inc.* | 108 | 4,321 | ||||||
Mastercard, Inc. (Class A Stock) | 1,349 | 520,633 | ||||||
Maximus, Inc. | 93 | 8,277 | ||||||
Paychex, Inc. | 498 | 56,682 | ||||||
PayPal Holdings, Inc.* | 1,813 | 499,536 | ||||||
Perficient, Inc.* | 51 | 4,809 | ||||||
Sabre Corp.* | 490 | 5,777 | ||||||
Sykes Enterprises, Inc.* | 62 | 3,327 | ||||||
TTEC Holdings, Inc. | 31 | 3,239 | ||||||
Unisys Corp.* | 100 | 2,235 | ||||||
VeriSign, Inc.* | 156 | 33,754 | ||||||
Visa, Inc. (Class A Stock)(a) | 2,609 | 642,832 | ||||||
Western Union Co. (The) | 619 | 14,367 | ||||||
WEX, Inc.* | 69 | 13,091 | ||||||
|
| |||||||
| 3,065,127 | | ||||||
Leisure Products 0.1% | ||||||||
Brunswick Corp. | 116 | 12,110 | ||||||
Callaway Golf Co.* | 152 | 4,815 | ||||||
Hasbro, Inc. | 199 | 19,789 | ||||||
Mattel, Inc.* | 493 | 10,708 | ||||||
Polaris, Inc. | 92 | 12,059 | ||||||
Sturm Ruger & Co., Inc. | 26 | 1,933 | ||||||
Vista Outdoor, Inc.* | 84 | 3,393 | ||||||
YETI Holdings, Inc.* | 116 | 11,174 | ||||||
|
| |||||||
75,981 | ||||||||
Life Sciences Tools & Services 1.3% | ||||||||
Agilent Technologies, Inc. | 469 | 71,865 | ||||||
Bio-Rad Laboratories, Inc. (Class A Stock)* | 34 | 25,143 | ||||||
Bio-Techne Corp. | 62 | 29,899 |
See Notes to Financial Statements.
136 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Life Sciences Tools & Services (cont’d.) | ||||||||
Charles River Laboratories International, Inc.* | 80 | $ | 32,554 | |||||
Illumina, Inc.* | 228 | 113,031 | ||||||
IQVIA Holdings, Inc.* | 298 | 73,815 | ||||||
Medpace Holdings, Inc.* | 46 | 8,093 | ||||||
Mettler-Toledo International, Inc.* | 36 | 53,053 | ||||||
NeoGenomics, Inc.* | 177 | 8,160 | ||||||
PerkinElmer, Inc. | 174 | 31,708 | ||||||
Repligen Corp.* | 80 | 19,656 | ||||||
Syneos Health, Inc.* | 159 | 14,257 | ||||||
Thermo Fisher Scientific, Inc. | 610 | 329,406 | ||||||
Waters Corp.* | 95 | 37,032 | ||||||
|
| |||||||
847,672 | ||||||||
Machinery 1.9% | ||||||||
AGCO Corp. | 98 | 12,947 | ||||||
Alamo Group, Inc. | 19 | 2,789 | ||||||
Albany International Corp. (Class A Stock) | 46 | 3,972 | ||||||
Astec Industries, Inc. | 39 | 2,391 | ||||||
Barnes Group, Inc. | 69 | 3,496 | ||||||
Caterpillar, Inc. | 848 | 175,324 | ||||||
Chart Industries, Inc.* | 58 | 9,016 | ||||||
CIRCOR International, Inc.* | 35 | 1,079 | ||||||
Colfax Corp.* | 177 | 8,121 | ||||||
Crane Co. | 73 | 7,098 | ||||||
Cummins, Inc. | 227 | 52,687 | ||||||
Deere & Co. | 483 | 174,648 | ||||||
Donaldson Co., Inc. | 196 | 12,973 | ||||||
Dover Corp. | 223 | 37,268 | ||||||
Enerpac Tool Group Corp. | 60 | 1,540 | ||||||
EnPro Industries, Inc. | 31 | 2,887 | ||||||
ESCO Technologies, Inc. | 46 | 4,341 | ||||||
Federal Signal Corp. | 78 | 3,090 | ||||||
Flowserve Corp. | 208 | 8,755 | ||||||
Fortive Corp. | 524 | 38,074 | ||||||
Franklin Electric Co., Inc. | 57 | 4,660 | ||||||
Graco, Inc. | 260 | 20,301 | ||||||
Greenbrier Cos., Inc. (The) | 37 | 1,584 | ||||||
Hillenbrand, Inc. | 102 | 4,621 | ||||||
IDEX Corp. | 118 | 26,749 | ||||||
Illinois Tool Works, Inc. | 445 | 100,868 | ||||||
Ingersoll Rand, Inc.* | 575 | 28,100 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 137 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Machinery (cont’d.) | ||||||||
ITT, Inc. | 132 | $ | 12,924 | |||||
John Bean Technologies Corp. | 54 | 7,915 | ||||||
Kennametal, Inc. | 131 | 4,749 | ||||||
Lincoln Electric Holdings, Inc. | 93 | 12,967 | ||||||
Lindsay Corp. | 19 | 3,053 | ||||||
Lydall, Inc.* | 28 | 1,714 | ||||||
Meritor, Inc.* | 85 | 2,068 | ||||||
Middleby Corp. (The)* | 93 | 17,808 | ||||||
Mueller Industries, Inc. | 75 | 3,255 | ||||||
Nordson Corp. | 83 | 18,769 | ||||||
Oshkosh Corp. | 104 | 12,433 | ||||||
Otis Worldwide Corp. | 621 | 55,610 | ||||||
PACCAR, Inc. | 534 | 44,317 | ||||||
Parker-Hannifin Corp. | 199 | 62,094 | ||||||
Pentair PLC | 255 | 18,786 | ||||||
Proto Labs, Inc.* | 44 | 3,440 | ||||||
Snap-on, Inc. | 86 | 18,746 | ||||||
SPX Corp.* | 65 | 4,333 | ||||||
SPX FLOW, Inc. | 72 | 5,915 | ||||||
Standex International Corp. | 19 | 1,748 | ||||||
Stanley Black & Decker, Inc. | 253 | 49,854 | ||||||
Tennant Co. | 24 | 1,899 | ||||||
Terex Corp. | 116 | 5,559 | ||||||
Timken Co. (The) | 108 | 8,586 | ||||||
Titan International, Inc.* | 32 | 276 | ||||||
Toro Co. (The) | 165 | 18,767 | ||||||
Trinity Industries, Inc. | 108 | 2,928 | ||||||
Wabash National Corp. | 10 | 146 | ||||||
Watts Water Technologies, Inc. (Class A Stock) | 50 | 7,538 | ||||||
Westinghouse Air Brake Technologies Corp. | 276 | 23,424 | ||||||
Woodward, Inc. | 90 | 10,940 | ||||||
Xylem, Inc. | 279 | 35,112 | ||||||
|
| |||||||
1,227,052 | ||||||||
Marine 0.0% | ||||||||
Kirby Corp.* | 90 | 5,212 | ||||||
Matson, Inc. | 77 | 5,168 | ||||||
|
| |||||||
10,380 |
See Notes to Financial Statements.
138 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Media 1.2% | ||||||||
AMC Networks, Inc. (Class A Stock)* | 37 | $ | 1,851 | |||||
Cable One, Inc. | 10 | 18,880 | ||||||
Charter Communications, Inc. (Class A Stock)* | 216 | 160,715 | ||||||
Comcast Corp. (Class A Stock) | 7,064 | 415,575 | ||||||
Discovery, Inc. (Class A Stock)* | 235 | 6,817 | ||||||
Discovery, Inc. (Class C Stock)* | 461 | 12,498 | ||||||
DISH Network Corp. (Class A Stock)* | 381 | 15,960 | ||||||
EW Scripps Co. (The) (Class A Stock) | 38 | 725 | ||||||
Fox Corp. (Class A Stock) | 503 | 17,937 | ||||||
Fox Corp. (Class B Stock) | 225 | 7,479 | ||||||
Gannett Co., Inc.* | 81 | 467 | ||||||
Interpublic Group of Cos., Inc. (The) | 598 | 21,145 | ||||||
John Wiley & Sons, Inc. (Class A Stock) | 77 | 4,526 | ||||||
Meredith Corp.* | 46 | 2,007 | ||||||
New York Times Co. (The) (Class A Stock) | 214 | 9,369 | ||||||
News Corp. (Class A Stock) | 593 | 14,606 | ||||||
News Corp. (Class B Stock) | 148 | 3,480 | ||||||
Omnicom Group, Inc. | 335 | 24,395 | ||||||
Scholastic Corp. | 23 | 773 | ||||||
TechTarget, Inc.* | 31 | 2,266 | ||||||
TEGNA, Inc. | 339 | 6,007 | ||||||
ViacomCBS, Inc. (Class B Stock) | 933 | 38,188 | ||||||
|
| |||||||
785,666 | ||||||||
Metals & Mining 0.5% | ||||||||
Allegheny Technologies, Inc.* | 154 | 3,162 | ||||||
Arconic Corp.* | 130 | 4,672 | ||||||
Carpenter Technology Corp. | 62 | 2,365 | ||||||
Century Aluminum Co.* | 31 | 451 | ||||||
Cleveland-Cliffs, Inc.* | 707 | 17,675 | ||||||
Commercial Metals Co. | 177 | 5,806 | ||||||
Compass Minerals International, Inc. | 61 | 4,182 | ||||||
Freeport-McMoRan, Inc. | 2,258 | 86,030 | ||||||
Haynes International, Inc. | 12 | 453 | ||||||
Kaiser Aluminum Corp. | 25 | 3,042 | ||||||
Materion Corp. | 28 | 1,998 | ||||||
Newmont Corp. | 1,235 | 77,583 | ||||||
Nucor Corp. | 461 | 47,953 | ||||||
Olympic Steel, Inc. | 15 | 452 | ||||||
Reliance Steel & Aluminum Co. | 98 | 15,401 | ||||||
Royal Gold, Inc. | 101 | 12,273 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 139 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Metals & Mining (cont’d.) | ||||||||
Steel Dynamics, Inc. | 309 | $ | 19,915 | |||||
SunCoke Energy, Inc. | 31 | 240 | ||||||
TimkenSteel Corp.* | 23 | 307 | ||||||
United States Steel Corp. | 372 | 9,850 | ||||||
Warrior Met Coal, Inc. | 62 | 1,157 | ||||||
Worthington Industries, Inc. | 62 | 3,966 | ||||||
|
| |||||||
318,933 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) 0.0% | ||||||||
Apollo Commercial Real Estate Finance, Inc. | 177 | 2,694 | ||||||
ARMOUR Residential REIT, Inc. | 39 | 405 | ||||||
Capstead Mortgage Corp. | 31 | 197 | ||||||
Ellington Financial, Inc. | 65 | 1,182 | ||||||
Granite Point Mortgage Trust, Inc. | 46 | 649 | ||||||
Invesco Mortgage Capital, Inc. | 189 | 650 | ||||||
KKR Real Estate Finance Trust, Inc. | 31 | 661 | ||||||
New York Mortgage Trust, Inc. | 399 | 1,744 | ||||||
PennyMac Mortgage Investment Trust | 108 | 2,130 | ||||||
Ready Capital Corp. | 40 | 605 | ||||||
Redwood Trust, Inc. | 100 | 1,187 | ||||||
Two Harbors Investment Corp. | 460 | 2,948 | ||||||
|
| |||||||
15,052 | ||||||||
Multiline Retail 0.6% | ||||||||
Big Lots, Inc. | 46 | 2,650 | ||||||
Dollar General Corp. | 367 | 85,379 | ||||||
Dollar Tree, Inc.* | 360 | 35,924 | ||||||
Kohl’s Corp. | 240 | 12,192 | ||||||
Macy’s, Inc.* | 434 | 7,378 | ||||||
Nordstrom, Inc.* | 144 | 4,766 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.* | 85 | 7,914 | ||||||
Target Corp. | 764 | 199,442 | ||||||
|
| |||||||
355,645 | ||||||||
Multi-Utilities 0.7% | ||||||||
Ameren Corp. | 394 | 33,064 | ||||||
Avista Corp. | 98 | 4,197 | ||||||
Black Hills Corp. | 101 | 6,833 | ||||||
CenterPoint Energy, Inc. | 891 | 22,685 |
See Notes to Financial Statements.
140 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Multi-Utilities (cont’d.) | ||||||||
CMS Energy Corp. | 448 | $ | 27,682 | |||||
Consolidated Edison, Inc. | 530 | 39,098 | ||||||
Dominion Energy, Inc. | 1,245 | 93,213 | ||||||
DTE Energy Co. | 300 | 35,196 | ||||||
MDU Resources Group, Inc. | 301 | 9,548 | ||||||
NiSource, Inc. | 585 | 14,490 | ||||||
NorthWestern Corp. | 73 | 4,525 | ||||||
Public Service Enterprise Group, Inc. | 781 | 48,602 | ||||||
Sempra Energy | 489 | 63,888 | ||||||
Unitil Corp. | 20 | 1,058 | ||||||
WEC Energy Group, Inc. | 490 | 46,129 | ||||||
|
| |||||||
450,208 | ||||||||
Oil, Gas & Consumable Fuels 2.2% | ||||||||
Antero Midstream Corp. | 383 | 3,639 | ||||||
APA Corp. | 575 | 10,781 | ||||||
Bonanza Creek Energy, Inc. | 23 | 885 | ||||||
Cabot Oil & Gas Corp. | 609 | 9,744 | ||||||
Callon Petroleum Co.* | 54 | 2,125 | ||||||
Chevron Corp. | 2,980 | 303,394 | ||||||
Cimarex Energy Co. | 167 | 10,888 | ||||||
CNX Resources Corp.* | 283 | 3,424 | ||||||
ConocoPhillips | 2,081 | 116,661 | ||||||
CONSOL Energy, Inc.* | 50 | 1,051 | ||||||
Devon Energy Corp. | 878 | 22,688 | ||||||
Diamondback Energy, Inc. | 282 | 21,751 | ||||||
Dorian LPG Ltd.* | 31 | 375 | ||||||
DT Midstream, Inc.* | 137 | 5,809 | ||||||
EOG Resources, Inc. | 902 | 65,720 | ||||||
EQT Corp.* | 419 | 7,705 | ||||||
Equitrans Midstream Corp. | 561 | 4,611 | ||||||
Exxon Mobil Corp. | 6,523 | 375,529 | ||||||
Green Plains, Inc.* | 36 | 1,273 | ||||||
Hess Corp. | 426 | 32,563 | ||||||
HollyFrontier Corp. | 212 | 6,233 | ||||||
Kinder Morgan, Inc. | 3,000 | 52,140 | ||||||
Laredo Petroleum, Inc.* | 11 | 606 | ||||||
Marathon Oil Corp. | 1,212 | 14,047 | ||||||
Marathon Petroleum Corp. | 985 | 54,392 | ||||||
Matador Resources Co. | 146 | 4,511 | ||||||
Murphy Oil Corp. | 199 | 4,320 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 141 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Oil, Gas & Consumable Fuels (cont’d.) | ||||||||
Occidental Petroleum Corp. | 1,256 | $ | 32,782 | |||||
ONEOK, Inc. | 686 | 35,651 | ||||||
Par Pacific Holdings, Inc.* | 10 | 164 | ||||||
PBF Energy, Inc. (Class A Stock)* | 112 | 1,027 | ||||||
PDC Energy, Inc. | 135 | 5,339 | ||||||
Penn Virginia Corp.* | 15 | 277 | ||||||
Phillips 66 | 678 | 49,786 | ||||||
Pioneer Natural Resources Co. | 361 | 52,479 | ||||||
Range Resources Corp.* | 393 | 5,985 | ||||||
Renewable Energy Group, Inc.* | 69 | 4,226 | ||||||
REX American Resources Corp.* | 5 | 410 | ||||||
SM Energy Co. | 129 | 2,412 | ||||||
Southwestern Energy Co.* | 847 | 3,989 | ||||||
Talos Energy, Inc.* | 23 | 265 | ||||||
Targa Resources Corp. | 350 | 14,739 | ||||||
Valero Energy Corp. | 633 | 42,392 | ||||||
Williams Cos., Inc. (The) | 1,832 | 45,892 | ||||||
World Fuel Services Corp. | 73 | 2,516 | ||||||
|
| |||||||
1,437,196 | ||||||||
Paper & Forest Products 0.0% | ||||||||
Clearwater Paper Corp.* | 39 | 1,150 | ||||||
Domtar Corp.* | 79 | 4,338 | ||||||
Glatfelter Corp. | 15 | 229 | ||||||
Louisiana-Pacific Corp. | 160 | 8,870 | ||||||
Mercer International, Inc. (Germany) | 46 | 535 | ||||||
Neenah, Inc. | 31 | 1,558 | ||||||
Schweitzer-Mauduit International, Inc. | 46 | 1,809 | ||||||
|
| |||||||
18,489 | ||||||||
Personal Products 0.2% | ||||||||
Coty, Inc. (Class A Stock)* | 351 | 3,064 | ||||||
Edgewell Personal Care Co. | 73 | 2,999 | ||||||
elf Beauty, Inc.* | 22 | 607 | ||||||
Estee Lauder Cos., Inc. (The) (Class A Stock) | 359 | 119,845 | ||||||
Inter Parfums, Inc. | 35 | 2,691 | ||||||
Medifast, Inc. | 22 | 6,281 | ||||||
Nu Skin Enterprises, Inc. (Class A Stock) | 75 | 4,027 | ||||||
USANA Health Sciences, Inc.* | 23 | 2,191 | ||||||
|
| |||||||
141,705 |
See Notes to Financial Statements.
142 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Pharmaceuticals 3.4% | ||||||||
Amphastar Pharmaceuticals, Inc.* | 15 | $ | 314 | |||||
ANI Pharmaceuticals, Inc.* | 8 | 271 | ||||||
Bristol-Myers Squibb Co. | 3,442 | 233,609 | ||||||
Cara Therapeutics, Inc.* | 69 | 826 | ||||||
Catalent, Inc.* | 262 | 31,390 | ||||||
Collegium Pharmaceutical, Inc.* | 54 | 1,344 | ||||||
Corcept Therapeutics, Inc.* | 117 | 2,430 | ||||||
Eli Lilly & Co. | 1,231 | 299,749 | ||||||
Endo International PLC* | 165 | 835 | ||||||
Innoviva, Inc.* | 54 | 766 | ||||||
Jazz Pharmaceuticals PLC* | 95 | 16,104 | ||||||
Johnson & Johnson | 4,061 | 699,304 | ||||||
Merck & Co., Inc. | 3,900 | 299,793 | ||||||
Nektar Therapeutics* | 262 | 4,137 | ||||||
Organon & Co.* | 383 | 11,111 | ||||||
Pacira BioSciences, Inc.* | 69 | 4,068 | ||||||
Perrigo Co. PLC | 208 | 9,990 | ||||||
Pfizer, Inc. | 8,625 | 369,236 | ||||||
Phibro Animal Health Corp. (Class A Stock) | 15 | 355 | ||||||
Prestige Consumer Healthcare, Inc.* | 73 | 3,836 | ||||||
Supernus Pharmaceuticals, Inc.* | 54 | 1,422 | ||||||
Viatris, Inc. | 1,860 | 26,170 | ||||||
Zoetis, Inc. | 735 | 148,985 | ||||||
|
| |||||||
2,166,045 | ||||||||
Professional Services 0.5% | ||||||||
ASGN, Inc.* | 78 | 7,888 | ||||||
CACI International, Inc. (Class A Stock)* | 43 | 11,479 | ||||||
Equifax, Inc. | 189 | 49,253 | ||||||
Exponent, Inc. | 78 | 8,353 | ||||||
Forrester Research, Inc.* | 12 | 562 | ||||||
FTI Consulting, Inc.* | 54 | 7,868 | ||||||
Heidrick & Struggles International, Inc. | 15 | 641 | ||||||
IHS Markit Ltd. | 578 | 67,533 | ||||||
Insperity, Inc. | 54 | 5,349 | ||||||
Jacobs Engineering Group, Inc. | 201 | 27,185 | ||||||
KBR, Inc. | 224 | 8,669 | ||||||
Kelly Services, Inc. (Class A Stock)* | 15 | 329 | ||||||
Korn Ferry | 85 | 5,843 | ||||||
Leidos Holdings, Inc. | 204 | 21,710 | ||||||
ManpowerGroup, Inc. | 83 | 9,842 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 143 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Professional Services (cont’d.) | ||||||||
ManTech International Corp. (Class A Stock) | 43 | $ | 3,761 | |||||
Nielsen Holdings PLC | 549 | 13,006 | ||||||
Resources Connection, Inc. | 23 | 356 | ||||||
Robert Half International, Inc. | 176 | 17,285 | ||||||
Science Applications International Corp. | 92 | 8,031 | ||||||
TrueBlue, Inc.* | 19 | 517 | ||||||
Verisk Analytics, Inc. | 253 | 48,055 | ||||||
|
| |||||||
323,515 | ||||||||
Real Estate Management & Development 0.1% | ||||||||
CBRE Group, Inc. (Class A Stock)* | 521 | 50,256 | ||||||
Jones Lang LaSalle, Inc.* | 79 | 17,583 | ||||||
Marcus & Millichap, Inc.* | 23 | 915 | ||||||
RE/MAX Holdings, Inc. (Class A Stock) | 15 | 515 | ||||||
Realogy Holdings Corp.* | 138 | 2,445 | ||||||
St. Joe Co. (The) | 37 | 1,675 | ||||||
|
| |||||||
73,389 | ||||||||
Road & Rail 1.0% | ||||||||
ArcBest Corp. | 41 | 2,424 | ||||||
Avis Budget Group, Inc.* | 78 | 6,456 | ||||||
CSX Corp. | 3,503 | 113,217 | ||||||
Heartland Express, Inc. | 31 | 528 | ||||||
J.B. Hunt Transport Services, Inc. | 132 | 22,235 | ||||||
Kansas City Southern | 144 | 38,563 | ||||||
Knight-Swift Transportation Holdings, Inc. | 179 | 8,895 | ||||||
Landstar System, Inc. | 59 | 9,263 | ||||||
Marten Transport Ltd. | 33 | 522 | ||||||
Norfolk Southern Corp. | 389 | 100,296 | ||||||
Old Dominion Freight Line, Inc. | 147 | 39,565 | ||||||
Ryder System, Inc. | 78 | 5,940 | ||||||
Saia, Inc.* | 46 | 10,396 | ||||||
Union Pacific Corp. | 1,025 | 224,229 | ||||||
Werner Enterprises, Inc. | 79 | 3,611 | ||||||
XPO Logistics, Inc.* | 160 | 22,190 | ||||||
|
| |||||||
608,330 | ||||||||
Semiconductors & Semiconductor Equipment 5.3% | ||||||||
Advanced Micro Devices, Inc.* | 1,875 | 199,106 |
See Notes to Financial Statements.
144 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Semiconductors & Semiconductor Equipment (cont’d.) | ||||||||
Amkor Technology, Inc. | 154 | $ | 3,795 | |||||
Analog Devices, Inc. | 573 | 95,932 | ||||||
Applied Materials, Inc. | 1,415 | 198,001 | ||||||
Axcelis Technologies, Inc.* | 32 | 1,234 | ||||||
Broadcom, Inc. | 630 | 305,802 | ||||||
Brooks Automation, Inc. | 123 | 10,948 | ||||||
CEVA, Inc.* | 43 | 2,134 | ||||||
Cirrus Logic, Inc.* | 85 | 7,020 | ||||||
CMC Materials, Inc. | 48 | 6,943 | ||||||
Cohu, Inc.* | 81 | 2,868 | ||||||
Cree, Inc.* | 178 | 16,511 | ||||||
Diodes, Inc.* | 62 | 5,084 | ||||||
DSP Group, Inc.* | 31 | 497 | ||||||
Enphase Energy, Inc.* | 211 | 40,006 | ||||||
First Solar, Inc.* | 132 | 11,357 | ||||||
FormFactor, Inc.* | 125 | 4,657 | ||||||
Ichor Holdings Ltd.* | 34 | 1,753 | ||||||
Intel Corp. | 6,221 | 334,192 | ||||||
KLA Corp. | 239 | 83,210 | ||||||
Kulicke & Soffa Industries, Inc. (Singapore) | 100 | 5,436 | ||||||
Lam Research Corp. | 221 | 140,868 | ||||||
Lattice Semiconductor Corp.* | 211 | 11,974 | ||||||
Maxim Integrated Products, Inc. | 415 | 41,463 | ||||||
MaxLinear, Inc.* | 108 | 5,209 | ||||||
Microchip Technology, Inc. | 423 | 60,540 | ||||||
Micron Technology, Inc.* | 1,731 | 134,291 | ||||||
MKS Instruments, Inc. | 86 | 13,454 | ||||||
Monolithic Power Systems, Inc. | 68 | 30,550 | ||||||
NVIDIA Corp. | 3,844 | 749,541 | ||||||
NXP Semiconductors NV (China) | 426 | 87,922 | ||||||
Onto Innovation, Inc.* | 73 | 5,116 | ||||||
PDF Solutions, Inc.* | 23 | 430 | ||||||
Photronics, Inc.* | 46 | 615 | ||||||
Power Integrations, Inc. | 97 | 9,408 | ||||||
Qorvo, Inc.* | 176 | 33,368 | ||||||
QUALCOMM, Inc. | 1,740 | 260,652 | ||||||
Rambus, Inc.* | 145 | 3,431 | ||||||
Semtech Corp.* | 108 | 6,686 | ||||||
Silicon Laboratories, Inc.* | 70 | 10,429 | ||||||
Skyworks Solutions, Inc. | 258 | 47,604 | ||||||
SMART Global Holdings, Inc.* | 15 | 703 | ||||||
SolarEdge Technologies, Inc.* | 82 | 21,277 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 145 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Semiconductors & Semiconductor Equipment (cont’d.) | ||||||||
Synaptics, Inc.* | 54 | $ | 8,204 | |||||
Teradyne, Inc. | 256 | 32,512 | ||||||
Texas Instruments, Inc. | 1,427 | 272,015 | ||||||
Ultra Clean Holdings, Inc.* | 73 | 3,943 | ||||||
Universal Display Corp. | 67 | 15,711 | ||||||
Veeco Instruments, Inc.* | 36 | 835 | ||||||
Xilinx, Inc. | 382 | 57,239 | ||||||
|
| |||||||
3,402,476 | ||||||||
Software 8.5% | ||||||||
8x8, Inc.* | 130 | 3,323 | ||||||
ACI Worldwide, Inc.* | 177 | 6,071 | ||||||
Adobe, Inc.* | 737 | 458,141 | ||||||
Agilysys, Inc.* | 31 | 1,722 | ||||||
Alarm.com Holdings, Inc.* | 70 | 5,825 | ||||||
ANSYS, Inc.* | 138 | 50,848 | ||||||
Aspen Technology, Inc.* | 105 | 15,357 | ||||||
Autodesk, Inc.* | 341 | 109,505 | ||||||
Blackbaud, Inc.* | 71 | 5,064 | ||||||
Bottomline Technologies DE, Inc.* | 59 | 2,381 | ||||||
Cadence Design Systems, Inc.* | 431 | 63,637 | ||||||
CDK Global, Inc. | 183 | 8,782 | ||||||
Cerence, Inc.* | 60 | 6,451 | ||||||
Ceridian HCM Holding, Inc.* | 201 | 19,778 | ||||||
Citrix Systems, Inc. | 193 | 19,445 | ||||||
CommVault Systems, Inc.* | 68 | 5,140 | ||||||
Ebix, Inc. | 22 | 665 | ||||||
Envestnet, Inc.* | 90 | 6,771 | ||||||
Fair Isaac Corp.* | 47 | 24,624 | ||||||
Fortinet, Inc.* | 211 | 57,443 | ||||||
InterDigital, Inc. | 46 | 3,031 | ||||||
Intuit, Inc. | 422 | 223,647 | ||||||
J2 Global, Inc.* | 70 | 9,889 | ||||||
LivePerson, Inc.* | 108 | 6,879 | ||||||
Manhattan Associates, Inc.* | 98 | 15,644 | ||||||
Microsoft Corp. | 11,605 | 3,306,381 | ||||||
MicroStrategy, Inc. (Class A Stock)* | 16 | 10,016 | ||||||
NortonLifeLock, Inc. | 892 | 22,140 | ||||||
OneSpan, Inc.* | 23 | �� | 567 | |||||
Oracle Corp. | 2,802 | 244,166 | ||||||
Paycom Software, Inc.* | 80 | 32,000 |
See Notes to Financial Statements.
146 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Software (cont’d.) | ||||||||
Paylocity Holding Corp.* | 62 | $ | 12,863 | |||||
Progress Software Corp. | 60 | 2,735 | ||||||
PTC, Inc.* | 162 | 21,943 | ||||||
Qualys, Inc.* | 50 | 5,078 | ||||||
Sailpoint Technologies Holdings, Inc.* | 134 | 6,699 | ||||||
salesforce.com, Inc.* | 1,492 | 360,960 | ||||||
ServiceNow, Inc.* | 307 | 180,482 | ||||||
SPS Commerce, Inc.* | 59 | 6,428 | ||||||
Synopsys, Inc.* | 237 | 68,254 | ||||||
Teradata Corp.* | 177 | 8,790 | ||||||
Tyler Technologies, Inc.* | 66 | 32,514 | ||||||
Vonage Holdings Corp.* | 363 | 5,176 | ||||||
Xperi Holding Corp. | 116 | 2,409 | ||||||
|
| |||||||
5,459,664 | ||||||||
Specialty Retail 2.3% | ||||||||
Aaron’s Co., Inc. (The) | 23 | 664 | ||||||
Abercrombie & Fitch Co. (Class A Stock)* | 83 | 3,138 | ||||||
Advance Auto Parts, Inc. | 104 | 22,054 | ||||||
American Eagle Outfitters, Inc. | 209 | 7,204 | ||||||
America’s Car-Mart, Inc.* | 15 | 2,385 | ||||||
Asbury Automotive Group, Inc.* | 37 | 7,602 | ||||||
AutoNation, Inc.* | 85 | 10,313 | ||||||
AutoZone, Inc.* | 34 | 55,201 | ||||||
Barnes & Noble Education, Inc.* | 31 | 259 | ||||||
Bed Bath & Beyond, Inc.* | 161 | 4,595 | ||||||
Best Buy Co., Inc. | 345 | 38,761 | ||||||
Boot Barn Holdings, Inc.* | 44 | 3,803 | ||||||
Buckle, Inc. (The) | 29 | 1,220 | ||||||
Caleres, Inc. | 41 | 1,014 | ||||||
CarMax, Inc.* | 252 | 33,755 | ||||||
Cato Corp. (The) (Class A Stock) | 15 | 248 | ||||||
Chico’s FAS, Inc.* | 85 | 525 | ||||||
Children’s Place, Inc. (The)* | 26 | 2,193 | ||||||
Conn’s, Inc.* | 23 | 512 | ||||||
Designer Brands, Inc. (Class A Stock)* | 69 | 1,005 | ||||||
Dick’s Sporting Goods, Inc. | 101 | 10,518 | ||||||
Five Below, Inc.* | 90 | 17,498 | ||||||
Foot Locker, Inc. | 157 | 8,959 | ||||||
GameStop Corp. (Class A Stock)* | 93 | 14,984 | ||||||
Gap, Inc. (The) | 289 | 8,430 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 147 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Specialty Retail (cont’d.) | ||||||||
Genesco, Inc.* | 23 | $ | 1,321 | |||||
Group 1 Automotive, Inc. | 28 | 4,865 | ||||||
Guess?, Inc. | 31 | 692 | ||||||
Haverty Furniture Cos., Inc. | 15 | 540 | ||||||
Hibbett, Inc. | 29 | 2,571 | ||||||
Home Depot, Inc. (The) | 1,638 | 537,575 | ||||||
L Brands, Inc. | 416 | 33,309 | ||||||
Lithia Motors, Inc. | 46 | 17,352 | ||||||
Lowe’s Cos., Inc. | 1,090 | 210,032 | ||||||
Lumber Liquidators Holdings, Inc.* | 23 | 439 | ||||||
MarineMax, Inc.* | 35 | 1,883 | ||||||
Monro, Inc. | 44 | 2,552 | ||||||
Murphy USA, Inc. | 42 | 6,196 | ||||||
ODP Corp. (The)* | 92 | 4,354 | ||||||
O’Reilly Automotive, Inc.* | 110 | 66,423 | ||||||
Rent-A-Center, Inc. | 88 | 5,035 | ||||||
RH* | 26 | 17,266 | ||||||
Ross Stores, Inc. | 553 | 67,848 | ||||||
Sally Beauty Holdings, Inc.* | 133 | 2,516 | ||||||
Shoe Carnival, Inc. | 30 | 1,011 | ||||||
Signet Jewelers Ltd. | 78 | 5,019 | ||||||
Sleep Number Corp.* | 39 | 3,869 | ||||||
Sonic Automotive, Inc. (Class A Stock) | 26 | 1,418 | ||||||
TJX Cos., Inc. (The) | 1,859 | 127,918 | ||||||
Tractor Supply Co. | 181 | 32,748 | ||||||
Ulta Beauty, Inc.* | 88 | 29,550 | ||||||
Urban Outfitters, Inc.* | 103 | 3,830 | ||||||
Williams-Sonoma, Inc. | 119 | 18,052 | ||||||
Zumiez, Inc.* | 21 | 917 | ||||||
|
| |||||||
1,463,941 | ||||||||
Technology Hardware, Storage & Peripherals 5.8% | ||||||||
3D Systems Corp.* | 171 | 4,709 | ||||||
Apple, Inc. | 24,172 | 3,525,728 | ||||||
Diebold Nixdorf, Inc.* | 38 | 396 | ||||||
Hewlett Packard Enterprise Co. | 1,943 | 28,174 | ||||||
HP, Inc. | 1,813 | 52,341 | ||||||
NCR Corp.* | 204 | 9,058 | ||||||
NetApp, Inc. | 343 | 27,299 | ||||||
Seagate Technology Holdings PLC | 309 | 27,161 |
See Notes to Financial Statements.
148 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Technology Hardware, Storage & Peripherals (cont’d.) | ||||||||
Western Digital Corp.* | 471 | $ | 30,582 | |||||
Xerox Holdings Corp. | 230 | 5,550 | ||||||
|
| |||||||
3,710,998 | ||||||||
Textiles, Apparel & Luxury Goods 0.8% | ||||||||
Capri Holdings Ltd.* | 235 | 13,233 | ||||||
Carter’s, Inc. | 69 | 6,744 | ||||||
Columbia Sportswear Co. | 54 | 5,380 | ||||||
Crocs, Inc.* | 101 | 13,717 | ||||||
Deckers Outdoor Corp.* | 47 | 19,310 | ||||||
Fossil Group, Inc.* | 31 | 391 | ||||||
G-III Apparel Group Ltd.* | 46 | 1,374 | ||||||
Hanesbrands, Inc. | 526 | 9,605 | ||||||
Kontoor Brands, Inc. | 66 | 3,655 | ||||||
Movado Group, Inc. | 15 | 451 | ||||||
NIKE, Inc. (Class B Stock) | 1,966 | 329,325 | ||||||
Oxford Industries, Inc. | 23 | 1,999 | ||||||
PVH Corp.* | 112 | 11,717 | ||||||
Ralph Lauren Corp. | 75 | 8,514 | ||||||
Skechers USA, Inc. (Class A Stock)* | 208 | 11,165 | ||||||
Steven Madden Ltd. | 106 | 4,646 | ||||||
Tapestry, Inc.* | 429 | 18,147 | ||||||
Under Armour, Inc. (Class A Stock)* | 243 | 4,969 | ||||||
Under Armour, Inc. (Class C Stock)* | 254 | 4,450 | ||||||
Unifi, Inc.* | 15 | 354 | ||||||
Vera Bradley, Inc.* | 23 | 253 | ||||||
VF Corp. | 497 | 39,859 | ||||||
Wolverine World Wide, Inc. | 104 | 3,488 | ||||||
|
| |||||||
512,746 | ||||||||
Thrifts & Mortgage Finance 0.1% | ||||||||
Axos Financial, Inc.* | 88 | 4,211 | ||||||
Capitol Federal Financial, Inc. | 118 | 1,309 | ||||||
Essent Group Ltd. | 170 | 7,679 | ||||||
Flagstar Bancorp, Inc. | 60 | 2,746 | ||||||
HomeStreet, Inc. | 23 | 867 | ||||||
Meta Financial Group, Inc. | 48 | 2,386 | ||||||
MGIC Investment Corp. | 517 | 7,155 | ||||||
Mr. Cooper Group, Inc.* | 108 | 4,016 | ||||||
New York Community Bancorp, Inc. | 694 | 8,175 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 149 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Thrifts & Mortgage Finance (cont’d.) | ||||||||
NMI Holdings, Inc. (Class A Stock)* | 104 | $ | 2,290 | |||||
Northfield Bancorp, Inc. | 23 | 378 | ||||||
Northwest Bancshares, Inc. | 133 | 1,770 | ||||||
Provident Financial Services, Inc. | 69 | 1,490 | ||||||
TrustCo Bank Corp. NY | 7 | 235 | ||||||
Walker & Dunlop, Inc. | 46 | 4,760 | ||||||
Washington Federal, Inc. | 98 | 3,163 | ||||||
WSFS Financial Corp. | 77 | 3,371 | ||||||
|
| |||||||
56,001 | ||||||||
Tobacco 0.6% | ||||||||
Altria Group, Inc. | 2,856 | 137,202 | ||||||
Philip Morris International, Inc. | 2,407 | 240,917 | ||||||
Universal Corp. | 29 | 1,513 | ||||||
Vector Group Ltd. | 137 | 1,830 | ||||||
|
| |||||||
381,462 | ||||||||
Trading Companies & Distributors 0.3% | ||||||||
Applied Industrial Technologies, Inc. | 69 | 6,189 | ||||||
Boise Cascade Co. | 57 | 2,916 | ||||||
DXP Enterprises, Inc.* | 15 | 490 | ||||||
Fastenal Co. | 887 | 48,581 | ||||||
GATX Corp. | 54 | 4,981 | ||||||
GMS, Inc.* | 69 | 3,390 | ||||||
MSC Industrial Direct Co., Inc. (Class A Stock) | 77 | 6,866 | ||||||
NOW, Inc.* | 116 | 1,145 | ||||||
United Rentals, Inc.* | 114 | 37,569 | ||||||
Univar Solutions, Inc.* | 217 | 5,325 | ||||||
Veritiv Corp.* | 10 | 613 | ||||||
W.W. Grainger, Inc. | 71 | 31,565 | ||||||
Watsco, Inc. | 58 | 16,381 | ||||||
|
| |||||||
166,011 | ||||||||
Water Utilities 0.1% | ||||||||
American States Water Co. | 54 | 4,769 | ||||||
American Water Works Co., Inc. | 280 | 47,631 | ||||||
California Water Service Group | 73 | 4,576 |
See Notes to Financial Statements.
150 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Water Utilities (cont’d.) | ||||||||
Essential Utilities, Inc. | 338 | $ | 16,602 | |||||
Middlesex Water Co. | 30 | 3,052 | ||||||
|
| |||||||
76,630 | ||||||||
Wireless Telecommunication Services 0.2% | ||||||||
Shenandoah Telecommunications Co. | 77 | 4,065 | ||||||
Spok Holdings, Inc. | 23 | 190 | ||||||
Telephone & Data Systems, Inc. | 147 | 3,285 | ||||||
T-Mobile US, Inc.* | 908 | 130,770 | ||||||
|
| |||||||
138,310 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(cost $32,990,268) | 62,554,531 | |||||||
|
| |||||||
EXCHANGE-TRADED FUNDS 1.6% | ||||||||
iShares Core S&P 500 ETF | 1,900 | 836,760 | ||||||
iShares Core S&P Mid-Cap ETF | 400 | 107,884 | ||||||
iShares Core S&P Small-Cap ETF | 500 | 55,130 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS | ||||||||
(cost $712,864) | 999,774 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||
(cost $33,703,132) | 63,554,305 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 2.2% | ||||||||
AFFILIATED MUTUAL FUNDS 1.9% | ||||||||
PGIM Core Ultra Short Bond Fund(wa) | 584,828 | 584,828 | ||||||
PGIM Institutional Money Market Fund | ||||||||
(cost $657,521; includes $657,479 of cash collateral for securities on loan)(b)(wa) | 657,838 | 657,443 | ||||||
|
| |||||||
TOTAL AFFILIATED MUTUAL FUNDS | ||||||||
(cost $1,242,349) | 1,242,271 | |||||||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 151 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# |
| Value | ||||||
U.S. TREASURY OBLIGATION(k)(n) 0.3% | ||||||||||||||||
U.S. Treasury Bills | ||||||||||||||||
(cost $199,988) | 0.045 | % | 09/16/21 | 200 | $ | 199,990 | ||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||||||
(cost $1,442,337) | 1,442,261 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 101.0% | ||||||||||||||||
(cost $35,145,469) | 64,996,566 | |||||||||||||||
Liabilities in excess of other assets(z) (1.0)% | (649,220 | ) | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 64,347,346 | ||||||||||||||
|
|
See the Glossary for a list of the abbreviation(s) used in the annual report.
* | Non-income producing security. |
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $640,614; cash collateral of $657,479 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(g) | An affiliated security. |
(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. |
(wa) | 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, if applicable. |
(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 July 31, 2021:
Number | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | |||||||||||||
Long Position: | |||||||||||||||||
4 | S&P 500 E-Mini Index | Sep. 2021 | $877,900 | $28,922 | |||||||||||||
|
|
See Notes to Financial Statements.
152 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
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 | $— | $199,990 |
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 July 31, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 968,224 | $ — | $— | ||||||||
Air Freight & Logistics | 380,663 | — | — | |||||||||
Airlines | 154,878 | — | — | |||||||||
Auto Components | 166,945 | — | — | |||||||||
Automobiles | 1,037,477 | — | — | |||||||||
Banks | 2,684,118 | — | — | |||||||||
Beverages | 843,655 | — | — | |||||||||
Biotechnology | 1,186,847 | — | — | |||||||||
Building Products | 417,602 | — | — | |||||||||
Capital Markets | 1,826,704 | — | — | |||||||||
Chemicals | 1,159,204 | — | — | |||||||||
Commercial Services & Supplies | 335,688 | — | — | |||||||||
Communications Equipment | 528,977 | — | — | |||||||||
Construction & Engineering | 79,786 | — | — | |||||||||
Construction Materials | 85,473 | — | — | |||||||||
Consumer Finance | 420,798 | — | — | |||||||||
Containers & Packaging | 217,593 | — | — | |||||||||
Distributors | 84,976 | — | — | |||||||||
Diversified Consumer Services | 43,932 | — | — | |||||||||
Diversified Financial Services | 812,607 | — | — | |||||||||
Diversified Telecommunication Services | 697,307 | — | — |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 153 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Long-Term Investments (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Electric Utilities | $ | 947,861 | $ — | $— | ||||||||
Electrical Equipment | 412,385 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 555,351 | — | — | |||||||||
Energy Equipment & Services | 142,553 | — | — | |||||||||
Entertainment | 1,067,021 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 1,898,077 | — | — | |||||||||
Food & Staples Retailing | 791,506 | — | — | |||||||||
Food Products | 590,525 | — | — | |||||||||
Gas Utilities | 74,903 | — | — | |||||||||
Health Care Equipment & Supplies | 2,358,713 | — | — | |||||||||
Health Care Providers & Services | 1,689,371 | — | — | |||||||||
Health Care Technology | 54,825 | — | — | |||||||||
Hotels, Restaurants & Leisure | 1,290,839 | — | — | |||||||||
Household Durables | 346,159 | — | — | |||||||||
Household Products | 792,297 | — | — | |||||||||
Independent Power & Renewable Electricity Producers | 24,245 | — | — | |||||||||
Industrial Conglomerates | 686,102 | — | — | |||||||||
Insurance | 1,240,680 | — | — | |||||||||
Interactive Media & Services | 3,850,632 | — | — | |||||||||
Internet & Direct Marketing Retail | 2,318,408 | — | — | |||||||||
IT Services | 3,065,127 | — | — | |||||||||
Leisure Products | 75,981 | — | — | |||||||||
Life Sciences Tools & Services | 847,672 | — | — | |||||||||
Machinery | 1,227,052 | — | — | |||||||||
Marine | 10,380 | — | — | |||||||||
Media | 785,666 | — | — | |||||||||
Metals & Mining | 318,933 | — | — | |||||||||
Mortgage Real Estate Investment Trusts (REITs) | 15,052 | — | — | |||||||||
Multiline Retail | 355,645 | — | — | |||||||||
Multi-Utilities | 450,208 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 1,437,196 | — | — | |||||||||
Paper & Forest Products | 18,489 | — | — | |||||||||
Personal Products | 141,705 | — | — | |||||||||
Pharmaceuticals | 2,166,045 | — | — | |||||||||
Professional Services | 323,515 | — | — | |||||||||
Real Estate Management & Development | 73,389 | — | — | |||||||||
Road & Rail | 608,330 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 3,402,476 | — | — | |||||||||
Software | 5,459,664 | — | — | |||||||||
Specialty Retail | 1,463,941 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 3,710,998 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 512,746 | — | — |
See Notes to Financial Statements.
154 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Long-Term Investments (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Thrifts & Mortgage Finance | $ | 56,001 | $ — | $— | ||||||||
Tobacco | 381,462 | — | — | |||||||||
Trading Companies & Distributors | 166,011 | — | — | |||||||||
Water Utilities | 76,630 | — | — | |||||||||
Wireless Telecommunication Services | 138,310 | — | — | |||||||||
Exchange-Traded Funds | 999,774 | — | — | |||||||||
Short-Term Investments | ||||||||||||
Affiliated Mutual Funds | 1,242,271 | — | — | |||||||||
U.S. Treasury Obligation | — | 199,990 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 64,796,576 | $ | 199,990 | $— | |||||||
|
|
|
|
|
| |||||||
Other Financial Instruments* | ||||||||||||
Assets | ||||||||||||
Futures Contracts | $ | 28,922 | $ | — | $— | |||||||
|
|
|
|
|
|
* | 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 July 31, 2021 were as follows (unaudited):
Software | 8.5 | % | ||
Interactive Media & Services | 6.0 | |||
Technology Hardware, Storage & Peripherals | 5.8 | |||
Semiconductors & Semiconductor Equipment | 5.3 | |||
IT Services | 4.8 | |||
Banks | 4.2 | |||
Health Care Equipment & Supplies | 3.7 | |||
Internet & Direct Marketing Retail | 3.6 | |||
Pharmaceuticals | 3.4 | |||
Equity Real Estate Investment Trusts (REITs) | 3.0 | |||
Capital Markets | 2.8 | |||
Health Care Providers & Services | 2.6 | |||
Specialty Retail | 2.3 | |||
Oil, Gas & Consumable Fuels | 2.2 | |||
Hotels, Restaurants & Leisure | 2.0 | |||
Affiliated Mutual Funds (1.0% represents investments purchased with collateral from securities on loan) | 1.9 | % | ||
Insurance | 1.9 | |||
Machinery | 1.9 | |||
Biotechnology | 1.8 | |||
Chemicals | 1.8 | |||
Entertainment | 1.7 | |||
Automobiles | 1.6 | |||
Exchange-Traded Funds | 1.6 | |||
Aerospace & Defense | 1.5 | |||
Electric Utilities | 1.5 | |||
Life Sciences Tools & Services | 1.3 | |||
Beverages | 1.3 | |||
Diversified Financial Services | 1.3 | |||
Household Products | 1.2 |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 155 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
Industry Classification (continued):
Food & Staples Retailing | 1.2 | % | ||
Media | 1.2 | |||
Diversified Telecommunication Services | 1.1 | |||
Industrial Conglomerates | 1.1 | |||
Road & Rail | 1.0 | |||
Food Products | 0.9 | |||
Electronic Equipment, Instruments & Components | 0.9 | |||
Communications Equipment | 0.8 | |||
Textiles, Apparel & Luxury Goods | 0.8 | |||
Multi-Utilities | 0.7 | |||
Consumer Finance | 0.7 | |||
Building Products | 0.7 | |||
Electrical Equipment | 0.6 | |||
Tobacco | 0.6 | |||
Air Freight & Logistics | 0.6 | |||
Multiline Retail | 0.6 | |||
Household Durables | 0.5 | |||
Commercial Services & Supplies | 0.5 | |||
Professional Services | 0.5 | |||
Metals & Mining | 0.5 | |||
Containers & Packaging | 0.3 | |||
U.S. Treasury Obligation | 0.3 | |||
Auto Components | 0.3 | |||
Trading Companies & Distributors | 0.3 | |||
Airlines | 0.2 | |||
Energy Equipment & Services | 0.2 |
Personal Products | 0.2 | % | ||
Wireless Telecommunication Services | 0.2 | |||
Construction Materials | 0.1 | |||
Distributors | 0.1 | |||
Construction & Engineering | 0.1 | |||
Water Utilities | 0.1 | |||
Leisure Products | 0.1 | |||
Gas Utilities | 0.1 | |||
Real Estate Management & Development | 0.1 | |||
Thrifts & Mortgage Finance | 0.1 | |||
Health Care Technology | 0.1 | |||
Diversified Consumer Services | 0.1 | |||
Independent Power & Renewable Electricity Producers | 0.0 | * | ||
Paper & Forest Products | 0.0 | * | ||
Mortgage Real Estate Investment Trusts (REITs) | 0.0 | * | ||
Marine | 0.0 | * | ||
|
| |||
101.0 | ||||
Liabilities in excess of other assets | (1.0 | ) | ||
|
| |||
100.0 | % | |||
|
| |||
| ||||
* Less than +/- 0.05% |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of July 31, 2021 as presented in the Statement of Assets and Liabilities:
See Notes to Financial Statements.
156 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
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 | $28,922 | * | — | $— | |||||
|
|
|
* | 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 year ended July 31, 2021 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as hedging instruments, carried at fair value | Futures | |||
Equity contracts | $764,466 | |||
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as hedging instruments, carried at fair value | Futures | |||
Equity contracts | $(70,692) |
For the year ended July 31, 2021, the Fund’s average volume of derivative activities is as follows:
Futures Contracts— Long Positions(1) |
$1,731,967 |
(1) | Notional Amount in USD. |
Average volume is based on average quarter end balances as noted for the year ended July 31, 2021.
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 157 |
PGIM QMA US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2021
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 | $640,614 | $(640,614) | $— |
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
158 |
PGIM QMA US Broad Market Index Fund
Statement of Assets & Liabilities
as of July 31, 2021
Assets | ||||
Investments at value, including securities on loan of $640,614: | ||||
Unaffiliated investments (cost $33,852,827) | $ | 63,693,024 | ||
Affiliated investments (cost $1,292,642) | 1,303,542 | |||
Cash | 104 | |||
Receivable for investments sold | 317,075 | |||
Receivable for Fund shares sold | 156,185 | |||
Dividends receivable | 47,364 | |||
Due from Manager | 3,323 | |||
Prepaid expenses and other assets | 5,361 | |||
|
| |||
Total Assets | 65,525,978 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 657,479 | |||
Payable for Fund shares purchased | 281,276 | |||
Payable for investments purchased | 181,088 | |||
Accrued expenses and other liabilities | 53,434 | |||
Due to broker—variation margin futures | 4,460 | |||
Trustees’ fees payable | 826 | |||
Affiliated transfer agent fee payable | 69 | |||
|
| |||
Total Liabilities | 1,178,632 | |||
|
| |||
Net Assets | $ | 64,347,346 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 3,242 | ||
Paid-in capital in excess of par | 32,676,735 | |||
Total distributable earnings (loss) | 31,667,369 | |||
|
| |||
Net assets, July 31, 2021 | $ | 64,347,346 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, ($64,347,346 ÷ 3,241,581 shares of beneficial interest issued and outstanding) | $ | 19.85 | ||
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 159 |
PGIM QMA US Broad Market Index Fund
Statement of Operations
Year Ended July 31, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $56 foreign withholding tax) | $ | 1,062,342 | ||
Affiliated dividend income | 7,278 | |||
Income from securities lending, net (including affiliated income of $335) | 336 | |||
|
| |||
Total income | 1,069,956 | |||
|
| |||
Expenses | ||||
Management fee | 131,298 | |||
Custodian and accounting fees | 60,988 | |||
Audit fee | 26,188 | |||
Legal fees and expenses | 21,152 | |||
Trustees’ fees | 11,172 | |||
Shareholders’ reports | 9,035 | |||
SEC registration fees | 615 | |||
Transfer agent’s fees and expenses (including affiliated expense of $416) | 586 | |||
Registration fees | 251 | |||
Miscellaneous | 19,812 | |||
|
| |||
Total expenses | 281,097 | |||
Less: Fee waiver and/or expense reimbursement | (134,305 | ) | ||
|
| |||
Net expenses | 146,792 | |||
|
| |||
Net investment income (loss) | 923,164 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(3,363)) | 2,058,961 | |||
Futures transactions | 764,466 | |||
In-kind redemptions | 2,905,956 | |||
|
| |||
5,729,383 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $33,513) | 17,041,116 | |||
Futures | (70,692 | ) | ||
|
| |||
16,970,424 | ||||
|
| |||
Net gain (loss) on investment transactions | 22,699,807 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 23,622,971 | ||
|
|
See Notes to Financial Statements.
160 |
PGIM QMA US Broad Market Index Fund
Statements of Changes in Net Assets
Year Ended July 31, | ||||||||
2021 | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 923,164 | $ | 846,927 | ||||
Net realized gain (loss) on investment transactions | 5,729,383 | (989,841 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 16,970,424 | 5,534,287 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 23,622,971 | 5,391,373 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class R6 | (1,399,691 | ) | (851,368 | ) | ||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 25,527,000 | 29,074,039 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,399,691 | 851,368 | ||||||
Cost of shares purchased | (46,910,910 | ) | (17,490,670 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (19,984,219 | ) | 12,434,737 | |||||
|
|
|
| |||||
Total increase (decrease) | 2,239,061 | 16,974,742 | ||||||
Net Assets: | ||||||||
Beginning of year | 62,108,285 | 45,133,543 | ||||||
|
|
|
| |||||
End of year | $ | 64,347,346 | $ | 62,108,285 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 161 |
PGIM Jennison Small-Cap Core Equity Fund
Financial Highlights
Class R6 Shares | ||||||||||||||||||||
Year Ended July 31, | November 15, 2016(a) through July 31, 2017 | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.48 | $11.82 | $13.04 | $11.27 | $10.00 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | - | (c) | 0.01 | - | (c) | 0.02 | ||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 7.65 | 0.66 | (0.53 | ) | 1.97 | 1.27 | ||||||||||||||
Total from investment operations | 7.59 | 0.66 | (0.52 | ) | 1.97 | 1.29 | ||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | - | - | (0.04 | ) | - | (c) | (0.02 | ) | ||||||||||||
Tax return of capital distributions | - | - | (0.01 | ) | - | - | ||||||||||||||
Distributions from net realized gains | (0.64 | ) | - | (0.65 | ) | (0.20 | ) | - | ||||||||||||
Total dividends and distributions | (0.64 | ) | - | (0.70 | ) | (0.20 | ) | (0.02 | ) | |||||||||||
Net asset value, end of period | $19.43 | $12.48 | $11.82 | $13.04 | $11.27 | |||||||||||||||
Total Return(d): | 62.10 | % | 5.50 | % | (3.26 | )% | 17.75 | % | 12.89 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $32,765 | $21,439 | $17,371 | $16,158 | $12,584 | |||||||||||||||
Average net assets (000) | $28,667 | $17,831 | $16,167 | $14,370 | $10,943 | |||||||||||||||
Ratios to average net assets(e): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 1.02 | %(f) | ||||||||||
Expenses before waivers and/or expense reimbursement | 1.19 | % | 1.52 | % | 1.64 | % | 1.68 | % | 2.04 | %(f) | ||||||||||
Net investment income (loss) | (0.39 | )% | (0.03 | )% | 0.07 | % | - | %(c) | 0.22 | %(f) | ||||||||||
Portfolio turnover rate(g) | 67 | % | 54 | % | 36 | % | 39 | % | 28 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Amount rounds to zero. |
(d) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
162 |
PGIM Core Conservative Bond Fund
Financial Highlights
Class R6 Shares | ||||||||||||||||||||
Year Ended July 31, | November 15, 2016(a) through July 31, 2017 | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.81 | $10.12 | $9.66 | $10.03 | $10.00 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.13 | 0.22 | 0.25 | 0.21 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (0.25 | ) | 0.73 | 0.49 | (0.34 | ) | 0.05 | |||||||||||||
Total from investment operations | (0.12 | ) | 0.95 | 0.74 | (0.13 | ) | 0.17 | |||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.26 | ) | (0.28 | ) | (0.24 | ) | (0.14 | ) | ||||||||||
Distributions from net realized gains | (0.09 | ) | - | - | - | - | ||||||||||||||
Total dividends and distributions | (0.30 | ) | (0.26 | ) | (0.28 | ) | (0.24 | ) | (0.14 | ) | ||||||||||
Net asset value, end of period | $10.39 | $10.81 | $10.12 | $9.66 | $10.03 | |||||||||||||||
Total Return(c): | (1.07 | )% | 9.50 | % | 7.74 | % | (1.31 | )% | 1.72 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $62,780 | $57,963 | $46,905 | $38,592 | $31,357 | |||||||||||||||
Average net assets (000) | $62,768 | $50,192 | $42,668 | $34,737 | $25,827 | |||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.53 | %(e) | ||||||||||
Expenses before waivers and/or expense reimbursement | 0.55 | % | 0.67 | % | 0.77 | % | 0.78 | % | 0.95 | %(e) | ||||||||||
Net investment income (loss) | 1.28 | % | 2.07 | % | 2.55 | % | 2.11 | % | 1.72 | %(e) | ||||||||||
Portfolio turnover rate(f)(g) | 194 | % | 174 | % | 107 | % | 171 | % | 348 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 163 |
PGIM TIPS Fund
Financial Highlights
Class R6 Shares | ||||||||||||||||||||||
Year Ended July 31, | November 15, 2016(a) through July 31, 2017 | |||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.67 | $9.87 | $9.61 | $9.86 | $10.00 | |||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | 0.36 | 0.01 | 0.21 | 0.28 | 0.13 | |||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.32 | 0.94 | 0.30 | (0.19 | ) | (0.09 | ) | |||||||||||||||
Total from investment operations | 0.68 | 0.95 | 0.51 | 0.09 | 0.04 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||
Dividends from net investment income | (0.43 | ) | (0.15 | ) | (0.25 | ) | (0.34 | ) | (0.18 | ) | ||||||||||||
Distributions from net realized gains | (0.09 | ) | - | - | - | - | ||||||||||||||||
Total dividends and distributions | (0.52 | ) | (0.15 | ) | (0.25 | ) | (0.34 | ) | (0.18 | ) | ||||||||||||
Net asset value, end of period | $10.83 | $10.67 | $9.87 | $9.61 | $9.86 | |||||||||||||||||
Total Return(c): | 6.49 | % | 9.83 | % | 5.38 | % | 0.87 | % | 0.38 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||
Net assets, end of period (000) | $83,793 | $48,736 | $35,938 | $23,693 | $16,011 | |||||||||||||||||
Average net assets (000) | $79,151 | $38,800 | $30,412 | $19,916 | $6,479 | |||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.55 | %(e) | ||||||||||||
Expenses before waivers and/or expense reimbursement | 0.41 | % | 0.58 | % | 0.72 | % | 0.94 | % | 2.41 | %(e) | ||||||||||||
Net investment income (loss) | 3.39 | % | 0.12 | % | 2.17 | % | 2.83 | % | 1.79 | %(e) | ||||||||||||
Portfolio turnover rate(f) | 72 | %(g) | 102 | % | 40 | % | 54 | % | 41 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions (if any). |
See Notes to Financial Statements.
164 |
PGIM QMA Commodity Strategies Fund
Consolidated Financial Highlights
Class R6 Shares | |||||||||||||||||||||||||||
Year Ended July 31, | November 15, 2016(a) through July 31, 2017 | ||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.34 | $9.44 | $10.31 | $10.15 | $10.00 | ||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | 0.01 | 0.14 | 0.04 | (0.05 | ) | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 3.73 | (1.01 | ) | (0.74 | ) | 0.27 | 0.20 | ||||||||||||||||||||
Total from investment operations | 3.68 | (1.00 | ) | (0.60 | ) | 0.31 | 0.15 | ||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | - | (0.10 | ) | (0.27 | ) | (0.15 | ) | - | |||||||||||||||||||
Tax return of capital distributions | - | - | (c) | - | - | - | |||||||||||||||||||||
Total dividends and distributions | - | (0.10 | ) | (0.27 | ) | (0.15 | ) | - | |||||||||||||||||||
Net asset value, end of period | $12.02 | $8.34 | $9.44 | $10.31 | $10.15 | ||||||||||||||||||||||
Total Return(d): | 44.12 | % | (10.74 | )% | (5.69 | )% | 3.09 | % | 1.50 | % | |||||||||||||||||
| |||||||||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (000) | $61,721 | $38,553 | $21,123 | $18,187 | $13,811 | ||||||||||||||||||||||
Average net assets (000) | $53,974 | $28,308 | $19,634 | $16,136 | $10,738 | ||||||||||||||||||||||
Ratios to average net assets(e): | |||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.64 | % | 0.80 | % | 0.80 | % | 0.92 | % | 1.30 | %(f) | |||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.71 | % | 0.94 | % | 1.10 | % | 1.88 | % | 2.64 | %(f) | |||||||||||||||||
Net investment income (loss) | (0.53 | )% | 0.17 | % | 1.42 | % | 0.41 | % | (0.67 | )%(f) | |||||||||||||||||
Portfolio turnover rate(g) | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Amount rounds to zero. |
(d) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Day One Underlying Funds | 165 |
PGIM QMA Mid-Cap Core Equity Fund
Financial Highlights
Class R6 Shares | |||||||||||||||||||||||||||
Year Ended July 31, | November 17, 2016(a) through July 31, 2017 | ||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.72 | $10.84 | $12.08 | $11.16 | $10.00 | ||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.10 | 0.11 | 0.09 | 0.05 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 4.54 | (1.10 | ) | (0.67 | ) | 1.16 | 1.12 | ||||||||||||||||||||
Total from investment operations | 4.63 | (1.00 | ) | (0.56 | ) | 1.25 | 1.17 | ||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | (0.08 | ) | (0.12 | ) | (0.09 | ) | (0.07 | ) | (0.01 | ) | |||||||||||||||||
Distributions from net realized gains | - | - | (0.59 | ) | (0.26 | ) | - | ||||||||||||||||||||
Total dividends and distributions | (0.08 | ) | (0.12 | ) | (0.68 | ) | (0.33 | ) | (0.01 | ) | |||||||||||||||||
Net asset value, end of period | $14.27 | $9.72 | $10.84 | $12.08 | $11.16 | ||||||||||||||||||||||
Total Return(c): | 47.88 | % | (9.42 | )% | (4.08 | )% | 11.36 | % | 11.72 | % | |||||||||||||||||
| |||||||||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (000) | $23,675 | $20,814 | $15,360 | $12,182 | $8,426 | ||||||||||||||||||||||
Average net assets (000) | $27,862 | $16,827 | $13,541 | $10,251 | $5,794 | ||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.97 | %(e) | |||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.97 | % | 1.32 | % | 1.54 | % | 1.80 | % | 2.91 | %(e) | |||||||||||||||||
Net investment income (loss) | 0.73 | % | 1.02 | % | 1.03 | % | 0.78 | % | 0.62 | %(e) | |||||||||||||||||
Portfolio turnover rate(f) | 135 | %(g) | 140 | % | 120 | % | 113 | % | 64 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
(g) | The Portfolio turnover rate is calculated in accordance with regulatory requirements and excludes portfolio securities transferred as a result of in-kind transactions. If such transactions were included, the portfolio turnover rate may be higher. |
See Notes to Financial Statements. |
166
PGIM QMA US Broad Market Index Fund
Financial Highlights
Class R6 Shares | |||||||||||||||||||||||||||
Year Ended July 31, | November 17, 2016(a) through July 31, 2017 | ||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.80 | $13.60 | $12.99 | $11.36 | $10.00 | ||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.22 | 0.23 | 0.23 | 0.20 | 0.12 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 5.15 | 1.22 | 0.64 | 1.61 | 1.26 | ||||||||||||||||||||||
Total from investment operations | 5.37 | 1.45 | 0.87 | 1.81 | 1.38 | ||||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.23 | ) | (0.19 | ) | (0.14 | ) | (0.02 | ) | |||||||||||||||||
Distributions from net realized gains | (0.11 | ) | (0.02 | ) | (0.07 | ) | (0.04 | ) | - | ||||||||||||||||||
Total dividends and distributions | (0.32 | ) | (0.25 | ) | (0.26 | ) | (0.18 | ) | (0.02 | ) | |||||||||||||||||
Net asset value, end of period | $19.85 | $14.80 | $13.60 | $12.99 | $11.36 | ||||||||||||||||||||||
Total Return(c): | 36.70 | % | 10.71 | % | 6.95 | % | 16.05 | % | 13.84 | % | |||||||||||||||||
| |||||||||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (000) | $64,347 | $62,108 | $45,134 | $37,020 | $22,374 | ||||||||||||||||||||||
Average net assets (000) | $72,943 | $49,589 | $40,825 | $29,409 | $12,357 | ||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.26 | %(e) | |||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.38 | % | 0.52 | % | 0.59 | % | 0.65 | % | 1.86 | %(e) | |||||||||||||||||
Net investment income (loss) | 1.27 | % | 1.71 | % | 1.78 | % | 1.64 | % | 1.63 | %(e) | |||||||||||||||||
Portfolio turnover rate(f) | 28 | %(g) | 23 | % | 15 | % | 15 | % | 5 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
(g) | The Portfolio turnover rate is calculated in accordance with regulatory requirements and excludes portfolio securities transferred as a result of in-kind transactions. If such transactions were included, the portfolio turnover rate may be higher. |
See Notes to Financial Statements. |
PGIM Day One Underlying Funds 167
Notes to Financial Statements/Consolidated Financial Statements
1. | Organization |
Prudential Investment Portfolios 2 (“PIP2”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. PIP2 currently 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 Jennison Small-Cap Core Equity Fund, PGIM QMA Emerging Markets Equity Fund, PGIM QMA International Developed Markets Index Fund, PGIM QMA Mid-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 (the “Commodity Strategies Fund”), which is a non-diversified fund for purposes of the 1940 Act. These financial statements (consolidated financial statements for Commodity Strategies Fund) relate only to the PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, Commodity Strategies Fund, PGIM QMA Mid-Cap Core Equity Fund and PGIM QMA US Broad Market Index Fund (each, a “Fund” and collectively, the “Funds”).
The Commodity Strategies Fund wholly owns and controls the PGIM QMA Commodity Strategies Subsidiary, Ltd. (the “Cayman Subsidiary”), a company organized under the laws of the Cayman Islands. The Cayman Subsidiary is not registered as an investment company under the 1940 Act. The consolidated financial statements of the Commodity Strategies Fund include the financial results of the Cayman Subsidiary.
In accordance with the accounting rules relating to reporting of a wholly-owned subsidiary, the Consolidated Schedule of Investments includes positions of the Commodity Strategies Fund and the Cayman Subsidiary. These consolidated financial statements include the accounts of the Commodity Strategies Fund and the Cayman Subsidiary. All significant inter-company balances and transactions between the Commodity Strategies Fund and the Cayman Subsidiary have been eliminated in consolidation. The Commodity Strategies Fund will seek to gain exposure to commodities, commodities-related instruments, derivatives and other investments by directly investing in those instruments or through investments in the Cayman Subsidiary. The Cayman Subsidiary participates in the same investment objective as the Commodity Strategies Fund. The Cayman Subsidiary pursues its investment objective by investing in commodities, commodities-related instruments, derivatives and other investments. The Cayman Subsidiary (unlike the Commodity Strategies Fund) may invest without limitation in these instruments. However, the Cayman Subsidiary is otherwise subject to the same investment restrictions and limitations, and follows the same compliance policies and procedures, as the Commodity Strategies Fund.
The Commodity Strategies Fund’s disclosures and operations are subject to compliance with applicable regulations governing commodity pools in accordance to recent Commodity Futures Trading Commission rule amendments.
168 |
As of July 31, 2021, the Cayman Subsidiary had net assets of $11,086,771, representing 18.0% of the Commodity Strategies Fund’s net assets.
The Funds of PIP2 have the following investment objective(s) and Subadviser(s):
Fund | Investment Objective(s) | Subadviser(s) | ||
PGIM Jennison Small-Cap Core Equity Fund | Outperform the Russell 2000 Index. | Jennison Associates, LLC (“Jennison”)(a wholly-owned subsidiary of PGIM, Inc.) | ||
PGIM Core Conservative Bond Fund | Outperform the Bloomberg U.S. Aggregate Bond Index over full market cycles. | PGIM Limited and PGIM Fixed Income, a business unit of PGIM, Inc. | ||
PGIM TIPS Fund | Outperform the Bloomberg US Treasury Inflation-Protected Index. | PGIM Fixed Income | ||
PGIM QMA Commodity Strategies Fund | Generate returns over time in excess of the Bloomberg Commodity Index. | QMA LLC (“QMA”)(a wholly-owned subsidiary of PGIM, Inc.) | ||
PGIM QMA Mid-Cap Core Equity Fund | Outperform the S&P Mid-Cap 400 Index. | QMA | ||
PGIM QMA US Broad Market Index Fund | Seek to provide investment results that approximate the performance of the S&P Composite 1500 Index. | QMA |
2. | Accounting Policies |
The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Funds consistently follow such policies in the preparation of their financial statements (consolidated financial statements for Commodity Strategies).
Securities Valuation: The Funds hold securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Funds’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. 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 Funds to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the 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. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
PGIM Day One Underlying Funds | 169 |
Notes to Financial Statements/Consolidated Financial Statements
For the fiscal reporting year-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 Funds’ foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Funds’ 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 (Consolidated Schedule of Investments for Commodity Strategies).
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on 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 Funds are valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other than exchange-traded 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
170 |
approach which generally involves obtaining data from an approved independent third-party vendor source. The Funds utilize 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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; 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 Funds 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 Funds are presented at the foreign exchange rates and market values at the close of the period, the Funds do 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 Funds do 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
PGIM Day One Underlying Funds | 171 |
Notes to Financial Statements/Consolidated Financial Statements
currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Funds do isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds’ 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.
Commodities: The Commodity Strategies Fund gains exposure to commodity markets through direct investment of the Commodity Strategies Fund’s assets or through the Cayman Subsidiary. The Commodity Strategies Fund gains exposure to the commodity markets primarily through exchange-traded futures on commodities held by the Cayman Subsidiary. The Commodity Strategies Fund may invest up to 25% of its total assets in the Cayman Subsidiary. The Cayman Subsidiary may invest in commodity investments without limit. The Fund invests in the Cayman Subsidiary in order to gain exposure to commodities within the limitations of the federal tax law requirements applicable to regulated investment companies such as the Fund. The Commodity Strategies Fund may invest directly in commodity-linked structured notes (CLNs). The Commodity Strategies Fund may also gain direct exposure to commodities through direct investment in certain exchange-traded funds (ETFs) whose returns are linked to commodities or commodity indices within the limit of applicable tax law. Commodities are assets that have tangible properties, such as oil, agriculture products and precious metals. The value of commodities may be affected by, among other things, changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargos, tariffs and international economic, political and regulatory developments. These factors may have a larger impact on commodity prices and commodity linked instruments than on traditional securities. Certain commodities are also subject to limited pricing flexibility because of supply and demand factors. Others are subject to broad price fluctuations as a result of the volatility of the prices for certain raw materials and the instability of supplies of other materials. These additional variables may create additional risks which subject the Commodity Strategies Fund’s investments to greater volatility than investments in traditional securities.
172 |
Financial/Commodity Futures Contracts: A 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 futures contract, the Funds are 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 Funds 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 (Consolidated Statement of Operations for Commodity Strategies Fund) as net realized gain (loss) on futures transactions.
The Funds invested in financial and/or commodity futures contracts in order to hedge their existing portfolio securities, or securities the Funds intend to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Funds may not achieve the anticipated benefits of the futures contracts and may realize a loss. The Commodity Strategies Fund invested in commodity futures contracts in order to hedge or gain exposure to commodity markets. 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 Funds since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Master Netting Arrangements: PIP2, on behalf of the Funds, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of a 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 Funds to cover the Funds’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Delayed-Delivery Transactions: Certain Funds purchased or sold securities on a when-issued or delayed-delivery and forward commitment basis. These transactions involve a commitment by the Funds to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, the Funds will set aside and maintain an amount of liquid assets sufficient to meet the purchase price in a segregated account until the settlement date. When purchasing a security on a delayed-delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield
PGIM Day One Underlying Funds | 173 |
Notes to Financial Statements/Consolidated Financial Statements
fluctuations, and takes such fluctuations into account when determining its net asset value. The Funds may dispose of or renegotiate a delayed-delivery transaction subsequent to establishment, and may sell when-issued securities before they are delivered, which may result in a realized gain (loss). When selling a security on a delayed-delivery basis, the Funds forfeit their eligibility to realize future gains (losses) with respect to the security.
Securities Lending: The Funds lend their 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. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Mortgage Dollar Rolls: Certain Funds entered into mortgage dollar rolls in which the Funds sell mortgage securities for delivery in the current month, realizing a gain (loss), and simultaneously enter into contracts to repurchase somewhat similar (same type, coupon and maturity) securities on a specified future date. During the roll period, the Funds forgo principal and interest paid on the securities. The Funds are compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. The difference between the sale proceeds and the lower repurchase price is recorded as a realized gain on investment transactions. The Funds maintain a segregated account, the dollar value of which is at least equal to its obligations, with respect to dollar
174 |
rolls. The Funds are subject to the risk that the market value of the securities the Funds are obligated to repurchase under the agreement may decline below the repurchase price.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): Certain Funds invested in REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Funds become 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 each 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: PGIM Core Conservative Bond Fund and PGIM TIPS Fund declare daily dividends from net investment income and payment is made monthly. Distributions of net realized capital and currency gains, if any, are made annually. PGIM Jennison Small-Cap Core Equity Fund, PGIM QMA Commodity Strategies Fund, PGIM QMA Mid-Cap Core Equity Fund and PGIM QMA US Broad Market Index Fund expect 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 GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements (consolidated financial statements for Commodity Strategies Fund) 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.
PGIM Day One Underlying Funds | 175 |
Notes to Financial Statements/Consolidated Financial Statements
3. | Agreements |
PIP2, on behalf of the Funds, 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. At July 31, 2021, PGIM Investments has engaged the firms referenced in Note 1 as Subadvisers for their respective Funds.
The management fee payable to the Manager is accrued daily and payable monthly at an annual rate of the Funds’ average daily net assets specified below and PGIM Investments, in turn, pays each subadviser a fee for its services.
Fund | Management Fee | Effective Management Fee, net of waiver and/ or expense reimbursement | Fee Waiver and/or Expense Limitations through November 30, 2022 | |||||||||
PGIM Jennison Small-Cap Core Equity Fund | 0.75% | 0.51% | contractually limit expenses to 0.95% | |||||||||
PGIM Core Conservative Bond Fund | 0.27 | 0.22 | contractually limit expenses to 0.50% | |||||||||
PGIM TIPS Fund | 0.23 | 0.22 | contractually limit expenses to 0.40% | |||||||||
PGIM QMA Commodity Strategies Fund | 0.47* | 0.40 | contractually limit expenses to 0.70%* | |||||||||
PGIM QMA Mid-Cap Core Equity Fund | 0.50 | 0.38 | contractually limit expenses to 0.80%** | |||||||||
PGIM QMA US Broad Market Index Fund | 0.18 | —# | contractually limit expenses to 0.20% |
# | The management fee amount waived and/or expense reimbursement exceeds the management fee for the current period due to expense limitations described above. |
* | The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.40% of the Fund’s average daily net assets. The Cayman Subsidiary has entered into a separate management agreement with the Manager whereby the Manager provides advisory and other services to the Cayman Subsidiary substantially similar to the services provided by the Manager to the Fund as discussed above. In consideration for these services, the Cayman Subsidiary pays the Manager a monthly fee at the annual rate of 0.40% of the Cayman Subsidiary’s average daily net assets. The consolidated management fee rate includes the Cayman Subsidiary. The Manager has contractually agreed to waive any management fees it receives for the Fund in an amount equal to the management fees paid by the Cayman Subsidiary. This waiver will remain in effect for as long as the Fund remains invested or intends to invest in the Cayman Subsidiary. Effective October 1, 2020, the Manager has contractually agreed to limit expenses to 0.70%. Prior to October 1, 2020, the Manager had contractually agreed to limit expenses to 0.80%. |
** | Effective July 1, 2021, the Manager has contractually agreed to limit expenses to 0.80%. Prior to July 1, 2021, the Manager had contractually agreed to limit expenses to 0.85%. |
PIP2, on behalf of the Funds, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class R6 shares of the Funds. No distribution or service fees are paid to PIMS as distributor of the Class R6 shares of the Funds.
176 |
PGIM Investments, PIMS, PGIM, Inc., PGIM Limited, Jennison and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Funds’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations (Consolidated Statement of Operations for Commodity Strategies Fund) include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Funds may invest their 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. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations (Consolidated Statement of Operations for Commodity Strategies) as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Funds may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the year ended July 31, 2021, no 17a-7 transactions were entered into by the Funds.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the year ended July 31, 2021, were as follows:
Fund | Cost of Purchases | Proceeds from Sales | ||||||||
PGIM Jennison Small-Cap Core Equity Fund | $ | 18,525,472 | $ | 20,785,847 | ||||||
PGIM Core Conservative Bond Fund | 71,299,254 | 68,779,523 | ||||||||
PGIM TIPS Fund | — | — | ||||||||
PGIM QMA Commodity Strategies Fund | — | — | ||||||||
PGIM QMA Mid-Cap Core Equity Fund | 37,462,544 | 37,230,840 | ||||||||
PGIM QMA US Broad Market Index Fund | 21,766,125 | 20,066,746 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds and other investments for the year ended July 31, 2021, is presented as follows:
PGIM Day One Underlying Funds | 177 |
Notes to Financial Statements/Consolidated Financial Statements
PGIM Jennison Small-Cap Core Equity Fund:
Value, | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, | Shares, of Year | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) | ||||||||||||||||||||||||||||||
$ | 675,577 | $ | 11,560,373 | $ | 11,263,156 | $ | — | $ | — | $ | 972,794 | 972,794 | $ | 1,362 | ||||||||||||||||
PGIM Institutional Money Market Fund (1)(b)(wa) | ||||||||||||||||||||||||||||||
265,534 | 2,954,190 | 3,004,963 | (438) | 251 | 214,574 | 214,702 | 400 | (2) | ||||||||||||||||||||||
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$ | 941,111 | $ | 14,514,563 | $ | 14,268,119 | $ | (438) | $ | 251 | $ | 1,187,368 | $ | 1,762 | |||||||||||||||||
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PGIM Core Conservative Bond Fund:
Value, | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, | Shares, of Year | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wb) | ||||||||||||||||||||||||||||||
$ | 5,017,604 | $ | 33,778,912 | $ | 35,940,901 | $ | — | $ | — | $ | 2,855,615 | 2,855,615 | $ | 8,351 | ||||||||||||||||
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PGIM TIPS Fund:
Value, | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, | Shares, | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wb) | ||||||||||||||||||||||||||||||
$ | 776,742 | $ | 34,177,647 | $ | 33,233,802 | $ | — | $ | — | $ | 1,720,587 | 1,720,587 | $ | 1,179 | ||||||||||||||||
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PGIM QMA Commodity Strategies Fund:
Value, | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, | Shares, | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(bb)(wb) | ||||||||||||||||||||||||||||||
$ | — | $ | 80,516,578 | $ | 70,346,693 | $ | — | $ | — | $ | 10,169,885 | 10,169,885 | $ | 13,357 | ||||||||||||||||
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178 |
PGIM QMA Mid-Cap Core Equity Fund:
Value, | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, | Shares, of Year | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) | ||||||||||||||||||||||||||||||
$ | 43,980 | $ | 12,255,339 | $ | 12,190,911 | $ | — | $ | — | $ | 108,408 | 108,408 | $ | 295 | ||||||||||||||||
PGIM Institutional Money Market Fund (1)(b)(wa) | ||||||||||||||||||||||||||||||
— | 531,002 | 530,923 | — | (79) | — | — | 46 | (2) | ||||||||||||||||||||||
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$ | 43,980 | $ | 12,786,341 | $ | 12,721,834 | $ | — | $ | (79) | $ | 108,408 | $ | 341 | |||||||||||||||||
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PGIM QMA US Broad Market Index Fund:
Value, | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, | Shares, of Year | Dividend | |||||||||||||||||||||||
Long-Term Investments - Common Stock: | ||||||||||||||||||||||||||||||
Prudential Financial, Inc.(g) | ||||||||||||||||||||||||||||||
$ | 48,795 | $ | 12,561 | $ | 30,499 | $ | 33,591 | $ | (3,177) | $ | 61,271 | 611 | $ | 3,542 | ||||||||||||||||
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Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) | ||||||||||||||||||||||||||||||
2,241,935 | 23,813,013 | 25,470,120 | — | — | 584,828 | 584,828 | 3,736 | |||||||||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) | ||||||||||||||||||||||||||||||
200 | 4,722,765 | 4,065,258 | (78) | (186) | 657,443 | 657,838 | 335 | (2) | ||||||||||||||||||||||
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$ | 2,242,135 | $ | 28,535,778 | $ | 29,535,378 | $ | (78) | $ | (186) | $ | 1,242,271 | $ | 4,071 | |||||||||||||||||
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$ | 2,290,930 | $ | 28,548,339 | $ | 29,565,877 | $ | 33,513 | $ | (3,363) | $ | 1,303,542 | $ | 7,613 | |||||||||||||||||
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(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(bb) | Represents security, or a portion thereof, held in the Cayman Subsidiary. (g) An affiliated security. |
(wa) | 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, if applicable. |
(wb) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
6. Distributions and Tax Information
Distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. In order to present total distributable earnings (loss) and paid-in capital in excess of par on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to total distributable earnings (loss) and paid-in capital in excess of par for the Funds indicated below.
PGIM Day One Underlying Funds | 179 |
Notes to Financial Statements/Consolidated Financial Statements
For the year ended July 31, 2021, the adjustments were as follows:
Fund | Total Distributable Earnings (Loss) | Paid-in Capital in Excess of Par | ||||||||
PGIM QMA Mid-Cap Core Equity Fund (a) | $ (792,088) | $ 792,088 | ||||||||
PGIM QMA US Broad Market Index Fund (a) | (2,691,072) | 2,691,072 |
(a) due to differences in the treatment for the book and tax purposes of
redemption in-kind
Net investment income or loss, net realized gains or losses on investment transactions and net assets were not affected by these adjustments.
For the year ended July 31, 2021, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
Fund | Ordinary | Long Term Capital Gains | Total Dividends and Distributions | ||||||||||||
PGIM Jennison Small-Cap Core Equity Fund | $ | 622,633 | $460,451 | $1,083,084 | |||||||||||
PGIM Core Conservative Bond Fund | 1,347,269 | 464,881 | 1,812,150 | ||||||||||||
PGIM TIPS Fund | 3,416,262 | 676,229 | 4,092,491 | ||||||||||||
PGIM QMA Commodity Strategies Fund | — | — | — | ||||||||||||
PGIM QMA Mid-Cap Core Equity Fund | 184,245 | — | 184,245 | ||||||||||||
PGIM QMA US Broad Market Index Fund | 1,150,866 | 248,825 | 1,399,691 |
For the year ended July 31, 2020, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
Fund | Ordinary | Long Term Capital Gains | Tax Return of Capital | Total Dividends and Distributions | ||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund | $ | — | $ | — | $ | — | $ | — | ||||||||||||
PGIM Core Conservative Bond Fund | 1,252,954 | — | — | 1,252,954 | ||||||||||||||||
PGIM TIPS Fund | 452,976 | 97,873 | — | 550,849 | ||||||||||||||||
PGIM QMA Commodity Strategies Fund | 227,598 | — | 6,154 | 233,752 | ||||||||||||||||
PGIM QMA Mid-Cap Core Equity Fund | 170,308 | — | — | 170,308 | ||||||||||||||||
PGIM QMA US Broad Market Index Fund | 822,301 | 29,067 | — | 851,368 |
For the year ended July 31, 2021, the Funds had the following amounts of accumulated undistributed earnings on a tax basis:
Fund | Undistributed | Undistributed | ||||||||
PGIM Jennison Small-Cap Core Equity Fund | $ | 2,827,521 | $ | 2,935,061 | ||||||
PGIM Core Conservative Bond Fund | — | 138,674 | ||||||||
PGIM TIPS Fund | 561,755 | 715,335 | ||||||||
PGIM QMA Commodity Strategies Fund | 19,687,216 | — |
180 |
Fund | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | ||||||||
PGIM QMA Mid-Cap Core Equity Fund | $2,218,723 | $ | 795,306 | |||||||
PGIM QMA US Broad Market Index Fund | 997,714 | 2,375,749 |
The United States federal income tax basis of the Funds’ investments and the net unrealized appreciation/(depreciation) as of July 31, 2021 were as follows:
Fund | Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
PGIM Jennison Small-Cap Core Equity Fund | $ | 23,582,344 | $ | 10,435,843 | $ | (740,405 | ) | $ | 9,695,438 | |||||||||||
PGIM Core Conservative Bond Fund | 62,446,749 | 2,242,980 | (482,068 | ) | 1,760,912 | |||||||||||||||
PGIM TIPS Fund | 80,844,244 | 4,640,649 | (1,165,727 | ) | 3,474,922 | |||||||||||||||
PGIM QMA Commodity Strategies Fund | 68,830,362 | 8,090,488 | (12,923,106 | ) | (4,832,618 | ) | ||||||||||||||
PGIM QMA Mid-Cap Core Equity Fund | 18,581,359 | 5,899,181 | (397,982 | ) | 5,501,199 | |||||||||||||||
PGIM QMA US Broad Market Index Fund | 36,731,582 | 30,087,207 | (1,793,301 | ) | 28,293,906 |
The difference between GAAP and tax basis was primarily attributable to deferred losses on wash sales, amortization of premiums, tax treatment of the investment in the Subsidiary and other book to tax differences.
For federal income tax purposes, the following Funds had a capital loss carryforward as of July 31, 2021 which can be carried forward for an unlimited period. The PGIM Jennison Small Cap Core Equity Fund and PGIM QMA Mid-Cap Core Equity Fund utilized approximately $427,000 and $1,984,000, respectively, of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended July 31, 2021. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
Capital Loss Carryforward | |||||
PGIM QMA Commodity Strategies Fund | $5,000 |
The Manager has analyzed the Funds’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements (consolidated financial statements for Commodity Strategies Fund) for the current reporting period. Since tax authorities can examine previously filed tax returns, the Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended July 31, 2021 are subject to
PGIM Day One Underlying Funds | 181 |
Notes to Financial Statements/Consolidated Financial Statements
such review.
7. Capital and Ownership
The Funds offer 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 an unlimited number of shares of beneficial interest at $0.001 par value per share.
As of July 31, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Funds as follows:
Fund | Number of Shares | Percentage of Outstanding Shares | ||
PGIM Jennison Small-Cap Core Equity Fund–Class R6 | 1,685,898 | 100.0% | ||
PGIM Core Conservative Bond Fund–Class R6 | 6,039,815 | 100.0 | ||
PGIM TIPS Fund–Class R6 | 7,739,319 | 100.0 | ||
PGIM QMA Commodity Strategies Fund–Class R6 | 5,136,639 | 100.0 | ||
PGIM QMA Mid-Cap Core Equity Fund–Class R6 | 1,659,057 | 100.0 | ||
PGIM QMA US Broad Market Index Fund–Class R6 | 3,241,581 | 100.0 |
At the reporting period end, the number of shareholders holding greater than 5% of the Funds are as follows:
Affiliated | Unaffiliated | |||||||
Fund | Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | ||||
PGIM Jennison Small-Cap Core Equity Fund | 3 | 77.7% | — | —% | ||||
PGIM Core Conservative Bond Fund | 6 | 90.3 | — | — | ||||
PGIM TIPS Fund | 6 | 89.1 | — | — | ||||
PGIM QMA Commodity Strategies Fund | 5 | 83.5 | — | — | ||||
PGIM QMA Mid-Cap Core Equity Fund | 8 | 93.4 | — | — | ||||
PGIM QMA US Broad Market Index Fund | 7 | 88.8 | — | — |
182 |
Transactions in shares of beneficial interest were as follows:
PGIM Jennison Small-Cap Core Equity Fund:
Class R6 | Shares | Amount | ||||||
Year ended July 31, 2021: | ||||||||
Shares sold | 324,110 | $ | 5,375,200 | |||||
Shares issued in reinvestment of dividends and distributions | 67,106 | 1,083,084 | ||||||
Shares purchased | (423,395 | ) | (7,190,963 | ) | ||||
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Net increase (decrease) in shares outstanding | (32,179 | ) | $ | (732,679 | ) | |||
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Year ended July 31, 2020: | ||||||||
Shares sold | 650,650 | $ | 6,847,970 | |||||
Shares purchased | (402,830 | ) | (4,069,959 | ) | ||||
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Net increase (decrease) in shares outstanding | 247,820 | $ | 2,778,011 | |||||
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PGIM Core Conservative Bond Fund: | ||||||||
Class R6 | Shares | Amount | ||||||
Year ended July 31, 2021: | ||||||||
Shares sold | 2,029,244 | $ | 21,288,669 | |||||
Shares issued in reinvestment of dividends and distributions | 172,801 | 1,812,150 | ||||||
Shares purchased | (1,524,509 | ) | (15,898,690 | ) | ||||
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Net increase (decrease) in shares outstanding | 677,536 | $ | 7,202,129 | |||||
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Year ended July 31, 2020: | ||||||||
Shares sold | 1,939,352 | $ | 20,298,716 | |||||
Shares issued in reinvestment of dividends and distributions | 119,325 | 1,246,574 | ||||||
Shares purchased | (1,329,477 | ) | (13,859,437 | ) | ||||
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Net increase (decrease) in shares outstanding | 729,200 | $ | 7,685,853 | |||||
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PGIM TIPS Fund: | ||||||||
Class R6 | Shares | Amount | ||||||
Year ended July 31, 2021: | ||||||||
Shares sold | 5,902,790 | $ | 62,803,571 | |||||
Shares issued in reinvestment of dividends and distributions | 384,148 | 4,092,491 | ||||||
Shares purchased | (3,114,032 | ) | (33,100,869 | ) | ||||
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Net increase (decrease) in shares outstanding | 3,172,906 | $ | 33,795,193 | |||||
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Year ended July 31, 2020: | ||||||||
Shares sold | 3,419,169 | $ | 34,833,583 | |||||
Shares issued in reinvestment of dividends and distributions | 54,785 | 550,849 | ||||||
Shares purchased | (2,550,112 | ) | (25,704,948 | ) | ||||
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Net increase (decrease) in shares outstanding | 923,842 | $ | 9,679,484 | |||||
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PGIM Day One Underlying Funds | 183 |
Notes to Financial Statements/Consolidated Financial Statements
PGIM QMA Commodity Strategies Fund: | ||||||||
Class R6 | Shares | Amount | ||||||
Year ended July 31, 2021: | ||||||||
Shares sold | 1,963,338 | $ | 18,968,112 | |||||
Shares purchased | (1,447,353 | ) | (15,391,089 | ) | ||||
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Net increase (decrease) in shares outstanding | 515,985 | $ | 3,577,023 | |||||
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Year ended July 31, 2020: | ||||||||
Shares sold | 3,540,207 | $ | 30,076,283 | |||||
Shares issued in reinvestment of dividends and distributions | 24,299 | 233,752 | ||||||
Shares purchased | (1,180,963 | ) | (9,411,703 | ) | ||||
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Net increase (decrease) in shares outstanding | 2,383,543 | $ | 20,898,332 | |||||
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PGIM QMA Mid-Cap Core Equity Fund: | ||||||||
Class R6 | Shares | Amount | ||||||
Year ended July 31, 2021: | ||||||||
Shares sold | 1,017,657 | $ | 12,246,219 | |||||
Shares issued in reinvestment of dividends and distributions | 16,119 | 184,245 | ||||||
Shares purchased | (1,515,726 | ) | (19,947,084 | ) | ||||
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Net increase (decrease) in shares outstanding | (481,950 | ) | $ | (7,516,620 | ) | |||
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Year ended July 31, 2020: | ||||||||
Shares sold | 1,594,642 | $ | 14,514,549 | |||||
Shares issued in reinvestment of dividends and distributions | 15,032 | 170,308 | ||||||
Shares purchased | (886,100 | ) | (7,792,793 | ) | ||||
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Net increase (decrease) in shares outstanding | 723,574 | $ | 6,892,064 | |||||
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PGIM QMA US Broad Market Index Fund: | ||||||||
Class R6 | Shares | Amount | ||||||
Year ended July 31, 2021: | ||||||||
Shares sold | 1,514,696 | $ | 25,527,000 | |||||
Shares issued in reinvestment of dividends and distributions | 85,087 | 1,399,691 | ||||||
Shares purchased | (2,555,612 | ) | (46,910,910 | ) | ||||
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Net increase (decrease) in shares outstanding | (955,829 | ) | $ | (19,984,219 | ) | |||
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Year ended July 31, 2020: | ||||||||
Shares sold | 2,180,023 | $ | 29,074,039 | |||||
Shares issued in reinvestment of dividends and distributions | 59,620 | 851,368 | ||||||
Shares purchased | (1,360,639 | ) | (17,490,670 | ) | ||||
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Net increase (decrease) in shares outstanding | 879,004 | $ | 12,434,737 | |||||
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8. | Borrowings |
PIP2, on behalf of the Funds, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary
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funding for capital share redemptions. The table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
Current SCA | Prior SCA | |||
Term of Commitment | 10/2/2020 – 9/30/2021 | 10/3/2019 – 10/1/2020 | ||
Total Commitment | $1,200,000,000 | $1,222,500,000* | ||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent | 1.20% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent | ||
* Effective March 31, 2020, the SCA’s total commitment was increased from $900,000,000 to $1,162,500,000 and subsequently, effective April 7, 2020 was increased to $1,222,500,000. |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Funds utilized the SCA during the year ended July 31, 2021. The average balance outstanding is for the number of days the Funds utilized the credit facility.
Fund | Average Balance Outstanding | Weighted Average Interest Rates | Number of Days Outstanding | Maximum Balance Outstanding | Balance Outstanding at July 31, 2021 | |||||||||||
PGIM Core Conservative Bond Fund | $ | 795,000 | 1.40% | 1 | $ 795,000 | $— | ||||||||||
PGIM TIPS Fund | 1,084,200 | 1.39 | 15 | 5,786,000 | — | |||||||||||
PGIM QMA Mid-Cap Core Equity Fund | 251,765 | 1.41 | 34 | 2,148,000 | — | |||||||||||
PGIM QMA US Broad Market Index Fund | 4,392,200 | 1.40 | 5 | 5,656,000 | — |
9. | Purchases & Redemption In-kind |
On September 15, 2020, the Board approved changes which would change the way an affiliated mutual fund within the PGIM Retail Mutual Fund Complex (“PGIM Real Assets Fund”), obtained exposure to certain asset classes from direct investments in a particular asset class to investing in an applicable PGIM Retail Mutual Fund (the “Underlying Fund”) that invests in the same asset class utilizing a substantially similar investment strategy.
As of the close of business on October 23, 2020, the PGIM Real Assets Fund delivered portfolio securities and other assets to the PGIM TIPS Fund in exchange for Class R6 shares.
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The following table is a summary of the value of such securities and other assets of PGIM Real Assets Fund that were transferred in-kind and the Class R6 shares of PGIM TIPS Fund purchased in-kind:
PGIM Real Assets Fund Sleeve | Market Value of Net Assets Received | Applicable Underlying Fund | Applicable Class R6 Shares of the Underlying Fund Transferred | |||
TIPS | $26,442,173 | PGIM TIPS Fund | 2,485,167 |
The dollar amount of in-kind shares is included with net proceeds from the Class R6 shares sold on the Statement of Changes in Net Assets. The share amount of in-kind shares is included within shares sold for Class R6 in Note 7.
For U.S. GAAP purposes, the securities and other assets transferred were recorded at fair value, but the historical cost basis of the assets transferred was not carried forward to the Underlying Fund.
The PGIM QMA US Broad Market Index Fund and PGIM QMA Mid-Cap Core Equity Fund each settled the redemption of fund shares by delivering to an affiliate portfolio securities and other assets as of the close of business on April 23, 2021 and July 23, 2021, respectively. The value of such securities and other assets that were transferred in-kind was $20,413,105 and $7,851,483, respectively.
In-kind redemption gains and losses are excluded in the calculation of taxable gain (loss) for federal income tax purposes for the PGIM QMA US Broad Market Index Fund and PGIM QMA Mid-Cap Core Equity Fund.
10. | Risks of Investing in the Funds |
The Funds’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the risks applicable to any given Fund, please refer to the Prospectus and Statement of Additional Information of that Fund.
Active Trading Risk: A Fund actively and frequently trades its portfolio securities. High portfolio turnover involves correspondingly greater brokerage commissions and other transaction costs, which are borne directly by a Fund; which can affect the Fund’s performance and have adverse tax consequences. In addition, high portfolio turnover may also mean that a proportionately greater amount of distributions to shareholders will be taxed as ordinary income rather than long-term capital gains compared to investment companies with lower portfolio turnover.
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Blend Style Risk: A Fund’s blend investment style may subject a Fund to risks of both value and growth investing. The portion of a Fund’s portfolio that makes investments pursuant to a growth strategy may be subject to above-average fluctuations as a result of seeking higher than average capital growth. The portion of a Fund’s portfolio that makes investments pursuant to a value strategy may be subject to the risk that the market may not recognize a security’s intrinsic value for long periods of time or that a stock judged to be undervalued may actually be appropriately priced. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. If a Fund’s assessment of market conditions or a company’s value is inaccurate, a Fund could suffer losses or produce poor performance relative to other funds. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Therefore, both styles may over time go in and out of favor with the markets. At times when a style is out of favor, that portion of the portfolio may lag the other portion of the portfolio, which may cause a Fund to underperform the market in general, its benchmark and other mutual funds. Growth and value stocks have historically produced similar long-term results, though each category has periods when it outperforms the other.
Bond Obligations Risk: As with credit risk, market risk and interest rate risk, a Fund’s holdings, share price, yield and total return may fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by a Fund for redemption before it matures and a Fund may lose income.
Cayman Subsidiary Risk: By investing in the Cayman Subsidiary, the Fund is indirectly exposed to the risks associated with the Cayman Subsidiary’s investments. The Cayman Subsidiary is not registered as an investment company under the 1940 Act, and, unless otherwise noted in this Prospectus, is not subject to all the investor protections of the 1940 Act. The Fund has received a private letter ruling from the Internal Revenue Service (the IRS) stating that income derived from the Fund’s investment in the Cayman Subsidiary will be considered qualifying regulated investment company (RIC) income for tax purposes. Final tax regulations, on which taxpayers may rely for taxable years beginning after September 28, 2016, also support this result. Changes in the laws of the Cayman Islands, under which the Cayman Subsidiary is incorporated, could result in the inability of the Fund to effect its desired gold/defensive investment strategy.
Commodity Risk: The values of commodities are affected by events that might have less impact on the value of stocks and bonds. Such investments may be speculative. Prices of commodities and related contracts may fluctuate significantly over short periods for a variety of reasons, including weather, crop or livestock disease, investment speculation, resource availability, fluctuations in industrial and commercial supply and demand, US agricultural, fiscal, monetary and exchange control programs, embargoes, tariffs, and international
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political, economic, military and regulatory developments. These risks may subject a Fund to greater volatility than investments in traditional instruments or securities.
Commodity-Linked Notes Risk: A Fund may invest in leveraged or unleveraged commodity-linked notes (CLNs) to gain exposure to the commodities markets. CLNs are subject to counterparty risk. The value of the CLNs may fluctuate significantly because the values of the investments to which they are linked are volatile. In addition, the terms of a CLN may create economic leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index or other economic variable. Economic leverage increases the volatility of CLNs and their value may increase or decrease more quickly than the value of the underlying commodity, commodity index or other economic variable.
Commodity Pooled Investment Vehicles Risk: A Fund may, from time to time, invest in certain publicly-traded commodity pools, such as commodity ETFs. Such pools may not meet the definition of an “investment company” under the 1940 Act, and may not be registered under the 1940 Act. As a consequence, a Fund’s investment in such entities may not be subject to certain protections afforded by the 1940 Act, including, for example, restrictions under the 1940 Act on investments in other investment companies. ETFs that invest in commodities may be, or may become subject to, CFTC trading regulations that limit the amount of commodity contracts an ETF may hold. Such regulations could hurt the value of such ETFs’ securities. Additionally, some commodity ETFs invest in commodity futures which can lose money even when commodity prices are rising.
Commodity Regulatory Risk: A Fund and its Cayman Subsidiary is deemed a “commodity pool” and the Manager is considered a “commodity pool operator” with respect to that Fund and that Cayman Subsidiary under the Commodity Exchange Act. The Manager, directly or through its affiliates, is therefore subject to dual regulation by the SEC and the CFTC. The regulatory requirements governing the use of commodity futures (which include futures on broad-based securities indexes, interest rate futures and currency futures), options on commodity futures, certain swaps or certain other investments could change at any time.
Concentration Risk: A Fund will be exposed to the performance of commodities in the Index, which may from time to time have a small number of commodity sectors (e.g., energy, metals or agricultural) representing a large portion of the Index. As a result, a Fund may be subject to greater volatility than if the Index were more broadly diversified among commodity sectors.
Credit Risk/Counterparty Risk: The ability, or perceived ability, of the issuer or guarantor of a debt security, or the counterparty (the party on the other side of the transaction) to a derivatives contract or other financial contract to meet its financial obligations will affect the
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value of the security or derivative. Counterparty and credit risk are especially important in the context of privately negotiated instruments. A Fund expects to enter into certain privately negotiated agreements where the counterparty assumes the physical settlement obligations of a Fund under such transactions. Under this type of arrangement, there is a risk that the relevant counterparty or intermediary would, due to insolvency or other reasons, be unable to or fail to assume the physical settlement obligations of a Fund, in which case a Fund could be required to sell portfolio instruments at unfavorable times or prices or could have insufficient assets to satisfy its physical settlement obligations.
Credit ratings are intended to provide a measure of credit risk. However, credit ratings are only the opinions of the credit rating agency issuing the ratings and are not guarantees as to quality. The lower the rating of a debt security held by a Fund, the greater the degree of credit risk that is perceived to exist by the credit rating agency with respect to that security. Increasing the amount of Fund assets allocated to lower-rated securities generally will increase the credit risk to which a Fund is subject. Not all securities in which a Fund invests are rated. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.
Deflation Risk: Since a Fund makes investments that may perform well in periods of rising inflation, during periods of no inflation or deflation an investment in a Fund may underperform broad market measures and may lose value.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to a Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, a 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 a Fund. A Fund’s use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for a Fund’s derivatives positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to a Fund.
The US Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements and risk exposure limitations. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance or disrupt markets.
Economic and Market Events Risk: Events in the US and global financial markets, including actions taken by the US Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in
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unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which a Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Exchange-Traded Funds (ETFs) Risk: Investing in securities issued by ETFs involves risks similar to those of investing directly in the securities and other assets held by the ETF. Unlike shares of typical mutual funds, shares of ETFs are generally traded on an exchange throughout a trading day and bought and sold based on market values and not at net asset value. For this reason, shares could trade at either a premium or discount to net asset value, which may be substantial during periods of market stress. The trading price of an index-based ETF is expected to (but may not) closely track the net asset value of the ETF, and a Fund will generally gain or lose value consistent with the performance of the ETF’s portfolio securities. A Fund will pay brokerage commissions in connection with the purchase and sale of shares of ETFs. In addition, a Fund will indirectly bear its pro rata share of the fees and expenses incurred by an ETF (including ETFs managed by the Manager or the subadviser(s)) in which they invest, including advisory fees (to the extent not offset by the Manager through waivers). These expenses are in addition to the advisory and other expenses that a Fund bears directly in connection with its own operations. An index-based ETF may not replicate exactly the performance of the benchmark index it seeks to track for a number of reasons, including transaction costs incurred by the ETF, the temporary unavailability of certain index securities in the secondary market or discrepancies between the ETF and the index with respect to the weighting of securities or the number of securities held. Investments in ETFs are subject to the risk that the listing exchange may halt trading of an ETF’s shares, in which case a Fund would be unable to sell its ETF shares unless and until trading is resumed.
Foreign Securities Risk: Investments in securities of non-US issuers (including those denominated in US dollars) generally involve more risk than investing in securities of US issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the US. Foreign legal systems generally have fewer regulatory requirements than the US legal system. In general, less information is publicly available about non-US companies than about US companies. Non-US companies generally are not subject to the same accounting, auditing, and financial reporting standards as are US companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets a
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Fund holds and a Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines. In addition, a Fund’s investments in non-US securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-US currency, confiscatory taxation and adverse diplomatic developments. Special US tax considerations may apply.
Fund of Funds Risk: A Fund is an investment option for other PGIM Investments-advised mutual funds that are managed as “funds of funds.” As a result, from time to time, a Fund may experience relatively large redemptions and could be required to liquidate its assets at inopportune times or at a loss or depressed value, which could cause the value of your investment to decline.
Futures and Forward Contracts Risk: The primary risks associated with the use of futures or forward contracts are (a) the imperfect correlation between the change in market value of the instruments held by a Fund and the price of the corresponding underlying commodities; (b) possible lack of a liquid secondary market for a futures or forward contract and the resulting inability to close a futures or forward contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the failure to predict correctly the direction of commodities prices, interest rates, currency exchange rates, supply and demand relationships, weather, agricultural, trade, fiscal, monetary and exchange control programs, political events, and other economic factors; and (e) the possibility that the clearing broker for the futures or forward contract will default in the performance of its obligations.
Government and Agency Securities Risk: Government and agency securities are subject to market risk, interest rate risk and credit risk. In addition, to the extent a Fund invests in such securities, either directly or through the Cayman Subsidiary, its potential for capital appreciation may be limited. Not all government securities are insured or guaranteed by the government; some are only insured or guaranteed by the issuing agency, which must rely on its own resources to repay the debt. The maximum potential liability of the issuers of some US Government securities held by a Fund or the Cayman Subsidiary may greatly exceed their current resources, including their legal right to support from the US Treasury. It is possible that these issuers will not have the funds to meet their payment obligations in the future. Although the US Government has provided support to Fannie Mae and Freddie Mac, there can be no assurance that it will support these or other government-sponsored enterprises in the future.
Growth Style Risk: A Fund’s growth style may subject a Fund to above-average fluctuations as a result of seeking higher than average capital growth. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Since a Fund follows a growth investment style, there is the risk that the growth investment style may be out of favor for a period of time. At
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times when the style is out of favor, a Fund may underperform the market in general, its benchmark and other mutual funds.
Hedging Risk: The decision as to whether and to what extent a Fund will engage in hedging transactions to hedge against certain risks, such as market risk and issuer risk, will depend on a number of factors, including prevailing market conditions, the composition of the portfolio of a Fund, and the availability of suitable transactions. Hedging transactions involve costs and may result in losses. There is no guarantee that any of these hedging instruments would work as anticipated, and in certain cases a Fund might be better off had it not used a hedging instrument. There can be no assurance that a Fund will engage in hedging transactions at any given time or from time to time, even under volatile market environments, or that any such strategies, if used, will be successful.
Increase in Expenses Risk: Your actual cost of investing in a Fund may be higher than the expenses shown in the expense table for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Index Investment Approach Risk: When a Fund is passively managed, assets are not allocated from one stock or group of stocks to another based on their prospects, or from stocks into bonds or cash equivalents in an attempt to cushion the impact of a market decline. As a result, a Fund’s performance may be less favorable than that of a portfolio using an active investment strategy. A Fund’s expenses, changes in securities markets, changes in the composition of the Index and the timing of purchases and redemptions of fund shares may affect the correlation between fund and Index performance. A fund may not perform as well as other investments if, among other things, the Index declines or performs poorly relative to other related indexes or individual securities or the securities issued by companies that comprise the Index fall out of favor with investors.
Initial Public Offerings (“IPOs”) Risk: The volume of IPOs and the levels at which the newly issued stocks trade in the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market, availability may be limited and if a Fund desires to acquire shares in such an offering, it may not be able to buy any shares at the offering price, or if it is able to buy shares, it may not be able to buy as many shares at the offering price as it would like. The prices of securities involved in IPOs are often subject to greater and more unpredictable price changes than more established stocks. Such unpredictability can have a dramatic impact on a Fund’s performance (higher or lower) and any assumptions by investors based on the affected performance may be unwarranted. In addition, as Fund assets grow, the impact of IPO investments on performance will decline, which could reduce total returns.
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Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and a Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of a Fund’s holdings may fall sharply. This is referred to as “extension risk.” A Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Large Capitalization Company Risk: Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, a Fund’s value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of a Fund’s shares. There is no requirement that these entities maintain their investment in a Fund. There is a risk that such large shareholders or that a Fund’s shareholders generally may redeem all or a substantial portion of their investments in a Fund in a short period of time, which could have a significant negative impact on a Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact a Fund’s ability to implement its investment strategy. A Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, a Fund may invest a larger portion of its assets in cash or cash equivalents.
LIBOR Risk: Many financial instruments use or may use a floating rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. Over the course of the last several years, global regulators have indicated an intent to phase out the use of LIBOR and similar interbank offering rates (IBOR). There still remains uncertainty regarding the nature of any replacement rates for LIBOR and the other IBORs as well as around fallback approaches for instruments extending beyond the any phase-out of these reference rates. The lack of consensus around replacement rates and the uncertainty of the phase out of LIBOR and other IBORs may result in increased volatility in corporate or governmental debt, bank loans, derivatives and other instruments invested in by a Fund as well as loan facilities used by a Fund.
The potential effect of a transition away from LIBOR on a Fund or the financial instruments in which a Fund invests cannot yet be determined. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities
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or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Certain proposed replacement rates to LIBOR, such as the Secured Overnight Financing Rate (“SOFR”), are materially different from LIBOR, and changes in the applicable spread for instruments previously linked to LIBOR will need to be made in order for instruments to pay similar rates. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to reduced coupons on debt held by a Fund, higher rates required to be paid by a Fund on bank lines of credit due to increases in spreads, increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR and the other IBORs as benchmarks could deteriorate during the transition period, these effects could begin to be experienced by the end of 2021 and beyond until the anticipated discontinuance date in 2023 for the majority of the LIBOR rates.
Liquidity Risk: Liquidity risk is the risk that a Fund could not meet requests to redeem shares issued by a Fund without significant dilution of remaining investors’ interests in a Fund. A Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If a Fund is forced to sell these investments to pay redemption proceeds or for other reasons, a Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, a Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect a Fund’s value or prevent a Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the outbreak of COVID-19 globally in 2020 or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and
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government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on a Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which a Fund invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of a 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 a Fund fall, the value of your investment in a Fund will decline.
Medium Capitalization (Mid-Cap) Company Risk: A Fund’s investments in mid-cap companies carry more risk than investments in larger capitalized companies. Investments in mid-cap companies carry additional risks because earnings of these companies tend to be less predictable; they often have limited product lines, markets, distribution channels or financial resources; and the management of such companies may be dependent on one or a few key people. The market movements of these companies’ securities may be more abrupt or erratic than the market movements of securities of larger, more established companies or the stock market in general. Historically, mid-cap companies have sometimes gone through extended periods when they did not perform as well as larger companies. Mid-cap companies generally are comparatively less liquid than larger companies, which may make such investments more difficult to sell at the time and price that a Fund would like. Also, the stocks of mid-cap companies may fall out of favor relative to those of small- or large-capitalization companies, causing a Fund to underperform other equity funds that focus on small or large-capitalization companies.
Model Design Risk: The subadviser uses certain quantitative models to help guide its investment decisions. The design of the underlying models may be flawed or incomplete. The investment models the subadviser uses are based on historical and theoretical underpinnings that it believes are sound. There can be no guarantee, however, that these underpinnings will correlate with security price behavior in the manner assumed by the subadviser’s models. Additionally, the quantitative techniques that underlie the subadviser’s portfolio construction processes may fail to fully anticipate important risks.
Model Implementation Risk: While the subadviser strives to mitigate the likelihood of material implementation errors, it is impossible to completely eliminate the risk of error in the implementation of the computer models that guide the subadviser’s quantitative
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investment processes. Additionally, it may be difficult to implement model recommendations in volatile and rapidly changing market conditions.
Mortgage-Backed and Asset-Backed Securities Risk: Mortgage-backed and asset-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar risk of decline in market value during periods of rising interest rates. The values of mortgage-backed and asset-backed securities become more volatile as interest rates rise. In a period of declining interest rates, a Fund may be required to reinvest more frequent prepayments on mortgage-backed and asset-backed securities in lower-yielding investments.
Non-Diversified Investment Company Risk: A Fund that is non-diversified for purposes of the 1940 Act may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified Fund. Investing in a non-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 a non-diversified Fund.
Preferred Securities Risk: Preferred stock can experience sharp declines in value over short or extended periods of time, regardless of the success or failure of a company’s operations. As with call provisions, a redemption by the issuer may negatively impact the return of the security held by a Fund. Preferred stockholders’ liquidation rights are subordinate to the company’s debt holders and creditors. If interest rates rise, the fixed dividend on preferred stocks may be less attractive and the price of preferred stocks may decline. Preferred stock usually does not require the issuer to pay dividends and may permit the issuer to defer dividend payments. Preferred securities also may be substantially less liquid than many other securities, such as common stock or US Government securities.
Prepayment Risk: A Fund may invest in mortgage-related securities and asset-backed securities, which are subject to prepayment risk. If these securities are prepaid, a Fund may have to replace them with lower-yielding securities. Stripped mortgage-backed securities are generally more sensitive to changes in prepayment and interest rates than other mortgage-related securities. Unlike mortgage-related securities, asset-backed securities are usually not collateralized. If the issuer of a non-collateralized debt security defaults on the obligation, there is no collateral that the security holder may sell to satisfy the debt.
Real Estate Investment Trust (REIT) Risk: Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management skills, may not be diversified geographically or by
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property/mortgage asset type, and are subject to heavy cash flow dependency, default by borrowers and self-liquidation. REITs may be more volatile and/or more illiquid than other types of equity securities. REITs (especially mortgage REITs) are subject to interest rate risks. REITs may incur significant amounts of leverage. A Fund will indirectly bear a portion of the expenses, including management fees, paid by each REIT in which it invests, in addition to the expenses of a Fund.
REITs must also meet certain requirements under the Internal Revenue Code of 1986, as amended (the Code) to avoid entity level tax and be eligible to pass-through certain tax attributes of their income to shareholders. REITs are consequently subject to the risk of failing to meet these requirements for favorable tax treatment and of failing to maintain their exemptions from registration under the Investment Company Act of 1940. REITs are subject to the risks of changes in the Code affecting their tax status.
Because a Fund invests in real estate securities, including REITs, a Fund is subject to the risks of investing in the real estate industry, such as changes in general and local economic conditions, the supply and demand for real estate and changes in zoning and tax laws. Since a Fund concentrates in the real estate industry, its holdings can vary significantly from broad market indexes. As a result, a Fund’s performance can deviate from the performance of such indexes. Because a Fund invests in stocks, there is the risk that the price of a particular stock owned by a Fund could go down or pay lower-than-expected or no dividends. In addition to an individual stock losing value, the value of the equity markets or of companies comprising the real estate industry could go down.
Small and Medium Capitalization Risk: Small and medium capitalization companies usually offer a smaller range of products and services than larger companies. Smaller companies may also have limited financial resources and may lack management expertise. As a result, their prices may fluctuate more than the stocks of larger, more established companies. Historically, small and mid-cap companies have sometimes gone through extended periods when they did not perform as well as larger companies. Small and mid-capitalization companies generally are less liquid than larger companies, which may make such investments more difficult to sell at the time and price that a Fund would like.
Small Company Risk: Small company stocks present above-average risks in comparison to larger companies. Small companies usually offer a smaller range of products and services than larger companies. Smaller companies may also have limited financial resources and may lack management depth. As a result, stocks issued by smaller companies may be comparatively less liquid and fluctuate in value more than the stocks of larger, more established companies.
Tax Risk: To receive pass-through tax treatment as a RIC under the Code, a Fund must, among other things, derive at least 90% of its gross income for each taxable year from sources treated under the Code as “qualifying income.” Based on final regulations on which taxpayers may rely for taxable years beginning after September 28, 2016, a Fund anticipates treating the income generated from investments in the Cayman Subsidiary as
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Notes to Financial Statements/Consolidated Financial Statements
“qualifying income.” However, the tax treatment of income from commodity-related investments and a Fund’s income from the Cayman Subsidiary may be adversely affected by future legislation, US Treasury Regulations, and/or guidance issued by the IRS that could affect the character, timing, and/or amount of a Fund’s taxable income or capital gains and distributions it makes.
TIPS Risk: Inflation-indexed bonds, such as TIPS, generally decline in value when real interest rates rise. Real interest rates represent the nominal (stated) interest rates reduced by the expected impact of inflation. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest rates, TIPS may experience greater losses than other fixed income securities with similar durations. In addition, any increase in principal value of an inflation-indexed bond caused by an increase in the price index is taxable in the year the increase occurs, even though a Fund generally will not receive cash representing the increase at that time. As a result, a Fund could be required at times to liquidate other investments, including when it is not advantageous to do so, in order to satisfy its distribution requirements as a regulated investment company under the Internal Revenue Code. Also, to the extent that a Fund invests in inflation-indexed bonds, income distributions are more likely to fluctuate.
A Fund’s income may decline due to a decline in inflation, also known as deflation. If there is deflation, the principal value of an inflation-linked security will be adjusted downward, and consequently the interest payments (calculated with respect to a smaller principal amount) will be reduced. The principal value can decrease, but not below 100. If inflation is lower than expected during the period a Fund holds an inflation-linked security, a Fund may earn less on the security than on a conventional bond.
Tracking Error Risk: Tracking error is the divergence of a Fund’s performance from that of the Index. Tracking error may occur because of differences between the securities and other instruments held in a Fund’s portfolio and those included in the Index, pricing differences, transaction costs, a Fund’s holding of uninvested cash, differences in timing of the accrual of distributions, tax gains or losses, changes to the Index or the need to meet various new or existing regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because a Fund incurs fees and expenses, while the Index does not.
Trading on Foreign Exchanges Risk: A Fund is expected to trade in commodity forward contracts listed on UK futures exchanges and may, but is not expected to, trade in instruments listed on other exchanges located outside the United States. Some foreign exchanges may be principal markets so that no common clearing facility exists and a trader may look only to the broker for performance of the contract. Trading on US futures exchanges is subject to regulation by the SEC and the Commodity Futures Trading
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Commission (the CFTC) and oversight, as applicable, including, for example, minimum capital requirements for commodity brokers, regulation of trading practices on the exchanges, prohibitions against trading ahead of customer orders, prohibitions against filling orders off exchanges, prescribed risk disclosure statements, testing and licensing of industry sales personnel and other industry professionals, and recordkeeping requirements. Trading on foreign exchanges is not regulated by the SEC, CFTC or any other US governmental agency or instrumentality and may be subject to regulations that are different from those to which US exchange trading is subject, provide less protection to investors than trading on US exchanges, and such regulations may be less vigorously enforced than regulations in the US positions on foreign exchanges also are subject to the risk of exchange controls, expropriation, excessive taxation or government disruptions.
U.S. Government and Agency Securities Risk: U.S. Government and agency securities are subject to market risk, interest rate risk and credit risk. Not all U.S. Government securities are insured or guaranteed by the full faith and credit of the U.S. Government; some are only insured or guaranteed by the issuing agency, which must rely on its own resources to repay the debt. The maximum potential liability of the issuers of some US Government securities held by a Fund may greatly exceed their current resources, including their legal right to support from the US Treasury. No assurance can be given that the U.S. government would provide financial support to any such issuers if it is not obligated to do so by law. It is possible that these issuers will not have the funds to meet their payment obligations in the future. In addition, the value of U.S. Government securities may be affected by changes in the credit rating of the U.S. Government.
US Treasury Strips Risk: Stripped securities do not make periodic interest payments. The value of stripped securities generally fluctuates more in response to interest rate movements than the value of traditional bonds with similar maturity and credit quality. US Treasury strips generally lose value when interest rates rise.
Value Style Risk: Since a Fund follows a value investment style, there is the risk that the value style may be out of favor for long periods of time, that the market will not recognize a security’s intrinsic value for a long time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. In addition, a Fund’s value investment style may go out of favor with investors, negatively affecting a Fund’s performance. If a Fund’s assessment of market conditions or a company’s value is inaccurate, a Fund could suffer losses or produce poor performance relative to other funds.
Zero Coupon Bond Risk: Zero-coupon bonds may experience greater volatility in market value due to changes in interest rates. A Fund accrues income on the discount amortization of these investments, which it is required to distribute each year. A Fund may be required to sell investments to obtain cash needed for income distributions.
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Notes to Financial Statements/Consolidated Financial Statements
11. | Recent Accounting Pronouncement and Regulatory Developments |
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance for applying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective on March 12, 2020 through December 31, 2022. At this time, management is evaluating the implications of certain provisions of the ASU and any impact on the financial statement disclosures has not yet been determined.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Funds.
12. | Subsequent Event |
Effective September 28, 2021, QMA LLC will be changing its name to PGIM Quantitative Solutions LLC. Effective December 29, 2021, the Fund’s name will change as follows:
Old Name | New Name | |
PGIM QMA Commodity Strategies Fund | PGIM Quant Solutions Commodity Strategies Fund | |
PGIM QMA Mid Cap Core Equity Fund | PGIM Quant Solutions Mid Cap Core Fund | |
PGIM QMA US Broad Market Index Fund | PGIM Quant Solutions US Broad Market Index Fund |
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Prudential Investment Portfolios 2 and Shareholders of PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM QMA Commodity Strategies Fund, PGIM QMA Mid-Cap Core Equity Fund and PGIM QMA US Broad Market Index Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM QMA Commodity Strategies Fund, PGIM QMA Mid-Cap Core Equity Fund and PGIM QMA US Broad Market Index Fund (six of the funds constituting Prudential Investment Portfolios 2, hereafter collectively referred to as the “Funds”) as of July 31, 2021, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the year then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2021, and the results of each of their operations, changes in each of their net assets, and each of the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America.
The financial statements of the Funds as of and for the year ended July 31, 2020 and the financial highlights for each of the periods ended on or prior to July 31, 2020 (not presented herein, other than the statements of changes in net assets and the financial highlights) were audited by other auditors whose report dated September 18, 2020 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
September 22, 2021
We have served as the auditor of one or more investment companies in the PGIM Retail Funds complex since 2020.
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Fund Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), each Fund has adopted and implemented a liquidity risk management program (the “LRMP”). Each Fund’s LRMP seeks to assess and manage each Fund’s liquidity risk, which is defined as the risk that each Fund is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in each Fund. The Trust’s Board of Trustees (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), each Fund’s investment manager, to serve as the administrator of each Fund’s LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
Each Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, each Fund’s LRMP includes no less than annual assessments of factors that influence each Fund’s liquidity risk; no less than monthly classifications of each Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of each Fund’s assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if each Fund does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of each Fund’s LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that each Fund’s LRMP was reasonably designed to assess and manage each Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that each Fund’s investment strategies continue to be appropriate given each Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in each Fund including liquidity risks presented by each Fund’s investment portfolio, is found in each Fund’s Prospectus and Statement of Additional Information.
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Tax Information (unaudited)
We are advising you that during the fiscal year ended July 31, 2021, the Funds reported the maximum amount allowed per share for Class R6 share as a capital gain distribution in accordance with Section 852(b)(3)(C) of the Internal Revenue Code.
Capital Gain Distributions | ||||
PGIM Jennison Small-Cap Core Equity Fund | 0.27 | |||
PGIM Core Conservative Bond Fund | 0.07 | |||
PGIM TIPS Fund | 0.10 | |||
PGIM QMA US Broad Market Index Fund | 0.06 |
For the year ended July 31, 2021, the following Funds reports the maximum amount allowable but not less than the following percentages of ordinary income dividends paid as: 1) qualified dividend income in accordance with Section 854 of the Internal Revenue Code (QDI); 2) eligible for the corporate dividends received deduction in accordance with Section 854 of the Internal Revenue Code (DRD); and 3) interest-related dividends in accordance with Section 871(k)(1) and 881(e)(1) of the Internal Revenue Code (IRD):
QDI | DRD | IRD | ||||||||||
PGIM Jennison Small-Cap Core Equity Fund | 28.57% | 4.05% | — | |||||||||
PGIM Core Conservative Bond Fund | — | — | 82.54% | |||||||||
PGIM TIPS Fund | — | — | 100.00% | |||||||||
PGIM QMA Mid-Cap Core Equity Fund | 47.87% | 47.62% | — | |||||||||
PGIM QMA US Broad Market Index Fund | 83.76% | 83.54% | — |
In January 2022, you will be advised on IRS Form 1099-DIV or substitute 1099-DIV as to the federal tax status of the distributions received by you in calendar year 2021.
We are required by Massachusetts, Missouri and Oregon to inform you that dividends which have been derived from interest on federal obligations are not taxable to shareholders provided the Fund meets certain requirements mandated by the respective state’s taxing authorities. We are pleased to report that the dividends paid by the following funds qualify for such deduction.
PGIM Core Conservative Bond Fund | 45.65% | |||
PGIM TIPS Fund | 99.97% |
For more detailed information regarding your state and local taxes, you should contact your tax adviser or the state/local taxing authorities.
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INFORMATION ABOUT BOARD MEMBERS AND OFFICERS (unaudited)
Information about Board Members and Officers of the Fund is set forth below. Board Members who are not deemed to be “interested persons” of the Fund, as defined in the 1940 Act, are referred to as “Independent Board Members.” Board Members who are deemed to be “interested persons” of the Fund are referred to as “Interested Board Members.” The Board Members are responsible for the overall supervision of the operations of the Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Board in turn elects the Officers, who are responsible for administering the day-to-day operations of the Fund.
Independent Board Members | ||||||
Name Year of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service | |||
Ellen S. Alberding 1958 Board Member Portfolios Overseen: 94 | President and Board Member, The Joyce Foundation (charitable foundation) (since 2002); formerly Vice Chair, City Colleges of Chicago (community college system) (2011-2015); Trustee, National Park Foundation (charitable foundation for national park system) (2009-2018); Trustee, Economic Club of Chicago (2009-2016); Trustee, Loyola University (since 2018). | None. | Since September 2013 | |||
Kevin J. Bannon 1952 Board Member Portfolios Overseen: 94 | Retired; formerly Managing Director (April 2008-May 2015) and Chief Investment Officer (October 2008-November 2013) of Highmount Capital LLC (registered investment adviser); formerly Executive Vice President and Chief Investment Officer (April 1993-August 2007) of Bank of New York Company; President (May 2003-May 2007) of BNY Hamilton Family of Mutual Funds. | Director of Urstadt Biddle Properties (equity real estate investment trust) (since September 2008). | Since July 2008 |
PGIM Day One Underlying Funds |
Independent Board Members | ||||||
Name Year of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service | |||
Linda W. Bynoe 1952 Board Member Portfolios Overseen: 91 | President and Chief Executive Officer (since March 1995) and formerly Chief Operating Officer (December 1989-February 1995) of Telemat Limited LLC (formerly Telemat Ltd) (management consulting); formerly Vice President (January 1985-June 1989) at Morgan Stanley & Co. (broker-dealer). | Trustee of Equity Residential (residential real estate) (since December 2009); Director of Northern Trust Corporation (financial services) (since April 2006); formerly Director of Anixter International, Inc. (communication products distributor) (January 2006-June 2020). | Since March 2005 | |||
Barry H. Evans 1960 Board Member Portfolios Overseen: 93 | Retired; formerly President (2005-2016), Global Chief Operating Officer (2014-2016), Chief Investment Officer - Global Head of Fixed Income (1998-2014), and various portfolio manager roles (1986-2006), Manulife Asset Management (asset management). | Formerly Director, Manulife Trust Company (2011-2018); formerly Director, Manulife Asset Management Limited (2015-2017); formerly Chairman of the Board of Directors of Manulife Asset Management U.S. (2005-2016); formerly Chairman of the Board, Declaration Investment Management and Research (2008-2016). | Since September 2017 | |||
Keith F. Hartstein 1956 Board Member & Independent Chair Portfolios Overseen: 94 | Retired; Executive Committee of the Independent Directors Council (IDC) Board of Governors (since October 2019); Member (since November 2014) of the Governing Council of the IDC (organization of independent mutual fund directors); formerly President and Chief Executive Officer (2005-2012), Senior Vice President (2004-2005), Senior Vice President of Sales and Marketing (1997-2004), and various executive management positions (1990-1997), John Hancock Funds, LLC (asset management); Chairman, Investment Company Institute’s Sales Force Marketing Committee (2003-2008). | None. | Since September 2013 |
Visit our website at pgim.com/investments |
Independent Board Members | ||||||
Name Year of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service | |||
Laurie Simon Hodrick 1962 Board Member Portfolios Overseen: 90 | A. Barton Hepburn Professor Emerita of Economics in the Faculty of Business, Columbia Business School (since 2018); Visiting Fellow at the Hoover Institution, Stanford University (since 2015); Sole Member, ReidCourt LLC (since 2008) (a consulting firm); formerly Visiting Professor of Law, Stanford Law School (2015-2021); formerly A. Barton Hepburn Professor of Economics in the Faculty of Business, Columbia Business School (1996-2017); formerly Managing Director, Global Head of Alternative Investment Strategies, Deutsche Bank (2006-2008). | Independent Director, Roku (since December 2020) (communication services); formerly Independent Director, Synnex Corporation (2019-2021) (information technology); formerly Independent Director, Kabbage, Inc. (2018-2020) (financial services); formerly Independent Director, Corporate Capital Trust (2017-2018) (a business development company). | Since September 2017 | |||
Brian K. Reid 1961 Board Member Portfolios Overseen: 93 | Retired; formerly Chief Economist for the Investment Company Institute (ICI) (2005-2017); formerly Senior Economist and Director of Industry and Financial Analysis at the ICI (1998-2004); formerly Senior Economist, Industry and Financial Analysis at the ICI (1996-1998); formerly Staff Economist at the Federal Reserve Board (1989-1996); Director, ICI Mutual Insurance Company (2012-2017). | None. | Since March 2018 |
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Independent Board Members | ||||||
Name Year of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service | |||
Grace C. Torres 1959 Board Member Portfolios Overseen: 93 | Retired; formerly Treasurer and Principal Financial and Accounting Officer of the PGIM Funds, Target Funds, Advanced Series Trust, Prudential Variable Contract Accounts and The Prudential Series Fund (1998-June 2014); Assistant Treasurer (March 1999-June 2014) and Senior Vice President (September 1999-June 2014) of PGIM Investments LLC; Assistant Treasurer (May 2003-June 2014) and Vice President (June 2005-June 2014) of AST Investment Services, Inc.; Senior Vice President and Assistant Treasurer (May 2003-June 2014) of Prudential Annuities Advisory Services, Inc. | Director (since January 2018) of OceanFirst Financial Corp. and OceanFirst Bank; formerly Director (July 2015-January 2018) of Sun Bancorp, Inc. N.A. and Sun National Bank. | Since November 2014 |
Interested Board Members | ||||||
Name Year of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service | |||
Stuart S. Parker 1962 Board Member & President Portfolios Overseen: 93 | President, Chief Executive Officer, Chief Operating Officer and Officer in Charge of PGIM Investments LLC (formerly known as Prudential Investments LLC) (since January 2012); formerly Executive Vice President of Jennison Associates LLC and Head of Retail Distribution of PGIM Investments LLC (June 2005-December 2011); Investment Company Institute - Board of Governors (since May 2012). | None. | Since January 2012 |
Visit our website at pgim.com/investments |
Interested Board Members | ||||||
Name Year of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service | |||
Scott E. Benjamin 1973 Board Member & Vice President Portfolios Overseen: 94 | Executive Vice President (since May 2009) of PGIM Investments LLC; Vice President (since June 2012) of Prudential Investment Management Services LLC; Executive Vice President (since September 2009) of AST Investment Services, Inc.; Senior Vice President of Product Development and Marketing, PGIM Investments (since February 2006); formerly Vice President of Product Development and Product Management, PGIM Investments LLC (2003-2006). | None. | Since March 2010 |
Fund Officers(a) | ||||
Name Year of Birth Fund Position | Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer | ||
Claudia DiGiacomo 1974 Chief Legal Officer | Chief Legal Officer, Executive Vice President and Secretary of PGIM Investments LLC (since August 2020); Chief Legal Officer of Prudential Mutual Fund Services LLC (since August 2020); Chief Legal Officer of PIFM Holdco, LLC (since August 2020); Vice President and Corporate Counsel (since January 2005) of Prudential; and Corporate Counsel of AST Investment Services, Inc. (since August 2020); formerly Vice President and Assistant Secretary of PGIM Investments LLC (2005-2020); formerly Associate at Sidley Austin Brown & Wood LLP (1999-2004). | Since December 2005 | ||
Dino Capasso 1974 Chief Compliance Officer | Chief Compliance Officer (since July 2019) of PGIM Investments LLC; Chief Compliance Officer (since July 2019) of the PGIM Funds, Target Funds, Advanced Series Trust, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc., PGIM Global High Yield Fund, Inc., PGIM High Yield Bond Fund, Inc., and PGIM Short Duration High Yield Opportunities Fund; Vice President and Deputy Chief Compliance Officer (June 2017-2019) of PGIM Investments LLC; formerly Senior Vice President and Senior Counsel (January 2016-June 2017), and Vice President and Counsel (February 2012-December 2015) of Pacific Investment Management Company LLC. | Since July 2019 |
PGIM Day One Underlying Funds |
Fund Officers(a) | ||||
Name Year of Birth Fund Position | Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer | ||
Andrew R. French 1962 Secretary | Vice President (since December 2018) of PGIM Investments LLC; formerly Vice President and Corporate Counsel (2010-2018) of Prudential; formerly Director and Corporate Counsel (2006-2010) of Prudential; Vice President and Assistant Secretary (since January 2007) of PGIM Investments LLC; Vice President and Assistant Secretary (since January 2007) of Prudential Mutual Fund Services LLC. | Since October 2006 | ||
Diana N. Huffman 1982 Assistant Secretary | Vice President and Corporate Counsel (since September 2015) of Prudential; Vice President and Assistant Secretary (since August 2020) of PGIM Investments LLC; formerly Associate at Willkie Farr & Gallagher LLP (2009-2015). | Since March 2019 | ||
Melissa Gonzalez 1980 Assistant Secretary | Vice President and Corporate Counsel (since September 2018) of Prudential; Vice President and Assistant Secretary (since August 2020) of PGIM Investments LLC; formerly Director and Corporate Counsel (March 2014-September 2018) of Prudential. | Since March 2020 | ||
Patrick E. McGuinness 1986 Assistant Secretary | Vice President and Assistant Secretary (since August 2020) of PGIM Investments LLC; Director and Corporate Counsel (since February 2017) of Prudential; and Corporate Counsel (2012-2017) of IIL, Inc. | Since June 2020 | ||
Debra Rubano 1975 Assistant Secretary | Vice President and Corporate Counsel (since November 2020) of Prudential; formerly Director and Senior Counsel of Allianz Global Investors U.S. Holdings LLC (2010-2020) and Assistant Secretary of numerous funds in the Allianz fund complex (2015-2020). | Since December 2020 | ||
Kelly A. Coyne 1968 Assistant Secretary | Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010). | Since March 2015 | ||
Christian J. Kelly 1975 Treasurer and Principal Financial and Accounting Officer | Vice President, Head of Fund Administration of PGIM Investments LLC (since November 2018); formerly Director of Fund Administration of Lord Abbett & Co. LLC (2009-2018), Treasurer and Principal Accounting Officer of the Lord Abbett Family of Funds (2017-2018); Director of Accounting, Avenue Capital Group (2008-2009); Senior Manager, Investment Management Practice of Deloitte & Touche LLP (1998-2007). | Since January 2019 | ||
Lana Lomuti 1967 Assistant Treasurer | Vice President (since 2007) and Director (2005-2007), within PGIM Investments Fund Administration; formerly Assistant Treasurer (December 2007-February 2014) of The Greater China Fund, Inc. | Since April 2014 | ||
Russ Shupak 1973 Assistant Treasurer | Vice President (since 2017) and Director (2013-2017), within PGIM Investments Fund Administration. | Since September 2019 |
Visit our website at pgim.com/investments |
Fund Officers(a) | ||||
Name Year of Birth Fund Position | Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer | ||
Deborah Conway 1969 Assistant Treasurer | Vice President (since 2017) and Director (2007-2017), within PGIM Investments Fund Administration. | Since September 2019 | ||
Elyse M. McLaughlin 1974 Assistant Treasurer | Vice President (since 2017) and Director (2011-2017), within PGIM Investments Fund Administration. | Since September 2019 | ||
Dana E. Cordes 1978 Anti-Money Laundering Compliance Officer | Vice President, Corporate Compliance (since June 2021) of Prudential; formerly, Director Global Financial Crimes Unit (December 2015 to June 2021) of Prudential; formerly, Director, Operational Risk Management for Prudential Real Estate Investors (January 2010 to December 2015). Ms. Cordes obtained a Certified Anti-Money Laundering Specialist designation in 2017. | Since September 2021 |
(a) | Excludes Mr. Parker and Mr. Benjamin, interested Board Members who also serve as President and Vice President, respectively. |
Explanatory Notes to Tables:
∎ | Board Members are deemed to be “Interested,” as defined in the 1940 Act, by reason of their affiliation with PGIM Investments LLC and/or an affiliate of PGIM Investments LLC. |
∎ | Unless otherwise noted, the address of all Board Members and Officers is c/o PGIM Investments LLC, 655 Broad Street, Newark, New Jersey 07102-4410. |
∎ | There is no set term of office for Board Members or Officers. The Board Members have adopted a retirement policy, which calls for the retirement of Board Members on December 31 of the year in which they reach the age of 75. |
∎ | “Other Directorships Held” includes all directorships of companies required to register or file reports with the SEC under the 1934 Act (that is, “public companies”) or other investment companies registered under the 1940 Act. |
∎ | “Portfolios Overseen” includes all investment companies managed by PGIM Investments LLC. The investment companies for which PGIM Investments LLC serves as manager include the PGIM Funds, Target Funds, The Prudential Variable Contract Accounts, PGIM ETF Trust, PGIM High Yield Bond Fund, Inc., PGIM Global High Yield Fund, Inc., PGIM Short Duration High Yield Opportunities Fund, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc. and the Advanced Series Trust. |
∎ | As used in the Fund Officers table “Prudential” means The Prudential Insurance Company of America. |
PGIM Day One Underlying Funds |
Approval of Advisory Agreements (unaudited)
The Funds’ Boards of Trustees
The Boards of Trustees (the “Board”) of the PGIM Day One Underlying Funds (each, a “Fund, and collectively, the “Funds”)1 consists of ten individuals, eight of whom are not “interested persons” of the Funds, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”). The Board is responsible for the oversight of each Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Trustees have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Trustee. The Board has established four standing committees: the Audit Committee, the Nominating and Governance Committee, and two Investment Committees. Each committee is chaired by, and composed of, Independent Trustees.
Annual Approval of the Funds’ Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew each Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”) and each Fund’s subadvisory agreement with QMA LLC (“QMA”), Jennison Associates LLC (“Jennison”) and PGIM, Inc., (“PGIM”) on behalf of its PGIM Fixed Income unit, and PGIM Limited (collectively “PGIM Fixed Income”), as applicable. In considering the renewal of the agreements, the Board, including all of the Independent Trustees, met on June 7-10, 2021 and approved the renewal of the agreements through July 31, 2022, after concluding that the renewal of the agreements was in the best interests of each Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments, PGIM Fixed Income, QMA and Jennison. Also, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided, the performance of each Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with each Fund and its shareholders as each Fund’s assets grow. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to each Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular Board
1 | Each of the PGIM Day One Underlying Funds is a series of Prudential Investment Portfolios 2. The PGIM Day One Underlying Funds discussed herein are: PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM QMA Commodity Strategies Fund, PGIM QMA US Broad Market Index Fund and PGIM QMA Mid-Cap Core Equity Fund. |
PGIM Day One Underlying Funds |
Approval of Advisory Agreements (continued)
meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 7-10, 2021.
The Trustees determined that the overall arrangements between each Fund and PGIM Investments, which serves as each Fund’s investment manager pursuant to a management agreement, and between PGIM Investments and each of QMA, Jennison and PGIM Fixed Income as applicable, each of which serves as each Fund’s subadviser pursuant to the terms of subadvisory agreements with PGIM Investments, are in the best interests of each Fund and its shareholders in light of the services performed, fees charged and such other matters as the Trustees considered relevant in the exercise of their business judgment.
The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to each Fund by PGIM Investments, QMA, Jennison and PGIM Fixed Income. The Board noted that QMA, Jennison and PGIM Fixed Income are affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadviser for each Fund, as well as the provision of fund recordkeeping, compliance and other services to each Fund, and PGIM Investments’ role as administrator of the Funds’ liquidity risk management program. With respect to PGIM Investments’ oversight of the subadvisers, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments’ senior management on the performance and operations of the subadvisers. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Trustees of the Funds who are part of Fund management. The Board also considered the investment subadvisory services provided by QMA, Jennison, and PGIM Fixed Income, including investment research and security selection, as well as adherence to each Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadvisers, as well as PGIM Investments’ recommendation, based on its review of the subadvisers, to renew the subadvisory agreements.
The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of each Fund, QMA, Jennison, and PGIM Fixed Income and also considered the qualifications, backgrounds and responsibilities of the QMA, Jennison and PGIM Fixed Income portfolio managers who are responsible for the day-to-day management of each Fund’s portfolio. The Board was provided with information pertaining to PGIM Investments’, QMA’s, Jennison’s and PGIM Fixed Income’s organizational structure, senior management, investment
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operations, and other relevant information pertaining to PGIM Investments, Jennison, QMA and PGIM Fixed Income. The Board also noted that it received favorable compliance reports from the Funds’ Chief Compliance Officer (“CCO”) as to each of PGIM Investments, QMA, Jennison and PGIM Fixed Income.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments and the subadvisory services provided to each Fund by QMA, Jennison, and PGIM Fixed Income and that there was a reasonable basis on which to conclude that each Fund benefits from the services provided by PGIM Investments, QMA, Jennison and PGIM Fixed Income under the management and subadvisory agreements.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as each Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. However, the Board considered that the cost of services provided by PGIM Investments during the year ended December 31, 2020 exceeded the management fees paid by each Fund, resulting in an operating loss to PGIM Investments. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as each Fund’s assets grow beyond current levels. During the course of time, the Board has considered information regarding the launch date of each Fund, the management fees of each Fund compared to those of similarly managed funds and PGIM Investments’ investment in each Fund over time. The Board noted that, while the management fee schedule for each Fund does not have breakpoints in its management fees, economies of scale can be shared with each Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of each Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
PGIM Day One Underlying Funds |
Approval of Advisory Agreements (continued)
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments, QMA, Jennison and PGIM Fixed Income
The Board considered potential ancillary benefits that might be received by PGIM Investments, QMA, Jennison, PGIM Fixed Income and their affiliates as a result of their relationship with each Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by each Fund’s transfer agent (which is affiliated with PGIM Investments), and benefits to its reputation as well as other intangible benefits resulting from PGIM Investments’ association with the Funds. The Board concluded that the potential benefits to be derived by QMA and Jennison included their ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to their reputations. The Board concluded that the benefits derived by PGIM Investments, QMA, Jennison and PGIM Fixed Income were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Funds / Fees and Expenses
The Board considered certain additional factors and made related conclusions relating to the historical performance of each Fund for the one-year and the three-year periods ended December 31, 2020. The Board considered that PGIM QMA US Broad Market Index Fund and PGIM QMA Mid-Cap Core Equity Fund each commenced operations on November 17, 2016 and that all of the other Funds commenced operations on November 15, 2016 and that longer-term performance was not yet available.
The Board also considered each Fund’s actual management fee, as well as each Fund’s net total expense ratio, for the fiscal year ended July 31, 2020. The Board considered the management fee for each Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a Peer Group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for each Fund represents the actual expense ratio incurred by Fund shareholders.
The mutual funds included in the Peer Universe, which was used to consider performance, and the Peer Group, which was used to consider expenses and fees, for each Fund were objectively determined by Broadridge, an independent provider of mutual fund data. In certain circumstances, PGIM Investments also provided supplemental Peer Universe or Peer Group information, for reasons addressed with the Board. The comparisons placed each Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
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The section below summarizes key factors considered by the Board and the Board’s conclusions regarding each Fund’s performance, fees and overall expenses. For each Fund, the table sets forth net performance comparisons (which reflect the impact on performance of any subsidies, expense caps or waivers that may be applicable) with the Peer Universe, actual management fees with the Peer Group (which reflect the impact of fund expenses, or any subsidies or fee waivers), and net total expenses with the Peer Group, each of which were key factors considered by the Board.
PGIM QMA US Broad Market Index Fund
Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
2nd Quartile | 2nd Quartile | N/A | N/A | |||||
Actual Management Fees: 1st Quartile | ||||||||
Net Total Expenses: 1st Quartile |
• | The Board noted that the Fund outperformed its benchmark index over the one-year period, and underperformed its benchmark index over the three-year period. |
• | The Board considered that the Fund commenced operations on November 17, 2016 and that longer-term performance was not yet available. |
• | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.20% for Class R6 shares through November 30, 2021. |
• | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to continue to allow the Fund to create a longer-term performance record, and to renew the agreements. |
• | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM QMA Mid-Cap Core Equity Fund
Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
4th Quartile | 4th Quartile | N/A | N/A | |||||
Actual Management Fees: 1st Quartile | ||||||||
Net Total Expenses: 4th Quartile |
• | The Board noted that the Fund underperformed its benchmark index over the one-year and the three-year periods. |
• | The Board considered that the Fund only commenced investment operations on November 17, 2016 and that longer-term performance was not yet available. |
• | The Board also considered PGIM Investments’ assertions that the quality bias detracted from returns as investors gravitated towards lower-quality (i.e., higher |
PGIM Day One Underlying Funds |
Approval of Advisory Agreements (continued)
leverage, lower profitability, lower return-on-equity) stocks for much of 2020; and that relative returns are expected to improve as markets normalize. In this regard, the Board considered that the Fund outperformed its benchmark index and peer group (ranking in the 3rd percentile) for the first quarter of 2021. The Board noted the Fund’s short operating history and improving performance.
• | The Board and PGIM Investments agreed to lower the contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.80% for Class R6 shares through November 30, 2022. |
• | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to continue to allow the Fund to create a longer-term performance record, and to renew the agreements. |
• | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM Jennison Small-Cap Core Equity Fund
Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
1st Quartile | 1st Quartile | N/A | N/A | |||||
Actual Management Fees: 1st Quartile | ||||||||
Net Total Expenses: 3rd Quartile |
• | The Board noted that the Fund outperformed its benchmark index over the one-year and the three-year periods. |
• | The Board considered that the Fund commenced operations on November 15, 2016 and that longer-term performance was not yet available. |
• | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.95% for Class R6 shares through November 30, 2021. |
• | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to continue to allow the Fund to create a longer-term performance record, and to renew the agreements. |
• | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided |
PGIM Core Conservative Bond Fund
Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
4th Quartile | 4th Quartile | N/A | N/A | |||||
Actual Management Fees: 1st Quartile | ||||||||
Net Total Expenses: 3rd Quartile |
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• | The Board noted that the Fund outperformed its benchmark index on a gross basis for the one- and three-year periods, though it underperformed on a net basis. |
• | The Board considered PGIM Investments’ assertion that, relative to its peer group, which has the flexibility to invest in emerging markets and below investment grade debt, the Fund’s more conservative investment approach limits exposure to these sectors, which can limit peer relative results. The Board considered PGIM Investments’ assertion that, given this fact, benchmark-relative performance comparisons are more appropriate when evaluating the Fund’s performance. |
• | The Board also considered PGIM Investments’ assertion that gross of fees, the Fund continues to produce compelling benchmark-relative results, outperforming its benchmark over the trailing one- and three-year periods ended December 31, 2020, and in the last four calendar years. |
• | The Board noted that the Fund ranked in the first quartile of its peer group during the first quarter of 2020 and outperformed its benchmark index over the fourth quarter of 2020. |
• | The Board considered that the Fund commenced operations on December 13, 2016 and that longer-term performance was not yet available. |
• | The Board considered PGIM Investments’ explanation that the Fund’s net total expenses are within one basis point of its peer group median. |
• | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.50% for Class R6 shares through November 30, 2021. |
• | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to continue to allow the Fund to create a longer-term performance record, and to renew the agreements. |
• | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM TIPS Fund
Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
2nd Quartile | 2nd Quartile | N/A | N/A | |||||
Actual Management Fees: 1st Quartile | ||||||||
Net Total Expenses: 2nd Quartile |
• | The Board noted that the Fund underperformed its benchmark index over the one-year and the three-year periods. |
• | The Board considered that the Fund commenced operations on November 15, 2016 and that longer-term performance was not yet available. |
PGIM Day One Underlying Funds |
Approval of Advisory Agreements (continued)
• | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.40% for Class R6 shares through November 30, 2021. |
• | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to continue to allow the Fund to create a longer-term performance record, and to renew the agreements. |
• | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM QMA Commodity Strategies Fund
Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
2nd Quartile | 2nd Quartile | N/A | N/A | |||||
Actual Management Fees: 1st Quartile | ||||||||
Net Total Expenses: 2nd Quartile |
• | The Board noted that the Fund outperformed its benchmark index over the one- and the three-year periods. |
• | The Board considered that the Fund commenced operations on November 15, 2016 and that longer-term performance was not yet available. |
• | The Board and PGIM Investments agreed to a contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.70% for Class R6 shares through November 30, 2021. |
• | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to continue to allow the Fund to create a longer-term performance record, and to renew the agreements. |
• | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of each Fund and its shareholders.
Visit our website at pgim.com/investments |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING The Board of Trustees of the Funds have delegated to the Funds’ subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Funds. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Funds’ website and on the Securities and Exchange Commission’s website. |
TRUSTEES Ellen S. Alberding ● Kevin J. Bannon ● Scott E. Benjamin ● Linda W. Bynoe ● Barry H. Evans ● Keith F. Hartstein ● Laurie Simon Hodrick ● Stuart S. Parker ● Brian K. Reid ● Grace C. Torres |
OFFICERS Stuart S. Parker, President ● Scott E. Benjamin, Vice President ● Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer ● Claudia DiGiacomo, Chief Legal Officer ● Dino Capasso, Chief Compliance Officer ● Dana E. Cordes, Anti-Money Laundering Compliance Officer ● Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Diana N. Huffman, Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ● Patrick E. McGuinness, Assistant Secretary ● Debra Rubano, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Russ Shupak, Assistant Treasurer ● Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISERS | QMA LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
Jennison Associates LLC | 466 Lexington Avenue | |||
New York, NY 10017 | ||||
PGIM Fixed Income | 655 Broad Street | |||
Newark, NJ 07102 | ||||
PGIM Limited | Grand Buildings, 1-3 Strand | |||
Trafalgar Square | ||||
London, WC2N 5HR | ||||
United Kingdom | ||||
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DISTRIBUTOR | Prudential Investment | 655 Broad Street | ||
Management Services LLC | Newark, NJ 07102 | |||
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CUSTODIAN | The Bank of New York | 240 Greenwich Street | ||
Mellon | New York, NY 10286 | |||
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TRANSFER AGENT | Prudential Mutual Fund | PO Box 9658 | ||
Services LLC | Providence, RI 02940 | |||
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INDEPENDENT REGISTERED | PricewaterhouseCoopers | 300 Madison Avenue | ||
PUBLIC ACCOUNTING FIRM | LLP | New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher | 787 Seventh Avenue | ||
LLP | New York, NY 10019 | |||
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An investor should consider the investment objectives, risks, charges, and expenses of each Fund carefully before investing. The prospectus contains this and other information about the Funds. An investor may obtain a prospectus by visiting our website at pgiminvestments.com or by calling (800) 225-1852. The prospectus should be read carefully before investing. |
E-DELIVERY To receive your mutual fund documents online, go to pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM Day One Underlying Funds c/o PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at the same address. Communications to the Board or individual Trustees are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and is available without charge, upon request, by calling (800) 225-1852. |
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 DAY ONE UNDERLYING FUNDS
NASDAQ | CUSIP | NASDAQ | CUSIP | |||||||
PGIM JENNISON SMALL-CAP CORE EQUITY FUND | PQJCX | 74440E805 | PGIM QMA COMMODITY STRATEGIES FUND | PQCMX | 74440E862 | |||||
PGIM CORE CONSERVATIVE BOND FUND | PQCNX | 74440E888 | PGIM QMA MID-CAP CORE EQUITY FUND | PQCCX | 74440E508 | |||||
PGIM TIPS FUND | PQTSX | 74440E870 | PGIM QMA US BROAD MARKET INDEX FUND | PQBMX | 74440E409 | |||||
MF242E |
Item 2 – Code of Ethics — See Exhibit (a)
As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer.
The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 800-225-1852, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3 – Audit Committee Financial Expert –
The registrant’s Board has determined that Ms. Grace C. Torres, member of the Board’s Audit Committee is an “audit committee financial expert,” and that she is “independent,” for purposes of this item.
Item 4 – Principal Accountant Fees and Services –
(a) Audit Fees
For the fiscal year ended July 31, 2021, the Registrant’s principal accountant was PricewaterhouseCoopers LLP (“PwC”). For the fiscal year ended July 31, 2021, PwC billed the Registrant $188,900 for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.
For the fiscal year ended July 31, 2020, the Registrant’s principal accountant was KPMG LLP (“KPMG”). For the fiscal year ended July 31, 2020, KPMG billed the Registrant $190,758 for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.
(b) Audit-Related Fees
For the fiscal year ended July 31, 2021, PwC did not bill the Registrant for audit-related services.
For the fiscal year ended July 31, 2021, fees of $12,529 were billed to the Registrant for services rendered by KPMG in connection with the auditor transition.
For the fiscal year ended July 31, 2020, fees of $8,508 were billed to the Registrant for services rendered by KPMG in connection with an accounting system conversion and were paid by The Bank of New York Mellon.
(c) Tax Fees
For the fiscal years ended July 31, 2021 and July 31, 2020: none.
(d) All Other Fees
For the fiscal years ended July 31, 2021 and July 31, 2020: none.
(e) (1) Audit Committee Pre-Approval Policies and Procedures
THE PGIM MUTUAL FUNDS
AUDIT COMMITTEE POLICY
on
Pre-Approval of Services Provided by the Independent
Accountants
The Audit Committee of each PGIM Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve the independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:
• | a review of the nature of the professional services expected to be provided, |
• | a review of the safeguards put into place by the accounting firm to safeguard independence, and |
• | periodic meetings with the accounting firm. |
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services.
Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed
non-audit services will not adversely affect the independence of the independent accountants. Such proposed non-audit services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.
The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve. The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services, which the Committee (or the Committee Chair) would consider for pre-approval.
Audit Services
The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants:
• | Annual Fund financial statement audits |
• | Seed audits (related to new product filings, as required) |
• | SEC and regulatory filings and consents |
Audit-related Services
The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:
• | Accounting consultations |
• | Fund merger support services |
• | Agreed Upon Procedure Reports |
• | Attestation Reports |
• | Other Internal Control Reports |
Individual audit-related services that fall within one of these categories (except for fund merger support services) and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated). Fees related to fund merger support services are subject to a separate authorized pre-approval by the Audit Committee with fees determined on a per occurrence and merger complexity basis.
Tax Services
The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:
• | Tax compliance services related to the filing or amendment of the following: |
• | Federal, state and local income tax compliance; and, |
• | Sales and use tax compliance |
• | Timely RIC qualification reviews |
• | Tax distribution analysis and planning |
• | Tax authority examination services |
• | Tax appeals support services |
• | Accounting methods studies |
• | Fund merger support services |
• | Tax consulting services and related projects |
Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated).
Other Non-Audit Services
Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Proscribed Services
The Fund’s independent accountants will not render services in the following categories of non-audit services:
• | Bookkeeping or other services related to the accounting records or financial statements of the Fund |
• | Financial information systems design and implementation |
• | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports |
• | Actuarial services |
• | Internal audit outsourcing services |
• | Management functions or human resources |
• | Broker or dealer, investment adviser, or investment banking services |
• | Legal services and expert services unrelated to the audit |
• | Any other service that the Public Company Accounting Oversight Board determines, by regulation, is |
impermissible.
Pre-approval of Non-Audit Services Provided to Other Entities Within the PGIM Fund Complex
Certain non-audit services provided to PGIM Investments LLC or any of its affiliates that also provide ongoing services to the PGIM Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Although the Audit Committee will not pre-approve all services provided to PGIM Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to PGIM Investments and its affiliates.
(e) (2) Percentage of services referred to in 4(b) – 4(d) that were approved by the audit committee –
For the fiscal years ended July 31, 2021 and July 31, 2020, 100% of the services referred to in Item 4(b) was approved by the audit committee.
(f) Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%.
The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.
(g) Non-Audit Fees
The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for the fiscal years ended July 31, 2021 and July 31, 2020 was $0 and $0, respectively.
(h) Principal Accountant’s Independence
Not applicable as the Registrant’s principal accountant has not provided non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.
Item 5 – Audit Committee of Listed Registrants – Not applicable.
Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.
Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – Controls and Procedures - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not applicable.
Item 13 – Exhibits
(a) | (1) Code of Ethics – Attached hereto as Exhibit EX-99.CODE-ETH. | |||
(3) Any written solicitation to purchase securities under Rule 23c-1 – Not applicable. | ||||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant | Prudential Investment Portfolios 2 | |
By: | /s/ Andrew R. French | |
Andrew R. French | ||
Secretary | ||
Date: | September 22, 2021 |
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: | September 22, 2021 | |
By: | /s/ Christian J. Kelly | |
Christian J. Kelly | ||
Treasurer and Principal Financial and Accounting Officer | ||
Date: | September 22, 2021 |