UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-03981 | |
Exact name of registrant as specified in charter: | Prudential World Fund, Inc. | |
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: | 10/31/2022 | |
Date of reporting period: | 4/30/2022 |
Item 1 – Reports to Stockholders
PGIM QUANT SOLUTIONS INTERNATIONAL EQUITY FUND
Formerly known as PGIM QMA International Equity Fund
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
Table of Contents
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9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 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. PGIM Quantitative Solutions is the primary business name of PGIM Quantitative Solutions LLC (formerly known as QMA LLC), a wholly owned subsidiary of PGIM, Inc. (PGIM), a registered investment adviser and Prudential Financial company. © 2022 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
![]() | Dear Shareholder:
We hope you find the semiannual report for the PGIM Quant Solutions International Equity Fund informative and useful. The report covers performance for the six-month period ended April 30, 2022.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President PGIM Quant Solutions International Equity Fund June 15, 2022 |
PGIM Quant Solutions International Equity Fund | 3 |
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 4/30/22
| Average Annual Total Returns as of 4/30/22 (with sales charges) | |||||||||
One Year (%)
| Five Years (%)
| Ten Years (%)
| Since Inception (%)
| |||||||
Class A | -11.33 | -15.42 | 2.29 | 3.99 | — | |||||
Class C | -11.92 | -12.28 | 2.40 | 3.69 | — | |||||
Class Z | -11.28 | -10.14 | 3.81 | 4.93 | — | |||||
Class R6 | -11.05 | -9.91 | 4.10 | N/A | 6.04 (12/28/2016) | |||||
MSCI All Country World ex-US Index | ||||||||||
-11.87 | -10.31 | 4.94 | 5.04 | — |
Average Annual Total Returns as of 4/30/22 Since Inception (%) | ||
Class R6 (12/28/2016)
| ||
MSCI All Country World ex-US Index | 6.54 |
*Not annualized
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% | 1.00% | None | None |
Benchmark Definition
MSCI All Country World ex-US Index—The Morgan Stanley Capital International All Country World ex-US Index (MSCI ACWI ex-US Index) is an unmanaged, free float-adjusted, market capitalization-weighted index that is designed to provide a broad measure of stock performance throughout the world, with the exception of US-based companies. The Index includes both developed and emerging markets.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Quant Solutions International Equity Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
Ten Largest Holdings
| Line of Business
| Country
| % of Net Assets
| |||
Taiwan Semiconductor Manufacturing Co. Ltd. | Semiconductors & Semiconductor Equipment | Taiwan | 1.9% | |||
Roche Holding AG | Pharmaceuticals | Switzerland | 1.5% | |||
Sanofi | Pharmaceuticals | France | 1.1% | |||
Samsung Electronics Co. Ltd. | Technology Hardware, Storage & Peripherals | South Korea | 1.1% | |||
GlaxoSmithKline plc | Pharmaceuticals | United States | 1.0% | |||
British American Tobacco plc | Tobacco | United Kingdom | 1.0% | |||
Canadian Natural Resources Ltd. | Oil, Gas & Consumable Fuels | Canada | 1.0% | |||
Mitsubishi UFJ Financial Group, Inc. | Banks | Japan | 0.9% | |||
Toronto-Dominion Bank (The) | Banks | Canada | 0.9% | |||
iShares MSCI EAFE ETF | Exchange Traded Funds | United States | 0.9% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Quant Solutions International Equity Fund | 7 |
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Quant Solutions International Equity Fund | Beginning Account Value November 1, 2021 | Ending Account Value | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $ 886.70 | 1.42% | $ 6.64 | |||||
Hypothetical | $1,000.00 | $1,017.75 | 1.42% | $ 7.10 | ||||||
Class C | Actual | $1,000.00 | $ 880.80 | 2.66% | $12.40 | |||||
Hypothetical | $1,000.00 | $1,011.60 | 2.66% | $13.27 | ||||||
Class Z | Actual | $1,000.00 | $ 889.50 | 1.01% | $ 4.73 | |||||
Hypothetical | $1,000.00 | $1,019.79 | 1.01% | $ 5.06 | ||||||
Class R6 | Actual | $1,000.00 | $ 887.20 | 0.78% | $ 3.65 | |||||
Hypothetical | $1,000.00 | $1,020.93 | 0.78% | $ 3.91 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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Schedule of Investments (unaudited)
as of April 30, 2022
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 97.7% | ||||||||
COMMON STOCKS 95.2% | ||||||||
Australia 4.8% | ||||||||
| ||||||||
ARB Corp. Ltd. | 32,872 | $ | 909,924 | |||||
Bendigo & Adelaide Bank Ltd. | 40,950 | 304,497 | ||||||
BHP Group Ltd. | 26,938 | 894,178 | ||||||
BlueScope Steel Ltd. | 17,635 | 251,225 | ||||||
Charter Hall Group, REIT | 18,795 | 202,155 | ||||||
Dexus, REIT | 112,635 | 874,560 | ||||||
Genworth Mortgage Insurance Australia Ltd. | 337,943 | 712,304 | ||||||
Glencore PLC* | 86,620 | 530,682 | ||||||
Goodman Group, REIT | 84,092 | 1,397,209 | ||||||
JB Hi-Fi Ltd. | 15,765 | 582,128 | ||||||
Jumbo Interactive Ltd. | 9,672 | 118,200 | ||||||
Macquarie Group Ltd. | 6,767 | 968,485 | ||||||
Nick Scali Ltd. | 9,639 | 68,601 | ||||||
Rio Tinto Ltd. | 3,792 | 297,345 | ||||||
Rio Tinto PLC | 12,374 | 873,473 | ||||||
Sonic Healthcare Ltd. | 48,881 | 1,258,629 | ||||||
Stockland, REIT | 37,076 | 106,780 | ||||||
West African Resources Ltd.* | 297,147 | 282,498 | ||||||
|
| |||||||
10,632,873 | ||||||||
Austria 0.6% | ||||||||
| ||||||||
OMV AG | 24,478 | 1,256,241 | ||||||
Belgium 0.1% | ||||||||
| ||||||||
Bekaert SA | 2,280 | 84,831 | ||||||
Tessenderlo Group SA* | 3,385 | 118,916 | ||||||
|
| |||||||
203,747 | ||||||||
Brazil 1.1% | ||||||||
| ||||||||
Banco do Brasil SA | 165,000 | 1,108,021 | ||||||
Banco Santander Brasil SA, UTS | 68,000 | 437,658 | ||||||
Cia de Saneamento de Minas Gerais-COPASA | 84,900 | 235,263 | ||||||
Cia de Saneamento do Parana, UTS | 54,900 | 220,424 | ||||||
Marfrig Global Foods SA | 53,100 | 202,242 | ||||||
Petroleo Brasileiro SA | 33,100 | 225,288 | ||||||
Vale SA | 4,400 | 74,794 | ||||||
|
| |||||||
2,503,690 | ||||||||
Canada 8.2% | ||||||||
| ||||||||
Alimentation Couche-Tard, Inc. | 11,500 | 511,956 |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Canada (cont’d.) | ||||||||
| ||||||||
Aritzia, Inc.* | 29,200 | $ | 1,039,894 | |||||
Artis Real Estate Investment Trust, REIT | 69,200 | 706,194 | ||||||
Bank of Montreal | 5,700 | 604,365 | ||||||
Canaccord Genuity Group, Inc. | 35,600 | 313,144 | ||||||
Canadian Imperial Bank of Commerce | 15,100 | 1,669,328 | ||||||
Canadian Natural Resources Ltd. | 34,900 | 2,160,043 | ||||||
Canadian Tire Corp. Ltd. (Class A Stock) | 700 | 96,419 | ||||||
Canfor Corp.* | 52,900 | 1,008,050 | ||||||
CGI, Inc.* | 13,500 | 1,076,511 | ||||||
Dollarama, Inc. | 2,600 | 144,547 | ||||||
Fairfax Financial Holdings Ltd. | 2,600 | 1,428,609 | ||||||
George Weston Ltd. | 5,500 | 684,241 | ||||||
Gildan Activewear, Inc. | 7,700 | 260,912 | ||||||
Imperial Oil Ltd. | 8,400 | 422,926 | ||||||
Interfor Corp. | 47,800 | 1,362,578 | ||||||
Loblaw Cos. Ltd. | 13,700 | 1,253,172 | ||||||
Manulife Financial Corp. | 17,600 | 344,150 | ||||||
Metro, Inc. | 2,200 | 120,922 | ||||||
North West Co., Inc. (The) | 12,500 | 348,636 | ||||||
Nutrien Ltd. | 1,500 | 147,402 | ||||||
Royal Bank of Canada | 1,500 | 151,500 | ||||||
Russel Metals, Inc. | 6,100 | 162,584 | ||||||
Toromont Industries Ltd. | 1,000 | 88,032 | ||||||
Toronto-Dominion Bank (The) | 26,900 | 1,942,981 | ||||||
|
| |||||||
18,049,096 | ||||||||
Chile 0.1% | ||||||||
| ||||||||
Cencosud SA | 53,740 | 86,021 | ||||||
Lundin Mining Corp. | 10,000 | 91,309 | ||||||
|
| |||||||
177,330 | ||||||||
China 10.4% | ||||||||
| ||||||||
Agricultural Bank of China Ltd. (Class H Stock) | 260,000 | 97,721 | ||||||
Alibaba Group Holding Ltd.* | 38,800 | 478,392 | ||||||
Bank of China Ltd. (Class H Stock) | 759,000 | 298,257 | ||||||
Bank of Communications Co. Ltd. (Class H Stock) | 2,228,000 | 1,547,715 | ||||||
Baoshan Iron & Steel Co. Ltd. (Class A Stock) | 147,800 | 142,617 | ||||||
Beijing Enterprises Holdings Ltd. | 30,000 | 101,465 | ||||||
BYD Co. Ltd. (Class H Stock) | 48,500 | 1,416,300 | ||||||
China BlueChemical Ltd. (Class H Stock) | 1,792,000 | 615,476 | ||||||
China CITIC Bank Corp. Ltd. (Class H Stock) | 850,000 | 431,929 | ||||||
China Construction Bank Corp. (Class H Stock) | 2,587,000 | 1,827,330 | ||||||
China Medical System Holdings Ltd. | 498,000 | 716,777 |
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
China (cont’d.) | ||||||||
| ||||||||
China Shenhua Energy Co. Ltd. (Class H Stock) | 272,000 | $ | 869,438 | |||||
Chlitina Holding Ltd. | 105,000 | 657,629 | ||||||
Chongqing Rural Commercial Bank Co. Ltd. (Class A Stock) | 360,000 | 208,771 | ||||||
Chow Tai Fook Jewellery Group Ltd.* | 672,600 | 1,126,404 | ||||||
CITIC Ltd. | 746,000 | 770,005 | ||||||
COSCO SHIPPING Holdings Co. Ltd. (Class H Stock)* | 237,300 | 369,683 | ||||||
CSPC Pharmaceutical Group Ltd. | 540,000 | 554,244 | ||||||
Greentown Management Holdings Co. Ltd., 144A | 340,000 | 255,835 | ||||||
Guotai Junan Securities Co. Ltd. (Class A Stock) | 35,700 | 77,770 | ||||||
Huaxia Bank Co. Ltd. (Class A Stock) | 420,300 | 343,509 | ||||||
Industrial & Commercial Bank of China Ltd. (Class H Stock) | 2,662,000 | 1,620,146 | ||||||
Industrial Bank Co. Ltd. (Class A Stock) | 119,500 | 366,602 | ||||||
Intco Medical Technology Co. Ltd. (Class A Stock)* | 45,564 | 196,213 | ||||||
JD.com, Inc. (Class A Stock)* | 1,404 | 45,455 | ||||||
Lenovo Group Ltd. | 1,244,000 | 1,200,985 | ||||||
Li Ning Co. Ltd. | 156,500 | 1,225,545 | ||||||
Metallurgical Corp. of China Ltd. (Class A Stock) | 502,900 | 262,042 | ||||||
PetroChina Co. Ltd. (Class H Stock) | 2,004,000 | 956,488 | ||||||
Pinduoduo, Inc., ADR* | 15,000 | 646,350 | ||||||
Shaanxi Coal Industry Co. Ltd. (Class A Stock) | 144,900 | 374,560 | ||||||
Shanghai International Port Group Co. Ltd. (Class A Stock) | 402,600 | 356,050 | ||||||
Shanxi Taigang Stainless Steel Co. Ltd. (Class A Stock) | 213,000 | 188,906 | ||||||
SITC International Holdings Co. Ltd. | 26,000 | 86,530 | ||||||
Tencent Holdings Ltd. | 27,300 | 1,283,844 | ||||||
Wilmar International Ltd. | 404,400 | 1,287,988 | ||||||
|
| |||||||
23,004,971 | ||||||||
Denmark 1.5% | ||||||||
| ||||||||
AP Moller - Maersk A/S (Class B Stock) | 546 | 1,594,287 | ||||||
Novo Nordisk A/S (Class B Stock) | 2,496 | 286,219 | ||||||
Pandora A/S | 5,545 | 491,744 | ||||||
Scandinavian Tobacco Group A/S, 144A | 44,692 | 938,186 | ||||||
|
| |||||||
3,310,436 | ||||||||
Finland 1.3% | ||||||||
| ||||||||
Fortum OYJ | 5,300 | 88,304 | ||||||
Nokia OYJ* | 255,352 | 1,305,444 | ||||||
Sampo OYJ (Class A Stock) | 28,940 | 1,405,420 | ||||||
|
| |||||||
2,799,168 | ||||||||
France 6.3% | ||||||||
| ||||||||
Capgemini SE | 3,333 | 678,318 |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
France (cont’d.) | ||||||||
| ||||||||
Carrefour SA | 6,324 | $ | 133,621 | |||||
Cie de Saint-Gobain | 28,092 | 1,631,808 | ||||||
Cie Generale des Etablissements Michelin SCA | 8,405 | 1,041,572 | ||||||
Coface SA | 34,576 | 417,703 | ||||||
Dassault Systemes SE | 5,844 | 258,188 | ||||||
Eiffage SA | 860 | 85,000 | ||||||
Engie SA | 106,266 | 1,257,330 | ||||||
Hermes International | 587 | 721,794 | ||||||
Ipsen SA | 10,277 | 1,064,651 | ||||||
Kering SA | 692 | 368,549 | ||||||
L’Oreal SA | 1,763 | 637,892 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 1,106 | 711,593 | ||||||
Metropole Television SA | 7,770 | 143,679 | ||||||
Publicis Groupe SA | 19,555 | 1,170,134 | ||||||
Sanofi | 22,586 | 2,388,743 | ||||||
Sartorius Stedim Biotech | 336 | 109,995 | ||||||
Television Francaise 1 | 49,958 | 422,566 | ||||||
Trigano SA | 4,447 | 572,137 | ||||||
|
| |||||||
13,815,273 | ||||||||
Georgia 0.1% | ||||||||
| ||||||||
Bank of Georgia Group PLC | 6,739 | 103,264 | ||||||
Germany 3.7% | ||||||||
| ||||||||
Allianz SE | 3,356 | 755,124 | ||||||
Aurubis AG | 5,960 | 679,654 | ||||||
Bayer AG* | 15,640 | 1,026,660 | ||||||
Bayerische Motoren Werke AG | 2,990 | 243,842 | ||||||
Covestro AG, 144A | 21,433 | 923,128 | ||||||
Deutsche Pfandbriefbank AG, 144A | 7,340 | 93,056 | ||||||
Deutsche Post AG | 20,330 | 862,676 | ||||||
Deutsche Telekom AG | 5,612 | 102,718 | ||||||
E.ON SE | 97,901 | 1,019,388 | ||||||
Freenet AG | 11,353 | 311,242 | ||||||
Infineon Technologies AG | 7,625 | 217,756 | ||||||
Mercedes-Benz Group AG* | 2,442 | 169,766 | ||||||
Merck KGaA | 7,697 | 1,431,549 | ||||||
Nemetschek SE | 900 | 71,332 | ||||||
Northern Data AG*(a) | 2,992 | 153,908 | ||||||
|
| |||||||
8,061,799 | ||||||||
Greece 0.0% | ||||||||
| ||||||||
Hellenic Telecommunications Organization SA | 5,140 | 98,922 |
See Notes to Financial Statements.
12 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hong Kong 1.7% | ||||||||
| ||||||||
Jardine Matheson Holdings Ltd. | 21,500 | $ | 1,137,333 | |||||
Link REIT, REIT | 158,500 | 1,366,237 | ||||||
Value Partners Group Ltd. | 657,000 | 248,497 | ||||||
WH Group Ltd., 144A | 1,338,000 | 924,868 | ||||||
|
| |||||||
3,676,935 | ||||||||
India 3.5% | ||||||||
| ||||||||
Bajaj Consumer Care Ltd. | 153,522 | 335,164 | ||||||
Bharat Electronics Ltd. | 26,620 | 82,348 | ||||||
Cipla Ltd. | 6,700 | 85,675 | ||||||
GAIL India Ltd. | 45,589 | 94,226 | ||||||
Indian Oil Corp. Ltd. | 63,147 | 103,182 | ||||||
Infosys Ltd. | 12,768 | 258,012 | ||||||
JSW Steel Ltd. | 10,780 | 101,334 | ||||||
NTPC Ltd. | 223,251 | 451,925 | ||||||
Oil & Natural Gas Corp. Ltd. | 692,987 | 1,440,287 | ||||||
Page Industries Ltd. | 168 | 99,651 | ||||||
Power Grid Corp. of India Ltd. | 530,365 | 1,574,106 | ||||||
Redington India Ltd. | 250,893 | 496,987 | ||||||
Sun Pharmaceutical Industries Ltd. | 24,104 | 290,749 | ||||||
Tanla Platforms Ltd. | 20,020 | 367,503 | ||||||
Tata Elxsi Ltd. | 1,974 | 198,261 | ||||||
Tata Steel Ltd. | 87,353 | 1,436,567 | ||||||
Titan Co. Ltd. | 11,141 | 354,991 | ||||||
|
| |||||||
7,770,968 | ||||||||
Indonesia 0.8% | ||||||||
| ||||||||
Astra International Tbk PT | 2,359,100 | 1,231,778 | ||||||
First Pacific Co. Ltd. | 1,318,000 | 531,313 | ||||||
|
| |||||||
1,763,091 | ||||||||
Ireland 0.2% | ||||||||
| ||||||||
Kingspan Group PLC | 3,489 | 326,881 | ||||||
Israel 0.9% | ||||||||
| ||||||||
Bank Hapoalim BM | 9,728 | 90,095 | ||||||
Bank Leumi Le-Israel BM | 128,108 | 1,354,361 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd.* | 329,833 | 526,607 | ||||||
|
| |||||||
1,971,063 |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 13 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Italy 1.2% | ||||||||
| ||||||||
Eni SpA | 90,809 | $ | 1,270,817 | |||||
Ferrari NV | 1,120 | 235,788 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 8,100 | 81,384 | ||||||
MFE-MediaForEurope NV (Class A Stock)*(a) | 438,010 | 265,450 | ||||||
MFE-MediaForEurope NV (Class B Stock)(a) | 394,527 | 361,420 | ||||||
Moncler SpA | 1,836 | 95,773 | ||||||
Poste Italiane SpA, 144A | 25,720 | 251,790 | ||||||
|
| |||||||
2,562,422 | ||||||||
Japan 11.5% | ||||||||
| ||||||||
Advantest Corp. | 1,800 | 123,470 | ||||||
Benesse Holdings, Inc. | 15,200 | 270,270 | ||||||
Canon, Inc. | 63,300 | 1,450,260 | ||||||
Chugai Pharmaceutical Co. Ltd. | 41,300 | 1,239,448 | ||||||
Dai-ichi Life Holdings, Inc. | 80,000 | 1,577,622 | ||||||
Daiwa House Industry Co. Ltd. | 5,200 | 125,415 | ||||||
Digital Garage, Inc. | 10,700 | 353,219 | ||||||
Digital Holdings, Inc. | 11,400 | 128,404 | ||||||
Fujitsu Ltd. | 9,000 | 1,282,736 | ||||||
GungHo Online Entertainment, Inc. | 31,000 | 631,904 | ||||||
H.U. Group Holdings, Inc. | 3,700 | 82,323 | ||||||
IDOM, Inc. | 28,800 | 143,823 | ||||||
Inpex Corp. | 106,500 | 1,284,321 | ||||||
Isuzu Motors Ltd. | 29,700 | 346,764 | ||||||
Japan Tobacco, Inc. | 75,100 | 1,284,323 | ||||||
KDDI Corp. | 13,900 | 470,410 | ||||||
Marubeni Corp. | 14,500 | 158,627 | ||||||
Mitsubishi Corp. | 23,500 | 790,213 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 342,000 | 1,962,250 | ||||||
Mitsui & Co. Ltd. | 72,200 | 1,744,337 | ||||||
Mitsui OSK Lines Ltd. | 3,500 | 82,109 | ||||||
Nintendo Co. Ltd. | 2,200 | 1,004,170 | ||||||
Nippon Telegraph & Telephone Corp. | 30,668 | 908,252 | ||||||
Nippon Yusen KK | 5,400 | 391,368 | ||||||
Nisshinbo Holdings, Inc. | 60,000 | 449,402 | ||||||
Nitto Denko Corp. | 1,200 | 81,570 | ||||||
NTT Data Corp. | 8,600 | 158,254 | ||||||
Recruit Holdings Co. Ltd. | 23,600 | 873,465 | ||||||
Renesas Electronics Corp.* | 53,200 | 572,693 | ||||||
Secom Co. Ltd. | 1,400 | 98,773 | ||||||
Shimamura Co. Ltd. | 2,000 | 177,587 | ||||||
Shimano, Inc. | 6,500 | 1,135,142 | ||||||
Shionogi & Co. Ltd. | 2,500 | 140,868 | ||||||
Sumitomo Corp. | 79,500 | 1,253,965 |
See Notes to Financial Statements.
14 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont’d.) | ||||||||
| ||||||||
Taisei Corp. | 6,000 | $ | 162,586 | |||||
Takeda Pharmaceutical Co. Ltd. | 14,200 | 412,072 | ||||||
Toshiba Corp. | 3,500 | 144,063 | ||||||
Toyota Motor Corp. | 13,665 | 234,516 | ||||||
Transcosmos, Inc. | 4,400 | 104,085 | ||||||
Uchida Yoko Co. Ltd. | 4,400 | 165,966 | ||||||
Yamaha Motor Co. Ltd. | 37,800 | 780,161 | ||||||
YA-MAN Ltd. | 21,200 | 201,959 | ||||||
Yoshinoya Holdings Co. Ltd. | 22,600 | 410,798 | ||||||
|
| |||||||
25,393,963 | ||||||||
Kuwait 0.1% | ||||||||
| ||||||||
Humansoft Holding Co. KSC | 25,806 | 284,452 | ||||||
Luxembourg 1.1% | ||||||||
| ||||||||
ArcelorMittal SA | 45,760 | 1,338,468 | ||||||
Eurofins Scientific SE | 12,610 | 1,168,565 | ||||||
|
| |||||||
2,507,033 | ||||||||
Malaysia 0.5% | ||||||||
| ||||||||
Petronas Chemicals Group Bhd | 435,600 | 1,021,365 | ||||||
Mexico 0.1% | ||||||||
| ||||||||
America Movil SAB de CV (Class L Stock) | 127,300 | 124,140 | ||||||
Netherlands 3.2% | ||||||||
| ||||||||
Aegon NV | 16,440 | 84,830 | ||||||
ASML Holding NV | 1,737 | 983,245 | ||||||
Koninklijke Ahold Delhaize NV | 54,020 | 1,587,070 | ||||||
Koninklijke KPN NV | 32,466 | 112,297 | ||||||
NN Group NV | 24,552 | 1,206,323 | ||||||
Randstad NV | 21,631 | 1,143,727 | ||||||
Shell PLC | 62,243 | 1,678,572 | ||||||
Wolters Kluwer NV | 2,552 | 257,886 | ||||||
|
| |||||||
7,053,950 | ||||||||
Nigeria 0.3% | ||||||||
| ||||||||
Airtel Africa PLC, 144A | 338,897 | 611,052 | ||||||
Norway 0.3% | ||||||||
| ||||||||
Equinor ASA | 19,915 | 675,430 |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 15 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Peru 0.0% | ||||||||
| ||||||||
Southern Copper Corp. | 1,400 | $ | 87,178 | |||||
Philippines 0.0% | ||||||||
| ||||||||
PLDT, Inc. | 2,645 | 93,177 | ||||||
Portugal 0.0% | ||||||||
| ||||||||
Sonae SGPS SA | 81,802 | 88,340 | ||||||
Qatar 0.7% | ||||||||
| ||||||||
Industries Qatar QSC | 304,106 | 1,571,274 | ||||||
Russia 0.0% | ||||||||
| ||||||||
Inter RAO UES PJSC^ | 13,660,000 | 19 | ||||||
LUKOIL PJSC^ | 14,283 | — | ||||||
Polyus PJSC^ | 1,450 | — | ||||||
Rosneft Oil Co. PJSC^ | 155,425 | — | ||||||
Sberbank of Russia PJSC^ | 366,709 | 1 | ||||||
|
| |||||||
20 | ||||||||
Saudi Arabia 0.4% | ||||||||
| ||||||||
Leejam Sports Co. JSC | 3,014 | 89,051 | ||||||
Riyad Bank | 7,940 | 86,115 | ||||||
SABIC Agri-Nutrients Co. | 17,462 | 758,345 | ||||||
|
| |||||||
933,511 | ||||||||
Singapore 1.2% | ||||||||
| ||||||||
DBS Group Holdings Ltd. | 77,100 | 1,871,678 | ||||||
STMicroelectronics NV | 15,760 | 581,732 | ||||||
United Overseas Bank Ltd. | 10,400 | 222,501 | ||||||
|
| |||||||
2,675,911 | ||||||||
South Africa 1.5% | ||||||||
| ||||||||
Anglo American PLC | 15,575 | 705,127 | ||||||
FirstRand Ltd. | 272,979 | 1,175,812 | ||||||
Impala Platinum Holdings Ltd. | 7,804 | 101,558 | ||||||
Sibanye Stillwater Ltd. | 370,432 | 1,295,747 | ||||||
|
| |||||||
3,278,244 | ||||||||
South Korea 5.2% | ||||||||
| ||||||||
BNK Financial Group, Inc. | 38,013 | 236,010 | ||||||
DB Insurance Co. Ltd. | 13,743 | 732,413 |
See Notes to Financial Statements.
16 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
South Korea (cont’d.) | ||||||||
| ||||||||
Hana Financial Group, Inc. | 39,518 | $ | 1,471,869 | |||||
KB Financial Group, Inc. | 29,982 | 1,378,729 | ||||||
Kia Corp. | 21,889 | 1,429,926 | ||||||
LG Innotek Co. Ltd. | 1,872 | 509,701 | ||||||
MegaStudyEdu Co. Ltd. | 17,016 | 1,280,118 | ||||||
POSCO Holdings, Inc. | 5,676 | 1,288,955 | ||||||
Samsung Electronics Co. Ltd. | 44,651 | 2,368,175 | ||||||
SK Hynix, Inc. | 8,400 | 730,769 | ||||||
Woori Financial Group, Inc. | 7,080 | 82,103 | ||||||
|
| |||||||
11,508,768 | ||||||||
Spain 0.8% | ||||||||
| ||||||||
Banco Santander SA | 153,232 | 448,391 | ||||||
Endesa SA | 45,884 | 961,593 | ||||||
Telefonica SA | 48,222 | 234,312 | ||||||
|
| |||||||
1,644,296 | ||||||||
Sweden 1.2% | ||||||||
| ||||||||
Ambea AB, 144A | 19,404 | 97,787 | ||||||
Atlas Copco AB (Class A Stock) | 7,672 | 346,958 | ||||||
Atlas Copco AB (Class B Stock) | 3,502 | 136,965 | ||||||
Investor AB (Class A Stock) | 4,642 | 97,121 | ||||||
Investor AB (Class B Stock) | 74,208 | 1,418,873 | ||||||
Inwido AB | 12,664 | 175,543 | ||||||
Sandvik AB | 4,401 | 83,488 | ||||||
Skanska AB (Class B Stock) | 3,820 | 72,873 | ||||||
SSAB AB (Class A Stock) | 12,660 | 80,704 | ||||||
Telefonaktiebolaget LM Ericsson (Class B Stock) | 25,650 | 204,621 | ||||||
|
| |||||||
2,714,933 | ||||||||
Switzerland 5.9% | ||||||||
| ||||||||
Bucher Industries AG | 1,040 | 376,066 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 1 | 118,412 | ||||||
Cie Financiere Richemont SA (Class A Stock) | 10,619 | 1,231,339 | ||||||
Kuehne + Nagel International AG | 4,945 | 1,385,585 | ||||||
Nestle SA | 13,850 | 1,783,125 | ||||||
Novartis AG | 19,332 | 1,708,827 | ||||||
Roche Holding AG | 9,012 | 3,337,769 | ||||||
Sensirion Holding AG, 144A* | 3,924 | 469,720 | ||||||
SFS Group AG | 632 | 79,155 |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 17 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Switzerland (cont’d.) | ||||||||
| ||||||||
UBS Group AG | 111,696 | $ | 1,889,040 | |||||
Zurich Insurance Group AG | 1,323 | 602,120 | ||||||
|
| |||||||
12,981,158 | ||||||||
Taiwan 4.0% | ||||||||
| ||||||||
Asustek Computer, Inc. | 108,000 | 1,295,878 | ||||||
Cathay Financial Holding Co. Ltd. | 72,000 | 150,700 | ||||||
Chunghwa Telecom Co. Ltd. | 25,000 | 110,750 | ||||||
Evergreen Marine Corp. Taiwan Ltd. | 248,000 | 1,188,769 | ||||||
Formosa Plastics Corp. | 34,000 | 120,261 | ||||||
Kindom Development Co. Ltd. | 159,000 | 186,153 | ||||||
Nan Ya Plastics Corp. | 42,000 | 122,421 | ||||||
Nan Ya Printed Circuit Board Corp. | 8,000 | 107,104 | ||||||
Novatek Microelectronics Corp. | 6,000 | 79,012 | ||||||
Taita Chemical Co. Ltd. | 190,600 | 197,813 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 227,000 | 4,089,672 | ||||||
Unimicron Technology Corp. | 12,000 | 84,072 | ||||||
United Microelectronics Corp. | 487,000 | 770,548 | ||||||
Vanguard International Semiconductor Corp. | 18,000 | 62,947 | ||||||
Wan Hai Lines Ltd. | 17,000 | 82,307 | ||||||
Yang Ming Marine Transport Corp.* | 21,000 | 87,717 | ||||||
|
| |||||||
8,736,124 | ||||||||
Thailand 0.6% | ||||||||
| ||||||||
Advanced Info Service PCL | 196,000 | 1,223,871 | ||||||
AP Thailand PCL | 432,400 | 148,621 | ||||||
|
| |||||||
1,372,492 | ||||||||
Turkey 1.0% | ||||||||
| ||||||||
Enerjisa Enerji A/S, 144A | 579,269 | 548,786 | ||||||
Ford Otomotiv Sanayi A/S | 5,069 | 101,800 | ||||||
Haci Omer Sabanci Holding A/S | 91,266 | 122,327 | ||||||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S (Class D Stock)* | 611,960 | 620,393 | ||||||
KOC Holding A/S | 39,380 | 105,825 | ||||||
Koza Anadolu Metal Madencilik Isletmeleri A/S* | 341,539 | 718,833 | ||||||
|
| |||||||
2,217,964 | ||||||||
Ukraine 0.3% | ||||||||
| ||||||||
Ferrexpo PLC | 278,912 | 583,210 |
See Notes to Financial Statements.
18 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
United Arab Emirates 0.2% | ||||||||
| ||||||||
Abu Dhabi Commercial Bank PJSC | 84,140 | $ | 232,829 | |||||
Aldar Properties PJSC | 99,225 | 152,083 | ||||||
|
| |||||||
384,912 | ||||||||
United Kingdom 6.2% | ||||||||
| ||||||||
3i Group PLC | 77,042 | 1,268,686 | ||||||
AstraZeneca PLC | 2,242 | 296,400 | ||||||
Barclays PLC | 665,522 | 1,222,995 | ||||||
British American Tobacco PLC | 54,329 | 2,275,891 | ||||||
CNH Industrial NV | 9,052 | 129,107 | ||||||
Dunelm Group PLC | 29,789 | 369,456 | ||||||
Greggs PLC | 6,838 | 198,637 | ||||||
Halfords Group PLC | 60,592 | 168,071 | ||||||
Howden Joinery Group PLC | 43,381 | 407,748 | ||||||
Imperial Brands PLC | 62,078 | 1,286,069 | ||||||
JD Sports Fashion PLC | 93,227 | 154,355 | ||||||
Lloyds Banking Group PLC | 661,575 | 376,167 | ||||||
Morgan Sindall Group PLC | 5,863 | 155,126 | ||||||
NatWest Group PLC | 447,559 | 1,197,843 | ||||||
Next PLC | 1,288 | 96,872 | ||||||
Safestore Holdings PLC, REIT | 32,233 | 492,721 | ||||||
SSE PLC | 9,243 | 215,218 | ||||||
Tesco PLC | 217,242 | 740,159 | ||||||
Unilever PLC | 30,921 | 1,438,304 | ||||||
WPP PLC | 94,772 | 1,183,592 | ||||||
|
| |||||||
13,673,417 | ||||||||
United States 2.4% | ||||||||
| ||||||||
Ferguson PLC | 11,745 | 1,482,586 | ||||||
GlaxoSmithKline PLC | 102,066 | 2,305,490 | ||||||
JBS SA | 195,200 | 1,496,391 | ||||||
|
| |||||||
5,284,467 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(cost $208,798,187) | 209,588,951 | |||||||
|
| |||||||
EXCHANGE-TRADED FUND 0.9% | ||||||||
United States | ||||||||
| ||||||||
iShares MSCI EAFE ETF | 27,900 | 1,915,056 | ||||||
|
|
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 19 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||||||||||
PREFERRED STOCKS 1.6% | ||||||||||||||||
Brazil 1.3% | ||||||||||||||||
| ||||||||||||||||
Braskem SA (PRFC A) | 11,000 | $ | 89,710 | |||||||||||||
Cia Energetica de Minas Gerais (PRFC) | 266,900 | 812,477 | ||||||||||||||
Cia Paranaense de Energia (PRFC B) | 232,000 | 348,660 | ||||||||||||||
Petroleo Brasileiro SA (PRFC) | 266,700 | 1,644,775 | ||||||||||||||
|
| |||||||||||||||
2,895,622 | ||||||||||||||||
Germany 0.1% | ||||||||||||||||
| ||||||||||||||||
Sartorius AG (PRFC) | 237 | 89,065 | ||||||||||||||
Volkswagen AG (PRFC) | 1,647 | 254,292 | ||||||||||||||
|
| |||||||||||||||
343,357 | ||||||||||||||||
South Korea 0.2% | ||||||||||||||||
| ||||||||||||||||
Samsung Electronics Co. Ltd. (PRFC) | 7,571 | 351,415 | ||||||||||||||
|
| |||||||||||||||
TOTAL PREFERRED STOCKS | ||||||||||||||||
(cost $2,845,134) | 3,590,394 | |||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||||||||||
(cost $213,867,784) | 215,094,401 | |||||||||||||||
|
| |||||||||||||||
SHORT-TERM INVESTMENTS 1.6% | ||||||||||||||||
AFFILIATED MUTUAL FUND 0.2% | ||||||||||||||||
PGIM Institutional Money Market Fund | 499,797 | 499,397 | ||||||||||||||
|
| |||||||||||||||
Interest | Maturity | Principal Amount (000)# | ||||||||||||||
U.S. TREASURY OBLIGATION(k)(n) 0.2% | ||||||||||||||||
U.S. Treasury Bills | 0.447% | 06/16/22 | 570 | 569,682 | ||||||||||||
|
|
See Notes to Financial Statements.
20 |
Description | Shares | Value | ||||||
UNAFFILIATED FUND 1.2% | ||||||||
Dreyfus Government Cash Management (Institutional Shares) | 2,563,016 | $ | 2,563,016 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(cost $3,631,969) | 3,632,095 | |||||||
|
| |||||||
TOTAL INVESTMENTS 99.3% | ||||||||
(cost $217,499,753) | 218,726,496 | |||||||
Other assets in excess of liabilities(z) 0.7% | 1,517,509 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 220,244,005 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
USD—US Dollar
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
ADR—American Depositary Receipt
EAFE—Europe, Australasia, Far East
ETF—Exchange-Traded Fund
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. |
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $20 and 0.0% of net assets. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $450,993; cash collateral of $498,933 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
(n) | Rate shown reflects yield to maturity at purchased date. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 21 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Futures contracts outstanding at April 30, 2022:
Number of Contracts | Type | Expiration | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||
Long Positions: | ||||||||||||||
35 | Mini MSCI EAFE Index | Jun. 2022 | $3,494,050 | $ (95,654 | ) | |||||||||
43 | Mini MSCI Emerging Markets Index | Jun. 2022 | 2,273,410 | (5,574 | ) | |||||||||
|
| |||||||||||||
$(101,228 | ) | |||||||||||||
|
|
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 | ||
Goldman Sachs & Co. LLC | $— | $569,682 | ||
|
|
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, 2022 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Common Stocks | ||||||||||||
Australia | $ | — | $ | 10,632,873 | $— | |||||||
Austria | — | 1,256,241 | — | |||||||||
Belgium | — | 203,747 | — | |||||||||
Brazil | 2,503,690 | — | — | |||||||||
Canada | 18,049,096 | — | — | |||||||||
Chile | 177,330 | — | — | |||||||||
China | 646,350 | 22,358,621 | — | |||||||||
Denmark | — | 3,310,436 | — | |||||||||
Finland | — | 2,799,168 | — | |||||||||
France | — | 13,815,273 | — | |||||||||
Georgia | — | 103,264 | — |
See Notes to Financial Statements.
22 |
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Long-Term Investments (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Germany | $ | — | $ | 8,061,799 | $— | |||||||
Greece | — | 98,922 | — | |||||||||
Hong Kong | — | 3,676,935 | — | |||||||||
India | — | 7,770,968 | — | |||||||||
Indonesia | — | 1,763,091 | — | |||||||||
Ireland | — | 326,881 | — | |||||||||
Israel | — | 1,971,063 | — | |||||||||
Italy | — | 2,562,422 | — | |||||||||
Japan | — | 25,393,963 | — | |||||||||
Kuwait | — | 284,452 | — | |||||||||
Luxembourg | — | 2,507,033 | — | |||||||||
Malaysia | — | 1,021,365 | — | |||||||||
Mexico | 124,140 | — | — | |||||||||
Netherlands | — | 7,053,950 | — | |||||||||
Nigeria | — | 611,052 | — | |||||||||
Norway | — | 675,430 | — | |||||||||
Peru | 87,178 | — | — | |||||||||
Philippines | — | 93,177 | — | |||||||||
Portugal | — | 88,340 | — | |||||||||
Qatar | — | 1,571,274 | — | |||||||||
Russia | — | — | 20 | |||||||||
Saudi Arabia | — | 933,511 | — | |||||||||
Singapore | — | 2,675,911 | — | |||||||||
South Africa | — | 3,278,244 | — | |||||||||
South Korea | — | 11,508,768 | — | |||||||||
Spain | — | 1,644,296 | — | |||||||||
Sweden | — | 2,714,933 | — | |||||||||
Switzerland | — | 12,981,158 | — | |||||||||
Taiwan | — | 8,736,124 | — | |||||||||
Thailand | — | 1,372,492 | — | |||||||||
Turkey | — | 2,217,964 | — | |||||||||
Ukraine | — | 583,210 | — | |||||||||
United Arab Emirates | — | 384,912 | — | |||||||||
United Kingdom | — | 13,673,417 | — | |||||||||
United States | 1,496,391 | 3,788,076 | — | |||||||||
Exchange-Traded Fund | ||||||||||||
United States | 1,915,056 | — | — | |||||||||
Preferred Stocks | ||||||||||||
Brazil | 2,895,622 | — | — | |||||||||
Germany | — | 343,357 | — | |||||||||
South Korea | — | 351,415 | — | |||||||||
Short-Term Investments | ||||||||||||
Affiliated Mutual Fund | 499,397 | — | — |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 23 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Level 1 | Level 2 | Level 3 | ||||||||
Investments in Securities (continued) | ||||||||||
Assets (continued) | ||||||||||
Short-Term Investments (continued) | ||||||||||
U.S. Treasury Obligation. | $ | — | $ | 569,682 | $— | |||||
Unaffiliated Fund | 2,563,016 | — | — | |||||||
|
|
|
|
| ||||||
Total | $ | 30,957,266 | $ | 187,769,210 | $20 | |||||
|
|
|
|
| ||||||
Other Financial Instruments* | ||||||||||
Liabilities | ||||||||||
Futures Contracts | $ | (101,228 | ) | $ | — | $— | ||||
|
|
|
|
|
* | 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, 2022 were as follows:
Banks | 11.6 | % | ||
Pharmaceuticals | 8.0 | |||
Oil, Gas & Consumable Fuels | 6.7 | |||
Metals & Mining | 5.8 | |||
Insurance | 3.9 | |||
Semiconductors & Semiconductor Equipment | 3.7 | |||
Automobiles | 3.1 | |||
Technology Hardware, Storage & Peripherals | 3.1 | |||
Trading Companies & Distributors | 2.9 | |||
Food Products | 2.8 | |||
Tobacco | 2.6 | |||
Textiles, Apparel & Luxury Goods | 2.6 | |||
Food & Staples Retailing | 2.4 | |||
Equity Real Estate Investment Trusts (REITs) | 2.4 | |||
Electric Utilities | 2.3 | |||
Marine | 2.2 | |||
Capital Markets | 2.1 | |||
Chemicals | 2.1 | |||
Industrial Conglomerates | 1.9 | |||
IT Services | 1.9 | |||
Specialty Retail | 1.9 | |||
Media | 1.6 | |||
Personal Products | 1.5 | |||
Wireless Telecommunication Services | 1.2 | |||
Unaffiliated Fund | 1.2 |
Diversified Financial Services | 1.1 | % | ||
Paper & Forest Products | 1.1 | |||
Multi-Utilities | 1.1 | |||
Professional Services | 1.0 | |||
Building Products | 1.0 | |||
Diversified Telecommunication Services | 1.0 | |||
Auto Components | 0.9 | |||
Exchange-Traded Fund | 0.9 | |||
Diversified Consumer Services | 0.8 | |||
Entertainment | 0.7 | |||
Communications Equipment | 0.7 | |||
Health Care Providers & Services | 0.7 | |||
Electronic Equipment, Instruments & Components | 0.6 | |||
Interactive Media & Services | 0.6 | |||
Machinery | 0.6 | |||
Life Sciences Tools & Services | 0.5 | |||
Internet & Direct Marketing Retail | 0.5 | |||
Leisure Products | 0.5 | |||
Software | 0.5 | |||
Construction & Engineering | 0.4 | |||
Air Freight & Logistics | 0.4 | |||
Hotels, Restaurants & Leisure | 0.4 | |||
Thrifts & Mortgage Finance | 0.3 | |||
Real Estate Management & Development | 0.3 | |||
U.S. Treasury Obligation | 0.2 |
See Notes to Financial Statements.
24 |
Industry Classification (continued):
Affiliated Mutual Fund (0.2% represents investments purchased with collateral from securities on loan) | 0.2 | % | ||
Water Utilities | 0.2 | |||
Independent Power & Renewable Electricity Producers | 0.2 | |||
Transportation Infrastructure | 0.2 | |||
Multiline Retail | 0.1 | |||
Health Care Equipment & Supplies | 0.1 | |||
Gas Utilities | 0.0 | * |
Commercial Services & Supplies | 0.0 | *% | ||
Aerospace & Defense | 0.0 | * | ||
|
| |||
99.3 | ||||
Other assets in excess of liabilities | 0.7 | |||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05% |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2022 as presented in the Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||||
Derivatives not accounted for as | 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 | $101,228 | * | |||||||||
|
|
|
|
* | 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, 2022 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as hedging | Futures | |||
Equity contracts | $ | (717,652 | ) | |
|
|
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 25 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||
Derivatives not accounted for | Futures | |||
Equity contracts | $ | (19,683 | ) | |
|
|
For the six months ended April 30, 2022, the Fund’s average volume of derivative activities is as follows:
Derivative Contract Type | Average Volume of Derivative Activities* | |||
Futures Contracts - Long Positions (1) | $ | 5,509,287 |
* | Average volume is based on average quarter end balances as noted for the six months ended April 30, 2022. |
(1) | Notional Amount in USD. |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right 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 | $450,993 | $(450,993) | $— |
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
26 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Assets | |||||||||||||||
Investments at value, including securities on loan of $450,993: | |||||||||||||||
Unaffiliated investments (cost $217,000,475) | $ | 218,227,099 | |||||||||||||
Affiliated investments (cost $499,278) | 499,397 | ||||||||||||||
Foreign currency, at value (cost $1,398,501) | 1,383,111 | ||||||||||||||
Receivable for investments sold | 12,632,430 | ||||||||||||||
Dividends and interest receivable | 842,988 | ||||||||||||||
Tax reclaim receivable | 805,624 | ||||||||||||||
Receivable for Fund shares sold | 376,455 | ||||||||||||||
Prepaid expenses and other assets | 55,029 | ||||||||||||||
|
| ||||||||||||||
Total Assets | 234,822,133 | ||||||||||||||
|
| ||||||||||||||
Liabilities | |||||||||||||||
Payable for investments purchased | 12,807,508 | ||||||||||||||
Payable for Fund shares purchased | 825,760 | ||||||||||||||
Payable to broker for collateral for securities on loan | 498,933 | ||||||||||||||
Management fee payable | 115,946 | ||||||||||||||
Foreign capital gains tax liability accrued | 93,546 | ||||||||||||||
Affiliated transfer agent fee payable | 89,463 | ||||||||||||||
Accrued expenses and other liabilities | 72,999 | ||||||||||||||
Distribution fee payable | 39,846 | ||||||||||||||
Due to broker—variation margin futures | 32,931 | ||||||||||||||
Directors’ fees payable | 1,196 | ||||||||||||||
|
| ||||||||||||||
Total Liabilities | 14,578,128 | ||||||||||||||
|
| ||||||||||||||
Net Assets | $ | 220,244,005 | |||||||||||||
|
| ||||||||||||||
Net assets were comprised of: | |||||||||||||||
Common stock, at par | $ | 322 | |||||||||||||
Paid-in capital in excess of par | 220,552,901 | ||||||||||||||
Total distributable earnings (loss) | (309,218 | ) | |||||||||||||
|
| ||||||||||||||
Net assets, April 30, 2022 | $ | 220,244,005 | |||||||||||||
|
|
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 27 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Class A | ||||||||||
Net asset value and redemption price per share, | $ | 6.82 | ||||||||
Maximum sales charge (5.50% of offering price) | 0.40 | |||||||||
|
| |||||||||
Maximum offering price to public | $ | 7.22 | ||||||||
|
| |||||||||
Class C | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 6.45 | ||||||||
|
| |||||||||
Class Z | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 6.88 | ||||||||
|
| |||||||||
Class R6 | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 6.89 | ||||||||
|
|
See Notes to Financial Statements.
28 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
Net Investment Income (Loss) | ||||||||||
Income | ||||||||||
Unaffiliated dividend income (net of $477,977 foreign withholding tax) | $ | 3,811,818 | ||||||||
Income from securities lending, net (including affiliated income of $929) | 8,175 | |||||||||
Affiliated dividend income | 922 | |||||||||
Interest income | 403 | |||||||||
|
| |||||||||
Total income | 3,821,318 | |||||||||
|
| |||||||||
Expenses | ||||||||||
Management fee | 906,162 | |||||||||
Distribution fee(a) | 258,370 | |||||||||
Transfer agent’s fees and expenses (including affiliated expense of $165,376)(a) | 291,764 | |||||||||
Custodian and accounting fees | 80,190 | |||||||||
Registration fees(a) | 26,819 | |||||||||
Shareholders’ reports | 20,075 | |||||||||
Audit fee | 15,174 | |||||||||
Legal fees and expenses | 10,750 | |||||||||
Directors’ fees | 6,802 | |||||||||
Miscellaneous | 35,344 | |||||||||
|
| |||||||||
Total expenses | 1,651,450 | |||||||||
Less: Fee waiver and/or expense reimbursement(a) | (140,413 | ) | ||||||||
|
| |||||||||
Net expenses | 1,511,037 | |||||||||
|
| |||||||||
Net investment income (loss) | 2,310,281 | |||||||||
|
| |||||||||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||||||||
Net realized gain (loss) on: | ||||||||||
Investment transactions (including affiliated of $(565)) (net of foreign capital gains taxes $(29,429)) | (291,337 | ) | ||||||||
Futures transactions | (717,652 | ) | ||||||||
Foreign currency transactions | (129,433 | ) | ||||||||
|
| |||||||||
(1,138,422 | ) | |||||||||
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||
Investments (including affiliated of $119) (net of change in foreign capital gains taxes $94,193) | (29,284,892 | ) | ||||||||
Futures | (19,683 | ) | ||||||||
Foreign currencies | (113,447 | ) | ||||||||
|
| |||||||||
(29,418,022 | ) | |||||||||
|
| |||||||||
Net gain (loss) on investment and foreign currency transactions | (30,556,444 | ) | ||||||||
|
| |||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (28,246,163 | ) | |||||||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||||||
Distribution fee | 247,325 | 11,045 | — | — | ||||||||||||||||
Transfer agent’s fees and expenses | 273,242 | 4,368 | 13,191 | 963 | ||||||||||||||||
Registration fees | 8,764 | 5,400 | 5,908 | 6,747 | ||||||||||||||||
Fee waiver and/or expense reimbursement | (90,749 | ) | (1,216 | ) | (9,019 | ) | (39,429 | ) |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 29 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 2,310,281 | $ | 5,322,646 | ||||||
Net realized gain (loss) on investment and foreign currency transactions | (1,138,422 | ) | 30,688,248 | |||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (29,418,022 | ) | 16,233,145 | |||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | (28,246,163 | ) | 52,244,039 | |||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class A | (17,710,432 | ) | (2,396,047 | ) | ||||||
Class C | (215,704 | ) | (9,676 | ) | ||||||
Class Z | (1,681,493 | ) | (272,737 | ) | ||||||
Class R6 | (6,297,350 | ) | (439,796 | ) | ||||||
|
|
|
| |||||||
(25,904,979 | ) | (3,118,256 | ) | |||||||
|
|
|
| |||||||
Fund share transactions (Net of share conversions) | ||||||||||
Net proceeds from shares sold | 14,522,346 | 61,325,609 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 25,597,840 | 3,075,128 | ||||||||
Cost of shares purchased | (20,658,586 | ) | (40,318,009 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | 19,461,600 | 24,082,728 | ||||||||
|
|
|
| |||||||
Total increase (decrease) | (34,689,542 | ) | 73,208,511 | |||||||
Net Assets: | ||||||||||
Beginning of period | 254,933,547 | 181,725,036 | ||||||||
|
|
|
| |||||||
End of period | $ | 220,244,005 | $ | 254,933,547 | ||||||
|
|
|
|
See Notes to Financial Statements.
30 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.59 | $6.74 | $7.19 | $6.96 | $7.95 | $6.48 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.18 | 0.11 | 0.15 | 0.16 | 0.11 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.97 | ) | 1.78 | (0.39 | ) | 0.28 | (1.00 | ) | 1.49 | |||||||||||||||||||||||
Total from investment operations | (0.90 | ) | 1.96 | (0.28 | ) | 0.43 | (0.84 | ) | 1.60 | |||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.24 | ) | (0.11 | ) | (0.17 | ) | (0.17 | ) | (0.15 | ) | (0.13 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.63 | ) | - | - | (0.03 | ) | - | - | ||||||||||||||||||||||||
Total dividends and distributions | (0.87 | ) | (0.11 | ) | (0.17 | ) | (0.20 | ) | (0.15 | ) | (0.13 | ) | ||||||||||||||||||||
Net asset value, end of period | $6.82 | $8.59 | $6.74 | $7.19 | $6.96 | $7.95 | ||||||||||||||||||||||||||
Total Return(b): | (11.33 | )% | 29.28 | % | (4.07 | )% | 6.53 | % | (10.81 | )% | 25.17 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $147,668 | $176,479 | $147,445 | $173,103 | $171,326 | $207,626 | ||||||||||||||||||||||||||
Average net assets (000) | $166,250 | $176,751 | $156,952 | $172,031 | $200,255 | $192,517 | ||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.42 | %(e) | 1.43 | % | 1.47 | % | 1.48 | % | 1.34 | % | 1.58 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.53 | %(e) | 1.55 | % | 1.64 | % | 1.62 | % | 1.47 | % | 1.59 | % | ||||||||||||||||||||
Net investment income (loss) | 1.74 | %(e) | 2.12 | % | 1.58 | % | 2.19 | % | 2.08 | % | 1.62 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 52 | % | 104 | % | 128 | % | 94 | % | 114 | % | 105 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Fund invests. |
(d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 31 |
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.13 | $6.38 | $6.86 | $6.64 | $7.60 | $6.20 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.02 | 0.07 | 0.02 | 0.07 | 0.10 | 0.06 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.92 | ) | 1.71 | (0.38 | ) | 0.30 | (0.97 | ) | 1.43 | |||||||||||||||||||||||
Total from investment operations | (0.90 | ) | 1.78 | (0.36 | ) | 0.37 | (0.87 | ) | 1.49 | |||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.15 | ) | (0.03 | ) | (0.12 | ) | (0.12 | ) | (0.09 | ) | (0.09 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.63 | ) | - | - | (0.03 | ) | - | - | ||||||||||||||||||||||||
Total dividends and distributions | (0.78 | ) | (0.03 | ) | (0.12 | ) | (0.15 | ) | (0.09 | ) | (0.09 | ) | ||||||||||||||||||||
Net asset value, end of period | $6.45 | $8.13 | $6.38 | $6.86 | $6.64 | $7.60 | ||||||||||||||||||||||||||
Total Return(b): | (11.92 | )% | 27.89 | % | (5.42 | )% | 5.77 | % | (11.52 | )% | 24.33 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,953 | $2,335 | $2,381 | $2,928 | $12,530 | $16,661 | ||||||||||||||||||||||||||
Average net assets (000) | $2,227 | $2,444 | $2,640 | $7,163 | $15,626 | $15,736 | ||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.66 | %(e) | 2.61 | % | 2.81 | % | 2.25 | % | 2.10 | % | 2.32 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.77 | %(e) | 2.73 | % | 2.98 | % | 2.39 | % | 2.23 | % | 2.33 | % | ||||||||||||||||||||
Net investment income (loss) | 0.49 | %(e) | 0.84 | % | 0.24 | % | 1.09 | % | 1.32 | % | 0.86 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 52 | % | 104 | % | 128 | % | 94 | % | 114 | % | 105 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Fund invests. |
(d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
32 |
Class Z Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.68 | $6.81 | $7.26 | $7.02 | $8.02 | $6.54 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.22 | 0.13 | 0.18 | 0.19 | 0.11 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.98 | ) | 1.79 | (0.37 | ) | 0.29 | (1.02 | ) | 1.52 | |||||||||||||||||||||||
Total from investment operations | (0.89 | ) | 2.01 | (0.24 | ) | 0.47 | (0.83 | ) | 1.63 | |||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.28 | ) | (0.14 | ) | (0.21 | ) | (0.20 | ) | (0.17 | ) | (0.15 | ) | ||||||||||||||||||||
Distributions from net realized gains | (0.63 | ) | - | - | (0.03 | ) | - | - | ||||||||||||||||||||||||
Total dividends and distributions | (0.91 | ) | (0.14 | ) | (0.21 | ) | (0.23 | ) | (0.17 | ) | (0.15 | ) | ||||||||||||||||||||
Net asset value, end of period | $6.88 | $8.68 | $6.81 | $7.26 | $7.02 | $8.02 | ||||||||||||||||||||||||||
Total Return(b): | (11.28 | )% | 29.85 | % | (3.61 | )% | 7.05 | % | (10.59 | )% | 25.46 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $16,692 | $16,562 | $13,062 | $14,753 | $13,901 | $17,344 | ||||||||||||||||||||||||||
Average net assets (000) | $16,512 | $17,429 | $12,955 | $13,815 | $17,055 | $21,567 | ||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.01 | %(e) | 1.01 | % | 1.09 | % | 1.03 | % | 1.00 | % | 1.31 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.12 | %(e) | 1.13 | % | 1.26 | % | 1.17 | % | 1.13 | % | 1.32 | % | ||||||||||||||||||||
Net investment income (loss) | 2.23 | %(e) | 2.60 | % | 1.97 | % | 2.58 | % | 2.44 | % | 1.57 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 52 | % | 104 | % | 128 | % | 94 | % | 114 | % | 105 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Fund invests. |
(d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Quant Solutions International Equity Fund | 33 |
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | December 28, 2016(a) 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(b): |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.70 | $6.83 | $7.27 | $7.03 | $8.04 | $6.32 | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.25 | 0.16 | 0.21 | 0.21 | 0.15 | ||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.97 | ) | 1.78 | (0.38 | ) | 0.27 | (1.03 | ) | 1.57 | |||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.88 | ) | 2.03 | (0.22 | ) | 0.48 | (0.82 | ) | 1.72 | |||||||||||||||||||||||||||||||||||||||||
Less Dividends and Distributions: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.16 | ) | (0.22 | ) | (0.21 | ) | (0.19 | ) | - | |||||||||||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.63 | ) | - | - | (0.03 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total dividends and distributions | (0.93 | ) | (0.16 | ) | (0.22 | ) | (0.24 | ) | (0.19 | ) | - | |||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $6.89 | $8.70 | $6.83 | $7.27 | $7.03 | $8.04 | ||||||||||||||||||||||||||||||||||||||||||||
Total Return(c): | (11.05 | )% | 29.96 | % | (3.26 | )% | 7.33 | % | (10.43 | )% | 27.22 | % | ||||||||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $53,931 | $59,558 | $18,837 | $5,487 | $36,552 | $39,379 | ||||||||||||||||||||||||||||||||||||||||||||
Average net assets (000) | $58,657 | $37,941 | $18,273 | $23,216 | $38,947 | $37,891 | ||||||||||||||||||||||||||||||||||||||||||||
Ratios to average net assets(d)(e): |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.78 | %(f) | 0.78 | % | 0.78 | % | 0.78 | % | 0.78 | % | 0.95 | %(f) | ||||||||||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.92 | %(f) | 0.94 | % | 1.05 | % | 0.95 | % | 0.95 | % | 0.99 | %(f) | ||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 2.38 | %(f) | 2.92 | % | 2.33 | % | 3.06 | % | 2.61 | % | 2.45 | %(f) | ||||||||||||||||||||||||||||||||||||||
Portfolio turnover rate(g) | 52 | % | 104 | % | 128 | % | 94 | % | 114 | % | 105 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying portfolios in which the Fund invests. |
(e) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
34 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Quant Solutions International Equity Fund (formerly known as PGIM QMA International Equity Fund) (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek long-term growth of capital.
2. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (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. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
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
PGIM Quant Solutions International Equity Fund | 35 |
Notes to Financial Statements (unaudited) (continued)
of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the 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 funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
36 |
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
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
PGIM Quant Solutions International Equity Fund | 37 |
Notes to Financial Statements (unaudited) (continued)
the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
38 |
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal 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.
The Fund is subject to foreign income taxes imposed by certain countries in which it invests. Additionally, capital gains realized upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. All taxes are computed in accordance with the applicable foreign tax law, and, to the extent permitted, capital losses are used to offset capital gains. Taxes attributable to income are accrued by the Fund as a reduction of income. Current and deferred tax expense attributable to capital gains is reflected as a component of realized or change in unrealized gain/loss on securities in the accompanying financial statements. To the extent that the Fund has country specific capital loss carryforwards, such carryforwards are applied against net unrealized gains when determining the deferred tax liability. Any deferred tax liability incurred by the Fund is included in either Other liabilities or Deferred tax liability on the accompanying Statement of Assets and Liabilities.
PGIM Quant Solutions International Equity Fund | 39 |
Notes to Financial Statements (unaudited) (continued)
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |
Net Investment Income | Annually | |
Short-Term Capital Gains | Annually | |
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with PGIM Quantitative Solutions LLC (“PGIM Quantitative Solutions” or the “subadviser”). The Manager pays for the services of PGIM Quantitative Solutions.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |||
0.75% of average daily net assets up to $2 billion; | 0.75% | |||
0.70% of average daily net assets from $2 billion to $5 billion; | ||||
0.69% of average daily net assets over $5 billion |
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual
40 |
waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager 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. The expense limitations attributable to each class are as follows:
Class | Expense Limitations | |||
A | — | % | ||
C | — | |||
Z | — | |||
R6 | 0.78 |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. The distribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | ||||||
A | 0.30 | % | 0.30 | % | ||||
C | 1.00 | 1.00 | ||||||
Z | N/A | N/A | ||||||
R6 | N/A | N/A |
For the reporting period ended April 30, 2022, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||||||
A | $ | 18,348 | $ | — |
PGIM Quant Solutions International Equity Fund | 41 |
Notes to Financial Statements (unaudited) (continued)
Class | FESL | CDSC | ||||||
C | $ | — | $ | 145 |
PGIM Investments, PIMS and PGIM Quantitative Solutions are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. 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 fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
Cost of Purchases | Proceeds from Sales | |
$122,678,560 | $126,302,924 |
42 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2022, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) | ||||||||||||||||||||||||||||||
$1,978,232 | $ | 14,049,552 | $ | 16,027,784 | $ | — | $ | — | $ | — | — | $ | 922 | |||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) | ||||||||||||||||||||||||||||||
691,865 | 23,885,186 | 24,077,208 | 119 | (565 | ) | 499,397 | 499,797 | 929 | (2) | |||||||||||||||||||||
$2,670,097 | $ | 37,934,738 | $ | 40,104,992 | $ | 119 | $ | (565 | ) | $ | 499,397 | $ | 1,851 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Depreciation | |||||||||
$219,134,024 | $22,753,381 | $(23,262,137) | $(508,756) |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase
PGIM Quant Solutions International Equity Fund | 43 |
Notes to Financial Statements (unaudited) (continued)
Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
The RIC is authorized to issue 10,225,000,000 shares of common stock, $0.00001 par value per share, 700,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
Class | Number of Shares | |
A | 100,000,000 | |
B | 5,000,000 | |
C | 100,000,000 | |
Z | 180,000,000 | |
T | 135,000,000 | |
R6 | 180,000,000 |
The Fund currently does not have any Class B or Class T shares outstanding.
As of April 30, 2022, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||||||||
A | 30,972 | 0.1 | % | |||||||
Z | 69,861 | 2.9 | ||||||||
R6 | 4,168,073 | 53.3 |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||||||||
Affiliated | 1 | 13.0 | % | |||||||
Unaffiliated | 3 | 33.7 |
44 |
Transactions in shares of common stock were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 214,447 | $ | 1,696,767 | |||||
Shares issued in reinvestment of dividends and distributions | 2,336,663 | 17,408,142 | ||||||
Shares purchased | (1,414,869 | ) | (10,783,099 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 1,136,241 | 8,321,810 | ||||||
Shares issued upon conversion from other share class(es) | 19,716 | 154,693 | ||||||
Shares purchased upon conversion into other share class(es) | (44,446 | ) | (351,591 | ) | ||||
Net increase (decrease) in shares outstanding | 1,111,511 | $ | 8,124,912 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 522,326 | $ | 4,350,877 | |||||
Shares issued in reinvestment of dividends and distributions | 303,876 | 2,355,040 | ||||||
Shares purchased | (2,142,395 | ) | (17,663,059 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (1,316,193 | ) | (10,957,142 | ) | ||||
Shares issued upon conversion from other share class(es) | 76,135 | 638,374 | ||||||
Shares purchased upon conversion into other share class(es) | (83,956 | ) | (687,747 | ) | ||||
Net increase (decrease) in shares outstanding | (1,324,014 | ) | $ | (11,006,515 | ) | |||
Class C | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 28,626 | $ | 209,763 | |||||
Shares issued in reinvestment of dividends and distributions | 30,506 | 215,681 | ||||||
Shares purchased | (23,498 | ) | (166,964 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 35,634 | 258,480 | ||||||
Shares purchased upon conversion into other share class(es) | (20,121 | ) | (149,850 | ) | ||||
Net increase (decrease) in shares outstanding | 15,513 | $ | 108,630 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 63,864 | $ | 500,477 | |||||
Shares issued in reinvestment of dividends and distributions | 1,308 | 9,676 | ||||||
Shares purchased | (78,344 | ) | (603,675 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (13,172 | ) | (93,522 | ) | ||||
Shares purchased upon conversion into other share class(es) | (72,437 | ) | (578,256 | ) | ||||
Net increase (decrease) in shares outstanding | (85,609 | ) | $ | (671,778 | ) |
PGIM Quant Solutions International Equity Fund | 45 |
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||
Class Z | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 562,191 | $ | 4,059,534 | |||||
Shares issued in reinvestment of dividends and distributions | 223,258 | 1,676,667 | ||||||
Shares purchased | (306,115 | ) | (2,354,812 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 479,334 | 3,381,389 | ||||||
Shares issued upon conversion from other share class(es) | 38,836 | 312,181 | ||||||
Shares purchased upon conversion into other share class(es) | (672 | ) | (4,843 | ) | ||||
Net increase (decrease) in shares outstanding | 517,498 | $ | 3,688,727 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 775,378 | $ | 6,613,085 | |||||
Shares issued in reinvestment of dividends and distributions | 34,694 | 270,616 | ||||||
Shares purchased | (312,006 | ) | (2,648,533 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 498,066 | 4,235,168 | ||||||
Shares issued upon conversion from other share class(es) | 77,788 | 642,192 | ||||||
Shares purchased upon conversion into other share class(es) | (587,122 | ) | (5,149,861 | ) | ||||
Net increase (decrease) in shares outstanding | (11,268 | ) | $ | (272,501 | ) | |||
Class R6 | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 1,111,677 | $ | 8,556,282 | |||||
Shares issued in reinvestment of dividends and distributions | 838,529 | 6,297,350 | ||||||
Shares purchased | (972,846 | ) | (7,353,711 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 977,360 | 7,499,921 | ||||||
Shares issued upon conversion from other share class(es) | 5,180 | 39,410 | ||||||
Net increase (decrease) in shares outstanding | 982,540 | $ | 7,539,331 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 5,725,833 | $ | 49,861,170 | |||||
Shares issued in reinvestment of dividends and distributions | 56,384 | 439,796 | ||||||
Shares purchased | (2,282,912 | ) | (19,402,742 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 3,499,305 | 30,898,224 | ||||||
Shares issued upon conversion from other share class(es) | 584,743 | 5,135,298 | ||||||
Net increase (decrease) in shares outstanding | 4,084,048 | $ | 36,033,522 |
8. Borrowings
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a
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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 SCA.
SCA | ||||
Term of Commitment | 10/1/2021 – 9/29/2022 | |||
Total Commitment | $1,200,000,000 | |||
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 |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2022.
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Active Trading Risk: The Fund actively and frequently trades its portfolio securities. High portfolio turnover results in higher transaction costs, which can affect the Fund’s performance and have adverse tax consequences. In addition, high portfolio turnover may also mean that a proportionately greater amount of distributions to shareholders will be taxed as ordinary income rather than long-term capital gains compared to investment companies with lower portfolio turnover.
Core Style Risk: The Fund’s core investment style may subject the Fund to risks of both value and growth investing. The portion of the Fund’s portfolio that makes investments pursuant to a growth strategy may be subject to above-average fluctuations as a result of seeking higher than average capital growth. The portion of the Fund’s portfolio that makes investments pursuant to a value strategy may be subject to the risk that the market may not recognize a security’s intrinsic value for long periods of time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. If the Fund’s assessment of market
PGIM Quant Solutions International Equity Fund | 47 |
Notes to Financial Statements (unaudited) (continued)
conditions or a company’s value is inaccurate, the Fund could suffer losses or produce poor performance relative to other funds. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Therefore, both styles may over time go in and out of favor with the markets. At times when a style is out of favor, that portion of the portfolio may lag the other portion of the portfolio, which may cause the Fund to underperform the market in general, its benchmark and other mutual funds. Growth and value stocks have historically produced similar long-term results, though each category has periods when it outperforms the other.
Currency Risk: The Fund’s net asset value could decline as a result of changes in exchange rates, which could adversely affect the Fund’s investments in currencies, or in securities that trade in, and receive revenues related to, currencies, or in derivatives that provide exposure to currencies. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a
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sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
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.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Large 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
PGIM Quant Solutions International Equity Fund | 49 |
Notes to Financial Statements (unaudited) (continued)
investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: Actively managed mutual funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these techniques will produce the desired results. Additionally, the investments selected by the subadviser may underperform the markets in general, the Fund’s benchmark and other mutual funds with similar investment objectives.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with the market, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value
50 |
and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
PGIM Quant Solutions International Equity Fund | 51 |
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 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 Board.
At a meeting of the Board on March 1-3, 2022, 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 January 1, 2021 through December 31, 2021 (“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.
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∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Isabelle Sajous, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick E. McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse M. McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | PGIM Quantitative Solutions LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Quant Solutions International Equity Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter at sec.gov.
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Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM QUANT SOLUTIONS INTERNATIONAL EQUITY FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | PJRAX | PJRCX | PJIZX | PJRQX | ||||
CUSIP | 743969859 | 743969875 | 743969883 | 743969578 |
MF190E2
PGIM EMERGING MARKETS DEBT LOCAL
CURRENCY FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
Letter from the President | 3 | |||
Your Fund’s Performance | 4 | |||
Fees and Expenses | 7 | |||
Holdings and Financial Statements | 9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 Visit our website at pgim.com/investments
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Dear Shareholder:
We hope you find the semiannual report for the PGIM Emerging Markets Debt Local Currency Fund informative and useful. The report covers performance for the six-month period ended April 30, 2022.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Emerging Markets Debt Local Currency Fund
June 15, 2022
PGIM Emerging Markets Debt Local Currency Fund 3
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 4/30/22 (without sales charges) | Average Annual Total Returns as of 4/30/22 (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||
Class A | -11.14 | -16.43 | -1.64 | -1.65 | ||||
Class C | -11.56 | -15.16 | -1.80 | -2.04 | ||||
Class Z | -11.02 | -13.45 | -0.77 | -1.04 | ||||
Class R6 | -10.99 | -13.24 | -0.69 | -0.96 | ||||
JP Morgan Government Bond Index-Emerging Markets Global Diversified Index | ||||||||
-13.17 | -15.95 | -1.28 | -1.43 |
*Not annualized
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
4 Visit our website at pgim.com/investments
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 3.25% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $500,000 or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.25% | 1.00% | None | None |
Benchmark Definition
JP Morgan Government Bond Index-Emerging Markets Global Diversified Index—The JP Morgan Government Bond Index-Emerging Markets Global Diversified Index, an unmanaged index, is a comprehensive emerging markets debt benchmark that tracks local currency bonds issued by emerging market governments.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Emerging Markets Debt Local Currency Fund 5
Your Fund’s Performance (continued)
Distributions and Yields as of 4/30/22 | ||||||
Total Distributions Six Months ($) | SEC 30-Day Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||
Class A | 0.10 | 5.27 | 4.57 | |||
Class C | 0.08 | 4.68 | 0.77 | |||
Class Z | 0.11 | 5.88 | 5.35 | |||
Class R6 | 0.11 | 5.94 | 5.10 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investor experience is represented by the SEC 30-Day Subsidized Yield.
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
Credit Quality expressed as a percentage of total investments as of 4/30/22 (%) | ||||
AAA | 1.7 | |||
AA | 2.4 | |||
A | 30.9 | |||
BBB | 28.6 | |||
BB | 19.7 | |||
B | 3.3 | |||
CCC | 0.7 | |||
Not Rated | 1.7 | |||
Cash/Cash Equivalents | 11.0 | |||
Total | 100.0 |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
6 Visit our website at pgim.com/investments
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Emerging Markets Debt Local Currency Fund 7
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Emerging Markets Debt Local Currency Fund | Beginning Account Value November 1, 2021 | Ending Account Value April 30, 2022 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $ 888.60 | 1.13% | $5.29 | |||||
Hypothetical | $1,000.00 | $1,019.19 | 1.13% | $5.66 | ||||||
Class C | Actual | $1,000.00 | $ 884.40 | 1.88% | $8.78 | |||||
Hypothetical | $1,000.00 | $1,015.47 | 1.88% | $9.39 | ||||||
Class Z | Actual | $1,000.00 | $ 889.80 | 0.72% | $3.37 | |||||
Hypothetical | $1,000.00 | $1,021.22 | 0.72% | $3.61 | ||||||
Class R6 | Actual | $1,000.00 | $ 890.10 | 0.65% | $3.05 | |||||
Hypothetical | $1,000.00 | $1,021.57 | 0.65% | $3.26 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 Visit our website at pgim.com/investments
Schedule of Investments (unaudited)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 89.2% | ||||||||||||||||
CORPORATE BONDS 6.0% | ||||||||||||||||
Brazil 0.4% | ||||||||||||||||
JSM Global Sarl, | 4.750% | 10/20/30 | 200 | $ | 168,921 | |||||||||||
Jamaica 0.4% | ||||||||||||||||
Digicel Ltd., | 6.750 | 03/01/23 | 235 | 210,667 | ||||||||||||
Malaysia 0.4% | ||||||||||||||||
Gohl Capital Ltd., | 4.250 | 01/24/27 | 200 | 185,205 | ||||||||||||
Mexico 2.2% | ||||||||||||||||
America Movil SAB de CV, | 6.450 | 12/05/22 | MXN | 14,250 | 687,155 | |||||||||||
Petroleos Mexicanos, | ||||||||||||||||
Gtd. Notes | 5.350 | 02/12/28 | 40 | 35,542 | ||||||||||||
Gtd. Notes | 6.490 | 01/23/27 | 55 | 52,764 | ||||||||||||
Gtd. Notes | 6.500 | 03/13/27 | 80 | 76,653 | ||||||||||||
Gtd. Notes, MTN | 6.875 | 08/04/26 | 155 | 154,507 | ||||||||||||
|
| |||||||||||||||
1,006,621 | ||||||||||||||||
Russia 0.1% | ||||||||||||||||
Gazprom Capital OOO, | ||||||||||||||||
Gtd. Notes, Series BO03 | 7.150(cc) | 02/15/28 | RUB | 45,000 | 18,921 | |||||||||||
Gtd. Notes, Series BO05 | 8.900(cc) | 02/03/27 | RUB | 42,000 | 17,659 | |||||||||||
|
| |||||||||||||||
36,580 | ||||||||||||||||
South Africa 0.8% | ||||||||||||||||
Eskom Holdings SOC Ltd., | 6.750 | 08/06/23 | 200 | 195,311 | ||||||||||||
Sasol Financing USA LLC, | 5.875 | 03/27/24 | 200 | 199,636 | ||||||||||||
|
| |||||||||||||||
394,947 | ||||||||||||||||
Supranational Bank 1.7% | ||||||||||||||||
European Bank for Reconstruction & Development, | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 7.500 | 05/15/22 | IDR | 900,000 | 62,103 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.450 | 12/13/22 | IDR | 7,500,000 | 519,352 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 9
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Supranational Bank (cont’d.) | ||||||||||||||||
European Investment Bank, | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 12.576 | %(s) | 09/05/22 | TRY | 1,260 | $ | 77,336 | |||||||||
Sr. Unsec’d. Notes, EMTN | 3.000 | 05/24/24 | PLN | 600 | 125,344 | |||||||||||
|
| |||||||||||||||
784,135 | ||||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | 2,787,076 | |||||||||||||||
|
| |||||||||||||||
FOREIGN TREASURY OBLIGATION 0.5% | ||||||||||||||||
Brazil | ||||||||||||||||
Brazil Letras do Tesouro Nacional, | 6.144 | (s) | 01/01/24 | BRL | 1,318 | 218,613 | ||||||||||
|
| |||||||||||||||
SOVEREIGN BONDS 82.7% | ||||||||||||||||
Angola 0.5% | ||||||||||||||||
Angolan Government International Bond, | 9.500 | 11/12/25 | 200 | 212,981 | ||||||||||||
Argentina 0.2% | ||||||||||||||||
Argentine Republic Government International Bond, | 1.000 | 07/09/29 | 24 | 7,647 | ||||||||||||
Provincia de Buenos Aires, | 3.900 | (cc) | 09/01/37 | 249 | 103,785 | |||||||||||
|
| |||||||||||||||
111,432 | ||||||||||||||||
Brazil 3.5% | ||||||||||||||||
Brazil Minas SPE via State of Minas Gerais, | 5.333 | 02/15/28 | 141 | 143,024 | ||||||||||||
Brazil Notas do Tesouro Nacional, | ||||||||||||||||
Notes, Series NTNB | 6.000 | 08/15/30 | BRL | 1,831 | 382,593 | |||||||||||
Notes, Series NTNB | 6.000 | 05/15/35 | BRL | 511 | 106,916 | |||||||||||
Notes, Series NTNF | 10.000 | 01/01/25 | BRL | 3,843 | 739,775 | |||||||||||
Notes, Series NTNF | 10.000 | 01/01/27 | BRL | 1,214 | 228,520 | |||||||||||
Notes, Series NTNF | 10.000 | 01/01/31 | BRL | 200 | 35,925 | |||||||||||
Brazilian Government International Bond, | 8.500 | 01/05/24 | BRL | 54 | 10,281 | |||||||||||
|
| |||||||||||||||
1,647,034 |
See Notes to Financial Statements.
10
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Chile 1.8% | ||||||||||||||||
Bonos de la Tesoreria de la Republica en pesos, | ||||||||||||||||
Bonds | 5.000% | 03/01/35 | CLP | 115,000 | $ | 117,294 | ||||||||||
Bonds, 144A | 5.000 | 10/01/28 | CLP | 110,000 | 117,407 | |||||||||||
Bonds, Series 30YR | 6.000 | 01/01/43 | CLP | 135,000 | 148,602 | |||||||||||
Unsec’d. Notes, 144A | 2.300 | 10/01/28 | CLP | 175,000 | 159,278 | |||||||||||
Unsec’d. Notes, 144A | 2.800 | 10/01/33 | CLP | 50,000 | 41,103 | |||||||||||
Unsec’d. Notes, 144A | 4.700 | 09/01/30 | CLP | 250,000 | 256,721 | |||||||||||
|
| |||||||||||||||
840,405 | ||||||||||||||||
China 9.3% | ||||||||||||||||
China Government Bond, | ||||||||||||||||
Bonds, Series 1906 | 3.290 | 05/23/29 | CNH | 3,690 | 573,464 | |||||||||||
Bonds, Series 1910 | 3.860 | 07/22/49 | CNH | 680 | 110,950 | |||||||||||
Bonds, Series INBK | 1.990 | 04/09/25 | CNH | 6,500 | 965,205 | |||||||||||
Bonds, Series INBK | 2.680 | 05/21/30 | CNH | 1,270 | 188,139 | |||||||||||
Bonds, Series INBK | 2.850 | 06/04/27 | CNH | 5,650 | 857,005 | |||||||||||
Bonds, Series INBK | 3.010 | 05/13/28 | CNH | 3,620 | 551,618 | |||||||||||
Bonds, Series INBK | 3.270 | 11/19/30 | CNH | 2,890 | 449,406 | |||||||||||
Unsec’d. Notes, Series INBK | 3.030 | 03/11/26 | CNH | 2,500 | 382,656 | |||||||||||
Unsec’d. Notes, Series INBK | 3.810 | 09/14/50 | CNH | 1,570 | 254,684 | |||||||||||
|
| |||||||||||||||
4,333,127 | ||||||||||||||||
Colombia 3.9% | ||||||||||||||||
Colombian TES, | ||||||||||||||||
Bonds, Series B | 5.750 | 11/03/27 | COP | 250,000 | 52,079 | |||||||||||
Bonds, Series B | 6.000 | 04/28/28 | COP | 2,121,000 | 439,111 | |||||||||||
Bonds, Series B | 6.250 | 11/26/25 | COP | 557,300 | 126,787 | |||||||||||
Bonds, Series B | 7.000 | 06/30/32 | COP | 2,114,800 | 425,446 | |||||||||||
Bonds, Series B | 7.250 | 10/18/34 | COP | 777,800 | 153,796 | |||||||||||
Bonds, Series B | 7.250 | 10/26/50 | COP | 210,000 | 37,140 | |||||||||||
Bonds, Series B | 7.500 | 08/26/26 | COP | 1,150,900 | 267,915 | |||||||||||
Bonds, Series B | 7.750 | 09/18/30 | COP | 500,000 | 109,858 | |||||||||||
Bonds, Series G | 7.000 | 03/26/31 | COP | 759,800 | 156,192 | |||||||||||
Sr. Unsec’d. Notes | 3.750 | 06/16/49 | COP | 196,773 | 43,580 | |||||||||||
|
| |||||||||||||||
1,811,904 | ||||||||||||||||
Czech Republic 2.4% | ||||||||||||||||
Czech Republic Government Bond, | ||||||||||||||||
Bonds, Series 049 | 4.200 | 12/04/36 | CZK | 2,000 | 85,129 | |||||||||||
Bonds, Series 078 | 2.500 | 08/25/28 | CZK | 2,100 | 80,382 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 11
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Czech Republic (cont’d.) | ||||||||||||||||
Czech Republic Government Bond, (cont’d.) | ||||||||||||||||
Bonds, Series 094 | 0.950% | 05/15/30 | CZK | 8,230 | $ | 273,025 | ||||||||||
Bonds, Series 095 | 1.000 | 06/26/26 | CZK | 3,000 | 110,519 | |||||||||||
Bonds, Series 103 | 2.000 | 10/13/33 | CZK | 10,120 | 345,540 | |||||||||||
Bonds, Series 105 | 2.750 | 07/23/29 | CZK | 3,500 | 135,110 | |||||||||||
Bonds, Series 121 | 1.200 | 03/13/31 | CZK | 3,300 | 109,568 | |||||||||||
|
| |||||||||||||||
1,139,273 | ||||||||||||||||
Dominican Republic 0.3% | ||||||||||||||||
Dominican Republic International Bond, | 9.750 | 06/05/26 | DOP | 8,000 | 146,493 | |||||||||||
Gabon 0.4% | ||||||||||||||||
Gabon Government International Bond, | 6.950 | 06/16/25 | 200 | 198,421 | ||||||||||||
Hungary 3.2% | ||||||||||||||||
Hungary Government Bond, | ||||||||||||||||
Bonds, Series 25/B | 5.500 | 06/24/25 | HUF | 67,870 | 181,198 | |||||||||||
Bonds, Series 26/D | 2.750 | 12/22/26 | HUF | 171,150 | 395,851 | |||||||||||
Bonds, Series 26/E | 1.500 | 04/22/26 | HUF | 48,840 | 110,486 | |||||||||||
Bonds, Series 27/A | 3.000 | 10/27/27 | HUF | 42,680 | 97,507 | |||||||||||
Bonds, Series 28/A | 6.750 | 10/22/28 | HUF | 35,160 | 96,427 | |||||||||||
Bonds, Series 29/A | 2.000 | 05/23/29 | HUF | 128,070 | 259,424 | |||||||||||
Bonds, Series 32/G | 4.500 | 05/27/32 | HUF | 96,250 | 222,784 | |||||||||||
Bonds, Series 34/A | 2.250 | 06/22/34 | HUF | 24,810 | 43,606 | |||||||||||
Bonds, Series 38/A | 3.000 | 10/27/38 | HUF | 21,890 | 38,614 | |||||||||||
Bonds, Series 51/G | 4.000 | 04/28/51 | HUF | 29,330 | 52,888 | |||||||||||
|
| |||||||||||||||
1,498,785 | ||||||||||||||||
Indonesia 10.8% | ||||||||||||||||
Indonesia Treasury Bond, | ||||||||||||||||
Bonds, Series 056 | 8.375 | 09/15/26 | IDR | 6,596,000 | 489,153 | |||||||||||
Bonds, Series 059 | 7.000 | 05/15/27 | IDR | 7,065,000 | 499,123 | |||||||||||
Bonds, Series 064 | 6.125 | 05/15/28 | IDR | 2,400,000 | 160,795 | |||||||||||
Bonds, Series 065 | 6.625 | 05/15/33 | IDR | 3,200,000 | 213,174 | |||||||||||
Bonds, Series 068 | 8.375 | 03/15/34 | IDR | 6,268,000 | 470,549 | |||||||||||
Bonds, Series 070 | 8.375 | 03/15/24 | IDR | 1,410,000 | 102,592 | |||||||||||
Bonds, Series 071 | 9.000 | 03/15/29 | IDR | 3,640,000 | 280,343 | |||||||||||
Bonds, Series 072 | 8.250 | 05/15/36 | IDR | 3,816,000 | 282,568 |
See Notes to Financial Statements.
12
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Indonesia (cont’d.) | ||||||||||||||||
Indonesia Treasury Bond, (cont’d.) | ||||||||||||||||
Bonds, Series 073 | 8.750% | 05/15/31 | IDR | 4,940,000 | $ | 377,476 | ||||||||||
Bonds, Series 075 | 7.500 | 05/15/38 | IDR | 3,754,000 | 264,208 | |||||||||||
Bonds, Series 078 | 8.250 | 05/15/29 | IDR | 4,814,000 | 357,150 | |||||||||||
Bonds, Series 079 | 8.375 | 04/15/39 | IDR | 400,000 | 30,437 | |||||||||||
Bonds, Series 080 | 7.500 | 06/15/35 | IDR | 5,002,000 | 350,552 | |||||||||||
Bonds, Series 081 | 6.500 | 06/15/25 | IDR | 993,000 | 69,771 | |||||||||||
Bonds, Series 082 | 7.000 | 09/15/30 | IDR | 5,915,000 | 407,153 | |||||||||||
Bonds, Series 083 | 7.500 | 04/15/40 | IDR | 3,040,000 | 214,148 | |||||||||||
Bonds, Series 087 | 6.500 | 02/15/31 | IDR | 6,523,000 | 435,158 | |||||||||||
|
| |||||||||||||||
5,004,350 | ||||||||||||||||
Ivory Coast 0.2% | ||||||||||||||||
Ivory Coast Government International Bond, | 5.250 | 03/22/30 | EUR | 115 | 108,579 | |||||||||||
Malaysia 10.6% | ||||||||||||||||
1MDB Global Investments Ltd., | 4.400 | 03/09/23 | 1,000 | 974,511 | ||||||||||||
Malaysia Government Bond, | ||||||||||||||||
Bonds, Series 0115 | 3.955 | 09/15/25 | MYR | 1,650 | 381,385 | |||||||||||
Bonds, Series 0118 | 3.882 | 03/14/25 | MYR | 1,977 | 458,290 | |||||||||||
Bonds, Series 0120 | 4.065 | 06/15/50 | MYR | 660 | 130,211 | |||||||||||
Bonds, Series 0219 | 3.885 | 08/15/29 | MYR | 1,410 | 311,551 | |||||||||||
Bonds, Series 0307 | 3.502 | 05/31/27 | MYR | 1,715 | 383,190 | |||||||||||
Bonds, Series 0310 | 4.498 | 04/15/30 | MYR | 740 | 169,063 | |||||||||||
Bonds, Series 0311 | 4.392 | 04/15/26 | MYR | 285 | 66,673 | |||||||||||
Bonds, Series 0316 | 3.900 | 11/30/26 | MYR | 1,555 | 357,070 | |||||||||||
Bonds, Series 0317 | 4.762 | 04/07/37 | MYR | 842 | 191,781 | |||||||||||
Bonds, Series 0411 | 4.232 | 06/30/31 | MYR | 280 | 62,624 | |||||||||||
Bonds, Series 0413 | 3.844 | 04/15/33 | MYR | 390 | 82,929 | |||||||||||
Bonds, Series 0415 | 4.254 | 05/31/35 | MYR | 700 | 151,061 | |||||||||||
Bonds, Series 0417 | 3.899 | 11/16/27 | MYR | 1,370 | 310,797 | |||||||||||
Bonds, Series 0419 | 3.828 | 07/05/34 | MYR | 760 | 158,323 | |||||||||||
Bonds, Series 0513 | 3.733 | 06/15/28 | MYR | 1,480 | 330,654 | |||||||||||
Bonds, Series 0519 | 3.757 | 05/22/40 | MYR | 900 | 177,791 | |||||||||||
Malaysia Government Investment Issue, | ||||||||||||||||
Bonds, Series 0121 | 3.447 | 07/15/36 | MYR | 430 | 85,018 | |||||||||||
Bonds, Series 0617 | 4.724 | 06/15/33 | MYR | 600 | 137,928 | |||||||||||
|
| |||||||||||||||
4,920,850 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 13
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Mexico 4.0% | ||||||||||||||||
Mexican Bonos, | ||||||||||||||||
Bonds, Series M | 7.750% | 05/29/31 | MXN | 8,210 | $ | 369,200 | ||||||||||
Bonds, Series M | 8.000 | 11/07/47 | MXN | 8,628 | 372,012 | |||||||||||
Bonds, Series M30 | 10.000 | 11/20/36 | MXN | 2,355 | 123,221 | |||||||||||
Sr. Unsec’d. Notes, Series M | 7.750 | 11/13/42 | MXN | 6,987 | 295,858 | |||||||||||
Sr. Unsec’d. Notes, Series M30 | 8.500 | 11/18/38 | MXN | 8,472 | 392,274 | |||||||||||
Mexican Udibonos, | ||||||||||||||||
Bonds, Series S | 2.750 | 11/27/31 | MXN | 3,100 | 136,535 | |||||||||||
Bonds, Series S | 4.500 | 12/04/25 | MXN | 3,162 | 157,690 | |||||||||||
|
| |||||||||||||||
1,846,790 | ||||||||||||||||
Nigeria 0.4% | ||||||||||||||||
Nigeria Government International Bond, | 7.625 | 11/21/25 | 200 | 198,764 | ||||||||||||
Pakistan 1.2% | ||||||||||||||||
Pakistan Government International Bond, | 8.250 | 09/30/25 | 200 | 169,964 | ||||||||||||
Third Pakistan International Sukuk Co. Ltd. (The), | 5.625 | 12/05/22 | 400 | 386,131 | ||||||||||||
|
| |||||||||||||||
556,095 | ||||||||||||||||
Peru 2.6% | ||||||||||||||||
Peru Government Bond, | ||||||||||||||||
Bonds | 5.940 | 02/12/29 | PEN | 210 | 49,663 | |||||||||||
Bonds | 6.950 | 08/12/31 | PEN | 190 | 46,668 | |||||||||||
Sr. Unsec’d. Notes | 5.350 | 08/12/40 | PEN | 1,000 | 190,615 | |||||||||||
Sr. Unsec’d. Notes | 5.400 | 08/12/34 | PEN | 580 | 120,220 | |||||||||||
Sr. Unsec’d. Notes | 6.150 | 08/12/32 | PEN | 1,580 | 361,169 | |||||||||||
Peruvian Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.783 | 01/23/31 | 60 | �� | 51,959 | |||||||||||
Sr. Unsec’d. Notes | 6.350 | 08/12/28 | PEN | 435 | 106,360 | |||||||||||
Sr. Unsec’d. Notes | 6.850 | 02/12/42 | PEN | 245 | 55,173 | |||||||||||
Sr. Unsec’d. Notes | 6.900 | 08/12/37 | PEN | 521 | 120,771 | |||||||||||
Sr. Unsec’d. Notes | 6.950 | 08/12/31 | PEN | 478 | 117,406 | |||||||||||
|
| |||||||||||||||
1,220,004 | ||||||||||||||||
Philippines 0.2% | ||||||||||||||||
Philippine Government Bond, | ||||||||||||||||
Bonds, Series 1060 | 3.625 | 09/09/25 | PHP | 5,600 | 104,548 |
See Notes to Financial Statements.
14
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Poland 4.8% | ||||||||||||||||
Republic of Poland Government Bond, | ||||||||||||||||
Bonds, Series 0428 | 2.750% | 04/25/28 | PLN | 1,480 | $ | 271,811 | ||||||||||
Bonds, Series 0725 | 3.250 | 07/25/25 | PLN | 3,021 | 612,532 | |||||||||||
Bonds, Series 0726 | 2.500 | 07/25/26 | PLN | 2,960 | 563,277 | |||||||||||
Bonds, Series 0727 | 2.500 | 07/25/27 | PLN | 1,600 | 295,903 | |||||||||||
Bonds, Series 1026 | 0.250 | 10/25/26 | PLN | 280 | 47,613 | |||||||||||
Bonds, Series 1029 | 2.750 | 10/25/29 | PLN | 1,740 | 309,285 | |||||||||||
Bonds, Series 1030 | 1.250 | 10/25/30 | PLN | 750 | 114,779 | |||||||||||
|
| |||||||||||||||
2,215,200 | ||||||||||||||||
Romania 2.3% | ||||||||||||||||
Romania Government Bond, | ||||||||||||||||
Bonds, Series 05YR | 3.650 | 07/28/25 | RON | 1,000 | 195,757 | |||||||||||
Bonds, Series 05YR | 4.250 | 06/28/23 | RON | 1,145 | 239,521 | |||||||||||
Bonds, Series 07YR | 3.250 | 04/29/24 | RON | 750 | 151,017 | |||||||||||
Bonds, Series 07YR | 4.850 | 04/22/26 | RON | 980 | 195,658 | |||||||||||
Bonds, Series 10YR | 5.000 | 02/12/29 | RON | 500 | 95,193 | |||||||||||
Bonds, Series 10YR | 5.850 | 04/26/23 | RON | 460 | 98,124 | |||||||||||
Bonds, Series 15YR | 3.650 | 09/24/31 | RON | 590 | 96,194 | |||||||||||
|
| |||||||||||||||
1,071,464 | ||||||||||||||||
Russia 0.3% | ||||||||||||||||
Russian Federal Bond - OFZ, | ||||||||||||||||
Bonds, Series 6212 | 7.050 | 01/19/28 | RUB | 7,215 | 6,194 | |||||||||||
Bonds, Series 6218 | 8.500 | 09/17/31 | RUB | 16,712 | 14,346 | |||||||||||
Bonds, Series 6221 | 7.700 | 03/23/33 | RUB | 14,280 | 12,259 | |||||||||||
Bonds, Series 6224 | 6.900 | 05/23/29 | RUB | 27,635 | 23,723 | |||||||||||
Bonds, Series 6228 | 7.650 | 04/10/30 | RUB | 22,600 | 19,401 | |||||||||||
Bonds, Series 6229 | 7.150 | 11/12/25 | RUB | 7,500 | 6,438 | |||||||||||
Bonds, Series 6230 | 7.700 | 03/16/39 | RUB | 13,030 | 11,185 | |||||||||||
Bonds, Series 6232 | 6.000 | 10/06/27 | RUB | 8,500 | 7,297 | |||||||||||
Bonds, Series 6235 | 5.900 | 03/12/31 | RUB | 12,884 | 11,060 | |||||||||||
Russian Federal Inflation Linked Bond, | ||||||||||||||||
Unsec’d. Notes, Series 2003 | 2.500 | 07/17/30 | RUB | 8,589 | 7,373 | |||||||||||
|
| |||||||||||||||
119,276 | ||||||||||||||||
Senegal 0.2% | ||||||||||||||||
Senegal Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 03/13/28 | EUR | 100 | 99,117 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 15
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Serbia 0.3% | ||||||||||||||||
Serbia Treasury Bonds, | ||||||||||||||||
Bonds, Series 07YR | 4.500% | 01/11/26 | RSD | 9,460 | $ | 82,049 | ||||||||||
Bonds, Series 12.5 | 4.500 | 08/20/32 | RSD | 6,240 | 49,417 | |||||||||||
|
| |||||||||||||||
131,466 | ||||||||||||||||
South Africa 13.7% | ||||||||||||||||
Republic of South Africa Government Bond, | ||||||||||||||||
Sr. Unsec’d. Notes, Series 2030 | 8.000 | 01/31/30 | ZAR | 18,835 | 1,069,417 | |||||||||||
Sr. Unsec’d. Notes, Series 2032 | 8.250 | 03/31/32 | ZAR | 8,470 | 467,548 | |||||||||||
Sr. Unsec’d. Notes, Series 2035 | 8.875 | 02/28/35 | ZAR | 6,104 | 337,046 | |||||||||||
Sr. Unsec’d. Notes, Series 2037 | 8.500 | 01/31/37 | ZAR | 15,903 | 832,772 | |||||||||||
Sr. Unsec’d. Notes, Series 2040 | 9.000 | 01/31/40 | ZAR | 4,130 | 221,318 | |||||||||||
Sr. Unsec’d. Notes, Series 2044 | 8.750 | 01/31/44 | ZAR | 5,485 | 283,116 | |||||||||||
Sr. Unsec’d. Notes, Series 2048 | 8.750 | 02/28/48 | ZAR | 10,375 | 533,589 | |||||||||||
Sr. Unsec’d. Notes, Series R186 | 10.500 | 12/21/26 | ZAR | 24,054 | 1,648,051 | |||||||||||
Sr. Unsec’d. Notes, Series R209 | 6.250 | 03/31/36 | ZAR | 3,850 | 166,194 | |||||||||||
Sr. Unsec’d. Notes, Series R213 | 7.000 | 02/28/31 | ZAR | 7,550 | 390,368 | |||||||||||
Sr. Unsec’d. Notes, Series R214 | 6.500 | 02/28/41 | ZAR | 10,625 | 434,798 | |||||||||||
|
| |||||||||||||||
6,384,217 | ||||||||||||||||
Thailand 4.9% | ||||||||||||||||
Thailand Government Bond, | ||||||||||||||||
Bonds | 1.600 | 12/17/29 | THB | 3,885 | 105,376 | |||||||||||
Bonds | 2.000 | 06/17/42 | THB | 5,080 | 109,276 | |||||||||||
Bonds | 2.875 | 12/17/28 | THB | 12,015 | 357,293 | |||||||||||
Bonds | 2.875 | 06/17/46 | THB | 6,065 | 146,657 | |||||||||||
Bonds | 3.300 | 06/17/38 | THB | 10,300 | 290,113 | |||||||||||
Bonds | 3.400 | 06/17/36 | THB | 9,585 | 277,267 | |||||||||||
Sr. Unsec’d. Notes | 1.600 | 06/17/35 | THB | 7,100 | 171,186 | |||||||||||
Sr. Unsec’d. Notes | 1.875 | 06/17/49 | THB | 1,063 | 20,171 | |||||||||||
Sr. Unsec’d. Notes | 2.000 | 12/17/31 | THB | 10,625 | 291,781 | |||||||||||
Sr. Unsec’d. Notes | 2.125 | 12/17/26 | THB | 4,535 | 131,972 | |||||||||||
Sr. Unsec’d. Notes | 3.650 | 06/20/31 | THB | 2,559 | 79,854 | |||||||||||
Sr. Unsec’d. Notes | 3.775 | 06/25/32 | THB | 9,780 | 309,259 | |||||||||||
|
| |||||||||||||||
2,290,205 | ||||||||||||||||
Turkey 0.1% | ||||||||||||||||
Turkey Government Bond, | ||||||||||||||||
Bonds | 8.500 | 09/14/22 | TRY | 395 | 25,864 |
See Notes to Financial Statements.
16
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Ukraine 0.3% | ||||||||||||||||
Ukraine Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.750% | 06/20/26 | EUR | 150 | $ | 50,638 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/24 | 222 | 74,925 | ||||||||||||
|
| |||||||||||||||
125,563 | ||||||||||||||||
Uruguay 0.3% | ||||||||||||||||
Uruguay Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 9.875 | 06/20/22 | UYU | 3,260 | 79,924 | |||||||||||
Sr. Unsec’d. Notes, 144A | 8.500 | 03/15/28 | UYU | 1,870 | 42,676 | |||||||||||
|
| |||||||||||||||
122,600 | ||||||||||||||||
|
| |||||||||||||||
TOTAL SOVEREIGN BONDS | ||||||||||||||||
(cost $45,871,336) | 38,484,807 | |||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||||||||||
(cost $50,599,819) | 41,490,496 | |||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENTS 4.8% | ||||||||||||||||
UNAFFILIATED FUND 4.5% | ||||||||||||||||
Dreyfus Government Cash Management (Institutional Shares) |
| 2,083,470 | 2,083,470 | |||||||||||||
OPTIONS PURCHASED*~ 0.3% | ||||||||||||||||
(cost $133,996) | 143,689 | |||||||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||||||
(cost $2,217,466) | 2,227,159 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN 94.0% | ||||||||||||||||
(cost $52,817,285) | 43,717,655 | |||||||||||||||
|
| |||||||||||||||
OPTIONS WRITTEN*~ (0.3)% | ||||||||||||||||
(premiums received $132,823) | (158,425 | ) | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN 93.7% | ||||||||||||||||
(cost $52,684,462) | 43,559,230 | |||||||||||||||
Other assets in excess of liabilities(z) 6.3% | 2,940,319 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 46,499,549 | ||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 17
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Below is a list of the abbreviation(s) used in the semiannual report:
AUD—Australian Dollar
BRL—Brazilian Real
CAD—Canadian Dollar
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
DOP—Dominican Peso
EGP—Egyptian Pound
EUR—Euro
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli Shekel
INR—Indian Rupee
JPY—Japanese Yen
KRW—South Korean Won
MXN—Mexican Peso
MYR—Malaysian Ringgit
PEN—Peruvian Nuevo Sol
PHP—Philippine Peso
PLN—Polish Zloty
RON—Romanian Leu
RSD—Serbian Dinar
RUB—Russian Ruble
SGD—Singapore Dollar
THB—Thai Baht
TRY—Turkish Lira
TWD—New Taiwanese Dollar
USD—US Dollar
UYU—Uruguayan Peso
ZAR—South African Rand
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
A—Annual payment frequency for swaps
BROIS—Brazil Overnight Index Swap
BUBOR—Budapest Interbank Offered Rate
CLOIS—Sinacofi Chile Interbank Rate Average
COOIS—Colombia Overnight Interbank Reference Rate
EMTN—Euro Medium Term Note
GMTN—Global Medium Term Note
JIBAR—Johannesburg Interbank Agreed Rate
KLIBOR—Kuala Lumpur Interbank Offered Rate
KWCDC—Korean Won Certificate of Deposit
LIBOR—London Interbank Offered Rate
M—Monthly payment frequency for swaps
MosPRIME—Moscow Prime Offered Rate
MTN—Medium Term Note
OFZ—Obligatsyi Federal’novo Zaima (Federal Loan Obligations)
OTC—Over-the-counter
PRIBOR—Prague Interbank Offered Rate
See Notes to Financial Statements.
18
Q—Quarterly payment frequency for swaps
S—Semiannual payment frequency for swaps
T—Swap payment upon termination
WIBOR—Warsaw Interbank Offered Rate
* | Non-income producing security. |
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
~ | See tables subsequent to the Schedule of Investments for options detail. |
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of April 30, 2022. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Options Purchased:
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||
Currency Option EUR vs CZK | Call | JPMorgan Chase Bank, N.A. | 06/08/22 | 27.25 | — | EUR | 245 | $ | 87 | |||||||||||
Currency Option EUR vs CZK | Call | JPMorgan Chase Bank, N.A. | 06/08/22 | 27.25 | — | EUR | 245 | 87 | ||||||||||||
Currency Option EUR vs CZK | Call | JPMorgan Chase Bank, N.A. | 06/08/22 | 27.25 | — | EUR | 245 | 87 | ||||||||||||
Currency Option EUR vs CZK | Call | Morgan Stanley & Co. International PLC | 06/08/22 | 33.00 | — | EUR | 735 | 18 | ||||||||||||
Currency Option USD vs CLP | Call | Morgan Stanley & Co. International PLC | 05/26/22 | 850.00 | — | 560 | 12,447 | |||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 06/17/22 | 6.45 | — | 855 | 27,611 | |||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 06/17/22 | 6.65 | — | 855 | 8,916 | |||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 08/08/22 | 6.55 | — | 280 | 6,670 | |||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 08/08/22 | 8.00 | — | 140 | 25 | |||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 09/02/22 | 6.55 | — | 283 | 7,230 | |||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 10/19/22 | 6.50 | — | 977 | 32,516 | |||||||||||||
Currency Option USD vs MXN | Call | Morgan Stanley & Co. International PLC | 05/05/22 | 22.00 | — | 607 | 41 | |||||||||||||
Currency Option USD vs MXN | Call | JPMorgan Chase Bank, N.A. | 05/06/22 | 20.50 | — | 244 | 1,323 | |||||||||||||
Currency Option USD vs MXN | Call | JPMorgan Chase Bank, N.A. | 06/06/22 | 22.00 | — | 1,401 | 3,663 | |||||||||||||
Currency Option USD vs MXN | Call | JPMorgan Chase Bank, N.A. | 06/14/22 | 21.50 | — | 261 | 1,481 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 19
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Options Purchased (continued):
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||||
Currency Option USD vs ZAR | Call | Barclays Bank PLC | 05/10/22 | 16.00 | — | 912 | $ | 5,979 | ||||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 05/10/22 | 17.50 | — | 912 | 148 | |||||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 07/27/22 | 16.50 | — | 810 | 14,986 | |||||||||||||||||
Currency Option EUR vs CZK | Put | Morgan Stanley & Co. International PLC | 06/08/22 | 25.25 | — | EUR | 735 | 18,211 | ||||||||||||||||
Currency Option USD vs BRL | Put | Goldman Sachs International | 06/21/22 | 4.00 | — | 523 | 38 | |||||||||||||||||
Currency Option USD vs CLP | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 690.00 | — | 560 | — | |||||||||||||||||
Currency Option USD vs CNH | Put | JPMorgan Chase Bank, N.A. | 08/08/22 | 5.60 | — | 280 | 1 | |||||||||||||||||
Currency Option USD vs CNH | Put | Goldman Sachs International | 09/02/22 | 5.75 | — | 283 | 4 | |||||||||||||||||
Currency Option USD vs MXN | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 18.50 | — | 607 | — | |||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/06/22 | 19.00 | — | 488 | 2 | |||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/06/22 | 18.50 | — | 1,401 | 159 | |||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/14/22 | 18.00 | — | 261 | 17 | |||||||||||||||||
Currency Option USD vs RUB | Put | Goldman Sachs International | 06/09/22 | 58.00 | — | 818 | 1,942 | |||||||||||||||||
Currency Option USD vs ZAR | Put | Barclays Bank PLC | 05/10/22 | 12.25 | — | 912 | — | |||||||||||||||||
|
| |||||||||||||||||||||||
Total Options Purchased (cost $133,996) | $ | 143,689 | ||||||||||||||||||||||
|
|
Options Written:
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||
Currency Option EUR vs CZK | Call | Morgan Stanley & Co. International PLC | 06/08/22 | 27.25 | — | EUR | 735 | $ | (261 | ) | ||||||||||
Currency Option USD vs CLP | Call | Morgan Stanley & Co. International PLC | 05/26/22 | 870.00 | — | 560 | (7,094 | ) | ||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 06/17/22 | 6.45 | — | 855 | (27,611 | ) |
See Notes to Financial Statements.
20
Options Written (continued):
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 08/08/22 | 6.90 | — | 420 | $ | (2,019 | ) | |||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 09/02/22 | 6.80 | — | 283 | (2,553 | ) | ||||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 10/19/22 | 6.75 | — | 977 | (12,996 | ) | ||||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 05/10/22 | 16.00 | — | 912 | (5,979 | ) | ||||||||||||||||
Currency Option USD vs ZAR | Call | Barclays Bank PLC | 05/10/22 | 17.50 | — | 912 | (148 | ) | ||||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 07/27/22 | 17.50 | — | 405 | (3,118 | ) | ||||||||||||||||
Currency Option EUR vs CZK | Put | JPMorgan Chase Bank, N.A. | 06/08/22 | 25.25 | — | EUR | 245 | (6,070 | ) | |||||||||||||||
Currency Option EUR vs CZK | Put | JPMorgan Chase Bank, N.A. | 06/08/22 | 25.25 | — | EUR | 245 | (6,070 | ) | |||||||||||||||
Currency Option EUR vs CZK | Put | JPMorgan Chase Bank, N.A. | 06/08/22 | 25.25 | — | EUR | 245 | (6,070 | ) | |||||||||||||||
Currency Option USD vs BRL | Put | Goldman Sachs International | 06/21/22 | 4.90 | — | 523 | (10,040 | ) | ||||||||||||||||
Currency Option USD vs CLP | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 790.00 | — | 560 | (5 | ) | ||||||||||||||||
Currency Option USD vs CNH | Put | JPMorgan Chase Bank, N.A. | 08/08/22 | 6.40 | — | 280 | (315 | ) | ||||||||||||||||
Currency Option USD vs CNH | Put | Goldman Sachs International | 09/02/22 | 6.25 | — | 283 | (116 | ) | ||||||||||||||||
Currency Option USD vs MXN | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 20.50 | — | 607 | (6,773 | ) | ||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/06/22 | 19.75 | — | 488 | (152 | ) | ||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/06/22 | 20.70 | — | 1,401 | (31,374 | ) | ||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/14/22 | 20.30 | — | 261 | (3,113 | ) | ||||||||||||||||
Currency Option USD vs RUB | Put | Goldman Sachs International | 06/09/22 | 71.00 | — | 818 | (26,428 | ) | ||||||||||||||||
Currency Option USD vs ZAR | Put | Barclays Bank PLC | 05/10/22 | 14.75 | — | 912 | (120 | ) | ||||||||||||||||
|
| |||||||||||||||||||||||
Total Options Written (premiums received $132,823) | $ | (158,425 | ) | |||||||||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 21
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Futures contracts outstanding at April 30, 2022:
Number of | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||||
Short Positions: | ||||||||||||||||||
6 | 2 Year U.S. Treasury Notes | Jun. 2022 | $ | 1,264,875 | $ | 22,143 | ||||||||||||
1 | 5 Year Euro-Bobl | Jun. 2022 | 134,169 | 6,125 | ||||||||||||||
10 | 5 Year U.S. Treasury Notes | Jun. 2022 | 1,126,719 | 47,354 | ||||||||||||||
3 | 10 Year U.S. Treasury Notes | Jun. 2022 | 357,469 | 21,746 | ||||||||||||||
|
| |||||||||||||||||
$ | 97,368 | |||||||||||||||||
|
|
Forward foreign currency exchange contracts outstanding at April 30, 2022:
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized | Unrealized | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: |
| |||||||||||||||||||||||||||||
Australian Dollar, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | JPMorgan Chase Bank, N.A. | AUD | 169 | $ | 121,000 | $ | 119,315 | $ | — | $ | (1,685 | ) | ||||||||||||||||||
Expiring 07/19/22 | Morgan Stanley & Co. International PLC | AUD | 40 | 29,000 | 28,641 | — | (359 | ) | ||||||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||||||||
Expiring 05/03/22 | Barclays Bank PLC | BRL | 566 | 117,982 | 114,389 | — | (3,593 | ) | ||||||||||||||||||||||
Expiring 05/03/22 | Citibank, N.A. | BRL | 982 | 208,000 | 198,416 | — | (9,584 | ) | ||||||||||||||||||||||
Expiring 05/03/22 | Goldman Sachs International | BRL | 645 | 135,000 | 130,250 | — | (4,750 | ) | ||||||||||||||||||||||
Expiring 05/03/22 | JPMorgan Chase Bank, N.A. | BRL | 15,815 | 3,261,644 | 3,194,813 | — | (66,831 | ) | ||||||||||||||||||||||
Expiring 06/02/22 | Citibank, N.A. | BRL | 16,995 | 3,582,988 | 3,399,228 | — | (183,760 | ) | ||||||||||||||||||||||
Expiring 06/02/22 | Citibank, N.A. | BRL | 146 | 30,000 | 29,198 | — | (802 | ) | ||||||||||||||||||||||
Expiring 06/02/22 | Goldman Sachs International | BRL | 597 | 119,000 | 119,406 | 406 | — | |||||||||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | CLP | 240,950 | 295,000 | 279,837 | — | (15,163 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | CLP | 229,587 | 278,000 | 266,640 | — | (11,360 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | CLP | 187,444 | 232,000 | 217,696 | — | (14,304 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | CLP | 27,387 | 32,090 | 31,807 | — | (283 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | CLP | 103,619 | 121,000 | 120,342 | — | (658 | ) | ||||||||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||||||||
Expiring 05/23/22 | BNP Paribas S.A. | CNH | 172 | 26,811 | 25,809 | — | (1,002 | ) | ||||||||||||||||||||||
Expiring 05/23/22 | Citibank, N.A. | CNH | 3,121 | 473,000 | 468,871 | — | (4,129 | ) | ||||||||||||||||||||||
Expiring 05/23/22 | Citibank, N.A. | CNH | 956 | 145,000 | 143,563 | — | (1,437 | ) | ||||||||||||||||||||||
Expiring 05/23/22 | Goldman Sachs International | CNH | 1,602 | 241,000 | 240,741 | — | (259 | ) | ||||||||||||||||||||||
Expiring 05/23/22 | Goldman Sachs International | CNH | 319 | 49,804 | 47,913 | — | (1,891 | ) |
See Notes to Financial Statements.
22
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
Chinese Renminbi (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 05/23/22 | HSBC Bank PLC | CNH | 3,269 | $ | 514,000 | $ | 491,168 | $ | — | $ | (22,832 | ) | ||||||||||||||||||
Expiring 05/23/22 | HSBC Bank PLC | CNH | 2,025 | 319,000 | 304,266 | — | (14,734 | ) | ||||||||||||||||||||||
Expiring 05/23/22 | JPMorgan Chase Bank, N.A. | CNH | 7,326 | 1,145,233 | 1,100,687 | — | (44,546 | ) | ||||||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | COP | 481,459 | 121,000 | 120,673 | — | (327 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | COP | 625,348 | 164,000 | 156,737 | — | (7,263 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | COP | 571,943 | 148,000 | 143,352 | — | (4,648 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | COP | 419,699 | 104,809 | 105,193 | 384 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | COP | 1,235,139 | 321,827 | 309,576 | — | (12,251 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | COP | 475,667 | 119,000 | 119,221 | 221 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | COP | 232,838 | 62,323 | 58,359 | — | (3,964 | ) | ||||||||||||||||||||||
Czech Koruna, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | Barclays Bank PLC | CZK | 24,436 | 1,073,001 | 1,037,926 | — | (35,075 | ) | ||||||||||||||||||||||
Expiring 07/19/22 | Morgan Stanley & Co. International PLC | CZK | 3,200 | 141,000 | 135,908 | — | (5,092 | ) | ||||||||||||||||||||||
Egyptian Pound, | ||||||||||||||||||||||||||||||
Expiring 05/11/22 | Citibank, N.A. | EGP | 8,638 | 465,922 | 463,323 | — | (2,599 | ) | ||||||||||||||||||||||
Expiring 05/25/22 | Citibank, N.A. | EGP | 8,638 | 462,678 | 458,901 | — | (3,777 | ) | ||||||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | INR | 24,826 | 324,000 | 322,545 | — | (1,455 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | INR | 16,346 | 213,000 | 212,368 | — | (632 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 125,126 | 1,621,279 | 1,625,680 | 4,401 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 9,490 | 125,000 | 123,297 | — | (1,703 | ) | ||||||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | IDR | 3,458,098 | 240,915 | 236,605 | — | (4,310 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | IDR | 1,418,244 | 98,597 | 97,037 | — | (1,560 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | IDR | 8,347,160 | 580,107 | 571,119 | — | (8,988 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | IDR | 2,424,706 | 167,000 | 165,900 | — | (1,100 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | IDR | 1,144,824 | 79,712 | 78,330 | — | (1,382 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | IDR | 2,243,002 | 156,215 | 153,467 | — | (2,748 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 23
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | ILS | 196 | $ | 61,029 | $ | 58,778 | $ | — | $ | (2,251 | ) | ||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | ILS | 82 | 25,101 | 24,519 | — | (582 | ) | ||||||||||||||||||||||
Japanese Yen, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | HSBC Bank PLC | JPY | 34,275 | 274,591 | 265,048 | — | (9,543 | ) | ||||||||||||||||||||||
Malaysian Ringgit, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | MYR | 662 | 156,748 | 152,328 | — | (4,420 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | MYR | 628 | 149,000 | 144,438 | — | (4,562 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | MYR | 314 | 74,515 | 72,345 | — | (2,170 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | MYR | 307 | 70,677 | 70,685 | 8 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | MYR | 2,967 | 707,635 | 682,877 | — | (24,758 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | MYR | 575 | 136,000 | 132,369 | — | (3,631 | ) | ||||||||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | MXN | 8,075 | 398,445 | 392,048 | — | (6,397 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | MXN | 1,632 | 80,705 | 79,255 | — | (1,450 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 4,633 | 227,000 | 224,940 | — | (2,060 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 2,958 | 136,000 | 143,595 | 7,595 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | MXN | 47,164 | 2,235,956 | 2,289,850 | 53,894 | — | |||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | MXN | 6,190 | 302,000 | 300,537 | — | (1,463 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | MXN | 2,950 | 136,000 | 143,249 | 7,249 | — | |||||||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | TWD | 4,075 | 144,136 | 138,906 | — | (5,230 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | TWD | 7,467 | 259,000 | 254,515 | — | (4,485 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | TWD | 2,538 | 90,137 | 86,530 | — | (3,607 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | TWD | 16,564 | 578,000 | 564,622 | — | (13,378 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | TWD | 10,200 | 357,000 | 347,685 | — | (9,315 | ) | ||||||||||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | PEN | 153 | 40,718 | 39,554 | — | (1,164 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | PEN | 775 | 206,000 | 200,741 | — | (5,259 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | PEN | 862 | 225,000 | 223,413 | — | (1,587 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | PEN | 340 | 91,206 | 88,091 | — | (3,115 | ) |
See Notes to Financial Statements.
24
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
Peruvian Nuevo Sol (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PEN | 283 | $ | 76,064 | $ | 73,328 | $ | — | $ | (2,736 | ) | ||||||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 16,015 | 304,000 | 303,856 | — | (144 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 14,968 | 284,000 | 283,994 | — | (6 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 12,105 | 230,000 | 229,668 | — | (332 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 6,433 | 122,000 | 122,064 | 64 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 28,862 | 547,000 | 547,597 | 597 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 23,383 | 442,000 | 443,652 | 1,652 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 11,552 | 219,000 | 219,175 | 175 | — | |||||||||||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | HSBC Bank PLC | PLN | 3,764 | 872,566 | 840,077 | — | (32,489 | ) | ||||||||||||||||||||||
Expiring 07/19/22 | HSBC Bank PLC | PLN | 3,181 | 733,339 | 709,880 | — | (23,459 | ) | ||||||||||||||||||||||
Expiring 07/19/22 | JPMorgan Chase Bank, N.A. | PLN | 276 | 61,624 | 61,645 | 21 | — | |||||||||||||||||||||||
Romanian Leu, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | Morgan Stanley & Co. International PLC | RON | 2,284 | 496,844 | 481,389 | — | (15,455 | ) | ||||||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | SGD | 594 | 438,000 | 429,441 | — | (8,559 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | SGD | 122 | 90,009 | 88,182 | — | (1,827 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | SGD | 467 | 344,000 | 337,900 | — | (6,100 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | SGD | 613 | 452,000 | 443,321 | — | (8,679 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | SGD | 164 | 121,113 | 118,541 | — | (2,572 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | SGD | 104 | 76,798 | 75,449 | — | (1,349 | ) | ||||||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 4,105 | 256,000 | 258,551 | 2,551 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 2,260 | 153,000 | 142,341 | — | (10,659 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 1,900 | 121,000 | 119,681 | — | (1,319 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | ZAR | 470 | 31,838 | 29,585 | — | (2,253 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | ZAR | 1,437 | 92,891 | 90,482 | — | (2,409 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | ZAR | 506 | 34,368 | 31,899 | — | (2,469 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | ZAR | 4,268 | 284,558 | 268,852 | — | (15,706 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 25
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
South African Rand (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 3,641 | $ | 229,162 | $ | 229,309 | $ | 147 | $ | — | |||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 2,600 | 164,001 | 163,771 | — | (230 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 2,129 | 132,000 | 134,073 | 2,073 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 1,918 | 121,000 | 120,808 | — | (192 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 1,900 | 119,000 | 119,672 | 672 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 1,544 | 101,878 | 97,269 | — | (4,609 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | ZAR | 5,267 | 336,000 | 331,737 | — | (4,263 | ) | ||||||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | KRW | 27,119 | 22,291 | 21,471 | — | (820 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 341,700 | 278,000 | 270,526 | — | (7,474 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 274,934 | 227,000 | 217,667 | — | (9,333 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 160,722 | 130,000 | 127,244 | — | (2,756 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | KRW | 51,480 | 41,935 | 40,757 | — | (1,178 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | KRW | 238,793 | 196,000 | 189,054 | — | (6,946 | ) | ||||||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | THB | 16,582 | 490,000 | 484,519 | — | (5,481 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | THB | 8,417 | 253,000 | 245,949 | — | (7,051 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | THB | 5,568 | 166,000 | 162,693 | — | (3,307 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 21,025 | 632,000 | 614,340 | — | (17,660 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 5,544 | 165,000 | 161,983 | — | (3,017 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 4,979 | 149,862 | 145,471 | — | (4,391 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 4,186 | 125,000 | 122,314 | — | (2,686 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | THB | 9,170 | 276,000 | 267,947 | — | (8,053 | ) | ||||||||||||||||||||||
Turkish Lira, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | TRY | 6,245 | 382,568 | 405,847 | 23,279 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 37,050,245 | $ | 36,314,402 | 105,389 | (841,232 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
26
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: |
| |||||||||||||||||||||||||||||
Australian Dollar, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | BNP Paribas S.A. | AUD | 212 | $ | 157,857 | $ | 149,976 | $ | 7,881 | $ | — | |||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||||||||
Expiring 05/03/22 | BNP Paribas S.A. | BRL | 470 | 99,000 | 94,847 | 4,153 | — | |||||||||||||||||||||||
Expiring 05/03/22 | Citibank, N.A. | BRL | 16,995 | 3,616,767 | 3,433,247 | 183,520 | — | |||||||||||||||||||||||
Expiring 05/03/22 | Citibank, N.A. | BRL | 543 | 115,322 | 109,773 | 5,549 | — | |||||||||||||||||||||||
Canadian Dollar, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | Barclays Bank PLC | CAD | 193 | 152,827 | 150,121 | 2,706 | — | |||||||||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | CLP | 166,772 | 207,000 | 193,687 | 13,313 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | CLP | 198,453 | 244,025 | 230,482 | 13,543 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | CLP | 35,662 | 43,615 | 41,417 | 2,198 | — | |||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | CLP | 182,618 | 229,000 | 212,091 | 16,909 | — | |||||||||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||||||||
Expiring 05/23/22 | Goldman Sachs International | CNH | 1,408 | 220,294 | 211,611 | 8,683 | — | |||||||||||||||||||||||
Expiring 05/23/22 | Goldman Sachs International | CNH | 184 | 28,805 | 27,612 | 1,193 | — | |||||||||||||||||||||||
Expiring 05/23/22 | HSBC Bank PLC | CNH | 1,172 | 183,485 | 176,154 | 7,331 | — | |||||||||||||||||||||||
Expiring 05/23/22 | JPMorgan Chase Bank, N.A. | CNH | 27,658 | 4,330,434 | 4,155,320 | 175,114 | — | |||||||||||||||||||||||
Expiring 05/23/22 | JPMorgan Chase Bank, N.A. | CNH | 796 | 119,767 | 119,664 | 103 | — | |||||||||||||||||||||||
Expiring 05/23/22 | JPMorgan Chase Bank, N.A. | CNH | 384 | 60,386 | 57,763 | 2,623 | — | |||||||||||||||||||||||
Expiring 05/23/22 | Morgan Stanley & Co. International PLC | CNH | 2,628 | 412,000 | 394,770 | 17,230 | — | |||||||||||||||||||||||
Expiring 05/23/22 | Morgan Stanley & Co. International PLC | CNH | 925 | 145,562 | 139,027 | 6,535 | — | |||||||||||||||||||||||
Expiring 05/23/22 | UBS AG | CNH | 2,924 | 460,000 | 439,343 | 20,657 | — | |||||||||||||||||||||||
Expiring 05/23/22 | UBS AG | CNH | 1,725 | 269,000 | 259,207 | 9,793 | — | |||||||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | COP | 575,008 | 151,000 | 144,120 | 6,880 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | COP | 560,947 | 141,000 | 140,596 | 404 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | COP | 623,376 | 162,000 | 156,243 | 5,757 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | COP | 528,562 | 136,709 | 132,479 | 4,230 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | COP | 465,218 | 120,134 | 116,602 | 3,532 | — | |||||||||||||||||||||||
Egyptian Pound, | ||||||||||||||||||||||||||||||
Expiring 05/11/22 | Citibank, N.A. | EGP | 8,638 | 466,677 | 463,323 | 3,354 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 27
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
Euro, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | BNP Paribas S.A. | EUR | 114 | $ | 123,000 | $ | 120,348 | $ | 2,652 | $ | — | |||||||||||||||||||
Expiring 07/19/22 | Deutsche Bank AG | EUR | 285 | 310,272 | 302,294 | 7,978 | — | |||||||||||||||||||||||
Expiring 07/19/22 | Deutsche Bank AG | EUR | 160 | 174,440 | 169,303 | 5,137 | — | |||||||||||||||||||||||
Hungarian Forint, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | Barclays Bank PLC | HUF | 73,669 | 208,725 | 203,195 | 5,530 | — | |||||||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | INR | 1,561 | 20,257 | 20,275 | — | (18 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | INR | 38,260 | 497,000 | 497,080 | — | (80 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | INR | 37,055 | 478,000 | 481,425 | — | (3,425 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | INR | 22,319 | 288,000 | 289,977 | — | (1,977 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 36,302 | 472,000 | 471,650 | 350 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 2,225 | 29,000 | 28,910 | 90 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | INR | 34,328 | 446,000 | 445,997 | 3 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | INR | 5,348 | 69,226 | 69,489 | — | (263 | ) | ||||||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | IDR | 5,302,138 | 369,001 | 362,776 | 6,225 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | IDR | 681,010 | 47,434 | 46,595 | 839 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | IDR | 2,931,631 | 201,764 | 200,584 | 1,180 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | IDR | 700,471 | 48,671 | 47,927 | 744 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | IDR | 599,200 | 41,236 | 40,998 | 238 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | IDR | 19,903,147 | 1,388,527 | 1,361,788 | 26,739 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | IDR | 3,100,146 | 212,411 | 212,114 | 297 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | IDR | 6,706,969 | 464,000 | 458,896 | 5,104 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | IDR | 3,384,570 | 236,622 | 231,575 | 5,047 | — | |||||||||||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Bank of America, N.A. | ILS | 625 | 193,200 | 187,609 | 5,591 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Bank of America, N.A. | ILS | 495 | 151,800 | 148,573 | 3,227 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ILS | 809 | 247,000 | 242,818 | 4,182 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ILS | 99 | 30,623 | 29,695 | 928 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | ILS | 773 | 242,000 | 232,099 | 9,901 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | ILS | 1,024 | 312,000 | 307,601 | 4,399 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ILS | 958 | 294,000 | 287,710 | 6,290 | — |
See Notes to Financial Statements.
28
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
Malaysian Ringgit, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | MYR | 188 | $ | 44,759 | $ | 43,358 | $ | 1,401 | $ | — | |||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | MYR | 946 | 225,716 | 217,637 | 8,079 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | MYR | 591 | 140,000 | 136,052 | 3,948 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | MYR | 404 | 95,580 | 92,951 | 2,629 | — | |||||||||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | MXN | 6,029 | 292,530 | 292,710 | — | (180 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | MXN | 4,039 | 189,177 | 196,095 | — | (6,918 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | MXN | 802 | 37,701 | 38,950 | — | (1,249 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 3,945 | 185,000 | 191,539 | — | (6,539 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 2,924 | 144,761 | 141,956 | 2,805 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 2,459 | 119,000 | 119,386 | — | (386 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 1,657 | 79,343 | 80,449 | — | (1,106 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | MXN | 4,616 | 217,000 | 224,133 | — | (7,133 | ) | ||||||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | TWD | 871 | 30,476 | 29,684 | 792 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | TWD | 6,620 | 227,000 | 225,658 | 1,342 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | TWD | 60,196 | 2,132,351 | 2,051,925 | 80,426 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | TWD | 6,425 | 222,000 | 219,015 | 2,985 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | TWD | 6,310 | 216,000 | 215,092 | 908 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | TWD | 6,391 | 219,000 | 217,841 | 1,159 | — | |||||||||||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | PEN | 85 | 22,414 | 22,006 | 408 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | PEN | 644 | 167,299 | 166,807 | 492 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | PEN | 229 | 61,177 | 59,330 | 1,847 | — | |||||||||||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Bank of America, N.A. | PHP | 17,317 | 331,000 | 328,550 | 2,450 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | PHP | 4,470 | 84,481 | 84,808 | — | (327 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | PHP | 6,443 | 125,000 | 122,247 | 2,753 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 29
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
Philippine Peso (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 7,362 | $ | 141,000 | $ | 139,684 | $ | 1,316 | $ | — | |||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | PHP | 18,120 | 342,014 | 343,792 | — | (1,778 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 15,889 | 307,000 | 301,461 | 5,539 | — | |||||||||||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||||||
Expiring 07/19/22 | Citibank, N.A. | PLN | 2,072 | 464,854 | 462,403 | 2,451 | — | |||||||||||||||||||||||
Expiring 07/19/22 | Morgan Stanley & Co. International PLC | PLN | 1,220 | 280,000 | 272,283 | 7,717 | — | |||||||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Credit Suisse International | SGD | 360 | 264,000 | 260,086 | 3,914 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | SGD | 511 | 370,000 | 369,699 | 301 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | SGD | 498 | 359,000 | 360,130 | — | (1,130 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | SGD | 2,471 | 1,816,128 | 1,786,884 | 29,244 | — | |||||||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 17,257 | 1,137,565 | 1,086,986 | 50,579 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 15,616 | 1,009,668 | 983,600 | 26,068 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 10,383 | 671,324 | 653,991 | 17,333 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 2,569 | 169,908 | 161,787 | 8,121 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | ZAR | 17,257 | 1,134,231 | 1,086,986 | 47,245 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Deutsche Bank AG | ZAR | 1,528 | 100,208 | 96,220 | 3,988 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | ZAR | 2,560 | 169,919 | 161,251 | 8,668 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | ZAR | 5,435 | 355,942 | 342,363 | 13,579 | — | |||||||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | KRW | 1,243,100 | 1,011,736 | 984,171 | 27,565 | — | |||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 261,839 | 207,000 | 207,300 | — | (300 | ) | ||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | KRW | 348,022 | 276,000 | 275,532 | 468 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | KRW | 290,407 | 233,000 | 229,917 | 3,083 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | KRW | 314,094 | 251,000 | 248,670 | 2,330 | — | |||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | KRW | 255,848 | 201,000 | 202,556 | — | (1,556 | ) | ||||||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | THB | 3,559 | 107,391 | 103,989 | 3,402 | — | |||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 48,448 | 1,461,794 | 1,415,630 | 46,164 | — |
See Notes to Financial Statements.
30
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||
Thai Baht (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 4,134 | $ | 121,000 | $ | 120,803 | $ | 197 | $ | — | |||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | THB | 12,065 | 360,000 | 352,521 | 7,479 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 38,800,322 | $ | 37,777,650 | 1,057,037 | (34,365 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 1,162,426 | $ | (875,597 | ) | ||||||||||||||||||||||||||
|
|
|
|
Cross currency exchange contracts outstanding at April 30, 2022:
Settlement | Type | Notional Amount (000) | In Exchange For (000) | Unrealized Appreciation | Unrealized Depreciation | Counterparty | ||||||||||||||||||||||||||||||
OTC Cross Currency Exchange Contracts: | ||||||||||||||||||||||||||||||||||||
07/19/22 | Buy | EUR | 112 | HUF | 42,232 | $ | 2,174 | $ | — | HSBC Bank PLC | ||||||||||||||||||||||||||
07/19/22 | Buy | HUF | 43,314 | EUR | 113 | — | (248 | ) | JPMorgan Chase Bank, N.A. | |||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||
$ | 2,174 | $ | (248 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
Interest rate swap agreements outstanding at April 30, 2022:
Notional Amount (000)# | Termination Date | Fixed Rate | Floating Rate | Value at Trade Date | Value at April 30, 2022 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||||
Centrally Cleared Interest Rate Swap Agreements: |
| |||||||||||||||||||||||||||||||||||||
BRL | 3,324 | 01/02/23 | 6.450%(T) | 1 Day BROIS(2)(T) | $ | — | $ | (31,981 | ) | $ | (31,981 | ) | ||||||||||||||||||||||||||
BRL | 1,374 | 01/02/24 | 4.590%(T) | 1 Day BROIS(2)(T) | — | (36,666 | ) | (36,666 | ) | |||||||||||||||||||||||||||||
BRL | 9,889 | 01/02/24 | 11.247%(T) | 1 Day BROIS(2)(T) | — | (39,992 | ) | (39,992 | ) | |||||||||||||||||||||||||||||
BRL | 1,478 | 01/02/25 | 5.840%(T) | 1 Day BROIS(2)(T) | — | (38,494 | ) | (38,494 | ) | |||||||||||||||||||||||||||||
BRL | 2,354 | 01/02/25 | 7.950%(T) | 1 Day BROIS(2)(T) | — | (46,111 | ) | (46,111 | ) | |||||||||||||||||||||||||||||
BRL | 2,540 | 01/02/25 | 8.140%(T) | 1 Day BROIS(1)(T) | — | 43,503 | 43,503 | |||||||||||||||||||||||||||||||
BRL | 3,378 | 01/02/25 | 11.078%(T) | 1 Day BROIS(2)(T) | — | (14,890 | ) | (14,890 | ) | |||||||||||||||||||||||||||||
BRL | 5,922 | 01/02/25 | 11.490%(T) | 1 Day BROIS(2)(T) | 4,670 | (14,462 | ) | (19,132 | ) | |||||||||||||||||||||||||||||
BRL | 3,354 | 01/02/25 | 12.050%(T) | 1 Day BROIS(2)(T) | — | 1,450 | 1,450 | |||||||||||||||||||||||||||||||
BRL | 668 | 01/04/27 | 6.325%(T) | 1 Day BROIS(2)(T) | — | (27,870 | ) | (27,870 | ) | |||||||||||||||||||||||||||||
BRL | 1,056 | 01/04/27 | 6.529%(T) | 1 Day BROIS(2)(T) | — | (41,495 | ) | (41,495 | ) | |||||||||||||||||||||||||||||
BRL | 1,885 | 01/04/27 | 7.745%(T) | 1 Day BROIS(1)(T) | — | 61,818 | 61,818 | |||||||||||||||||||||||||||||||
BRL | 1,366 | 01/04/27 | 8.020%(T) | 1 Day BROIS(2)(T) | — | (43,299 | ) | (43,299 | ) | |||||||||||||||||||||||||||||
BRL | 1,954 | 01/04/27 | 8.565%(T) | 1 Day BROIS(2)(T) | — | (50,427 | ) | (50,427 | ) | |||||||||||||||||||||||||||||
BRL | 744 | 01/04/27 | 9.300%(T) | 1 Day BROIS(1)(T) | — | 15,177 | 15,177 | |||||||||||||||||||||||||||||||
BRL | 1,788 | 01/04/27 | 10.250%(T) | 1 Day BROIS(1)(T) | — | 20,574 | 20,574 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 31
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Interest rate swap agreements outstanding at April 30, 2022 (continued):
Notional Amount (000)# | Termination Date | Fixed Rate | Floating Rate | Value at Trade Date | Value at April 30, 2022 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||||
Centrally Cleared Interest Rate Swap Agreements (cont’d.): |
| |||||||||||||||||||||||||||||||||||||
BRL | 888 | 01/04/27 | 10.490%(T) | 1 Day BROIS(1)(T) | $ | 4,457 | $ | 8,536 | $ | 4,079 | ||||||||||||||||||||||||||||
BRL | 9,578 | 01/04/27 | 11.085%(T) | 1 Day BROIS(1)(T) | 3,086 | 52,261 | 49,175 | |||||||||||||||||||||||||||||||
BRL | 2,688 | 01/04/27 | 11.660%(T) | 1 Day BROIS(2)(T) | — | (1,215 | ) | (1,215 | ) | |||||||||||||||||||||||||||||
BRL | 1,948 | 01/04/27 | 11.680%(T) | 1 Day BROIS(2)(T) | 1,773 | (535 | ) | (2,308 | ) | |||||||||||||||||||||||||||||
BRL | 1,688 | 01/04/27 | 11.755%(T) | 1 Day BROIS(2)(T) | — | 4,224 | 4,224 | |||||||||||||||||||||||||||||||
BRL | 3,244 | 01/04/27 | 12.000%(T) | 1 Day BROIS(1)(T) | — | (8,887 | ) | (8,887 | ) | |||||||||||||||||||||||||||||
BRL | 1,601 | 01/04/27 | 12.200%(T) | 1 Day BROIS(2)(T) | — | 11,161 | 11,161 | |||||||||||||||||||||||||||||||
CLP | 268,200 | 07/12/26 | 3.505%(S) | 1 Day CLOIS(2)(S) | — | (40,785 | ) | (40,785 | ) | |||||||||||||||||||||||||||||
CLP | 585,130 | 03/11/27 | 6.440%(S) | 1 Day CLOIS(1)(S) | 6,814 | 8,064 | 1,250 | |||||||||||||||||||||||||||||||
CLP | 310,290 | 06/15/27 | 6.775%(S) | 1 Day CLOIS(1)(S) | — | (1,955 | ) | (1,955 | ) | |||||||||||||||||||||||||||||
CLP | 310,830 | 06/15/27 | 6.790%(S) | 1 Day CLOIS(1)(S) | — | (2,191 | ) | (2,191 | ) | |||||||||||||||||||||||||||||
COP | 950,000 | 12/12/23 | 5.530%(Q) | 1 Day COOIS(2)(Q) | — | (10,824 | ) | (10,824 | ) | |||||||||||||||||||||||||||||
COP | 2,234,000 | 02/11/27 | 7.460%(Q) | 1 Day COOIS(1)(Q) | 2,368 | 23,885 | 21,517 | |||||||||||||||||||||||||||||||
COP | 736,000 | 02/14/27 | 7.640%(Q) | 1 Day COOIS(1)(Q) | — | 6,547 | 6,547 | |||||||||||||||||||||||||||||||
COP | 2,492,950 | 02/14/27 | 7.640%(Q) | 1 Day COOIS(1)(Q) | 499 | 22,175 | 21,676 | |||||||||||||||||||||||||||||||
COP | 1,694,000 | 02/14/27 | 7.650%(Q) | 1 Day COOIS(1)(Q) | — | 14,890 | 14,890 | |||||||||||||||||||||||||||||||
COP | 733,000 | 03/29/27 | 8.810%(Q) | 1 Day COOIS(1)(Q) | — | (1,455 | ) | (1,455 | ) | |||||||||||||||||||||||||||||
COP | 1,898,600 | 06/15/27 | 8.230%(Q) | 1 Day COOIS(1)(Q) | (3,136 | ) | 10,364 | 13,500 | ||||||||||||||||||||||||||||||
COP | 211,800 | 11/09/31 | 6.650%(Q) | 1 Day COOIS(2)(Q) | — | (6,509 | ) | (6,509 | ) | |||||||||||||||||||||||||||||
CZK | 48,650 | 06/15/24 | 5.850%(A) | 6 Month PRIBOR(1)(S) | — | (4,524 | ) | (4,524 | ) | |||||||||||||||||||||||||||||
CZK | 6,507 | 06/15/31 | 1.730%(A) | 6 Month PRIBOR(2)(S) | — | (57,637 | ) | (57,637 | ) | |||||||||||||||||||||||||||||
CZK | 6,085 | 10/08/31 | 2.450%(A) | 6 Month PRIBOR(2)(S) | (6,611 | ) | (38,463 | ) | (31,852 | ) | ||||||||||||||||||||||||||||
CZK | 6,070 | 01/27/32 | 3.445%(A) | 6 Month PRIBOR(2)(S) | — | (20,776 | ) | (20,776 | ) | |||||||||||||||||||||||||||||
HUF | 157,860 | 09/03/26 | 2.660%(A) | 6 Month BUBOR(1)(S) | 5,523 | 69,994 | 64,471 | |||||||||||||||||||||||||||||||
HUF | 150,000 | 03/17/27 | 6.250%(A) | 6 Month BUBOR(1)(S) | — | 17,604 | 17,604 | |||||||||||||||||||||||||||||||
KRW | 911,165 | 01/07/27 | 2.178%(Q) | 3 Month KWCDC(2)(Q) | (17,739 | ) | (27,220 | ) | (9,481 | ) | ||||||||||||||||||||||||||||
KRW | 500,000 | 06/15/27 | 2.410%(Q) | 3 Month KWCDC(2)(Q) | (9,885 | ) | (12,241 | ) | (2,356 | ) | ||||||||||||||||||||||||||||
MXN | 21,120 | 04/29/24 | 9.220%(M) | 28 Day Mexican Interbank Rate(1)(M) | — | (189 | ) | (189 | ) | |||||||||||||||||||||||||||||
MXN | 7,470 | 05/02/25 | 5.285%(M) | 28 Day Mexican Interbank Rate(2)(M) | 12 | (38,777 | ) | (38,789 | ) | |||||||||||||||||||||||||||||
MXN | 14,446 | 03/11/26 | 4.845%(M) | 28 Day Mexican Interbank Rate(2)(M) | (11,906 | ) | (101,737 | ) | (89,831 | ) | ||||||||||||||||||||||||||||
MXN | 9,180 | 07/14/26 | 6.465%(M) | 28 Day Mexican Interbank Rate(2)(M) | (22 | ) | (42,683 | ) | (42,661 | ) | ||||||||||||||||||||||||||||
MXN | 4,160 | 07/15/26 | 6.430%(M) | 28 Day Mexican Interbank Rate(2)(M) | (8 | ) | (19,603 | ) | (19,595 | ) |
See Notes to Financial Statements.
32
Interest rate swap agreements outstanding at April 30, 2022 (continued):
Notional Amount (000)# | Termination Date | Fixed Rate | Floating Rate | Value at Trade Date | Value at April 30, 2022 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||||
Centrally Cleared Interest Rate Swap Agreements (cont’d.): |
| |||||||||||||||||||||||||||||||||||||
MXN | 11,480 | 04/26/27 | 9.100%(M) | 28 Day Mexican Interbank Rate(1)(M) | $ | — | $ | (156 | ) | $ | (156 | ) | ||||||||||||||||||||||||||
MXN | 11,480 | 06/09/27 | 8.369%(M) | 28 Day Mexican Interbank Rate(1)(M) | — | 17,581 | 17,581 | |||||||||||||||||||||||||||||||
MXN | 3,490 | 06/09/27 | 8.543%(M) | 28 Day Mexican Interbank Rate(2)(M) | (1,639 | ) | (4,156 | ) | (2,517 | ) | ||||||||||||||||||||||||||||
MXN | 10,260 | 01/28/30 | 6.640%(M) | 28 Day Mexican Interbank Rate(2)(M) | (50,159 | ) | (66,381 | ) | (16,222 | ) | ||||||||||||||||||||||||||||
MXN | 4,450 | 07/24/31 | 6.780%(M) | 28 Day Mexican Interbank Rate(2)(M) | — | (30,023 | ) | (30,023 | ) | |||||||||||||||||||||||||||||
MXN | 5,830 | 04/19/32 | 8.940%(M) | 28 Day Mexican Interbank Rate(2)(M) | — | (727 | ) | (727 | ) | |||||||||||||||||||||||||||||
PLN | 2,450 | 10/05/23 | 1.350%(A) | 6 Month WIBOR(1)(S) | — | 38,706 | 38,706 | |||||||||||||||||||||||||||||||
PLN | 2,450 | 10/05/23 | 1.375%(A) | 6 Month WIBOR(1)(S) | — | 38,446 | 38,446 | |||||||||||||||||||||||||||||||
PLN | 2,360 | 12/15/23 | 2.400%(A) | 6 Month WIBOR(1)(S) | — | 36,678 | 36,678 | |||||||||||||||||||||||||||||||
PLN | 2,700 | 07/24/24 | 1.798%(A) | 6 Month WIBOR(2)(S) | — | (57,947 | ) | (57,947 | ) | |||||||||||||||||||||||||||||
PLN | 930 | 02/01/25 | 4.300%(A) | 6 Month WIBOR(1)(S) | — | 11,896 | 11,896 | |||||||||||||||||||||||||||||||
PLN | 2,730 | 09/08/25 | 0.637%(A) | 6 Month WIBOR(2)(S) | (2,483 | ) | (108,398 | ) | (105,915 | ) | ||||||||||||||||||||||||||||
PLN | 4,650 | 04/07/27 | 5.405%(A) | 6 Month WIBOR(1)(S) | — | 41,640 | 41,640 | |||||||||||||||||||||||||||||||
PLN | 16,023 | 06/15/27 | 4.970%(A) | 6 Month WIBOR(1)(S) | 50,072 | 221,178 | 171,106 | |||||||||||||||||||||||||||||||
PLN | 700 | 06/17/31 | 1.745%(A) | 6 Month WIBOR(1)(S) | — | 44,499 | 44,499 | |||||||||||||||||||||||||||||||
ZAR | 19,130 | 04/21/24 | 6.105%(Q) | 3 Month JIBAR(1)(Q) | 59 | 4,985 | 4,926 | |||||||||||||||||||||||||||||||
ZAR | 19,160 | 04/21/24 | 6.109%(Q) | 3 Month JIBAR(1)(Q) | 59 | 4,901 | 4,842 | |||||||||||||||||||||||||||||||
ZAR | 19,460 | 04/28/24 | 6.275%(Q) | 3 Month JIBAR(1)(Q) | 62 | 1,889 | 1,827 | |||||||||||||||||||||||||||||||
ZAR | 19,790 | 05/03/24 | 6.310%(Q) | 3 Month JIBAR(1)(Q) | — | 1,687 | 1,687 | |||||||||||||||||||||||||||||||
ZAR | 5,789 | 08/21/25 | 4.978%(Q) | 3 Month JIBAR(2)(Q) | (10,444 | ) | (20,510 | ) | (10,066 | ) | ||||||||||||||||||||||||||||
ZAR | 29,133 | 03/16/27 | 6.960%(Q) | 3 Month JIBAR(1)(Q) | 7,304 | 27,639 | 20,335 | |||||||||||||||||||||||||||||||
ZAR | 3,244 | 04/13/31 | 7.530%(Q) | 3 Month JIBAR(2)(Q) | (43 | ) | (10,418 | ) | (10,375 | ) | ||||||||||||||||||||||||||||
ZAR | 6,680 | 07/13/31 | 7.415%(Q) | 3 Month JIBAR(1)(Q) | 93 | 26,049 | 25,956 | |||||||||||||||||||||||||||||||
ZAR | 6,610 | 09/27/31 | 7.493%(Q) | 3 Month JIBAR(1)(Q) | 1,662 | 24,150 | 22,488 | |||||||||||||||||||||||||||||||
ZAR | 4,635 | 01/04/32 | 7.595%(Q) | 3 Month JIBAR(1)(Q) | 5,064 | 16,078 | 11,014 | |||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
$ | (20,498 | ) | $ | (172,380 | ) | $ | (151,882 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
Notional Amount (000)# | Termination Date | Fixed Rate | Floating Rate | Fair Value | Upfront Premiums Paid(Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||||||||||||||||||
OTC Interest Rate Swap Agreements: | ||||||||||||||||||||||||||||||||||||||||||
MYR | 2,800 | 06/15/27 | 3.736%(Q) | 3 Month KLIBOR(1)(Q) | $ | 5,634 | $ | — | $ | 5,634 | Citibank, N.A. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 33
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Interest rate swap agreements outstanding at April 30, 2022 (continued):
Notional Amount (000)# | Termination Date | Fixed Rate | Floating Rate | Fair Value | Upfront Premiums Paid(Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||||||||||||||||||
OTC Interest Rate Swap Agreements (cont’d.): | ||||||||||||||||||||||||||||||||||||||||||
MYR | 2,800 | 06/15/27 | 3.790%(Q) | 3 Month KLIBOR(1)(Q) | $ | 4,060 | $ | — | $ | 4,060 | Bank of America, N.A. | |||||||||||||||||||||||||||||||
RUB | 21,000 | 12/15/26 | 7.995%(A) | 3 Month MosPRIME(2)(Q) | (39,835 | ) | — | (39,835 | ) | Morgan Stanley & Co. International PLC | ||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||
$ | (30,141 | ) | $ | — | $ | (30,141 | ) | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
(1) | The Fund pays the fixed rate and receives the floating rate. |
(2) | The Fund pays the floating rate and receives the fixed rate. |
Balances Reported in the Statement of Assets and Liabilities for OTC Swap Agreements:
| Premiums Paid | Premiums Received | Unrealized Appreciation | Unrealized Depreciation | ||||
OTC Swap Agreements | $— | $— | $9,694 | $(39,835) |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||||||||
Citigroup Global Markets, Inc. | $ | 550,000 | $ | — | ||||||
J.P. Morgan Securities LLC | 170,000 | — | ||||||||
|
|
|
| |||||||
Total | $ | 720,000 | $ | — | ||||||
|
|
|
|
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
34
The following is a summary of the inputs used as of April 30, 2022 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Corporate Bonds | ||||||||||||
Brazil | $ | — | $ | 168,921 | $— | |||||||
Jamaica | — | 210,667 | — | |||||||||
Malaysia | — | 185,205 | — | |||||||||
Mexico | — | 1,006,621 | — | |||||||||
Russia | — | 36,580 | — | |||||||||
South Africa | — | 394,947 | — | |||||||||
Supranational Bank | — | 784,135 | — | |||||||||
Foreign Treasury Obligation | ||||||||||||
Brazil | — | 218,613 | — | |||||||||
Sovereign Bonds | ||||||||||||
Angola | — | 212,981 | — | |||||||||
Argentina | — | 111,432 | — | |||||||||
Brazil | — | 1,647,034 | — | |||||||||
Chile | — | 840,405 | — | |||||||||
China | — | 4,333,127 | — | |||||||||
Colombia | — | 1,811,904 | — | |||||||||
Czech Republic | — | 1,139,273 | — | |||||||||
Dominican Republic | — | 146,493 | — | |||||||||
Gabon | — | 198,421 | — | |||||||||
Hungary | — | 1,498,785 | — | |||||||||
Indonesia | — | 5,004,350 | — | |||||||||
Ivory Coast | — | 108,579 | — | |||||||||
Malaysia | — | 4,920,850 | — | |||||||||
Mexico | — | 1,846,790 | — | |||||||||
Nigeria | — | 198,764 | — | |||||||||
Pakistan | — | 556,095 | — | |||||||||
Peru | — | 1,220,004 | — | |||||||||
Philippines | — | 104,548 | — | |||||||||
Poland | — | 2,215,200 | — | |||||||||
Romania | — | 1,071,464 | — | |||||||||
Russia | — | 119,276 | — | |||||||||
Senegal | — | 99,117 | — | |||||||||
Serbia | — | 131,466 | — | |||||||||
South Africa | — | 6,384,217 | — | |||||||||
Thailand | — | 2,290,205 | — | |||||||||
Turkey | — | 25,864 | — | |||||||||
Ukraine | — | 125,563 | — | |||||||||
Uruguay | — | 122,600 | — | |||||||||
Short-Term Investments | ||||||||||||
Unaffiliated Fund | 2,083,470 | — | — | |||||||||
Options Purchased | — | 143,689 | — | |||||||||
|
|
|
| |||||||||
Total | $ | 2,083,470 | $ | 41,634,185 | $— | |||||||
|
|
|
|
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 35
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | ||||||||||
Options Written | $ | — | $ | (158,425 | ) | $— | ||||
|
|
|
|
| ||||||
Other Financial Instruments* | ||||||||||
Assets | ||||||||||
Futures Contracts | $ | 97,368 | $ | — | $— | |||||
OTC Forward Foreign Currency Exchange Contracts | — | 1,162,426 | — | |||||||
OTC Cross Currency Exchange Contracts | — | 2,174 | — | |||||||
Centrally Cleared Interest Rate Swap Agreements | — | 866,243 | — | |||||||
OTC Interest Rate Swap Agreements | — | 9,694 | — | |||||||
|
|
|
| |||||||
Total | $ | 97,368 | $ | 2,040,537 | $— | |||||
|
|
|
|
| ||||||
Liabilities | ||||||||||
OTC Forward Foreign Currency Exchange Contracts | $ | — | $ | (875,597 | ) | $— | ||||
OTC Cross Currency Exchange Contracts | — | (248 | ) | — | ||||||
Centrally Cleared Interest Rate Swap Agreements | — | (1,018,125 | ) | — | ||||||
OTC Interest Rate Swap Agreement | — | (39,835 | ) | — | ||||||
|
|
|
| |||||||
Total | $ | — | $ | (1,933,805 | ) | $— | ||||
|
|
|
|
|
* | 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, 2022 were as follows:
Sovereign Bonds | 82.7 | % | ||
Unaffiliated Fund | 4.5 | |||
Telecommunications | 1.9 | |||
Multi-National | 1.7 | |||
Oil & Gas | 0.7 | |||
Foreign Treasury Obligation | 0.5 | |||
Chemicals | 0.4 | |||
Electric | 0.4 | |||
Lodging | 0.4 |
Retail | 0.4 | % | ||
Options Purchased | 0.3 | |||
Investment Companies | 0.1 | |||
|
| |||
94.0 | ||||
Options Written | (0.3 | ) | ||
Other assets in excess of liabilities | 6.3 | |||
|
| |||
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 types of risk associated with these derivative instruments are foreign exchange contracts risk and interest rate contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
See Notes to Financial Statements.
36
Fair values of derivative instruments as of April 30, 2022 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 | ||||||||
Foreign exchange contracts | Unaffiliated investments | $ | 143,689 | Options written outstanding, at value | $ | 158,425 | ||||||
Foreign exchange contracts | Unrealized appreciation on OTC cross currency exchange contracts | 2,174 | Unrealized depreciation on OTC cross currency exchange contracts | 248 | ||||||||
Foreign exchange contracts | Unrealized appreciation on OTC forward foreign currency exchange contracts | 1,162,426 | Unrealized depreciation on OTC forward foreign currency exchange contracts | 875,597 | ||||||||
Interest rate contracts | Due from/to broker-variation margin futures | 97,368 | * | — | — | |||||||
Interest rate contracts | Due from/to broker-variation margin swaps | 866,243 | * | Due from/to broker-variation margin swaps | 1,018,125 | * | ||||||
Interest rate contracts | Unrealized appreciation on OTC swap agreements | 9,694 | Unrealized depreciation on OTC swap agreements | 39,835 | ||||||||
|
|
|
| |||||||||
$ | 2,281,594 | $ | 2,092,230 | |||||||||
|
|
|
|
* | 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, 2022 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |||||||||||||||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Options Purchased(1) | Options Written | Futures | Forward & Cross | Swaps | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 259,346 | $ | (271,881 | ) | $ | — | $ | (668,598 | ) | $ | — | |||||||||||||||||||||||||
Interest rate contracts | — | — | 108,633 | — | 190,854 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total | $ | 259,346 | $ | (271,881 | ) | $ | 108,633 | $ | (668,598 | ) | $ | 190,854 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 37
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Options Purchased(2) | Options Written | Futures | Forward & Cross Currency Exchange Contracts | Swaps | |||||||||||||||||||
Foreign exchange contracts | $ | (393 | ) | $ | (25,590 | ) | $ | — | $ | 405,958 | $ | — | ||||||||||||
Interest rate contracts | — | — | 52,321 | — | (50,104 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | (393 | ) | $ | (25,590 | ) | $ | 52,321 | $ | 405,958 | $ | (50,104 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
(2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2022, the Fund’s average volume of derivative activities is as follows:
Derivative Contract Type | Average Volume of Derivative Activities* | |
Options Purchased (1) | $ 119,400 | |
Options Written (2) | 9,779,092 | |
Futures Contracts - Short Positions (2) | 3,524,122 | |
Forward Foreign Currency Exchange Contracts - Purchased (3) | 35,862,736 | |
Forward Foreign Currency Exchange Contracts - Sold (3) | 36,570,811 | |
Cross Currency Exchange Contracts (4) | 232,057 | |
Interest Rate Swap Agreements (2) | 44,439,274 |
* | Average volume is based on average quarter end balances as noted for the six months ended April 30, 2022. |
(1) | Cost. |
(2) | Notional Amount in USD. |
(3) | Value at Settlement Date. |
(4) | Value at Trade Date. |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives where the legal right to set-off exists is presented in the summary below.
Offsetting of OTC derivative assets and liabilities:
Counterparty | Gross Amounts of | Gross Amounts of | Net Amounts of | Collateral | Net Amount | |||||||||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 15,328 | $ | — | $ | 15,328 | $ | — | $ | 15,328 | ||||||||||||||||||||||||||||||
Barclays Bank PLC | 133,234 | (75,495 | ) | 57,739 | — | 57,739 | ||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | 35,287 | (15,238 | ) | 20,049 | — | 20,049 | ||||||||||||||||||||||||||||||||||
Citibank, N.A. | 315,159 | (254,071 | ) | 61,088 | — | 61,088 |
See Notes to Financial Statements.
38
Counterparty | Gross Amounts of | Gross Amounts of | Net Amounts of | Collateral | Net Amount | |||||||||||||||||||||||||||||||||||
Credit Suisse International | $ | 3,914 | $ | — | $ | 3,914 | $ | — | $ | 3,914 | ||||||||||||||||||||||||||||||
Deutsche Bank AG | 17,103 | — | 17,103 | — | 17,103 | |||||||||||||||||||||||||||||||||||
Goldman Sachs International | 145,235 | (103,341 | ) | 41,894 | — | 41,894 | ||||||||||||||||||||||||||||||||||
HSBC Bank PLC | 41,027 | (186,193 | ) | (145,166 | ) | 145,166 | — | |||||||||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. | 344,213 | (268,852 | ) | 75,361 | — | 75,361 | ||||||||||||||||||||||||||||||||||
Morgan Stanley & Co. International PLC | 202,582 | (124,854 | ) | 77,728 | — | 77,728 | ||||||||||||||||||||||||||||||||||
Standard | ||||||||||||||||||||||||||||||||||||||||
Chartered Bank | 10,293 | (9,851 | ) | 442 | — | 442 | ||||||||||||||||||||||||||||||||||
UBS AG | 54,608 | (36,210 | ) | 18,398 | — | 18,398 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 1,317,983 | $ | (1,074,105 | ) | $ | 243,878 | $ | 145,166 | $ | 389,044 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
(2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions and the Fund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 39
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Assets |
| |||
Unaffiliated investments (cost $52,817,285) | $ | 43,717,655 | ||
Foreign currency, at value (cost $164,332) | 160,968 | |||
Cash segregated for counterparty - OTC | 280,000 | |||
Receivable for investments sold | 1,839,078 | |||
Unrealized appreciation on OTC forward foreign currency exchange contracts | 1,162,426 | |||
Dividends and interest receivable | 811,608 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 720,000 | |||
Tax reclaim receivable | 67,226 | |||
Due from broker—variation margin swaps | 57,827 | |||
Receivable for Fund shares sold | 21,706 | |||
Unrealized appreciation on OTC swap agreements | 9,694 | |||
Due from broker—variation margin futures | 3,784 | |||
Unrealized appreciation on OTC cross currency exchange contracts | 2,174 | |||
Prepaid expenses and other assets | 1,850 | |||
|
| |||
Total Assets | 48,855,996 | |||
|
| |||
Liabilities |
| |||
Payable for Fund shares purchased | 1,028,768 | |||
Unrealized depreciation on OTC forward foreign currency exchange contracts | 875,597 | |||
Payable for investments purchased | 167,709 | |||
Options written outstanding, at value (premiums received $132,823) | 158,425 | |||
Accrued expenses and other liabilities | 79,021 | |||
Unrealized depreciation on OTC swap agreements | 39,835 | |||
Management fee payable | 4,433 | |||
Affiliated transfer agent fee payable | 1,015 | |||
Distribution fee payable | 699 | |||
Directors’ fees payable | 697 | |||
Unrealized depreciation on OTC cross currency exchange contracts | 248 | |||
|
| |||
Total Liabilities | 2,356,447 | |||
|
| |||
Net Assets | $ | 46,499,549 | ||
|
| |||
| ||||
Net assets were comprised of: | ||||
Common stock, at par | $ | 97 | ||
Paid-in capital in excess of par | 63,492,488 | |||
Total distributable earnings (loss) | (16,993,036 | ) | ||
|
| |||
Net assets, April 30, 2022 | $ | 46,499,549 | ||
|
|
See Notes to Financial Statements.
40
Class A | ||||
Net asset value and redemption price per share, | $ | 4.75 | ||
Maximum sales charge (3.25% of offering price) | 0.16 | |||
|
| |||
Maximum offering price to public | $ | 4.91 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | $ | 4.78 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | $ | 4.79 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | $ | 4.79 | ||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 41
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
Net Investment Income (Loss) | ||||
Income | ||||
Interest income (net of $62,037 foreign withholding tax) | $ | 1,342,171 | ||
Income from securities lending, net (including affiliated income of $148) | 604 | |||
Unaffiliated dividend income | 579 | |||
Affiliated dividend income | 268 | |||
|
| |||
Total income | 1,343,622 | |||
|
| |||
Expenses | ||||
Management fee | 177,713 | |||
Distribution fee(a) | 4,693 | |||
Custodian and accounting fees | 42,130 | |||
Transfer agent’s fees and expenses (including affiliated expense of $2,310)(a) | 40,376 | |||
Audit fee | 31,836 | |||
Registration fees(a) | 16,747 | |||
Legal fees and expenses | 9,797 | |||
Shareholders’ reports | 6,372 | |||
Directors’ fees | 4,784 | |||
Miscellaneous | 10,395 | |||
|
| |||
Total expenses | 344,843 | |||
Less: Fee waiver and/or expense reimbursement(a) | (141,273 | ) | ||
|
| |||
Net expenses | 203,570 | |||
|
| |||
Net investment income (loss) | 1,140,052 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(114)) | (276,347 | ) | ||
Futures transactions | 108,633 | |||
Forward currency contract transactions | (668,598 | ) | ||
Options written transactions | (271,881 | ) | ||
Swap agreement transactions | 190,854 | |||
Foreign currency transactions | (926,716 | ) | ||
|
| |||
(1,844,055 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $21) | (6,084,408 | ) | ||
Futures | 52,321 | |||
Forward and cross currency contracts | 405,958 | |||
Options written | (25,590 | ) | ||
Swap agreements | (50,104 | ) | ||
Foreign currencies | (34,519 | ) | ||
|
| |||
(5,736,342 | ) | |||
|
| |||
Net gain (loss) on investment and foreign currency transactions | (7,580,397 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (6,440,345 | ) | |
|
|
See Notes to Financial Statements.
42
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 3,859 | 834 | — | — | ||||||||||||
Transfer agent’s fees and expenses | 2,561 | 386 | 37,342 | 87 | ||||||||||||
Registration fees | 4,792 | 2,685 | 5,345 | 3,925 | ||||||||||||
Fee waiver and/or expense reimbursement | (9,784 | ) | (3,201 | ) | (119,421 | ) | (8,867 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 43
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | |||||||||||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||||||||
Operations | ||||||||||||||||||||||
Net investment income (loss) | $ | 1,140,052 | $ | 2,712,736 | ||||||||||||||||||
Net realized gain (loss) on investment and foreign currency transactions | (1,844,055 | ) | (14,056 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (5,736,342 | ) | (974,439 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (6,440,345 | ) | 1,724,241 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||
Dividends and Distributions | ||||||||||||||||||||||
Distributions from distributable earnings | ||||||||||||||||||||||
Class A | (60,355 | ) | (171,094 | ) | ||||||||||||||||||
Class C | (2,615 | ) | (11,953 | ) | ||||||||||||||||||
Class Z | (1,044,405 | ) | (2,832,895 | ) | ||||||||||||||||||
Class R6 | (55,181 | ) | (77,566 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||||
(1,162,556 | ) | (3,093,508 | ) | |||||||||||||||||||
|
|
|
| |||||||||||||||||||
Fund share transactions (Net of share conversions) | ||||||||||||||||||||||
Net proceeds from shares sold | 11,973,604 | 18,589,941 | ||||||||||||||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,162,124 | 3,084,833 | ||||||||||||||||||||
Cost of shares purchased | (15,016,625 | ) | (26,083,180 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (1,880,897 | ) | (4,408,406 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||||
Total increase (decrease) | (9,483,798 | ) | (5,777,673 | ) | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||
Beginning of period | 55,983,347 | 61,761,020 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
End of period | $ | 46,499,549 | $ | 55,983,347 | ||||||||||||||||||
|
|
|
|
See Notes to Financial Statements.
44
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.45 | $5.57 | $6.07 | $5.52 | $6.40 | $6.44 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.10 | 0.22 | 0.24 | 0.30 | 0.33 | 0.35 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.70) | (0.09 | ) | (0.47 | ) | 0.57 | (0.86 | ) | (0.02 | ) | ||||||||||||||
Total from investment operations | (0.60) | 0.13 | (0.23 | ) | 0.87 | (0.53 | ) | 0.33 | ||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Dividends from net investment income* | (0.10) | (0.25 | ) | - | (0.31 | ) | - | (0.15 | ) | |||||||||||||||
Tax return of capital distributions | - | - | (0.27 | ) | (0.01 | ) | (0.35 | ) | (0.22 | ) | ||||||||||||||
Total dividends and distributions | (0.10) | (0.25 | ) | (0.27 | ) | (0.32 | ) | (0.35 | ) | (0.37 | ) | |||||||||||||
Net asset value, end of period | $4.75 | $5.45 | $5.57 | $6.07 | $5.52 | $6.40 | ||||||||||||||||||
Total Return(b): | (11.14)% | 2.19 | % | (3.75 | )% | 16.14 | % | (8.68 | )% | 5.36 | % | |||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $2,737 | $3,489 | $3,853 | $3,692 | $3,146 | $3,085 | ||||||||||||||||||
Average net assets (000) | $3,113 | $3,950 | $3,518 | $3,223 | $4,105 | $3,639 | ||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.13% | (e) | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 1.76% | (e) | 1.67 | % | 2.04 | % | 2.03 | % | 2.16 | % | 2.15 | % | ||||||||||||
Net investment income (loss) | 3.82% | (e) | 3.75 | % | 4.24 | % | 5.13 | % | 5.34 | % | 5.42 | % | ||||||||||||
Portfolio turnover rate(f) | 18% | 35 | % | 64 | % | 69 | % | 113 | % | 186 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 45
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.49 | $5.61 | $6.11 | $5.56 | $6.46 | $6.49 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.18 | 0.20 | 0.26 | 0.29 | 0.30 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.71) | (0.09 | ) | (0.47 | ) | 0.57 | (0.88 | ) | (0.01 | ) | ||||||||||||||
Total from investment operations | (0.63) | 0.09 | (0.27 | ) | 0.83 | (0.59 | ) | 0.29 | ||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Dividends from net investment income* | (0.08) | (0.21 | ) | - | (0.27 | ) | - | (0.13 | ) | |||||||||||||||
Tax return of capital distributions | - | - | (0.23 | ) | (0.01 | ) | (0.31 | ) | (0.19 | ) | ||||||||||||||
Total dividends and distributions | (0.08) | (0.21 | ) | (0.23 | ) | (0.28 | ) | (0.31 | ) | (0.32 | ) | |||||||||||||
Net asset value, end of period | $4.78 | $5.49 | $5.61 | $6.11 | $5.56 | $6.46 | ||||||||||||||||||
Total Return(b): | (11.56)% | 1.44 | % | (4.41 | )% | 15.18 | % | (9.61 | )% | 4.66 | % | |||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $146 | $190 | $466 | $579 | $538 | $718 | ||||||||||||||||||
Average net assets (000) | $168 | $331 | $484 | $566 | $672 | $649 | ||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.88% | (e) | 1.88 | % | 1.88 | % | 1.88 | % | 1.88 | % | 1.88 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 5.72% | (e) | 4.60 | % | 5.82 | % | 4.82 | % | 4.89 | % | 2.88 | % | ||||||||||||
Net investment income (loss) | 3.05% | (e) | 3.00 | % | 3.54 | % | 4.37 | % | 4.56 | % | 4.63 | % | ||||||||||||
Portfolio turnover rate(f) | 18% | 35 | % | 64 | % | 69 | % | 113 | % | 186 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
46
Class Z Shares | ||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.50 | $5.62 | $6.13 | $5.57 | $6.48 | $6.50 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.24 | 0.27 | 0.32 | 0.34 | 0.36 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.71) | (0.08 | ) | (0.48 | ) | 0.58 | (0.88 | ) | 0.01 | |||||||||||||||
Total from investment operations | (0.60) | 0.16 | (0.21 | ) | 0.90 | (0.54 | ) | 0.37 | ||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Dividends from net investment income* | (0.11) | (0.28 | ) | - | (0.33 | ) | - | (0.16 | ) | |||||||||||||||
Tax return of capital distributions | - | - | (0.30 | ) | (0.01 | ) | (0.37 | ) | (0.23 | ) | ||||||||||||||
Total dividends and distributions | (0.11) | (0.28 | ) | (0.30 | ) | (0.34 | ) | (0.37 | ) | (0.39 | ) | |||||||||||||
Net asset value, end of period | $4.79 | $5.50 | $5.62 | $6.13 | $5.57 | $6.48 | ||||||||||||||||||
Total Return(b): | (11.02)% | 2.63 | % | (3.45 | )% | 16.50 | % | (8.83 | )% | 5.85 | % | |||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $41,818 | $49,067 | $57,392 | $68,101 | $55,000 | $27,020 | ||||||||||||||||||
Average net assets (000) | $49,327 | $59,794 | $56,989 | $63,219 | $49,644 | $26,437 | ||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.72% | (e) | 0.72 | % | 0.74 | % | 0.88 | % | 0.88 | % | 0.88 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 1.21% | (e) | 1.16 | % | 1.27 | % | 1.31 | % | 1.41 | % | 1.88 | % | ||||||||||||
Net investment income (loss) | 4.19% | (e) | 4.16 | % | 4.72 | % | 5.35 | % | 5.50 | % | 5.58 | % | ||||||||||||
Portfolio turnover rate(f) | 18% | 35 | % | 64 | % | 69 | % | 113 | % | 186 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund 47
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.50 | $5.62 | $6.12 | $5.56 | $6.47 | $6.50 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.25 | 0.27 | 0.31 | 0.36 | 0.37 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.71) | (0.09 | ) | (0.47 | ) | 0.58 | (0.89 | ) | - | (b) | ||||||||||||||
Total from investment operations | (0.60) | 0.16 | (0.20 | ) | 0.89 | (0.53 | ) | 0.37 | ||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Dividends from net investment income* | (0.11) | (0.28 | ) | - | (0.32 | ) | - | (0.16 | ) | |||||||||||||||
Tax return of capital distributions | - | - | (0.30 | ) | (0.01 | ) | (0.38 | ) | (0.24 | ) | ||||||||||||||
Total dividends and distributions | (0.11) | (0.28 | ) | (0.30 | ) | (0.33 | ) | (0.38 | ) | (0.40 | ) | |||||||||||||
Net asset value, end of period | $4.79 | $5.50 | $5.62 | $6.12 | $5.56 | $6.47 | ||||||||||||||||||
Total Return(c): | (10.99)% | 2.70 | % | (3.24 | )% | 16.41 | % | (8.63 | )% | 5.82 | % | |||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $1,799 | $3,237 | $50 | $29 | $1 | $1 | ||||||||||||||||||
Average net assets (000) | $2,526 | $1,613 | $42 | $15 | $1 | $1 | ||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.65% | (f) | 0.65 | % | 0.67 | % | 0.88 | % | 0.88 | % | 0.88 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 1.36% | (f) | 1.63 | % | 40.50 | % | 92.22 | % | 1,595.87 | % | 1.83 | % | ||||||||||||
Net investment income (loss) | 4.30% | (f) | 4.27 | % | 4.64 | % | 5.20 | % | 5.73 | % | 5.73 | % | ||||||||||||
Portfolio turnover rate(g) | 18% | 35 | % | 64 | % | 69 | % | 113 | % | 186 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
48
Notes to Financial Statements (unaudited)
1. | Organization |
Prudential World Fund, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Emerging Markets Debt Local Currency Fund (the “Fund”), a series of the RIC. The Fund is classified as a non-diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is total return, through a combination of current income and capital appreciation.
2. | Accounting Policies |
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (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. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
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
PGIM Emerging Markets Debt Local Currency Fund 49
Notes to Financial Statements (unaudited) (continued)
securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
OTC and centrally cleared derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an
50
approved independent third-party vendor source. The Fund utilizes the market approach when quoted prices in broker-dealer markets are available but also includes consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuation date;
(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
PGIM Emerging Markets Debt Local Currency Fund 51
Notes to Financial Statements (unaudited) (continued)
fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations. Notwithstanding the above, the Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Forward and Cross Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Fund enters into forward currency contracts, as defined in the prospectus, in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency and to gain exposure to certain currencies. The contracts are valued daily at current forward exchange rates and any unrealized gain (loss) is included in net unrealized appreciation or depreciation on forward and cross currency contracts. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on forward and cross currency contract transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.
52
Options: The Fund purchased and/or wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates with respect to securities or financial instruments which the Fund currently owns or intends to purchase. The Fund may also use options to gain additional market exposure. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Fund realizes a gain (loss) to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Fund has realized a gain (loss). The difference between the premium and the amount received or paid at the closing of a purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain (loss) on written options is presented separately as net realized gain (loss) on options written transactions.
The Fund, as writer of an option, may have no control over whether the underlying securities or financial instruments may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. The Fund, as purchaser of an OTC option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts. With exchange-traded options contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.
When the Fund writes an option on a swap, an amount equal to any premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the written option on the swap. If a call option on a swap is exercised, the Fund becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put option on a swap is exercised, the Fund becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing options on swaps that expire or are exercised are treated as realized gains upon the expiration or exercise of such options on swaps. The risk associated with writing put and call options on swaps is that the Fund will be obligated to be party to a swap agreement if an option on a swap is exercised.
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
PGIM Emerging Markets Debt Local Currency Fund 53
Notes to Financial Statements (unaudited) (continued)
the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Swap Agreements: The Fund entered into certain types of swap agreements detailed in the disclosures below. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with a counterparty (“OTC-traded”) or through a central clearing facility, such as a registered exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.
Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objective. The Fund used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements
54
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.
The RIC, on behalf of the Fund, is a party to International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Schedule of Investments. Collateral pledged by the Fund is segregated by the Fund’s custodian and identified in the Schedule of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the Fund and the applicable counterparty. Collateral requirements are determined based on the Fund’s net position with each counterparty. Termination events applicable to the Fund may occur upon a decline in the Fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Fund’s counterparties to elect early termination could impact the Fund’s future derivative activity.
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such OTC derivative agreements include conditions which, when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any
PGIM Emerging Markets Debt Local Currency Fund 55
Notes to Financial Statements (unaudited) (continued)
election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
Short sales and OTC contracts, including forward foreign currency exchange contracts, swaps, forward rate agreements and written options involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities, if applicable. Such risks may be mitigated by engaging in master netting arrangements.
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. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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
56
differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |
Net Investment Income | Monthly | |
Short-Term Capital Gains | Annually | |
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. | Agreements |
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadvisers’ performance of such services.
The Manager has entered into a subadvisory agreement with PGIM, Inc., which provides subadvisory services to the Fund through its PGIM Fixed Income unit, and PGIM Limited (collectively the “subadviser”). The Manager pays for the services of subadvisers.
PGIM Emerging Markets Debt Local Currency Fund 57
Notes to Financial Statements (unaudited) (continued)
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |
0.650% on average daily net assets up to $1 billion; | 0.65% | |
0.630% on average daily net assets from $1 billion to $3 billion; | ||
0.610% on average daily net assets from $3 billion to $5 billion; | ||
0.600% on average daily net assets from $5 billion to $10 billion; | ||
0.590% on average daily net assets over $10 billion. |
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year. The expense limitations attributable to each class are as follows:
Class | Expense Limitations | |
A | 1.13% | |
C | 1.88 | |
Z | 0.72 | |
R6 | 0.65 |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
58
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. The distribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | ||
A | 0.25% | 0.25% | ||
C | 1.00 | 1.00 | ||
Z | N/A | N/A | ||
R6 | N/A | N/A |
For the reporting period ended April 30, 2022, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||
A | $4,550 | $— | ||
C | — | — |
PGIM Investments, PGIM, Inc., PGIM Limited and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. | Other Transactions with Affiliates |
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. 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 fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund 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. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
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
PGIM Emerging Markets Debt Local Currency Fund 59
Notes to Financial Statements (unaudited) (continued)
investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. | Portfolio Securities |
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
Cost of Purchases | Proceeds from Sales | |
$8,877,512 | $13,543,818 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2022, is presented as follows:
Value, Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, of Period | Income | |||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) | ||||||||||||||
$586,842 | $ 9,154,727 | $ 9,741,569 | $— | $ — | $— | — | $268 | |||||||
PGIM Institutional Money Market Fund(1)(b)(wa) | ||||||||||||||
219,262 | 1,454,555 | 1,673,724 | 21 | (114) | — | — | 148(2) | |||||||
$806,104 | $10,609,282 | $11,415,293 | $21 | $(114) | $— | $416 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. | Tax Information |
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Depreciation | |||
$53,571,158 | $2,612,187 | $(12,420,015) | $(9,807,828) |
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The GAAP 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, 2021 of approximately $5,321,000 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, 2021 are subject to such review.
7. | Capital and Ownership |
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximum front-end sales charge of 3.25%. Investors who purchase $500,000 or more of Class A shares and sell those shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1.00% on sales although these purchases are not subject to a front-end sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
The RIC is authorized to issue 10,225,000,000 shares of common stock, $0.00001 par value per share, 550,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
Class | Number of Shares | |
A | 10,000,000 | |
C | 50,000,000 | |
Z | 250,000,000 | |
T | 190,000,000 | |
R6 | 50,000,000 |
The Fund currently does not have any Class T shares outstanding.
PGIM Emerging Markets Debt Local Currency Fund 61
Notes to Financial Statements (unaudited) (continued)
As of April 30, 2022, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||
Z | 3,713,943 | 42.6% | ||
R6 | 193 | 0.1 |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||
Affiliated | 1 | 38.3% | ||
Unaffiliated | 3 | 52.6 |
Transactions in shares of common stock were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 59,880 | $ | 312,144 | |||||
Shares issued in reinvestment of dividends and distributions | 11,651 | 59,927 | ||||||
Shares purchased | (136,137 | ) | (718,614) | |||||
Net increase (decrease) in shares outstanding before conversion | (64,606 | ) | (346,543) | |||||
Shares issued upon conversion from other share class(es) | 1,474 | 7,865 | ||||||
Shares purchased upon conversion into other share class(es) | (651 | ) | (3,466) | |||||
Net increase (decrease) in shares outstanding | (63,783 | ) | $ | (342,144) | ||||
Year ended October 31, 2021: | ||||||||
Shares sold | 78,649 | $ | 458,123 | |||||
Shares issued in reinvestment of dividends and distributions | 29,019 | 167,971 | ||||||
Shares purchased | (181,591 | ) | (1,055,699) | |||||
Net increase (decrease) in shares outstanding before conversion | (73,923 | ) | (429,605) | |||||
Shares issued upon conversion from other share class(es) | 25,573 | 154,504 | ||||||
Shares purchased upon conversion into other share class(es) | (3,161 | ) | (18,144) | |||||
Net increase (decrease) in shares outstanding | (51,511 | ) | $ | (293,245) |
62
Share Class | Shares | Amount | ||||||
Class C | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 1,969 | $ | 10,593 | |||||
Shares issued in reinvestment of dividends and distributions | 504 | 2,615 | ||||||
Shares purchased | (5,228 | ) | (27,380) | |||||
Net increase (decrease) in shares outstanding before conversion | (2,755 | ) | (14,172) | |||||
Shares purchased upon conversion into other share class(es) | (1,463 | ) | (7,865) | |||||
Net increase (decrease) in shares outstanding | (4,218 | ) | $ | (22,037) | ||||
Year ended October 31, 2021: | ||||||||
Shares sold | 3,485 | $ | 20,671 | |||||
Shares issued in reinvestment of dividends and distributions | 2,022 | 11,886 | ||||||
Shares purchased | (28,402 | ) | (163,996) | |||||
Net increase (decrease) in shares outstanding before conversion | (22,895 | ) | (131,439) | |||||
Shares purchased upon conversion into other share class(es) | (25,403 | ) | (154,504) | |||||
Net increase (decrease) in shares outstanding | (48,298 | ) | $ | (285,943) | ||||
Class Z | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 2,164,932 | $ | 11,449,976 | |||||
Shares issued in reinvestment of dividends and distributions | 202,589 | 1,044,403 | ||||||
Shares purchased | (2,563,061 | ) | (12,899,762) | |||||
Net increase (decrease) in shares outstanding before conversion | (195,540 | ) | (405,383) | |||||
Shares issued upon conversion from other share class(es) | 645 | 3,466 | ||||||
Net increase (decrease) in shares outstanding | (194,895 | ) | $ | (401,917) | ||||
Year ended October 31, 2021: | ||||||||
Shares sold | 2,987,759 | $ | 17,715,817 | |||||
Shares issued in reinvestment of dividends and distributions | 483,358 | 2,827,410 | ||||||
Shares purchased | (4,096,951 | ) | (23,917,712) | |||||
Net increase (decrease) in shares outstanding before conversion | (625,834 | ) | (3,374,485) | |||||
Shares issued upon conversion from other share class(es) | 3,128 | 18,144 | ||||||
Shares purchased upon conversion into other share class(es) | (661,948 | ) | (3,892,254) | |||||
Net increase (decrease) in shares outstanding | (1,284,654 | ) | $ | (7,248,595) |
PGIM Emerging Markets Debt Local Currency Fund 63
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||
Class R6 | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 38,029 | $ | 200,891 | |||||
Shares issued in reinvestment of dividends and distributions | 10,607 | 55,179 | ||||||
Shares purchased | (261,906 | ) | (1,370,869) | |||||
Net increase (decrease) in shares outstanding | (213,270 | ) | $ | (1,114,799) | ||||
Year ended October 31, 2021: | ||||||||
Shares sold | 68,180 | $ | 395,330 | |||||
Shares issued in reinvestment of dividends and distributions | 13,589 | 77,566 | ||||||
Shares purchased | (164,802 | ) | (945,773) | |||||
Net increase (decrease) in shares outstanding before conversion | (83,033 | ) | (472,877) | |||||
Shares issued upon conversion from other share class(es) | 663,076 | 3,892,254 | ||||||
Net increase (decrease) in shares outstanding | 580,043 | $ | 3,419,377 |
8. | Borrowings |
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/1/2021 – 9/29/2022 | |
Total Commitment | $ 1,200,000,000 | |
Annualized Commitment Fee on | 0.15% | |
Annualized Interest Rate on | 1.20% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
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The Fund utilized the SCA during the reporting period ended April 30, 2022. The average daily balance for the 6 days that the Fund had loans outstanding during the period was approximately $1,153,167, borrowed at a weighted average interest rate of 1.60%. The maximum loan outstanding amount during the period was $3,689,000. At April 30, 2022, the Fund did not have an outstanding loan amount.
9. | Risks of Investing in the Fund |
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Credit Risk: Credit risk relates to the ability of the issuer of a fixed income instrument or the counterparty to a financial transaction with the Fund to meet interest and principal payments as they come due or to fulfill its obligations to the Fund. The value of the fixed income instruments held by the Fund will be adversely affected by any erosion in the ability of the relevant issuers to make interest and principal payments as they become due. The ratings given to a debt security by certain ratings agencies provide a generally useful guide as to such credit risk. The lower the rating of a debt security held by the Fund, the greater the degree of credit risk that is perceived to exist by the rating agency with respect to that security. Increasing the amount of Fund assets invested in lower-rated securities generally will increase the Fund’s income, but also will increase the credit risk to which the Fund is subject. The Fund generally enters into financial transactions with major dealers that are deemed acceptable to the subadviser from a credit perspective.
Currency Risk: The Fund’s assets may be invested in securities that are denominated in non-US currencies or directly in currencies. Such investments are subject to the risk that the value of a particular currency will change in relation to the US dollar or other currencies. The weakening of a country’s currency relative to the US dollar will negatively affect the dollar value of the Fund’s assets. Among the factors that may affect currency values are trade balances, levels of short term interest rates, differences in relative values of similar assets in different currencies, long term opportunities for investment and capital appreciation, central bank policy, and political developments. The Fund may attempt to hedge such risks by selling or buying currencies in the forward market; selling or buying currency futures contracts, options or other securities thereon; borrowing funds denominated in particular currencies; or any combination thereof, depending on the availability of liquidity in the hedging instruments and their relative costs. There can be no assurance that such strategies will be implemented or, if implemented, will be effective. The Fund would incur additional costs from hedging.
Debt Obligations Risk: Debt obligations are subject to credit risk, market risk and interest rate risk. The Fund’s holdings, share price, yield and total return may also fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be
PGIM Emerging Markets Debt Local Currency Fund 65
Notes to Financial Statements (unaudited) (continued)
subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may lose income.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives 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. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.
The U.S. Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements and risk exposure limitations. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance or disrupt markets.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures
66
and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
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.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings
PGIM Emerging Markets Debt Local Currency Fund 67
Notes to Financial Statements (unaudited) (continued)
may fall sharply. This is referred to as “extension risk.” The Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Junk Bonds Risk: High-yield, high-risk bonds have predominantly speculative characteristics, including particularly high credit risk. Junk bonds tend to have lower market liquidity than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly and without warning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by major investors, a high profile default or a change in the market’s psychology.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or
68
conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
Non-Diversified Investment Company Risk: The Fund is non-diversified for purposes of the 1940 Act. This means that the Fund 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.
10. | Recent Accounting Pronouncement and Regulatory Developments |
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance for applying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria
PGIM Emerging Markets Debt Local Currency Fund 69
Notes to Financial Statements (unaudited) (continued)
are met. ASU 2020-04 is elective and is effective on March 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 to have a material impact on the financial statements.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
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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 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 Board.
At a meeting of the Board on March 1-3, 2022, 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 January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to be appropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
PGIM Emerging Markets Debt Local Currency Fund 71
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street | (800) 225-1852 | pgim.com/investments | ||
Newark, NJ 07102 |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding · Kevin J. Bannon · Scott E. Benjamin · Linda W. Bynoe · Barry H. Evans · Keith F. Hartstein · Laurie Simon Hodrick · Stuart S. Parker · Brian K. Reid · Grace C. Torres |
OFFICERS |
Stuart S. Parker, President · Scott E. Benjamin, Vice President · Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer · Claudia DiGiacomo, Chief Legal Officer · Isabelle Sajous, Chief Compliance Officer · Jonathan Corbett, Anti-Money Laundering Compliance Officer · Andrew R. French, Secretary · Melissa Gonzalez, Assistant Secretary · Diana N. Huffman, Assistant Secretary · Kelly A. Coyne, Assistant Secretary · Patrick E. McGuinness, Assistant Secretary · Debra Rubano, Assistant Secretary · Lana Lomuti, Assistant Treasurer · Russ Shupak, Assistant Treasurer · Elyse M. McLaughlin, Assistant Treasurer · Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
SUBADVISER | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 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 and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Emerging Markets Debt Local Currency Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter at sec.gov.
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Mutual Funds: | ||||
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM EMERGING MARKETS DEBT LOCAL CURRENCY FUND
SHARE CLASS | A | C | Z | R6 | ||||||
NASDAQ | EMDAX | EMDCX | EMDZX | EMDQX | ||||||
CUSIP | 743969750 | 743969743 | 743969727 | 743969735 |
MF212E2
PGIM JENNISON EMERGING MARKETS EQUITY OPPORTUNITIES FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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Holdings and Financial Statements
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This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
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| Dear Shareholder:
We hope you find the semiannual report for the PGIM Jennison Emerging Markets Equity Opportunities Fund informative and useful. The report covers performance for the six-month period ended April 30, 2022.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. | ||
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President PGIM Jennison Emerging Markets Equity Opportunities Fund June 15, 2022 |
PGIM Jennison Emerging Markets Equity Opportunities Fund | 3 |
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 4/30/22 | Average Annual Total Returns as of 4/30/22 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class A | -36.98 | -37.74 | 7.55 | 4.60 (09/16/2014) | ||||
Class C | -37.23 | -35.29 | 7.96 | 4.59 (09/16/2014) | ||||
Class Z | -36.89 | -33.96 | 9.05 | 5.64 (09/16/2014) | ||||
Class R6 | -36.88 | -33.91 | 9.06 | 5.65 (09/16/2014) | ||||
MSCI Emerging Markets Index | ||||||||
-14.15 | -18.33 | 4.32 | 3.21 |
*Not annualized
Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the Fund’s inception date.
4 | Visit our website at pgim.com/investments |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | None | None |
Benchmark Definition
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, Kuwait, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Saudi Arabia, 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 that may be paid by an investor.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
MercadoLibre, Inc. | Internet & Direct Marketing Retail | Brazil | 4.7% | |||
Kanzhun Ltd., ADR | Interactive Media & Services | China | 4.6% | |||
Titan Co. Ltd. | Textiles, Apparel & Luxury Goods | India | 4.4% | |||
Bank Central Asia Tbk PT | Banks | Indonesia | 4.2% | |||
Full Truck Alliance Co. Ltd., ADR | Road & Rail | China | 4.1% | |||
Globant SA | IT Services | United States | 3.8% | |||
Sea Ltd., ADR | Entertainment | Taiwan | 3.7% | |||
XPeng, Inc., ADR | Automobiles | China | 3.6% | |||
Bilibili, Inc., ADR | Entertainment | China | 3.6% | |||
B3 SA - Brasil Bolsa Balcao | Capital Markets | Brazil | 3.5% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Jennison Emerging Markets Equity Opportunities Fund | 7 |
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison Emerging Markets Equity Opportunities | Beginning Account Value November 1, 2021 | Ending Account Value | Annualized Expense Ratio Based on the | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $ 630.20 | 1.30% | $ 5.25 | |||||
Hypothetical | $1,000.00 | $1,018.35 | 1.30% | $ 6.51 | ||||||
Class C | Actual | $1,000.00 | $ 627.70 | 2.05% | $ 8.27 | |||||
Hypothetical | $1,000.00 | $1,014.63 | 2.05% | $10.24 | ||||||
Class Z | Actual | $1,000.00 | $ 631.10 | 1.05% | $ 4.25 | |||||
Hypothetical | $1,000.00 | $1,019.59 | 1.05% | $ 5.26 | ||||||
Class R6 | Actual | $1,000.00 | $ 631.20 | 0.98% | $ 3.96 | |||||
Hypothetical | $1,000.00 | $1,019.93 | 0.98% | $ 4.91 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2022
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 97.7% | ||||||||
COMMON STOCKS | ||||||||
Brazil 10.9% | ||||||||
B3 SA - Brasil Bolsa Balcao | 10,860,786 | $ | 29,217,216 | |||||
MercadoLibre, Inc.* | 40,880 | 39,801,994 | ||||||
NU Holdings Ltd. (Class A Stock)*(a) | 3,867,047 | 23,240,953 | ||||||
|
| |||||||
92,260,163 | ||||||||
China 32.3% | ||||||||
Bilibili, Inc., ADR*(a) | 1,235,209 | 30,064,987 | ||||||
Contemporary Amperex Technology Co. Ltd. (Class A Stock) | 413,278 | 24,983,150 | ||||||
Full Truck Alliance Co. Ltd., ADR*(a) | 5,704,433 | 34,397,731 | ||||||
JD.com, Inc., ADR*(a) | 377,205 | 23,258,460 | ||||||
Kanzhun Ltd., ADR* | 1,649,570 | 38,814,382 | ||||||
KE Holdings, Inc., ADR* | 1,201,875 | 17,042,588 | ||||||
LONGi Green Energy Technology Co. Ltd. (Class A Stock) | 1,388,443 | 14,057,192 | ||||||
Silergy Corp. | 217,880 | 19,670,139 | ||||||
Wuxi Biologics Cayman, Inc., 144A* | 2,194,009 | 16,274,033 | ||||||
XPeng, Inc., ADR* | 1,238,531 | 30,480,248 | ||||||
Zai Lab Ltd., ADR*(a) | 599,490 | 23,955,620 | ||||||
|
| |||||||
272,998,530 | ||||||||
India 25.7% | ||||||||
Apollo Hospitals Enterprise Ltd. | 274,133 | 15,881,644 | ||||||
Ashok Leyland Ltd. | 6,773,261 | 11,153,342 | ||||||
Asian Paints Ltd. | 672,942 | 28,360,863 | ||||||
Avenue Supermarts Ltd., 144A* | 225,149 | 11,510,234 | ||||||
Bajaj Finance Ltd. | 313,824 | 27,042,718 | ||||||
Divi’s Laboratories Ltd. | 283,143 | 16,617,650 | ||||||
HDFC Bank Ltd., ADR | 317,095 | 17,506,815 | ||||||
MakeMyTrip Ltd.*(a) | 1,124,484 | 28,640,607 | ||||||
Mphasis Ltd. | 609,221 | 22,374,477 | ||||||
Titan Co. Ltd. | 1,179,606 | 37,586,339 | ||||||
|
| |||||||
216,674,689 | ||||||||
Indonesia 7.1% | ||||||||
Bank Central Asia Tbk PT | 64,336,559 | 35,754,151 | ||||||
Bank Jago Tbk PT* | 29,650,473 | 23,755,006 | ||||||
|
| |||||||
59,509,157 | ||||||||
Poland 0.6% | ||||||||
LPP SA | 2,498 | 5,268,927 |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
South Korea 6.2% | ||||||||
Coupang, Inc.*(a) | 1,089,810 | $ | 14,025,855 | |||||
LG Energy Solution* | 53,865 | 17,499,754 | ||||||
Samsung SDI Co. Ltd. | 44,498 | 21,101,099 | ||||||
|
| |||||||
52,626,708 | ||||||||
Taiwan 6.3% | ||||||||
Sea Ltd., ADR*(a) | 382,569 | 31,661,410 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 233,690 | 21,716,812 | ||||||
|
| |||||||
53,378,222 | ||||||||
Thailand 4.7% | ||||||||
Airports of Thailand PCL* | 9,871,514 | 19,035,067 | ||||||
Minor International PCL* | 20,443,319 | 20,649,714 | ||||||
|
| |||||||
39,684,781 | ||||||||
United States 3.9% | ||||||||
Globant SA* | 150,155 | 32,431,978 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 824,833,155 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 12.9% | ||||||||
AFFILIATED MUTUAL FUND 12.6% | ||||||||
PGIM Institutional Money Market Fund | 106,918,167 | 106,832,632 | ||||||
|
| |||||||
UNAFFILIATED FUND 0.3% | ||||||||
Dreyfus Government Cash Management (Institutional Shares) | 2,563,236 | 2,563,236 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 109,395,868 | |||||||
|
| |||||||
TOTAL INVESTMENTS 110.6% | 934,229,023 | |||||||
Liabilities in excess of other assets (10.6)% | (89,722,250 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 844,506,773 | ||||||
|
|
See Notes to Financial Statements.
10 |
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
LIBOR—London Interbank Offered Rate
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $112,754,881; cash collateral of $106,773,410 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
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, 2022 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Common Stocks | ||||||||||||
Brazil | $ | 92,260,163 | $ | — | $ | — | ||||||
China | 198,014,016 | 74,984,514 | — | |||||||||
India | 46,147,422 | 170,527,267 | — | |||||||||
Indonesia | — | 59,509,157 | — | |||||||||
Poland | — | 5,268,927 | — | |||||||||
South Korea | 14,025,855 | 38,600,853 | — | |||||||||
Taiwan | 53,378,222 | — | — | |||||||||
Thailand | — | 39,684,781 | — | |||||||||
United States | 32,431,978 | — | — | |||||||||
Short-Term Investments | ||||||||||||
Affiliated Mutual Fund | 106,832,632 | — | — | |||||||||
Unaffiliated Fund | 2,563,236 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 545,653,524 | $ | 388,575,499 | $ | — | ||||||
|
|
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
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, 2022 were as follows:
Affiliated Mutual Fund (12.6% represents investments purchased with collateral from securities on loan) | 12.6 | % | ||
Banks | 11.9 | |||
Internet & Direct Marketing Retail | 9.0 | |||
Entertainment | 7.3 | |||
Semiconductors & Semiconductor Equipment | 6.6 | |||
IT Services | 6.5 | |||
Hotels, Restaurants & Leisure | 5.8 | |||
Electrical Equipment | 5.1 | |||
Textiles, Apparel & Luxury Goods | 5.0 | |||
Interactive Media & Services | 4.6 | |||
Road & Rail | 4.1 | |||
Life Sciences Tools & Services | 3.9 | |||
Automobiles | 3.6 | |||
Capital Markets | 3.5 |
Chemicals | 3.4 | % | ||
Consumer Finance | 3.2 | |||
Biotechnology | 2.8 | |||
Electronic Equipment, Instruments & Components | 2.5 | |||
Transportation Infrastructure | 2.3 | |||
Real Estate Management & Development | 2.0 | |||
Health Care Providers & Services | 1.9 | |||
Food & Staples Retailing | 1.4 | |||
Machinery | 1.3 | |||
Unaffiliated Fund | 0.3 | |||
|
| |||
110.6 | ||||
Liabilities in excess of other assets | (10.6 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||
Securities on Loan | $112,754,881 | $(106,773,410) | $5,981,471 |
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
12 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Assets | ||||
Investments at value, including securities on loan of $112,754,881: | ||||
Unaffiliated investments (cost $975,771,285) | $ | 827,396,391 | ||
Affiliated investments (cost $106,810,779) | 106,832,632 | |||
Foreign currency, at value (cost $722,017) | 723,422 | |||
Receivable for investments sold | 13,541,631 | |||
Receivable for Fund shares sold | 12,391,410 | |||
Dividends and interest receivable | 169,887 | |||
Foreign capital gains tax benefit accrued | 28,037 | |||
Tax reclaim receivable | 25,628 | |||
Prepaid expenses and other assets | 11,528 | |||
|
| |||
Total Assets | 961,120,566 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 106,773,410 | |||
Payable for Fund shares purchased | 9,054,267 | |||
Management fee payable | 591,518 | |||
Accrued expenses and other liabilities | 176,539 | |||
Distribution fee payable | 11,428 | |||
Affiliated transfer agent fee payable | 6,631 | |||
|
| |||
Total Liabilities | 116,613,793 | |||
|
| |||
Net Assets | $ | 844,506,773 | ||
|
| |||
| ||||
Net assets were comprised of: | ||||
Common stock, at par | $ | 556 | ||
Paid-in capital in excess of par | 1,248,358,431 | |||
Total distributable earnings (loss) | (403,852,214 | ) | ||
|
| |||
Net assets, April 30, 2022 | $ | 844,506,773 | ||
|
|
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 13 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Class A | ||||
Net asset value and redemption price per share, | ||||
($32,829,245 ÷ 2,201,716 shares of common stock issued and outstanding) | $ | 14.91 | ||
Maximum sales charge (5.50% of offering price) | 0.87 | |||
|
| |||
Maximum offering price to public | $ | 15.78 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | ||||
($4,854,029 ÷ 344,598 shares of common stock issued and outstanding) | $ | 14.09 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | ||||
($519,142,659 ÷ 34,173,456 shares of common stock issued and outstanding) | $ | 15.19 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | ||||
($287,680,840 ÷ 18,923,126 shares of common stock issued and outstanding) | $ | 15.20 | ||
|
|
See Notes to Financial Statements.
14 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $233,302 foreign withholding tax) | $ | 1,506,008 | ||
Income from securities lending, net (including affiliated income of $37,605) | 344,262 | |||
Affiliated dividend income | 17,259 | |||
|
| |||
Total income | 1,867,529 | |||
|
| |||
Expenses | ||||
Management fee | 4,721,239 | |||
Distribution fee(a) | 88,256 | |||
Transfer agent’s fees and expenses (including affiliated expense of $15,125)(a) | 428,020 | |||
Custodian and accounting fees | 186,087 | |||
Registration fees(a) | 128,547 | |||
SEC registration fees | 38,890 | |||
Shareholders’ reports | 24,746 | |||
Audit fee | 14,628 | |||
Legal fees and expenses | 11,261 | |||
Directors’ fees | 8,903 | |||
Miscellaneous | 24,497 | |||
|
| |||
Total expenses | 5,675,074 | |||
Less: Fee waiver and/or expense reimbursement(a) | (481,074 | ) | ||
Distribution fee waiver(a) | (10,181 | ) | ||
|
| |||
Net expenses | 5,183,819 | |||
|
| |||
Net investment income (loss) | (3,316,290 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(32,474)) (net of foreign capital gains taxes $(23,922)) | (215,831,013 | ) | ||
Foreign currency transactions | (467,202 | ) | ||
|
| |||
(216,298,215 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $21,853) (net of change in foreign capital gains taxes $2,366,222) | (237,937,560 | ) | ||
Foreign currencies | 17,984 | |||
|
| |||
(237,919,576 | ) | |||
|
| |||
Net gain (loss) on investment and foreign currency transactions | (454,217,791 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (457,534,081 | ) | |
|
|
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 15 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 61,088 | 27,168 | — | — | ||||||||||||
Transfer agent’s fees and expenses | 28,531 | 4,653 | 394,096 | 740 | ||||||||||||
Registration fees | 13,160 | 9,150 | 64,571 | 41,666 | ||||||||||||
Fee waiver and/or expense reimbursement | (33,912 | ) | (12,780 | ) | (339,779 | ) | (94,603 | ) | ||||||||
Distribution fee waiver | (10,181 | ) | — | — | — |
See Notes to Financial Statements.
16 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | (3,316,290 | ) | $ | (3,176,039 | ) | ||
Net realized gain (loss) on investment and foreign currency transactions | (216,298,215 | ) | (32,023,510 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (237,919,576 | ) | 71,372,687 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (457,534,081 | ) | 36,173,138 | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 670,331,615 | 1,123,848,738 | ||||||
Cost of shares purchased | (378,646,741 | ) | (210,706,003 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 291,684,874 | 913,142,735 | ||||||
|
|
|
| |||||
Total increase (decrease) | (165,849,207 | ) | 949,315,873 | |||||
Net Assets: | ||||||||
Beginning of period | 1,010,355,980 | 61,040,107 | ||||||
|
|
|
| |||||
End of period | $ | 844,506,773 | $ | 1,010,355,980 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 17 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months 2022 | Year Ended October 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.66 | $17.66 | $12.16 | $9.58 | $11.19 | $9.34 | ||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.09 | ) | (0.23 | ) | (0.14 | ) | (0.04 | ) | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (8.66 | ) | 6.23 | 5.64 | 2.62 | (1.57 | ) | 1.89 | ||||||||||||||||||||||||||||
Total from investment operations | (8.75 | ) | 6.00 | 5.50 | 2.58 | (1.61 | ) | 1.85 | ||||||||||||||||||||||||||||
Net asset value, end of period | $14.91 | $23.66 | $17.66 | $12.16 | $9.58 | $11.19 | ||||||||||||||||||||||||||||||
Total Return(b): | (36.98 | )% | 33.98 | % | 45.23 | % | 26.93 | % | (14.39 | )% | 19.81 | % | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $32,829 | $47,683 | $6,144 | $3,806 | $2,316 | $2,204 | ||||||||||||||||||||||||||||||
Average net assets (000) | $41,063 | $26,309 | $4,507 | $3,074 | $2,956 | $1,363 | ||||||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.30 | %(e) | 1.33 | % | 1.45 | % | 1.45 | % | 1.45 | % | 1.45 | % | ||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.52 | %(e) | 1.64 | % | 2.61 | % | 3.35 | % | 3.27 | % | 3.28 | % | ||||||||||||||||||||||||
Net investment income (loss) | (0.94 | )%(e) | (0.98 | )% | (0.99 | )% | (0.37 | )% | (0.35 | )% | (0.35 | )% | ||||||||||||||||||||||||
Portfolio turnover rate(f) | 55 | % | 78 | % | 58 | % | 33 | % | 23 | % | 45 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
18 |
Class C Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months 2022 | Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $22.43 | $16.88 | $11.71 | $9.29 | $10.93 | $9.20 | ||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.15 | ) | (0.39 | ) | (0.23 | ) | (0.11 | ) | (0.13 | ) | (0.11 | ) | ||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (8.19 | ) | 5.94 | 5.40 | 2.53 | (1.51 | ) | 1.84 | ||||||||||||||||||||||||||||||||
Total from investment operations | (8.34 | ) | 5.55 | 5.17 | 2.42 | (1.64 | ) | 1.73 | ||||||||||||||||||||||||||||||||
Net asset value, end of period | $14.09 | $22.43 | $16.88 | $11.71 | $9.29 | $10.93 | ||||||||||||||||||||||||||||||||||
Total Return(b): | (37.23 | )% | 32.96 | % | 44.06 | % | 26.05 | % | (15.00 | )% | 18.80 | % | ||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $4,854 | $5,881 | $1,563 | $1,107 | $1,363 | $1,516 | ||||||||||||||||||||||||||||||||||
Average net assets (000) | $5,479 | $4,077 | $1,244 | $1,438 | $1,775 | $973 | ||||||||||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.05 | %(e) | 2.09 | % | 2.20 | % | 2.20 | % | 2.20 | % | 2.20 | % | ||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.52 | %(e) | 2.65 | % | 4.15 | % | 4.23 | % | 4.20 | % | 4.00 | % | ||||||||||||||||||||||||||||
Net investment income (loss) | (1.67 | )%(e) | (1.76 | )% | (1.73 | )% | (1.05 | )% | (1.14 | )% | (1.17 | )% | ||||||||||||||||||||||||||||
Portfolio turnover rate(f) | 55 | % | 78 | % | 58 | % | 33 | % | 23 | % | 45 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 19 |
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2022 | Year Ended October 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $24.07 | $17.93 | $12.31 | $9.67 | $11.27 | $9.39 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.07 | ) | (0.17 | ) | (0.13 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (8.81 | ) | 6.31 | 5.75 | 2.65 | (1.59 | ) | 1.90 | ||||||||||||||||||||||||
Total from investment operations | (8.88 | ) | 6.14 | 5.62 | 2.64 | (1.60 | ) | 1.88 | ||||||||||||||||||||||||
Net asset value, end of period | $15.19 | $24.07 | $17.93 | $12.31 | $9.67 | $11.27 | ||||||||||||||||||||||||||
Total Return(b): | (36.89 | )% | 34.24 | % | 45.65 | % | 27.30 | % | (14.20 | )% | 20.02 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $519,143 | $642,316 | $34,993 | $2,357 | $1,215 | $980 | ||||||||||||||||||||||||||
Average net assets (000) | $631,641 | $293,229 | $11,195 | $1,866 | $1,443 | $490 | ||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.05 | %(e) | 1.08 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.16 | %(e) | 1.28 | % | 1.93 | % | 3.17 | % | 3.56 | % | 2.94 | % | ||||||||||||||||||||
Net investment income (loss) | (0.68 | )%(e) | (0.72 | )% | (0.83 | )% | (0.08 | )% | (0.13 | )% | (0.19 | )% | ||||||||||||||||||||
Portfolio turnover rate(f) | 55 | % | 78 | % | 58 | % | 33 | % | 23 | % | 45 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
20 |
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six Months Ended | Year Ended October 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $24.08 | $17.93 | $12.31 | $9.67 | $11.27 | $9.39 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.15 | ) | (0.10 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (8.82 | ) | 6.30 | 5.72 | 2.65 | (1.58 | ) | 1.89 | ||||||||||||||||||||||||
Total from investment operations | (8.88 | ) | 6.15 | 5.62 | 2.64 | (1.60 | ) | 1.88 | ||||||||||||||||||||||||
Net asset value, end of period | $15.20 | $24.08 | $17.93 | $12.31 | $9.67 | $11.27 | ||||||||||||||||||||||||||
Total Return(b): | (36.88 | )% | 34.30 | % | 45.65 | % | 27.30 | % | (14.20 | )% | 20.02 | % | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $287,681 | $314,476 | $18,340 | $12,319 | $9,675 | $11,271 | ||||||||||||||||||||||||||
Average net assets (000) | $324,000 | $121,398 | $14,144 | $11,249 | $11,852 | $9,893 | ||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.98 | %(e) | 1.01 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.04 | %(e) | 1.16 | % | 1.80 | % | 2.41 | % | 2.32 | % | 2.78 | % | ||||||||||||||||||||
Net investment income (loss) | (0.59 | )%(e) | (0.62 | )% | (0.74 | )% | (0.11 | )% | (0.17 | )% | (0.13 | )% | ||||||||||||||||||||
Portfolio turnover rate(f) | 55 | % | 78 | % | 58 | % | 33 | % | 23 | % | 45 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 21 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Jennison Emerging Markets Equity Opportunities Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek long-term growth of capital.
2. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (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. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
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
22 |
of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the 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 funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any
PGIM Jennison Emerging Markets Equity Opportunities Fund | 23 |
Notes to Financial Statements (unaudited) (continued)
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 exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating
24 |
factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
The Fund is subject to foreign income taxes imposed by certain countries in which it invests. Additionally, capital gains realized upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. All taxes are computed in accordance with the applicable foreign tax law, and, to the extent permitted, capital losses are used to offset capital gains. Taxes attributable to income are accrued by the Fund as a reduction of income. Current and deferred tax expense attributable to capital gains is reflected as a component of realized or change in unrealized gain/loss on securities in the accompanying financial statements. To the extent that the Fund has country specific capital loss carryforwards, such carryforwards are applied against net unrealized gains when determining the deferred tax liability. Any deferred tax liability incurred by the Fund is included in either Other liabilities or Deferred tax liability on the accompanying Statement of Assets and Liabilities.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |
Net Investment Income | Annually | |
Short-Term Capital Gains | Annually | |
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
26 |
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effective management fee rates were as follows:
Contractual Management Rate
| Effective Management Fee, before any waivers
| |
0.95% of the Fund’s average daily net assets up to and including $5 billion;
| 0.95%
| |
0.925% of the Fund’s average daily net assets exceeding $5 billion.
|
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year. The expense limitations attributable to each class are as follows:
Class | Expense Limitations | |
A | 1.30% | |
C | 2.05 | |
Z | 1.05 | |
R6 | 0.98 |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through February 28, 2023 to limit such fees on certain classes based on the average daily net assets. The distribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | ||
A | 0.30% | 0.25% | ||
C | 1.00 | 1.00 | ||
Z | N/A | N/A | ||
R6 | N/A | N/A |
For the reporting period ended April 30, 2022, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||||
A | $154,542 | $ 77 | ||||
C | — | 1,001 |
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. 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 fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services. 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. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
28 |
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
Cost of Purchases
| Proceeds from Sales
| |
$863,051,838
| $529,373,656
|
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2022, is presented as follows:
Value, Beginning of Period
| Cost of Purchases
| Proceeds
| Change in
| Realized
| Value,
| Shares,
| Income
| |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) | ||||||||||||||||||||||||||||||
$ | 68,436,389 | $ | 155,625,453 | $ | 224,061,842 | $ | — | $ | — | $ | — | — | $17,259 | |||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) | ||||||||||||||||||||||||||||||
6,077,913 | 493,479,967 | 392,714,627 | 21,853 | (32,474 | ) | 106,832,632 | 106,918,167 | 37,605 | (2) | |||||||||||||||||||||
$ | 74,514,302 | $ | 649,105,420 | $ | 616,776,469 | $ | 21,853 | $ | (32,474 | ) | $ | 106,832,632 | $54,864 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
Tax Basis |
Gross |
Gross |
Net | |||
$1,087,524,233 | $19,017,444 | $(172,312,654) | $(153,295,210) |
PGIM Jennison Emerging Markets Equity Opportunities Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
The GAAP 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, 2021 of approximately $27,916,000 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 Fund elected to treat late year ordinary income losses of approximately $3,026,000 as having been incurred in the following fiscal year (October 31, 2022).
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, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
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The RIC is authorized to issue 10,225,000,000 shares of common stock, $0.00001 par value per share, 865,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
Class | Number of Shares | |
A | 25,000,000 | |
C | 65,000,000 | |
Z | 300,000,000 | |
T | 225,000,000 | |
R6 | 250,000,000 |
The Fund currently does not have any Class T shares outstanding.
As of April 30, 2022, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||
A | 17,167 | 0.8% |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||
Affiliated | — | —% | ||
Unaffiliated | 6 | 83.6 |
Transactions in shares of common stock were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 639,933 | $ | 12,560,092 | |||||
Shares purchased | (412,436 | ) | (8,062,282 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 227,497 | 4,497,810 | ||||||
Shares issued upon conversion from other share class(es) | 5,125 | 92,885 | ||||||
Shares purchased upon conversion into other share class(es) | (46,307 | ) | (884,030 | ) | ||||
Net increase (decrease) in shares outstanding | 186,315 | $ | 3,706,665 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 2,255,202 | $ | 51,550,059 | |||||
Shares purchased | (580,724 | ) | (12,973,518 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 1,674,478 | 38,576,541 | ||||||
Shares issued upon conversion from other share class(es) | 4,431 | 112,936 | ||||||
Shares purchased upon conversion into other share class(es) | (11,348 | ) | (248,795 | ) | ||||
Net increase (decrease) in shares outstanding | 1,667,561 | $ | 38,440,682 |
PGIM Jennison Emerging Markets Equity Opportunities Fund | 31 |
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||
Class C | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 110,108 | $ | 1,992,712 | |||||
Shares purchased | (26,857 | ) | (475,544 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 83,251 | 1,517,168 | ||||||
Shares purchased upon conversion into other share class(es) | (783 | ) | (12,936 | ) | ||||
Net increase (decrease) in shares outstanding | 82,468 | $ | 1,504,232 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 217,144 | $ | 4,807,891 | |||||
Shares purchased | (39,846 | ) | (888,017 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 177,298 | 3,919,874 | ||||||
Shares purchased upon conversion into other share class(es) | (7,817 | ) | (182,875 | ) | ||||
Net increase (decrease) in shares outstanding | 169,481 | $ | 3,736,999 | |||||
Class Z | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 23,521,019 | $ | 471,490,672 | |||||
Shares purchased | (16,063,457 | ) | (306,329,200 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 7,457,562 | 165,161,472 | ||||||
Shares issued upon conversion from other share class(es) | 46,133 | 891,417 | ||||||
Shares purchased upon conversion into other share class(es) | (10,027 | ) | (195,468 | ) | ||||
Net increase (decrease) in shares outstanding | 7,493,668 | $ | 165,857,421 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 31,445,686 | $ | 744,637,683 | |||||
Shares purchased | (6,723,022 | ) | (157,898,994 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 24,722,664 | 586,738,689 | ||||||
Shares issued upon conversion from other share class(es) | 13,165 | 295,170 | ||||||
Shares purchased upon conversion into other share class(es) | (7,805 | ) | (191,186 | ) | ||||
Net increase (decrease) in shares outstanding | 24,728,024 | $ | 586,842,673 |
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Share Class | Shares | Amount | ||||||
Class R6 | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 9,268,750 | $ | 184,288,139 | |||||
Shares purchased | (3,408,131 | ) | (63,779,715 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 5,860,619 | 120,508,424 | ||||||
Shares issued upon conversion from other share class(es) | 7,304 | 151,389 | ||||||
Shares purchased upon conversion into other share class(es) | (2,242 | ) | (43,257 | ) | ||||
Net increase (decrease) in shares outstanding | 5,865,681 | $ | 120,616,556 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 13,708,513 | $ | 322,853,105 | |||||
Shares purchased | (1,682,763 | ) | (38,945,474 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 12,025,750 | 283,907,631 | ||||||
Shares issued upon conversion from other share class(es) | 8,764 | 214,750 | ||||||
Net increase (decrease) in shares outstanding | 12,034,514 | $ | 284,122,381 |
8. Borrowings
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/1/2021 – 9/29/2022 | |
Total Commitment | $ 1,200,000,000 | |
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 |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2022.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 33 |
Notes to Financial Statements (unaudited) (continued)
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Country Risk: Changes in the business environment may adversely affect operating profits or the value of assets in a specific country. For example, financial factors such as currency controls, devaluation or regulatory changes or stability factors such as mass riots, civil war and other potential events may contribute to companies’ operational risks.
Currency Risk: The Fund’s net asset value could decline as a result of changes in exchange rates, which could adversely affect the Fund’s investments in currencies, or in securities that trade in, and receive revenues related to, currencies, or in derivatives that provide exposure to currencies. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a
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sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
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.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Investments in China Risk: Investments in China subject the Fund to risks specific to China and may make it more volatile than other funds. Over the last few decades, the Chinese government has undertaken reform of economic and market practices and has expanded the sphere of private ownership of property in China. However, Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with
PGIM Jennison Emerging Markets Equity Opportunities Fund | 35 |
Notes to Financial Statements (unaudited) (continued)
other neighboring countries, including military conflicts in response to such events, may also disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation.
China has experienced security concerns, such as terrorism and strained international relations. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and the Fund’s investments. Export growth continues to be a major driver of China’s rapid economic growth. Reduction in spending on Chinese products and services, institution of additional tariffs or other trade barriers, including as a result of heightened trade tensions between China and the U.S., or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy or the Fund. For example, a series of executive orders issued between November 2020 and June 2021 prohibit the Fund from investing in certain companies identified by the U.S. government as “Chinese Military Industrial Complex Companies.” The restrictions in these executive orders may force the subadviser to sell certain positions and may restrict the Fund from future investments the subadviser deems otherwise attractive.
Chinese companies, including Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulatory requirements, accounting standards or auditor oversight as companies in more developed countries, and as a result, information about the Chinese securities in which the Fund invests may be less reliable or complete. There may be significant obstacles to obtaining information necessary for investigations into or litigation against Chinese companies and shareholders may have limited legal remedies.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption
36 |
proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with the market, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 37 |
Notes to Financial Statements (unaudited) (continued)
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
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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 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 Board.
At a meeting of the Board on March 1-3, 2022, 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 January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to be appropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 39 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding ● Kevin J. Bannon ● Scott E. Benjamin ● Linda W. Bynoe ● Barry H. Evans ● Keith F. Hartstein ● Laurie Simon Hodrick ● Stuart S. Parker ● Brian K. Reid ● Grace C. Torres |
OFFICERS |
Stuart S. Parker, President ● Scott E. Benjamin, Vice President ● Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer ● Claudia DiGiacomo, Chief Legal Officer ● Isabelle Sajous, Chief Compliance Officer ● Jonathan Corbett, Anti-Money Laundering Compliance Officer ● Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Diana N. Huffman, Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ● Patrick E. McGuinness, Assistant Secretary ● Debra Rubano, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Russ Shupak, Assistant Treasurer ● Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter 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 JENNISON EMERGING MARKETS EQUITY OPPORTUNITIES FUND
SHARE CLASS
| A
| C
| Z
| R6
| ||||
NASDAQ
| PDEAX
| PDECX
| PDEZX
| PDEQX
| ||||
CUSIP
| 743969644
| 743969636
| 743969610
| 743969628
|
MF225E2
PGIM JENNISON GLOBAL OPPORTUNITIES FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
![]() | Dear Shareholder:
We hope you find the semiannual report for the PGIM Jennison Global Opportunities Fund informative and useful. The report covers performance for the six-month period ended April 30, 2022.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President PGIM Jennison Global Opportunities Fund June 15, 2022 |
PGIM Jennison Global Opportunities Fund | 3 |
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling
(800) 225-1852.
Total Returns as of 4/30/22 (without sales charges) Six Months* (%) | Average Annual Total Returns as of 4/30/22 (with sales charges) | |||||||||||
One Year (%) | Five Years (%) | Ten Years (%) | Since Inception (%) | |||||||||
Class A | -31.83 | -26.52 | 14.28 | 12.94 | — | |||||||
Class C | -32.13 | -23.59 | 14.62 | 12.69 | — | |||||||
Class Z | -31.79 | -22.14 | 15.78 | 13.82 | — | |||||||
Class R2 | -31.92 | -22.45 | N/A | N/A | 18.77 (12/27/2018) | |||||||
Class R4 | -31.83 | -22.26 | N/A | N/A | 19.08 (12/27/2018) | |||||||
Class R6 | -31.74 | -22.04 | 15.89 | N/A | 14.04 (12/22/2014) | |||||||
MSCI All Country World ND Index | ||||||||||||
-11.63 | -5.44 | 9.46 | 9.21 | — |
Average Annual Total Returns as of 4/30/22 Since Inception (%) | ||||||||||||
Class R2, Class R4 (12/27/2018) | Class R6 (12/22/2014) | |||||||||||
MSCI All Country World ND Index | 13.36 | 8.32 |
*Not annualized
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
4 | Visit our website at pgim.com/investments |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R2 | Class R4 | Class R6 | |||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | None | ||||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | None | 0.25% | None | None | ||||||
Shareholder services fees | None | None | None | 0.10%* | 0.10%* | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definition
MSCI All Country World ND Index—The MSCI All Country World ND Index (MSCI ACWI ND Index) is an unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI ND Index consists of 47 country indexes comprising 23 developed and 24 emerging market country indexes. The ND version of the MSCI ACWI Index reflects the impact of the maximum withholding taxes on reinvested dividends. The MSCI ACWI ND Index is unmanaged and the total return includes the reinvestment of all dividends.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Jennison Global Opportunities Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
Apple, Inc. | Technology Hardware, Storage & Peripherals | United States | 7.5% | |||
Tesla, Inc. | Automobiles | United States | 7.4% | |||
Airbnb, Inc. (Class A Stock) | Hotels, Restaurants & Leisure | United States | 5.4% | |||
Microsoft Corp. | Software | United States | 5.1% | |||
MercadoLibre, Inc. | Internet & Direct Marketing Retail | Brazil | 4.6% | |||
LVMH Moet Hennessy Louis Vuitton SE | Textiles, Apparel & Luxury Goods | France | 4.3% | |||
Novo Nordisk A/S (Class B Stock) | Pharmaceuticals | Denmark | 4.1% | |||
L’Oreal SA | Personal Products | France | 3.9% | |||
Hermes International | Textiles, Apparel & Luxury Goods | France | 3.6% | |||
Ferrari NV | Automobiles | Italy | 3.6% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Jennison Global Opportunities Fund | 7 |
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison Global Opportunities Fund | Beginning Account Value November 1, 2021 | Ending Account Value April 30, 2022 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $ 681.70 | 1.08% | $4.50 | |||||
Hypothetical | $1,000.00 | $1,019.44 | 1.08% | $5.41 | ||||||
Class C | Actual | $1,000.00 | $ 678.70 | 1.92% | $7.99 | |||||
Hypothetical | $1,000.00 | $1,015.27 | 1.92% | $9.59 | ||||||
Class Z | Actual | $1,000.00 | $ 682.10 | 0.94% | $3.92 | |||||
Hypothetical | $1,000.00 | $1,020.13 | 0.94% | $4.71 | ||||||
Class R2 | Actual | $1,000.00 | $ 680.80 | 1.34% | $5.58 | |||||
Hypothetical | $1,000.00 | $1,018.15 | 1.34% | $6.71 | ||||||
Class R4 | Actual | $1,000.00 | $ 681.70 | 1.09% | $4.54 | |||||
Hypothetical | $1,000.00 | $1,019.39 | 1.09% | $5.46 | ||||||
Class R6 | Actual | $1,000.00 | $ 682.60 | 0.83% | $3.46 | |||||
Hypothetical | $1,000.00 | $1,020.68 | 0.83% | $4.16 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2022
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 97.0% | ||||||||
COMMON STOCKS | ||||||||
Brazil 4.6% | ||||||||
| ||||||||
MercadoLibre, Inc.* | 283,046 | $ | 275,582,077 | |||||
Denmark 4.1% | ||||||||
| ||||||||
Novo Nordisk A/S (Class B Stock) | 2,156,078 | 247,240,396 | ||||||
France 16.8% | ||||||||
| ||||||||
Hermes International | 177,568 | 218,343,211 | ||||||
L’Oreal SA | 654,212 | 236,708,057 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 401,212 | 258,136,990 | ||||||
Pernod Ricard SA | 855,853 | 176,793,637 | ||||||
Remy Cointreau SA | 622,065 | 122,895,723 | ||||||
|
| |||||||
1,012,877,618 | ||||||||
Hong Kong 1.3% | ||||||||
| ||||||||
Techtronic Industries Co. Ltd. | 5,777,135 | 76,937,958 | ||||||
Italy 3.6% | ||||||||
| ||||||||
Ferrari NV | 1,023,413 | 215,454,441 | ||||||
Netherlands 6.8% | ||||||||
| ||||||||
Adyen NV, 144A* | 125,577 | 208,597,280 | ||||||
ASML Holding NV | 359,985 | 203,772,892 | ||||||
|
| |||||||
412,370,172 | ||||||||
Switzerland 8.3% | ||||||||
| ||||||||
Alcon, Inc. | 1,481,245 | 105,471,126 | ||||||
Cie Financiere Richemont SA (Class A Stock) | 1,694,740 | 196,515,714 | ||||||
Givaudan SA | 31,255 | 124,332,932 | ||||||
Straumann Holding AG | 611,439 | 72,209,796 | ||||||
|
| |||||||
498,529,568 | ||||||||
Taiwan 2.5% | ||||||||
| ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 1,608,617 | 149,488,778 | ||||||
United States 48.2% | ||||||||
| ||||||||
Airbnb, Inc. (Class A Stock)*(a) | 2,118,306 | 324,545,662 | ||||||
Alphabet, Inc. (Class A Stock)* | 66,861 | 152,589,506 | ||||||
Amazon.com, Inc.* | 54,606 | 135,730,312 | ||||||
Apple, Inc. | 2,864,982 | 451,664,412 | ||||||
Atlassian Corp. PLC (Class A Stock)* | 159,692 | 35,903,552 |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
United States (cont’d.) | ||||||||
| ||||||||
Crowdstrike Holdings, Inc. (Class A Stock)* | 821,308 | $ | 163,243,178 | |||||
Dexcom, Inc.* | 296,668 | 121,212,611 | ||||||
Intuitive Surgical, Inc.* | 374,885 | 89,709,981 | ||||||
Lululemon Athletica, Inc.* | 381,858 | 135,418,303 | ||||||
Mastercard, Inc. (Class A Stock) | 472,084 | 171,545,884 | ||||||
Microsoft Corp. | 1,109,800 | 307,991,696 | ||||||
NIKE, Inc. (Class B Stock) | 1,149,451 | 143,336,540 | ||||||
NVIDIA Corp. | 705,773 | 130,899,718 | ||||||
Tesla, Inc.* | 510,857 | 444,833,841 | ||||||
Thermo Fisher Scientific, Inc. | 166,530 | 92,077,768 | ||||||
|
| |||||||
2,900,702,964 | ||||||||
Uruguay 0.8% | ||||||||
| ||||||||
Dlocal Ltd.* | 2,040,447 | 46,256,933 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 5,835,440,905 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 5.2% | ||||||||
AFFILIATED MUTUAL FUND 0.7% | ||||||||
PGIM Institutional Money Market Fund | 41,992,065 | 41,958,471 | ||||||
|
| |||||||
UNAFFILIATED FUND 4.5% | ||||||||
Dreyfus Government Cash Management (Institutional Shares) | 272,528,261 | 272,528,261 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 314,486,732 | |||||||
|
| |||||||
TOTAL INVESTMENTS 102.2% | 6,149,927,637 | |||||||
Liabilities in excess of other assets (2.2)% | (131,654,591 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 6,018,273,046 | ||||||
|
|
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
LIBOR—London Interbank Offered Rate
* | Non-income producing security. |
See Notes to Financial Statements.
10 |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $39,451,575; cash collateral of $41,957,050 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
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, 2022 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||
Investments in Securities | ||||||||||
Assets | ||||||||||
Long-Term Investments | ||||||||||
Common Stocks | ||||||||||
Brazil | $ | 275,582,077 | $ | — | $— | |||||
Denmark | — | 247,240,396 | — | |||||||
France | — | 1,012,877,618 | — | |||||||
Hong Kong | — | 76,937,958 | — | |||||||
Italy | — | 215,454,441 | — | |||||||
Netherlands | — | 412,370,172 | — | |||||||
Switzerland | — | 498,529,568 | — | |||||||
Taiwan | 149,488,778 | — | — | |||||||
United States | 2,900,702,964 | — | — | |||||||
Uruguay | 46,256,933 | — | — | |||||||
Short-Term Investments | ||||||||||
Affiliated Mutual Fund | 41,958,471 | — | — | |||||||
Unaffiliated Fund | 272,528,261 | — | — | |||||||
|
|
|
|
| ||||||
Total | $ | 3,686,517,484 | $ | 2,463,410,153 | $— | |||||
|
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
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, 2022 were as follows:
Textiles, Apparel & Luxury Goods | 15.8 | % | ||
Automobiles | 11.0 | |||
Software | 8.4 | |||
Semiconductors & Semiconductor Equipment | 8.1 | |||
Technology Hardware, Storage & Peripherals | 7.5 | |||
IT Services | 7.1 | |||
Internet & Direct Marketing Retail | 6.9 | |||
Health Care Equipment & Supplies | 6.4 | |||
Hotels, Restaurants & Leisure | 5.4 | |||
Beverages | 5.0 | |||
Unaffiliated Fund | 4.5 | |||
Pharmaceuticals | 4.1 | |||
Personal Products | 3.9 |
Interactive Media & Services | 2.5 | % | ||
Chemicals | 2.1 | |||
Life Sciences Tools & Services | 1.5 | |||
Machinery | 1.3 | |||
Affiliated Mutual Fund (0.7% represents investments purchased with collateral from securities on loan) | 0.7 | |||
|
| |||
102.2 | ||||
Liabilities in excess of other assets | (2.2 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||
Securities on Loan | $39,451,575 | $(39,451,575) | $— |
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
12 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Assets | ||||
Investments at value, including securities on loan of $39,451,575: | ||||
Unaffiliated investments (cost $5,089,545,906) | $ | 6,107,969,166 | ||
Affiliated investments (cost $41,958,471) | 41,958,471 | |||
Foreign currency, at value (cost $3,842,643) | 3,842,643 | |||
Receivable for investments sold | 227,548,340 | |||
Receivable for Fund shares sold | 18,871,320 | |||
Tax reclaim receivable | 4,642,738 | |||
Dividends receivable | 1,211,245 | |||
Prepaid expenses and other assets | 17,242 | |||
|
| |||
Total Assets | 6,406,061,165 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 311,486,785 | |||
Payable to broker for collateral for securities on loan | 41,957,050 | |||
Payable for Fund shares purchased | 28,508,088 | |||
Management fee payable | 4,377,615 | |||
Accrued expenses and other liabilities | 1,015,692 | |||
Distribution fee payable | 407,873 | |||
Affiliated transfer agent fee payable | 35,016 | |||
|
| |||
Total Liabilities | 387,788,119 | |||
|
| |||
Net Assets | $ | 6,018,273,046 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 1,831 | ||
Paid-in capital in excess of par | 5,334,260,558 | |||
Total distributable earnings (loss) | 684,010,657 | |||
|
| |||
Net assets, April 30, 2022 | $ | 6,018,273,046 | ||
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 13 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Class A | ||||
Net asset value and redemption price per share, | ||||
($531,966,050 ÷ 16,483,120 shares of common stock issued and outstanding) | $ | 32.27 | ||
Maximum sales charge (5.50% of offering price) | 1.88 | |||
|
| |||
Maximum offering price to public | $ | 34.15 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | ||||
($309,477,966 ÷ 10,490,894 shares of common stock issued and outstanding) | $ | 29.50 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | ||||
($2,887,946,669 ÷ 87,383,361 shares of common stock issued and outstanding) | $ | 33.05 | ||
|
| |||
Class R2 | ||||
Net asset value, offering price and redemption price per share, | ||||
($14,267,917 ÷ 436,152 shares of common stock issued and outstanding) | $ | 32.71 | ||
|
| |||
Class R4 | ||||
Net asset value, offering price and redemption price per share, | ||||
($323,991 ÷ 9,807 shares of common stock issued and outstanding) | $ | 33.04 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | ||||
($2,274,290,453 ÷ 68,289,700 shares of common stock issued and outstanding) | $ | 33.30 | ||
|
|
See Notes to Financial Statements.
14 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $3,031,112 foreign withholding tax) | $ | 19,891,658 | ||
Affiliated dividend income | 21,958 | |||
Income from securities lending, net (including affiliated income of $12,293) | 13,962 | |||
|
| |||
Total income | 19,927,578 | |||
|
| |||
Expenses | ||||
Management fee | 31,371,046 | |||
Distribution fee(a) | 3,033,106 | |||
Shareholder servicing fees (including affiliated expense of $7,526)(a) | 9,017 | |||
Transfer agent’s fees and expenses (including affiliated expense of $112,239)(a) | 2,648,667 | |||
Custodian and accounting fees | 316,557 | |||
Shareholders’ reports | 177,612 | |||
Registration fees(a) | 169,167 | |||
SEC registration fees | 118,969 | |||
Directors’ fees | 51,196 | |||
Legal fees and expenses | 27,671 | |||
Audit fee | 13,687 | |||
Miscellaneous | 81,435 | |||
|
| |||
Total expenses | 38,018,130 | |||
Less: Fee waiver and/or expense reimbursement(a) | (304,311 | ) | ||
Distribution fee waiver(a) | (167,378 | ) | ||
|
| |||
Net expenses | 37,546,441 | |||
|
| |||
Net investment income (loss) | (17,618,863 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(3,454)) | (294,360,935 | ) | ||
Foreign currency transactions | (608,802 | ) | ||
|
| |||
(294,969,737 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (2,636,185,854 | ) | ||
Foreign currencies | (348,845 | ) | ||
|
| |||
(2,636,534,699 | ) | |||
|
| |||
Net gain (loss) on investment and foreign currency transactions | (2,931,504,436 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (2,949,123,299 | ) | |
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 15 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R2 | Class R4 | Class R6 | |||||||||||||||||||
Distribution fee | 1,004,269 | 2,006,434 | — | 22,403 | — | — | ||||||||||||||||||
Shareholder servicing fees | — | — | — | 8,805 | 212 | — | ||||||||||||||||||
Transfer agent’s fees and expenses | 295,912 | 183,470 | 2,133,947 | 15,551 | 445 | 19,342 | ||||||||||||||||||
Registration fees | 22,563 | 15,620 | 53,043 | 3,968 | 3,968 | 70,005 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (295,692 | ) | — | — | (4,424 | ) | (4,195 | ) | — | |||||||||||||||
Distribution fee waiver | (167,378 | ) | — | — | — | — | — |
See Notes to Financial Statements.
16 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | (17,618,863 | ) | $ | (54,854,542 | ) | ||
Net realized gain (loss) on investment and foreign currency transactions | (294,969,737 | ) | 900,560,726 | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (2,636,534,699 | ) | 1,589,333,222 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (2,949,123,299 | ) | 2,435,039,406 | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class A | (71,158,360 | ) | (9,958,088 | ) | ||||
Class C | (47,157,311 | ) | (7,632,427 | ) | ||||
Class Z | (420,311,394 | ) | (66,508,567 | ) | ||||
Class R2 | (1,886,436 | ) | (7,434 | ) | ||||
Class R4 | (31,156 | ) | (9,579 | ) | ||||
Class R6 | (290,628,234 | ) | (36,320,678 | ) | ||||
|
|
|
| |||||
(831,172,891 | ) | (120,436,773 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 1,123,767,719 | 3,048,592,811 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 818,705,147 | 117,629,727 | ||||||
Cost of shares purchased | (1,553,766,760 | ) | (2,124,201,273 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 388,706,106 | 1,042,021,265 | ||||||
|
|
|
| |||||
Total increase (decrease) | (3,391,590,084 | ) | 3,356,623,898 | |||||
Net Assets: | ||||||||
Beginning of period | 9,409,863,130 | 6,053,239,232 | ||||||
|
|
|
| |||||
End of period | $ | 6,018,273,046 | $ | 9,409,863,130 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 17 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||
Six Months Ended April 30, 2022
|
Year Ended October 31, | |||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
| ||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $52.15 | $38.50 | $24.58 | $21.47 | $20.72 | $15.14 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.11 | ) | (0.37 | ) | (0.22 | ) | (0.11 | ) | (0.13 | ) | (0.09 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (15.13 | ) | 14.76 | 14.14 | 3.22 | 0.88 | 5.67 | |||||||||||||||||
Total from investment operations | (15.24 | ) | 14.39 | 13.92 | 3.11 | 0.75 | 5.58 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Distributions from net realized gains | (4.64 | ) | (0.74 | ) | - | - | - | - | ||||||||||||||||
Net asset value, end of period | $32.27 | $52.15 | $38.50 | $24.58 | $21.47 | $20.72 | ||||||||||||||||||
Total Return(b): | (31.83 | )% | 37.75 | % | 56.63 | % | 14.49 | % | 3.62 | % | 36.86 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $531,966 | $797,091 | $494,173 | $236,118 | $164,764 | $90,247 | ||||||||||||||||||
Average net assets (000) | $675,061 | $684,569 | $344,283 | $205,653 | $142,313 | $70,810 | ||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.08 | %(e) | 1.08 | % | 1.08 | % | 1.08 | % | 1.14 | % | 1.19 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 1.22 | %(e) | 1.21 | % | 1.24 | % | 1.28 | % | 1.30 | % | 1.33 | % | ||||||||||||
Net investment income (loss) | (0.56 | )%(e) | (0.80 | )% | (0.69 | )% | (0.45 | )% | (0.55 | )% | (0.55 | )% | ||||||||||||
Portfolio turnover rate(f) | 43 | % | 62 | % | 57 | % | 52 | % | 62 | % | 79 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
18 |
Class C Shares | ||||||||||||||||||||||||
Six Months Ended April 30, 2022
|
Year Ended October 31, | |||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
| ||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $48.27 | $35.98 | $23.16 | $20.41 | $19.85 | $14.61 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.26 | ) | (0.70 | ) | (0.45 | ) | (0.29 | ) | (0.30 | ) | (0.22 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (13.87 | ) | 13.73 | 13.27 | 3.04 | 0.86 | 5.46 | |||||||||||||||||
Total from investment operations | (14.13 | ) | 13.03 | 12.82 | 2.75 | 0.56 | 5.24 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Distributions from net realized gains | (4.64 | ) | (0.74 | ) | - | - | - | - | ||||||||||||||||
Net asset value, end of period | $29.50 | $48.27 | $35.98 | $23.16 | $20.41 | $19.85 | ||||||||||||||||||
Total Return(b): | (32.13 | )% | 36.63 | % | 55.31 | % | 13.47 | % | 2.82 | % | 35.87 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $309,478 | $496,435 | $364,557 | $211,290 | $168,587 | $79,531 | ||||||||||||||||||
Average net assets (000) | $404,612 | $449,870 | $279,272 | $198,518 | $136,788 | $55,922 | ||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.92 | %(e) | 1.91 | % | 1.93 | % | 1.94 | % | 1.94 | % | 1.94 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 1.92 | %(e) | 1.91 | % | 1.93 | % | 1.97 | % | 1.99 | % | 2.03 | % | ||||||||||||
Net investment income (loss) | (1.41 | )%(e) | (1.62 | )% | (1.53 | )% | (1.31 | )% | (1.35 | )% | (1.28 | )% | ||||||||||||
Portfolio turnover rate(f) | 43 | % | 62 | % | 57 | % | 52 | % | 62 | % | 79 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 19 |
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||
Six Months Ended April 30, 2022
|
Year Ended October 31, | |||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
| ||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $53.25 | $39.24 | $25.01 | $21.82 | $21.00 | $15.31 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.09 | ) | (0.30 | ) | (0.17 | ) | (0.07 | ) | (0.08 | ) | (0.05 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (15.47 | ) | 15.05 | 14.40 | 3.26 | 0.90 | 5.74 | |||||||||||||||||
Total from investment operations | (15.56 | ) | 14.75 | 14.23 | 3.19 | 0.82 | 5.69 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Distributions from net realized gains | (4.64 | ) | (0.74 | ) | - | - | - | - | ||||||||||||||||
Net asset value, end of period | $33.05 | $53.25 | $39.24 | $25.01 | $21.82 | $21.00 | ||||||||||||||||||
Total Return(b): | (31.79 | )% | 37.96 | % | 56.90 | % | 14.62 | % | 3.90 | % | 37.17 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $2,887,947 | $4,792,805 | $3,390,006 | $1,466,571 | $927,492 | $334,783 | ||||||||||||||||||
Average net assets (000) | $3,923,233 | $4,303,934 | $2,338,060 | $1,228,375 | $693,749 | $193,977 | ||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.94 | %(e) | 0.92 | % | 0.93 | % | 0.94 | % | 0.93 | % | 0.94 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 0.94 | %(e) | 0.92 | % | 0.93 | % | 0.96 | % | 0.97 | % | 1.02 | % | ||||||||||||
Net investment income (loss) | (0.43 | )%(e) | (0.64 | )% | (0.54 | )% | (0.31 | )% | (0.35 | )% | (0.28 | )% | ||||||||||||
Portfolio turnover rate(f) | 43 | % | 62 | % | 57 | % | 52 | % | 62 | % | 79 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
20 |
Class R2 Shares | |||||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2022
|
Year Ended October 31, | December 27, 2018(a) through October 31, 2019
| |||||||||||||||||||||||||||||||||||||||||
2021
|
2020
| ||||||||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $52.86 | $39.10 | $25.02 | $20.59 | |||||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.17 | ) | (0.48 | ) | (0.31 | ) | (0.12 | ) | |||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (15.34 | ) | 14.98 | 14.39 | 4.55 | ||||||||||||||||||||||||||||||||||||||
Total from investment operations | (15.51 | ) | 14.50 | 14.08 | 4.43 | ||||||||||||||||||||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||||||||||||||||
Distributions from net realized gains | (4.64 | ) | (0.74 | ) | - | - | |||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $32.71 | $52.86 | $39.10 | $25.02 | |||||||||||||||||||||||||||||||||||||||
Total Return(c): | (31.92 | )% | 37.45 | % | 56.27 | % | 21.52 | % | |||||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $14,268 | $21,615 | $377 | $12 | |||||||||||||||||||||||||||||||||||||||
Average net assets (000) | $18,071 | $12,667 | $221 | $13 | |||||||||||||||||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.34 | %(e) | 1.34 | % | 1.33 | % | 1.34 | %(e) | |||||||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.39 | %(e) | 1.39 | % | 7.68 | % | 216.05 | %(e) | |||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.82 | )%(e) | (1.00 | )% | (0.92 | )% | (0.58 | )%(e) | |||||||||||||||||||||||||||||||||||
Portfolio turnover rate(f) | 43 | % | 62 | % | 57 | % | 52 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 21 |
Financial Highlights (unaudited) (continued)
Class R4 Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2022
|
Year Ended October 31, | December 27, 2018(a) through October 31, 2019
| ||||||||||||||||||||||||||||||||||||||
2021
|
2020
| |||||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $53.27 | $39.31 | $25.08 | $20.59 | ||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.11 | ) | (0.37 | ) | (0.19 | ) | (0.10 | ) | ||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (15.48 | ) | 15.07 | 14.42 | 4.59 | |||||||||||||||||||||||||||||||||||
Total from investment operations | (15.59 | ) | 14.70 | 14.23 | 4.49 | |||||||||||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||||||||
Distributions from net realized gains | (4.64 | ) | (0.74 | ) | - | - | ||||||||||||||||||||||||||||||||||
Net asset value, end of period | $33.04 | $53.27 | $39.31 | $25.08 | ||||||||||||||||||||||||||||||||||||
Total Return(c): | (31.83 | )% | 37.76 | % | 56.74 | % | 21.81 | % | ||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $324 | $332 | $505 | $362 | ||||||||||||||||||||||||||||||||||||
Average net assets (000) | $325 | $696 | $433 | $122 | ||||||||||||||||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.09 | %(e) | 1.06 | % | 1.02 | % | 0.97 | %(e) | ||||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 3.69 | %(e) | 2.18 | % | 4.28 | % | 23.67 | %(e) | ||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.51 | )%(e) | (0.78 | )% | (0.60 | )% | (0.46 | )%(e) | ||||||||||||||||||||||||||||||||
Portfolio turnover rate(f) | 43 | % | 62 | % | 57 | % | 52 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
22 |
Class R6 Shares | ||||||||||||||||||||||||
Six Months Ended April 30, 2022
|
Year Ended October 31, | |||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
| ||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $53.60 | $39.46 | $25.13 | $21.90 | $21.06 | $15.33 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.07 | ) | (0.26 | ) | (0.15 | ) | (0.06 | ) | (0.06 | ) | (0.04 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (15.59 | ) | 15.14 | 14.48 | 3.29 | 0.90 | 5.77 | |||||||||||||||||
Total from investment operations | (15.66 | ) | 14.88 | 14.33 | 3.23 | 0.84 | 5.73 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Distributions from net realized gains | (4.64 | ) | (0.74 | ) | - | - | - | - | ||||||||||||||||
Net asset value, end of period | $33.30 | $53.60 | $39.46 | $25.13 | $21.90 | $21.06 | ||||||||||||||||||
Total Return(b): | (31.74 | )% | 38.08 | % | 57.02 | % | 14.75 | % | 3.99 | % | 37.38 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $2,274,290 | $3,301,585 | $1,803,620 | $641,419 | $253,010 | $29,023 | ||||||||||||||||||
Average net assets (000) | $2,855,204 | $2,690,566 | $1,074,262 | $448,178 | $133,984 | $14,700 | ||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.83 | %(e) | 0.83 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Expenses before waivers and/or expense reimbursement | 0.83 | %(e) | 0.83 | % | 0.84 | % | 0.87 | % | 0.90 | % | 0.92 | % | ||||||||||||
Net investment income (loss) | (0.31 | )%(e) | (0.54 | )% | (0.46 | )% | (0.23 | )% | (0.26 | )% | (0.23 | )% | ||||||||||||
Portfolio turnover rate(f) | 43 | % | 62 | % | 57 | % | 52 | % | 62 | % | 79 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund | 23 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Jennison Global Opportunities Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek long-term growth of capital.
2. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (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. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some
24 |
of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the 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 funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any
PGIM Jennison Global Opportunities Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
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 exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating
26 |
factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
PGIM Jennison Global Opportunities 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: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |
Net Investment Income | Annually | |
Short-Term Capital Gains | Annually | |
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
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Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |||||
0.825% up to $1 billion of the Fund’s average daily net assets; | 0.803% | |||||
0.80% over $1 billion of the Fund’s average daily net assets. |
The Manager has contractually agreed, through February 28, 2023, to limit certain operating expenses and/or to limit total annual operating expenses after fee waivers and/or expense reimbursements. The contractual waivers exclude interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year. The expense limitations attributable to each class are as follows:
Class | Fund Expense Limitation* | Class Expense Limitation | ||
A | 0.84% | 1.08% | ||
C | 0.84 | — | ||
Z | 0.84 | — | ||
R2 | 0.84 | 1.34*** | ||
R4 | 0.84 | 1.09*** | ||
R6 | 0.84 | — |
*Expense limitation excludes distribution and service (12b-1) fees, shareholder service fee, and transfer agency expenses (including sub-transfer agency and networking fees).
***Expense limitation applicable only to blue sky fees, shareholder service fee, and transfer agency expenses (including sub-transfer agency and networking fees).
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z, Class R2, Class R4 and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class C and Class R2 shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
PGIM Jennison Global Opportunities Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through February 28, 2023 to limit such fees on certain classes based on the average daily net assets. The distribution fees are accrued daily and payable monthly.
The Fund has adopted a Shareholder Services Plan with respect to Class R2 and Class R4 shares. Under the terms of the Shareholder Services Plan, Class R2 and Class R4 shares are authorized to compensate Prudential Mutual Fund Services LLC (“PMFS”), its affiliates or third-party service providers for services rendered to the shareholders of such Class R2 or Class R4 shares. The shareholder service fee is accrued daily and paid monthly, as applicable.
The Fund’s annual gross and net distribution rate and maximum shareholder service fee, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | Shareholder Service Fee | |||||||
A | 0.30% | 0.25% | N/A% | |||||||
C | 1.00 | 1.00 | N/A | |||||||
Z | N/A | N/A | N/A | |||||||
R2 | 0.25 | 0.25 | 0.10 | |||||||
R4 | N/A | N/A | 0.10 | |||||||
R6 | N/A | N/A | N/A |
For the reporting period ended April 30, 2022, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||||||||||||||
A | $777,513 | $ | 10,662 | |||||||||||||
C | — | 27,856 |
PGIM Investments, PIMS, PMFS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
PMFS serves as the Fund’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.
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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 fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
Cost of Purchases | Proceeds from Sales | |
$3,346,689,859 | $3,898,851,244 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2022, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) | ||||||||||||||||||||||
$46,760,862 | $ 604,906,557 | $ 651,667,419 | $— | $ — | $ — | — | $21,958 | |||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) | ||||||||||||||||||||||
16,154,794 | 809,157,059 | 783,349,928 | — | (3,454 | ) | 41,958,471 | 41,992,065 | 12,293 | (2) | |||||||||||||
$62,915,656 | $1,414,063,616 | $1,435,017,347 | $— | $(3,454 | ) | $41,958,471 | $34,251 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
PGIM Jennison Global Opportunities Fund | 31 |
Notes to Financial Statements (unaudited) (continued)
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2022 were as follows:
Tax Basis | Gross Unrealized | Gross Unrealized | Net Unrealized Appreciation | |||
$5,151,916,954 | $1,365,692,270 | $(367,681,587) | $998,010,683 |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z, Class R2, Class R4 and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z, Class R2, Class R4 and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
32 |
The RIC is authorized to issue 10,225,000,000 shares of common stock, $0.00001 par value per share, 3,450,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
Class | Number of Shares | |||
A | 150,000,000 | |||
C | 100,000,000 | |||
Z | 2,000,000,000 | |||
R2 | 100,000,000 | |||
R4 | 100,000,000 | |||
R6 | 1,000,000,000 |
As of April 30, 2022, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||||||
R2 | 543 | 0.1% | ||||||
R4 | 543 | 5.5 |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||||||
Affiliated | — | —% | ||||||
Unaffiliated | 6 | 77.2 |
Transactions in shares of common stock were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 1,430,426 | $ | 58,323,605 | |||||
Shares issued in reinvestment of dividends and distributions | 1,531,839 | 69,897,795 | ||||||
Shares purchased | (1,951,481 | ) | (77,999,338 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 1,010,784 | 50,222,062 | ||||||
Shares issued upon conversion from other share class(es) | 494,376 | 21,052,811 | ||||||
Shares purchased upon conversion into other share class(es) | (307,167 | ) | (12,624,743 | ) | ||||
Net increase (decrease) in shares outstanding | 1,197,993 | $ | 58,650,130 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 4,665,660 | $ | 213,839,272 | |||||
Shares issued in reinvestment of dividends and distributions | 222,928 | 9,777,601 | ||||||
Shares purchased | (2,530,691 | ) | (115,823,612 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 2,357,897 | 107,793,261 | ||||||
Shares issued upon conversion from other share class(es) | 828,473 | 39,228,444 | ||||||
Shares purchased upon conversion into other share class(es) | (735,700 | ) | (34,462,946 | ) | ||||
Net increase (decrease) in shares outstanding | 2,450,670 | $ | 112,558,759 |
PGIM Jennison Global Opportunities Fund | 33 |
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||
Class C | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 685,751 | $ | 25,815,142 | |||||
Shares issued in reinvestment of dividends and distributions | 1,111,201 | 46,503,742 | ||||||
Shares purchased | (1,056,510 | ) | (38,128,629 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 740,442 | 34,190,255 | ||||||
Shares purchased upon conversion into other share class(es) | (534,851 | ) | (21,106,728 | ) | ||||
Net increase (decrease) in shares outstanding | 205,591 | $ | 13,083,527 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 2,081,043 | $ | 89,155,627 | |||||
Shares issued in reinvestment of dividends and distributions | 184,797 | 7,556,334 | ||||||
Shares purchased | (1,174,050 | ) | (50,022,440 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 1,091,790 | 46,689,521 | ||||||
Shares purchased upon conversion into other share class(es) | (939,783 | ) | (41,669,710 | ) | ||||
Net increase (decrease) in shares outstanding | 152,007 | $ | 5,019,811 | |||||
Class Z | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 14,489,635 | $ | 606,842,056 | |||||
Shares issued in reinvestment of dividends and distributions | 8,798,903 | 410,908,760 | ||||||
Shares purchased | (26,175,750 | ) | (1,044,758,490 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (2,887,212 | ) | (27,007,674 | ) | ||||
Shares issued upon conversion from other share class(es) | 452,214 | 19,361,762 | ||||||
Shares purchased upon conversion into other share class(es) | (185,387 | ) | (7,861,567 | ) | ||||
Net increase (decrease) in shares outstanding | (2,620,385 | ) | $ | (15,507,479 | ) | |||
Year ended October 31, 2021: | ||||||||
Shares sold | 30,640,507 | $ | 1,428,980,779 | |||||
Shares issued in reinvestment of dividends and distributions | 1,448,278 | 64,781,489 | ||||||
Shares purchased | (28,647,396 | ) | (1,335,254,028 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 3,441,389 | 158,508,240 | ||||||
Shares issued upon conversion from other share class(es) | 1,137,547 | 54,251,524 | ||||||
Shares purchased upon conversion into other share class(es) | (961,974 | ) | (47,587,111 | ) | ||||
Net increase (decrease) in shares outstanding | 3,616,962 | $ | 165,172,653 |
34 |
Share Class | Shares | Amount | ||||||
Class R2 | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 21,280 | $ | 842,441 | |||||
Shares issued in reinvestment of dividends and distributions | 40,744 | 1,886,436 | ||||||
Shares purchased | (34,814 | ) | (1,375,326 | ) | ||||
Net increase (decrease) in shares outstanding | 27,210 | $ | 1,353,551 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 439,431 | $ | 19,563,751 | |||||
Shares issued in reinvestment of dividends and distributions | 167 | 7,434 | ||||||
Shares purchased | (40,294 | ) | (1,961,619 | ) | ||||
Net increase (decrease) in shares outstanding | 399,304 | $ | 17,609,566 | |||||
Class R4 | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 3,221 | $ | 127,645 | |||||
Shares issued in reinvestment of dividends and distributions | 667 | 31,156 | ||||||
Shares purchased | (318 | ) | (14,207 | ) | ||||
Net increase (decrease) in shares outstanding | 3,570 | $ | 144,594 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 5,135 | $ | 253,565 | |||||
Shares issued in reinvestment of dividends and distributions | 214 | 9,579 | ||||||
Shares purchased | (11,968 | ) | (626,649 | ) | ||||
Net increase (decrease) in shares outstanding | (6,619 | ) | $ | (363,505 | ) | |||
Class R6 | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 10,215,368 | $ | 431,816,830 | |||||
Shares issued in reinvestment of dividends and distributions | 6,153,853 | 289,477,258 | ||||||
Shares purchased | (9,709,622 | ) | (391,490,770 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 6,659,599 | 329,803,318 | ||||||
Shares issued upon conversion from other share class(es) | 64,101 | 2,595,694 | ||||||
Shares purchased upon conversion into other share class(es) | (33,911 | ) | (1,417,229 | ) | ||||
Net increase (decrease) in shares outstanding | 6,689,789 | $ | 330,981,783 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 27,540,278 | $ | 1,296,799,817 | |||||
Shares issued in reinvestment of dividends and distributions | 789,179 | 35,497,290 | ||||||
Shares purchased | (13,025,359 | ) | (620,512,925 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 15,304,098 | 711,784,182 | ||||||
Shares issued upon conversion from other share class(es) | 618,209 | 31,764,888 | ||||||
Shares purchased upon conversion into other share class(es) | (32,207 | ) | (1,525,089 | ) | ||||
Net increase (decrease) in shares outstanding | 15,890,100 | $ | 742,023,981 |
PGIM Jennison Global Opportunities Fund | 35 |
Notes to Financial Statements (unaudited) (continued)
8. Borrowings
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||||||||
Term of Commitment | 10/1/2021 – 9/29/2022 | |||||||
Total Commitment | $ 1,200,000,000 | |||||||
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 |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended April 30, 2022. The average daily balance for the 8 days that the Fund had loans outstanding during the period was approximately $26,036,750, borrowed at a weighted average interest rate of 1.31%. The maximum loan outstanding amount during the period was $55,160,000. At April 30, 2022, the Fund did not have an outstanding loan amount.
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Country Risk: Changes in the business environment may adversely affect operating profits or the value of assets in a specific country. For example, financial factors such as currency controls, devaluation or regulatory changes or stability factors such as mass riots, civil war and other potential events may contribute to companies’ operational risks.
36 |
Currency Risk: The Fund’s net asset value could decline as a result of changes in exchange rates, which could adversely affect the Fund’s investments in currencies, or in securities that trade in, and receive revenues related to, currencies, or in derivatives that provide exposure to currencies. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of
PGIM Jennison Global Opportunities Fund | 37 |
Notes to Financial Statements (unaudited) (continued)
foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
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.
Growth Style Risk: The Fund’s growth style may subject the Fund to above-average fluctuations as a result of seeking higher than average capital growth. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Since the Fund follows a growth investment style, there is the risk that the growth investment style may be out of favor for long periods of time. At times when the style is out of favor, the Fund may underperform the market in general, its benchmark and other mutual funds.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Large 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.
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Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with the market, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials,
PGIM Jennison Global Opportunities Fund | 39 |
Notes to Financial Statements (unaudited) (continued)
supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
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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 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 Board.
At a meeting of the Board on March 1-3, 2022, 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 January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to be appropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
PGIM Jennison Global Opportunities Fund | 41 |
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∎ TELEPHONE |
∎ WEBSITE | ||
655 Broad Street
| (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.
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DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres
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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 • Isabelle Sajous, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick E. McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse M. McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer
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MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 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 and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.
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E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.
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SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison Global Opportunities Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee.
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AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter at sec.gov.
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Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM JENNISON GLOBAL OPPORTUNITIES FUND
SHARE CLASS | A | C | Z | R2 | R4 | R6 | ||||||
NASDAQ | PRJAX | PRJCX | PRJZX | PRJBX | PRJDX | PRJQX | ||||||
CUSIP | 743969719 | 743969693 | 743969685 | 743969438 | 743969420 | 743969594 |
MF214E2
PGIM JENNISON INTERNATIONAL
OPPORTUNITIES FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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Holdings and Financial Statements
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This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
![]() | Dear Shareholder:
We hope you find the semiannual report for the PGIM Jennison International Opportunities Fund informative and useful. The report covers performance for the six-month period ended April 30, 2022.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Jennison International Opportunities Fund
June 15, 2022
PGIM Jennison International Opportunities Fund | 3 |
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 4/30/22 (without sales charges) Six Months* (%) | Average Annual Total Returns as of 4/30/22 (with sales charges) | |||||||
One Year (%)
| Five Years (%)
| Since Inception (%)
| ||||||
Class A | -33.64 | -29.45 | 11.46 | 9.75 (06/05/2012) | ||||
Class C | -33.94 | -26.70 | 11.81 | 9.53 (06/05/2012) | ||||
Class R | -33.81 | -25.67 | N/A | 8.45 (11/20/2017) | ||||
Class Z | -33.59 | -25.21 | 12.97 | 10.64 (06/05/2012) | ||||
Class R2 | -33.75 | -25.56 | N/A | 17.18 (12/27/2018) | ||||
Class R4 | -33.67 | -25.39 | N/A | 17.48 (12/27/2018) | ||||
Class R6 | -33.58 | -25.17 | 13.02 | 11.35 (12/23/2015) | ||||
MSCI All Country World ex-US Index | ||||||||
-11.87 | -10.31 | 4.94 | — |
Average Annual Total Returns as of 4/30/22 Since Inception (%) | ||||||||
Class A, Class C, Class Z (06/05/2012) | Class R (11/20/2017) | Class R2, Class R4 (12/27/2018) | Class R6 (12/23/2015) | |||||
MSCI All Country World ex-US Index | 6.37 | 2.74 | 7.81 | 6.22 |
*Not annualized
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’s inception date.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class R | Class Z | Class R2 | Class R4 | Class R6 | ||||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | None | None | |||||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | None | None | None | |||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | 0.75% (0.50% currently) | None | 0.25% | None | None | |||||||
Shareholder services fees | None | None | None | None | 0.10%* | 0.10%* | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definition
MSCI All Country World ex-US Index—The Morgan Stanley Capital International All Country World ex-US Index (MSCI ACWI ex-US Index) is an unmanaged, free float-adjusted, market capitalization-weighted index that is designed to provide a broad measure of stock performance throughout the world, with the exception of US-based companies. The Index includes both developed and emerging markets.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Jennison International Opportunities Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
Top Largest Holdings
| Line of Business
| Country
| % of Net Assets
| |||
LVMH Moet Hennessy Louis Vuitton SE | Textiles, Apparel & Luxury Goods | France | 4.6% | |||
L’Oreal SA | Personal Products | France | 4.5% | |||
MercadoLibre, Inc. | Internet & Direct Marketing Retail | Brazil | 4.5% | |||
Novo Nordisk A/S (Class B Stock) | Pharmaceuticals | Denmark | 4.3% | |||
Dassault Systemes SE | Software | France | 4.2% | |||
Adyen NV, 144A | IT Services | Netherlands | 4.1% | |||
Ferrari NV | Automobiles | Italy | 4.0% | |||
ASML Holding NV | Semiconductors & Semiconductor Equipment | Netherlands | 3.8% | |||
Pernod Ricard SA | Beverages | France | 3.8% | |||
Hermes International | Textiles, Apparel & Luxury Goods | France | 3.6% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Jennison International Opportunities Fund | 7 |
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison International Opportunities Fund | Beginning Account Value November 1, 2021 | Ending April 30, 2022 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $ 663.60 | 1.09% | $4.50 | |||||
Hypothetical | $1,000.00 | $1,019.39 | 1.09% | $5.46 | ||||||
Class C | Actual | $1,000.00 | $ 660.60 | 1.90% | $7.82 | |||||
Hypothetical | $1,000.00 | $1,015.37 | 1.90% | $9.49 | ||||||
Class R | Actual | $1,000.00 | $ 661.90 | 1.48% | $6.10 | |||||
Hypothetical | $1,000.00 | $1,017.46 | 1.48% | $7.40 | ||||||
Class Z | Actual | $1,000.00 | $ 664.10 | 0.90% | $3.71 | |||||
Hypothetical | $1,000.00 | $1,020.33 | 0.90% | $4.51 | ||||||
Class R2 | Actual | $1,000.00 | $ 662.50 | 1.34% | $5.52 | |||||
Hypothetical | $1,000.00 | $1,018.15 | 1.34% | $6.71 | ||||||
Class R4 | Actual | $1,000.00 | $ 663.30 | 1.09% | $4.50 | |||||
Hypothetical | $1,000.00 | $1,019.39 | 1.09% | $5.46 | ||||||
Class R6 | Actual | $1,000.00 | $ 664.20 | 0.83% | $3.42 | |||||
Hypothetical | $1,000.00 | $1,020.68 | 0.83% | $4.16 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2022
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 95.3% | ||||||||
COMMON STOCKS 91.8% | ||||||||
Brazil 6.2% | ||||||||
MercadoLibre, Inc.* | 215,387 | $ | 209,707,245 | |||||
NU Holdings Ltd. (Class A Stock)*(a) | 13,199,158 | 79,326,939 | ||||||
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289,034,184 | ||||||||
China 1.7% | ||||||||
Contemporary Amperex Technology Co. Ltd. (Class A Stock) | 1,290,913 | 78,037,236 | ||||||
Denmark 4.3% | ||||||||
Novo Nordisk A/S (Class B Stock) | 1,730,311 | 198,417,116 | ||||||
France 22.8% | ||||||||
Dassault Systemes SE | 4,385,068 | 193,732,720 | ||||||
Hermes International | 138,375 | 170,150,262 | ||||||
L’Oreal SA | 584,528 | 211,494,878 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 333,048 | 214,280,750 | ||||||
Pernod Ricard SA | 856,692 | 176,966,950 | ||||||
Remy Cointreau SA | 496,391 | 98,067,454 | ||||||
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1,064,693,014 | ||||||||
Germany 1.9% | ||||||||
Symrise AG | 762,642 | 90,632,120 | ||||||
Hong Kong 2.6% | ||||||||
Techtronic Industries Co. Ltd. | 9,108,786 | 121,307,775 | ||||||
Ireland 2.1% | ||||||||
ICON PLC* | 424,464 | 96,018,001 | ||||||
Italy 7.2% | ||||||||
Amplifon SpA | 1,793,490 | 71,490,986 | ||||||
Brunello Cucinelli SpA* | 1,459,288 | 74,679,932 | ||||||
Ferrari NV | 891,304 | 187,642,139 | ||||||
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333,813,057 | ||||||||
Japan 4.0% | ||||||||
GMO Payment Gateway, Inc. | 224,154 | 18,862,422 | ||||||
Keyence Corp. | 302,762 | 122,314,323 | ||||||
Menicon Co. Ltd. | 2,234,476 | 47,478,308 | ||||||
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188,655,053 |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Luxembourg 1.8% | ||||||||
Eurofins Scientific SE | 913,164 | $ | 84,622,637 | |||||
Netherlands 10.6% | ||||||||
Adyen NV, 144A* | 116,256 | 193,114,068 | ||||||
Argenx SE, ADR* | 421,623 | 121,140,721 | ||||||
ASML Holding NV | 313,821 | 177,641,326 | ||||||
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491,896,115 | ||||||||
Switzerland 13.4% | ||||||||
Alcon, Inc. | 1,805,051 | 128,527,531 | ||||||
Cie Financiere Richemont SA (Class A Stock) | 1,067,216 | 123,750,377 | ||||||
Givaudan SA | 26,271 | 104,506,494 | ||||||
Lonza Group AG | 235,365 | 138,836,389 | ||||||
Sonova Holding AG | 209,302 | 75,152,515 | ||||||
Straumann Holding AG | 456,385 | 53,898,210 | ||||||
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624,671,516 | ||||||||
Taiwan 3.1% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 1,550,987 | 144,133,222 | ||||||
United Kingdom 2.7% | ||||||||
Ashtead Group PLC | 2,400,421 | 124,536,677 | ||||||
United States 6.5% | ||||||||
Atlassian Corp. PLC (Class A Stock)* | 124,539 | 28,000,103 | ||||||
Globant SA* | 602,523 | 130,138,943 | ||||||
Lululemon Athletica, Inc.* | 408,390 | 144,827,346 | ||||||
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302,966,392 | ||||||||
Uruguay 0.9% | ||||||||
Dlocal Ltd.*(a) | 1,911,194 | 43,326,768 | ||||||
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TOTAL COMMON STOCKS | 4,276,760,883 | |||||||
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See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
PREFERRED STOCK 3.5% | ||||||||
Germany | ||||||||
Sartorius AG (PRFC) | 437,584 | $ | 164,444,658 | |||||
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TOTAL LONG-TERM INVESTMENTS | 4,441,205,541 | |||||||
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| |||||||
SHORT-TERM INVESTMENTS 5.7% | ||||||||
AFFILIATED MUTUAL FUND 1.8% | ||||||||
PGIM Institutional Money Market Fund | 85,126,172 | 85,058,071 | ||||||
|
| |||||||
UNAFFILIATED FUND 3.9% | ||||||||
Dreyfus Government Cash Management (Institutional Shares) | 182,458,527 | 182,458,527 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 267,516,598 | |||||||
|
| |||||||
TOTAL INVESTMENTS 101.0% | 4,708,722,139 | |||||||
Liabilities in excess of other assets (1.0)% | (46,649,319 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 4,662,072,820 | ||||||
|
|
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
LIBOR—London Interbank Offered Rate
PRFC—Preference Shares
* | 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 $81,148,318; cash collateral of $84,992,328 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
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, 2022 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Long-Term Investments | ||||||||||||
Common Stocks | ||||||||||||
Brazil | $ | 289,034,184 | $ | — | $— | |||||||
China | — | 78,037,236 | — | |||||||||
Denmark | — | 198,417,116 | — | |||||||||
France | — | 1,064,693,014 | — | |||||||||
Germany | — | 90,632,120 | — | |||||||||
Hong Kong | — | 121,307,775 | — | |||||||||
Ireland | 96,018,001 | — | — | |||||||||
Italy | — | 333,813,057 | — | |||||||||
Japan | — | 188,655,053 | — | |||||||||
Luxembourg | — | 84,622,637 | — | |||||||||
Netherlands | 121,140,721 | 370,755,394 | — | |||||||||
Switzerland | — | 624,671,516 | — | |||||||||
Taiwan | 144,133,222 | — | — | |||||||||
United Kingdom | — | 124,536,677 | — | |||||||||
United States | 302,966,392 | — | — | |||||||||
Uruguay | 43,326,768 | — | — | |||||||||
Preferred Stock | ||||||||||||
Germany | — | 164,444,658 | — | |||||||||
Short-Term Investments | ||||||||||||
Affiliated Mutual Fund | 85,058,071 | — | — | |||||||||
Unaffiliated Fund | 182,458,527 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 1,264,135,886 | $ | 3,444,586,253 | $— | |||||||
|
|
|
|
|
|
See Notes to Financial Statements.
12 |
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, 2022 were as follows:
Textiles, Apparel & Luxury Goods | 15.5 | % | ||
Health Care Equipment & Supplies | 10.1 | |||
IT Services | 8.3 | |||
Semiconductors & Semiconductor Equipment | 6.9 | |||
Life Sciences Tools & Services | 6.9 | |||
Beverages | 5.9 | |||
Software | 4.8 | |||
Personal Products | 4.5 | |||
Internet & Direct Marketing Retail | 4.5 | |||
Pharmaceuticals | 4.3 | |||
Chemicals | 4.1 | |||
Automobiles | 4.0 | |||
Unaffiliated Fund | 3.9 | |||
Trading Companies & Distributors | 2.7 |
Electronic Equipment, Instruments & Components | 2.6 | % | ||
Machinery | 2.6 | |||
Biotechnology | 2.6 | |||
Affiliated Mutual Fund (1.8% represents investments purchased with collateral from securities on loan) | 1.8 | |||
Banks | 1.7 | |||
Electrical Equipment | 1.7 | |||
Health Care Providers & Services | 1.6 | |||
|
| |||
101.0 | ||||
Liabilities in excess of other assets | (1.0 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||
Securities on Loan | $81,148,318 | $(81,148,318) | $— |
(1) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 13 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Assets | |||||||||||||||
Investments at value, including securities on loan of $81,148,318: | |||||||||||||||
Unaffiliated investments (cost $4,843,268,548) | $ | 4,623,664,068 | |||||||||||||
Affiliated investments (cost $85,036,115) | 85,058,071 | ||||||||||||||
Foreign currency, at value (cost $3,411,735) | 3,419,358 | ||||||||||||||
Receivable for investments sold | 48,105,926 | ||||||||||||||
Receivable for Fund shares sold | 22,779,780 | ||||||||||||||
Tax reclaim receivable | 3,083,573 | ||||||||||||||
Dividends receivable | 2,106,896 | ||||||||||||||
Prepaid expenses and other assets | 10,033 | ||||||||||||||
|
| ||||||||||||||
Total Assets | 4,788,227,705 | ||||||||||||||
|
| ||||||||||||||
Liabilities | |||||||||||||||
Payable to broker for collateral for securities on loan | 84,992,328 | ||||||||||||||
Payable for Fund shares purchased | 25,786,380 | ||||||||||||||
Payable for investments purchased | 11,572,699 | ||||||||||||||
Management fee payable | 3,173,068 | ||||||||||||||
Accrued expenses and other liabilities | 444,607 | ||||||||||||||
Distribution fee payable | 173,796 | ||||||||||||||
Affiliated transfer agent fee payable | 12,007 | ||||||||||||||
|
| ||||||||||||||
Total Liabilities | 126,154,885 | ||||||||||||||
|
| ||||||||||||||
Net Assets | $ | 4,662,072,820 | |||||||||||||
|
| ||||||||||||||
Net assets were comprised of: | |||||||||||||||
Common stock, at par | $ | 1,798 | |||||||||||||
Paid-in capital in excess of par | 5,224,911,425 | ||||||||||||||
Total distributable earnings (loss) | (562,840,403 | ) | |||||||||||||
|
| ||||||||||||||
Net assets, April 30, 2022 | $ | 4,662,072,820 | |||||||||||||
|
|
See Notes to Financial Statements.
14 |
Class A | ||||||||||
Net asset value and redemption price per share, | $ | 25.53 | ||||||||
Maximum sales charge (5.50% of offering price) | 1.49 | |||||||||
|
| |||||||||
Maximum offering price to public | $ | 27.02 | ||||||||
|
| |||||||||
Class C | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 23.64 | ||||||||
|
| |||||||||
Class R | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 25.25 | ||||||||
|
| |||||||||
Class Z | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 25.99 | ||||||||
|
| |||||||||
Class R2 | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 25.63 | ||||||||
|
| |||||||||
Class R4 | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 25.86 | ||||||||
|
| |||||||||
Class R6 | ||||||||||
Net asset value, offering price and redemption price per share, | $ | 26.04 | ||||||||
|
|
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 15 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
Net Investment Income (Loss) | ||||||||||
Income | ||||||||||
Unaffiliated dividend income (net of $2,999,162 foreign withholding tax) | $ | 16,672,605 | ||||||||
Income from securities lending, net (including affiliated income of $48,432) | 1,072,044 | |||||||||
Affiliated dividend income | 29,833 | |||||||||
|
| |||||||||
Total income | 17,774,482 | |||||||||
|
| |||||||||
Expenses | ||||||||||
Management fee | 23,094,675 | |||||||||
Distribution fee(a) | 1,582,124 | |||||||||
Shareholder servicing fees (including affiliated expense of $6,038)(a) | 12,590 | |||||||||
Transfer agent’s fees and expenses (including affiliated expense of $203,588)(a) | 2,065,473 | |||||||||
Custodian and accounting fees | 306,127 | |||||||||
Registration fees(a) | 173,373 | |||||||||
SEC registration fees | 154,068 | |||||||||
Shareholders’ reports | 94,830 | |||||||||
Directors’ fees | 34,835 | |||||||||
Legal fees and expenses | 21,609 | |||||||||
Audit fee | 13,389 | |||||||||
Miscellaneous | 38,566 | |||||||||
|
| |||||||||
Total expenses | 27,591,659 | |||||||||
Less: Fee waiver and/or expense reimbursement(a) | (704,882 | ) | ||||||||
Distribution fee waiver(a) | (417,591 | ) | ||||||||
|
| |||||||||
Net expenses | 26,469,186 | |||||||||
|
| |||||||||
Net investment income (loss) | (8,694,704 | ) | ||||||||
|
| |||||||||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||||||||
Net realized gain (loss) on: | ||||||||||
Investment transactions (including affiliated of $(77,105)) | (293,232,289 | ) | ||||||||
Foreign currency transactions | (681,922 | ) | ||||||||
|
| |||||||||
(293,914,211 | ) | |||||||||
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||
Investments (including affiliated of $21,722) | (2,054,604,960 | ) | ||||||||
Foreign currencies | (217,739 | ) | ||||||||
|
| |||||||||
(2,054,822,699 | ) | |||||||||
|
| |||||||||
Net gain (loss) on investment and foreign currency transactions | (2,348,736,910 | ) | ||||||||
|
| |||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (2,357,431,614 | ) | |||||||
|
|
See Notes to Financial Statements.
16 |
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class R | Class Z | Class R2 | Class R4 | Class R6 | |||||||||||||||||||||||||||||
Distribution fee | 266,009 | 181,041 | 1,119,769 | — | 15,305 | — | — | ||||||||||||||||||||||||||||
Shareholder servicing fees | — | — | — | — | 6,122 | 6,468 | — | ||||||||||||||||||||||||||||
Transfer agent’s fees and expenses | 113,327 | 16,576 | 224,233 | 1,682,056 | 9,412 | 12,204 | 7,665 | ||||||||||||||||||||||||||||
Registration fees | 15,372 | 7,934 | 3,900 | 73,888 | 3,659 | 3,658 | 64,962 | ||||||||||||||||||||||||||||
Fee waiver and/or expense reimbursement | (117,325 | ) | (11,440 | ) | (83 | ) | (567,428 | ) | (3,137 | ) | (5,333 | ) | (136 | ) | |||||||||||||||||||||
Distribution fee waiver | (44,335 | ) | — | (373,256 | ) | — | — | — | — |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 17 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | (8,694,704 | ) | $ | (24,566,284 | ) | ||||
Net realized gain (loss) on investment and foreign currency transactions | (293,914,211 | ) | 18,155,566 | |||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (2,054,822,699 | ) | 1,213,359,467 | |||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | (2,357,431,614 | ) | 1,206,948,749 | |||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class A | (183,451 | ) | — | |||||||
Class C | (38,591 | ) | — | |||||||
Class R | (300,115 | ) | — | |||||||
Class Z | (3,181,466 | ) | — | |||||||
Class R2 | (11,964 | ) | — | |||||||
Class R4 | (13,002 | ) | — | |||||||
Class R6 | (1,876,760 | ) | — | |||||||
|
|
|
| |||||||
(5,605,349 | ) | — | ||||||||
|
|
|
| |||||||
Fund share transactions (Net of share conversions) | ||||||||||
Net proceeds from shares sold | 2,320,962,703 | 3,741,129,832 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 5,596,238 | — | ||||||||
Cost of shares purchased | (1,556,165,406 | ) | (1,121,686,711 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | 770,393,535 | 2,619,443,121 | ||||||||
|
|
|
| |||||||
Total increase (decrease) | (1,592,643,428 | ) | 3,826,391,870 | |||||||
Net Assets: | ||||||||||
Beginning of period | 6,254,716,248 | 2,428,324,378 | ||||||||
|
|
|
| |||||||
End of period | $ | 4,662,072,820 | $ | 6,254,716,248 | ||||||
|
|
|
|
See Notes to Financial Statements.
18 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months April 30, 2022 | | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.51 | $28.14 | $19.51 | $15.82 | $17.10 | $12.36 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.25 | ) | (0.12 | ) | 0.01 | (0.06 | ) | (0.01 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (12.87 | ) | 10.62 | 8.75 | 3.68 | (1.22 | ) | 4.75 | ||||||||||||||||||||
Total from investment operations | (12.95 | ) | 10.37 | 8.63 | 3.69 | (1.28 | ) | 4.74 | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | - | - | - | - | - | |||||||||||||||||||||
Net asset value, end of period | $25.53 | $38.51 | $28.14 | $19.51 | $15.82 | $17.10 | ||||||||||||||||||||||
Total Return(b): | (33.64 | )% | 36.90 | % | 44.11 | % | 23.39 | % | (7.49 | )% | 38.35 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $138,137 | $208,515 | $76,093 | $26,778 | $14,496 | $5,303 | ||||||||||||||||||||||
Average net assets (000) | $178,809 | $142,641 | $46,059 | $20,599 | $10,393 | $3,121 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.09 | %(e) | 1.09 | % | 1.09 | % | 1.09 | % | 1.13 | % | 1.15 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.27 | %(e) | 1.27 | % | 1.34 | % | 1.46 | % | 1.55 | % | 1.63 | % | ||||||||||||||||
Net investment income (loss) | (0.48 | )%(e) | (0.71 | )% | (0.52 | )% | 0.04 | % | (0.32 | )% | (0.07 | )% | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 41 | % | 43 | % | 53 | % | 59 | % | 69 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 19 |
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||
Six Months April 30, 2022 | | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $35.82 | $26.38 | $18.44 | $15.08 | $16.43 | $11.96 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.19 | ) | (0.50 | ) | (0.29 | ) | (0.13 | ) | (0.18 | ) | (0.11 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (11.96 | ) | 9.94 | 8.23 | 3.49 | (1.17 | ) | 4.58 | ||||||||||||||||||||
Total from investment operations | (12.15 | ) | 9.44 | 7.94 | 3.36 | (1.35 | ) | 4.47 | ||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | - | - | - | - | - | |||||||||||||||||||||
Net asset value, end of period | $23.64 | $35.82 | $26.38 | $18.44 | $15.08 | $16.43 | ||||||||||||||||||||||
Total Return(b): | (33.94 | )% | 35.84 | % | 43.00 | % | 22.28 | % | (8.22 | )% | 37.37 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $28,737 | $40,128 | $16,411 | $5,302 | $3,800 | $1,759 | ||||||||||||||||||||||
Average net assets (000) | $36,508 | $28,884 | $9,894 | $4,683 | $3,449 | $1,080 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.90 | %(e) | 1.90 | % | 1.90 | % | 1.91 | % | 1.92 | % | 1.89 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.96 | %(e) | 1.97 | % | 2.15 | % | 2.33 | % | 2.54 | % | 2.32 | % | ||||||||||||||||
Net investment income (loss) | (1.28 | )%(e) | (1.52 | )% | (1.32 | )% | (0.80 | )% | (1.05 | )% | (0.80 | )% | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 41 | % | 43 | % | 53 | % | 59 | % | 69 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
20 |
Class R Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months 2022 | Year Ended October 31, | November 20, 2017(a) October 31, 2018 | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.17 | $27.98 | $19.48 | $15.86 | �� | $17.62 | ||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.14 | ) | (0.37 | ) | (0.20 | ) | (0.06 | ) | (0.09 | ) | ||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (12.75 | ) | 10.56 | 8.70 | 3.68 | (1.67 | ) | |||||||||||||||||||||||||||||||||
Total from investment operations | (12.89 | ) | 10.19 | 8.50 | 3.62 | (1.76 | ) | |||||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||
Net asset value, end of period | $25.25 | $38.17 | $27.98 | $19.48 | $15.86 | |||||||||||||||||||||||||||||||||||
Total Return(c): | (33.81 | )% | 36.42 | % | 43.56 | % | 22.89 | % | (9.99 | )% | ||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $254,171 | $358,284 | $291,162 | $280,311 | $266,294 | |||||||||||||||||||||||||||||||||||
Average net assets (000) | $301,080 | $340,986 | $281,238 | $278,086 | $299,955 | |||||||||||||||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.48 | %(e) | 1.47 | % | 1.47 | % | 1.47 | % | 1.46 | %(e) | ||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.73 | %(e) | 1.72 | % | 1.77 | % | 1.81 | % | 1.80 | %(e) | ||||||||||||||||||||||||||||||
Net investment income (loss) | (0.85 | )%(e) | (1.08 | )% | (0.87 | )% | (0.36 | )% | (0.53 | )%(e) | ||||||||||||||||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 41 | % | 43 | % | 53 | % | 59 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 21 |
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||
Six Months 2022 | | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $39.17 | $28.56 | $19.77 | $16.01 | $17.29 | $12.50 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | (0.18 | ) | (0.10 | ) | 0.03 | (0.01 | ) | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (13.10 | ) | 10.79 | 8.89 | 3.74 | (1.24 | ) | 4.79 | ||||||||||||||||||||
Total from investment operations | (13.15 | ) | 10.61 | 8.79 | 3.77 | (1.25 | ) | 4.82 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | - | - | - | (0.01 | ) | (0.03 | ) | (0.03 | ) | |||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | - | - | - | - | - | |||||||||||||||||||||
Total dividends and distributions | (0.03 | ) | - | - | (0.01 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||||||||
Net asset value, end of period | $25.99 | $ 39.17 | $28.56 | $19.77 | $16.01 | $17.29 | ||||||||||||||||||||||
Total Return(b): | (33.59 | )% | 37.15 | % | 44.46 | % | 23.56 | % | (7.24 | )% | 38.65 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,635,889 | $3,481,110 | $1,364,899 | $208,629 | $104,113 | $28,612 | ||||||||||||||||||||||
Average net assets (000) | $3,303,968 | $2,452,905 | $639,223 | $139,982 | $75,711 | $21,756 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.90 | %(e) | 0.90 | % | 0.90 | % | 0.90 | % | 0.89 | % | 0.89 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.93 | %(e) | 0.94 | % | 0.99 | % | 1.04 | % | 1.04 | % | 1.34 | % | ||||||||||||||||
Net investment income (loss) | (0.28 | )%(e) | (0.51 | )% | (0.38 | )% | 0.15 | % | (0.08 | )% | 0.23 | % | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 41 | % | 43 | % | 53 | % | 59 | % | 69 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
22 |
Class R2 Shares
| |||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | December 27, 2018(a) 2019 | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.72 | $28.35 | $19.70 | $15.10 | |||||||||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.11 | ) | (0.33 | ) | (0.29 | ) | (0.12 | ) | |||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (12.95 | ) | 10.70 | 8.94 | 4.72 | ||||||||||||||||||||||||||||||
Total from investment operations | (13.06 | ) | 10.37 | 8.65 | 4.60 | ||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | - | - | - | ||||||||||||||||||||||||||||||
Net asset value, end of period | $25.63 | $38.72 | $28.35 | $19.70 | |||||||||||||||||||||||||||||||
Total Return(c): | (33.75 | )% | 36.58 | % | 43.91 | % | 30.46 | % | |||||||||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $10,946 | $13,101 | $4,664 | $233 | |||||||||||||||||||||||||||||||
Average net assets (000) | $12,346 | $8,789 | $1,557 | $44 | |||||||||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.34 | %(e) | 1.33 | % | 1.32 | % | 1.26 | %(e) | |||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.39 | %(e) | 1.41 | % | 2.23 | % | 64.97 | %(e) | |||||||||||||||||||||||||||
Net investment income (loss) | (0.69 | )%(e) | (0.92 | )% | (1.06 | )% | (0.76 | )%(e) | |||||||||||||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 41 | % | 43 | % | 53 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 23 |
Financial Highlights (unaudited) (continued)
Class R4 Shares
| |||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | December 27, 2018(a) 2019 | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $39.01 | $28.49 | $19.75 | $15.10 | |||||||||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.25 | ) | (0.11 | ) | (0.02 | ) | |||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (13.04 | ) | 10.77 | 8.85 | 4.67 | ||||||||||||||||||||||||||||||
Total from investment operations | (13.12 | ) | 10.52 | 8.74 | 4.65 | ||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | - | - | - | ||||||||||||||||||||||||||||||
Net asset value, end of period | $25.86 | $39.01 | $28.49 | $19.75 | |||||||||||||||||||||||||||||||
Total Return(c): | (33.67 | )% | 36.97 | % | 44.20 | % | 30.79 | % | |||||||||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $10,179 | $16,892 | $1,359 | $846 | |||||||||||||||||||||||||||||||
Average net assets (000) | $13,042 | $11,907 | $1,023 | $293 | |||||||||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.09 | %(e) | 1.08 | % | 1.04 | % | 0.95 | %(e) | |||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.17 | %(e) | 1.14 | % | 2.47 | % | 10.65 | %(e) | |||||||||||||||||||||||||||
Net investment income (loss) | (0.48 | )%(e) | (0.69 | )% | (0.46 | )% | (0.11 | )%(e) | |||||||||||||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 41 | % | 43 | % | 53 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
24 |
Class R6 Shares
| ||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $39.24 | $28.59 | $19.78 | $16.02 | $17.29 | $12.50 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | (0.16 | ) | (0.08 | ) | 0.04 | (0.01 | ) | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (13.14 | ) | 10.81 | 8.89 | 3.74 | (1.22 | ) | 4.79 | ||||||||||||||||||||
Total from investment operations | (13.17 | ) | 10.65 | 8.81 | 3.78 | (1.23 | ) | 4.83 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | - | - | - | (0.02 | ) | (0.04 | ) | (0.04 | ) | |||||||||||||||||||
Distributions from net realized gains | (0.03 | ) | - | - | - | - | - | |||||||||||||||||||||
Total dividends and distributions | (0.03 | ) | - | - | (0.02 | ) | (0.04 | ) | (0.04 | ) | ||||||||||||||||||
Net asset value, end of period | $26.04 | $39.24 | $28.59 | $19.78 | $16.02 | $17.29 | ||||||||||||||||||||||
Total Return(b): | (33.58 | )% | 37.25 | % | 44.54 | % | 23.72 | % | (7.15 | )% | 38.75 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,584,015 | $2,136,686 | $673,736 | $101,975 | $35,141 | $26,252 | ||||||||||||||||||||||
Average net assets (000) | $1,944,513 | $1,445,464 | $295,968 | $54,900 | $26,736 | $24,927 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.83 | %(e) | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.83 | %(e) �� | 0.84 | % | 0.91 | % | 0.98 | % | 1.00 | % | 1.30 | % | ||||||||||||||||
Net investment income (loss) | (0.21 | )%(e) | (0.46 | )% | (0.32 | )% | 0.20 | % | (0.05 | )% | 0.28 | % | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 41 | % | 43 | % | 53 | % | 59 | % | 69 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 25 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Jennison International Opportunities Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek long-term growth of capital.
2. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (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. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some
26 |
of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the 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 funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any
PGIM Jennison International Opportunities Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
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 exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating
28 |
factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
PGIM Jennison International Opportunities Fund | 29 |
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: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |
Net Investment Income | Annually | |
Short-Term Capital Gains | Annually | |
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
30 |
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | ||||
0.825% on average daily net assets up to and including $1 billion; | 0.804% | ||||
0.80% on average daily net assets exceeding $1 billion. |
The Manager has contractually agreed, through February 28, 2023, to limit certain operating expenses and/or to limit total annual operating expenses after fee waivers and/or expense reimbursements. The contractual waivers exclude interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year. The expense limitations attributable to each class are as follows:
Class | Fund Expense Limitation* | Class Expense Limitation | ||||||||
A | 0.84 | % | 1.09 | % | ||||||
C | 0.84 | 1.90 | ** | |||||||
R | 0.84 | 1.48 | ** | |||||||
Z | 0.84 | 0.90 | ** | |||||||
R2 | 0.84 | 1.34 | *** | |||||||
R4 | 0.84 | 1.09 | *** | |||||||
R6 | 0.84 | 0.84 | ** |
*Expense limitation excludes distribution and service (12b-1) fees, shareholder service fee, and transfer agency expenses (including sub-transfer agency and networking fees).
**Expense waiver/reimbursement limited to 0.06% on an annualized basis.
***Expense limitation applicable only to blue sky fees, shareholder service fee, and transfer agency expenses (including sub-transfer agency and networking fees).
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class R, Class Z, Class R2, Class R4 and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class C, Class R and
PGIM Jennison International Opportunities Fund | 31 |
Notes to Financial Statements (unaudited) (continued)
Class R2 shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through February 28, 2023 to limit such fees on certain classes based on the average daily net assets. The distribution fees are accrued daily and payable monthly.
The Fund has adopted a Shareholder Services Plan with respect to Class R2 and Class R4 shares. Under the terms of the Shareholder Services Plan, Class R2 and Class R4 shares are authorized to compensate Prudential Mutual Fund Services LLC (“PMFS”), its affiliates or third-party service providers for services rendered to the shareholders of such Class R2 or Class R4 shares. The shareholder service fee is accrued daily and paid monthly, as applicable.
The Fund’s annual gross and net distribution rate and maximum shareholder service fee, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | Shareholder Service Fee | ||||||||||||
A | 0.30 | % | 0.25 | % | N/A | % | |||||||||
C | 1.00 | 1.00 | N/A | ||||||||||||
R | 0.75 | 0.50 | N/A | ||||||||||||
Z | N/A | N/A | N/A | ||||||||||||
R2 | 0.25 | 0.25 | 0.10 | ||||||||||||
R4 | N/A | N/A | 0.10 | ||||||||||||
R6 | N/A | N/A | N/A |
For the reporting period ended April 30, 2022, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||||||||
A | $ | 330,934 | $ | 1,265 | ||||||
C | — | 9,580 |
PGIM Investments, PIMS, PMFS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
32 |
4. Other Transactions with Affiliates
PMFS serves as the Fund’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 fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
Cost of Purchases | Proceeds from Sales | |
$2,366,623,053 | $1,734,403,810 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2022, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) | ||||||||||||||||||||||||||||||||||
$101,909,396 | $ 474,801,449 | $ 576,710,845 | $ — | $ — | $ — | — | $29,833 |
PGIM Jennison International Opportunities Fund | 33 |
Notes to Financial Statements (unaudited) (continued)
Value, of Period | Cost of Purchases | Proceeds from Sales | Change in (Loss) | Realized (Loss) | Value, End of | Shares, End Period | Income | |||||||
PGIM Institutional Money Market Fund(1)(b)(wa) | ||||||||||||||
$ 45,167,540 | $ 847,122,312 | $ 807,176,398 | $21,722 | $(77,105) | $85,058,071 | 85,126,172 | $48,432(2) | |||||||
$147,076,936 | $1,321,923,761 | $1,383,887,243 | $21,722 | $(77,105) | $85,058,071 | $78,265 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Depreciation | |||||||||||||||||||
$4,947,160,141 | $250,147,576 | $(488,585,578) | $(238,438,002) |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
The Fund elected to treat late year ordinary income losses of approximately $21,429,000 as having been incurred in the following fiscal year (October 31, 2022).
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, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class R, Class Z, Class R2, Class R4 and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement
34 |
and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class R, Class Z, Class R2, Class R4 and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
The RIC is authorized to issue 10,225,000,000 shares of common stock, $0.00001 par value per share, 3,550,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
Class | Number of Shares | |
A | 150,000,000 | |
C | 100,000,000 | |
R | 100,000,000 | |
Z | 2,000,000,000 | |
R2 | 100,000,000 | |
R4 | 100,000,000 | |
R6 | 1,000,000,000 |
As of April 30, 2022, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||||||||||||||||||
R | 10,067,376 | 100.0 | % | |||||||||||||||||
R2 | 663 | 0.2 | ||||||||||||||||||
R4 | 11,785 | 3.0 | ||||||||||||||||||
R6 | 521 | 0.1 |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||||||||||||||||||
Affiliated | 1 | 5.5 | % | |||||||||||||||||
Unaffiliated | 5 | 71.6 |
PGIM Jennison International Opportunities Fund | 35 |
Notes to Financial Statements (unaudited) (continued)
Transactions in shares of common stock were as follows:
Share Class | Shares | Amount | ||||||||
Class A | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 1,262,721 | $ | 41,243,815 | |||||||
Shares issued in reinvestment of dividends and distributions | 5,200 | 182,714 | ||||||||
Shares purchased | (1,273,869 | ) | (39,383,145 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | (5,948 | ) | 2,043,384 | |||||||
Shares issued upon conversion from other share class(es) | 196,430 | 6,420,400 | ||||||||
Shares purchased upon conversion into other share class(es) | (193,305 | ) | (6,430,299 | ) | ||||||
Net increase (decrease) in shares outstanding | (2,823 | ) | $ | 2,033,485 | ||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 3,295,095 | $ | 113,856,416 | |||||||
Shares purchased | (645,468 | ) | (22,275,031 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 2,649,627 | 91,581,385 | ||||||||
Shares issued upon conversion from other share class(es) | 231,486 | 8,009,475 | ||||||||
Shares purchased upon conversion into other share class(es) | (171,779 | ) | (6,016,914 | ) | ||||||
Net increase (decrease) in shares outstanding | 2,709,334 | $ | 93,573,946 | |||||||
Class C | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 328,853 | $ | 10,175,372 | |||||||
Shares issued in reinvestment of dividends and distributions | 1,181 | 38,543 | ||||||||
Shares purchased | (205,174 | ) | (5,686,422 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 124,860 | 4,527,493 | ||||||||
Shares purchased upon conversion into other share class(es) | (29,780 | ) | (897,061 | ) | ||||||
Net increase (decrease) in shares outstanding | 95,080 | $ | 3,630,432 | |||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 671,538 | $ | 21,597,459 | |||||||
Shares purchased | (72,681 | ) | (2,330,925 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 598,857 | 19,266,534 | ||||||||
Shares purchased upon conversion into other share class(es) | (100,679 | ) | (3,132,283 | ) | ||||||
Net increase (decrease) in shares outstanding | 498,178 | $ | 16,134,251 |
36 |
Share Class | Shares | Amount | ||||||||
Class R | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 1,393,325 | $ | 42,316,892 | |||||||
Shares issued in reinvestment of dividends and distributions | 8,622 | 300,115 | ||||||||
Shares purchased | (722,254 | ) | (22,302,783 | ) | ||||||
Net increase (decrease) in shares outstanding | 679,693 | $ | 20,314,224 | |||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 757,793 | $ | 24,410,460 | |||||||
Shares purchased | (1,774,362 | ) | (60,549,305 | ) | ||||||
Net increase (decrease) in shares outstanding | (1,016,569 | ) | $ | (36,138,845 | ) | |||||
Class Z | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 50,984,451 | $ | 1,685,721,309 | |||||||
Shares issued in reinvestment of dividends and distributions | 88,911 | 3,178,566 | ||||||||
Shares purchased | (38,376,557 | ) | (1,175,176,626 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 12,696,805 | 513,723,249 | ||||||||
Shares issued upon conversion from other share class(es) | 158,113 | 5,205,788 | ||||||||
Shares purchased upon conversion into other share class(es) | (298,392 | ) | (9,825,295 | ) | ||||||
Net increase (decrease) in shares outstanding | 12,556,526 | $ | 509,103,742 | |||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 65,487,151 | $ | 2,317,934,026 | |||||||
Shares purchased | (20,037,303 | ) | (704,435,367 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 45,449,848 | 1,613,498,659 | ||||||||
Shares issued upon conversion from other share class(es) | 246,910 | 8,620,461 | ||||||||
Shares purchased upon conversion into other share class(es) | (4,617,431 | ) | (161,788,669 | ) | ||||||
Net increase (decrease) in shares outstanding | 41,079,327 | $ | 1,460,330,451 | |||||||
Class R2 | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 117,120 | $ | 3,848,165 | |||||||
Shares issued in reinvestment of dividends and distributions | 339 | 11,964 | ||||||||
Shares purchased | (28,770 | ) | (945,242 | ) | ||||||
Net increase (decrease) in shares outstanding | 88,689 | $ | 2,914,887 | |||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 249,628 | $ | 8,603,079 | |||||||
Shares purchased | (73,779 | ) | (2,605,355 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 175,849 | 5,997,724 | ||||||||
Shares purchased upon conversion into other share class(es) | (2,016 | ) | (73,177 | ) | ||||||
Net increase (decrease) in shares outstanding | 173,833 | $ | 5,924,547 |
PGIM Jennison International Opportunities Fund | 37 |
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||||
Class R4 | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 123,940 | $ | 3,840,104 | |||||||
Shares issued in reinvestment of dividends and distributions | 365 | 13,002 | ||||||||
Shares purchased | (163,669 | ) | (5,250,906 | ) | ||||||
Net increase (decrease) in shares outstanding | (39,364 | ) | $ | (1,397,800 | ) | |||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 720,254 | $ | 24,255,406 | |||||||
Shares purchased | (334,901 | ) | (11,278,535 | ) | ||||||
Net increase (decrease) in shares outstanding | 385,353 | $ | 12,976,871 | |||||||
Class R6 | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 16,103,286 | $ | 533,817,046 | |||||||
Shares issued in reinvestment of dividends and distributions | 52,243 | 1,871,334 | ||||||||
Shares purchased | (9,947,171 | ) | (307,420,282 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 6,208,358 | 228,268,098 | ||||||||
Shares issued upon conversion from other share class(es) | 185,152 | 6,289,132 | ||||||||
Shares purchased upon conversion into other share class(es) | (21,076 | ) | (762,665 | ) | ||||||
Net increase (decrease) in shares outstanding | 6,372,434 | $ | 233,794,565 | |||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 35,440,308 | $ | 1,230,472,986 | |||||||
Shares purchased | (8,950,166 | ) | (318,212,193 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 26,490,142 | 912,260,793 | ||||||||
Shares issued upon conversion from other share class(es) | 4,411,797 | 154,824,965 | ||||||||
Shares purchased upon conversion into other share class(es) | (12,007 | ) | (443,858 | ) | ||||||
Net increase (decrease) in shares outstanding | 30,889,932 | $ | 1,066,641,900 |
8. Borrowings
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||||||||
Term of Commitment | 10/1/2021 – 9/29/2022 | |||||||
Total Commitment | $ 1,200,000,000 | |||||||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% |
38 |
SCA | ||||||
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 |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2022.
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Country Risk: Changes in the business environment may adversely affect operating profits or the value of assets in a specific country. For example, financial factors such as currency controls, devaluation or regulatory changes or stability factors such as mass riots, civil war and other potential events may contribute to companies’ operational risks.
Currency Risk: The Fund’s net asset value could decline as a result of changes in exchange rates, which could adversely affect the Fund’s investments in currencies, or in securities that trade in, and receive revenues related to, currencies, or in derivatives that provide exposure to currencies. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
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
PGIM Jennison International Opportunities Fund | 39 |
Notes to Financial Statements (unaudited) (continued)
those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
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.
40 |
Growth Style Risk: The Fund’s growth style may subject the Fund to above-average fluctuations as a result of seeking higher than average capital growth. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Since the Fund follows a growth investment style, there is the risk that the growth investment style may be out of favor for long periods of time. At times when the style is out of favor, the Fund may underperform the market in general, its benchmark and other mutual funds.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Investments in China Risk: Investments in China subject the Fund to risks specific to China and may make it more volatile than other funds. Over the last few decades, the Chinese government has undertaken reform of economic and market practices and has expanded the sphere of private ownership of property in China. However, Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries, including military conflicts in response to such events, may also disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation.
China has experienced security concerns, such as terrorism and strained international relations. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and the Fund’s investments. Export growth continues to be a major driver of China’s rapid economic growth. Reduction in spending on Chinese products and services, institution of additional tariffs or other trade barriers, including as a result of heightened trade tensions between China and the U.S., or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy or the Fund. For example, a series of executive orders issued between November 2020 and June 2021 prohibit the Fund from investing in certain companies identified by the U.S. government as “Chinese Military Industrial Complex Companies.” The restrictions in these executive orders may force the subadviser to sell certain positions and may restrict the Fund from future investments the subadviser deems otherwise attractive.
Chinese companies, including Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulatory requirements, accounting standards or auditor oversight as companies in more developed countries, and as a result, information about the Chinese securities in which the Fund invests may be less reliable or complete. There may be
PGIM Jennison International Opportunities Fund | 41 |
Notes to Financial Statements (unaudited) (continued)
significant obstacles to obtaining information necessary for investigations into or litigation against Chinese companies and shareholders may have limited legal remedies.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with the market, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
42 |
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
PGIM Jennison International Opportunities Fund | 43 |
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 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 Board.
At a meeting of the Board on March 1-3, 2022, 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 January 1, 2021 through December 31, 2021 (“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.
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∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street | (800) 225-1852 | pgim.com/investments |
PROXY VOTING | ||||
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS | ||||
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS | ||||
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Isabelle Sajous, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick E. McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse M. McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison International Opportunities Fund PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter at sec.gov.
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Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM JENNISON INTERNATIONAL OPPORTUNITIES FUND
SHARE CLASS | A | C | R | Z | R2 | R4 | R6 | |||||||
NASDAQ | PWJAX | PWJCX | PWJRX | PWJZX | PWJBX | PWJDX | PWJQX | |||||||
CUSIP | 743969677 | 743969669 | 743969487 | 743969651 | 743969412 | 743969396 | 743969586 |
MF215E2
PGIM JENNISON GLOBAL INFRASTRUCTURE FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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Holdings and Financial Statements
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This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
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| Dear Shareholder:
We hope you find the semiannual report for the PGIM Jennison Global Infrastructure Fund informative and useful. The report covers performance for the six-month period ended April 30, 2022.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. | ||
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President PGIM Jennison Global Infrastructure Fund June 15, 2022
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PGIM Jennison Global Infrastructure Fund | 3 |
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 4/30/22 | Average Annual Total Returns as of 4/30/22 | |||||||
(without sales charges) | (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class A | -0.69 | 2.33 | 6.49 | 6.87 (09/25/2013) | ||||
Class C | -1.01 | 6.52 | 6.89 | 6.77 (09/25/2013) | ||||
Class Z | -0.54 | 8.61 | 8.03 | 7.87 (09/25/2013) | ||||
Class R6 | -0.48 | 8.69 | 8.03 | 9.29 (12/28/2016) | ||||
S&P Global Infrastructure Index | ||||||||
4.55 | 8.23 | 5.70 | — | |||||
S&P 500 Index | ||||||||
-9.64 | 0.21 | 13.65 | — |
Average Annual Total Returns as of 4/30/22 Since Inception (%) | ||||
Class A, Class C, Class Z
| Class R6
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S&P Global Infrastructure Index | 6.04 | 7.15 | ||
S&P 500 Index | 13.19 | 14.22 |
*Not annualized
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Indexes are measured from the closest month-end to the class’s inception date.
4 | Visit our website at pgim.com/investments |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A
| Class C
| Class Z
| Class R6
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Maximum initial sales charge | 5.50% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | None | None |
Benchmark Definitions
S&P Global Infrastructure Index—The S&P Global Infrastructure Index is an unmanaged index that consists of 75 companies from around the world that represent the listed infrastructure universe. To create diversified exposure across the global listed infrastructure market, the Index has balanced weights across three distinct infrastructure clusters: Utilities, Transportation, and Energy.
S&P 500 Index*—The S&P 500 Index is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
*The S&P 500 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2022 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
Investors cannot invest directly in an index. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Jennison Global Infrastructure Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
Cheniere Energy, Inc. | Oil, Gas & Consumable Fuels | United States | 5.7% | |||
NextEra Energy, Inc. | Electric Utilities | United States | 4.9% | |||
CenterPoint Energy, Inc. | Multi-Utilities | United States | 4.7% | |||
Targa Resources Corp. | Oil, Gas & Consumable Fuels | United States | 4.7% | |||
SBA Communications Corp., REIT | Equity Real Estate Investment Trusts (REITs) | United States | 4.5% | |||
Ferrovial SA | Construction & Engineering | Spain | 3.3% | |||
Dominion Energy, Inc. | Multi-Utilities | United States | 3.2% | |||
National Grid plc | Multi-Utilities | United Kingdom | 3.0% | |||
Union Pacific Corp. | Road & Rail | United States | 2.9% | |||
Public Service Enterprise Group, Inc. | Multi-Utilities | United States | 2.8% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Jennison Global Infrastructure Fund | 7 |
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison Global | Beginning Account Value November 1, 2021 | Ending Account Value | Annualized Expense Ratio Based on the | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $ 1,000.00 | $ 993.10 | 1.50% | $ 7.41 | |||||
Hypothetical | $ 1,000.00 | $ 1,017.36 | 1.50% | $ 7.50 | ||||||
Class C | Actual | $ 1,000.00 | $ 989.90 | 2.25% | $ 11.10 | |||||
Hypothetical | $ 1,000.00 | $ 1,013.64 | 2.25% | $ 11.23 | ||||||
Class Z | Actual | $ 1,000.00 | $ 994.60 | 1.17% | $ 5.79 | |||||
Hypothetical | $ 1,000.00 | $ 1,018.99 | 1.17% | $ 5.86 | ||||||
Class R6 | Actual | $ 1,000.00 | $ 995.20 | 1.17% | $ 5.79 | |||||
Hypothetical | $ 1,000.00 | $ 1,018.99 | 1.17% | $ 5.86 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2022
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 96.8% | ||||||||
COMMON STOCKS 94.5% | ||||||||
Australia 1.0% | ||||||||
Transurban Group | 69,181 | $ | 692,348 | |||||
Canada 5.5% | ||||||||
Canadian National Railway Co. | 10,485 | 1,233,246 | ||||||
Canadian Pacific Railway Ltd. | 12,646 | 925,034 | ||||||
Enbridge, Inc. | 37,845 | 1,651,493 | ||||||
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3,809,773 | ||||||||
China 1.3% | ||||||||
China Longyuan Power Group Corp. Ltd. (Class H Stock) | 468,779 | 905,045 | ||||||
France 6.4% | ||||||||
Eiffage SA | 19,021 | 1,879,991 | ||||||
Veolia Environnement SA | 32,445 | 952,286 | ||||||
Vinci SA | 16,046 | 1,550,478 | ||||||
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4,382,755 | ||||||||
Germany 1.9% | ||||||||
RWE AG | 30,833 | 1,278,823 | ||||||
India 1.2% | ||||||||
Power Grid Corp. of India Ltd. | 279,035 | 828,167 | ||||||
Italy 5.9% | ||||||||
Atlantia SpA* | 67,932 | 1,610,648 | ||||||
Enav SpA, 144A* | 142,939 | 660,184 | ||||||
Terna - Rete Elettrica Nazionale | 220,318 | 1,793,134 | ||||||
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4,063,966 | ||||||||
Mexico 3.3% | ||||||||
Grupo Aeroportuario del Pacifico SAB de CV (Class B Stock) | 100,241 | 1,544,300 | ||||||
Grupo Aeroportuario del Sureste SAB de CV (Class B Stock) | 34,825 | 759,421 | ||||||
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2,303,721 | ||||||||
New Zealand 1.4% | ||||||||
Auckland International Airport Ltd.* | 189,481 | 951,123 | ||||||
Spain 9.3% | ||||||||
Aena SME SA, 144A* | 11,958 | 1,701,509 |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Spain (cont’d.) | ||||||||
Cellnex Telecom SA, 144A | 36,500 | $ | 1,698,564 | |||||
Ferrovial SA | 88,190 | 2,264,488 | ||||||
Sacyr SA | 268,112 | 723,711 | ||||||
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6,388,272 | ||||||||
United Kingdom 3.0% | ||||||||
National Grid PLC | 139,299 | 2,078,907 | ||||||
United States 54.3% | ||||||||
American Tower Corp., REIT | 3,517 | 847,667 | ||||||
CenterPoint Energy, Inc. | 106,332 | 3,254,823 | ||||||
Cheniere Energy, Inc. | 28,672 | 3,893,944 | ||||||
CMS Energy Corp. | 16,190 | 1,112,091 | ||||||
Constellation Energy Corp. | 17,768 | 1,052,043 | ||||||
Dominion Energy, Inc. | 27,245 | 2,224,282 | ||||||
Exelon Corp. | 33,868 | 1,584,345 | ||||||
FirstEnergy Corp. | 39,636 | 1,716,635 | ||||||
NextEra Energy Partners LP | 11,583 | 772,123 | ||||||
NextEra Energy, Inc. | 47,612 | 3,381,404 | ||||||
NiSource, Inc. | 46,231 | 1,346,247 | ||||||
Norfolk Southern Corp. | 6,638 | 1,711,808 | ||||||
Public Service Enterprise Group, Inc. | 28,105 | 1,957,794 | ||||||
SBA Communications Corp., REIT | 9,005 | 3,125,726 | ||||||
Targa Resources Corp. | 43,809 | 3,216,019 | ||||||
Union Pacific Corp. | 8,469 | 1,984,202 | ||||||
Waste Connections, Inc. | 8,290 | 1,143,771 | ||||||
Williams Cos., Inc. (The) | 45,532 | 1,561,292 | ||||||
Xcel Energy, Inc. | 20,904 | 1,531,427 | ||||||
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37,417,643 | ||||||||
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TOTAL COMMON STOCKS | 65,100,543 | |||||||
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PREFERRED STOCKS 2.3% | ||||||||
Canada 1.4% | ||||||||
GFL Environmental, Inc., CVT, 6.000%, Maturing 03/15/23 | 13,369 | 915,108 |
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
PREFERRED STOCKS (Continued) | ||||||||
United States 0.9% | ||||||||
NextEra Energy, Inc., CVT, 6.219%, Maturing 09/01/23 | 13,402 | $ | 634,049 | |||||
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TOTAL PREFERRED STOCKS | 1,549,157 | |||||||
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TOTAL LONG-TERM INVESTMENTS | 66,649,700 | |||||||
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SHORT-TERM INVESTMENT 5.0% | ||||||||
UNAFFILIATED FUND | ||||||||
Dreyfus Government Cash Management (Institutional Shares) | 3,482,182 | 3,482,182 | ||||||
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TOTAL INVESTMENTS 101.8% | 70,131,882 | |||||||
Liabilities in excess of other assets (1.8)% | (1,269,832 | ) | ||||||
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NET ASSETS 100.0% | $ | 68,862,050 | ||||||
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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.
CVT—Convertible Security
LIBOR—London Interbank Offered Rate
LP—Limited Partnership
REITs—Real Estate Investment Trust
* | Non-income producing security. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
The following is a summary of the inputs used as of April 30, 2022 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | |||||||||||||
Investments in Securities | |||||||||||||||
Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||
Common Stocks | |||||||||||||||
Australia | $ | — | $ | 692,348 | $— | ||||||||||
Canada | 3,809,773 | — | — | ||||||||||||
China | — | 905,045 | — | ||||||||||||
France | — | 4,382,755 | — | ||||||||||||
Germany | — | 1,278,823 | — | ||||||||||||
India | — | 828,167 | — | ||||||||||||
Italy | — | 4,063,966 | — | ||||||||||||
Mexico | 2,303,721 | — | — | ||||||||||||
New Zealand | — | 951,123 | — | ||||||||||||
Spain | — | 6,388,272 | — | ||||||||||||
United Kingdom | — | 2,078,907 | — | ||||||||||||
United States | 37,417,643 | — | — | ||||||||||||
Preferred Stocks | |||||||||||||||
Canada | 915,108 | — | — | ||||||||||||
United States | 634,049 | — | — | ||||||||||||
Short-Term Investment | |||||||||||||||
Unaffiliated Fund | 3,482,182 | — | — | ||||||||||||
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Total | $ | 48,562,476 | $ | 21,569,406 | $— | ||||||||||
|
|
|
|
|
|
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, 2022 were as follows:
Multi-Utilities | 18.7 | % | ||
Electric Utilities | 18.1 | |||
Oil, Gas & Consumable Fuels | 15.1 | |||
Transportation Infrastructure | 11.5 | |||
Construction & Engineering | 9.3 | |||
Road & Rail | 8.5 | |||
Equity Real Estate Investment Trusts (REITs) | 5.7 | |||
Unaffiliated Fund | 5.0 | |||
Independent Power & Renewable Electricity Producers | 4.3 |
Commercial Services & Supplies | 3.1 | % | ||
Diversified Telecommunication Services | 2.5 | |||
|
| |||
101.8 | ||||
Liabilities in excess of other assets | (1.8 | ) | ||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
12 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Assets | |||||
Unaffiliated investments (cost $59,357,367) | $ | 70,131,882 | |||
Receivable for Fund shares sold | 118,247 | ||||
Dividends receivable | 50,587 | ||||
Tax reclaim receivable | 39,285 | ||||
Prepaid expenses and other assets | 476 | ||||
|
| ||||
Total Assets | 70,340,477 | ||||
|
| ||||
Liabilities | |||||
Payable for investments purchased | 1,312,338 | ||||
Payable for Fund shares purchased | 66,185 | ||||
Accrued expenses and other liabilities | 45,749 | ||||
Management fee payable | 45,156 | ||||
Distribution fee payable | 5,608 | ||||
Affiliated transfer agent fee payable | 2,564 | ||||
Directors’ fees payable | 809 | ||||
Payable to custodian | 18 | ||||
|
| ||||
Total Liabilities | 1,478,427 | ||||
|
| ||||
Net Assets | $ | 68,862,050 | |||
|
| ||||
| |||||
Net assets were comprised of: | |||||
Common stock, at par | $ | 43 | |||
Paid-in capital in excess of par | 57,628,529 | ||||
Total distributable earnings (loss) | 11,233,478 | ||||
|
| ||||
Net assets, April 30, 2022 | $ | 68,862,050 | |||
|
|
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 13 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Class A | |||||
Net asset value and redemption price per share, ($8,276,299 ÷ 521,591 shares of common stock issued and outstanding) | $ | 15.87 | |||
Maximum sales charge (5.50% of offering price) | 0.92 | ||||
|
| ||||
Maximum offering price to public | $ | 16.79 | |||
|
| ||||
Class C | |||||
Net asset value, offering price and redemption price per share, ($4,622,712 ÷ 296,414 shares of common stock issued and outstanding) | $ | 15.60 | |||
|
| ||||
Class Z | |||||
Net asset value, offering price and redemption price per share, ($28,256,769 ÷ 1,778,383 shares of common stock issued and outstanding) | $ | 15.89 | |||
|
| ||||
Class R6 | |||||
Net asset value, offering price and redemption price per share, ($27,706,270 ÷ 1,744,461 shares of common stock issued and outstanding) | $ | 15.88 | |||
|
|
See Notes to Financial Statements.
14 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $29,131 foreign withholding tax) | $ | 629,700 | ||
Affiliated dividend income | 408 | |||
Income from securities lending, net (including affiliated income of $10) | 143 | |||
|
| |||
Total income | 630,251 | |||
|
| |||
Expenses | ||||
Management fee | 289,540 | |||
Distribution fee(a) | 34,002 | |||
Custodian and accounting fees | 30,371 | |||
Transfer agent’s fees and expenses (including affiliated expense of $5,858)(a) | 27,232 | |||
Registration fees(a) | 24,000 | |||
Audit fee | 13,885 | |||
Legal fees and expenses | 9,793 | |||
Shareholders’ reports | 6,227 | |||
Directors’ fees | 4,876 | |||
SEC registration fees | 331 | |||
Miscellaneous | 13,105 | |||
|
| |||
Total expenses | 453,362 | |||
Less: Fee waiver and/or expense reimbursement(a) | (75,239 | ) | ||
Distribution fee waiver(a) | (2,040 | ) | ||
|
| |||
Net expenses | 376,083 | |||
|
| |||
Net investment income (loss) | 254,168 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $83) | 666,526 | |||
Foreign currency transactions | (20,984 | ) | ||
|
| |||
645,542 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (1,582,031 | ) | ||
Foreign currencies | (3,270 | ) | ||
|
| |||
(1,585,301 | ) | |||
|
| |||
Net gain (loss) on investment and foreign currency transactions | (939,759 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (685,591 | ) | |
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 12,242 | 21,760 | — | — | ||||||||||||
Transfer agent’s fees and expenses | 6,702 | 2,810 | 17,667 | 53 | ||||||||||||
Registration fees | 6,179 | 5,869 | 8,025 | 3,927 | ||||||||||||
Fee waiver and/or expense reimbursement | (13,793 | ) | (9,160 | ) | (39,494 | ) | (12,792 | ) | ||||||||
Distribution fee waiver | (2,040 | ) | — | — | — |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 15 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 254,168 | $ | 341,007 | ||||||
Net realized gain (loss) on investment and foreign currency transactions | 645,542 | 3,940,874 | ||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (1,585,301 | ) | 5,696,932 | |||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | (685,591 | ) | 9,978,813 | |||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class A | (550,077 | ) | (43,709 | ) | ||||||
Class C | (288,321 | ) | (3,222 | ) | ||||||
Class Z | (1,799,972 | ) | (226,472 | ) | ||||||
Class R6 | (964,429 | ) | (113,926 | ) | ||||||
|
|
|
| |||||||
(3,602,799 | ) | (387,329 | ) | |||||||
|
|
|
| |||||||
Fund share transactions (Net of share conversions) | ||||||||||
Net proceeds from shares sold | 21,819,834 | 20,222,493 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 3,598,035 | 386,793 | ||||||||
Cost of shares purchased | (7,448,931 | ) | (10,006,347 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Fund share transactions | 17,968,938 | 10,602,939 | ||||||||
|
|
|
| |||||||
Total increase (decrease) | 13,680,548 | 20,194,423 | ||||||||
Net Assets: | ||||||||||
Beginning of period | 55,181,502 | 34,987,079 | ||||||||
|
|
|
| |||||||
End of period | $ | 68,862,050 | $ | 55,181,502 | ||||||
|
|
|
|
See Notes to Financial Statements.
16 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.15 | $13.80 | $14.66 | $12.21 | $13.05 | $11.61 | ||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.06 | 0.09 | 0.14 | 0.18 | 0.16 | 0.14 | ||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.19 | ) | 3.36 | (0.86 | ) | 2.49 | (0.81 | ) | 1.49 | |||||||||||||||||||||||||||||||||
Total from investment operations | (0.13 | ) | 3.45 | (0.72 | ) | 2.67 | (0.65 | ) | 1.63 | |||||||||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.06 | ) | (0.10 | ) | (0.12 | ) | (0.21 | ) | (0.19 | ) | (0.13 | ) | ||||||||||||||||||||||||||||||
Tax return of capital distributions | - | - | (0.02 | ) | (0.01 | ) | - | (0.06 | ) | |||||||||||||||||||||||||||||||||
Distributions from net realized gains | (1.09 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total dividends and distributions | (1.15 | ) | (0.10 | ) | (0.14 | ) | (0.22 | ) | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||||||||||
Net asset value, end of period | $15.87 | $17.15 | $13.80 | $14.66 | $12.21 | $13.05 | ||||||||||||||||||||||||||||||||||||
Total Return(b): | (0.69 | )% | 25.04 | % | (4.93 | )% | 22.01 | % | (5.10 | )% | 14.15 | % | ||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $8,276 | $8,153 | $5,961 | $7,637 | $8,073 | $11,689 | ||||||||||||||||||||||||||||||||||||
Average net assets (000) | $8,229 | $7,154 | $6,859 | $7,718 | $10,218 | $11,433 | ||||||||||||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.50 | %(e) | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.89 | %(e) | 1.99 | % | 2.20 | % | 2.10 | % | 2.00 | % | 1.81 | % | ||||||||||||||||||||||||||||||
Net investment income (loss) | 0.70 | %(e) | 0.55 | % | 0.95 | % | 1.34 | % | 1.21 | % | 1.10 | % | ||||||||||||||||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 72 | % | 62 | % | 62 | % | 75 | % | 80 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 17 |
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.90 | $13.63 | $14.51 | $12.12 | $12.97 | $11.55 | ||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (- | )(b)(c) | (0.03 | )(b) | 0.03 | 0.08 | 0.06 | 0.04 | ||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.18 | ) | 3.31 | (0.84 | ) | 2.45 | (0.81 | ) | 1.50 | |||||||||||||||||||||||||||||||||
Total from investment operations | (0.18 | ) | 3.28 | (0.81 | ) | 2.53 | (0.75 | ) | 1.54 | |||||||||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.03 | ) | (0.01 | ) | (0.05 | ) | (0.13 | ) | (0.10 | ) | (0.08 | ) | ||||||||||||||||||||||||||||||
Tax return of capital distributions | - | - | (0.02 | ) | (0.01 | ) | - | (0.04 | ) | |||||||||||||||||||||||||||||||||
Distributions from net realized gains | (1.09 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total dividends and distributions | (1.12 | ) | (0.01 | ) | (0.07 | ) | (0.14 | ) | (0.10 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||
Net asset value, end of period | $15.60 | $16.90 | $13.63 | $14.51 | $12.12 | $12.97 | ||||||||||||||||||||||||||||||||||||
Total Return(d): | (1.01 | )% | 24.10 | % | (5.63 | )% | 21.01 | % | (5.82 | )% | 13.39 | % | ||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $4,623 | $4,336 | $3,242 | $4,135 | $4,162 | $6,101 | ||||||||||||||||||||||||||||||||||||
Average net assets (000) | $4,388 | $3,720 | $3,771 | $4,131 | $5,464 | $6,111 | ||||||||||||||||||||||||||||||||||||
Ratios to average net assets(e)(f): | ||||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.25 | %(g) | 2.25 | % | 2.25 | % | 2.25 | % | 2.25 | % | 2.25 | % | ||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.67 | %(g) | 2.79 | % | 3.05 | % | 2.90 | % | 2.81 | % | 2.51 | % | ||||||||||||||||||||||||||||||
Net investment income (loss) | (0.05 | )%(g) | (0.21 | )% | 0.21 | % | 0.59 | % | 0.48 | % | 0.34 | % | ||||||||||||||||||||||||||||||
Portfolio turnover rate(h) | 31 | % | 72 | % | 62 | % | 62 | % | 75 | % | 80 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
(c) | Amount rounds to zero. |
(d) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. |
(f) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(g) | Annualized. |
(h) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
18 |
Class Z Shares | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.16 | $13.80 | $14.66 | $12.21 | $13.06 | $11.61 | ||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.14 | 0.18 | 0.23 | 0.19 | 0.18 | ||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.19 | ) | 3.37 | (0.85 | ) | 2.48 | (0.82 | ) | 1.49 | |||||||||||||||||||||||||||||||||
Total from investment operations | (0.11 | ) | 3.51 | (0.67 | ) | 2.71 | (0.63 | ) | 1.67 | |||||||||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.07 | ) | (0.15 | ) | (0.17 | ) | (0.25 | ) | (0.22 | ) | (0.14 | ) | ||||||||||||||||||||||||||||||
Tax return of capital distributions | - | - | (0.02 | ) | (0.01 | ) | - | (0.08 | ) | |||||||||||||||||||||||||||||||||
Distributions from net realized gains | (1.09 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total dividends and distributions | (1.16 | ) | (0.15 | ) | (0.19 | ) | (0.26 | ) | (0.22 | ) | (0.22 | ) | ||||||||||||||||||||||||||||||
Net asset value, end of period | $15.89 | $17.16 | $13.80 | $14.66 | $12.21 | $13.06 | ||||||||||||||||||||||||||||||||||||
Total Return(b): | (0.54 | )% | 25.42 | % | (4.56 | )% | 22.30 | % | (4.94 | )% | 14.51 | % | ||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $28,257 | $25,429 | $20,148 | $21,868 | $23,074 | $28,831 | ||||||||||||||||||||||||||||||||||||
Average net assets (000) | $27,364 | $24,462 | $21,048 | $21,608 | $27,549 | $29,597 | ||||||||||||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.17 | %(e) | 1.17 | % | 1.17 | % | 1.17 | % | 1.25 | % | 1.25 | % | ||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.46 | %(e) | 1.55 | % | 1.66 | % | 1.57 | % | 1.52 | % | 1.51 | % | ||||||||||||||||||||||||||||||
Net investment income (loss) | 1.01 | %(e) | 0.92 | % | 1.25 | % | 1.66 | % | 1.45 | % | 1.49 | % | ||||||||||||||||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 72 | % | 62 | % | 62 | % | 75 | % | 80 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 19 |
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months April 30, 2022 |
Year Ended October 31, | December 28, 2016(a) October 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Per Share Operating Performance(b): |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.15 | $13.80 | $14.66 | $12.21 | $13.06 | $11.39 | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.12 | 0.18 | 0.23 | 0.18 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.19 | ) | 3.38 | (0.85 | ) | 2.48 | (0.81 | ) | 1.71 | |||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.11 | ) | 3.50 | (0.67 | ) | 2.71 | (0.63 | ) | 1.82 | |||||||||||||||||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.07 | ) | (0.15 | ) | (0.17 | ) | (0.25 | ) | (0.22 | ) | (0.10 | ) | ||||||||||||||||||||||||||||||||||||||
Tax return of capital distributions | - | - | (0.02 | ) | (0.01 | ) | - | (0.05 | ) | |||||||||||||||||||||||||||||||||||||||||
Distributions from net realized gains | (1.09 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||
Total dividends and distributions | (1.16 | ) | (0.15 | ) | (0.19 | ) | (0.26 | ) | (0.22 | ) | (0.15 | ) | ||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.88 | $17.15 | $13.80 | $14.66 | $12.21 | $13.06 | ||||||||||||||||||||||||||||||||||||||||||||
Total Return(c): | (0.48 | )% | 25.44 | % | (4.62 | )% | 22.40 | % | (4.94 | )% | 16.02 | % | ||||||||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $27,706 | $17,263 | $5,636 | $11,954 | $13,912 | $21,979 | ||||||||||||||||||||||||||||||||||||||||||||
Average net assets (000) | $18,406 | $11,389 | $8,565 | $13,787 | $17,657 | $19,274 | ||||||||||||||||||||||||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.17 | %(f) | 1.17 | % | 1.17 | % | 1.17 | % | 1.25 | % | 1.25 | %(f) | ||||||||||||||||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.31 | %(f) | 1.40 | % | 1.66 | % | 1.48 | % | 1.44 | % | 1.40 | %(f) | ||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.98 | %(f) | 0.74 | % | 1.28 | % | 1.70 | % | 1.39 | % | 1.00 | %(f) | ||||||||||||||||||||||||||||||||||||||
Portfolio turnover rate(g) | 31 | % | 72 | % | 62 | % | 62 | % | 75 | % | 80 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
20 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Jennison Global Infrastructure Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek total return.
2. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (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. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
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
PGIM Jennison Global Infrastructure Fund | 21 |
Notes to Financial Statements (unaudited) (continued)
of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the 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 funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
22 |
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the
PGIM Jennison Global Infrastructure Fund | 23 |
Notes to Financial Statements (unaudited) (continued)
Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): The Fund invested in REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
24 |
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. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |
Net Investment Income | Quarterly | |
Short-Term Capital Gains | Annually | |
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
PGIM Jennison Global Infrastructure Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effective management fee rates were as follows:
Contractual Management Rate
| Effective Management Fee, before any waivers
| |
1.00% of average daily net assets up to $1 billion;
| 1.00%
| |
0.98% of average daily net assets from $1 billion to $3 billion;
| ||
0.96% of average daily net assets from $3 billion to $5 billion;
| ||
0.95% of average daily net assets from $5 billion to $10 billion;
| ||
0.94% of average daily net assets over $10 billion
|
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives similar expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for the fiscal year. The expense limitations attributable to each class are as follows:
Class | Expense Limitations | |
A
| 1.50%
| |
C
| 2.25
|
26 |
Class | Expense Limitations | |
Z
| 1.17%
| |
R6
| 1.17
|
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through February 28, 2023 to limit such fees on certain classes based on the daily net assets. The distribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | ||
A | 0.30% | 0.25% | ||
C | 1.00 | 1.00 | ||
Z | N/A | N/A | ||
R6 | N/A | N/A |
For the reporting period ended April 30, 2022, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
Class | FESL | CDSC | ||||||
A | $8,861 | $— | ||||||
C | — | 20 |
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. 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 fund of Prudential Investment Portfolios 2,
PGIM Jennison Global Infrastructure Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund 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. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
Cost of Purchases
| Proceeds from Sales
| |
$31,042,093
| $17,814,654
|
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2022, is presented as follows:
Value, Beginning of Period
| Cost of
| Proceeds
| Change in
| Realized
| Value,
| Shares,
| Income
| |||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) |
| |||||||||||||||||||||||||||
$956,348 | $ | 5,817,008 | $ | 6,773,356 | $— | $— | $— | — | $408 | |||||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) |
| |||||||||||||||||||||||||||
— | 1,658,020 | 1,658,103 | — | 83 | — | — | 10 | (2) | ||||||||||||||||||||
$956,348 | $ | 7,475,028 | $ | 8,431,459 | $— | $83 | $— | $418 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
28 |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2022 were as follows:
Tax Basis |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation | |||
$59,514,620 | $11,389,316 | $(772,054) | $10,617,262 |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
PGIM Jennison Global Infrastructure Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
The RIC is authorized to issue 10,225,000,000 shares of common stock, $0.00001 par value per share, 510,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
Class | Number of Shares | |
A | 20,000,000 | |
C | 100,000,000 | |
Z | 150,000,000 | |
T | 115,000,000 | |
R6 | 125,000,000 |
The Fund currently does not have any Class T shares outstanding.
As of April 30, 2022, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||
Z | 603,664 | 33.9% | ||
R6 | 1,359,243 | 77.9 |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||
Affiliated | 2 | 45.3% | ||
Unaffiliated | 4 | 42.3 |
30 |
Transactions in shares of common stock were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 23,288 | $ | 381,772 | |||||
Shares issued in reinvestment of dividends and distributions | 34,832 | 545,473 | ||||||
Shares purchased | (16,434 | ) | (264,930 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 41,686 | 662,315 | ||||||
Shares issued upon conversion from other share class(es) | 7,828 | 126,144 | ||||||
Shares purchased upon conversion into other share class(es) | (3,405 | ) | (56,033 | ) | ||||
Net increase (decrease) in shares outstanding | 46,109 | $ | 732,426 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 89,522 | $ | 1,405,312 | |||||
Shares issued in reinvestment of dividends and distributions | 2,766 | 43,504 | ||||||
Shares purchased | (57,473 | ) | (897,912 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 34,815 | 550,904 | ||||||
Shares issued upon conversion from other share class(es) | 10,887 | 171,733 | ||||||
Shares purchased upon conversion into other share class(es) | (2,205 | ) | (36,384 | ) | ||||
Net increase (decrease) in shares outstanding | 43,497 | $ | 686,253 | |||||
Class C | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 37,722 | $ | 594,986 | |||||
Shares issued in reinvestment of dividends and distributions | 18,686 | 288,321 | ||||||
Shares purchased | (7,235 | ) | (113,082 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 49,173 | 770,225 | ||||||
Shares purchased upon conversion into other share class(es) | (9,272 | ) | (147,152 | ) | ||||
Net increase (decrease) in shares outstanding | 39,901 | $ | 623,073 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 66,892 | $ | 1,050,863 | |||||
Shares issued in reinvestment of dividends and distributions | 202 | 3,137 | ||||||
Shares purchased | (30,598 | ) | (473,603 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 36,496 | 580,397 | ||||||
Shares purchased upon conversion into other share class(es) | (17,810 | ) | (276,678 | ) | ||||
Net increase (decrease) in shares outstanding | 18,686 | $ | 303,719 |
PGIM Jennison Global Infrastructure Fund | 31 |
Notes to Financial Statements (unaudited) (continued)
Share Class | Shares | Amount | ||||||||
Class Z | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 367,603 | $ | 5,991,080 | |||||||
Shares issued in reinvestment of dividends and distributions | 114,931 | 1,799,812 | ||||||||
Shares purchased | (191,074 | ) | (3,033,777 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 291,460 | 4,757,115 | ||||||||
Shares issued upon conversion from other share class(es) | 4,695 | 77,041 | ||||||||
Net increase (decrease) in shares outstanding | 296,155 | $ | 4,834,156 | |||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 582,606 | $ | 8,944,074 | |||||||
Shares issued in reinvestment of dividends and distributions | 14,369 | 226,226 | ||||||||
Shares purchased | (436,186 | ) | (6,746,807 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 160,789 | 2,423,493 | ||||||||
Shares issued upon conversion from other share class(es) | 8,893 | 141,329 | ||||||||
Shares purchased upon conversion into other share class(es) | (146,971 | ) | (2,357,668 | ) | ||||||
Net increase (decrease) in shares outstanding | 22,711 | $ | 207,154 | |||||||
Class R6 | ||||||||||
Six months ended April 30, 2022: | ||||||||||
Shares sold | 915,007 | $ | 14,851,996 | |||||||
Shares issued in reinvestment of dividends and distributions | 61,625 | 964,429 | ||||||||
Shares purchased | (238,741 | ) | (4,037,142 | ) | ||||||
Net increase (decrease) in shares outstanding | 737,891 | $ | 11,779,283 | |||||||
Year ended October 31, 2021: | ||||||||||
Shares sold | 562,092 | $ | 8,822,244 | |||||||
Shares issued in reinvestment of dividends and distributions | 7,162 | 113,926 | ||||||||
Shares purchased | (118,014 | ) | (1,888,025 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | 451,240 | 7,048,145 | ||||||||
Shares issued upon conversion from other share class(es) | 146,971 | 2,357,668 | ||||||||
Net increase (decrease) in shares outstanding | 598,211 | $ | 9,405,813 |
8. Borrowings
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a
32 |
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 SCA.
SCA | ||
Term of Commitment | 10/1/2021 – 9/29/2022 | |
Total Commitment | $1,200,000,000 | |
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 |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended April 30, 2022. The average daily balance for the 5 days that the Fund had loans outstanding during the period was approximately $1,977,000, borrowed at a weighted average interest rate of 1.29%. The maximum loan outstanding amount during the period was $1,977,000. At April 30, 2022, the Fund did not have an outstanding loan amount.
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Blend Style Risk: The Fund’s blend investment style may subject the Fund to risks of both value and growth investing. The portion of the Fund’s portfolio that makes investments pursuant to a growth strategy may be subject to above-average fluctuations as a result of seeking higher than average capital growth. The portion of the Fund’s portfolio that makes investments pursuant to a value strategy may be subject to the risk that the market may not recognize a security’s intrinsic value for long periods of time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. If the Fund’s assessment of market conditions or a company’s value is inaccurate, the Fund could suffer losses or produce poor performance relative to other funds. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of
PGIM Jennison Global Infrastructure Fund | 33 |
Notes to Financial Statements (unaudited) (continued)
economic recovery. Therefore, both styles may over time go in and out of favor with the markets. At times when a style is out of favor, that portion of the portfolio may lag the other portion of the portfolio, which may cause the Fund to underperform the market in general, its benchmark and other mutual funds. Growth and value stocks have historically produced similar long-term results, though each category has periods when it outperforms the other.
Distribution Risk: The Fund’s distributions may consist of net investment income, if any, and net realized gains, if any, from the sale of investments and/or return of capital. The Fund will provide to shareholders early in each calendar year the final tax character of the Fund’s distributions for the previous year. Also, at such time that the Fund distribution is expected to be from sources other than current or accumulated net income, a notice to shareholders may be required.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
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Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States.
Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Infrastructure Companies Risk: Securities of infrastructure companies are more susceptible to adverse economic, social, political and regulatory occurrences than securities of companies in other industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the level of government spending on infrastructure projects, the effects of economic slowdown, surplus capacity, technological changes, casualty losses, insufficient supply of necessary resources, increased competition from other providers of similar services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Certain infrastructure companies may operate in limited areas or have few sources of revenue.
Infrastructure companies may also be affected by or subject to:
∎ regulation by various government authorities, including regulation of rates charged to customers;
PGIM Jennison Global Infrastructure Fund | 35 |
Notes to Financial Statements (unaudited) (continued)
∎ service interruption due to environmental, operational or other mishaps as well as political and social unrest;
∎ the imposition of special tariffs and changes in tax laws and accounting standards; and
∎ general changes in market sentiment towards the assets of infrastructure companies.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with the market, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or
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conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
Master Limited Partnerships Risk: The risks of investing in an MLP are generally those involved in investing in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded investors in an MLP than investors in a corporation. Investments held by MLPs may be relatively illiquid, limiting the MLPs’ ability to vary their portfolios promptly in response to changes in economic or other conditions. MLPs may have limited financial resources, their securities may trade infrequently and in limited volume, and they may be subject to more abrupt or erratic price movements than securities of larger or more broadly-based companies. The Fund’s investment in MLPs also subjects the Fund to the risks associated with the specific industry or industries in which the MLPs invest, risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP’s general
PGIM Jennison Global Infrastructure Fund | 37 |
Notes to Financial Statements (unaudited) (continued)
partner, cash flow risks, dilution risks and risks related to the general partner’s right to require unit-holders to sell their common units at an undesirable time or price. MLPs are generally considered interest-rate sensitive investments. During periods of interest rate volatility, these investments may not provide attractive returns. Since MLPs generally conduct business in multiple states, the Fund may be subject to income or franchise tax in each of the states in which the partnership does business. The additional cost of preparing and filing the tax returns and paying the related taxes may adversely impact the Fund’s return on its investment in MLPs.
Real Estate Investment Trust (“REIT”) Risk: Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management skills, may not be diversified geographically or by property/mortgage asset type, and are subject to heavy cash flow dependency, default by borrowers and self-liquidation. REITs may be more volatile and/or more illiquid than other types of equity securities. REITs (especially mortgage REITs) are subject to interest rate risks. REITs may incur significant amounts of leverage. The Fund will indirectly bear a portion of the expenses, including management fees, paid by each REIT in which it invests, in addition to the expenses of the Fund.
REITs must also meet certain requirements under the Internal Revenue Code of 1986, as amended (the Code) to avoid entity level tax and be eligible to pass-through certain tax attributes of their income to shareholders. REITs are consequently subject to the risk of failing to meet these requirements for favorable tax treatment and of failing to maintain their exemptions from registration under the Investment Company Act of 1940. REITs are subject to the risks of changes in the Code affecting their tax status.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
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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 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 Board.
At a meeting of the Board on March 1-3, 2022, 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 January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to be appropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
PGIM Jennison Global Infrastructure Fund | 39 |
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∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding ● Kevin J. Bannon ● Scott E. Benjamin ● Linda W. Bynoe ● Barry H. Evans ● Keith F. Hartstein ● Laurie Simon Hodrick ● Stuart S. Parker ● Brian K. Reid ● Grace C. Torres |
OFFICERS |
Stuart S. Parker, President ● Scott E. Benjamin, Vice President ● Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer ● Claudia DiGiacomo, Chief Legal Officer ● Isabelle Sajous, Chief Compliance Officer ● Jonathan Corbett, Anti-Money Laundering Compliance Officer ● Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Diana N. Huffman, Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ● Patrick E. McGuinness, Assistant Secretary ● Debra Rubano, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Russ Shupak, Assistant Treasurer ● Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison Global Infrastructure Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter 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 JENNISON GLOBAL INFRASTRUCTURE FUND
SHARE CLASS
| A
| C
| Z
| R6
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NASDAQ
| PGJAX
| PGJCX
| PGJZX
| PGJQX
| ||||
CUSIP
| 743969792
| 743969784
| 743969776
| 743969560
|
MF217E2
PGIM EMERGING MARKETS DEBT
HARD CURRENCY FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 Visit our website at pgim.com/investments
![]() | Dear Shareholder:
We hope you find the semiannual report for the PGIM Emerging Markets Debt Hard Currency Fund informative and useful. The report covers performance for the six-month period ended April 30, 2022.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Emerging Markets Debt Hard Currency Fund
June 15, 2022
PGIM Emerging Markets Debt Hard Currency Fund 3
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
Total Returns as of 4/30/22 | Average Annual Total Returns as of 4/30/22 | |||||
(without sales charges) | (with sales charges) | |||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Class A | -15.51 | -17.14 | -2.28 (12/12/2017) | |||
Class C | -15.84 | -15.83 | -2.28 (12/12/2017) | |||
Class Z | -15.39 | -14.20 | -1.28 (12/12/2017) | |||
Class R6 | -15.34 | -14.11 | -1.19 (12/12/2017) | |||
JP Morgan Emerging Markets Bond Index Global Diversified Index | ||||||
-15.45 | -14.51 | -0.59 |
*Not annualized
Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the Fund’s inception date.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 3.25% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $500,000 or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.25% | 1.00% | None | None |
Benchmark Definition
JP Morgan Emerging Markets Bond Index Global Diversified Index—The JP Morgan Emerging Markets Bond Index Global Diversified Index tracks total returns for USD-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, and eurobonds. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Emerging Markets Debt Hard Currency Fund 5
Your Fund’s Performance (continued)
Credit Quality expressed as a percentage of total investments as of 4/30/22 (%) | ||||
AA | 5.1 | |||
A | 6.5 | |||
BBB | 29.3 | |||
BB | 19.9 | |||
B | 22.8 | |||
CCC | 3.7 | |||
CC | 1.2 | |||
C | 0.3 | |||
Not Rated | 3.0 | |||
Cash/Cash Equivalents | 8.2 | |||
Total | 100.0 |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
Distributions and Yields as of 4/30/22 | ||||||||
Total Distributions Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||||
Class A | 0.25 | 5.27 | –8.55 | |||||
Class C | 0.22 | 4.69 | –68.70 | |||||
Class Z | 0.26 | 5.75 | 5.35 | |||||
Class R6 | 0.27 | 5.88 | 5.74 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investor experience is represented by the SEC 30-Day Subsidized Yield.
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
6 Visit our website at pgim.com/investments
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Emerging Markets Debt Hard Currency Fund 7
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Emerging Markets Debt Hard Currency Fund | Beginning Account Value November 1, 2021 | Ending Account Value April 30, 2022 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||
Class A | Actual | $1,000.00 | $ 844.90 | 1.05% | $4.80 | |||||
Hypothetical | $1,000.00 | $1,019.59 | 1.05% | $5.26 | ||||||
Class C | Actual | $1,000.00 | $ 841.60 | 1.80% | $8.22 | |||||
Hypothetical | $1,000.00 | $1,015.87 | 1.80% | $9.00 | ||||||
Class Z | Actual | $1,000.00 | $ 846.10 | 0.75% | $3.43 | |||||
Hypothetical | $1,000.00 | $1,021.08 | 0.75% | $3.76 | ||||||
Class R6 | Actual | $1,000.00 | $ 846.60 | 0.65% | $2.98 | |||||
Hypothetical | $1,000.00 | $1,021.57 | 0.65% | $3.26 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 Visit our website at pgim.com/investments
Schedule of Investments (unaudited)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal | Value | ||||||||||||
LONG-TERM INVESTMENTS 90.6% | ||||||||||||||||
CORPORATE BONDS 25.8% | ||||||||||||||||
Azerbaijan 0.5% | ||||||||||||||||
Southern Gas Corridor CJSC, | ||||||||||||||||
Gov’t. Gtd. Notes | 6.875% | 03/24/26 | 450 | $ | 478,881 | |||||||||||
State Oil Co. of the Azerbaijan Republic, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.950 | 03/18/30 | 200 | 217,097 | ||||||||||||
|
| |||||||||||||||
695,978 | ||||||||||||||||
Bahrain 0.5% | ||||||||||||||||
Oil & Gas Holding Co. BSCC (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 11/07/24 | 400 | 419,179 | ||||||||||||
Sr. Unsec’d. Notes | 8.375 | 11/07/28 | 200 | 219,616 | ||||||||||||
|
| |||||||||||||||
638,795 | ||||||||||||||||
Brazil 1.7% | ||||||||||||||||
Banco do Brasil SA, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 01/11/29 | 200 | 194,368 | ||||||||||||
Embraer Netherlands Finance BV, | ||||||||||||||||
Gtd. Notes | 6.950 | 01/17/28 | 200 | 200,450 | ||||||||||||
Globo Comunicacao e Participacoes SA, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 01/22/30 | 200 | 173,693 | ||||||||||||
JSM Global Sarl, | ||||||||||||||||
Gtd. Notes, 144A | 4.750 | 10/20/30 | 400 | 337,841 | ||||||||||||
Nexa Resources SA, | ||||||||||||||||
Gtd. Notes | 6.500 | 01/18/28 | 210 | 210,517 | ||||||||||||
Petrobras Global Finance BV, | ||||||||||||||||
Gtd. Notes | 5.093 | 01/15/30 | 80 | 77,601 | ||||||||||||
Gtd. Notes | 5.375 | 10/01/29 | GBP | 100 | 120,465 | |||||||||||
Gtd. Notes | 5.600 | 01/03/31 | 705 | 692,623 | ||||||||||||
Gtd. Notes | 6.900 | 03/19/49 | 150 | 142,714 | ||||||||||||
Gtd. Notes | 7.375 | 01/17/27 | 31 | 34,010 | ||||||||||||
Suzano Austria GmbH, | ||||||||||||||||
Gtd. Notes | 3.750 | 01/15/31 | 150 | 130,532 | ||||||||||||
Vale Overseas Ltd., | ||||||||||||||||
Gtd. Notes | 3.750 | 07/08/30 | 90 | 81,222 | ||||||||||||
|
| |||||||||||||||
2,396,036 | ||||||||||||||||
Chile 1.1% | ||||||||||||||||
Alfa Desarrollo SpA, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 4.550 | 09/27/51 | 199 | 156,559 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 9
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Chile (cont’d.) | ||||||||||||||||
Corp. Nacional del Cobre de Chile, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875% | 11/04/44 | 600 | $ | 568,532 | |||||||||||
Sr. Unsec’d. Notes | 6.150 | 10/24/36 | 100 | 108,901 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.875 | 11/04/44 | 200 | 189,510 | ||||||||||||
Empresa Nacional del Petroleo, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.450 | 09/16/31 | 200 | 168,843 | ||||||||||||
Interchile SA, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 4.500 | 06/30/56 | 200 | 172,151 | ||||||||||||
VTR Finance NV, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.375 | 07/15/28 | 200 | 182,466 | ||||||||||||
|
| |||||||||||||||
1,546,962 | ||||||||||||||||
China 2.1% | ||||||||||||||||
Agile Group Holdings Ltd., | ||||||||||||||||
Sr. Sec’d. Notes | 6.050 | 10/13/25 | 200 | 67,969 | ||||||||||||
CNAC HK Finbridge Co. Ltd., | ||||||||||||||||
Gtd. Notes | 3.000 | 09/22/30 | 500 | 433,784 | ||||||||||||
Gtd. Notes | 3.875 | 06/19/29 | 500 | 469,511 | ||||||||||||
Gtd. Notes | 5.125 | 03/14/28 | 200 | 203,055 | ||||||||||||
Country Garden Holdings Co. Ltd., | ||||||||||||||||
Sr. Sec’d. Notes | 4.200 | 02/06/26 | 210 | 152,440 | ||||||||||||
ENN Clean Energy International Investment Ltd., | ||||||||||||||||
Gtd. Notes, 144A | 3.375 | 05/12/26 | 200 | 183,875 | ||||||||||||
New Metro Global Ltd., | ||||||||||||||||
Gtd. Notes | 4.800 | 12/15/24 | 200 | 132,598 | ||||||||||||
Prosus NV, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.193 | 01/19/32 | 350 | 296,022 | ||||||||||||
Sinopec Group Overseas Development 2012 Ltd., | ||||||||||||||||
Gtd. Notes | 4.875 | 05/17/42 | 400 | 402,675 | ||||||||||||
Sinopec Group Overseas Development 2017 Ltd., | ||||||||||||||||
Gtd. Notes | 4.000 | 09/13/47 | 200 | 176,533 | ||||||||||||
Sinopec Group Overseas Development 2018 Ltd., | ||||||||||||||||
Gtd. Notes, 144A | 3.680 | 08/08/49 | 400 | 332,037 | ||||||||||||
Sunac China Holdings Ltd., | ||||||||||||||||
Sr. Sec’d. Notes | 6.500 | 01/10/25 | 200 | 44,588 | ||||||||||||
|
| |||||||||||||||
2,895,087 |
See Notes to Financial Statements.
10
Description | Interest Rate | Maturity Date | Principal (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Colombia 0.3% | ||||||||||||||||
Ecopetrol SA, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.875% | 04/29/30 | 208 | $ | 205,501 | |||||||||||
Grupo Aval Ltd., | ||||||||||||||||
Gtd. Notes, 144A |
| 4.375 |
|
| 02/04/30 |
|
| 200 |
|
| 169,493 |
| ||||
|
| |||||||||||||||
374,994 | ||||||||||||||||
Costa Rica 0.1% | ||||||||||||||||
Instituto Costarricense de Electricidad, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 10/07/31 | 200 | 198,580 | ||||||||||||
Ghana 0.1% | ||||||||||||||||
Tullow Oil PLC, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 10.250 | 05/15/26 | 200 | 197,349 | ||||||||||||
Guatemala 0.3% | ||||||||||||||||
CT Trust, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.125 | 02/03/32 | 200 | 185,348 | ||||||||||||
Energuate Trust, | ||||||||||||||||
Gtd. Notes | 5.875 | 05/03/27 | 200 | 193,535 | ||||||||||||
|
| |||||||||||||||
378,883 | ||||||||||||||||
India 1.6% | ||||||||||||||||
Adani Ports & Special Economic Zone Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.000 | 08/02/41 | 200 | 175,302 | ||||||||||||
Azure Power Solar Energy Pvt. Ltd., | ||||||||||||||||
Sr. Sec’d. Notes, 144A, MTN | 5.650 | 12/24/24 | 200 | 200,419 | ||||||||||||
GMR Hyderabad International Airport Ltd., | ||||||||||||||||
Sr. Sec’d. Notes | 4.250 | 10/27/27 | 200 | 181,343 | ||||||||||||
HPCL-Mittal Energy Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 04/28/27 | 200 | 190,157 | ||||||||||||
NTPC Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 2.750 | 02/01/27 | EUR | 100 | 102,731 | |||||||||||
Periama Holdings LLC, | ||||||||||||||||
Gtd. Notes | 5.950 | 04/19/26 | 200 | 196,761 | ||||||||||||
Power Finance Corp. Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 06/18/29 | 400 | 377,310 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.150 | 12/06/28 | 200 | 211,791 | ||||||||||||
Reliance Industries Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.625 | 01/12/52 | 250 | 198,260 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 11
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
India (cont’d.) | ||||||||||||||||
Summit Digitel Infrastructure Pvt Ltd., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 2.875% | 08/12/31 | 235 | $ | 192,662 | |||||||||||
TML Holdings Pte Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.500 | 06/03/24 | 200 | 198,819 | ||||||||||||
|
| |||||||||||||||
2,225,555 | ||||||||||||||||
Indonesia 2.4% | ||||||||||||||||
Cikarang Listrindo Tbk PT, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.950 | 09/14/26 | 200 | 195,753 | ||||||||||||
Indonesia Asahan Aluminium Persero PT, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.450 | 05/15/30 | 700 | 698,532 | ||||||||||||
Sr. Unsec’d. Notes | 6.530 | 11/15/28 | 220 | 239,489 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 05/15/25 | 200 | 200,123 | ||||||||||||
Pertamina Persero PT, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 05/03/42 | 200 | 202,128 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.700 | 07/30/49 | 200 | 177,985 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 11/07/48 | 200 | 213,577 | ||||||||||||
Perusahaan Listrik Negara PT, | ||||||||||||||||
Sr. Unsec’d. Notes | 1.875 | 11/05/31 | EUR | 100 | 88,570 | |||||||||||
Sr. Unsec’d. Notes | 2.875 | 10/25/25 | EUR | 200 | 213,111 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 5.450 | 05/21/28 | 420 | 434,009 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.150 | 05/21/48 | 200 | 200,021 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.125 | 05/15/27 | 250 | 245,202 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.150 | 05/21/48 | 200 | 200,021 | ||||||||||||
|
| |||||||||||||||
3,308,521 | ||||||||||||||||
Israel 0.4% | ||||||||||||||||
Energean Israel Finance Ltd., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 4.875 | 03/30/26 | 75 | 69,630 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.375 | 03/30/28 | 265 | 243,557 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.875 | 03/30/31 | 115 | 103,277 | ||||||||||||
Leviathan Bond Ltd., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 6.125 | 06/30/25 | 200 | 197,904 | ||||||||||||
|
| |||||||||||||||
614,368 | ||||||||||||||||
Jamaica 0.1% | ||||||||||||||||
Digicel International Finance Ltd./Digicel International Holdings Ltd., | ||||||||||||||||
Gtd. Notes, 144A | 8.000 | 12/31/26 | 39 | 34,604 |
See Notes to Financial Statements.
12
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Jamaica (cont’d.) | ||||||||||||||||
Digicel International Finance Ltd./Digicel International Holdings Ltd., (cont’d.) |
| |||||||||||||||
Gtd. Notes, 144A, Cash coupon 6.000% and PIK 7.000% | 13.000% | 12/31/25 | 55 | $ | 53,946 | |||||||||||
Sr. Sec’d. Notes, 144A | 8.750 | 05/25/24 | 97 | 95,425 | ||||||||||||
|
| |||||||||||||||
183,975 | ||||||||||||||||
Kazakhstan 1.1% | ||||||||||||||||
Kazakhstan Temir Zholy Finance BV, | ||||||||||||||||
Gtd. Notes | 6.950 | 07/10/42 | 400 | 405,549 | ||||||||||||
KazMunayGas National Co. JSC, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.375 | 04/24/30 | 400 | 388,587 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 04/19/47 | 400 | 363,359 | ||||||||||||
Sr. Unsec’d. Notes | 6.375 | 10/24/48 | 400 | 385,007 | ||||||||||||
|
| |||||||||||||||
1,542,502 | ||||||||||||||||
Kuwait 0.3% | ||||||||||||||||
MEGlobal Canada ULC, | ||||||||||||||||
Gtd. Notes, 144A, MTN | 5.875 | 05/18/30 | 400 | 432,574 | ||||||||||||
Malaysia 1.2% | ||||||||||||||||
Genm Capital Labuan Ltd., | ||||||||||||||||
Gtd. Notes | 3.882 | 04/19/31 | 200 | 165,482 | ||||||||||||
Gohl Capital Ltd., | ||||||||||||||||
Gtd. Notes | 4.250 | 01/24/27 | 250 | 231,506 | ||||||||||||
Petronas Capital Ltd., | ||||||||||||||||
Gtd. Notes, 144A, MTN | 4.550 | 04/21/50 | 800 | 806,198 | ||||||||||||
Gtd. Notes, EMTN | 4.550 | 04/21/50 | 200 | 201,550 | ||||||||||||
Gtd. Notes, MTN | 4.800 | 04/21/60 | 200 | 209,873 | ||||||||||||
|
| |||||||||||||||
1,614,609 | ||||||||||||||||
Mexico 4.9% | ||||||||||||||||
Cemex SAB de CV, | 5.450 | 11/19/29 | 400 | 384,051 | ||||||||||||
Comision Federal de Electricidad, | 4.688 | 05/15/29 | 200 | 184,963 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 02/14/42 | 200 | 173,349 | ||||||||||||
FEL Energy VI Sarl, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.750 | 12/01/40 | 227 | 194,258 | ||||||||||||
Fermaca Enterprises S de RL de CV, | 6.375 | 03/30/38 | 217 | 208,189 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 13
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Mexico (cont’d.) | ||||||||||||||||
Mexico City Airport Trust, | ||||||||||||||||
Sr. Sec’d. Notes | 4.250% | 10/31/26 | 360 | $ | 344,641 | |||||||||||
Sr. Sec’d. Notes | 5.500 | 07/31/47 | 600 | 480,552 | ||||||||||||
Petroleos Mexicanos, | ||||||||||||||||
Gtd. Notes | 5.350 | 02/12/28 | 842 | 748,151 | ||||||||||||
Gtd. Notes | 5.950 | 01/28/31 | 280 | 235,952 | ||||||||||||
Gtd. Notes | 6.350 | 02/12/48 | 376 | 263,297 | ||||||||||||
Gtd. Notes | 6.490 | 01/23/27 | 305 | 292,600 | ||||||||||||
Gtd. Notes | 6.500 | 03/13/27 | 808 | 774,200 | ||||||||||||
Gtd. Notes | 6.500 | 01/23/29 | 650 | 595,757 | ||||||||||||
Gtd. Notes | 6.500 | 06/02/41 | 410 | 304,990 | ||||||||||||
Gtd. Notes | 6.840 | 01/23/30 | 618 | 565,676 | ||||||||||||
Gtd. Notes | 7.690 | 01/23/50 | 550 | 431,007 | ||||||||||||
Gtd. Notes, EMTN | 3.750 | 04/16/26 | EUR | 285 | 279,352 | |||||||||||
Gtd. Notes, MTN | 6.875 | 08/04/26 | 355 | 353,871 | ||||||||||||
|
| |||||||||||||||
6,814,856 | ||||||||||||||||
Mongolia 0.1% | ||||||||||||||||
Development Bank of Mongolia LLC, | 7.250 | 10/23/23 | 200 | 197,127 | ||||||||||||
Netherlands 0.1% | ||||||||||||||||
VEON Holdings BV, | 3.375 | 11/25/27 | 200 | 125,000 | ||||||||||||
Panama 0.2% | ||||||||||||||||
Aeropuerto Internacional de Tocumen SA, | ||||||||||||||||
Sr. Sec’d. Notes | 4.000 | 08/11/41 | 200 | 173,000 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.125 | 08/11/61 | 200 | 171,561 | ||||||||||||
|
| |||||||||||||||
344,561 | ||||||||||||||||
Peru 0.5% | ||||||||||||||||
Corp. Financiera de Desarrollo SA, | 2.400 | 09/28/27 | 200 | 175,359 | ||||||||||||
Fondo MIVIVIENDA SA, Sr. Unsec’d. Notes, 144A | 4.625 | 04/12/27 | 150 | 148,635 | ||||||||||||
Petroleos del Peru SA, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 06/19/32 | 480 | 390,266 | ||||||||||||
|
| |||||||||||||||
714,260 |
See Notes to Financial Statements.
14
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Philippines 0.1% | ||||||||||||||||
Globe Telecom, Inc., | 3.000% | 07/23/35 | 200 | $ | 155,284 | |||||||||||
Qatar 0.4% | ||||||||||||||||
Qatar Energy, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.300 | 07/12/51 | 200 | 165,980 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.125 | 07/12/41 | 400 | 334,501 | ||||||||||||
|
| |||||||||||||||
500,481 | ||||||||||||||||
Russia 0.4% | ||||||||||||||||
Gazprom PJSC Via Gaz Capital SA, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.950 | 02/06/28 | 400 | 114,000 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 7.288 | 08/16/37 | 300 | 91,500 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 8.625 | 04/28/34 | 465 | 141,825 | ||||||||||||
Lukoil Securities BV, | 3.875 | 05/06/30 | 400 | 151,500 | ||||||||||||
|
| |||||||||||||||
498,825 | ||||||||||||||||
Saudi Arabia 0.6% | ||||||||||||||||
Arabian Centres Sukuk Ltd., | 5.375 | 11/26/24 | 200 | 194,843 | ||||||||||||
EIG Pearl Holdings Sarl, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 3.545 | 08/31/36 | 200 | 177,468 | ||||||||||||
Saudi Arabian Oil Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.250 | 11/24/30 | 260 | 226,510 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.250 | 04/16/39 | 200 | 190,546 | ||||||||||||
|
| |||||||||||||||
789,367 | ||||||||||||||||
South Africa 2.1% | ||||||||||||||||
Eskom Holdings SOC Ltd., | ||||||||||||||||
Gov’t. Gtd. Notes, MTN | 6.350 | 08/10/28 | 600 | 591,547 | ||||||||||||
Sr. Unsec’d. Notes | 7.125 | 02/11/25 | 600 | 572,774 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.750 | 08/06/23 | 600 | 585,932 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 8.450 | 08/10/28 | 660 | 636,641 | ||||||||||||
MTN Mauritius Investments Ltd., | ||||||||||||||||
Gtd. Notes, 144A | 6.500 | 10/13/26 | 200 | 207,451 | ||||||||||||
Sasol Financing USA LLC, | ||||||||||||||||
Gtd. Notes | 6.500 | 09/27/28 | 300 | 296,479 | ||||||||||||
|
| |||||||||||||||
2,890,824 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 15
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Thailand 0.1% | ||||||||||||||||
Thaioil Treasury Center Co. Ltd., | ||||||||||||||||
Gtd. Notes, 144A, MTN | 3.750% | 06/18/50 | 200 | $ | 142,490 | |||||||||||
Trinidad & Tobago 0.1% | ||||||||||||||||
Trinidad Petroleum Holdings Ltd., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 9.750 | 06/15/26 | 166 | 170,440 | ||||||||||||
Turkey 0.2% | ||||||||||||||||
Aydem Yenilenebilir Enerji A/S, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 7.750 | 02/02/27 | 200 | 164,936 | ||||||||||||
Turkiye Sinai Kalkinma Bankasi A/S, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 01/23/25 | 200 | 192,099 | ||||||||||||
|
| |||||||||||||||
357,035 | ||||||||||||||||
Ukraine 0.1% | ||||||||||||||||
NAK Naftogaz Ukraine via Kondor Finance PLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.125 | 07/19/24 | EUR | 420 | 124,062 | |||||||||||
State Savings Bank of Ukraine Via SSB #1 PLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 9.625 | 03/20/25 | 60 | 20,724 | ||||||||||||
|
| |||||||||||||||
144,786 | ||||||||||||||||
United Arab Emirates 1.9% | ||||||||||||||||
Abu Dhabi Crude Oil Pipeline LLC, | ||||||||||||||||
Sr. Sec’d. Notes | 3.650 | 11/02/29 | 200 | 197,222 | ||||||||||||
Sr. Sec’d. Notes | 4.600 | 11/02/47 | 200 | 197,500 | ||||||||||||
Abu Dhabi National Energy Co. PJSC, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.000 | 10/03/49 | 200 | 192,629 | ||||||||||||
DP World PLC, | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.850 | 07/02/37 | 800 | 907,553 | ||||||||||||
Galaxy Pipeline Assets Bidco Ltd., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 2.940 | 09/30/40 | 590 | 494,493 | ||||||||||||
ICD Funding Ltd., | ||||||||||||||||
Gtd. Notes | 4.625 | 05/21/24 | 200 | 202,009 | ||||||||||||
ICD Sukuk Co. Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.000 | 02/01/27 | 200 | 203,303 | ||||||||||||
MDGH GMTN RSC Ltd., | ||||||||||||||||
Gtd. Notes, EMTN | 3.700 | 11/07/49 | 240 | 219,765 | ||||||||||||
|
| |||||||||||||||
2,614,474 |
See Notes to Financial Statements.
16
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Venezuela 0.0% | ||||||||||||||||
Petroleos de Venezuela SA, | ||||||||||||||||
Gtd. Notes | 5.375% | 04/12/27(d) | 205 | $ | 13,260 | |||||||||||
Gtd. Notes | 6.000 | 05/16/24(d) | 45 | 2,876 | ||||||||||||
Gtd. Notes | 6.000 | 11/15/26(d) | 65 | 4,180 | ||||||||||||
Sr. Sec’d. Notes | 8.500 | 10/27/20(d) | 205 | 36,529 | ||||||||||||
|
| |||||||||||||||
56,845 | ||||||||||||||||
Vietnam 0.2% | ||||||||||||||||
Mong Duong Finance Holdings BV, | 5.125 | 05/07/29 | 250 | 223,154 | ||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | 35,984,577 | |||||||||||||||
|
| |||||||||||||||
SOVEREIGN BONDS 64.8% | ||||||||||||||||
Angola 1.9% | ||||||||||||||||
Angolan Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 05/09/28 | 1,000 | 959,935 | ||||||||||||
Sr. Unsec’d. Notes | 9.375 | 05/08/48 | 200 | 179,659 | ||||||||||||
Sr. Unsec’d. Notes | 9.500 | 11/12/25 | 905 | 963,739 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.750 | 04/14/32 | 200 | 189,426 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 8.000 | 11/26/29 | 400 | 374,966 | ||||||||||||
|
| |||||||||||||||
2,667,725 | ||||||||||||||||
Argentina 1.3% | ||||||||||||||||
Argentine Republic Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 0.500(cc) | 07/09/30 | 2,010 | 633,477 | ||||||||||||
Sr. Unsec’d. Notes | 1.000 | 07/09/29 | 254 | 81,803 | ||||||||||||
Sr. Unsec’d. Notes | 1.125(cc) | 07/09/35 | 102 | 29,015 | ||||||||||||
Sr. Unsec’d. Notes | 1.125(cc) | 07/09/46 | 335 | 97,024 | ||||||||||||
Sr. Unsec’d. Notes | 2.000(cc) | 01/09/38 | 1,620 | 582,359 | ||||||||||||
Sr. Unsec’d. Notes | 2.500(cc) | 07/09/41 | 597 | 199,943 | ||||||||||||
Provincia de Buenos Aires, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 3.900(cc) | 09/01/37 | 478 | 199,424 | ||||||||||||
|
| |||||||||||||||
1,823,045 | ||||||||||||||||
Bahrain 1.9% | ||||||||||||||||
Bahrain Government International Bond, | 6.750 | 09/20/29 | 600 | 607,085 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 17
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Bahrain (cont’d.) | ||||||||||||||||
Bahrain Government International Bond, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 7.000% | 10/12/28 | 1,000 | $ | 1,047,938 | |||||||||||
Sr. Unsec’d. Notes | 7.375 | 05/14/30 | 720 | 748,194 | ||||||||||||
Sr. Unsec’d. Notes | 7.500 | 09/20/47 | 200 | 185,326 | ||||||||||||
|
| |||||||||||||||
2,588,543 | ||||||||||||||||
Belarus 0.1% | ||||||||||||||||
Republic of Belarus International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 02/24/26 | 200 | 24,000 | ||||||||||||
Sr. Unsec’d. Notes | 6.200 | 02/28/30 | 200 | 25,000 | ||||||||||||
Sr. Unsec’d. Notes | 6.875 | 02/28/23 | 200 | 28,000 | ||||||||||||
Sr. Unsec’d. Notes | 7.625 | 06/29/27 | 425 | 51,000 | ||||||||||||
|
| |||||||||||||||
128,000 | ||||||||||||||||
Bermuda 0.4% | ||||||||||||||||
Bermuda Government International Bond, | 2.375 | 08/20/30 | 670 | 592,064 | ||||||||||||
Brazil 2.4% | ||||||||||||||||
Brazil Minas SPE via State of Minas Gerais, | 5.333 | 02/15/28 | 171 | 173,455 | ||||||||||||
Brazilian Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.875 | 06/12/30 | 200 | 176,579 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 05/30/29 | 300 | 282,815 | ||||||||||||
Sr. Unsec’d. Notes | 5.000 | 01/27/45 | 400 | 322,392 | ||||||||||||
Sr. Unsec’d. Notes | 5.625 | 01/07/41 | 405 | 361,448 | ||||||||||||
Sr. Unsec’d. Notes | 7.125 | 01/20/37 | 950 | 1,023,039 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 01/20/34 | 923 | 1,076,424 | ||||||||||||
|
| |||||||||||||||
3,416,152 | ||||||||||||||||
Cameroon 0.3% | ||||||||||||||||
Republic of Cameroon International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 9.500 | 11/19/25 | 400 | 416,261 | ||||||||||||
Colombia 2.8% | ||||||||||||||||
Colombia Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.000 | 01/30/30 | 968 | 774,496 | ||||||||||||
Sr. Unsec’d. Notes | 3.875 | 04/25/27 | 400 | 364,801 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 03/15/29 | 1,000 | 906,906 | ||||||||||||
Sr. Unsec’d. Notes | 6.125 | 01/18/41 | 780 | 689,911 |
See Notes to Financial Statements.
18
Description | Interest Rate | Maturity Date | Principal (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Colombia (cont’d.) | ||||||||||||||||
Colombia Government International Bond, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 7.375% | 09/18/37 | 915 | $ | 946,769 | |||||||||||
Sr. Unsec’d. Notes | 10.375 | 01/28/33 | 200 | 263,794 | ||||||||||||
|
| |||||||||||||||
3,946,677 | ||||||||||||||||
Congo (Republic) 0.2% | ||||||||||||||||
Congolese International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 06/30/29 | 269 | 232,656 | ||||||||||||
Costa Rica 1.1% | ||||||||||||||||
Costa Rica Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.375 | 04/30/25 | 800 | 803,079 | ||||||||||||
Sr. Unsec’d. Notes | 6.125 | 02/19/31 | 500 | 497,706 | ||||||||||||
Sr. Unsec’d. Notes | 7.000 | 04/04/44 | 200 | 189,794 | ||||||||||||
|
| |||||||||||||||
1,490,579 | ||||||||||||||||
Croatia 0.1% | ||||||||||||||||
Croatia Government International Bond, | 1.500 | 06/17/31 | EUR | 175 | 161,963 | |||||||||||
Dominican Republic 3.0% | ||||||||||||||||
Dominican Republic International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 01/30/30 | 935 | 804,057 | ||||||||||||
Sr. Unsec’d. Notes | 5.500 | 01/27/25 | 100 | 102,617 | ||||||||||||
Sr. Unsec’d. Notes | 5.950 | 01/25/27 | 200 | 200,799 | ||||||||||||
Sr. Unsec’d. Notes | 6.000 | 07/19/28 | 150 | 148,197 | ||||||||||||
Sr. Unsec’d. Notes | 6.850 | 01/27/45 | 290 | 261,324 | ||||||||||||
Sr. Unsec’d. Notes | 6.875 | 01/29/26 | 400 | 421,439 | ||||||||||||
Sr. Unsec’d. Notes | 7.450 | 04/30/44 | 1,400 | 1,354,286 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.875 | 09/23/32 | 150 | 126,017 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.300 | 01/21/41 | 150 | 118,556 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.500 | 02/22/29 | 150 | 140,262 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.875 | 01/30/60 | 225 | 170,577 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 07/19/28 | 320 | 316,154 | ||||||||||||
|
| |||||||||||||||
4,164,285 | ||||||||||||||||
Ecuador 1.7% | ||||||||||||||||
Ecuador Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.000(cc) | 07/31/30 | 270 | 219,418 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 0.500(cc) | 07/31/40 | 1,111 | 603,722 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 19
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Ecuador (cont’d.) | ||||||||||||||||
Ecuador Government International Bond, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 1.000%(cc) | 07/31/35 | 1,105 | $ | 696,005 | |||||||||||
Sr. Unsec’d. Notes, 144A | 5.000(cc) | 07/31/30 | 919 | 746,791 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.187(s) | 07/31/30 | 179 | 97,500 | ||||||||||||
|
| |||||||||||||||
2,363,436 | ||||||||||||||||
Egypt 1.6% | ||||||||||||||||
Egypt Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.903 | 02/21/48 | 200 | 136,614 | ||||||||||||
Sr. Unsec’d. Notes | 8.875 | 05/29/50 | 200 | 147,034 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.700 | 03/01/49 | 210 | 152,873 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.750 | 04/16/26 | EUR | 100 | 88,542 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.375 | 04/11/31 | EUR | 420 | 333,094 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 8.500 | 01/31/47 | 255 | 185,742 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.750 | 04/16/26 | EUR | 300 | 265,626 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 5.625 | 04/16/30 | EUR | 200 | 154,352 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 6.375 | 04/11/31 | EUR | 200 | 158,616 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 7.600 | 03/01/29 | 300 | 256,440 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 7.500 | 01/31/27 | 200 | 177,353 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 8.500 | 01/31/47 | 250 | 182,100 | ||||||||||||
|
| |||||||||||||||
2,238,386 | ||||||||||||||||
El Salvador 0.5% | ||||||||||||||||
El Salvador Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 01/30/25 | 335 | 159,117 | ||||||||||||
Sr. Unsec’d. Notes | 6.375 | 01/18/27 | 235 | 96,471 | ||||||||||||
Sr. Unsec’d. Notes | 7.625 | 02/01/41 | 150 | 57,036 | ||||||||||||
Sr. Unsec’d. Notes | 7.650 | 06/15/35 | 57 | 21,950 | ||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/24/23 | 277 | 215,510 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 04/10/32 | 425 | 176,641 | ||||||||||||
|
| |||||||||||||||
726,725 | ||||||||||||||||
Gabon 0.8% | ||||||||||||||||
Gabon Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.625 | 02/06/31 | 200 | 180,367 | ||||||||||||
Sr. Unsec’d. Notes | 6.950 | 06/16/25 | 600 | 595,263 | ||||||||||||
Sr. Unsec’d. Notes | 7.000 | 11/24/31 | 200 | 180,838 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.625 | 02/06/31 | 215 | 193,894 | ||||||||||||
|
| |||||||||||||||
1,150,362 |
See Notes to Financial Statements.
20
Description | Interest Rate | Maturity Date | Principal | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Ghana 0.8% | ||||||||||||||||
Ghana Government International Bond, | ||||||||||||||||
Bank Gtd. Notes | 10.750% | 10/14/30 | 400 | $ | 394,874 | |||||||||||
Sr. Unsec’d. Notes | 7.750 | 04/07/29 | 200 | 127,062 | ||||||||||||
Sr. Unsec’d. Notes | 7.875 | 03/26/27 | 400 | 280,103 | ||||||||||||
Sr. Unsec’d. Notes | 8.125 | 01/18/26 | 200 | 154,665 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.950 | 03/26/51 | 205 | 118,637 | ||||||||||||
|
| |||||||||||||||
1,075,341 | ||||||||||||||||
Guatemala 0.7% | ||||||||||||||||
Guatemala Government Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 02/13/28 | 400 | 398,524 | ||||||||||||
Sr. Unsec’d. Notes | 6.125 | 06/01/50 | 400 | 383,668 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.650 | 10/07/41 | 200 | 171,493 | ||||||||||||
|
| |||||||||||||||
953,685 | ||||||||||||||||
Honduras 0.2% | ||||||||||||||||
Honduras Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.250 | 01/19/27 | 390 | 341,731 | ||||||||||||
Hungary 1.2% | ||||||||||||||||
Hungary Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 1.750 | 06/05/35 | EUR | 715 | 616,869 | |||||||||||
Sr. Unsec’d. Notes | 7.625 | 03/29/41 | 546 | 686,946 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.125 | 09/21/51 | 455 | 314,624 | ||||||||||||
|
| |||||||||||||||
1,618,439 | ||||||||||||||||
India 0.4% | ||||||||||||||||
Export-Import Bank of India, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 3.250 | 01/15/30 | 400 | 359,015 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 2.250 | 01/13/31 | 200 | 162,348 | ||||||||||||
|
| |||||||||||||||
521,363 | ||||||||||||||||
Indonesia 2.4% | ||||||||||||||||
Indonesia Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 1.100 | 03/12/33 | EUR | 440 | 377,379 | |||||||||||
Sr. Unsec’d. Notes | 1.400 | 10/30/31 | EUR | 100 | 91,253 | |||||||||||
Sr. Unsec’d. Notes | 1.450 | 09/18/26 | EUR | 100 | 101,526 | |||||||||||
Sr. Unsec’d. Notes | 6.625 | 02/17/37 | 150 | 171,739 | ||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/17/38 | 490 | 615,288 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 21
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Indonesia (cont’d.) | ||||||||||||||||
Indonesia Government International Bond, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 8.500% | 10/12/35 | 590 | $ | 788,061 | |||||||||||
Sr. Unsec’d. Notes, 144A | 6.625 | 02/17/37 | 110 | 125,942 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 3.750 | 06/14/28 | EUR | 100 | 110,846 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 04/15/43 | 200 | 187,857 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.750 | 07/18/47 | 230 | 219,567 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.125 | 01/15/45 | 200 | 197,147 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.250 | 01/17/42 | 200 | 199,752 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.750 | 01/15/44 | 100 | 120,056 | ||||||||||||
|
| |||||||||||||||
3,306,413 | ||||||||||||||||
Iraq 1.0% | ||||||||||||||||
Iraq International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.800 | 01/15/28 | 563 | 541,329 | ||||||||||||
Sr. Unsec’d. Notes | 6.752 | 03/09/23 | 800 | 800,032 | ||||||||||||
|
| |||||||||||||||
1,341,361 | ||||||||||||||||
Israel 0.4% | ||||||||||||||||
Israel Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/03/2120 | 500 | 490,015 | ||||||||||||
Ivory Coast 1.1% | ||||||||||||||||
Ivory Coast Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 03/22/30 | EUR | 400 | 377,667 | |||||||||||
Sr. Unsec’d. Notes | 5.875 | 10/17/31 | EUR | 500 | 472,090 | |||||||||||
Sr. Unsec’d. Notes | 6.375 | 03/03/28 | 400 | 397,453 | ||||||||||||
Sr. Unsec’d. Notes | 6.625 | 03/22/48 | EUR | 140 | 117,832 | |||||||||||
Sr. Unsec’d. Notes | 6.875 | 10/17/40 | EUR | 250 | 222,858 | |||||||||||
|
| |||||||||||||||
1,587,900 | ||||||||||||||||
Jamaica 0.7% | ||||||||||||||||
Jamaica Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 07/09/25 | 225 | 240,111 | ||||||||||||
Sr. Unsec’d. Notes | 7.875 | 07/28/45 | 200 | 245,794 | ||||||||||||
Sr. Unsec’d. Notes | 8.000 | 03/15/39 | 200 | 249,278 | ||||||||||||
Sr. Unsec’d. Notes | 9.250 | 10/17/25 | 200 | 227,672 | ||||||||||||
|
| |||||||||||||||
962,855 |
See Notes to Financial Statements.
22
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Jordan 0.4% | ||||||||||||||||
Jordan Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.850% | 07/07/30 | 200 | $ | 176,616 | |||||||||||
Sr. Unsec’d. Notes | 6.125 | 01/29/26 | 200 | 193,301 | ||||||||||||
Sr. Unsec’d. Notes | 7.375 | 10/10/47 | 200 | 172,516 | ||||||||||||
|
| |||||||||||||||
542,433 | ||||||||||||||||
Kazakhstan 0.3% | ||||||||||||||||
Kazakhstan Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 07/21/45 | 400 | 451,392 | ||||||||||||
Kenya 0.4% | ||||||||||||||||
Republic of Kenya Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 05/22/27 | 400 | 355,727 | ||||||||||||
Sr. Unsec’d. Notes | 8.000 | 05/22/32 | 200 | 170,841 | ||||||||||||
|
| |||||||||||||||
526,568 | ||||||||||||||||
Lebanon 0.3% | ||||||||||||||||
Lebanon Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 01/27/23(d) | 191 | 22,527 | ||||||||||||
Sr. Unsec’d. Notes | 6.650 | 04/22/24(d) | 172 | 20,912 | ||||||||||||
Sr. Unsec’d. Notes | 6.750 | 11/29/27(d) | 170 | 20,571 | ||||||||||||
Sr. Unsec’d. Notes | 6.850 | 03/23/27(d) | 30 | 3,567 | ||||||||||||
Sr. Unsec’d. Notes | 7.000 | 04/22/31(d) | 115 | 13,439 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.100 | 10/04/22(d) | 75 | 9,136 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.850 | 05/25/29(d) | 335 | 40,226 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.250 | 05/27/22(d) | 245 | 28,883 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.250 | 11/04/24(d) | 320 | 38,962 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.375 | 03/09/20(d) | 220 | 26,731 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.400 | 05/26/23(d) | 250 | 30,240 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.650 | 02/26/30(d) | 715 | 84,857 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 7.150 | 11/20/31(d) | 415 | 49,661 | ||||||||||||
|
| |||||||||||||||
389,712 | ||||||||||||||||
Malaysia 1.4% | ||||||||||||||||
1MDB Global Investments Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.400 | 03/09/23 | 2,000 | 1,949,022 | ||||||||||||
Mexico 1.8% | ||||||||||||||||
Mexico Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.500 | 02/12/34 | 290 | 245,274 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 23
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Mexico (cont’d.) | ||||||||||||||||
Mexico Government International Bond, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750% | 04/27/32 | 530 | $ | 518,926 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 5.750 | 10/12/2110 | 358 | 322,949 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 4.750 | 03/08/44 | 140 | 123,542 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 6.050 | 01/11/40 | 988 | 1,021,690 | ||||||||||||
Sr. Unsec’d. Notes, Series A, MTN | 6.750 | 09/27/34 | 203 | 232,675 | ||||||||||||
|
| |||||||||||||||
2,465,056 | ||||||||||||||||
Mongolia 0.3% | ||||||||||||||||
Mongolia Government International Bond, | 8.750 | 03/09/24 | 400 | 410,425 | ||||||||||||
Morocco 0.7% | ||||||||||||||||
Morocco Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 1.500 | 11/27/31 | EUR | 100 | 81,740 | |||||||||||
Sr. Unsec’d. Notes | 2.000 | 09/30/30 | EUR | 500 | 436,039 | |||||||||||
Sr. Unsec’d. Notes | 4.000 | 12/15/50 | 200 | 137,233 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.000 | 12/15/32 | 400 | 316,072 | ||||||||||||
|
| |||||||||||||||
971,084 | ||||||||||||||||
Mozambique 0.5% | ||||||||||||||||
Mozambique International Bond, | ||||||||||||||||
Unsec’d. Notes | 5.000(cc) | 09/15/31 | 600 | 525,000 | ||||||||||||
Unsec’d. Notes, 144A | 5.000(cc) | 09/15/31 | 200 | 175,000 | ||||||||||||
|
| |||||||||||||||
700,000 | ||||||||||||||||
Namibia 0.1% | ||||||||||||||||
Namibia International Bonds, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 10/29/25 | 200 | 192,455 | ||||||||||||
Nigeria 2.4% | ||||||||||||||||
Nigeria Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.143 | 02/23/30 | 200 | 170,902 | ||||||||||||
Sr. Unsec’d. Notes | 7.625 | 11/21/25 | 300 | 298,146 | ||||||||||||
Sr. Unsec’d. Notes | 7.696 | 02/23/38 | 200 | 150,299 | ||||||||||||
Sr. Unsec’d. Notes | 7.875 | 02/16/32 | 400 | 334,908 | ||||||||||||
Sr. Unsec’d. Notes | 8.747 | 01/21/31 | 1,100 | 997,798 | ||||||||||||
Sr. Unsec’d. Notes | 9.248 | 01/21/49 | 200 | 167,480 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.696 | 02/23/38 | 200 | 150,299 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.375 | 03/24/29 | 200 | 186,720 |
See Notes to Financial Statements.
24
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Nigeria (cont’d.) | ||||||||||||||||
Nigeria Government International Bond, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.125% | 09/28/28 | 200 | $ | 170,925 | |||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 7.375 | 09/28/33 | 200 | 160,120 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 11/28/27 | 400 | 354,962 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 6.125 | 09/28/28 | 200 | 170,925 | ||||||||||||
|
| |||||||||||||||
3,313,484 | ||||||||||||||||
Oman 2.7% | ||||||||||||||||
Oman Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 06/15/26 | 630 | 618,446 | ||||||||||||
Sr. Unsec’d. Notes | 5.375 | 03/08/27 | 400 | 400,605 | ||||||||||||
Sr. Unsec’d. Notes | 5.625 | 01/17/28 | 680 | 681,116 | ||||||||||||
Sr. Unsec’d. Notes | 6.500 | 03/08/47 | 225 | 204,804 | ||||||||||||
Sr. Unsec’d. Notes | 6.750 | 10/28/27 | 600 | 635,431 | ||||||||||||
Sr. Unsec’d. Notes | 6.750 | 01/17/48 | 200 | 186,908 | ||||||||||||
Sr. Unsec’d. Notes | 7.375 | 10/28/32 | 380 | 417,259 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 01/17/48 | 200 | 186,907 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.875 | 02/01/25 | 200 | 200,924 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.000 | 08/01/29 | 200 | 202,070 | ||||||||||||
|
| |||||||||||||||
3,734,470 | ||||||||||||||||
Pakistan 1.3% | ||||||||||||||||
Pakistan Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 12/05/27 | 600 | 490,512 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 04/15/24 | 400 | 358,069 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 09/30/25 | 770 | 654,361 | ||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 7.375 | 04/08/31 | 200 | 154,297 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 7.375 | 04/08/31 | 200 | 154,297 | ||||||||||||
|
| |||||||||||||||
1,811,536 | ||||||||||||||||
Panama 1.5% | ||||||||||||||||
Panama Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.298 | 01/19/33 | 200 | 175,211 | ||||||||||||
Sr. Unsec’d. Notes | 3.870 | 07/23/60 | 200 | 149,562 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/16/50 | 400 | 344,838 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/01/56 | 200 | 169,974 | ||||||||||||
Sr. Unsec’d. Notes | 6.700 | 01/26/36 | 935 | 1,052,205 | ||||||||||||
Sr. Unsec’d. Notes | 9.375 | 04/01/29 | 165 | 209,981 | ||||||||||||
|
| |||||||||||||||
2,101,771 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 25
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal | Value | ||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||
Papua New Guinea 0.1% | ||||||||||||||
Papua New Guinea Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 8.375% | 10/04/28 | 200 | $ | 170,269 | |||||||||
Paraguay 0.6% | ||||||||||||||
Paraguay Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 4.700 | 03/27/27 | 200 | 198,962 | ||||||||||
Sr. Unsec’d. Notes | 4.950 | 04/28/31 | 200 | 196,947 | ||||||||||
Sr. Unsec’d. Notes | 6.100 | 08/11/44 | 400 | 394,981 | ||||||||||
|
| |||||||||||||
790,890 | ||||||||||||||
Peru 1.8% | ||||||||||||||
Peruvian Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 2.780 | 12/01/60 | 370 | 240,345 | ||||||||||
Sr. Unsec’d. Notes | 2.783 | 01/23/31 | 500 | 432,992 | ||||||||||
Sr. Unsec’d. Notes | 3.000 | 01/15/34 | 335 | 279,302 | ||||||||||
Sr. Unsec’d. Notes | 3.230 | 07/28/2121 | 110 | 69,919 | ||||||||||
Sr. Unsec’d. Notes | 5.625 | 11/18/50 | 232 | 253,527 | ||||||||||
Sr. Unsec’d. Notes | 6.550 | 03/14/37 | 225 | 258,720 | ||||||||||
Sr. Unsec’d. Notes | 8.750 | 11/21/33 | 780 | 1,034,655 | ||||||||||
|
| |||||||||||||
2,569,460 | ||||||||||||||
Philippines 1.8% | ||||||||||||||
Philippine Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 0.700 | 02/03/29 | EUR | 300 | 281,198 | |||||||||
Sr. Unsec’d. Notes | 1.750 | 04/28/41 | EUR | 165 | 135,337 | |||||||||
Sr. Unsec’d. Notes | 2.650 | 12/10/45 | 200 | 143,612 | ||||||||||
Sr. Unsec’d. Notes | 2.950 | 05/05/45 | 200 | 150,602 | ||||||||||
Sr. Unsec’d. Notes | 3.700 | 03/01/41 | 600 | 521,091 | ||||||||||
Sr. Unsec’d. Notes | 3.950 | 01/20/40 | 700 | 628,718 | ||||||||||
Sr. Unsec’d. Notes | 6.375 | 10/23/34 | 100 | 115,862 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/14/31 | 420 | 522,448 | ||||||||||
|
| |||||||||||||
2,498,868 | ||||||||||||||
Qatar 3.1% | ||||||||||||||
Qatar Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 03/14/29 | 1,350 | 1,383,067 | ||||||||||
Sr. Unsec’d. Notes | 4.625 | 06/02/46 | 200 | 208,172 | ||||||||||
Sr. Unsec’d. Notes | 4.817 | 03/14/49 | 200 | 214,089 | ||||||||||
Sr. Unsec’d. Notes | 5.103 | 04/23/48 | 1,140 | 1,265,872 | ||||||||||
Sr. Unsec’d. Notes | 6.400 | 01/20/40 | 100 | 124,703 |
See Notes to Financial Statements.
26
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||
Qatar (cont’d.) | ||||||||||||||
Qatar Government International Bond, (cont’d.) | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.817% | 03/14/49 | 810 | $ | 867,062 | |||||||||
Sr. Unsec’d. Notes, 144A | 5.103 | 04/23/48 | 200 | 222,083 | ||||||||||
|
| |||||||||||||
4,285,048 | ||||||||||||||
Romania 1.2% | ||||||||||||||
Romanian Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 5.125 | 06/15/48 | 144 | 130,264 | ||||||||||
Sr. Unsec’d. Notes, EMTN | 3.875 | 10/29/35 | EUR | 590 | 526,276 | |||||||||
Sr. Unsec’d. Notes, EMTN | 4.125 | 03/11/39 | EUR | 410 | 364,057 | |||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 04/03/49 | EUR | 230 | 202,175 | |||||||||
Sr. Unsec’d. Notes, EMTN | 6.125 | 01/22/44 | 284 | 292,889 | ||||||||||
Unsec’d. Notes, 144A | 2.750 | 04/14/41 | EUR | 170 | 120,646 | |||||||||
|
| |||||||||||||
1,636,307 | ||||||||||||||
Russia 0.4% | ||||||||||||||
Russian Foreign Bond - Eurobond, | ||||||||||||||
Sr. Unsec’d. Notes | 1.850 | 11/20/32 | EUR | 300 | 63,297 | |||||||||
Sr. Unsec’d. Notes | 2.650 | 05/27/36 | EUR | 300 | 63,297 | |||||||||
Sr. Unsec’d. Notes | 5.100 | 03/28/35 | 800 | 160,000 | ||||||||||
Sr. Unsec’d. Notes | 5.625 | 04/04/42 | 800 | 244,000 | ||||||||||
Sr. Unsec’d. Notes | 12.750 | 06/24/28 | 110 | 35,200 | ||||||||||
|
| |||||||||||||
565,794 | ||||||||||||||
Saudi Arabia 2.6% | ||||||||||||||
Saudi Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.250 | 01/16/50 | 400 | 431,542 | ||||||||||
Sr. Unsec’d. Notes, EMTN | 2.250 | 02/02/33 | 200 | 172,820 | ||||||||||
Sr. Unsec’d. Notes, EMTN | 4.500 | 10/26/46 | 2,050 | 1,959,837 | ||||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 10/04/47 | 400 | 388,926 | ||||||||||
Sr. Unsec’d. Notes, EMTN | 5.000 | 04/17/49 | 600 | 619,851 | ||||||||||
|
| |||||||||||||
3,572,976 | ||||||||||||||
Senegal 0.4% | ||||||||||||||
Senegal Government International Bond, | 4.750 | 03/13/28 | EUR | 300 | 297,352 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 27
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||
Senegal (cont’d.) | ||||||||||||||
Senegal Government International Bond, (cont’d.) | ||||||||||||||
Sr. Unsec’d. Notes | 5.375% | 06/08/37 | EUR | 200 | $ | 163,112 | ||||||||
Sr. Unsec’d. Notes, 144A | 5.375 | 06/08/37 | EUR | 150 | 122,334 | |||||||||
|
| |||||||||||||
582,798 | ||||||||||||||
Serbia 0.8% | ||||||||||||||
Serbia International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 1.500 | 06/26/29 | EUR | 800 | 647,472 | |||||||||
Sr. Unsec’d. Notes, 144A | 1.650 | 03/03/33 | EUR | 225 | 162,998 | |||||||||
Sr. Unsec’d. Notes, 144A | 2.125 | 12/01/30 | 230 | 171,709 | ||||||||||
Sr. Unsec’d. Notes, 144A | 3.125 | 05/15/27 | EUR | 200 | 189,562 | |||||||||
|
| |||||||||||||
1,171,741 | ||||||||||||||
South Africa 1.1% | ||||||||||||||
Republic of South Africa Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 4.300 | 10/12/28 | 200 | 182,188 | ||||||||||
Sr. Unsec’d. Notes | 4.850 | 09/30/29 | 600 | 551,335 | ||||||||||
Sr. Unsec’d. Notes | 5.650 | 09/27/47 | 200 | 157,743 | ||||||||||
Sr. Unsec’d. Notes | 5.750 | 09/30/49 | 400 | 316,075 | ||||||||||
Sr. Unsec’d. Notes | 6.250 | 03/08/41 | 400 | 362,839 | ||||||||||
|
| |||||||||||||
1,570,180 | ||||||||||||||
Sri Lanka 0.6% | ||||||||||||||
Sri Lanka Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 04/18/23 | 200 | 86,514 | ||||||||||
Sr. Unsec’d. Notes | 6.200 | 05/11/27 | 400 | 170,421 | ||||||||||
Sr. Unsec’d. Notes | 6.350 | 06/28/24 | 200 | 85,435 | ||||||||||
Sr. Unsec’d. Notes | 6.850 | 11/03/25 | 350 | 151,271 | ||||||||||
Sr. Unsec’d. Notes | 7.850 | 03/14/29 | 250 | 106,005 | ||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 04/18/28 | 200 | 84,987 | ||||||||||
Sr. Unsec’d. Notes, 144A | 6.850 | 03/14/24 | 265 | 113,242 | ||||||||||
|
| |||||||||||||
797,875 | ||||||||||||||
Turkey 3.1% | ||||||||||||||
Turkey Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 4.250 | 03/13/25 | 200 | 183,997 | ||||||||||
Sr. Unsec’d. Notes | 4.250 | 04/14/26 | 400 | 352,467 | ||||||||||
Sr. Unsec’d. Notes | 4.875 | 10/09/26 | 300 | 264,379 |
See Notes to Financial Statements.
28
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||
Turkey (cont’d.) | ||||||||||||||
Turkey Government International Bond, (cont’d.) | ||||||||||||||
Sr. Unsec’d. Notes | 5.250% | 03/13/30 | 200 | $ | 163,744 | |||||||||
Sr. Unsec’d. Notes | 5.750 | 03/22/24 | 200 | 195,661 | ||||||||||
Sr. Unsec’d. Notes | 5.950 | 01/15/31 | 200 | 167,737 | ||||||||||
Sr. Unsec’d. Notes | 6.000 | 03/25/27 | 580 | 527,641 | ||||||||||
Sr. Unsec’d. Notes | 6.000 | 01/14/41 | 200 | 150,398 | ||||||||||
Sr. Unsec’d. Notes | 6.125 | 10/24/28 | 620 | 552,414 | ||||||||||
Sr. Unsec’d. Notes | 6.350 | 08/10/24 | 400 | 391,021 | ||||||||||
Sr. Unsec’d. Notes | 6.375 | 10/14/25 | 200 | 191,542 | ||||||||||
Sr. Unsec’d. Notes | 6.500 | 09/20/33 | 200 | 169,548 | ||||||||||
Sr. Unsec’d. Notes | 6.875 | 03/17/36 | 104 | 89,227 | ||||||||||
Sr. Unsec’d. Notes | 7.375 | 02/05/25 | 460 | 457,750 | ||||||||||
Sr. Unsec’d. Notes | 7.625 | 04/26/29 | 280 | 266,969 | ||||||||||
Turkiye Ihracat Kredi Bankasi A/S, | ||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 01/24/24 | 200 | 203,981 | ||||||||||
|
| |||||||||||||
4,328,476 | ||||||||||||||
Ukraine 1.1% | ||||||||||||||
Ukraine Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 4.375 | 01/27/30 | EUR | 410 | 134,084 | |||||||||
Sr. Unsec’d. Notes | 6.750 | 06/20/26 | EUR | 580 | 195,799 | |||||||||
Sr. Unsec’d. Notes | 7.375 | 09/25/32 | 200 | 62,000 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/23 | 100 | 39,500 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/24 | 650 | 219,375 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/25 | 350 | 114,034 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/26 | 600 | 196,500 | ||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/27 | 520 | 170,300 | ||||||||||
Sr. Unsec’d. Notes | 8.994 | 02/01/24 | 200 | 70,500 | ||||||||||
Sr. Unsec’d. Notes | 9.750 | 11/01/28 | 965 | 316,038 | ||||||||||
Sr. Unsec’d. Notes, 144A | 4.375 | 01/27/30 | EUR | 100 | 32,704 | |||||||||
Ukreximbank Via Biz Finance PLC, | ||||||||||||||
Sr. Unsec’d. Notes | 9.750 | 01/22/25 | 75 | 30,750 | ||||||||||
|
| |||||||||||||
1,581,584 | ||||||||||||||
United Arab Emirates 1.0% | ||||||||||||||
Abu Dhabi Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 3.125 | 09/30/49 | 200 | 163,838 | ||||||||||
Sr. Unsec’d. Notes, 144A | 3.125 | 09/30/49 | 200 | 163,838 | ||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 3.875 | 04/16/50 | 200 | 188,444 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 29
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||
United Arab Emirates (cont’d.) | ||||||||||||||
Emirate of Dubai Government International Bonds, | ||||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.250% | 01/30/43 | 600 | $ | 582,043 | |||||||||
Finance Department Government of Sharjah, | ||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.000 | 07/28/50 | 200 | 148,487 | ||||||||||
Sr. Unsec’d. Notes, MTN | 4.000 | 07/28/50 | 200 | 148,487 | ||||||||||
|
| |||||||||||||
1,395,137 | ||||||||||||||
Uruguay 1.4% | ||||||||||||||
Uruguay Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 4.125 | 11/20/45 | 120 | 115,947 | ||||||||||
Sr. Unsec’d. Notes | 4.975 | 04/20/55 | 420 | 433,572 | ||||||||||
Sr. Unsec’d. Notes | 5.100 | 06/18/50 | 520 | 545,751 | ||||||||||
Sr. Unsec’d. Notes | 7.625 | 03/21/36 | 590 | 772,585 | ||||||||||
Sr. Unsec’d. Notes | 7.875 | 01/15/33 | 100 | 129,121 | ||||||||||
|
| |||||||||||||
1,996,976 | ||||||||||||||
Venezuela 0.0% | ||||||||||||||
Venezuela Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 12.750 | 08/23/22(d) | 180 | 16,166 | ||||||||||
Zambia 0.6% | ||||||||||||||
Zambia Government International Bond, | ||||||||||||||
Sr. Unsec’d. Notes | 8.500 | 04/14/24(d) | 600 | 448,816 | ||||||||||
Sr. Unsec’d. Notes | 8.970 | 07/30/27(d) | 400 | 296,468 | ||||||||||
Unsec’d. Notes | 5.375 | 09/20/22(d) | 200 | 143,965 | ||||||||||
|
| |||||||||||||
889,249 | ||||||||||||||
|
| |||||||||||||
TOTAL SOVEREIGN BONDS | 90,285,164 | |||||||||||||
|
| |||||||||||||
TOTAL LONG-TERM INVESTMENTS | 126,269,741 | |||||||||||||
|
|
See Notes to Financial Statements.
30
Description | Shares | Value | ||||||
SHORT-TERM INVESTMENTS 7.9% | ||||||||
UNAFFILIATED FUND 7.7% | ||||||||
Dreyfus Government Cash Management (Institutional Shares) | 10,743,551 | $ | 10,743,551 | |||||
OPTIONS PURCHASED*~ 0.2% | 200,226 | |||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 10,943,777 | |||||||
|
| |||||||
TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN 98.5% | 137,213,518 | |||||||
|
| |||||||
OPTIONS WRITTEN*~ (0.2)% | (216,591 | ) | ||||||
|
| |||||||
TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN 98.3% | 136,996,927 | |||||||
Other assets in excess of liabilities(z) 1.7% | 2,351,383 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 139,348,310 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
AUD—Australian Dollar
BRL—Brazilian Real
CAD—Canadian Dollar
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
EUR—Euro
GBP—British Pound
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli Shekel
INR—Indian Rupee
JPY—Japanese Yen
KRW—South Korean Won
MXN—Mexican Peso
PEN—Peruvian Nuevo Sol
PHP—Philippine Peso
PLN—Polish Zloty
RUB—Russian Ruble
SGD—Singapore Dollar
THB—Thai Baht
TWD—New Taiwanese Dollar
USD—US Dollar
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 31
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
ZAR—South African Rand
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
CDX—Credit Derivative Index
EMTN—Euro Medium Term Note
GMTN—Global Medium Term Note
LIBOR—London Interbank Offered Rate
MTN—Medium Term Note
OTC—Over-the-counter
PIK—Payment-in-Kind
PJSC—Public Joint-Stock Company
Q—Quarterly payment frequency for swaps
* | Non-income producing security. |
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
~ | See tables subsequent to the Schedule of Investments for options detail. |
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of April 30, 2022. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
(s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Options Purchased:
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||
Currency Option EUR vs CZK | Call | JPMorgan Chase Bank, N.A. | 06/08/22 | 27.25 | — | EUR | 319 | $ | 113 | |||||||||||||
Currency Option EUR vs CZK | Call | JPMorgan Chase Bank, N.A. | 06/08/22 | 27.25 | — | EUR | 319 | 113 | ||||||||||||||
Currency Option EUR vs CZK | Call | JPMorgan Chase Bank, N.A. | 06/08/22 | 27.25 | — | EUR | 318 | 113 | ||||||||||||||
Currency Option EUR vs CZK | Call | Morgan Stanley & Co. International PLC | 06/08/22 | 33.00 | — | EUR | 955 | 24 | ||||||||||||||
Currency Option USD vs CLP | Call | Morgan Stanley & Co. International PLC | 05/26/22 | 850.00 | — | 724 | 16,092 | |||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 06/17/22 | 6.45 | — | 1,234 | 39,850 | |||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 06/17/22 | 6.65 | — | 1,234 | 12,868 | |||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 08/08/22 | 6.55 | — | 389 | 9,267 | |||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 08/08/22 | 8.00 | — | 195 | 35 | |||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 09/02/22 | 6.55 | — | 366 | 9,350 |
See Notes to Financial Statements.
32
Options Purchased (continued):
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 10/19/22 | 6.50 | — | 1,410 | $ | 46,928 | ||||||||||||||||||
Currency Option USD vs MXN | Call | Morgan Stanley & Co. International PLC | 05/05/22 | 22.00 | — | 789 | 53 | |||||||||||||||||||
Currency Option USD vs MXN | Call | JPMorgan Chase Bank, N.A. | 05/06/22 | 20.50 | — | 353 | 1,913 | |||||||||||||||||||
Currency Option USD vs MXN | Call | JPMorgan Chase Bank, N.A. | 06/06/22 | 22.00 | — | 1,809 | 4,730 | |||||||||||||||||||
Currency Option USD vs MXN | Call | JPMorgan Chase Bank, N.A. | 06/14/22 | 21.50 | — | 346 | 1,963 | |||||||||||||||||||
Currency Option USD vs ZAR | Call | Barclays Bank PLC | 05/10/22 | 16.00 | — | 1,190 | 7,801 | |||||||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 05/10/22 | 17.50 | — | 1,190 | 194 | |||||||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 07/27/22 | 16.50 | — | 1,193 | 22,071 | |||||||||||||||||||
Currency Option EUR vs CZK | Put | Morgan Stanley & Co. International PLC | 06/08/22 | 25.25 | — | EUR | 955 | 23,662 | ||||||||||||||||||
Currency Option USD vs BRL | Put | Goldman Sachs International | 06/21/22 | 4.00 | — | 711 | 52 | |||||||||||||||||||
Currency Option USD vs CLP | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 690.00 | — | 724 | — | |||||||||||||||||||
Currency Option USD vs CNH | Put | JPMorgan Chase Bank, N.A. | 08/08/22 | 5.60 | — | 389 | 1 | |||||||||||||||||||
Currency Option USD vs CNH | Put | Goldman Sachs International | 09/02/22 | 5.75 | — | 366 | 4 | |||||||||||||||||||
Currency Option USD vs MXN | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 18.50 | — | 789 | — | |||||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/06/22 | 19.00 | — | 706 | 3 | |||||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/06/22 | 18.50 | — | 1,809 | 206 | |||||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/14/22 | 18.00 | — | 346 | 23 | |||||||||||||||||||
Currency Option USD vs RUB | Put | Goldman Sachs International | 06/09/22 | 58.00 | — | 1,178 | 2,797 | |||||||||||||||||||
Currency Option USD vs ZAR | Put | Barclays Bank PLC | 05/10/22 | 12.25 | — | 1,190 | — | |||||||||||||||||||
|
| |||||||||||||||||||||||||
Total Options Purchased (cost $180,722) | $ | 200,226 | ||||||||||||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 33
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Options Written:
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||
Currency Option EUR vs CZK | Call | Morgan Stanley & Co. International PLC | 06/08/22 | 27.25 | — | EUR | 955 | $ | (340 | ) | ||||||||||||
Currency Option USD vs CLP | Call | Morgan Stanley & Co. International PLC | 05/26/22 | 870.00 | — | 724 | (9,172 | ) | ||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 06/17/22 | 6.45 | — | 1,234 | (39,850 | ) | ||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 08/08/22 | 6.90 | — | 584 | (2,805 | ) | ||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 09/02/22 | 6.80 | — | 366 | (3,301 | ) | ||||||||||||||
Currency Option USD vs CNH | Call | JPMorgan Chase Bank, N.A. | 10/19/22 | 6.75 | — | 1,410 | (18,756 | ) | ||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 05/10/22 | 16.00 | — | 1,190 | (7,801 | ) | ||||||||||||||
Currency Option USD vs ZAR | Call | Barclays Bank PLC | 05/10/22 | 17.50 | — | 1,190 | (193 | ) | ||||||||||||||
Currency Option USD vs ZAR | Call | JPMorgan Chase Bank, N.A. | 07/27/22 | 17.50 | — | 597 | (4,592 | ) | ||||||||||||||
Currency Option EUR vs CZK | Put | JPMorgan Chase Bank, N.A. | 06/08/22 | 25.25 | — | EUR | 319 | (7,892 | ) | |||||||||||||
Currency Option EUR vs CZK | Put | JPMorgan Chase Bank, N.A. | 06/08/22 | 25.25 | — | EUR | 319 | (7,892 | ) | |||||||||||||
Currency Option EUR vs CZK | Put | JPMorgan Chase Bank, N.A. | 06/08/22 | 25.25 | — | EUR | 318 | (7,879 | ) | |||||||||||||
Currency Option USD vs BRL | Put | Goldman Sachs International | 06/21/22 | 4.90 | — | 711 | (13,649 | ) | ||||||||||||||
Currency Option USD vs CLP | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 790.00 | — | 724 | (7 | ) | ||||||||||||||
Currency Option USD vs CNH | Put | JPMorgan Chase Bank, N.A. | 08/08/22 | 6.40 | — | 389 | (437 | ) | ||||||||||||||
Currency Option USD vs CNH | Put | Goldman Sachs International | 09/02/22 | 6.25 | — | 366 | (151 | ) | ||||||||||||||
Currency Option USD vs MXN | Put | Morgan Stanley & Co. International PLC | 05/05/22 | 20.50 | — | 789 | (8,804 | ) | ||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/06/22 | 19.75 | — | 706 | (219 | ) | ||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/06/22 | 20.70 | — | 1,809 | (40,510 | ) | ||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 06/14/22 | 20.30 | — | 346 | (4,126 | ) |
See Notes to Financial Statements.
34
Options Written (continued):
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||||
Currency Option USD vs RUB | Put | Goldman Sachs International | 06/09/22 | 71.00 | — | 1,178 | $ | (38,058 | ) | |||||||||||||||
Currency Option USD vs ZAR | Put | Barclays Bank PLC | 05/10/22 | 14.75 | — | 1,190 | (157 | ) | ||||||||||||||||
|
| |||||||||||||||||||||||
Total Options Written (premiums received $178,221) | $ | (216,591 | ) | |||||||||||||||||||||
|
|
Futures contracts outstanding at April 30, 2022:
Number | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
Long Positions: | ||||||||||||||||||||||||
35 | 2 Year U.S. Treasury Notes | Jun. 2022 | $ | 7,378,438 | $ | (106,142 | ) | |||||||||||||||||
69 | 5 Year U.S. Treasury Notes | Jun. 2022 | 7,774,360 | (264,753 | ) | |||||||||||||||||||
28 | 10 Year U.S. Treasury Notes | Jun. 2022 | 3,336,375 | (41,168 | ) | |||||||||||||||||||
29 | 30 Year U.S. Ultra Treasury Bonds | Jun. 2022 | 4,652,688 | (521,883 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||
(933,946 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Short Positions: | ||||||||||||||||||||||||
15 | 5 Year Euro-Bobl | Jun. 2022 | 2,012,528 | 81,259 | ||||||||||||||||||||
40 | 10 Year Euro-Bund | Jun. 2022 | 6,481,191 | 529,831 | ||||||||||||||||||||
25 | 20 Year U.S. Treasury Bonds | Jun. 2022 | 3,517,188 | 300,154 | ||||||||||||||||||||
6 | Euro Schatz Index | Jun. 2022 | 697,185 | 9,875 | ||||||||||||||||||||
|
| |||||||||||||||||||||||
921,119 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
$ | (12,827 | ) | ||||||||||||||||||||||
|
|
Forward foreign currency exchange contracts outstanding at April 30, 2022:
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: |
| |||||||||||||||||||||||||||||||||||||||||
Australian Dollar, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | JPMorgan Chase Bank, N.A. | AUD | 216 | $ | 154,732 | $ | 152,577 | $ | — | $ | (2,155 | ) | ||||||||||||||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 05/03/22 | Citibank, N.A. | BRL | 1,436 | 304,000 | 289,993 | — | (14,007 | ) | ||||||||||||||||||||||||||||||||||
Expiring 05/03/22 | Goldman Sachs International | BRL | 927 | 194,000 | 187,174 | — | (6,826 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/02/22 | Citibank, N.A. | BRL | 680 | 143,461 | 136,104 | — | (7,357 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 35
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||||||||||||||
Brazilian Real (cont’d.), | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/02/22 | Goldman Sachs International | BRL | 878 | $ | 175,000 | $ | 175,598 | $ | 598 | $ | — | |||||||||||||||||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | CLP | 304,659 | 373,000 | 353,828 | — | (19,172 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | CLP | 298,958 | 362,000 | 347,207 | — | (14,793 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | CLP | 150,719 | 176,000 | 175,043 | — | (957 | ) | ||||||||||||||||||||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | Citibank, N.A. | CNH | 4,612 | 699,000 | 692,898 | — | (6,102 | ) | ||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | Citibank, N.A. | CNH | 1,391 | 211,000 | 208,909 | — | (2,091 | ) | ||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | Goldman Sachs International | CNH | 2,387 | 359,000 | 358,614 | — | (386 | ) | ||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | HSBC Bank PLC | CNH | 4,166 | 655,000 | 625,904 | — | (29,096 | ) | ||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | HSBC Bank PLC | CNH | 2,558 | 403,000 | 384,386 | — | (18,614 | ) | ||||||||||||||||||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | COP | 700,304 | 176,000 | 175,524 | — | (476 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | COP | 812,190 | 213,000 | 203,568 | — | (9,432 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | COP | 738,116 | 191,000 | 185,002 | — | (5,998 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | COP | 703,507 | 176,000 | 176,327 | 327 | — | |||||||||||||||||||||||||||||||||||
Czech Koruna, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | Morgan Stanley & Co. International PLC | CZK | 4,675 | 206,000 | 198,561 | — | (7,439 | ) | ||||||||||||||||||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | INR | 35,706 | 466,000 | 463,908 | — | (2,092 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | INR | 23,636 | 308,000 | 307,085 | — | (915 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 165,547 | 2,145,019 | 2,150,841 | 5,822 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 13,742 | 181,000 | 178,534 | — | (2,466 | ) | ||||||||||||||||||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | IDR | 3,513,646 | 242,000 | 240,406 | — | (1,594 | ) | ||||||||||||||||||||||||||||||||||
Japanese Yen, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | HSBC Bank PLC | JPY | 38,993 | 312,385 | 301,528 | — | (10,857 | ) | ||||||||||||||||||||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 6,756 | 331,000 | 327,996 | — | (3,004 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 3,849 | 177,000 | 186,885 | 9,885 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | MXN | 12,776 | 605,680 | 620,279 | 14,599 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | MXN | 8,937 | 436,000 | 433,888 | — | (2,112 | ) |
See Notes to Financial Statements.
36
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||||||||||||||
Mexican Peso (cont’d.), |
| |||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | MXN | 3,840 | $ | 177,000 | $ | 186,434 | $ | 9,434 | $ | — | |||||||||||||||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | TWD | 10,897 | 378,000 | 371,455 | — | (6,545 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | TWD | 24,302 | 848,000 | 828,373 | — | (19,627 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | TWD | 14,543 | 509,000 | 495,719 | — | (13,281 | ) | ||||||||||||||||||||||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | PEN | 1,117 | 297,000 | 289,419 | — | (7,581 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | PEN | 579 | 152,653 | 149,875 | — | (2,778 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | PEN | 1,257 | 328,000 | 325,686 | — | (2,314 | ) | ||||||||||||||||||||||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 20,230 | 384,000 | 383,818 | — | (182 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 19,448 | 369,000 | 368,993 | — | (7 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 17,578 | 334,000 | 333,519 | — | (481 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 9,281 | 176,000 | 176,092 | 92 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 36,829 | 698,000 | 698,762 | 762 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 31,107 | 588,000 | 590,198 | 2,198 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 16,616 | 315,000 | 315,251 | 251 | — | |||||||||||||||||||||||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | HSBC Bank PLC | PLN | 903 | 209,398 | 201,601 | — | (7,797 | ) | ||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | HSBC Bank PLC | PLN | 763 | 175,986 | 170,357 | — | (5,629 | ) | ||||||||||||||||||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | SGD | 805 | 594,000 | 582,393 | — | (11,607 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | SGD | 611 | 450,000 | 442,020 | — | (7,980 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | SGD | 867 | 639,000 | 626,731 | — | (12,269 | ) | ||||||||||||||||||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 3,294 | 223,000 | 207,464 | — | (15,536 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 2,764 | 176,000 | 174,082 | — | (1,918 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 3,884 | 245,000 | 244,656 | — | (344 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 2,810 | 176,000 | 176,994 | 994 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ZAR | 2,790 | 176,000 | 175,720 | — | (280 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | ZAR | 7,649 | 488,000 | 481,808 | — | (6,192 | ) | ||||||||||||||||||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 446,176 | 363,000 | 353,241 | — | (9,759 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 37
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||||||||||||||
South Korean Won (cont’d.), | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 362,138 | $ | 299,000 | $ | 286,707 | $ | — | $ | (12,293 | ) | ||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 213,883 | 173,000 | 169,333 | — | (3,667 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | KRW | 342,352 | 281,000 | 271,042 | — | (9,958 | ) | ||||||||||||||||||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | THB | 11,012 | 331,000 | 321,775 | — | (9,225 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 5,190 | 156,000 | 151,641 | — | (4,359 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
$ | 21,084,314 | $ | 20,789,726 | 44,962 | (339,550 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: |
| |||||||||||||||||||||||||||||||||||||||||
Australian Dollar, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | BNP Paribas S.A. | AUD | 210 | $ | 156,692 | $ | 148,869 | $ | 7,823 | $ | — | |||||||||||||||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 05/03/22 | BNP Paribas S.A. | BRL | 692 | 146,000 | 139,876 | 6,124 | — | |||||||||||||||||||||||||||||||||||
Expiring 05/03/22 | Citibank, N.A. | BRL | 680 | 144,814 | 137,466 | 7,348 | — | |||||||||||||||||||||||||||||||||||
Expiring 05/03/22 | JPMorgan Chase Bank, N.A. | BRL | 989 | 204,006 | �� | 199,826 | 4,180 | — | ||||||||||||||||||||||||||||||||||
British Pound, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | The Toronto-Dominion Bank | GBP | 102 | 133,464 | 128,686 | 4,778 | — | |||||||||||||||||||||||||||||||||||
Canadian Dollar, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | Barclays Bank PLC | CAD | 249 | 197,402 | 193,907 | 3,495 | — | |||||||||||||||||||||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | BNP Paribas S.A. | CLP | 244,921 | 304,000 | 284,448 | 19,552 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | CLP | 181,255 | 222,877 | 210,507 | 12,370 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | CLP | 261,567 | 328,000 | 303,781 | 24,219 | — | |||||||||||||||||||||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | JPMorgan Chase Bank, N.A. | CNH | 23,199 | 3,632,286 | 3,485,404 | 146,882 | — | |||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | Morgan Stanley & Co. International PLC | CNH | 3,769 | 591,000 | 566,284 | 24,716 | — | |||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | UBS AG | CNH | 3,687 | 580,000 | 553,955 | 26,045 | — | |||||||||||||||||||||||||||||||||||
Expiring 05/23/22 | UBS AG | CNH | 2,495 | 389,000 | 374,839 | 14,161 | — | |||||||||||||||||||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | COP | 823,518 | 207,000 | 206,407 | 593 | — |
See Notes to Financial Statements.
38
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||||||||||||||
Colombian Peso (cont’d.), | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | COP | 904,280 | $ | 235,000 | $ | 226,649 | $ | 8,351 | $ | — | |||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | COP | 391,807 | 102,089 | 98,203 | 3,886 | — | |||||||||||||||||||||||||||||||||||
Czech Koruna, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | Barclays Bank PLC | CZK | 1,910 | 83,881 | 81,139 | 2,742 | — | |||||||||||||||||||||||||||||||||||
Euro, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | BNP Paribas S.A. | EUR | 2,612 | 2,839,619 | 2,767,139 | 72,480 | — | |||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | BNP Paribas S.A. | EUR | 163 | 177,000 | 173,184 | 3,816 | — | |||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | Deutsche Bank AG | EUR | 3,382 | 3,692,006 | 3,583,284 | 108,722 | — | |||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | Standard Chartered Bank | EUR | 3,427 | 3,754,538 | 3,630,869 | 123,669 | — | |||||||||||||||||||||||||||||||||||
Hungarian Forint, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | Barclays Bank PLC | HUF | 58,252 | 165,042 | 160,670 | 4,372 | — | |||||||||||||||||||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | INR | 49,961 | 649,000 | 649,105 | — | (105 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | INR | 49,225 | 635,000 | 639,550 | — | (4,550 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | INR | 29,681 | 383,000 | 385,630 | — | (2,630 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 52,607 | 684,000 | 683,493 | 507 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | INR | 12,967 | 169,000 | 168,476 | 524 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. | |||||||||||||||||||||||||||||||||||||||||
International PLC | INR | 46,335 | 602,000 | 601,996 | 4 | — | ||||||||||||||||||||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | IDR | 4,250,199 | 292,512 | 290,802 | 1,710 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | IDR | 864,420 | 59,488 | 59,144 | 344 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs | |||||||||||||||||||||||||||||||||||||||||
International | IDR | 8,512,305 | 593,854 | 582,418 | 11,436 | — | ||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | IDR | 2,544,023 | 176,000 | 174,064 | 1,936 | — | |||||||||||||||||||||||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Bank of America, N.A. | ILS | 904 | 279,440 | 271,353 | 8,087 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Bank of America, N.A. | ILS | 716 | 219,560 | 214,892 | 4,668 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ILS | 1,051 | 321,000 | 315,564 | 5,436 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | ILS | 1,105 | 346,000 | 331,844 | 14,156 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | ILS | 1,307 | 398,000 | 392,389 | 5,611 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | ILS | 1,268 | 389,000 | 380,677 | 8,323 | — | |||||||||||||||||||||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 4,969 | 233,000 | 241,236 | — | (8,236 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | MXN | 3,637 | 176,000 | 176,571 | — | (571 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 39
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||||||||||||||
Mexican Peso (cont’d.), | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | UBS AG | MXN | 5,978 | $ | 281,000 | $ | 290,237 | $ | — | $ (9,237 | ) | |||||||||||||||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | TWD | 9,507 | 326,000 | 324,072 | 1,928 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | TWD | 75,705 | 2,681,712 | 2,580,566 | 101,146 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | TWD | 9,204 | 318,000 | 313,724 | 4,276 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | TWD | 9,173 | 314,000 | 312,680 | 1,320 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | TWD | 9,280 | 318,000 | 316,317 | 1,683 | — | |||||||||||||||||||||||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Bank of America, N.A. | PHP | 24,693 | 472,000 | 468,507 | 3,493 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | PHP | 9,330 | 181,000 | 177,013 | 3,987 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | PHP | 9,555 | 183,000 | 181,292 | 1,708 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | PHP | 27,911 | 526,818 | 529,557 | — | (2,739 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | PHP | 22,927 | 443,000 | 435,007 | 7,993 | — | |||||||||||||||||||||||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 07/19/22 | Morgan Stanley & Co. International PLC | PLN | 492 | 113,000 | 109,886 | 3,114 | — | |||||||||||||||||||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Credit Suisse International SGD |
| 516 | 379,000 | 373,381 | 5,619 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Goldman Sachs International | SGD | 767 | 555,000 | 554,548 | 452 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | SGD | 742 | 535,000 | 536,684 | — | (1,684 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | SGD | 2,494 | 1,832,716 | 1,803,204 | 29,512 | — | |||||||||||||||||||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 8,819 | 570,186 | 555,465 | 14,721 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 8,758 | 577,323 | 551,654 | 25,669 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Barclays Bank PLC | ZAR | 5,864 | 379,115 | 369,327 | 9,788 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | ZAR | 8,758 | 575,630 | 551,653 | 23,977 | — | |||||||||||||||||||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Citibank, N.A. | KRW | 1,794,842 | 1,460,789 | 1,420,989 | 39,800 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | HSBC Bank PLC | KRW | 385,802 | 305,000 | 305,442 | — | (442 | ) | ||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | KRW | 519,511 | 412,000 | 411,301 | 699 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | KRW | 420,030 | 337,000 | 332,541 | 4,459 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | KRW | 458,001 | 366,000 | 362,603 | 3,397 | — | |||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | Standard Chartered Bank | KRW | 381,862 | 300,000 | 302,323 | — | (2,323 | ) |
See Notes to Financial Statements.
40
Forward foreign currency exchange contracts outstanding at April 30, 2022 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 102,630 | $ | 3,096,595 | $ | 2,998,804 | $ | 97,791 | $ | — | |||||||||||||||||||||||||||
Expiring 06/15/22 | JPMorgan Chase Bank, N.A. | THB | 6,014 | 176,000 | 175,713 | 287 | — | |||||||||||||||||||||||||||||||
Expiring 06/15/22 | Morgan Stanley & Co. International PLC | THB | 17,494 | 522,000 | 511,156 | 10,844 | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 43,428,454 | $ | 42,370,242 | 1,090,729 | (32,517 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 1,135,691 | $ | (372,067 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
Cross currency exchange contracts outstanding at April 30, 2022:
Settlement | Type | Notional Amount (000) | In Exchange For (000) | Unrealized Appreciation | Unrealized Depreciation | Counterparty | ||||||||||||||||||||||||
OTC Cross Currency Exchange Contracts: |
| |||||||||||||||||||||||||||||
07/19/22 | Buy | EUR | 161 | HUF | 60,708 | $ | 3,125 | $ | — | HSBC Bank PLC | ||||||||||||||||||||
07/19/22 | Buy | HUF | 63,630 | EUR | 166 | — | (365 | ) | JPMorgan Chase Bank, N.A. | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
$ | 3,125 | $ | (365 | ) | ||||||||||||||||||||||||||
|
|
|
|
Credit default swap agreements outstanding at April 30, 2022:
Reference Entity/ Obligation | Termination Date | Fixed Rate | Notional Amount (000)#(3) | Value at Trade Date | Value at April 30, 2022 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||||||
Centrally Cleared Credit Default Swap Agreement on credit indices - Buy Protection(1): |
| |||||||||||||||||||||||||||||||||||||||
CDX.EM.37.V1 | 06/20/27 | 1.000%(Q | ) | 830 | $ | 57,029 | $ | 65,625 | $ | 8,596 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases.
(1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 41
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(3) | Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements where the Fund is the seller of protection as of the reporting date serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||||||||
J.P. Morgan Securities LLC | $ | 860,000 | $ | — | ||||||
|
|
|
|
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
42
The following is a summary of the inputs used as of April 30, 2022 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||||||
Investments in Securities | ||||||||||||||||
Assets | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Corporate Bonds | ||||||||||||||||
Azerbaijan | $ | — | $ | 695,978 | $— | |||||||||||
Bahrain | — | 638,795 | — | |||||||||||||
Brazil | — | 2,396,036 | — | |||||||||||||
Chile | — | 1,546,962 | — | |||||||||||||
China | — | 2,895,087 | — | |||||||||||||
Colombia | — | 374,994 | — | |||||||||||||
Costa Rica | — | 198,580 | — | |||||||||||||
Ghana | — | 197,349 | — | |||||||||||||
Guatemala | — | 378,883 | — | |||||||||||||
India | — | 2,225,555 | — | |||||||||||||
Indonesia | — | 3,308,521 | — | |||||||||||||
Israel | — | 614,368 | — | |||||||||||||
Jamaica | — | 183,975 | — | |||||||||||||
Kazakhstan | — | 1,542,502 | — | |||||||||||||
Kuwait | — | 432,574 | — | |||||||||||||
Malaysia | — | 1,614,609 | — | |||||||||||||
Mexico | — | 6,814,856 | — | |||||||||||||
Mongolia | — | 197,127 | — | |||||||||||||
Netherlands | — | 125,000 | — | |||||||||||||
Panama | — | 344,561 | — | |||||||||||||
Peru | — | 714,260 | — | |||||||||||||
Philippines | — | 155,284 | — | |||||||||||||
Qatar | — | 500,481 | — | |||||||||||||
Russia | — | 498,825 | — | |||||||||||||
Saudi Arabia | — | 789,367 | — | |||||||||||||
South Africa | — | 2,890,824 | — | |||||||||||||
Thailand | — | 142,490 | — | |||||||||||||
Trinidad & Tobago | — | 170,440 | — | |||||||||||||
Turkey | — | 357,035 | — | |||||||||||||
Ukraine | — | 144,786 | — | |||||||||||||
United Arab Emirates | — | 2,614,474 | — | |||||||||||||
Venezuela | — | 56,845 | — | |||||||||||||
Vietnam | — | 223,154 | — | |||||||||||||
Sovereign Bonds | ||||||||||||||||
Angola | — | 2,667,725 | — | |||||||||||||
Argentina | — | 1,823,045 | — | |||||||||||||
Bahrain | — | 2,588,543 | — | |||||||||||||
Belarus | — | 128,000 | — | |||||||||||||
Bermuda | — | 592,064 | — | |||||||||||||
Brazil | — | 3,416,152 | — | |||||||||||||
Cameroon | — | 416,261 | — | |||||||||||||
Colombia | — | 3,946,677 | — | |||||||||||||
Congo (Republic) | — | 232,656 | — | |||||||||||||
Costa Rica | — | 1,490,579 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 43
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Level 1 | Level 2 | Level 3 | ||||||||||||||
Investments in Securities (continued) | ||||||||||||||||
Assets (continued) | ||||||||||||||||
Long-Term Investments (continued) | ||||||||||||||||
Sovereign Bonds (continued) | ||||||||||||||||
Croatia | $ | — | $ | 161,963 | $— | |||||||||||
Dominican Republic | — | 4,164,285 | — | |||||||||||||
Ecuador | — | 2,363,436 | — | |||||||||||||
Egypt | — | 2,238,386 | — | |||||||||||||
El Salvador | — | 726,725 | — | |||||||||||||
Gabon | — | 1,150,362 | — | |||||||||||||
Ghana | — | 1,075,341 | — | |||||||||||||
Guatemala | — | 953,685 | — | |||||||||||||
Honduras | — | 341,731 | — | |||||||||||||
Hungary | — | 1,618,439 | — | |||||||||||||
India | — | 521,363 | — | |||||||||||||
Indonesia | — | 3,306,413 | — | |||||||||||||
Iraq | — | 1,341,361 | — | |||||||||||||
Israel | — | 490,015 | — | |||||||||||||
Ivory Coast | — | 1,587,900 | — | |||||||||||||
Jamaica | — | 962,855 | — | |||||||||||||
Jordan | — | 542,433 | — | |||||||||||||
Kazakhstan | — | 451,392 | — | |||||||||||||
Kenya | — | 526,568 | — | |||||||||||||
Lebanon | — | 389,712 | — | |||||||||||||
Malaysia | — | 1,949,022 | — | |||||||||||||
Mexico | — | 2,465,056 | — | |||||||||||||
Mongolia | — | 410,425 | — | |||||||||||||
Morocco | — | 971,084 | — | |||||||||||||
Mozambique | — | 700,000 | — | |||||||||||||
Namibia | — | 192,455 | — | |||||||||||||
Nigeria | — | 3,313,484 | — | |||||||||||||
Oman | — | 3,734,470 | — | |||||||||||||
Pakistan | — | 1,811,536 | — | |||||||||||||
Panama | — | 2,101,771 | — | |||||||||||||
Papua New Guinea | — | 170,269 | — | |||||||||||||
Paraguay | — | 790,890 | — | |||||||||||||
Peru | — | 2,569,460 | — | |||||||||||||
Philippines | — | 2,498,868 | — | |||||||||||||
Qatar | — | 4,285,048 | — | |||||||||||||
Romania | — | 1,636,307 | — | |||||||||||||
Russia | — | 565,794 | — | |||||||||||||
Saudi Arabia | — | 3,572,976 | — | |||||||||||||
Senegal | — | 582,798 | — | |||||||||||||
Serbia | — | 1,171,741 | — | |||||||||||||
South Africa | — | 1,570,180 | — | |||||||||||||
Sri Lanka | — | 797,875 | — | |||||||||||||
Turkey | — | 4,328,476 | — | |||||||||||||
Ukraine | — | 1,581,584 | — | |||||||||||||
United Arab Emirates | — | 1,395,137 | — |
See Notes to Financial Statements.
44
Level 1 | Level 2 | Level 3 | ||||||||||||||
Investments in Securities (continued) | ||||||||||||||||
Assets (continued) | ||||||||||||||||
Long-Term Investments (continued) | ||||||||||||||||
Sovereign Bonds (continued) | ||||||||||||||||
Uruguay | $ | — | $ | 1,996,976 | $— | |||||||||||
Venezuela | — | 16,166 | — | |||||||||||||
Zambia | — | 889,249 | — | |||||||||||||
Short-Term Investments | ||||||||||||||||
Unaffiliated Fund | 10,743,551 | — | — | |||||||||||||
Options Purchased | — | 200,226 | — | |||||||||||||
|
|
|
|
|
| |||||||||||
Total | $ | 10,743,551 | $ | 126,469,967 | $— | |||||||||||
|
|
|
|
|
| |||||||||||
Liabilities | ||||||||||||||||
Options Written | $ | — | $ | (216,591 | ) | $— | ||||||||||
|
|
|
|
|
| |||||||||||
Other Financial Instruments* | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 921,119 | $ | — | $— | |||||||||||
OTC Forward Foreign Currency Exchange Contracts | — | 1,135,691 | — | |||||||||||||
OTC Cross Currency Exchange Contracts | — | 3,125 | — | |||||||||||||
Centrally Cleared Credit Default Swap Agreement | — | 8,596 | — | |||||||||||||
|
|
|
|
|
| |||||||||||
Total | $ | 921,119 | $ | 1,147,412 | $— | |||||||||||
|
|
|
|
|
| |||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (933,946 | ) | $ | — | $— | ||||||||||
OTC Forward Foreign Currency Exchange Contracts | — | (372,067 | ) | — | ||||||||||||
OTC Cross Currency Exchange Contracts | — | (365 | ) | — | ||||||||||||
|
|
|
|
|
| |||||||||||
Total | $ | (933,946 | ) | $ | (372,432 | ) | $— | |||||||||
|
|
|
|
|
|
* | 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, 2022 were as follows:
Sovereign Bonds | 64.8% | |||
Oil & Gas | 10.6 | |||
Unaffiliated Fund | 7.7 | |||
Electric | 4.0 | |||
Mining | 1.7 | |||
Chemicals | 1.3 | |||
Pipelines | 1.2 | |||
Engineering & Construction | 1.0 |
Commercial Services | 0.8% | |||
Diversified Financial Services | 0.8 | |||
Telecommunications | 0.6 | |||
Banks | 0.5 | |||
Real Estate | 0.5 | |||
Investment Companies | 0.3 | |||
Transportation | 0.3 | |||
Building Materials | 0.3 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 45
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Industry Classification (continued):
Energy-Alternate Sources | 0.3 | % | ||
Media | 0.2 | |||
Retail | 0.2 | |||
Internet | 0.2 | |||
Iron/Steel | 0.2 | |||
Lodging | 0.2 | |||
Options Purchased | 0.2 | |||
Auto Manufacturers | 0.2 | |||
Aerospace & Defense | 0.1 |
Gas | 0.1 | % | ||
Entertainment | 0.1 | |||
Forest Products & Paper | 0.1 | |||
|
| |||
98.5 | ||||
Options Written | (0.2 | ) | ||
Other assets in excess of liabilities | 1.7 | |||
|
| |||
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 types of risk associated with these derivative instruments are credit contracts risk, foreign exchange contracts risk and interest rate contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2022 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 | ||||||||
Credit contracts | Due from/to broker-variation margin swaps | $ | 8,596 | * | — | $ | — | |||||
Foreign exchange contracts | Unaffiliated investments | 200,226 | Options written outstanding, at value | 216,591 | ||||||||
Foreign exchange contracts | Unrealized appreciation on OTC cross currency exchange contracts | 3,125 | Unrealized depreciation on OTC cross currency exchange contracts | 365 | ||||||||
Foreign exchange contracts | Unrealized appreciation on OTC forward foreign currency exchange contracts | 1,135,691 | Unrealized depreciation on OTC forward foreign currency exchange contracts | 372,067 | ||||||||
Interest rate contracts | Due from/to broker-variation margin futures | 921,119 | * | Due from/to broker-variation margin futures | 933,946 | * | ||||||
|
|
|
| |||||||||
$ | 2,268,757 | $ | 1,522,969 | |||||||||
|
|
|
|
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
See Notes to Financial Statements.
46
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2022 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Options | Options Written | Futures | Forward & Cross Currency Exchange Contracts | Swaps | |||||||||||||||||||
Credit contracts | $ | — | $ | — | $ | — | $ | — | $ | 19,150 | ||||||||||||||
Foreign exchange contracts | 415,982 | (427,311 | ) | — | 775,632 | — | ||||||||||||||||||
Interest rate contracts | — | — | (472,769 | ) | — | (67,773 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 415,982 | $ | (427,311 | ) | $ | (472,769 | ) | $ | 775,632 | $ | (48,623 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Options | Options Written | Futures | Forward & Cross Currency Exchange Contracts | Swaps | |||||||||||||||||||||||||||||
Credit contracts | $ | — | $ | — | $ | — | $ | — | $ | (6,121 | ) | |||||||||||||||||||||||
Foreign exchange contracts | 8,188 | (37,916 | ) | — | 714,696 | — | ||||||||||||||||||||||||||||
Interest rate contracts | — | — | (142,532 | ) | — | 87,334 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total | $ | 8,188 | $ | (37,916 | ) | $ | (142,532 | ) | $ | 714,696 | $ | 81,213 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2022, the Fund’s average volume of derivative activities is as follows:
Derivative Contract Type | Average Volume of Derivative Activities* | |||
Options Purchased (1) | $ 149,068 | |||
Options Written (2) | 12,349,818 | |||
Futures Contracts - Long Positions (2) | 24,719,313 | |||
Futures Contracts - Short Positions (2) | 17,261,986 | |||
Forward Foreign Currency Exchange Contracts - Purchased (3) | 24,015,412 | |||
Forward Foreign Currency Exchange Contracts - Sold (3) | 45,783,536 | |||
Cross Currency Exchange Contracts (4) | 313,697 | |||
Interest Rate Swap Agreements (2) | 2,496,350 | |||
Credit Default Swap Agreements - Buy Protection (2) | 1,530,000 |
* | Average volume is based on average quarter end balances as noted for the six months ended April 30, 2022. |
(1) | Cost. |
(2) | Notional Amount in USD. |
(3) | Value at Settlement Date. |
(4) | Value at Trade Date. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 47
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives where the legal right to set-off exists is presented in the summary below.
Offsetting of OTC derivative assets and liabilities:
Counterparty | Gross Amounts of Recognized Assets(1) | Gross Amounts of Recognized Liabilities(1) | Net Amounts of Recognized Assets/(Liabilities) | Collateral | Net Amount | ||||||||||||||||||||
Bank of America, N.A. | $ | 16,248 | $ | — | $ | 16,248 | $ | — | $ | 16,248 | |||||||||||||||
Barclays Bank PLC | 74,024 | (17,804 | ) | 56,220 | — | 56,220 | |||||||||||||||||||
BNP Paribas S.A. | 109,795 | (10,835 | ) | 98,960 | (1,210 | ) | 97,750 | ||||||||||||||||||
Citibank, N.A. | 93,843 | (81,192 | ) | 12,651 | — | 12,651 | |||||||||||||||||||
Credit Suisse International | 5,619 | — | 5,619 | — | 5,619 | ||||||||||||||||||||
Deutsche Bank AG | 108,722 | — | 108,722 | — | 108,722 | ||||||||||||||||||||
Goldman Sachs International | 138,703 | (111,446 | ) | 27,257 | — | 27,257 | |||||||||||||||||||
HSBC Bank PLC | 22,683 | (129,791 | ) | (107,108 | ) | 50,000 | (57,108 | ) | |||||||||||||||||
JPMorgan Chase Bank, N.A. | 410,667 | (145,767 | ) | 264,900 | (264,900 | ) | — | ||||||||||||||||||
Morgan Stanley & Co. International PLC | 141,831 | (28,501 | ) | 113,330 | — | 113,330 | |||||||||||||||||||
Standard Chartered Bank | 138,270 | (12,281 | ) | 125,989 | (125,989 | ) | — | ||||||||||||||||||
The Toronto-Dominion Bank | 4,778 | — | 4,778 | — | 4,778 | ||||||||||||||||||||
UBS AG | 73,859 | (51,406 | ) | 22,453 | — | 22,453 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
$ | 1,339,042 | $ | (589,023 | ) | $ | 750,019 | $ | (342,099 | ) | $ | 407,920 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
(2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions and the Fund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
48
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Assets | ||||
Unaffiliated investments (cost $167,283,522) | $ | 137,213,518 | ||
Foreign currency, at value (cost $22,121) | 21,629 | |||
Cash segregated for counterparty - OTC | 50,000 | |||
Dividends and interest receivable | 1,859,443 | |||
Unrealized appreciation on OTC forward foreign currency exchange contracts | 1,135,691 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 860,000 | |||
Receivable for Fund shares sold | 408,161 | |||
Receivable for investments sold | 307,237 | |||
Due from broker—variation margin swaps | 7,229 | |||
Unrealized appreciation on OTC cross currency exchange contracts | 3,125 | |||
Prepaid expenses and other assets | 40,525 | |||
|
| |||
Total Assets | 141,906,558 | |||
|
| |||
Liabilities | ||||
Payable for Fund shares purchased | 1,257,891 | |||
Payable for investments purchased | 584,988 | |||
Unrealized depreciation on OTC forward foreign currency exchange contracts | 372,067 | |||
Options written outstanding, at value (premiums received $178,221) | 216,591 | |||
Management fee payable | 55,850 | |||
Accrued expenses and other liabilities | 55,480 | |||
Dividends payable | 11,920 | |||
Due to broker—variation margin futures | 2,301 | |||
Directors’ fees payable | 459 | |||
Unrealized depreciation on OTC cross currency exchange contracts | 365 | |||
Affiliated transfer agent fee payable | 317 | |||
Distribution fee payable | 19 | |||
|
| |||
Total Liabilities | 2,558,248 | |||
|
| |||
Net Assets | $ | 139,348,310 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 188 | ||
Paid-in capital in excess of par | 172,458,691 | |||
Total distributable earnings (loss) | (33,110,569 | ) | ||
|
| |||
Net assets, April 30, 2022 | $ | 139,348,310 | ||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 49
Statement of Assets and Liabilities (unaudited)
as of April 30, 2022
Class A | ||||||
Net asset value, offering price and redemption price per share, ($59,563 ÷ 8,019 shares of beneficial interest issued and outstanding) | $ | 7.43 | ||||
Maximum sales charge (3.25% of offering price) | 0.25 | |||||
|
| |||||
Maximum offering price to public | $ | 7.68 | ||||
|
| |||||
Class C | ||||||
Net asset value, offering price and redemption price per share, ($9,036 ÷ 1,217 shares of beneficial interest issued and outstanding) | $ | 7.43 | ||||
|
| |||||
Class Z | ||||||
Net asset value, offering price and redemption price per share, ($13,077,104 ÷ 1,759,567 shares of beneficial interest issued and outstanding) | $ | 7.43 | ||||
|
| |||||
Class R6 | ||||||
Net asset value, offering price and redemption price per share, ($126,202,607 ÷ 16,987,230 shares of beneficial interest issued and outstanding) | $ | 7.43 | ||||
|
| |||||
Net Asset Values Per Share may not recalculate due to rounding. |
See Notes to Financial Statements.
50
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
Net Investment Income (Loss) | ||||
Income | ||||
Interest income (net of $8,007 foreign withholding tax) | $ | 3,719,098 | ||
Unaffiliated dividend income | 2,390 | |||
Affiliated dividend income | 1,958 | |||
|
| |||
Total income | 3,723,446 | |||
|
| |||
Expenses | ||||
Management fee | 487,940 | |||
Distribution fee(a) | 148 | |||
Custodian and accounting fees | 37,189 | |||
Transfer agent’s fees and expenses (including affiliated expense of $757)(a) | 22,792 | |||
Registration fees(a) | 20,898 | |||
Audit fee | 18,844 | |||
Legal fees and expenses | 10,077 | |||
Shareholders’ reports | 7,978 | |||
Directors’ fees | 5,369 | |||
SEC registration fees | 2,421 | |||
Miscellaneous | 9,885 | |||
|
| |||
Total expenses | 623,541 | |||
Less: Fee waiver and/or expense reimbursement(a) | (126,514 | ) | ||
|
| |||
Net expenses | 497,027 | |||
|
| |||
Net investment income (loss) | 3,226,419 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions | (185,057 | ) | ||
Futures transactions | (472,769 | ) | ||
Forward and cross currency contract transactions | 775,632 | |||
Options written transactions | (427,311 | ) | ||
Swap agreement transactions | (48,623 | ) | ||
Foreign currency transactions | (3,284 | ) | ||
|
| |||
(361,412 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (28,670,874 | ) | ||
Futures | (142,532 | ) | ||
Forward and cross currency contracts | 714,696 | |||
Options written | (37,916 | ) | ||
Swap agreements | 81,213 | |||
Foreign currencies | (39,734 | ) | ||
|
| |||
(28,095,147 | ) | |||
|
| |||
Net gain (loss) on investment and foreign currency transactions | (28,456,559 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (25,230,140 | ) | |
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 51
Statement of Operations (unaudited)
Six Months Ended April 30, 2022
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 98 | 50 | — | — | ||||||||||||
Transfer agent’s fees and expenses | 201 | 22 | 22,371 | 198 | ||||||||||||
Registration fees | 4,039 | 4,039 | 8,732 | 4,088 | ||||||||||||
Fee waiver and/or expense reimbursement | (4,227) | (4,059) | (33,025) | (85,203) |
See Notes to Financial Statements.
52
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | |||||||||||||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net investment income (loss) | $ | 3,226,419 | $ | 5,629,265 | ||||||||||||||||||||
Net realized gain (loss) on investment and foreign currency transactions | (361,412 | ) | 845,517 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (28,095,147 | ) | 1,891,629 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (25,230,140 | ) | 8,366,411 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Dividends and Distributions | ||||||||||||||||||||||||
Distributions from distributable earnings | ||||||||||||||||||||||||
Class A | (2,221 | ) | (2,106 | ) | ||||||||||||||||||||
Class C | (262 | ) | (397 | ) | ||||||||||||||||||||
Class Z | (560,520 | ) | (1,206,404 | ) | ||||||||||||||||||||
Class R6 | (4,226,374 | ) | (5,228,489 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
(4,789,377 | ) | (6,437,396 | ) | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Fund share transactions (Net of share conversions) | ||||||||||||||||||||||||
Net proceeds from shares sold | 35,368,911 | 81,696,730 | ||||||||||||||||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 4,616,503 | 6,292,008 | ||||||||||||||||||||||
Cost of shares purchased | (25,040,923 | ) | (52,285,699 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net increase (decrease) in net assets from Fund share transactions | 14,944,491 | 35,703,039 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total increase (decrease) | (15,075,026 | ) | 37,632,054 | |||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 154,423,336 | 116,791,282 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
End of period | $ | 139,348,310 | $ | 154,423,336 | ||||||||||||||||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 53
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended | December 12, 2017(a) through | |||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October 31, | ||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.06 | $8.86 | $9.51 | $8.88 | $10.00 | |||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.36 | 0.38 | 0.46 | 0.38 | |||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.55 | ) | 0.25 | (0.56 | ) | 0.69 | (1.06 | ) | ||||||||||||||||||||||||
Total from investment operations | (1.38 | ) | 0.61 | (0.18 | ) | 1.15 | (0.68 | ) | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.25 | ) | (0.41 | ) | (0.47 | ) | (0.52 | ) | (0.43 | ) | ||||||||||||||||||||||
Tax return of capital distributions | - | - | - | - | (0.01 | ) | ||||||||||||||||||||||||||
Total dividends and distributions | (0.25 | ) | (0.41 | ) | (0.47 | ) | (0.52 | ) | (0.44 | ) | ||||||||||||||||||||||
Net asset value, end of period | $7.43 | $9.06 | $8.86 | $9.51 | $8.88 | |||||||||||||||||||||||||||
Total Return(c): | (15.51 | )% | 6.91 | % | (1.82 | )% | 13.23 | % | (6.97 | )% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $60 | $59 | $28 | $13 | $9 | |||||||||||||||||||||||||||
Average net assets (000) | $79 | $47 | $18 | $12 | $10 | |||||||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.05 | %(e) | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | %(e) | ||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 11.84 | %(e) | 19.07 | % | 66.11 | % | 115.95 | % | 358.14 | %(e) | ||||||||||||||||||||||
Net investment income (loss) | 3.94 | %(e) | 3.84 | % | 4.19 | % | 4.95 | % | 4.49 | %(e) | ||||||||||||||||||||||
Portfolio turnover rate(f) | 6 | % | 20 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
54
Class C Shares | |||||||||||||||||||||||||||||
Six Months Ended | December 12, 2017(a) through | ||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October 31, | |||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.06 | $8.86 | $9.51 | $8.88 | $10.00 | ||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||
Net investment income (loss) | 0.13 | 0.28 | 0.32 | 0.39 | 0.31 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.54 | ) | 0.26 | (0.57 | ) | 0.69 | (1.05 | ) | |||||||||||||||||||||
Total from investment operations | (1.41 | ) | 0.54 | (0.25 | ) | 1.08 | (0.74 | ) | |||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||
Dividends from net investment income | (0.22 | ) | (0.34 | ) | (0.40 | ) | (0.45 | ) | (0.37 | ) | |||||||||||||||||||
Tax return of capital distributions | - | - | - | - | (0.01 | ) | |||||||||||||||||||||||
Total dividends and distributions | (0.22 | ) | (0.34 | ) | (0.40 | ) | (0.45 | ) | (0.38 | ) | |||||||||||||||||||
Net asset value, end of period | $7.43 | $9.06 | $8.86 | $9.51 | $8.88 | ||||||||||||||||||||||||
Total Return(c): | (15.84 | )% | 6.11 | % | (2.55 | )% | 12.40 | % | (7.58 | )% | |||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $9 | $11 | $10 | $10 | $9 | ||||||||||||||||||||||||
Average net assets (000) | $10 | $11 | $10 | $10 | $10 | ||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.80 | %(e) | 1.80 | % | 1.80 | % | 1.80 | % | 1.80 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 83.09 | %(e) | 78.90 | % | 114.46 | % | 139.02 | % | 359.95 | %(e) | |||||||||||||||||||
Net investment income (loss) | 3.15 | %(e) | 3.08 | % | 3.56 | % | 4.22 | % | 3.73 | %(e) | |||||||||||||||||||
Portfolio turnover rate(f) | 6 | % | 20 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 55
Financial Highlights (unaudited) (continued)
Class Z Shares | |||||||||||||||||||||||||||||
Six Months Ended | December 12, 2017(a) through | ||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October 31, | |||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.06 | $8.87 | $9.51 | $8.88 | $10.00 | ||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.38 | 0.40 | 0.48 | 0.39 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.55 | ) | 0.25 | (0.54 | ) | 0.69 | (1.05 | ) | |||||||||||||||||||||
Total from investment operations | (1.37 | ) | 0.63 | (0.14 | ) | 1.17 | (0.66 | ) | |||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||
Dividends from net investment income | (0.26 | ) | (0.44 | ) | (0.50 | ) | (0.54 | ) | (0.45 | ) | |||||||||||||||||||
Tax return of capital distributions | - | - | - | - | (0.01 | ) | |||||||||||||||||||||||
Total dividends and distributions | (0.26 | ) | (0.44 | ) | (0.50 | ) | (0.54 | ) | (0.46 | ) | |||||||||||||||||||
Net asset value, end of period | $7.43 | $9.06 | $8.87 | $9.51 | $8.88 | ||||||||||||||||||||||||
Total Return(c): | (15.39 | )% | 7.11 | % | (1.43 | )% | 13.51 | % | (6.79 | )% | |||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $13,077 | $18,069 | $18,982 | $5,782 | $2,234 | ||||||||||||||||||||||||
Average net assets (000) | $17,893 | $25,561 | $10,951 | $3,498 | $766 | ||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.75 | %(e) | 0.75 | % | 0.75 | % | 0.80 | % | 0.80 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.12 | %(e) | 1.07 | % | 1.53 | % | 2.41 | % | 6.65 | %(e) | |||||||||||||||||||
Net investment income (loss) | 4.20 | %(e) | 4.12 | % | 4.45 | % | 5.12 | % | 4.83 | %(e) | |||||||||||||||||||
Portfolio turnover rate(f) | 6 | % | 20 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
56
Class R6 Shares | |||||||||||||||||||||||||||||
Six Months Ended | December 12, 2017(a) through | ||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October 31, | |||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.06 | $8.86 | $9.51 | $8.88 | $10.00 | ||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.39 | 0.43 | 0.49 | 0.40 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.54 | ) | 0.26 | (0.57 | ) | 0.69 | (1.06 | ) | |||||||||||||||||||||
Total from investment operations | (1.36 | ) | 0.65 | (0.14 | ) | 1.18 | (0.66 | ) | |||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||
Dividends from net investment income | (0.27 | ) | (0.45 | ) | (0.51 | ) | (0.55 | ) | (0.45 | ) | |||||||||||||||||||
Tax return of capital distributions | - | - | - | - | (0.01 | ) | |||||||||||||||||||||||
Total dividends and distributions | (0.27 | ) | (0.45 | ) | (0.51 | ) | (0.55 | ) | (0.46 | ) | |||||||||||||||||||
Net asset value, end of period | $7.43 | $9.06 | $8.86 | $9.51 | $8.88 | ||||||||||||||||||||||||
Total Return(c): | (15.34 | )% | 7.34 | % | (1.44 | )% | 13.58 | % | (6.72 | )% | |||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $126,203 | $136,285 | $97,771 | $26,493 | $23,333 | ||||||||||||||||||||||||
Average net assets (000) | $133,397 | $107,966 | $30,037 | $25,144 | $24,014 | ||||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.65 | %(e) | 0.65 | % | 0.66 | % | 0.74 | % | 0.74 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.78 | %(e) | 0.81 | % | 1.16 | % | 1.49 | % | 1.76 | %(e) | |||||||||||||||||||
Net investment income (loss) | 4.31 | %(e) | 4.24 | % | 4.69 | % | 5.27 | % | 4.82 | %(e) | |||||||||||||||||||
Portfolio turnover rate(f) | 6 | % | 20 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 57
Notes to Financial Statements (unaudited)
1. | Organization |
Prudential World Fund, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Emerging Markets Debt Hard Currency Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is total return, through a combination of current income and capital appreciation.
2. | Accounting Policies |
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Board of Directors (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. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
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
58
securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
OTC and centrally cleared derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach when quoted prices in broker-dealer markets are available but also includes consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing
PGIM Emerging Markets Debt Hard Currency Fund 59
Notes to Financial Statements (unaudited) (continued)
derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuation date;
(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
60
fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations. Notwithstanding the above, the Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Forward and Cross Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Fund enters into forward currency contracts, as defined in the prospectus, in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency and to gain exposure to certain currencies. The contracts are valued daily at current forward exchange rates and any unrealized gain (loss) is included in net unrealized appreciation or depreciation on forward and cross currency contracts. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on forward and cross currency contract transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.
Options: The Fund purchased and/or wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates with respect to securities or financial instruments which the Fund currently owns or intends to purchase. The Fund may also use options to gain additional market exposure. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on
PGIM Emerging Markets Debt Hard Currency Fund 61
Notes to Financial Statements (unaudited) (continued)
the underlying security alone. When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Fund realizes a gain (loss) to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Fund has realized a gain (loss). The difference between the premium and the amount received or paid at the closing of a purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain (loss) on written options is presented separately as net realized gain (loss) on options written transactions.
The Fund, as writer of an option, may have no control over whether the underlying securities or financial instruments may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. The Fund, as purchaser of an OTC option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts. With exchange-traded options contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.
When the Fund writes an option on a swap, an amount equal to any premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the written option on the swap. If a call option on a swap is exercised, the Fund becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put option on a swap is exercised, the Fund becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing options on swaps that expire or are exercised are treated as realized gains upon the expiration or exercise of such options on swaps. The risk associated with writing put and call options on swaps is that the Fund will be obligated to be party to a swap agreement if an option on a swap is exercised.
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
62
is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Swap Agreements: The Fund entered into certain types of swap agreements detailed in the disclosures below. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with a counterparty (“OTC-traded”) or through a central clearing facility, such as a registered exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.
Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objective. The Fund used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Credit Default Swaps (“CDS”): CDS involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity (typically corporate issues or sovereign issues of an emerging country) on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.
PGIM Emerging Markets Debt Hard Currency Fund 63
Notes to Financial Statements (unaudited) (continued)
The Fund is subject to credit risk in the normal course of pursuing its investment objectives, and as such, has entered into CDS contracts to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases. The Fund’s maximum risk of loss from counterparty credit risk for purchased CDS is the inability of the counterparty to honor the contract up to the notional value due to a credit event.
As a seller of protection on credit default swap agreements, the Fund generally receives an agreed upon payment from the buyer of protection throughout the term of the swap, provided no credit event occurs. As the seller, the Fund effectively increases its investment risk because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.
The maximum amount of the payment that the Fund, as a seller of protection, could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit event. This potential amount will be partially offset by any recovery values of the respective referenced obligations, or net amounts received from the settlement of buy protection credit default swap agreements which the Fund entered into for the same referenced entity or index. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements where the Fund is the seller of protection as of period end are disclosed in the footnotes to the Schedule of Investments, if applicable. These spreads serve as indicators of the current status of the payment/performance risk and represent the likelihood of default risk for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and increased market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the
64
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.
The RIC, on behalf of the Fund, is a party to International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Schedule of Investments. Collateral pledged by the Fund is segregated by the Fund’s custodian and identified in the Schedule of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the Fund and the applicable counterparty. Collateral requirements are determined based on the Fund’s net position with each counterparty. Termination events applicable to the Fund may occur upon a decline in the Fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Fund’s counterparties to elect early termination could impact the Fund’s future derivative activity.
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such OTC derivative agreements include conditions which, when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
PGIM Emerging Markets Debt Hard Currency Fund 65
Notes to Financial Statements (unaudited) (continued)
Short sales and OTC contracts, including forward foreign currency exchange contracts, swaps, forward rate agreements and written options involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities, if applicable. Such risks may be mitigated by engaging in master netting arrangements.
Payment-In-Kind: The Fund invested in the open market or received pursuant to debt restructuring, securities that pay-in-kind (PIK) the interest due on such debt instruments. The PIK interest, computed at the contractual rate specified, is added to the existing principal balance of the debt when issued bonds have same terms as the bond or recorded as a separate bond when terms are different from the existing debt, and is recorded as interest income.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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
66
ex-date, or for certain foreign securities, when the Fund becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
Expected Distribution Schedule to Shareholders* | Frequency | |||
Net Investment Income | Monthly | |||
Short-Term Capital Gains | Annually | |||
Long-Term Capital Gains | Annually |
* | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. | Agreements |
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
PGIM Emerging Markets Debt Hard Currency Fund 67
Notes to Financial Statements (unaudited) (continued)
The Manager has entered into a subadvisory agreement with PGIM, Inc., which provides subadvisory services to the Fund through its business unit PGIM Fixed Income, and PGIM Limited (collectively the “subadviser”). The Manager pays for the services of the subadviser.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effective management fee rates were as follows:
Contractual Management Rate | Effective Management Fee, before any waivers and/or expense reimbursements | |
0.650% on average daily net assets up to $1 billion; | 0.65% | |
0.630% on average daily net assets from $1 billion to $3 billion; | ||
0.610% on average daily net assets from $3 billion to $5 billion; | ||
0.600% on average daily net assets from $5 billion to $10 billion; | ||
0.590% on average daily net assets over $10 billion. |
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year. The expense limitations attributable to each class are as follows:
Class | Expense Limitations | ||||
A | 1.05 | % | |||
C | 1.80 | ||||
Z | 0.75 | ||||
R6 | 0.65 |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C,
68
Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. The distribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
Class | Gross Distribution Fee | Net Distribution Fee | ||||||||||
A | 0.25 | % | 0.25 | % | ||||||||
C | 1.00 | 1.00 | ||||||||||
Z |
| N/A | N/A | |||||||||
R6 | N/A | N/A |
For the reporting period ended April 30, 2022, PIMS has not received any front-end sales charges (“FESL”) resulting from sales of certain class shares. Additionally, for the reporting period ended April 30, 2022, PIMS did not receive any contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain Class A and Class C shareholders.
PGIM Investments, PGIM, Inc., PGIM Limited and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. | Other Transactions with Affiliates |
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. 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 fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
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
PGIM Emerging Markets Debt Hard Currency Fund 69
Notes to Financial Statements (unaudited) (continued)
investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. | Portfolio Securities |
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
Cost of Purchases | Proceeds from Sales | |||
$23,963,672 | $8,297,610 |
A summary of the cost of purchases and proceeds from sales of shares of an affiliated mutual fund for the reporting period ended April 30, 2022, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain | Realized Gain (Loss) | Value, End of | Shares, End of Period | Income | ||||||||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Fund: |
| ||||||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wb) |
| ||||||||||||||||||||||||||||||||||
$12,463,160 | $ | 8,881,786 | $ | 21,344,946 | $— | $— | $— | — | $1,958 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(wb) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
Tax Basis | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Depreciation | |||
$167,583,001 | $2,711,998 | $(32,535,919) | $(29,823,921) |
The GAAP 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, 2021 of approximately $1,297,000 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.
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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, 2021 are subject to such review.
7. | Capital and Ownership |
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximum front-end sales charge of 3.25%. Investors who purchase $500,000 or more of Class A shares and sell those shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1.00% on sales although these purchases are not subject to a front-end sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
The RIC is authorized to issue 10,225,000,000 shares of common stock, $0.00001 par value per share, 600,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
Class | Number of Shares | |
A | 100,000,000 | |
C | 100,000,000 | |
Z | 200,000,000 | |
R6 | 200,000,000 |
As of April 30, 2022, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Class | Number of Shares | Percentage of Outstanding Shares | ||
A | 1,257 | 15.7% | ||
C | 1,217 | 100.0 | ||
R6 | 7,317,516 | 43.1 |
PGIM Emerging Markets Debt Hard Currency Fund 71
Notes to Financial Statements (unaudited) (continued)
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
Number of Shareholders | Percentage of Outstanding Shares | |||
Affiliated | 1 | 39.1% | ||
Unaffiliated | 2 | 52.2 |
Transactions in shares of common stock were as follows:
Share Class | Shares | Amount | ||||||
Class A | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 37,460 | $ | 319,657 | |||||
Shares issued in reinvestment of dividends and distributions | 224 | 1,883 | ||||||
Shares purchased | (36,161 | ) | (307,620 | ) | ||||
Net increase (decrease) in shares outstanding | 1,523 | $ | 13,920 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 3,166 | $ | 28,994 | |||||
Shares issued in reinvestment of dividends and distributions | 228 | 2,106 | ||||||
Shares purchased | (63 | ) | (581 | ) | ||||
Net increase (decrease) in shares outstanding | 3,331 | $ | 30,519 | |||||
Class C | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares issued in reinvestment of dividends and distributions | 31 | $ | 261 | |||||
Net increase (decrease) in shares outstanding | 31 | $ | 261 | |||||
Year ended October 31, 2021: | ||||||||
Shares issued in reinvestment of dividends and distributions | 43 | $ | 395 | |||||
Net increase (decrease) in shares outstanding | 43 | $ | 395 |
72
Share Class | Shares | Amount | ||||||
Class Z | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 719,425 | $ | 6,143,998 | |||||
Shares issued in reinvestment of dividends and distributions | 46,338 | 387,985 | ||||||
Shares purchased | (993,877 | ) | (7,919,043 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | (228,114 | ) | (1,387,060 | ) | ||||
Shares issued upon conversion from other share class(es) | 262 | 2,039 | ||||||
Shares purchased upon conversion into other share class(es) | (6,402 | ) | (53,973 | ) | ||||
Net increase (decrease) in shares outstanding | (234,254 | ) | $ | (1,438,994 | ) | |||
Year ended October 31, 2021: | ||||||||
Shares sold | 4,468,483 | $ | 41,307,258 | |||||
Shares issued in reinvestment of dividends and distributions | 115,282 | 1,064,840 | ||||||
Shares purchased | (1,031,335 | ) | (9,474,853 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 3,552,430 | 32,897,245 | ||||||
Shares issued upon conversion from other share class(es) | 14,250 | 132,076 | ||||||
Shares purchased upon conversion into other share class(es) | (3,713,016 | ) | (34,383,477 | ) | ||||
Net increase (decrease) in shares outstanding | (146,336 | ) | $ | (1,354,156 | ) | |||
Class R6 | ||||||||
Six months ended April 30, 2022: | ||||||||
Shares sold | 3,506,098 | $ | 28,905,256 | |||||
Shares issued in reinvestment of dividends and distributions | 505,491 | 4,226,374 | ||||||
Shares purchased | (2,076,594 | ) | (16,814,260 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 1,934,995 | 16,317,370 | ||||||
Shares issued upon conversion from other share class(es) | 6,406 | 53,973 | ||||||
Shares purchased upon conversion into other share class(es) | (262 | ) | (2,039 | ) | ||||
Net increase (decrease) in shares outstanding | 1,941,139 | $ | 16,369,304 | |||||
Year ended October 31, 2021: | ||||||||
Shares sold | 4,369,851 | $ | 40,360,478 | |||||
Shares issued in reinvestment of dividends and distributions | 566,570 | 5,224,667 | ||||||
Shares purchased | (4,623,318 | ) | (42,810,265 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 313,103 | 2,774,880 | ||||||
Shares issued upon conversion from other share class(es) | 3,717,030 | 34,383,477 | ||||||
Shares purchased upon conversion into other share class(es) | (14,263 | ) | (132,076 | ) | ||||
Net increase (decrease) in shares outstanding | 4,015,870 | $ | 37,026,281 |
8. | Borrowings |
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a
PGIM Emerging Markets Debt Hard Currency Fund 73
Notes to Financial Statements (unaudited) (continued)
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 SCA.
SCA | ||||
Term of Commitment | 10/1/2021 – 9/29/2022 | |||
Total Commitment | $ 1,200,000,000 | |||
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 |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2022.
9. | Risks of Investing in the Fund |
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Credit Risk: Credit risk relates to the ability of the issuer of a fixed income instrument or the counterparty to a financial transaction with the Fund to meet interest and principal payments as they come due or to fulfill its obligations to the Fund. The value of the fixed income instruments held by the Fund will be adversely affected by any erosion in the ability of the relevant issuers to make interest and principal payments as they become due. The ratings given to a debt security by certain ratings agencies provide a generally useful guide as to such credit risk. The lower the rating of a debt security held by the Fund, the greater the degree of credit risk that is perceived to exist by the rating agency with respect to that security. Increasing the amount of Fund assets invested in lower-rated securities generally will increase the Fund’s income, but also will increase the credit risk to which the Fund is subject. The Fund generally enters into financial transactions with major dealers that are deemed acceptable to the subadviser from a credit perspective.
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Currency Risk: The Fund’s assets may be invested in securities that are denominated in non-US currencies or directly in currencies. Such investments are subject to the risk that the value of a particular currency will change in relation to the US dollar or other currencies. The weakening of a country’s currency relative to the US dollar will negatively affect the dollar value of the Fund’s assets. Among the factors that may affect currency values are trade balances, levels of short term interest rates, differences in relative values of similar assets in different currencies, long term opportunities for investment and capital appreciation, central bank policy, and political developments. The Fund may attempt to hedge such risks by selling or buying currencies in the forward market; selling or buying currency futures contracts, options or other securities thereon; borrowing funds denominated in particular currencies; or any combination thereof, depending on the availability of liquidity in the hedging instruments and their relative costs. There can be no assurance that such strategies will be implemented or, if implemented, will be effective. The Fund would incur additional costs from hedging.
Debt Obligations Risk: Debt obligations are subject to credit risk, market risk and interest rate risk. The Fund’s holdings, share price, yield and total return may also fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may lose income.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives 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. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.
The U.S. Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements and risk exposure limitations. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance or disrupt markets.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or
PGIM Emerging Markets Debt Hard Currency Fund 75
Notes to Financial Statements (unaudited) (continued)
stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
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
76
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.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk.” The Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Junk Bonds Risk: High-yield, high-risk bonds have predominantly speculative characteristics, including particularly high credit risk. Junk bonds tend to have lower market liquidity than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly and without warning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by major investors, a high profile default or a change in the market’s psychology.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the
PGIM Emerging Markets Debt Hard Currency Fund 77
Notes to Financial Statements (unaudited) (continued)
Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
78
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
10. | Recent Accounting Pronouncement and Regulatory Developments |
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance for applying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective on March 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 to have a material impact on the financial statements.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
PGIM Emerging Markets Debt Hard Currency Fund 79
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 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 Board.
At a meeting of the Board on March 1-3, 2022, 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 January 1, 2021 through December 31, 2021 (“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.
80
655 Broad Street
Newark, NJ 07102 | ⬛ TELEPHONE
(800) 225-1852 | ⬛ WEBSITE
pgim.com/investments |
PROXY VOTING
The Board of Directors of the Fund has delegated to the Fund’s subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.
DIRECTORS
Ellen S. Alberding ● Kevin J. Bannon ● Scott E. Benjamin ● Linda W. Bynoe ● Barry H. Evans ● Keith F. Hartstein ● Laurie Simon Hodrick ● Stuart S. Parker ● Brian K. Reid ● Grace C. Torres
OFFICERS
Stuart S. Parker, President ● Scott E. Benjamin, Vice President ● Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer ●
Claudia DiGiacomo, Chief Legal Officer ● Isabelle Sajous, Chief Compliance Officer ● Jonathan Corbett, Anti-Money Laundering Compliance Officer ●
Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Diana N. Huffman, Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ●
Patrick E. McGuinness, Assistant Secretary ● Debra Rubano, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Russ Shupak, Assistant Treasurer ● Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
SUBADVISERS | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
PGIM Limited | Grand Buildings, 1-3 Strand Trafalgar Square London, WC2N 5HR United Kingdom | |||
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 and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.
E-DELIVERY
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Emerging Markets Debt Hard Currency Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee.
AVAILABILITY OF PORTFOLIO HOLDINGS
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter 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 EMERGING MARKETS DEBT HARD CURRENCY FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | PDHAX | PDHCX | PDHVX | PDHQX | ||||
CUSIP | 743969479 | 743969461 | 743969446 | 743969453 |
MF239E2
Item 2 – | Code of Ethics – Not required, as this is not an annual filing. |
Item 3 – | Audit Committee Financial Expert – Not required, as this is not an annual filing. |
Item 4 – | Principal Accountant Fees and Services – Not required, as this is not an annual filing. |
Item 5 – | Audit Committee of Listed Registrants – Not applicable. |
Item 6 – | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. |
Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. |
Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
Item 10 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures. |
Item 11 – | Controls and Procedures |
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
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. | |||
(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | Prudential World Fund, Inc. | |
By: | /s/ Andrew R. French | |
Andrew R. French | ||
Secretary | ||
Date: | June 17, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stuart S. Parker | |
Stuart S. Parker | ||
President and Principal Executive Officer | ||
Date: | June 17, 2022 | |
By: | /s/ Christian J. Kelly | |
Christian J. Kelly | ||
Treasurer and Principal Financial and Accounting Officer | ||
Date: | June 17, 2022 |