UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
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Investment Company Act file number: | | 811-04661 |
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Exact name of registrant as specified in charter: | | Prudential Global Total Return Fund, Inc. |
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Address of principal executive offices: | | Gateway Center 3, |
| | 100 Mulberry Street, |
| | Newark, New Jersey 07102 |
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Name and address of agent for service: | | Deborah A. Docs |
| | Gateway Center 3, |
| | 100 Mulberry Street, |
| | Newark, New Jersey 07102 |
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Registrant’s telephone number, including area code: | | 800-225-1852 |
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Date of fiscal year end: | | 10/31/2014 |
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Date of reporting period: | | 4/30/2014 |
Item 1 – Reports to Stockholders
PRUDENTIAL INVESTMENTS»MUTUAL FUNDS
PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC.
SEMIANNUAL REPORT · APRIL 30, 2014
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, 2014, were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS). Prudential Fixed Income is a unit of Prudential Investment Management, Inc. (PIM), a registered investment adviser. PIMS and PIM are Prudential Financial Companies. © 2014 Prudential Financial, Inc. and its related entities. Prudential Investments LLC, Prudential, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
June 16, 2014
Dear Shareholder:
We hope you find the semiannual report for the Prudential Global Total Return Fund, Inc. informative and useful. The report covers performance for the six-month period that ended April 30, 2014.
We recognize that ongoing market volatility may make it a difficult time to be an investor. We continue to believe a prudent response to uncertainty is to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
Prudential Investments® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers* that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.
Thank you for choosing the Prudential Investments family of funds.
Sincerely,
Stuart S. Parker, President
Prudential Global Total Return Fund, Inc.
*Most of Prudential Investments’ equity funds are advised by Jennison Associates LLC, Quantitative Management Associates LLC (QMA), or Prudential Real Estate Investors. Prudential Investments’ fixed income and money market funds are advised by Prudential Investment Management, Inc. (PIM) through its Prudential Fixed Income unit. Jennison Associates, QMA, and PIM are registered investment advisers and Prudential Financial companies. Prudential Real Estate Investors is a unit of PIM.
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Prudential Global Total Return Fund, Inc. | | | 1 | |
Your Fund’s Performance (Unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852.
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Cumulative Total Returns (Without Sales Charges) as of 4/30/14 |
| | Six Months | | | One Year | | | Five Years | | | Ten Years | | | Since Inception |
Class A | | | 3.75 | % | | | 1.28 | % | | | 62.75 | % | | | 83.40 | % | | — |
Class B | | | 3.37 | | | | 0.39 | | | | 56.86 | | | | 70.15 | | | — |
Class C | | | 3.37 | | | | 0.53 | | | | 58.13 | | | | 73.54 | | | — |
Class Q | | | 4.97 | | | | 2.55 | | | | N/A | | | | N/A | | | 12.63% (2/3/12) |
Class Z | | | 3.86 | | | | 1.53 | | | | 64.78 | | | | 88.08 | | | — |
Barclays Global Aggregate Bond Index | | | 2.10 | | | | 1.62 | | | | 28.52 | | | | 63.00 | | | — |
Lipper Global Income Funds Average | | | 2.57 | | | | –0.13 | | | | 40.05 | | | | 63.48 | | | — |
Lipper Custom Global Income Funds Average* | | | 2.72 | | | | –0.40 | | | | 41.30 | | | | 65.09 | | | — |
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Average Annual Total Returns (With Sales Charges) as of 3/31/14 |
| | | | | One Year | | | Five Years | | | Ten Years | | | Since Inception |
Class A | | | | | | | –1.82 | % | | | 9.64 | % | | | 5.12 | % | | — |
Class B | | | | | | | –2.74 | | | | 9.71 | | | | 4.84 | | | — |
Class C | | | | | | | 1.06 | | | | 10.00 | | | | 5.03 | | | — |
Class Q | | | | | | | 3.21 | | | | N/A | | | | N/A | | | 4.45% (2/3/12) |
Class Z | | | | | | | 3.20 | | | | 10.92 | | | | 5.87 | | | — |
Barclays Global Aggregate Bond Index | | | | | | | 1.87 | | | | 5.10 | | | | 4.50 | | | — |
Lipper Global Income Funds Average | | | | | | | 0.77 | | | | 7.18 | | | | 4.58 | | | — |
Lipper Custom Global Income Funds Average* | | | | | | | 0.34 | | | | 7.30 | | | | 4.63 | | | — |
*The Lipper Custom Global Income Funds Average consists only of un-hedged funds within Lipper’s Global Income Funds Universe and not the entire Global Income Funds Universe, although Lipper classifies the Fund in the Global Income Funds Performance Universe. The Lipper Custom Global Income Funds Average is utilized because the Manager believes that the funds included in this Universe provide a more appropriate basis for Fund performance comparisons.
Source: Prudential Investments LLC and Lipper Inc.
Inception returns are provided for any share class with less than 10 calendar years of returns.
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2 | | Visit our website at www.prudentialfunds.com |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
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| | Class A | | Class B | | Class C | | Class Q | | Class Z |
Maximum initial sales charge | | 4.50% of the public offering price | | None | | None | | None | | None |
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or sale proceeds) | | 1% on sales of $1 million or more made within 12 months of purchase | | 5% (Yr. 1) 4% (Yr. 2) 3% (Yr. 3) 2% (Yr. 4) 1% (Yr. 5/6) 0% (Yr. 7) | | 1% on sales made within 12 months of purchase | | None | | None |
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | | .30%
(.25% currently) | | 1% | | 1% | | None | | None |
Benchmark Definitions
Barclays Global Aggregate Bond Index
The Barclays 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, and agency and corporate securities. Barclays Global Aggregate Bond Index Closest Month-End to Inception cumulative total return as of 4/30/14 is 3.49% for Class Q. Barclays Global Aggregate Bond Index Closest Month-End to Inception average annual total return as of 3/31/14 is 1.07% for Class Q.
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. Lipper Average Closest Month-End to Inception cumulative total return as of 4/30/14 is 6.84% for Class Q. Lipper Average Closest Month-End to Inception average annual total return as of 3/31/14 is 2.72% for Class Q.
Lipper Custom Global Income Funds Average
The Lipper Custom Global Income Funds Average consists only of un-hedged funds within Lipper’s Global Income Funds Universe and not the entire Global Income Funds Universe, although Lipper classifies the Fund in the Global Income Funds Performance Universe. Lipper Custom Global Income Funds Average Closest Month-End to Inception cumulative total return as of 4/30/14 is 5.90% for Class Q. Lipper Custom Global Income Funds Average Closest Month-End to Inception average annual total return as of 3/31/14 is 2.21% for Class Q.
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Prudential Global Total Return Fund, Inc. | | | 3 | |
Your Fund’s Performance (continued)
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
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Five Largest Long-Term Holdings expressed as a percentage of net assets as of 4/30/14 | |
Italy Buoni Poliennali del Tesoro, Bonds, 4.750%, 05/01/17 | | | 3.3 | % |
U.S. Treasury Notes, 1.625%, 04/30/19 | | | 2.6 | |
Spain Government Bond, Bonds, 5.850%, 01/31/22 | | | 2.5 | |
Russian Foreign Bond—Eurobond, Sr. Unsec’d. Notes, RegS, 7.500%, 03/31/30 | | | 1.9 | |
Catamaran CLO Ltd., Series 2014-1A, Class A2, 144A, 2.005%, 04/20/26 | | | 1.9 | |
Holdings reflect only long-term investments and are subject to change.
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Distributions and Yields as of 4/30/14 | |
| | Total Distributions Paid for Six Months | | | 30-Day SEC Yield | | | 30-Day Unsubsidized SEC Yield | |
Class A | | $ | 0.14 | | | | 1.11 | % | | | 1.06 | % |
Class B | | | 0.12 | | | | 0.42 | | | | 0.42 | |
Class C | | | 0.12 | | | | 0.43 | | | | 0.43 | |
Class Q | | | 0.16 | | | | 1.53 | | | | 1.53 | |
Class Z | | | 0.15 | | | | 1.40 | | | | 1.40 | |
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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, 2013, at the beginning of the period, and held through the six-month period ended April 30, 2014. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table 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.
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
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Prudential Global Total Return Fund, Inc. | | | 5 | |
Fees and Expenses (continued)
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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Prudential Global Total Return Fund, Inc. | | Beginning Account Value November 1, 2013 | | | Ending Account Value April 30, 2014 | | | Annualized Expense Ratio Based on the Six-Month Period | | | Expenses Paid During the Six-Month Period* | |
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Class A | | Actual | | $ | 1,000.00 | | | $ | 1,037.50 | | | | 1.30 | % | | $ | 6.57 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,018.35 | | | | 1.30 | % | | $ | 6.51 | |
| | | | | | | | | | | | | | | | | | |
Class B | | Actual | | $ | 1,000.00 | | | $ | 1,033.70 | | | | 2.05 | % | | $ | 10.34 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,014.63 | | | | 2.05 | % | | $ | 10.24 | |
| | | | | | | | | | | | | | | | | | |
Class C | | Actual | | $ | 1,000.00 | | | $ | 1,033.70 | | | | 2.05 | % | | $ | 10.34 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,014.63 | | | | 2.05 | % | | $ | 10.24 | |
| | | | | | | | | | | | | | | | | | |
Class Q | | Actual | | $ | 1,000.00 | | | $ | 1,049.70 | | | | 1.07 | % | | $ | 5.44 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,019.49 | | | | 1.07 | % | | $ | 5.36 | |
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Class Z | | Actual | | $ | 1,000.00 | | | $ | 1,038.60 | | | | 1.04 | % | | $ | 5.26 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,019.64 | | | | 1.04 | % | | $ | 5.21 | |
*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, 2014, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2014 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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6 | | Visit our website at www.prudentialfunds.com |
The Fund’s annual expense ratios for the period ended April 30, 2014, are as follows:
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Class | | Gross Operating Expenses | | | Net Operating Expenses | |
A | | | 1.35 | % | | | 1.30 | % |
B | | | 2.05 | | | | 2.05 | |
C | | | 2.05 | | | | 2.05 | |
Q | | | 1.07 | | | | 1.07 | |
Z | | | 1.04 | | | | 1.04 | |
Net operating expenses shown above reflect any fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.
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Prudential Global Total Return Fund, Inc. | | | 7 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited)
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
LONG-TERM INVESTMENTS 100.5% | | | | | | | | | | | | | | |
| | | | |
FOREIGN BONDS 65.7% | | | | | | | | | | | | | | |
| | | | |
Australia 0.2% | | | | | | | | | | | | | | |
FMG Resources (August 2006) Pty Ltd., Gtd. Notes, 144A | | 6.000% | | | 04/01/17 | | | | 600 | | | $ | 631,500 | |
| | | | |
Belgium 1.7% | | | | | | | | | | | | | | |
Kingdom of Belgium, | | | | | | | | | | | | | | |
Notes, 144A | | 8.875 | | | 12/01/24 | | | | 500 | | | | 682,563 | |
Notes, MTN | | 5.000 | | | 04/24/18 | | | GBP | 2,000 | | | | 3,725,603 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 4,408,166 | |
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Brazil 3.0% | | | | | | | | | | | | | | |
Brazil Notas do Tesouro Nacionalie B, Series NTNB, Notes | | 6.000 | | | 08/15/50 | | | BRL | 424 | | | | 427,739 | |
Brazilian Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 4.875 | | | 01/22/21 | | | | 500 | | | | 540,000 | |
Unsec’d. Notes | | 11.000 | | | 06/26/17 | | | EUR | 2,371 | | | | 4,207,014 | |
Cia Energetica de Sao Paulo, Sr. Unsec’d. Notes, MTN, 144A | | 9.750 | | | 01/15/15 | | | BRL | 2,850 | | | | 1,937,886 | |
JBS USA LLC/JBS USA Finance, Inc., Gtd. Notes, 144A (original cost $175,275; purchased 12/08/11)(a)(b) | | 7.250 | | | 06/01/21 | | | | 190 | | | | 204,963 | |
Minerva Luxembourg SA, Gtd. Notes, 144A | | 12.250 | | | 02/10/22 | | | | 200 | | | | 227,000 | |
Schahin II Finance Co. SPV Ltd., Sr. Sec’d. Notes, 144A | | 5.875 | | | 09/25/22 | | | | 232 | | | | 218,237 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 7,762,839 | |
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Bulgaria 0.1% | | | | | | | | | | | | | | |
Bulgaria Government International Bond, Sr. Unsec’d. Notes, RegS | | 4.250 | | | 07/09/17 | | | EUR | 100 | | | | 150,735 | |
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Canada 0.4% | | | | | | | | | | | | | | |
Agrium, Inc., Sr. Unsec’d. Notes | | 6.125 | | | 01/15/41 | | | | 25 | | | | 29,115 | |
Barrick North America Finance LLC, Gtd. Notes | | 5.750 | | | 05/01/43 | | | | 120 | | | | 121,517 | |
Canadian Government Bond, Unsec’d. Notes(c) | | 2.750 | | | 06/01/22 | | | CAD | 200 | | | | 190,382 | |
Canadian Pacific Railway Co., Sr. Unsec’d. Notes | | 6.500 | | | 05/15/18 | | | | 77 | | | | 89,402 | |
TransAlta Corp., Sr. Unsec’d. Notes | | 6.650 | | | 05/15/18 | | | | 200 | | | | 227,739 | |
Xstrata Finance Canada Ltd., Gtd. Notes, 144A | | 2.850 | | | 11/10/14 | | | | 250 | | | | 252,063 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 910,218 | |
See Notes to Financial Statements.
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Prudential Global Total Return Fund, Inc. | | | 9 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
China 2.1% | | | | | | | | | | | | | | |
China Government Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 1.800 % | | | 12/01/15 | | | CNH | 1,000 | | | $ | 158,866 | |
Sr. Unsec’d. Notes | | 2.380 | | | 07/19/14 | | | CNH | 15,060 | | | | 2,406,386 | |
Sr. Unsec’d. Notes | | 3.300 | | | 10/27/14 | | | CNH | 2,970 | | | | 477,163 | |
Sr. Unsec’d. Notes, RegS | | 1.850 | | | 06/29/15 | | | CNH | 12,000 | | | | 1,908,093 | |
China Government International Bond, Sr. Unsec’d. Notes | | 4.250 | | | 10/28/14 | | | EUR | 280 | | | | 394,801 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 5,345,309 | |
| | | | |
Colombia 0.9% | | | | | | | | | | | | | | |
Colombia Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 4.000 | | | 02/26/24 | | | | 1,000 | | | | 1,008,500 | |
Sr. Unsec’d. Notes | | 11.750 | | | 02/25/20 | | | | 715 | | | | 1,034,069 | |
Pacific Rubiales Energy Corp., Gtd. Notes, 144A | | 5.375 | | | 01/26/19 | | | | 200 | | | | 205,500 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 2,248,069 | |
| | | | |
Costa Rica 0.2% | | | | | | | | | | | | | | |
Costa Rica Government International Bond, Sr. Unsec’d. Notes, 144A | | 4.375 | | | 04/30/25 | | | | 500 | | | | 442,500 | |
| | | | |
Croatia 0.6% | | | | | | | | | | | | | | |
Croatia Government International Bond, Sr. Unsec’d. Notes | | 6.500 | | | 01/05/15 | | | EUR | 1,050 | | | | 1,505,296 | |
| | | | |
Cyprus 2.0% | | | | | | | | | | | | | | |
Cyprus Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN, RegS | | 3.750 | | | 11/01/15 | | | EUR | 1,300 | | | | 1,779,204 | |
Sr. Unsec’d. Notes, MTN, RegS | | 4.625 | | | 02/03/20 | | | EUR | 2,400 | | | | 3,242,397 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 5,021,601 | |
| | | | |
Czech Republic 0.5% | | | | | | | | | | | | | | |
Czech Republic International, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN | | 3.625 | | | 04/14/21 | | | EUR | 284 | | | | 445,819 | |
Sr. Unsec’d. Notes, RegS | | 2.875 | | | 11/23/16 | | | CHF | 600 | | | | 724,963 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 1,170,782 | |
| | | | |
Finland 0.3% | | | | | | | | | | | | | | |
Finland Government International Bond, Sr. Unsec’d. Notes, MTN | | 2.250 | | | 01/18/17 | | | SEK | 5,000 | | | | 793,415 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
France 1.6% | | | | | | | | | | | | | | |
French Treasury Notes BTAN, Bonds(c)(d) | | 2.500 % | | | 07/25/16 | | | EUR | 2,900 | | | $ | 4,222,059 | |
| | | | |
Germany 1.1% | | | | | | | | | | | | | | |
Bundesobligation, Bonds | | 1.000 | | | 10/12/18 | | | EUR | 490 | | | | 695,171 | |
RWE AG, Jr. Sub. Notes, RegS | | 4.625(e) | | | 09/28/49 | | | EUR | 200 | | | | 286,071 | |
Techem Energy Metering Service GmbH & Co. KG, Gtd. Notes, MTN, 144A | | 7.875 | | | 10/01/20 | | | EUR | 275 | | | | 428,657 | |
Techem GmbH, Sr. Sec’d. Notes, MTN, 144A | | 6.125 | | | 10/01/19 | | | EUR | 500 | | | | 755,383 | |
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, Sr. Sec’d. Notes, 144A | | 5.500 | | | 09/15/22 | | | EUR | 450 | | | | 668,008 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 2,833,290 | |
| | | | |
Greece 2.5% | | | | | | | | | | | | | | |
Hellenic Republic Government Bond, | | | | | | | | | | | | | | |
Bonds, Series PSI, RegS | | 2.000(f) | | | 02/24/23 | | | EUR | 850 | | | | 946,637 | |
Sr. Unsec’d. Notes, Series 9RG | | 5.800 | | | 07/14/15 | | | JPY | 150,000 | | | | 1,452,536 | |
Unsec’d. Notes, RegS | | 4.750 | | | 04/17/19 | | | EUR | 500 | | | | 688,869 | |
Hellenic Republic Government International Bond, Sr. Unsec’d. Notes, Series 12RG(a) | | 5.250 | | | 02/01/16 | | | JPY | 340,000 | | | | 3,259,158 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 6,347,200 | |
| | | | |
Hong Kong 0.1% | | | | | | | | | | | | | | |
Hong Kong SAR Government Bond, Sr. Unsec’d. Notes, RegS | | 5.125 | | | 08/01/14 | | | | 200 | | | | 202,048 | |
| | | | |
Hungary 3.0% | | | | | | | | | | | | | | |
Hungary Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 4.000 | | | 03/25/19 | | | | 332 | | | | 335,320 | |
Sr. Unsec’d. Notes, MTN | | 4.000 | | | 05/20/16 | | | CHF | 600 | | | | 704,579 | |
Sr. Unsec’d. Notes, RegS | | 4.375 | | | 07/04/17 | | | EUR | 1,000 | | | | 1,458,088 | |
Sr. Unsec’d. Notes, RegS | | 5.500 | | | 05/06/14 | | | GBP | 325 | | | | 548,782 | |
Sr. Unsec’d. Notes, RegS | | 5.750 | | | 06/11/18 | | | EUR | 500 | | | | 767,148 | |
Sr. Unsec’d. Notes, RegS | | 6.000 | | | 01/11/19 | | | EUR | 2,500 | | | | 3,913,360 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 7,727,277 | |
| | | | |
Iceland 0.4% | | | | | | | | | | | | | | |
Iceland Government International Bond, Unsec’d. Notes, RegS | | 4.875 | | | 06/16/16 | | | | 1,000 | | | | 1,050,000 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 11 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
India 0.6% | | | | | | | | | | | | | | |
Bharti Airtel International Netherlands BV, Gtd. Notes, 144A | | 5.125 % | | | 03/11/23 | | | | 200 | | | $ | 195,600 | |
State Bank of India, Sr. Unsec’d. Notes, MTN, RegS | | 4.500 | | | 11/30/15 | | | EUR | 700 | | | | 1,007,920 | |
Vedanta Resources PLC, Sr. Unsec’d. Notes, 144A | | 6.000 | | | 01/31/19 | | | | 350 | | | | 348,688 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 1,552,208 | |
| | | | |
Indonesia 1.3% | | | | | | | | | | | | | | |
Pertamina Persero PT, Sr. Unsec’d. Notes, 144A | | 4.300 | | | 05/20/23 | | | | 500 | | | | 454,375 | |
Perusahaan Penerbit SBSN Indonesia, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, RegS | | 4.000 | | | 11/21/18 | | | | 2,200 | | | | 2,255,000 | |
Unsec’d. Notes, 144A | | 6.125 | | | 03/15/19 | | | | 375 | | | | 412,500 | |
PT Adaro Indonesia, Gtd. Notes, RegS | | 7.625 | | | 10/22/19 | | | | 130 | | | | 136,825 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 3,258,700 | |
| | | | |
Ireland 2.0% | | | | | | | | | | | | | | |
CRH America, Inc., Gtd. Notes | | 8.125 | | | 07/15/18 | | | | 110 | | | | 135,174 | |
Ireland Government Bond, | | | | | | | | | | | | | | |
Bonds | | 4.400 | | | 06/18/19 | | | EUR | 2,230 | | | | 3,558,781 | |
Unsec’d. Notes, RegS | | 3.400 | | | 03/18/24 | | | EUR | 1,000 | | | | 1,454,981 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 5,148,936 | |
| | | | |
Israel 0.6% | | | | | | | | | | | | | | |
Israel Government International Bond, Sr. Unsec’d. Notes, MTN | | 3.750 | | | 10/12/15 | | | EUR | 1,000 | | | | 1,445,338 | |
| | | | |
Italy 7.4% | | | | | | | | | | | | | | |
Italy Buoni Poliennali del Tesoro, | | | | | | | | | | | | | | |
Bonds | | 4.750 | | | 05/01/17 | | | EUR | 5,520 | | | | 8,455,142 | |
Bonds | | 5.500 | | | 11/01/22 | | | EUR | 700 | | | | 1,164,964 | |
Bonds | | 6.500 | | | 11/01/27 | | | EUR | 2,295 | | | | 4,201,684 | |
Italy Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN, RegS | | 2.500 | | | 03/02/15 | | | CHF | 100 | | | | 115,044 | |
Sr. Unsec’d. Notes, MTN, RegS | | 5.750 | | | 07/25/16 | | | EUR | 201 | | | | 306,733 | |
Sr. Unsec’d. Notes, MTN, RegS | | 6.000 | | | 08/04/28 | | | GBP | 100 | | | | 187,567 | |
Sr. Unsec’d. Notes, RegS | | 3.450 | | | 03/24/17 | | | JPY | 125,000 | | | | 1,278,930 | |
Sr. Unsec’d. Notes, RegS | | 3.700 | | | 11/14/16 | | | JPY | 93,000 | | | | 962,997 | |
Sr. Unsec’d. Notes, RegS | | 4.500 | | | 06/08/15 | | | JPY | 144,000 | | | | 1,461,919 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
Italy (cont’d.) | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, RegS | | 5.500 % | | | 12/15/14 | | | JPY | 62,000 | | | $ | 623,632 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 18,758,612 | |
| | | | |
Japan 0.4% | | | | | | | | | | | | | | |
MUFG Capital Finance 1 Ltd., Bank Gtd. Notes | | 6.346(e) | | | 07/29/49 | | | | 120 | | | | 131,160 | |
Nomura Holdings, Inc., Sr. Unsec’d. Notes, MTN | | 2.000 | | | 09/13/16 | | | | 800 | | | | 810,552 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 941,712 | |
| | | | |
Latvia 0.4% | | | | | | | | | | | | | | |
Republic of Latvia, Sr. Unsec’d. Notes, RegS | | 5.250 | | | 02/22/17 | | | | 1,000 | | | | 1,085,000 | |
| | | | |
Lithuania 0.6% | | | | | | | | | | | | | | |
Lithuania Government International Bond, Sr. Unsec’d. Notes | | 3.750 | | | 02/10/16 | | | EUR | 1,000 | | | | 1,456,021 | |
| | | | |
Malaysia 0.3% | | | | | | | | | | | | | | |
1Malaysia Sukuk Global Bhd, Sr. Unsec’d. Notes, RegS | | 3.928 | | | 06/04/15 | | | | 825 | | | | 848,925 | |
| | | | |
Mexico 4.5% | | | | | | | | | | | | | | |
Mexico Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 2.750 | | | 04/22/23 | | | EUR | 2,075 | | | | 2,893,139 | |
Sr. Unsec’d. Notes, MTN | | 4.250 | | | 07/14/17 | | | EUR | 2,984 | | | | 4,545,963 | |
Sr. Unsec’d. Notes, MTN | | 5.625 | | | 01/15/17 | | | | 526 | | | | 585,175 | |
Sr. Unsec’d. Notes, MTN | | 6.750 | | | 02/06/24 | | | GBP | 840 | | | | 1,724,590 | |
Sr. Unsec’d. Notes, MTN | | 11.000 | | | 05/08/17 | | | ITL | 250,000 | | | | 229,282 | |
Petroleos Mexicanos, | | | | | | | | | | | | | | |
Gtd. Notes | | 3.500 | | | 01/30/23 | | | | 370 | | | | 350,575 | |
Gtd. Notes | | 4.875 | | | 01/24/22 | | | | 300 | | | | 314,925 | |
Gtd. Notes, MTN | | 8.250 | | | 06/02/22 | | | GBP | 206 | | | | 439,724 | |
United Mexican States, Sr. Unsec’d. Notes, MTN | | 5.625 | | | 03/19/2114 | | | GBP | 200 | | | | 332,218 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 11,415,591 | |
| | | | |
Netherlands 0.2% | | | | | | | | | | | | | | |
UPCB Finance III Ltd., Sr. Sec’d. Notes, 144A | | 6.625 | | | 07/01/20 | | | | 475 | | | | 507,062 | |
| | | | |
Panama 1.3% | | | | | | | | | | | | | | |
Panama Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 5.200 | | | 01/30/20 | | | | 800 | | | | 887,000 | |
Sr. Unsec’d. Notes | | 6.700 | | | 01/26/36 | | | | 1,700 | | | | 2,042,125 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 13 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
Panama (cont’d.) | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 10.750 % | | | 05/15/20 | | | | 275 | | | $ | 367,125 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 3,296,250 | |
| | | | |
Peru 1.1% | | | | | | | | | | | | | | |
Peruvian Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 7.350 | | | 07/21/25 | | | | 500 | | | | 655,000 | |
Sr. Unsec’d. Notes, RegS | | 9.910 | | | 05/05/15 | | | PEN | 5,800 | | | | 2,194,104 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 2,849,104 | |
| | | | |
Philippines 2.3% | | | | | | | | | | | | | | |
Philippine Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 3.900 | | | 11/26/22 | | | PHP | 60,000 | | | | 1,288,695 | |
Sr. Unsec’d. Notes | | 6.250 | | | 03/15/16 | | | EUR | 2,881 | | | | 4,342,284 | |
Power Sector Assets & Liabilities Management Corp., Gtd. Notes, RegS | | 7.250 | | | 05/27/19 | | | | 250 | | | | 300,625 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 5,931,604 | |
| | | | |
Poland 2.4% | | | | | | | | | | | | | | |
Poland Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN | | 3.625 | | | 02/01/16 | | | EUR | 500 | | | | 730,438 | |
Sr. Unsec’d. Notes, MTN, RegS | | 2.625 | | | 05/12/15 | | | CHF | 3,000 | | | | 3,484,377 | |
Sr. Unsec’d. Notes, RegS | | 2.340 | | | 11/13/14 | | | JPY | 200,000 | | | | 1,977,063 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 6,191,878 | |
| | | | |
Portugal 2.2% | | | | | | | | | | | | | | |
Portugal Government International Bond, Sr. Unsec’d. Notes, MTN, RegS | | 3.500 | | | 03/25/15 | | | | 300 | | | | 305,625 | |
Portugal Obrigacoes do Tesouro OT, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, RegS | | 3.850 | | | 04/15/21 | | | EUR | 300 | | | | 436,712 | |
Sr. Unsec’d. Notes, RegS | | 4.750 | | | 06/14/19 | | | EUR | 2,410 | | | | 3,691,898 | |
Sr. Unsec’d. Notes, RegS | | 6.400 | | | 02/15/16 | | | EUR | 750 | | | | 1,135,717 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 5,569,952 | |
| | | | |
Romania 1.4% | | | | | | | | | | | | | | |
Romanian Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, RegS | | 5.000 | | | 03/18/15 | | | EUR | 1,307 | | | | 1,873,645 | |
Sr. Unsec’d. Notes, RegS | | 6.500 | | | 06/18/18 | | | EUR | 1,000 | | | | 1,608,629 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 3,482,274 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
Russia 2.7% | | | | | | | | | | | | | | |
Gazprom OAO Via Gaz Capital SA, Sr. Unsec’d. Notes, 144A | | 6.510 % | | | 03/07/22 | | | | 500 | | | $ | 495,000 | |
Lukoil International Finance BV, Gtd. Notes, 144A | | 7.250 | | | 11/05/19 | | | | 130 | | | | 138,288 | |
Raspadskaya OJSC via Raspadskaya Securities Ltd., Sr. Unsec’d. Notes, 144A | | 7.750 | | | 04/27/17 | | | | 250 | | | | 225,000 | |
Rosneft Finance SA, Gtd. Notes, 144A | | 6.625 | | | 03/20/17 | | | | 175 | | | | 181,344 | |
Russian Foreign Bond - Eurobond, Sr. Unsec’d. Notes, RegS | | 7.500 | | | 03/31/30 | | | | 4,453 | | | | 4,964,537 | |
Sibur Securities Ltd., Gtd. Notes, 144A | | 3.914 | | | 01/31/18 | | | | 300 | | | | 263,250 | |
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC, Sr. Unsec’d. Notes, 144A | | 7.748 | | | 02/02/21 | | | | 295 | | | | 295,737 | |
VTB Bank OJSC Via VTB Capital SA, Sr. Unsec’d. Notes, 144A | | 6.875 | | | 05/29/18 | | | | 315 | | | | 315,000 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 6,878,156 | |
| | | | |
Serbia 0.3% | | | | | | | | | | | | | | |
Republic of Serbia, Bonds, 144A | | 4.875 | | | 02/25/20 | | | | 750 | | | | 743,437 | |
| | | | |
Singapore 0.2% | | | | | | | | | | | | | | |
Berau Capital Resources, Sr. Sec’d. Notes, RegS | | 12.500 | | | 07/08/15 | | | | 400 | | | | 415,000 | |
| | | | |
Slovak Republic 0.4% | | | | | | | | | | | | | | |
Slovakia Government International Bond, Sr. Unsec’d. Notes, RegS | | 4.375 | | | 05/21/22 | | | | 1,000 | | | | 1,054,470 | |
| | | | |
Slovenia 2.2% | | | | | | | | | | | | | | |
Slovenia Government Bond, Sr. Unsec’d. Notes, RegS | | 4.375 | | | 02/06/19 | | | EUR | 300 | | | | 453,413 | |
Slovenia Government International Bond, | | | | | | | | | | | | | | |
Bonds, 144A | | 4.125 | | | 02/18/19 | | | | 300 | | | | 309,000 | |
Bonds, 144A | | 5.850 | | | 05/10/23 | | | | 1,500 | | | | 1,631,250 | |
Sr. Unsec’d. Notes, 144A | | 4.750 | | | 05/10/18 | | | | 1,500 | | | | 1,588,125 | |
Sr. Unsec’d Notes, RegS | | 4.750 | | | 05/10/18 | | | | 1,500 | | | | 1,588,125 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 5,569,913 | |
| | | | |
South Africa 1.3% | | | | | | | | | | | | | | |
Sasol Financing International PLC, Gtd. Notes | | 4.500 | | | 11/14/22 | | | | 400 | | | | 393,000 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 15 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
South Africa (cont’d.) | | | | | | | | | | | | | | |
South Africa Government International Bond, Unsec’d. Notes, MTN | | 4.500 % | | | 04/05/16 | | | EUR | 2,047 | | | $ | 3,006,744 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 3,399,744 | |
| | | | |
South Korea 0.5% | | | | | | | | | | | | | | |
Republic of Korea, Sr. Unsec’d. Notes | | 3.625 | | | 11/02/15 | | | EUR | 880 | | | | 1,266,367 | |
| | | | |
Spain 6.1% | | | | | | | | | | | | | | |
Autonomous Community of Madrid Spain, Sr. Unsec’d. Notes | | 4.110 | | | 06/23/16 | | | EUR | 100 | | | | 146,865 | |
Sr. Unsec’d. Notes | | 5.500 | | | 02/14/17 | | | EUR | 176 | | | | 271,591 | |
Sr. Unsec’d. Notes | | 6.213 | | | 06/21/16 | | | EUR | 68 | | | | 104,000 | |
Nara Cable Funding Ltd., Sr. Sec’d. Notes, RegS | | 8.875 | | | 12/01/18 | | | EUR | 400 | | | | 599,445 | |
Spain Government Bond, | | | | | | | | | | | | | | |
Bonds | | 2.750 | | | 04/30/19 | | | EUR | 500 | | | | 728,621 | |
Bonds | | 4.800 | | | 01/31/24 | | | EUR | 1,500 | | | | 2,399,276 | |
Bonds | | 5.850 | | | 01/31/22 | | | EUR | 3,705 | | | | 6,323,789 | |
Spain Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN, 144A | | 4.000 | | | 03/06/18 | | | | 3,660 | | | | 3,909,905 | |
Sr. Unsec’d. Notes, RegS | | 4.000 | | | 03/06/18 | | | | 1,000 | | | | 1,068,280 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 15,551,772 | |
| | | | |
Turkey 0.9% | | | | | | | | | | | | | | |
Export Credit Bank of Turkey, Sr. Unsec’d. Notes, 144A | | 5.375 | | | 11/04/16 | | | | 200 | | | | 210,000 | |
Turkey Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 5.500 | | | 02/16/17 | | | EUR | 1,148 | | | | 1,739,520 | |
Sr. Unsec’d. Notes | | 5.875 | | | 04/02/19 | | | EUR | 247 | | | | 385,509 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 2,335,029 | |
| | | | |
United Kingdom 1.3% | | | | | | | | | | | | | | |
HSBC Holdings PLC, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 4.875 | | | 01/14/22 | | | | 150 | | | | 166,597 | |
Sr. Unsec’d. Notes | | 5.100 | | | 04/05/21 | | | | 85 | | | | 95,634 | |
Sub. Notes | | 6.500 | | | 09/15/37 | | | | 125 | | | | 150,647 | |
Lloyds Bank PLC, | | | | | | | | | | | | | | |
Bank Gtd. Notes, MTN, 144A | | 5.800 | | | 01/13/20 | | | | 245 | | | | 283,247 | |
Gtd. Notes | | 4.200 | | | 03/28/17 | | | | 575 | | | | 622,195 | |
Gtd. Notes | | 6.375 | | | 01/21/21 | | | | 500 | | | | 601,937 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
FOREIGN BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
United Kingdom (cont’d.) | | | | | | | | | | | | | | |
Royal Bank of Scotland Group PLC, | | | | | | | | | | | | | | |
Bank Gtd. Notes | | 6.125 % | | | 01/11/21 | | | | 325 | | | $ | 381,396 | |
Sr. Unsec’d. Notes, MTN | | 6.400 | | | 10/21/19 | | | | 150 | | | | 173,624 | |
Virgin Media Secured Finance PLC, Sr. Sec’d. Notes, 144A | | 6.000 | | | 04/15/21 | | | GBP | 500 | | | | 886,405 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 3,361,682 | |
| | | | |
Uruguay 0.1% | | | | | | | | | | | | | | |
Uruguay Government International Bond, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 6.875 | | | 01/19/16 | | | EUR | 103 | | | | 155,329 | |
Sr. Unsec’d. Notes | | 7.000 | | | 06/28/19 | | | EUR | 119 | | | | 200,158 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 355,487 | |
| | | | | | | | | | | | | | |
TOTAL FOREIGN BONDS (cost $156,333,368) | | | | | | | | | | | | | 167,442,528 | |
| | | | | | | | | | | | | | |
| | | | |
ASSET-BACKED SECURITIES 12.7% | | | | | | | | | | | | | | |
| | | | |
Collateralized Debt Obligations 0.4% | | | | | | | | | | | | | | |
GEMC Ltd., Series 2005-8A, Class A3, 144A | | 1.148(e) | | | 06/23/17 | | | | 1,000 | | | | 960,379 | |
| | | | |
Collateralized Loan Obligations 4.0% | | | | | | | | | | | | | | |
Anchorage Capital CLO 3 Ltd., Series 2014-3A, Class A2A, 144A | | 2.516(e) | | | 04/28/26 | | | | 250 | | | | 248,808 | |
Ares Enhanced Loan Investment Strategy II Ltd., Series 2005-2A, Class A2, 144A | | 0.488(e) | | | 01/26/20 | | | | 62 | | | | 61,850 | |
Avoca CLO II BV, Series II-A, Class A1, 144A | | 0.729(e) | | | 01/15/20 | | | EUR | 240 | | | | 332,514 | |
Battalion CLO Ltd., Series 2014-5A, Class A2A, 144A | | 2.370(e) | | | 04/17/26 | | | | 500 | | | | 493,950 | |
Catamaran CLO Ltd., Series 2014-1A, Class A2, 144A | | 2.005(e) | | | 04/20/26 | | | | 5,000 | | | | 4,785,200 | |
Four Corners CLO III Ltd., Series 2006-3A, Class A, 144A | | 0.478(e) | | | 07/22/20 | | | | 340 | | | | 337,470 | |
KVK CLO Ltd., | | | | | | | | | | | | | | |
Series 2014-1A, Class A1, 144A | | 1.823(e) | | | 05/15/26 | | | | 250 | | | | 250,382 | |
Series 2014-1A, Class B, 144A | | 2.483(e) | | | 05/15/26 | | | | 250 | | | | 248,767 | |
LightPoint Pan-European CLO PLC, Series 2006-1A, Class A, 144A | | 0.595(e) | | | 01/31/22 | | | EUR | 124 | | | | 169,835 | |
Limerock CLO II Ltd., Series 2014-2A, Class B1, 144A | | 2.335(e) | | | 04/18/26 | | | | 500 | | | | 497,748 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 17 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | |
| | | | |
Collateralized Loan Obligations (cont’d.) | | | | | | | | | | | | | | |
Mountain Capital CLO IV Ltd., Series 2005-4A, Class A1L, 144A | | 0.483(e) % | | | 03/15/18 | | | | 44 | | | $ | 43,885 | |
North Westerly CLO BV, Series II-A, Class A, 144A | | 0.785(e) | | | 09/14/19 | | | EUR | 65 | | | | 89,457 | |
Palmer Square CLO Ltd., Series 2014-1A, Class A2, 144A | | 2.065(e) | | | 10/17/22 | | | | 1,350 | | | | 1,336,500 | |
Regatta III Funding Ltd., Series 2014-1A, Class A2, 144A | | 2.353(e) | | | 04/15/26 | | | | 250 | | | | 248,814 | |
Rosedale CLO Ltd., Series I-A, Class B, 144A | | 0.699(e) | | | 07/24/21 | | | | 500 | | | | 487,998 | |
Shackleton CLO Ltd., Series 2013-3A, Class B2, 144A | | 3.440 | | | 04/15/25 | | | | 250 | | | | 246,463 | |
Slater Mill Loan Fund LP, Series 2012-1A, Class B, 144A | | 2.886(e) | | | 08/17/22 | | | | 250 | | | | 246,946 | |
Trimaran CLO VI Ltd., Series 2006-2A, Class A1L, 144A | | 0.475(e) | | | 11/01/18 | | | | 139 | | | | 138,003 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 10,264,590 | |
| | | |
Residential Mortgage-Backed Securities 8.3% | | | | | | | | | | | | |
ACE Securities Corp. Home Equity Loan Trust, | | | | | | | | | | | | |
Series 2004-FM1, Class M1 | | 1.052(e) | | | 09/25/33 | | | | 275 | | | | 255,674 | |
Series 2005-HE2, Class M4 | | 1.112(e) | | | 04/25/35 | | | | 1,000 | | | | 902,343 | |
Aegis Asset-Backed Securities Trust, Mortgage Pass-Through Certificates, Series 2004-2, Class A5 | | 1.052(e) | | | 06/25/34 | | | | 449 | | | | 444,328 | |
Ameriquest Mortgage Securities, Inc., Asset-Backed Pass-Through Certificates, | | | | | | | | | | | | | | |
Series 2002-3, Class M3 | | 3.002(e) | | | 08/25/32 | | | | 688 | | | | 644,065 | |
Series 2004-R8, Class M1 | | 1.112(e) | | | 09/25/34 | | | | 400 | | | | 396,083 | |
Argent Securities, Inc., Asset-Backed Pass-Through Certificates, | | | | | | | | | | | | | | |
Series 2004-W6, Class M1 | | 0.702(e) | | | 05/25/34 | | | | 214 | | | | 208,291 | |
Series 2005-W2, Class A2C | | 0.512(e) | | | 10/25/35 | | | | 1,452 | | | | 1,315,149 | |
Asset-Backed Securities Corp. Home Equity Loan Trust, Series 2004-HE1, Class M1 | | 1.202(e) | | | 01/15/34 | | | | 1,218 | | | | 1,170,464 | |
Bear Stearns Asset-Backed Securities Trust, | | | | | | | | | | | | | | |
Series 2004-HE2, Class M1 | | 1.054(e) | | | 03/25/34 | | | | 340 | | | | 317,485 | |
Series 2004-HE3, Class M2 | | 1.879(e) | | | 04/25/34 | | | | 247 | | | | 221,654 | |
Chase Funding Loan Acquisition Trust, Series 2004-AQ1, Class A2 | | 0.552(e) | | | 05/25/34 | | | | 209 | | | | 203,019 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | |
| | | |
Residential Mortgage-Backed Securities (cont’d.) | | | | | | | | | | | | |
Citicorp Residential Mortgage Trust, | | | | | | | | | | | | | | |
Series 2006-2, Class A4 | | 5.775 % | | | 09/25/36 | | | | 545 | | | $ | 573,135 | |
Citigroup Mortgage Loan Trust, Inc., Series 2004-OPT1, Class A2 | | 0.872(e) | | | 10/25/34 | | | | 71 | | | | 70,883 | |
Countrywide Asset-Backed Certificates, Series 2002-5, Class MV1 | | 1.652(e) | | | 03/25/33 | | | | 194 | | | | 189,730 | |
Finance America Mortgage Loan Trust, Series 2004-2, Class M1 | | 0.977(e) | | | 08/25/34 | | | | 982 | | | | 894,740 | |
Fremont Home Loan Trust, | | | | | | | | | | | | | | |
Series 2004-1, Class M1 | | 0.827(e) | | | 02/25/34 | | | | 421 | | | | 380,514 | |
Series 2004-B, Class M1 | | 1.022(e) | | | 05/25/34 | | | | 910 | | | | 836,968 | |
Granite Master Issuer PLC, | | | | | | | | | | | | | | |
Series 2007-1, Class 5A1, RegS | | 0.706(e) | | | 12/20/54 | | | GBP | 1,445 | | | | 2,417,155 | |
Series 2007-1, Class 6A1, RegS | | 0.676(e) | | | 12/20/54 | | | GBP | 277 | | | | 464,281 | |
GSAMP Trust, | | | | | | | | | | | | | | |
Series 2004-FM1, Class M1 | | 1.127(e) | | | 11/25/33 | | | | 201 | | | | 194,815 | |
Series 2005-HE5, Class M1 | | 0.782(e) | | | 11/25/35 | | | | 1,000 | | | | 939,932 | |
Home Equity Asset Trust, | | | | | | | | | | | | | | |
Series 2004-3, Class M1 | | 1.007(e) | | | 08/25/34 | | | | 616 | | | | 576,077 | |
Series 2005-9, Class 2A4 | | 0.492(e) | | | 04/25/36 | | | | 971 | | | | 907,806 | |
HSBC Home Equity Loan Trust U.S.A., Series 2007-2, Class A4 | | 0.452(e) | | | 07/20/36 | | | | 400 | | | | 391,149 | |
Long Beach Mortgage Loan Trust, Series 2004-3, Class M1 | | 1.007(e) | | | 07/25/34 | | | | 539 | | | | 517,992 | |
Mastr Asset-Backed Securities Trust, Series 2004-OPT2, Class A1 | | 0.852(e) | | | 09/25/34 | | | | 375 | | | | 346,637 | |
Merrill Lynch Mortgage Investors Trust, Series 2004-HE2, Class M1 | | 1.352(e) | | | 08/25/35 | | | | 224 | | | | 212,429 | |
Morgan Stanley ABS Capital I, Inc. Trust, Series 2003-NC8, Class M1 | | 1.202(e) | | | 09/25/33 | | | | 298 | | | | 280,317 | |
Series 2004-NC1, Class M1 | | 1.202(e) | | | 12/25/33 | | | | 353 | | | | 339,940 | |
Series 2004-OP1, Class M1 | | 1.022(e) | | | 11/25/34 | | | | 437 | | | | 387,806 | |
Series 2004-WMC1, Class M1 | | 1.082(e) | | | 06/25/34 | | | | 577 | | | | 536,858 | |
Series 2004-WMC2, Class M1 | | 1.067(e) | | | 07/25/34 | | | | 221 | | | | 210,625 | |
Morgan Stanley Dean Witter Capital I, Inc. Trust, Series 2002-AM3, Class A3 | | 1.132(e) | | | 02/25/33 | | | | 383 | | | | 362,524 | |
New Century Home Equity Loan Trust, | | | | | | | | | | | | | | |
Series 2003-4, Class M1 | | 1.277(e) | | | 10/25/33 | | | | 365 | | | | 353,026 | |
Series 2005-C, Class A2C | | 0.402(e) | | | 12/25/35 | | | | 720 | | | | 686,545 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 19 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | |
| | | |
Residential Mortgage-Backed Securities (cont’d.) | | | | | | | | | | | | |
Option One Mortgage Acceptance Corp., Asset-Backed Certificates, Series 2003-6, Class A2 | | 0.812(e) % | | | 11/25/33 | | | | 324 | | | $ | 301,022 | |
Popular ABS Mortgage Pass-Through Trust, Series 2004-4, Class M1 | | 4.895 | | | 09/25/34 | | | | 152 | | | | 145,289 | |
Structured Asset Investment Loan Trust, | | | | | | | | | | | | | | |
Series 2004-2, Class A4 | | 0.857(e) | | | 03/25/34 | | | | 106 | | | | 97,289 | |
Series 2004-8, Class A8 | | 1.152(e) | | | 09/25/34 | | | | 376 | | | | 368,465 | |
Structured Asset Securities Corp. Mortgage Loan Trust, Series 2005-NC2, Class M3 | | 0.582(e) | | | 05/25/35 | | | | 530 | | | | 497,268 | |
Wells Fargo Mortgage-Backed Securities Trust, Series 2007-5, Class 1A1 | | 5.500 | | | 05/25/37 | | | | 480 | | | | 504,284 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 21,064,056 | |
| | | | | | | | | | | | | | |
TOTAL ASSET-BACKED SECURITIES (cost $30,010,500) | | | | 32,289,025 | |
| | | | | | | | | | | | | | |
| | |
BANK LOANS(e) 1.3% | | | | | | | | | |
| | | | |
Consumer 0.1% | | | | | | | | | | | | | | |
OGF SA (France) | | 4.230 | | | 10/30/20 | | | EUR | 250 | | | | 349,655 | |
| | | | |
Financials 0.2% | | | | | | | | | | | | | | |
Scandlines GmbH (Germany) | | 4.750 | | | 12/03/20 | | | EUR | 375 | | | | 524,085 | |
| | | | |
Gaming 0.1% | | | | | | | | | | | | | | |
CCM Merger, Inc. | | 5.000 | | | 03/01/17 | | | | 123 | | | | 122,702 | |
| | | | |
Healthcare & Pharmaceutical 0.3% | | | | | | | | | | | | | | |
Alere, Inc. | | 3.150 | | | 06/30/16 | | | | 97 | | | | 97,342 | |
Alere, Inc. | | 4.250 | | | 06/30/17 | | | | 136 | | | | 135,571 | |
DaVita, Inc. | | 4.000 | | | 11/01/19 | | | | 220 | | | | 220,486 | |
Grifols SA | | 3.150 | | | 02/26/21 | | | | 175 | | | | 173,906 | |
RPI Finance Trust | | 3.250 | | | 11/09/18 | | | | 148 | | | | 148,339 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 775,644 | |
| | | | |
Retailers 0.3% | | | | | | | | | | | | | | |
Alliance Boots Holdings Ltd. (United Kingdom) | | 3.970 | | | 07/09/17 | | | GBP | 400 | | | | 675,356 | |
| | | | |
Technology 0.3% | | | | | | | | | | | | | | |
Avago Technologies Finance Pte Ltd. (Singapore) | | 3.750 | | | 05/31/21 | | | | 300 | | | | 300,657 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
BANK LOANS(e) (Continued) | | | | | | | | | |
| | | | |
Technology (cont’d.) | | | | | | | | | | | | | | |
First Data Corp. | | 4.150% | | | 09/24/18 | | | | 300 | | | $ | 299,625 | |
TransUnion LLC/TransUnion Financing Corp. | | 4.000 | | | 04/09/21 | | | | 250 | | | | 248,672 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 848,954 | |
| | | | | | | | | | | | | | |
TOTAL BANK LOANS (cost $3,188,371) | | | | 3,296,396 | |
| | | | | | | | | | | | | | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES 2.1% | |
FHLMC Multifamily Structured Pass-Through Certificates, | | | | | | | | | | | | | | |
Series K007, Class X1, IO | | 1.365(e) | | | 04/25/20 | | | | 18,654 | | | | 998,908 | |
Series K025, Class X1, IO | | 1.027(e) | | | 10/25/22 | | | | 20,611 | | | | 1,241,160 | |
GS Mortgage Securities Corp. II, Series 2014-GC20, Class XB, IO | | 0.337(e) | | | 04/10/47 | | | | 30,000 | | | | 1,064,745 | |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A1A | | 5.934(e) | | | 06/15/49 | | | | 1,809 | | | | 2,009,658 | |
| | | | | | | | | | | | | | |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (cost $5,348,436) | | | | 5,314,471 | |
| | | | | | | | | | | | | | |
| | |
CORPORATE BONDS 12.5% | | | | | | | | | |
|
Aerospace & Defense 0.2% | |
B/E Aerospace, Inc., Sr. Unsec’d. Notes | | 5.250 | | | 04/01/22 | | | | 350 | | | | 362,250 | |
Textron, Inc., Sr. Unsec’d. Notes | | 7.250 | | | 10/01/19 | | | | 200 | | | | 242,889 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 605,139 | |
| | | | |
Airlines 0.3% | | | | | | | | | | | | | | |
Continental Airlines, Inc., Pass-Through Trust, Pass-Through Certificates, Series 2010-1, Class A | | 4.750 | | | 01/12/21 | | | | 86 | | | | 92,719 | |
Delta Air Lines, Inc., Pass-Through Trust, Pass-Through Certificates, | | | | | | | | | | | | | | |
Series 2007-1 Class A | | 6.821 | | | 08/10/22 | | | | 195 | | | | 229,827 | |
Series 2010-2, Class A | | 4.950 | | | 05/23/19 | | | | 19 | | | | 21,051 | |
Series 2011-1, Class A | | 5.300 | | | 04/15/19 | | | | 191 | | | | 210,876 | |
UAL Pass-Through Trust, Pass-Through Certificates, Series 2007-071A, Class A | | 6.636 | | | 07/02/22 | | | | 104 | | | | 113,827 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 668,300 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 21 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
CORPORATE BONDS (Continued) | | | | | | | | | |
| | | | |
Banking 4.4% | | | | | | | | | | | | | | |
Bank of America Corp., | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series K | | 8.000%(e) | | | 12/29/49 | | | | 235 | | | $ | 266,138 | |
Jr. Sub. Notes, Series M | | 8.125(e) | | | 12/29/49 | | | | 700 | | | | 794,850 | |
Sr. Unsec’d. Notes, MTN | | 5.000 | | | 01/21/44 | | | | 30 | | | | 315,533 | |
Sr. Unsec’d. Notes, MTN | | 5.875 | | | 02/07/42 | | | | 410 | | | | 479,931 | |
Bear Stearns Cos. LLC (The), Sr. Unsec’d. Notes | | 7.250 | | | 02/01/18 | | | | 200 | | | | 237,870 | |
Citigroup, Inc., | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 4.500 | | | 01/14/22 | | | | 425 | | | | 454,378 | |
Sr. Unsec’d. Notes | | 8.125 | | | 07/15/39 | | | | 110 | | | | 161,409 | |
Sr. Unsec’d. Notes | | 8.500 | | | 05/22/19 | | | | 605 | | | | 770,812 | |
Sub. Notes | | 5.500 | | | 02/15/17 | | | | 300 | | | | 331,108 | |
Goldman Sachs Group, Inc. (The), | | | | | | | | | | | | | | |
Jr. Sub. Notes | | 5.700(e) | | | 12/31/49 | | | | 1,645 | | | | 1,679,956 | |
Sr. Unsec’d. Notes(c) | | 5.250 | | | 07/27/21 | | | | 1,200 | | | | 1,332,394 | |
Sr. Unsec’d. Notes | | 6.250 | | | 02/01/41 | | | | 205 | | | | 244,920 | |
Sub. Notes | | 6.750 | | | 10/01/37 | | | | 185 | | | | 212,796 | |
JPMorgan Chase & Co., | | | | | | | | | | | | | | |
Jr. Sub. Notes | | 7.900(e) | | | 12/29/49 | | | | 450 | | | | 508,500 | |
Sr. Unsec’d. Notes | | 4.250 | | | 10/15/20 | | | | 30 | | | | 32,254 | |
Sr. Unsec’d. Notes(c) | | 4.350 | | | 08/15/21 | | | | 830 | | | | 893,302 | |
Sr. Unsec’d. Notes | | 5.600 | | | 07/15/41 | | | | 500 | | | | 572,790 | |
Sr. Unsec’d. Notes | | 6.000 | | | 01/15/18 | | | | 150 | | | | 171,949 | |
Morgan Stanley, | | | | | | | | | | | | | | |
Jr. Sub. Notes | | 5.450(e) | | | 12/31/49 | | | | 1,415 | | | | 1,427,381 | |
Sr. Unsec’d. Notes | | 6.375 | | | 07/24/42 | | | | 325 | | | | 399,532 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 11,287,803 | |
| | | | |
Brokerage 0.2% | | | | | | | | | | | | | | |
Jefferies Group LLC, Sr. Unsec’d. Notes | | 6.875 | | | 04/15/21 | | | | 500 | | | | 580,910 | |
Lehman Brothers Holdings, Inc., Sr. Unsec’d. Notes(g) | | 6.875 | | | 05/02/18 | | | | 100 | | | | 18,625 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 599,535 | |
| | | | |
Building Materials & Construction 0.3% | | | | | | | | | | | | | | |
Owens Corning, Gtd. Notes | | 4.200 | | | 12/15/22 | | | | 270 | | | | 269,261 | |
Toll Brothers Finance Corp., Gtd. Notes | | 5.150 | | | 05/15/15 | | | | 420 | | | | 436,800 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 706,061 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
CORPORATE BONDS (Continued) | | | | | | | | | |
| | | | |
Cable 0.4% | | | | | | | | | | | | | | |
CSC Holdings LLC, | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 6.750 % | | | 11/15/21 | | | | 325 | | | $ | 361,969 | |
Sr. Unsec’d. Notes | | 8.625 | | | 02/15/19 | | | | 185 | | | | 220,612 | |
Time Warner Cable, Inc., Gtd. Notes | | 8.750 | | | 02/14/19 | | | | 300 | | | | 384,183 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 966,764 | |
| | | | |
Capital Goods 0.7% | | | | | | | | | | | | | | |
Actuant Corp., Gtd. Notes | | 5.625 | | | 06/15/22 | | | | 400 | | | | 422,000 | |
ERAC USA Finance LLC, Gtd. Notes, 144A (original cost $221,242; purchased 10/26/11)(a)(b) | | 7.000 | | | 10/15/37 | | | | 190 | | | | 245,857 | |
Penske Truck Leasing Co. LP/PTL Finance Corp., Unsec’d. Notes, 144A (original cost $124,879; purchased 05/08/12)(a)(b) | | 3.125 | | | 05/11/15 | | | | 125 | | | | 127,849 | |
United Rentals North America, Inc., Gtd. Notes | | 7.625 | | | 04/15/22 | | | | 750 | | | | 843,750 | |
Xylem, Inc., Sr. Unsec’d. Notes | | 4.875 | | | 10/01/21 | | | | 225 | | | | 240,512 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 1,879,968 | |
| | | | |
Chemicals 0.3% | | | | | | | | | | | | | | |
Ashland, Inc., | | | | | | | | | | | | | | |
Gtd. Notes | | 4.750 | | | 08/15/22 | | | | 300 | | | | 296,250 | |
Sr. Unsec’d. Notes | | 3.875 | | | 04/15/18 | | | | 175 | | | | 179,813 | |
Dow Chemical Co. (The), Sr. Unsec’d. Notes | | 9.400 | | | 05/15/39 | | | | 152 | | | | 245,018 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 721,081 | |
| | | | |
Consumer 0.2% | | | | | | | | | | | | | | |
QVC, Inc., Sr. Sec’d. Notes, 144A | | 7.500 | | | 10/01/19 | | | | 350 | | | | 370,818 | |
| | | | |
Electric 0.1% | | | | | | | | | | | | | | |
AES Corp. (The), Sr. Unsec’d. Notes | | 9.750 | | | 04/15/16 | | | | 250 | | | | 288,750 | |
Public Service Co. of New Mexico, Sr. Unsec’d. Notes | | 7.950 | | | 05/15/18 | | | | 50 | | | | 59,532 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 348,282 | |
| | | | |
Energy - Other 0.1% | | | | | | | | | | | | | | |
Anadarko Petroleum Corp., Sr. Unsec’d. Notes | | 6.450 | | | 09/15/36 | | | | 35 | | | | 43,247 | |
Nabors Industries, Inc., Gtd. Notes | | 4.625 | | | 09/15/21 | | | | 170 | | | | 178,393 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 221,640 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 23 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
CORPORATE BONDS (Continued) | | | | | | | | | |
| | | | |
Foods 0.3% | | | | | | | | | | | | | | |
ARAMARK Corp., Gtd. Notes | | 5.750 % | | | 03/15/20 | | | | 475 | | | $ | 498,156 | |
Stater Bros. Holdings, Inc., Gtd. Notes | | 7.750 | | | 04/15/15 | | | | 350 | | | | 351,575 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 849,731 | |
| | | | |
Gaming 0.1% | | | | | | | | | | | | | | |
Pinnacle Entertainment, Inc., Gtd. Notes | | 7.500 | | | 04/15/21 | | | | 205 | | | | 222,938 | |
| | | | |
Healthcare & Pharmaceutical 0.1% | | | | | | | | | | | | | | |
Amgen, Inc., | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 5.150 | | | 11/15/41 | | | | 280 | | | | 295,593 | |
Sr. Unsec’d. Notes | | 5.375 | | | 05/15/43 | | | | 45 | | | | 49,066 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 344,659 | |
| | | | |
Insurance 0.6% | | | | | | | | | | | | | | |
Allied World Assurance Co. Holdings Ltd., Gtd. Notes | | 5.500 | | | 11/15/20 | | | | 30 | | | | 33,510 | |
Chubb Corp. (The), Jr. Sub. Notes | | 6.375(e) | | | 03/29/67 | | | | 140 | | | | 155,400 | |
Hartford Financial Services Group, Inc. (The), Sr. Unsec’d. Notes | | 5.125 | | | 04/15/22 | | | | 175 | | | | 196,536 | |
Liberty Mutual Group, Inc., Sr. Unsec’d. Notes, 144A | | 6.500 | | | 03/15/35 | | | | 90 | | | | 106,695 | |
Lincoln National Corp., | | | | | | | | | | | | | | |
Jr. Sub. Notes | | 6.050(e) | | | 04/20/67 | | | | 30 | | | | 30,150 | |
Sr. Unsec’d. Notes | | 6.300 | | | 10/09/37 | | | | 80 | | | | 98,311 | |
Northwestern Mutual Life Insurance Co. (The), Sub. Notes, 144A | | 6.063 | | | 03/30/40 | | | | 50 | | | | 60,998 | |
Progressive Corp. (The), Jr. Sub. Notes | | 6.700(e) | | | 06/15/37 | | | | 100 | | | | 110,800 | |
Teachers Insurance & Annuity Association of America, Sub. Notes, 144A | | 6.850 | | | 12/16/39 | | | | 210 | | | | 278,322 | |
Unum Group, Sr. Unsec’d. Notes | | 7.125 | | | 09/30/16 | | | | 245 | | | | 278,910 | |
Willis Group Holdings PLC, Gtd. Notes | | 4.125 | | | 03/15/16 | | | | 100 | | | | 104,991 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 1,454,623 | |
| | | | |
Media & Entertainment 0.9% | | | | | | | | | | | | | | |
21st Century Fox America, Inc., | | | | | | | | | | | | | | |
Gtd. Notes | | 6.150 | | | 03/01/37 | | | | 415 | | | | 491,460 | |
Gtd. Notes | | 6.900 | | | 08/15/39 | | | | 60 | | | | 76,550 | |
Historic TW, Inc., Gtd. Notes | | 6.625 | | | 05/15/29 | | | | 225 | | | | 277,991 | |
Liberty Interactive LLC, Sr. Unsec’d. Notes | | 8.250 | | | 02/01/30 | | | | 500 | | | | 547,500 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
CORPORATE BONDS (Continued) | | | | | | | | | |
| | | | |
Media & Entertainment (cont’d.) | | | | | | | | | | | | | | |
RR Donnelley & Sons Co., Sr. Unsec’d. Notes | | 8.600 % | | | 08/15/16 | | | | 450 | | | $ | 515,250 | |
SSI Investments II Ltd./SSI Co-Issuer LLC, Gtd. Notes | | 11.125 | | | 06/01/18 | | | | 200 | | | | 212,000 | |
Viacom, Inc., Sr. Unsec’d. Notes (original cost $230,742; purchased 12/13/12)(a)(b) | | 4.500 | | | 02/27/42 | | | | 233 | | | | 219,228 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 2,339,979 | |
| | | | |
Metals 0.2% | | | | | | | | | | | | | | |
Peabody Energy Corp., Gtd. Notes | | 6.000 | | | 11/15/18 | | | | 400 | | | | 425,000 | |
| | | | |
Non-Captive Finance 0.5% | | | | | | | | | | | | | | |
International Lease Finance Corp., | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 6.500 | | | 09/01/14 | | | | 200 | | | | 204,000 | |
Sr. Unsec’d. Notes | | 5.750 | | | 05/15/16 | | | | 75 | | | | 80,719 | |
Sr. Unsec’d. Notes | | 6.250 | | | 05/15/19 | | | | 125 | | | | 137,969 | |
SLM Corp., | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN | | 5.050 | | | 11/14/14 | | | | 510 | | | | 518,925 | |
Sr. Unsec’d. Notes, MTN | | 6.000 | | | 01/25/17 | | | | 75 | | | | 81,656 | |
Sr. Unsec’d. Notes, MTN | | 8.450 | | | 06/15/18 | | | | 225 | | | | 265,218 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 1,288,487 | |
| | | | |
Packaging 0.1% | | | | | | | | | | | | | | |
Greif, Inc., Sr. Unsec’d. Notes | | 7.750 | | | 08/01/19 | | | | 140 | | | | 159,600 | |
| | | | |
Paper 0.4% | | | | | | | | | | | | | | |
International Paper Co., | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 6.000 | | | 11/15/41 | | | | 130 | | | | 152,366 | |
Sr. Unsec’d. Notes | | 7.300 | | | 11/15/39 | | | | 75 | | | | 100,644 | |
MeadWestvaco Corp., Sr. Unsec’d. Notes | | 7.375 | | | 09/01/19 | | | | 450 | | | | 541,715 | |
Rock-Tenn Co., Gtd. Notes | | 4.450 | | | 03/01/19 | | | | 175 | | | | 188,257 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 982,982 | |
| | | | |
Pipelines & Other 0.3% | | | | | | | | | | | | | | |
Kinder Morgan Energy Partners LP, Sr. Unsec’d. Notes | | 7.300 | | | 08/15/33 | | | | 170 | | | | 210,950 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Gtd. Notes | | 6.875 | | | 02/01/21 | | | | 600 | | | | 643,500 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 854,450 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 25 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
CORPORATE BONDS (Continued) | | | | | | | | | |
| | | | |
Railroads 0.1% | | | | | | | | | | | | | | |
Norfolk Southern Corp., Sr. Unsec’d. Notes | | 6.000 % | | | 03/15/2105 | | | | 300 | | | $ | 352,327 | |
| | | | |
Real Estate Investment Trusts 0.1% | | | | | | | | | | | | | | |
MPT Operating Partnership LP/MPT Finance Corp., Gtd. Notes, MTN | | 5.750 | | | 10/01/20 | | | EUR | 200 | | | | 296,892 | |
| | | | |
Technology 1.0% | | | | | | | | | | | | | | |
Ceridian Corp., Gtd. Notes (original cost $207,250; purchased 03/14/13)(a)(b) | | 11.250 | | | 11/15/15 | | | | 200 | | | | 202,500 | |
CommScope, Inc., Gtd. Notes, 144A | | 8.250 | | | 01/15/19 | | | | 304 | | | | 329,080 | |
Jabil Circuit, Inc., Sr. Unsec’d. Notes | | 4.700 | | | 09/15/22 | | | | 655 | | | | 650,087 | |
Seagate HDD Cayman, | | | | | | | | | | | | | | |
Gtd. Notes | | 6.875 | | | 05/01/20 | | | | 300 | | | | 326,250 | |
Gtd. Notes, 144A | | 3.750 | | | 11/15/18 | | | | 305 | | | | 315,675 | |
SunGard Data Systems, Inc., Gtd. Notes | | 7.625 | | | 11/15/20 | | | | 150 | | | | 163,875 | |
TransUnion LLC/TransUnion Financing Corp., Gtd. Notes | | 11.375 | | | 06/15/18 | | | | 400 | | | | 427,720 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 2,415,187 | |
| | | | |
Telecommunications 0.5% | | | | | | | | | | | | | | |
MetroPCS Wireless, Inc., Gtd. Notes | | 7.875 | | | 09/01/18 | | | | 250 | | | | 264,375 | |
Qwest Corp., Sr. Unsec’d. Notes | | 6.500 | | | 06/01/17 | | | | 465 | | | | 525,800 | |
Sprint Communications, Inc., Sr. Unsec’d. Notes | | 7.000 | | | 08/15/20 | | | | 400 | | | | 435,000 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 1,225,175 | |
| | | | |
Tobacco 0.1% | | | | | | | | | | | | | | |
Altria Group, Inc., Gtd. Notes | | 9.950 | | | 11/10/38 | | | | 81 | | | | 132,180 | |
Lorillard Tobacco Co., Gtd. Notes | | 8.125 | | | 06/23/19 | | | | 80 | | | | 99,451 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 231,631 | |
| | | | | | | | | | | | | | |
TOTAL CORPORATE BONDS (cost $29,652,456) | | | | 31,819,052 | |
| | | | | | | | | | | | | | |
| | | | |
MUNICIPAL BONDS 1.5% | | | | | | | | | | | | | | |
|
California 0.1% | |
University of California, Revenue Bonds, BABs | | 5.770 | | | 05/15/43 | | | | 150 | | | | 179,601 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
MUNICIPAL BONDS (Continued) | | | | | | | | | | | | | | |
|
Connecticut 0.1% | |
State of Connecticut Special Tax Revenue, Revenue Bonds, BABs | | 5.459 % | | | 11/01/30 | | | | 275 | | | $ | 300,578 | |
|
District of Columbia 0.1% | |
District of Columbia, Income Tax Revenue Bonds, BABs | | 5.582 | | | 12/01/35 | | | | 175 | | | | 206,869 | |
|
Illinois | |
Chicago Illinois Board of Education, Taxable Series E, BABs | | 6.138 | | | 12/01/39 | | | | 100 | | | | 101,888 | |
|
New York 0.1% | |
City of New York, NY, GO, BABs | | 5.968 | | | 03/01/36 | | | | 250 | | | | 300,850 | |
|
Puerto Rico 0.9% | |
Commonwealth of Puerto Rico, | |
GO | | 1.984(e) | | | 07/01/20 | | | | 300 | | | | 265,947 | |
GO | | 4.000 | | | 07/01/16 | | | | 130 | | | | 129,753 | |
GO | | 5.500 | | | 07/01/16 | | | | 345 | | | | 352,821 | |
Puerto Rico Electric Power Authority, | | | | | | | | | | | | | | |
Series CCC, Revenue Bonds | | 4.250 | | | 07/01/23 | | | | 200 | | | | 127,096 | |
Series DDD, Revenue Bonds | | 5.000 | | | 07/01/20 | | | | 640 | | | | 429,741 | |
Puerto Rico Municipal Finance Agency, | | | | | | | | | | | | | | |
Series C, Revenue Bonds | | 5.000 | | | 08/01/15 | | | | 125 | | | | 125,595 | |
Series C, Revenue Bonds | | 5.000 | | | 08/01/16 | | | | 175 | | | | 176,153 | |
Puerto Rico Sales Tax Financing Corp., | | | | | | | | | | | | | | |
Revenue Bonds, CABS | | 5.390(h) | | | 08/01/41 | | | | 1,000 | | | | 234,720 | |
Revenue Bonds, CABS | | 6.700(h) | | | 08/01/43 | | | | 1,250 | | | | 181,825 | |
Revenue Bonds, CABS | | 6.700(h) | | | 08/01/45 | | | | 3,300 | | | | 420,750 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | 2,444,401 | |
|
Tennessee 0.1% | |
Metropolitan Government of Nashville & Davidson County Convention Center Authority, Revenue Bonds, BABs | | 6.731 | | | 07/01/43 | | | | 125 | | | | 153,714 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 27 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | |
Description | | Interest Rate | | Maturity Date | | | Principal Amount (000)# | | | Value (Note 1) | |
MUNICIPAL BONDS (Continued) | | | | | | | | | | | | | | |
|
Texas 0.1% | |
University of Texas, Perm. University, BABs | | 5.262 % | | | 07/01/39 | | | | 250 | | | $ | 292,717 | |
| | | | | | | | | | | | | | |
TOTAL MUNICIPAL BONDS (cost $3,799,671) | | | | 3,980,618 | |
| | | | | | | | | | | | | | |
| | | |
U.S. TREASURY OBLIGATIONS 4.7% | | | | | | | | | | | | |
U.S. Treasury Bonds | | 2.875 | | | 05/15/43 | | | | 335 | | | | 298,673 | |
U.S. Treasury Notes | | 0.375 | | | 03/31/16 | | | | 1,955 | | | | 1,954,772 | |
U.S. Treasury Notes | | 0.750 | | | 03/15/17 | | | | 1,000 | | | | 998,125 | |
U.S. Treasury Notes | | 0.875 | | | 04/15/17 | | | | 1,880 | | | | 1,881,175 | |
U.S. Treasury Notes | | 1.625 | | | 04/30/19 | | | | 6,735 | | | | 6,717,112 | |
U.S. Treasury Notes(c) | | 2.750 | | | 02/15/24 | | | | 75 | | | | 75,656 | |
| | | | | | | | | | | | | | |
TOTAL U.S. TREASURY OBLIGATIONS (cost $11,883,871) | | | | | | | | | | | | | 11,925,513 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | | Shares | | | | |
PREFERRED STOCK | | | | | | | | | | | | | | |
| | | | |
Banking | | | | | | | | | | | | | | |
Citigroup Capital XIII, 7.875%, (Capital Security, fixed to floating preferred) (cost $100,000)(e) | | | | | | | | | 4,000 | | | | 109,040 | |
| | | | | | | | | | | | | | |
TOTAL LONG-TERM INVESTMENTS (cost $240,316,673) | | | | 256,176,643 | |
| | | | | | | | | | | | | | |
| | |
SHORT-TERM INVESTMENTS 1.1% | | | | | | | | | |
| | |
AFFILIATED MONEY MARKET MUTUAL FUND 0.2% | | | | | | | | | |
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $450,711)(i) | | | | 450,711 | | | | 450,711 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | | Principal Amount (000)# | | | | |
U.S. TREASURY OBLIGATION 0.8% | |
U.S. Treasury Bill (cost $2,019,830)(c) | | 0.109(j) | | | 05/29/14 | | | | 2,020 | | | | 2,019,968 | |
| | | | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | | | | | | | |
Description | | Counterparty | | Notional Amount (000)# | | | Value (Note 1) | |
OPTIONS PURCHASED* 0.1% | | | | | |
| |
Call Options 0.1% | | | | | |
Receive a fixed rate of 3.20% and pay a floating rate based on 3 month LIBOR, expiring 09/12/14 | | Citigroup Global Markets | | | 1,960 | | | $ | 63,548 | |
Receive a fixed rate of 3.20% and pay a floating rate based on 3 month LIBOR, expiring 09/12/14 | | Citigroup Global Markets | | | 3,260 | | | | 105,698 | |
Receive a fixed rate of 3.20% and pay a floating rate based on 3 month LIBOR, expiring 09/18/14 | | Citigroup Global Markets | | | 3,260 | | | | 105,078 | |
| | | | | | | | | | |
| | | | | | | | | 274,324 | |
| |
Put Options | | | | | |
United States Dollar/Chinese Renminbi @ FX Rate 6.085, expiring 01/13/15 | | Citigroup Global Markets | | | 5,000 | | | | 4,984 | |
United States Dollar/Chinese Renminbi @ FX Rate 6.090, expiring 02/06/15 | | Citigroup Global Markets | | | 10,000 | | | | 11,907 | |
United States Dollar/Chinese Renminbi @ FX Rate 6.160, expiring 02/18/15 | | Goldman Sachs & Co. | | | 5,000 | | | | 13,367 | |
| | | | | | | | | | |
| | | | | | | | | 30,258 | |
| | | | | | | | | | |
TOTAL OPTIONS PURCHASED (cost $448,746) | | | | 304,582 | |
| | | | | | | | | | |
TOTAL SHORT-TERM INVESTMENTS (cost $2,919,287) | | | | 2,775,261 | |
| | | | | | | | | | |
TOTAL INVESTMENTS 101.6% (cost $243,235,960; Note 5) | | | | 258,951,904 | |
Liabilities in excess of other assets(k) (1.6)% | | | | (3,988,193 | ) |
| | | | | | | | | | |
NET ASSETS 100.0% | | | $ | 254,963,711 | |
| | | | | | | | | | |
The following abbreviations are used in the 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.
ABS—Asset-Backed Security
BABs—Build America Bonds
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 29 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
BBR—New Zealand Bank Bill Rate
BBSW—Australian Bank Bill Swap Reference Rate
BIBOR—Bangkok Interbank Offered Rate
Bobl—Bundesobligationen
bps—Basis Points
BUBOR—Budapest Interbank Offered Rate
BZDIOVER—Overnight Brazil Cetip Interbank Deposit
CABS—Capital Appreciation Bonds
CDX—Credit Derivative Index
CIBOR—Copenhagen Interbank Offered Rate
CLICP—Chilean Indice Camara Promedio
CLO—Collateralized Loan Obligation
CMBX—Commercial Mortgage Backed Securities Index
COLIBOR—Columbia Interbank Offered Rate
CP—Commercial Paper
CPI—Consumer Price Index
EIBOR—Emirates Interbank Offered Rate
EONIA—Euro Overnight Index Average
EURIBOR—Euro Interbank Offered Rate
FHLMC—Federal Home Loan Mortgage Corp.
GO—General Obligation
HIBOR—Hong Kong Interbank Offered Rate
IO—Interest Only
JIBAR—Johannesburg Interbank Agreed Rate
LIBOR—London Interbank Offered Rate
MOSPRIME—Moscow Prime Offered Rate
MTN—Medium Term Note
NIBOR—Norwegian Interbank Offered Rate
OIS—Overnight Index Swap
PRIBOR—Prague Interbank Offered Rate
SOR—Swap Offer Rate
STIBOR—Stockholm Interbank Offered Rate
TELBOR—Tel Aviv Interbank Offered Rate
WIBOR—Warsaw Interbank Offered Rate
AED—United Arab Emirates Dirham
AUD—Australian Dollar
BRL—Brazilian Real
CAD—Canadian Dollar
CHF—Swiss Franc
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
DKK—Danish Krone
See Notes to Financial Statements.
EUR—Euro
GBP—British Pound
HKD—Hong Kong Dollar
HUF—Hungarian Forint
ILS—Israeli New Shekel
INR—Indian Rupee
ITL—Italian Lira
JPY—Japanese Yen
KRW—South Korean Won
MXN—Mexican Peso
MYR—Malaysian Ringgit
NOK—Norwegian Krone
NZD—New Zealand Dollar
PEN—Peruvian Nuevo Sol
PHP—Philippine Peso
PLN—Polish Zloty
RON—Romanian Leu
RUB—Russian Ruble
SEK—Swedish Krona
SGD—Singapore Dollar
THB—Thai Baht
TRY—Turkish Lira
TWD—New Taiwanese Dollar
ZAR—South African Rand
* | Non-income producing security. |
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(a) | Indicates a security that has been deemed illiquid. |
(b) | Indicates a restricted security; the aggregate original cost of the restricted securities is $959,388. The aggregate value, $1,000,397, is approximately 0.4% of net assets. |
(c) | Represents security, or a portion thereof, segregated as collateral for swap agreements. |
(d) | Represents security, or a portion thereof, segregated as collateral for futures contracts. |
(e) | Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2014. |
(f) | The rate shown reflects the coupon rate after the step date. |
(g) | Represents issuer in default on interest payments and/or principal repayment; non-income producing security. |
(h) | Represents a zero coupon or step bond. Rate shown reflects the effective yield on April 30, 2014. |
(i) | Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund. |
(j) | Rate quoted represents yield-to-maturity as of purchase date. |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 31 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
(k) | Includes net unrealized appreciation (depreciation) on the following derivative contracts held at reporting period end: |
Futures contracts outstanding at April 30, 2014:
| | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | Type | | Expiration Date | | | Value at Trade Date | | | Value at April 30, 2014 | | | Unrealized Appreciation (Depreciation)(1) | |
| | | | Long Positions: | | | | | | | | | | | | | | | | |
| 52 | | | 90 Day Euro Dollar | | | Sep. 2017 | | | $ | 12,604,246 | | | $ | 12,632,750 | | | $ | 28,504 | |
| 62 | | | 90 Day Sterling | | | Sep. 2015 | | | | 12,899,440 | | | | 12,902,491 | | | | 3,051 | |
| 15 | | | 5 Year Euro-Bobl | | | Jun. 2014 | | | | 2,608,846 | | | | 2,617,300 | | | | 8,454 | |
| 13 | | | 10 Year U.S. Treasury Notes | | | Jun. 2014 | | | | 1,610,688 | | | | 1,617,484 | | | | 6,796 | |
| 60 | | | U.S. Ultra Bond | | | Jun. 2014 | | | | 8,608,904 | | | | 8,836,875 | | | | 227,971 | |
| 112 | | | Euro Schatz | | | Jun. 2014 | | | | 17,149,546 | | | | 17,163,596 | | | | 14,050 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 288,826 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | Short Positions: | | | | | | | | | | | | | | | | |
| 52 | | | 90 Day Euro Dollar | | | Sep. 2015 | | | | 12,879,004 | | | | 12,899,900 | | | | (20,896 | ) |
| 62 | | | 90 Day Sterling | | | Sep. 2017 | | | | 12,714,932 | | | | 12,723,226 | | | | (8,294 | ) |
| 5 | | | 2 Year U.S. Treasury Notes | | | Jun. 2014 | | | | 1,097,728 | | | | 1,099,375 | | | | (1,647 | ) |
| 3 | | | 2 Year U.S. Treasury Notes | | | Sep. 2014 | | | | 657,559 | | | | 657,797 | | | | (238 | ) |
| 56 | | | 5 Year U.S. Treasury Notes | | | Jun. 2014 | | | | 6,683,851 | | | | 6,689,375 | | | | (5,524 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | (36,599 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 252,227 | |
| | | | | | | | | | | | | | | | | | | | |
(1) | French Treasury Notes with a market value of $629,640 have been segregated with J.P. Morgan Securities LLC to cover requirements for open contracts at April 30, 2014. |
Forward foreign currency exchange contracts outstanding at April 30, 2014:
| | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | Notional Amount (000) | | | Value at Settlement Date Payable | | | Current Value | | | Unrealized Appreciation (Depreciation) | |
Australian Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/15/14 | | Bank of America | | AUD | 550 | | | $ | 510,300 | | | $ | 508,392 | | | $ | (1,908 | ) |
Expiring 07/15/14 | | Bank of America | | AUD | 5,350 | | | | 4,998,637 | | | | 4,943,207 | | | | (55,430 | ) |
Expiring 07/15/14 | | Citigroup Global Markets | | AUD | 1,031 | | | | 957,733 | | | | 952,350 | | | | (5,383 | ) |
Expiring 07/15/14 | | Goldman Sachs & Co. | | AUD | 1,177 | | | | 1,096,400 | | | | 1,087,826 | | | | (8,574 | ) |
Expiring 07/15/14 | | JPMorgan Chase | | AUD | 45 | | | | 41,597 | | | | 41,410 | | | | (187 | ) |
Expiring 07/15/14 | | UBS AG | | AUD | 951 | | | | 886,993 | | | | 878,707 | | | | (8,286 | ) |
Brazilian Real, | | | | | | | | | | | | | | | | | | |
Expiring 05/09/14 | | Goldman Sachs & Co. | | BRL | 1,338 | | | | 590,988 | | | | 598,108 | | | | 7,120 | |
Expiring 07/01/14 | | Citigroup Global Markets | | BRL | 1,452 | | | | 640,300 | | | | 639,185 | | | | (1,115 | ) |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | Notional Amount (000) | | | Value at Settlement Date Payable | | | Current Value | | | Unrealized Appreciation (Depreciation) | |
British Pound, | | | | | | | | | | | | | | | | | | |
Expiring 07/28/14 | | Citigroup Global Markets | | GBP | 2,700 | | | $ | 4,532,502 | | | $ | 4,555,925 | | | $ | 23,423 | |
Expiring 07/28/14 | | Credit Suisse First Boston Corp. | | GBP | 1,376 | | | | 2,311,775 | | | | 2,320,886 | | | | 9,111 | |
Expiring 07/28/14 | | Credit Suisse First Boston Corp. | | GBP | 2,700 | | | | 4,532,025 | | | | 4,555,925 | | | | 23,900 | |
Expiring 07/28/14 | | Deutsche Bank AG | | GBP | 214 | | | | 360,321 | | | | 361,515 | | | | 1,194 | |
Canadian Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/15/14 | | JPMorgan Chase | | CAD | 1,413 | | | | 1,278,400 | | | | 1,286,398 | | | | 7,998 | |
Expiring 07/15/14 | | Toronto Dominion | | CAD | 9,976 | | | | 9,011,619 | | | | 9,085,060 | | | | 73,441 | |
Chilean Peso, | | | | | | | | | | | | | | | | | | |
Expiring 05/30/14 | | Citigroup Global Markets | | CLP | 693,660 | | | | 1,261,200 | | | | 1,224,909 | | | | (36,291 | ) |
Expiring 05/30/14 | | Citigroup Global Markets | | CLP | 696,669 | | | | 1,259,800 | | | | 1,230,224 | | | | (29,576 | ) |
Expiring 05/30/14 | | Citigroup Global Markets | | CLP | 697,790 | | | | 1,249,400 | | | | 1,232,202 | | | | (17,198 | ) |
Expiring 05/30/14 | | Citigroup Global Markets | | CLP | 701,538 | | | | 1,249,400 | | | | 1,238,821 | | | | (10,579 | ) |
Expiring 08/27/14 | | Citigroup Global Markets | | CLP | 1,469,054 | | | | 2,577,785 | | | | 2,570,681 | | | | (7,104 | ) |
Chinese Renminbi, | | | | | | | | | | | | | | | | | | |
Expiring 07/14/14 | | Deutsche Bank AG | | CNH | 35 | | | | 5,575 | | | | 5,524 | | | | (51 | ) |
Expiring 07/14/14 | | Hong Kong & Shanghai Bank | | CNH | 6,212 | | | | 998,207 | | | | 989,053 | | | | (9,154 | ) |
Expiring 07/14/14 | | JPMorgan Chase | | CNH | 54,873 | | | | 8,816,643 | | | | 8,736,911 | | | | (79,732 | ) |
Expiring 07/14/14 | | UBS AG | | CNH | 8,903 | | | | 1,430,400 | | | | 1,417,464 | | | | (12,936 | ) |
Colombian Peso, | | | | | | | | | | | | | | | | | | |
Expiring 07/01/14 | | BNP Paribas | | COP | 2,486,304 | | | | 1,281,600 | | | | 1,276,026 | | | | (5,574 | ) |
Expiring 07/08/14 | | Citigroup Global Markets | | COP | 1,483,968 | | | | 755,200 | | | | 761,059 | | | | 5,859 | |
Expiring 07/08/14 | | Citigroup Global Markets | | COP | 3,996,753 | | | | 2,052,986 | | | | 2,049,751 | | | | (3,235 | ) |
Euro, | | | | | | | | | | | | | | | | | | |
Expiring 07/28/14 | | Bank of America | | EUR | 55 | | | | 76,900 | | | | 76,970 | | | | 70 | |
Expiring 07/28/14 | | Citigroup Global Markets | | EUR | 148 | | | | 204,000 | | | | 204,821 | | | | 821 | |
Expiring 07/28/14 | | Citigroup Global Markets | | EUR | 494 | | | | 683,882 | | | | 685,045 | | | | 1,163 | |
Expiring 07/28/14 | | Citigroup Global Markets | | EUR | 1,152 | | | | 1,591,826 | | | | 1,597,657 | | | | 5,831 | |
Expiring 07/28/14 | | Citigroup Global Markets | | EUR | 3,409 | | | | 4,711,493 | | | | 4,728,461 | | | | 16,968 | |
Expiring 07/28/14 | | Citigroup Global Markets | | EUR | 3,409 | | | | 4,711,494 | | | | 4,728,462 | | | | 16,968 | |
Expiring 07/28/14 | | Goldman Sachs & Co. | | EUR | 1,716 | | | | 2,371,200 | | | | 2,380,378 | | | | 9,178 | |
Expiring 07/28/14 | | Goldman Sachs & Co. | | EUR | 2,776 | | | | 3,850,800 | | | | 3,851,157 | | | | 357 | |
Hungarian Forint, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Citigroup Global Markets | | HUF | 921,176 | | | | 4,127,317 | | | | 4,147,432 | | | | 20,115 | |
Indian Rupee, | | | | | | | | | | | | | | | | | | |
Expiring 05/12/14 | | Citigroup Global Markets | | INR | 56,054 | | | | 908,500 | | | | 926,897 | | | | 18,397 | |
Expiring 05/12/14 | | UBS AG | | INR | 32,029 | | | | 505,700 | | | | 529,613 | | | | 23,913 | |
Expiring 05/12/14 | | UBS AG | | INR | 45,957 | | | | 723,000 | | | | 759,938 | | | | 36,938 | |
Expiring 05/12/14 | | UBS AG | | INR | 50,218 | | | | 824,600 | | | | 830,390 | | | | 5,790 | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 33 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | Notional Amount (000) | | | Value at Settlement Date Payable | | | Current Value | | | Unrealized Appreciation (Depreciation) | |
Indian Rupee, (cont’d.) | | | | | | | | | | | | | | | | | | |
Expiring 05/12/14 | | UBS AG | | INR | 60,946 | | | $ | 980,000 | | | $ | 1,007,786 | | | $ | 27,786 | |
Expiring 05/12/14 | | UBS AG | | INR | 61,053 | | | | 964,500 | | | | 1,009,549 | | | | 45,049 | |
Expiring 11/03/14 | | UBS AG | | INR | 80,075 | | | | 1,281,400 | | | | 1,276,215 | | | | (5,185 | ) |
Israeli New Shekel, | | | | | | | | | | | | | | | | | | |
Expiring 07/10/14 | | JPMorgan Chase | | ILS | 426 | | | | 122,574 | | | | 123,159 | | | | 585 | |
Japanese Yen, | | | | | | | | | | | | | | | | | | |
Expiring 07/28/14 | | Bank of America | | JPY | 1,605,088 | | | | 15,674,859 | | | | 15,708,576 | | | | 33,717 | |
Expiring 07/28/14 | | Credit Suisse First Boston Corp. | | JPY | 620,996 | | | | 6,072,003 | | | | 6,077,523 | | | | 5,520 | |
Malaysian Ringgit, | | | | | | | | | | | | | | | | | | |
Expiring 07/01/14 | | UBS AG | | MYR | 4,123 | | | | 1,259,800 | | | | 1,256,566 | | | | (3,234 | ) |
Expiring 07/10/14 | | BNP Paribas | | MYR | 2,110 | | | | 640,311 | | | | 642,627 | | | | 2,316 | |
Expiring 07/10/14 | | JPMorgan Chase | | MYR | 2,110 | | | | 639,070 | | | | 642,627 | | | | 3,557 | |
Expiring 07/10/14 | | UBS AG | | MYR | 2,470 | | | | 755,200 | | | | 752,204 | | | | (2,996 | ) |
Expiring 07/10/14 | | UBS AG | | MYR | 3,351 | | | | 1,034,200 | | | | 1,020,646 | | | | (13,554 | ) |
Mexican Peso, | | | | | | | | | | | | | | | | | | |
Expiring 07/22/14 | | JPMorgan Chase | | MXN | 75,378 | | | | 5,711,520 | | | | 5,722,090 | | | | 10,570 | |
New Taiwanese Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 05/27/14 | | UBS AG | | TWD | 19,295 | | | | 640,700 | | | | 639,387 | | | | (1,313 | ) |
Expiring 05/27/14 | | UBS AG | | TWD | 113,830 | | | | 3,772,337 | | | | 3,772,106 | | | | (231 | ) |
Expiring 05/27/14 | | UBS AG | | TWD | 114,347 | | | | 3,785,700 | | | | 3,789,232 | | | | 3,532 | |
New Zealand Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/15/14 | | Citigroup Global Markets | | NZD | 2,233 | | | | 1,912,300 | | | | 1,913,052 | | | | 752 | |
Expiring 07/15/14 | | Credit Suisse First Boston Corp. | | NZD | 1,501 | | | | 1,283,600 | | | | 1,285,342 | | | | 1,742 | |
Expiring 07/15/14 | | JPMorgan Chase | | NZD | 3,885 | | | | 3,344,799 | | | | 3,327,375 | | | | (17,424 | ) |
Expiring 10/23/14 | | Goldman Sachs & Co. | | NZD | 969 | | | | 780,800 | | | | 821,838 | | | | 41,038 | |
Norwegian Krone, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Deutsche Bank AG | | NOK | 30,361 | | | | 5,058,079 | | | | 5,089,669 | | | | 31,590 | |
Peruvian Nuevo Sol, | | | | | | | | | | | | | | | | | | |
Expiring 07/11/14 | | JPMorgan Chase | | PEN | 2,071 | | | | 737,004 | | | | 730,493 | | | | (6,511 | ) |
Philippine Peso, | | | | | | | | | | | | | | | | | | |
Expiring 06/09/14 | | UBS AG | | PHP | 56,401 | | | | 1,259,800 | | | | 1,264,286 | | | | 4,486 | |
Expiring 06/09/14 | | UBS AG | | PHP | 56,611 | | | | 1,275,600 | | | | 1,268,990 | | | | (6,610 | ) |
Expiring 09/17/14 | | Citigroup Global Markets | | PHP | 32,187 | | | | 733,200 | | | | 719,560 | | | | (13,640 | ) |
Expiring 09/17/14 | | UBS AG | | PHP | 32,513 | | | | 723,400 | | | | 726,842 | | | | 3,442 | |
Expiring 09/17/14 | | UBS AG | | PHP | 33,083 | | | | 727,900 | | | | 739,581 | | | | 11,681 | |
Expiring 09/17/14 | | UBS AG | | PHP | 36,743 | | | | 819,600 | | | | 821,393 | | | | 1,793 | |
Expiring 09/17/14 | | UBS AG | | PHP | 43,635 | | | | 964,100 | | | | 975,476 | | | | 11,376 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | Notional Amount (000) | | | Value at Settlement Date Payable | | | Current Value | | | Unrealized Appreciation (Depreciation) | |
Polish Zloty, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | JPMorgan Chase | | PLN | 9,446 | | | $ | 3,095,903 | | | $ | 3,102,558 | | | $ | 6,655 | |
Romanian Leu, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | JPMorgan Chase | | RON | 16,040 | | | | 4,930,515 | | | | 4,989,259 | | | | 58,744 | |
Russian Ruble, | | | | | | | | | | | | | | | | | | |
Expiring 06/30/14 | | Citigroup Global Markets | | RUB | 104,698 | | | | 2,917,200 | | | | 2,889,869 | | | | (27,331 | ) |
Expiring 07/17/14 | | BNP Paribas | | RUB | 93,632 | | | | 2,565,256 | | | | 2,573,039 | | | | 7,783 | |
Expiring 07/17/14 | | Goldman Sachs & Co. | | RUB | 36 | | | | 981 | | | | 985 | | | | 4 | |
Singapore Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/17/14 | | Deutsche Bank AG | | SGD | 6,806 | | | | 5,432,092 | | | | 5,429,128 | | | | (2,964 | ) |
South African Rand, | | | | | | | | | | | | | | | | | | |
Expiring 07/25/14 | | JPMorgan Chase | | ZAR | 38,867 | | | | 3,611,481 | | | | 3,642,037 | | | | 30,556 | |
South Korean Won, | | | | | | | | | | | | | | | | | | |
Expiring 07/10/14 | | BNP Paribas | | KRW | 3,931,239 | | | | 3,696,441 | | | | 3,790,112 | | | | 93,671 | |
Expiring 07/10/14 | | UBS AG | | KRW | 608,364 | | | | 589,500 | | | | 586,524 | | | | (2,976 | ) |
Expiring 07/10/14 | | UBS AG | | KRW | 808,873 | | | | 752,300 | | | | 779,835 | | | | 27,535 | |
Swedish Krona, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Citigroup Global Markets | | SEK | 5,374 | | | | 815,900 | | | | 825,275 | | | | 9,375 | |
Expiring 07/24/14 | | Deutsche Bank AG | | SEK | 25,216 | | | | 3,824,600 | | | | 3,872,533 | | | | 47,933 | |
Expiring 07/24/14 | | Goldman Sachs & Co. | | SEK | 6,732 | | | | 1,022,700 | | | | 1,033,905 | | | | 11,205 | |
Expiring 07/24/14 | | UBS AG | | SEK | 8,381 | | | | 1,281,600 | | | | 1,287,074 | | | | 5,474 | |
Swiss Franc, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Credit Suisse First Boston Corp. | | CHF | 902 | | | | 1,024,400 | | | | 1,024,999 | | | | 599 | |
Expiring 07/24/14 | | Credit Suisse First Boston Corp. | | CHF | 8,850 | | | | 10,013,699 | | | | 10,062,850 | | | | 49,151 | |
Expiring 07/24/14 | | Goldman Sachs & Co. | | CHF | 901 | | | | 1,022,700 | | | | 1,024,962 | | | | 2,262 | |
Thai Baht, | | | | | | | | | | | | | | | | | | |
Expiring 06/18/14 | | Bank of America | | THB | 19,108 | | | | 586,144 | | | | 589,190 | | | | 3,046 | |
Expiring 06/18/14 | | Bank of America | | THB | 40,715 | | | | 1,262,104 | | | | 1,255,432 | | | | (6,672 | ) |
Expiring 06/18/14 | | Citigroup Global Markets | | THB | 40,552 | | | | 1,254,900 | | | | 1,250,398 | | | | (4,502 | ) |
Expiring 11/18/14 | | Credit Suisse First Boston Corp. | | THB | 38,721 | | | | 1,180,400 | | | | 1,186,320 | | | | 5,920 | |
Turkish Lira, | | | | | | | | | | | | | | | | | | |
Expiring 07/25/14 | | Deutsche Bank AG | | TRY | 2,794 | | | | 1,278,400 | | | | 1,293,524 | | | | 15,124 | |
Expiring 07/25/14 | | Goldman Sachs & Co. | | TRY | 1,397 | | | | 640,300 | | | | 646,695 | | | | 6,395 | |
Expiring 07/25/14 | | JPMorgan Chase | | TRY | 1,072 | | | | 490,603 | | | | 496,448 | | | | 5,845 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 196,222,973 | | | $ | 196,751,881 | | | $ | 528,908 | |
| | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 35 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | |
Sale Contracts | | Counterparty | | Notional Amount (000) | | | Value at Settlement Date Receivable | | | Current Value | | | Unrealized Appreciation (Depreciation) | |
Australian Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/15/14 | | Goldman Sachs & Co. | | AUD | 5,273 | | | $ | 4,870,000 | | | $ | 4,871,988 | | | $ | (1,988 | ) |
Expiring 07/15/14 | | JPMorgan Chase | | AUD | 1,390 | | | | 1,283,600 | | | | 1,284,711 | | | | (1,111 | ) |
Expiring 07/15/14 | | JPMorgan Chase | | AUD | 1,388 | | | | 1,278,400 | | | | 1,282,161 | | | | (3,761 | ) |
Brazilian Real, | | | | | | | | | | | | | | | | | | |
Expiring 07/01/14 | | Citigroup Global Markets | | BRL | 2,045 | | | | 912,600 | | | | 900,125 | | | | 12,475 | |
Expiring 07/01/14 | | Citigroup Global Markets | | BRL | 1,864 | | | | 815,900 | | | | 820,297 | | | | (4,397 | ) |
British Pound, | | | | | | | | | | | | | | | | | | |
Expiring 07/28/14 | | Citigroup Global Markets | | GBP | 1,737 | | | | 2,911,042 | | | | 2,930,534 | | | | (19,492 | ) |
Canadian Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/15/14 | | Goldman Sachs & Co. | | CAD | 1,410 | | | | 1,274,900 | | | | 1,283,665 | | | | (8,765 | ) |
Expiring 07/15/14 | | JPMorgan Chase | | CAD | 1,212 | | | | 1,096,400 | | | | 1,103,435 | | | | (7,035 | ) |
Chilean Peso, | | | | | | | | | | | | | | | | | | |
Expiring 05/30/14 | | Bank of America | | CLP | 1,254,256 | | | | 2,216,000 | | | | 2,214,846 | | | | 1,154 | |
Expiring 05/30/14 | | BNP Paribas | | CLP | 672,786 | | | | 1,208,200 | | | | 1,188,049 | | | | 20,151 | |
Expiring 08/27/14 | | Citigroup Global Markets | | CLP | 1,056,391 | | | | 1,852,668 | | | | 1,848,567 | | | | 4,101 | |
Expiring 08/27/14 | | Citigroup Global Markets | | CLP | 412,663 | | | | 727,800 | | | | 722,114 | | | | 5,686 | |
Chinese Renminbi, | | | | | | | | | | | | | | | | | | |
Expiring 06/26/14 | | Deutsche Bank AG | | CNH | 7,828 | | | | 1,257,400 | | | | 1,247,355 | | | | 10,045 | |
Expiring 06/26/14 | | UBS AG | | CNH | 7,798 | | | | 1,253,000 | | | | 1,242,514 | | | | 10,486 | |
Expiring 07/14/14 | | Bank of America | | CNH | 8,049 | | | | 1,283,326 | | | | 1,281,569 | | | | 1,757 | |
Expiring 07/14/14 | | Bank of America | | CNH | 4,020 | | | | 640,700 | | | | 640,094 | | | | 606 | |
Expiring 07/14/14 | | Citigroup Global Markets | | CNH | 14,577 | | | | 2,342,630 | | | | 2,320,885 | | | | 21,745 | |
Expiring 07/14/14 | | Citigroup Global Markets | | CNH | 8,040 | | | | 1,280,600 | | | | 1,280,081 | | | | 519 | |
Expiring 01/15/15 | | Citigroup Global Markets | | CNH | 15,213 | | | | 2,500,000 | | | | 2,410,476 | | | | 89,524 | |
Expiring 02/10/15 | | Citigroup Global Markets | | CNH | 30,453 | | | | 5,000,000 | | | | 4,822,373 | | | | 177,627 | |
Expiring 02/27/15 | | Goldman Sachs & Co. | | CNH | 15,400 | | | | 2,500,000 | | | | 2,437,730 | | | | 62,270 | |
Colombian Peso, | | | | | | | | | | | | | | | | | | |
Expiring 07/01/14 | | Bank of America | | COP | 3,079,050 | | | | 1,579,000 | | | | 1,580,236 | | | | (1,236 | ) |
Czech Koruna, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | JPMorgan Chase | | CZK | 45,266 | | | | 2,277,141 | | | | 2,288,518 | | | | (11,377 | ) |
Danish Krone, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Hong Kong & Shanghai Bank | | DKK | 54,219 | | | | 10,061,249 | | | | 10,081,841 | | | | (20,592 | ) |
Euro, | | | | | | | | | | | | | | | | | | |
Expiring 07/28/14 | | Bank of America | | EUR | 1,792 | | | | 2,476,238 | | | | 2,485,958 | | | | (9,720 | ) |
Expiring 07/28/14 | | Bank of America | | EUR | 975 | | | | 1,344,947 | | | | 1,353,050 | | | | (8,103 | ) |
Expiring 07/28/14 | | Citigroup Global Markets | | EUR | 95 | | | | 131,354 | | | | 131,774 | | | | (420 | ) |
Hungarian Forint, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Citigroup Global Markets | | HUF | 459,238 | | | | 2,045,500 | | | | 2,067,639 | | | | (22,139 | ) |
Expiring 07/24/14 | | Deutsche Bank AG | | HUF | 219,183 | | | | 973,200 | | | | 986,833 | | | | (13,633 | ) |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | |
Sale Contracts | | Counterparty | | Notional Amount (000) | | | Value at Settlement Date Receivable | | | Current Value | | | Unrealized Appreciation (Depreciation) | |
Indian Rupee, | | | | | | | | | | | | | | | | | | |
Expiring 05/12/14 | | Citigroup Global Markets | | INR | 76,259 | | | $ | 1,254,736 | | | $ | 1,260,995 | | | $ | (6,259 | ) |
Expiring 05/12/14 | | UBS AG | | INR | 229,999 | | | | 3,777,900 | | | | 3,803,178 | | | | (25,278 | ) |
Mexican Peso, | | | | | | | | | | | | | | | | | | |
Expiring 07/25/14 | | Deutsche Bank AG | | MXN | 8,465 | | | | 640,300 | | | | 642,434 | | | | (2,134 | ) |
New Taiwanese Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 05/27/14 | | BNP Paribas | | TWD | 56,695 | | | | 1,862,501 | | | | 1,878,743 | | | | (16,242 | ) |
Expiring 05/27/14 | | Hong Kong & Shanghai Bank | | TWD | 65,317 | | | | 2,158,534 | | | | 2,164,482 | | | | (5,948 | ) |
Expiring 05/27/14 | | UBS AG | | TWD | 76,796 | | | | 2,501,900 | | | | 2,544,859 | | | | (42,959 | ) |
Expiring 05/27/14 | | UBS AG | | TWD | 29,370 | | | | 970,100 | | | | 973,255 | | | | (3,155 | ) |
New Zealand Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/15/14 | | Citigroup Global Markets | | NZD | 2,255 | | | | 1,917,600 | | | | 1,931,118 | | | | (13,518 | ) |
Expiring 07/15/14 | | Goldman Sachs & Co. | | NZD | 3,678 | | | | 3,136,200 | | | | 3,150,377 | | | | (14,177 | ) |
Expiring 07/15/14 | | Goldman Sachs & Co. | | NZD | 1,511 | | | | 1,281,600 | | | | 1,294,056 | | | | (12,456 | ) |
Expiring 07/15/14 | | JPMorgan Chase | | NZD | 600 | | | | 510,300 | | | | 514,155 | | | | (3,855 | ) |
Norwegian Krone, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Toronto Dominion | | NOK | 7,629 | | | | 1,269,015 | | | | 1,278,963 | | | | (9,948 | ) |
Philippine Peso, | | | | | | | | | | | | | | | | | | |
Expiring 06/09/14 | | Hong Kong & Shanghai Bank | | PHP | 92,835 | | | | 2,085,003 | | | | 2,080,976 | | | | 4,027 | |
Expiring 06/09/14 | | UBS AG | | PHP | 102,024 | | | | 2,242,278 | | | | 2,286,953 | | | | (44,675 | ) |
Expiring 06/09/14 | | UBS AG | | PHP | 41,753 | | | | 926,200 | | | | 935,934 | | | | (9,734 | ) |
Russian Ruble, | | | | | | | | | | | | | | | | | | |
Expiring 06/30/14 | | Citigroup Global Markets | | RUB | 46,012 | | | | 1,259,800 | | | | 1,270,008 | | | | (10,208 | ) |
Expiring 06/30/14 | | Citigroup Global Markets | | RUB | 45,665 | | | | 1,253,900 | | | | 1,260,427 | | | | (6,527 | ) |
Expiring 06/30/14 | | Citigroup Global Markets | | RUB | 45,653 | | | | 1,259,300 | | | | 1,260,102 | | | | (802 | ) |
Expiring 07/17/14 | | Citigroup Global Markets | | RUB | 46,706 | | | | 1,278,400 | | | | 1,283,508 | | | | (5,108 | ) |
Expiring 07/17/14 | | Citigroup Global Markets | | RUB | 23,584 | | | | 640,300 | | | | 648,085 | | | | (7,785 | ) |
Expiring 07/17/14 | | Citigroup Global Markets | | RUB | 23,385 | | | | 636,400 | | | | 642,633 | | | | (6,233 | ) |
Expiring 07/17/14 | | Citigroup Global Markets | | RUB | 16,000 | | | | 432,200 | | | | 439,699 | | | | (7,499 | ) |
Singapore Dollar, | | | | | | | | | | | | | | | | | | |
Expiring 07/17/14 | | Citigroup Global Markets | | SGD | 1,608 | | | | 1,278,400 | | | | 1,282,989 | | | | (4,589 | ) |
South African Rand, | | | | | | | | | | | | | | | | | | |
Expiring 07/25/14 | | Deutsche Bank AG | | ZAR | 6,303 | | | | 586,400 | | | | 590,656 | | | | (4,256 | ) |
Swedish Krona, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Bank of America | | SEK | 26,647 | | | | 4,043,498 | | | | 4,092,340 | | | | (48,842 | ) |
Swiss Franc, | | | | | | | | | | | | | | | | | | |
Expiring 07/24/14 | | Bank of America | | CHF | 2,253 | | | | 2,547,041 | | | | 2,561,086 | | | | (14,045 | ) |
Expiring 07/24/14 | | Goldman Sachs & Co. | | CHF | 3,380 | | | | 3,824,600 | | | | 3,842,625 | | | | (18,025 | ) |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 37 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | |
Sale Contracts | | Counterparty | | Notional Amount (000) | | | Value at Settlement Date Receivable | | | Current Value | | | Unrealized Appreciation (Depreciation) | |
Thai Baht, | | | | | | | | | | | | | | | | | | |
Expiring 06/18/14 | | Bank of America | | THB | 40,902 | | | $ | 1,249,400 | | | $ | 1,261,179 | | | $ | (11,779 | ) |
Expiring 06/18/14 | | Bank of America | | THB | 40,682 | | | | 1,247,100 | | | | 1,254,401 | | | | (7,301 | ) |
Expiring 11/18/14 | | Credit Suisse First Boston Corp. | | THB | 41,084 | | | | 1,211,900 | | | | 1,258,732 | | | | (46,832 | ) |
Turkish Lira, | | | | | | | | | | | | | | | | | | |
Expiring 07/25/14 | | Bank of America | | TRY | 12,806 | | | | 5,879,405 | | | | 5,928,024 | | | | (48,619 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 114,556,006 | | | $ | 114,726,390 | | | $ | (170,384 | ) |
| | | | | | | | | | | | | | | | | | |
Cross currency exchange contracts outstanding at April 30, 2014:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Settlement | | Type | | | Notional Amount (000) | | | In Exchange for (000) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
07/15/14 | | | Buy | | | | CAD | | | | 1,406 | | | | EUR | | | | 927 | | | $ | (5,523 | ) | | Bank of America |
07/24/14 | | | Buy | | | | HUF | | | | 286,997 | | | | EUR | | | | 927 | | | | 6,171 | | | Citigroup Global Markets |
07/25/14 | | | Buy | | | | ZAR | | | | 6,855 | | | | EUR | | | | 464 | | | | (736 | ) | | Deutsche Bank AG |
07/25/14 | | | Buy | | | | TRY | | | | 1,389 | | | | EUR | | | | 464 | | | | (223 | ) | | Goldman Sachs & Co. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | (311 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swap agreements outstanding at April 30, 2014:
| | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination Date | | | Fixed Rate | | | Notional Amount (000)#(4) | | | Value at Trade Date | | | Value at April 30, 2014 | | | Unrealized Depreciation | |
Exchange-Traded credit default swaps on credit indices—Buy Protection(1): | |
CDX.NA.IG.20.V1 | | | 06/20/18 | | | | 1.000% | | | | 5,400 | | | $ | (57,518 | ) | | $ | (114,046 | ) | | $ | (56,528 | ) |
CDX.NA.IG.22.V1 | | | 06/20/19 | | | | 1.000% | | | | 3,500 | | | | (53,477 | ) | | | (61,651 | ) | | | (8,174 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (110,995 | ) | | $ | (175,697 | ) | | $ | (64,702 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination Date | | | Fixed Rate | | | Notional Amount (000)#(4) | | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Depreciation | | | Counterparty |
Over-the-counter credit default swaps on corporate issues—Buy Protection(1): |
American International Group, Inc. | | | 03/20/18 | | | | 3.700% | | | | 250 | | | $ | (32,497 | ) | | $ | — | | | $ | (32,497 | ) | | Deutsche Bank AG |
Mead-Westvaco Corp. | | | 09/20/19 | | | | 1.000% | | | | 450 | | | | (1,708 | ) | | | 4,774 | | | | (6,482 | ) | | JPMorgan Chase |
R.R. Donnelley & Sons Co. | | | 06/20/14 | | | | 1.000% | | | | 600 | | | | (1,422 | ) | | | 1,325 | | | | (2,747 | ) | | Deutsche Bank AG |
R.R. Donnelley & Sons Co. | | | 09/20/16 | | | | 1.000% | | | | 450 | | | | (2,768 | ) | | | 19,128 | | | | (21,896 | ) | | JPMorgan Chase |
SLM Corp. | | | 06/20/14 | | | | 5.000% | | | | 510 | | | | (6,314 | ) | | | 2,726 | | | | (9,040 | ) | | JPMorgan Chase |
Toll Brothers Finance Corp. | | | 03/20/15 | | | | 1.000% | | | | 420 | | | | (3,222 | ) | | | 435 | | | | (3,657 | ) | | Credit Suisse First Boston Corp. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (47,931 | ) | | $ | 28,388 | | | $ | (76,319 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination Date | | | Fixed Rate | | | Notional Amount (000)#(4) | | | Implied Credit Spread at April 30, 2014(3) | | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation | | | Counterparty |
Over-the-counter credit default swaps on corporate issues—Sell Protection(2): |
Hewlett-Packard Co. | | | 12/20/17 | | | | 1.000% | | | | 800 | | | | 0.478 | % | | $ | 15,976 | | | $ | (81,584 | ) | | $ | 97,560 | | | Credit Suisse First Boston Corp. |
Petrobras | | | 03/20/19 | | | | 1.000% | | | | 3,000 | | | | 2.266 | % | | | (169,598 | ) | | | (236,703 | ) | | | 67,105 | | | Hong Kong & Shanghai Bank |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (153,622 | ) | | $ | (318,287 | ) | | $ | 164,665 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination Date | | | Fixed Rate | | | Notional Amount (000)#(4) | | | Fair Value(5) | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation | | | Counterparty |
Over-the-counter credit default swaps on credit indices—Sell Protection(2): |
CMBX.NA.7.AAA | | | 01/17/47 | | | | 0.500% | | | | 7,000 | | | $ | (210,769 | ) | | $ | (245,420 | ) | | $ | 34,651 | | | Deutsche Bank AG |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination Date | | | Fixed Rate | | | Notional Amount (000)#(4) | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
Over-the-counter credit default swaps on sovereign issues—Buy Protection(1): |
Republic of Ireland | | | 06/20/19 | | | | 1.000% | | | 700 | | $ | (12,137 | ) | | $ | (10,214 | ) | | $ | (1,923 | ) | | Deutsche Bank AG |
Republic of Italy | | | 06/20/19 | | | | 1.000% | | | 900 | | | 5,024 | | | | 5,731 | | | | (707 | ) | | Deutsche Bank AG |
Republic of Portugal | | | 06/20/19 | | | | 1.000% | | | 400 | | | 12,559 | | | | 12,655 | | | | (96 | ) | | Deutsche Bank AG |
Republic of Slovenia | | | 06/20/19 | | | | 1.000% | | | 900 | | | 28,992 | | | | 19,141 | | | | 9,851 | | | JPMorgan Chase |
Socialist Party of Great Britain | | | 06/20/19 | | | | 1.000% | | | 700 | | | (4,206 | ) | | | (2,982 | ) | | | (1,224 | ) | | Deutsche Bank AG |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | $ | 30,232 | | | $ | 24,331 | | | $ | 5,901 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 39 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination Date | | | Fixed Rate | | | Notional Amount (000)#(4) | | | Implied Credit Spread at April 30, 2014(3) | | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
Over-the-counter credit default swaps on sovereign issues—Sell Protection(2): | | | | | | | |
Kingdom of Belgium | | | 09/20/15 | | | | 1.000% | | | | 1,300 | | | | 0.100 | % | | $ | 17,951 | | | $ | (41,964 | ) | | $ | 59,915 | | | Hong Kong & Shanghai Bank |
Kingdom of Belgium | | | 03/20/20 | | | | 1.000% | | | | 3,000 | | | | 0.530 | % | | | 83,104 | | | | (14,500 | ) | | | 97,604 | | | Hong Kong & Shanghai Bank |
People’s Republic of China | | | 06/20/19 | | | | 1.000% | | | | 650 | | | | 0.887 | % | | | 4,378 | | | | 603 | | | | 3,775 | | | Hong Kong & Shanghai Bank |
Republic of Brazil | | | 03/20/18 | | | | 1.000% | | | | 1,500 | | | | 1.116 | % | | | (4,857 | ) | | | (17,515 | ) | | | 12,658 | | | Deutsche Bank AG |
Republic of France | | | 06/20/15 | | | | 0.250% | | | | 5,000 | | | | 0.063 | % | | | 12,236 | | | | (176,316 | ) | | | 188,552 | | | Barclays Capital Group |
Republic of France | | | 06/20/16 | | | | 0.250% | | | | 2,700 | | | | 0.136 | % | | | 7,444 | | | | (156,882 | ) | | | 164,326 | | | Barclays Capital Group |
Republic of France | | | 06/20/17 | | | | 0.250% | | | | 2,500 | | | | 0.236 | % | | | 1,832 | | | | (194,311 | ) | | | 196,143 | | | Barclays Capital Group |
Republic of France | | | 12/20/16 | | | | 0.250% | | | | 4,500 | | | | 0.195 | % | | | 7,811 | | | | (353,862 | ) | | | 361,673 | | | Citigroup Global Markets |
Republic of France | | | 03/20/19 | | | | 0.250% | | | | 1,200 | | | | 0.436 | % | | | (10,268 | ) | | | (14,962 | ) | | | 4,694 | | | Deutsche Bank AG |
Republic of France | | | 03/20/24 | | | | 0.250% | | | | 1,200 | | | | 0.910 | % | | | (67,835 | ) | | | (71,827 | ) | | | 3,992 | | | Goldman Sachs & Co. |
Republic of France | | | 09/20/22 | | | | 0.250% | | | | 3,000 | | | | 0.814 | % | | | (127,586 | ) | | | (290,349 | ) | | | 162,763 | | | Hong Kong & Shanghai Bank |
Republic of France | | | 03/20/20 | | | | 0.250% | | | | 3,000 | | | | 0.570 | % | | | (53,203 | ) | | | (188,678 | ) | | | 135,475 | | | JPMorgan Chase |
Republic of France | | | 03/20/22 | | | | 0.250% | | | | 1,250 | | | | 0.773 | % | | | (46,863 | ) | | | (167,253 | ) | | | 120,390 | | | Morgan Stanley |
Republic of France | | | 12/20/16 | | | | 1.000% | | | | 1,000 | | | | 0.195 | % | | | 22,482 | | | | (31,892 | ) | | | 54,374 | | �� | UBS AG |
Republic of Indonesia | | | 12/20/18 | | | | 1.000% | | | | 1,200 | | | | 1.563 | % | | | (29,764 | ) | | | (70,888 | ) | | | 41,124 | | | Goldman Sachs & Co. |
Republic of Indonesia | | | 09/20/18 | | | | 1.000% | | | | 2,200 | | | | 1.468 | % | | | (40,691 | ) | | | (122,244 | ) | | | 81,553 | | | UBS AG |
Republic of Ireland | | | 06/20/24 | | | | 1.000% | | | | 700 | | | | 1.128 | % | | | (6,943 | ) | | | (8,907 | ) | | | 1,964 | | | Deutsche Bank AG |
Republic of Ireland | | | 12/20/14 | | | | 1.000% | | | | 2,000 | | | | 0.097 | % | | | 14,039 | | | | (399,762 | ) | | | 413,801 | | | Hong Kong & Shanghai Bank |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination Date | | | Fixed Rate | | | Notional Amount (000)#(4) | | | Implied Credit Spread at April 30, 2014(3) | | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
Over-the-counter credit default swaps on sovereign issues—Sell Protection(2) (cont’d.): |
Republic of Ireland | | | 06/20/18 | | | | 1.000% | | | | 2,000 | | | | 0.548 | % | | $ | 39,021 | | | $ | (81,678 | ) | | $ | 120,699 | | | Hong Kong & Shanghai Bank |
Republic of Italy | | | 06/20/24 | | | | 1.000% | | | | 900 | | | | 1.708 | % | | | (51,771 | ) | | | (50,860 | ) | | | (911 | ) | | Deutsche Bank AG |
Republic of Italy | | | 12/20/16 | | | | 1.000% | | | | 2,000 | | | | 0.711 | % | | | 17,537 | | | | (293,423 | ) | | | 310,960 | | | UBS AG |
Republic of Portugal | | | 12/20/14 | | | | 1.000% | | | | 1,500 | | | | 0.339 | % | | | 8,176 | | | | (412,057 | ) | | | 420,233 | | | Barclays Capital Group |
Republic of Portugal | | | 06/20/24 | | | | 1.000% | | | | 400 | | | | 2.336 | % | | | (41,965 | ) | | | (39,789 | ) | | | (2,176 | ) | | Deutsche Bank AG |
Republic of Slovenia | | | 06/20/24 | | | | 1.000% | | | | 900 | | | | 2.142 | % | | | (83,524 | ) | | | (69,737 | ) | | | (13,787 | ) | | Hong Kong & Shanghai Bank |
Republic of South Africa | | | 12/20/18 | | | | 1.000% | | | | 1,200 | | | | 1.726 | % | | | (38,450 | ) | | | (64,857 | ) | | | 26,407 | | | Goldman Sachs & Co. |
Socialist Party of Great Britain | | | 06/20/24 | | | | 1.000% | | | | 700 | | | | 1.430 | % | | | (24,607 | ) | | | (25,398 | ) | | | 791 | | | Deutsche Bank AG |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (392,316 | ) | | $ | (3,359,308 | ) | | $ | 2,966,992 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Fund entered into credit default swap agreements on corporate issues, credit indices and sovereign issues as the protection seller to provide a measure of protection against the current Portfolio of Investments’ exposure to market conditions, or to take an active short position with respect to the likelihood of a particular issuer’s default or the referenced entity’s credit soundness.
(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) | If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(3) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of the reporting date serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 41 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
(4) | 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. |
(5) | The fair value of credit default swap agreements on credit indices serves as an indicator of the current status of the payment/performance risk and represents the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the reporting date. Increasing fair value in absolute terms represents 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. |
# | Notional amount is shown in U.S. dollars unless otherwise stated. |
Interest rate swap agreements outstanding at April 30, 2014:
| | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | Floating Rate | | Value at Trade Date | | | Value at April 30, 2014 | | | Unrealized Appreciation (Depreciation) | |
Exchange-traded swap agreements: | |
CAD | | | 3,000 | | | | 08/20/23 | | | 3.134% | | 3 Month Canadian Banker’s Acceptance(1) | | $ | 167 | | | $ | (100,898 | ) | | $ | (101,065 | ) |
CHF | | | 5,700 | | | | 02/13/16 | | | 0.090% | | 6 Month CHF LIBOR(2) | | | 177 | | | | 2,497 | | | | 2,320 | |
CHF | | | 3,900 | | | | 02/13/19 | | | 0.520% | | 6 Month CHF LIBOR(1) | | | 185 | | | | (35,138 | ) | | | (35,323 | ) |
CHF | | | 980 | | | | 02/13/24 | | | 1.365% | | 6 Month CHF LIBOR(2) | | | 171 | | | | 24,127 | | | | 23,956 | |
EUR | | | 10,700 | | | | 09/03/15 | | | 0.629% | | 6 Month EURIBOR(1) | | | 233 | | | | (45,815 | ) | | | (46,048 | ) |
EUR | | | 18,600 | | | | 02/14/16 | | | 0.445% | | 6 Month EURIBOR(1) | | | 136 | | | | (7,884 | ) | | | (8,020 | ) |
EUR | | | 4,000 | | | | 03/13/17 | | | 0.493% | | 3 Month EURIBOR(1) | | | — | | | | (13,967 | ) | | | (13,967 | ) |
EUR | | | 600 | | | | 05/09/18 | | | 0.807% | | 6 Month EURIBOR(2) | | | — | | | | 2,181 | | | | 2,181 | |
EUR | | | 5,550 | | | | 09/03/18 | | | 1.352% | | 6 Month EURIBOR(1) | | | 232 | | | | (184,254 | ) | | | (184,486 | ) |
EUR | | | 2,000 | | | | 10/24/18 | | | — | | 3 Month EURIBOR(3) | | | 213 | | | | 938 | | | | 725 | |
EUR | | | 700 | | | | 09/03/23 | | | 2.171% | | 6 Month EURIBOR(2) | | | 205 | | | | 47,020 | | | | 46,815 | |
EUR | | | 1,600 | | | | 10/10/23 | | | 2.130% | | 6 Month EURIBOR(2) | | | 221 | | | | 97,423 | | | | 97,202 | |
EUR | | | 300 | | | | 03/04/29 | | | 2.302% | | 6 Month EURIBOR(2) | | | — | | | | 9,529 | | | | 9,529 | |
EUR | | | 440 | | | | 07/01/43 | | | 2.505% | | 6 Month EURIBOR(2) | | | — | | | | 17,431 | | | | 17,431 | |
EUR | | | 500 | | | | 09/03/43 | | | 2.691% | | 6 Month EURIBOR(2) | | | 209 | | | | 48,524 | | | | 48,315 | |
GBP | | | 2,300 | | | | 03/05/34 | | | 3.926% | | 6 Month GBP LIBOR(1) | | | 279 | | | | (21,970 | ) | | | (22,249 | ) |
GBP | | | 920 | | | | 03/07/34 | | | 3.993% | | 6 Month GBP LIBOR(1) | | | — | | | | (15,664 | ) | | | (15,664 | ) |
GBP | | | 150 | | | | 03/12/54 | | | 3.290% | | 6 Month GBP LIBOR(1) | | | 254 | | | | (3,071 | ) | | | (3,325 | ) |
HKD | | | 48,000 | | | | 02/25/16 | | | 0.630% | | 3 Month HIBOR(2) | | | 34 | | | | (3,863 | ) | | | (3,897 | ) |
JPY | | | 90,000 | | | | 02/20/29 | | | 1.260% | | 6 Month YEN LIBOR(2) | | | 10 | | | | 2,810 | | | | 2,800 | |
JPY | | | 50,000 | | | | 04/02/29 | | | 1.288% | | 6 Month YEN LIBOR(2) | | | 5 | | | | 2,803 | | | | 2,798 | |
MXN | | | 35,000 | | | | 04/18/19 | | | 5.480% | | 28 Day Mexican Interbank Rate(2) | | | 24 | | | | 3,461 | | | | 3,437 | |
MXN | | | 31,100 | | | | 05/25/22 | | | 6.370% | | 28 Day Mexican Interbank Rate(2) | | | 28 | | | | 11,769 | | | | 11,741 | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | Floating Rate | | Value at Trade Date | | | Value at April 30, 2014 | | | Unrealized Appreciation (Depreciation) | |
Exchange-traded swap agreements (cont’d.): | |
NOK | | | 7,000 | | | | 08/26/16 | | | 2.320% | | 6 Month NIBOR(2) | | $ | 28 | | | $ | 8,231 | | | $ | 8,203 | |
NZD | | | 2,600 | | | | 03/13/19 | | | 4.550% | | 3 Month BBR(2) | | | — | | | | 4,395 | | | | 4,395 | |
NZD | | | 750 | | | | 03/13/24 | | | 5.080% | | 3 Month BBR(2) | | | — | | | | 9,225 | | | | 9,225 | |
SEK | | | 13,300 | | | | 08/26/16 | | | 1.930% | | 3 Month SEK LIBOR(2) | | | 28 | | | | 42,888 | | | | 42,860 | |
ZAR | | | 85,000 | | | | 02/24/16 | | | 7.220% | | 3 Month JIBAR(2) | | | 14 | | | | 62,591 | | | | 62,577 | |
| | | 54,300 | | | | 07/17/15 | | | 0.519% | | 3 Month LIBOR(1) | | | — | | | | (152,686 | ) | | | (152,686 | ) |
| | | 7,000 | | | | 02/27/16 | | | 0.461% | | 3 Month LIBOR(1) | | | 167 | | | | 342 | | | | 175 | |
| | | 5,800 | | | | 08/10/17 | | | 1.866% | | 3 Month LIBOR(2) | | | 165 | | | | 28,522 | | | | 28,357 | |
| | | 11,100 | | | | 08/31/18 | | | 1.644% | | 3 Month LIBOR(1) | | | 195 | | | | (30,973 | ) | | | (31,168 | ) |
| | | 5,900 | | | | 08/31/18 | | | 1.686% | | 3 Month LIBOR(1) | | | 174 | | | | (26,631 | ) | | | (26,805 | ) |
| | | 8,800 | | | | 08/31/18 | | | 1.758% | | 3 Month LIBOR(1) | | | 186 | | | | (65,831 | ) | | | (66,017 | ) |
| | | 21,000 | | | | 08/08/19 | | | 3.111% | | 3 Month LIBOR(2) | | | 203 | | | | 192,044 | | | | 191,841 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 3,943 | | | $ | (89,894 | ) | | $ | (93,837 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Foreign Bonds with a combined market value of $1,646,264 have been segregated with Citigroup Global Markets to cover requirements for open exchange-traded and cleared swap contracts at April 30, 2014.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| Over-the-counter swap agreements |
AED | 35,000 | | | | 03/09/15 | | | | 1.020% | | | 3 Month EIBOR(1) | | $ | (25,210 | ) | | $ | — | | | $ | (25,210 | ) | | Citigroup Global Markets |
AUD | 1,000 | | | | 09/07/21 | | | | 4.945% | | | 6 Month BBSW(2) | | | 64,158 | | | | — | | | | 64,158 | | | Citigroup Global Markets |
AUD | 1,000 | | | | 08/31/22 | | | | 3.890% | | | 6 Month BBSW(2) | | | (8,308 | ) | | | — | | | | (8,308 | ) | | Citigroup Global Markets |
AUD | 1,400 | | | | 08/31/22 | | | | 3.920% | | | 6 Month BBSW(2) | | | (8,848 | ) | | | — | | | | (8,848 | ) | | Citigroup Global Markets |
AUD | 1,700 | | | | 09/21/22 | | | | 3.830% | | | 6 Month BBSW(2) | | | (23,387 | ) | | | — | | | | (23,387 | ) | | Citigroup Global Markets |
AUD | 400 | | | | 11/07/22 | | | | 3.790% | | | 6 Month BBSW(2) | | | (5,350 | ) | | | — | | | | (5,350 | ) | | Citigroup Global Markets |
AUD | 2,800 | | | | 08/08/23 | | | | 4.170% | | | 6 Month BBSW(1) | | | (14,485 | ) | | | — | | | | (14,485 | ) | | Citigroup Global Markets |
AUD | 2,000 | | | | 12/19/32 | | | | 4.423% | | | 6 Month BBSW(2) | | | (31,539 | ) | | | — | | | | (31,539 | ) | | Barclays Capital Group |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 43 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| Over-the-counter swap agreements (cont’d.) |
AUD | 650 | | | | 03/15/43 | | | | 4.755% | | | 6 Month BBSW(2) | | $ | 10,782 | | | $ | — | | | $ | 10,782 | | | Citigroup Global Markets |
BRL | 5,610 | | | | 01/01/17 | | | | — | | | 1 Day BZDIOVER(2) | | | (177,212 | ) | | | — | | | | (177,212 | ) | | Barclays Capital Group |
BRL | 8,819 | | | | 01/01/17 | | | | — | | | 1 Day BZDIOVER(2) | | | (135,541 | ) | | | — | | | | (135,541 | ) | | Hong Kong & Shanghai Bank |
BRL | 445 | | | | 01/01/21 | | | | — | | | 1 Day BZDIOVER(2) | | | (28,833 | ) | | | — | | | | (28,833 | ) | | Citigroup Global Markets |
BRL | 880 | | | | 01/01/21 | | | | — | | | 1 Day BZDIOVER(2) | | | (56,160 | ) | | | — | | | | (56,160 | ) | | Citigroup Global Markets |
BRL | 880 | | | | 01/01/21 | | | | — | | | 1 Day BZDIOVER(2) | | | (56,160 | ) | | | — | | | | (56,160 | ) | | Citigroup Global Markets |
BRL | 4,228 | | | | 01/01/21 | | | | — | | | 1 Day BZDIOVER(2) | | | 31,309 | | | | — | | | | 31,309 | | | Deutsche Bank AG |
BRL | 859 | | | | 01/01/21 | | | | — | | | 1 Day BZDIOVER(2) | | | 19,880 | | | | — | | | | 19,880 | | | Deutsche Bank AG |
CAD | 3,200 | | | | 02/22/17 | | | | 1.708% | | | 3 Month Canadian Banker’s Acceptance(2) | | | 14,106 | | | | — | | | | 14,106 | | | Citigroup Global Markets |
CAD | 650 | | | | 11/06/17 | | | | 1.645% | | | 3 Month Canadian Banker’s Acceptance(2) | | | (337 | ) | | | — | | | | (337 | ) | | Citigroup Global Markets |
CAD | 500 | | | | 12/27/17 | | | | 1.700% | | | 3 Month Canadian Banker’s Acceptance(2) | | | (80 | ) | | | — | | | | (80 | ) | | Citigroup Global Markets |
CAD | 5,400 | | | | 08/17/22 | | | | 2.370% | | | 3 Month Canadian Banker’s Acceptance(2) | | | (63,319 | ) | | | — | | | | (63,319 | ) | | Citigroup Global Markets |
CAD | 350 | | | | 11/06/22 | | | | 2.203% | | | 3 Month Canadian Banker’s Acceptance(2) | | | (8,240 | ) | | | — | | | | (8,240 | ) | | Citigroup Global Markets |
CAD | 700 | | | | 02/22/42 | | | | 2.865% | | | 3 Month Canadian Banker’s Acceptance(1) | | | 57,835 | | | | — | | | | 57,835 | | | Citigroup Global Markets |
CHF | 3,500 | | | | 07/20/14 | | | | 0.406% | | | 3 Month CHF LIBOR(1) | | | 3,632 | | | | — | | | | 3,632 | | | Credit Suisse First Boston Corp. |
CHF | 1,000 | | | | 03/01/22 | | | | 1.030% | | | 6 Month CHF LIBOR(2) | | | 15,921 | | | | — | | | | 15,921 | | | Credit Suisse First Boston Corp. |
CLP | 700,000 | | | | 02/27/24 | | | | 5.230% | | | 6 Month CLICP(2) | | | 22,458 | | | | — | | | | 22,458 | | | Deutsche Bank AG |
COP | 6,500,000 | | | | 04/25/16 | | | | 3.710% | | | 1 Day COLIBOR OIS(2) | | | (62,410 | ) | | | — | | | | (62,410 | ) | | BNP Paribas |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| Over-the-counter swap agreements (cont’d.) |
COP | 3,300,000 | | | | 11/19/18 | | | | 5.380% | | | 1 day COLIBOR OIS(2) | | $ | 21,170 | | | $ | — | | | $ | 21,170 | | | Hong Kong & Shanghai Bank |
COP | 1,000,000 | | | | 06/27/23 | | | | 6.840% | | | 1 day COLIBOR OIS(2) | | | 57,642 | | | | — | | | | 57,642 | | | Deutsche Bank AG |
CZK | 25,000 | | | | 06/27/18 | | | | 1.635% | | | 6 month PRIBOR(2) | | | 56,488 | | | | — | | | | 56,488 | | | Hong Kong & Shanghai Bank |
DKK | 31,000 | | | | 01/25/16 | | | | 0.910% | | | 6 month CIBOR(2) | | | 40,077 | | | | — | | | | 40,077 | | | Deutsche Bank AG |
DKK | 3,200 | | | | 03/01/22 | | | | 2.300% | �� | | 6 month CIBOR(2) | | | 29,843 | | | | — | | | | 29,843 | | | Credit Suisse First Boston Corp. |
EUR | 3,000 | | | | 07/20/14 | | | | 0.406% | | | 3 month EURIBOR(2) | | | 11,964 | | | | — | | | | 11,964 | | | Credit Suisse First Boston Corp. |
EUR | 3,000 | | | | 08/19/14 | | | | 1.065% | | | 1 day EUR EONIA OIS(2) | | | 38,267 | | | | — | | | | 38,267 | | | Hong Kong & Shanghai Bank |
EUR | 10,000 | | | | 12/10/14 | | | | 0.035% | | | 1 day EUR EONIA OIS(1) | | | 18,616 | | | | — | | | | 18,616 | | | Hong Kong & Shanghai Bank |
EUR | 1,000 | | | | 12/16/16 | | | | 1.210% | | | 1 day EUR EONIA OIS(2) | | | 41,827 | | | | — | | | | 41,827 | | | Hong Kong & Shanghai Bank |
EUR | 5,500 | | | | 12/10/17 | | | | 0.452% | | | 1 day EUR EONIA OIS(2) | | | 35,974 | | | | — | | | | 35,974 | | | Hong Kong & Shanghai Bank |
EUR | 1,200 | | | | 01/14/18 | | | | 0.628% | | | 1 day EUR EONIA OIS(2) | | | 18,458 | | | | — | | | | 18,458 | | | Hong Kong & Shanghai Bank |
EUR | 600 | | | | 07/27/22 | | | | 1.772% | | | 6 month EURIBOR(2) | | | 31,115 | | | | — | | | | 31,115 | | | Citigroup Global Markets |
EUR | 650 | | | | 09/24/42 | | | | 2.404% | | | 6 month EURIBOR(2) | | | 20,348 | | | | — | | | | 20,348 | | | Citigroup Global Markets |
EUR | 850 | | | | 03/27/43 | | | | 2.327% | | | 6 month EURIBOR(2) | | | (8,318 | ) | | | — | | | | (8,318 | ) | | Bank of America |
GBP | 500 | | | | 08/01/16 | | | | 2.060% | | | 6 month GBP LIBOR(2) | | | 19,155 | | | | — | | | | 19,155 | | | Citigroup Global Markets |
GBP | 2,000 | | | | 08/17/22 | | | | 1.975% | | | 3 month GBP LIBOR(2) | | | (98,710 | ) | | | — | | | | (98,710 | ) | | Bank of Nova Scotia |
GBP | 200 | | | | 09/27/22 | | | | 1.790% | | | 3 month GBP LIBOR(2) | | | (16,190 | ) | | | — | | | | (16,190 | ) | | Hong Kong & Shanghai Bank |
GBP | 2,600 | | | | 01/13/32 | | | | 2.788% | | | 6 month GBP LIBOR(2) | | | (200,432 | ) | | | — | | | | (200,432 | ) | | Barclays Capital Group |
GBP | 1,420 | | | | 04/24/43 | | | | 2.932% | | | 6 month GBP LIBOR(2) | | | (154,246 | ) | | | — | | | | (154,246 | ) | | Hong Kong & Shanghai Bank |
HKD | 27,000 | | | | 01/04/18 | | | | 0.805% | | | 3 month HIBOR(1) | | | 79,403 | | | | — | | | | 79,403 | | | Bank of America |
HKD | 25,000 | | | | 07/29/18 | | | | 1.625% | | | 3 month HIBOR(2) | | | (12,553 | ) | | | — | | | | (12,553 | ) | | Hong Kong & Shanghai Bank |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 45 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| Over-the-counter swap agreements (cont’d.) |
HKD | 25,000 | | | | 10/08/18 | | | | 1.635% | | | 3 month HIBOR(1) | | $ | 8,849 | | | $ | — | | | $ | 8,849 | | | Hong Kong & Shanghai Bank |
HKD | 8,200 | | | | 08/22/22 | | | | 1.560% | | | 3 month HIBOR(1) | | | 78,878 | | | | — | | | | 78,878 | | | Hong Kong & Shanghai Bank |
HUF | 620,000 | | | | 11/19/18 | | | | 4.290% | | | 6 month BUBOR(2) | | | 79,860 | | | | — | | | | 79,860 | | | Credit Suisse First Boston Corp. |
HUF | 330,000 | | | | 03/27/23 | | | | 5.510% | | | 6 month BUBOR(2) | | | 110,739 | | | | — | | | | 110,739 | | | Deutsche Bank AG |
ILS | 6,500 | | | | 11/20/18 | | | | 2.200% | | | 3 month TELBOR(2) | | | 44,488 | | | | — | | | | 44,488 | | | Hong Kong & Shanghai Bank |
ILS | 3,200 | | | | 03/06/23 | | | | 3.525% | | | 3 month TELBOR(2) | | | 44,024 | | | | — | | | | 44,024 | | | Deutsche Bank AG |
ILS | 4,200 | | | | 06/27/23 | | | | 3.730% | | | 3 month TELBOR(2) | | | 105,643 | | | | — | | | | 105,643 | | | Credit Suisse First Boston Corp. |
JPY | 300,000 | | | | 01/15/16 | | | | 0.790% | | | Japan CPI(2) | | | (101,351 | ) | | | — | | | | (101,351 | ) | | Barclays Capital Group |
JPY | 60,000 | | | | 02/02/21 | | | | 1.265% | | | 6 month YEN LIBOR(2) | | | 32,009 | | | | — | | | | 32,009 | | | Barclays Capital Group |
JPY | 96,000 | | | | 02/16/21 | | | | 1.365% | | | 6 month YEN LIBOR(2) | | | 57,456 | | | | — | | | | 57,456 | | | Barclays Capital Group |
JPY | 50,000 | | | | 06/02/21 | | | | 1.200% | | | 6 month YEN LIBOR(2) | | | 25,390 | | | | — | | | | 25,390 | | | Barclays Capital Group |
JPY | 45,000 | | | | 06/16/21 | | | | 1.170% | | | 6 month YEN LIBOR(2) | | | 21,634 | | | | — | | | | 21,634 | | | Barclays Capital Group |
JPY | 40,000 | | | | 06/28/21 | | | | 1.123% | | | 6 month YEN LIBOR(2) | | | 17,714 | | | | — | | | | 17,714 | | | Barclays Capital Group |
JPY | 30,000 | | | | 07/22/21 | | | | 1.090% | | | 6 month YEN LIBOR(2) | | | 12,369 | | | | — | | | | 12,369 | | | Citigroup Global Markets |
JPY | 220,000 | | | | 07/26/22 | | | | 0.745% | | | 6 month YEN LIBOR(2) | | | 22,783 | | | | — | | | | 22,783 | | | Barclays Capital Group |
JPY | 55,000 | | | | 11/20/22 | | | | 0.748% | | | 6 month YEN LIBOR(2) | | | 5,238 | | | | — | | | | 5,238 | | | Barclays Capital Group |
JPY | 120,000 | | | | 12/27/22 | | | | 0.803% | | | 6 month YEN LIBOR(2) | | | 16,444 | | | | — | | | | 16,444 | | | Hong Kong & Shanghai Bank |
JPY | 175,000 | | | | 03/15/23 | | | | 0.755% | | | 6 month YEN LIBOR(2) | | | 10,817 | | | | — | | | | 10,817 | | | Barclays Capital Group |
JPY | 85,500 | | | | 07/21/24 | | | | 1.489% | | | 6 month YEN LIBOR(2) | | | 59,023 | | | | — | | | | 59,023 | | | Citigroup Global Markets |
JPY | 60,000 | | | | 07/04/26 | | | | 1.603% | | | 6 month YEN LIBOR(2) | | | 44,566 | | | | — | | | | 44,566 | | | Citigroup Global Markets |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| Over-the-counter swap agreements (cont’d.) |
JPY | 70,000 | | | | 08/02/26 | | | 1.534% | | 6 month YEN LIBOR(2) | | $ | 45,209 | | | $ | — | | | $ | 45,209 | | | Citigroup Global Markets |
JPY | 300,000 | | | | 09/03/27 | | | 1.290% | | 6 month YEN LIBOR(2) | | | 74,366 | | | | — | | | | 74,366 | | | Citigroup Global Markets |
JPY | 35,000 | | | | 10/02/27 | | | 1.238% | | 6 month YEN LIBOR(2) | | | 5,748 | | | | — | | | | 5,748 | | | Barclays Capital Group |
JPY | 55,000 | | | | 11/05/27 | | | 1.270% | | 6 month YEN LIBOR(2) | | | 13,141 | | | | — | | | | 13,141 | | | Barclays Capital Group |
JPY | 40,000 | | | | 12/04/27 | | | 1.261% | | 6 month YEN LIBOR(2) | | | 8,394 | | | | — | | | | 8,394 | | | Citigroup Global Markets |
JPY | 40,000 | | | | 12/14/27 | | | 1.235% | | 6 month YEN LIBOR(2) | | | 6,737 | | | | — | | | | 6,737 | | | Citigroup Global Markets |
JPY | 120,000 | | | | 02/20/28 | | | 1.353% | | 6 month YEN LIBOR(2) | | | 34,350 | | | | — | | | | 34,350 | | | Deutsche Bank AG |
JPY | 200,000 | | | | 04/16/28 | | | 1.235% | | 6 month YEN LIBOR(2) | | | 19,914 | | | | — | | | | 19,914 | | | Barclays Capital Group |
JPY | 110,000 | | | | 08/18/31 | | | 1.750% | | 6 month YEN LIBOR(2) | | | 61,790 | | | | — | | | | 61,790 | | | Barclays Capital Group |
JPY | 25,000 | | | | 08/30/31 | | | 1.750% | | 6 month YEN LIBOR(2) | | | 13,901 | | | | — | | | | 13,901 | | | Barclays Capital Group |
JPY | 240,000 | | | | 01/18/32 | | | 1.638% | | 6 month YEN LIBOR(2) | | | 85,278 | | | | — | | | | 85,278 | | | Barclays Capital Group |
JPY | 30,000 | | | | 11/05/32 | | | 1.563% | | 6 month YEN LIBOR(2) | | | 5,661 | | | | — | | | | 5,661 | | | Barclays Capital Group |
JPY | 160,000 | | | | 11/14/32 | | | 2.390% | | 6 month YEN LIBOR(2) | | | 14,612 | | | | — | | | | 14,612 | | | Citigroup Global Markets |
JPY | 35,000 | | | | 12/14/32 | | | 1.575% | | 6 month YEN LIBOR(2) | | | 7,763 | | | | — | | | | 7,763 | | | Citigroup Global Markets |
JPY | 40,000 | | | | 07/09/42 | | | 1.705% | | 6 month YEN LIBOR(2) | | | 153 | | | | — | | | | 153 | | | Barclays Capital Group |
JPY | 20,000 | | | | 10/02/42 | | | 1.659% | | 6 month YEN LIBOR(2) | | | (5,348 | ) | | | — | | | | (5,348 | ) | | Barclays Capital Group |
JPY | 70,000 | | | | 01/28/43 | | | 1.955% | | 6 month YEN LIBOR(2) | | | 32,247 | | | | — | | | | 32,247 | | | JPMorgan Chase |
JPY | 137,500 | | | | 05/21/43 | | | 2.003% | | 6 month YEN LIBOR(1) | | | (83,012 | ) | | | — | | | | (83,012 | ) | | Credit Suisse First Boston Corp. |
JPY | 45,000 | | | | 05/28/43 | | | 2.088% | | 6 month YEN LIBOR(1) | | | (36,401 | ) | | | — | | | | (36,401 | ) | | Deutsche Bank AG |
JPY | 45,800 | | | | 05/29/43 | | | 2.013% | | 6 month YEN LIBOR(1) | | | (28,566 | ) | | | — | | | | (28,566 | ) | | Morgan Stanley |
JPY | 100,000 | | | | 06/03/43 | | | 1.970% | | 6 month YEN LIBOR(2) | | | 51,685 | | | | — | | | | 51,685 | | | JPMorgan Chase |
MXN | 45,000 | | | | 12/02/15 | | | 5.090% | | 28 Day Mexican Interbank Rate(2) | | | 56,114 | | | | — | | | | 56,114 | | | Deutsche Bank AG |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 47 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| Over-the-counter swap agreements (cont’d.) |
MXN | 37,000 | | | | 06/20/18 | | | | 6.020% | | | 28 Day Mexican Interbank Rate(2) | | $ | 98,353 | | | $ | — | | | $ | 98,353 | | | Credit Suisse First Boston Corp. |
MXN | 15,700 | | | | 04/28/23 | | | | 5.100% | | | 28 Day Mexican Interbank Rate(2) | | | (119,279 | ) | | | — | | | | (119,279 | ) | | Barclays Capital Group |
MXN | 17,500 | | | | 04/09/42 | | | | 7.890% | | | 28 Day Mexican Interbank Rate(2) | | | 56,287 | | | | — | | | | 56,287 | | | Barclays Capital Group |
NOK | 13,500 | | | | 11/07/17 | | | | 2.550% | | | 6 month NIBOR(2) | | | 33,037 | | | | — | | | | 33,037 | | | Citigroup Global Markets |
NOK | 4,500 | | | | 11/07/22 | | | | 3.190% | | | 6 month NIBOR(2) | | | 18,092 | | | | — | | | | 18,092 | | | Citigroup Global Markets |
NZD | 3,200 | | | | 08/18/16 | | | | 4.173% | | | 3 month BBR(2) | | | 14,842 | | | | — | | | | 14,842 | | | Citigroup Global Markets |
NZD | 1,480 | | | | 03/26/17 | | | | 3.810% | | | 3 month BBR(2) | | | (12,253 | ) | | | — | | | | (12,253 | ) | | Hong Kong & Shanghai Bank |
NZD | 1,700 | | | | 08/09/18 | | | | 4.145% | | | 3 month BBR(2) | | | (11,214 | ) | | | — | | | | (11,214 | ) | | Hong Kong & Shanghai Bank |
NZD | 1,320 | | | | 09/25/22 | | | | 3.790% | | | 3 month BBR(2) | | | (77,955 | ) | | | — | | | | (77,955 | ) | | Citigroup Global Markets |
NZD | 910 | | | | 08/09/23 | | | | 4.653% | | | 3 month BBR(2) | | | (8,318 | ) | | | — | | | | (8,318 | ) | | Hong Kong & Shanghai Bank |
PLN | 15,000 | | | | 06/28/18 | | | | 3.790% | | | 6 month WIBOR(2) | | | 191,960 | | | | — | | | | 191,960 | | | Deutsche Bank AG |
PLN | 4,900 | | | | 06/27/21 | | | | 5.390% | | | 6 month WIBOR(2) | | | 230,829 | | | | — | | | | 230,829 | | | UBS AG |
PLN | 5,700 | | | | 04/12/22 | | | | 5.030% | | | 6 month WIBOR(2) | | | 165,518 | | | | — | | | | 165,518 | | | Hong Kong & Shanghai Bank |
PLN | 4,000 | | | | 03/14/23 | | | | 3.810% | | | 6 month WIBOR(2) | | | (2,089 | ) | | | — | | | | (2,089 | ) | | Bank of America |
PLN | 4,100 | | | | 03/18/23 | | | | 3.660% | | | 6 month WIBOR(2) | | | (18,301 | ) | | | — | | | | (18,301 | ) | | Hong Kong & Shanghai Bank |
PLN | 3,600 | | | | 06/27/26 | | | | 5.280% | | | 6 month WIBOR(1) | | | (193,658 | ) | | | — | | | | (193,658 | ) | | UBS AG |
PLN | 4,100 | | | | 04/12/27 | | | | 4.810% | | | 6 month WIBOR(1) | | | (112,591 | ) | | | — | | | | (112,591 | ) | | Hong Kong & Shanghai Bank |
PLN | 3,500 | | | | 03/18/43 | | | | 3.380% | | | 6 month WIBOR(1) | | | 115,419 | | | | — | | | | 115,419 | | | Hong Kong & Shanghai Bank |
RUB | 70,000 | | | | 04/10/23 | | | | 7.470% | | | 3 month MOSPRIME(2) | | | (242,358 | ) | | | — | | | | (242,358 | ) | | Deutsche Bank AG |
SEK | 25,000 | | | | 05/10/16 | | | | 1.363% | | | 3 month STIBOR(2) | | | 73,497 | | | | — | | | | 73,497 | | | Royal Bank of Scotland Group PLC |
SEK | 3,700 | | | | 02/27/22 | | | | 2.520% | | | 3 month STIBOR(2) | | | 19,431 | | | | — | | | | 19,431 | | | Citigroup Global Markets |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| Over-the-counter swap agreements (cont’d.) |
SEK | 3,000 | | | | 01/16/23 | | | | 2.200% | | | 3 month STIBOR(2) | | $ | 1,550 | | | $ | — | | | $ | 1,550 | | | Barclays Capital Group |
SGD | 1,800 | | | | 01/08/18 | | | | 0.935% | | | 6 month SOR(2) | | | (16,888 | ) | | | — | | | | (16,888 | ) | | Bank of America |
THB | 100,000 | | | | 05/14/16 | | | | 2.630% | | | 3 month BIBOR(2) | | | 31,893 | | | | — | | | | 31,893 | | | Citigroup Global Markets |
THB | 50,000 | | | | 12/20/17 | | | | 3.230% | | | 6 month BIBOR(2) | | | 39,487 | | | | — | | | | 39,487 | | | Bank of America |
TWD | 390,000 | | | | 09/29/15 | | | | 1.090% | | | 3 month Secondary Market CP Bank Rate(1) | | | (22,617 | ) | | | — | | | | (22,617 | ) | | Bank of America |
TWD | 40,000 | | | | 12/24/22 | | | | 1.390% | | | 3 month Secondary Market CP Bank Rate(1) | | | 14,403 | | | | — | | | | 14,403 | | | Hong Kong & Shanghai Bank |
ZAR | 55,000 | | | | 06/25/18 | | | | 7.440% | | | 3 month JIBAR(2) | | | 4,277 | | | | — | | | | 4,277 | | | Hong Kong & Shanghai Bank |
ZAR | 17,000 | | | | 11/15/23 | | | | 8.085% | | | 3 month JIBAR(2) | | | (7,728 | ) | | | — | | | | (7,728 | ) | | Credit Suisse First Boston Corp. |
ZAR | 5,000 | | | | 09/03/33 | | | | 8.970% | | | 3 month JIBAR(2) | | | 20,155 | | | | — | | | | 20,155 | | | Hong Kong & Shanghai Bank |
| 5,000 | | | | 07/12/14 | | | | 0.518% | | | 3 month LIBOR(2) | | | 7,034 | | | | — | | | | 7,034 | | | Bank of Nova Scotia |
| 9,600 | | | | 03/08/15 | | | | 0.383% | | | 3 month LIBOR(2) | | | 12,952 | | | | — | | | | 12,952 | | | Deutsche Bank AG |
| 4,900 | | | | 01/25/16 | | | | 0.496% | | | 3 month LIBOR(1) | | | (9,110 | ) | | | — | | | | (9,110 | ) | | Deutsche Bank AG |
| 3,100 | | | | 02/24/17 | | | | 1.192% | | | 3 month LIBOR(1) | | | (31,064 | ) | | | — | | | | (31,064 | ) | | Citigroup Global Markets |
| 2,100 | | | | 01/08/18 | | | | 0.935% | | | 3 month LIBOR(2) | | | (21,465 | ) | | | — | | | | (21,465 | ) | | Bank of America |
| 1,100 | | | | 08/24/22 | | | | 1.875% | | | 3 month LIBOR(2) | | | (51,517 | ) | | | — | | | | (51,517 | ) | | Hong Kong & Shanghai Bank |
| 720 | | | | 02/24/42 | | | | 2.864% | | | 3 month LIBOR(2) | | | (73,645 | ) | | | — | | | | (73,645 | ) | | Citigroup Global Markets |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 761,835 | | | $ | — | | | $ | 761,835 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Fund pays the fixed rate and receives the floating rate |
(2) | Fund pays the floating rate and receives the fixed |
(3) | Fund pays the floating rate of 3 Month EURIBOR and receives the floating rate of 1 Month EURIBOR |
# | Notional amount is shown in U.S. dollars unless otherwise stated. |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 49 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
Forward rate agreements outstanding at April 30, 2014:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Depreciation | | | Counterparty |
CHF | 70,400 | | | | 07/30/14 | | | | (0.033)% | | | 3 month CHF LIBOR(1) | | $ | (5,181 | ) | | $ | — | | | $ | (5,181 | ) | | Credit Suisse First Boston Corp. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Fund pays the fixed rate and receives the floating rate |
# | Notional amount is shown in U.S. dollars unless otherwise stated. |
Currency swap agreements outstanding at April 30, 2014:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Fund Receives | | Notional Amount (000) | | | Fund Pays | | Counterparty | | Termination Date | | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | |
| 1,688 | | | 3 month LIBOR | | EUR | 1,300 | | | 3 month EURIBOR minus 30.50 bps | | Barclays Capital Group | | | 12/04/14 | | | $ | (111,486 | ) | | $ | — | | | $ | (111,486 | ) |
| 326 | | | 3 month LIBOR | | EUR | 250 | | | 3 month EURIBOR minus 31.70 bps | | Barclays Capital Group | | | 12/14/15 | | | | (19,020 | ) | | | — | | | | (19,020 | ) |
| 1,986 | | | 3 month LIBOR plus 472 bps | | EUR | 1,500 | | | 6.750% | | Citigroup Global Markets | | | 07/28/14 | | | | (209,900 | ) | | | (56,992 | ) | | | (152,908 | ) |
| 1,333 | | | 3 month LIBOR plus 178 bps | | EUR | 1,000 | | | 7.500% | | Citigroup Global Markets | | | 10/14/14 | | | | (144,403 | ) | | | (170,148 | ) | | | 25,745 | |
| 1,364 | | | 3 month LIBOR plus 247 bps | | EUR | 1,000 | | | 7.500% | | Citigroup Global Markets | | | 10/14/14 | | | | (108,291 | ) | | | (156,521 | ) | | | 48,230 | |
| 778 | | | 3 month LIBOR plus 290 bps | | EUR | 600 | | | 7.500% | | Citigroup Global Markets | | | 10/14/14 | | | | (103,999 | ) | | | (87,625 | ) | | | (16,374 | ) |
| 1,294 | | | 3 month LIBOR | | EUR | 1,000 | | | 3 month EURIBOR minus 28.75 bps | | Citigroup Global Markets | | | 10/15/14 | | | | (91,515 | ) | | | — | | | | (91,515 | ) |
| 808 | | | 3 month LIBOR plus 623 bps | | JPY | 62,000 | | | 5.500% | | Citigroup Global Markets | | | 12/15/14 | | | | 207,559 | | | | (12 | ) | | | 207,571 | |
| 494 | | | 3 month LIBOR plus 390 bps | | EUR | 400 | | | 5.000% | | Citigroup Global Markets | | | 03/18/15 | | | | (68,014 | ) | | | (14,732 | ) | | | (53,282 | ) |
| 2,105 | | | 3 month LIBOR plus 190 bps | | CHF | 2,000 | | | 2.625% | | Citigroup Global Markets | | | 05/12/15 | | | | (238,227 | ) | | | (78,305 | ) | | | (159,922 | ) |
| 307 | | | 3 month LIBOR plus 333 bps | | JPY | 24,000 | | | 4.500% | | Citigroup Global Markets | | | 06/08/15 | | | | 69,670 | | | | (12,096 | ) | | | 81,766 | |
| 257 | | | 3 month LIBOR plus 313 bps | | JPY | 20,000 | | | 4.500% | | Citigroup Global Markets | | | 06/08/15 | | | | 53,893 | | | | (11,240 | ) | | | 65,133 | |
| 1,246 | | | 3 month LIBOR plus 498 bps | | JPY | 100,000 | | | 4.500% | | Citigroup Global Markets | | | 06/08/15 | | | | 257,750 | | | | 62 | | | | 257,688 | |
| 690 | | | 3 month LIBOR plus 197 bps | | EUR | 500 | | | 3.750% | | Citigroup Global Markets | | | 10/12/15 | | | | (32,501 | ) | | | (16,600 | ) | | | (15,901 | ) |
| 649 | | | 3 month LIBOR plus 225 bps | | EUR | 500 | | | 3.750% | | Citigroup Global Markets | | | 10/12/15 | | | | (72,467 | ) | | | (16,422 | ) | | | (56,045 | ) |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Fund Receives | | | Notional Amount (000) | | | Fund Pays | | Counterparty | | Termination Date | | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | |
| 582 | | | | 3 month LIBOR plus 412 bps | | | EUR | 480 | | | 4.500% | | Citigroup Global Markets | | | 11/30/15 | | | $ | (98,108 | ) | | $ | (5,471 | ) | | $ | (92,637 | ) |
| 263 | | | | 3 month LIBOR | | | EUR | 200 | | | 3 month EURIBOR minus 30.00 bps | | Citigroup Global Markets | | | 12/18/15 | | | | (12,911 | ) | | | — | | | | (12,911 | ) |
| 651 | | | | 3 month LIBOR plus 310 bps | | | EUR | 500 | | | 3.625% | | Citigroup Global Markets | | | 02/01/16 | | | | (47,837 | ) | | | 43 | | | | (47,880 | ) |
| 303 | | | | 3 month LIBOR plus 272 bps | | | EUR | 227 | | | 4.500% | | Citigroup Global Markets | | | 04/05/16 | | | | (22,016 | ) | | | (15,773 | ) | | | (6,243 | ) |
| 651 | | | | 3 month LIBOR plus 273 bps | | | EUR | 500 | | | 4.500% | | Citigroup Global Markets | | | 04/05/16 | | | | (64,712 | ) | | | (22,723 | ) | | | (41,989 | ) |
| 960 | | | | 3 month LIBOR plus 218 bps | | | EUR | 700 | | | 4.500% | | Citigroup Global Markets | | | 04/15/16 | | | | (50,098 | ) | | | — | | | | (50,098 | ) |
| 1,111 | | | | 3 month LIBOR plus 451 bps | | | JPY | 92,000 | | | 3.700% | | Citigroup Global Markets | | | 11/14/16 | | | | 248,417 | | | | 66 | | | | 248,351 | |
| 327 | | | | 3 month LIBOR plus 156 bps | | | CHF | 300 | | | 2.875% | | Citigroup Global Markets | | | 11/23/16 | | | | (29,139 | ) | | | (22,679 | ) | | | (6,460 | ) |
| 325 | | | | 3 month LIBOR plus 158 bps | | | CHF | 300 | | | 2.875% | | Citigroup Global Markets | | | 11/23/16 | | | | (31,197 | ) | | | (27,045 | ) | | | (4,152 | ) |
| 1,605 | | | | 3 month LIBOR plus 432 bps | | | JPY | 125,000 | | | 3.450% | | Citigroup Global Markets | | | 03/24/17 | | | | 462,316 | | | | 38,560 | | | | 423,756 | |
| 122 | | | | 3 month LIBOR plus 208 bps | | | EUR | 100 | | | 4.250% | | Citigroup Global Markets | | | 07/14/17 | | | | (29,747 | ) | | | (11,428 | ) | | | (18,319 | ) |
| 244 | | | | 3 month LIBOR plus 220 bps | | | EUR | 200 | | | 4.250% | | Citigroup Global Markets | | | 07/14/17 | | | | (59,288 | ) | | | (20,832 | ) | | | (38,456 | ) |
| 1,111 | | | | 3 month LIBOR plus 265 bps | | | CHF | 1,000 | | | 2.625% | | Credit Suisse First Boston Corp. | | | 05/12/15 | | | | (48,572 | ) | | | (25,901 | ) | | | (22,671 | ) |
| 567 | | | | 3 month LIBOR plus 510 bps | | | CHF | 500 | | | 4.000% | | Credit Suisse First Boston Corp. | | | 05/20/16 | | | | (3,930 | ) | | | 676 | | | | (4,606 | ) |
| 12,789 | | | | 3 month LIBOR | | | EUR | 9,645 | | | 3 month EURIBOR minus 26.00 bps | | Deutsche Bank AG | | | 01/25/15 | | | | (569,772 | ) | | | — | | | | (569,772 | ) |
| 293 | | | | 3 month LIBOR | | | EUR | 220 | | | 3 month EURIBOR minus 25.75 bps | | Hong Kong & Shanghai Bank | | | 01/17/15 | | | | (11,391 | ) | | | — | | | | (11,391 | ) |
| 107 | | | | 3 month LIBOR | | | CHF | 100 | | | 3 month CHFLIBOR minus 29.00 bps | | Hong Kong & Shanghai Bank | | | 04/24/15 | | | | (6,379 | ) | | | — | | | | (6,379 | ) |
| 461 | | | | 3 month LIBOR | | | EUR | 350 | | | 3 month EURIBOR minus 30.25 bps | | Hong Kong & Shanghai Bank | | | 12/19/15 | | | | (22,391 | ) | | | — | | | | (22,391 | ) |
| 114 | | | | 3 month CHF LIBOR minus 13.30 bps | | | CHF | 100 | | | 3 month LIBOR | | Hong Kong & Shanghai Bank | | | 03/21/16 | | | | 927 | | | | — | | | | 927 | |
| TRY 4,800 | | | | 7.700 | % | | | 2,500 | | | 3 month LIBOR | | Hong Kong & Shanghai Bank | | | 07/19/18 | | | | (225,088 | ) | | | — | | | | (225,088 | ) |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 51 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional Amount (000)# | | | Fund Receives | | | Notional Amount (000) | | | Fund Pays | | Counterparty | | Termination Date | | | Fair Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | |
| TRY 7,729 | | | | 8.820 | % | | | 3,800 | | | 3 month LIBOR | | Hong Kong & Shanghai Bank | | | 09/04/18 | | | $ | (10,422 | ) | | $ | — | | | $ | (10,422 | ) |
| 635 | | | | 3 month LIBOR | | | EUR | 500 | | | 3 month EURIBOR minus 31.25 bps | | JPMorgan Chase | | | 11/15/14 | | | | (56,894 | ) | | | — | | | | (56,894 | ) |
| 147 | | | | 3 month LIBOR plus 398 bps | | | EUR | 120 | | | 4.500% | | JPMorgan Chase | | | 11/30/15 | | | | (23,215 | ) | | | (2,177 | ) | | | (21,038 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | $ | (1,322,398 | ) | | $ | (735,315 | ) | | $ | (587,083 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
# | 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 in active markets for identical securities.
Level 2—other significant observable inputs including, but not limited to, quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates, and amortized cost.
Level 3—significant unobservable inputs for securities valued in accordance with Board approved fair valuation procedures. The following is a summary of the inputs used as of April 30, 2014 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Foreign Bonds | | $ | — | | | $ | 162,245,484 | | | $ | 5,197,044 | |
Asset-Backed Securities | | | | | | | | | | | | |
Collateralized Debt Obligations | | | — | | | | 960,379 | | | | — | |
Collateralized Loan Obligations | | | — | | | | 3,648,940 | | | | 6,615,650 | |
Residential Mortgage-Backed Securities | | | — | | | | 21,064,056 | | | | — | |
Bank Loans | | | — | | | | 2,621,040 | | | | 675,356 | |
Commercial Mortgage-Backed Securities | | | — | | | | 5,314,471 | | | | — | |
Corporate Bonds | | | — | | | | 31,150,752 | | | | 668,300 | |
Municipal Bonds | | | — | | | | 3,980,618 | | | | — | |
U.S. Treasury Obligations | | | — | | | | 13,945,481 | | | | — | |
Preferred Stock | | | 109,040 | | | | — | | | | — | |
Affiliated Money Market Mutual Fund | | | 450,711 | | | | — | | | | — | |
Options Purchased | | | — | | | | 304,582 | | | | — | |
See Notes to Financial Statements.
| | | | | | | | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | |
Other Financial Instruments* | | | | | | | | | | | | |
Futures Contracts | | $ | 252,227 | | | $ | — | | | $ | — | |
Forward Foreign Currency Exchange Contracts | | | — | | | | 358,213 | | | | — | |
Credit Default Swap Agreements | | | — | | | | 3,031,188 | | | | — | |
Interest Rate Swap Agreements | | | — | | | | 611,711 | | | | 56,287 | |
Forward Rate Agreements | | | — | | | | (5,181 | ) | | | — | |
Currency Swap Agreements | | | — | | | | (587,083 | ) | | | — | |
| | | | | | | | | | | | |
Total | | $ | 811,978 | | | $ | 248,644,651 | | | $ | 13,212,637 | |
| | | | | | | | | | | | |
The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Foreign Bonds | | | Collateralized Loan Obligations | | | Bank Loans | | | Corporate Bonds | | | Interest Rate Swaps | | | Forward Rate Agreements | |
Balance as of 10/31/13 | | $ | 5,027,381 | | | $ | — | | | $ | 636,555 | | | $ | 670,317 | | | $ | (1,075 | ) | | $ | 19,543 | |
Realized gain (loss) | | | — | | | | — | | | | — | | | | — | | | | — | ** | | | — | ** |
Change in unrealized appreciation (depreciation)*** | | | 110,108 | | | | — | | | | 34,972 | | | | 23,593 | | | | 57,362 | | | | (19,543 | ) |
Purchases | | | — | | | | 6,615,650 | | | | — | | | | — | | | | — | | | | — | |
Sales | | | — | | | | — | | | | — | | | | (25,610 | ) | | | — | | | | — | |
Accrued discount/premium | | | 59,555 | | | | — | | | | 3,829 | | | | — | | | | — | | | | — | |
Transfers into Level 3 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Transfers out of Level 3 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of 04/30/14 | | $ | 5,197,044 | | | $ | 6,615,650 | | | $ | 675,356 | | | $ | 668,300 | | | $ | 56,287 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
* | Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are recorded at the unrealized appreciation/depreciation on the instrument. |
** | The realized loss incurred during the period for other financial instruments was $(96,273). |
*** | Of which, $226,035 was included in Net Assets relating to securities held at the reporting period end. |
Included in the table above, under Level 3, are securities that were fair valued using pricing methodologies approved by the Board of Directors, which contain unobservable inputs. Such methodologies include, but are not limited to, using prices provided by a single broker/dealer, the cost of the investment, and prices of any recent transactions or bids/offers for such securities or any comparable securities.
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 53 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
The valuation techniques and significant amounts of unobservable inputs used in the fair value measurement of the Fund’s Level 3 securities are outlined in the table below.
| | | | | | | | | | |
| | Fair Value April 30, 2014 | | | Valuation Methodologies | | Unobservable Input(s) | | Range (Weighted Average) |
Foreign Bonds | | $ | 5,197,044 | | | Market Approach | | Broker quote | | $0.96 - $68.00 ($25.96) |
Collateralized Loan Obligations | | | 6,615,650 | | | Market Approach | | Broker quote | | $95.70 - $99.00 ($96.60) |
Bank Loan | | | 675,356 | | | Market Approach | | Broker quote | | $168.84 |
Corporate Bonds | | | 668,300 | | | Market Approach | | Broker quote | | $107.75 - $117.75 ($112.33) |
Interest Rate Swap | | | 56,287 | | | Model Pricing | | Volatility curves | | $0.32 |
| | | | | | | | | | |
Total | | $ | 13,212,637 | | | | | | | |
| | | | | | | | | | |
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2014 was as follows:
| | | | |
Sovereign Bonds | | | 58.4 | % |
Residential Mortgage-Backed Securities | | | 8.3 | |
Banking | | | 5.5 | |
U.S. Treasury Obligations | | | 5.5 | |
Collateralized Loan Obligations | | | 4.0 | |
Foreign Agencies | | | 2.3 | |
Commercial Mortgage-Backed Securities | | | 2.1 | |
Municipal Bonds | | | 1.5 | |
Cable | | | 1.3 | |
Technology | | | 1.3 | |
Metals | | | 1.1 | |
Media & Entertainment | | | 0.9 | |
Electric | | | 0.8 | |
Capital Goods | | | 0.7 | |
Telecommunications | | | 0.7 | |
Insurance | | | 0.6 | |
Non-Captive Finance | | | 0.6 | |
Brokerage | | | 0.5 | |
Foods | | | 0.5 | |
Building Materials & Construction | | | 0.4 | |
Chemicals | | | 0.4 | |
Collateralized Debt Obligations | | | 0.4 | |
Energy—Integrated | | | 0.4 | % |
Healthcare & Pharmaceutical | | | 0.4 | |
Paper | | | 0.4 | |
Airlines | | | 0.3 | |
Consumer | | | 0.3 | |
Pipelines & Other | | | 0.3 | |
Retailers | | | 0.3 | |
Aerospace & Defense | | | 0.2 | |
Affiliated Money Market Mutual Fund | | | 0.2 | |
Financials | | | 0.2 | |
Gaming | | | 0.2 | |
Energy—Other | | | 0.1 | |
Options Purchased | | | 0.1 | |
Packaging | | | 0.1 | |
Railroads | | | 0.1 | |
Real Estate Investment Trust | | | 0.1 | |
Tobacco | | | 0.1 | |
| | | | |
| | | 101.6 | |
Liabilities in excess of other assets | | | (1.6 | ) |
| | | | |
| | | 100.0 | % |
| | | | |
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.
See Notes to Financial Statements.
Fair values of derivative instruments as of April 30, 2014 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Asset Derivatives | | | Liability Derivatives | |
| Balance Sheet Location | | Fair Value | | | Balance Sheet Location | | Fair Value | |
Interest rate contracts | | Due from broker— variation margin | | $ | 905,709 | * | | Due from broker— variation margin | | $ | 747,319 | * |
Interest rate contracts | | Premiums paid for swap agreements | | | 39,407 | | | Premiums received for swap agreements | | | 774,722 | |
Interest rate contracts | | Unrealized appreciation on over-the-counter swap agreements | | | 4,603,598 | | | Unrealized depreciation on over-the-counter swap agreements | | | 4,428,846 | |
Interest rate contracts | | — | | | — | | | Unrealized depreciation on forward rate agreements | | | 5,181 | |
Interest rate contracts | | Unaffiliated investments | | | 274,324 | | | — | | | — | |
Foreign exchange contracts | | Unrealized appreciation on foreign currency exchange contracts | | | 1,364,708 | | | Unrealized depreciation on foreign currency exchange contracts | | | 1,006,495 | |
Foreign exchange contracts | | Unaffiliated investments | | | 30,258 | | | — | | | — | |
Credit contracts | | Premiums paid for swap agreements | | | 66,518 | | | Premiums received for swap agreements | | | 3,936,814 | |
Credit contracts | | — | | | — | | | Due to broker—variation margin | | | 64,702 | * |
Credit contracts | | Unrealized appreciation on over-the-counter swap agreements | | | 3,193,033 | | | Unrealized depreciation on over-the-counter swap agreements | | | 97,143 | |
| | | | | | | | | | | | |
Total | | | | $ | 10,477,555 | | | | | $ | 11,061,222 | |
| | | | | | | | | | | | |
* | Includes cumulative appreciation/depreciation as reported in schedule of open futures and exchange-traded swap contracts. 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. | | | 55 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2014 are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Options Purchased* | | | Options Written | | | Futures | | | Forward Rate Agreements | | | Forward Currency Contracts** | | | Swaps | | | Total | |
Credit contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 417,535 | | | $ | 417,535 | |
Foreign exchange contracts | | | — | | | | — | | | | — | | | | — | | | | (1,529,916 | ) | | | — | | | | (1,529,916 | ) |
Interest rate contracts | | | (54,741 | ) | | | (201 | ) | | | 577,193 | | | | 16,800 | | | | — | | | | 298,985 | | | | 838,036 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (54,741 | ) | | $ | (201 | ) | | $ | 577,193 | | | $ | 16,800 | | | $ | (1,529,916 | ) | | $ | 716,520 | | | $ | (274,345 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
* | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
** | Included in net realized gain (loss) on foreign currency transactions in the Statement of Operations. |
| | | | | | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Options Purchased* | | | Futures | | | Forward Rate Agreements | | | Swaps | | | Forward Currency Contracts** | | | Total | |
Interest rate contracts | | $ | 37,703 | | | $ | 137,830 | | | $ | (24,724 | ) | | $ | (857,770 | ) | | $ | — | | | $ | (706,961 | ) |
Foreign exchange contracts | | | (181,867 | ) | | | — | | | | — | | | | — | | | | 363,521 | | | | 181,654 | |
Credit contracts | | | — | | | | — | | | | — | | | | 170,905 | | | | — | | | | 170,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (144,164 | ) | | $ | 137,830 | | | $ | (24,724 | ) | | $ | (686,865 | ) | | $ | 363,521 | | | $ | (354,402 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
* | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
** | Included in net change in unrealized appreciation (depreciation) on foreign currencies in the Statement of Operations. |
See Notes to Financial Statements.
For the six months ended April 30, 2014, 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) | |
$ | 166,657 | | | $ | 40,151,285 | | | $ | 30,933,885 | | | $ | 244,795,985 | | | $ | 164,974,614 | |
| | | | | | | | | | | | | | | | | | |
Forward Rate Agreements (Notional Amount in USD (000)) | | | Interest Rate Swaps (Notional Amount in USD (000)) | | | Credit Default Swaps as Buyer (Notional Amount in USD (000)) | | | Credit Default Swaps as Writer (Notional Amount in USD (000)) | | | Currency Swaps (Notional Amount in USD (000)) | |
$ | 145,320 | | | $ | 461,414 | | | $ | 16,413 | | | $ | 54,267 | | | $ | 45,814 | |
Offsetting of over-the-counter (OTC) derivative assets and liabilities:
The Fund invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives, where the legal right to set-off exists, is presented in the summary below.
| | | | | | | | | | | | | | | | |
Counterparty | | Gross amounts of recognized assets(1) | | | Gross amounts available for offset | | | Collateral Received(3) | | | Net Amount | |
Bank of America | | $ | 159,240 | | | $ | (159,240 | ) | | $ | — | | | $ | — | |
Bank of Nova Scotia | | | 7,034 | | | | (7,034 | ) | | | — | | | | — | |
Barclays Capital Group | | | 1,425,718 | | | | (1,425,718 | ) | | | — | | | | — | |
BNP Paribas | | | 123,921 | | | | (84,226 | ) | | | — | | | | 39,695 | |
Citigroup Global Markets | | | 3,095,212 | | | | (2,717,909 | ) | | | (976,522 | ) | | | — | |
Credit Suisse First Boston Corp. | | | 539,830 | | | | (281,172 | ) | | | — | | | | 258,658 | |
Deutsche Bank AG | | | 801,860 | | | | (801,860 | ) | | | — | | | | — | |
Goldman Sachs & Co. | | | 224,719 | | | | (224,719 | ) | | | — | | | | — | |
Hong Kong & Shanghai Bank | | | 1,630,450 | | | | (1,630,450 | ) | | | — | | | | — | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 57 | |
Portfolio of Investments
as of April 30, 2014 (Unaudited) continued
| | | | | | | | | | | | | | | | |
Counterparty | | Gross amounts of recognized assets(1) | | | Gross amounts available for offset | | | Collateral Received(3) | | | Net Amount | |
JPMorgan Chase | | $ | 399,537 | | | $ | (399,537 | ) | | $ | — | | | $ | — | |
Morgan Stanley | | | 120,390 | | | | (120,390 | ) | | | — | | | | — | |
Royal Bank of Scotland Group PLC | | | 73,497 | | | | — | | | | — | | | | 73,497 | |
Toronto Dominion | | | 73,441 | | | | (9,948 | ) | | | — | | | | 63,493 | |
UBS AG | | | 896,997 | | | | (824,339 | ) | | | (230,291 | ) | | | — | |
| | | | | | | | | | | | | | | | |
| | $ | 9,571,846 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
Counterparty | | Gross amounts of recognized liabilities(2) | | | Gross amounts available for offset | | | Collateral Pledged(3) | | | Net Amount | |
Bank of America | | $ | (290,555 | ) | | $ | 159,240 | | | $ | — | | | $ | (131,315 | ) |
Bank of Nova Scotia | | | (98,710 | ) | | | 7,034 | | | | 50,722 | | | | (40,954 | ) |
Barclays Capital Group | | | (1,705,233 | ) | | | 1,425,718 | | | | 1,741,972 | | | | — | |
BNP Paribas | | | (84,226 | ) | | | 84,226 | | | | — | | | | — | |
Citigroup Global Markets | | | (2,717,909 | ) | | | 2,717,909 | | | | — | | | | — | |
Credit Suisse First Boston Corp. | | | (281,172 | ) | | | 281,172 | | | | — | | | | — | |
Deutsche Bank AG | | | (1,339,743 | ) | | | 801,860 | | | | 259,996 | | | | (277,887 | ) |
Goldman Sachs & Co. | | | (271,780 | ) | | | 224,719 | | | | — | | | | (47,061 | ) |
Hong Kong & Shanghai Bank | | | (1,992,569 | ) | | | 1,630,450 | | | | 708,143 | | | | — | |
JPMorgan Chase | | | (437,198 | ) | | | 399,537 | | | | — | | | | (37,661 | ) |
Morgan Stanley | | | (195,819 | ) | | | 120,390 | | | | 217,090 | | | | — | |
Royal Bank of Scotland Group PLC | | | — | | | | — | | | | — | | | | — | |
Toronto Dominion | | | (9,948 | ) | | | 9,948 | | | | — | | | | — | |
UBS AG | | | (824,339 | ) | | | 824,339 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | $ | (10,249,201 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
(1) | Includes unrealized appreciation on swaps and forwards, premiums paid on swap agreements and market value of purchased options. |
(2) | Includes unrealized depreciation on swaps and forwards, premiums received on swap agreements and market value of written options. |
(3) | Amounts shown reflect actual collateral received or pledged by the Fund. Such amounts are applied up to 100% of the Fund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
PRUDENTIAL INVESTMENTS»MUTUAL FUNDS
FINANCIAL STATEMENTS
SEMIANNUAL REPORT · APRIL 30, 2014
Prudential Global Total Return Fund, Inc.
Statement of Assets and Liabilities
as of April 30, 2014 (Unaudited)
| | | | |
Assets | | | | |
Investments at value: | | | | |
Unaffiliated Investments (cost $242,785,249) | | $ | 258,501,193 | |
Affiliated Investments (cost $450,711) | | | 450,711 | |
Cash | | | 10,989 | |
Foreign currency, at value (cost $573,132) | | | 578,547 | |
Receivable for investments sold | | | 8,289,368 | |
Unrealized appreciation on over-the-counter swap agreements | | | 7,796,631 | |
Dividends and interest receivable | | | 3,562,557 | |
Unrealized appreciation on forward foreign currency exchange contracts | | | 1,364,708 | |
Receivable for Fund shares sold | | | 1,216,560 | |
Premium paid for swap agreements | | | 105,925 | |
Tax reclaim receivable | | | 37,891 | |
Due from broker—variation margin | | | 35,740 | |
Prepaid expenses | | | 1,125 | |
| | | | |
Total assets | | | 281,951,945 | |
| | | | |
| |
Liabilities | | | | |
Payable for investments purchased | | | 14,939,789 | |
Premium received for swap agreements | | | 4,711,536 | |
Unrealized depreciation on over-the-counter swap agreements | | | 4,525,989 | |
Payable for Fund shares reacquired | | | 1,127,099 | |
Unrealized depreciation on forward foreign currency exchange contracts | | | 1,006,495 | |
Accrued expenses | | | 259,454 | |
Dividends payable | | | 200,266 | |
Management fee payable | | | 135,265 | |
Distribution fee payable | | | 61,517 | |
Affiliated transfer agent fee payable | | | 15,643 | |
Unrealized depreciation on forward rate agreements | | | 5,181 | |
| | | | |
Total liabilities | | | 26,988,234 | |
| | | | |
| |
Net Assets | | $ | 254,963,711 | |
| | | | |
| | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 362,389 | |
Paid-in capital in excess of par | | | 250,073,636 | |
| | | | |
| | | 250,436,025 | |
Distributions in excess of net investment income | | | (9,480,651 | ) |
Accumulated net realized loss on investment and foreign currency transactions | | | (5,397,433 | ) |
Net unrealized appreciation on investments and foreign currencies | | | 19,405,770 | |
| | | | |
Net assets, April 30, 2014 | | $ | 254,963,711 | |
| | | | |
See Notes to Financial Statements.
| | | | |
Class A | | | | |
Net asset value and redemption price per share ($156,199,696 ÷ 22,217,505 shares of common stock issued and outstanding) | | $ | 7.03 | |
Maximum sales charge (4.50% of offering price) | | | 0.33 | |
| | | | |
Maximum offering price to public | | $ | 7.36 | |
| | | | |
| |
Class B | | | | |
Net asset value, offering price and redemption price per share ($6,821,467 ÷ 970,244 shares of common stock issued and outstanding) | | $ | 7.03 | |
| | | | |
| |
Class C | | | | |
Net asset value, offering price and redemption price per share ($29,114,316 ÷ 4,148,643 shares of common stock issued and outstanding) | | $ | 7.02 | |
| | | | |
| |
Class Q | | | | |
Net asset value, offering price and redemption price per share ($256,129 ÷ 35,980 shares of common stock issued and outstanding) | | $ | 7.12 | |
| | | | |
| |
Class Z | | | | |
Net asset value, offering price and redemption price per share ($62,572,103 ÷ 8,866,501 shares of common stock issued and outstanding) | | $ | 7.06 | |
| | | | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 61 | |
Statement of Operations
Six Months Ended April 30, 2014 (Unaudited)
| | | | |
Net Investment Income | | | | |
Income | | | | |
Interest income (net of foreign withholding taxes of $747) | | $ | 5,050,771 | |
Unaffiliated dividend income | | | 3,937 | |
Affiliated dividend income | | | 2,827 | |
| | | | |
Total income | | | 5,057,535 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 793,022 | |
Distribution fee—Class A | | | 230,647 | |
Distribution fee—Class B | | | 33,456 | |
Distribution fee—Class C | | | 144,520 | |
Transfer agent’s fees and expenses (including affiliated expense of $19,700) | | | 181,000 | |
Custodian’s fees and expenses | | | 155,000 | |
Registration fees | | | 43,000 | |
Shareholders’ reports | | | 41,000 | |
Audit fee | | | 30,000 | |
Legal fees and expenses | | | 12,000 | |
Directors’ fees | | | 9,000 | |
Insurance | | | 2,000 | |
Loan interest expense | | | 14 | |
Miscellaneous | | | 10,096 | |
| | | | |
Total expenses | | | 1,684,755 | |
Less: Distribution fee waiver—Class A | | | (38,441 | ) |
| | | | |
Net expenses | | | 1,646,314 | |
| | | | |
Net investment income | | | 3,411,221 | |
| | | | |
| |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
Net realized gain (loss) on: | | | | |
Investment transactions | | | 2,296,752 | |
Futures transactions | | | 577,193 | |
Options written transactions | | | (201 | ) |
Forward rate agreement transactions | | | 16,800 | |
Swap agreements transactions | | | 716,520 | |
Foreign currency transactions | | | (1,400,110 | ) |
| | | | |
| | | 2,206,954 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 3,633,778 | |
Futures contracts | | | 137,830 | |
Swap agreements | | | (686,865 | ) |
Foreign currencies | | | 326,845 | |
Forward rate agreements | | | (24,724 | ) |
| | | | |
| | | 3,386,864 | |
| | | | |
Net gain on investment and foreign currency transactions | | | 5,593,818 | |
| | | | |
Net Increase In Net Assets Resulting From Operations | | $ | 9,005,039 | |
| | | | |
See Notes to Financial Statements.
Statement of Changes in Net Assets
(Unaudited)
| | | | | | | | |
| | Six Months Ended April 30, 2014 | | | Year Ended October 31, 2013 | |
Increase (Decrease) in Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income | | $ | 3,411,221 | | | $ | 8,952,802 | |
Net realized gain (loss) on investment and foreign currency transactions | | | 2,206,954 | | | | (8,304,888 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | 3,386,864 | | | | (3,174,519 | ) |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 9,005,039 | | | | (2,526,605 | ) |
| | | | | | | | |
| | |
Dividends and Distributions (Note 1) | | | | | | | | |
Dividends from net investment income | | | | | | | | |
Class A | | | (3,276,397 | ) | | | (4,568,804 | ) |
Class B | | | (117,391 | ) | | | (151,647 | ) |
Class C | | | (508,786 | ) | | | (748,588 | ) |
Class Q | | | (2,972 | ) | | | (354 | ) |
Class Z | | | (1,224,721 | ) | | | (2,160,989 | ) |
| | | | | | | | |
| | | (5,130,267 | ) | | | (7,630,382 | ) |
| | | | | | | | |
Tax return of capital distributions | | | | | | | | |
Class A | | | — | | | | (2,917,322 | ) |
Class B | | | — | | | | (96,831 | ) |
Class C | | | — | | | | (477,997 | ) |
Class Q | | | — | | | | (226 | ) |
Class Z | | | — | | | | (1,379,858 | ) |
| | | | | | | | |
| | | — | | | | (4,872,234 | ) |
| | | | | | | | |
| | |
Fund share transactions (Net of share conversions) (Note 6) | | | | | | | | |
Net proceeds from shares sold | | | 40,576,080 | | | | 123,867,983 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 3,946,288 | | | | 9,379,824 | |
Cost of shares reacquired | | | (49,919,073 | ) | | | (162,525,904 | ) |
| | | | | | | | |
Net decrease in net assets from Fund share transactions | | | (5,396,705 | ) | | | (29,278,097 | ) |
| | | | | | | | |
Total decrease | | | (1,521,933 | ) | | | (44,307,318 | ) |
| | |
Net Assets: | | | | | | | | |
Beginning of period | | | 256,485,644 | | | | 300,792,962 | |
| | | | | | | | |
End of period | | $ | 254,963,711 | | | $ | 256,485,644 | |
| | | | | | | | |
See Notes to Financial Statements.
| | | | |
Prudential Global Total Return Fund, Inc. | | | 63 | |
Notes to Financial Statements
(Unaudited)
Prudential Global Total Return Fund, Inc. (the “Fund”) is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Fund’s investment objective is to seek total return, made up of current income and capital appreciation. The Fund is a non-diversified fund.
Note 1. Accounting Policies
The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets that are fair valued at the close of each day the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to Prudential Investments LLC (“PI” or “Manager”). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.
Common stocks, exchange-traded funds and derivative instruments that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy except for exchange-traded and cleared swaps which are classified as Level 2 in the fair value hierarchy, as the prices marked at the official settle are not public.
In the event there is no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and asked prices, or at the last bid price in absence of an asked price. These securities are classified as Level 2 in the fair value hierarchy, as the inputs are observable and considered to be significant to the valuation.
Common stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy, as the adjustment factors are observable and considered to be significant to the valuation. Securities not valued using such model prices are valued in accordance with exchange-traded common stocks discussed above.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the over-the-counter market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices after evaluating observable inputs including, but not limited to yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations, and reported trades. Securities valued using such vendor prices are classified as Level 2 in the fair value hierarchy.
Over-the-counter derivative instruments are generally valued using pricing vendor services, which derive the valuation based on inputs such as underlying asset prices, indices, spreads, interest rates, and exchange rates. These instruments are categorized as Level 2 in the fair value hierarchy.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that significant unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition
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Notes to Financial Statements
(Unaudited) continued
and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment 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.
Restricted and Illiquid Securities: Subject to guidelines adopted by the Board, the Fund may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities are valued pursuant to the valuation procedures noted above. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the investment. Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Fund’s Subadviser under the guidelines adopted by the Directors of the Fund. However, the liquidity of the Fund’s investments in Rule 144A securities could be impaired if trading does not develop or declines.
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 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, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains 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 debt securities issuers (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 futures transactions.
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(Unaudited) continued
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates 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. With exchange-traded futures contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearing house acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
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.
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
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 transactions. 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 options contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.
Forward Rate Agreements: Forward rate agreements represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount on a fixed future date. The Fund entered into forward rate agreements to gain yield exposure based on anticipated market conditions at the specified termination date of the agreement.
Swap Agreements: The Fund entered into credit default, interest rate, total return and other forms of swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the over-the-counter market and may be executed either directly with counterparty (“OTC-traded”) or through a central clearing facility, such as a registered commodities exchange (“Exchange-traded”). 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. Exchange-traded swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. 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.
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
| | | | |
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Notes to Financial Statements
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the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity (typically corporate issues or sovereign issues of an emerging country) on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.
The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund entered into credit default swaps to provide a measure of protection against issuer default. The Fund sold protection using credit default swaps to take an active short position with respect to the likelihood of a particular issuer’s default. The Fund’s maximum risk of loss from counterparty credit risk for purchased credit default swaps is the inability of the counterparty to honor the contract up to the notional value due to a credit event.
As a seller of protection on credit default swap agreements, the Fund generally receives an agreed upon payment from the buyer of protection throughout the term of the swap, provided no credit event occurs. As the seller, the Fund effectively increases its investment risk because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.
The maximum amount of the payment that the Fund, as a seller of protection, could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit event. This potential amount will be partially offset by any recovery values of the respective referenced obligations, or net amounts received from the settlement of buy protection credit default swap agreements which the Fund entered into for the same referenced entity or index. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues of an emerging country as of period end are disclosed in the footnotes to the Portfolio of Investments, if applicable. These spreads serve as indicators of the current status of the payment/performance risk and represent the likelihood of default risk for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. For credit default swap agreements on asset-backed
securities and credit indices, the quoted market prices and resulting values serve as indicators of the current status of the payment/performance risk. Wider credit spreads and increased market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
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. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives.
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.
Inflation Swaps: The Fund may enter into inflation swap agreements to provide a measure of protection against the effect of inflation on yield. Inflation swap agreements involve two parties exchanging cash flows at a later date at rates related to inflation indices.
Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. 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. The right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there were no instances where the right of set-off existed and management has not elected to offset.
The Fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern over-the-counter derivative and foreign exchange contracts entered into from time to
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Notes to Financial Statements
(Unaudited) continued
time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Portfolio of Investments. Collateral pledged by the Fund is segregated by the Fund’s custodian and identified in the Portfolio of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the Fund and the applicable counterparty. Collateral requirements are determined based on the Fund’s net position with each counterparty. Termination events applicable to the Fund may occur upon a decline in the Fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Fund’s counterparties to elect early termination could impact the Fund’s future derivative activity.
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such 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, 2014, the Fund has not met conditions under such agreements which give the counterparty the right to call for an early termination.
Forward currency contracts, forward rate agreements, written options, 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. Such risks may be mitigated by engaging in master netting arrangements.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on an accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
Net investment income or loss (other than distribution fees which are charged directly to the respective class and transfer agency fees specific to Class Q shares which are charged to that share class) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund declares dividends from net investment income daily and payment is made monthly. Distributions from 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.
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
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(Unaudited) continued
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, 2014.
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 Fund’s average daily net assets. For the six months ended April 30, 2014, the Fund did not exceed the 1.10% expense limit.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class Q and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “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 Q and 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 assets of the Class A, B, and C shares, respectively. Through February 28, 2015, PIMS has contractually agreed to limit such fees to .25% of the average daily net assets of the Class A shares.
PIMS has advised the Fund that it has received $67,186 in front-end sales charges resulting from sales of Class A shares during the six months ended April 30, 2014. 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, 2014, it received $39, $8,718 and $4,971 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 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, other than short-term investments and U.S. Government securities, for six months ended April 30, 2014, were $56,438,502 and $63,078,766, respectively.
Transactions in options written during the six months ended April 30, 2014, were as follows:
| | | | | | | | |
| | Notional Amount | | | Premiums Received | |
Options outstanding at October 31, 2013 | | $ | — | | | $ | — | |
Options written | | | 44 | | | | 4,025 | |
Options terminated in closing purchase transactions | | | (44 | ) | | | (4,025 | ) |
Options expired | | | — | | | | — | |
| | | | | | | | |
Options outstanding at April 30, 2014 | | $ | — | | | $ | — | |
| | | | | | | | |
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Notes to Financial Statements
(Unaudited) continued
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, 2014 were as follows:
| | | | |
Tax Basis | | $ | 253,079,347 | |
| | | | |
Appreciation | | | 10,441,644 | |
Depreciation | | | (4,569,087 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 5,872,557 | |
| | | | |
The book basis may differ from tax basis due to certain tax related adjustments.
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), the Fund is permitted to carryforward capital losses incurred in the fiscal year ended October 31, 2012 and October 31, 2013 (“post-enactment losses”) for an unlimited period. Post-enactment losses are required to be utilized before the utilization of losses incurred prior to the effective date of the Act. As a result of this ordering rule, capital loss carryforwards related to taxable years ending before October 31, 2012 (“pre-enactment losses”) may have an increased likelihood to expire unused. The Fund utilized approximately $2,042,000 of its pre-enactment losses to offset net taxable gains realized in the fiscal year ended October 31, 2013. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses. As of October 31, 2013, the pre and post-enactment losses were approximately:
| | | | |
Post-Enactment Losses: | | $ | 0 | |
| | | | |
Pre-Enactment Losses: | | | | |
Expiring 2016 | | $ | 2,537,000 | |
Expiring 2017 | | | 2,476,000 | |
| | | | |
| | $ | 5,013,000 | |
| | | | |
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, Class Q 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%, although the CDSC is waived for purchases by certain retirement and/or benefit plans. 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 B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class C shares are sold with a CDSC of 1% on shares redeemed within the first 12 months after purchase. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Q and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock.
There are 2 billion authorized shares of common stock at $.01 par value per share, designated Class A, Class B, Class C, Class Q and Class Z, each of which consists of 500 million, 200 million, 400 million, 400 million and 500 million authorized shares, respectively.
As of April 30, 2014, Prudential Financial, Inc. through its affiliates owned 1,582 Class Q shares of the Fund.
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Notes to Financial Statements
(Unaudited) continued
Transactions in shares of common stock were as follows:
| | | | | | | | |
Class A | | Shares | | | Amount | |
Six months ended April 30, 2014: | | | | | | | | |
Shares sold | | | 2,430,028 | | | $ | 16,709,872 | |
Shares issued in reinvestment of dividends and distributions | | | 381,800 | | | | 2,622,126 | |
Shares reacquired | | | (3,847,652 | ) | | | (26,446,601 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (1,035,824 | ) | | | (7,114,603 | ) |
Shares issued upon conversion from Class B and Class Z | | | 18,378 | | | | 126,089 | |
Shares reacquired upon conversion into Class Z | | | (54,978 | ) | | | (374,279 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (1,072,424 | ) | | $ | (7,362,793 | ) |
| | | | | | | | |
Year ended October 31, 2013: | | | | | | | | |
Shares sold | | | 7,776,808 | | | $ | 55,202,078 | |
Shares issued in reinvestment of dividends and distributions | | | 850,609 | | | | 5,921,669 | |
Shares reacquired | | | (9,817,174 | ) | | | (68,048,037 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (1,189,757 | ) | | | (6,924,290 | ) |
Shares issued upon conversion from Class B and Class Z | | | 98,172 | | | | 685,544 | |
Shares reacquired upon conversion into Class Z | | | (178,014 | ) | | | (1,255,113 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (1,269,599 | ) | | $ | (7,493,859 | ) |
| | | | | | | | |
Class B | | | | | | |
Six months ended April 30, 2014: | | | | | | | | |
Shares sold | | | 43,542 | | | $ | 299,471 | |
Shares issued in reinvestment of dividends and distributions | | | 11,411 | | | | 78,366 | |
Shares reacquired | | | (95,071 | ) | | | (650,537 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (40,118 | ) | | | (272,700 | ) |
Shares reacquired upon conversion into Class A | | | (13,646 | ) | | | (93,829 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (53,764 | ) | | $ | (366,529 | ) |
| | | | | | | | |
Year ended October 31, 2013: | | | | | | | | |
Shares sold | | | 361,917 | | | $ | 2,568,479 | |
Shares issued in reinvestment of dividends and distributions | | | 23,697 | | | | 164,818 | |
Shares reacquired | | | (246,478 | ) | | | (1,709,180 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 139,136 | | | | 1,024,117 | |
Shares reacquired upon conversion into Class A | | | (51,536 | ) | | | (360,766 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 87,600 | | | $ | 663,351 | |
| | | | | | | | |
| | | | | | | | |
Class C | | Shares | | | Amount | |
Six months ended April 30, 2014: | | | | | | | | |
Shares sold | | | 546,576 | | | $ | 3,753,016 | |
Shares issued in reinvestment of dividends and distributions | | | 56,711 | | | | 388,577 | |
Shares reacquired | | | (944,539 | ) | | | (6,447,696 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (341,252 | ) | | | (2,306,103 | ) |
Shares reacquired upon conversion into Class Z | | | (61,314 | ) | | | (417,128 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (402,566 | ) | | $ | (2,723,231 | ) |
| | | | | | | | |
Year ended October 31, 2013: | | | | | | | | |
Shares sold | | | 2,066,356 | | | $ | 14,676,434 | |
Shares issued in reinvestment of dividends and distributions | | | 130,054 | | | | 903,558 | |
Shares reacquired | | | (2,239,727 | ) | | | (15,455,462 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (43,317 | ) | | | 124,530 | |
Shares reacquired upon conversion into Class Z | | | (131,719 | ) | | | (916,464 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (175,036 | ) | | $ | (791,934 | ) |
| | | | | | | | |
Class Q | | | | | | |
Six months ended April 30, 2014: | | | | | | | | |
Shares sold | | | 154,441 | | | $ | 1,072,981 | |
Shares issued in reinvestment of dividends and distributions | | | 426 | | | | 2,972 | |
Shares reacquired | | | (127,751 | ) | | | (887,444 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 27,116 | | | $ | 188,509 | |
| | | | | | | | |
Year ended October 31, 2013: | | | | | | | | |
Shares sold | | | 7,304 | | | $ | 50,103 | |
Shares issued in reinvestment of dividends and distributions | | | 83 | | | | 580 | |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 7,387 | | | $ | 50,683 | |
| | | | | | | | |
Class Z | | | | | | |
Six months ended April 30, 2014: | | | | | | | | |
Shares sold | | | 2,703,381 | | | $ | 18,740,740 | |
Shares issued in reinvestment of dividends and distributions | | | 123,911 | | | | 854,247 | |
Shares reacquired | | | (2,254,046 | ) | | | (15,486,795 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 573,246 | | | | 4,108,192 | |
Shares issued upon conversion from Class A and Class C | | | 115,752 | | | | 791,407 | |
Shares reacquired upon conversion into Class A | | | (4,710 | ) | | | (32,260 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 684,288 | | | $ | 4,867,339 | |
| | | | | | | | |
Year ended October 31, 2013: | | | | | | | | |
Shares sold | | | 7,203,534 | | | $ | 51,370,889 | |
Shares issued in reinvestment of dividends and distributions | | | 340,851 | | | | 2,389,199 | |
Shares reacquired | | | (11,117,481 | ) | | | (77,313,225 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (3,573,096 | ) | | | (23,553,137 | ) |
Shares issued upon conversion from Class A and Class C | | | 308,419 | | | | 2,171,577 | |
Shares reacquired upon conversion into Class A | | | (46,453 | ) | | | (324,778 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (3,311,130 | ) | | $ | (21,706,338 | ) |
| | | | | | | | |
| | | | |
Prudential Global Total Return Fund, Inc. | | | 79 | |
Notes to Financial Statements
(Unaudited) continued
Note 7. Borrowings
The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period November 5, 2013 through November 4, 2014. The Funds pay an annualized commitment fee of 0.08% on the unused portion of the SCA. Prior to November 5, 2013, the Funds had another SCA with substantially similar terms. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.
The Fund utilized the SCA during the six months ended April 30, 2014. The average daily balance for the 2 days that the Fund had loans outstanding during the period was approximately $183,500, borrowed at a weighted average interest rate of 1.41%. At April 30, 2014, the Fund did not have an outstanding loan amount.
Financial Highlights
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | |
| | Six Months Ended April 30, | | | | | Year Ended October 31, | |
| | 2014 | | | | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $6.92 | | | | | | $7.21 | | | | $6.99 | | | | $7.42 | | | | $7.20 | | | | $5.76 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .10 | | | | | | .21 | | | | .22 | | | | .23 | | | | .27 | | | | .30 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .15 | | | | | | (.21 | ) | | | .31 | | | | .05 | | | | .66 | | | | 1.46 | |
Total from investment operations | | | .25 | | | | | | - | (d) | | | .53 | | | | .28 | | | | .93 | | | | 1.76 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income* | | | (.14 | ) | | | | | (.18 | ) | | | (.28 | ) | | | (.71 | ) | | | (.71 | ) | | | (.32 | ) |
Tax return of capital distributions | | | - | | | | | | (.11 | ) | | | (.03 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (.14 | ) | | | | | (.29 | ) | | | (.31 | ) | | | (.71 | ) | | | (.71 | ) | | | (.32 | ) |
Net asset value, end of period | | | $7.03 | | | | | | $6.92 | | | | $7.21 | | | | $6.99 | | | | $7.42 | | | | $7.20 | |
Total Return(b): | | | 3.75% | | | | | | .07% | | | | 7.86% | | | | 4.60% | | | | 14.25% | | | | 31.42% | |
| |
Ratios/Supplemental Data: | |
Net assets, end of period (000) | | | $156,200 | | | | | | $161,099 | | | | $176,970 | | | | $154,056 | | | | $123,507 | | | | $114,554 | |
Average net assets (000) | | | $155,035 | | | | | | $180,342 | | | | $162,268 | | | | $125,292 | | | | $112,110 | | | | $103,462 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.30% | (e) | | | | | 1.23% | | | | 1.31% | | | | 1.35% | | | | 1.35% | | | | 1.35% | |
Expenses before waivers and/or expense reimbursement | | | 1.35% | (e) | | | | | 1.28% | | | | 1.36% | | | | 1.44% | | | | 1.47% | | | | 1.56% | |
Net investment income | | | 2.85% | (e) | | | | | 2.99% | | | | 3.17% | | | | 3.28% | | | | 3.97% | | | | 4.78% | |
Portfolio turnover rate | | | 33% | (f) | | | | | 79% | | | | 97% | | | | 203% | | | | 117% | | | | 164% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolios in which the Fund invests.
(d) Less than $.005 per share.
(e) Annualized.
(f) Not annualized.
* 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. | | | 81 | |
Financial Highlights
(Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended April 30, | | | | | Year Ended October 31, | |
| | 2014 | | | | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $6.92 | | | | | | $7.21 | | | | $6.99 | | | | $7.41 | | | | $7.19 | | | | $5.76 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .07 | | | | | | .16 | | | | .17 | | | | .17 | | | | .22 | | | | .25 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .16 | | | | | | (.21 | ) | | | .30 | | | | .06 | | | | .66 | | | | 1.45 | |
Total from investment operations | | | .23 | | | | | | (.05 | ) | | | .47 | | | | .23 | | | | .88 | | | | 1.70 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income* | | | (.12 | ) | | | | | (.13 | ) | | | (.22 | ) | | | (.65 | ) | | | (.66 | ) | | | (.27 | ) |
Tax return of capital distributions | | | - | | | | | | (.11 | ) | | | (.03 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (.12 | ) | | | | | (.24 | ) | | | (.25 | ) | | | (.65 | ) | | | (.66 | ) | | | (.27 | ) |
Net asset value, end of period | | | $7.03 | | | | | | $6.92 | | | | $7.21 | | | | $6.99 | | | | $7.41 | | | | $7.19 | |
Total Return(b): | | | 3.37% | | | | | | (.68)% | | | | 7.06% | | | | 3.86% | | | | 13.40% | | | | 30.25% | |
| |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | $6,821 | | | | | | $7,084 | | | | $6,748 | | | | $5,018 | | | | $3,312 | | | | $2,920 | |
Average net assets (000) | | | $6,746 | | | | | | $7,299 | | | | $5,744 | | | | $3,465 | | | | $3,082 | | | | $2,927 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 2.05% | (d) | | | | | 1.98% | | | | 2.06% | | | | 2.10% | | | | 2.10% | | | | 2.10% | |
Expenses before waivers and/or expense reimbursement | | | 2.05% | (d) | | | | | 1.98% | | | | 2.06% | | | | 2.14% | | | | 2.17% | | | | 2.26% | |
Net investment income | | | 2.10% | (d) | | | | | 2.25% | | | | 2.40% | | | | 2.52% | | | | 3.23% | | | | 4.03% | |
Portfolio turnover rate | | | 33% | (e) | | | | | 79% | | | | 97% | | | | 203% | | | | 117% | | | | 164% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolios in which the Fund invests.
(d) Annualized.
(e) Not annualized.
* Dividends from net investment income include other items that are ordinary income for tax purposes.
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | |
| | Six Months Ended April 30, | | | | | Year Ended October 31, | |
| | 2014 | | | | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $6.90 | | | | | | $7.19 | | | | $6.97 | | | | $7.39 | | | | $7.17 | | | | $5.74 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .07 | | | | | | .16 | | | | .17 | | | | .17 | | | | .23 | | | | .27 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .17 | | | | | | (.21 | ) | | | .31 | | | | .07 | | | | .67 | | | | 1.45 | |
Total from investment operations | | | .24 | | | | | | (.05 | ) | | | .48 | | | | .24 | | | | .90 | | | | 1.72 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income* | | | (.12 | ) | | | | | (.13 | ) | | | (.23 | ) | | | (.66 | ) | | | (.68 | ) | | | (.29 | ) |
Tax return of capital distributions | | | - | | | | | | (.11 | ) | | | (.03 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (.12 | ) | | | | | (.24 | ) | | | (.26 | ) | | | (.66 | ) | | | (.68 | ) | | | (.29 | ) |
Net asset value, end of period | | | $7.02 | | | | | | $6.90 | | | | $7.19 | | | | $6.97 | | | | $7.39 | | | | $7.17 | |
Total Return(b): | | | 3.52% | | | | | | (.68)% | | | | 7.08% | | | | 4.00% | | | | 13.75% | | | | 30.73% | |
| |
Ratios/Supplemental Data: | |
Net assets, end of period (000) | | | $29,114 | | | | | | $31,424 | | | | $33,988 | | | | $19,408 | | | | $6,180 | | | | $4,236 | |
Average net assets (000) | | | $29,143 | | | | | | $36,071 | | | | $27,739 | | | | $10,010 | | | | $4,563 | | | | $3,467 | |
Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 2.05% | (e) | | | | | 1.98% | | | | 2.06% | | | | 2.05% | | | | 1.85% | | | | 1.85% | |
Expenses before waivers and/or expense reimbursement | | | 2.05% | (e) | | | | | 1.98% | | | | 2.06% | | | | 2.14% | | | | 2.17% | | | | 2.26% | |
Net investment income | | | 2.11% | (e) | | | | | 2.24% | | | | 2.39% | | | | 2.56% | | | | 3.45% | | | | 4.28% | |
Portfolio turnover rate | | | 33% | (f) | | | | | 79% | | | | 97% | | | | 203% | | | | 117% | | | | 164% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolios in which the Fund invests.
(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) Annualized.
(f) Not annualized.
* 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. | | | 83 | |
Financial Highlights
(Unaudited) continued
| | | | | | | | | | | | | | | | |
Class Q Shares | |
| | Six Months Ended April 30, | | | | | Year Ended October 31, | | | | | February 3, 2012(d) through October 31, | |
| | 2014 | | | | | 2013 | | | | | 2012 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $6.94 | | | | | | $7.23 | | | | | | $6.97 | |
Income from investment operations: | | | | | | | | | | | | | | | | |
Net investment income | | | .14 | | | | | | .24 | | | | | | .18 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .20 | | | | | | (.21 | ) | | | | | .28 | |
Total from investment operations | | | .34 | | | | | | .03 | | | | | | .46 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.16 | ) | | | | | (.21 | ) | | | | | (.19 | ) |
Tax return of capital distributions | | | - | | | | | | (.11 | ) | | | | | (.01 | ) |
Total dividends and distributions | | | (.16 | ) | | | | | (.32 | ) | | | | | (.20 | ) |
Net asset value, end of period | | | $7.12 | | | | | | $6.94 | | | | | | $7.23 | |
Total Return(b): | | | 4.97% | | | | | | .46% | | | | | | 6.81% | |
| |
Ratios/Supplemental Data: | | | | | | | | | | | | | |
Net assets, end of period (000) | | | $256 | | | | | | $62 | | | | | | $11 | |
Average net assets (000) | | | $108 | | | | | | $13 | | | | | | $10 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.07% | (e) | | | | | .85% | | | | | | .92% | (e) |
Expenses before waivers and/or expense reimbursement | | | 1.07% | (e) | | | | | .85% | | | | | | .92% | (e) |
Net investment income | | | 4.13% | (e) | | | | | 3.48% | | | | | | 3.42% | (e) |
Portfolio turnover rate | | | 33% | (f) | | | | | 79% | | | | | | 97% | (f) |
(a) Calculated based on average shares outstanding during the period.
(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolios in which the Fund invests.
(d) Commencement of offering.
(e) Annualized.
(f) Not annualized.
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Z Shares | | | | |
| | Six Months Ended April 30, | | | | | Year Ended October 31, | |
| | 2014 | | | | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $6.94 | | | | | | $7.23 | | | | $7.01 | | | | $7.44 | | | | $7.22 | | | | $5.78 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .11 | | | | | | .22 | | | | .23 | | | | .22 | | | | .28 | | | | .32 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .16 | | | | | | (.20 | ) | | | .31 | | | | .08 | | | | .67 | | | | 1.45 | |
Total from investment operations | | | .27 | | | | | | .02 | | | | .54 | | | | .30 | | | | .95 | | | | 1.77 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income* | | | (.15 | ) | | | | | (.20 | ) | | | (.29 | ) | | | (.73 | ) | | | (.73 | ) | | | (.33 | ) |
Tax return of capital distributions | | | - | | | | | | (.11 | ) | | | (.03 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (.15 | ) | | | | | (.31 | ) | | | (.32 | ) | | | (.73 | ) | | | (.73 | ) | | | (.33 | ) |
Net asset value, end of period | | | $7.06 | | | | | | $6.94 | | | | $7.23 | | | | $7.01 | | | | $7.44 | | | | $7.22 | |
Total Return(b): | | | 4.01% | | | | | | .31% | | | | 8.10% | | | | 4.87% | | | | 14.49% | | | | 31.62% | |
| |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | $62,572 | | | | | | $56,817 | | | | $83,077 | | | | $42,330 | | | | $4,978 | | | | $3,141 | |
Average net assets (000) | | | $54,990 | | | | | | $81,390 | | | | $58,999 | | | | $12,813 | | | | $3,507 | | | | $1,942 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.04% | (d) | | | | | .98% | | | | 1.06% | | | | 1.10% | | | | 1.10% | | | | 1.10% | |
Expenses before waivers and/or expense reimbursement | | | 1.04% | (d) | | | | | .98% | | | | 1.06% | | | | 1.14% | | | | 1.17% | | | | 1.26% | |
Net investment income | | | 3.08% | (d) | | | | | 3.18% | | | | 3.37% | | | | 3.50% | | | | 4.25% | | | | 5.03% | |
Portfolio turnover rate | | | 33% | (e) | | | | | 79% | | | | 97% | | | | 203% | | | | 117% | | | | 164% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolios in which the Fund invests.
(d) Annualized.
(e) Not annualized.
* 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. | | | 85 | |
| | | | |
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 Securities and Exchange Commission’s website. |
|
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Douglas H. McCorkindale • Stephen P. Munn • Stuart S. Parker • James E. Quinn • Richard A. Redeker • Robin B. Smith • Stephen G. Stoneburn |
|
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer and Chief Compliance Officer • Deborah A. Docs, Secretary • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Amanda S. Ryan, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, 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 |
|
CUSTODIAN | | The Bank of New York Mellon | | One Wall Street New York, NY 10286 |
|
TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658 Providence, RI 02940 |
|
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | KPMG LLP | | 345 Park Avenue New York, NY 10154 |
|
FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue New York, NY 10019 |
|
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
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E-DELIVERY |
To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
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SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, 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. |
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AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month. |
Mutual Funds:
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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.
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SHARE CLASS | | A | | B | | C | | Q | | Z |
NASDAQ | | GTRAX | | PBTRX | | PCTRX | | PGTQX | | PZTRX |
CUSIP | | 74439A103 | | 74439A202 | | 74439A301 | | 74439A509 | | 74439A400 |
MF169E2 0263057-00001-00
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Item 2 | | – | | Code of Ethics – Not required, as this is not an annual filing. |
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Item 3 | | – | | Audit Committee Financial Expert – Not required, as this is not an annual filing. |
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Item 4 | | – | | Principal Accountant Fees and Services – Not required, as this is not an annual filing. |
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Item 5 | | – | | Audit Committee of Listed Registrants – Not applicable. |
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Item 6 | | – | | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
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Item 7 | | – | | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. |
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Item 8 | | – | | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. |
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Item 9 | | – | | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
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Item 10 | | – | | Submission of Matters to a Vote of Security Holders – Not applicable. |
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Item 11 | | – | | Controls and Procedures |
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| | (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. |
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| | (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. |
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Item 12 | | – | | Exhibits |
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| | (a) | | (1) Code of Ethics – Not required, as this is not an annual filing. |
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| | | | (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. |
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| | | | (3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. |
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| | (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.
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Registrant: | | | | Prudential Global Total Return Fund, Inc. |
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By: | | | | /s/ Deborah A. Docs |
| | | | Deborah A. Docs | | |
| | | | Secretary | | |
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Date: | | | | June 19, 2014 | | |
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.
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By: | | | | /s/ Stuart S. Parker | | |
| | | | Stuart S. Parker | | |
| | | | President and Principal Executive Officer |
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Date: | | | | June 19, 2014 | | |
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By: | | | | /s/ M. Sadiq Peshimam | | |
| | | | M. Sadiq Peshimam | | |
| | | | Treasurer and Principal Financial and Accounting Officer |
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Date: | | | | June 19, 2014 | | |