UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
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 QMA Emerging Markets Equity Fund and PGIM QMA International Developed Markets 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: | 10/31/2020 |
Date of reporting period: | 4/30/2020 |
Item 1 – Reports to Stockholders
PGIM QMA EMERGING MARKETS EQUITY FUND
SEMIANNUAL REPORT
APRIL 30, 2020
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an email request to PGIM Investments at shareholderreports@pgim.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to shareholderreports@pgim.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2020 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company. © 2020 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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| 2 | | Visit our website at pgiminvestments.com |
Letter from the President
Dear Shareholder:
We hope you find the semiannual report for PGIM QMA Emerging Markets Equity Fund informative and useful. The report covers performance for the six-month period ended April 30, 2020.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM QMA Emerging Markets Equity Fund
June 15, 2020
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| PGIM QMA Emerging Markets Equity Fund | | | 3 | |
Your Fund’s Performance
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
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| | | (without sales charges) | | Average Annual Total Returns as of 4/30/20 (with sales charges) |
| | | Six Months* (%) | | One Year (%) | | Since Inception (%) |
| Fund | | –11.09 | | –14.25 | | 2.66 (11/29/16) |
| MSCI Emerging Markets Index | | | | | | |
| | | –10.50 | | –12.00 | | 4.46 |
*Not annualized
Source: PGIM Investments LLC and Lipper Inc.
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns for the Index are measured from the closest month-end to the Fund’s inception date.
Benchmark Definitions
MSCI Emerging Markets Index—The MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization-weighted index that is designed to measure equity market performance of emerging markets. It consists of the following 24 emerging market country indexes: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates.
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.
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| 4 | | Visit our website at pgiminvestments.com |
Presentation of Fund Holdings as of 4/30/20
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| | | |
| Ten Largest Holdings | | Line of Business | | Country | | % of Net Assets |
Alibaba Group Holding Ltd., ADR | | Internet & Direct Marketing Retail | | China | | 7.0% |
Taiwan Semiconductor Manufacturing Co. Ltd. | | Semiconductors & Semiconductor Equipment | | Taiwan | | 5.3% |
Tencent Holdings Ltd. | | Interactive Media & Services | | China | | 5.3% |
Samsung Electronics Co. Ltd. | | Technology Hardware, Storage & Peripherals | | South Korea | | 4.1% |
iShares MSCI Emerging Markets ETF | | Exchange-Traded Funds | | United States | | 2.3% |
iShares MSCI Saudi Arabia ETF | | Exchange-Traded Funds | | United States | | 2.1% |
Ping An Insurance Group Co. of China Ltd. (Class H Stock) | | Insurance | | China | | 1.6% |
China Construction Bank Corp. (Class H Stock) | | Banks | | China | | 1.4% |
JD.com, Inc., ADR | | Internet & Direct Marketing Retail | | China | | 1.3% |
Hon Hai Precision Industry Co. Ltd. | | Electronic Equipment, Instruments & Components | | Taiwan | | 1.3% |
Holdings reflect only long-term investments and are subject to change.
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| PGIM QMA Emerging Markets Equity Fund | | | 5 | |
Fees and Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2020. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
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| 6 | | Visit our website at pgiminvestments.com |
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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PGIM QMA
Emerging Markets
Equity Fund | | Beginning Account
Value
November 1, 2019 | | | Ending Account
Value
April 30, 2020 | | | Annualized
Expense Ratio
Based on the
Six-Month Period | | | Expenses Paid
During the
Six-Month Period* | |
| Actual | | | $1,000.00 | | | $ | 889.10 | | | | 1.20 | % | | $ | 5.64 | |
| Hypothetical | | $ | 1,000.00 | | | $ | 1,018.90 | | | | 1.20 | % | | $ | 6.02 | |
*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 182 days in the six-month period ended April 30, 2020, and divided by the 366 days in the Fund’s fiscal year ending October 31, 2020 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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| PGIM QMA Emerging Markets Equity Fund | | | 7 | |
Schedule of Investments (unaudited)
as of April 30, 2020
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| Description | | Shares | | | Value | |
LONG-TERM INVESTMENTS 100.1% | | | | | | | | |
| | |
COMMON STOCKS 92.9% | | | | | | | | |
| | |
Brazil 2.5% | | | | | | | | |
Banco Bradesco SA | | | 7,274 | | | $ | 23,663 | |
Banco do Brasil SA | | | 21,500 | | | | 112,009 | |
Banco Santander Brasil SA, UTS | | | 2,200 | | | | 10,826 | |
BB Seguridade Participacoes SA | | | 27,300 | | | | 133,139 | |
BR Malls Participacoes SA | | | 10,900 | | | | 20,145 | |
Centrais Eletricas Brasileiras SA | | | 1,200 | | | | 5,404 | |
Hypera SA | | | 2,300 | | | | 12,312 | |
IRB Brasil Resseguros S/A | | | 3,600 | | | | 6,832 | |
Petrobras Distribuidora SA | | | 3,700 | | | | 13,425 | |
Petroleo Brasileiro SA | | | 19,800 | | | | 68,162 | |
TIM Participacoes SA | | | 35,800 | | | | 83,280 | |
Vale SA | | | 14,232 | | | | 118,009 | |
WEG SA | | | 14,000 | | | | 102,337 | |
| | | | | | | | |
| | | | | | | 709,543 | |
| | |
Chile 1.1% | | | | | | | | |
Cencosud SA | | | 86,528 | | | | 104,675 | |
Colbun SA | | | 679,585 | | | | 99,712 | |
Enel Americas SA | | | 194,492 | | | | 31,914 | |
Latam Airlines Group SA | | | 20,000 | | | | 75,578 | |
| | | | | | | | |
| | | | | | | 311,879 | |
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China 39.8% | | | | | | | | |
Alibaba Group Holding Ltd., ADR* | | | 9,900 | | | | 2,006,433 | |
Anhui Conch Cement Co. Ltd. (Class H Stock) | | | 35,000 | | | | 274,019 | |
ANTA Sports Products Ltd. | | | 14,000 | | | | 118,174 | |
Baidu, Inc., ADR* | | | 1,700 | | | | 171,581 | |
Bank of Beijing Co. Ltd. (Class A Stock) | | | 72,800 | | | | 51,075 | |
Bank of China Ltd. (Class H Stock) | | | 850,000 | | | | 324,619 | |
Bank of Communications Co. Ltd. (Class H Stock) | | | 338,000 | | | | 214,448 | |
Bank of Guiyang Co. Ltd. (Class A Stock) | | | 16,000 | | | | 17,828 | |
Bank of Jiangsu Co. Ltd. (Class A Stock) | | | 34,300 | | | | 29,245 | |
Bank of Shanghai Co. Ltd. (Class A Stock) | | | 41,400 | | | | 47,720 | |
Beijing Enterprises Holdings Ltd. | | | 2,500 | | | | 8,887 | |
Centre Testing International Group Co. Ltd. (Class A Stock) | | | 7,800 | | | | 18,795 | |
China CITIC Bank Corp. Ltd. (Class H Stock) | | | 285,000 | | | | 139,080 | |
China Coal Energy Co. Ltd. (Class H Stock) | | | 66,000 | | | | 17,647 | |
China Construction Bank Corp. (Class H Stock) | | | 506,000 | | | | 410,546 | |
China International Travel Service Corp. Ltd. (Class A Stock) | | | 1,489 | | | | 19,259 | |
China Lesso Group Holdings Ltd. | | | 20,000 | | | | 28,466 | |
China Medical System Holdings Ltd. | | | 146,000 | | | | 173,102 | |
See Notes to Financial Statements.
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| PGIM QMA Emerging Markets Equity Fund | | | 9 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
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| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
China (cont’d.) | | | | | | | | |
China Merchants Bank Co. Ltd. (Class H Stock) | | | 20,500 | | | $ | 97,680 | |
China Minsheng Banking Corp. Ltd. (Class H Stock) | | | 314,500 | | | | 235,204 | |
China Mobile Ltd. | | | 14,500 | | | | 116,691 | |
China National Accord Medicines Corp. Ltd. (Class A Stock) | | | 3,900 | | | | 22,706 | |
China National Building Material Co. Ltd. (Class H Stock) | | | 191,000 | | | | 239,480 | |
China National Chemical Engineering Co. Ltd. (Class A Stock) | | | 18,600 | | | | 16,121 | |
China Resources Cement Holdings Ltd. | | | 58,000 | | | | 78,515 | |
China State Construction Engineering Corp. Ltd. (Class A Stock) | | | 70,000 | | | | 51,592 | |
CITIC Ltd. | | | 186,000 | | | | 193,430 | |
CNOOC Ltd. | | | 10,000 | | | | 11,329 | |
Country Garden Services Holdings Co. Ltd. | | | 22,000 | | | | 100,967 | |
Financial Street Holdings Co. Ltd. (Class A Stock) | | | 13,800 | | | | 13,505 | |
Fujian Sunner Development Co. Ltd. (Class A Stock) | | | 9,000 | | | | 27,563 | |
G-bits Network Technology Xiamen Co. Ltd. (Class A Stock) | | | 800 | | | | 42,646 | |
Gemdale Corp. (Class A Stock) | | | 9,800 | | | | 18,424 | |
Hangzhou Tigermed Consulting Co. Ltd. (Class A Stock) | | | 1,900 | | | | 20,629 | |
Hefei Meiya Optoelectronic Technology, Inc. (Class A Stock) | | | 5,584 | | | | 33,059 | |
Hengan International Group Co. Ltd. | | | 9,500 | | | | 84,408 | |
HLA Corp. Ltd. (Class A Stock) | | | 5,900 | | | | 5,315 | |
Huaxin Cement Co. Ltd. (Class A Stock) | | | 13,900 | | | | 51,835 | |
Hunan Valin Steel Co. Ltd. (Class A Stock)* | | | 85,800 | | | | 48,178 | |
Industrial & Commercial Bank of China Ltd. (Class H Stock) | | | 474,000 | | | | 320,645 | |
Industrial Bank Co. Ltd. (Class A Stock) | | | 8,800 | | | | 20,562 | |
JD.com, Inc., ADR* | | | 8,500 | | | | 366,350 | |
Jinke Properties Group Co. Ltd. (Class A Stock) | | | 16,300 | | | | 18,261 | |
Kweichow Moutai Co. Ltd. (Class A Stock) | | | 100 | | | | 17,764 | |
KWG Group Holdings Ltd.* | | | 89,500 | | | | 131,650 | |
Li Ning Co. Ltd. | | | 43,500 | | | | 137,099 | |
Logan Property Holdings Co. Ltd. | | | 55,000 | | | | 86,587 | |
Longfor Group Holdings Ltd., 144A | | | 9,500 | | | | 47,679 | |
Luxshare Precision Industry Co. Ltd. (Class A Stock) | | | 7,100 | | | | 46,693 | |
Luye Pharma Group Ltd., 144A(a) | | | 173,500 | | | | 84,488 | |
Metallurgical Corp. of China Ltd. (Class H Stock) | | | 388,000 | | | | 67,446 | |
NetEase, Inc., ADR | | | 900 | | | | 310,464 | |
New China Life Insurance Co. Ltd. (Class H Stock) | | | 33,700 | | | | 116,619 | |
New Oriental Education & Technology Group, Inc., ADR* | | | 2,200 | | | | 280,852 | |
PICC Property & Casualty Co. Ltd. (Class H Stock) | | | 98,000 | | | | 93,564 | |
Ping An Insurance Group Co. of China Ltd. (Class H Stock) | | | 44,500 | | | | 458,575 | |
Poly Developments & Holdings Group Co. Ltd. (Class A Stock) | | | 23,173 | | | | 52,802 | |
Postal Savings Bank of China Co. Ltd. (Class H Stock), 144A | | | 42,000 | | | | 25,193 | |
Sany Heavy Industry Co. Ltd. (Class A Stock) | | | 16,700 | | | | 46,224 | |
Shandong Buchang Pharmaceuticals Co. Ltd. (Class A Stock) | | | 5,200 | | | | 16,176 | |
Shandong Weigao Group Medical Polymer Co. Ltd. (Class H Stock) | | | 72,000 | | | | 109,332 | |
See Notes to Financial Statements.
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| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
China (cont’d.) | | | | | | | | |
Shanghai M&G Stationery, Inc. (Class A Stock) | | | 4,688 | | | $ | 33,970 | |
Shanghai Pudong Development Bank Co. Ltd. (Class A Stock) | | | 42,400 | | | | 63,398 | |
Shanghai Yuyuan Tourist Mart Group Co. Ltd. (Class A Stock) | | | 39,400 | | | | 42,297 | |
Shanxi Xishan Coal & Electricity Power Co. Ltd. (Class A Stock) | | | 45,400 | | | | 30,243 | |
Shenzhen Goodix Technology Co. Ltd. (Class A Stock) | | | 1,100 | | | | 36,716 | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. (Class A Stock) | | | 1,600 | | | | 57,723 | |
Shenzhen Overseas Chinese Town Co. Ltd. (Class A Stock) | | | 31,000 | | | | 28,457 | |
Shimao Property Holdings Ltd. | | | 25,000 | | | | 100,364 | |
Shui On Land Ltd. | | | 965,000 | | | | 170,529 | |
Sichuan Swellfun Co. Ltd. (Class A Stock) | | | 3,800 | | | | 24,644 | |
Sinotruk Hong Kong Ltd. | | | 3,500 | | | | 7,042 | |
Sunac China Holdings Ltd. | | | 11,000 | | | | 48,593 | |
TAL Education Group, ADR* | | | 1,000 | | | | 54,190 | |
Tencent Holdings Ltd. | | | 28,300 | | | | 1,497,781 | |
Tingyi Cayman Islands Holding Corp. | | | 10,000 | | | | 17,642 | |
Uni-President China Holdings Ltd. | | | 44,000 | | | | 44,290 | |
Vipshop Holdings Ltd., ADR* | | | 13,800 | | | | 219,834 | |
Want Want China Holdings Ltd. | | | 26,000 | | | | 18,653 | |
Weichai Power Co. Ltd. (Class H Stock) | | | 82,000 | | | | 143,148 | |
Wens Foodstuffs Group Co. Ltd. (Class A Stock) | | | 11,300 | | | | 48,141 | |
Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd. (Class A Stock) | | | 9,900 | | | | 50,312 | |
XCMG Construction Machinery Co. Ltd. (Class A Stock) | | | 23,400 | | | | 18,313 | |
Yealink Network Technology Corp. Ltd. (Class A Stock) | | | 3,100 | | | | 39,489 | |
Yum China Holdings, Inc. | | | 600 | | | | 29,076 | |
Zhongsheng Group Holdings Ltd. | | | 3,000 | | | | 12,079 | |
Zoomlion Heavy Industry Science & Technology Co. Ltd. (Class A Stock) | | | 54,400 | | | | 49,108 | |
| | | | | | | | |
| | | | | | | 11,321,258 | |
| | |
Colombia 0.6% | | | | | | | | |
Bancolombia SA | | | 1,330 | | | | 8,513 | |
Ecopetrol SA | | | 322,154 | | | | 168,441 | |
| | | | | | | | |
| | | | | | | 176,954 | |
| | |
Greece 1.1% | | | | | | | | |
Hellenic Telecommunications Organization SA | | | 12,498 | | | | 164,556 | |
JUMBO SA | | | 9,817 | | | | 153,414 | |
| | | | | | | | |
| | | | | | | 317,970 | |
See Notes to Financial Statements.
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| PGIM QMA Emerging Markets Equity Fund | | | 11 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
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| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Hong Kong 0.2% | | | | | | | | |
Sino Biopharmaceutical Ltd. | | | 36,000 | | | $ | 52,586 | |
| | |
Hungary 0.2% | | | | | | | | |
Richter Gedeon Nyrt | | | 2,254 | | | | 48,243 | |
| | |
India 7.0% | | | | | | | | |
Bajaj Auto Ltd. | | | 452 | | | | 15,629 | |
Bajaj Finance Ltd. | | | 3,324 | | | | 101,377 | |
Bharti Infratel Ltd. | | | 18,839 | | | | 43,747 | |
Cipla Ltd. | | | 2,304 | | | | 17,959 | |
Coal India Ltd. | | | 6,613 | | | | 12,965 | |
Dr. Reddy’s Laboratories Ltd. | | | 1,368 | | | | 71,333 | |
Eicher Motors Ltd. | | | 63 | | | | 12,263 | |
GAIL India Ltd. | | | 66,984 | | | | 84,853 | |
HCL Technologies Ltd. | | | 29,428 | | | | 211,687 | |
HDFC Asset Management Co. Ltd., 144A | | | 224 | | | | 7,507 | |
Hindalco Industries Ltd. | | | 6,474 | | | | 11,058 | |
Hindustan Unilever Ltd. | | | 3,288 | | | | 95,584 | |
Housing Development Finance Corp. Ltd. | | | 2,901 | | | | 73,329 | |
Info Edge India Ltd. | | | 323 | | | | 10,813 | |
Infosys Ltd., ADR | | | 5,700 | | | | 52,611 | |
ITC Ltd. | | | 48,377 | | | | 116,519 | |
LIC Housing Finance Ltd. | | | 2,645 | | | | 9,860 | |
NTPC Ltd. | | | 136,426 | | | | 171,288 | |
Oil & Natural Gas Corp. Ltd. | | | 127,250 | | | | 134,270 | |
Petronet LNG Ltd. | | | 3,153 | | | | 10,141 | |
Power Grid Corp. of India Ltd. | | | 84,027 | | | | 180,572 | |
Reliance Industries Ltd. | | | 3,374 | | | | 65,514 | |
Reliance Industries Ltd., 144A, GDR | | | 2,913 | | | | 111,034 | |
Shriram Transport Finance Co. Ltd. | | | 904 | | | | 9,263 | |
Tata Steel Ltd. | | | 17,421 | | | | 68,031 | |
Tech Mahindra Ltd. | | | 28,178 | | | | 203,537 | |
Wipro Ltd. | | | 33,520 | | | | 84,983 | |
| | | | | | | | |
| | | | | | | 1,987,727 | |
| | |
Indonesia 1.2% | | | | | | | | |
Adaro Energy Tbk PT | | | 2,222,300 | | | | 137,022 | |
Gudang Garam Tbk PT | | | 14,800 | | | | 45,071 | |
Indofood CBP Sukses Makmur Tbk PT | | | 31,600 | | | | 20,978 | |
Indofood Sukses Makmur Tbk PT | | | 343,400 | | | | 150,364 | |
| | | | | | | | |
| | | | | | | 353,435 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Luxembourg 0.0% | | | | | | | | |
Reinet Investments SCA | | | 803 | | | $ | 12,787 | |
| | |
Malaysia 0.8% | | | | | | | | |
AMMB Holdings Bhd | | | 117,600 | | | | 81,125 | |
Dialog Group Bhd | | | 19,100 | | | | 14,723 | |
Hartalega Holdings Bhd | | | 9,900 | | | | 17,474 | |
Malaysia Airports Holdings Bhd | | | 5,300 | | | | 6,429 | |
MISC Bhd | | | 6,000 | | | | 10,960 | |
PPB Group Bhd | | | 3,000 | | | | 11,419 | |
RHB Bank Bhd | | | 73,300 | | | | 80,764 | |
| | | | | | | | |
| | | | | | | 222,894 | |
| | |
Mexico 2.3% | | | | | | | | |
America Movil SAB de CV (Class L Stock) | | | 332,300 | | | | 200,750 | |
Fibra Uno Administracion SA de CV, REIT | | | 16,700 | | | | 13,865 | |
Gruma SAB de CV (Class B Stock) | | | 1,120 | | | | 10,604 | |
Grupo Aeroportuario del Pacifico SAB de CV (Class B Stock) | | | 1,900 | | | | 11,795 | |
Grupo Aeroportuario del Sureste SAB de CV (Class B Stock) | | | 6,065 | | | | 60,602 | |
Kimberly-Clark de Mexico SAB de CV (Class A Stock) | | | 82,600 | | | | 116,698 | |
Wal-Mart de Mexico SAB de CV | | | 103,700 | | | | 250,290 | |
| | | | | | | | |
| | | | | | | 664,604 | |
| | |
Philippines 1.8% | | | | | | | | |
Globe Telecom, Inc. | | | 4,755 | | | | 206,838 | |
PLDT, Inc. | | | 9,850 | | | | 253,254 | |
SM Investments Corp. | | | 2,210 | | | | 36,851 | |
| | | | | | | | |
| | | | | | | 496,943 | |
| | |
Poland 0.8% | | | | | | | | |
CD Projekt SA | | | 2,349 | | | | 202,798 | |
KGHM Polska Miedz SA* | | | 710 | | | | 13,186 | |
Powszechna Kasa Oszczednosci Bank Polski SA | | | 2,779 | | | | 14,746 | |
| | | | | | | | |
| | | | | | | 230,730 | |
| | |
Qatar 1.9% | | | | | | | | |
Commercial Bank PSQC (The) | | | 162,515 | | | | 178,290 | |
Masraf Al Rayan QSC | | | 189,840 | | | | 198,598 | |
Qatar Islamic Bank SAQ | | | 37,488 | | | | 159,581 | |
| | | | | | | | |
| | | | | | | 536,469 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 13 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Russia 3.6% | | | | | | | | |
Gazprom PJSC | | | 80,830 | | | $ | 204,816 | |
Inter RAO UES PJSC | | | 450,000 | | | | 30,044 | |
LUKOIL PJSC | | | 3,714 | | | | 233,233 | |
MMC Norilsk Nickel PJSC | | | 432 | | | | 116,449 | |
Mobile TeleSystems PJSC, ADR | | | 800 | | | | 6,856 | |
Novatek PJSC, GDR | | | 887 | | | | 125,506 | |
Polyus PJSC | | | 693 | | | | 110,998 | |
Rosneft Oil Co. PJSC | | | 1,790 | | | | 7,990 | |
Sberbank of Russia PJSC, ADR | | | 8,306 | | | | 87,774 | |
Surgutneftegas PJSC | | | 37,200 | | | | 18,058 | |
Tatneft PJSC | | | 8,924 | | | | 63,269 | |
X5 Retail Group NV, GDR | | | 687 | | | | 20,372 | |
| | | | | | | | |
| | | | | | | 1,025,365 | |
| | |
South Africa 3.8% | | | | | | | | |
Anglo American Platinum Ltd. | | | 2,768 | | | | 145,775 | |
Aspen Pharmacare Holdings Ltd.* | | | 25,373 | | | | 158,245 | |
Impala Platinum Holdings Ltd. | | | 16,526 | | | | 100,146 | |
Investec Ltd. | | | 24,414 | | | | 50,535 | |
Kumba Iron Ore Ltd. | | | 7,408 | | | | 140,563 | |
Life Healthcare Group Holdings Ltd. | | | 79,471 | | | | 76,486 | |
Momentum Metropolitan Holdings | | | 108,753 | | | | 102,440 | |
MultiChoice Group* | | | 2,184 | | | | 10,272 | |
Naspers Ltd. (Class N Stock) | | | 1,125 | | | | 176,321 | |
Netcare Ltd. | | | 6,499 | | | | 5,444 | |
Old Mutual Ltd. | | | 27,166 | | | | 19,647 | |
PSG Group Ltd. | | | 800 | | | | 6,864 | |
SPAR Group Ltd. (The) | | | 8,282 | | | | 79,119 | |
| | | | | | | | |
| | | | | | | 1,071,857 | |
| | |
South Korea 11.2% | | | | | | | | |
BNK Financial Group, Inc. | | | 2,507 | | | | 10,340 | |
Daelim Industrial Co. Ltd. | | | 1,873 | | | | 134,216 | |
Hana Financial Group, Inc. | | | 8,481 | | | | 192,718 | |
Hankook Tire & Technology Co. Ltd. | | | 392 | | | | 6,752 | |
Hyundai Glovis Co. Ltd. | | | 236 | | | | 19,587 | |
Hyundai Mobis Co. Ltd. | | | 1,280 | | | | 179,220 | |
Kakao Corp. | | | 289 | | | | 43,763 | |
Kangwon Land, Inc. | | | 612 | | | | 12,558 | |
KB Financial Group, Inc. | | | 7,797 | | | | 220,368 | |
Kia Motors Corp. | | | 9,233 | | | | 225,503 | |
Korea Investment Holdings Co. Ltd. | | | 1,050 | | | | 43,009 | |
Korea Zinc Co. Ltd. | | | 45 | | | | 14,295 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
KT&G Corp. | | | 3,141 | | | $ | 208,557 | |
Kumho Petrochemical Co. Ltd. | | | 3,232 | | | | 201,554 | |
LG Innotek Co. Ltd. | | | 200 | | | | 21,712 | |
NCSoft Corp. | | | 84 | | | | 44,247 | |
POSCO | | | 477 | | | | 71,716 | |
Samsung Card Co. Ltd. | | | 2,523 | | | | 61,996 | |
Samsung Electronics Co. Ltd. | | | 28,843 | | | | 1,181,563 | |
Shinhan Financial Group Co. Ltd. | | | 7,403 | | | | 186,099 | |
SK Hynix, Inc. | | | 1,326 | | | | 89,911 | |
SK Telecom Co. Ltd. | | | 107 | | | | 18,596 | |
| | | | | | | | |
| | | | | | | 3,188,280 | |
| | |
Taiwan 11.3% | | | | | | | | |
Asia Cement Corp. | | | 19,000 | | | | 27,940 | |
Chicony Electronics Co. Ltd. | | | 60,000 | | | | 169,921 | |
China Development Financial Holding Corp. | | | 233,000 | | | | 70,807 | |
Feng TAY Enterprise Co. Ltd. | | | 1,900 | | | | 10,878 | |
Globalwafers Co. Ltd. | | | 1,000 | | | | 12,829 | |
Hon Hai Precision Industry Co. Ltd. | | | 138,000 | | | | 356,586 | |
Hua Nan Financial Holdings Co. Ltd. | | | 43,000 | | | | 28,014 | |
Novatek Microelectronics Corp. | | | 3,000 | | | | 18,661 | |
Pegatron Corp. | | | 36,000 | | | | 79,648 | |
Pou Chen Corp. | | | 12,000 | | | | 11,339 | |
Powertech Technology, Inc. | | | 57,000 | | | | 191,706 | |
Realtek Semiconductor Corp. | | | 6,000 | | | | 51,453 | |
SinoPac Financial Holdings Co. Ltd. | | | 492,000 | | | | 200,665 | |
Taiwan Cement Corp. | | | 27,000 | | | | 39,150 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | 148,000 | | | | 1,499,328 | |
Win Semiconductors Corp. | | | 2,000 | | | | 17,891 | |
Wistron Corp. | | | 15,000 | | | | 14,170 | |
Wiwynn Corp. | | | 8,000 | | | | 205,626 | |
Yuanta Financial Holding Co. Ltd. | | | 390,000 | | | | 222,492 | |
| | | | | | | | |
| | | | | | | 3,229,104 | |
| | |
Thailand 1.2% | | | | | | | | |
Advanced Info Service PCL | | | 18,200 | | | | 111,162 | |
Bangkok Dusit Medical Services PCL | | | 19,200 | | | | 12,256 | |
BTS Group Holdings PCL | | | 410,200 | | | | 144,838 | |
Charoen Pokphand Foods PCL | | | 60,000 | | | | 49,902 | |
PTT Exploration & Production PCL | | | 7,500 | | | | 19,344 | |
| | | | | | | | |
| | | | | | | 337,502 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 15 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Turkey 0.5% | | | | | | | | |
Anadolu Efes Biracilik Ve Malt Sanayii A/S | | | 8,996 | | | $ | 23,669 | |
Coca-Cola Icecek A/S | | | 20,071 | | | | 105,965 | |
Eregli Demir ve Celik Fabrikalari TAS | | | 7,416 | | | | 8,589 | |
Turkcell Iletisim Hizmetleri A/S | | | 6,332 | | | | 12,672 | |
| | | | | | | | |
| | | | | | | 150,895 | |
| | | | | | | | |
TOTAL COMMON STOCKS
(cost $25,993,331) | | | | | | | 26,447,025 | |
| | | | | | | | |
| | |
EXCHANGE-TRADED FUNDS 4.4% | | | | | | | | |
| | |
United States | | | | | | | | |
iShares MSCI Emerging Markets ETF(a) | | | 18,049 | | | | 661,315 | |
iShares MSCI Saudi Arabia ETF | | | 23,800 | | | | 608,566 | |
| | | | | | | | |
TOTAL EXCHANGE-TRADED FUNDS
(cost $1,354,595) | | | | | | | 1,269,881 | |
| | | | | | | | |
| | |
PREFERRED STOCKS 2.8% | | | | | | | | |
| | |
Brazil 1.3% | | | | | | | | |
Banco Bradesco SA (PRFC) | | | 15,510 | | | | 54,791 | |
Centrais Eletricas Brasileiras SA (PRFC B) | | | 21,500 | | | | 109,162 | |
Cia Energetica de Minas Gerais (PRFC) | | | 4,900 | | | | 8,533 | |
Lojas Americanas SA (PRFC) | | | 3,900 | | | | 17,930 | |
Petroleo Brasileiro SA (PRFC) | | | 50,900 | | | | 169,046 | |
Telefonica Brasil SA (PRFC) | | | 2,400 | | | | 20,324 | |
| | | | | | | | |
| | | | | | | 379,786 | |
| | |
Chile 0.5% | | | | | | | | |
Embotelladora Andina SA (PRFC B) | | | 54,556 | | | | 130,297 | |
Sociedad Quimica y Minera de Chile SA (PRFC B) | | | 572 | | | | 13,599 | |
| | | | | | | | |
| | | | | | | 143,896 | |
| | |
Colombia 0.4% | | | | | | | | |
Bancolombia SA (PRFC) | | | 17,018 | | | | 111,935 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
PREFERRED STOCKS (Continued) | | | | | | | | |
| | |
South Korea 0.6% | | | | | | | | |
Samsung Electronics Co. Ltd. (PRFC) | | | 4,404 | | | $ | 152,236 | |
| | | | | | | | |
TOTAL PREFERRED STOCKS
(cost $1,268,094) | | | | | | | 787,853 | |
| | | | | | | | |
TOTAL LONG-TERM INVESTMENTS
(cost $28,616,020) | | | | | | | 28,504,759 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENTS 2.6% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUNDS | | | | | | | | |
PGIM Core Ultra Short Bond Fund(w) | | | 161,903 | | | | 161,903 | |
PGIM Institutional Money Market Fund
(cost $566,936; includes $566,650 of cash collateral for securities on loan)(b)(w) | | | 567,532 | | | | 567,418 | |
| | | | | | | | |
TOTAL SHORT-TERM INVESTMENTS
(cost $728,839) | | | | | | | 729,321 | |
| | | | | | | | |
TOTAL INVESTMENTS 102.7%
(cost $29,344,859) | | | | | | | 29,234,080 | |
Liabilities in excess of other assets (2.7)% | | | | | | | (766,772 | ) |
| | | | | | | | |
NET ASSETS 100.0% | | | | | | $ | 28,467,308 | |
| | | | | | | | |
Below is a list of the abbreviation(s) used in the semiannual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
ADR—American Depositary Receipt
ETF—Exchange-Traded Fund
GDR—Global Depositary Receipt
LIBOR—London Interbank Offered Rate
MSCI—Morgan Stanley Capital International
PJSC—Public Joint-Stock Company
PRFC—Preference Shares
REITs—Real Estate Investment Trust
UTS—Unit Trust Security
| * | 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 $542,354; cash collateral of $566,650 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (w) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund. |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 17 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2020 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | |
Brazil | | $ | 709,543 | | | $ | — | | | $ | — | |
Chile | | | 311,879 | | | | — | | | | — | |
China | | | 3,475,496 | | | | 7,845,762 | | | | — | |
Colombia | | | 176,954 | | | | — | | | | — | |
Greece | | | — | | | | 317,970 | | | | — | |
Hong Kong | | | — | | | | 52,586 | | | | — | |
Hungary | | | — | | | | 48,243 | | | | — | |
India | | | 52,611 | | | | 1,935,116 | | | | — | |
Indonesia | | | — | | | | 353,435 | | | | — | |
Luxembourg | | | — | | | | 12,787 | | | | — | |
Malaysia | | | — | | | | 222,894 | | | | — | |
Mexico | | | 664,604 | | | | — | | | | — | |
Philippines | | | — | | | | 496,943 | | | | — | |
Poland | | | — | | | | 230,730 | | | | — | |
Qatar | | | — | | | | 536,469 | | | | — | |
Russia | | | 6,856 | | | | 1,018,509 | | | | — | |
South Africa | | | — | | | | 1,071,857 | | | | — | |
South Korea | | | — | | | | 3,188,280 | | | | — | |
Taiwan | | | — | | | | 3,229,104 | | | | — | |
Thailand | | | — | | | | 337,502 | | | | — | |
Turkey | | | — | | | | 150,895 | | | | — | |
Exchange-Traded Funds | | | | | | | | | | | | |
United States | | | 1,269,881 | | | | — | | | | — | |
Preferred Stocks | | | | | | | | | | | | |
Brazil | | | 379,786 | | | | — | | | | — | |
Chile | | | 143,896 | | | | — | | | | — | |
Colombia | | | 111,935 | | | | — | | | | — | |
South Korea | | | — | | | | 152,236 | | | | — | |
Affiliated Mutual Funds | | | 729,321 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 8,032,762 | | | $ | 21,201,318 | | | $ | — | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2020 were as follows:
| | | | |
Banks | | | 13.9 | % |
Internet & Direct Marketing Retail | | | 9.7 | |
Semiconductors & Semiconductor Equipment | | | 6.8 | |
Technology Hardware, Storage & Peripherals | | | 6.3 | |
Interactive Media & Services | | | 6.1 | |
Oil, Gas & Consumable Fuels | | | 5.7 | |
Exchange-Traded Funds | | | 4.4 | |
Wireless Telecommunication Services | | | 3.5 | |
Insurance | | | 3.5 | |
Metals & Mining | | | 3.2 | |
Affiliated Mutual Funds (2.0% represents investments purchased with collateral from | | | | |
securities on loan) | | | 2.6 | |
Real Estate Management & Development | | | 2.6 | |
Construction Materials | | | 2.5 | |
Pharmaceuticals | | | 2.4 | |
Entertainment | | | 2.3 | |
IT Services | | | 2.0 | |
Food & Staples Retailing | | | 1.7 | |
Electronic Equipment, Instruments & Components | | | 1.6 | |
Food Products | | | 1.4 | |
Tobacco | | | 1.2 | |
Electric Utilities | | | 1.2 | |
Diversified Consumer Services | | | 1.2 | |
Beverages | | | 1.2 | |
Machinery | | | 1.1 | |
Textiles, Apparel & Luxury Goods | | | 0.9 | |
Independent Power & Renewable Electricity Producers | | | 0.9 | |
Construction & Engineering | | | 0.9 | |
Automobiles | | | 0.9 | |
Industrial Conglomerates | | | 0.9 | |
Diversified Telecommunication Services | | | 0.9 | |
Specialty Retail | | | 0.8 | |
Diversified Financial Services | | | 0.8 | |
| | | | |
Chemicals | | | 0.7 | % |
Household Products | | | 0.7 | |
Health Care Equipment & Supplies | | | 0.7 | |
Auto Components | | | 0.6 | |
Consumer Finance | | | 0.6 | |
Road & Rail | | | 0.5 | |
Commercial Services & Supplies | | | 0.4 | |
Health Care Providers & Services | | | 0.4 | |
Electrical Equipment | | | 0.4 | |
Capital Markets | | | 0.3 | |
Gas Utilities | | | 0.3 | |
Personal Products | | | 0.3 | |
Thrifts & Mortgage Finance | | | 0.3 | |
Airlines | | | 0.3 | |
Transportation Infrastructure | | | 0.2 | |
Hotels, Restaurants & Leisure | | | 0.2 | |
Communications Equipment | | | 0.1 | |
Building Products | | | 0.1 | |
Life Sciences Tools & Services | | | 0.1 | |
Air Freight & Logistics | | | 0.1 | |
Professional Services | | | 0.1 | |
Energy Equipment & Services | | | 0.1 | |
Equity Real Estate Investment Trusts (REITs) | | | 0.1 | |
Multiline Retail | | | 0.0 | * |
Marine | | | 0.0 | * |
Media | | | 0.0 | * |
| | | | |
| | | 102.7 | |
Liabilities in excess of other assets | | | (2.7 | ) |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity contracts risk. See the Notes to Financial Statements for additional detail regarding these
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 19 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
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.
The Fund did not hold any derivative instruments as of April 30, 2020, accordingly, no derivative positions were presented in the Statement of Assets and Liabilities.
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2020 are as follows:
| | | | | | | | |
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Rights(1) | | | Warrants(1) | |
Equity contracts | | $ | 68 | | | $ | 622 | |
| | | | | | | | |
| (1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
For the six months ended April 30, 2020, the Fund did not have any change in unrealized appreciation (depreciation) on derivatives in the Statement of Operations.
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right 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 | | $ | 542,354 | | | $ | (542,354 | ) | | $ | — | |
| | | | | | | | | | | | |
| (1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
Statement of Assets and Liabilities (unaudited)
as of April 30, 2020
| | | | |
Assets | | | | |
Investments at value, including securities on loan of $542,354: | | | | |
Unaffiliated investments (cost $28,616,020) | | $ | 28,504,759 | |
Affiliated investments (cost $728,839) | | | 729,321 | |
Foreign currency, at value (cost $15,475) | | | 15,499 | |
Dividends receivable | | | 39,534 | |
Receivable for Fund shares sold | | | 21,060 | |
Tax reclaim receivable | | | 359 | |
Prepaid expenses | | | 271 | |
| | | | |
Total Assets | | | 29,310,803 | |
| | | | |
| |
Liabilities | | | | |
Payable to broker for collateral for securities on loan | | | 566,650 | |
Payable for investments purchased | | | 147,994 | |
Accrued expenses and other liabilities | | | 83,909 | |
Payable for Fund shares reacquired | | | 38,253 | |
Management fee payable | | | 6,635 | |
Affiliated transfer agent fee payable | | | 54 | |
| | | | |
Total Liabilities | | | 843,495 | |
| | | | |
| |
Net Assets | | $ | 28,467,308 | |
| | | | |
| | | | | |
Net assets were comprised of: | | | | |
Shares of beneficial interest, at par | | $ | 2,935 | |
Paid-in capital in excess of par | | | 30,957,365 | |
Total distributable earnings (loss) | | | (2,492,992 | ) |
| | | | |
Net assets, April 30, 2020 | | $ | 28,467,308 | |
| | | | |
| |
Class R6 | | | | |
Net asset value, offering price and redemption price per share,
($28,467,308 ÷ 2,935,304 shares of beneficial interest issued and outstanding) | | $ | 9.70 | |
| | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 21 | |
Statement of Operations (unaudited)
Six Months Ended April 30, 2020
| | | | |
Net Investment Income (Loss) | | | | |
Income | | | | |
Unaffiliated dividend income (net of $45,792 foreign withholding tax) | | $ | 327,874 | |
Income from securities lending, net (including affiliated income of $1,071) | | | 1,748 | |
Affiliated dividend income | | | 772 | |
| | | | |
Total income | | | 330,394 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 113,245 | |
Custodian and accounting fees | | | 62,060 | |
Audit fee | | | 16,117 | |
Fund data services | | | 12,121 | |
Shareholders’ reports | | | 8,939 | |
Legal fees and expenses | | | 8,265 | |
Trustees’ fees | | | 5,591 | |
Pricing fees | | | 4,825 | |
Transfer agent’s fees and expenses (including affiliated expense of $157) | | | 168 | |
Registration fees | | | 31 | |
Miscellaneous | | | 3,452 | |
| | | | |
Total expenses | | | 234,814 | |
Less: Fee waiver and/or expense reimbursement | | | (53,623 | ) |
| | | | |
Net expenses | | | 181,191 | |
| | | | |
Net investment income (loss) | | | 149,203 | |
| | | | |
| |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $(1,176)) | | | (703,640 | ) |
Foreign currency transactions | | | (15,979 | ) |
| | | | |
| | | (719,619 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $385) | | | (3,015,153 | ) |
Foreign currencies | | | (3,957 | ) |
| | | | |
| | | (3,019,110 | ) |
| | | | |
Net gain (loss) on investment and foreign currency transactions | | | (3,738,729 | ) |
| | | | |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | (3,589,526 | ) |
| | | | |
See Notes to Financial Statements.
Statements of Changes in Net Assets (unaudited)
| | | | | | | | |
| | |
| | | Six Months Ended | | | Year Ended | |
| | |
| | | April 30, 2020 | | | October 31, 2019 | |
Increase (Decrease) in Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 149,203 | | | $ | 491,320 | |
Net realized gain (loss) on investment and foreign currency transactions | | | (719,619 | ) | | | (1,488,263 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | (3,019,110 | ) | | | 2,574,931 | |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | (3,589,526 | ) | | | 1,577,988 | |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class R6 | | | (649,151 | ) | | | (787,341 | ) |
| | | | | | | | |
| | |
Fund share transactions | | | | | | | | |
Net proceeds from shares sold | | | 3,456,926 | | | | 2,606,831 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 649,151 | | | | 787,341 | |
Cost of shares reacquired | | | (1,204,302 | ) | | | (1,525,185 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 2,901,775 | | | | 1,868,987 | |
| | | | | | | | |
Total increase (decrease) | | | (1,336,902 | ) | | | 2,659,634 | |
| | |
Net Assets: | | | | | | | | |
Beginning of period | | | 29,804,210 | | | | 27,144,576 | |
| | | | | | | | |
End of period | | $ | 28,467,308 | | | $ | 29,804,210 | |
| | | | | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 23 | |
Notes to Financial Statements (unaudited)
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 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, which is a non-diversified fund for purposes of the 1940 Act and may invest a greater percentage of their assets in the securities of a single company or other issuer than a diversified fund. Investing in 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. These financial statements relate only to the PGIM QMA Emerging Markets Equity Fund (the “Fund”).
The investment objective of the Fund is to seek to provide returns in excess of the Morgan Stanley Capital International Emerging Markets Index over full market cycles.
1. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of their financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. PIP2’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820—Fair Value Measurements and Disclosures.
Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures or options, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Fund is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 25 | |
Notes to Financial Statements (unaudited) (continued)
general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the
receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
Warrants and Rights: The Fund held warrants and rights acquired either through a direct purchase or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Fund until exercised, sold or expired. Warrants and rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Fund becomes aware of such dividends. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 27 | |
Notes to Financial Statements (unaudited) (continued)
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: The Fund expects to pay dividends from net investment income and distributions from net realized capital gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
The Fund has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. In addition, under the management agreement, the Manager provides all of the administrative functions necessary for the organization, operation and management of the Fund. The Manager administers the corporate affairs of the Fund and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund’s custodian and the Fund’s transfer agent. The Manager is also responsible for the staffing and management of dedicated groups of legal, marketing, compliance and related personnel necessary for the operation of the Fund. The legal, marketing, compliance and related personnel are also responsible for the management and oversight of the various service providers to the Fund, including, but not limited to, the custodian, transfer agent, and accounting agent.
The Manager has entered into a subadvisory agreement with QMA LLC (“QMA”). The subadvisory agreement provides that QMA will furnish investment advisory services in connection with the management of the Fund. In connection therewith, QMA is obligated to keep certain books and records of the Fund. The Manager pays for the services of QMA, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.75% of the Fund’s average daily net assets.
The Manager has contractually agreed, through February 28, 2021, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.20% of average daily net assets for Class R6 shares. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
PIP2, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class R6 shares of the Fund. No distribution or service fees are paid to PIMS as distributor for Class R6 shares of the Fund.
PGIM Investments, PIMS and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Trust’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of PIP2, registered under the 1940 Act and managed by PGIM Investments. Through the Fund’s investments in the mentioned underlying funds, PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services. 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 as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Pursuant to the Rule 17a-7 procedures and consistent with
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 29 | |
Notes to Financial Statements (unaudited) (continued)
guidance issued by the Securities and Exchange Commission (“SEC”), the Trust’s Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such 17a-7 transactions were effected in accordance with the Fund’s Rule 17a-7 procedures. For the reporting period ended April 30, 2020, no 17a-7 transactions were entered into by the Fund.
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2020, were $16,160,036 and $13,851,250, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated investments for the reporting period ended April 30, 2020, is presented as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value,
Beginning
of Period | | | Cost of
Purchases | | | Proceeds
from Sales | | | Change in
Unrealized
Gain (Loss) | | | Realized
Gain (Loss) | | | Value, End
of Period | | | Shares, End
of Period | | | Income | |
| | PGIM Core Ultra Short Bond Fund* | |
| $ | — | | | $ | 4,201,365 | | | $ | 4,039,462 | | | $ | — | | | $ | — | | | $ | 161,903 | | | | 161,903 | | | $ | 772 | |
| | PGIM Institutional Money Market Fund* | |
| | 640,956 | | | | 4,400,691 | | | | 4,473,438 | | | | 385 | | | | (1,176) | | | | 567,418 | | | | 567,532 | | | | 1,071** | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 640,956 | | | $ | 8,602,056 | | | $ | 8,512,900 | | | $ | 385 | | | $ | (1,176) | | | $ | 729,321 | | | | | | | $ | 1,843 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| * | The Fund did not have any capital gain distributions during the reporting period. |
| ** | Represents the affiliated amount of securities lending income shown on the Statement of Operations. |
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2020 were as follows:
| | | | |
Tax Basis | | $ | 29,501,315 | |
| | | | |
Gross Unrealized Appreciation | | | 3,796,487 | |
Gross Unrealized Depreciation | | | (4,063,722 | ) |
| | | | |
Net Unrealized Depreciation | | $ | (267,235 | ) |
| | | | |
The book basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Fund had a capital loss carryforward as of October 31, 2019 of approximately $1,546,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2019 are subject to such review.
6. Capital and Ownership
The Fund offers Class R6 shares. Class R6 shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.
PIP2 has authorized the Fund to issue an unlimited number of shares of beneficial interest of the Fund at $0.001 par value per share.
As of April 30, 2020, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
| | | | | | | | |
| | | Number of Shares | | | Percentage of
Outstanding Shares | |
Class R6 | | | 2,935,304 | | | | 100 | % |
At reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
| | | | | | |
| Affiliated | | Unaffiliated |
Number of
Shareholders | | Percentage of
Outstanding Shares | | Number of
Shareholders | | Percentage of
Outstanding Shares |
| 2 | | 82% | | — | | —% |
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
Class R6 | | Shares | | | Amount | |
Six months ended April 30, 2020: | | | | | | | | |
Shares sold | | | 324,528 | | | $ | 3,456,926 | |
Shares issued in reinvestment of dividends and distributions | | | 56,744 | | | | 649,151 | |
Shares reacquired | | | (122,325 | ) | | | (1,204,302 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 258,947 | | | $ | 2,901,775 | |
| | | | | | | | |
Year ended October 31, 2019: | | | | | | | | |
Shares sold | | | 237,477 | | | $ | 2,606,831 | |
Shares issued in reinvestment of dividends and distributions | | | 74,138 | | | | 787,341 | |
Shares reacquired | | | (139,441 | ) | | | (1,525,185 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 172,174 | | | $ | 1,868,987 | |
| | | | | | | | |
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 31 | |
Notes to Financial Statements (unaudited) (continued)
7. Borrowings
PIP2, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the current SCA in effect at the reporting period-end.
| | |
| | | SCA |
Term of Commitment | | 10/3/2019 – 10/1/2020 |
| |
Total Commitment | | $ 1,222,500,000* |
| |
Annualized Commitment Fee on the Unused Portion of the SCA | | 0.15% |
| |
Annualized Interest Rate on Borrowings | | 1.20% plus the higher of
(1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
| * | Effective March 31, 2020, the SCA’s total commitment was increased from $900,000,000 to $1,162,500,000 and subsequently, effective April 7, 2020 was increased to $1,222,500,000. |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2020.
8. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below:
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility.
Equity and Equity-Related Securities Risks: The value of a particular security could go down and you could lose money. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. The Fund’s holdings can vary significantly from broad market indexes and the performance of the Fund can deviate from the performance of these indexes. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Geographic Concentration Risk: The Fund’s performance may be closely tied to the market, economic, political, regulatory or other conditions in the countries or regions in which the Fund invests. This can result in more pronounced risks based upon conditions that impact one or more countries or regions more or less than other countries or regions.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Market and Credit Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of an investment in the Fund will decline. Additionally, the Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 33 | |
Notes to Financial Statements (unaudited) (continued)
9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Fund’s policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has adopted the aspects related to the removal and modification of certain fair value measurement disclosures under the ASU. The Manager continues to evaluate certain other provisions of the ASU and does not expect a material impact to financial statement disclosures.
Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class R6 Shares | |
| | | Six Months
Ended
April 30, | | | | | | Year Ended October 31, | | | | | | November 29,
2016(a)
through
October 31, | |
| | 2020 | | | 2019 | | | 2018 | | | | | | 2017 | |
| Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $11.14 | | | | | | | | $10.84 | | | | $13.21 | | | | | | | | $10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.05 | | | | | | | | 0.19 | | | | 0.20 | | | | | | | | 0.16 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.25 | ) | | | | | | | 0.43 | | | | (1.71 | ) | | | | | | | 3.09 | |
| Total from investment operations | | | (1.20 | ) | | | | | | | 0.62 | | | | (1.51 | ) | | | | | | | 3.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.24 | ) | | | | | | | (0.21 | ) | | | (0.17 | ) | | | | | | | (0.04 | ) |
| Distributions from net realized gains | | | - | | | | | | | | (0.11 | ) | | | (0.69 | ) | | | | | | | - | |
| Total dividends and distributions | | | (0.24 | ) | | | | | | | (0.32 | ) | | | (0.86 | ) | | | | | | | (0.04 | ) |
| Net asset value, end of period | | | $9.70 | | | | | | | | $11.14 | | | | $10.84 | | | | | | | | $13.21 | |
| Total Return(c): | | | (11.09)% | | | | | | | | 5.82% | | | | (12.31)% | | | | | | | | 32.58% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | |
| Net assets, end of period (000) | | | $28,467 | | | | | | | | $29,804 | | | | $27,145 | | | | | | | | $28,470 | |
| Average net assets (000) | | | $30,364 | | | | | | | | $28,694 | | | | $29,759 | | | | | | | | $24,017 | |
| Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 1.20% | (e) | | | | | | | 1.20% | | | | 1.20% | | | | | | | | 1.20% | (e) |
| Expenses before waivers and/or expense reimbursement | | | 1.56% | (e) | | | | | | | 1.70% | | | | 1.54% | | | | | | | | 1.74% | (e) |
| Net investment income (loss) | | | 0.99% | (e) | | | | | | | 1.71% | | | | 1.56% | | | | | | | | 1.49% | (e) |
| Portfolio turnover rate(f) | | | 47% | | | | | | | | 117% | | | | 118% | | | | | | | | 102% | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
| | | | |
| PGIM QMA Emerging Markets Equity Fund | | | 35 | |
Fund Liquidity Risk Management Program (Unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Fund. The Fund’s Board of Trustees (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includes no less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Fund’s Board.
At a meeting of the Board of Trustees on March 3-5, 2020, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any material changes to the LRMP for the period from the inception of the Fund’s program on December 1, 2018 through December 31, 2019 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to be appropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
| | | | |
| | |
| ∎ MAIL | | ∎ TELEPHONE | | ∎ WEBSITE |
655 Broad Street Newark, NJ 07102 | | (800) 225-1852 | | pgiminvestments.com |
|
| PROXY VOTING |
| The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
|
| TRUSTEES |
| Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Michael S. Hyland • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
|
| OFFICERS |
| Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Jonathan D. Shain, Assistant Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
| | | | |
| MANAGER | | PGIM Investments LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| SUBADVISER | | QMA LLC | | Gateway Center Two
100 Mulberry Street
Newark, NJ 07102 |
|
| DISTRIBUTOR | | Prudential Investment
Management Services LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street
New York, NY 10286 |
|
| TRANSFER AGENT | | Prudential Mutual Fund
Services LLC | | PO Box 9658
Providence, RI 02940 |
|
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | PricewaterhouseCoopers LLP | | 300 Madison Avenue
New York, NY 10017 |
|
| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue
New York, NY 10019 |
|
|
| An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. An investor may obtain the prospectus by visiting our website at pgiminvestments.com or by calling (800) 225-1852. The prospectus should be read carefully before investing. |
|
| SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
| Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM QMA Emerging Markets Equity Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
|
| AVAILABILITY OF PORTFOLIO HOLDINGS |
| The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
| | | | |
ARE NOT INSURED BY THE FDIC OR ANY
FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OF OR GUARANTEED
BY ANY BANK OR ANY BANK AFFILIATE |
PGIM QMA EMERGING MARKETS EQUITY FUND
| | |
| NASDAQ | | PQEMX |
| CUSIP | | 74440E706 |
PGIM QMA INTERNATIONAL DEVELOPED MARKETS INDEX FUND
SEMIANNUAL REPORT
APRIL 30, 2020
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an email request to PGIM Investments at shareholderreports@pgim.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to shareholderreports@pgim.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2020 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company. © 2020 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
| | |
| 2 | | Visit our website at pgiminvestments.com |
Letter from the President
Dear Shareholder:
We hope you find the semiannual report for PGIM QMA International Developed Markets Index Fund informative and useful. The report covers performance for the six-month period ended April 30, 2020.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM QMA International Developed Markets Index Fund
June 15, 2020
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 3 | |
Your Fund’s Performance
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted.
| | | | | | |
| |
| | | Average Annual Total Returns as of 4/30/20 |
| | |
| | | (without sales charges) | | (with sales charges) |
| | | Six Months* (%) | | One Year (%) | | Since Inception (%) |
| Fund | | –13.82 | | –11.64 | | 2.89 (11/17/16) |
| FTSE Developed Markets Ex-North America Net Index | | |
| | | –13.85 | | –11.18 | | 3.32 |
*Not annualized
Source: PGIM Investments LLC and Lipper Inc.
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns for the Index are measured from the closest month-end to the Fund’s inception date.
Benchmark Definitions
FTSE Developed Markets Ex-North America Net Index—The FTSE Developed Markets Ex-North America Net Index is a part of a range of indexes designed to help investors benchmark their international Investments. The index comprises large- and mid-cap stocks providing coverage of developed markets, excluding the US and Canada. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.
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.
| | |
| 4 | | Visit our website at pgiminvestments.com |
Presentation of Fund Holdings as of 4/30/20
| | | | | | |
| | | |
| Ten Largest Holdings | | Line of Business | | Country | | % of Net Assets |
| iShares MSCI EAFE ETF | | Exchange Traded Fund | | United States | | 4.1% |
| Nestle SA | | Food Products | | Switzerland | | 2.1% |
| Roche Holding AG | | Pharmaceuticals | | Switzerland | | 1.7% |
| Samsung Electronics Co. Ltd. | | Technology Hardware, Storage & Peripherals | | South Korea | | 1.3% |
| Novartis AG | | Pharmaceuticals | | Switzerland | | 1.3% |
| Toyota Motor Corp. | | Automobiles | | Japan | | 1.1% |
| AstraZeneca PLC | | Pharmaceuticals | | United Kingdom | | 1.0% |
| ASML Holding NV | | Semiconductors & Semiconductor Equipment | | Netherlands | | 0.8% |
| SAP SE | | Software | | Germany | | 0.8% |
| AIA Group Ltd. | | Insurance | | Hong Kong | | 0.8% |
Holdings reflect only long-term investments and are subject to change.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 5 | |
Fees and Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2020. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| 6 | | Visit our website at pgiminvestments.com |
| | | | | | | | | | | | | | | | |
| | | | |
PGIM QMA
International
Developed Markets
Index Fund | | Beginning Account
Value
November 1, 2019 | | | Ending Account
Value
April 30, 2020 | | | Annualized
Expense Ratio
Based on the
Six-Month Period | | | Expenses Paid
During the
Six-Month Period* | |
| Actual | | $ | 1,000.00 | | | $ | 861.80 | | | | 0.30 | % | | $ | 1.39 | |
| Hypothetical | | $ | 1,000.00 | | | $ | 1,023.37 | | | | 0.30 | % | | $ | 1.51 | |
*Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 182 days in the six-month period ended April 30, 2020, and divided by the 366 days in the Fund's fiscal year ending October 31, 2020 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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| PGIM QMA International Developed Markets Index Fund | | | 7 | |
Schedule of Investments (unaudited)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
LONG-TERM INVESTMENTS 96.3% | | | | | | | | |
| | |
COMMON STOCKS 91.5% | | | | | | | | |
| | |
Australia 6.3% | | | | | | | | |
Adelaide Brighton Ltd. | | | 1,140 | | | $ | 2,016 | |
Afterpay Touch Group Ltd.* | | | 750 | | | | 15,056 | |
AGL Energy Ltd. | | | 2,155 | | | | 23,686 | |
ALS Ltd. | | | 1,532 | | | | 6,737 | |
Altium Ltd. | | | 379 | | | | 8,357 | |
Alumina Ltd. | | | 8,917 | | | | 9,992 | |
AMP Ltd.* | | | 11,936 | | | | 11,003 | |
Ansell Ltd. | | | 426 | | | | 7,915 | |
APA Group | | | 4,075 | | | | 28,550 | |
Aristocrat Leisure Ltd. | | | 2,177 | | | | 35,701 | |
ASX Ltd. | | | 662 | | | | 35,031 | |
Atlas Arteria Ltd. | | | 3,102 | | | | 12,574 | |
Aurizon Holdings Ltd. | | | 6,248 | | | | 19,057 | |
AusNet Services | | | 5,831 | | | | 7,107 | |
Australia & New Zealand Banking Group Ltd. | | | 9,611 | | | | 105,158 | |
Bank of Queensland Ltd. | | | 1,867 | | | | 6,311 | |
Beach Energy Ltd. | | | 5,326 | | | | 5,197 | |
Bendigo & Adelaide Bank Ltd. | | | 1,828 | | | | 7,757 | |
BHP Group Ltd. | | | 10,009 | | | | 209,207 | |
BHP Group PLC | | | 7,063 | | | | 117,947 | |
BlueScope Steel Ltd. | | | 1,694 | | | | 11,248 | |
Boral Ltd. | | | 4,466 | | | | 8,727 | |
Brambles Ltd. | | | 5,196 | | | | 37,227 | |
Caltex Australia Ltd. | | | 816 | | | | 13,199 | |
Challenger Ltd. | | | 1,951 | | | | 6,222 | |
Charter Hall Group, REIT | | | 1,637 | | | | 8,112 | |
CIMIC Group Ltd. | | | 367 | | | | 5,865 | |
Cleanaway Waste Management Ltd. | | | 5,017 | | | | 6,073 | |
Coca-Cola Amatil Ltd. | | | 1,758 | | | | 9,843 | |
Cochlear Ltd. | | | 207 | | | | 24,740 | |
Coles Group Ltd. | | | 4,271 | | | | 42,923 | |
Commonwealth Bank of Australia | | | 6,055 | | | | 246,435 | |
Computershare Ltd. | | | 1,727 | | | | 13,604 | |
Crown Resorts Ltd. | | | 1,096 | | | | 6,995 | |
CSL Ltd. | | | 1,537 | | | | 304,777 | |
CSR Ltd. | | | 1,412 | | | | 3,416 | |
Dexus, REIT | | | 3,627 | | | | 21,620 | |
Domino’s Pizza Enterprises Ltd. | | | 212 | | | | 7,945 | |
Downer EDI Ltd. | | | 1,933 | | | | 5,213 | |
Evolution Mining Ltd. | | | 3,678 | | | | 12,067 | |
Flight Centre Travel Group Ltd. | | | 330 | | | | 2,341 | |
Fortescue Metals Group Ltd. | | | 5,423 | | | | 42,079 | |
Goodman Group, REIT | | | 6,071 | | | | 52,021 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 9 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Australia (cont’d.) | | | | | | | | |
GPT Group (The), REIT | | | 6,705 | | | $ | 18,340 | |
Harvey Norman Holdings Ltd. | | | 1,847 | | | | 3,333 | |
IDP Education Ltd. | | | 512 | | | | 4,939 | |
Iluka Resources Ltd. | | | 1,326 | | | | 6,584 | |
Incitec Pivot Ltd. | | | 6,254 | | | | 9,686 | |
Insurance Australia Group Ltd. | | | 7,881 | | | | 29,585 | |
IOOF Holdings Ltd. | | | 952 | | | | 2,645 | |
JB Hi-Fi Ltd. | | | 378 | | | | 8,641 | |
Lendlease Group | | | 1,885 | | | | 14,931 | |
Macquarie Group Ltd. | | | 1,081 | | | | 71,174 | |
Magellan Financial Group Ltd. | | | 459 | | | | 14,963 | |
Medibank Private Ltd. | | | 9,194 | | | | 16,081 | |
Metcash Ltd. | | | 3,758 | | | | 6,077 | |
Mirvac Group, REIT | | | 13,560 | | | | 19,684 | |
National Australia Bank Ltd. | | | 10,128 | | | | 111,204 | |
Newcrest Mining Ltd. | | | 2,622 | | | | 46,523 | |
Northern Star Resources Ltd. | | | 2,418 | | | | 19,919 | |
Nufarm Ltd.* | | | 1,263 | | | | 4,303 | |
Oil Search Ltd. | | | 6,099 | | | | 11,989 | |
Orica Ltd. | | | 1,365 | | | | 15,797 | |
Origin Energy Ltd. | | | 5,997 | | | | 21,608 | |
Orora Ltd. | | | 3,985 | | | | 6,583 | |
OZ Minerals Ltd. | | | 1,012 | | | | 5,847 | |
Perpetual Ltd. | | | 120 | | | | 2,324 | |
Platinum Asset Management Ltd. | | | 878 | | | | 1,969 | |
Qantas Airways Ltd. | | | 1,932 | | | | 4,807 | |
QBE Insurance Group Ltd. | | | 4,930 | | | | 26,814 | |
Qube Holdings Ltd. | | | 4,265 | | | | 6,224 | |
Ramsay Health Care Ltd. | | | 581 | | | | 23,535 | |
REA Group Ltd. | | | 170 | | | | 9,782 | |
Rio Tinto Ltd. | | | 1,255 | | | | 70,990 | |
Rio Tinto PLC | | | 3,740 | | | | 172,732 | |
Santos Ltd. | | | 6,187 | | | | 19,845 | |
Scentre Group, REIT | | | 17,903 | | | | 26,941 | |
SEEK Ltd. | | | 1,146 | | | | 12,902 | |
Seven Group Holdings Ltd. | | | 498 | | | | 4,900 | |
Shopping Centres Australasia Property Group, REIT | | | 3,410 | | | | 4,942 | |
Sonic Healthcare Ltd. | | | 1,615 | | | | 28,510 | |
South32 Ltd. | | | 16,548 | | | | 21,134 | |
Star Entertainment Group Ltd. (The) | | | 2,715 | | | | 5,331 | |
Stockland, REIT | | | 8,516 | | | | 15,937 | |
Suncorp Group Ltd. | | | 4,300 | | | | 25,599 | |
Sydney Airport | | | 3,858 | | | | 15,735 | |
Tabcorp Holdings Ltd. | | | 6,376 | | | | 13,304 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | |
| |
Australia (cont’d.) | | | | | |
Telstra Corp. Ltd. | | | 14,233 | | | $ | 28,058 | |
TPG Telecom Ltd. | | | 1,289 | | | | 6,154 | |
Transurban Group | | | 9,168 | | | | 82,274 | |
Treasury Wine Estates Ltd. | | | 2,352 | | | | 15,511 | |
Vicinity Centres, REIT | | | 10,951 | | | | 10,624 | |
Vocus Group Ltd.* | | | 1,928 | | | | 3,830 | |
Washington H Soul Pattinson & Co. Ltd. | | | 387 | | | | 4,669 | |
Wesfarmers Ltd. | | | 3,828 | | | | 93,005 | |
Westpac Banking Corp. | | | 12,227 | | | | 128,920 | |
Whitehaven Coal Ltd. | | | 3,386 | | | | 3,988 | |
WiseTech Global Ltd. | | | 286 | | | | 3,425 | |
Woodside Petroleum Ltd. | | | 3,185 | | | | 46,298 | |
Woolworths Group Ltd. | | | 4,268 | | | | 99,405 | |
Worley Ltd. | | | 1,013 | | | | 5,850 | |
| | | | | | | | |
| | | | 3,083,755 | |
| | |
Austria 0.2% | | | | | | | | |
ANDRITZ AG | | | 247 | | | | 8,143 | |
Erste Group Bank AG | | | 950 | | | | 20,696 | |
OMV AG | | | 478 | | | | 15,777 | |
Raiffeisen Bank International AG | | | 469 | | | | 8,121 | |
Telekom Austria AG | | | 434 | | | | 3,052 | |
Verbund AG | | | 220 | | | | 10,001 | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | | 142 | | | | 2,865 | |
voestalpine AG | | | 415 | | | | 8,625 | |
| | | | | | | | |
| | | | | | | 77,280 | |
| | |
Belgium 0.8% | | | | | | | | |
Ackermans & van Haaren NV | | | 76 | | | | 10,073 | |
Ageas | | | 623 | | | | 22,477 | |
Anheuser-Busch InBev SA/NV | | | 2,606 | | | | 121,118 | |
Colruyt SA | | | 178 | | | | 10,657 | |
Elia System Operator SA/NV | | | 120 | | | | 13,781 | |
Galapagos NV* | | | 168 | | | | 36,978 | |
Groupe Bruxelles Lambert SA | | | 250 | | | | 19,955 | |
KBC Group NV | | | 926 | | | | 49,899 | |
Proximus SADP | | | 474 | | | | 10,097 | |
Sofina SA | | | 53 | | | | 12,489 | |
Solvay SA | | | 235 | | | | 18,422 | |
Telenet Group Holding NV | | | 160 | | | | 6,671 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 11 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | |
| |
Belgium (cont’d.) | | | | | |
UCB SA | | | 421 | | | $ | 38,646 | |
Umicore SA | | | 721 | | | | 31,079 | |
| | | | | | | | |
| | | | 402,342 | |
| | |
Cambodia 0.0% | | | | | | | | |
NagaCorp Ltd. | | | 4,600 | | | | 5,464 | |
| | |
Chile 0.0% | | | | | | | | |
Antofagasta PLC | | | 1,185 | | | | 12,100 | |
| | |
China 0.6% | | | | | | | | |
AAC Technologies Holdings, Inc. | | | 2,200 | | | | 10,670 | |
BOC Hong Kong Holdings Ltd. | | | 12,400 | | | | 38,096 | |
Budweiser Brewing Co. APAC Ltd., 144A* | | | 3,800 | | | | 10,350 | |
China Mengniu Dairy Co. Ltd.* | | | 9,200 | | | | 32,914 | |
China Travel International Investment Hong Kong Ltd. | | | 8,000 | | | | 1,124 | |
Kerry Logistics Network Ltd. | | | 1,600 | | | | 2,180 | |
Lenovo Group Ltd. | | | 25,000 | | | | 13,617 | |
Minth Group Ltd. | | | 3,300 | | | | 7,905 | |
MMG Ltd.* | | | 6,000 | | | | 1,051 | |
Nexteer Automotive Group Ltd. | | | 2,000 | | | | 1,036 | |
Prosus NV* | | | 1,466 | | | | 111,139 | |
Semiconductor Manufacturing International Corp.* | | | 10,400 | | | | 19,688 | |
Shougang Fushan Resources Group Ltd. | | | 10,000 | | | | 1,991 | |
Shui On Land Ltd. | | | 15,500 | | | | 2,739 | |
SITC International Holdings Co. Ltd. | | | 4,000 | | | | 3,972 | |
Sun Art Retail Group Ltd. | | | 8,000 | | | | 13,368 | |
Tingyi Cayman Islands Holding Corp. | | | 6,400 | | | | 11,291 | |
Towngas China Co. Ltd.* | | | 4,000 | | | | 1,974 | |
Uni-President China Holdings Ltd. | | | 3,600 | | | | 3,624 | |
Want Want China Holdings Ltd. | | | 18,000 | | | | 12,913 | |
Xinyi Solar Holdings Ltd. | | | 14,000 | | | | 8,891 | |
| | | | | | | | |
| | | | | | | 310,533 | |
| | |
Denmark 1.9% | | | | | | | | |
Ambu A/S (Class B Stock) | | | 543 | | | | 17,006 | |
AP Moller - Maersk A/S (Class A Stock) | | | 14 | | | | 12,952 | |
AP Moller - Maersk A/S (Class B Stock) | | | 22 | | | | 21,771 | |
Carlsberg A/S (Class B Stock) | | | 348 | | | | 43,836 | |
Chr Hansen Holding A/S | | | 348 | | | | 29,847 | |
Coloplast A/S (Class B Stock) | | | 449 | | | | 70,966 | |
Danske Bank A/S* | | | 2,273 | | | | 26,862 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Denmark (cont’d.) | | | | | | | | |
Demant A/S* | | | 370 | | | $ | 8,885 | |
DSV Panalpina A/S | | | 693 | | | | 71,283 | |
Genmab A/S* | | | 198 | | | | 47,696 | |
GN Store Nord A/S | | | 448 | | | | 20,435 | |
H. Lundbeck A/S | | | 218 | | | | 7,967 | |
ISS A/S* | | | 656 | | | | 9,785 | |
Novo Nordisk A/S (Class B Stock) | | | 5,614 | | | | 357,683 | |
Novozymes A/S (Class B Stock) | | | 710 | | | | 34,682 | |
Orsted A/S, 144A | | | 639 | | | | 64,619 | |
Pandora A/S | | | 284 | | | | 10,098 | |
ROCKWOOL International A/S (Class B Stock) | | | 22 | | | | 4,611 | |
Tryg A/S | | | 414 | | | | 10,944 | |
Vestas Wind Systems A/S | | | 675 | | | | 57,997 | |
| | | | | | | | |
| | | | | | | 929,925 | |
| | |
Finland 1.1% | | | | | | | | |
Elisa OYJ | | | 490 | | | | 29,715 | |
Fortum OYJ | | | 1,488 | | | | 24,724 | |
Huhtamaki OYJ* | | | 314 | | | | 11,741 | |
Kesko OYJ (Class B Stock) | | | 900 | | | | 14,626 | |
Kone OYJ (Class B Stock) | | | 1,352 | | | | 81,912 | |
Metso OYJ | | | 373 | | | | 10,460 | |
Neste OYJ | | | 1,417 | | | | 50,219 | |
Nokia OYJ | | | 18,937 | | | | 68,807 | |
Nokian Renkaat OYJ | | | 468 | | | | 10,029 | |
Nordea Bank Abp | | | 10,891 | | | | 69,705 | |
Orion OYJ (Class B Stock) | | | 353 | | | | 17,906 | |
Sampo OYJ (Class A Stock) | | | 1,655 | | | | 54,865 | |
Stora Enso OYJ | | | 1,994 | | | | 23,590 | |
UPM-Kymmene OYJ | | | 1,799 | | | | 49,711 | |
Wartsila OYJ Abp | | | 1,592 | | | | 11,734 | |
| | | | | | | | |
| | | | | | | 529,744 | |
| | |
France 8.5% | | | | | | | | |
Accor SA | | | 656 | | | | 18,177 | |
Adevinta ASA* | | | 807 | | | | 6,682 | |
Aeroports de Paris | | | 91 | | | | 8,918 | |
Air France-KLM* | | | 651 | | | | 3,303 | |
Air Liquide SA | | | 1,574 | | | | 199,988 | |
Airbus SE* | | | 1,873 | | | | 119,256 | |
ALD SA, 144A | | | 293 | | | | 2,862 | |
Alstom SA | | | 628 | | | | 25,729 | |
Amundi SA, 144A | | | 198 | | | | 13,159 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 13 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
France (cont’d.) | | | | | | | | |
Arkema SA | | | 242 | | | $ | 20,056 | |
Atos SE | | | 323 | | | | 23,057 | |
AXA SA | | | 6,530 | | | | 116,501 | |
BioMerieux | | | 145 | | | | 17,991 | |
BNP Paribas SA | | | 3,671 | | | | 116,123 | |
Bollore SA | | | 3,260 | | | | 8,643 | |
Bouygues SA | | | 709 | | | | 21,812 | |
Bureau Veritas SA | | | 942 | | | | 19,563 | |
Capgemini SE | | | 529 | | | | 49,710 | |
Carrefour SA | | | 1,904 | | | | 28,132 | |
Casino Guichard Perrachon SA | | | 200 | | | | 7,492 | |
Cie de Saint-Gobain | | | 1,638 | | | | 43,449 | |
Cie Generale des Etablissements Michelin SCA | | | 595 | | | | 58,007 | |
Cie Plastic Omnium SA | | | 202 | | | | 3,852 | |
CNP Assurances* | | | 606 | | | | 6,255 | |
Covivio, REIT | | | 156 | �� | | | 9,777 | |
Credit Agricole SA | | | 3,897 | | | | 31,228 | |
Danone SA | | | 2,030 | | | | 140,584 | |
Dassault Aviation SA | | | 9 | | | | 7,397 | |
Dassault Systemes SE | | | 446 | | | | 65,365 | |
Edenred | | | 812 | | | | 32,735 | |
Eiffage SA | | | 256 | | | | 20,731 | |
Electricite de France SA | | | 1,688 | | | | 13,483 | |
Elis SA | | | 839 | | | | 10,395 | |
Engie SA | | | 5,659 | | | | 61,358 | |
EssilorLuxottica SA | | | 998 | | | | 123,502 | |
Eurazeo SE | | | 141 | | | | 6,761 | |
Eutelsat Communications SA | | | 720 | | | | 8,096 | |
Faurecia SE | | | 242 | | | | 8,768 | |
Gecina SA, REIT | | | 178 | | | | 23,371 | |
Getlink SE | | | 1,562 | | | | 19,914 | |
Hermes International | | | 105 | | | | 76,938 | |
ICADE, REIT | | | 101 | | | | 7,756 | |
Iliad SA | | | 52 | | | | 7,758 | |
Imerys SA | | | 100 | | | | 3,132 | |
Ingenico Group SA | | | 213 | | | | 26,796 | |
Ipsen SA | | | 113 | | | | 8,384 | |
JCDecaux SA | | | 217 | | | | 4,495 | |
Kering SA | | | 252 | | | | 128,453 | |
Klepierre SA, REIT | | | 669 | | | | 13,523 | |
Legrand SA | | | 903 | | | | 60,924 | |
L’Oreal SA* | | | 818 | | | | 238,941 | |
LVMH Moet Hennessy Louis Vuitton SE | | | 847 | | | | 330,173 | |
Natixis SA | | | 2,904 | | | | 6,893 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
France (cont’d.) | | | | | | | | |
Orange SA | | | 6,529 | | | $ | 79,612 | |
Orpea | | | 170 | | | | 18,936 | |
Pernod Ricard SA | | | 722 | | | | 109,974 | |
Peugeot SA | | | 1,809 | | | | 25,923 | |
Publicis Groupe SA | | | 737 | | | | 21,906 | |
Remy Cointreau SA | | | 77 | | | | 8,590 | |
Renault SA | | | 678 | | | | 13,412 | |
Rexel SA | | | 1,099 | | | | 10,305 | |
Rubis SCA | | | 321 | | | | 14,416 | |
Safran SA | | | 1,083 | | | | 100,466 | |
Sanofi | | | 3,698 | | | | 362,490 | |
Sartorius Stedim Biotech | | | 82 | | | | 19,709 | |
Schneider Electric SE | | | 1,787 | | | | 163,765 | |
SCOR SE | | | 520 | | | | 14,630 | |
SEB SA | | | 87 | | | | 10,467 | |
Societe Generale SA | | | 2,584 | | | | 40,339 | |
Sodexo SA | | | 298 | | | | 23,727 | |
Suez | | | 1,336 | | | | 15,095 | |
Teleperformance | | | 195 | | | | 43,895 | |
Thales SA | | | 342 | | | | 25,907 | |
TOTAL SA | | | 8,106 | | | | 291,935 | |
Ubisoft Entertainment SA* | | | 325 | | | | 24,167 | |
Unibail-Rodamco-Westfield, REIT | | | 455 | | | | 26,701 | |
Valeo SA | | | 788 | | | | 18,330 | |
Veolia Environnement SA | | | 1,692 | | | | 36,144 | |
Vinci SA | | | 1,594 | | | | 130,154 | |
Vivendi SA | | | 2,723 | | | | 58,685 | |
Wendel SA | | | 86 | | | | 7,342 | |
Worldline SA, 144A* | | | 437 | | | | 29,832 | |
| | | | | | | | |
| | | | | | | 4,183,202 | |
| | |
Germany 7.0% | | | | | | | | |
1&1 Drillisch AG | | | 128 | | | | 2,974 | |
adidas AG | | | 662 | | | | 151,386 | |
Allianz SE | | | 1,411 | | | | 260,897 | |
Aroundtown SA | | | 4,219 | | | | 22,771 | |
BASF SE | | | 3,104 | | | | 159,493 | |
Bayer AG | | | 3,338 | | | | 219,578 | |
Bayerische Motoren Werke AG | | | 1,084 | | | | 64,270 | |
Bechtle AG | | | 93 | | | | 13,442 | |
Beiersdorf AG | | | 344 | | | | 35,986 | |
Brenntag AG | | | 527 | | | | 23,746 | |
Carl Zeiss Meditec AG | | | 123 | | | | 12,129 | |
Commerzbank AG | | | 3,461 | | | | 12,763 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 15 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Germany (cont’d.) | | | | | | | | |
Continental AG | | | 381 | | | $ | 32,170 | |
Covestro AG, 144A | | | 569 | | | | 19,108 | |
CTS Eventim AG & Co. KGaA | | | 198 | | | | 8,219 | |
Daimler AG | | | 2,734 | | | | 94,473 | |
Delivery Hero SE, 144A* | | | 480 | | | | 40,519 | |
Deutsche Bank AG | | | 6,912 | | | | 51,416 | |
Deutsche Boerse AG | | | 621 | | | | 96,387 | |
Deutsche Lufthansa AG | | | 784 | | | | 7,009 | |
Deutsche Post AG | | | 3,302 | | | | 98,216 | |
Deutsche Telekom AG* | | | 11,009 | | | | 160,485 | |
Deutsche Wohnen SE | | | 1,205 | | | | 48,859 | |
DWS Group GmbH & Co. KGaA, 144A | | | 97 | | | | 3,076 | |
E.ON SE | | | 7,407 | | | | 74,205 | |
Evonik Industries AG | | | 673 | | | | 16,550 | |
Fielmann AG | | | 77 | | | | 5,041 | |
Fraport AG Frankfurt Airport Services Worldwide | | | 133 | | | | 5,816 | |
Fresenius Medical Care AG & Co. KGaA | | | 713 | | | | 55,968 | |
Fresenius SE & Co. KGaA | | | 1,372 | | | | 59,509 | |
FUCHS PETROLUB SE | | | 147 | | | | 4,906 | |
GEA Group AG | | | 544 | | | | 12,508 | |
GRENKE AG | | | 83 | | | | 5,827 | |
Hannover Rueck SE | | | 211 | | | | 33,625 | |
Hapag-Lloyd AG, 144A | | | 102 | | | | 14,642 | |
HeidelbergCement AG | | | 516 | | | | 24,426 | |
Hella GmbH & Co. KGaA | | | 160 | | | | 5,920 | |
Henkel AG & Co. KGaA* | | | 337 | | | | 26,219 | |
HOCHTIEF AG | | | 72 | | | | 5,664 | |
HUGO BOSS AG | | | 189 | | | | 5,256 | |
Infineon Technologies AG | | | 4,201 | | | | 77,238 | |
KION Group AG | | | 245 | | | | 12,142 | |
Knorr-Bremse AG | | | 165 | | | | 15,332 | |
LANXESS AG | | | 283 | | | | 13,910 | |
LEG Immobilien AG | | | 235 | | | | 27,056 | |
Merck KGaA* | | | 436 | | | | 50,576 | |
METRO AG | | | 513 | | | | 4,474 | |
MTU Aero Engines AG | | | 178 | | | | 24,202 | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | | 491 | | | | 107,982 | |
Nemetschek SE | | | 195 | | | | 12,260 | |
OSRAM Licht AG* | | | 237 | | | | 9,840 | |
ProSiebenSat.1 Media SE | | | 627 | | | | 6,293 | |
Puma SE | | | 269 | | | | 16,887 | |
Rational AG | | | 10 | | | | 4,830 | |
Rheinmetall AG | | | 152 | | | | 10,294 | |
Rocket Internet SE, 144A* | | | 239 | | | | 5,035 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Germany (cont’d.) | | | | | | | | |
RWE AG | | | 1,954 | | | $ | 56,097 | |
SAP SE | | | 3,300 | | | | 393,538 | |
Scout24 AG, 144A | | | 366 | | | | 23,942 | |
Siemens AG | | | 2,575 | | | | 238,477 | |
Siemens Healthineers AG, 144A | | | 454 | | | | 19,964 | |
Suedzucker AG | | | 294 | | | | 3,885 | |
Symrise AG | | | 430 | | | | 43,465 | |
Talanx AG | | | 124 | | | | 4,422 | |
TeamViewer AG* | | | 330 | | | | 14,342 | |
Telefonica Deutschland Holding AG | | | 2,182 | | | | 6,213 | |
thyssenkrupp AG* | | | 1,618 | | | | 10,785 | |
Traton SE* | | | 155 | | | | 2,342 | |
TUI AG | | | 1,548 | | | | 6,190 | |
Uniper SE | | | 681 | | | | 18,232 | |
United Internet AG | | | 378 | | | | 13,024 | |
Varta AG* | | | 47 | | | | 3,899 | |
Volkswagen AG | | | 112 | | | | 16,688 | |
Vonovia SE | | | 1,841 | | | | 90,895 | |
Wacker Chemie AG | | | 42 | | | | 2,451 | |
Wirecard AG | | | 392 | | | | 39,146 | |
Zalando SE, 144A* | | | 509 | | | | 24,887 | |
| | | | | | | | |
| | | | | | | 3,426,689 | |
| | |
Hong Kong 2.7% | | | | | | | | |
AIA Group Ltd. | | | 41,000 | | | | 379,180 | |
ASM Pacific Technology Ltd. | | | 1,000 | | | | 10,173 | |
Bank of East Asia Ltd. (The) | | | 4,400 | | | | 9,323 | |
Brightoil Petroleum Holdings Ltd.^* | | | 7,000 | | | | — | |
Cafe de Coral Holdings Ltd. | | | 400 | | | | 826 | |
Cathay Pacific Airways Ltd. | | | 1,700 | | | | 2,020 | |
Champion REIT | | | 7,000 | | | | 4,137 | |
Chow Tai Fook Jewellery Group Ltd. | | | 3,600 | | | | 3,072 | |
CK Asset Holdings Ltd. | | | 9,500 | | | | 59,828 | |
CK Infrastructure Holdings Ltd. | | | 2,200 | | | | 13,089 | |
CLP Holdings Ltd. | | | 5,400 | | | | 57,518 | |
Dah Sing Banking Group Ltd. | | | 1,200 | | | | 1,172 | |
Dah Sing Financial Holdings Ltd. | | | 400 | | | | 1,327 | |
Dairy Farm International Holdings Ltd. | | | 900 | | | | 4,298 | |
Guotai Junan International Holdings Ltd. | | | 8,000 | | | | 1,049 | |
Haitong International Securities Group Ltd. | | | 7,000 | | | | 1,653 | |
Hang Lung Group Ltd. | | | 2,800 | | | | 6,343 | |
Hang Lung Properties Ltd. | | | 7,000 | | | | 14,862 | |
Hang Seng Bank Ltd. | | | 2,500 | | | | 43,750 | |
Henderson Land Development Co. Ltd. | | | 4,004 | | | | 16,333 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 17 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Hong Kong (cont’d.) | | | | | | | | |
Hong Kong & China Gas Co. Ltd. | | | 33,338 | | | $ | 59,161 | |
Hong Kong Exchanges & Clearing Ltd. | | | 4,240 | | | | 137,186 | |
Hongkong Land Holdings Ltd. | | | 4,000 | | | | 16,814 | |
Huabao International Holdings Ltd. | | | 2,000 | | | | 786 | |
Hutchison Port Holdings Trust, UTS | | | 12,000 | | | | 1,554 | |
Hutchison Telecommunications Hong Kong Holdings Ltd. | | | 12,000 | | | | 2,059 | |
Hysan Development Co. Ltd. | | | 2,000 | | | | 6,657 | |
Jardine Matheson Holdings Ltd. | | | 670 | | | | 29,366 | |
Jardine Strategic Holdings Ltd. | | | 650 | | | | 13,915 | |
Johnson Electric Holdings Ltd. | | | 1,000 | | | | 1,693 | |
Kerry Properties Ltd. | | | 2,400 | | | | 6,608 | |
Li & Fung Ltd. | | | 16,000 | | | | 2,374 | |
Lifestyle International Holdings Ltd. | | | 1,400 | | | | 1,330 | |
Link REIT | | | 7,200 | | | | 64,747 | |
Melco International Development Ltd. | | | 2,600 | | | | 4,897 | |
MTR Corp. Ltd. | | | 5,000 | | | | 27,826 | |
New World Development Co. Ltd. | | | 19,600 | | | | 23,075 | |
NWS Holdings Ltd. | | | 6,000 | | | | 6,251 | |
PCCW Ltd. | | | 16,000 | | | | 9,806 | |
Power Assets Holdings Ltd. | | | 4,600 | | | | 30,400 | |
Sa Sa International Holdings Ltd. | | | 2,000 | | | | 375 | |
Shangri-La Asia Ltd. | | | 3,600 | | | | 2,955 | |
Shun Tak Holdings Ltd. | | | 6,000 | | | | 2,099 | |
Sino Land Co. Ltd. | | | 11,600 | | | | 16,224 | |
Sun Hung Kai Properties Ltd. | | | 4,600 | | | | 62,893 | |
Swire Pacific Ltd. (Class A Stock) | | | 1,500 | | | | 9,828 | |
Swire Pacific Ltd. (Class B Stock) | | | 2,900 | | | | 3,164 | |
Swire Properties Ltd. | | | 3,800 | | | | 10,695 | |
Techtronic Industries Co. Ltd. | | | 4,000 | | | | 30,533 | |
Television Broadcasts Ltd. | | | 1,000 | | | | 1,382 | |
United Energy Group Ltd. | | | 28,000 | | | | 5,129 | |
Vitasoy International Holdings Ltd. | | | 3,000 | | | | 10,753 | |
VTech Holdings Ltd. | | | 600 | | | | 4,513 | |
WH Group Ltd., 144A | | | 29,700 | | | | 28,641 | |
Wharf Holdings Ltd. (The) | | | 3,000 | | | | 5,655 | |
Wharf Real Estate Investment Co. Ltd. | | | 3,000 | | | | 12,625 | |
Wheelock & Co. Ltd. | | | 2,200 | | | | 16,157 | |
Xinyi Glass Holdings Ltd. | | | 8,000 | | | | 9,277 | |
Yue Yuen Industrial Holdings Ltd. | | | 2,200 | | | | 3,534 | |
| | | | | | | | |
| | | | | | | 1,312,890 | |
| | |
Indonesia 0.0% | | | | | | | | |
First Pacific Co. Ltd. | | | 8,000 | | | | 1,657 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Ireland 0.5% | | | | | | | | |
AIB Group PLC* | | | 2,447 | | | $ | 3,357 | |
Bank of Ireland Group PLC | | | 3,229 | | | | 6,516 | |
CRH PLC | | | 2,690 | | | | 81,148 | |
Flutter Entertainment PLC | | | 269 | | | | 33,129 | |
Glanbia PLC | | | 695 | | | | 7,382 | |
Kerry Group PLC (Class A Stock) | | | 493 | | | | 56,524 | |
Kingspan Group PLC | | | 499 | | | | 25,465 | |
Smurfit Kappa Group PLC | | | 842 | | | | 26,664 | |
| | | | | | | | |
| | | | | | | 240,185 | |
| | |
Israel 0.5% | | | | | | | | |
Airport City Ltd.* | | | 216 | | | | 3,292 | |
Alony Hetz Properties & Investments Ltd. | | | 408 | | | | 4,953 | |
Amot Investments Ltd. | | | 580 | | | | 3,252 | |
Azrieli Group Ltd. | | | 132 | | | | 7,848 | |
Bank Hapoalim BM | | | 3,702 | | | | 23,887 | |
Bank Leumi Le-Israel BM | | | 4,983 | | | | 27,044 | |
Bezeq The Israeli Telecommunication Corp. Ltd.* | | | 6,000 | | | | 4,299 | |
Delek Group Ltd. | | | 17 | | | | 778 | |
Elbit Systems Ltd. | | | 79 | | | | 10,753 | |
Fattal Holdings 1998 Ltd. | | | 14 | | | | 964 | |
First International Bank of Israel Ltd. | | | 211 | | | | 5,249 | |
Gazit-Globe Ltd. | | | 246 | | | | 1,826 | |
Harel Insurance Investments & Financial Services Ltd. | | | 307 | | | | 1,978 | |
Israel Chemicals Ltd. | | | 2,491 | | | | 8,705 | |
Israel Corp. Ltd. (The)* | | | 10 | | | | 1,291 | |
Israel Discount Bank Ltd. (Class A Stock) | | | 3,995 | | | | 13,056 | |
Melisron Ltd. | | | 44 | | | | 1,782 | |
Migdal Insurance & Financial Holding Ltd. | | | 1,777 | | | | 1,138 | |
Mivne Real Estate KD Ltd.* | | | 2,276 | | | | 4,980 | |
Mizrahi Tefahot Bank Ltd. | | | 413 | | | | 8,522 | |
Nice Ltd.* | | | 213 | | | | 35,477 | |
Oil Refineries Ltd. | | | 4,345 | | | | 1,209 | |
Paz Oil Co. Ltd. | | | 28 | | | | 2,468 | |
Phoenix Holdings Ltd. (The) | | | 334 | | | | 1,758 | |
Shapir Engineering and Industry Ltd. | | | 367 | | | | 2,574 | |
Shikun & Binui Ltd. | | | 657 | | | | 2,739 | |
Shufersal Ltd. | | | 463 | | | | 2,972 | |
Strauss Group Ltd. | | | 121 | | | | 3,430 | |
Teva Pharmaceutical Industries Ltd.* | | | 3,357 | | | | 36,909 | |
Tower Semiconductor Ltd.* | | | 376 | | | | 7,322 | |
| | | | | | | | |
| | | | | | | 232,455 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 19 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Italy 1.8% | | | | | | | | |
A2A SpA | | | 6,006 | | | $ | 8,185 | |
Amplifon SpA | | | 437 | | | | 10,022 | |
Assicurazioni Generali SpA | | | 4,341 | | | | 61,892 | |
Atlantia SpA | | | 1,749 | | | | 28,467 | |
Banca Mediolanum SpA | | | 992 | | | | 6,044 | |
Banco BPM SpA* | | | 5,021 | | | | 6,135 | |
Buzzi Unicem SpA | | | 227 | | | | 4,442 | |
Buzzi Unicem SpA, RSP | | | 177 | | | | 1,851 | |
Davide Campari-Milano SpA | | | 1,804 | | | | 14,004 | |
DiaSorin SpA | | | 73 | | | | 12,397 | |
Enel SpA | | | 26,576 | | | | 181,835 | |
Eni SpA | | | 8,485 | | | | 81,155 | |
Ferrari NV | | | 416 | | | | 65,471 | |
FinecoBank Banca Fineco SpA | | | 2,025 | | | | 22,517 | |
Hera SpA | | | 2,664 | | | | 9,866 | |
Infrastrutture Wireless Italiane SpA, 144A | | | 973 | | | | 10,312 | |
Intesa Sanpaolo SpA | | | 50,896 | | | | 79,196 | |
Italgas SpA | | | 1,589 | | | | 8,892 | |
Leonardo SpA | | | 1,225 | | | | 8,447 | |
Mediaset SpA* | | | 839 | | | | 1,712 | |
Mediobanca Banca di Credito Finanziario SpA | | | 2,798 | | | | 16,211 | |
Moncler SpA | | | 647 | | | | 24,552 | |
Nexi SpA, 144A* | | | 1,034 | | | | 15,685 | |
Pirelli & C SpA, 144A | | | 1,458 | | | | 5,679 | |
Poste Italiane SpA, 144A | | | 1,571 | | | | 13,335 | |
PRADA SpA | | | 1,600 | | | | 5,167 | |
Prysmian SpA | | | 835 | | | | 15,712 | |
Recordati SpA | | | 336 | | | | 14,611 | |
Saipem SpA* | | | 2,405 | | | | 6,198 | |
Salvatore Ferragamo SpA | | | 186 | | | | 2,311 | |
Snam SpA | | | 7,757 | | | | 34,768 | |
Telecom Italia SpA* | | | 34,637 | | | | 13,736 | |
Telecom Italia SpA, RSP | | | 20,266 | | | | 8,088 | |
Terna Rete Elettrica Nazionale SpA | | | 4,811 | | | | 30,158 | |
UniCredit SpA* | | | 7,602 | | | | 58,651 | |
Unione di Banche Italiane SpA | | | 3,375 | | | | 9,653 | |
UnipolSai Assicurazioni SpA | | | 1,961 | | | | 4,817 | |
| | | | | | | | |
| | | | | | | 902,174 | |
| | |
Japan 23.5% | | | | | | | | |
77 Bank Ltd. (The) | | | 200 | | | | 2,686 | |
ABC-Mart, Inc. | | | 100 | | | | 5,080 | |
Acom Co. Ltd. | | | 1,300 | | | | 5,269 | |
Advantest Corp. | | | 720 | | | | 34,625 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Aeon Co. Ltd. | | | 2,380 | | | $ | 47,827 | |
AEON Financial Service Co. Ltd. | | | 410 | | | | 4,281 | |
Aeon Mall Co. Ltd. | | | 430 | | | | 5,440 | |
AGC, Inc. | | | 620 | | | | 15,345 | |
Aica Kogyo Co. Ltd. | | | 180 | | | | 5,195 | |
Ain Holdings, Inc. | | | 60 | | | | 3,353 | |
Air Water, Inc. | | | 580 | | | | 7,859 | |
Aisin Seiki Co. Ltd. | | | 600 | | | | 17,302 | |
Ajinomoto Co., Inc. | | | 1,670 | | | | 29,680 | |
Alfresa Holdings Corp. | | | 650 | | | | 12,961 | |
Alps Alpine Co. Ltd. | | | 800 | | | | 8,339 | |
Amada Holdings Co. Ltd. | | | 1,200 | | | | 10,875 | |
Amano Corp. | | | 210 | | | | 4,300 | |
ANA Holdings, Inc.* | | | 350 | | | | 7,415 | |
Anritsu Corp. | | | 460 | | | | 9,301 | |
Aozora Bank Ltd. | | | 420 | | | | 7,511 | |
Ariake Japan Co. Ltd. | | | 20 | | | | 1,158 | |
Asahi Group Holdings Ltd. | | | 1,290 | | | | 44,602 | |
Asahi Intecc Co. Ltd. | | | 700 | | | | 18,531 | |
Asahi Kasei Corp. | | | 4,200 | | | | 29,790 | |
Asics Corp. | | | 700 | | | | 6,702 | |
ASKUL Corp. | | | 100 | | | | 2,836 | |
Astellas Pharma, Inc. | | | 6,380 | | | | 105,498 | |
Autobacs Seven Co. Ltd. | | | 200 | | | | 2,349 | |
Azbil Corp. | | | 400 | | | | 10,516 | |
Bandai Namco Holdings, Inc. | | | 620 | | | | 31,178 | |
Bank of Kyoto Ltd. (The) | | | 240 | | | | 8,261 | |
Benefit One, Inc. | | | 200 | | | | 3,545 | |
Benesse Holdings, Inc. | | | 220 | | | | 6,266 | |
Bic Camera, Inc. | | | 600 | | | | 5,574 | |
Bridgestone Corp. | | | 1,920 | | | | 59,927 | |
Brother Industries Ltd. | | | 800 | | | | 13,621 | |
Calbee, Inc. | | | 240 | | | | 7,263 | |
Canon Marketing Japan, Inc. | | | 160 | | | | 3,107 | |
Canon, Inc. | | | 3,480 | | | | 73,417 | |
Capcom Co. Ltd. | | | 300 | | | | 9,163 | |
Casio Computer Co. Ltd. | | | 700 | | | | 11,043 | |
Central Japan Railway Co. | | | 584 | | | | 91,846 | |
Chiba Bank Ltd. (The) | | | 2,000 | | | | 9,264 | |
Chubu Electric Power Co., Inc. | | | 2,400 | | | | 32,505 | |
Chugai Pharmaceutical Co. Ltd. | | | 700 | | | | 83,243 | |
Chugoku Bank Ltd. (The) | | | 650 | | | | 6,005 | |
Chugoku Electric Power Co., Inc. (The) | | | 980 | | | | 13,170 | |
Citizen Watch Co. Ltd. | | | 780 | | | | 2,750 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 21 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | | 440 | | | $ | 7,931 | |
COMSYS Holdings Corp. | | | 400 | | | | 11,091 | |
Concordia Financial Group Ltd. | | | 3,800 | | | | 11,685 | |
Cosmo Energy Holdings Co. Ltd. | | | 200 | | | | 3,014 | |
Cosmos Pharmaceutical Corp. | | | 20 | | | | 5,348 | |
Credit Saison Co. Ltd. | | | 550 | | | | 6,287 | |
CyberAgent, Inc. | | | 290 | | | | 12,167 | |
Dai Nippon Printing Co. Ltd. | | | 950 | | | | 20,105 | |
Daicel Corp. | | | 880 | | | | 7,124 | |
Daido Steel Co. Ltd. | | | 160 | | | | 5,319 | |
Daifuku Co. Ltd. | | | 300 | | | | 21,009 | |
Dai-ichi Life Holdings, Inc. | | | 3,700 | | | | 46,664 | |
Daiichi Sankyo Co. Ltd. | | | 2,130 | | | | 145,763 | |
Daiichikosho Co. Ltd. | | | 130 | | | | 3,918 | |
Daikin Industries Ltd. | | | 900 | | | | 116,620 | |
Daishi Hokuetsu Financial Group, Inc. | | | 130 | | | | 2,836 | |
Daito Trust Construction Co. Ltd. | | | 196 | | | | 18,713 | |
Daiwa House Industry Co. Ltd. | | | 2,270 | | | | 57,942 | |
Daiwa Securities Group, Inc. | | | 5,100 | | | | 21,258 | |
DeNA Co. Ltd. | | | 310 | | | | 3,814 | |
Denka Co. Ltd. | | | 290 | | | | 7,010 | |
Denso Corp. | | | 1,580 | | | | 55,847 | |
Dentsu Group, Inc. | | | 730 | | | | 15,340 | |
DIC Corp. | | | 300 | | | | 6,991 | |
Disco Corp. | | | 100 | | | | 22,446 | |
DMG Mori Co. Ltd. | | | 300 | | | | 3,080 | |
Dowa Holdings Co. Ltd. | | | 170 | | | | 4,729 | |
East Japan Railway Co. | | | 1,230 | | | | 89,742 | |
Ebara Corp. | | | 300 | | | | 6,668 | |
Eisai Co. Ltd. | | | 914 | | | | 63,472 | |
Electric Power Development Co. Ltd. | | | 600 | | | | 11,992 | |
Ezaki Glico Co. Ltd. | | | 160 | | | | 6,996 | |
FamilyMart Co. Ltd. | | | 800 | | | | 13,566 | |
Fancl Corp. | | | 300 | | | | 7,214 | |
FANUC Corp. | | | 643 | | | | 105,703 | |
Fast Retailing Co. Ltd. | | | 170 | | | | 80,918 | |
FP Corp. | | | 90 | | | | 6,758 | |
Fuji Electric Co. Ltd. | | | 400 | | | | 9,518 | |
Fuji Media Holdings, Inc. | | | 200 | | | | 1,994 | |
Fuji Oil Holdings, Inc. | | | 160 | | | | 3,730 | |
Fuji Seal International, Inc. | | | 200 | | | | 3,480 | |
FUJIFILM Holdings Corp. | | | 1,230 | | | | 58,371 | |
Fujikura Ltd. | | | 700 | | | | 2,058 | |
Fujitsu General Ltd. | | | 200 | | | | 3,321 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Fujitsu Ltd. | | | 630 | | | $ | 61,529 | |
Fukuoka Financial Group, Inc. | | | 560 | | | | 8,008 | |
Fukuyama Transporting Co. Ltd. | | | 100 | | | | 3,460 | |
Furukawa Electric Co. Ltd. | | | 200 | | | | 3,760 | |
Fuyo General Lease Co. Ltd. | | | 100 | | | | 5,004 | |
Glory Ltd. | | | 160 | | | | 3,604 | |
GMO internet, Inc. | | | 200 | | | | 4,364 | |
GMO Payment Gateway, Inc. | | | 140 | | | | 12,508 | |
Goldwin, Inc. | | | 142 | | | | 7,672 | |
GS Yuasa Corp. | | | 300 | | | | 4,272 | |
GungHo Online Entertainment, Inc. | | | 120 | | | | 1,858 | |
Gunma Bank Ltd. (The) | | | 1,300 | | | | 4,156 | |
H2O Retailing Corp. | | | 300 | | | | 2,354 | |
Hachijuni Bank Ltd. (The) | | | 1,890 | | | | 6,735 | |
Hakuhodo DY Holdings, Inc. | | | 900 | | | | 9,967 | |
Hamamatsu Photonics KK | | | 450 | | | | 19,637 | |
Hankyu Hanshin Holdings, Inc. | | | 770 | | | | 26,325 | |
Haseko Corp. | | | 970 | | | | 10,602 | |
Heiwa Corp. | | | 200 | | | | 3,374 | |
Hikari Tsushin, Inc. | | | 60 | | | | 11,673 | |
Hino Motors Ltd. | | | 1,100 | | | | 6,588 | |
Hirose Electric Co. Ltd. | | | 71 | | | | 7,797 | |
Hiroshima Bank Ltd. (The) | | | 900 | | | | 3,750 | |
HIS Co. Ltd. | | | 100 | | | | 1,331 | |
Hisamitsu Pharmaceutical Co., Inc. | | | 210 | | | | 9,860 | |
Hitachi Capital Corp. | | | 130 | | | | 2,520 | |
Hitachi Chemical Co. Ltd. | | | 290 | | | | 12,414 | |
Hitachi Construction Machinery Co. Ltd. | | | 420 | | | | 9,846 | |
Hitachi Ltd. | | | 3,180 | | | | 94,997 | |
Hitachi Metals Ltd. | | | 800 | | | | 7,788 | |
Hitachi Transport System Ltd. | | | 150 | | | | 3,665 | |
Hokuhoku Financial Group, Inc. | | | 400 | | | | 3,246 | |
Hokuriku Electric Power Co. | | | 500 | | | | 3,372 | |
Honda Motor Co. Ltd. | | | 5,840 | | | | 140,717 | |
Horiba Ltd. | | | 150 | | | | 7,951 | |
Hoshizaki Corp. | | | 170 | | | | 12,978 | |
House Foods Group, Inc. | | | 240 | | | | 7,523 | |
Hoya Corp. | | | 1,250 | | | | 114,097 | |
Hulic Co. Ltd. | | | 1,260 | | | | 12,506 | |
Ibiden Co. Ltd. | | | 360 | | | | 9,238 | |
Ichigo, Inc. | | | 700 | | | | 1,818 | |
Idemitsu Kosan Co. Ltd. | | | 747 | | | | 17,040 | |
IHI Corp. | | | 430 | | | | 5,356 | |
Iida Group Holdings Co. Ltd. | | | 530 | | | | 7,050 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 23 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Inpex Corp. | | | 3,000 | | | $ | 19,068 | |
Isetan Mitsukoshi Holdings Ltd. | | | 1,100 | | | | 6,733 | |
Isuzu Motors Ltd. | | | 1,700 | | | | 12,993 | |
Ito En Ltd. | | | 170 | | | | 9,424 | |
ITOCHU Corp. | | | 4,600 | | | | 90,314 | |
Itochu Techno-Solutions Corp. | | | 280 | | | | 8,541 | |
Itoham Yonekyu Holdings, Inc. | | | 400 | | | | 2,321 | |
Iyo Bank Ltd. (The) | | | 870 | | | | 4,669 | |
Izumi Co. Ltd. | | | 130 | | | | 3,824 | |
J Front Retailing Co. Ltd. | | | 800 | | | | 6,569 | |
Japan Airlines Co. Ltd. | | | 360 | | | | 6,447 | |
Japan Airport Terminal Co. Ltd. | | | 150 | | | | 6,128 | |
Japan Aviation Electronics Industry Ltd. | | | 120 | | | | 1,563 | |
Japan Exchange Group, Inc. | | | 1,800 | | | | 33,543 | |
Japan Petroleum Exploration Co. Ltd. | | | 100 | | | | 1,723 | |
Japan Post Bank Co. Ltd. | | | 1,400 | | | | 12,994 | |
Japan Post Holdings Co. Ltd. | | | 4,500 | | | | 36,040 | |
Japan Post Insurance Co. Ltd. | | | 600 | | | | 7,723 | |
Japan Steel Works Ltd. (The) | | | 200 | | | | 2,453 | |
Japan Tobacco, Inc. | | | 4,030 | | | | 75,306 | |
JCR Pharmaceuticals Co. Ltd. | | | 50 | | | | 4,807 | |
JFE Holdings, Inc. | | | 1,780 | | | | 11,949 | |
JGC Holdings Corp. | | | 680 | | | | 6,619 | |
JSR Corp. | | | 600 | | | | 11,297 | |
JTEKT Corp. | | | 700 | | | | 5,151 | |
Justsystems Corp. | | | 160 | | | | 9,796 | |
JXTG Holdings, Inc. | | | 10,210 | | | | 36,141 | |
Kagome Co. Ltd. | | | 300 | | | | 7,644 | |
Kajima Corp. | | | 1,500 | | | | 15,697 | |
Kakaku.com, Inc. | | | 450 | | | | 9,190 | |
Kaken Pharmaceutical Co. Ltd. | | | 100 | | | | 5,494 | |
Kamigumi Co. Ltd. | | | 380 | | | | 6,699 | |
Kandenko Co. Ltd. | | | 300 | | | | 2,510 | |
Kaneka Corp. | | | 230 | | | | 5,945 | |
Kansai Electric Power Co., Inc. (The) | | | 2,470 | | | | 25,321 | |
Kansai Mirai Financial Group, Inc. | | | 500 | | | | 1,693 | |
Kansai Paint Co. Ltd. | | | 680 | | | | 12,967 | |
Kao Corp. | | | 1,600 | | | | 123,269 | |
Kawasaki Heavy Industries Ltd. | | | 490 | | | | 7,439 | |
Kawasaki Kisen Kaisha Ltd.* | | | 300 | | | | 2,974 | |
KDDI Corp. | | | 5,860 | | | | 166,198 | |
Keihan Holdings Co. Ltd. | | | 310 | | | | 13,904 | |
Keikyu Corp. | | | 900 | | | | 14,809 | |
Keio Corp. | | | 360 | | | | 20,338 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Keisei Electric Railway Co. Ltd. | | | 550 | | | $ | 16,605 | |
Kewpie Corp. | | | 360 | | | | 7,140 | |
Keyence Corp. | | | 595 | | | | 213,997 | |
Kikkoman Corp. | | | 610 | | | | 28,035 | |
Kinden Corp. | | | 500 | | | | 8,065 | |
Kintetsu Group Holdings Co. Ltd. | | | 650 | | | | 31,085 | |
Kirin Holdings Co. Ltd. | | | 2,750 | | | | 52,960 | |
Kissei Pharmaceutical Co. Ltd. | | | 100 | | | | 2,367 | |
Kobayashi Pharmaceutical Co. Ltd. | | | 190 | | | | 17,493 | |
Kobe Bussan Co. Ltd. | | | 100 | | | | 4,820 | |
Kobe Steel Ltd.* | | | 900 | | | | 3,031 | |
Koei Tecmo Holdings Co. Ltd. | | | 200 | | | | 5,288 | |
Koito Manufacturing Co. Ltd. | | | 380 | | | | 14,399 | |
Kokuyo Co. Ltd. | | | 300 | | | | 3,654 | |
Komatsu Ltd. | | | 3,110 | | | | 59,182 | |
Konami Holdings Corp. | | | 400 | | | | 12,632 | |
Konica Minolta, Inc. | | | 1,400 | | | | 5,427 | |
Kose Corp. | | | 100 | | | | 12,451 | |
Kotobuki Spirits Co. Ltd. | | | 100 | | | | 3,942 | |
K’s Holdings Corp. | | | 600 | | | | 6,583 | |
Kubota Corp. | | | 3,700 | | | | 46,124 | |
Kuraray Co. Ltd. | | | 1,200 | | | | 12,004 | |
Kurita Water Industries Ltd. | | | 360 | | | | 10,097 | |
Kusuri no Aoki Holdings Co. Ltd. | | | 100 | | | | 7,804 | |
Kyocera Corp. | | | 1,000 | | | | 53,349 | |
Kyoritsu Maintenance Co. Ltd. | | | 100 | | | | 2,442 | |
Kyowa Exeo Corp. | | | 390 | | | | 9,516 | |
Kyowa Kirin Co. Ltd. | | | 820 | | | | 19,181 | |
Kyudenko Corp. | | | 200 | | | | 5,614 | |
Kyushu Electric Power Co., Inc. | | | 1,500 | | | | 11,849 | |
Kyushu Financial Group, Inc. | | | 1,500 | | | | 6,303 | |
Kyushu Railway Co. | | | 570 | | | | 15,332 | |
Lasertec Corp. | | | 300 | | | | 19,872 | |
Lawson, Inc. | | | 170 | | | | 8,767 | |
LINE Corp.* | | | 180 | | | | 8,820 | |
Lintec Corp. | | | 140 | | | | 3,011 | |
Lion Corp. | | | 840 | | | | 17,525 | |
LIXIL Group Corp. | | | 920 | | | | 11,167 | |
M3, Inc. | | | 1,420 | | | | 51,170 | |
Mabuchi Motor Co. Ltd. | | | 160 | | | | 4,977 | |
Maeda Corp. | | | 400 | | | | 3,228 | |
Maeda Road Construction Co. Ltd. | | | 100 | | | | 1,858 | |
Makita Corp. | | | 850 | | | | 27,563 | |
Mani, Inc. | | | 180 | | | | 4,010 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 25 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Marubeni Corp. | | | 5,500 | | | $ | 26,564 | |
Maruha Nichiro Corp. | | | 130 | | | | 2,722 | |
Marui Group Co. Ltd. | | | 680 | | | | 11,146 | |
Maruichi Steel Tube Ltd. | | | 200 | | | | 4,495 | |
Matsui Securities Co. Ltd. | | | 300 | | | | 2,199 | |
Matsumotokiyoshi Holdings Co. Ltd. | | | 340 | | | | 11,691 | |
Mazda Motor Corp. | | | 2,100 | | | | 11,930 | |
Mebuki Financial Group, Inc. | | | 3,600 | | | | 7,556 | |
Medipal Holdings Corp. | | | 500 | | | | 9,677 | |
Megmilk Snow Brand Co. Ltd. | | | 130 | | | | 2,960 | |
MEIJI Holdings Co. Ltd. | | | 466 | | | | 32,277 | |
MINEBEA MITSUMI, Inc. | | | 1,400 | | | | 22,826 | |
Miraca Holdings, Inc. | | | 240 | | | | 6,016 | |
MISUMI Group, Inc. | | | 950 | | | | 22,709 | |
Mitsubishi Chemical Holdings Corp. | | | 4,300 | | | | 24,569 | |
Mitsubishi Corp. | | | 4,130 | | | | 88,106 | |
Mitsubishi Electric Corp. | | | 6,680 | | | | 82,651 | |
Mitsubishi Estate Co. Ltd. | | | 3,870 | | | | 63,118 | |
Mitsubishi Gas Chemical Co., Inc. | | | 620 | | | | 7,649 | |
Mitsubishi Heavy Industries Ltd. | | | 1,010 | | | | 25,934 | |
Mitsubishi Logistics Corp. | | | 290 | | | | 6,414 | |
Mitsubishi Materials Corp. | | | 410 | | | | 8,370 | |
Mitsubishi Motors Corp. | | | 2,400 | | | | 6,795 | |
Mitsubishi UFJ Financial Group, Inc. | | | 42,400 | | | | 170,701 | |
Mitsubishi UFJ Lease & Finance Co. Ltd. | | | 1,650 | | | | 7,916 | |
Mitsui & Co. Ltd. | | | 5,800 | | | | 81,101 | |
Mitsui Chemicals, Inc. | | | 640 | | | | 12,516 | |
Mitsui Fudosan Co. Ltd. | | | 3,160 | | | | 58,518 | |
Mitsui Mining & Smelting Co. Ltd. | | | 200 | | | | 3,769 | |
Mitsui OSK Lines Ltd. | | | 370 | | | | 6,446 | |
Miura Co. Ltd. | | | 330 | | | | 13,483 | |
Mizuho Financial Group, Inc. | | | 86,200 | | | | 100,715 | |
Mochida Pharmaceutical Co. Ltd. | | | 130 | | | | 5,066 | |
MonotaRO Co. Ltd. | | | 360 | | | | 11,545 | |
Morinaga & Co. Ltd. | | | 140 | | | | 5,759 | |
Morinaga Milk Industry Co. Ltd. | | | 110 | | | | 4,263 | |
MS&AD Insurance Group Holdings, Inc. | | | 1,630 | | | | 46,949 | |
Murata Manufacturing Co. Ltd. | | | 1,920 | | | | 106,764 | |
Nabtesco Corp. | | | 380 | | | | 10,905 | |
Nagase & Co. Ltd. | | | 400 | | | | 4,813 | |
Nagoya Railroad Co. Ltd. | | | 660 | | | | 18,932 | |
Nankai Electric Railway Co. Ltd. | | | 430 | | | | 9,607 | |
NEC Corp. | | | 830 | | | | 31,884 | |
NET One Systems Co. Ltd. | | | 300 | | | | 8,659 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Nexon Co. Ltd. | | | 1,440 | | | $ | 23,301 | |
NGK Insulators Ltd. | | | 930 | | | | 12,274 | |
NGK Spark Plug Co. Ltd. | | | 710 | | | | 10,627 | |
NH Foods Ltd. | | | 300 | | | | 10,688 | |
NHK Spring Co. Ltd. | | | 480 | | | | 3,154 | |
Nichirei Corp. | | | 400 | | | | 9,972 | |
Nidec Corp. | | | 1,600 | | | | 92,736 | |
Nifco, Inc. | | | 350 | | | | 6,771 | |
Nihon Kohden Corp. | | | 300 | | | | 11,078 | |
Nihon M&A Center, Inc. | | | 400 | | | | 13,096 | |
Nihon Unisys Ltd. | | | 200 | | | | 5,813 | |
Nikon Corp. | | | 1,250 | | | | 11,614 | |
Nintendo Co. Ltd. | | | 351 | | | | 145,041 | |
Nippo Corp. | | | 160 | | | | 3,587 | |
Nippon Electric Glass Co. Ltd. | | | 230 | | | | 3,367 | |
Nippon Express Co. Ltd. | | | 270 | | | | 13,211 | |
Nippon Kayaku Co. Ltd. | | | 500 | | | | 4,844 | |
Nippon Paint Holdings Co. Ltd. | | | 480 | | | | 27,702 | |
Nippon Paper Industries Co. Ltd. | | | 300 | | | | 4,308 | |
Nippon Shinyaku Co. Ltd. | | | 160 | | | | 11,212 | |
Nippon Shokubai Co. Ltd. | | | 100 | | | | 4,738 | |
Nippon Steel Corp. | | | 2,730 | | | | 22,932 | |
Nippon Telegraph & Telephone Corp. | | | 4,120 | | | | 93,433 | |
Nippon Yusen KK | | | 550 | | | | 7,253 | |
Nipro Corp. | | | 400 | | | | 4,485 | |
Nishi-Nippon Financial Holdings, Inc. | | | 600 | | | | 3,509 | |
Nishi-Nippon Railroad Co. Ltd. | | | 280 | | | | 6,885 | |
Nissan Chemical Corp. | | | 460 | | | | 17,579 | |
Nissan Motor Co. Ltd. | | | 6,600 | | | | 22,536 | |
Nissan Shatai Co. Ltd. | | | 200 | | | | 1,613 | |
Nisshin Seifun Group, Inc. | | | 860 | | | | 13,392 | |
Nisshinbo Holdings, Inc. | | | 400 | | | | 2,794 | |
Nissin Foods Holdings Co. Ltd. | | | 250 | | | | 20,495 | |
Nitori Holdings Co. Ltd. | | | 232 | | | | 35,610 | |
Nitto Denko Corp. | | | 500 | | | | 24,932 | |
Noevir Holdings Co. Ltd. | | | 100 | | | | 4,677 | |
NOF Corp. | | | 200 | | | | 6,613 | |
NOK Corp. | | | 350 | | | | 4,050 | |
Nomura Holdings, Inc. | | | 10,200 | | | | 42,397 | |
Nomura Real Estate Holdings, Inc. | | | 430 | | | | 7,047 | |
Nomura Research Institute Ltd. | | | 860 | | | | 20,956 | |
NS Solutions Corp. | | | 130 | | | | 3,245 | |
NSK Ltd. | | | 1,400 | | | | 9,666 | |
NTN Corp. | | | 1,100 | | | | 2,106 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 27 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
NTT Data Corp. | | | 2,100 | | | $ | 21,421 | |
NTT DOCOMO, Inc. | | | 3,940 | | | | 115,149 | |
Obayashi Corp. | | | 2,300 | | | | 20,225 | |
OBIC Business Consultants Co. Ltd. | | | 40 | | | | 1,797 | |
Obic Co. Ltd. | | | 200 | | | | 30,035 | |
Odakyu Electric Railway Co. Ltd. | | | 1,040 | | | | 22,933 | |
Oji Holdings Corp. | | | 2,900 | | | | 14,725 | |
OKUMA Corp. | | | 100 | | | | 3,789 | |
Olympus Corp. | | | 3,580 | | | | 57,186 | |
Omron Corp. | | | 670 | | | | 39,337 | |
Ono Pharmaceutical Co. Ltd. | | | 1,430 | | | | 34,481 | |
Open House Co. Ltd. | | | 200 | | | | 4,400 | |
Oracle Corp. | | | 150 | | | | 15,498 | |
Orient Corp. | | | 1,400 | | | | 1,603 | |
Oriental Land Co. Ltd. | | | 670 | | | | 84,790 | |
ORIX Corp. | | | 4,400 | | | | 52,266 | |
Osaka Gas Co. Ltd. | | | 1,340 | | | | 24,803 | |
OSG Corp. | | | 260 | | | | 3,377 | |
Otsuka Corp. | | | 340 | | | | 15,244 | |
Otsuka Holdings Co. Ltd. | | | 1,410 | | | | 55,509 | |
PALTAC Corp. | | | 100 | | | | 5,205 | |
Pan Pacific International Holdings Corp. | | | 1,700 | | | | 32,819 | |
Panasonic Corp. | | | 7,300 | | | | 55,706 | |
Park24 Co. Ltd. | | | 420 | | | | 6,730 | |
Penta-Ocean Construction Co. Ltd. | | | 1,200 | | | | 6,094 | |
PeptiDream, Inc.* | | | 320 | | | | 12,028 | |
Persol Holdings Co. Ltd. | | | 550 | | | | 6,400 | |
Pigeon Corp. | | | 360 | | | | 12,780 | |
Pilot Corp. | | | 100 | | | | 3,350 | |
Pola Orbis Holdings, Inc. | | | 310 | | | | 5,496 | |
Rakuten, Inc. | | | 2,650 | | | | 22,494 | |
Recruit Holdings Co. Ltd. | | | 4,250 | | | | 124,499 | |
Relo Group, Inc. | | | 400 | | | | 8,723 | |
Renesas Electronics Corp.* | | | 2,280 | | | | 12,133 | |
Rengo Co. Ltd. | | | 700 | | | | 5,495 | |
Resona Holdings, Inc. | | | 7,400 | | | | 23,291 | |
Resorttrust, Inc. | | | 220 | | | | 2,269 | |
Ricoh Co. Ltd. | | | 2,300 | | | | 15,667 | |
Rinnai Corp. | | | 160 | | | | 12,087 | |
Rohm Co. Ltd. | | | 260 | | | | 16,450 | |
Rohto Pharmaceutical Co. Ltd. | | | 400 | | | | 11,641 | |
Ryohin Keikaku Co. Ltd. | | | 780 | | | | 9,383 | |
Sankyo Co. Ltd. | | | 160 | | | | 4,395 | |
Sankyu, Inc. | | | 200 | | | | 7,705 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Sanrio Co. Ltd. | | | 240 | | | $ | 3,572 | |
Santen Pharmaceutical Co. Ltd. | | | 1,200 | | | | 21,207 | |
Sanwa Holdings Corp. | | | 760 | | | | 5,937 | |
Sapporo Holdings Ltd. | | | 200 | | | | 3,818 | |
Sawai Pharmaceutical Co. Ltd. | | | 150 | | | | 8,198 | |
SBI Holdings, Inc. | | | 800 | | | | 15,007 | |
SCREEN Holdings Co. Ltd. | | | 180 | | | | 8,733 | |
SCSK Corp. | | | 150 | | | | 6,769 | |
Secom Co. Ltd. | | | 660 | | | | 55,149 | |
Sega Sammy Holdings, Inc. | | | 670 | | | | 8,126 | |
Seibu Holdings, Inc. | | | 700 | | | | 8,394 | |
Seiko Epson Corp. | | | 900 | | | | 10,190 | |
Seino Holdings Co. Ltd. | | | 500 | | | | 5,957 | |
Sekisui Chemical Co. Ltd. | | | 1,200 | | | | 15,169 | |
Sekisui House Ltd. | | | 1,980 | | | | 34,065 | |
Seven & i Holdings Co. Ltd. | | | 2,670 | | | | 87,873 | |
Seven Bank Ltd. | | | 2,100 | | | | 5,681 | |
SG Holdings Co. Ltd. | | | 700 | | | | 19,413 | |
Sharp Corp.* | | | 640 | | | | 7,121 | |
Shiga Bank Ltd. (The) | | | 150 | | | | 3,532 | |
Shikoku Electric Power Co., Inc. | | | 500 | | | | 3,856 | |
Shimadzu Corp. | | | 980 | | | | 24,360 | |
Shimamura Co. Ltd. | | | 100 | | | | 6,295 | |
Shimano, Inc. | | | 250 | | | | 36,698 | |
Shimizu Corp. | | | 1,800 | | | | 13,891 | |
Shin-Etsu Chemical Co. Ltd. | | | 1,320 | | | | 146,522 | |
Shinsei Bank Ltd. | | | 680 | | | | 8,194 | |
Shionogi & Co. Ltd. | | | 890 | | | | 48,927 | |
Ship Healthcare Holdings, Inc. | | | 100 | | | | 4,539 | |
Shiseido Co. Ltd. | | | 1,300 | | | | 76,447 | |
Shizuoka Bank Ltd. (The) | | | 1,860 | | | | 11,291 | |
SHO-BOND Holdings Co. Ltd. | | | 132 | | | | 5,351 | |
Showa Denko KK | | | 500 | | | | 10,940 | |
SKY Perfect JSAT Holdings, Inc. | | | 500 | | | | 1,887 | |
Skylark Holdings Co. Ltd. | | | 700 | | | | 10,383 | |
SMC Corp. | | | 190 | | | | 85,804 | |
SMS Co. Ltd. | | | 200 | | | | 4,370 | |
Softbank Corp. | | | 5,500 | | | | 74,952 | |
SoftBank Group Corp. | | | 5,510 | | | | 235,327 | |
Sohgo Security Services Co. Ltd. | | | 220 | | | | 10,538 | |
Sojitz Corp. | | | 4,400 | | | | 10,251 | |
Sompo Holdings, Inc. | | | 1,160 | | | | 37,537 | |
Sony Corp. | | | 4,130 | | | | 266,353 | |
Sony Financial Holdings, Inc. | | | 580 | | | | 11,065 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 29 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Sotetsu Holdings, Inc. | | | 260 | | | $ | 6,673 | |
Square Enix Holdings Co. Ltd. | | | 280 | | | | 11,426 | |
Stanley Electric Co. Ltd. | | | 540 | | | | 12,337 | |
Subaru Corp. | | | 2,070 | | | | 41,597 | |
Sugi Holdings Co. Ltd. | | | 100 | | | | 5,991 | |
SUMCO Corp. | | | 780 | | | | 11,047 | |
Sumitomo Bakelite Co. Ltd. | | | 100 | | | | 2,596 | |
Sumitomo Chemical Co. Ltd. | | | 5,100 | | | | 15,775 | |
Sumitomo Corp. | | | 3,780 | | | | 43,056 | |
Sumitomo Dainippon Pharma Co. Ltd. | | | 600 | | | | 8,312 | |
Sumitomo Electric Industries Ltd. | | | 2,570 | | | | 26,394 | |
Sumitomo Forestry Co. Ltd. | | | 500 | | | | 6,237 | |
Sumitomo Heavy Industries Ltd. | | | 410 | | | | 8,697 | |
Sumitomo Metal Mining Co. Ltd. | | | 790 | | | | 19,807 | |
Sumitomo Mitsui Financial Group, Inc. | | | 4,470 | | | | 117,717 | |
Sumitomo Mitsui Trust Holdings, Inc. | | | 1,280 | | | | 37,355 | |
Sumitomo Osaka Cement Co. Ltd. | | | 100 | | | | 3,271 | |
Sumitomo Realty & Development Co. Ltd. | | | 1,300 | | | | 35,046 | |
Sumitomo Rubber Industries Ltd. | | | 700 | | | | 6,842 | |
Sundrug Co. Ltd. | | | 220 | | | | 7,539 | |
Suntory Beverage & Food Ltd. | | | 470 | | | | 17,673 | |
Sushiro Global Holdings Ltd. | | | 400 | | | | 6,213 | |
Suzuken Co. Ltd. | | | 330 | | | | 12,697 | |
Suzuki Motor Corp. | | | 1,520 | | | | 48,723 | |
Sysmex Corp. | | | 620 | | | | 42,782 | |
T&D Holdings, Inc. | | | 1,800 | | | | 15,472 | |
Tadano Ltd. | | | 500 | | | | 3,822 | |
Taiheiyo Cement Corp. | | | 430 | | | | 8,434 | |
Taisei Corp. | | | 650 | | | | 20,378 | |
Taisho Pharmaceutical Holdings Co. Ltd. | | | 180 | | | | 11,279 | |
Taiyo Nippon Sanso Corp. | | | 490 | | | | 7,621 | |
Taiyo Yuden Co. Ltd. | | | 400 | | | | 11,166 | |
Takara Bio, Inc. | | | 130 | | | | 2,912 | |
Takara Holdings, Inc. | | | 500 | | | | 3,690 | |
Takashimaya Co. Ltd. | | | 500 | | | | 4,538 | |
Takeda Pharmaceutical Co. Ltd. | | | 5,183 | | | | 186,063 | |
TDK Corp. | | | 370 | | | | 31,987 | |
TechnoPro Holdings, Inc. | | | 130 | | | | 7,708 | |
Teijin Ltd. | | | 640 | | | | 10,260 | |
Terumo Corp. | | | 2,260 | | | | 74,553 | |
THK Co. Ltd. | | | 370 | | | | 8,873 | |
TIS, Inc. | | | 900 | | | | 17,257 | |
Tobu Railway Co. Ltd. | | | 730 | | | | 24,778 | |
Toda Corp. | | | 800 | | | | 4,664 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Toho Co. Ltd. | | | 420 | | | $ | 13,760 | |
Toho Gas Co. Ltd. | | | 270 | | | | 13,143 | |
Tohoku Electric Power Co., Inc. | | | 1,580 | | | | 14,803 | |
Tokai Carbon Co. Ltd. | | | 600 | | | | 4,964 | |
Tokai Rika Co. Ltd. | | | 140 | | | | 1,801 | |
Tokio Marine Holdings, Inc. | | | 2,220 | | | | 104,548 | |
Tokuyama Corp. | | | 200 | | | | 4,234 | |
Tokyo Broadcasting System Holdings, Inc. | | | 100 | | | | 1,555 | |
Tokyo Century Corp. | | | 160 | | | | 5,428 | |
Tokyo Electric Power Co. Holdings, Inc.* | | | 5,400 | | | | 18,117 | |
Tokyo Electron Ltd. | | | 480 | | | | 101,474 | |
Tokyo Gas Co. Ltd. | | | 1,440 | | | | 30,745 | |
Tokyo Tatemono Co. Ltd. | | | 670 | | | | 7,635 | |
Tokyu Corp. | | | 1,700 | | | | 25,606 | |
Tokyu Fudosan Holdings Corp. | | | 2,000 | | | | 9,911 | |
Topcon Corp. | | | 300 | | | | 2,484 | |
Toppan Printing Co. Ltd. | | | 950 | | | | 14,181 | |
Toray Industries, Inc. | | | 5,190 | | | | 23,928 | |
Toshiba Corp. | | | 1,560 | | | | 38,846 | |
Toshiba TEC Corp. | | | 100 | | | | 3,277 | |
Tosoh Corp. | | | 950 | | | | 11,644 | |
TOTO Ltd. | | | 530 | | | | 18,459 | |
Toyo Seikan Group Holdings Ltd. | | | 470 | | | | 4,773 | |
Toyo Suisan Kaisha Ltd. | | | 270 | | | | 12,913 | |
Toyo Tire Corp. | | | 300 | | | | 3,571 | |
Toyobo Co. Ltd. | | | 300 | | | | 3,520 | |
Toyoda Gosei Co. Ltd. | | | 310 | | | | 5,801 | |
Toyota Boshoku Corp. | | | 180 | | | | 2,248 | |
Toyota Industries Corp. | | | 580 | | | | 29,278 | |
Toyota Motor Corp. | | | 8,360 | | | | 517,079 | |
Toyota Tsusho Corp. | | | 760 | | | | 18,138 | |
Trend Micro, Inc. | | | 440 | | | | 22,227 | |
TS Tech Co. Ltd. | | | 180 | | | | 4,890 | |
Tsumura & Co. | | | 180 | | | | 4,979 | |
Tsuruha Holdings, Inc. | | | 110 | | | | 14,679 | |
Ube Industries Ltd. | | | 400 | | | | 6,726 | |
Ulvac, Inc. | | | 200 | | | | 5,521 | |
Unicharm Corp. | | | 1,340 | | | | 49,372 | |
Ushio, Inc. | | | 400 | | | | 4,234 | |
USS Co. Ltd. | | | 700 | | | | 11,074 | |
Wacoal Holdings Corp. | | | 200 | | | | 4,063 | |
Welcia Holdings Co. Ltd. | | | 160 | | | | 11,527 | |
West Japan Railway Co. | | | 660 | | | | 40,736 | |
Yakult Honsha Co. Ltd. | | | 400 | | | | 23,240 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 31 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Japan (cont’d.) | | | | | | | | |
Yamada Denki Co. Ltd. | | | 2,600 | | | $ | 12,340 | |
Yamaguchi Financial Group, Inc. | | | 800 | | | | 4,302 | |
Yamaha Corp. | | | 520 | | | | 21,011 | |
Yamaha Motor Co. Ltd. | | | 900 | | | | 11,705 | |
Yamato Holdings Co. Ltd. | | | 1,230 | | | | 21,463 | |
Yamato Kogyo Co. Ltd. | | | 100 | | | | 1,978 | |
Yamazaki Baking Co. Ltd. | | | 400 | | | | 7,042 | |
Yaoko Co. Ltd. | | | 100 | | | | 6,180 | |
Yaskawa Electric Corp. | | | 920 | | | | 30,048 | |
Yokogawa Electric Corp. | | | 800 | | | | 11,012 | |
Yokohama Rubber Co. Ltd. (The) | | | 370 | | | | 4,742 | |
Z Holdings Corp. | | | 8,700 | | | | 33,712 | |
Zenkoku Hosho Co. Ltd. | | | 150 | | | | 4,399 | |
Zensho Holdings Co. Ltd. | | | 300 | | | | 5,936 | |
Zeon Corp. | | | 600 | | | | 5,284 | |
ZOZO, Inc. | | | 390 | | | | 6,284 | |
| | | | | | | | |
| | | | | | | 11,525,551 | |
| | |
Jordan 0.0% | | | | | | | | |
Hikma Pharmaceuticals PLC | | | 491 | | | | 14,637 | |
| | |
Kazakhstan 0.0% | | | | | | | | |
KAZ Minerals PLC | | | 863 | | | | 4,481 | |
| | |
Luxembourg 0.1% | | | | | | | | |
ArcelorMittal SA | | | 2,072 | | | | 22,764 | |
Eurofins Scientific SE | | | 40 | | | | 22,141 | |
L’Occitane International SA | | | 1,250 | | | | 1,911 | |
RTL Group SA | | | 157 | | | | 5,239 | |
SES SA | | | 1,179 | | | | 7,877 | |
Tenaris SA | | | 1,622 | | | | 11,331 | |
| | | | | | | | |
| | | | | | | 71,263 | |
| | |
Macau 0.2% | | | | | | | | |
Galaxy Entertainment Group Ltd. | | | 6,900 | | | | 44,411 | |
MGM China Holdings Ltd. | | | 3,100 | | | | 3,887 | |
Sands China Ltd. | | | 8,000 | | | | 32,891 | |
SJM Holdings Ltd. | | | 7,600 | | | | 7,508 | |
Wynn Macau Ltd. | | | 5,200 | | | | 9,006 | |
| | | | | | | | |
| | | | | | | 97,703 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Malaysia 0.0% | | | | | | | | |
Wing Tai Holdings Ltd. | | | 1,500 | | | $ | 1,835 | |
| | |
Mexico 0.0% | | | | | | | | |
Fresnillo PLC | | | 723 | | | | 6,495 | |
| | |
Netherlands 3.6% | | | | | | | | |
Aalberts NV | | | 342 | | | | 9,628 | |
ABN AMRO Bank NV, 144A, CVA | | | 1,373 | | | | 10,534 | |
Adyen NV, 144A* | | | 90 | | | | 88,372 | |
Aegon NV | | | 5,808 | | | | 14,917 | |
Akzo Nobel NV | | | 660 | | | | 49,883 | |
Altice Europe NV* | | | 1,842 | | | | 7,358 | |
Argenx SE* | | | 145 | | | | 21,883 | |
ASM International NV | | | 163 | | | | 17,831 | |
ASML Holding NV | | | 1,364 | | | | 399,324 | |
ASR Nederland NV | | | 517 | | | | 13,883 | |
Boskalis Westminster | | | 251 | | | | 4,351 | |
Euronext NV, 144A | | | 202 | | | | 16,987 | |
EXOR NV | | | 346 | | | | 18,938 | |
GrandVision NV, 144A | | | 178 | | | | 4,725 | |
Heineken Holding NV | | | 360 | | | | 28,090 | |
Heineken NV | | | 798 | | | | 67,949 | |
ING Groep NV | | | 13,375 | | | | 73,538 | |
Just Eat Takeaway, 144A* | | | 343 | | | | 34,939 | |
Just Eat Takeaway.com NV, 144A* | | | 21 | | | | 2,148 | |
Koninklijke Ahold Delhaize NV | | | 3,691 | | | | 89,886 | |
Koninklijke DSM NV | | | 595 | | | | 72,591 | |
Koninklijke KPN NV | | | 11,125 | | | | 25,685 | |
Koninklijke Philips NV | | | 3,058 | | | | 132,934 | |
Koninklijke Vopak NV | | | 230 | | | | 13,257 | |
NN Group NV | | | 1,103 | | | | 31,960 | |
OCI NV* | | | 365 | | | | 4,412 | |
Randstad NV | | | 381 | | | | 15,316 | |
Royal Dutch Shell PLC (Class A Stock) | | | 14,073 | | | | 234,677 | |
Royal Dutch Shell PLC (Class B Stock) | | | 12,813 | | | | 207,279 | |
Signify NV, 144A | | | 447 | | | | 9,124 | |
Wolters Kluwer NV | | | 893 | | | | 65,982 | |
| | | | | | | | |
| | | | | | | 1,788,381 | |
| | |
New Zealand 0.3% | | | | | | | | |
a2 Milk Co. Ltd.* | | | 2,510 | | | | 29,684 | |
Air New Zealand Ltd. | | | 1,718 | | | | 1,408 | |
Auckland International Airport Ltd. | | | 3,729 | | | | 13,758 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 33 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
New Zealand (cont’d.) | | | | | | | | |
Contact Energy Ltd. | | | 2,343 | | | $ | 9,010 | |
Fisher & Paykel Healthcare Corp. Ltd. | | | 1,928 | | | | 32,137 | |
Fletcher Building Ltd. | | | 2,568 | | | | 5,788 | |
Kiwi Property Group Ltd. | | | 5,896 | | | | 3,466 | |
Mercury NZ Ltd. | | | 2,505 | | | | 6,964 | |
Meridian Energy Ltd. | | | 4,280 | | | | 11,675 | |
Ryman Healthcare Ltd. | | | 1,424 | | | | 10,455 | |
SKYCITY Entertainment Group Ltd. | | | 2,580 | | | | 4,173 | |
Spark New Zealand Ltd. | | | 6,159 | | | | 16,716 | |
Xero Ltd.* | | | 308 | | | | 15,832 | |
| | | | | | | | |
| | | | | | | 161,066 | |
| | |
Norway 0.5% | | | | | | | | |
Aker ASA (Class A Stock)* | | | 80 | | | | 2,125 | |
Aker BP ASA | | | 347 | | | | 5,760 | |
DNB ASA | | | 3,576 | | | | 43,338 | |
Equinor ASA | | | 3,335 | | | | 46,506 | |
Gjensidige Forsikring ASA | | | 588 | | | | 10,385 | |
Leroy Seafood Group ASA | | | 1,003 | | | | 5,324 | |
Mowi ASA | | | 1,425 | | | | 24,356 | |
Norsk Hydro ASA | | | 4,692 | | | | 12,021 | |
Orkla ASA | | | 2,586 | | | | 23,373 | |
Salmar ASA | | | 168 | | | | 6,552 | |
Schibsted ASA (Class A Stock) | | | 243 | | | | 5,154 | |
Schibsted ASA (Class B Stock) | | | 340 | | | | 6,591 | |
Telenor ASA | | | 2,188 | | | | 33,632 | |
Yara International ASA | | | 602 | | | | 20,540 | |
| | | | | | | | |
| | | | | | | 245,657 | |
| | |
Poland 0.2% | | | | | | | | |
Bank Polska Kasa Opieki SA | | | 560 | | | | 7,020 | |
CD Projekt SA | | | 213 | | | | 18,389 | |
Cyfrowy Polsat SA | | | 928 | | | | 5,720 | |
Dino Polska SA, 144A* | | | 164 | | | | 6,907 | |
Grupa Lotos SA | | | 354 | | | | 5,321 | |
KGHM Polska Miedz SA* | | | 428 | | | | 7,949 | |
LPP SA | | | 3 | | | | 4,700 | |
mBank SA* | | | 35 | | | | 1,847 | |
PGE Polska Grupa Energetyczna SA* | | | 1,951 | | | | 1,944 | |
Polski Koncern Naftowy ORLEN SA | | | 1,075 | | | | 16,151 | |
Polskie Gornictwo Naftowe i Gazownictwo SA | | | 5,784 | | | | 5,188 | |
Powszechna Kasa Oszczednosci Bank Polski SA | | | 2,905 | | | | 15,414 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Poland (cont’d.) | | | | | | | | |
Powszechny Zaklad Ubezpieczen SA | | | 1,840 | | | $ | 13,441 | |
Santander Bank Polska SA | | | 113 | | | | 4,460 | |
| | | | | | | | |
| | | | | | | 114,451 | |
| | |
Portugal 0.1% | | | | | | | | |
EDP - Energias de Portugal SA | | | 8,485 | | | | 35,888 | |
Galp Energia SGPS SA | | | 1,746 | | | | 20,171 | |
Jeronimo Martins SGPS SA | | | 825 | | | | 14,165 | |
| | | | | | | | |
| | | | | | | 70,224 | |
| | |
Russia 0.1% | | | | | | | | |
Evraz PLC | | | 1,918 | | | | 6,428 | |
Polymetal International PLC | | | 1,152 | | | | 23,654 | |
| | | | | | | | |
| | | | | | | 30,082 | |
| | |
Singapore 1.1% | | | | | | | | |
Ascendas Real Estate Investment Trust, REIT | | | 10,216 | | | | 21,416 | |
Ascott Residence Trust | | | 6,000 | | | | 3,786 | |
BOC Aviation Ltd., 144A | | | 800 | | | | 5,406 | |
CapitaLand Commercial Trust, REIT | | | 8,997 | | | | 10,228 | |
CapitaLand Ltd. | | | 8,300 | | | | 17,725 | |
CapitaLand Mall Trust, REIT | | | 8,300 | | | | 11,060 | |
City Developments Ltd. | | | 1,600 | | | | 8,997 | |
ComfortDelGro Corp. Ltd. | | | 6,400 | | | | 7,460 | |
DBS Group Holdings Ltd. | | | 6,132 | | | | 86,358 | |
Frasers Property Ltd. | | | 900 | | | | 782 | |
Genting Singapore Ltd. | | | 19,400 | | | | 10,746 | |
Golden Agri-Resources Ltd. | | | 17,800 | | | | 1,962 | |
Jardine Cycle & Carriage Ltd. | | | 390 | | | | 5,536 | |
Keppel Corp. Ltd. | | | 4,800 | | | | 20,287 | |
Keppel REIT | | | 7,700 | | | | 5,758 | |
Mapletree Commercial Trust, REIT | | | 7,600 | | | | 10,513 | |
Mapletree Industrial Trust, REIT | | | 5,400 | | | | 9,730 | |
Mapletree Logistics Trust, REIT | | | 8,200 | | | | 10,400 | |
Mapletree North Asia Commercial Trust, REIT | | | 7,300 | | | | 4,875 | |
Olam International Ltd. | | | 2,400 | | | | 2,548 | |
Oversea-Chinese Banking Corp. Ltd. | | | 11,673 | | | | 74,565 | |
SATS Ltd. | | | 2,100 | | | | 4,874 | |
Sembcorp Industries Ltd. | | | 2,500 | | | | 2,864 | |
Sembcorp Marine Ltd.* | | | 3,400 | | | | 1,798 | |
Singapore Airlines Ltd. | | | 1,800 | | | | 7,769 | |
Singapore Exchange Ltd. | | | 2,900 | | | | 19,825 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 35 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Singapore (cont’d.) | | | | | | | | |
Singapore Post Ltd. | | | 4,200 | | | $ | 2,164 | |
Singapore Press Holdings Ltd. | | | 4,900 | | | | 5,269 | |
Singapore Technologies Engineering Ltd. | | | 5,200 | | | | 12,595 | |
Singapore Telecommunications Ltd. | | | 25,400 | | | | 50,739 | |
StarHub Ltd. | | | 2,900 | | | | 3,053 | |
Suntec Real Estate Investment Trust, REIT | | | 7,400 | | | | 7,324 | |
United Overseas Bank Ltd. | | | 4,357 | | | | 62,627 | |
UOL Group Ltd. | | | 1,800 | | | | 8,706 | |
Venture Corp. Ltd. | | | 1,000 | | | | 11,182 | |
Wilmar International Ltd. | | | 6,400 | | | | 16,170 | |
| | | | | | | | |
| | | | | | | 547,097 | |
| | |
South Africa 0.2% | | | | | | | | |
Anglo American PLC | | | 4,250 | | | | 75,772 | |
Investec PLC | | | 2,289 | | | | 4,723 | |
| | | | | | | | |
| | | | | | | 80,495 | |
| | |
South Korea 3.9% | | | | | | | | |
Amorepacific Corp. | | | 111 | | | | 16,136 | |
AMOREPACIFIC Group | | | 118 | | | | 5,609 | |
BGF retail Co. Ltd. | | | 17 | | | | 2,186 | |
BNK Financial Group, Inc. | | | 1,143 | | | | 4,714 | |
Celltrion Healthcare Co. Ltd.* | | | 243 | | | | 16,927 | |
Celltrion, Inc.* | | | 347 | | | | 59,719 | |
Cheil Worldwide, Inc. | | | 191 | | | | 2,779 | |
CJ CheilJedang Corp. | | | 30 | | | | 6,727 | |
CJ Corp. | | | 34 | | | | 2,256 | |
CJ ENM Co. Ltd. | | | 27 | | | | 2,835 | |
CJ Logistics Corp.* | | | 20 | | | | 2,434 | |
Coway Co. Ltd. | | | 200 | | | | 10,027 | |
Daelim Industrial Co. Ltd. | | | 106 | | | | 7,596 | |
Daewoo Engineering & Construction Co. Ltd.* | | | 483 | | | | 1,397 | |
Daewoo Shipbuilding & Marine Engineering Co. Ltd.* | | | 159 | | | | 2,215 | |
DB Insurance Co. Ltd. | | | 156 | | | | 5,630 | |
DGB Financial Group, Inc. | | | 416 | | | | 1,799 | |
Dongsuh Cos., Inc. | | | 129 | | | | 1,824 | |
Doosan Bobcat, Inc. | | | 66 | | | | 1,278 | |
Doosan Fuel Cell Co. Ltd.* | | | 220 | | | | 1,324 | |
Doosan Heavy Industries & Construction Co. Ltd.* | | | 302 | | | | 983 | |
Doosan Infracore Co. Ltd.* | | | 367 | | | | 1,296 | |
E-MART, Inc. | | | 62 | | | | 6,048 | |
Fila Holdings Corp. | | | 161 | | | | 4,593 | |
GS Engineering & Construction Corp. | | | 239 | | | | 4,915 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
GS Holdings Corp. | | | 161 | | | $ | 5,090 | |
GS Retail Co. Ltd. | | | 72 | | | | 2,238 | |
Hana Financial Group, Inc. | | | 1,007 | | | | 22,883 | |
Hankook Tire & Technology Co. Ltd. | | | 235 | | | | 4,048 | |
Hanmi Pharm Co. Ltd. | | | 27 | | | | 5,705 | |
Hanon Systems | | | 554 | | | | 4,137 | |
Hanssem Co. Ltd. | | | 27 | | | | 1,602 | |
Hanwha Aerospace Co. Ltd.* | | | 98 | | | | 2,169 | |
Hanwha Corp. | | | 141 | | | | 2,370 | |
Hanwha Life Insurance Co. Ltd. | | | 928 | | | | 1,371 | |
Hanwha Solutions Corp. | | | 219 | | | | 2,580 | |
HDC Hyundai Development Co-Engineering & Construction (Class E Stock) | | | 154 | | | | 2,388 | |
Helixmith Co. Ltd.* | | | 76 | | | | 4,125 | |
Hite Jinro Co. Ltd. | | | 102 | | | | 2,721 | |
HLB, Inc.* | | | 132 | | | | 10,205 | |
Hotel Shilla Co. Ltd. | | | 109 | | | | 7,522 | |
Hyundai Department Store Co. Ltd. | | | 42 | | | | 2,490 | |
Hyundai Engineering & Construction Co. Ltd. | | | 231 | | | | 6,610 | |
Hyundai Glovis Co. Ltd. | | | 63 | | | | 5,229 | |
Hyundai Heavy Industries Holdings Co. Ltd. | | | 33 | | | | 6,509 | |
Hyundai Marine & Fire Insurance Co. Ltd. | | | 225 | | | | 4,805 | |
Hyundai Mipo Dockyard Co. Ltd. | | | 55 | | | | 1,389 | |
Hyundai Mobis Co. Ltd. | | | 222 | | | | 31,083 | |
Hyundai Motor Co. | | | 485 | | | | 37,200 | |
Hyundai Steel Co. | | | 255 | | | | 4,501 | |
Hyundai Wia Corp. | | | 47 | | | | 1,270 | |
Industrial Bank of Korea | | | 840 | | | | 5,443 | |
Kakao Corp. | | | 172 | | | | 26,046 | |
Kangwon Land, Inc. | | | 349 | | | | 7,161 | |
KB Financial Group, Inc. | | | 1,318 | | | | 37,251 | |
KCC Corp. | | | 12 | | | | 1,612 | |
KEPCO Plant Service & Engineering Co. Ltd. | | | 71 | | | | 1,884 | |
Kia Motors Corp. | | | 858 | | | | 20,955 | |
Korea Aerospace Industries Ltd. | | | 209 | | | | 4,387 | |
Korea Electric Power Corp.* | | | 920 | | | | 18,068 | |
Korea Gas Corp. | | | 70 | | | | 1,540 | |
Korea Investment Holdings Co. Ltd. | | | 120 | | | | 4,915 | |
Korea Shipbuilding & Offshore Engineering Co. Ltd.* | | | 149 | | | | 9,992 | |
Korea Zinc Co. Ltd. | | | 35 | | | | 11,118 | |
Korean Air Lines Co. Ltd.* | | | 128 | | | | 2,091 | |
KT&G Corp. | | | 376 | | | | 24,966 | |
Kumho Petrochemical Co. Ltd. | | | 48 | | | | 2,993 | |
LG Chem Ltd. | | | 156 | | | | 47,765 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 37 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
LG Corp. | | | 300 | | | $ | 15,130 | |
LG Display Co. Ltd.* | | | 683 | | | | 6,133 | |
LG Electronics, Inc. | | | 358 | | | | 16,057 | |
LG Household & Health Care Ltd. | | | 31 | | | | 35,105 | |
LG Uplus Corp. | | | 671 | | | | 7,364 | |
Lotte Chemical Corp. | | | 53 | | | | 9,375 | |
Lotte Corp. | | | 157 | | | | 5,125 | |
LOTTE Fine Chemical Co. Ltd. | | | 48 | | | | 1,524 | |
Lotte Shopping Co. Ltd. | | | 30 | | | | 2,463 | |
LS Corp. | | | 37 | | | | 1,143 | |
Mando Corp. | | | 90 | | | | 1,739 | |
Medy-Tox, Inc. | | | 11 | | | | 1,033 | |
Mirae Asset Daewoo Co. Ltd. | | | 1,205 | | | | 5,532 | |
NAVER Corp. | | | 454 | | | | 73,659 | |
NCSoft Corp. | | | 57 | | | | 30,025 | |
Netmarble Corp., 144A* | | | 71 | | | | 5,553 | |
NH Investment & Securities Co. Ltd. | | | 343 | | | | 2,718 | |
NHN Corp.* | | | 27 | | | | 1,698 | |
NongShim Co. Ltd. | | | 9 | | | | 2,180 | |
OCI Co. Ltd.* | | | 48 | | | | 1,566 | |
Orion Corp. | | | 79 | | | | 8,023 | |
Ottogi Corp. | | | 4 | | | | 1,783 | |
Paradise Co. Ltd. | | | 124 | | | | 1,597 | |
POSCO | | | 231 | | | | 34,730 | |
POSCO Chemical Co. Ltd. | | | 57 | | | | 2,419 | |
Posco International Corp. | | | 122 | | | | 1,423 | |
S-1 Corp. | | | 75 | | | | 5,283 | |
Samsung Biologics Co. Ltd., 144A* | | | 47 | | | | 22,314 | |
Samsung C&T Corp. | | | 279 | | | | 24,184 | |
Samsung Card Co. Ltd. | | | 83 | | | | 2,039 | |
Samsung Electro-Mechanics Co. Ltd. | | | 192 | | | | 17,972 | |
Samsung Electronics Co. Ltd. | | | 15,960 | | | | 653,807 | |
Samsung Engineering Co. Ltd.* | | | 593 | | | | 5,597 | |
Samsung Fire & Marine Insurance Co. Ltd. | | | 109 | | | | 16,983 | |
Samsung Heavy Industries Co. Ltd.* | | | 1,451 | | | | 5,084 | |
Samsung Life Insurance Co. Ltd. | | | 238 | | | | 9,591 | |
Samsung SDI Co. Ltd. | | | 179 | | | | 42,234 | |
Samsung SDS Co. Ltd. | | | 103 | | | | 13,669 | |
Samsung Securities Co. Ltd. | | | 231 | | | | 5,676 | |
Shinhan Financial Group Co. Ltd. | | | 1,622 | | | | 40,774 | |
Shinsegae, Inc. | | | 26 | | | | 5,611 | |
SillaJen, Inc.* | | | 138 | | | | 1,405 | |
SK Holdings Co. Ltd. | | | 108 | | | | 16,092 | |
SK Hynix, Inc. | | | 1,740 | | | | 117,982 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
SK Innovation Co. Ltd. | | | 185 | | | $ | 14,937 | |
SK Networks Co. Ltd. | | | 404 | | | | 1,792 | |
SK Telecom Co. Ltd. | | | 78 | | | | 13,556 | |
SKC Co. Ltd. | | | 52 | | | | 2,091 | |
S-Oil Corp. | | | 147 | | | | 8,444 | |
Ssangyong Cement Industrial Co. Ltd. | | | 296 | | | | 1,235 | |
Woori Financial Group, Inc. | | | 1,923 | | | | 13,319 | |
Yuhan Corp. | | | 180 | | | | 6,932 | |
| | | | | | | | |
| | | | | | | 1,927,374 | |
| | |
Spain 2.1% | | | | | | | | |
Acciona SA | | | 66 | | | | 6,535 | |
ACS Actividades de Construccion y Servicios SA | | | 808 | | | | 20,039 | |
Aena SME SA, 144A* | | | 243 | | | | 30,735 | |
Amadeus IT Group SA | | | 1,378 | | | | 66,240 | |
Banco Bilbao Vizcaya Argentaria SA | | | 22,722 | | | | 74,039 | |
Banco de Sabadell SA | | | 21,012 | | | | 8,702 | |
Banco Santander SA | | | 55,684 | | | | 124,194 | |
Bankia SA | | | 3,609 | | | | 3,668 | |
Bankinter SA | | | 2,481 | | | | 10,219 | |
CaixaBank SA | | | 11,916 | | | | 21,447 | |
Cellnex Telecom SA, 144A | | | 920 | | | | 48,172 | |
EDP Renovaveis SA | | | 528 | | | | 6,494 | |
Enagas SA | | | 844 | | | | 19,664 | |
Endesa SA | | | 1,125 | | | | 24,934 | |
Ferrovial SA | | | 1,632 | | | | 40,651 | |
Grifols SA | | | 1,155 | | | | 39,188 | |
Iberdrola SA | | | 20,138 | | | | 201,172 | |
Industria de Diseno Textil SA | | | 3,561 | | | | 90,661 | |
Inmobiliaria Colonial Socimi SA, REIT | | | 1,032 | | | | 9,939 | |
Mapfre SA | | | 3,145 | | | | 5,757 | |
Merlin Properties Socimi SA, REIT | | | 1,209 | | | | 11,194 | |
Naturgy Energy Group SA | | | 1,044 | | | | 18,384 | |
Red Electrica Corp. SA | | | 1,423 | | | | 24,980 | |
Repsol SA | | | 4,568 | | | | 41,506 | |
Siemens Gamesa Renewable Energy SA | | | 729 | | | | 10,828 | |
Telefonica SA | | | 15,500 | | | | 70,824 | |
Zardoya Otis SA | | | 529 | | | | 3,676 | |
| | | | | | | | |
| | | | | | | 1,033,842 | |
| | |
Sweden 2.5% | | | | | | | | |
Alfa Laval AB* | | | 1,024 | | | | 19,238 | |
Assa Abloy AB (Class B Stock) | | | 3,097 | | | | 55,860 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 39 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Sweden (cont’d.) | | | | | | | | |
Atlas Copco AB (Class A Stock) | | | 2,127 | | | $ | 73,325 | |
Atlas Copco AB (Class B Stock) | | | 1,283 | | | | 39,870 | |
Boliden AB | | | 951 | | | | 19,492 | |
Castellum AB | | | 878 | | | | 15,431 | |
Electrolux AB (Class B Stock) | | | 764 | | | | 10,551 | |
Electrolux Professional AB (Class B Stock)* | | | 764 | | | | 1,773 | |
Elekta AB (Class B Stock) | | | 1,220 | | | | 11,285 | |
Epiroc AB (Class A Stock) | | | 2,133 | | | | 21,381 | |
Epiroc AB (Class B Stock) | | | 1,338 | | | | 13,235 | |
EQT AB* | | | 685 | | | | 9,590 | |
Essity AB (Class B Stock)* | | | 2,056 | | | | 66,977 | |
Fastighets AB Balder (Class B Stock)* | | | 342 | | | | 13,524 | |
Hennes & Mauritz AB (Class B Stock) | | | 2,987 | | | | 41,636 | |
Hexagon AB (Class B Stock)* | | | 858 | | | | 42,773 | |
Hufvudstaden AB (Class A Stock) | | | 368 | | | | 4,738 | |
Husqvarna AB (Class B Stock) | | | 1,412 | | | | 8,561 | |
ICA Gruppen AB | | | 269 | | | | 11,738 | |
Industrivarden AB (Class A Stock)* | | | 715 | | | | 14,847 | |
Industrivarden AB (Class C Stock)* | | | 585 | | | | 12,107 | |
Investment AB Latour (Class B Stock) | | | 437 | | | | 6,560 | |
Investor AB (Class A Stock) | | | 437 | | | | 21,718 | |
Investor AB (Class B Stock) | | | 1,535 | | | | 77,084 | |
Kinnevik AB (Class B Stock) | | | 831 | | | | 17,193 | |
L E Lundbergforetagen AB (Class B Stock) | | | 239 | | | | 10,112 | |
Lundin Petroleum AB | | | 613 | | | | 16,041 | |
Nibe Industrier AB (Class B Stock) | | | 1,007 | | | | 18,825 | |
Saab AB (Class B Stock)* | | | 294 | | | | 6,824 | |
Sandvik AB | | | 3,638 | | | | 56,418 | |
Securitas AB (Class B Stock) | | | 1,010 | | | | 11,957 | |
Skandinaviska Enskilda Banken AB (Class A Stock) | | | 4,913 | | | | 40,430 | |
Skanska AB (Class B Stock)* | | | 1,220 | | | | 23,322 | |
SKF AB (Class B Stock) | | | 1,324 | | | | 21,161 | |
Svenska Cellulosa AB SCA (Class B Stock)* | | | 2,032 | | | | 21,911 | |
Svenska Handelsbanken AB (Class A Stock)* | | | 5,054 | | | | 46,735 | |
Swedbank AB (Class A Stock) | | | 3,413 | | | | 40,323 | |
Swedish Match AB | | | 557 | | | | 34,615 | |
Swedish Orphan Biovitrum AB* | | | 604 | | | | 11,762 | |
Tele2 AB (Class B Stock) | | | 1,850 | | | | 23,997 | |
Telefonaktiebolaget LM Ericsson (Class B Stock) | | | 10,087 | | | | 87,804 | |
Telia Co. AB | | | 8,833 | | | | 30,513 | |
Trelleborg AB (Class B Stock)* | | | 800 | | | | 10,310 | |
Volvo AB (Class B Stock)* | | | 5,053 | | | | 65,359 | |
| | | | | | | | |
| | | | | | | 1,208,906 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Switzerland 9.1% | | | | | | | | |
ABB Ltd. | | | 6,125 | | | $ | 115,940 | |
Adecco Group AG | | | 547 | | | | 23,943 | |
Alcon, Inc.* | | | 1,565 | | | | 82,366 | |
Baloise Holding AG | | | 166 | | | | 24,824 | |
Banque Cantonale Vaudoise | | | 10 | | | | 8,840 | |
Barry Callebaut AG | | | 11 | | | | 21,533 | |
Chocoladefabriken Lindt & Spruengli AG | | | 5 | | | | 38,948 | |
Cie Financiere Richemont SA | | | 1,756 | | | | 99,877 | |
Clariant AG | | | 685 | | | | 12,678 | |
Coca-Cola HBC AG | | | 662 | | | | 16,820 | |
Credit Suisse Group AG | | | 8,416 | | | | 76,747 | |
DKSH Holding AG | | | 126 | | | | 7,130 | |
Dufry AG | | | 92 | | | | 2,998 | |
EMS-Chemie Holding AG | | | 24 | | | | 15,532 | |
Flughafen Zurich AG* | | | 73 | | | | 9,005 | |
Geberit AG | | | 124 | | | | 55,412 | |
Georg Fischer AG | | | 14 | | | | 10,441 | |
Givaudan SA | | | 32 | | | | 107,393 | |
Glencore PLC* | | | 36,550 | | | | 67,586 | |
Helvetia Holding AG | | | 124 | | | | 11,362 | |
Julius Baer Group Ltd. | | | 741 | | | | 28,987 | |
Kuehne + Nagel International AG | | | 179 | | | | 25,582 | |
LafargeHolcim Ltd.* | | | 1,720 | | | | 71,481 | |
Logitech International SA | | | 518 | | | | 24,985 | |
Lonza Group AG* | | | 254 | | | | 110,882 | |
Nestle SA | | | 9,837 | | | | 1,036,371 | |
Novartis AG | | | 7,241 | | | | 616,396 | |
OC Oerlikon Corp. AG | | | 819 | | | | 6,138 | |
Pargesa Holding SA | | | 143 | | | | 10,156 | |
Partners Group Holding AG | | | 56 | | | | 44,033 | |
PSP Swiss Property AG | | | 142 | | | | 16,590 | |
Roche Holding AG | | | 2,366 | | | | 823,922 | |
Roche Holding AG (XBRN) | | | 91 | | | | 31,690 | |
Schindler Holding AG | | | 70 | | | | 15,001 | |
Schindler Holding AG (PART CERT) | | | 144 | | | | 32,085 | |
SGS SA | | | 20 | | | | 45,373 | |
Sika AG | | | 471 | | | | 77,932 | |
Sonova Holding AG | | | 188 | | | | 33,954 | |
STMicroelectronics NV | | | 2,133 | | | | 55,582 | |
Straumann Holding AG | | | 34 | | | | 25,833 | |
Sulzer AG | | | 31 | | | | 2,201 | |
Swatch Group AG (The) | | | 91 | | | | 18,215 | |
Swatch Group AG (The) | | | 135 | | | | 5,249 | |
Swiss Life Holding AG | | | 113 | | | | 40,015 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 41 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Switzerland (cont’d.) | | | | | | | | |
Swiss Prime Site AG | | | 265 | | | $ | 25,283 | |
Swiss Re AG | | | 946 | | | | 68,187 | |
Swisscom AG | | | 86 | | | | 44,694 | |
Temenos AG* | | | 205 | | | | 26,610 | |
UBS Group AG | | | 11,508 | | | | 124,668 | |
Vifor Pharma AG | | | 149 | | | | 22,379 | |
Zurich Insurance Group AG | | | 503 | | | | 159,693 | |
| | | | | | | | |
| | | | | | | 4,479,542 | |
| | |
Taiwan 0.0% | | | | | | | | |
FIT Hon Teng Ltd., 144A | | | 3,000 | | | | 652 | |
| | |
United Arab Emirates 0.0% | | | | | | | | |
NMC Health PLC^ | | | 372 | | | | — | |
| | |
United Kingdom 11.7% | | | | | | | | |
3i Group PLC | | | 3,231 | | | | 31,890 | |
Admiral Group PLC | | | 711 | | | | 20,827 | |
Ashmore Group PLC | | | 1,540 | | | | 7,379 | |
Ashtead Group PLC | | | 1,519 | | | | 41,813 | |
Associated British Foods PLC | | | 1,202 | | | | 28,646 | |
AstraZeneca PLC | | | 4,470 | | | | 466,509 | |
Auto Trader Group PLC, 144A | | | 3,045 | | | | 17,608 | |
Avast PLC, 144A | | | 1,823 | | | | 10,572 | |
AVEVA Group PLC | | | 207 | | | | 9,314 | |
Aviva PLC | | | 13,210 | | | | 40,203 | |
B&M European Value Retail SA | | | 2,921 | | | | 12,235 | |
Babcock International Group PLC | | | 745 | | | | 3,938 | |
BAE Systems PLC | | | 10,904 | | | | 69,536 | |
Barclays PLC | | | 58,335 | | | | 77,655 | |
Barratt Developments PLC | | | 3,338 | | | | 21,787 | |
Bellway PLC | | | 400 | | | | 13,375 | |
Berkeley Group Holdings PLC | | | 404 | | | | 21,287 | |
BP PLC | | | 67,705 | | | | 267,223 | |
British American Tobacco PLC | | | 7,754 | | | | 300,611 | |
British Land Co. PLC (The), REIT | | | 3,194 | | | | 16,329 | |
BT Group PLC | | | 29,485 | | | | 43,026 | |
Bunzl PLC | | | 1,164 | | | | 25,344 | |
Burberry Group PLC | | | 1,353 | | | | 23,640 | |
Centrica PLC | | | 18,846 | | | | 9,444 | |
Cineworld Group PLC | | | 3,160 | | | | 2,617 | |
CK Hutchison Holdings Ltd. | | | 9,100 | | | | 67,417 | |
CNH Industrial NV* | | | 3,382 | | | | 21,158 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
United Kingdom (cont’d.) | | | | | | | | |
Compass Group PLC | | | 5,456 | | | $ | 92,126 | |
ConvaTec Group PLC, 144A | | | 5,155 | | | | 13,876 | |
Croda International PLC | | | 414 | | | | 25,358 | |
DCC PLC | | | 335 | | | | 23,929 | |
Derwent London PLC, REIT | | | 347 | | | | 13,567 | |
Diageo PLC | | | 7,837 | | | | 271,466 | |
Direct Line Insurance Group PLC | | | 4,726 | | | | 16,166 | |
DS Smith PLC | | | 4,371 | | | | 17,219 | |
easyJet PLC | | | 675 | | | | 5,100 | |
Experian PLC | | | 3,074 | | | | 91,622 | |
Fiat Chrysler Automobiles NV | | | 3,788 | | | | 33,016 | |
G4S PLC | | | 4,699 | | | | 6,429 | |
GlaxoSmithKline PLC | | | 16,731 | | | | 348,691 | |
GVC Holdings PLC | | | 2,059 | | | | 19,469 | |
Halma PLC | | | 1,283 | | | | 33,816 | |
Hargreaves Lansdown PLC | | | 1,041 | | | | 18,893 | |
Hiscox Ltd. | | | 964 | | | | 8,555 | |
HomeServe PLC | | | 929 | | | | 13,086 | |
Howden Joinery Group PLC | | | 1,939 | | | | 12,853 | |
HSBC Holdings PLC | | | 69,112 | | | | 356,473 | |
IMI PLC | | | 942 | | | | 9,802 | |
Imperial Brands PLC | | | 3,210 | | | | 67,613 | |
Inchcape PLC | | | 1,420 | | | | 8,955 | |
Informa PLC | | | 4,644 | | | | 25,608 | |
InterContinental Hotels Group PLC | | | 621 | | | | 28,179 | |
Intermediate Capital Group PLC | | | 935 | | | | 13,291 | |
International Consolidated Airlines Group SA | | | 1,373 | | | | 3,833 | |
Intertek Group PLC | | | 546 | | | | 32,788 | |
ITV PLC | | | 12,971 | | | | 12,451 | |
J Sainsbury PLC | | | 5,687 | | | | 14,164 | |
JD Sports Fashion PLC | | | 1,437 | | | | 9,582 | |
John Wood Group PLC | | | 2,289 | | | | 5,851 | |
Johnson Matthey PLC | | | 653 | | | | 16,333 | |
Kingfisher PLC | | | 7,276 | | | | 14,373 | |
Land Securities Group PLC, REIT | | | 2,453 | | | | 20,555 | |
Legal & General Group PLC | | | 19,990 | | | | 51,512 | |
Lloyds Banking Group PLC | | | 236,950 | | | | 95,548 | |
London Stock Exchange Group PLC | | | 1,062 | | | | 100,293 | |
M&G PLC | | | 8,893 | | | | 14,809 | |
Marks & Spencer Group PLC | | | 6,367 | | | | 7,386 | |
Meggitt PLC | | | 2,542 | | | | 8,903 | |
Melrose Industries PLC | | | 16,442 | | | | 20,657 | |
Micro Focus International PLC | | | 1,115 | | | | 6,734 | |
Mondi PLC | | | 1,618 | | | | 28,705 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 43 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
United Kingdom (cont’d.) | | | | | | | | |
National Grid PLC | | | 11,920 | | | $ | 140,194 | |
Next PLC | | | 424 | | | | 25,221 | |
Ninety One PLC* | | | 1,144 | | | | 2,419 | |
Ocado Group PLC* | | | 1,558 | | | | 31,487 | |
Pearson PLC | | | 2,618 | | | | 15,121 | |
Pennon Group PLC | | | 1,405 | | | | 19,376 | |
Persimmon PLC | | | 1,080 | | | | 29,908 | |
Phoenix Group Holdings PLC | | | 1,818 | | | | 13,789 | |
Prudential PLC | | | 8,861 | | | | 124,963 | |
Quilter PLC, 144A | | | 6,039 | | | | 9,379 | |
Reckitt Benckiser Group PLC | | | 2,132 | | | | 177,696 | |
RELX PLC | | | 6,379 | | | | 144,193 | |
Renishaw PLC | | | 129 | | | | 5,701 | |
Rentokil Initial PLC | | | 6,257 | | | | 37,482 | |
Rightmove PLC | | | 3,018 | | | | 18,987 | |
Rolls-Royce Holdings PLC | | | 5,925 | | | | 24,534 | |
Royal Bank of Scotland Group PLC | | | 15,103 | | | | 21,015 | |
RSA Insurance Group PLC | | | 3,383 | | | | 15,391 | |
Sage Group PLC (The) | | | 3,736 | | | | 30,015 | |
Schroders PLC | | | 365 | | | | 12,186 | |
Segro PLC, REIT | | | 3,716 | | | | 38,786 | |
Severn Trent PLC | | | 821 | | | | 24,747 | |
Smith & Nephew PLC | | | 3,032 | | | | 59,458 | |
Smiths Group PLC | | | 1,368 | | | | 21,363 | |
Spirax-Sarco Engineering PLC | | | 249 | | | | 27,326 | |
SSE PLC | | | 3,592 | | | | 56,564 | |
St. James’s Place PLC | | | 1,801 | | | | 19,343 | |
Standard Chartered PLC | | | 8,898 | | | | 45,596 | |
Standard Life Aberdeen PLC | | | 8,270 | | | | 22,907 | |
Subsea 7 SA* | | | 749 | | | | 4,152 | |
Tate & Lyle PLC | | | 1,573 | | | | 14,105 | |
Taylor Wimpey PLC | | | 11,643 | | | | 21,543 | |
TechnipFMC PLC | | | 1,648 | | | | 14,568 | |
Tesco PLC | | | 32,753 | | | | 96,980 | |
Travis Perkins PLC | | | 820 | | | | 10,682 | |
Unilever NV | | | 4,673 | | | | 232,647 | |
Unilever PLC | | | 3,702 | | | | 190,558 | |
United Utilities Group PLC | | | 2,269 | | | | 25,757 | |
Virgin Money UK PLC* | | | 4,178 | | | | 4,020 | |
Vodafone Group PLC | | | 90,882 | | | | 128,134 | |
Weir Group PLC (The) | | | 832 | | | | 9,931 | |
Whitbread PLC | | | 436 | | | | 16,351 | |
See Notes to Financial Statements.
| | | | | | | | |
| Description | | Shares | | | Value | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
United Kingdom (cont’d.) | | | | | | | | |
Wm Morrison Supermarkets PLC | | | 7,640 | | | $ | 17,607 | |
WPP PLC | | | 4,079 | | | | 31,656 | |
| | | | | | | | |
| | | | | | | 5,744,856 | |
| | |
United States 0.4% | | | | | | | | |
Amcor PLC, CDI | | | 5,403 | | | | 49,238 | |
Carnival PLC | | | 501 | | | | 6,919 | |
Ferguson PLC | | | 767 | | | | 55,252 | |
James Hardie Industries PLC, CDI | | | 1,524 | | | | 22,894 | |
QIAGEN NV* | | | 733 | | | | 30,570 | |
Samsonite International SA, 144A | | | 3,900 | | | | 3,320 | |
Sims Metal Management Ltd. | | | 452 | | | | 2,046 | |
| | | | | | | | |
| | | | | | | 170,239 | |
| | | | | | | | |
TOTAL COMMON STOCKS
(cost $48,770,864) | | | | | | | 44,975,224 | |
| | | | | | | | |
| | |
EXCHANGE-TRADED FUND 4.1% | | | | | | | | |
| | |
United States | | | | | | | | |
iShares MSCI EAFE ETF
(cost $2,141,182) | | | 35,400 | | | | 2,002,578 | |
| | | | | | | | |
| | |
PREFERRED STOCKS 0.7% | | | | | | | | |
| | |
Germany 0.4% | | | | | | | | |
Bayerische Motoren Werke AG (PRFC) | | | 187 | | | | 8,887 | |
FUCHS PETROLUB SE (PRFC) | | | 245 | | | | 9,499 | |
Henkel AG & Co. KGaA (PRFC) | | | 590 | | | | 52,301 | |
Porsche Automobil Holding SE (PRFC) | | | 544 | | | | 27,574 | |
Sartorius AG (PRFC) | | | 116 | | | | 32,653 | |
Volkswagen AG (PRFC) | | | 621 | | | | 87,125 | |
| | | | | | | | |
| | | | | | | 218,039 | |
| | |
South Korea 0.3% | | | | | | | | |
Amorepacific Corp. (PRFC) | | | 29 | | | | 1,495 | |
CJ CheilJedang Corp. (PRFC) | | | 14 | | | | 1,280 | |
Hanwha Corp. (PRFC) | | | 128 | | | | 1,198 | |
Hyundai Motor Co. (2nd PRFC) | | | 122 | | | | 5,888 | |
Hyundai Motor Co. (PRFC) | | | 88 | | | | 4,124 | |
LG Chem Ltd. (PRFC) | | | 30 | | | | 4,248 | |
LG Electronics, Inc. (PRFC) | | | 64 | | | | 1,116 | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 45 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
| Description | | Shares | | | Value | |
PREFERRED STOCKS (Continued) | | | | | | | | |
| | |
South Korea (cont’d.) | | | | | | | | |
LG Household & Health Care Ltd. (PRFC) | | | 6 | | | $ | 3,570 | |
Samsung Electronics Co. Ltd. (PRFC) | | | 2,784 | | | | 96,236 | |
Samsung Fire & Marine Insurance Co. Ltd. (PRFC) | | | 9 | | | | 961 | |
| | | | | | | | |
| | | | | | | 120,116 | |
| | | | | | | | |
TOTAL PREFERRED STOCKS
(cost $354,252) | | | | | | | 338,155 | |
| | | | | | | | |
| | |
| | | Units | | | | |
| | |
RIGHTS* 0.0% | | | | | | | | |
| | |
Australia 0.0% | | | | | | | | |
Flight Centre Travel Group Ltd., expiring 05/01/20 | | | 96 | | | | 230 | |
| | | | | | | | |
| | |
South Korea 0.0% | | | | | | | | |
HLB, Inc., expiring 05/29/20 | | | 12 | | | | 149 | |
| | | | | | | | |
TOTAL RIGHTS
(COST $0) | | | | | | | 379 | |
| | | | | | | | |
TOTAL LONG-TERM INVESTMENTS
(cost $51,266,298) | | | | | | | 47,316,336 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
| | |
SHORT-TERM INVESTMENTS 1.8% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUND 1.2% | | | | | | | | |
PGIM Core Ultra Short Bond Fund
(cost $582,399)(w) | | | 582,399 | | | | 582,399 | |
| | | | | | | | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
U.S. TREASURY OBLIGATION(k)(n) 0.6% | | | | | | | | | | | | | | | | |
U.S. Treasury Bills
(cost $279,956) | | | 0.280 | % | | | 06/18/20 | | | | 280 | | | $ | 279,965 | |
| | | | | | | | | | | | | | | | |
TOTAL SHORT-TERM INVESTMENTS
(cost $862,355) | | | | | | | | | | | | | | | 862,364 | |
| | | | | | | | | | | | | | | | |
TOTAL INVESTMENTS 98.1%
(cost $52,128,653) | | | | | | | | | | | | | | | 48,178,700 | |
Other assets in excess of liabilities(z) | | | 1.9 | % | | | | | | | | | | | 947,315 | |
| | | | | | | | | | | | | | | | |
NET ASSETS 100.0% | | | | | | | | | | | | | | $ | 49,126,015 | |
| | | | | | | | | | | | | | | | |
Below is a list of the abbreviation(s) used in the semiannual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
ASX—Australian Securities Exchange
CAC40—French Stock Market Index
CDI—Chess Depository Interest
CVA—Certificate Van Aandelen (Bearer)
EAFE—Europe, Australasia, Far East
ETF—Exchange-Traded Fund
FTSE—Financial Times Stock Exchange
LIBOR—London Interbank Offered Rate
MSCI—Morgan Stanley Capital International
PART CERT—Participation Certificates
PRFC—Preference Shares
REITs—Real Estate Investment Trust
RSP—Savings Shares
SPI—Swiss Performance Index
STOXX—Stock Index of the Eurozone
TOPIX—Tokyo Stock Price Index
UTS—Unit Trust Security
XBRN—Berne Stock Exchange
| * | Non-income producing security. |
| # | Principal amount is shown in U.S. dollars unless otherwise stated. |
| ^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $0 and 0.0% of net assets. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
| (n) | Rate shown reflects yield to maturity at purchased date. |
| (w) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 47 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
Futures contracts outstanding at April 30, 2020:
| | | | | | | | | | | | | | | | |
Number of
Contracts | | | Type | | Expiration
Date | | | Current
Notional
Amount | | | Value /
Unrealized
Appreciation
(Depreciation) | |
| | Long Positions: | | | | | | | | | | | | |
| | 1 | | | ASX SPI 200 Index | | | Jun. 2020 | | | $ | 90,253 | | | $ | 10,197 | |
| | 1 | | | Nikkei 225 Index | | | Jun. 2020 | | | | 100,175 | | | | 5,947 | |
| | 2 | | | CAC40 10 Euro | | | May 2020 | | | | 99,624 | | | | 1,115 | |
| | 3 | | | TOPIX Index | | | Jun. 2020 | | | | 406,467 | | | | 26,746 | |
| | 4 | | | FTSE 100 Index | | | Jun. 2020 | | | | 296,486 | | | | 34,077 | |
| | 8 | | | Mini MSCI EAFE Index | | | Jun. 2020 | | | | 655,320 | | | | 75,910 | |
| | 15 | | | Euro STOXX 50 Index | | | Jun. 2020 | | | | 474,558 | | | | 87,428 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 241,420 | |
| | | | | | | | | | | | | | | | |
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 | | $ | — | | | $ | 279,965 | |
| | | | | | | | |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2020 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | |
Australia | | $ | — | | | $ | 3,083,755 | | | $ | — | |
Austria | | | — | | | | 77,280 | | | | — | |
Belgium | | | — | | | | 402,342 | | | | — | |
Cambodia | | | — | | | | 5,464 | | | | — | |
Chile | | | — | | | | 12,100 | | | | — | |
China | | | 111,139 | | | | 199,394 | | | | — | |
Denmark | | | — | | | | 929,925 | | | | — | |
See Notes to Financial Statements.
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities (continued) | | | | | | | | | | | | |
Assets (continued) | | | | | | | | | | | | |
Common Stocks (continued) | | | | | | | | | | | | |
Finland | | $ | — | | | $ | 529,744 | | | $ | — | |
France | | | — | | | | 4,183,202 | | | | — | |
Germany | | | — | | | | 3,426,689 | | | | — | |
Hong Kong | | | — | | | | 1,312,890 | | | | — | |
Indonesia | | | — | | | | 1,657 | | | | — | |
Ireland | | | — | | | | 240,185 | | | | — | |
Israel | | | — | | | | 232,455 | | | | — | |
Italy | | | — | | | | 902,174 | | | | — | |
Japan | | | — | | | | 11,525,551 | | | | — | |
Jordan | | | — | | | | 14,637 | | | | — | |
Kazakhstan | | | — | | | | 4,481 | | | | — | |
Luxembourg | | | — | | | | 71,263 | | | | — | |
Macau | | | — | | | | 97,703 | | | | — | |
Malaysia | | | — | | | | 1,835 | | | | — | |
Mexico | | | — | | | | 6,495 | | | | — | |
Netherlands | | | — | | | | 1,788,381 | | | | — | |
New Zealand | | | — | | | | 161,066 | | | | — | |
Norway | | | — | | | | 245,657 | | | | — | |
Poland | | | — | | | | 114,451 | | | | — | |
Portugal | | | — | | | | 70,224 | | | | — | |
Russia | | | — | | | | 30,082 | | | | — | |
Singapore | | | — | | | | 547,097 | | | | — | |
South Africa | | | — | | | | 80,495 | | | | — | |
South Korea | | | — | | | | 1,927,374 | | | | — | |
Spain | | | — | | | | 1,033,842 | | | | — | |
Sweden | | | — | | | | 1,208,906 | | | | — | |
Switzerland | | | — | | | | 4,479,542 | | | | — | |
Taiwan | | | — | | | | 652 | | | | — | |
United Arab Emirates | | | — | | | | — | | | | — | |
United Kingdom | | | — | | | | 5,744,856 | | | | — | |
United States | | | — | | | | 170,239 | | | | — | |
Exchange-Traded Fund | | | | | | | | | | | | |
United States | | | 2,002,578 | | | | — | | | | — | |
Preferred Stocks | | | | | | | | | | | | |
Germany | | | — | | | | 218,039 | | | | — | |
South Korea | | | — | | | | 120,116 | | | | — | |
Rights | | | | | | | | | | | | |
Australia | | | — | | | | 230 | | | | — | |
South Korea | | | — | | | | 149 | | | | — | |
Affiliated Mutual Fund | | | 582,399 | | | | — | | | | — | |
U.S. Treasury Obligation | | | — | | | | 279,965 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 2,696,116 | | | $ | 45,482,584 | | | $ | — | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 49 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Other Financial Instruments* | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Futures Contracts | | $ | 241,420 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | |
| * | 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 other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2020 were as follows:
| | | | |
Pharmaceuticals | | | 8.7 | % |
Banks | | | 7.3 | |
Insurance | | | 4.3 | |
Exchange-Traded Fund | | | 4.1 | |
Food Products | | | 3.8 | |
Oil, Gas & Consumable Fuels | | | 3.4 | |
Chemicals | | | 3.0 | |
Automobiles | | | 2.9 | |
Metals & Mining | | | 2.6 | |
Machinery | | | 2.5 | |
Capital Markets | | | 2.4 | |
Personal Products | | | 2.3 | |
Textiles, Apparel & Luxury Goods | | | 2.2 | |
Health Care Equipment & Supplies | | | 2.2 | |
Electric Utilities | | | 2.1 | |
Semiconductors & Semiconductor Equipment | | | 2.1 | |
Technology Hardware, Storage & Peripherals | | | 2.0 | |
Real Estate Management & Development | | | 1.9 | |
Electronic Equipment, Instruments & Components | | | 1.9 | |
Diversified Telecommunication Services | | | 1.9 | |
Wireless Telecommunication Services | | | 1.8 | |
Beverages | | | 1.7 | |
IT Services | | | 1.4 | |
Road & Rail | | | 1.4 | |
Software | | | 1.3 | |
Trading Companies & Distributors | | | 1.3 | |
Professional Services | | | 1.2 | |
Household Durables | | | 1.2 | |
Affiliated Mutual Fund | | | 1.2 | |
Industrial Conglomerates | | | 1.2 | |
Food & Staples Retailing | | | 1.1 | |
Electrical Equipment | | | 1.1 | |
Biotechnology | | | 1.1 | |
| | | | |
Tobacco | | | 1.1 | % |
Hotels, Restaurants & Leisure | | | 1.0 | |
Equity Real Estate Investment Trusts (REITs) | | | 0.9 | |
Construction & Engineering | | | 0.9 | |
Multi-Utilities | | | 0.9 | |
Aerospace & Defense | | | 0.9 | |
Household Products | | | 0.9 | |
Auto Components | | | 0.8 | |
Entertainment | | | 0.8 | |
Building Products | | | 0.7 | |
Internet & Direct Marketing Retail | | | 0.7 | |
Specialty Retail | | | 0.6 | |
U.S. Treasury Obligation | | | 0.6 | |
Air Freight & Logistics | | | 0.6 | |
Health Care Providers & Services | | | 0.5 | |
Gas Utilities | | | 0.5 | |
Construction Materials | | | 0.5 | |
Interactive Media & Services | | | 0.5 | |
Diversified Financial Services | | | 0.4 | |
Commercial Services & Supplies | | | 0.4 | |
Transportation Infrastructure | | | 0.4 | |
Multiline Retail | | | 0.4 | |
Life Sciences Tools & Services | | | 0.4 | |
Paper & Forest Products | | | 0.4 | |
Media | | | 0.3 | |
Communications Equipment | | | 0.3 | |
Leisure Products | | | 0.3 | |
Containers & Packaging | | | 0.2 | |
Marine | | | 0.2 | |
Water Utilities | | | 0.2 | |
Health Care Technology | | | 0.1 | |
Independent Power & Renewable Electricity Producers | | | 0.1 | |
See Notes to Financial Statements.
| | | | |
Industry Classification (continued): | | | |
Airlines | | | 0.0 | *% |
Energy Equipment & Services | | | 0.0 | * |
Consumer Finance | | | 0.0 | * |
Distributors | | | 0.0 | * |
Diversified Consumer Services | | | 0.0 | * |
| | | | |
| | | 98.1 | |
Other assets in excess of liabilities | | | 1.9 | |
| | | | |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2020 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | |
| | | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted
for as hedging instruments,
carried at fair value | | Statement of
Assets and
Liabilities Location | | Fair
Value | | | Statement of
Assets and
Liabilities Location | | Fair
Value | |
| Equity contracts | | Due from/to
broker-variation
margin futures | | $ | 241,420 | * | | — | | $ | — | |
| Equity contracts | | Unaffiliated investments | | | 379 | | | — | | | — | |
| | | | | | | | | | | | |
| | | | $ | 241,799 | | | | | $ | — | |
| | | | | | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2020 are as follows:
| | | | | | | | |
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Rights(1) | | | Futures | |
Equity contracts | | $ | 2 | | | $ | (441,936 | ) |
| | | | | | | | |
| (1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 51 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2020
| | | | | | | | |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Rights(2) | | | Futures | |
Equity contracts | | $ | 317 | | | $ | 161,739 | |
| | | | | | | | |
| (2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2020, the Fund’s average volume of derivative activities is as follows:
| | | | | | | | | | |
| | | | Futures
Contracts—
Long
Positions(1) | | | | |
| | | | $ | 2,270,656 | | | | | |
| (1) | Notional Amount in USD. |
See Notes to Financial Statements.
Statement of Assets and Liabilities (unaudited)
as of April 30, 2020
| | | | |
Assets | | | | |
Investments at value: | | | | |
Unaffiliated investments (cost $51,546,254) | | $ | 47,596,301 | |
Affiliated investments (cost $582,399) | | | 582,399 | |
Foreign currency, at value (cost $1,160,771) | | | 1,173,549 | |
Dividends and interest receivable | | | 180,206 | |
Tax reclaim receivable | | | 90,197 | |
Receivable for Fund shares sold | | | 66,518 | |
Due from Manager | | | 16,415 | |
Receivable for investments sold | | | 340 | |
Prepaid expenses and other assets | | | 6,349 | |
| | | | |
Total Assets | | | 49,712,274 | |
| | | | |
| |
Liabilities | | | | |
Payable for Fund shares reacquired | | | 344,005 | |
Payable for investments purchased | | | 122,711 | |
Custodian and accounting fees payable | | | 70,192 | |
Accrued expenses and other liabilities | | | 32,771 | |
Due to broker—variation margin futures | | | 16,501 | |
Affiliated transfer agent fee payable | | | 79 | |
| | | | |
Total Liabilities | | | 586,259 | |
| | | | |
| |
Net Assets | | $ | 49,126,015 | |
| | | | |
| | | | | |
Net assets were comprised of: | | | | |
Shares of beneficial interest, at par | | $ | 4,811 | |
Paid-in capital in excess of par | | | 54,091,737 | |
Total distributable earnings (loss) | | | (4,970,533 | ) |
| | | | |
Net assets, April 30, 2020 | | $ | 49,126,015 | |
| | | | |
| |
Class R6 | | | | |
Net asset value, offering price and redemption price per share, ($49,126,015 ÷ 4,810,963 shares of beneficial interest issued and outstanding) | | $ | 10.21 | |
| | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 53 | |
Statement of Operations (unaudited)
Six Months Ended April 30, 2020
| | | | |
Net Investment Income (Loss) | | | | |
Income | | | | |
Unaffiliated dividend income (net of $65,966 foreign withholding tax) | | $ | 610,021 | |
Affiliated dividend income | | | 4,673 | |
Affiliated income from securities lending, net | | | 1,429 | |
| | | | |
Total income | | | 616,123 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 63,778 | |
Custodian and accounting fees | | | 81,673 | |
Fund data services | | | 21,756 | |
Pricing fees | | | 18,902 | |
Audit fee | | | 16,112 | |
Shareholders’ reports | | | 14,231 | |
Legal fees and expenses | | | 8,223 | |
Trustees’ fees | | | 5,741 | |
Transfer agent’s fees and expenses (including affiliated expense of $239) | | | 264 | |
Registration fees | | | 31 | |
Miscellaneous | | | 2,591 | |
| | | | |
Total expenses | | | 233,302 | |
Less: Fee waiver and/or expense reimbursement | | | (156,741 | ) |
| | | | |
Net expenses | | | 76,561 | |
| | | | |
Net investment income (loss) | | | 539,562 | |
| | | | |
| |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $(935)) | | | (599,398 | ) |
Futures transactions | | | (441,936 | ) |
Foreign currency transactions | | | (38,677 | ) |
| | | | |
| | | (1,080,011 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | (7,253,975 | ) |
Futures | | | 161,739 | |
Foreign currencies | | | 172 | |
| | | | |
| | | (7,092,064 | ) |
| | | | |
Net gain (loss) on investment and foreign currency transactions | | | (8,172,075 | ) |
| | | | |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | (7,632,513 | ) |
| | | | |
See Notes to Financial Statements.
Statements of Changes in Net Assets (unaudited)
| | | | | | | | |
| | |
| | | Six Months Ended
April 30, 2020 | | | Year Ended
October 31, 2019 | |
Increase (Decrease) in Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 539,562 | | | $ | 1,278,301 | |
Net realized gain (loss) on investment and foreign currency transactions | | | (1,080,011 | ) | | | (407,935 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | (7,092,064 | ) | | | 3,546,421 | |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | (7,632,513 | ) | | | 4,416,787 | |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class R6 | | | (1,380,800 | ) | | | (1,020,616 | ) |
| | | | | | | | |
| | |
Fund share transactions | | | | | | | | |
Net proceeds from shares sold | | | 12,069,982 | | | | 12,379,377 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 1,380,800 | | | | 1,020,616 | |
Cost of shares reacquired | | | (6,118,589 | ) | | | (7,417,650 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 7,332,193 | | | | 5,982,343 | |
| | | | | | | | |
Total increase (decrease) | | | (1,681,120 | ) | | | 9,378,514 | |
| | |
Net Assets: | | | | | | | | |
Beginning of period | | | 50,807,135 | | | | 41,428,621 | |
| | | | | | | | |
End of period | | $ | 49,126,015 | | | $ | 50,807,135 | |
| | | | | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 55 | |
Notes to Financial Statements (unaudited)
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 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, which is a non-diversified fund for purposes of the 1940 Act and may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. Investing in 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. These financial statements relate only to the PGIM QMA International Developed Markets Index Fund (the “Fund”).
The investment objective of the Fund is to provide investment results that approximate the performance of the FTSE Developed Markets Ex-North America Net Index.
1. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. PIP2’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures or options, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Fund is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads,
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 57 | |
Notes to Financial Statements (unaudited) (continued)
credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Illiquid Securities: Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a Board approved Liquidity Risk Management Program (“LRMP”) that requires, among other things, that the Fund limit its illiquid investments that are assets to no more than 15% of net assets. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its subadviser(s) and may incur transaction costs that would not be incurred in the sale of securities that were freely marketable.
Restricted Securities: Securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer are considered restricted as to disposition under federal securities law (“restricted securities”). Such restricted securities are valued pursuant to the valuation procedures noted above. Restricted securities that would otherwise be considered illiquid investments pursuant to the Fund’s LRMP because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. Therefore, these Rule 144A securities, as well as
commercial paper that is sold in private placements under Section 4(2) of the Securities Act of 1933, may be classified higher than “illiquid” under the LRMP (i.e. “moderately liquid” or “less liquid” investments). However, the liquidity of the Fund’s investments in restricted securities could be impaired if trading does not develop or declines.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 59 | |
Notes to Financial Statements (unaudited) (continued)
by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
Rights: The Fund held rights acquired either through a direct purchase or pursuant to corporate actions. Rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. Such rights are held as long positions by the Fund until exercised, sold or expired. Rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Fund becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: The Fund expects to pay dividends from net investment income and distributions from net realized capital gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
The Fund has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. In addition, under the management agreement, the Manager provides all of the administrative functions necessary for the organization, operation and management of the Fund. The Manager administers the corporate affairs of
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 61 | |
Notes to Financial Statements (unaudited) (continued)
the Fund and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund’s custodian and the Fund’s transfer agent. The Manager is also responsible for the staffing and management of dedicated groups of legal, marketing, compliance and related personnel necessary for the operation of the Fund. The legal, marketing, compliance and related personnel are also responsible for the management and oversight of the various service providers to the Fund, including, but not limited to, the custodian, transfer agent, and accounting agent.
The Manager has entered into a subadvisory agreement with QMA LLC (“QMA”). The subadvisory agreement provides that QMA will furnish investment advisory services in connection with the management of the Fund. In connection therewith, QMA is obligated to keep certain books and records of the Fund. The Manager pays for the services of QMA, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.25% of the Fund’s average daily net assets.
The Manager has contractually agreed, through February 28, 2021, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 0.30% of average daily net assets for Class R6 shares. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
PIP2, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class R6 shares of the Fund. No distribution or service fees are paid to PIMS as distributor for Class R6 shares of the Fund.
PGIM, Inc., PGIM Investments, PIMS and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Trust’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of PIP2, registered under the 1940 Act and managed by PGIM Investments. Through the Fund’s investments in the mentioned underlying funds, PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services. 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 as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Pursuant to the Rule 17a-7 procedures and consistent with guidance issued by the Securities and Exchange Commission (“SEC”), the Trust’s Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such 17a-7 transactions were effected in accordance with the Fund’s Rule 17a-7 procedures. For the reporting period ended April 30, 2020, no 17a-7 transactions were entered into by the Fund.
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2020, were $8,653,771 and $2,263,807, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated investments for the reporting period ended April 30, 2020, is presented as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value,
Beginning of Period | | Cost of
Purchases | | | Proceeds
from Sales | | | Change in
Unrealized
Gain (Loss) | | | Realized
Gain (Loss) | | | Value,
End of
Period | | | Shares,
End of Period | | | Income | |
PGIM Core Ultra Short Bond Fund* | |
$634,314 | | $ | 8,396,344 | | | $ | 8,448,259 | | | $ | — | | | $ | — | | | $ | 582,399 | | | | 582,399 | | | $ | 4,673 | |
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 63 | |
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value,
Beginning of
Period | | Cost of
Purchases | | | Proceeds
from Sales | | | Change in
Unrealized
Gain (Loss) | | | Realized
Gain (Loss) | | | Value,
End of
Period | | | Shares,
End of Period | | | Income | |
PGIM Institutional Money Market Fund* | |
$— | | $ | 2,534,130 | | | $ | 2,533,195 | | | $ | — | | | $ | (935 | ) | | $ | — | | | | — | | | $ | 1,429 | ** |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$634,314 | | $ | 10,930,474 | | | $ | 10,981,454 | | | $ | — | | | $ | (935 | ) | | $ | 582,399 | | | | | | | $ | 6,102 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| * | The Fund did not have any capital gain distributions during the reporting period. |
| ** | Represents the affiliated amount of securities lending income shown on the Statement of Operations. |
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2020 were as follows:
| | | | |
Tax Basis | | $ | 52,366,791 | |
| | | | |
Gross Unrealized Appreciation | | | 4,946,154 | |
Gross Unrealized Depreciation | | | (8,892,825 | ) |
| | | | |
Net Unrealized Depreciation | | $ | (3,946,671 | ) |
| | | | |
The book basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Fund had a capital loss carryforward as of October 31, 2019 of approximately $265,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the three fiscal years up to the most recent fiscal year ended October 31, 2019 are subject to such review.
6. Capital and Ownership
The Fund offers Class R6 shares. Class R6 shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.
PIP2 has authorized the Fund to issue an unlimited number of shares of beneficial interest of the Fund at $0.001 par value per share.
As of April 30, 2020, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
| | | | | | | | |
| | | Number of Shares | | | Percentage of
Outstanding Shares | |
Class R6 | | | 4,810,963 | | | | 100 | % |
At reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
| | | | | | |
| Affiliated | | Unaffiliated |
Number of
Shareholders | | Percentage of
Outstanding Shares | | Number of
Shareholders | | Percentage of
Outstanding Shares |
| 7 | | 87% | | — | | —% |
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
Class R6 | | Shares | | | Amount | |
Six months ended April 30, 2020: | | | | | | | | |
Shares sold | | | 1,127,112 | | | $ | 12,069,982 | |
Shares issued in reinvestment of dividends and distributions | | | 111,445 | | | | 1,380,800 | |
Shares reacquired | | | (605,231 | ) | | | (6,118,589 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 633,326 | | | $ | 7,332,193 | |
| | | | | | | | |
Year ended October 31, 2019: | | | | | | | | |
Shares sold | | | 1,085,029 | | | $ | 12,379,377 | |
Shares issued in reinvestment of dividends and distributions | | | 96,741 | | | | 1,020,616 | |
Shares reacquired | | | (649,798 | ) | | | (7,417,650 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 531,972 | | | $ | 5,982,343 | |
| | | | | | | | |
7. Borrowings
PIP2, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the current SCA in effect at the reporting period-end.
| | | | |
| | | SCA | |
Term of Commitment | | | 10/3/2019 –10/1/2020 | |
Total Commitment | | $ | 1,222,500,000 | * |
Annualized Commitment Fee on
the Unused Portion of the
SCA | | | 0.15% | |
Annualized Interest Rate on
Borrowings | |
| 1.20% plus the higher of (1)
the effective federal funds
rate, (2) the one-month
LIBOR rate or (3) zero
percent |
|
| * | Effective March 31, 2020, the SCA’s total commitment was increased from $900,000,000 to $1,162,500,000 and subsequently, effective April 7, 2020 was increased to $1,222,500,000. |
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 65 | |
Notes to Financial Statements (unaudited) (continued)
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended April 30, 2020. The average daily balance for the 6 days that the Fund had loans outstanding during the period was approximately $82,000, borrowed at a weighted average interest rate of 2.14%. The maximum loan outstanding amount during the period was $257,000. At April 30, 2020, the Fund did not have an outstanding loan amount.
8. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below:
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivative transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Fund. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many OTC derivative instruments will not have liquidity beyond the counterparty to the instrument. OTC derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.
Equity and Equity-Related Securities Risks: The value of a particular security could go down and you could lose money. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. The Fund’s holdings can vary significantly from broad market indexes and the performance of the Fund can deviate from the performance of these indexes. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: The Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. Foreign countries in which the Fund may invest may have markets that are less liquid, less regulated and more
volatile than US markets. The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability.
Geographic Concentration Risk: The Fund’s performance may be closely tied to the market, economic, political, regulatory or other conditions in the countries or regions in which the Fund invests. This can result in more pronounced risks based upon conditions that impact one or more countries or regions more or less than other countries or regions.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares.
There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Market and Credit Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of an investment in the Fund will decline. Additionally, the Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally.
9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy,
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 67 | |
Notes to Financial Statements (unaudited) (continued)
and the Fund’s policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has adopted the aspects related to the removal and modification of certain fair value measurement disclosures under the ASU. The Manager continues to evaluate certain other provisions of the ASU and does not expect a material impact to financial statement disclosures.
Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Six
Months
Ended
April 30, | | | Year Ended
October 31, | | | November 17,
2016(a)
through
October 31, | |
| | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(b): | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $12.16 | | | | $11.36 | | | | $12.55 | | | | $10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.12 | | | | 0.32 | | | | 0.32 | | | | 0.26 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.74 | ) | | | 0.76 | | | | (1.20 | ) | | | 2.30 | |
| Total from investment operations | | | (1.62 | ) | | | 1.08 | | | | (0.88 | ) | | | 2.56 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.33 | ) | | | (0.27 | ) | | | (0.23 | ) | | | (0.01 | ) |
| Distributions from net realized gains | | | - | | | | (0.01 | ) | | | (0.08 | ) | | | - | |
| Total dividends and distributions | | | (0.33 | ) | | | (0.28 | ) | | | (0.31 | ) | | | (0.01 | ) |
| Net asset value, end of period | | | $10.21 | | | | $12.16 | | | | $11.36 | | | | $12.55 | |
| Total Return(c): | | | (13.82)% | | | | 9.88% | | | | (7.22)% | | | | 25.61% | |
| |
| Ratios/Supplemental Data: | | | | | | | | | | | | |
| Net assets, end of period (000) | | | $49,126 | | | | $50,807 | | | | $41,429 | | | | $30,320 | |
| Average net assets (000) | | | $51,303 | | | | $45,226 | | | | $36,379 | | | | $20,731 | |
| Ratios to average net assets(d): | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.30% | (e) | | | 0.30% | | | | 0.30% | | | | 0.33% | (e) |
| Expenses before waivers and/or expense reimbursement | | | 0.91% | (e) | | | 1.12% | | | | 1.49% | | | | 2.61% | (e) |
| Net investment income (loss) | | | 2.11% | (e) | | | 2.83% | | | | 2.56% | | | | 2.39% | (e) |
| Portfolio turnover rate(f) | | | 5% | | | | 13% | | | | 9% | | | | 7% | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
| | | | |
| PGIM QMA International Developed Markets Index Fund | | | 69 | |
Fund Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Fund. The Fund’s Board of Trustees (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includes no less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Fund’s Board.
At a meeting of the Board of Trustees on March 3-5, 2020, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any material changes to the LRMP for the period from the inception of the Fund’s program on December 1, 2018 through December 31, 2019 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to be appropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
| | | | |
| | |
| ∎ MAIL | | ∎ TELEPHONE | | ∎ WEBSITE |
655 Broad Street Newark, NJ 07102 | | (800) 225-1852 | | pgiminvestments.com |
|
| PROXY VOTING |
| The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
|
| TRUSTEES |
| Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Michael S. Hyland • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
|
| OFFICERS |
| Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Jonathan D. Shain, Assistant Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
| | | | |
| MANAGER | | PGIM Investments LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| SUBADVISER | | QMA LLC | | Gateway Center Two
100 Mulberry Street
Newark, NJ 07102 |
|
| DISTRIBUTOR | | Prudential Investment
Management Services LLC | | 655 Broad Street
Newark, NJ 07102 |
|
| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street
New York, NY 10286 |
|
| TRANSFER AGENT | | Prudential Mutual Fund
Services LLC | | PO Box 9658
Providence, RI 02940 |
|
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | PricewaterhouseCoopers LLP | | 300 Madison Avenue
New York, NY 10017 |
|
| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue
New York, NY 10019 |
|
|
| An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. An investor may obtain the prospectus by visiting our website at pgiminvestments.com or by calling (800) 225-1852. The prospectus should be read carefully before investing. |
|
| SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
| Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM QMA International Developed Markets Index Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
|
| AVAILABILITY OF PORTFOLIO HOLDINGS |
| The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
| | | | |
ARE NOT INSURED BY THE FDIC OR ANY
FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OF OR GUARANTEED
BY ANY BANK OR ANY BANK AFFILIATE |
PGIM QMA INTERNATIONAL DEVELOPED MARKETS INDEX FUND
| | |
| NASDAQ | | PQDMX |
| CUSIP | | 74440E607 |
Item 2 – Code of Ethics — Not required, as this is not an annual filing.
Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.
Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.
Item 5 – Audit Committee of Listed Registrants – Not required, as this is not an annual filing.
Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.
Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a)It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b)There has been no significant change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant's internal control over financial reporting.
Item 12 – Controls and Procedures - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not applicable.
Item 13 – Exhibits
(a)(1) Code of Ethics – Not required, as this is not an annual filing.
(2)Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.
(3)Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.
(4)Registrant's Independent Public Accountant, attached as Exhibit 99.ACCT
(b)Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant | Prudential Investment Portfolios 2 |
By: | /s/ Andrew R. French |
| Andrew R. French |
| Secretary |
Date: | June 15, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stuart S. Parker |
| Stuart S. Parker |
| President and Principal Executive Officer |
Date: | June 15, 2020 |
By: | /s/ Christian J. Kelly |
| Christian J. Kelly |
| Treasurer and Principal Financial and Accounting Officer |
Date: | June 15, 2020 |
