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: | 811-04024 | |
Exact name of registrant as specified in charter: | Prudential Investment Portfolios 6 | |
Address of principal executive offices: | Gateway Center 3, | |
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Deborah A. Docs | |
Gateway Center 3, | ||
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 8/31/2012 | |
Date of reporting period: | 2/29/2012 |
Item 1 – Reports to Stockholders
PRUDENTIAL INVESTMENTS»MUTUAL FUNDS
PRUDENTIAL CALIFORNIA MUNI INCOME FUND
SEMIANNUAL REPORT · FEBRUARY 29, 2012
Fund Type
Municipal Bond
Objective
Maximize current income that is exempt from California state and federal income taxes, consistent with the preservation of capital
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.
The accompanying financial statements as of February 29, 2012, were not audited and, accordingly, no auditor’s opinion is expressed on them.
Prudential Investments, Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
![]() |
April 16, 2012
Dear Shareholder:
After an extraordinary career at Prudential, Judy Rice retired at the end of 2011 as President of Prudential Investments and President and Trustee of the Prudential California Muni Income Fund (the Fund). While she will remain as Chairman of Prudential Investments until the end of 2012, I was named to succeed her as President of Prudential Investments and President and Trustee of the Fund effective January 1, 2012. I previously served as Executive Vice President of Retail Mutual Fund Distribution for Prudential Investments for the past six years.
Since this is my first letter to shareholders, I would like to recognize Judy for the significant contributions she made in building the Prudential Investments fund family and her unflagging commitment to helping investors like you meet the challenges of a rapidly changing investment environment. My goal is to build on Judy’s accomplishments, with a particular focus on delivering the solutions you need to address your financial goals.
I hope you find the semiannual report for the Fund informative. We recognize that ongoing market volatility may make it a difficult time to be an investor. We continue to believe a prudent response to uncertainty is to maintain a diversified portfolio, including stock and bond mutual funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial professional can help you create a diversified investment plan that reflects your personal investor profile and risk tolerance. Keep in mind that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets. We encourage you to call your financial professional before making any investment decision.
Prudential Investments provides a wide range of mutual funds to choose from that can help you make progress toward your financial goals. Our funds offer the experience, resources, and professional discipline of Prudential Financial’s affiliated asset managers. Thank you for choosing the Prudential Investments family of mutual funds.
Sincerely,
Stuart S. Parker, President
Prudential California Muni Income Fund
Prudential California Muni Income Fund | 1 |
Your Fund’s Performance (Unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The maximum initial sales charge is 4.00% (Class A shares). Gross operating expenses: Class A, 0.98%; Class B, 1.18%; Class C, 1.68%; Class Z, 0.68%. Net operating expenses: Class A, 0.93%; Class B, 1.18%; Class C, 1.68%; Class Z, 0.68%, after contractual reduction through 12/31/2012 for Class A shares.
Cumulative Total Returns (Without Sales Charges) as of 2/29/12 |
| |||||||||||||||
Six Months | One Year | Five Years | Ten Years | |||||||||||||
Class A | 7.28 | % | 14.60 | % | 27.13 | % | 61.45 | % | ||||||||
Class B | 7.15 | 14.32 | 25.57 | 57.48 | ||||||||||||
Class C | 6.89 | 13.76 | 23.69 | 53.24 | ||||||||||||
Class Z | 7.32 | 14.89 | 28.82 | 65.64 | ||||||||||||
Barclays Capital Municipal Bond Index | 5.67 | 12.42 | 30.73 | 67.94 | ||||||||||||
Lipper California (CA) Muni Debt Funds Avg. | 8.04 | 16.11 | 22.97 | 55.95 | ||||||||||||
Average Annual Total Returns (With Sales Charges) as of 3/31/12 |
| |||||||||||||||
One Year | Five Years | Ten Years | ||||||||||||||
Class A | 9.93 | % | 4.04 | % | 4.67 | % | ||||||||||
Class B | 9.22 | 4.47 | 4.84 | |||||||||||||
Class C | 12.66 | 4.32 | 4.55 | |||||||||||||
Class Z | 14.81 | 5.15 | 5.37 | |||||||||||||
Barclays Capital Municipal Bond Index | 12.07 | 5.42 | 5.46 | |||||||||||||
Lipper California (CA) Muni Debt Funds Avg. | 16.35 | 4.18 | 4.70 |
Source: Prudential Investments LLC and Lipper Inc. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of such fee waivers and/or expense reimbursements, total returns would be lower.
The average annual total returns take into account applicable sales charges. Class A shares are subject to a maximum front-end sales charge of 4.00% and a 12b-1 fee of up to 0.30% annually. Investors who purchase Class A shares in an amount of $1 million or more do not pay a front-end sales charge, but are subject to a contingent deferred sales charge (CDSC) of 1% for shares sold within 12 months of purchase. The CDSC is waived for purchases by certain retirement and/or benefit plans. 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. Class B shares are subject to a declining CDSC of 5%, 4%, 3%, 2%, 1%, and 1%, respectively, for the first six years after purchase and a 12b-1 fee of up to 0.50% annually. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class C shares are subject to a CDSC of 1% for 12 months from the date of purchase, and an annual 12b-1 fee of 1%. Class Z shares are not subject to a sales
2 | Visit our website at www.prudentialfunds.com |
charge or 12b-1 fee. 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.
Benchmark Definitions
Barclays Capital Municipal Bond Index
The Barclays Capital Municipal Bond Index (the Index) is an unmanaged index of over 39,000 long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed.
Lipper California (CA) Muni Debt Funds Average
The Lipper CA Muni Debt Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper CA Muni Debt Funds category for the periods noted. Funds in the Lipper Average limit their assets to those securities that are exempt from taxation in California.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
Five Largest Issues expressed as a percentage of net assets as of 2/29/12 | ||||
Southern California Pub. Pwr. Auth. Rev., Palo Verde Proj., Ser. C, A.M.B.A.C., E.T.M., C.A.B.S., Rfdg. 1.700%, 7/01/16 | 6.7 | % | ||
Sacramento City Fin. Auth., Tax Alloc. Comb. Proj., Ser. B, C.A.B.S., N.A.T.L., 3.440%, 11/01/16 | 2.3 | |||
Sacramento City Fin. Auth., Ser. B, C.A.B.S., N.A.T.L., 3.608%, 11/01/17 | 2.2 | |||
Long Beach Hbr. Rev., Ser. A, A.M.T., N.A.T.L., Rfdg. 6.000%, 5/15/19 | 1.8 | |||
Los Angeles Calif. Cmnty. College Dist., 2003 Election, Ser. F-1, GO, 5.000%, 8/01/33 | 1.7 |
Issues are subject to change.
Distributions and Yields as of 2/29/12 |
| |||||||||||||||
Total Distributions Paid for Six Months | 30-Day SEC Yield | Taxable Equivalent 30-Day Yield* at Federal Tax Rates of | ||||||||||||||
33% | 35% | |||||||||||||||
Class A | $ | 0.23 | 2.77 | % | 4.57 | % | 4.71 | % | ||||||||
Class B | 0.21 | 2.63 | 4.34 | 4.47 | ||||||||||||
Class C | 0.19 | 2.13 | 3.51 | 3.62 | ||||||||||||
Class Z | 0.24 | 3.13 | 5.16 | 5.32 |
* Some investors may be subject to the federal alternative minimum tax (AMT). Taxable equivalent yields reflect federal and applicable state tax rates.
Prudential California Muni Income Fund | 3 |
Your Fund’s Performance (continued)
Credit Quality* expressed as a percentage of net assets as of 2/29/12 | ||||
Aaa | 3.1 | % | ||
Aa | 28.8 | |||
A | 31.6 | |||
Baa | 18.3 | |||
Ba | 0.9 | |||
B | 1.6 | |||
Not Rated | 14.3 | |||
Total Investments | 98.6 | |||
Other assets in excess of liabilities | 1.4 | |||
Net Assets | 100 | % | ||
|
|
*Source: Moody’s rating, defaulting to S&P when not rated by Moody’s.
Credit quality is subject to change.
4 | Visit our website at www.prudentialfunds.com |
Fees and Expenses (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on September 1, 2011, at the beginning of the period, and held through the six-month period ended February 29, 2012. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
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 Prudential Investments 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 provided in the expense table. Additional fees have the effect of reducing investment returns.
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
Prudential California Muni Income Fund | 5 |
Fees and Expenses (continued)
expenses, which is not the Fund’s actual return. The hypothetical account values and expenses should not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line 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.
Prudential California Muni Income Fund | Beginning Account Value September 1, 2011 | Ending Account Value February 29, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,072.80 | 0.93 | % | $ | 4.79 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.24 | 0.93 | % | $ | 4.67 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,071.50 | 1.18 | % | $ | 6.08 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.00 | 1.18 | % | $ | 5.92 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,068.90 | 1.68 | % | $ | 8.64 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.51 | 1.68 | % | $ | 8.42 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,073.20 | 0.68 | % | $ | 3.51 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.48 | 0.68 | % | $ | 3.42 |
* 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 182 days in the six-month period ended February 29, 2012, and divided by the 366 days in the Fund’s fiscal year ending August 31, 2012 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
6 | Visit our website at www.prudentialfunds.com |
Portfolio of Investments
as of February 29, 2012 (Unaudited)
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
LONG-TERM INVESTMENTS 97.4% | ||||||||||||||||
Municipal Bonds | ||||||||||||||||
Abag Fin. Auth. For Nonprofit Corp. Rev., | ||||||||||||||||
Episcopal Senior Communities, Rfdg. | BBB+(b) | 6.125% | 07/01/41 | $ | 475 | $ | 507,865 | |||||||||
San Diego Hosp. Assoc., Ser. C | A2 | 5.375 | 03/01/21 | 1,665 | 1,754,111 | |||||||||||
Sharp Healthcare | A2 | 6.250 | 08/01/39 | 1,000 | 1,162,040 | |||||||||||
California Cnty. Tobacco Securitization Agy., Rev., | ||||||||||||||||
Tobacco Conv. Bonds | NR | 5.100 | 06/01/28 | 1,035 | 886,136 | |||||||||||
Tobacco Conv. Bonds, LA Cnty. | Ba1 | 5.250 | 06/01/21 | 915 | 851,334 | |||||||||||
California Edl. Facs. Auth. Rev., | ||||||||||||||||
Loyola Marymount Univ., Ser. A | A2 | 5.125 | 10/01/40 | 1,000 | 1,070,950 | |||||||||||
California Health Facs. Fin. Auth. Rev., | ||||||||||||||||
Catholic Healthcare West, Ser. A | A2 | 6.000 | 07/01/39 | 2,000 | 2,289,020 | |||||||||||
Childrens Hospital, Ser. A | A(b) | 5.250 | 11/01/41 | 1,000 | 1,086,840 | |||||||||||
Episcopal Home, Ser. B | A-(b) | 6.000 | 02/01/32 | 1,000 | 1,103,190 | |||||||||||
Providence Health, Ser. B | Aa2 | 5.500 | 10/01/39 | 1,500 | 1,657,320 | |||||||||||
Providence Health, Ser. C (Pre-refunded date 10/01/18)(c) | Aa2 | 6.500 | 10/01/38 | 20 | 26,861 | |||||||||||
Providence Health, Ser. C, Unrefunded Balance | Aa2 | 6.500 | 10/01/38 | 980 | 1,151,627 | |||||||||||
Scripps Health, Ser. A | Aa3 | 5.000 | 11/15/40 | 1,000 | 1,086,470 | |||||||||||
Scripps Health, Ser. A, Rfdg. | Aa3 | 5.000 | 10/01/22 | 500 | 576,575 | |||||||||||
Scripps Health, Ser. A, Rfdg. | Aa3 | 5.000 | 11/15/36 | 1,000 | 1,064,370 | |||||||||||
St. Joseph Health Sys., Ser. A | A1 | 5.750 | 07/01/39 | 1,000 | 1,106,270 | |||||||||||
Stanford Hosp., Ser. A-3, Rfdg. | Aa3 | 5.500 | 11/15/40 | 500 | 571,080 | |||||||||||
Stanford Hosp., Ser. B, Rfdg. | Aa3 | 5.000 | 11/15/36 | 2,000 | 2,145,780 | |||||||||||
California Statewide Cmntys. Dev. Auth. Rev., | ||||||||||||||||
Cottage Health | A+(b) | 5.000 | 11/01/40 | 600 | 627,006 | |||||||||||
Irvine LLC, UCI East, Rfdg. | Baa2 | 5.000 | 05/15/32 | 2,000 | 2,026,360 | |||||||||||
John Muir Health | A1 | 5.125 | 07/01/39 | 750 | 783,262 | |||||||||||
Polytechnic Sch. | A1 | 5.000 | 12/01/34 | 2,000 | 2,147,280 | |||||||||||
Sch. Fac. Rev., Aspire Pub. Schs. | NR | 6.000 | 07/01/30 | 1,000 | 1,052,510 | |||||||||||
Scripps Health, Ser. A | Aa3 | 5.250 | 08/15/31 | 1,000 | 1,142,500 | |||||||||||
Spl. Tax No. 97-1, C.A.B.S.(d) | NR | 6.340 | 09/01/22 | 3,610 | 1,943,877 | |||||||||||
Sr. Living-Southn. Calif. Presbyterian Homes | BBB-(b) | 7.250 | 11/15/41 | 500 | 555,325 |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 7 |
Portfolio of Investments
as of February 29, 2012 (Unaudited) continued
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
LONG-TERM INVESTMENTS (Continued) | ||||||||||||||||
Municipal Bonds (cont’d.) | ||||||||||||||||
Sutter Health, Ser. A | Aa3 | 6.000% | 08/15/42 | $ | 2,000 | $ | 2,311,100 | |||||||||
Trinity Hlth., Rfdg. | Aa2 | 5.000 | 12/01/41 | 2,000 | 2,156,760 | |||||||||||
Windrush Sch. | ||||||||||||||||
(original cost $1,000,000; purchased 07/26/07)(e)(f)(g) | NR | 5.500 | 07/01/37 | 1,000 | 600,000 | |||||||||||
California Infrastructure & Econ. Dev. Rev., Bk. Dev. Walt. Dis. Fam. Musm., Walt & Lilly Disney | A1 | 5.250 | 02/01/38 | 2,000 | 2,109,020 | |||||||||||
California Municipal Fin. Auth. Ed. Rev., Amern. Heritage Ed. Foundation Proj., Ser. A | BBB-(b) | 5.250 | 06/01/26 | 1,100 | 1,022,582 | |||||||||||
California Poll. Ctrl. Fin. Auth. Wtr. Facs. Rev., Amern. Wtr. Cap. Corp. Proj., 144A | Baa2 | 5.250 | 08/01/40 | 1,250 | 1,299,075 | |||||||||||
California Rural Home Mtge. Fin. Auth., Sngl. Fam. Mtge. Rev., Mtge. Bkd. Secs., Ser. D, F.N.M.A., G.N.M.A., A.M.T. | A-(b) | 6.000 | 12/01/31 | 25 | 25,332 | |||||||||||
California St., | ||||||||||||||||
Unrefunded Balance, GO | A1 | 5.500 | 04/01/30 | 5 | 5,355 | |||||||||||
Var. Purp., GO | A1 | 5.000 | 10/01/29 | 1,500 | 1,650,870 | |||||||||||
Var. Purp., GO | A1 | 5.000 | 09/01/41 | 2,000 | 2,134,020 | |||||||||||
Var. Purp., GO | A1 | 5.000 | 10/01/41 | 1,250 | 1,334,325 | |||||||||||
Var. Purp., GO | A1 | 5.250 | 11/01/40 | 750 | 816,937 | |||||||||||
Var. Purp., GO | A1 | 5.500 | 11/01/39 | 1,000 | 1,111,460 | |||||||||||
Var. Purp., GO | A1 | 5.500 | 03/01/40 | 2,000 | 2,216,780 | |||||||||||
Var. Purp., GO | A1 | 6.000 | 03/01/33 | 2,750 | 3,292,163 | |||||||||||
Var. Purp., GO | A1 | 6.000 | 04/01/38 | 3,000 | 3,475,290 | |||||||||||
Var. Purp., GO | A1 | 6.000 | 11/01/39 | 1,500 | 1,750,320 | |||||||||||
California St. Dept. Wtr. Res. Pwr. Rev., | ||||||||||||||||
Central VY Proj., Ser. A | Aa1 | 5.000 | 12/01/29 | 2,000 | 2,321,860 | |||||||||||
Central VY Proj., Ser. AF | Aa1 | 5.000 | 12/01/29 | 1,500 | 1,727,685 | |||||||||||
California St. Pub. Wks. Brd. Lease Rev., | ||||||||||||||||
Dept. General Service, Ser. J | A2 | 5.250 | 06/01/28 | 750 | 766,462 | |||||||||||
Judicial Council Projs., Ser. D | A2 | 5.000 | 12/01/31 | 1,000 | 1,070,870 | |||||||||||
Var. Cap. Proj., Ser. G-1 | A2 | 5.750 | 10/01/30 | 750 | 850,365 |
See Notes to Financial Statements.
8 | Visit our website at www.prudentialfunds.com |
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
LONG-TERM INVESTMENTS (Continued) | ||||||||||||||||
Municipal Bonds (cont’d.) | ||||||||||||||||
Var. Cap. Proj., Sub. Ser. I-1 | A2 | 6.375% | 11/01/34 | $ | 750 | $ | 879,885 | |||||||||
Var. Cap. Proj., Ser. A | A2 | 5.125 | 10/01/31 | 1,000 | 1,079,730 | |||||||||||
California State University | ||||||||||||||||
Ser. A, Systemwide | Aa2 | 5.000 | 11/01/37 | 1,250 | 1,366,162 | |||||||||||
Chico Redev. Agy. Tax Alloc., Chico Amended & Merged Redev., A.M.B.A.C. | A+(b) | 5.000 | 04/01/30 | 2,000 | 2,039,880 | |||||||||||
Chula Vista Dev. Agy. Rev., Tax Alloc. Sub. Bayfront, Ser. B, Rfdg. | NR | 5.250 | 10/01/27 | 1,540 | 1,541,032 | |||||||||||
Chula Vista Calif. Indl. Dev. Rev., | ||||||||||||||||
San Diego Gas-D-Rmkt. | Aa3 | 5.875 | 01/01/34 | 1,000 | 1,152,340 | |||||||||||
Corona-Norco Uni. Sch. Dist. Spl. Tax | ||||||||||||||||
Cmnty. Facs. Dist. No. 98-1, N.A.T.L. | Baa2 | 5.000 | 09/01/22 | 1,060 | 1,068,703 | |||||||||||
Coronado Cmnty. Dev. Agy. Tax. Alloc., Dev. Proj., A.M.B.A.C. | AA-(b) | 5.000 | 09/01/24 | 2,000 | 2,117,120 | |||||||||||
El Dorado Irr. Dist. Partn., Ser. A, A.G.C., C.O.P. | Aa3 | 5.750 | 08/01/39 | 1,000 | 1,078,300 | |||||||||||
El Dorado Cnty., Spl. Tax, Cmnty. Facs., | ||||||||||||||||
Dist. No. 92-1 | NR | 6.125 | 09/01/16 | 755 | 756,585 | |||||||||||
Dist. No. 92-1 | NR | 6.250 | 09/01/29 | 475 | 475,233 | |||||||||||
Foothill-De Anza Cmnty. College Dist., Ser. C GO | Aaa | 5.000 | 08/01/40 | 1,250 | 1,384,537 | |||||||||||
Foothill/Eastern Trans. Corr. Agy. Rev., Toll Rd., C.A.B.S. | Baa3 | 5.875 | 01/15/28 | 2,890 | 2,938,754 | |||||||||||
Glendale Redev. Agy. Tax Alloc., | ||||||||||||||||
Central Glendale Redev. Proj., N.A.T.L. | Baa2 | 5.250 | 12/01/19 | 3,275 | 3,343,087 | |||||||||||
Golden St. Tobacco Securitization Rev., | ||||||||||||||||
Asset Bkd., Ser. A-1 | B3 | 5.750 | 06/01/47 | 1,500 | 1,146,405 | |||||||||||
Asset-Bkd., Ser. 2003-A-1 (Pre-refunded date 06/01/13)(c) | Aaa | 6.750 | 06/01/39 | 2,700 | 2,914,839 | |||||||||||
Asset-Bkd., Sr., Ser. A-1 | B3 | 4.500 | 06/01/27 | 1,000 | 835,490 | |||||||||||
Enhanced Asset Bkd., Ser. A | A2 | 5.000 | 06/01/45 | 1,000 | 1,002,600 | |||||||||||
Ser. A, C.A.B.S., A.M.B.A.C. | A2 | 4.600 | 06/01/23 | 3,000 | 3,058,110 | |||||||||||
Golden West Sch. Fin. Auth. Rev., | ||||||||||||||||
Ser. A., C.A.B.S., N.A.T.L., Rfdg.(d) | Baa2 | 8.000 | 02/01/19 | 2,110 | 1,571,634 |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 9 |
Portfolio of Investments
as of February 29, 2012 (Unaudited) continued
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
LONG-TERM INVESTMENTS (Continued) | ||||||||||||||||
Municipal Bonds (cont’d.) | ||||||||||||||||
Guam Govt., Ltd. Oblig. Rev., | ||||||||||||||||
Section 30, Ser. A | BBB-(b) | 5.750% | 12/01/34 | $ | 500 | $ | 531,745 | |||||||||
Territory of Guam Ser. A | A(b) | 5.125 | 01/01/42 | 300 | 325,179 | |||||||||||
La Mesa-Spring Valley Sch. Dist., | ||||||||||||||||
GO, Election of 2002, Ser. B, C.A.B.S., N.A.T.L.(d) | Aa3 | 4.147 | 08/01/23 | 2,000 | 1,256,240 | |||||||||||
Lincoln Calif. Pub. Fing. Auth. | ||||||||||||||||
Twelve Bridges Sub. Dist., Ser. B | NR | 6.000 | 09/02/27 | 1,000 | 1,038,880 | |||||||||||
Long Beach Bond Fin. Auth. Natural Gas Purchase Rev., Ser. A | Baa1 | 5.500 | 11/15/37 | 500 | 547,455 | |||||||||||
Long Beach Hbr. Rev., Ser. A, A.M.T., N.A.T.L., Rfdg. | Aa2 | 6.000 | 05/15/19 | 3,000 | 3,758,730 | |||||||||||
Long Beach Redev. Agy., Dist. No. 3, Spl. Tax Rev., Pine Ave. | NR | 6.375 | 09/01/23 | 2,510 | 2,511,757 | |||||||||||
Los Angeles Calif. Cmnty. College Dist., | ||||||||||||||||
2003 Election, Ser. F-1, GO | Aa1 | 5.000 | 08/01/33 | 3,250 | 3,599,018 | |||||||||||
2008 Election, Ser. A, GO | Aa1 | 6.000 | 08/01/33 | 2,000 | 2,387,720 | |||||||||||
Los Angeles Calif. Dept. Arpts. Rev., Ser. A | Aa3 | 5.000 | 05/15/34 | 1,000 | 1,101,510 | |||||||||||
Los Angeles Dept. of Wtr. & Pwr. Rev., Ser. A | Aa3 | 5.000 | 07/01/39 | 1,000 | 1,091,750 | |||||||||||
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev., Ser. A | Aa2 | 5.375 | 07/01/38 | 1,530 | 1,720,883 | |||||||||||
M-S-R Energy Auth., Calif., Ser. A | A-(b) | 6.500 | 11/01/39 | 1,000 | 1,232,120 | |||||||||||
Metro. Wtr. Dist. of Southern Calif. Wtrwks. Rev., | ||||||||||||||||
Linked, S.A.V.R.S., R.I.B.S. | Aa1 | 5.750 | 08/10/18 | 2,000 | 2,403,820 | |||||||||||
Unrefunded Balance Ser. A | Aa1 | 5.750 | 07/01/21 | 2,240 | 2,807,728 | |||||||||||
Palomar Pomerado Healthcare Dist. Calif. Ctfs. Partn. C.O.P. | Baa3 | 6.000 | 11/01/41 | 1,200 | 1,230,852 | |||||||||||
Perris Cmnty. Facs. Dist., Spec. Tax No. 01-2 Avalon, Ser. A | NR | 6.250 | 09/01/23 | 2,000 | 2,052,960 | |||||||||||
Pittsburg Redev. Agy. Tax Alloc., Los Medanos Cmnty. Dev. Proj., | ||||||||||||||||
A.M.B.A.C., C.A.B.S.(d) | A+(b) | 5.878 | 08/01/26 | 1,375 | 599,445 | |||||||||||
Ser. B, A.G.C., A.M.T. (Pre-refunded date 08/01/13)(c) | Aa3 | 5.800 | 08/01/34 | 1,700 | 1,868,521 |
See Notes to Financial Statements.
10 | Visit our website at www.prudentialfunds.com |
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
LONG-TERM INVESTMENTS (Continued) | ||||||||||||||||
Municipal Bonds (cont’d.) | ||||||||||||||||
Port of Oakland | ||||||||||||||||
A.M.T., Inter. Lien, Ser. A, N.A.T.L., Rfdg. | A3 | 5.000% | 11/01/29 | $ | 3,000 | $ | 3,063,630 | |||||||||
A.M.T., Ser. O, Rfdg. | A2 | 5.125 | 05/01/30 | 1,000 | 1,058,820 | |||||||||||
Puerto Rico Comnwlth., Pub. Impt., | ||||||||||||||||
Ser. C, GO, Rfdg. | Baa1 | 6.000 | 07/01/39 | 400 | 439,744 | |||||||||||
Puerto Rico Comnwlth. Aqueduct & Swr. Auth. Rev., | ||||||||||||||||
Sr. Lien, Ser. A | Baa2 | 5.750 | 07/01/37 | 390 | 415,307 | |||||||||||
Sr. Lien, Ser. A | Baa2 | 6.000 | 07/01/47 | 325 | 349,876 | |||||||||||
Puerto Rico Pub. Bldgs. Auth. Rev., | ||||||||||||||||
Gtd. Govt. Facs., Ser. P, Rfdg. | Baa1 | 6.750 | 07/01/36 | 250 | 292,123 | |||||||||||
Puerto Rico Elec. Pwr. Auth. Rev., | ||||||||||||||||
Ser. XX | A3 | 5.250 | 07/01/40 | 1,000 | 1,049,480 | |||||||||||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev., | ||||||||||||||||
First Sub., Ser. A | A1 | 5.250 | 08/01/43 | 500 | 541,300 | |||||||||||
First Sub., Ser. A | A1 | 5.500 | 08/01/42 | 750 | 816,158 | |||||||||||
First Sub., Ser. A | A1 | 5.750 | 08/01/37 | 400 | 447,004 | |||||||||||
First Sub., Ser. A | A1 | 6.000 | 08/01/42 | 700 | 793,436 | |||||||||||
Ser. C | Aa2 | 5.250 | 08/01/40 | 750 | 832,920 | |||||||||||
Redding Elec. Sys. Rev., C.O.P., Linked S.A.V.R.S., R.I.B.S. | ||||||||||||||||
N.A.T.L., E.T.M.(c) | Baa2 | 6.368 | 07/01/22 | 90 | 110,308 | |||||||||||
N.A.T.L., E.T.M.(c)(e)(h)(i) | Baa2 | 7.060 | 07/01/22 | 2,175 | 3,156,534 | |||||||||||
Riverside Cnty. Calif. Redev. Agy. Tax Alloc., Intst. 215 Corridor, Ser. E | Baa3 | 6.500 | 10/01/40 | 1,000 | 1,089,800 | |||||||||||
Rocklin Uni. Sch. Dist., Ser. C, GO, C.A.B.S., N.A.T.L.(d) | Baa2 | 2.611 | 08/01/16 | 1,400 | 1,250,998 | |||||||||||
Sacramento City Fin. Auth., | ||||||||||||||||
Ser. B, C.A.B.S., N.A.T.L.(d) | Baa2 | 3.608 | 11/01/17 | 5,695 | 4,664,831 | |||||||||||
Tax Alloc. Comb. Proj., Ser. B, C.A.B.S., N.A.T.L.(d) | Baa2 | 3.440 | 11/01/16 | 5,700 | 4,875,552 | |||||||||||
Sacramento Cnty. Santn. Dist. Fing. Auth. Rev., Var.-Regl., Ser. B, N.A.T.L.(h) | Aa3 | 0.857 | 12/01/35 | 1,000 | 696,170 | |||||||||||
San Bernardino Cmnty. College Dist., Election 2002, Ser. A, GO | Aa2 | 6.250 | 08/01/33 | 1,750 | 2,082,185 |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 11 |
Portfolio of Investments
as of February 29, 2012 (Unaudited) continued
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
LONG-TERM INVESTMENTS (Continued) | ||||||||||||||||
Municipal Bonds (cont’d.) | ||||||||||||||||
San Buenaventura Calif. Rev., | ||||||||||||||||
Cmnty. Mem. Hlth. Sys. | Ba2 | 7.500% | 12/01/41 | $ | 500 | $ | 562,190 | |||||||||
Cmnty. Mem. Hlth. Sys. | Ba2 | 8.000 | 12/01/26 | 500 | 598,365 | |||||||||||
San Diego Cmnty. College District | ||||||||||||||||
Election 2006 | Aa1 | 5.000 | 08/01/41 | 1,500 | 1,681,785 | |||||||||||
San Diego Redev., Agy., Tax Alloc., | ||||||||||||||||
North Bay Redev. | Baa1 | 5.875 | 09/01/29 | 3,000 | 3,002,580 | |||||||||||
San Diego Regl. Bldg. Auth. Lease Rev., Ctny. Operations Ctr. & Annex A | Aa3 | 5.375 | 02/01/36 | 1,000 | 1,109,490 | |||||||||||
San Diego Uni. Sch. Dist., Election of 1998, Ser. B, GO, N.A.T.L. | Aa2 | 6.000 | 07/01/19 | 1,000 | 1,308,760 | |||||||||||
San Francisco City & Cnty. & Cnty. Arirports Commission | ||||||||||||||||
A.M.T., Second Ser. A, Rfdg. | A1 | 5.000 | 05/01/31 | 1,000 | 1,089,830 | |||||||||||
A.M.T., Second Ser. C, Rfdg. | A1 | 5.000 | 05/01/25 | 1,555 | 1,736,577 | |||||||||||
A.M.T., Second Ser. F, Rfdg. | A1 | 5.000 | 05/01/28 | 1,000 | 1,098,650 | |||||||||||
San Francisco Calif City & Cnty. Redev. Fing. Auth. Tax Alloc. Mission Bay North Redev., Ser. C | A-(b) | 6.500 | 08/01/39 | 1,000 | 1,104,400 | |||||||||||
San Jose Calif. Library & Park Proj., GO | Aaa | 5.000 | 09/01/33 | 2,200 | 2,375,472 | |||||||||||
San Jose Calif. Redev. Agy. Tax Alloc., Merged Area Redev. Proj., Hsgset. Aside, Ser. A-1, Rfdg. | A3 | 5.500 | 08/01/35 | 1,000 | 1,022,260 | |||||||||||
San Jose Evergreen Cmnty. College Dist. Election 2004, Ser. B, A.G.C., GO(d) | Aa1 | 2.390 | 09/01/17 | 1,000 | 879,300 | |||||||||||
San Leandro Cmnty. Facs., | ||||||||||||||||
Spl. Tax, Dist. No.1 | NR | 6.500 | 09/01/25 | 2,160 | 2,162,376 | |||||||||||
San Mateo Cnty. Calif. Jt. Pwrs. Fin. Auth. | Aa2 | 5.000 | 07/15/33 | 1,000 | 1,066,190 | |||||||||||
Santa Margarita Dana Point Auth. Impt. Rev., Dists., 3, 3A, 4, 4A, Ser. B, N.A.T.L. | Baa2 | 7.250 | 08/01/14 | 2,000 | 2,231,540 | |||||||||||
Santa Maria Joint Union H.S. Dist., | ||||||||||||||||
Election of 2004, C.A.B.S., GO, N.A.T.L.(d) | Aa3 | 5.175 | 08/01/29 | 1,250 | 516,050 |
See Notes to Financial Statements.
12 | Visit our website at www.prudentialfunds.com |
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
LONG-TERM INVESTMENTS (Continued) | ||||||||||||||||
Municipal Bonds (cont’d.) | ||||||||||||||||
Santa Monica Cmnty. College Dist. Election 2002, Ser. A, GO, N.A.T.L., C.A.B.S.(d) | Aa1 | 4.413% | 08/01/28 | $ | 1,055 | $ | 517,224 | |||||||||
South Bayside Waste Mgmt. Auth. Calif. Solid Waste Enterprise Shoreway Environmental | A3 | 6.000 | 09/01/36 | 500 | 543,345 | |||||||||||
Southern California Pub. Pwr. Auth. Rev., | ||||||||||||||||
Palo Verde Proj., Ser. C, A.M.B.A.C., E.T.M., C.A.B.S., Rfdg.(c)(d) | NR | 1.700 | 07/01/16 | 15,660 | 14,319,817 | |||||||||||
PNC G.I.C. Proj. Rev. | A2 | 6.750 | 07/01/13 | 1,000 | 1,077,500 | |||||||||||
Tobacco Securitization Auth. Northn. Calif. Rev., Asset-Bkd. Tobacco Settlement, Ser. A | B3 | 5.500 | 06/01/45 | 2,000 | 1,353,980 | |||||||||||
Torrance Hosp. Rev., Torrance Mem. Med. Ctr., Ser. A | A2 | 6.000 | 06/01/22 | 2,000 | 2,019,800 | |||||||||||
Tuolumne Wind Proj. Auth. Calif. Rev., Tuolumne Co. Proj., Ser. A | A2 | 5.625 | 01/01/29 | 1,000 | 1,143,230 | |||||||||||
University Calif. Rev., | ||||||||||||||||
Gen., Ser. O | Aa1 | 5.750 | 05/15/34 | 1,250 | 1,461,638 | |||||||||||
Ser. Q | Aa1 | 5.000 | 05/15/34 | 1,000 | 1,095,200 | |||||||||||
U.C.L.A. Med. Ctr., Ser. A, A.M.B.A.C., Unrefunded Bal. | NR | 5.250 | 05/15/30 | 1,000 | 1,008,440 | |||||||||||
Ventura Cnty. Cmnty. College, GO | Aa2 | 5.500 | 08/01/33 | 2,000 | 2,324,480 | |||||||||||
Virgin Islands Pub. Fin. Auth. Rev., | ||||||||||||||||
Matching Fd. Ln., Diago, Ser. A | Baa3 | 6.750 | 10/01/37 | 250 | 286,903 | |||||||||||
|
| |||||||||||||||
Total long-term investments (cost $187,760,470) | 206,964,877 | |||||||||||||||
|
|
See Notes to Financial Statements.
Prudential California Muni Income Fund | 13 |
Portfolio of Investments
as of February 29, 2012 (Unaudited) continued
Description(a) | Moody’s Rating*† | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||||||
SHORT-TERM INVESTMENT 1.2% | ||||||||||||||||
Municipal Bonds | ||||||||||||||||
California St., Var. Ser. C. RMKT, F.R.D.D.(h) | VMIG1 | 0.080% | 07/01/23 | $ | 2,500 | $ | 2,500,000 | |||||||||
|
| |||||||||||||||
Total Investments 98.6% | ||||||||||||||||
(cost $190,260,470; Note 5) | 209,464,877 | |||||||||||||||
Other assets in excess of liabilities(j) 1.4% | 3,076,749 | |||||||||||||||
|
| |||||||||||||||
Net Assets 100.0% | $ | 212,541,626 | ||||||||||||||
|
|
* | The ratings reflected are as of February 29, 2012. Ratings of certain bonds may have changed subsequent to that date. |
† | The Fund’s current Statement of Additional Information contains a description of Moody’s and Standard & Poor’s ratings. |
(a) | The following abbreviations are used in portfolio descriptions: |
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
A.G.C.—Assured Guaranty Corp.
A.M.B.A.C.—American Municipal Bond Assurance Corp.
A.M.T.—Alternative Minimum Tax.
C.A.B.S.—Capital Appreciation Bonds.
C.O.P.—Certificates of Participation.
E.T.M.—Escrowed to Maturity.
F.N.M.A.—Federal National Mortgage Association.
F.R.D.D.—Floating Rate Daily Demand Note.
G.I.C.—Group Insurance Commission.
G.N.M.A.—Government National Mortgage Association.
GO—General Obligation.
N.A.T.L.—National Public Finance Guaranty Corp.
NR—Not Rated by Moody’s or Standard & Poor’s.
R.I.B.S.—Residual Interest Bonds.
S.A.V.R.S.—Select Auction Variable Rate Securities.
(b) | Standard & Poor’s Rating. |
(c) | All or partial escrowed to maturity and pre-funded issues are secured by escrowed cash and/or U.S. guaranteed obligations. |
(d) | Represents zero coupon bond. Rate shown reflects the effective yield at February 29, 2012. |
(e) | Indicates a security that has been deemed illiquid. |
(f) | Represents issuer in default on interest payments and/or principal repayment. |
See Notes to Financial Statements.
14 | Visit our website at www.prudentialfunds.com |
(g) | Indicates a restricted security; the aggregate original cost of such securities is $1,000,000. The aggregate value of $600,000 is approximately 0.3% of net assets. |
(h) | Variable rate instrument. The interest rate shown reflects the rate in effect at February 29, 2012. |
(i) | Inverse floating rate bond. The coupon is inversely indexed to a floating interest rate. The rate shown is the rate at February 29, 2012. |
(j) | Includes net unrealized appreciation on the following derivative contracts held at reporting period end: |
Open futures contracts outstanding at February 29, 2012:
Number of Contracts | Type | Expiration Date | Value at Trade Date | Value at February 29, 2012 | Unrealized Appreciation (Depreciation)(1) | |||||||||||||||
Short Positions: | ||||||||||||||||||||
3 | 10 Year U.S. Treasury Notes | Mar. 2012 | $ | 390,370 | $ | 393,797 | $ | (3,427 | ) | |||||||||||
5 | 10 Year U.S. Treasury Notes | Jun. 2012 | 655,785 | 654,766 | 1,019 | |||||||||||||||
25 | U.S. Long Bonds | Jun. 2012 | 3,558,125 | 3,541,406 | 16,719 | |||||||||||||||
|
| |||||||||||||||||||
$ | 14,311 | |||||||||||||||||||
|
|
(1) | Cash of $99,300 has been segregated to cover requirement for open futures contracts as of February 29, 2012. |
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—quoted prices generally for securities actively traded on a regulated securities exchange and for open-end mutual funds which trade at daily net asset value.
Level 2—other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, foreign currency exchange rates, and amortized cost) generally for debt securities, swaps, forward foreign currency contracts and for foreign stocks priced using vendor modeling tools.
Level 3—significant unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
Prudential California Muni Income Fund | 15 |
Portfolio of Investments
as of February 29, 2012 (Unaudited) continued
The following is a summary of the inputs used as of February 29, 2012 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Municipal Bonds | $ | — | $ | 209,464,877 | $ | — | ||||||
Other Financial Instruments* | ||||||||||||
Futures Contracts | 14,311 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 14,311 | $ | 209,464,877 | $ | — | ||||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are recorded at the unrealized appreciation/depreciation on the instrument. |
The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of February 29, 2012 were as follows:
Special Tax/Assessment District | 20.7 | % | ||
General Obligation | 18.7 | |||
Healthcare | 14.2 | |||
Pre-Refunded | 10.5 | |||
Transportation | 7.5 | |||
Water & Sewer | 6.4 | |||
Education | 5.4 | |||
Lease Backed Certificates of Participation | 4.3 | |||
Power | 2.9 | |||
Tobacco | 2.4 | |||
Tobacco Appropriated | 1.9 | % | ||
Corporate Backed IDB & PCR | 1.2 | |||
Short-Term Investments | 1.2 | |||
Other Muni | 1.0 | |||
Solid Waste/Resource Recovery | 0.3 | |||
Housing | 0.0 | * | ||
|
| |||
98.6 | ||||
Other assets in excess of liabilities | 1.4 | |||
|
| |||
Net Assets | 100.0 | % | ||
|
|
Industry classification is subject to change.
* | Less than 0.05% |
The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with derivative instruments is interest rate risk.
The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
See Notes to Financial Statements.
16 | Visit our website at www.prudentialfunds.com |
Fair values of derivative instruments as of February 29, 2012 as presented in the Statement of Assets and Liabilities:
Derivatives not designated | Asset Derivatives | Liability Derivatives | ||||||||||
Balance | Fair Value | Balance | Fair Value | |||||||||
Interest rate contracts | Due from broker— variation margin | $ | 17,738 | * | Due from broker— variation margin | $ | 3,427 | * |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in Portfolio of Investments. 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 February 29, 2012 are as follows:
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | ||||
Derivatives not designated as hedging instruments, carried at fair value | Futures | |||
Interest rate contracts | $ | (98,740 | ) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||
Derivatives not designated as hedging instruments, carried at fair value | Futures | |||
Interest rate contracts | $ | (5,750 | ) |
For the six months ended February 29, 2012, the Fund’s average value at trade date for futures short positions was $4,489,777.
See Notes to Financial Statements.
Prudential California Muni Income Fund | 17 |
Statement of Assets and Liabilities
as of February 29, 2012 (Unaudited)
Assets | ||||
Unaffiliated investments (cost $190,260,470) | $ | 209,464,877 | ||
Cash | 62,929 | |||
Deposit with broker | 99,300 | |||
Interest receivable | 2,363,399 | |||
Receivable for investments sold | 2,294,080 | |||
Receivable for Fund shares sold | 1,155,592 | |||
Due from broker—variation margin | 21,445 | |||
Prepaid expenses | 1,729 | |||
|
| |||
Total assets | 215,463,351 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 1,500,625 | |||
Dividends payable | 663,109 | |||
Payable for Fund shares reacquired | 514,446 | |||
Accrued expenses | 90,594 | |||
Management fee payable | 84,083 | |||
Distribution fee payable | 50,558 | |||
Deferred trustees’ fees | 14,886 | |||
Affiliated transfer agent fee payable | 3,424 | |||
|
| |||
Total liabilities | 2,921,725 | |||
|
| |||
Net Assets | $ | 212,541,626 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 195,211 | ||
Paid-in capital in excess of par | 193,766,263 | |||
|
| |||
193,961,474 | ||||
Undistributed net investment income | 243,175 | |||
Accumulated net realized loss on investment and financial futures transactions | (881,741 | ) | ||
Net unrealized appreciation on investments and financial futures | 19,218,718 | |||
|
| |||
Net assets, February 29, 2012 | $ | 212,541,626 | ||
|
|
See Notes to Financial Statements.
18 | Visit our website at www.prudentialfunds.com |
Class A | ||||
Net asset value and redemption price per share | $ | 10.89 | ||
Maximum sales charge (4.00% of offering price) | 0.45 | |||
|
| |||
Maximum offering price to public | $ | 11.34 | ||
|
| |||
Class B | ||||
Net asset value, offering price and redemption price per share | $ | 10.89 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share | $ | 10.89 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share | $ | 10.89 | ||
|
|
See Notes to Financial Statements.
Prudential California Muni Income Fund | 19 |
Statement of Operations
Six Months Ended February 29, 2012 (Unaudited)
Net Investment Income | ||||
Income | ||||
Unaffiliated interest income | $ | 5,295,253 | ||
|
| |||
Expenses | ||||
Management fee | 512,342 | |||
Distribution fee—Class A | 193,437 | |||
Distribution fee—Class B | 16,233 | |||
Distribution fee—Class C | 93,480 | |||
Transfer agent’s fees and expenses (including affiliated expense of $9,000) (Note 3) | 43,000 | |||
Custodian’s fees and expenses | 41,000 | |||
Registration fees | 31,000 | |||
Audit fee | 16,000 | |||
Reports to shareholders | 16,000 | |||
Legal fees and expenses | 14,000 | |||
Trustees’ fees | 8,000 | |||
Insurance | 2,000 | |||
Miscellaneous | 9,954 | |||
|
| |||
Total expenses | 996,446 | |||
Less: Custodian fee credit (Note 1) | (50 | ) | ||
|
| |||
Net expenses | 996,396 | |||
|
| |||
Net investment income | 4,298,857 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized loss on: | ||||
Investment transactions | (66,824 | ) | ||
Financial futures transactions | (98,740 | ) | ||
|
| |||
(165,564 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 10,309,647 | |||
Financial futures contracts | (5,750 | ) | ||
|
| |||
10,303,897 | ||||
|
| |||
Net gain on investments | 10,138,333 | |||
|
| |||
Net Increase In Net Assets Resulting From Operations | $ | 14,437,190 | ||
|
|
See Notes to Financial Statements.
20 | Visit our website at www.prudentialfunds.com |
Statement of Changes in Net Assets
(Unaudited)
Six Months Ended February 29, 2012 | Year Ended August 31, 2011 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 4,298,857 | $ | 9,118,415 | ||||
Net realized loss on investment and financial futures transactions | (165,564 | ) | (411,177 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments and financial futures | 10,303,897 | (7,285,661 | ) | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 14,437,190 | 1,421,577 | ||||||
|
|
|
| |||||
Dividends from net investment income (Note 1) | ||||||||
Class A | (3,345,839 | ) | (7,329,531 | ) | ||||
Class B | (132,345 | ) | (289,181 | ) | ||||
Class C | (334,103 | ) | (696,200 | ) | ||||
Class Z | (571,731 | ) | (935,711 | ) | ||||
|
|
|
| |||||
(4,384,018 | ) | (9,250,623 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) (Note 6) |
| |||||||
Net proceeds from shares sold | 13,060,616 | 26,699,074 | ||||||
Net asset value of shares issued in reinvestment of dividends | 3,238,457 | 7,242,038 | ||||||
Cost of shares reacquired | (15,257,704 | ) | (47,629,930 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 1,041,369 | (13,688,818 | ) | |||||
|
|
|
| |||||
Total increase (decrease) | 11,094,541 | (21,517,864 | ) | |||||
|
|
|
| |||||
Net Assets: | ||||||||
Beginning of period | 201,447,085 | 222,964,949 | ||||||
|
|
|
| |||||
End of period(a) | $ | 212,541,626 | $ | 201,447,085 | ||||
|
|
|
| |||||
(a) Includes undistributed net investment income of: | $ | 243,175 | $ | 328,336 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential California Muni Income Fund | 21 |
Notes to Financial Statements
(Unaudited)
Prudential California Muni Income Fund (the “Fund”), is an open-end management investment company, registered under the Investment Company Act of 1940, as amended, (the “1940 Act”). The Fund was organized as a Massachusetts business trust on May 18, 1984. The Fund commenced investment operations on December 3, 1990. The investment objective of the Fund is to maximize current income that is exempt from California state and federal income taxes, consistent with the preservation of capital.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements.
Securities Valuations: The Fund values municipal securities (including commitments to purchase such securities on a “when-issued” basis) as of the close of trading on the New York Stock Exchange, on the basis of prices provided by a pricing service which uses information with respect to transactions in comparable securities and various relationships between securities in determining values. Certain fixed income securities for which daily market quotations are not readily available may be valued with reference to fixed income securities whose prices are more readily available, pursuant to guidelines established by Board of Trustees. Prices may be obtained from independent pricing services which use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities for which reliable market quotations are not readily available, or for which the pricing service does not provide a valuation methodology, or does not present fair value, are valued at fair value in accordance with Board of Trustees’ approved fair valuation procedures. Futures contracts and options thereon traded on an exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable exchange or board of trade on such day, at the mean between the most recently quoted prices on such exchange or board of trade or at the last bid price in the absence of an asked price. 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 issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any
22 | Visit our website at www.prudentialfunds.com |
available analyst media or other reports or information deemed reliable by the investment adviser 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 mutual funds to calculate their net asset values.
Short-term debt securities of sufficient credit quality, which mature in sixty days or less are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term debt securities, which mature in more than sixty days, are valued at fair value.
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 or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statement of Operations as net realized gain or loss on financial futures contracts.
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. Financial future contracts involve elements of risk in excess of the amounts reflected on the Statement of Assets and Liabilities.
With exchange-traded futures, there is a 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.
Floating-Rate Notes Issued in Conjunction with Securities Held: The Fund may invest in inverse floating rate securities (“inverse floaters”) that pay interest at a rate that varies inversely with short-term interest rates. Certain securities may be leveraged,
Prudential California Muni Income Fund | 23 |
Notes to Financial Statements
(Unaudited) continued
whereby the interest rate varies inversely at a multiple of the change in short-term rates. As interest rates rise, inverse floaters produce less current income. The price of such securities is more volatile than comparable fixed rate securities.
When the Fund enters into agreements to create inverse floaters and floater note securities (also known as Tender Option Bond Transactions), the Fund transfers a fixed rate bond to a broker for cash. At the same time the Fund buys (receives) a residual interest in a trust (the “trust”) set up by the broker, often referred to as an inverse floating rate obligation (inverse floaters). Generally, the broker deposits a fixed rate bond (the “fixed rate bond”) into the trust with the same CUSIP number as the fixed rate bond sold to the broker by the Fund. The “trust” also issues floating rate notes (“floating rate notes”), which are sold to third parties. The floating rate notes have interest rates that reset weekly. The inverse floater held by the Fund gives the Fund the right (1) to cause the holders of the floating rate notes to tender their notes at par, and (2) to have the broker transfer the fixed rate bond held by the trust to the Fund thereby collapsing the trust. The Fund accounts for the transaction described above as funded leverage by including the fixed rate bond in its Portfolio of Investments, and accounts for the floating rate notes as a liability under the caption “payable for floating rate notes issued” in the Fund’s “Statement of Assets and Liabilities.” Interest expense related to the Fund’s liability in connection with the floating rate notes held by third parties is recorded as incurred. The interest expense is under the caption “interest expenses related to inverse floaters” in the Fund’s “Statement of Operations” and is also included in the Fund’s expense ratio. For the six months ended February 29, 2012, the Fund did not enter into any Tender Option Bond Transactions.
The Fund may also invest in inverse floaters without transferring a fixed rate bond into a trust, which is not accounted for as funded leverage. The interest rates on these securities have an inverse relationship to the interest rate of other securities or the value of an index. Changes in interest rates on the other security or index inversely affect the rate paid on the inverse floater, and the inverse floater’s price will be more volatile than that of a fixed-rate bond. Additionally, some of these securities contain a “leverage factor” whereby the interest rate moves inversely by a “factor” to the benchmark rate. Certain interest rate movements and other market factors can substantially affect the liquidity of inverse floating rate notes. The Fund’s investment policies and restrictions permit investments in inverse floating rate securities. Inverse floaters held by the Fund are securities exempt from registration under Rule 144A of the Securities Act of 1933.
24 | Visit our website at www.prudentialfunds.com |
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses on sales of securities are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis as an adjustment to interest income. Expenses are recorded on the accrual basis, which may require the use of certain estimates by management.
Net investment income or loss (other than distribution fees which are charged directly to the respective Class) and unrealized and realized gains or losses, are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund declares daily dividends from net investment income and pays monthly. Distributions of net capital gains, if any, are made at least annually.
Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulation and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in-capital in excess of par, as appropriate.
Custody Fee Credits: The Fund has an arrangement with its custodian bank, whereby uninvested monies earn credits which reduce the fees charged by the custodian. Such custody fee credits, if any, are presented as a reduction of gross expenses in the accompanying Statement of Operations.
Taxes: For federal income tax purposes, the Fund is treated as a separate tax paying entity. 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 income and capital gains, if any, to shareholders. Therefore, no federal income tax provision is required.
Estimates: The preparation of the 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.
Note 2. Agreements
The Fund has a management agreement with Prudential Investments LLC (“PI”). Pursuant to this agreement, PI has responsibility for all investment advisory services
Prudential California Muni Income Fund | 25 |
Notes to Financial Statements
(Unaudited) continued
and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM furnishes investment advisory services in connection with the management of the Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to PI is accrued daily and payable monthly, at an annual rate of .50% of the Fund’s average daily net assets up to and including $1 billion and .45% of the Fund’s average daily net assets in excess of $1 billion. The effective management fee rate was .50% of the Fund’s average daily net assets for the six months ended February 29, 2012.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Class A, B and C Plans”), regardless of expenses actually incurred by PIMS. The distribution fees for Class A, Class B and Class C shares are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.
Pursuant to the Class A, Class B and Class C Plans, the Fund compensates PIMS for distribution-related activities at an annual rate of up to .30%, .50% and 1% of the average daily net assets of the Class A, B and C shares, respectively. For the six months ended February 29, 2012, PIMS has contractually agreed to limit such fees to .25% of the Class A shares.
PIMS has advised the Fund that it received $42,157 in front-end sales charges resulting from sales of Class A shares, during the six months ended February 29, 2012. From these fees, PIMS paid a substantial part of such sales charges to affiliated broker-dealers which in turn paid commissions to sales persons and incurred other distribution costs.
PIMS has advised the Fund that, for the six months ended February 29, 2012, it received $3,502 and $709 in contingent deferred sales charges imposed upon redemptions by certain Class B and Class C shareholders, respectively.
26 | Visit our website at www.prudentialfunds.com |
PI, PIMS and PIM are indirect wholly owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
Note 4. Portfolio Securities
Purchases and sales of portfolio securities of the Fund excluding short-term investments, for the six months ended February 29, 2012 were $20,874,470 and $22,800,658, respectively.
Note 5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of February 29, 2012 were as follows:
Tax Basis | Appreciation | Depreciation | Net Unrealized Appreciation | |||
$189,394,645 | $21,727,938 | $(1,657,706) | $20,070,232 |
The difference between book basis and tax basis is primarily attributable to the difference in the treatment of accreting market discount for book and tax purposes.
For federal income tax purposes, the Fund had a capital loss carryforward as of August 31, 2011 of approximately $926,000 which expires in 2019. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such carryforward. Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carryforward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) for an unlimited period. However, any post-enactment losses are required to be utilized before the utilization of losses incurred prior to the effective date of the Act. As a result of this ordering rule, capital loss carryforwards related to the taxable years beginning prior to the effective date of the Act may have
Prudential California Muni Income Fund | 27 |
Notes to Financial Statements
(Unaudited) continued
an increased likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
The Fund has elected to treat post-October capital losses of approximately $621,000 as having been incurred in the following year (August 31, 2012).
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are subject to a maximum front-end sales charge of 4%. All investors who purchase Class A shares in an amount of $1 million or more are not subject to an initial sales charge but are subject to a contingent deferred sales charge (CDSC) of 1%, if they sell these shares within 12 months of purchase, including investors who purchase their shares through broker-dealers affiliated with Prudential. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class C shares sold within 12 months of purchase are subject to a CDSC of 1%. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. In addition, under certain limited circumstances, an exchange may be made from Class A to Class Z or from Class Z to Class A shares of the Fund. A special exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
During the fiscal year ended August 31, 2010, the Fund received $4,464 related to a former affiliate’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares. The per share effect of this amount is disclosed in the financial highlights. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.
28 | Visit our website at www.prudentialfunds.com |
The Fund is permitted to issue an unlimited number of full and fractional shares in separate series, currently designated as the Prudential California Muni Income Fund. The Prudential California Muni Income Fund is authorized to issue an unlimited number of shares, divided into four classes, designated Class A, Class B, Class C and Class Z.
Transactions in shares of beneficial interest were as follows:
Class A | Shares | Amount | ||||||
Six months ended February 29, 2012: | ||||||||
Shares sold | 321,354 | $ | 3,396,620 | |||||
Shares issued in reinvestment of dividends | 247,154 | 2,623,091 | ||||||
Shares reacquired | (821,232 | ) | (8,668,294 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (252,724 | ) | (2,648,583 | ) | ||||
Shares issued upon conversion from Class B and Class Z | 46,827 | 490,072 | ||||||
Shares reacquired upon conversion into Class Z | (6,743 | ) | (70,294 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (212,640 | ) | $ | (2,228,805 | ) | |||
|
|
|
| |||||
Year ended August 31, 2011: | ||||||||
Shares sold | 697,644 | $ | 7,254,530 | |||||
Shares issued in reinvestment of dividends | 583,846 | 5,943,584 | ||||||
Shares reacquired | (2,876,157 | ) | (28,983,788 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (1,594,667 | ) | (15,785,674 | ) | ||||
Shares issued upon conversion from Class B | 96,491 | 989,385 | ||||||
Shares reacquired upon conversion into Class Z | (199,321 | ) | (2,026,801 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,697,497 | ) | $ | (16,823,090 | ) | |||
|
|
|
| |||||
Class B | ||||||||
Six months ended February 29, 2012: | ||||||||
Shares sold | 53,344 | $ | 563,943 | |||||
Shares issued in reinvestment of dividends | 8,408 | 89,227 | ||||||
Shares reacquired | (45,012 | ) | (478,277 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 16,740 | 174,893 | ||||||
Shares reacquired upon conversion into Class A | (46,761 | ) | (489,569 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (30,021 | ) | $ | (314,676 | ) | |||
|
|
|
| |||||
Year ended August 31, 2011: | ||||||||
Shares sold | 144,071 | $ | 1,467,786 | |||||
Shares issued in reinvestment of dividends | 21,311 | 216,952 | ||||||
Shares reacquired | (119,490 | ) | (1,200,057 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 45,892 | 484,681 | ||||||
Shares reacquired upon conversion into Class A | (96,437 | ) | (989,385 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (50,545 | ) | $ | (504,704 | ) | |||
|
|
|
|
Prudential California Muni Income Fund | 29 |
Notes to Financial Statements
(Unaudited) continued
Class C | Shares | Amount | ||||||
Six months ended February 29, 2012: | ||||||||
Shares sold | 308,246 | $ | 3,278,645 | |||||
Shares issued in reinvestment of dividends | 21,704 | 230,536 | ||||||
Shares reacquired | (96,943 | ) | (1,029,194 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 233,007 | $ | 2,479,987 | |||||
|
|
|
| |||||
Year ended August 31, 2011: | ||||||||
Shares sold | 340,224 | $ | 3,495,560 | |||||
Shares issued in reinvestment of dividends | 49,842 | 507,823 | ||||||
Shares reacquired | (559,213 | ) | (5,638,946 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (169,147 | ) | $ | (1,635,563 | ) | |||
|
|
|
| |||||
Class Z | ||||||||
Six months ended February 29, 2012: | ||||||||
Shares sold | 547,616 | $ | 5,821,408 | |||||
Shares issued in reinvestment of dividends | 27,820 | 295,603 | ||||||
Shares reacquired | (476,072 | ) | (5,081,939 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 99,364 | 1,035,072 | ||||||
Shares issued upon conversion from Class A | 6,743 | 70,294 | ||||||
Shares reacquired upon conversion into Class A | (48 | ) | (503 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 106,059 | $ | 1,104,863 | |||||
|
|
|
| |||||
Year ended August 31, 2011: | ||||||||
Shares sold | 1,430,270 | $ | 14,481,198 | |||||
Shares issued in reinvestment of dividends | 56,210 | 573,679 | ||||||
Shares reacquired | (1,172,220 | ) | (11,807,139 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 314,260 | 3,247,738 | ||||||
Shares issued upon conversion from Class A | 199,135 | 2,026,801 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 513,395 | $ | 5,274,539 | |||||
|
|
|
|
Note 7. Borrowings
The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a syndicated credit agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period December 16, 2011 through December 14, 2012. The Funds pay an annualized commitment fee of 0.08% of the unused portion of the SCA. Prior to December 16, 2011, the Funds had another Syndicated Credit Agreement of a $750 million commitment with an annualized commitment fee of 0.10% of the unused
30 | Visit our website at www.prudentialfunds.com |
portion. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.
The Fund did not utilize the SCA during the six months ended February 29, 2012.
Note 8. New Accounting Pronouncements
In April 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. The objective of ASU No. 2011-03 is to improve the accounting for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. Under previous guidance, whether or not to account for a transaction as a sale was based on, in part, if the entity maintained effective control over the transferred financial assets. ASU No. 2011-03 removes the transferor’s ability criterion from the effective control assessment. This guidance is effective prospectively for interim and annual reporting periods beginning on or after December 15, 2011. At this time, management is evaluating the implications of ASU No. 2011-03 and its impact on the financial statements has not been determined.
In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU No. 2011-04 will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU No. 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU No. 2011-04 and its impact on the financial statements has not been determined.
Prudential California Muni Income Fund | 31 |
Financial Highlights
(Unaudited)
Class A Shares | ||||||||||||||||||||||||||
Six Months Ended February 29, | Year Ended August 31, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $10.37 | $10.70 | $10.14 | $10.37 | $10.55 | $10.94 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .22 | .46 | .48 | .47 | .45 | .47 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and financial futures | .53 | (.32 | ) | .60 | (.20 | ) | (.10 | ) | (.30 | ) | ||||||||||||||||
Total from investment operations | .75 | .14 | 1.08 | .27 | .35 | .17 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (.23 | ) | (.47 | ) | (.47 | ) | (.46 | ) | (.47 | ) | (.46 | ) | ||||||||||||||
Distributions from net realized gains | - | - | (.05 | ) | (.04 | ) | (.06 | ) | (.10 | ) | ||||||||||||||||
Total dividends and distributions | (.23 | ) | (.47 | ) | (.52 | ) | (.50 | ) | (.53 | ) | (.56 | ) | ||||||||||||||
Capital Contributions | - | - | - | (e) | - | - | - | |||||||||||||||||||
Net asset value, end of period | $10.89 | $10.37 | $10.70 | $10.14 | $10.37 | $10.55 | ||||||||||||||||||||
Total Return(a): | 7.28% | 1.48% | 10.96% | 2.94% | 3.31% | 1.55% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $158,630 | $153,302 | $176,414 | $171,357 | $190,613 | $195,617 | ||||||||||||||||||||
Average net assets (000) | $155,600 | $158,860 | $173,193 | $170,257 | $192,969 | $183,767 | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees(b) | .93% | (f) | .92% | .90% | .89% | .87% | (c) | .92% | (c) | |||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | .68% | (f) | .67% | .65% | .64% | .62% | (c) | .67% | (c) | |||||||||||||||||
Net investment income | 4.24% | (f) | 4.55% | 4.60% | 4.82% | 4.23% | 4.40% | |||||||||||||||||||
For Class A, B, C, and Z shares: | ||||||||||||||||||||||||||
Portfolio turnover rate | 10% | (d)(g) | 11% | (d) | 19% | (d) | 30% | (d) | 41% | 43% |
(a) 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. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(b) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets of the Class A shares.
(c) The expense ratio reflects the interest and fees expenses related to the liability for the floating rate notes issued in conjunction with the inverse floater securities. The total expense ratio excluding interest expense and fees is .87% and .89% and the expense ratio excluding 12b-1 and interest expense and fees is .62% and .64% for the years ended August 31, 2008 and 2007, respectively.
(d) The portfolio turnover rate including variable rate demand notes was 20%, 27%, 38% and 53% for the six months ended February 29, 2012 and for the years ended August 31, 2011, 2010 and 2009, respectively.
(e) Less than $.005 per share.
(f) Annualized.
(g) Not Annualized.
See Notes to Financial Statements.
32 | Visit our website at www.prudentialfunds.com |
Class B Shares | ||||||||||||||||||||||||||
Six Months Ended February 29, | Year Ended August 31, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $10.37 | $10.70 | $10.14 | $10.37 | $10.55 | $10.94 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .21 | .44 | .45 | .45 | .42 | .45 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and financial futures | .52 | (.33 | ) | .60 | (.20 | ) | (.10 | ) | (.30 | ) | ||||||||||||||||
Total from investment operations | .73 | .11 | 1.05 | .25 | .32 | .15 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (.21 | ) | (.44 | ) | (.44 | ) | (.44 | ) | (.44 | ) | (.44 | ) | ||||||||||||||
Distributions from net realized gains | - | - | (.05 | ) | (.04 | ) | (.06 | ) | (.10 | ) | ||||||||||||||||
Total dividends and distributions | (.21 | ) | (.44 | ) | (.49 | ) | (.48 | ) | (.50 | ) | (.54 | ) | ||||||||||||||
Capital Contributions | - | - | - | (c) | - | - | - | |||||||||||||||||||
Net asset value, end of period | $10.89 | $10.37 | $10.70 | $10.14 | $10.37 | $10.55 | ||||||||||||||||||||
Total Return(a): | 7.15% | 1.24% | 10.68% | 2.69% | 3.06% | 1.29% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $6,694 | $6,688 | $7,444 | $8,861 | $13,283 | $19,291 | ||||||||||||||||||||
Average net assets (000) | $6,529 | $6,627 | $7,692 | $9,922 | $15,408 | $20,405 | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees | 1.18% | (d) | 1.17% | 1.15% | 1.14% | 1.12% | (b) | 1.17% | (b) | |||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | .68% | (d) | .67% | .65% | .64% | .62% | (b) | .67% | (b) | |||||||||||||||||
Net investment income | 3.99% | (d) | 4.30% | 4.35% | 4.57% | 3.98% | 4.13% |
(a) 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. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(b) The expense ratio reflects the interest and fees expenses related to the liability for the floating rate notes issued in conjunction with the inverse floater securities. The total expense ratio excluding interest expense and fees is 1.12% and 1.14% and the expense ratio excluding 12b-1 and interest expense and fees is .62% and .64% for the years ended August 31, 2008 and 2007, respectively.
(c) Less than $.005 per share.
(d) Annualized.
See Notes to Financial Statements.
Prudential California Muni Income Fund | 33 |
Financial Highlights
(Unaudited) continued
Class C Shares | ||||||||||||||||||||||||||
Six Months Ended February 29, | Year Ended August 31, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $10.37 | $10.70 | $10.14 | $10.37 | $10.55 | $10.94 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .18 | .40 | .43 | .42 | .40 | .42 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and financial futures | .53 | (.33 | ) | .60 | (.20 | ) | (.10 | ) | (.30 | ) | ||||||||||||||||
Total from investment operations | .71 | .07 | 1.03 | .22 | .30 | .12 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (.19 | ) | (.40 | ) | (.42 | ) | (.41 | ) | (.42 | ) | (.41 | ) | ||||||||||||||
Distributions from net realized gains | - | - | (.05 | ) | (.04 | ) | (.06 | ) | (.10 | ) | ||||||||||||||||
Total dividends and distributions | (.19 | ) | (.40 | ) | (.47 | ) | (.45 | ) | (.48 | ) | (.51 | ) | ||||||||||||||
Capital Contributions | - | - | - | (d) | - | - | - | |||||||||||||||||||
Net asset value, end of period | $10.89 | $10.37 | $10.70 | $10.14 | $10.37 | $10.55 | ||||||||||||||||||||
Total Return(a): | 6.89% | .81% | 10.42% | 2.45% | 2.82% | 1.04% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $20,936 | $17,526 | $19,902 | $14,804 | $12,094 | $8,488 | ||||||||||||||||||||
Average net assets (000) | $18,799 | $17,612 | $16,699 | $13,172 | $9,567 | $8,497 | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees(b) | 1.68% | (e) | 1.58% | 1.40% | 1.39% | 1.37% | (c) | 1.42% | (c) | |||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | .68% | (e) | .67% | .65% | .64% | .62% | (c) | .67% | (c) | |||||||||||||||||
Net investment income | 3.49% | (e) | 3.88% | 4.10% | 4.32% | 3.74% | 3.90% |
(a) 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. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(b) The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .75% of the average daily net assets of the Class C shares through December 31, 2010.
(c) The expense ratio reflects the interest and fees expenses related to the liability for the floating rate notes issued in conjunction with the inverse floater securities. The total expense ratio excluding interest expense and fees is 1.37% and 1.39% and the expense ratio excluding 12b-1 and interest expense and fees is .62% and .64% for the years ended August 31, 2008 and 2007, respectively.
(d) Less than $.005 per share.
(e) Annualized.
See Notes to Financial Statements.
34 | Visit our website at www.prudentialfunds.com |
Class Z Shares | ||||||||||||||||||||||||||
Six Months Ended February 29, | Year Ended August 31, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $10.38 | $10.71 | $10.14 | $10.37 | $10.56 | $10.95 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .24 | .49 | .50 | .50 | .48 | .50 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and financial futures | .51 | (.32 | ) | .62 | (.20 | ) | (.11 | ) | (.30 | ) | ||||||||||||||||
Total from investment operations | .75 | .17 | 1.12 | .30 | .37 | .20 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (.24 | ) | (.50 | ) | (.50 | ) | (.49 | ) | (.50 | ) | (.49 | ) | ||||||||||||||
Distributions from net realized gains | - | - | (.05 | ) | (.04 | ) | (.06 | ) | (.10 | ) | ||||||||||||||||
Total dividends and distributions | (.24 | ) | (.50 | ) | (.55 | ) | (.53 | ) | (.56 | ) | (.59 | ) | ||||||||||||||
Capital Contributions | - | - | - | (c) | - | - | - | |||||||||||||||||||
Net asset value, end of period | $10.89 | $10.38 | $10.71 | $10.14 | $10.37 | $10.56 | ||||||||||||||||||||
Total Return(a): | 7.32% | 1.74% | 11.37% | 3.21% | 3.49% | 1.80% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $26,281 | $23,932 | $19,205 | $9,757 | $9,312 | $5,636 | ||||||||||||||||||||
Average net assets (000) | $25,135 | $19,328 | $14,668 | $8,616 | $6,821 | $5,566 | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees | .68% | (d) | .67% | .65% | .64% | .62% | (b) | .67% | (b) | |||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | .68% | (d) | .67% | .65% | .64% | .62% | (b) | .67% | (b) | |||||||||||||||||
Net investment income | 4.49% | (d) | 4.79% | 4.84% | 5.07% | 4.50% | 4.64% |
(a) 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. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(b) The expense ratio reflects the interest and fees expenses related to the liability for the floating rate notes issued in conjunction with the inverse floater securities. The total expense ratio excluding interest expense and fees is .62% and .64% and the expense ratio excluding 12b-1 and interest expense and fees is .62% and .64% for the years ended August 31, 2008 and 2007, respectively.
(c) Less than $.005 per share.
(d) Annualized.
See Notes to Financial Statements.
Prudential California Muni Income Fund | 35 |
n MAIL | n TELEPHONE | n WEBSITE | ||
Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | (800) 225-1852 | www.prudentialfunds.com |
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission website at www.sec.gov. |
TRUSTEES |
Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Michael S. Hyland • Douglas H. McCorkindale • Stephen P. Munn • Stuart S. Parker • Richard A. Redeker • Robin B. Smith • Stephen G. Stoneburn |
OFFICERS |
Stuart S. Parker, President • Judy A. Rice, Vice President • Scott E. Benjamin, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Kathryn L. Quirk, Chief Legal Officer • Deborah A. Docs, Secretary • Timothy J. Knierim, Chief Compliance Officer • Valerie M. Simpson, Deputy Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • John P. Schwartz, Assistant Secretary • Andrew R. French, Assistant Secretary • M. Sadiq Peshimam, Assistant Treasurer • Peter Parrella, Assistant Treasurer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
| ||||
INVESTMENT SUBADVISER | Prudential Investment Management, Inc. | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 100 Mulberry Street | ||
| ||||
CUSTODIAN | The Bank of New York Mellon | One Wall Street New York, NY 10286 | ||
| ||||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
| ||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
| ||||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus, by visiting our website at www.prudentialfunds.com 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 www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Prudential California Muni Income Fund, Prudential Investments, Attn: Board of Trustees, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling (202) 551-8090. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month. |
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 |
PRUDENTIAL CALIFORNIA MUNI INCOME FUND
SHARE CLASS | A | B | C | Z | ||||
NASDAQ | PBCAX | PCAIX | PCICX | PCIZX | ||||
CUSIP | 74440X100 | 74440X209 | 74440X308 | 74440X407 |
MF146E2 0222973-00001-00
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 – Not applicable.
Item 11 – Controls and Procedures
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – Exhibits
(a) (1) | Code of Ethics – Not required, as this is not an annual filing. |
(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. |
(3) | Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. |
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | Prudential Investment Portfolios 6 | |
By: | /s/ Deborah A. Docs | |
Deborah A. Docs | ||
Secretary | ||
Date: | April 23, 2012 |
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: | April 23, 2012 | |
By: | /s/ Grace C. Torres | |
Grace C. Torres | ||
Treasurer and Principal Financial Officer | ||
Date: | April 23, 2012 |