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: | 655 Broad Street, 17th Floor | |
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Deborah A. Docs | |
655 Broad Street, 17th Floor | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 8/31/2018 | |
Date of reporting period: | 2/28/2018 |
Item 1 – Reports to Stockholders
PRUDENTIAL CALIFORNIA MUNI INCOME FUND
SEMIANNUAL REPORT
FEBRUARY 28, 2018
To enroll in e-delivery, go to pgiminvestments.com/edelivery
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 information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of February 28, 2018 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2018 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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PRUDENTIAL FUNDS — UPDATE
The Board of Directors/Trustees for the Fund has approved renaming the Fund’s Class Q shares as Class R6 shares, effective on June 11, 2018. The renaming of Class Q shares as Class R6 shares will not result in any changes to pricing, eligibility, or shareholder rights and obligations. The renamed Class R6 shares will not be exchangeable with Class R6 shares of the Prudential Day One Funds or the Prudential 60/40 Allocation Fund.
- Not part of the Semiannual Report -
Prudential California Muni Income Fund | 3 |
PRUDENTIAL FUNDS — UPDATE
Effective on or about June 1, 2018 (the “Effective Date”), each Fund’s Class A, Class C, Class R and Class Z shares, as applicable, will be closed to investments by new group retirement plans, except as discussed below. Existing group retirement plans as of the Effective Date may keep their investments in their current share class and may continue to make additional purchases or exchanges of that class of shares. As of the Effective Date, all new group retirement plans wishing to add the Funds as new additions to the plan generally will be into one of the available Class Q shares, Class R2 shares, or Class R4 shares of the Funds.
In addition, on or about the Effective Date, the Class R shares of each Fund will be closed to all new investors, except as discussed below. Due to the closing of the Class R shares to new investors, effective on or about the Effective Date new IRA investors may only purchase Class A, Class C, Class Z or Class Q shares of the Funds, subject to share class eligibility. Following the Effective Date, no new accounts may be established in the Funds’ Class R shares and no Class R shares may be purchased or acquired by any new Class R shareholder, except as discussed below.
Class A | Class C | Class Z | Class R | |||||
Existing Investors (Group Retirement Plans, IRAs, and all other investors) | No Change | No Change | No Change | No Change | ||||
New Group Retirement Plans | Closed to group retirement plans wishing to add the share classes as new additions to plan menus on or about June 1, 2018, subject to certain exceptions below | |||||||
New IRAs | No Change | No Change | No Change | Closed to all new investors on or about June 1, 2018, subject to certain exceptions below | ||||
All Other New Investors | No Change | No Change | No Change |
- Not part of the Semiannual Report -
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However, the following new investors may continue to purchase Class A, Class C, Class R and Class Z shares of a Fund, as applicable:
• | Eligible group retirement plans who are exercising their one-time 90-day repurchase privilege in a Fund will be permitted to purchase such share classes. |
• | Plan participants in a group retirement plan that offers Class A, Class C, Class R or Class Z shares of a Fund as of the Effective Date will be permitted to purchase such share classes of the Fund, even if the plan participant did not own shares of that class of the Fund as of the Effective Date. |
• | Certain new group retirement plans will be permitted to offer such share classes of a Fund after the Effective Date, provided that the plan has or is actively negotiating a contractual agreement with the Fund’s distributor or service provider to offer such share classes of the Fund prior to or on the Effective Date. |
• | New group retirement plans that combine with, replace or are otherwise affiliated with a current plan that invests in such share classes prior to or on the Effective Date will be permitted to purchase such share classes. |
The Funds also reserve the right to refuse any purchase order that might disrupt management of a Fund or to otherwise modify the closure policy at any time on a case-by-case basis.
- Not part of the Semiannual Report -
Prudential California Muni Income Fund | 5 |
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Letter from the President
Dear Shareholder:
We hope you find the semiannual report for the Prudential California Muni Income Fund informative and useful. The report covers performance for the six-month period ended February 28, 2018.
We have important information to share with you. Effective June 11, 2018, Prudential Mutual Funds will be renamed from Prudential to PGIM Funds. Renaming our funds is part of our ongoing effort to further build our reputation and establish our global brand, which began when our firm adopted PGIM Investments as its name in April 2017. Please note that only the Fund’s name is changing. Your Fund’s management and operation, along with the Fund’s symbols, will remain the same.*
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
Prudential California Muni Income Fund
April 16, 2018
*Note: The Prudential Day One Funds will not be changing their names.
Prudential California Muni Income Fund | 7 |
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 2/28/18 (without sales charges) | Average Annual Total Returns as of 2/28/18 (with sales charges) | |||||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | Since Inception | ||||||
Class A | –0.90 | –1.31 | 1.57 | 4.17 | — | |||||
Class B | –1.16 | –2.56 | 1.95 | 4.32 | — | |||||
Class C | –1.28 | 1.02 | 1.64 | 3.90 | — | |||||
Class Q | –0.50** | N/A | N/A | N/A | N/A (10/26/17) | |||||
Class Z | –0.79 | 3.05 | 2.67 | 4.87 | — | |||||
Bloomberg Barclays Municipal Bond Index | –1.24 | 2.50 | 2.57 | 4.66 | — | |||||
Bloomberg Barclays California Municipal Bond Index | –1.11 | 2.62 | 2.88 | 4.98 | — | |||||
Lipper California Municipal Debt Funds Average | –1.00 | 3.04 | 2.90 | 4.78 | — |
*Not annualized
**Since inception
Source: PGIM Investments LLC and Lipper Inc.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges which are described for each share class in the table below.
Class A* | Class B** | Class C* | Class Q*** | Class Z* | ||||||
Maximum initial sales charge | 4.00% of the public offering price | None | None | None | None | |||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 5.00% (Yr. 1) 4.00% (Yr. 2) 3.00% (Yr. 3) 2.00% (Yr. 4) 1.00% (Yr. 5/6) 0.00% (Yr. 7) | 1.00% on sales made within 12 months of purchase | None | None | |||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.25% | 0.50% | 1.00% | None | None |
*Certain share classes will be generally closed to investments by new group retirement plans effective on or about June 1, 2018. Please see the ‘PRUDENTIAL FUNDS-UPDATE” on page 4 of this report for more information.
**Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
***Class Q shares will be renamed as Class R6 shares effective on June 11, 2018. Please see the “PRUDENTIAL FUNDS-UPDATE” on page 3 of this report for more information.
Benchmark Definitions
Bloomberg Barclays Municipal Bond Index—The Bloomberg Barclays Municipal Bond Index is an unmanaged index of long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed.
Bloomberg Barclays California Municipal Bond Index—The Bloomberg Barclays California Municipal Bond Index is an unmanaged index of long-term investment-grade California municipal bonds. It gives a broad look at how long-term investment-grade California municipal bonds have performed.
Lipper California Municipal Debt Funds Average—The Lipper California Municipal Debt Funds Average (Lipper Average) is based on the average return of all funds in the Lipper California Municipal Debt Funds universe for the periods noted. Funds in the Lipper Average limit their assets to those securities that are exempt from taxation in California.
Prudential California Muni Income Fund | 9 |
Your Fund’s Performance (continued)
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.
Credit Quality expressed as a percentage of total investments as of 2/28/18 (%) | ||||
AAA | 9.3 | |||
AA | 46.3 | |||
A | 19.8 | |||
BBB | 12.6 | |||
BB | 2.3 | |||
B | 1.7 | |||
CC | 0.5 | |||
Not Rated | 7.0 | |||
Cash/Cash Equivalents | 0.5 | |||
Total Investments | 100.0 |
Source: PGIM Fixed Income
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investor Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by a NRSRO. Credit ratings are subject to change. Values may not sum to 100.0% due to rounding.
Distributions and Yields as of 2/28/18 | ||||||||||||||
Total Distributions Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | Taxable Equivalent 30-Day Subsidized Yield*** at Federal Tax Rates of | SEC 30-Day Unsubsidized Yield** (%) | Taxable Equivalent 30-Day Unsubsidized Yield*** at Federal Tax Rates of | ||||||||||
37.0% | 40.8% | 37.0% | 40.8% | |||||||||||
Class A | 0.18 | 1.95 | 3.57 | 3.80 | 1.95 | 3.57 | 3.80 | |||||||
Class B | 0.16 | 1.51 | 2.76 | 2.94 | 1.29 | 2.36 | 2.51 | |||||||
Class C | 0.14 | 1.24 | 2.27 | 2.42 | 1.24 | 2.27 | 2.42 | |||||||
Class Q | 0.14 | 2.23 | 4.08 | 4.34 | –138.15 | –252.92 | –269.16 | |||||||
Class Z | 0.20 | 2.24 | 4.10 | 4.36 | 2.24 | 4.10 | 4.36 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements).
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses.
***The taxable equivalent yield is the yield an investor would have to earn on a taxable investment in order to equal the yield provided by a tax-exempt municipal bond. Some investors may be subject to the federal alternative minimum tax (AMT). Taxable equivalent yields reflect federal and applicable state tax rates.
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As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended February 28, 2018. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of Prudential 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
Prudential California Muni Income Fund | 11 |
Fees and Expenses (continued)
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.
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, 2017 | Ending Account Value February 28, 2018 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 991.00 | 0.90 | % | $ | 4.44 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.33 | 0.90 | % | $ | 4.51 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 988.40 | 1.42 | % | $ | 7.00 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.75 | 1.42 | % | $ | 7.10 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 987.20 | 1.69 | % | $ | 8.33 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.41 | 1.69 | % | $ | 8.45 | ||||||||||
Class Q | Actual** | $ | 1,000.00 | $ | 995.00 | 0.70 | % | $ | 2.39 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 992.10 | 0.69 | % | $ | 3.41 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.37 | 0.69 | % | $ | 3.46 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six month period ended February 28, 2018, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2018 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying funds in which the Fund may invest.
**“Actual” expenses are calculated using the 125-day period ended February 28, 2018 due to the class’ inception date of October 26, 2017.
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Schedule of Investments (unaudited)
as of February 28, 2018
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 98.9% |
| |||||||||||||||
MUNICIPAL BONDS |
| |||||||||||||||
Abag Fin. Auth. For Nonprofit Corp. Rev., Episcopal Senior Communities, Rfdg. | 6.125 | % | 07/01/41 | 475 | $ | 524,552 | ||||||||||
Abag Fin. Auth. For Nonprofit Corp. Rev., Sharp Healthcare (Pre-refunded date 08/01/19)(ee) | 6.250 | 08/01/39 | 1,000 | 1,067,070 | ||||||||||||
Abag Fin. Auth. For Nonprofit Corp. Rev., Sharp Healthcare, Ser. A | 5.000 | 08/01/43 | 2,000 | 2,193,220 | ||||||||||||
Alameda Corridor Trans. Auth. Rev., Sub. Lien, Ser. B, Rfdg. | 5.000 | 10/01/34 | 2,070 | 2,317,903 | ||||||||||||
Alameda Corridor Trans. Auth. Rev., Sub. Lien, Ser. B, Rfdg. | 5.000 | 10/01/35 | 500 | 558,700 | ||||||||||||
Anaheim Calif. Pub. Fin. Auth. Rev., Ser. A, Rfdg. | 5.000 | 05/01/39 | 1,000 | 1,127,940 | ||||||||||||
Bay Area Toll Auth. Rev., Ser. F-1 | 5.000 | 04/01/56 | 1,000 | 1,119,930 | ||||||||||||
Bay Area Toll Auth. Rev., Ser. F-1, Rfdg. | 5.000 | 04/01/54 | 1,000 | 1,105,120 | ||||||||||||
California Cnty. Tob. Secur. Agy. Rev., Asset-Bkd. | 5.450 | 06/01/28 | 500 | 507,180 | ||||||||||||
California Cnty. Tob. Secur. Agy. Rev., Tob. Conv. Bonds, LA Cnty. Ser. B (Converted to Fixed on 12/01/10) | 5.250 | 06/01/21 | 1,380 | 1,400,341 | ||||||||||||
California Cnty. Tob. Secur. Agy. Rev., Tob. Conv. Bonds, Ser. B (Converted to Fixed on 12/01/08) | 5.100 | 06/01/28 | 1,035 | 1,035,331 | ||||||||||||
California Edl. Facs. Auth. Rev., Chapman University, Ser. B | 4.000 | 04/01/47 | 2,720 | 2,767,654 | ||||||||||||
California Edl. Facs. Auth. Rev., Loyola Marymount Univ., Ser. A | 5.125 | 10/01/40 | 1,000 | 1,052,050 | ||||||||||||
California Edl. Facs. Auth. Rev., Pepperdine Univ., Rfdg. | 5.000 | 10/01/49 | 2,000 | 2,263,620 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Cedars Sinai Med. Ctr., Rfdg. | 5.000 | 11/15/33 | 1,000 | 1,165,760 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Episcopal Home, Ser. B, Rfdg. (Pre-refunded date 02/01/20)(ee) | 6.000 | 02/01/32 | 1,000 | 1,084,370 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Kaiser Permanente, Sub., Ser. A-1G | 5.000 | 11/01/27 | 1,000 | 1,221,100 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Kaiser Permanente, Sub., Ser. A-2 | 4.000 | 11/01/44 | 2,250 | 2,306,182 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Lucile Salter Packard Children’s Hosp., Ser A | 4.000 | 11/15/47 | 750 | 765,713 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Lucile Salter Packard Children’s Hosp., Ser. A | 5.000 | 08/15/43 | 1,000 | 1,100,700 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Lucile Salter Packard Children’s Hosp., Ser A | 5.000 | 11/15/56 | 1,500 | 1,688,940 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Providence Hlth., Ser. B | 5.500 | 10/01/39 | 1,500 | 1,580,295 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Providence Hlth., Ser. C (Pre-refunded date 10/01/18)(ee) | 6.500 | 10/01/38 | 20 | 20,603 |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 13 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2018
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) |
| |||||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Scripps Hlth., Ser. A | 5.000 | % | 11/15/40 | 1,000 | $ | 1,099,390 | ||||||||||
California Hlth. Facs. Fing. Auth. Rev., Scripps Hlth., Ser. A, Rfdg | 5.000 | 11/15/36 | 1,200 | 1,263,684 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., St. Joseph Hlth. Sys., Ser. A | 5.750 | 07/01/39 | 1,000 | 1,053,440 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Stanford Healthcare, Ser. A | 4.000 | 11/15/40 | 1,050 | 1,088,021 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Stanford Healthcare, Ser. A | 5.000 | 08/15/54 | 1,000 | 1,100,500 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Stanford Hosp., Ser. A-3, Rfdg. (Pre-refunded date 11/15/21)(ee) | 5.500 | 11/15/40 | 500 | 568,665 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Sutter Hlth., Ser A, Rfdg. | 5.000 | 11/15/38 | 1,000 | 1,149,980 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Sutter Hlth., Ser. A, Rfdg. | 5.000 | 08/15/43 | 1,500 | 1,686,210 | ||||||||||||
California Hlth. Facs. Fing. Auth. Rev., Sutter Hlth., Ser. D, Rfdg. | 5.250 | 08/15/31 | 1,000 | 1,111,080 | ||||||||||||
California Muni. Fin. Auth. Ed. Rev., Amern. Heritage Ed., Ser. A, Rfdg. | 4.000 | 06/01/26 | 500 | 530,255 | ||||||||||||
California Muni. Fin. Auth. Ed. Rev., Amern. Heritage Ed., Ser. A, Rfdg. | 5.000 | 06/01/46 | 500 | 537,710 | ||||||||||||
California Muni. Fin. Auth. Rev., Ser. A , 144A | 5.500 | 06/01/48 | 250 | 255,208 | ||||||||||||
California Muni. Fin. Auth. Rev., Var. Chevron USA Rec. Zone, Ser. A, FRDD (Mandatory put date 03/01/18) | 1.000 | (cc) | 11/01/35 | 1,700 | 1,700,000 | |||||||||||
California Poll. Ctrl. Fing. Auth. Wtr. Facs. Rev., Amern. Wtr. Cap. Corp. Proj., 144A | 5.250 | 08/01/40 | 1,250 | 1,337,912 | ||||||||||||
California Poll. Ctrl. Fing. Auth. Wtr. Facs. Rev., Green Bond-Calplant I Proj., AMT, 144A | 7.000 | 07/01/22 | 250 | 251,313 | ||||||||||||
California Poll. Ctrl. Fing. Auth. Wtr. Facs. Rev., Green Bond-Calplant I Proj., AMT, 144A | 8.000 | 07/01/39 | 250 | 249,703 | ||||||||||||
California Pub. Fin. Auth. Rev., Sharp Healthcare, Ser. A | 4.000 | 08/01/47 | 1,000 | 1,019,680 | ||||||||||||
California Sch. Fin. Auth. Chrt. Sch. Rev., Alliance CLG-Ready Pub. Schs., 144A | 5.000 | 07/01/51 | 620 | 661,862 | ||||||||||||
California Sch. Fin. Auth. Rev., Alliance CLG-Ready Pub. Schs., Ser. A, 144A | 4.000 | 07/01/26 | 300 | 319,803 | ||||||||||||
California Sch. Fin. Auth. Rev., Alliance CLG-Ready Pub. Schs., Ser. A, 144A | 5.000 | 07/01/45 | 1,000 | 1,074,770 | ||||||||||||
California Sch. Fin. Auth. Rev., Aspire Pub. Schs., Ser. A, Rfdg., 144A | 5.000 | 08/01/46 | 1,000 | 1,076,200 | ||||||||||||
California Sch. Fin. Auth. Rev., Green Dot Pub. Sch. Proj., Ser. A, 144A | 5.000 | 08/01/45 | 610 | 645,569 | ||||||||||||
California Sch. Fin. Auth. Rev., Kipp. LA. Proj., Ser A, 144A | 5.000 | 07/01/47 | 500 | 548,175 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) |
| |||||||||||||||
California Sch. Fin. Auth. Rev., Summit Pub. Schs., 144A | 5.000 | % | 06/01/47 | 1,000 | $ | 1,075,000 | ||||||||||
California Sch. Fin. Auth. Sch. Facs. Rev., Kipp. LA. Proj., Ser A, 144A | 5.000 | 07/01/45 | 1,000 | 1,080,080 | ||||||||||||
California Sch. Fin. Auth. Sch. Rev., Aspire Pub. Schs., Ser. A, Rfdg., 144A | 5.000 | 08/01/40 | 2,000 | 2,160,440 | ||||||||||||
California St., GO | 4.000 | 11/01/47 | 1,500 | 1,549,785 | ||||||||||||
California St., GO | 5.000 | 03/01/45 | 2,000 | 2,253,460 | ||||||||||||
California St., GO | 5.000 | 08/01/45 | 1,500 | 1,700,190 | ||||||||||||
California St., GO | 5.000 | 08/01/46 | 1,500 | 1,697,745 | ||||||||||||
California St., GO | 5.250 | 11/01/40 | 750 | 813,923 | ||||||||||||
California St., Unrefunded Balance, GO | 5.500 | 04/01/30 | 5 | 5,017 | ||||||||||||
California St., Var. Purp., GO | 5.000 | 10/01/29 | 1,500 | 1,581,195 | ||||||||||||
California St., Var. Purp., GO | 5.000 | 09/01/41 | 5,000 | 5,497,100 | ||||||||||||
California St., Var. Purp., GO | 5.000 | 10/01/41 | 1,250 | 1,376,662 | ||||||||||||
California St., Var. Purp., GO | 5.250 | 04/01/35 | 1,250 | 1,404,750 | ||||||||||||
California St., Var. Purp., GO | 5.500 | 11/01/39 | 1,000 | 1,063,590 | ||||||||||||
California St., Var. Purp., GO | 5.500 | 03/01/40 | 2,000 | 2,145,760 | ||||||||||||
California St., Var. Purp., GO | 6.000 | 03/01/33 | 2,750 | 2,985,785 | ||||||||||||
California St., Var. Purp., GO | 6.000 | 04/01/38 | 3,000 | 3,142,470 | ||||||||||||
California St., Var. Purp., GO | 6.000 | 11/01/39 | 1,500 | 1,607,910 | ||||||||||||
California St. Pub. Wks. Brd. Lease Rev., Judicial Council Projs., Ser. D | 5.000 | 12/01/31 | 1,000 | 1,099,390 | ||||||||||||
California St. Pub. Wks. Brd. Lease Rev., Var. Cap. Proj., Ser. C, Rfdg. | 5.000 | 11/01/34 | 1,300 | 1,497,028 | ||||||||||||
California St. Univ. Rev., Ser. A, Systemwide | 5.000 | 11/01/37 | 1,250 | 1,373,912 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Front Porch Communities & Services, Rfdg. | 4.000 | 04/01/42 | 1,000 | 1,004,520 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., 899 Charleston Proj., Ser. A, Rfdg., 144A | 5.250 | 11/01/44 | 250 | 264,808 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Cottage Hlth. | 5.000 | 11/01/40 | 1,000 | 1,052,640 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Loma Linda Univ. Med. Ctr., Ser. A | 5.250 | 12/01/44 | 1,000 | 1,071,990 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Loma Linda Univ. Med. Ctr., Ser. A, 144A | 5.000 | 12/01/27 | 1,000 | 1,107,350 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Loma Linda Univ. Med. Ctr., Ser. A, 144A | 5.250 | 12/01/56 | 1,000 | 1,066,740 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Polytechnic Sch. | 5.000 | 12/01/34 | 2,000 | 2,110,960 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Presbyterian Homes, 144A | 7.250 | 11/15/41 | 500 | 540,375 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Spl. Tax No. 97-1, CABS | 5.980 | (t) | 09/01/22 | 1,335 | 1,023,892 |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 15 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2018
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) |
| |||||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Sutter Hlth., Ser. A | 6.000 | % | 08/15/42 | 2,000 | $ | 2,183,480 | ||||||||||
Chula Vista Calif. Indl. Dev. Rev., San Diego Gas-D-Rmkt. | 5.875 | 01/01/34 | 1,000 | 1,050,890 | ||||||||||||
Chula Vista Muni. Fing. Auth. Spl. Tax, Rfdg. | 5.000 | 09/01/21 | 500 | 545,115 | ||||||||||||
City of La Verne CA, Brethren Hillcrest Homes, COP, Rfdg. | 5.000 | 05/15/36 | 1,250 | 1,313,875 | ||||||||||||
Coronado Cmnty. Dev. Agy. Tax Alloc., Dev. Proj., AMBAC | 5.000 | 09/01/24 | 2,000 | 2,006,040 | ||||||||||||
Fontana Spl. Tax, Cmnty. Facs. Dist. #22 Sierra Hills, Rfdg. | 5.000 | 09/01/34 | 500 | 544,765 | ||||||||||||
Foothill-De Anza Cmnty. College Dist., Ser. C, GO (Pre-refunded date 08/01/21)(ee) | 5.000 | 08/01/40 | 1,250 | 1,388,875 | ||||||||||||
Foothill-Eastern Trans. Rev., Ser. B-1 | 3.950 | 01/15/53 | 1,000 | 978,080 | ||||||||||||
Golden St. Tob. Secur. Corp. Rev., Asset-Bkd., Ser. A-1, Rfdg. | 5.125 | 06/01/47 | 1,635 | 1,623,571 | ||||||||||||
Golden St. Tob. Secur. Corp. Rev., Ser. A-1, Rfdg. | 5.000 | 06/01/27 | 150 | 173,277 | ||||||||||||
Golden St. Tob. Secur. Corp. Rev., Ser. A-1, Rfdg. | 5.000 | 06/01/28 | 1,215 | 1,395,099 | ||||||||||||
Golden St. Tob. Secur. Corp. Rev., Ser. A-1, Rfdg. | 5.000 | 06/01/29 | 1,250 | 1,427,737 | ||||||||||||
Golden St. Tob. Secur. Corp. Rev., Unrefunded Asset-Bkd., Ser. A-1 | 5.750 | 06/01/47 | 1,240 | 1,249,288 | ||||||||||||
Guam Gov’t. Wtrwrks. Auth. Rev., Ser. A, Rfdg. | 5.000 | 07/01/35 | 500 | 535,110 | ||||||||||||
Guam Intl. Arpt. Auth. Rev., Ser. C, AMT | 6.375 | 10/01/43 | 500 | 568,455 | ||||||||||||
Inland Vly. Dev. Agy., Tax Alloc., Ser. A, Rfdg. | 5.000 | 09/01/44 | 500 | 544,205 | ||||||||||||
Irvine Unified Sch. Dist., Spl. Tax, Ser. B | 5.000 | 09/01/51 | 1,000 | 1,103,310 | ||||||||||||
Jurupa Pub. Fing. Auth., Ser. A, Rfdg. | 5.000 | 09/01/42 | 1,250 | 1,384,912 | ||||||||||||
La Mesa-Spring Vly. Sch. Dist., GO, Election of 2002, Ser. B, CABS, NATL | 2.590 | (t) | 08/01/23 | 2,000 | 1,738,980 | |||||||||||
Lincoln Calif. Pub. Fing. Auth. Spl. Assessment, Twelve Bridges Sub. Dist., Ser. B | 6.000 | 09/02/27 | 1,000 | 1,091,670 | ||||||||||||
Long Beach Bond Fin. Auth. Nat. Gas Pur. Rev., Ser. A | 5.000 | 11/15/35 | 2,510 | 2,970,585 | ||||||||||||
Long Beach Bond Fin. Auth. Nat. Gas Pur. Rev., Ser. A | 5.500 | 11/15/30 | 1,375 | 1,673,952 | ||||||||||||
Long Beach Bond Fin. Auth. Nat. Gas Pur. Rev., Ser. A | 5.500 | 11/15/32 | 440 | 543,308 | ||||||||||||
Long Beach Bond Fin. Auth. Nat. Gas Pur. Rev., Ser. A | 5.500 | 11/15/37 | 1,340 | 1,677,399 | ||||||||||||
Long Beach Hbr. Rev., Ser. A, AMT, NATL, Rfdg. | 6.000 | 05/15/19 | 2,000 | 2,106,580 | ||||||||||||
Los Angelas Calif. Dept. Arpts. Rev., Ser. A, AMT | 5.000 | 05/15/47 | 1,000 | 1,118,770 | ||||||||||||
Los Angeles Calif. Cmnty. College Dist., Election of 2008, Ser. A, GO (Pre-refunded date 08/01/19)(ee) | 6.000 | 08/01/33 | 2,000 | 2,128,620 | ||||||||||||
Los Angeles Calif. Dept. Arpts. Rev., Ser. A | 5.000 | 05/15/34 | 1,000 | 1,040,930 | ||||||||||||
Los Angeles Calif. Dept. Arpts. Rev., Ser. A, AMT | 5.000 | 05/15/38 | 2,500 | 2,740,350 | ||||||||||||
Los Angeles Calif. Dept. Arpts. Rev., Ser. B, AMT | 5.000 | 05/15/46 | 1,000 | 1,108,360 | ||||||||||||
Los Angeles Calif. Dept. Arpts. Rev., Ser. C, Rfdg. | 5.000 | 05/15/38 | 1,000 | 1,125,200 | ||||||||||||
Los Angeles Cnty. Regional Fing. Auth. Rev., Montecedro, Inc. Proj., Ser. A | 5.000 | 11/15/44 | 1,250 | 1,385,450 | ||||||||||||
Los Angeles Dept. of Wtr. & Pwr. Rev., Pwr. Sys., Ser. A | 5.000 | 07/01/39 | 1,000 | 1,028,590 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) |
| |||||||||||||||
Los Angeles Dept. of Wtr. Rev., Wtr. Sys., Ser. A | 5.375 | % | 07/01/38 | 1,530 | $ | 1,579,113 | ||||||||||
Los Angeles Dept. of Wtr. Rev., Wtr. Sys., Ser. B | 5.000 | 07/01/34 | 2,500 | 2,832,700 | ||||||||||||
M-S-R Energy Auth. Calif. Rev., Ser. A | 6.500 | 11/01/39 | 1,000 | 1,388,770 | ||||||||||||
Metro. Wtr. Dist. of Southern Calif. Wtrwks. Rev., Linked, SAVRS, RIBS | 5.750 | 08/10/18 | 700 | 713,468 | ||||||||||||
Metro. Wtr. Dist. of Southern Calif. Wtrwks. Rev., Unrefunded Balance, Ser. A | 5.750 | 07/01/21 | 1,940 | 2,076,052 | ||||||||||||
Northern Calif. Transmission Agy. Rev., Calif.- Oregon Proj., Ser. A, Rfdg. | 5.000 | 05/01/39 | 750 | 850,320 | ||||||||||||
Orange Cnty. Cmnty. Facs. Dist. Spl. Tax, No. 2015-1 Esencia Vlg., Ser. A | 5.250 | 08/15/45 | 1,500 | 1,681,320 | ||||||||||||
Orange Cnty. Cmnty. Facs. Dist. Spl. Tax, No. 2017-1 Esencia Vlg., Ser. A | 5.000 | 08/15/47 | 1,500 | 1,655,415 | ||||||||||||
Orange Cnty. Trans. Auth. Rev., Express Lane Sr. Lien 91, Rfdg. | 5.000 | 08/15/29 | 1,000 | 1,141,470 | ||||||||||||
Palomar Health Rev., Rfdg. | 5.000 | 11/01/39 | 1,500 | 1,623,690 | ||||||||||||
Palomar Pomerado Healthcare Dist. Calif., COP (Pre-refunded date 11/01/20)(ee) | 6.000 | 11/01/41 | 1,200 | 1,337,136 | ||||||||||||
Pittsburg Redev. Agy. Tax Alloc. Rev., Sub., Ser. A, Rfdg., AGM | 5.000 | 09/01/29 | 1,750 | 2,009,385 | ||||||||||||
Pittsburg Success Agy. Redev. Agy. Tax Alloc., Los Medanos Cmnty. Dev. Proj., AMBAC, CABS | 3.360 | (t) | 08/01/26 | 1,375 | 1,038,826 | |||||||||||
Port of Oakland Rev., Ser. O, Rfdg., AMT | 5.125 | 05/01/30 | 1,000 | 1,086,980 | ||||||||||||
Port of Oakland Rev., Sr. Lien., Ser. P, Rfdg., AMT | 5.000 | 05/01/33 | 1,750 | 1,913,957 | ||||||||||||
Poway Uni. Sch. Dist. Pub. Fing. Auth., Spl. Tax Ser. A, Rfdg. | 5.000 | 09/01/35 | 1,000 | 1,091,270 | ||||||||||||
Puerto Rico Comnwlth. Rev., Aqueduct & Swr. Auth. Rev., Sr. Lien, Ser. A, Rfdg. | 5.750 | 07/01/37 | 390 | 279,338 | ||||||||||||
Puerto Rico Comnwlth. Rev., Aqueduct & Swr. Auth. Rev., Sr. Lien, Ser. A, Rfdg. | 6.000 | 07/01/47 | 325 | 232,781 | ||||||||||||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev., Sr. Lien, Ser. C | 5.250 | (d) | 08/01/40 | 750 | 426,563 | |||||||||||
Rancho Cucamonga Redev. Agy. Successor Agy. Tax Alloc., Rancho Redev. Proj. Area, AGM | 5.000 | 09/01/32 | 450 | 511,587 | ||||||||||||
Redding Elec. Sys. Rev., COP, Linked SAVRS, RIBS, NATL, ETM, Rfdg. (Escrowed to maturity date 07/01/22)(ee) | 6.368 | 07/01/22 | 45 | 49,464 | ||||||||||||
Redding Elec. Sys. Rev., COP, Linked SAVRS, RIBS, NATL, ETM, Rfdg. (Escrowed to maturity date 07/01/22)(ee)(pp) | 11.049 | (cc) | 07/01/22 | 1,205 | 1,444,072 | |||||||||||
Riverside Cnty. Calif. Redev. Agy. Tax. Alloc. Intst. 215 Corridor, Ser. E (Pre-refunded date 10/01/20)(ee) | 6.500 | 10/01/40 | 1,000 | 1,125,000 | ||||||||||||
Riverside Cnty. Infrast. Fing. Auth. Rev., Ser. A, Rfdg. | 4.000 | 11/01/37 | 1,250 | 1,297,612 | ||||||||||||
Riverside Cnty. Pub. Fing. Auth. Rev., Cap. Facs. Proj. | 5.250 | 11/01/45 | 1,000 | 1,151,510 |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 17 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2018
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) |
| |||||||||||||||
Riverside Cnty. Trans. Commission Rev., Sr. Lien, Ser. A | 5.750 | % | 06/01/44 | 500 | $ | 556,005 | ||||||||||
Roseville Calif. Spl. Tax., WestPark Cmnty. Facs. Dist. No. 1, Pub. Facs., Rfdg. | 5.000 | 09/01/37 | 500 | 551,855 | ||||||||||||
Sacramento Area Flood Control Agy. Spl. Assessment, Ser A., Rfdg | 5.000 | 10/01/41 | 1,000 | 1,142,160 | ||||||||||||
Sacramento Cnty. Santn. Dist. Fing. Auth. Rev., Cmnty. Facs. Dist. #2004-1, Mcclellan Park, Rfdg. | 5.000 | 09/01/40 | 1,000 | 1,113,470 | ||||||||||||
Sacramento Cnty. Santn. Dist. Fing. Auth. Rev., Var.-Regl., Ser. B, NATL, 3 Month LIBOR + 0.530% | 1.522 | (c) | 12/01/35 | 1,000 | 963,820 | |||||||||||
San Buenaventura Calif. Rev., Cmnty. Mem. Hlth. Sys. | 7.500 | 12/01/41 | 500 | 559,365 | ||||||||||||
San Buenaventura Calif. Rev., Cmnty. Mem. Hlth. Sys. | 8.000 | 12/01/26 | 500 | 587,365 | ||||||||||||
San Diego Assn. of Gov’t. South Bay Expressway Rev., Sr. Lien, Ser. A | 5.000 | 07/01/42 | 1,175 | 1,342,355 | ||||||||||||
San Diego Cmnty. College Dist., Election of 2006, GO (Pre-refunded date 08/01/21)(ee) | 5.000 | 08/01/41 | 1,500 | 1,666,650 | ||||||||||||
San Diego Cnty. Regl. Arpt. Auth. Rev., Sr. Ser. B, AMT | 5.000 | 07/01/43 | 2,000 | 2,183,260 | ||||||||||||
San Diego Pub. Facs. Fing. Auth. Rev., Cap. Impt. Projs., Ser. A | 5.000 | 10/15/44 | 1,000 | 1,120,820 | ||||||||||||
San Francisco City & Cnty. Arpts. Comm. Rev., Second Ser. A, AMT | 5.250 | 05/01/33 | 500 | 561,055 | ||||||||||||
San Francisco City & Cnty. Arpts. Comm. Rev., Second Ser. A, Rfdg., AMT | 5.000 | 05/01/31 | 1,000 | 1,104,500 | ||||||||||||
San Francisco City & Cnty. Arpts. Comm. Rev., Second Ser. C, Rfdg., AMT | 5.000 | 05/01/25 | 1,555 | 1,693,799 | ||||||||||||
San Francisco City & Cnty. Arpts. Comm. Rev., Second Ser. F, Rfdg., AMT | 5.000 | 05/01/28 | 1,000 | 1,086,370 | ||||||||||||
San Francisco City & Cnty. Arpts. Comm. Rev., Ser. A, AMT | 5.000 | 05/01/47 | 1,000 | 1,114,190 | ||||||||||||
San Francisco City & Cnty. Redev. Agy., Tax Alloc. Mission Bay North Redev., Ser. C (Pre-refunded date 08/01/19)(ee) | 6.500 | 08/01/39 | 1,000 | 1,069,820 | ||||||||||||
San Jose Calif., Library & Park Proj., GO | 5.000 | 09/01/33 | 2,200 | 2,206,050 | ||||||||||||
San Jose Calif., Redev. Agy. Tax Alloc., Merged Area Redev. Proj., Hsg. Set Aside, Ser. A-1, Rfdg. (Pre-refunded date 08/01/20)(ee) | 5.500 | 08/01/35 | 1,000 | 1,095,220 | ||||||||||||
San Leandro Cmnty. Facs., Spl. Tax Dist. No. 1 | 6.500 | 09/01/25 | 2,160 | 2,163,586 | ||||||||||||
Santa Margarita Wtr. Dist. Spl. Tax, Cmnty. Facs. Dist. No. 2013-1 | 5.625 | 09/01/36 | 325 | 354,767 | ||||||||||||
Santa Maria Joint Union H.S. Dist., Election of 2004, CABS, GO, NATL | 3.480 | (t) | 08/01/29 | 1,250 | 843,125 | |||||||||||
Santa Monica Cmnty. College Dist. Election of 2002, Ser. A, GO, NATL | 3.170 | (t) | 08/01/28 | 1,055 | 760,339 | |||||||||||
South Bayside Wste. Mgmt. Auth. Calif. Rev., Solid Waste Enterprise Shoreway Environmental, Ser. A | 6.000 | 09/01/36 | 500 | 531,190 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) |
| |||||||||||||||
Southern Cali. Pub. Power Auth. Nat. Gas Proj. Rev., LIBOR, Proj. No. 1, Ser. A, 3 Month LIBOR + 1.470% | 2.658 | %(c) | 11/01/38 | 2,000 | $ | 1,855,880 | ||||||||||
Stockton Pub. Fing. Auth. Rev., Delta Wtr. Sply. Proj., Ser. A, Rmkt. | 6.250 | 10/01/40 | 700 | 826,721 | ||||||||||||
Tob. Securitization Auth. Northn. Calif. Rev., Asset-Bkd. Tob. Settlement, Ser. A-1 | 4.750 | 06/01/23 | 2,575 | 2,575,515 | ||||||||||||
Walnut Energy Center Auth. Rev., Rfdg. | 5.000 | 01/01/34 | 1,000 | 1,138,600 | ||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 98.9% | 203,458,350 | |||||||||||||||
Other assets in excess of liabilities 1.1% | 2,273,232 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 205,731,582 | ||||||||||||||
|
|
The following abbreviations are used in the semiannual report:
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.
AGM—Assured Guaranty Municipal Corp.
AMBAC—American Municipal Bond Assurance Corp.
AMT—Alternative Minimum Tax
CABs—Capital Appreciation Bonds
COP—Certificates of Participation
ETM—Escrowed to Maturity
FRDD—Floating Rate Daily Demand Note
GO—General Obligation
IDB—Pollution Control Revenue
LIBOR—London Interbank Offered Rate
NATL—National Public Finance Guaranty Corp.
OTC—Over-the-counter
PCR—Pollution Control Revenue
Rfdg—Refunding
RIBS—Residual Interest Bonds
SAVRS—Select Auction Variable Rate Securities
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
(c) | Variable rate instrument. The interest rate shown reflects the rate in effect at February 28, 2018. |
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of February 28, 2018. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post maturity. |
(ee) | All or partial escrowed to maturity and pre-refunded issues are secured by escrowed cash and/or U.S. guaranteed obligations. |
(pp) | Inverse floating rate bond. The coupon is inversely indexed to a floating interest rate. The rate shown is the rate at February 28, 2018. |
(t) | Represents zero coupon bond. Rate quoted represents effective yield at February 28, 2018. |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 19 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2018
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of February 28, 2018 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities |
| |||||||||||
Municipal Bonds |
| |||||||||||
California | $ | — | $ | 201,416,103 | $ | — | ||||||
Guam | — | 1,103,565 | — | |||||||||
Puerto Rico | — | 938,682 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | — | $ | 203,458,350 | $ | — | ||||||
|
|
|
|
|
|
During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 28, 2018 were as follows:
General Obligation | 19.3 | % | ||
Health Care | 18.6 | |||
Transportation | 14.4 | |||
Special Tax/Assessment District | 12.3 | |||
Education | 9.5 | |||
Power | 6.4 | |||
Tobacco | 5.5 | |||
Lease Backed Certificate of Participation | 5.5 | |||
Water & Sewer | 4.9 | % | ||
Corporate Backed IDB & PCR | 2.2 | |||
Solid Waste/Resource Recovery | 0.3 | |||
|
| |||
98.9 | ||||
Other assets in excess of liabilities | 1.1 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
20 |
This Page Intentionally Left Blank
Statement of Assets & Liabilities (unaudited)
as of February 28, 2018
Assets |
| |||
Unaffiliated investments (cost $194,711,174) | $ | 203,458,350 | ||
Cash | 43,648 | |||
Interest receivable | 2,641,591 | |||
Receivable for Fund shares sold | 115,953 | |||
Prepaid expenses | 1,045 | |||
|
| |||
Total Assets | 206,260,587 | |||
|
| |||
Liabilities | ||||
Payable for Fund shares reacquired | 308,263 | |||
Management fee payable | 76,838 | |||
Dividends payable | 55,253 | |||
Distribution fee payable | 47,342 | |||
Accrued expenses and other liabilities | 37,464 | |||
Affiliated transfer agent fee payable | 3,845 | |||
|
| |||
Total Liabilities | 529,005 | |||
|
| |||
Net Assets | $ | 205,731,582 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 196,845 | ||
Paid-in capital in excess of par | 198,402,641 | |||
|
| |||
198,599,486 | ||||
Undistributed net investment income | 488,667 | |||
Accumulated net realized loss on investment transactions | (2,103,747 | ) | ||
Net unrealized appreciation on investments | 8,747,176 | |||
|
| |||
Net assets, February 28, 2018 | $ | 205,731,582 | ||
|
|
See Notes to Financial Statements.
22 |
Class A | ||||
Net asset value and redemption price per share | ||||
($115,303,268 ÷ 11,032,299 shares of beneficial interest issued and outstanding) | $ | 10.45 | ||
Maximum sales charge (4.00% of offering price) | 0.44 | |||
|
| |||
Maximum offering price to public | $ | 10.89 | ||
|
| |||
Class B | ||||
Net asset value, offering price and redemption price per share | ||||
($3,385,520 ÷ 323,961 shares of beneficial interest issued and outstanding) | $ | 10.45 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share | ||||
($31,009,992 ÷ 2,967,338 shares of beneficial interest issued and outstanding) | $ | 10.45 | ||
|
| |||
Class Q | ||||
Net asset value, offering price and redemption price per share | ||||
($9,965 ÷ 953 shares of beneficial interest issued and outstanding) | $ | 10.45 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share | ||||
($56,022,837 ÷ 5,359,981 shares of beneficial interest issued and outstanding) | $ | 10.45 | ||
|
|
See Notes to Financial Statements.
Prudential California Muni Income Fund | 23 |
Statement of Operations (unaudited)
Six Months Ended February 28, 2018
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 4,353,629 | ||
|
| |||
Expenses | ||||
Management fee | 513,547 | |||
Distribution fee(a) | 314,723 | |||
Transfer agent’s fees and expenses (including affiliated expense of $10,000)(a) | 49,758 | |||
Registration fees(a) | 38,425 | |||
Custodian and accounting fees | 32,980 | |||
Audit fee | 19,400 | |||
Shareholders’ reports | 15,250 | |||
Legal fees and expenses | 13,575 | |||
Trustees’ fees | 6,550 | |||
Miscellaneous | 7,682 | |||
|
| |||
Total expenses | 1,011,890 | |||
Less: Fee waiver and/or expense reimbursement(a) | (10,451 | ) | ||
Custodian fee credit | (1,084 | ) | ||
|
| |||
Net expenses | 1,000,355 | |||
|
| |||
Net investment income (loss) | 3,353,274 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on investment transactions | 334,263 | |||
Net change in unrealized appreciation (depreciation) on investments | (5,639,348 | ) | ||
|
| |||
Net gain (loss) on investment transactions | (5,305,085 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | (1,951,811 | ) | |
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class B | Class C | Class Q | Class Z | ||||||||||||||||
Distribution fee | 145,626 | 9,167 | 159,930 | — | — | |||||||||||||||
Transfer agent’s fees and expenses | 23,511 | 1,442 | 7,248 | 9 | 17,548 | |||||||||||||||
Registration fees | 7,741 | 7,760 | 7,741 | 7,273 | 7,910 | |||||||||||||||
Fee waiver and/or expense reimbursement | — | (3,173 | ) | — | (7,278 | ) | — |
See Notes to Financial Statements.
24 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended February 28, 2018 | Year Ended August 31, 2017 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 3,353,274 | $ | 6,956,644 | ||||
Net realized gain (loss) on investment transactions | 334,263 | (326,950 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | (5,639,348 | ) | (8,477,663 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (1,951,811 | ) | (1,847,969 | ) | ||||
|
|
|
| |||||
Dividends from net investment income | ||||||||
Class A | (2,044,850 | ) | (4,086,496 | ) | ||||
Class B | (54,673 | ) | (133,129 | ) | ||||
Class C | (434,787 | ) | (943,961 | ) | ||||
Class Q | (130 | ) | — | |||||
Class Z | (991,002 | ) | (1,746,657 | ) | ||||
|
|
|
| |||||
(3,525,442 | ) | (6,910,243 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 20,465,020 | 43,596,094 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 3,134,315 | 5,919,278 | ||||||
Cost of shares reacquired | (19,411,089 | ) | (77,882,884 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 4,188,246 | (28,367,512 | ) | |||||
|
|
|
| |||||
Total increase (decrease) | (1,289,007 | ) | (37,125,724 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 207,020,589 | 244,146,313 | ||||||
|
|
|
| |||||
End of period(a) | $ | 205,731,582 | $ | 207,020,589 | ||||
|
|
|
| |||||
(a) Includes undistributed net investment income of: | $ | 488,667 | $ | 660,835 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential California Muni Income Fund | 25 |
Notes to Financial Statements (unaudited)
Prudential Investment Portfolios 6 (the “Trust”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as a diversified, open-end management investment company. The Trust was established as a Massachusetts business trust on May 18, 1984. The Trust currently consists of one investment portfolio, known as the Prudential California Muni Income Fund (the “Fund”).
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.
1. Accounting Policies
The Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or “the Manager”). Under the current valuation procedures, the Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are
26 |
based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Restricted and Illiquid Securities: Subject to guidelines adopted by the Board, the Fund may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities are valued pursuant to the valuation procedures noted above. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the investment. Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur transaction costs that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Fund’s Subadviser under the guidelines adopted by the Trustees of the Fund. However, the liquidity of the Fund’s investments in Rule 144A securities could be impaired if trading does not develop or declines.
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 of these securities may be leveraged,
Prudential California Muni Income Fund | 27 |
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.
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.
Concentration of Risk: The Fund’s focus on California obligations makes the Fund much more susceptible to California-related risks such as economic, political and other developments that may adversely affect issuers of California obligations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.
Class specific expenses and waivers, where applicable, are charged to the respective share classes. Class specific expenses include Distribution fees, Distribution fee waivers, Transfer Agent’s fees and expenses, Registration fees and Fee waiver and/or expense reimbursement.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
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
28 |
custody fee credits, if any, are presented as a reduction of gross expenses in the accompanying Statement of Operations.
Dividends and Distributions: The Fund expects to pay dividends from net investment income monthly and distributions from net realized capital gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
The Trust, on behalf of the Fund, has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. In addition, under the management agreement, PGIM Investments provides all of the administrative functions necessary for the organization, operation and management of the Fund. PGIM Investments administers the corporate affairs of the Fund and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by, the Fund’s custodian (the Custodian), and the Fund’s transfer agent. PGIM Investments is also responsible for the staffing and management of dedicated groups of legal, marketing, compliance and related personnel necessary for the operation of the Fund. The legal, marketing, compliance and related personnel are also responsible for the management and oversight of the various service providers to the Fund, including, but not limited to, the custodian, transfer agent, and accounting agent.
PGIM Investments has entered into a subadvisory agreement with PGIM, Inc., which provides subadvisory services to the Fund through its PGIM Fixed Income unit. The subadvisory agreement provides that PGIM, Inc. will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PGIM, Inc. is obligated to keep certain books and records of the Fund. PGIM Investments pays for the services of PGIM, Inc., 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 PGIM Investments is accrued daily and payable monthly, at an annual rate of 0.50% of the Fund’s average daily net assets up to and including $1 billion and 0.45% of such average daily net assets in excess of $1 billion. The effective management fee rate before any waivers and/or expense reimbursement was 0.50% for the
Prudential California Muni Income Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
six months ended February 28, 2018. The effective management fee rate, net of waivers and/or expense reimbursement was 0.49%.
PGIM Investments has contractually agreed, through December 31, 2019, to limit Total Annual Fund Operating Expenses after fee waivers and/or expense reimbursements to 1.42% of average daily net assets for Class B shares and 0.70% of average daily net assets for Class Q shares. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales. Expenses waived/reimbursed by PGIM Investments may be recouped by PGIM Investments within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
The Trust on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class Q 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 “Distribution 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 Q and Class Z shares of the Fund.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to 0.25%, 0.50% and 1% of the average daily net assets of the Class A, B and C shares, respectively.
PIMS has advised the Fund that it received $55,189 in front-end sales charges resulting from sales of Class A shares during the six months ended February 28, 2018. From these fees, PIMS paid such sales charges to affiliated broker-dealers which in turn paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Fund that, for the six months ended February 28, 2018, it received $1,981 and $1,078 in contingent deferred sales charges imposed upon redemptions by certain Class B and Class C shareholders, respectively.
PGIM Investments, PGIM, Inc. and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
30 |
3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board. For the reporting period ended February 28, 2018 no such transactions were entered into by the Fund.
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the six months ended February 28, 2018, were $32,872,805 and $30,486,451, respectively.
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of February 28, 2018 were as follows:
Tax basis | $ | 194,476,024 | ||
|
| |||
Gross Unrealized Appreciation | 10,345,965 | |||
Gross Unrealized Depreciation | (1,363,639 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 8,982,326 | ||
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), the Fund is permitted to carryforward capital losses realized on or after September 1, 2011 (“post-enactment losses”) for an unlimited period. 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 taxable years ending before August 31, 2012 (“pre-enactment losses”) may have an increased likelihood to expire unused. The Fund utilized approximately $388,000 of its post-enactment losses to offset net taxable gains realized in the current year ended August 31, 2017. 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. No capital gains distributions are expected to be paid to shareholders until
Prudential California Muni Income Fund | 31 |
Notes to Financial Statements (unaudited) (continued)
net gains have been realized in excess of such losses. As of August 31, 2017, the pre and post-enactment losses were approximately:
Post-Enactment Losses: | $ | 1,106,000 | ||
|
| |||
Pre-Enactment Losses: | ||||
Expiring 2019 | $ | 926,000 | ||
|
|
The Fund elected to treat post-October capital losses of approximately $632,000 as having been incurred in the following fiscal year (August 31, 2018).
Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
6. Capital and Ownership
The Fund offers Class A, Class B, Class C, Class Q and Class Z shares. Class A shares are sold with a maximum front-end sales charge of 4.00%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class Q and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of beneficial interest.
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
32 |
Prudential California Muni Income Fund is authorized to issue an unlimited number of shares, divided into five classes, designated Class A, Class B, Class C, Class Q and Class Z.
The Trust has authorized an unlimited number of shares of beneficial interest at $0.01 par value per share.
As of February 28, 2018, Prudential, through its affiliate entities, owned 953 of Class Q shares of the Fund. At reporting period end, four shareholders of record held 55% of the Fund’s outstanding shares on behalf of multiple beneficial owners.
Transactions in shares of beneficial interest were as follows:
Class A | Shares | Amount | ||||||
Six months ended February 28, 2018: | ||||||||
Shares sold | 469,018 | $ | 4,981,339 | |||||
Shares issued in reinvestment of dividends and distributions | 168,193 | 1,780,233 | ||||||
Shares reacquired | (659,309 | ) | (6,999,226 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (22,098 | ) | (237,654 | ) | ||||
Shares issued upon conversion from other share class(es) | 23,033 | 246,214 | ||||||
Shares reacquired upon conversion into other share class(es) | (26,010 | ) | (275,871 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (25,075 | ) | $ | (267,311 | ) | |||
|
|
|
| |||||
Year ended August 31, 2017: | ||||||||
Shares sold | 962,785 | $ | 10,265,836 | |||||
Shares issued in reinvestment of dividends and distributions | 331,151 | 3,520,590 | ||||||
Shares reacquired | (2,182,234 | ) | (23,061,740 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (888,298 | ) | (9,275,314 | ) | ||||
Shares issued upon conversion from other share class(es) | 44,707 | 480,023 | ||||||
Shares reacquired upon conversion into other share class(es) | (184,309 | ) | (1,947,001 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,027,900 | ) | $ | (10,742,292 | ) | |||
|
|
|
| |||||
Class B | ||||||||
Six months ended February 28, 2018: | ||||||||
Shares sold | 210 | $ | 2,230 | |||||
Shares issued in reinvestment of dividends and distributions | 4,252 | 45,004 | ||||||
Shares reacquired | (36,094 | ) | (383,634 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (31,632 | ) | (336,400 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (22,986 | ) | (245,761 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (54,618 | ) | $ | (582,161 | ) | |||
|
|
|
| |||||
Year ended August 31, 2017: | ||||||||
Shares sold | 1,362 | $ | 14,371 | |||||
Shares issued in reinvestment of dividends and distributions | 10,501 | 111,617 | ||||||
Shares reacquired | (38,287 | ) | (403,375 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (26,424 | ) | (277,387 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (29,177 | ) | (314,682 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (55,601 | ) | $ | (592,069 | ) | |||
|
|
|
|
Prudential California Muni Income Fund | 33 |
Notes to Financial Statements (unaudited) (continued)
Class C | ||||||||
Six months ended February 28, 2018: |
| |||||||
Shares sold | 202,071 | $ | 2,148,827 | |||||
Shares issued in reinvestment of dividends and distributions | 35,767 | 378,487 | ||||||
Shares reacquired | (322,123 | ) | (3,418,732 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (84,285 | ) | (891,418 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (19,039 | ) | (203,426 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (103,324 | ) | $ | (1,094,844 | ) | |||
|
|
|
| |||||
Year ended August 31, 2017: |
| |||||||
Shares sold | 430,281 | $ | 4,614,969 | |||||
Shares issued in reinvestment of dividends and distributions | 76,560 | 813,962 | ||||||
Shares reacquired | (1,097,210 | ) | (11,608,479 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (590,369 | ) | (6,179,548 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (83,207 | ) | (882,206 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (673,576 | ) | $ | (7,061,754 | ) | |||
|
|
|
| |||||
Class Q | ||||||||
Period ended February 28, 2018*: |
| |||||||
Shares sold | 941 | $ | 10,014 | |||||
Shares issued in reinvestment of dividends and distributions | 12 | 130 | ||||||
Shares reacquired | — | (4 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 953 | $ | 10,140 | |||||
|
|
|
| |||||
Class Z | ||||||||
Six months ended February 28, 2018: |
| |||||||
Shares sold | 1,254,282 | $ | 13,322,610 | |||||
Shares issued in reinvestment of dividends and distributions | 87,931 | 930,461 | ||||||
Shares reacquired | (811,612 | ) | (8,609,493 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 530,601 | 5,643,578 | ||||||
Shares issued upon conversion from other share class(es) | 45,006 | 478,844 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 575,607 | $ | 6,122,422 | |||||
|
|
|
| |||||
Year ended August 31, 2017: |
| |||||||
Shares sold | 2,724,585 | $ | 28,700,918 | |||||
Shares issued in reinvestment of dividends and distributions | 138,635 | 1,473,109 | ||||||
Shares reacquired | (3,991,322 | ) | (42,809,290 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (1,128,102 | ) | (12,635,263 | ) | ||||
Shares issued upon conversion from other shares class(es) | 255,743 | 2,703,814 | ||||||
Shares reacquired upon conversion into other share class(es) | (3,754 | ) | (39,948 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (876,113 | ) | $ | (9,971,397 | ) | |||
|
|
|
|
* | Commencement of offering was October 26, 2017. |
34 |
7. Borrowings
The Trust, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 5, 2017 through October 4, 2018. The Funds pay an annualized commitment fee of 0.15% of the unused portion of the SCA. The Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. Prior to October 5, 2017, the Funds had another SCA that provided a commitment of $900 million and the Funds paid an annualized commitment fee of 0.15% of the unused portion of the SCA. The interest on borrowings under the SCAs is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the 1-month LIBOR rate or (3) zero percent.
Other affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Funds in the SCA equitably.
The Fund did not utilize the SCA during the six months ended February 28, 2018.
Prudential California Muni Income Fund | 35 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended February 28, | Year Ended August 31, | |||||||||||||||||||||||||||
2018(a) | 2017(a) | 2016(a) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.73 | $11.13 | $10.74 | $10.89 | $10.18 | $11.04 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.36 | 0.39 | 0.42 | 0.43 | 0.43 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (0.28 | ) | (0.40 | ) | 0.38 | (0.14 | ) | 0.74 | (0.86 | ) | ||||||||||||||||||
Total from investment operations | (0.10 | ) | (0.04 | ) | 0.77 | 0.28 | 1.17 | (0.43 | ) | |||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.18 | ) | (0.36 | ) | (0.38 | ) | (0.43 | ) | (0.46 | ) | (0.43 | ) | ||||||||||||||||
Net asset value, end of period | $10.45 | $10.73 | $11.13 | $10.74 | $10.89 | $10.18 | ||||||||||||||||||||||
Total Return(b): | (0.90)% | (0.29)% | 7.32% | 2.54% | 11.68% | (4.15)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $115,303 | $118,662 | $134,563 | $129,942 | $143,019 | $143,901 | ||||||||||||||||||||||
Average net assets (000) | $117,466 | $121,336 | $130,998 | $140,055 | $141,409 | $161,292 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement(c) | 0.90% | (e) | 0.93% | 0.92% | 0.94% | 0.93% | 0.91% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement(c) | 0.90% | (e) | 0.93% | 0.92% | 0.97% | 0.98% | 0.96% | |||||||||||||||||||||
Net investment income (loss) | 3.34% | (e) | 3.40% | 3.56% | 3.80% | 4.07% | 3.93% | |||||||||||||||||||||
Portfolio turnover rate(d) | 15% | (f) | 44% | 22% | 13% | 20% | 42% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The distributor of the Fund had contractually agreed to limit its distribution and service (12b-1) fees to 0.25% of the average daily net assets through March 8, 2015. Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from 0.30% to 0.25% of the average daily net assets and the 0.05% contractual 12b-1 waiver was terminated. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
36 |
Class B Shares | ||||||||||||||||||||||||||||
Six Months Ended February 28, | Year Ended August 31, | |||||||||||||||||||||||||||
2018(a) | 2017(a) | 2016(a) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.73 | $11.13 | $10.74 | $10.89 | $10.18 | $11.04 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.34 | 0.36 | 0.40 | 0.41 | 0.40 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (0.27 | ) | (0.41 | ) | 0.39 | (0.15 | ) | 0.73 | (0.86 | ) | ||||||||||||||||||
Total from investment operations | (0.12 | ) | (0.07 | ) | 0.75 | 0.25 | 1.14 | (0.46 | ) | |||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.16 | ) | (0.33 | ) | (0.36 | ) | (0.40 | ) | (0.43 | ) | (0.40 | ) | ||||||||||||||||
Net asset value, end of period | $10.45 | $10.73 | $11.13 | $10.74 | $10.89 | $10.18 | ||||||||||||||||||||||
Total Return(b): | (1.16)% | (0.53)% | 7.07% | 2.29% | 11.40% | (4.39)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $3,386 | $4,062 | $4,835 | $5,217 | $6,568 | $6,650 | ||||||||||||||||||||||
Average net assets (000) | $3,697 | $4,264 | $5,015 | $6,041 | $6,480 | $7,061 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.42% | (d) | 1.18% | 1.17% | 1.19% | 1.18% | 1.16% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.59% | (d) | 1.18% | 1.17% | 1.19% | 1.18% | 1.16% | |||||||||||||||||||||
Net investment income (loss) | 2.81% | (d) | 3.15% | 3.32% | 3.55% | 3.81% | 3.69% | |||||||||||||||||||||
Portfolio turnover rate(c) | 15% | (e) | 44% | 22% | 13% | 20% | 42% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 37 |
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended February 28, | Year Ended August 31, | |||||||||||||||||||||||||||
2018(a) | 2017(a) | 2016(a) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.73 | $11.14 | $10.74 | $10.89 | $10.18 | $11.04 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.13 | 0.28 | 0.31 | 0.33 | 0.35 | 0.35 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (0.27 | ) | (0.41 | ) | 0.39 | (0.13 | ) | 0.74 | (0.87 | ) | ||||||||||||||||||
Total from investment operations | (0.14 | ) | (0.13 | ) | 0.70 | 0.20 | 1.09 | (0.52 | ) | |||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.14 | ) | (0.28 | ) | (0.30 | ) | (0.35 | ) | (0.38 | ) | (0.34 | ) | ||||||||||||||||
Net asset value, end of period | $10.45 | $10.73 | $11.14 | $10.74 | $10.89 | $10.18 | ||||||||||||||||||||||
Total Return(b): | (1.28)% | (1.11)% | 6.63% | 1.79% | 10.85% | (4.86)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $31,010 | $32,950 | $41,694 | $28,973 | $23,365 | $22,315 | ||||||||||||||||||||||
Average net assets (000) | $32,251 | $35,933 | $35,029 | $26,988 | $21,725 | $24,809 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.69% | (d) | 1.68% | 1.67% | 1.69% | 1.68% | 1.66% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.69% | (d) | 1.68% | 1.67% | 1.69% | 1.68% | 1.66% | |||||||||||||||||||||
Net investment income (loss) | 2.55% | (d) | 2.64% | 2.80% | 3.05% | 3.31% | 3.19% | |||||||||||||||||||||
Portfolio turnover rate(c) | 15% | (e) | 44% | 22% | 13% | 20% | 42% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
38 |
Class Q Shares | ||||
October 26, 2017(d) through February 28, 2018 | ||||
Per Share Operating Performance(a): | ||||
Net Asset Value, Beginning of Period | $10.64 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.13 | |||
Net realized and unrealized gain (loss) on investment transactions | (0.18 | ) | ||
Total from investment operations | (0.05 | ) | ||
Less Dividends: | ||||
Dividends from net investment income | (0.14 | ) | ||
Net asset value, end of period | $10.45 | |||
Total Return(b): | (0.50)% | |||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $10 | |||
Average net assets (000) | $10 | |||
Ratios to average net assets: | ||||
Expenses after waivers and/or expense reimbursement | 0.70% | (e) | ||
Expenses before waivers and/or expense reimbursement | 212.92% | (e) | ||
Net investment income (loss) | 3.56% | (e) | ||
Portfolio turnover rate(c) | 15% | (f) |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
(d) | Commencement of offering. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
Prudential California Muni Income Fund | 39 |
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended February 28, | Year Ended August 31, | |||||||||||||||||||||||||||
2018(a) | 2017(a) | 2016(a) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.73 | $11.14 | $10.75 | $10.90 | $10.18 | $11.05 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.39 | 0.42 | 0.44 | 0.46 | 0.46 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (0.27 | ) | (0.41 | ) | 0.38 | (0.14 | ) | 0.74 | (0.88 | ) | ||||||||||||||||||
Total from investment operations | (0.08 | ) | (0.02 | ) | 0.80 | 0.30 | 1.20 | (0.42 | ) | |||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.20 | ) | (0.39 | ) | (0.41 | ) | (0.45 | ) | (0.48 | ) | (0.45 | ) | ||||||||||||||||
Net asset value, end of period | $10.45 | $10.73 | $11.14 | $10.75 | $10.90 | $10.18 | ||||||||||||||||||||||
Total Return(b): | (0.79)% | (0.10)% | 7.60% | 2.81% | 12.06% | (3.99)% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $56,023 | $51,347 | $63,055 | $51,290 | $41,079 | $36,435 | ||||||||||||||||||||||
Average net assets (000) | $53,701 | $48,061 | $56,172 | $46,389 | $35,062 | $43,284 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.69% | (d) | 0.68% | 0.67% | 0.69% | 0.68% | 0.66% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.69% | (d) | 0.68% | 0.67% | 0.69% | 0.68% | 0.66% | |||||||||||||||||||||
Net investment income (loss) | 3.55% | (d) | 3.64% | 3.81% | 4.05% | 4.30% | 4.18% | |||||||||||||||||||||
Portfolio turnover rate(c) | 15% | (e) | 44% | 22% | 13% | 20% | 42% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
40 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | www.pgiminvestments.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’s website. |
TRUSTEES |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Brian K. Reid • Stephen G. Stoneburn • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Dino Capasso, Vice President and Deputy Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
INVESTMENT SUBADVISER | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN | The Bank of New York Mellon | 225 Liberty 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.pgiminvestments.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.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Prudential California Muni Income Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-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 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the 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 | Q | Z | |||||
NASDAQ | PBCAX | PCAIX | PCICX | PCIQX | PCIZX | |||||
CUSIP | 74440X100 | 74440X209 | 74440X308 | 74440X605 | 74440X407 |
MF146E2
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 18, 2018 |
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 18, 2018 | |
By: | /s/ M. Sadiq Peshimam | |
M. Sadiq Peshimam | ||
Treasurer and Principal Financial and Accounting Officer | ||
Date: | April 18, 2018 |