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: | 811-04661 | |
Exact name of registrant as specified in charter: | Prudential Global Total Return Fund, Inc. | |
Address of principal executive offices: | Gateway Center 3, | |
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Deborah A. Docs | |
Gateway Center 3, | ||
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 10/31/2011 | |
Date of reporting period: | 4/30/2011 |
Item 1 – Reports to Stockholders
SEMIANNUAL REPORT | APRIL 30, 2011 |
Prudential Global Total Return Fund, Inc.
Fund Type Global bond
Objective Total return made up of current income and capital appreciation | This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.
The accompanying financial statements as of April 30, 2011, were not audited and, accordingly, no auditor’s opinion is expressed on them.
Prudential Investments, Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. |
To enroll in e-delivery, go to www.prudentialfunds.com/edelivery |
June 15, 2011
Dear Shareholder:
On the following pages, you’ll find your Fund’s semiannual report, including a table showing fund performance over the first half of the fiscal year and for longer periods. The report also contains a listing of the Fund’s holdings at period-end. Semiannual reports are interim statements furnished between the Fund’s annual reports, which include an analysis of Fund performance over the fiscal year in addition to other data.
Mutual fund prices and returns will rise or fall over time, and asset managers tend to have periods when they perform better or worse than their long-term average. The best measures of a mutual fund’s quality are its return compared to that of similar investments and the variability of its return over the long term. We recommend that you review your portfolio regularly with your financial professional.
Thank you for choosing the Prudential Investments® family of mutual funds.
Sincerely,
Judy A. Rice, President
Prudential Global Total Return Fund, Inc.
Prudential Global Total Return Fund, Inc. | 1 |
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The maximum initial sales charge is 4.50% (Class A shares). Gross operating expenses: Class A, 1.47%; Class B, 2.17%; Class C, 2.17%; Class Z, 1.17%. Net operating expenses: Class A, 1.35%; Class B, 2.10%; Class C, 1.95%; Class Z, 1.10%, after contractual and voluntary reduction. The distribution fees for Class A shares are contractually reduced through 2/29/2012. The distribution fees for Class C shares are contractually reduced through 2/28/2011.
Cumulative Total Returns (Without Sales Charges) as of 4/30/11 |
| |||||||||||||||
Six Months | One Year | Five Years | Ten Years | |||||||||||||
Class A | 3.67 | % | 16.66 | % | 53.36 | % | 95.12 | % | ||||||||
Class B | 3.32 | 15.85 | 47.71 | 81.32 | ||||||||||||
Class C | 3.60 | 16.19 | 49.68 | 85.39 | ||||||||||||
Class Z | 3.81 | 16.92 | 55.06 | 99.82 | ||||||||||||
Barclays Capital Global Aggregate Bond Index | 1.72 | | 10.45 | | | 41.58 | | | 103.43 | | ||||||
Citigroup WGBI—Unhedged | 0.69 | 11.16 | 43.50 | 111.61 | ||||||||||||
Lipper Average | 2.03 | 8.41 | 34.96 | 97.32 | ||||||||||||
Average Annual Total Returns (With Sales Charges) as of 3/31/11 |
| |||||||||||||||
One Year | Five Years | Ten Years | ||||||||||||||
Class A | 7.16 | % | 7.49 | % | 5.85 | % | ||||||||||
Class B | 6.33 | 7.54 | 5.57 | |||||||||||||
Class C | 10.65 | 7.97 | 5.81 | |||||||||||||
Class Z | 12.44 | 8.76 | 6.61 | |||||||||||||
Barclays Capital Global Aggregate Bond Index | | 7.15 | | | 6.95 | | | 7.02 | | |||||||
Citigroup WGBI—Unhedged | 7.29 | 7.31 | 7.40 | |||||||||||||
Lipper Average | 7.13 | 5.82 | 6.61 |
Source: Prudential Investments LLC and Lipper Inc. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of such fee waivers and/or expense reimbursements, total returns would be lower.
The average annual total returns take into account applicable sales charges. Class A shares are subject to a maximum front-end sales charge of 4.50% and a 12b-1 fee of up to 0.30% annually, and all investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (CDSC) of 1%. Under certain limited circumstances, an
2 | Visit our website at www.prudentialfunds.com |
exchange may be made from Class A, Class B, or Class C to Class Z shares of the Fund. Class B shares are subject to a declining CDSC of 5%, 4%, 3%, 2%, 1%, and 1%, respectively, for the first six years after purchase and a 12b-1 fee of 1% annually. Approximately seven years after purchase, Class B will automatically convert to Class A shares on a quarterly basis. Class C shares are not subject to a front-end sales charge, but are subject to a CDSC of 1% for shares sold within 12 months from the date of purchase and an annual 12b-1 fee of 1%. Class Z shares are not subject to a sales charge or 12b-1 fees. Without waiver of fees and/or expense subsidization, the Fund’s total returns would have been lower. The returns in the tables reflect the share class expense structure in effect at the close of the fiscal period.
Benchmark Definitions
Barclays Capital Global Aggregate Bond Index
The Barclays Capital Global Aggregate Bond Index is an unmanaged index of global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities.
Citigroup World Government Bond Index (WGBI)
The Citigroup World Government Bond Index (WGBI)—Unhedged is an unhedged and unmanaged market capitalization-weighted index consisting of the government bond markets of 21 countries that are selected based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.
Lipper Global Income Funds Average
The Lipper Global Income Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper Global Income Funds category for the periods noted. Funds in the Lipper Average invest primarily in U.S. dollar and non-U.S. dollar debt securities of issuers located in at least three countries, one of which may be the United States.
Investors cannot invest directly in an index or average. The returns for Barclays Capital Global Aggregate Bond Index and the Citigroup WGBI—Unhedged 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.
Distributions and Yields as of 4/30/11 | ||||||||
Total Distributions Paid for Six Months | 30-Day SEC Yield | |||||||
Class A | $ | 0.59 | 2.75 | % | ||||
Class B | 0.55 | 2.17 | ||||||
Class C | 0.56 | 2.17 | ||||||
Class Z | 0.60 | 3.11 |
Prudential Global Total Return Fund, Inc. | 3 |
Your Fund’s Performance (continued)
Five Largest Long-Term Holdings expressed as a percentage of net assets as of 4/30/11 |
| |||
Federal National Mortgage Association, 4.500%, TBA 30 YR | 3.3 | % | ||
Italian Government Bond, 6.000%, 05/01/31 | 1.8 | |||
Cia Energetica de Sao Paulo, Sr. Notes, 144A, MTN, 9.750%, 01/15/15 | 1.8 | |||
United Kingdom Treasury Bonds, 4.750%, 12/07/30 | 1.6 | |||
LB-UBS Commercial Mortgage Trust, Ser. 2007-C6, Class A2, 5.845%, 07/15/40 | 1.5 |
Holdings are subject to change.
4 | Visit our website at www.prudentialfunds.com |
Fees and Expenses (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on November 1, 2010, at the beginning of the period, and held through the six-month period ended April 30, 2011. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of Prudential Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Prudential Global Total Return Fund, Inc. | 5 |
Fees and Expenses (continued)
Hypothetical Example for Comparison Purposes
The second line for each share class in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line 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 Global Total Return Fund, Inc. | Beginning Account Value November 1, 2010 | Ending Account Value April 30, 2011 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,036.70 | 1.35 | % | $ | 6.82 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.10 | 1.35 | % | $ | 6.76 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,033.20 | 2.10 | % | $ | 10.59 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,014.38 | 2.10 | % | $ | 10.49 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,036.00 | 1.95 | % | $ | 9.84 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.12 | 1.95 | % | $ | 9.74 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,038.10 | 1.10 | % | $ | 5.56 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.34 | 1.10 | % | $ | 5.51 | ||||||||||
* Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2011, and divided by 365 days to reflect the six-month period. Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
6 | Visit our website at www.prudentialfunds.com |
Portfolio of Investments
as of April 30, 2011 (Unaudited)
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| LONG-TERM INVESTMENTS 91.5% | |||||||
| FOREIGN BONDS 36.4% | |||||||
| Belgium 0.2% | |||||||
EUR | 150 | Belgium Government Bond, | $ | 225,077 | ||||
| Bermuda 0.4% | |||||||
$ | 400 | Axis Capital Holdings Ltd., Sr. Unsec’d. Notes, | 435,670 | |||||
65 | Weatherford International Ltd. Bermuda, Gtd. Notes, | 66,427 | ||||||
502,097 | ||||||||
| Brazil 2.2% | |||||||
BRL | 1,000 | Brazil Notas do Tesouro Nacional, Ser. F, Notes, | 598,017 | |||||
BRL | 2,850 | Cia Energetica de Sao Paulo, Sr. Notes, 144A, MTN, | 2,509,317 | |||||
3,107,334 | ||||||||
| Canada 1.9% | |||||||
25 | Agrium, Inc., Sr. Unsec’d. Notes, | 26,329 | ||||||
77 | Canadian Pacific Railway Co., Sr. Unsec’d. Notes, | 88,710 | ||||||
225 | Cenovus Energy, Inc., Sr. Unsec’d. Notes, Ser. WI, | 258,840 | ||||||
1,301 | CW Media Holdings, Inc., PIK, Gtd. Notes, 144A, | 1,437,799 | ||||||
250 | Novelis, Inc., Gtd. Notes, | 276,250 | ||||||
29 | Teck Resources Ltd., Sr. Sec’d. Notes, | 35,018 | ||||||
200 | TransAlta Corp., Sr. Unsec’d. Notes, | 227,512 | ||||||
325 | Videotron LTEE, Gtd. Notes, | 364,000 | ||||||
2,714,458 | ||||||||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 7 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| FOREIGN BONDS (Continued) | |||||||
| Cayman Islands 0.9% | |||||||
$ | 500 | Country Garden Holdings Co., Sr. Unsec’d. Notes, 144A, | $ | 548,750 | ||||
120 | MUFG Capital Finance 1, Ltd., Gtd. Notes., | 120,897 | ||||||
400 | Seagate HDD Cayman, Gtd. Notes, 144A, | 406,000 | ||||||
80 | Vale Overseas Ltd., Gtd. Notes, | 85,918 | ||||||
125 | 6.875%, 11/10/39 | 135,214 | ||||||
1,296,779 | ||||||||
| Chile 0.2% | |||||||
260 | Empresa Nacional de Electricidad SA, Sr. Unsec’d. Notes, | 292,194 | ||||||
| Colombia 1.0% | |||||||
COP | 345,000 | Republic of Colombia, | 244,486 | |||||
715 | 11.750%, 02/25/20 | 1,095,738 | ||||||
1,340,224 | ||||||||
| France 0.3% | |||||||
345 | BNP Paribas Home Loan Covered Bonds SA, | 335,105 | ||||||
150 | Vivendi SA, Sr. Unsec’d. Notes, 144A, | 161,190 | ||||||
496,295 | ||||||||
| Germany 0.9% | |||||||
EUR | 720 | Deutschland Bundesrepublik, | 1,119,431 | |||||
ZAR | 905 | Kreditanstalt Fuer Wiederaufbau, Ser. E, MTN, | 138,570 | |||||
1,258,001 | ||||||||
See Notes to Financial Statements.
8 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| FOREIGN BONDS (Continued) | |||||||
| Greece 0.2% | |||||||
EUR | 425 | Hellenic Republic Government Bonds, | $ | 314,304 | ||||
| Hungary 1.7% | |||||||
JPY | 100,000 | Hungary Government International Bond, | 1,180,978 | |||||
JPY | 100,000 | Ser. 4BR, | 1,179,531 | |||||
2,360,509 | ||||||||
| Indonesia 0.2% | |||||||
$ | 300 | Republic of Indonesia, | 300,000 | |||||
| Ireland 0.1% | |||||||
100 | Willis Group Holdings PLC, Gtd. Notes, | 101,449 | ||||||
| Israel 1.5% | |||||||
ILS | 7,000 | Israel Government Bond, | 2,037,305 | |||||
| Italy 1.8% | |||||||
EUR | 1,625 | Italian Government Bond, | 2,572,537 | |||||
| Japan 3.4% | |||||||
JPY | 142,800 | Japan Government Twenty Year Bonds, | 1,757,235 | |||||
JPY | 141,000 | 1.900%, 03/20/29 | 1,730,730 | |||||
JPY | 99,000 | 2.200%, 03/20/30 | 1,261,270 | |||||
4,749,235 | ||||||||
| Luxembourg 1.7% | |||||||
250 | ArcelorMittal, Sr. Unsec’d. Notes, | 270,487 | ||||||
50 | 6.750%, 03/01/41 | 51,171 | ||||||
300 | Enel Finance International SA, Gtd. Notes, 144A, | 286,282 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 9 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| FOREIGN BONDS (Continued) | |||||||
| Luxembourg (cont’d.) | |||||||
$ 250 | GAZ Capital SA For Gazprom, | $ | 311,875 | |||||
500 | Sr. Unsec’d. Notes, RegS, | 623,750 | ||||||
336 | Gazprom International SA, Gtd. Notes, RegS, | 364,346 | ||||||
380 | RSHB Capital SA for OJSC Russian Agricultural Bank, Sec’d. Notes, 144A, | 412,300 | ||||||
2,320,211 | ||||||||
| Mexico 1.3% | |||||||
MXN | 16,830 | Mexican Government Bonds, | 1,759,067 | |||||
| Netherlands 0.4% | |||||||
200 | Indo Integrated Energy II B.V., Sr. Sec’d. Notes, RegS, | 231,300 | ||||||
EUR | 272 | NXP BV / NXP Funding LLC, Sr. Sec’d. Notes, Ser. EXCH, | 399,695 | |||||
630,995 | ||||||||
| Panama 1.1% | |||||||
1,000 | Republic of Panama, | 1,199,000 | ||||||
300 | 7.250%, 03/15/15 | 351,300 | ||||||
1,550,300 | ||||||||
| Peru 0.8% | |||||||
1,000 | Peruvian Government International Bond, | 1,160,000 | ||||||
| Poland 2.3% | |||||||
650 | Poland Government International Bond, | 727,008 | ||||||
JPY | 100,000 | Ser. 3BR, | 1,224,286 |
See Notes to Financial Statements.
10 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| FOREIGN BONDS (Continued) | |||||||
| Poland (cont’d.) | |||||||
JPY | 100,000 | Ser. 8, | $ | 1,232,977 | ||||
3,184,271 | ||||||||
| Portugal 0.2% | |||||||
EUR | 300 | Portugal Obrigacoes do Tesouro OT, | 266,430 | |||||
| Qatar 0.2% | |||||||
$ | 215 | Republic of Qatar, Sr. Unsec’d. Notes, 144A, | 230,587 | |||||
| Russia 1.0% | |||||||
1,246 | Republic of Russia, RegS, | 1,451,909 | ||||||
| Singapore 0.1% | |||||||
140 | Bumi Investment Pte Ltd., Sec’d. Notes, MTN, RegS, | 162,050 | ||||||
| South Korea 2.8% | |||||||
240 | Export-Import Bank of Korea, Sr. Unsec’d Notes, | 264,522 | ||||||
100 | 8.125%, 01/21/14 | 114,912 | ||||||
HKD | 3,000 | Ser. E, MTN, | 386,162 | |||||
HKD | 3,000 | 1.560%, 09/22/11(a) | 387,342 | |||||
SGD | 250 | 1.570%, 05/24/12 | 204,884 | |||||
HKD | 1,000 | 3.340%, 08/07/11 | 129,405 | |||||
HKD | 5,000 | 4.250%, 06/15/12 | 665,341 | |||||
Korea Development Bank, Sr. Unsec’d Notes, | ||||||||
JPY | 100,000 | Ser. 29, | 1,240,883 | |||||
HKD | 2,000 | Ser. E, MTN, | 257,461 | |||||
300 | Shinhan Bank, Sr. Unsec’d. Notes, 144A, | 303,478 | ||||||
3,954,390 | ||||||||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 11 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| FOREIGN BONDS (Continued) | |||||||
| Spain 1.9% | |||||||
EUR | 1,300 | Spanish Government Bonds, | $ | 1,777,042 | ||||
EUR | 560 | 5.750%, 07/30/32 | 817,501 | |||||
2,594,543 | ||||||||
| Switzerland 0.2% | |||||||
$ | 30 | Allied World Assurance Co. Holdings Ltd., Sr. Unsec’d. Notes, | 30,158 | |||||
250 | 7.500%, 08/01/16 | 284,098 | ||||||
314,256 | ||||||||
| Turkey 1.3% | |||||||
TRY | 1,000 | Turkey Government Bond, | 630,112 | |||||
TRY | 1,500 | 8.050%, 10/12/11(b) | 951,114 | |||||
200 | Turkiye Garanti Bankasi As, Sr. Unsec’d. Notes, 144A, | 198,500 | ||||||
1,779,726 | ||||||||
| Ukraine 0.2% | |||||||
320 | NAK Naftogaz Ukraine, | 352,400 | ||||||
| United Kingdom 3.9% | |||||||
125 | BP Capital Markets PLC, Gtd. Notes, | 125,978 | ||||||
30 | 5.250%, 11/07/13 | 32,524 | ||||||
HSBC Holdings PLC, | ||||||||
250 | 5.100%, 04/05/21 | 257,311 | ||||||
125 | Sub. Notes, | 130,096 | ||||||
250 | 6.800%, 06/01/38 | 267,826 | ||||||
245 | Lloyds TSB Bank PLC, Gtd. Notes., 144A, MTN, | 251,073 | ||||||
150 | Royal Bank of Scotland Group PLC, Sr. Unsec’d. Notes, MTN, | 158,857 |
See Notes to Financial Statements.
12 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| FOREIGN BONDS (Continued) | |||||||
| United Kingdom (cont’d.) | |||||||
$ | 140 | Royal Bank of Scotland PLC (The), Gtd. Notes, Ser. 2, | $ | 144,026 | ||||
United Kingdom Treasury Bonds, | ||||||||
GBP | 425 | 4.250%, 06/07/32 | 718,521 | |||||
GBP | 190 | 4.750%, 12/07/38 | 347,483 | |||||
GBP | 1,220 | 4.750%, 12/07/30(c) | 2,201,840 | |||||
GBP | 95 | 6.000%, 12/07/28 | 197,961 | |||||
600 | XL Capital Finance Europe PLC, Gtd. Notes, | 621,208 | ||||||
5,454,704 | ||||||||
| Venezuela 0.1% | |||||||
40 | Petroleos de Venezuela SA, Sr. Unsec’d. Notes, Ser. 2014, | 30,160 | ||||||
110 | Republic of Venezuela, Sr. Unsec’d. Notes, | 79,860 | ||||||
110,020 | ||||||||
Total foreign bonds | 50,943,657 | |||||||
| ASSET-BACKED SECURITIES 12.7% | |||||||
| Non-Residential Mortgage-Backed Securities 6.1% | |||||||
293 | ARES CLO Funds (Cayman Islands), | 287,912 | ||||||
500 | Ser. 2011-16A, Class A, 144A, | 503,900 | ||||||
825 | Citibank Credit Card Issuance Trust, | 804,765 | ||||||
625 | Ser. 2005-C3, Class C3, | 620,110 | ||||||
1,000 | Ser. 2006-C1, Class C1, | 988,178 | ||||||
817 | Four Corners CLO (Cayman Islands), | 772,927 | ||||||
450 | Fuel Trust, Sec’d. Notes, 144A, | 459,499 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 13 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| ASSET-BACKED SECURITIES (Continued) | |||||||
| Non-Residential Mortgage-Backed Securities (cont’d.) | |||||||
$ | 84 | Gulf Stream Compass CLO Ltd. (Cayman Islands), | $ | 82,938 | ||||
485 | Katonah Ltd. (Cayman Islands), | 464,522 | ||||||
484 | Landmark CDO Ltd. (Cayman Islands), | 461,862 | ||||||
200 | MBNA Credit Card Master Note Trust, | 200,738 | ||||||
1,520 | Ser. 2004-C2, Class C2, | 1,507,577 | ||||||
400 | Ser. 2006-C1, Class C1, | 395,387 | ||||||
204 | Mountain Capital CLO Ltd. (Cayman Islands), | 199,542 | ||||||
395 | Ser. 2005-4A, Class A1L, 144A, | 378,726 | ||||||
118 | Railcar Leasing LLC, | 122,334 | ||||||
289 | Venture CDO Ltd. (Cayman Islands), | 282,065 | ||||||
8,532,982 | ||||||||
| Residential Mortgage-Backed Securities 6.6% | |||||||
367 | ACE Securities Corp., | 302,257 | ||||||
449 | Aegis Asset Backed Securities Trust, | 404,978 | ||||||
400 | Ameriquest Mortgage Securities, Inc., | 334,381 |
See Notes to Financial Statements.
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Principal Amount (000)# | Description | Value (Note 1) | ||||||
| ASSET-BACKED SECURITIES (Continued) | |||||||
| Residential Mortgage-Backed Securities (cont’d.) | |||||||
$ | 420 | Argent Securities, Inc., | $ | 346,729 | ||||
358 | Bear Stearns Asset Backed Securities Trust, | 297,088 | ||||||
326 | Ser. 2004-HE3, Class M2, | 285,851 | ||||||
266 | Chase Funding Loan Acquisition Trust, | 242,593 | ||||||
298 | Citigroup Mortgage Loan Trust, Inc., | 273,126 | ||||||
268 | Countrywide Asset-Backed Certificates, | 239,335 | ||||||
421 | Fremont Home Loan Trust, | 338,896 | ||||||
311 | GSAMP Trust, | 269,245 | ||||||
616 | Home Equity Asset Trust, | 483,312 | ||||||
90 | Ser. 2005-5, Class 2A2, | 89,108 | ||||||
400 | HSBC Home Equity Loan Trust, | 315,200 | ||||||
600 | Long Beach Mortgage Loan Trust, | 500,610 | ||||||
375 | Mastr Asset Backed Securities Trust, | 307,386 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 15 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| ASSET-BACKED SECURITIES (Continued) | |||||||
| Residential Mortgage-Backed Securities (cont’d.) | |||||||
$ | 300 | Merrill Lynch Mortgage Investors, Inc., | $ | 214,334 | ||||
421 | Morgan Stanley ABS Capital I, | 336,214 | ||||||
505 | Ser. 2004-NC1, Class M1, | 421,988 | ||||||
437 | Ser. 2004-OP1, Class M1, | 363,681 | ||||||
814 | Ser. 2004-WMC1, Class M1, | 716,906 | ||||||
331 | Ser. 2004-WMC2, Class M1, | 283,695 | ||||||
383 | Morgan Stanley Dean Witter Capital I, | 324,883 | ||||||
550 | New Century Home Equity Loan Trust, | 469,618 | ||||||
389 | Option One Mortgage Loan Trust, | 331,863 | ||||||
230 | Popular ABS Mortgage Pass-Through Trust, | 175,843 | ||||||
211 | Saxon Asset Securities Trust, | 149,795 | ||||||
106 | Structured Asset Investment Loan Trust, | 83,545 | ||||||
376 | Ser. 2004-8, Class A8, | 332,491 | ||||||
9,234,951 | ||||||||
Total asset-backed securities | 17,767,933 | |||||||
See Notes to Financial Statements.
16 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| BANK LOANS(a) 1.2% | |||||||
| Capital Goods 0.2% | |||||||
$ | 82 | Capital Safety Group Ltd., | $ | 74,074 | ||||
218 | 3.001%, 06/14/16 | 197,426 | ||||||
271,500 | ||||||||
| Foods 0.1% | |||||||
150 | Del Monte Foods Co., | 150,608 | ||||||
| Gaming 0.1% | |||||||
150 | CCM Merger, Inc., | 151,725 | ||||||
| Healthcare & Pharmaceutical 0.2% | |||||||
56 | HCA, Inc., | 55,572 | ||||||
134 | 3.557%, 03/31/17 | 133,665 | ||||||
39 | Mylan, Inc., | 39,254 | ||||||
228,491 | ||||||||
| Retailers 0.1% | |||||||
117 | Neiman Marcus Group, Inc., | 116,452 | ||||||
| Technology 0.3% | |||||||
25 | First Data Corp., | 23,950 | ||||||
237 | 4.307%, 03/31/18 | 224,770 | ||||||
6 | SunGard Data System, Inc., | 6,347 | ||||||
164 | 3.937%, 02/28/16 | 164,363 | ||||||
419,430 | ||||||||
| Telecommunications 0.2% | |||||||
299 | Fibertech Networks LLC, | 302,243 | ||||||
Total bank loans | 1,640,449 | |||||||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 17 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES 7.0% | |||||||
$ | 650 | Credit Suisse Mortgage Capital Certificates, | $ | 668,281 | ||||
600 | CS First Boston Mortgage Securities Corp., | 651,883 | ||||||
400 | CW Capital Cobalt Ltd., | 428,867 | ||||||
600 | Greenwich Capital Commercial Funding Corp., | 646,916 | ||||||
610 | Ser. 2007-GG9, Class A2, | 622,851 | ||||||
430 | GS Mortgage Securities Corp. II, | 441,094 | ||||||
449 | JPMorgan Chase Commercial Mortgage Securities Corp., | 450,293 | ||||||
1,000 | Ser. 2005-LDP5, Class A4, | 1,094,457 | ||||||
650 | Ser. 2007-LD12, Class A2, | 673,088 | ||||||
1,981 | LB-UBS Commercial Mortgage Trust, | 2,053,574 | ||||||
650 | Merrill Lynch Mortgage Trust, | 671,618 | ||||||
740 | Morgan Stanley Capital I, | 784,836 | ||||||
650 | Wachovia Bank Commercial Mortgage Trust, | 670,569 | ||||||
Total commercial mortgage-backed securities | 9,858,327 | |||||||
| CORPORATE BONDS 26.3% | |||||||
| Aerospace & Defense 0.1% | |||||||
75 | L-3 Communications Corp., Gtd. Notes, | 76,129 |
See Notes to Financial Statements.
18 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Airlines 0.4% | |||||||
$ | 100 | Continental Airlines, Inc., Pass-thru Certs., Ser. A, | $ | 97,500 | ||||
235 | Delta Air Lines, Inc., Pass-thru Certs., | 244,888 | ||||||
25 | Ser. 2A, | 25,000 | ||||||
25 | Ser. A, | 25,031 | ||||||
127 | United Airlines, Inc., Pass-thru Certs., Ser. 071A, | 128,498 | ||||||
520,917 | ||||||||
| Automotive 0.3% | |||||||
50 | BorgWarner, Inc., Sr. Unsec’d. Notes, | 50,471 | ||||||
225 | Ford Motor Credit Co. LLC, Sr. Unsec’d. Notes, | 239,137 | ||||||
75 | Harley-Davidson Funding Corp., Gtd. Notes, 144A, MTN, | 81,275 | ||||||
370,883 | ||||||||
| Banking 4.2% | |||||||
140 | American Express Co., Sr. Unsec’d. Notes, | 177,806 | ||||||
235 | Bank of America Corp., Jr. Sub. Notes, | 254,207 | ||||||
400 | Sub. Notes, | 423,741 | ||||||
200 | Bear Stearns Cos., Inc., (The), Sr. Unsec’d. Notes, | 234,989 | ||||||
170 | Capital One Capital V, | 183,600 | ||||||
115 | Capital One Financial Corp., Sub. Notes, | 128,004 | ||||||
600 | Citigroup, Inc., Sr. Unsec’d. Notes, | 659,264 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 19 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Banking (cont’d.) | |||||||
$ | 110 | 8.125%, 07/15/39 | $ | 141,586 | ||||
300 | Sub. Notes, | 319,454 | ||||||
205 | Goldman Sachs Group, Inc. (The), | 210,313 | ||||||
85 | Sub. Notes, | 88,097 | ||||||
450 | JPMorgan Chase & Co., | 494,429 | ||||||
30 | Sr. Unsec’d. Notes, | 29,169 | ||||||
150 | 6.000%, 01/15/18 | 166,924 | ||||||
90 | KeyCorp, Sr. Unsec’d. Notes, MTN, | 92,180 | ||||||
600 | Merrill Lynch & Co., Inc., Sr. Unsec’d. Notes, MTN, | 638,611 | ||||||
65 | 6.050%, 08/15/12 | 68,926 | ||||||
170 | Morgan Stanley, Sr. Unsec’d. Notes, MTN, | 176,697 | ||||||
50 | Santander Holdings USA, Inc., Sr. Unsec’d. Notes, | 51,608 | ||||||
245 | State Street Corp., | 257,260 | ||||||
300 | SunTrust Banks, Inc., Sr. Unsec’d. Notes, | 315,860 | ||||||
340 | US Bancorp, Jr. Sub. Notes, | 343,134 | ||||||
150 | USB Capital XIII Trust, | 160,159 | ||||||
210 | Wells Fargo & Co., Sr. Unsec’d. Notes, | 215,818 | ||||||
5,831,836 | ||||||||
See Notes to Financial Statements.
20 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Brokerage | |||||||
$ | 100 | Lehman Brothers Holdings, Inc., Sr. Unsec’d. Notes, MTN, | $ | 26,000 | ||||
| Building Materials & Construction 0.8% | |||||||
327 | CRH America, Inc., Gtd. Notes, | 333,219 | ||||||
110 | 8.125%, 07/15/18 | 131,752 | ||||||
260 | Masco Corp., Sr. Unsec’d. Notes, | 282,451 | ||||||
420 | Toll Brothers Finance Corp., Gtd. Notes, | 432,450 | ||||||
1,179,872 | ||||||||
| Cable 1.6% | |||||||
250 | Cequel Communications Holdings I LLC And Cequel Capital Corp., Sr. Unsec’d. Notes, 144A, | 268,125 | ||||||
850 | Charter Communications Operating LLC/Charter Communications Operating Capital, Sec’d. Notes, 144A, | 892,500 | ||||||
125 | DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., Gtd. Notes, | 126,912 | ||||||
295 | 4.750%, 10/01/14 | 319,920 | ||||||
195 | Time Warner Cable, Inc., Gtd. Notes, | 224,582 | ||||||
300 | 8.750%, 02/14/19 | 380,442 | ||||||
2,212,481 | ||||||||
| Capital Goods 0.6% | |||||||
145 | Caterpillar Financial Services Corp., Sr. Unsec’d. Notes, MTN, | 167,522 | ||||||
250 | ERAC USA Finance LLC, Gtd. Notes, 144A, | 284,341 | ||||||
100 | Textron, Inc., Sr. Unsec’d. Notes, | 106,032 | ||||||
200 | 7.250%, 10/01/19 | 232,874 | ||||||
790,769 | ||||||||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 21 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Chemicals 0.4% | |||||||
$ | 75 | Dow Chemical Co. (The), Sr. Unsec’d. Notes, | $ | 84,337 | ||||
250 | 7.600%, 05/15/14 | 290,213 | ||||||
152 | 9.400%, 05/15/39 | 230,537 | ||||||
25 | PPG Industries, Inc., Sr. Unsec’d. Notes, | 24,783 | ||||||
629,870 | ||||||||
| Consumer 0.3% | |||||||
1 | Realogy Corp., Gtd. Notes, 144A, | 1,260 | ||||||
150 | Sealy Mattress Co., Sr. Sec’d. Notes, 144A, | 168,750 | ||||||
250 | Service Corp. International, Sr. Unsec’d. Notes, | 271,875 | ||||||
441,885 | ||||||||
| Electric 1.0% | |||||||
250 | AES Corp. (The), Sr. Unsec’d. Notes, | 271,875 | ||||||
350 | Duke Energy Corp., Sr. Unsec’d. Notes, | 391,387 | ||||||
300 | Mirant Americas Generation LLC, Sr. Unsec’d. Notes, | 300,000 | ||||||
150 | North American Energy Alliance LLC / North American Energy Alliance Finance Corp., Sec’d. Notes, 144A, | 169,500 | ||||||
105 | Oncor Electric Delivery Co. LLC, Sr. Sec’d. Notes, | 121,859 | ||||||
100 | Peco Energy Co., First. Ref. Mtge., | 110,520 | ||||||
50 | Public Service Co. of New Mexico, Sr. Unsec’d. Notes, | 56,605 | ||||||
1,421,746 | ||||||||
See Notes to Financial Statements.
22 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Energy—Integrated 0.3% | |||||||
$ | 25 | Hess Corp., Sr. Unsec’d. Notes, | $ | 25,979 | ||||
295 | 7.000%, 02/15/14 | 335,563 | ||||||
361,542 | ||||||||
| Energy—Other 0.6% | |||||||
175 | Anadarko Petroleum Corp., Sr. Unsec’d. Notes, | 197,656 | ||||||
35 | 6.450%, 09/15/36 | 36,062 | ||||||
35 | Apache Corp., Sr. Unsec’d. Notes, | 33,560 | ||||||
300 | Forest Oil Corp., Gtd. Notes, | 334,500 | ||||||
200 | Pioneer Natural Resources Co., Sr. Unsec’d. Notes, | 217,632 | ||||||
819,410 | ||||||||
| Foods 0.8% | |||||||
250 | Anheuser-Busch InBev Worldwide, Inc., Gtd. Notes, | 267,544 | ||||||
225 | 8.000%, 11/15/39 | 307,154 | ||||||
50 | Archer-Daniels-Midland Co., Sr. Unsec’d. Notes, | 53,076 | ||||||
250 | ConAgra Foods, Inc., Sr. Unsec’d. Notes, | 289,068 | ||||||
75 | Kraft Foods, Inc., Sr. Unsec’d. Notes, | 83,657 | ||||||
75 | 6.875%, 01/26/39 | 86,849 | ||||||
90 | Tyson Foods, Inc., Gtd. Notes, | 100,575 | ||||||
1,187,923 | ||||||||
| Gaming 0.2% | |||||||
250 | MGM Resorts International, Sr. Sec’d. Notes, | 299,375 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 23 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Healthcare & Pharmaceutical 0.5% | |||||||
$ | 50 | Becton Dickinson and Co., Sr. Unsec’d. Notes, | $ | 48,207 | ||||
210 | HCA, Inc., Sec’d. Notes, PIK | 225,487 | ||||||
170 | Mylan, Inc., Gtd. Notes, 144A, | 186,150 | ||||||
200 | Watson Pharmaceuticals, Inc., Sr. Unsec’d. Notes, | 216,696 | ||||||
70 | Wyeth, Gtd. Notes, | 82,673 | ||||||
759,213 | ||||||||
| Healthcare Insurance 0.6% | |||||||
140 | Cigna Corp., Sr. Unsec’d. Notes, | 138,549 | ||||||
360 | Coventry Health Care, Inc., Sr. Unsec’d. Notes, | 384,621 | ||||||
15 | Health Care Service Corp., Sr. Unsec’d. Notes, 144A, | 15,233 | ||||||
235 | UnitedHealth Group, Inc., Sr. Unsec’d. Notes, | 261,429 | ||||||
799,832 | ||||||||
| Insurance 1.4% | |||||||
300 | American International Group, Inc., Sr. Unsec’d. Notes, | 317,015 | ||||||
75 | 6.400%, 12/15/20 | 82,052 | ||||||
100 | 8.250%, 08/15/18 | 118,698 | ||||||
140 | Chubb Corp., Jr. Sub. Notes, | 149,800 | ||||||
90 | Liberty Mutual Group, Inc., Sr. Unsec’d. Notes, 144A, | 87,134 | ||||||
30 | Lincoln National Corp., | 29,775 | ||||||
80 | Sr. Unsec’d. Notes, | 84,866 | ||||||
200 | 8.750%, 07/01/19 | 257,246 |
See Notes to Financial Statements.
24 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Insurance (cont’d.) | |||||||
$ | 100 | MetLife, Inc., Sr. Unsec’d. Notes, | $ | 122,294 | ||||
50 | Northwestern Mutual Life Insurance, Notes, 144A, | 53,752 | ||||||
100 | Progressive Corp. (The), Jr. Sub. Notes, | 105,750 | ||||||
210 | Teachers Insurance & Annuity Association of America, | 243,208 | ||||||
245 | Unum Group, Sr. Unsec’d. Notes, | 282,454 | ||||||
1,934,044 | ||||||||
| Lodging 0.9% | |||||||
250 | Felcor Lodging LP, Sr. Sec’d. Notes, | 286,875 | ||||||
420 | Host Hotels & Resorts LP, Gtd. Notes, Ser. O, | 429,975 | ||||||
300 | Starwood Hotels & Resorts Worldwide, Inc., Gtd. Notes, | 317,625 | ||||||
150 | Wyndham Worldwide Corp., Sr. Unsec’d. Notes, | 157,218 | ||||||
1,191,693 | ||||||||
| Media & Entertainment 3.1% | |||||||
500 | CBS Corp., Gtd. Notes, | 587,710 | ||||||
225 | Gannett Co., Inc., Sr. Unsec’d. Notes, | 225,281 | ||||||
100 | 6.375%, 04/01/12 | 103,375 | ||||||
130 | Historic TW, Inc., Gtd. Notes, | 141,754 | ||||||
100 | Lin Television Corp., Gtd. Notes, | 100,000 | ||||||
260 | Ser. B, | 260,000 | ||||||
100 | NBC Universal, Inc., Sr. Unsec’d. Notes, 144A, | 97,600 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 25 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Media & Entertainment (cont’d.) | |||||||
$ | 415 | News America, Inc., Gtd. Notes, | $ | 424,091 | ||||
120 | 6.150%, 02/15/41, 144A | 122,270 | ||||||
60 | 6.900%, 08/15/39 | 67,301 | ||||||
250 | Nielsen Finance LLC / Nielsen Finance Co., Gtd. Notes, | 295,000 | ||||||
600 | R.R. Donnelley & Sons Co., Sr. Unsec’d. Notes, | 626,499 | ||||||
450 | 8.600%, 08/15/16 | 523,112 | ||||||
150 | Rainbow National Services LLC, Gtd. Notes, 144A, | 150,187 | ||||||
190 | 10.375%, 09/01/14 | 197,600 | ||||||
99 | Time Warner Cos., Inc., Gtd. Notes, | 110,959 | ||||||
55 | Viacom, Inc., Sr. Unsec’d. Notes, | 59,070 | ||||||
75 | 6.750%, 10/05/37 | 82,520 | ||||||
90 | 6.875%, 04/30/36 | 100,771 | ||||||
4,275,100 | ||||||||
| Metals 0.8% | |||||||
25 | Alcoa, Inc., Sr. Unsec’d. Notes, | 25,384 | ||||||
300 | Metals USA, Inc., Sr. Sec’d. Notes, | 318,375 | ||||||
200 | Newmont Mining Corp., Gtd. Notes, | 215,591 | ||||||
400 | Steel Dynamics, Inc., Gtd. Notes, | 413,000 | ||||||
200 | United States Steel Corp., Sr. Unsec’d. Notes, | 210,250 | ||||||
1,182,600 | ||||||||
| Non-Captive Finance 1.4% | |||||||
350 | CIT Group, Inc., Sec’d. Notes, | 352,844 | ||||||
200 | General Electric Capital Corp., | 165,941 |
See Notes to Financial Statements.
26 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Non-Captive Finance (cont’d.) | |||||||
$ | 100 | Sub. Notes, | $ | 103,763 | ||||
200 | International Lease Finance Corp., | 212,000 | ||||||
250 | Sr. Unsec’d. Notes, MTN, | 250,700 | ||||||
55 | SLM Corp., | 58,319 | ||||||
510 | Sr. Unsec’d. Notes, MTN, | 528,214 | ||||||
60 | 8.000%, 03/25/20 | 66,440 | ||||||
225 | 8.450%, 06/15/18 | 255,375 | ||||||
1,993,596 | ||||||||
| Packaging 0.5% | |||||||
600 | Sealed Air Corp., Sr. Unsec’d. Notes, 144A, | 630,801 | ||||||
| Paper 0.7% | |||||||
75 | International Paper Co., Sr. Unsec’d. Notes, | 85,641 | ||||||
200 | 7.950%, 06/15/18 | 243,121 | ||||||
450 | MeadWestvaco Corp., Sr. Unsec’d. Notes, | 495,807 | ||||||
200 | Verso Paper Holdings LLC / Verso Paper, Inc., | 218,000 | ||||||
1,042,569 | ||||||||
| Pipelines & Other 0.4% | |||||||
200 | CenterPoint Energy Resources Corp., Sr. Unsec’d. Notes, | 220,196 | ||||||
100 | Kinder Morgan Energy Partners LP, Sr. Unsec’d. Notes, | 106,169 | ||||||
170 | 7.300%, 08/15/33 | 194,880 | ||||||
75 | Northwest Pipeline GP, Sr. Unsec’d. Notes, | 84,945 | ||||||
606,190 | ||||||||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 27 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Real Estate Investment Trusts 1.2% | |||||||
$ | 600 | Duke Realty LP, Sr. Unsec’d. Notes, | $ | 606,904 | ||||
250 | Hospitality Properties Trust, Sr. Unsec’d. Notes, | 281,103 | ||||||
100 | Post Apartment Homes LP, Sr. Unsec’d. Notes, | 103,395 | ||||||
200 | Senior Housing Properties Trust, Sr. Unsec’d. Notes, | 208,512 | ||||||
95 | Simon Property Group LP, Sr. Unsec’d. Notes, | 101,127 | ||||||
125 | 6.750%, 05/15/14 | 141,201 | ||||||
200 | WEA Finance LLC/WT Finance Aust Pty Ltd., Gtd. Notes, 144A, | 221,857 | ||||||
1,664,099 | ||||||||
| Retailers 0.3% | |||||||
200 | CVS Caremark Corp., Sr. Unsec’d. Notes, | 207,836 | ||||||
75 | Home Depot, Inc. (The), Sr. Unsec’d. Notes, | 76,908 | ||||||
75 | Wal-Mart Stores, Inc., Sr. Unsec’d. Notes, | 70,809 | ||||||
100 | 5.625%, 04/15/41 | 103,320 | ||||||
458,873 | ||||||||
| Technology 0.7% | |||||||
250 | Amphenol Corp., Sr. Unsec’d. Notes, | 271,190 | ||||||
50 | Arrow Electronics, Inc., Sr. Unsec’d. Notes, | 50,218 | ||||||
50 | Fiserv, Inc., Gtd. Notes, | 50,317 | ||||||
250 | SunGard Data Systems, Inc., | 262,500 | ||||||
150 | Sr. Unsec’d. Notes, 144A, | 156,375 | ||||||
225 | Xerox Corp., Sr. Unsec’d. Notes, | 238,653 | ||||||
1,029,253 | ||||||||
See Notes to Financial Statements.
28 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| CORPORATE BONDS (Continued) | |||||||
| Telecommunications 1.6% | |||||||
$ | 240 | AT&T, Inc., Sr. Unsec’d. Notes, | $ | 261,538 | ||||
300 | CC Holdings GS V LLC/Crown Castle GS III Corp., | 331,500 | ||||||
465 | CenturyLink, Inc., Sr. Unsec’d. Notes, | 494,985 | ||||||
Qwest Corp., Sr. Unsec’d. Notes, | ||||||||
250 | 7.875%, 09/01/11 | 255,625 | ||||||
200 | 8.375%, 05/01/16 | 237,500 | ||||||
200 | 8.875%, 03/15/12 | 212,500 | ||||||
150 | Sprint Capital Corp., Gtd. Notes, | 158,437 | ||||||
150 | Verizon Communications, Inc., Sr. Unsec’d. Notes, | 153,266 | ||||||
85 | 6.400%, 02/15/38 | 92,016 | ||||||
2,197,367 | ||||||||
| Tobacco 0.6% | |||||||
250 | Altria Group, Inc., Gtd. Notes, | 359,008 | ||||||
80 | Lorillard Tobacco Co., Gtd. Notes, | 94,656 | ||||||
300 | Reynolds American, Inc., Gtd. Notes, | 346,043 | ||||||
799,707 | ||||||||
Total corporate bonds | 36,735,575 | |||||||
| MUNICIPAL BONDS 2.6% |
| ||||||
75 | California St. Build America Bonds, | 85,595 | ||||||
115 | California St. Build America Bonds, Taxable Var. Purp. GO,, | 128,600 | ||||||
100 | Chicago Ill. Brd. Ed., Build America Bonds, Taxable Ser. E, | 93,239 | ||||||
60 | City of Chicago IL, O’Hare International Arpt., Build America Bonds, | 59,026 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 29 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| MUNICIPAL BONDS (Continued) | |||||||
$ | 275 | Connecticut St. Spl. Tax Obligation Rev., Build America Bonds, | $ | 274,967 | ||||
175 | District of Columbia Income Tax Rev., Build America Bonds, | 178,099 | ||||||
175 | District of Columbia Wtr. & Sewr. Auth. Pub. Util. Rev., Taxable, Build America Bonds, | 171,909 | ||||||
125 | Metropolitan Government of Nashville & Davidson Cnty., Convention Center Auth., Build America Bonds, | 126,970 | ||||||
200 | New Jersey St. Tpk. Auth. Tpk. Rev., Build America Bonds, Taxable, Issuer Subsidy Rev., | 224,910 | ||||||
100 | Ser. F, | 116,168 | ||||||
250 | New York, NY, Build America Bonds, | 258,822 | ||||||
165 | Ohio St. Univ. Gen. Rcpts., Build America Bonds, | 156,532 | ||||||
500 | Ohio St. Wtr. Dev. Auth. Wtr. Pollutn. Ctl. Rev. Taxable, Build America Bonds, | 483,150 | ||||||
295 | Pennsylvania St. Tpk. Commission, Tpk. Rev., Build America Bonds, | 272,548 | ||||||
75 | Regional Transn. Dist. Colo. Sales Tax Rev., Build America Bonds, Ser. B, | 74,587 | ||||||
250 | Salt River Project Agricultural Improvement & Pwr. Dist., Elec. Sys. Rev., Build America Bonds, | 230,045 | ||||||
150 | Texas St. Transn. Commn. Rev. Taxable First Tier. | 152,646 | ||||||
150 | University of Calif. Rev. Build America Bonds, | 149,343 | ||||||
250 | University TX, Perm. Univ. Build America Bonds, | 241,855 |
See Notes to Financial Statements.
30 | Visit our website at www.prudentialfunds.com |
Principal Amount (000)# | Description | Value (Note 1) | ||||||
| MUNICIPAL BONDS (Continued) | |||||||
$ | 150 | Utah St. Build America Bonds, Ser. D, GO, | $ | 155,477 | ||||
Total municipal bonds | 3,634,488 | |||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS 3.7% |
| ||||||
550 | Federal Home Loan Banks, | 552,007 | ||||||
4,500 | Federal National Mortgage Association, | 4,630,077 | ||||||
Total U.S. government agency obligations | 5,182,084 | |||||||
| U.S. TREASURY SECURITIES 1.5% |
| ||||||
U.S. Treasury Notes, | ||||||||
300 | 1.125%, 12/15/11(c) | 301,816 | ||||||
20 | 1.250%, 04/15/14 | 20,142 | ||||||
115 | 2.000%, 04/30/16 | 115,135 | ||||||
50 | 2.125%, 02/29/16 | 50,523 | ||||||
45 | 2.250%, 03/31/16 | 45,661 | ||||||
1,460 | 3.625%, 02/15/21 | 1,499,695 | ||||||
Total U.S. treasury securities | 2,032,972 | |||||||
| PREFERRED STOCK 0.1% |
| ||||||
Shares | ||||||||
| Banking |
| ||||||
4,000 | Citigroup Capital XIII | 111,040 | ||||||
Total long-term investments | 127,906,525 | |||||||
| SHORT-TERM INVESTMENTS 8.5% |
| ||||||
| Affiliated Money Market Mutual Fund 7.9% |
| ||||||
10,984,268 | Prudential Investment Portfolios 2 - Prudential Core | 10,984,268 | ||||||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 31 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Notional Amount (000)# | Description | Value (Note 1) | ||||||
| OPTIONS PURCHASED(h) 0.6% |
| ||||||
| Put Options |
| ||||||
$ | 2,500 | United States Dollar/Brazilian Real, | $ | 358,479 | ||||
2,510 | United States Dollar/Indian Rubee, | 131,030 | ||||||
2,576 | United States Dollar/New Turkish Lira, | 104,925 | ||||||
2,582 | United States Dollar/South African Rand, | 266,652 | ||||||
Total options purchased | 861,086 | |||||||
Total short-term investments | 11,845,354 | |||||||
Total Investments(i) 100.0% | 139,751,879 | |||||||
Other assets in excess of liabilities(j) | 54,797 | |||||||
Net Assets 100.0% | $ | 139,806,676 | ||||||
The following abbreviations are used in portfolio descriptions:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
RegS—Regulation S. Security was purchased pursuant to Regulation S and may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
GO—General Obligation
CDO—Collateralized Debt Obligation
CLO—Collateralized Loan Obligation
MTN—Medium Term Note
PIK—Payment-In Kind
TBA—To Be Announced
ARS—Argentine Peso
AUD—Australian Dollar
BRL—Brazilian Real
CAD—Canadian Dollar
CHF—Swiss Franc
CLP—Chilean Peso
CNY—Chinese Yuan Renminbi
COP—Colombian Peso
See Notes to Financial Statements.
32 | Visit our website at www.prudentialfunds.com |
CZK—Czech Koruna
DKK—Danish Krone
EUR—Euro
GBP—British Pound
HKD—Hong Kong Dollar
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli New Shekel
INR—Indian Rupee
JPY—Japanese Yen
KRW—South Korean Won
MXN—Mexican Nuevo Peso
MYR—Malaysian Ringgit
NOK—Norwegian Krone
NZD—New Zealand Dollar
PEN—Peruvian Nuevo Sol
PHP—Philippine Peso
PLN—Polish Zloty
RON—Romanian New Lei
RUB—Russian Rouble
SEK—Swedish Krona
SGD—Singapore Dollar
THB—Thai Baht
TRY—Turkish Lira
TWD—New Taiwan Dollar
ZAR—South African Rand
BBSW—Australian Bank Bill Swap Reference Rate
BUBOR—Budapest Interbank Offered Rate
EURIBOR—Euro Interbank Offered Rate
JIBAR—Johannesburg Interbank Agreed Rate
HIBOR—Hong Kong Interbank Offered Rate
LIBOR—London Interbank Offered Rate
PRIBOR—Prague Interbank Offered Rate
SOR—Swap Offer Rate
STIBOR—Stockholm Interbank Offered Rate
WIBOR—Warsaw Interbank Offered Rate
# | Principal and notional amount is shown in U.S. dollars unless otherwise stated. |
(a) | Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2011. |
(b) | Represents a zero coupon bond. Rate shown reflects the effective yield at April 30, 2011. |
(c) | Represents security, or a portion thereof, segregated as collateral for futures contracts. |
(d) | Indicates a security that has been deemed illiquid. |
(e) | Indicates a restricted security, the aggregate original cost of such securities is $1,904,242. The aggregate value of $2,078,661 is approximately 1.5% of net assets. |
(f) | Represents issuer in default on interest payments and/or principal repayment; non-income producing security. |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 33 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
(g) | Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund. |
(h) | Non-income producing security. |
(i) | As of April 30, 2011, two securities representing $703,442 and 0.5% of net assets were fair valued in accordance with the policies adopted by the Board of Directors. |
(j) | Other assets in excess of liabilities includes net unrealized appreciation (depreciation) on the following derivative contracts held at reporting period end: |
Open futures contracts outstanding as of April 30, 2011:
Number of Contracts | Type | Expiration Date | Value at Trade Date | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||||
Long Positions: | ||||||||||||||||||||
2 | JPN 10 Year Bond | Jun. 2011 | $ | 3,447,806 | $ | 3,453,122 | $ | 5,316 | ||||||||||||
5 | Euro-Buxl 30 Year | Jun. 2011 | 742,110 | 767,977 | 25,867 | |||||||||||||||
5 | AUST. 10 Year Bond | Jun. 2011 | 565,981 | 571,480 | 5,499 | |||||||||||||||
7 | 5 Year U.S. Treasury Notes | Jun. 2011 | 829,290 | 829,281 | (9 | ) | ||||||||||||||
10 | Long Gilt | Jun. 2011 | 1,939,244 | 1,990,379 | 51,135 | |||||||||||||||
13 | Euro-Bund | Jun. 2011 | 2,349,040 | 2,366,822 | 17,782 | |||||||||||||||
15 | U.S. Long Bond | Jun. 2011 | 1,774,721 | 1,835,625 | 60,904 | |||||||||||||||
16 | Euro-Schatz | Jun. 2011 | 2,549,671 | 2,542,961 | (6,710 | ) | ||||||||||||||
20 | Euro-BTP Italian Gov’t. Bond | Jun. 2011 | 3,175,730 | 3,233,356 | 57,626 | |||||||||||||||
23 | CAN 10 Year Bond | Jun. 2011 | 2,913,379 | 2,955,980 | 42,601 | |||||||||||||||
65 | Euro-BOBL | Jun. 2011 | 11,095,681 | 11,094,720 | (961 | ) | ||||||||||||||
Short Positions: | ||||||||||||||||||||
8 | U.S. Ultra Bond | Jun. 2011 | 1,000,990 | 1,007,000 | (6,010 | ) | ||||||||||||||
38 | 2 Year U.S. Treasury Notes | Jun. 2011 | 8,310,732 | 8,326,750 | (16,018 | ) | ||||||||||||||
42 | 10 Year U.S. Treasury Notes | Jun. 2011 | 5,055,620 | 5,087,906 | (32,286 | ) | ||||||||||||||
$ | 204,736 | |||||||||||||||||||
Forward foreign currency exchange contracts outstanding as of April 30, 2011:
Purchase Contracts | Counterparty | Notional Amount | Value at Settlement Date Payable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Argentine Peso, | ||||||||||||||||||
Expiring 01/27/12 | Citibank NA | ARS | 845,025 | $ | 190,000 | $ | 189,810 | $ | (190 | ) | ||||||||
Expiring 01/27/12 | Citibank NA | ARS | 4,147,160 | 946,300 | 931,536 | (14,764 | ) | |||||||||||
Australian Dollar, | ||||||||||||||||||
Expiring 05/23/11 | Citibank NA | AUD | 2,785,488 | 2,927,523 | 3,044,060 | 116,537 |
See Notes to Financial Statements.
34 | Visit our website at www.prudentialfunds.com |
Purchase Contracts | Counterparty | Notional Amount | Value at Settlement Date Payable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Brazilian Real, | ||||||||||||||||||
Expiring 01/19/12 | Citibank NA | BRL | 341,757 | $ | 190,500 | $ | 207,683 | $ | 17,183 | |||||||||
Expiring 01/19/12 | UBS AG | BRL | 916,910 | 507,000 | 557,198 | 50,198 | ||||||||||||
Expiring 06/02/11 | Citibank NA | BRL | 766,135 | 453,200 | 486,026 | 32,826 | ||||||||||||
Expiring 06/02/11 | Citibank NA | BRL | 1,099,685 | 658,100 | 697,627 | 39,527 | ||||||||||||
Expiring 06/02/11 | Citibank NA | BRL | 1,693,536 | 1,033,400 | 1,074,359 | 40,959 | ||||||||||||
Expiring 06/02/11 | UBS AG | BRL | 679,052 | 431,500 | 430,782 | (718 | ) | |||||||||||
Expiring 06/02/11 | UBS AG | BRL | 1,097,360 | 651,600 | 696,152 | 44,552 | ||||||||||||
British Pound, | ||||||||||||||||||
Expiring 05/25/11 | JPMorgan | GBP | 164,972 | 275,000 | 275,468 | 468 | ||||||||||||
Expiring 05/25/11 | Morgan Stanley | GBP | 2,299,696 | 3,748,111 | 3,839,995 | 91,884 | ||||||||||||
Canadian Dollar, | ||||||||||||||||||
Expiring 05/20/11 | JPMorgan | CAD | 5,143,115 | 5,341,631 | 5,433,308 | 91,677 | ||||||||||||
Expiring 05/20/11 | Morgan Stanley | CAD | 513,430 | 536,200 | 542,400 | 6,200 | ||||||||||||
Chilean Peso, | ||||||||||||||||||
Expiring 06/08/11 | Citibank NA | CLP | 127,332,000 | 262,000 | 275,226 | 13,226 | ||||||||||||
Expiring 06/08/11 | Citibank NA | CLP | 128,609,800 | 265,000 | 277,988 | 12,988 | ||||||||||||
Expiring 06/08/11 | Citibank NA | CLP | 187,249,950 | 387,000 | 404,738 | 17,738 | ||||||||||||
Expiring 06/08/11 | UBS AG | CLP | 154,283,525 | 324,500 | 333,482 | 8,982 | ||||||||||||
Expiring 06/08/11 | UBS AG | CLP | 220,330,250 | 459,500 | 476,241 | 16,741 | ||||||||||||
Chinese Yuan Renminbi, | ||||||||||||||||||
Expiring 07/06/11 | Morgan Stanley | CNY | 5,368,324 | 808,300 | 832,352 | 24,052 | ||||||||||||
Expiring 07/06/11 | UBS AG | CNY | 3,916,863 | 587,500 | 607,305 | 19,805 | ||||||||||||
Expiring 07/06/11 | UBS AG | CNY | 6,337,438 | 949,500 | 982,612 | 33,112 | ||||||||||||
Expiring 07/06/11 | UBS AG | CNY | 8,413,973 | 1,257,600 | 1,304,576 | 46,976 | ||||||||||||
Expiring 07/06/11 | UBS AG | CNY | 8,567,640 | 1,284,600 | 1,328,402 | 43,802 | ||||||||||||
Expiring 03/26/12 | UBS AG | CNY | 16,977,599 | 2,641,400 | 2,685,755 | 44,355 | ||||||||||||
Colombian Peso, | ||||||||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 351,364,000 | 188,500 | 197,588 | 9,088 | ||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 362,175,690 | 194,000 | 203,668 | 9,668 | ||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 466,925,000 | 250,000 | 262,574 | 12,574 | ||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 477,096,500 | 251,600 | 268,294 | 16,694 | ||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 605,052,500 | 325,000 | 340,249 | 15,249 | ||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 612,111,600 | 324,900 | 344,219 | 19,319 | ||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 757,900,500 | 393,000 | 426,203 | 33,203 | ||||||||||||
Expiring 12/06/11 | Citibank NA | COP | 861,840,000 | 456,000 | 484,653 | 28,653 | ||||||||||||
Expiring 12/06/11 | UBS AG | COP | 476,440,500 | 254,000 | 267,925 | 13,925 | ||||||||||||
Expiring 12/06/11 | UBS AG | COP | 607,136,750 | 331,000 | 341,422 | 10,422 | ||||||||||||
Expiring 12/06/11 | UBS AG | COP | 611,195,750 | 324,500 | 343,704 | 19,204 | ||||||||||||
Expiring 12/06/11 | UBS AG | COP | 612,358,400 | 326,000 | 344,358 | 18,358 | ||||||||||||
Expiring 12/06/11 | UBS AG | COP | 854,220,000 | 460,000 | 480,368 | 20,368 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 35 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Purchase Contracts | Counterparty | Notional Amount | Value at Settlement Date Payable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Czech Koruna, | ||||||||||||||||||
Expiring 05/24/11 | Citibank NA | CZK | 57,430,627 | $ | 3,372,398 | $ | 3,517,283 | $ | 144,885 | |||||||||
Danish Krone, | ||||||||||||||||||
Expiring 05/24/11 | Morgan Stanley | DKK | 2,905,788 | 553,284 | 576,798 | 23,514 | ||||||||||||
Euro, | ||||||||||||||||||
Expiring 05/24/11 | Morgan Stanley | EUR | 279,000 | 402,130 | 412,958 | 10,828 | ||||||||||||
Expiring 05/25/11 | Citibank NA | EUR | 464,683 | 670,700 | 687,773 | 17,073 | ||||||||||||
Expiring 05/25/11 | Citibank NA | EUR | 470,166 | 678,003 | 695,889 | 17,886 | ||||||||||||
Expiring 05/25/11 | Goldman Sachs | EUR | 8,003,859 | 11,447,159 | 11,846,454 | 399,295 | ||||||||||||
Expiring 05/25/11 | JPMorgan | EUR | 471,000 | 696,181 | 697,124 | 943 | ||||||||||||
Expiring 05/25/11 | Morgan Stanley | EUR | 375,318 | 536,200 | 555,505 | 19,305 | ||||||||||||
Expiring 05/25/11 | Morgan Stanley | EUR | 945,628 | 1,354,052 | 1,399,617 | 45,565 | ||||||||||||
Expiring 05/25/11 | UBS AG | EUR | 78,128 | 113,766 | 115,637 | 1,871 | ||||||||||||
Expiring 05/25/11 | UBS AG | EUR | 464,428 | 688,400 | 687,397 | (1,003 | ) | |||||||||||
Expiring 07/06/11 | JPMorgan | EUR | 367,440 | 473,100 | 543,189 | 70,089 | ||||||||||||
Hungarian Forint, | ||||||||||||||||||
Expiring 05/24/11 | Citibank NA | HUF | 74,785,671 | 401,645 | 418,156 | 16,511 | ||||||||||||
Expiring 05/24/11 | Goldman Sachs | HUF | 417,052,287 | 2,198,599 | 2,331,901 | 133,302 | ||||||||||||
Expiring 05/24/11 | JPMorgan | HUF | 112,220,715 | 603,200 | 627,470 | 24,270 | ||||||||||||
Indian Rupee, | ||||||||||||||||||
Expiring 06/29/11 | Goldman Sachs | INR | 41,921,443 | 926,441 | 936,243 | 9,802 | ||||||||||||
Indonesian Rupiah, | ||||||||||||||||||
Expiring 06/30/11 | Citibank NA | IDR | 16,768,318,260 | 1,919,011 | 1,936,070 | 17,059 | ||||||||||||
Expiring 06/30/11 | UBS AG | IDR | 5,749,134,000 | 661,200 | 663,795 | 2,595 | ||||||||||||
Israeli New Shekel, | ||||||||||||||||||
Expiring 05/27/11 | Citibank NA | ILS | 6,740,050 | 1,963,926 | 1,991,114 | 27,188 | ||||||||||||
Japanese Yen, | ||||||||||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 18,962,675 | 231,700 | 233,801 | 2,101 | ||||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 36,932,950 | 454,400 | 455,365 | 965 | ||||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 41,118,018 | 497,400 | 506,965 | 9,565 | ||||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 55,263,040 | 672,200 | 681,367 | 9,167 | ||||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 55,828,207 | 688,400 | 688,335 | (65 | ) | |||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 65,130,158 | 796,900 | 803,023 | 6,123 | ||||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 1,225,758,194 | 14,875,724 | 15,113,008 | 237,284 | ||||||||||||
Expiring 05/25/11 | UBS AG | JPY | 54,334,125 | 657,147 | 669,913 | 12,766 | ||||||||||||
Malaysian Ringgit, | ||||||||||||||||||
Expiring 07/11/11 | Goldman Sachs | MYR | 4,351,616 | 1,434,520 | 1,461,399 | 26,879 | ||||||||||||
Expiring 07/11/11 | UBS AG | MYR | 1,436,929 | 480,900 | 482,562 | 1,662 | ||||||||||||
Expiring 07/11/11 | UBS AG | MYR | 2,052,740 | 685,000 | 689,369 | 4,369 |
See Notes to Financial Statements.
36 | Visit our website at www.prudentialfunds.com |
Purchase Contracts | Counterparty | Notional Amount | Value at Settlement Date Payable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Mexican Nuevo Peso, | ||||||||||||||||||
Expiring 05/20/11 | Citibank NA | MXN | 15,440,153 | $ | 1,306,034 | $ | 1,338,779 | $ | 32,745 | |||||||||
Expiring 05/20/11 | Morgan Stanley | MXN | 4,945,507 | 424,938 | 428,813 | 3,875 | ||||||||||||
New Taiwan Dollar, | ||||||||||||||||||
Expiring 06/14/11 | UBS AG | TWD | 38,605,318 | 1,323,800 | 1,348,575 | 24,775 | ||||||||||||
Expiring 12/09/11 | Morgan Stanley | TWD | 37,450,881 | 1,288,300 | 1,314,721 | 26,421 | ||||||||||||
Expiring 12/09/11 | Morgan Stanley | TWD | 55,590,718 | 1,891,162 | 1,951,523 | 60,361 | ||||||||||||
Expiring 12/09/11 | UBS AG | TWD | 11,239,083 | 394,700 | 394,550 | (150 | ) | |||||||||||
Expiring 12/09/11 | UBS AG | TWD | 12,693,501 | 443,000 | 445,608 | 2,608 | ||||||||||||
New Zealand Dollar, | ||||||||||||||||||
Expiring 05/23/11 | Citibank NA | NZD | 2,582,681 | 2,052,302 | 2,086,713 | 34,411 | ||||||||||||
Expiring 05/23/11 | Morgan Stanley | NZD | 422,376 | 335,300 | 341,264 | 5,964 | ||||||||||||
Norwegian Krone, | ||||||||||||||||||
Expiring 05/24/11 | UBS AG | NOK | 20,256,241 | 3,680,813 | 3,855,367 | 174,554 | ||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||
Expiring 06/07/11 | Citibank NA | PEN | 2,790,380 | 1,005,180 | 983,146 | (22,034 | ) | |||||||||||
Philippine Peso, | ||||||||||||||||||
Expiring 05/09/11 | Goldman Sachs | PHP | 16,583,514 | 383,700 | 387,185 | 3,485 | ||||||||||||
Expiring 05/09/11 | UBS AG | PHP | 16,683,885 | 384,200 | 389,528 | 5,328 | ||||||||||||
Expiring 06/03/11 | Citibank NA | PHP | 44,642,004 | 1,027,079 | 1,040,849 | 13,770 | ||||||||||||
Expiring 06/03/11 | UBS AG | PHP | 11,778,250 | 275,000 | 274,615 | (385 | ) | |||||||||||
Polish Zloty, | ||||||||||||||||||
Expiring 05/24/11 | JPMorgan | PLN | 922,036 | 344,900 | 346,469 | 1,569 | ||||||||||||
Expiring 05/24/11 | JPMorgan | PLN | 1,110,803 | 408,900 | 417,401 | 8,501 | ||||||||||||
Expiring 05/24/11 | JPMorgan | PLN | 8,096,570 | 2,873,437 | 3,042,405 | 168,968 | ||||||||||||
Expiring 05/24/11 | Citibank NA | PLN | 2,628,940 | 958,432 | 987,863 | 29,431 | ||||||||||||
Romanian New Lei, | ||||||||||||||||||
Expiring 05/24/11 | Citibank NA | RON | 767,724 | 274,000 | 278,182 | 4,182 | ||||||||||||
Expiring 05/24/11 | Citibank NA | RON | 3,808,892 | 1,317,300 | 1,380,135 | 62,835 | ||||||||||||
Expiring 05/24/11 | UBS AG | RON | 766,144 | 274,000 | 277,609 | 3,609 | ||||||||||||
Russian Rouble, | ||||||||||||||||||
Expiring 06/06/11 | Citibank NA | RUB | 7,386,269 | 243,993 | 268,645 | 24,652 | ||||||||||||
Expiring 06/06/11 | Citibank NA | RUB | 7,589,600 | 265,000 | 276,041 | 11,041 | ||||||||||||
Expiring 06/06/11 | Citibank NA | RUB | 12,034,804 | 382,300 | 437,717 | 55,417 | ||||||||||||
Expiring 06/06/11 | Citibank NA | RUB | 20,095,276 | 644,100 | 730,883 | 86,783 | ||||||||||||
Expiring 06/06/11 | Citibank NA | RUB | 61,554,283 | 1,936,400 | 2,238,785 | 302,385 | ||||||||||||
Expiring 07/08/11 | Citibank NA | RUB | 13,275,240 | 452,000 | 481,374 | 29,374 | ||||||||||||
Expiring 07/08/11 | Goldman Sachs | RUB | 7,386,269 | 242,610 | 267,834 | 25,224 | ||||||||||||
Expiring 07/08/11 | Goldman Sachs | RUB | 18,834,102 | 649,900 | 682,944 | 33,044 | ||||||||||||
Expiring 07/28/11 | Citibank NA | RUB | 11,457,329 | 413,100 | 414,707 | 1,607 | ||||||||||||
Expiring 07/28/11 | Citibank NA | RUB | 11,516,224 | 412,000 | 416,839 | 4,839 | ||||||||||||
Expiring 08/08/11 | Citibank NA | RUB | 18,729,538 | 662,500 | 677,183 | 14,683 | ||||||||||||
Expiring 08/08/11 | Morgan Stanley | RUB | 7,386,269 | 242,252 | 267,057 | 24,805 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 37 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Purchase Contracts | Counterparty | Notional Amount | Value at Settlement Date Payable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Singapore Dollar, | ||||||||||||||||||
Expiring 05/23/11 | Goldman Sachs | SGD | 4,202,627 | $ | 3,381,033 | $ | 3,433,336 | $ | 52,303 | |||||||||
Expiring 05/23/11 | JPMorgan | SGD | 628,939 | 503,782 | 513,811 | 10,029 | ||||||||||||
South African Rand, | ||||||||||||||||||
Expiring 05/27/11 | Citibank NA | ZAR | 9,516,370 | 1,406,804 | 1,443,627 | 36,823 | ||||||||||||
South Korean Won, | ||||||||||||||||||
Expiring 07/21/11 | Morgan Stanley | KRW | 1,680,645,441 | 1,536,520 | 1,559,595 | 23,075 | ||||||||||||
Expiring 07/21/11 | UBS AG | KRW | 296,862,500 | 275,000 | 275,481 | 481 | ||||||||||||
Expiring 07/21/11 | UBS AG | KRW | 2,635,389,141 | 2,408,112 | 2,445,573 | 37,461 | ||||||||||||
Swedish Krona, | ||||||||||||||||||
Expiring 05/24/11 | Goldman Sachs | SEK | 18,879,808 | 2,986,575 | 3,120,469 | 133,894 | ||||||||||||
Expiring 05/24/11 | JPMorgan | SEK | 5,003,278 | 804,800 | 826,946 | 22,146 | ||||||||||||
Expiring 05/25/11 | Morgan Stanley | SEK | 3,724,680 | 606,800 | 615,584 | 8,784 | ||||||||||||
Swiss Franc, | ||||||||||||||||||
Expiring 05/24/11 | Morgan Stanley | CHF | 4,152,244 | 4,621,759 | 4,800,992 | 179,233 | ||||||||||||
Expiring 05/24/11 | UBS AG | CHF | 241,265 | 274,000 | 278,960 | 4,960 | ||||||||||||
Expiring 05/24/11 | UBS AG | CHF | 476,980 | 550,800 | 551,504 | 704 | ||||||||||||
Thai Baht, | ||||||||||||||||||
Expiring 05/09/11 | UBS AG | THB | 11,808,387 | 384,200 | 395,353 | 11,153 | ||||||||||||
Expiring 05/09/11 | UBS AG | THB | 15,541,756 | 506,700 | 520,348 | 13,648 | ||||||||||||
Expiring 05/09/11 | UBS AG | THB | 15,694,882 | 517,300 | 525,475 | 8,175 | ||||||||||||
Expiring 05/09/11 | UBS AG | THB | 15,806,560 | 513,200 | 529,214 | 16,014 | ||||||||||||
Expiring 05/09/11 | UBS AG | THB | 19,811,461 | 651,800 | 663,301 | 11,501 | ||||||||||||
Turkish Lira, | ||||||||||||||||||
Expiring 05/27/11 | Goldman Sachs | TRY | 4,141,329 | 2,703,606 | 2,709,834 | 6,228 | ||||||||||||
$ | 136,174,574 | $ | 140,326,498 | $ | 4,151,924 | |||||||||||||
Sale Contracts | Counterparty | Notional Amount | Value at Settlement Date Receivable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Argentine Peso, | ||||||||||||||||||
Expiring 01/27/12 | Citibank NA | ARS | 2,277,685 | $ | 507,845 | $ | 511,614 | $ | (3,769 | ) | ||||||||
Expiring 01/27/12 | Citibank NA | ARS | 2,714,500 | 610,000 | 609,731 | 269 | ||||||||||||
Brazilian Real, | ||||||||||||||||||
Expiring 06/02/11 | Citibank NA | BRL | 434,431 | 275,900 | 275,598 | 302 | ||||||||||||
Expiring 06/02/11 | Citibank NA | BRL | 636,920 | 400,000 | 404,054 | (4,054 | ) | |||||||||||
Expiring 06/02/11 | Citibank NA | BRL | 1,091,802 | 688,400 | 692,626 | (4,226 | ) | |||||||||||
Expiring 06/02/11 | Citibank NA | BRL | 1,801,571 | 1,059,000 | 1,142,895 | (83,895 | ) | |||||||||||
Expiring 06/02/11 | UBS AG | BRL | 4,363,671 | 2,672,999 | 2,768,260 | (95,261 | ) | |||||||||||
Expiring 06/02/11 | UBS AG | BRL | 636,751 | 389,927 | 403,947 | (14,020 | ) | |||||||||||
Expiring 01/19/12 | UBS AG | BRL | 2,302,375 | 1,250,000 | 1,399,135 | (149,135 | ) |
See Notes to Financial Statements.
38 | Visit our website at www.prudentialfunds.com |
Sale Contracts | Counterparty | Notional Amount | Value at Settlement Date Receivable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
British Pound, | ||||||||||||||||||
Expiring 05/25/11 | Morgan Stanley | GBP | 5,426 | $ | 8,801 | $ | 9,061 | $ | (260 | ) | ||||||||
Expiring 05/25/11 | Morgan Stanley | GBP | 170,991 | 281,600 | 285,517 | (3,917 | ) | |||||||||||
Chilean Peso, | ||||||||||||||||||
Expiring 06/08/11 | Citibank NA | CLP | 127,926,480 | 264,000 | 276,511 | (12,511 | ) | |||||||||||
Expiring 06/08/11 | Citibank NA | CLP | 154,283,525 | 321,090 | 333,482 | (12,392 | ) | |||||||||||
Expiring 06/08/11 | Citibank NA | CLP | 315,265,270 | 648,894 | 681,441 | (32,547 | ) | |||||||||||
Chinese Yuan Renminbi, | ||||||||||||||||||
Expiring 07/06/11 | Citibank NA | CNY | 1,808,913 | 276,275 | 280,470 | (4,195 | ) | |||||||||||
Expiring 07/06/11 | Morgan Stanley | CNY | 3,207,618 | 473,100 | 497,337 | (24,237 | ) | |||||||||||
Expiring 07/06/11 | Morgan Stanley | CNY | 5,423,918 | 832,400 | 840,972 | (8,572 | ) | |||||||||||
Expiring 07/06/11 | Morgan Stanley | CNY | 9,044,288 | 1,392,500 | 1,402,305 | (9,805 | ) | |||||||||||
Expiring 07/06/11 | UBS AG | CNY | 13,119,501 | 1,986,900 | 2,034,162 | (47,262 | ) | |||||||||||
Colombian Peso, | ||||||||||||||||||
Expiring 05/09/11 | Citibank NA | COP | 3,923,274,289 | 2,110,195 | 2,218,168 | (107,973 | ) | |||||||||||
Expiring 05/09/11 | Citibank NA | COP | 616,791,000 | 345,000 | 348,726 | (3,726 | ) | |||||||||||
Expiring 12/06/11 | Citibank NA | COP | 722,529,000 | 387,000 | 406,312 | (19,312 | ) | |||||||||||
Expiring 12/06/11 | Citibank NA | COP | 802,911,500 | 423,700 | 451,515 | (27,815 | ) | |||||||||||
Expiring 12/06/11 | Citibank NA | COP | 1,218,208,200 | 632,507 | 685,056 | (52,549 | ) | |||||||||||
Czech Koruna, | ||||||||||||||||||
Expiring 05/24/11 | Morgan Stanley | CZK | 6,767,449 | 402,130 | 414,466 | (12,336 | ) | |||||||||||
Euro, | ||||||||||||||||||
Expiring 05/24/11 | Citibank NA | EUR | 279,000 | 401,645 | 412,958 | (11,313 | ) | |||||||||||
Expiring 05/25/11 | JPMorgan | EUR | 641,520 | 912,178 | 949,509 | (37,331 | ) | |||||||||||
Expiring 05/25/11 | Morgan Stanley | EUR | 348,646 | 504,717 | 516,028 | (11,311 | ) | |||||||||||
Expiring 05/25/11 | Morgan Stanley | EUR | 612,476 | 873,900 | 906,521 | (32,621 | ) | |||||||||||
Expiring 05/25/11 | Morgan Stanley | EUR | 845,000 | 1,219,268 | 1,250,678 | (31,410 | ) | |||||||||||
Expiring 05/25/11 | UBS AG | EUR | 459,000 | 657,147 | 679,363 | (22,216 | ) | |||||||||||
Hong Kong Dollar, | ||||||||||||||||||
Expiring 09/22/11 | Morgan Stanley | HKD | 4,475,500 | 576,401 | 576,870 | (469 | ) | |||||||||||
Expiring 02/07/12 | Citibank NA | HKD | 3,007,671 | 387,983 | 388,123 | (140 | ) | |||||||||||
Expiring 06/12/12 | JPMorgan | HKD | 5,348,747 | 690,379 | 690,673 | (294 | ) | |||||||||||
Hungarian Forint, | ||||||||||||||||||
Expiring 05/24/11 | JPMorgan | HUF | 122,582,309 | 657,300 | 685,405 | (28,105 | ) | |||||||||||
Indian Rupee, | ||||||||||||||||||
Expiring 12/23/11 | UBS AG | INR | 61,919,000 | 1,300,000 | 1,336,111 | (36,111 | ) | |||||||||||
Israeli New Shekel, | ||||||||||||||||||
Expiring 05/27/11 | JPMorgan | ILS | 1,414,093 | 412,000 | 417,745 | (5,745 | ) | |||||||||||
Expiring 11/02/11 | Barclay Capital | ILS | 3,444,700 | 998,059 | 1,010,437 | (12,378 | ) | |||||||||||
Expiring 11/02/11 | Barclay Capital | ILS | 3,500,000 | 951,165 | 1,026,658 | (75,493 | ) |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 39 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Sale Contracts | Counterparty | Notional Amount | Value at Settlement Date Receivable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Japanese Yen, | ||||||||||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 57,002,869 | $ | 696,181 | $ | 702,818 | $ | (6,637 | ) | ||||||||
Expiring 05/25/11 | JPMorgan | JPY | 27,850,694 | 335,000 | 343,386 | (8,386 | ) | |||||||||||
Expiring 05/25/11 | JPMorgan | JPY | 56,182,757 | 684,900 | 692,706 | (7,806 | ) | |||||||||||
Expiring 05/25/11 | Morgan Stanley | JPY | 24,389,402 | 293,523 | 300,710 | (7,187 | ) | |||||||||||
Expiring 05/25/11 | Morgan Stanley | JPY | 90,708,188 | 1,100,052 | 1,118,388 | (18,336 | ) | |||||||||||
Malaysian Ringgit, | ||||||||||||||||||
Expiring 07/11/11 | UBS AG | MYR | 1,203,783 | 397,000 | 404,265 | (7,265 | ) | |||||||||||
Expiring 07/11/11 | UBS AG | MYR | 1,366,425 | 450,000 | 458,885 | (8,885 | ) | |||||||||||
New Taiwan Dollar, | ||||||||||||||||||
Expiring 06/14/11 | UBS AG | TWD | 8,712,426 | 302,200 | 304,346 | (2,146 | ) | |||||||||||
Expiring 06/14/11 | UBS AG | TWD | 11,458,200 | 390,000 | 400,262 | (10,262 | ) | |||||||||||
Expiring 12/09/11 | Citibank NA | TWD | 17,871,840 | 630,400 | 627,395 | 3,005 | ||||||||||||
Expiring 12/09/11 | Morgan Stanley | TWD | 17,896,401 | 635,300 | 628,257 | 7,043 | ||||||||||||
Expiring 12/09/11 | UBS AG | TWD | 7,439,530 | 263,160 | 261,166 | 1,994 | ||||||||||||
Expiring 12/09/11 | UBS AG | TWD | 12,693,494 | 437,029 | 445,608 | (8,579 | ) | |||||||||||
Expiring 12/09/11 | UBS AG | TWD | 15,538,444 | 547,900 | 545,480 | 2,420 | ||||||||||||
Expiring 12/09/11 | UBS AG | TWD | 17,636,720 | 617,900 | 619,141 | (1,241 | ) | |||||||||||
Expiring 12/09/11 | UBS AG | TWD | 32,197,108 | 1,135,300 | 1,130,286 | 5,014 | ||||||||||||
New Zealand Dollar, | ||||||||||||||||||
Expiring 05/23/11 | Morgan Stanley | NZD | 511,209 | 402,200 | 413,039 | (10,839 | ) | |||||||||||
Norwegian Krone, | ||||||||||||||||||
Expiring 05/24/11 | Citibank NA | NOK | 2,942,468 | 547,900 | 560,039 | (12,139 | ) | |||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||
Expiring 06/07/11 | Citibank NA | PEN | 2,790,380 | 1,007,139 | 983,146 | 23,993 | ||||||||||||
Philippine Peso, | ||||||||||||||||||
Expiring 06/03/11 | UBS AG | PHP | 20,682,200 | 476,000 | 482,215 | (6,215 | ) | |||||||||||
Russian Rouble, | ||||||||||||||||||
Expiring 06/06/11 | Citibank NA | RUB | 13,128,773 | 443,300 | 477,505 | (34,205 | ) | |||||||||||
Expiring 06/06/11 | UBS AG | RUB | 4,495,491 | 148,268 | 163,505 | (15,237 | ) | |||||||||||
Expiring 06/06/11 | UBS AG | RUB | 9,222,290 | 324,500 | 335,423 | (10,923 | ) | |||||||||||
Expiring 07/08/11 | Citibank NA | RUB | 29,978,478 | 1,038,000 | 1,087,051 | (49,051 | ) | |||||||||||
Expiring 07/08/11 | Goldman Sachs | RUB | 14,836,164 | 517,300 | 537,975 | (20,675 | ) | |||||||||||
Expiring 08/08/11 | Citibank NA | RUB | 37,891,078 | 1,311,700 | 1,369,985 | (58,285 | ) | |||||||||||
Singapore Dollar, | ||||||||||||||||||
Expiring 05/24/12 | UBS AG | SGD | 252,803 | 205,280 | 206,716 | (1,436 | ) | |||||||||||
South African Rand, | ||||||||||||||||||
Expiring 12/07/11 | Morgan Stanley | ZAR | 9,449,250 | 1,290,000 | 1,392,100 | (102,100 | ) | |||||||||||
South Korean Won, | ||||||||||||||||||
Expiring 07/05/11 | UBS AG | KRW | 365,815,485 | 333,000 | 339,803 | (6,803 | ) |
See Notes to Financial Statements.
40 | Visit our website at www.prudentialfunds.com |
Sale Contracts | Counterparty | Notional Amount | Value at Settlement Date Receivable | Value at April 30, 2011 | Unrealized Appreciation (Depreciation) | |||||||||||||
Swiss Franc, | ||||||||||||||||||
Expiring 05/24/11 | UBS AG | CHF | 962,928 | $ | 1,072,400 | $ | 1,113,377 | $ | (40,977 | ) | ||||||||
Thai Baht, | ||||||||||||||||||
Expiring 05/09/11 | UBS AG | THB | 7,882,190 | 257,000 | 263,901 | (6,901 | ) | |||||||||||
Expiring 05/09/11 | UBS AG | THB | 9,984,615 | 331,000 | 334,292 | (3,292 | ) | |||||||||||
Expiring 05/09/11 | UBS AG | THB | 12,793,336 | 423,200 | 428,330 | (5,130 | ) | |||||||||||
Expiring 05/09/11 | UBS AG | THB | 13,815,000 | 450,000 | 462,536 | (12,536 | ) | |||||||||||
Expiring 05/09/11 | UBS AG | THB | 16,070,325 | 529,500 | 538,045 | (8,545 | ) | |||||||||||
Turkish Lira, | ||||||||||||||||||
Expiring 05/27/11 | JPMorgan | TRY | 420,114 | 274,000 | 274,897 | (897 | ) | |||||||||||
Expiring 05/27/11 | Morgan Stanley | TRY | 420,154 | 274,000 | 274,923 | (923 | ) | |||||||||||
Expiring 05/27/11 | UBS AG | TRY | 1,681,140 | 1,101,500 | 1,100,036 | 1,464 | ||||||||||||
Expiring 10/12/11 | Citibank NA | TRY | 1,500,000 | 915,695 | 957,784 | (42,089 | ) | |||||||||||
Expiring 11/16/11 | Citibank NA | TRY | 1,000,000 | 598,086 | 634,310 | (36,224 | ) | |||||||||||
Expiring 12/15/11 | Morgan Stanley | TRY | 2,042,768 | 1,288,000 | 1,288,552 | (552 | ) | |||||||||||
$ | 53,657,118 | $ | 55,223,024 | $ | (1,565,906 | ) | ||||||||||||
Currency swap agreement outstanding as of April 30, 2011:
Counterparty | Termination Date | Notional Amount (000) | Fixed Rate | Floating Rate | Fair Value | Upfront Premiums Paid/ (Received) | Unrealized Depreciation | |||||||||||||||||||
Citibank NA(a) | 11/13/12 | JPY | 100,000 | 1.920 | % | 6 Month LIBOR | $ | (34,193 | ) | $ | — | $ | (34,193 | ) | ||||||||||||
(a) | The Fund pays a fixed rate based on a notional amount of JPY 100,000,000. The Fund receives a floating rate based on a notional amount of USD $1,197,891. |
Interest rate swap agreements outstanding as of April 30, 2011:
Counterparty | Termination Date | Notional Amount (000)# | Fixed Rate | Floating Rate | Fair Value | Upfront Premiums Paid/ (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
Barclays Bank PLC(a) | 04/11/13 | SGD | 4,500 | 0.875 | % | 6 Month SOR | $ | (14,067 | ) | $ | — | $ | (14,067 | ) | ||||||||||||
Barclays Bank PLC(a) | 02/14/41 | AUD | 500 | 5.860 | 6 Month BBSW | (10,083 | ) | — | (10,083 | ) | ||||||||||||||||
Citibank NA(a) | 04/21/13 | 3,600 | 0.910 | 6 Month LIBOR | (4,383 | ) | — | (4,383 | ) | |||||||||||||||||
Citibank NA(a) | 04/11/16 | 340 | 2.406 | 3 Month LIBOR | (4,849 | ) | — | (4,849 | ) | |||||||||||||||||
JPMorgan Chase Bank NA(a) | 02/15/21 | SEK | 4,200 | 3.845 | 3 Month STIBOR | (5,237 | ) | — | (5,237 | ) |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 41 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Counterparty | Termination Date | Notional Amount (000)# | Fixed Rate | Floating Rate | Fair Value | Upfront Premiums Paid/ (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
Morgan Stanley Capital Services(a) | 02/16/16 | SEK | 865 | 2.555 | % | 3 Month LIBOR | $ | (23,244 | ) | $ | — | $ | (23,244 | ) | ||||||||||||
Barclays Bank PLC(b) | 04/11/13 | 3,600 | 1.100 | 6 Month LIBOR | 19,074 | — | 19,074 | |||||||||||||||||||
Barclays Bank PLC(b) | 04/19/14 | HKD | 11,600 | 1.305 | 3 Month HIBOR | 5,555 | — | 5,555 | ||||||||||||||||||
Barclays Bank PLC(b) | 02/01/18 | CHF | 800 | 1.900 | 6 Month CHF LIBOR | (5,129 | ) | — | (5,129 | ) | ||||||||||||||||
Barclays Bank PLC(b) | 11/23/20 | PLN | 7,000 | 5.340 | 6 Month WIBOR | (48,339 | ) | — | (48,339 | ) | ||||||||||||||||
Barclays Bank PLC(b) | 02/02/21 | JPY | 60,000 | 1.265 | 6 Month Yen LIBOR | 5,934 | — | 5,934 | ||||||||||||||||||
Barclays Bank PLC(b) | 02/16/21 | JPY | 96,000 | 1.365 | 6 Month Yen LIBOR | 20,201 | — | 20,201 | ||||||||||||||||||
Barclays Bank PLC(b) | 02/14/31 | AUD | 700 | 6.110 | 6 Month BBSW | 11,466 | — | 11,466 | ||||||||||||||||||
Citibank NA(b) | 02/15/13 | MXN | 17,100 | 5.620 | 28 Day Mexican Interbank Rate | 1,398 | — | 1,398 | ||||||||||||||||||
Citibank NA(b) | 04/20/13 | 3,900 | 0.825 | 3 Month LIBOR | 6,356 | — | 6,356 | |||||||||||||||||||
Citibank NA(b) | 04/21/13 | SGD | 4,500 | 0.755 | 6 Month SOR | 4,316 | — | 4,316 | ||||||||||||||||||
Citibank NA(b) | 03/15/16 | CZK | 33,300 | 2.865 | 6 Month PRIBOR | 14,148 | — | 14,148 | ||||||||||||||||||
Citibank NA(b) | 04/11/16 | 340 | 2.415 | 3 Month LIBOR | 4,945 | — | 4,945 | |||||||||||||||||||
Citibank NA(b) | 05/17/20 | JPY | 186,905 | 1.388 | 6 Month Yen LIBOR | 67,120 | — | 67,120 | ||||||||||||||||||
Citibank NA(b) | 12/20/20 | JPY | 90,000 | 1.353 | 6 Month Yen LIBOR | 21,290 | — | 21,290 | ||||||||||||||||||
Citibank NA(b) | 03/17/21 | HUF | 150,000 | 7.040 | 6 Month BUBOR | 26,378 | — | 26,378 | ||||||||||||||||||
Citibank NA(b) | 07/21/24 | JPY | 85,500 | 1.489 | 6 Month Yen LIBOR | (7,420 | ) | — | (7,420 | ) | ||||||||||||||||
Citibank NA(b) | 07/21/30 | JPY | 101,900 | 1.781 | 6 Month Yen LIBOR | (32,138 | ) | — | (32,138 | ) | ||||||||||||||||
JPMorgan Chase | 04/15/13 | EUR | 3,200 | 2.420 | 6 Month EURIBOR | 10,467 | — | 10,467 | ||||||||||||||||||
JPMorgan Chase | 04/18/13 | EUR | 3,200 | 2.413 | 6 Month EURIBOR | 9,356 | — | 9,356 | ||||||||||||||||||
JPMorgan Chase | 02/15/16 | SEK | 7,700 | 3.575 | 3 Month STIBOR | 2,638 | — | 2,638 | ||||||||||||||||||
JPMorgan Chase | 03/02/16 | JPY | 72,000 | 0.690 | 6 Month Yen LIBOR | 5,989 | — | 5,989 | ||||||||||||||||||
JPMorgan Chase | 04/19/16 | EUR | 1,600 | 3.124 | 6 Month EURIBOR | 12,823 | — | 12,823 | ||||||||||||||||||
JPMorgan Chase | 11/26/20 | ZAR | 5,850 | 7.750 | 3 Month JIBAR | (19,107 | ) | — | (19,107 | ) | ||||||||||||||||
JPMorgan Chase | 02/07/21 | ZAR | 6,000 | 8.500 | 3 Month JIBAR | 28,696 | — | 28,696 | ||||||||||||||||||
Morgan Stanley Capital Services(b) | 03/08/16 | 445 | 2.387 | 3 Month LIBOR | 7,433 | — | 7,433 | |||||||||||||||||||
Morgan Stanley Capital Services(b) | 03/23/16 | 420 | 2.251 | 3 Month LIBOR | 3,638 | — | 3,638 | |||||||||||||||||||
Morgan Stanley Capital Services(b) | 04/04/16 | JPY | 75,000 | 0.624 | 6 Month Yen LIBOR | 2,697 | — | 2,697 |
See Notes to Financial Statements.
42 | Visit our website at www.prudentialfunds.com |
Counterparty | Termination Date | Notional Amount (000)# | Fixed Rate | Floating Rate | Fair Value | Upfront Premiums Paid/ (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
Morgan Stanley Capital Services(b) | 12/10/20 | JPY | 2,100 | 4.903 | % | 3 Month LIBOR | $ | 14,124 | $ | — | $ | 14,124 | ||||||||||||||
Morgan Stanley Capital Services(b) | 12/14/20 | 1,400 | 4.910 | 3 Month LIBOR | 7,796 | — | 7,796 | |||||||||||||||||||
$ | 139,842 | $ | — | $ | 139,842 | |||||||||||||||||||||
(a) | Fund pays the fixed rate and receives the floating rate. |
(b) | Fund pays the floating rate and receives the fixed rate. |
# | Notional amount is shown in U.S. dollars unless otherwise stated. |
Credit default swap agreements outstanding as of April 30, 2011:
Counterparty | Termination Date | Notional Amount (000)#(2) | Fixed Rate | Reference Entity/ | Fair Value | Upfront Premiums Paid/ (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
Credit Default Swaps on Corporate Issues—Buy Protection(1): |
| |||||||||||||||||||||||||
Barclays Bank PLC | 06/20/11 | $ | 225 | 5.000 | % | Gannett Co., Inc., 6.375%, due 04/01/12 | $ | (2,768 | ) | $ | (480 | ) | $ | (2,288 | ) | |||||||||||
Citibank NA | 03/20/12 | 600 | 5.000 | XL Capital Ltd., 5.250%, due 09/15/14 | (29,049 | ) | (10,798 | ) | (18,251 | ) | ||||||||||||||||
Citibank NA | 06/20/14 | 500 | 1.000 | CBS Corp. 4.625%, due 05/15/18 | (7,903 | ) | 24,673 | (32,576 | ) | |||||||||||||||||
Credit Suisse International | 03/20/15 | 420 | 1.000 | Toll Brothers Finance Corp., 5.150%, due 05/15/15 | 6,774 | 1,911 | 4,863 | |||||||||||||||||||
Deutsche Bank AG | 03/20/12 | 100 | 5.000 | Gannett Co., Inc., 6.375%, due 04/01/12 | (4,518 | ) | (976 | ) | (3,542 | ) | ||||||||||||||||
Deutsche Bank AG | 06/20/13 | 600 | 1.000 | Sealed Air Corp., 5.625%, due 07/15/13 | (6,466 | ) | 5,488 | (11,954 | ) | |||||||||||||||||
Deutsche Bank AG | 09/20/13 | 260 | 1.000 | Masco Corp., 6.125%, due 10/03/16 | 1,681 | 5,879 | (4,198 | ) | ||||||||||||||||||
Deutsche Bank AG | 03/20/14 | 250 | 7.050 | Starwood Hotels & Resorts Holdings, Inc., 7.875%, due 05/01/12 | (46,811 | ) | — | (46,811 | ) | |||||||||||||||||
Deutsche Bank AG | 06/20/14 | 600 | 1.000 | R.R. Donnelley & Sons Co., 4.950%, due 04/01/14 | 9,662 | 30,359 | (20,697 | ) | ||||||||||||||||||
Deutsche Bank AG | 03/20/18 | 250 | 3.700 | American International Group, Inc., 6.250%, due 05/01/36 | (28,397 | ) | — | (28,397 | ) |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 43 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
Counterparty | Termination Date | Notional Amount (000)#(2) | Fixed Rate | Reference Entity/ | Fair Value | Upfront Premiums Paid/ (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
Credit Default Swaps on Corporate Issues—Buy Protection(1) (cont’d.): |
| |||||||||||||||||||||||||
Goldman Sachs International | 03/20/14 | $ | 350 | 0.700 | % | Duke Energy Corp., 5.650%, due 06/15/13 | $ | (5,132 | ) | $ | — | $ | (5,132 | ) | ||||||||||||
JPMorgan Chase Bank | 06/20/14 | 510 | 5.000 | SLM Corp., 5.125%, due 08/27/12 | (55,161 | ) | 62,490 | (117,651 | ) | |||||||||||||||||
JPMorgan Chase Bank | 09/20/16 | 450 | 1.000 | R.R. Donnelley & Sons Co., 4.950%, due 04/01/14 | 32,165 | 43,142 | (10,977 | ) | ||||||||||||||||||
JPMorgan Chase Bank | 09/20/19 | 450 | 1.000 | Westvaco Corp., 7.950%, due 02/15/31 | 29,157 | 7,431 | 21,726 | |||||||||||||||||||
$ | (106,766 | ) | $ | 169,119 | $ | (275,885 | ) | |||||||||||||||||||
(1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
# | Notional amount is shown in U.S. dollars unless otherwise stated. |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—quoted prices generally for stocks, exchange traded funds, options and futures traded in active markets for identical securities, and mutual funds which trade at daily net asset value.
Level 2—other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, foreign currency exchange rates and amortized cost) generally for debt securities, swaps, forward foreign currency contracts and for foreign stocks priced using vendor modeling tools.
Level 3—significant unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
44 | Visit our website at www.prudentialfunds.com |
The following is a summary of the inputs used as of April 30, 2011 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Foreign Bonds | $ | — | $ | 48,434,340 | $ | 2,509,317 | ||||||
Asset-Backed Securities | ||||||||||||
Non-Residential Mortgage-Backed Securities | — | 4,976,254 | 3,556,728 | |||||||||
Residential Mortgage-Backed Securities | — | 9,234,951 | — | |||||||||
Bank Loans | — | 1,640,449 | — | |||||||||
Commercial Mortgage-Backed Securities | — | 9,858,327 | — | |||||||||
Corporate Bonds | — | 36,734,315 | 1,260 | |||||||||
Municipal Bonds | — | 3,634,488 | — | |||||||||
U.S. Government Agency Obligations | — | 5,182,084 | — | |||||||||
U.S. Treasury Securities | — | 2,032,972 | — | |||||||||
Preferred Stock | 111,040 | — | — | |||||||||
Affiliated Money Market Mutual Fund | 10,984,268 | — | — | |||||||||
Options Purchased | — | 861,086 | — | |||||||||
Other Financial Instruments* | ||||||||||||
Futures | 204,736 | — | — | |||||||||
Forward Foreign Currency Contracts | — | 2,586,018 | — | |||||||||
Currency Swap Agreement | — | (34,193 | ) | — | ||||||||
Interest Rate Swap Agreements | — | 139,842 | — | |||||||||
Credit Default Swap Agreements | — | (270,753 | ) | (5,132 | ) | |||||||
Total | $ | 11,300,044 | $ | 125,010,180 | $ | 6,062,173 | ||||||
The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
Foreign Bonds | Non- Residential Mortgage- Backed Securities | Bank Loans | Corporate Bonds | Credit Default Swaps | ||||||||||||||||
Balance as of 10/31/10 | $ | — | $ | 307,180 | $ | 271,500 | $ | — | $ | — | ||||||||||
Realized gain (loss) | — | — | — | — | — | ** | ||||||||||||||
Change in unrealized | 353,607 | 45,247 | — | 35 | (546 | ) | ||||||||||||||
Purchases | — | 1,392,295 | — | 1,225 | — | |||||||||||||||
Sales | — | (459,251 | ) | — | — | — | ||||||||||||||
Accrued discount/premium | — | 11,960 | — | — | — | |||||||||||||||
Transfers into Level 3 | 2,155,710 | 2,259,297 | — | — | (4,586 | ) | ||||||||||||||
Transfers out of Level 3 | — | — | (271,500 | ) | — | — | ||||||||||||||
Balance as of 04/30/11 | $ | 2,509,317 | $ | 3,556,728 | $ | — | $ | 1,260 | $ | (5,132 | ) | |||||||||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 45 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
* | Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
** | The realized loss incurred during the period for the other financial instruments was $1,239. |
*** | Of which, $398,344 was included in Net Assets relating to securities held at the reporting period end. |
It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. At the reporting period end, there were two bank loans transferred out of Level 3 as a result of no longer using single broker quote and one foreign bond, six non-residential mortgage-backed securities and one credit default swap transferred into Level 3 as of result of using a single broker quote.
The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2011 was as follows:
Foreign Government Obligations | 15.4 | % | ||
Sovereigns | 8.2 | |||
Affiliated Money Market Mutual Fund | 7.9 | |||
Commercial Mortgage-Backed Securities | 7.0 | |||
Residential Mortgage-Backed Securities | 6.6 | |||
Non-Residential Mortgage-Backed Securities | 6.1 | |||
Non-Corporate Foreign Agencies | 6.0 | |||
Banking | 5.8 | |||
Media & Entertainment | 4.2 | |||
U.S. Government Agency Obligations | 3.7 | |||
Municipal Bonds | 2.6 | |||
Insurance | 2.4 | |||
Cable | 1.8 | |||
Telecommunications | 1.8 | |||
Metals | 1.7 | |||
Electric | 1.6 | |||
Technology | 1.6 | |||
U.S. Treasury Securities | 1.5 | |||
Non-Captive Finance | 1.4 | |||
Building Materials & Construction | 1.2 | |||
Real Estate Investment Trusts | 1.2 | |||
Foods | 1.0 | |||
Lodging | 0.9 | |||
Capital Goods | 0.8 | |||
Healthcare & Pharmaceutical | 0.7 | |||
Paper | 0.7 | |||
Energy—Integrated | 0.6 | |||
Energy—Other | 0.6 | |||
Healthcare Insurance | 0.6 | |||
Options | 0.6 | |||
Tobacco | 0.6 |
See Notes to Financial Statements.
46 | Visit our website at www.prudentialfunds.com |
Chemicals | 0.5 | % | ||
Airlines | 0.4 | |||
Packaging | 0.4 | |||
Pipelines & Other | 0.4 | |||
Retailers | 0.4 | |||
Automotive | 0.3 | |||
Consumer | 0.3 | |||
Gaming | 0.3 | |||
Aerospace & Defense | 0.1 | |||
Railroads | 0.1 | |||
100 | ||||
Other assets in excess of liabilities | — | * | ||
Net Assets | 100.0 | % | ||
* | Less than 0.05%. |
The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are credit risk, foreign exchange risk and interest rate risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2011 as presented in the Statement of Assets and Liabilities:
Derivatives not designated | Asset Derivatives | Liability Derivatives | ||||||||||
Balance | Fair Value | Balance | Fair Value | |||||||||
Credit contracts | Unrealized appreciation on swap agreements | $ | 26,589 | Unrealized depreciation on swap agreements | $ | 302,474 | ||||||
Credit contracts | Premium paid for swap agreements | 181,373 | Premium received for swap agreements | 12,254 | ||||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 4,236,737 | Unrealized depreciation on forward foreign currency contracts | 1,650,719 | ||||||||
Foreign exchange contracts | Unaffiliated investments | 861,086 | — | — | ||||||||
Interest rate contracts | Due from broker—variation margin | 266,730 | * | Due from broker—variation margin | 61,994 | * | ||||||
Interest rate contracts | Unrealized appreciation on swap agreements | 313,838 | Unrealized depreciation on swap agreements | 208,189 | ||||||||
Total | $ | 5,886,353 | $ | 2,235,630 | ||||||||
* | Includes cumulative appreciation/depreciation on futures contracts as reported in Portfolio of Investments. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 47 |
Portfolio of Investments
as of April 30, 2011 (Unaudited) continued
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2011 are as follows:
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Derivatives not designated as | Purchased Options | Written Options | Futures | Forward Contracts | Swaps | Total | ||||||||||||||||||
Credit contracts | $ | — | $ | — | $ | — | $ | — | $ | (72,143 | ) | $ | (72,143 | ) | ||||||||||
Foreign exchange contracts | (669,839 | ) | — | — | 1,734,279 | 195 | 1,064,635 | |||||||||||||||||
Interest rate contracts | (146,124 | ) | 106,693 | (1,060,678 | ) | — | (129,410 | ) | (1,229,519 | ) | ||||||||||||||
$ | (815,963 | ) | $ | 106,693 | $ | (1,060,678 | ) | $ | 1,734,279 | $ | (201,358 | ) | $ | (237,027 | ) | |||||||||
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Derivatives not designated as hedging | Purchased Options | Futures | Forward Contracts | Swaps | Total | |||||||||||||||||||
Credit contracts | $ | — | $ | — | $ | — | $ | (50,051 | ) | $ | (50,051 | ) | ||||||||||||
Foreign exchange contracts | 62,779 | — | 2,052,641 | — | 2,115,420 | |||||||||||||||||||
Interest rate contracts | — | 507,109 | — | 79,111 | 586,220 | |||||||||||||||||||
$ | 62,779 | $ | 507,109 | $ | 2,052,641 | $ | 29,060 | $ | 2,651,589 | |||||||||||||||
For the six months ended April 30, 2011, the Fund’s average volume of derivative activities are as follows:
Options Purchased (Cost) | Futures Long Positions (Value at Trade Date) | Futures Short Positions (Value at Trade Date) | Forward Currency Contracts- Purchased (Value at Settlement Date Payable) | Forward Currency Contracts-Sold (Value at Settlement Date Receivable) | Currency Swaps (Notional Amount in USD (000)) | Interest Rate Swaps (Notional Amount in USD (000)) | Credit Default Swaps as Buyer (Notional Amount in USD (000)) | |||||||||||||||||||||||
$ | 674,316 | $ | 38,071,129 | $ | 25,193,330 | $ | 132,998,671 | $ | 45,910,306 | $ | 818 | $ | 40,995 | $ | 5,625 |
See Notes to Financial Statements.
48 | Visit our website at www.prudentialfunds.com |
Financial Statements
(Unaudited)
APRIL 30, 2011 | SEMIANNUAL REPORT |
Prudential Global Total Return Fund
Statement of Assets and Liabilities
as of April 30, 2011 (Unaudited)
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $119,789,789) | $ | 128,767,611 | ||
Affiliated investments (cost $10,984,268) | 10,984,268 | |||
Cash | 516,991 | |||
Foreign currency, at value (cost $77,340) | 77,348 | |||
Unrealized appreciation on forward foreign currency contracts | 4,236,737 | |||
Receivable for investments sold | 3,789,440 | |||
Dividends and interest receivable | 1,428,244 | |||
Unrealized appreciation on swap agreements | 340,427 | |||
Receivable for Fund shares sold | 306,929 | |||
Premium paid for swap agreements | 181,373 | |||
Due from broker—variation margin | 31,848 | |||
Prepaid expenses and other assets | 19,528 | |||
Total assets | 150,680,744 | |||
Liabilities | ||||
Payable for investments purchased | 8,127,952 | |||
Unrealized depreciation on forward foreign currency contracts | 1,650,719 | |||
Unrealized depreciation on swap agreements | 510,663 | |||
Payable for Fund shares reacquired | 203,854 | |||
Accrued expenses | 140,424 | |||
Dividends payable | 113,678 | |||
Management fee payable | 64,292 | |||
Distribution fee payable | 33,364 | |||
Affiliated transfer agent fee payable | 16,868 | |||
Premium received for swap agreements | 12,254 | |||
Total liabilities | 10,874,068 | |||
Net Assets | $ | 139,806,676 | ||
Net assets were comprised of: | ||||
Common stock, at par | $ | 198,207 | ||
Paid-in capital in excess of par | 139,681,043 | |||
139,879,250 | ||||
Distributions in excess of net investment income | (3,093,656 | ) | ||
Accumulated net realized loss on investment and foreign currency transactions | (8,565,948 | ) | ||
Net unrealized appreciation on investments and foreign currencies | 11,587,030 | |||
Net assets, April 30, 2011 | $ | 139,806,676 | ||
See Notes to Financial Statements.
50 | Visit our website at www.prudentialfunds.com |
Class A | ||||
Net asset value and redemption price per share | $ | 7.05 | ||
Maximum sales charge (4.50% of offering price) | 0.33 | |||
Maximum offering price to public | $ | 7.38 | ||
Class B | ||||
Net asset value, offering price and redemption price per share | $ | 7.05 | ||
Class C | ||||
Net asset value, offering price and redemption price per share | $ | 7.03 | ||
Class Z | ||||
Net asset value, offering price and redemption price per share | $ | 7.07 | ||
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 51 |
Statement of Operations
Six Months Ended April 30, 2011 (Unaudited)
Net Investment Income | ||||
Interest (net of foreign withholding taxes of $2,915) | $ | 3,166,540 | ||
Affiliated dividend income | 7,499 | |||
Unaffiliated dividend income | 4,484 | |||
Total income | 3,178,523 | |||
Expenses | ||||
Management fee | 418,541 | |||
Distribution fee—Class A | 142,124 | |||
Distribution fee—Class B | 15,053 | |||
Distribution fee—Class C | 28,930 | |||
Transfer agent’s fees and expenses (including affiliated expense of $34,900) | 111,000 | |||
Custodian’s fees and expenses | 109,000 | |||
Reports to shareholders | 32,000 | |||
Registration fees | 30,000 | |||
Audit fee | 27,000 | |||
Legal fees and expenses | 12,000 | |||
Directors’ fees | 7,000 | |||
Insurance | 2,000 | |||
Loan interest expense (Note 7) | 100 | |||
Miscellaneous | 4,673 | |||
939,421 | ||||
Less: Expense subsidy (Note 2) | (45,427 | ) | ||
Net expenses | 893,994 | |||
Net investment income | 2,284,529 | |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 868,981 | |||
Foreign currency transactions | 2,228,042 | |||
Financial futures transactions | (1,060,678 | ) | ||
Swap agreement transactions | (201,358 | ) | ||
Written option transactions | 106,693 | |||
1,941,680 | ||||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (2,256,003 | ) | ||
Foreign currencies | 2,059,485 | |||
Financial futures contracts | 507,109 | |||
Swap agreements | 29,060 | |||
339,651 | ||||
Net gain on investments | 2,281,331 | |||
Net Increase In Net Assets Resulting From Operations | $ | 4,565,860 | ||
See Notes to Financial Statements.
52 | Visit our website at www.prudentialfunds.com |
Statement of Changes in Net Assets
(Unaudited)
Six Months Ended April 30, 2011 | Year Ended October 31, 2010 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations: | ||||||||
Net investment income | $ | 2,284,529 | $ | 4,857,125 | ||||
Net realized gain on investment and foreign currency transactions | 1,941,680 | 8,336,463 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 339,651 | 3,512,078 | ||||||
Net increase in net assets resulting from operations | 4,565,860 | 16,705,666 | ||||||
Dividends (Note 1) | ||||||||
Dividends from net investment income* | ||||||||
Class A | (9,586,677 | ) | (11,348,569 | ) | ||||
Class B | (233,701 | ) | (286,286 | ) | ||||
Class C | (490,817 | ) | (427,904 | ) | ||||
Class Z | (447,333 | ) | (406,877 | ) | ||||
(10,758,528 | ) | (12,469,636 | ) | |||||
Fund share transactions (Net of share conversions) (Note 6) | ||||||||
Net proceeds from shares sold | 15,735,747 | 20,668,285 | ||||||
Net asset value of shares issued in reinvestment of dividends | 8,188,683 | 9,487,962 | ||||||
Cost of shares reacquired | (15,901,869 | ) | (21,265,950 | ) | ||||
Net increase in net assets from Fund share transactions | 8,022,561 | 8,890,297 | ||||||
Total increase | 1,829,893 | 13,126,327 | ||||||
Net Assets: | ||||||||
Beginning of period | 137,976,783 | 124,850,456 | ||||||
End of period(a) | $ | 139,806,676 | $ | 137,976,783 | ||||
(a) Includes undistributed net investment income of: | $ | — | $ | 5,380,343 | ||||
* | Dividends from net investment income include other items that are ordinary income for tax purposes. |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 53 |
Notes to Financial Statements
(Unaudited)
Prudential Global Total Return Fund, Inc. (the “Fund”), registered under the Investment Company Act of 1940 (“1940 Act”), as amended, is an open-end, non-diversified management investment company. The Fund’s investment objective is to seek total return made up of current income and capital appreciation.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security Valuation: In valuing the Fund’s assets, quotations of foreign securities in a foreign currency are converted to U.S. dollar equivalents at the then current currency value. Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange or market on the day of valuation or, if there was no sale on such a day, at the mean between the last reported bid and asked prices, or at the last bid price on such day in the absence of an asked price. Securities that are actively traded via NASDAQ are valued at the NASDAQ official closing price (“NOCP”) on the day of valuation, or if there was no NOCP, at the last sales price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadvisor, to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Corporate bonds, U.S. government securities and convertible debt securities traded in the over-the-counter market, including securities listed on exchanges whose primary market is believed to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Options on securities and indices traded on an exchange are valued at the last sale price as of the close of trading on the applicable exchange or, if there was no sale, at the mean between the most recently quoted bid and asked prices on such exchange. Future contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Prices may be obtained from independent pricing services which use information provided by market makers or
54 | Visit our website at www.prudentialfunds.com |
estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities for which reliable market quotations are not readily available, or whose values have been affected by events occurring after the close of the security’s foreign market and before the Fund’s normal pricing time, are valued at fair value in accordance with Board of Directors’ approved fair valuation procedures. When determining the fair valuation of securities, some of the factors influencing the valuation include, the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.
Investments in open end, non exchange-traded mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of the valuation.
Short-term debt securities of sufficient credit quality, which mature in sixty days or less, are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term debt securities, which mature in more than sixty days, are valued at fair value.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities-at the current rates of exchange.
(ii) purchases and sales of investment securities, income and expenses-at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates
Prudential Global Total Return Fund, Inc. | 55 |
Notes to Financial Statements
(Unaudited) continued
from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, these realized foreign currency gains or losses are included in the reported net realized gains or losses on investment transactions.
Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from sales and maturities of short-term securities and forward currency contracts, disposition of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, discount and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.
Concentration of Risk: The ability of issuers of debt securities (other than those issued or guaranteed by the U.S. Government) held by the Fund to meet its obligations may be affected by the economic or political developments in a specific industry, region or country. Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. companies as a result of, among other factors, the possibility of political or economic instability or the level of governmental supervision and regulation of foreign securities markets.
Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on financial futures transactions.
56 | Visit our website at www.prudentialfunds.com |
The Fund invests in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates or foreign currency exchange rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Financial futures contracts involve elements of risk in excess of the amounts reflected on the Statement of Assets and Liabilities.
Forward Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate between two parties. The Fund enters into forward currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or specific receivables and payables denominated in a foreign currency. The contracts are valued daily at current exchange rates and any unrealized gain or loss is included in net unrealized appreciation or depreciation on foreign currencies. Gain or loss is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain or loss, if any, is included in net realized gain (loss) on foreign currency transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable.
Options: The Fund purchased and wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates or foreign currency exchange rates, with respect to securities which the Fund currently owns or intends to purchase. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the
Prudential Global Total Return Fund, Inc. | 57 |
Notes to Financial Statements
(Unaudited) continued
current market value of the option. If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Fund has realized a gain or loss. The difference between the premium and the amount received or paid at the closing of a purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on options written. The Fund, as writer of an option, may have no control over whether the underlying securities may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an over-the-counter option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.
With exchange-traded futures and options contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange traded futures and options and guarantees the futures and options contracts against default.
Swap Agreements: The Fund entered into credit default, interest rate and currency swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on investments. Payments received or paid by the Fund are recorded as realized gains or losses upon termination or maturity of the swap. Risk of loss may exceed amounts recognized on the Statements of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Portfolio of Investments.
Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments and to increase exposure to prevailing market rates by receiving floating rate payments using interest rate swap contracts. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives.
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Currency Swaps: The Fund entered into currency swap agreements primarily to gain yield exposure on foreign bonds. Currency swap agreements involve two parties exchanging two different currencies with an agreement to reverse the exchange at a later date at specified exchange rates.
The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable.
Credit Default Swaps: Credit default swaps involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified payment in the event of a default or as a result of a default (“credit event”) for the referenced party, typically corporate issues or sovereign issues of an emerging country, on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.
The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund purchased credit default swaps to provide a measure of protection against defaults of the issuers. The Fund’s maximum risk of loss from counterparty credit risk for purchased credit default swaps is the notional value of a credit default swap agreement. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable.
As a seller of protection on credit default swap agreements, the Fund will generally receive from the buyer of protection an agreed upon payment throughout the term of the swap provided that there is no credit event. As the seller, the Fund would effectively increase investment risk to its portfolio because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.
The maximum amount of the payment that the Fund as a seller of protection could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit
Prudential Global Total Return Fund, Inc. | 59 |
Notes to Financial Statements
(Unaudited) continued
event. These potential amounts will be partially offset by any recovery values of the respective referenced obligations, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or index. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end are disclosed in the footnotes to the Portfolio of Investments, if applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credits spreads and increasing market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates. In connection with these agreements, securities in the portfolio may be identified as collateral or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and serve as recourse in the event of default or bankruptcy/insolvency of either party. Such over-the-counter derivative agreements include conditions which when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements. As of April 30, 2011, the Fund has not met conditions under such agreements, which give the counterparty the right to call for an early termination.
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Forward currency contracts, swaps and financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.
Lower rated or unrated securities are more likely to react to developments affecting market risk (general market liquidity) and credit risk (an issuer’s inability to meet principal and interest payments on its obligations) than are more highly rated securities, which react primarily to movements in the general level of interest rates. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic developments in a specific industry or region.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses on sales of securities are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts on debt securities as adjustments to interest income. Expenses are recorded on the accrual basis. Net investment income or loss (other than distribution fees, which are charged to the respective class) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund declares dividends from net investment income daily and payment is made monthly. Prior to March 21, 2011, the Fund paid dividends of net investment income quarterly. Distributions of net realized capital and currency gains, if any, are paid annually. Foreign currency losses may reduce the amount of dividends of net investment income. Dividends and distributions are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. Permanent book/tax differences relating to income and gains are reclassified to paid-in capital when they arise.
Taxes: For federal income tax purposes, the Fund is treated as a separate taxpaying entity. It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.
Withholding taxes on foreign interest are recorded, net of reclaimable amounts, at the time the related income is earned.
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Notes to Financial Statements
(Unaudited) continued
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those amounts.
Note 2. Agreements
The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to PI is accrued daily and payable monthly at an annual rate of .65% of the Fund’s average daily net assets up to $1 billion and .60% of such assets in excess of $1 billion. The effective management fee rate was .65% for the six months ended April 30, 2011.
PI has voluntarily agreed to reimburse the Fund in order to limit operating expenses (excluding distribution and service (12b-1) fees, interest, taxes, brokerage commissions and certain extraordinary expenses) to 1.10% of the average daily net assets of the Class A, B, C, and Z shares, respectively, which for the six months ended April 30, 2011 amounted to $45,427.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Class A, B and C Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1% and 1% of the average daily net
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assets of the Class A, B, and C shares, respectively. Through February 29, 2012, PIMS has contractually agreed to limit such fees to .25% of the average daily net assets of the Class A shares. Through February 28, 2011, PIMS had contractually agreed to limit such fees to .75% of the average daily net assets of the Class C shares.
PIMS has advised the Fund that it has received $120,828 in front-end sales charges resulting from sales of Class A shares during the six months ended April 30, 2011. 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 April 30, 2011, it received $25,365, $4,679 and $1,626 in contingent deferred sales charges imposed upon redemptions by certain Class A, Class B and Class C shareholders, respectively.
PI, PIM and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund invests in the Prudential Core Taxable Money Market Fund (the “Core Fund”), a portfolio of the Prudential Investment Portfolios 2 registered under the 1940 Act, as amended, and managed by PI. Earnings from the Core Fund are disclosed on the Statement of Operations as affiliated dividend income.
Note 4. Portfolio Securities
Purchases and sales of portfolio securities, excluding short-term investments and U.S. Government securities, for the six months ended April 30, 2011 aggregated $39,532,109 and $42,341,988, respectively.
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Notes to Financial Statements
(Unaudited) continued
Transactions in options written during the six months ended April 30, 2011, were as follows:
Contracts | Premiums Received | |||||||
Options outstanding at October 31, 2010 | — | $ | — | |||||
Options written | 40 | 120,534 | ||||||
Options terminated in closing purchase transactions | (40 | ) | (120,534 | ) | ||||
Options expired | — | — | ||||||
Options outstanding at April 30, 2011 | — | $ | — | |||||
Note 5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2011 were as follows:
Tax Basis | Appreciation | Depreciation | Net | |||
$133,657,904 | $6,807,449 | $(713,474) | $6,093,975 |
The differences between book and tax basis are primarily attributable to the deferred losses on wash sales, deferred losses on foreign currencies and difference in the treatment of amortization of premiums as of the most recent fiscal year end.
For the federal income tax purposes, the Fund had a capital loss carryforward as of October 31, 2010, of approximately $9,773,700, of which $2,252,000 expires in 2014, $279,500 expires in 2015, $4,766,500 expires in 2016 and $2,475,700 expires in 2017. As of October 31, 2010, approximately $5,629,400 of the capital loss carryforward was written off due to expiration. The Fund utilized approximately $1,952,400 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended October 31, 2010. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such carryforward. Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carryforward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) for an unlimited period. However, any post-enactment losses are required to be utilized before the utilization of losses incurred prior to the effective date of the
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Act. As a result of this ordering rule, capital loss carryforwards related to the taxable years beginning prior to the effective date of the Act may have an increased likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are sold with a front-end sales charge of up to 4.50%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (CDSC) of 1%, including investors who purchase their shares through broker-dealers affiliated with Prudential. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class C shares are sold with a CDSC of 1% during the first 12 months. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. In addition, under certain limited circumstances, an exchange may be made from Class A, Class B or Class C to Class Z shares of the Fund. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
There are 2 billion authorized shares of common stock at $.01 par value per share, divided equally into Class A, B, C and Z shares.
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Notes to Financial Statements
(Unaudited) continued
Class A | Shares | Amount | ||||||
Six months ended April 30, 2011: | ||||||||
Shares sold | 959,116 | $ | 6,591,167 | |||||
Shares issued in reinvestment of dividends | 1,122,501 | 7,302,435 | ||||||
Shares reacquired | (1,738,233 | ) | (11,779,322 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 343,384 | 2,114,280 | ||||||
Shares issued upon conversion from Class B | 34,706 | 238,388 | ||||||
Shares reacquired upon conversion into Class Z | (10,308 | ) | (71,747 | ) | ||||
Net increase (decrease) in shares outstanding | 367,782 | $ | 2,280,921 | |||||
Year ended October 31, 2010: | ||||||||
Shares sold | 1,713,037 | $ | 11,908,197 | |||||
Shares issued in reinvestment of dividends | 1,281,011 | 8,566,590 | ||||||
Shares reacquired | (2,306,028 | ) | (15,789,823 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 688,020 | 4,684,964 | ||||||
Shares issued upon conversion from Class B | 50,664 | 348,663 | ||||||
Net increase (decrease) in shares outstanding | 738,684 | $ | 5,033,627 | |||||
Class B | ||||||||
Six months ended April 30, 2011: | ||||||||
Shares sold | 93,114 | $ | 630,239 | |||||
Shares issued in reinvestment of dividends | 27,991 | 181,717 | ||||||
Shares reacquired | (78,802 | ) | (534,309 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 42,303 | 277,647 | ||||||
Shares reacquired upon conversion into Class A | (34,783 | ) | (238,388 | ) | ||||
Net increase (decrease) in shares outstanding | 7,520 | $ | 39,259 | |||||
Year ended October 31, 2010: | ||||||||
Shares sold | 222,353 | $ | 1,546,827 | |||||
Shares issued in reinvestment of dividends | 33,534 | 224,146 | ||||||
Shares reacquired | (164,189 | ) | (1,108,733 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 91,698 | 662,240 | ||||||
Shares reacquired upon conversion into Class A | (50,738 | ) | (348,663 | ) | ||||
Net increase (decrease) in shares outstanding | 40,960 | $ | 313,577 | |||||
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Class C | Shares | Amount | ||||||
Six months ended April 30, 2011: | ||||||||
Shares sold | 675,672 | $ | 4,567,383 | |||||
Shares issued in reinvestment of dividends | 59,969 | 389,235 | ||||||
Shares reacquired | (243,722 | ) | (1,649,898 | ) | ||||
Net increase (decrease) in shares outstanding | 491,919 | $ | 3,306,720 | |||||
Year ended October 31, 2010: | ||||||||
Shares sold | 455,034 | $ | 3,190,267 | |||||
Shares issued in reinvestment of dividends | 52,235 | 347,794 | ||||||
Shares reacquired | (261,183 | ) | (1,774,953 | ) | ||||
Net increase (decrease) in shares outstanding | 246,086 | $ | 1,763,108 | |||||
Class Z | ||||||||
Six months ended April 30, 2011: | ||||||||
Shares sold | 580,098 | $ | 3,946,958 | |||||
Shares issued in reinvestment of dividends | 48,240 | 315,296 | ||||||
Shares reacquired | (290,637 | ) | (1,938,340 | ) | ||||
Net increase (decrease) in shares outstanding before conversion | 337,701 | 2,323,914 | ||||||
Shares issued upon conversion from Class A | 10,264 | 71,747 | ||||||
Net increase (decrease) in shares outstanding | 347,965 | $ | 2,395,661 | |||||
Year ended October 31, 2010: | ||||||||
Shares sold | 560,270 | $ | 4,022,994 | |||||
Shares issued in reinvestment of dividends | 52,099 | 349,432 | ||||||
Shares reacquired | (378,248 | ) | (2,592,441 | ) | ||||
Net increase (decrease) in shares outstanding | 234,121 | $ | 1,779,985 | |||||
Note 7. Borrowings
The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $750 million for the period December 17, 2010 through December 16, 2011. The Funds pay an annualized commitment fee of 0.10% of the unused portion of the SCA. Prior to December 17, 2010, the Funds had another Syndicated Credit Agreement (the “Expired SCA”) of a $500 million commitment with an annualized commitment fee of 0.15% of the unused portion. Interest on any borrowings under these SCA’s is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.
The Fund utilized the SCA during the period ended April 30, 2011. The average daily balance for the 7 days that the Fund had loans outstanding during the period was approximately $349,000 at a weighted average interest rate of 1.47%.
Prudential Global Total Return Fund, Inc. | 67 |
Notes to Financial Statements
(Unaudited) continued
Note 8. New Accounting Pronouncements
In April 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-03 “Reconsideration of Effective control for Repurchase Agreements”. The objective of ASU 2011-03 is to improve the accounting for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. Under previous guidance, whether or not to account for a transaction as a sale was based on, in part, if the entity maintained effective control over the transferred financial assets. ASU 2011-03 removes the transferor’s ability criterion from the effective control assessment. This guidance is effective prospectively for interim and annual reporting periods beginning on or after December 15, 2011. At this time, management is evaluating the implications of ASU No. 2011-03 and its impact on the financial statements has not been determined.
In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU No. 2011-04 and its impact on the financial statements has not been determined.
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Financial Highlights
(Unaudited)
Class A Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | Ten Months Ended October 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007(b) | 2006 | 2005 | ||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $7.42 | $7.20 | $5.76 | $7.00 | $6.69 | $6.51 | $7.55 | |||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | .12 | .27 | .30 | .31 | .20 | .19 | .16 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | .10 | .66 | 1 .46 | (1.11 | ) | .32 | .16 | (.74 | ) | |||||||||||||||||||||||||||||||
Total from investment operations | .22 | .93 | 1 .76 | (.80 | ) | .52 | .35 | (.58 | ) | |||||||||||||||||||||||||||||||
Less Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income* | (.59 | ) | (.71 | ) | (.32 | ) | (.44 | ) | (.21 | ) | (.17 | ) | (.40 | ) | ||||||||||||||||||||||||||
Tax return of capital distributions | - | - | - | - | - | - | (.06 | ) | ||||||||||||||||||||||||||||||||
Total dividends and distributions | (.59 | ) | (.71 | ) | (.32 | ) | (.44 | ) | (.21 | ) | (.17 | ) | (.46 | ) | ||||||||||||||||||||||||||
Net asset value, end of period | $7.05 | $7.42 | $7.20 | $5.76 | $7.00 | $6.69 | $6.51 | |||||||||||||||||||||||||||||||||
Total Return(c): | 3.67% | 14.25% | 31.42% | (12.19)% | 7.81% | 5.66% | (7.94)% | |||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $120,072 | $123,507 | $114,554 | $97,894 | $122,811 | $131,477 | $151,399 | |||||||||||||||||||||||||||||||||
Average net assets (000) | $114,642 | $112,110 | $103,462 | $119,545 | $123,600 | $139,865 | $169,867 | |||||||||||||||||||||||||||||||||
Ratios to average net assets(h): | ||||||||||||||||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees(d) | 1.35% | (e)(f) | 1.35% | (e) | 1.35% | (e) | 1.36% | (e) | 1.36% | (e)(f) | 1.36% | (e) | 1.35% | (e) | ||||||||||||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | 1.10% | (e)(f) | 1.10% | (e) | 1.10% | (e) | 1.11% | (e) | 1.11% | (e)(f) | 1.11% | (e) | 1.10% | (e) | ||||||||||||||||||||||||||
Net investment income | 3.59% | (e)(f) | 3.97% | (e) | 4.78% | (e) | 4.55% | (e) | 3.63% | (e)(f) | 2.87% | (e) | 2.30% | (e) | ||||||||||||||||||||||||||
For Class A, B, C and Z shares: | ||||||||||||||||||||||||||||||||||||||||
Portfolio turnover rate | 60% | (g) | 117% | 164% | 292% | 234% | (g) | 233% | 307% |
(a) Calculated based on average shares outstanding during the period.
(b) For the ten month period ended October 31, 2007. The Fund changed its fiscal year end from December 31 to October 31.
(c) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(d) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets of the Class A shares.
(e) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 1.35% of the average daily net assets of Class A. If the manager had not reimbursed the Fund, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 1.42%, 1.17%, and 2.23%, respectively, for the year ended December 31, 2005, 1.42%, 1.17% and 2.81%, respectively, for the year ended December 31, 2006, 1.37%, 1.12% and 3.62%, respectively, for the ten-month period ended October 31, 2007, 1.44%, 1.19% and 4.47%, respectively, for the year ended October 31, 2008, 1.51%, 1.26% and 4.62%, respectively for the year ended October 31, 2009, 1.42%, 1.17% and 3.90%, respectively, for the year ended October 31, 2010 and 1.42%, 1.17% and 3.52%, respectively, for the six months ended April 30, 2011.
(f) Annualized.
(g) Not annualized.
(h) Does not include expenses of the underlying portfolios in which the Fund invests.
* Dividends from net investment income include other items that are ordinary income for tax purposes.
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 69 |
Financial Highlights
(Unaudited) continued
Class B Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | Ten Months Ended October 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007(b) | 2006 | 2005 | ||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $7.41 | $7.19 | $5.76 | $6.98 | $6.69 | $6 .51 | $7.56 | |||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | .10 | .22 | .25 | .26 | .16 | .14 | .11 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | .09 | .66 | 1.45 | (1.10 | ) | .30 | .17 | (.74 | ) | |||||||||||||||||||||||||||||||
Total from investment operations | .19 | .88 | 1.70 | (.84 | ) | .46 | .31 | (.63 | ) | |||||||||||||||||||||||||||||||
Less Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income* | (.55 | ) | (.66 | ) | (.27 | ) | (.38 | ) | (.17 | ) | (.13 | ) | (.36 | ) | ||||||||||||||||||||||||||
Tax return of capital distributions | - | - | - | - | - | - | (.06 | ) | ||||||||||||||||||||||||||||||||
Total dividends and distributions | (.55 | ) | (.66 | ) | (.27 | ) | (.38 | ) | (.17 | ) | (.13 | ) | (.42 | ) | ||||||||||||||||||||||||||
Net asset value, end of period | $7.05 | $7.41 | $7.19 | $5.76 | $6.98 | $6.69 | $6.51 | |||||||||||||||||||||||||||||||||
Total Return(c): | 3.32% | 13.40% | 30.25% | (12.67)% | 7.06% | 4.90% | (8.60)% | |||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $3,206 | $3,312 | $2,920 | $3,275 | $3,508 | $3,874 | $5,513 | |||||||||||||||||||||||||||||||||
Average net assets (000) | $3,035 | $3,082 | $2,927 | $3,957 | $3,627 | $4,726 | $6,792 | |||||||||||||||||||||||||||||||||
Ratios to average net assets(f): | ||||||||||||||||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees | 2.10% | (d)(e) | 2.10% | (d) | 2.10% | (d) | 2.11% | (d) | 2.11% | (d)(e) | 2.11% | (d) | 2.10% | (d) | ||||||||||||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | 1.10% | (d)(e) | 1.10% | (d) | 1.10% | (d) | 1.11% | (d) | 1.11% | (d)(e) | 1.11% | (d) | 1.10% | (d) | ||||||||||||||||||||||||||
Net investment income | 2.84% | (d)(e) | 3.23% | (d) | 4.03% | (d) | 3.80% | (d) | 2.86% | (d)(e) | 2.09% | (d) | 1.54% | (d) |
(a) Calculated based on average shares outstanding during the period.
(b) For the ten month period ended October 31, 2007. The Fund changed its fiscal year end from December 31 to October 31.
(c) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(d) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 2.10% of the average daily net assets of Class B. If the manager had not reimbursed the Fund, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 2.17%, 1.17%, and 1.47%, respectively, for the year ended December 31, 2005, 2.17%, 1.17% and 2.03%, respectively, for the year ended December 31, 2006, 2.12%, 1.12% and 2.86%, respectively, for the ten-month period ended October 31, 2007, 2.19%, 1.19%, 3.72%, respectively, for the year ended October 31, 2008, 2.26%, 1.26% and 3.87%, respectively, for the year ended October 31, 2009, 2.17%, 1.17% and 3.16%, respectively, for the year ended October 31, 2010 and 2.17%, 1.17% and 2.77%, respectively, for the six months ended April 30, 2011.
(e) Annualized.
(f) Does not include expenses of the underlying portfolios in which the Fund invests.
* Dividends from net investment income include other items that are ordinary income for tax purposes.
See Notes to Financial Statements.
70 | Visit our website at www.prudentialfunds.com |
Class C Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | Ten Months Ended October 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007(b) | 2006 | 2005 | ||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $7.39 | $7.17 | $5.74 | $6.97 | $6.68 | $6.50 | $7.55 | |||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | .10 | .23 | .27 | .28 | �� | .17 | .16 | .13 | ||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | .10 | .67 | 1.45 | (1.10 | ) | .31 | .17 | (.75 | ) | |||||||||||||||||||||||||||||||
Total from investment operations | .20 | .90 | 1.72 | (.82 | ) | .48 | .33 | (.62 | ) | |||||||||||||||||||||||||||||||
Less Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income* | (.56 | ) | (.68 | ) | (.29 | ) | (.41 | ) | (.19 | ) | (.15 | ) | (.37 | ) | ||||||||||||||||||||||||||
Tax return of capital distributions | - | - | - | - | - | - | (.06 | ) | ||||||||||||||||||||||||||||||||
Total dividends and distributions | (.56 | ) | (.68 | ) | (.29 | ) | (.41 | ) | (.19 | ) | (.15 | ) | (.43 | ) | ||||||||||||||||||||||||||
Net asset value, end of period | $7.03 | $7.39 | $7.17 | $5.74 | $6.97 | $6.68 | $6.50 | |||||||||||||||||||||||||||||||||
Total Return(c): | 3.46% | 13.75% | 30.73% | (12.51)% | 7.29% | 5.11% | (8.43)% | |||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $9,337 | $6,180 | $4,236 | $3,702 | $2,277 | $1,056 | $1,161 | |||||||||||||||||||||||||||||||||
Average net assets (000) | $6,871 | $4,563 | $3,467 | $3,974 | $1,279 | $1,470 | $1,311 | |||||||||||||||||||||||||||||||||
Ratios to average net assets(g): | ||||||||||||||||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees(d) | 1.95% | (e)(f) | 1.85% | (e) | 1.85% | (e) | 1.86% | (e) | 1.86% | (e)(f) | 1.86% | (e) | 1.85% | (e) | ||||||||||||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | 1.10% | (e)(f) | 1.10% | (e) | 1.10% | (e) | 1.11% | (e) | 1.11% | (e)(f) | 1.11% | (e) | 1.10% | (e) | ||||||||||||||||||||||||||
Net investment income | 3.00% | (e)(f) | 3.45% | (e) | 4.28% | (e) | 4.07% | (e) | 3.17% | (e)(f) | 2.34% | (e) | 1.80% | (e) |
(a) Calculated based on average shares outstanding during the period.
(b) For the ten month period ended October 31, 2007. The Fund changed its fiscal year end from December 31 to October 31.
(c) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(d) The distributor of the Fund had contractually agreed to limit its distribution and service (12b-1) fees to .75% of the average daily net assets of the Class C shares through February 28, 2011.
(e) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 1.95% (1.85% through February 28, 2011) of the average daily net assets of Class C. If the manager had not reimbursed the Fund, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 1.92%, 1.17% and 1.73%, respectively, for the year ended December 31, 2005, 1.93%, 1.18% and 2.27%, respectively, for the year ended December 31, 2006, 1.87%, 1.12% and 3.32%, respectively, for the ten-month period ended October 31, 2007, 1.94%, 1.19% and 3.99%, respectively, for the year ended October 31, 2008, 2.01%, 1.26% and 4.12%, respectively, for the year ended October 31, 2009, 1.92%, 1.17% and 3.38%, respectively, for the year ended October 31, 2010 and 2.02%, 1.17% and 2.93%, respectively, for the six months ended April 30, 2011.
(f) Annualized.
(g) Does not include expenses of the underlying portfolios in which the Fund invests.
* Dividends from net investment income include other items that are ordinary income for tax purposes.
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 71 |
Financial Highlights
(Unaudited) continued
Class Z Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | Ten Months Ended October 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007(b) | 2006 | 2005 | ||||||||||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $7.44 | $7.22 | $5.78 | $7.02 | $6.72 | $6.53 | $7.56 | |||||||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | .13 | .28 | .32 | .32 | .21 | .20 | 0.18 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | .10 | .67 | 1.45 | (1.10 | ) | .31 | .17 | (.74 | ) | |||||||||||||||||||||||||||||||
Total from investment operations | .23 | .95 | 1.77 | (.78 | ) | .52 | .37 | (.56 | ) | |||||||||||||||||||||||||||||||
Less Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income* | (.60 | ) | (.73 | ) | (.33 | ) | (.46 | ) | (.22 | ) | (.18 | ) | (.41 | ) | ||||||||||||||||||||||||||
Tax return of capital distributions | - | - | - | - | - | - | (.06 | ) | ||||||||||||||||||||||||||||||||
Total dividends and distributions | (.60 | ) | (.73 | ) | (.33 | ) | (.46 | ) | (.22 | ) | (.18 | ) | (.47 | ) | ||||||||||||||||||||||||||
Net asset value, end of period | $7.07 | $7.44 | $7.22 | $5.78 | $7.02 | $6.72 | $6.53 | |||||||||||||||||||||||||||||||||
Total Return(c): | 3.81% | 14.49% | 31.62% | (11.90)% | 7.99% | 5.84% | (7.62)% | |||||||||||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $7,192 | $4,978 | $3,141 | $1,823 | $2,163 | $2,160 | $4,415 | |||||||||||||||||||||||||||||||||
Average net assets (000) | $5,300 | $3,507 | $1,942 | $2,147 | $2,053 | $3,212 | $4,901 | |||||||||||||||||||||||||||||||||
Ratios to average net assets(f): | ||||||||||||||||||||||||||||||||||||||||
Expenses, including distribution and service (12b-1) fees | 1.10% | (d)(e) | 1.10% | (d) | 1.10% | (d) | 1.11% | (d) | 1.11% | (d)(e) | 1.11% | (d) | 1.10% | (d) | ||||||||||||||||||||||||||
Expenses, excluding distribution and service (12b-1) fees | 1.10% | (d)(e) | 1.10% | (d) | 1.10% | (d) | 1.11% | (d) | 1.11% | (d)(e) | 1.11% | (d) | 1.10% | (d) | ||||||||||||||||||||||||||
Net investment income | 3.84% | (d)(e) | 4.25% | (d) | 5.03% | (d) | 4.78% | (d) | 3.86% | (d)(e) | 3.06% | (d) | 2.55% | (d) |
(a) Calculated based on average shares outstanding during the period.
(b) For the ten month period ended October 31, 2007. The Fund changed its fiscal year end from December 31 to October 31.
(c) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(d) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 1.10% of the average daily net assets of Class Z. If the manager had not reimbursed the Fund, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 1.17%, 1.17% and 2.48%, respectively, for the year ended December 31, 2005, 1.17%, 1.17% and 3.00%, respectively, for the year ended December 31, 2006, 1.12%, 1.12% and 3.85%, respectively, for the ten-month period ended October 31, 2007, 1.19%, 1.19% and 4.70%, respectively, for the year ended October 31, 2008, 1.26%, 1.26%, 4.88%, respectively, for the year ended October 31, 2009, 1.17%, 1.17% and 4.18%, respectively, for the year ended October 31, 2010 and 1.17%, 1.17% and 3.77%, respectively, for the six months ended April 30, 2011.
(e) Annualized.
(f) Does not include expenses of the underlying portfolios in which the Fund invests.
* Dividends from net investment income include other items that are ordinary income for tax purposes.
See Notes to Financial Statements.
72 | Visit our website at www.prudentialfunds.com |
n MAIL | n TELEPHONE | n WEBSITE | ||
Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | (800) 225-1852 | www.prudentialfunds.com |
PROXY VOTING |
The Board of Directors 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 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Commission’s website. |
DIRECTORS |
Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Michael S. Hyland • Douglas H. McCorkindale • Stephen P. Munn • Richard A. Redeker • Judy A. Rice • Robin B. Smith • Stephen G. Stoneburn |
OFFICERS |
Judy A. Rice, President • Scott E. Benjamin, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Kathryn L. Quirk, Chief Legal Officer • Deborah A. Docs, Secretary • Timothy J. Knierim, Chief Compliance Officer • Valerie M. Simpson, Deputy Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • John P. Schwartz, Assistant Secretary • Andrew R. French, Assistant Secretary • M. Sadiq Peshimam, Assistant Treasurer • Peter Parrella, Assistant Treasurer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
| ||||
INVESTMENT SUBADVISER | Prudential Investment Management, Inc. | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | One Wall Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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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, if available, the summary prospectus, contain this and other information about the Fund. An investor may obtain a prospectus and, if available, the summary prospectus, by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and, if available, the summary prospectus, should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via e-mail when new materials are available. You can cancel your enrollment or change your e-mail address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Global Total Return Fund, Inc., Prudential Investments, Attn: Board of Directors, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling (202) 551-8090. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each fiscal quarter. |
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 Global Total Return Fund, Inc. | ||||||||||||
Share Class | A | B | C | Z | ||||||||
NASDAQ | GTRAX | PBTRX | PCTRX | PZTRX | ||||||||
CUSIP | 74439A103 | 74439A202 | 74439A301 | 74439A400 | ||||||||
MF169E2 0203253-00001-00
Item 2 – Code of Ethics – Not required, as this is not an annual filing.
Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.
Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.
Item 5 – Audit Committee of Listed Registrants – Not applicable.
Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.
Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
Item 10 – Submission of Matters to a Vote of Security Holders – Not applicable.
Item 11 – Controls and Procedures
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – Exhibits
(a) | (1 | ) | Code of Ethics – Not required, as this is not an annual filing. | |||||
(2 | ) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. | ||||||
(3 | ) | Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. | ||||||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | Prudential Global Total Return Fund, Inc. | |||||||
By: | /s/ Deborah A. Docs | |||||||
Deborah A. Docs | ||||||||
Secretary | ||||||||
Date: | June 20, 2011 |
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/ Judy A. Rice | |||||||
Judy A. Rice | ||||||||
President and Principal Executive Officer | ||||||||
Date: | June 20, 2011 | |||||||
By: | /s/ Grace C. Torres | |||||||
Grace C. Torres | ||||||||
Treasurer and Principal Financial Officer | ||||||||
Date: | June 20, 2011 |