UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-04661 | |
Exact name of registrant as specified in charter: | Prudential Global Total Return Fund, Inc. | |
Address of principal executive offices: | Gateway Center 3, | |
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Deborah A. Docs | |
Gateway Center 3, | ||
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 10/31/2015 | |
Date of reporting period: | 4/30/2015 |
Item 1 – | Reports to Stockholders – |
PRUDENTIAL INVESTMENTS»MUTUAL FUNDS
PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC.
SEMIANNUAL REPORT · APRIL 30, 2015
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, 2015, 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. © 2015 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.
PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC.
Supplement dated March 9, 2015 to the
Currently Effective Prospectus
In an effort to further enhance the trading capabilities of the Prudential Global Total Return Fund, Inc. (the “Fund”), the Board of Directors has approved the addition of Pramerica Investment Management Limited (“PIML”), an indirect, wholly-owned subsidiary of Prudential Investment Management, Inc. (“PIM”), as a sub-subadviser to the Fund. PIM will continue to serve as the Fund’s subadviser with PIML providing investment advisory services with respect to securities in certain foreign markets.
To reflect this change, the Prospectus is revised as follows, effective on March 9, 2015:
I. | In the section of the Prospectus entitled Fund Summary—Management of the Fund, the following footnote is hereby added beneath the chart: |
Pramerica Investment Management Limited (PIML), an indirect wholly-owned subsidiary of Prudential Investment Management, Inc., serves as a sub-subadviser to the Fund.
II. | In the section of the Prospectus entitled How the Fund is Managed—Investment Subadviser, the following is hereby added: |
Pramerica Investment Management Limited (PIML), an indirect wholly-owned subsidiary of PIM, serves as a sub-subadviser to the Fund pursuant to a sub-subadvisory agreement with PIM. PIML is located at Grand Buildings, 1-3 Strand, Trafalgar Square, London WC2N 5HR. PIML provides investment advisory services with respect to securities in certain foreign markets. As of October 2014, PIML managed approximately $18.4 billion in assets.
LR731
June 15, 2015
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, 2015.
Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. 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.
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.
Cumulative Total Returns (Without Sales Charges) as of 4/30/15 |
| |||||||||||||||||||
Six Months | One Year | Five Years | Ten Years | Since Inception | ||||||||||||||||
Class A | –1.43 | % | –1.51 | % | 29.83 | % | 63.48 | % | — | |||||||||||
Class B | –1.78 | –2.23 | 25.14 | 51.71 | — | |||||||||||||||
Class C | –1.65 | –2.24 | 25.71 | 54.52 | — | |||||||||||||||
Class Q | –1.43 | –1.32 | N/A | N/A | 11.14% (2/3/12) | |||||||||||||||
Class Z | –1.17 | –1.26 | 31.55 | 67.68 | — | |||||||||||||||
Barclays Global Aggregate Bond Index | –1.92 | –3.73 | 13.25 | 42.25 | — | |||||||||||||||
Lipper Global Income Funds Average | –0.63 | –0.49 | 18.68 | 49.97 | — | |||||||||||||||
Lipper Custom Global Income Funds Average* | –1.61 | –2.22 | 15.72 | 44.08 | — | |||||||||||||||
Average Annual Total Returns (With Sales Charges) as of 3/31/15 |
| |||||||||||||||||||
One Year | Five Years | Ten Years | Since Inception | |||||||||||||||||
Class A | –5.39 | % | 4.30 | % | 4.52 | % | — | |||||||||||||
Class B | –6.56 | 4.31 | 4.21 | — | ||||||||||||||||
Class C | –2.62 | 4.57 | 4.40 | — | ||||||||||||||||
Class Q | 0.26 | N/A | N/A | 3.10% (2/3/12) | ||||||||||||||||
Class Z | –0.69 | 5.51 | 5.27 | — | ||||||||||||||||
Barclays Global Aggregate Bond Index | –3.66 | 2.31 | 3.61 | — | ||||||||||||||||
Lipper Global Income Funds Average | –0.04 | 3.50 | 4.18 | — | ||||||||||||||||
Lipper Custom Global Income Funds Average* | –1.99 | 2.88 | 3.75 | — |
*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.
2 | Visit our website at www.prudentialfunds.com |
Source: Prudential Investments LLC and Lipper Inc.
Inception returns are provided for any share class with less than 10 calendar years of returns.
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class B* | Class C | Class Q | Class Z | ||||||
Maximum initial sales charge | 4.50% 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 net asset value at redemption) | 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) | .25% | 1% | 1% | None | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
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 US Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Euro dollar and Euro-Yen corporate bonds, Canadian government, and agency and corporate securities. The cumulative total return for the Index measured from the month-end closest to the inception date for Class Q shares through 4/30/2015 is –0.36%. The average annual total return for the Index measured from the month-end closest to the inception date for Class Q shares through 3/31/15 is –0.45%.
Lipper Global Income Funds Average
The Lipper Global Income Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Global Income Funds category for the periods noted. Funds in the Lipper Average invest primarily in US dollar and non-US dollar debt securities of issuers located in at least three countries, one of which may be the United States. The cumulative total return for the Lipper Average measured from the month-end closest to the inception date for Class Q shares through 4/30/2015 is 6.24%. The average annual total return for the Lipper Average measured from the month-end closest to the inception date for Class Q shares through 3/31/15 is 1.75%.
Prudential Global Total Return Fund, Inc. | 3 |
Your Fund’s Performance (continued)
Lipper Custom Global Income Funds Average
The Lipper Custom Global Income Funds Average (Lipper Custom 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 cumulative total return for the Lipper Custom Average measured from the month-end closest to the inception date for Class Q shares through 4/30/2015 is 3.58%. The average annual total return for the MSCI World ND Index measured from the month-end closest to the inception date for Class Q shares through 3/31/15 is 0.86%.
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. The Since Inception returns for the Index and the Lipper Averages are measured from the closest month-end to the inception date for the indicated share class.
Five Largest Holdings expressed as a percentage of net assets as of 4/30/15 |
| |||
Italy Buoni Poliennali del Tesoro, Bonds, 4.750%, 05/01/2017 | 1.8 | % | ||
Spain Government Bond, Sr. Unsec’d. Notes, 5.850%, 01/31/2022 | 1.4 | |||
Catamaran CLO Ltd., Series 2014-1A, Class A2, 144A, 2.075%, 04/20/2026 | 1.3 | |||
Cyprus Government International Bond, Sr. Unsec’d. Notes, MTN, Regs, 4.625%, 02/03/2020 | 1.3 | |||
Italy Buoni Poliennali del Tesoro, Bonds, 6.500%, 11/01/2027 | 1.0 |
Holdings reflect only long-term investments and are subject to change.
Distributions and Yields as of 4/30/15 |
| |||||||||||
Total Distributions Paid for Six Months | 30-Day SEC Yield | 30-Day Unsubsidized SEC Yield | ||||||||||
Class A | $ | 0.12 | 2.44 | % | 2.31 | % | ||||||
Class B | 0.10 | 1.81 | 1.67 | |||||||||
Class C | 0.10 | 1.81 | 1.67 | |||||||||
Class Q | 0.13 | 2.77 | 2.77 | |||||||||
Class Z | 0.13 | 2.79 | 2.65 |
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, 2014, at the beginning of the period, and held through the six-month period ended April 30, 2015. 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
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.
Prudential Global Total Return Fund, Inc. | Beginning Account Value November 1, 2014 | Ending Account Value April 30, 2015 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 985.70 | 1.06 | % | $ | 5.22 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.54 | 1.06 | % | $ | 5.31 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 982.20 | 1.81 | % | $ | 8.90 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.82 | 1.81 | % | $ | 9.05 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 983.50 | 1.81 | % | $ | 8.90 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.82 | 1.81 | % | $ | 9.05 | ||||||||||
Class Q | Actual | $ | 1,000.00 | $ | 985.70 | 0.80 | % | $ | 3.94 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.83 | 0.80 | % | $ | 4.01 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 988.30 | 0.81 | % | $ | 3.99 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.78 | 0.81 | % | $ | 4.06 |
*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, 2015, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2015 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
6 | Visit our website at www.prudentialfunds.com |
The Fund’s annualized expense ratios for the six-month period ended April 30, 2015, are as follows:
Class | Gross Operating Expenses | Net Operating Expenses | ||||||
A | 1.23 | % | 1.06 | % | ||||
B | 1.94 | 1.81 | ||||||
C | 1.94 | 1.81 | ||||||
Q | 0.80 | 0.80 | ||||||
Z | 0.94 | 0.81 |
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.
Prudential Global Total Return Fund, Inc. | 7 |
Portfolio of Investments
as of April 30, 2015 (Unaudited)
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
LONG-TERM INVESTMENTS 96.3% |
| |||||||||||||
FOREIGN BONDS 52.9% |
| |||||||||||||
Australia 0.1% | ||||||||||||||
Australia Government Bond, Sr. Unsec’d. Notes | 4.750% | 06/15/16 | AUD | 200 | $ | 163,123 | ||||||||
New South Wales Treasury Corp., Local Gov’t. Gtd. Notes | 5.000 | 08/20/24 | AUD | 200 | 185,069 | |||||||||
|
| |||||||||||||
348,192 | ||||||||||||||
Austria | ||||||||||||||
Austria Government International Bond, | 5.375 | 12/01/34 | CAD | 100 | 106,274 | |||||||||
Belgium 1.3% | ||||||||||||||
Kingdom of Belgium, | 9.375 | 02/21/20 | GBP | 188 | 387,214 | |||||||||
Notes, MTN | 5.000 | 04/24/18 | GBP | 2,000 | 3,389,565 | |||||||||
Notes, MTN | 5.700 | 05/28/32 | GBP | 150 | 315,602 | |||||||||
Notes, RegS | 8.875 | 12/01/24 | 500 | 752,050 | ||||||||||
|
| |||||||||||||
4,844,431 | ||||||||||||||
Brazil 1.5% | ||||||||||||||
Brazil Notas do Tesouro Nacional B, | 6.000 | 08/15/50 | BRL | 424 | 368,422 | |||||||||
Brazil Notas do Tesouro Nacional F, | 10.000 | 01/01/21 | BRL | 750 | 221,675 | |||||||||
Brazilian Government International Bond, | 2.875 | 04/01/21 | EUR | 300 | 346,119 | |||||||||
Sr. Unsec’d. Notes | 4.875 | 01/22/21 | 500 | 534,250 | ||||||||||
Unsec’d. Notes | 11.000 | 06/26/17 | EUR | 2,744 | 3,720,836 | |||||||||
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 | 200,450 | ||||||||||
Minerva Luxembourg SA, Gtd. Notes, 144A | 12.250 | 02/10/22 | 200 | 219,800 | ||||||||||
Schahin II Finance Co. SPV Ltd., Sr. Sec’d. Notes, 144A (original cost $220,424; purchased 03/27/12)(a)(b)(c) | 5.875 | 09/25/22 | 217 | 112,927 | ||||||||||
|
| |||||||||||||
5,724,479 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 9 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Bulgaria 0.2% | ||||||||||||||
Bulgaria Government International Bond, | 4.250% | 07/09/17 | EUR | 500 | $ | 602,129 | ||||||||
Canada 0.7% | ||||||||||||||
Agrium, Inc., Sr. Unsec’d. Notes | 6.125 | 01/15/41 | 25 | 30,024 | ||||||||||
Barrick North America Finance LLC, | 5.700 | 05/30/41 | 45 | 44,572 | ||||||||||
Gtd. Notes | 5.750 | 05/01/43 | 35 | 35,461 | ||||||||||
Barrick PD Australia Finance Pty. Ltd., | 5.950 | 10/15/39 | 50 | 49,738 | ||||||||||
Canadian Government Bond, | 1.750 | 09/01/19 | CAD | 700 | 601,031 | |||||||||
Bonds(d)(e) | 4.000 | 06/01/41 | CAD | 650 | 728,479 | |||||||||
Unsec’d. Notes(e) | 2.750 | 06/01/22 | CAD | 200 | 182,118 | |||||||||
Canadian Pacific Railway Co., | 6.500 | 05/15/18 | 77 | 87,462 | ||||||||||
Province of Alberta Canada, Unsec’d. Notes | 3.400 | 12/01/23 | CAD | 200 | 182,984 | |||||||||
Province of British Columbia, | 3.300 | 12/18/23 | CAD | 200 | 181,988 | |||||||||
Unsec’d. Notes | 3.200 | 06/18/44 | CAD | 200 | 174,569 | |||||||||
Unsec’d. Notes | 7.875 | 11/30/23 | CAD | 117 | 138,726 | |||||||||
TransAlta Corp., Sr. Unsec’d. Notes | 6.650 | 05/15/18 | 200 | 223,351 | ||||||||||
|
| |||||||||||||
2,660,503 | ||||||||||||||
Cayman Islands 0.2% | ||||||||||||||
Cayman Islands Government Bond, | 5.950 | 11/24/19 | 500 | 571,250 | ||||||||||
Chile | ||||||||||||||
Chile Government International Bond, | 1.625 | 01/30/25 | EUR | 100 | 117,843 | |||||||||
China 0.7% | ||||||||||||||
China Government Bond, | 1.800 | 12/01/15 | CNH | 1,000 | 159,252 | |||||||||
Sr. Unsec’d. Notes, RegS | 1.850 | 06/29/15 | CNH | 12,000 | 1,928,151 | |||||||||
Sinopec Group Overseas Development 2015 Ltd., Gtd. Notes, 144A | 2.500 | 04/28/20 | 500 | 496,113 | ||||||||||
|
| |||||||||||||
2,583,516 |
See Notes to Financial Statements.
10 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Colombia 0.7% | ||||||||||||||
Colombia Government International Bond, | 4.000% | 02/26/24 | 1,000 | $ | 1,027,500 | |||||||||
Sr. Unsec’d. Notes | 8.700 | 02/15/16 | 88 | 93,720 | ||||||||||
Sr. Unsec’d. Notes | 11.750 | 02/25/20 | 715 | 987,773 | ||||||||||
Sr. Unsec’d. Notes | 12.000 | 10/22/15 | COP | 1,000,000 | 432,863 | |||||||||
Pacific Rubiales Energy Corp., Gtd. Notes, 144A | 5.375 | 01/26/19 | 200 | 156,540 | ||||||||||
|
| |||||||||||||
2,698,396 | ||||||||||||||
Costa Rica 0.1% | ||||||||||||||
Costa Rica Government International Bond, | 4.375 | 04/30/25 | 500 | 465,000 | ||||||||||
Cyprus 1.7% | ||||||||||||||
Cyprus Government International Bond, | 3.750 | 11/01/15 | EUR | 1,431 | 1,604,390 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 4.625 | 02/03/20 | EUR | 4,097 | 4,837,237 | |||||||||
|
| |||||||||||||
6,441,627 | ||||||||||||||
Czech Republic 0.1% | ||||||||||||||
Czech Republic International, Sr. Unsec’d. Notes, MTN, RegS | 3.625 | 04/14/21 | EUR | 284 | 379,798 | |||||||||
Denmark 0.1% | ||||||||||||||
Denmark Government Bond, | 1.750 | 11/15/25 | DKK | 520 | 88,658 | |||||||||
Bonds | 4.500 | 11/15/39 | DKK | 500 | 134,765 | |||||||||
|
| |||||||||||||
223,423 | ||||||||||||||
Finland 0.3% | ||||||||||||||
Finland Government International Bond, | 6.950 | 02/15/26 | 340 | 463,407 | ||||||||||
Sr. Unsec’d. Notes, MTN | 2.250 | 01/18/17 | SEK | 5,000 | 615,047 | |||||||||
|
| |||||||||||||
1,078,454 | ||||||||||||||
France 0.4% | ||||||||||||||
Credit Agricole Assurances SA, Sub. Notes, RegS | 4.250(f) | 01/29/49 | EUR | 1,000 | 1,183,204 | |||||||||
France Government Bond OAT, Bonds(d) | 1.750 | 11/25/24 | EUR | 300 | 373,301 | |||||||||
|
| |||||||||||||
1,556,505 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 11 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Germany 1.2% | ||||||||||||||
Deutsche Annington Finance BV, Gtd. Notes, RegS | 4.625%(f) | 04/08/74 | EUR | 1,000 | $ | 1,193,847 | ||||||||
Fresenius Medical Care U.S. Finance II, Inc., Gtd. Notes, 144A | 4.125 | 10/15/20 | 325 | 330,687 | ||||||||||
KFW, Gov’t. Gtd. Notes | 4.700 | 06/02/37 | CAD | 179 | 182,662 | |||||||||
RWE AG, Jr. Sub. Notes, RegS | 4.625(f) | 09/28/49 | EUR | 200 | 227,153 | |||||||||
Techem Energy Metering Service GmbH & Co. KG, Gtd. Notes, MTN, 144A | 7.875 | 10/01/20 | EUR | 275 | 339,755 | |||||||||
Techem GmbH, Sr. Sec’d. Notes, MTN, 144A | 6.125 | 10/01/19 | EUR | 500 | 595,813 | |||||||||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, Sr. Sec’d. Notes, 144A | 5.500 | 09/15/22 | EUR | 405 | 488,952 | |||||||||
Volkswagen International Finance NV, Gtd. Notes, RegS | 3.750(f) | 12/31/49 | EUR | 1,000 | 1,208,693 | |||||||||
|
| |||||||||||||
4,567,562 | ||||||||||||||
Greece 0.8% | ||||||||||||||
Hellenic Republic Government International Bond, | 5.250 | 02/01/16 | JPY | 340,900 | 1,870,096 | |||||||||
Sr. Unsec’d. Notes(b) | 5.250 | 02/01/16 | JPY | 6,500 | 36,474 | |||||||||
Sr. Unsec’d. Notes | 5.800 | 07/14/15 | JPY | 150,000 | 741,206 | |||||||||
Sr. Unsec’d. Notes, MTN | 3.800 | 08/08/17 | JPY | 54,000 | 289,886 | |||||||||
|
| |||||||||||||
2,937,662 | ||||||||||||||
Hungary 2.1% | ||||||||||||||
Hungary Government Bond, Bonds | 5.500 | 12/20/18 | HUF | 100,000 | 408,494 | |||||||||
Hungary Government International Bond, | 2.110 | 10/26/17 | JPY | 100,000 | 837,844 | |||||||||
Sr. Unsec’d. Notes | 4.000 | 03/25/19 | 332 | 346,525 | ||||||||||
Sr. Unsec’d. Notes | 5.375 | 02/21/23 | 450 | 503,537 | ||||||||||
Sr. Unsec’d. Notes, MTN | 4.000 | 05/20/16 | CHF | 600 | 668,718 | |||||||||
Sr. Unsec’d. Notes, RegS | 4.375 | 07/04/17 | EUR | 1,000 | 1,202,944 | |||||||||
Sr. Unsec’d. Notes, RegS | 5.000 | 03/30/16 | GBP | 200 | 316,148 | |||||||||
Sr. Unsec’d. Notes, RegS | 5.750 | 06/11/18 | EUR | 500 | 640,839 | |||||||||
Sr. Unsec’d. Notes, RegS | 6.000 | 01/11/19 | EUR | 2,500 | 3,295,287 | |||||||||
|
| |||||||||||||
8,220,336 |
See Notes to Financial Statements.
12 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Iceland 0.5% | ||||||||||||||
Iceland Government International Bond, | 4.875% | 06/16/16 | 1,500 | $ | 1,557,070 | |||||||||
Unsec’d. Notes, RegS | 5.875 | 05/11/22 | 225 | 260,705 | ||||||||||
|
| |||||||||||||
1,817,775 | ||||||||||||||
India 0.5% | ||||||||||||||
Bharti Airtel International Netherlands BV, Gtd. Notes, 144A | 5.125 | 03/11/23 | 200 | 216,607 | ||||||||||
Export-Import Bank of India, Sr. Unsec’d. Notes, MTN, RegS | 5.760 | 04/05/18 | AUD | 1,000 | 830,404 | |||||||||
State Bank of India, Sr. Unsec’d. Notes, MTN, RegS | 4.500 | 11/30/15 | EUR | 700 | 802,384 | |||||||||
|
| |||||||||||||
1,849,395 | ||||||||||||||
Indonesia 1.7% | ||||||||||||||
Berau Capital Resources, Sr. Sec’d. Notes, RegS | 12.500 | 07/08/15 | 400 | 217,600 | ||||||||||
Indonesia Government International Bond, | 2.875 | 07/08/21 | EUR | 900 | 1,061,094 | |||||||||
Sr. Unsec’d. Notes, MTN, 144A | 4.125 | 01/15/25 | 335 | 341,281 | ||||||||||
Sr. Unsec’d. Notes, MTN, RegS | 2.875 | 07/08/21 | EUR | 546 | 643,731 | |||||||||
Majapahit Holding BV, Gtd. Notes, RegS | 7.750 | 01/20/20 | 800 | 939,136 | ||||||||||
Pertamina Persero PT, Sr. Unsec’d. Notes, 144A | 4.300 | 05/20/23 | 500 | 496,250 | ||||||||||
Perusahaan Penerbit SBSN Indonesia II, | 4.000 | 11/21/18 | 2,200 | 2,312,750 | ||||||||||
Perusahaan Penerbit SBSN Indonesia III, | 4.350 | 09/10/24 | 300 | 308,106 | ||||||||||
Sr. Unsec’d. Notes, 144A | 6.125 | 03/15/19 | 375 | 422,858 | ||||||||||
|
| |||||||||||||
6,742,806 | ||||||||||||||
Ireland 1.4% | ||||||||||||||
CRH America, Inc., Gtd. Notes | 8.125 | 07/15/18 | 110 | 130,607 | ||||||||||
Ireland Government Bond, | 2.400 | 05/15/30 | EUR | 1,200 | 1,564,283 | |||||||||
Unsec’d. Notes, RegS | 3.400 | 03/18/24 | EUR | 2,690 | 3,693,364 | |||||||||
|
| |||||||||||||
5,388,254 | ||||||||||||||
Israel 0.3% | ||||||||||||||
Israel Government International Bond, | 3.750 | 10/12/15 | EUR | 1,000 | 1,137,897 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 13 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Italy 6.0% | ||||||||||||||
Cassa Depositi e Prestiti SpA, Sr. Unsec’d. Notes, MTN, RegS | 4.750% | 06/18/19 | EUR | 500 | $ | 648,961 | ||||||||
Italy Buoni Poliennali del Tesoro, | ||||||||||||||
Bonds | 2.500 | 12/01/24 | EUR | 100 | 122,590 | |||||||||
Bonds | 3.750 | 09/01/24 | EUR | 900 | 1,211,121 | |||||||||
Bonds | 4.500 | 05/01/23 | EUR | 2,700 | 3,787,194 | |||||||||
Bonds | 4.750 | 05/01/17 | EUR | 5,520 | 6,762,057 | |||||||||
Bonds | 5.500 | 11/01/22 | EUR | 700 | 1,028,747 | |||||||||
Bonds | 6.500 | 11/01/27 | EUR | 2,295 | 3,939,373 | |||||||||
Bonds, RegS | 4.750 | 09/01/44 | EUR | 500 | 828,799 | |||||||||
Italy Government International Bond, | 5.200 | 07/31/34 | EUR | 250 | 392,671 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 5.250 | 12/07/34 | GBP | 232 | 415,995 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 5.750 | 07/25/16 | EUR | 201 | 240,891 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 6.000 | 08/04/28 | GBP | 407 | 774,323 | |||||||||
Sr. Unsec’d. Notes, RegS | 3.450 | 03/24/17 | JPY | 129,000 | 1,127,172 | |||||||||
Sr. Unsec’d. Notes, RegS | 3.700 | 11/14/16 | JPY | 95,000 | 827,620 | |||||||||
Sr. Unsec’d. Notes, RegS | 4.500 | 06/08/15 | JPY | 144,000 | 1,209,993 | |||||||||
|
| |||||||||||||
23,317,507 | ||||||||||||||
Japan 0.9% | ||||||||||||||
Japan Finance Organization for Municipalities, | 5.750 | 08/09/19 | GBP | 400 | 715,901 | |||||||||
Japan Government Twenty Year Bond, | 1.400 | 09/20/34 | JPY | 145,000 | 1,285,674 | |||||||||
Sr. Unsec’d. Notes | 1.500 | 06/20/34 | JPY | 50,000 | 451,592 | |||||||||
MUFG Capital Finance 1 Ltd., Gtd. Notes | 6.346(f) | 07/29/49 | 120 | 126,000 | ||||||||||
Nomura Holdings, Inc., Sr. Unsec’d. Notes, MTN | 2.000 | 09/13/16 | 800 | 807,732 | ||||||||||
|
| |||||||||||||
3,386,899 | ||||||||||||||
Kazakhstan 0.2% | ||||||||||||||
Kazakhstan Government International Bond, | 3.875 | 10/14/24 | 925 | 894,938 | ||||||||||
Latvia 0.8% | ||||||||||||||
Republic of Latvia, | 5.250 | 06/16/21 | 500 | 576,250 | ||||||||||
Sr. Unsec’d. Notes, RegS | 2.750 | 01/12/20 | 400 | 406,676 | ||||||||||
Sr. Unsec’d. Notes, RegS | 5.250 | 02/22/17 | 1,000 | 1,071,514 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Latvia (cont’d.) | ||||||||||||||
Sr. Unsec’d. Notes, RegS | 5.250% | 06/16/21 | 500 | $ | 576,250 | |||||||||
Unsec’d. Notes, 144A | 2.625 | 01/21/21 | EUR | 500 | 634,832 | |||||||||
|
| |||||||||||||
3,265,522 | ||||||||||||||
Lithuania 0.5% | ||||||||||||||
Lithuania Government International Bond, | 3.375 | 01/22/24 | EUR | 500 | 694,764 | |||||||||
Sr. Unsec’d. Notes, RegS | 6.125 | 03/09/21 | 700 | 827,750 | ||||||||||
Sr. Unsec’d. Notes, RegS | 6.625 | 02/01/22 | 200 | 246,452 | ||||||||||
Sr. Unsec’d. Notes, RegS | 7.375 | 02/11/20 | 245 | 297,430 | ||||||||||
|
| |||||||||||||
2,066,396 | ||||||||||||||
Macedonia 0.1% | ||||||||||||||
Former Yugoslav Republic of Macedonia, Unsec’d. Notes, 144A | 3.975 | 07/24/21 | EUR | 500 | 569,847 | |||||||||
Malaysia 0.5% | ||||||||||||||
1Malaysia Sukuk Global Bhd, Sr. Unsec’d. Notes, RegS | 3.928 | 06/04/15 | 825 | 826,980 | ||||||||||
Wakala Global Sukuk Bhd, Sr. Unsec’d. Notes, RegS | 4.646 | 07/06/21 | 1,100 | 1,218,360 | ||||||||||
|
| |||||||||||||
2,045,340 | ||||||||||||||
Mexico 3.6% | ||||||||||||||
CEMEX Espana SA, Sr. Sec’d. Notes, 144A | 9.875 | 04/30/19 | 1,000 | 1,104,380 | ||||||||||
Mexican Bonos, Bonds | 8.500 | 12/13/18 | MXN | 7,000 | 509,310 | |||||||||
Mexico Government International Bond, | 2.750 | 04/22/23 | EUR | 2,075 | 2,529,124 | |||||||||
Sr. Unsec’d. Notes | 4.000 | 03/15/2115 | EUR | 450 | 504,778 | |||||||||
Sr. Unsec’d. Notes, MTN | 1.625 | 03/06/24 | EUR | 400 | 445,772 | |||||||||
Sr. Unsec’d. Notes, MTN | 2.375 | 04/09/21 | EUR | 100 | 118,608 | |||||||||
Sr. Unsec’d. Notes, MTN | 3.000 | 03/06/45 | EUR | 500 | 568,443 | |||||||||
Sr. Unsec’d. Notes, MTN | 4.250 | 07/14/17 | EUR | 2,984 | 3,620,310 | |||||||||
Sr. Unsec’d. Notes, MTN | 5.500 | 02/17/20 | EUR | 100 | 135,865 | |||||||||
Sr. Unsec’d. Notes, MTN | 5.625 | 01/15/17 | 526 | 564,661 | ||||||||||
Sr. Unsec’d. Notes, MTN | 5.625 | 03/19/2114 | GBP | 200 | 319,995 | |||||||||
Sr. Unsec’d. Notes, MTN | 6.750 | 02/06/24 | GBP | 840 | 1,685,024 | |||||||||
Sr. Unsec’d. Notes, MTN | 11.000 | 05/08/17 | ITL | 250,000 | 173,971 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 15 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Mexico (cont’d.) | ||||||||||||||
Petroleos Mexicanos, | 4.250% | 01/15/25 | 200 | $ | 201,200 | |||||||||
Gtd. Notes, MTN | 8.250 | 06/02/22 | GBP | 206 | 406,756 | |||||||||
Gtd. Notes, MTN, 144A | 3.500 | 07/23/20 | 500 | 511,250 | ||||||||||
Gtd. Notes, RegS | 3.125 | 11/27/20 | EUR | 500 | 601,920 | |||||||||
|
| |||||||||||||
14,001,367 | ||||||||||||||
Netherlands 0.5% | ||||||||||||||
Bank Nederlandse Gemeenten NV, | 0.500 | 05/12/21 | ZAR | 10,000 | 517,029 | |||||||||
Sr. Unsec’d. Notes, 144A | 2.125 | 10/01/19 | CAD | 100 | 85,225 | |||||||||
Sr. Unsec’d. Notes, MTN | 0.500 | 06/22/21 | ZAR | 6,000 | 307,292 | |||||||||
Sr. Unsec’d. Notes, MTN | 5.500 | 05/23/22 | AUD | 338 | 306,138 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 0.500 | 06/07/22 | ZAR | 5,000 | 216,650 | |||||||||
UPCB Finance III Ltd., Sr. Sec’d. Notes, 144A | 6.625 | 07/01/20 | 475 | 493,881 | ||||||||||
|
| |||||||||||||
1,926,215 | ||||||||||||||
New Zealand 0.1% | ||||||||||||||
New Zealand Local Government Funding Agency, Unsec’d. Notes | 6.000 | 05/15/21 | NZD | 500 | 425,522 | |||||||||
Norway 0.2% | ||||||||||||||
City of Oslo Norway, Sr. Unsec’d. Notes | 3.650 | 11/08/23 | NOK | 2,000 | 292,678 | |||||||||
Norway Government Bond, Bonds | 4.250 | 05/19/17 | NOK | 2,000 | 283,783 | |||||||||
|
| |||||||||||||
576,461 | ||||||||||||||
Panama 1.3% | ||||||||||||||
Panama Government International Bond, | 4.000 | 09/22/24 | 400 | 414,000 | ||||||||||
Sr. Unsec’d. Notes | 5.200 | 01/30/20 | 800 | 894,000 | ||||||||||
Sr. Unsec’d. Notes | 6.700 | 01/26/36 | 1,700 | 2,197,250 | ||||||||||
Sr. Unsec’d. Notes | 8.125 | 04/28/34 | 138 | 191,475 | ||||||||||
Sr. Unsec’d. Notes | 9.375 | 01/16/23 | 622 | 864,580 | ||||||||||
Sr. Unsec’d. Notes | 10.750 | 05/15/20 | 275 | 371,250 | ||||||||||
|
| |||||||||||||
4,932,555 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Peru 1.1% | ||||||||||||||
Peru Enhanced Pass-Through Finance Ltd., | 1.427%(g) | 05/31/18 | 2,275 | $ | 2,180,651 | |||||||||
Pass-Through Certificates, RegS | 2.934(g) | 05/31/25 | 1,000 | 756,000 | ||||||||||
Peruvian Government International Bond, | 7.350 | 07/21/25 | 500 | 676,250 | ||||||||||
Unsec’d. Notes, 144A | 5.700 | 08/12/24 | PEN | 2,600 | 816,213 | |||||||||
|
| |||||||||||||
4,429,114 | ||||||||||||||
Philippines 1.7% | ||||||||||||||
Philippine Government International Bond, | 3.900 | 11/26/22 | PHP | 60,000 | 1,362,228 | |||||||||
Sr. Unsec’d. Notes | 4.950 | 01/15/21 | PHP | 30,000 | 721,704 | |||||||||
Sr. Unsec’d. Notes | 6.250 | 03/15/16 | EUR | 3,081 | 3,624,523 | |||||||||
Sr. Unsec’d. Notes | 6.250 | 01/14/36 | PHP | 25,000 | 657,703 | |||||||||
|
| |||||||||||||
6,366,158 | ||||||||||||||
Poland 1.1% | ||||||||||||||
Poland Government Bond, Bonds | 3.250 | 07/25/19 | PLN | 1,000 | 290,095 | |||||||||
Poland Government International Bond, | 3.625 | 02/01/16 | EUR | 500 | 576,046 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 2.625 | 05/12/15 | CHF | 3,000 | 3,217,536 | |||||||||
|
| |||||||||||||
4,083,677 | ||||||||||||||
Portugal 2.1% | ||||||||||||||
Portugal Government International Bond, Unsec’d. Notes, 144A | 5.125 | 10/15/24 | 2,200 | 2,376,990 | ||||||||||
Portugal Obrigacoes do Tesouro OT, | 3.850 | 04/15/21 | EUR | 500 | 645,022 | |||||||||
Sr. Unsec’d. Notes, RegS | 4.750 | 06/14/19 | EUR | 2,410 | 3,149,612 | |||||||||
Sr. Unsec’d. Notes, RegS | 5.650 | 02/15/24 | EUR | 200 | 292,386 | |||||||||
Unsec’d. Notes, RegS | 3.875 | 02/15/30 | EUR | 1,300 | 1,701,081 | |||||||||
|
| |||||||||||||
8,165,091 | ||||||||||||||
Romania 0.6% | ||||||||||||||
Romania Government Bond, Bonds | 5.850 | 04/26/23 | RON | 1,880 | 566,351 | |||||||||
Romanian Government International Bond, | 6.500 | 06/18/18 | EUR | 1,000 | 1,322,157 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 17 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Romania (cont’d.) | ||||||||||||||
Sr. Unsec’d. Notes, RegS | 6.750% | 02/07/22 | 500 | $ | 601,250 | |||||||||
|
| |||||||||||||
2,489,758 | ||||||||||||||
Russia 0.4% | ||||||||||||||
Russian Foreign Bond - Eurobond, | 3.625 | 09/16/20 | EUR | 200 | 219,461 | |||||||||
Sr. Unsec’d. Notes, RegS | 7.500 | 03/31/30 | 1,063 | 1,242,838 | ||||||||||
|
| |||||||||||||
1,462,299 | ||||||||||||||
Serbia 0.2% | ||||||||||||||
Republic of Serbia, Bonds, 144A | 4.875 | 02/25/20 | 750 | 768,750 | ||||||||||
Singapore 0.2% | ||||||||||||||
Singapore Government Bond, Sr. Unsec’d. Notes | 3.000 | 09/01/24 | SGD | 500 | 402,553 | |||||||||
Temasek Financial I Ltd., Gtd. Notes, MTN | 3.265 | 02/19/20 | SGD | 500 | 396,464 | |||||||||
|
| |||||||||||||
799,017 | ||||||||||||||
Slovak Republic 0.6% | ||||||||||||||
Slovakia Government International Bond, Sr. Unsec’d. Notes, RegS | 4.375 | 05/21/22 | 2,200 | 2,473,020 | ||||||||||
Slovenia 2.2% | ||||||||||||||
Slovenia Government Bond, Sr. Unsec’d. Notes, RegS | 4.375 | 02/06/19 | EUR | 300 | 386,605 | |||||||||
Slovenia Government International Bond, | 4.125 | 02/18/19 | 300 | 317,722 | ||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 05/10/18 | 1,500 | 1,611,900 | ||||||||||
Sr. Unsec’d. Notes, 144A | 5.850 | 05/10/23 | 1,500 | 1,776,960 | ||||||||||
Sr. Unsec’d. Notes, RegS | 5.250 | 02/18/24 | 200 | 229,480 | ||||||||||
Sr. Unsec’d. Notes, RegS | 5.500 | 10/26/22 | 1,700 | 1,961,698 | ||||||||||
Sr. Unsec’d. Notes, RegS | 5.850 | 05/10/23 | 1,715 | 2,031,658 | ||||||||||
|
| |||||||||||||
8,316,023 | ||||||||||||||
South Africa 1.3% | ||||||||||||||
South Africa Government Bond, Bonds | 7.000 | 02/28/31 | ZAR | 1,800 | 132,501 | |||||||||
South Africa Government International Bond, | 3.750 | 07/24/26 | EUR | 1,000 | 1,212,679 | |||||||||
Sr. Unsec’d. Notes, MTN | 4.500 | 04/05/16 | EUR | 2,202 | 2,562,518 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
South Africa (cont’d.) | ||||||||||||||
ZAR Sovereign Capital Fund Propriety Ltd., Sr. Unsec’d. Notes, 144A | 3.903% | 06/24/20 | 1,000 | $ | 1,022,500 | |||||||||
|
| |||||||||||||
4,930,198 | ||||||||||||||
South Korea 0.6% | ||||||||||||||
Export-Import Bank of Korea, | 0.500 | 01/25/17 | TRY | 100 | 31,237 | |||||||||
Sr. Unsec’d. Notes, MTN | 5.375 | 09/12/19 | AUD | 1,000 | 844,155 | |||||||||
Sr. Unsec’d. Notes, MTN | 6.350 | 03/28/17 | MXN | 900 | 59,848 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 3.990 | 09/13/16 | MXN | 6,180 | 397,781 | |||||||||
Republic of Korea, | 3.625 | 11/02/15 | EUR | 880 | 1,004,561 | |||||||||
Sr. Unsec’d. Notes, RegS | 2.125 | 06/10/24 | EUR | 100 | 120,847 | |||||||||
|
| |||||||||||||
2,458,429 | ||||||||||||||
Spain 5.4% | ||||||||||||||
Autonomous Community of Madrid Spain, | 4.110 | 06/23/16 | EUR | 100 | 117,078 | |||||||||
Sr. Unsec’d. Notes | 5.500 | 02/14/17 | EUR | 176 | 215,608 | |||||||||
Sr. Unsec’d. Notes | 6.213 | 06/21/16 | EUR | 68 | 81,407 | |||||||||
Sr. Unsec’d. Notes | 7.062(f) | 10/30/16 | EUR | 550 | 682,005 | |||||||||
Instituto de Credito Oficial, | 3.250 | 06/28/24 | CHF | 300 | 385,313 | |||||||||
Gov’t. Gtd. Notes, MTN | 4.530 | 03/17/16 | CAD | 1,660 | 1,402,573 | |||||||||
Gov’t. Gtd. Notes, MTN | 5.000 | 03/31/20 | CAD | 1,000 | 895,143 | |||||||||
Spain Government Bond, | 2.750 | 04/30/19 | EUR | 700 | 857,155 | |||||||||
Bonds, RegS | 5.150 | 10/31/44 | EUR | 1,000 | 1,752,310 | |||||||||
Sr. Unsec’d. Notes | 5.850 | 01/31/22 | EUR | 3,705 | 5,465,498 | |||||||||
Sr. Unsec’d. Notes, RegS | 4.800 | 01/31/24 | EUR | 1,500 | 2,161,550 | |||||||||
Unsec’d. Notes, RegS | 1.600 | 04/30/25 | EUR | 300 | 340,663 | |||||||||
Spain Government International Bond, | 5.250 | 04/06/29 | GBP | 936 | 1,667,502 | |||||||||
Sr. Unsec’d. Notes, MTN, 144A | 4.000 | 03/06/18 | 3,660 | 3,900,411 | ||||||||||
Sr. Unsec’d. Notes, MTN, RegS | 4.000 | 03/06/18 | 1,000 | 1,065,686 | ||||||||||
|
| |||||||||||||
20,989,902 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 19 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
Supranational Bank 1.3% | ||||||||||||||
African Development Bank, | 0.500% | 09/21/21 | NZD | 1,500 | $ | 883,830 | ||||||||
Sr. Unsec’d. Notes, MTN | 0.500 | 09/29/20 | AUD | 445 | 306,416 | |||||||||
European Investment Bank, | 0.500 | 06/21/23 | AUD | 800 | 496,954 | |||||||||
Sr. Unsec’d. Notes, MTN | 0.500 | 08/10/23 | AUD | 720 | 445,103 | |||||||||
Sr. Unsec’d. Notes, MTN | 0.500 | 10/26/23 | AUD | 1,840 | 1,103,572 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 0.500 | 07/21/23 | AUD | 800 | 495,493 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 4.600 | 01/30/37 | CAD | 150 | 149,047 | |||||||||
Inter-American Development Bank, | 0.500 | 05/23/23 | CAD | 744 | 531,916 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 0.500 | 10/30/20 | ZAR | 2,250 | 126,855 | |||||||||
Sr. Unsec’d. Notes, MTN, RegS | 0.500 | 11/30/20 | ZAR | 1,840 | 103,128 | |||||||||
International Finance Corp., Sr. Unsec’d. | 7.250 | 01/18/17 | ZAR | 5,000 | 415,215 | |||||||||
|
| |||||||||||||
5,057,529 | ||||||||||||||
Sweden 0.1% | ||||||||||||||
Kommuninvest I Sverige AB, Local Gov’t. Gtd. Notes, MTN | 4.750 | 08/17/22 | AUD | 200 | 173,768 | |||||||||
Sweden Government Bond, Bonds(e) | 2.500 | 05/12/25 | SEK | 2,200 | 316,615 | |||||||||
|
| |||||||||||||
490,383 | ||||||||||||||
Turkey 0.6% | ||||||||||||||
Export Credit Bank of Turkey, Sr. Unsec’d. Notes, 144A | 5.375 | 11/04/16 | 200 | 207,556 | ||||||||||
Turkey Government Bond, Bonds | 8.500 | 07/10/19 | TRY | 1,000 | 362,568 | |||||||||
Turkey Government International Bond, | 5.500 | 02/16/17 | EUR | 1,148 | 1,389,900 | |||||||||
Sr. Unsec’d. Notes | 5.875 | 04/02/19 | EUR | 247 | 317,213 | |||||||||
|
| |||||||||||||
2,277,237 | ||||||||||||||
United Kingdom 2.0% | ||||||||||||||
HSBC Holdings PLC, | 5.100 | 04/05/21 | 85 | 96,519 | ||||||||||
Sub. Notes | 6.500 | 09/15/37 | 125 | 157,119 | ||||||||||
Iceland Bondco PLC, Sr. Sec’d. Notes, 144A | 6.750 | 07/15/24 | GBP | 393 | 508,782 | |||||||||
Lloyds Bank PLC, Gtd. Notes | 6.375 | 01/21/21 | 500 | 601,091 |
See Notes to Financial Statements.
20 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
FOREIGN BONDS (Continued) |
| |||||||||||||
United Kingdom (cont’d.) | ||||||||||||||
Royal Bank of Scotland Group PLC, | 6.125% | 01/11/21 | 325 | $ | 384,723 | |||||||||
Sr. Unsec’d. Notes, MTN | 6.400 | 10/21/19 | 150 | 172,886 | ||||||||||
United Kingdom Gilt, | 2.750 | 09/07/24 | GBP | 1,180 | 1,948,403 | |||||||||
Bonds, RegS(e) | 4.250 | 03/07/36 | GBP | 1,030 | 2,048,460 | |||||||||
Unsec’d. Notes, RegS(e) | 3.250 | 01/22/44 | GBP | 645 | 1,131,601 | |||||||||
Virgin Media Secured Finance PLC, Sr. Sec’d. Notes, 144A | 6.000 | 04/15/21 | GBP | 450 | 725,545 | |||||||||
|
| |||||||||||||
7,775,129 | ||||||||||||||
Uruguay 0.1% | ||||||||||||||
Uruguay Government International Bond, | 6.875 | 01/19/16 | EUR | 103 | 120,858 | |||||||||
Sr. Unsec’d. Notes | 7.000 | 06/28/19 | EUR | 119 | 160,335 | |||||||||
|
| |||||||||||||
281,193 | ||||||||||||||
|
| |||||||||||||
TOTAL FOREIGN BONDS | 204,084,983 | |||||||||||||
|
| |||||||||||||
ASSET-BACKED SECURITIES 20.9% | ||||||||||||||
Collateralized Debt Obligations 0.5% | ||||||||||||||
GEM Ligos III Ltd., Series 2006-3A, | 0.944(f) | 03/23/21 | 1,512 | 1,506,236 | ||||||||||
GEMC Ltd., Series 2005-8A, Class A3, 144A | 1.150(f) | 06/23/17 | 267 | 267,258 | ||||||||||
|
| |||||||||||||
1,773,494 | ||||||||||||||
Collateralized Loan Obligations 8.0% | ||||||||||||||
AIMCO CLO, Series 2014-AA, Class B1, 144A | 1.815(f) | 07/20/26 | 3,000 | 2,989,800 | ||||||||||
ALM Ltd., | 2.274(f) | 10/17/26 | 2,000 | 1,998,890 | ||||||||||
Series 2014-14A, Class A2, 144A | 2.379(f) | 07/28/26 | 1,000 | 1,002,155 | ||||||||||
Anchorage Capital CLO Ltd., | 2.026(f) | 07/13/25 | 1,000 | 963,083 | ||||||||||
Series 2014-3A, Class A2A, 144A | 2.529(f) | 04/28/26 | 250 | 251,909 | ||||||||||
Atlas Senior Loan Fund Ltd., Series 2014-6A, Class B, 144A | 2.675(f) | 10/15/26 | 1,000 | 1,004,779 | ||||||||||
Battalion CLO Ltd., Series 2014-5A, | 2.425(f) | 04/17/26 | 500 | 498,695 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 21 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||
Collateralized Loan Obligations (cont’d.) | ||||||||||||||
Brookside Mill CLO Ltd., Series 2013-1A, Class B1, 144A | 2.024%(f) | 04/17/25 | 3,000 | $ | 2,912,770 | |||||||||
Catamaran CLO Ltd., Series 2014-1A, | 2.075(f) | 04/20/26 | 5,000 | 4,847,029 | ||||||||||
Four Corners CLO Ltd., Series 2006-3A, | 0.526(f) | 07/22/20 | 235 | 233,870 | ||||||||||
KVK CLO Ltd., | 1.847(f) | 05/15/26 | 250 | 250,189 | ||||||||||
Series 2014-1A, Class B, 144A | 2.507(f) | 05/15/26 | 250 | 249,945 | ||||||||||
Series 2014-3A, Class B, 144A | 2.375(f) | 10/15/26 | 1,000 | 985,039 | ||||||||||
LightPoint Pan-European CLO PLC, Series 2006-1A, Class A, 144A | 0.250(f) | 01/31/22 | EUR | 21 | 24,001 | |||||||||
Magnetite VI Ltd., Series 2012-6A, | 3.021(f) | 09/15/23 | 2,000 | 2,020,333 | ||||||||||
Neuberger Berman CLO XII Ltd., Series 2012-12AR, Class BR, 144A | 2.377(f) | 07/25/23 | 2,000 | 1,986,481 | ||||||||||
NZCG Funding Ltd., Series 2015-2A, | 2.621(f) | 04/27/27 | 1,000 | 990,900 | ||||||||||
Regatta IV Funding Ltd., Series 2014-1A, Class B, 144A | 2.287(f) | 07/25/26 | 1,000 | 993,701 | ||||||||||
Rosedale CLO Ltd., Series I-A, Class B, 144A | 0.748(f) | 07/24/21 | 500 | 494,610 | ||||||||||
RYE Harbour CLO Ltd., Series 2015-1A, Class B2, 144A | 2.630 | 10/21/28 | EUR | 2,000 | 2,245,702 | |||||||||
Shackleton CLO Ltd., | 3.440 | 04/15/25 | 250 | 243,000 | ||||||||||
Series 2014-6A, Class B1, 144A | 2.424(f) | 07/17/26 | 2,000 | 1,993,780 | ||||||||||
Slater Mill Loan Fund LP, Series 2012-1A, Class B, 144A | 2.907(f) | 08/17/22 | 250 | 251,844 | ||||||||||
THL Credit Wind River CLO Ltd., Series 2014-1A, Class B2, 144A | 4.730 | 04/18/26 | 1,300 | 1,321,954 | ||||||||||
|
| |||||||||||||
30,754,459 | ||||||||||||||
Non-Residential Mortgage-Backed Security 0.1% |
| |||||||||||||
Springleaf Funding Trust, Series 2015-AA, Class A, 144A | 3.160 | 11/15/24 | 600 | 605,603 | ||||||||||
Residential Mortgage-Backed Securities 12.3% |
| |||||||||||||
ACE Securities Corp. Home Equity Loan Trust, | 1.081(f) | 09/25/33 | 597 | 559,384 |
See Notes to Financial Statements.
22 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||
Residential Mortgage-Backed Securities (cont’d.) |
| |||||||||||||
Series 2005-HE2, Class M4 | 1.141%(f) | 04/25/35 | 1,000 | $ | 959,065 | |||||||||
Aegis Asset-Backed Securities Trust, Mortgage Pass-Through Certificates, Series 2004-2, Class A5 | 1.081(f) | 06/25/34 | 347 | 343,767 | ||||||||||
Aire Valley Mortgages PLC, | 0.385(f) | 09/20/66 | EUR | 1,242 | 1,369,581 | |||||||||
Series 2006-1A, Class 1A, 144A | 0.490(f) | 09/20/66 | 2,802 | 2,714,713 | ||||||||||
Series 2006-1X, Class 1B2, RegS | 0.425(f) | 09/20/66 | EUR | 1,000 | 1,059,383 | |||||||||
Series 2007-1A, Class 2A1, 144A | 0.510(f) | 09/20/66 | 835 | 807,779 | ||||||||||
Series 2007-1X, Class 2A2, RegS | 0.285(f) | 09/20/66 | EUR | 991 | 1,086,660 | |||||||||
Ameriquest Mortgage Securities, Inc., | 3.031(f) | 08/25/32 | 571 | 535,927 | ||||||||||
Series 2004-R8, Class M1 | 1.141(f) | 09/25/34 | 400 | 399,020 | ||||||||||
Argent Securities, Inc., Asset-Backed | 1.006(f) | 05/25/34 | 165 | 157,064 | ||||||||||
Series 2005-W2, Class A2C | 0.541(f) | 10/25/35 | 1,452 | 1,370,560 | ||||||||||
Asset-Backed Securities Corp. Home Equity Loan Trust, Series 2004-HE1, Class M1 | 1.232(f) | 01/15/34 | 1,103 | 1,060,724 | ||||||||||
Banc of America Funding Trust, Series 2014-R5, Class 1A1, 144A | 1.903(f) | 09/26/45 | 930 | 917,076 | ||||||||||
Bear Stearns Asset-Backed Securities Trust, | 1.081(f) | 03/25/34 | 276 | 262,492 | ||||||||||
Series 2004-HE3, Class M2 | 1.906(f) | 04/25/34 | 247 | 225,242 | ||||||||||
Chase Funding Loan Acquisition Trust, Series 2004-AQ1, Class A2 | 0.981(f) | 05/25/34 | 391 | 382,770 | ||||||||||
Citicorp Residential Mortgage Trust, Series 2006-2, Class A4 | 5.775 | 09/25/36 | 451 | 474,185 | ||||||||||
Countrywide Asset-Backed Certificates, Series 2002-5, Class MV1 | 1.681(f) | 03/25/33 | 181 | 177,787 | ||||||||||
Finance America Mortgage Loan Trust, Series 2004-2, Class M1 | 1.006(f) | 08/25/34 | 982 | 908,089 | ||||||||||
Fremont Home Loan Trust, | 0.856(f) | 02/25/34 | 421 | 383,757 | ||||||||||
Series 2004-B, Class M1 | 1.051(f) | 05/25/34 | 910 | 844,758 | ||||||||||
Granite Master Issuer PLC, | 0.328(f) | 12/20/54 | EUR | 250 | 278,186 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 23 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||
Residential Mortgage-Backed Securities (cont’d.) |
| |||||||||||||
Series 2006-2, Class B3, RegS | 0.248%(f) | 12/20/54 | EUR | 1,100 | $ | 1,219,821 | ||||||||
Series 2007-1, Class 5A1, RegS | 0.725(f) | 12/20/54 | GBP | 952 | 1,454,580 | |||||||||
Series 2007-1, Class 6A1, RegS | 0.695(f) | 12/20/54 | GBP | 183 | 279,167 | |||||||||
Series 2007-2, Class 3B2, RegS | 0.291(f) | 12/17/54 | EUR | 2,000 | 2,221,000 | |||||||||
Granite Mortgages PLC, | 1.402(f) | 01/20/44 | EUR | 484 | 543,538 | |||||||||
Series 2004-1, Class 2M, RegS | 1.165(f) | 03/20/44 | EUR | 1,000 | 1,122,963 | |||||||||
Series 2004-3, Class 3B, RegS | 1.266(f) | 09/20/44 | GBP | 1,000 | 1,529,771 | |||||||||
GSAMP Trust, | 1.156(f) | 11/25/33 | 165 | 159,935 | ||||||||||
Series 2005-HE5, Class M1 | 0.601(f) | 11/25/35 | 1,000 | 955,813 | ||||||||||
Home Equity Asset Trust, | 1.036(f) | 08/25/34 | 592 | 562,979 | ||||||||||
Series 2005-9, Class 2A4 | 0.521(f) | 04/25/36 | 813 | 797,115 | ||||||||||
HSBC Home Equity Loan Trust U.S.A., Series 2007-2, Class A4 | 0.481(f) | 07/20/36 | 385 | 380,402 | ||||||||||
Long Beach Mortgage Loan Trust, Series 2004-3, Class M1 | 1.036(f) | 07/25/34 | 409 | 394,383 | ||||||||||
LSTAR Securities Investment Trust, | 3.279(f) | 09/01/21 | 1,427 | 1,432,670 | ||||||||||
Series 2014-2 Class A, 144A | 2.179(f) | 12/01/21 | 944 | 930,721 | ||||||||||
Series 2015-1, Class A, 144A | 2.179(f) | 01/01/20 | 1,968 | 1,957,079 | ||||||||||
Series 2015-2, Class A, 144A | 2.179(f) | 01/01/20 | 1,471 | 1,454,922 | ||||||||||
Series 2015-5, Class A1, 144A | 2.181(f) | 04/01/20 | 1,200 | 1,184,280 | ||||||||||
Mastr Asset-Backed Securities Trust, Series 2004-OPT2, Class A1 | 0.881(f) | 09/25/34 | 375 | 350,403 | ||||||||||
Merrill Lynch Mortgage Investors Trust, Series 2004-HE2, Class M1 | 1.381(f) | 08/25/35 | 189 | 180,975 | ||||||||||
Morgan Stanley ABS Capital I, Inc. Trust, | 1.231(f) | 09/25/33 | 263 | 249,294 | ||||||||||
Series 2004-NC1, Class M1 | 1.231(f) | 12/27/33 | 302 | 291,385 | ||||||||||
Series 2004-OP1, Class M1 | 1.051(f) | 11/25/34 | 437 | 398,056 | ||||||||||
Series 2004-WMC1, Class M1 | 1.111(f) | 06/25/34 | 522 | 504,814 | ||||||||||
Series 2004-WMC2, Class M1 | 1.096(f) | 07/25/34 | 191 | 181,761 | ||||||||||
Morgan Stanley Dean Witter Capital I, Inc. Trust, Series 2002-AM3, Class A3 | 1.161(f) | 02/25/33 | 360 | 316,608 |
See Notes to Financial Statements.
24 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||
Residential Mortgage-Backed Securities (cont’d.) |
| |||||||||||||
New Century Home Equity Loan Trust, | 1.306%(f) | 10/25/33 | 325 | $ | 312,095 | |||||||||
Series 2005-C, Class A2C | 0.431(f) | 12/25/35 | 577 | 564,525 | ||||||||||
Option One Mortgage Acceptance Corp., Asset-Backed Certificates, Series 2003-6, Class A2 | 0.841(f) | 11/25/33 | 242 | 227,573 | ||||||||||
Popular ABS Mortgage Pass-Through Trust, | 4.768 | 09/25/34 | 146 | 139,118 | ||||||||||
Structured Asset Investment Loan Trust, | 1.606(f) | 04/25/33 | 1,623 | 1,602,482 | ||||||||||
Series 2004-2, Class A4 | 0.886(f) | 03/25/34 | 957 | 885,464 | ||||||||||
Series 2004-8, Class A8 | 1.181(f) | 09/25/34 | 376 | 371,748 | ||||||||||
Structured Asset Securities Corp. Mortgage Loan Trust, Series 2005-NC2, Class M3 | 0.611(f) | 05/25/35 | 530 | 512,954 | ||||||||||
VOLT XXVII LLC, Series 2014-NPL7, | 3.375 | 08/27/57 | 973 | 973,669 | ||||||||||
VOLT XXX LLC, Series 2015-NPL1, | 3.625 | 10/25/57 | 985 | 986,916 | ||||||||||
VOLT XXXI LLC, Series 2015-NPL2, | 3.375 | 02/25/55 | 972 | 971,812 | ||||||||||
VOLT XXXIV LLC, Series 2015-NPL7, | 3.250 | 02/25/55 | 1,400 | 1,398,536 | ||||||||||
Wells Fargo Mortgage-Backed Securities Trust, | 5.500 | 05/25/37 | 331 | 341,297 | ||||||||||
|
| |||||||||||||
47,620,593 | ||||||||||||||
|
| |||||||||||||
TOTAL ASSET-BACKED SECURITIES | 80,754,149 | |||||||||||||
|
| |||||||||||||
BANK LOANS(f) 0.5% | ||||||||||||||
Consumer 0.1% | ||||||||||||||
OGF SA (France), Private Placement | 4.000 | 10/30/20 | EUR | 240 | 272,749 | |||||||||
Financials 0.1% | ||||||||||||||
Scandlines GmbH (Germany) | 4.500 | 11/04/20 | EUR | 314 | 355,601 | |||||||||
Gaming | ||||||||||||||
CCM Merger, Inc. | 4.500 | 08/06/21 | 118 | 119,049 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 25 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
BANK LOANS(f) (Continued) |
| |||||||||||||
Healthcare & Pharmaceutical 0.1% | ||||||||||||||
Alere, Inc. | 3.184% | 06/30/16 | 72 | $ | 72,048 | |||||||||
Grifols SA | 3.269 | 02/26/21 | 173 | 173,683 | ||||||||||
RPI Finance Trust | 3.250 | 11/09/18 | 146 | 145,737 | ||||||||||
|
| |||||||||||||
391,468 | ||||||||||||||
Technology 0.2% | ||||||||||||||
Avago Technologies Finance Pte. Ltd. (Singapore) | 3.750 | 05/06/21 | 259 | 260,145 | ||||||||||
First Data Corp. | 3.775 | 09/24/18 | 300 | 300,469 | ||||||||||
TransUnion LLC/TransUnion Financing Corp. | 4.000 | 04/09/21 | 248 | 248,531 | ||||||||||
|
| |||||||||||||
809,145 | ||||||||||||||
|
| |||||||||||||
TOTAL BANK LOANS | 1,948,012 | |||||||||||||
|
| |||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES 6.5% |
| |||||||||||||
Citigroup Commercial Mortgage Trust, | 0.491(f) | 05/10/47 | 27,500 | 954,580 | ||||||||||
COMM Mortgage Trust, | 3.530 | 08/10/47 | 1,000 | 1,050,659 | ||||||||||
Series 2014-UBS4, Class XB, IO, 144A | 0.284(f) | 08/10/47 | 50,000 | 950,650 | ||||||||||
Series 2015-3BP, Class A, 144A | 3.178 | 02/10/35 | 1,800 | 1,829,315 | ||||||||||
Credit Suisse Mortgage Trust, Series 2014-ICE, Class X1CP, IO, 144A | 1.686(f) | 04/15/27 | 32,000 | 515,331 | ||||||||||
FHLMC Multifamily Structured Pass-Through Certificates, | 1.184(f) | 01/25/20 | 20,522 | 826,538 | ||||||||||
Series K007, Class X1, IO | 1.345(f) | 04/25/20 | 31,538 | 1,376,585 | ||||||||||
Series K008, Class X1, IO | 1.807(f) | 06/25/20 | 13,997 | 898,436 | ||||||||||
Series K019, Class X1, IO | 1.868(f) | 03/25/22 | 10,644 | 1,019,218 | ||||||||||
Series K025, Class X1, IO | 1.023(f) | 10/25/22 | 20,460 | 1,108,650 | ||||||||||
Series Q001, Class XA, IO | 2.382(f) | 02/25/32 | 7,033 | 1,402,969 | ||||||||||
GE Capital Commercial Mortgage Corp., Series 2005-C3, Class AJ | 5.065(f) | 07/10/45 | 1,600 | 1,611,632 | ||||||||||
GS Mortgage Securities Trust, | 1.055(f) | 08/10/46 | 39,386 | 1,838,411 | ||||||||||
Series 2014-GC20, Class XB, IO | 0.500(f) | 04/10/47 | 30,000 | 1,030,980 | ||||||||||
Series 2014-GC22, Class XB, IO | 0.410(f) | 06/10/47 | 35,000 | 945,084 | ||||||||||
Series 2014-GC24, Class XB, IO | 0.021(f) | 09/10/47 | 83,262 | 136,966 | ||||||||||
Series 2014-GC26, Class XB, IO | 0.296(f) | 11/10/47 | 56,483 | 1,659,866 |
See Notes to Financial Statements.
26 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) |
| |||||||||||||
JPMorgan Chase Commercial Mortgage Securities Trust, | 4.842%(f) | 07/15/42 | 1,000 | $ | 1,002,484 | |||||||||
Series 2005-LDP3, Class AJ | 5.168(f) | 08/15/42 | 1,000 | 1,008,094 | ||||||||||
Series 2014-FL5, Class XCP, IO, 144A | 0.698(f) | 05/15/16 | 247,850 | 580,068 | ||||||||||
UBS-Barclays Commercial Mortgage Trust, | 1.900(f) | 05/10/63 | 6,265 | 463,436 | ||||||||||
Wachovia Bank Commercial Mortgage Trust, | 5.290(f) | 07/15/42 | 1,000 | 1,008,703 | ||||||||||
Series 2007-C32, Class A1A | 5.903(f) | 06/15/49 | 1,805 | 1,915,468 | ||||||||||
|
| |||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES | 25,134,123 | |||||||||||||
|
| |||||||||||||
CORPORATE BONDS 14.1% | ||||||||||||||
Aerospace & Defense 0.1% | ||||||||||||||
Textron, Inc., Sr. Unsec’d. Notes | 7.250 | 10/01/19 | 200 | 237,436 | ||||||||||
Airlines 0.2% | ||||||||||||||
Continental Airlines, Inc., Pass-Through Trust, | 4.750 | 01/12/21 | 80 | 85,723 | ||||||||||
Delta Air Lines, Inc., Pass-Through Trust, | 6.821 | 08/10/22 | 182 | 213,978 | ||||||||||
Series 2010-2, Class A | 4.950 | 05/23/19 | 17 | 18,144 | ||||||||||
Series 2011-1, Class A | 5.300 | 04/15/19 | 170 | 184,805 | ||||||||||
UAL Pass-Through Trust, Pass-Through | 6.636 | 07/02/22 | 95 | 102,744 | ||||||||||
|
| |||||||||||||
605,394 | ||||||||||||||
Banking 3.7% | ||||||||||||||
Bank of America Corp., | 6.500(f) | 12/31/49 | 1,000 | 1,062,500 | ||||||||||
Series K, Jr. Sub. Notes | 8.000(f) | 12/29/49 | 235 | 251,156 | ||||||||||
Series M, Jr. Sub. Notes | 8.125(f) | 12/29/49 | 700 | 756,000 | ||||||||||
Sr. Unsec’d. Notes, MTN(e) | 5.875 | 02/07/42 | 410 | 505,955 | ||||||||||
Citigroup, Inc., | 4.500 | 01/14/22 | 425 | 464,211 | ||||||||||
Sr. Unsec’d. Notes | 8.125 | 07/15/39 | 110 | 167,735 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 27 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||
Banking (cont’d.) |
| |||||||||||||
Sr. Unsec’d. Notes | 8.500% | 05/22/19 | 605 | $ | 748,559 | |||||||||
Goldman Sachs Group, Inc. (The), | 5.700(f) | 12/31/49 | 1,645 | 1,653,225 | ||||||||||
Sr. Unsec’d. Notes(e) | 5.250 | 07/27/21 | 1,200 | 1,357,912 | ||||||||||
Sr. Unsec’d. Notes, MTN | 4.800 | 07/08/44 | 225 | 239,162 | ||||||||||
Sub. Notes | 6.750 | 10/01/37 | 185 | 232,380 | ||||||||||
JPMorgan Chase & Co., | 5.000(f) | 12/31/49 | 1,000 | 982,500 | ||||||||||
Jr. Sub. Notes | 5.300(f) | 12/31/49 | 1,410 | 1,408,238 | ||||||||||
Jr. Sub. Notes | 7.900(f) | 04/29/49 | 450 | 479,250 | ||||||||||
Sub. Notes(e) | 3.875 | �� | 09/10/24 | 2,000 | 2,020,136 | |||||||||
Morgan Stanley, | 5.450(f) | 12/31/49 | 1,415 | 1,425,612 | ||||||||||
Sr. Unsec’d. Notes | 6.375 | 07/24/42 | 325 | 420,017 | ||||||||||
|
| |||||||||||||
14,174,548 | ||||||||||||||
Brokerage 0.1% | ||||||||||||||
Jefferies Group LLC, Sr. Unsec’d. Notes | 6.875 | 04/15/21 | 500 | 568,498 | ||||||||||
Lehman Brothers Holdings, Inc., Sr. Unsec’d. Notes(c) | 6.875 | 05/02/18 | 100 | 11,750 | ||||||||||
|
| |||||||||||||
580,248 | ||||||||||||||
Building Materials & Construction 0.6% | ||||||||||||||
Building Materials Corp. of America, | 5.375 | 11/15/24 | 525 | 538,125 | ||||||||||
KB Home, Gtd. Notes | 7.500 | 09/15/22 | 1,000 | 1,045,000 | ||||||||||
Owens Corning, Gtd. Notes | 4.200 | 12/15/22 | 270 | 279,938 | ||||||||||
Toll Brothers Finance Corp., Gtd. Notes | 5.150 | 05/15/15 | 420 | 420,210 | ||||||||||
|
| |||||||||||||
2,283,273 | ||||||||||||||
Cable 0.7% | ||||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | ||||||||||||||
Gtd. Notes | 7.000 | 01/15/19 | 1,000 | 1,038,750 | ||||||||||
Gtd. Notes, 144A | 5.875 | 05/01/27 | 675 | 664,875 | ||||||||||
CSC Holdings LLC, | 6.750 | 11/15/21 | 325 | 367,250 |
See Notes to Financial Statements.
28 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||
Cable (cont’d.) |
| |||||||||||||
Sr. Unsec’d. Notes | 8.625% | 02/15/19 | 185 | $ | 214,249 | |||||||||
Time Warner Cable, Inc., Gtd. Notes | 8.750 | 02/14/19 | 300 | 354,137 | ||||||||||
|
| |||||||||||||
2,639,261 | ||||||||||||||
Capital Goods 0.6% | ||||||||||||||
Actuant Corp., Gtd. Notes | 5.625 | 06/15/22 | 400 | 414,000 | ||||||||||
ERAC USA Finance LLC, Gtd. Notes, 144A | 7.000 | 10/15/37 | 190 | 248,906 | ||||||||||
United Rentals North America, Inc., | 7.375 | 05/15/20 | 500 | 539,145 | ||||||||||
Gtd. Notes | 7.625 | 04/15/22 | 750 | 826,875 | ||||||||||
Xylem, Inc., Sr. Unsec’d. Notes | 4.875 | 10/01/21 | 225 | 246,711 | ||||||||||
|
| |||||||||||||
2,275,637 | ||||||||||||||
Chemicals 0.2% | ||||||||||||||
Ashland, Inc., | 4.750 | 08/15/22 | 300 | 307,500 | ||||||||||
Sr. Unsec’d. Notes | 3.875 | 04/15/18 | 175 | 180,250 | ||||||||||
Dow Chemical Co. (The), Sr. Unsec’d. Notes | 9.400 | 05/15/39 | 152 | 243,106 | ||||||||||
|
| |||||||||||||
730,856 | ||||||||||||||
Electric 1.5% | ||||||||||||||
AES Corp., Sr. Unsec’d. Notes | 7.375 | 07/01/21 | 1,000 | 1,112,810 | ||||||||||
DPL, Inc., Sr. Unsec’d. Notes, 144A | 6.750 | 10/01/19 | 700 | 749,000 | ||||||||||
Dynegy, Inc., | 6.750 | 11/01/19 | 650 | 679,250 | ||||||||||
Gtd. Notes, 144A | 7.375 | 11/01/22 | 350 | 372,750 | ||||||||||
Gtd. Notes, 144A | 7.625 | 11/01/24 | 1,000 | 1,075,000 | ||||||||||
NRG Energy, Inc., Gtd. Notes | 8.250 | 09/01/20 | 1,500 | 1,582,500 | ||||||||||
Public Service Co. of New Mexico, Sr. Unsec’d. Notes | 7.950 | 05/15/18 | 50 | 58,740 | ||||||||||
|
| |||||||||||||
5,630,050 | ||||||||||||||
Energy - Other 0.1% | ||||||||||||||
Anadarko Petroleum Corp., Sr. Unsec’d. Notes | 6.450 | 09/15/36 | 35 | 43,249 | ||||||||||
Nabors Industries, Inc., Gtd. Notes | 4.625 | 09/15/21 | 170 | 168,931 | ||||||||||
|
| |||||||||||||
212,180 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 29 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||
Foods 0.4% | ||||||||||||||
Aramark Services, Inc., Gtd. Notes | 5.750% | 03/15/20 | 475 | $ | 495,187 | |||||||||
Ingles Markets, Inc., Sr. Unsec’d. Notes | 5.750 | 06/15/23 | 675 | 702,000 | ||||||||||
Tops Holding Corp./Tops Markets LLC, | 8.875 | 12/15/17 | 350 | 367,938 | ||||||||||
|
| |||||||||||||
1,565,125 | ||||||||||||||
Gaming 0.8% | ||||||||||||||
MGM Resorts International, Gtd. Notes | 6.625 | 12/15/21 | 500 | 535,000 | ||||||||||
MTR Gaming Group, Inc., Sec’d. Notes | 11.500 | 08/01/19 | 1,000 | 1,077,500 | ||||||||||
Pinnacle Entertainment, Inc., | 7.500 | 04/15/21 | 205 | 216,788 | ||||||||||
Gtd. Notes | 8.750 | 05/15/20 | 650 | 683,312 | ||||||||||
Scientific Games International, Inc., Gtd. Notes, 144A | 10.000 | 12/01/22 | 750 | 695,625 | ||||||||||
|
| |||||||||||||
3,208,225 | ||||||||||||||
Healthcare & Pharmaceutical 1.2% | ||||||||||||||
CHS/Community Health Systems, Inc., | 6.875 | 02/01/22 | 1,000 | 1,061,250 | ||||||||||
Gtd. Notes | 7.125 | 07/15/20 | 750 | 804,375 | ||||||||||
HCA, Inc., Sr. Sec’d. Notes | 6.500 | 02/15/20 | 1,500 | 1,710,000 | ||||||||||
Tenet Healthcare Corp., Sr. Unsec’d. Notes | 8.125 | 04/01/22 | 1,000 | 1,091,250 | ||||||||||
|
| |||||||||||||
4,666,875 | ||||||||||||||
Insurance 0.1% | ||||||||||||||
Allied World Assurance Co. Holdings Ltd., Gtd. Notes | 5.500 | 11/15/20 | 30 | 33,822 | ||||||||||
Chubb Corp. (The), Jr. Sub. Notes | 6.375(f) | 03/29/67 | 140 | 148,400 | ||||||||||
Liberty Mutual Group, Inc., Sr. Unsec’d. Notes, 144A | 6.500 | 03/15/35 | 90 | 110,222 | ||||||||||
Lincoln National Corp., Jr. Sub. Notes | 6.050(f) | 04/20/67 | 30 | 28,650 | ||||||||||
Progressive Corp. (The), Jr. Sub. Notes | 6.700(f) | 06/15/37 | 100 | 105,063 | ||||||||||
Willis Group Holdings PLC, Gtd. Notes | 4.125 | 03/15/16 | 100 | 102,356 | ||||||||||
|
| |||||||||||||
528,513 |
See Notes to Financial Statements.
30 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||
Media & Entertainment 1.4% | ||||||||||||||
21st Century Fox America, Inc., | 6.150% | 03/01/37 | 415 | $ | 508,809 | |||||||||
Gtd. Notes | 6.900 | 08/15/39 | 60 | 80,364 | ||||||||||
AMC Networks, Inc., Gtd. Notes | 7.750 | 07/15/21 | 1,000 | 1,090,000 | ||||||||||
Cinemark USA, Inc., Gtd. Notes | 4.875 | 06/01/23 | 1,000 | 1,011,200 | ||||||||||
Historic TW, Inc., Gtd. Notes | 6.625 | 05/15/29 | 225 | 285,262 | ||||||||||
Liberty Interactive LLC, Sr. Unsec’d. Notes | 8.250 | 02/01/30 | 500 | 553,750 | ||||||||||
NAI Entertainment Holdings/NAI Entertainment | 5.000 | 08/01/18 | 1,000 | 1,032,500 | ||||||||||
RR Donnelley & Sons Co., Sr. Unsec’d. Notes | 8.600 | 08/15/16 | 450 | 484,875 | ||||||||||
Viacom, Inc., Sr. Unsec’d. Notes | 4.500 | 02/27/42 | 233 | 212,973 | ||||||||||
|
| |||||||||||||
5,259,733 | ||||||||||||||
Metals 0.1% | ||||||||||||||
Peabody Energy Corp., Gtd. Notes | 6.000 | 11/15/18 | 400 | 315,250 | ||||||||||
Non-Captive Finance 0.1% | ||||||||||||||
International Lease Finance Corp., | 5.750 | 05/15/16 | 75 | 77,531 | ||||||||||
Sr. Unsec’d. Notes | 6.250 | 05/15/19 | 125 | 138,125 | ||||||||||
Navient Corp., | 6.000 | 01/25/17 | 75 | 78,563 | ||||||||||
Sr. Unsec’d. Notes, MTN | 8.450 | 06/15/18 | 225 | 251,032 | ||||||||||
|
| |||||||||||||
545,251 | ||||||||||||||
Packaging | ||||||||||||||
Greif, Inc., Sr. Unsec’d. Notes | 7.750 | 08/01/19 | 140 | 157,150 | ||||||||||
Paper 0.2% | ||||||||||||||
International Paper Co., | 6.000 | 11/15/41 | 130 | 149,417 | ||||||||||
Sr. Unsec’d. Notes | 7.300 | 11/15/39 | 75 | 97,430 | ||||||||||
MeadWestvaco Corp., Sr. Unsec’d. Notes | 7.375 | 09/01/19 | 450 | 534,393 | ||||||||||
Rock-Tenn Co., Gtd. Notes | 4.450 | 03/01/19 | 175 | 187,409 | ||||||||||
|
| |||||||||||||
968,649 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 31 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||
Pipelines & Other 0.2% | ||||||||||||||
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., | 8.625% | 06/15/20 | 750 | $ | 781,875 | |||||||||
Railroads 0.1% | ||||||||||||||
Norfolk Southern Corp., Sr. Unsec’d. Notes | 6.000 | 03/15/2105 | 300 | 370,101 | ||||||||||
Real Estate Investment Trusts 0.1% | ||||||||||||||
MPT Operating Partnership LP/MPT Finance Corp., Gtd. Notes, MTN | 5.750 | 10/01/20 | EUR | 200 | 244,220 | |||||||||
Technology 1.1% | ||||||||||||||
Brightstar Corp., Gtd. Notes, 144A | 9.500 | 12/01/16 | 1,000 | 1,041,250 | ||||||||||
CommScope, Inc., Gtd. Notes, 144A | 5.000 | 06/15/21 | 200 | 200,000 | ||||||||||
First Data Corp., Gtd. Notes | 12.625 | 01/15/21 | 1,250 | 1,475,625 | ||||||||||
Jabil Circuit, Inc., Sr. Unsec’d. Notes | 4.700 | 09/15/22 | 655 | 679,563 | ||||||||||
Seagate HDD Cayman, | 3.750 | 11/15/18 | 305 | 319,123 | ||||||||||
Gtd. Notes | 6.875 | 05/01/20 | 273 | 282,386 | ||||||||||
SunGard Data Systems, Inc., Gtd. Notes | 7.625 | 11/15/20 | 150 | 158,625 | ||||||||||
|
| |||||||||||||
4,156,572 | ||||||||||||||
Telecommunications 0.5% | ||||||||||||||
Qwest Corp., Sr. Unsec’d. Notes | 6.500 | 06/01/17 | 465 | 505,693 | ||||||||||
Sprint Capital Corp., Gtd. Notes | 6.900 | 05/01/19 | 1,000 | 1,029,830 | ||||||||||
Sprint Communications, Inc., Sr. Unsec’d. Notes | 7.000 | 08/15/20 | 400 | 406,000 | ||||||||||
|
| |||||||||||||
1,941,523 | ||||||||||||||
Tobacco | ||||||||||||||
Altria Group, Inc., Gtd. Notes | 9.950 | 11/10/38 | 81 | 137,556 | ||||||||||
Lorillard Tobacco Co., Gtd. Notes | 8.125 | 06/23/19 | 30 | 36,636 | ||||||||||
|
| |||||||||||||
174,192 | ||||||||||||||
|
| |||||||||||||
TOTAL CORPORATE BONDS | 54,252,137 | |||||||||||||
|
|
See Notes to Financial Statements.
32 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
MUNICIPAL BONDS 0.9% | ||||||||||||||
Connecticut 0.1% | ||||||||||||||
State of Connecticut Special Tax Revenue, Revenue Bonds, BABs | 5.459% | 11/01/30 | 275 | $ | 327,720 | |||||||||
New York 0.1% | ||||||||||||||
City of New York, NY, GO, BABs | 5.968 | 03/01/36 | 250 | 319,248 | ||||||||||
Puerto Rico 0.7% | ||||||||||||||
Commonwealth of Puerto Rico, | 2.684(f) | 07/01/20 | 300 | 290,220 | ||||||||||
GO | 4.000 | 07/01/15 | 380 | 381,311 | ||||||||||
GO | 4.000 | 07/01/16 | 240 | 244,872 | ||||||||||
GO | 5.000 | 07/01/15 | 70 | 70,344 | ||||||||||
GO | 5.250 | 07/01/17 | 125 | 128,145 | ||||||||||
GO | 5.500 | 07/01/16 | 345 | 355,871 | ||||||||||
Puerto Rico Electric Power Authority, Series JJ, Revenue Bonds | 5.250 | 07/01/15 | 10 | 10,051 | ||||||||||
Puerto Rico Highways & Transportation | 7.480(h) | 07/01/27 | 200 | 81,830 | ||||||||||
Series E, Revenue Bonds | 5.500 | 07/01/17 | 250 | 260,160 | ||||||||||
Puerto Rico Municipal Finance Agency, | 5.250 | 07/01/16 | 130 | 132,203 | ||||||||||
Series C, Revenue Bonds | 5.000 | 08/01/15 | 215 | 215,757 | ||||||||||
Series C, Revenue Bonds | 5.000 | 08/01/16 | 175 | 175,639 | ||||||||||
Puerto Rico Sales Tax Financing Corp., Revenue Bonds, CABs | 4.460(h) | 08/01/41 | 1,265 | 397,349 | ||||||||||
|
| |||||||||||||
2,743,752 | ||||||||||||||
Tennessee | ||||||||||||||
Metropolitan Government of Nashville & Davidson County Convention Center Authority, Revenue Bonds, BABs | 6.731 | 07/01/43 | 125 | 163,826 | ||||||||||
|
| |||||||||||||
TOTAL MUNICIPAL BONDS | 3,554,546 | |||||||||||||
|
| |||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS 0.5% |
| |||||||||||||
Federal National Mortgage Assoc. | 5.375 | 12/07/28 | GBP | 275 | 546,855 | |||||||||
Tennessee Valley Authority, | 5.350 | 06/07/21 | GBP | 430 | 781,667 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 33 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
| |||||||||||||
Sr. Unsec’d. Notes | 5.625% | 06/07/32 | GBP | 191 | $ | 397,357 | ||||||||
|
| |||||||||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | 1,725,879 | |||||||||||||
|
|
|
| Shares |
| |||||||||
PREFERRED STOCK | ||||||||||||
Banking | ||||||||||||
Citigroup Capital XIII, 7.875%, (Capital Security, fixed to floating preferred) | 4,000 | 103,560 | ||||||||||
|
| |||||||||||
TOTAL LONG-TERM INVESTMENTS | 371,557,389 | |||||||||||
|
|
Counterparty | Notional |
| ||||||||
SHORT-TERM INVESTMENTS 0.3% | ||||||||||
OPTIONS PURCHASED | ||||||||||
Call Options 0.2% | ||||||||||
Euro/Polish Zloty @ FX Rate 4.900, expiring 07/06/15 | JPMorgan Chase | EUR | 2,100 | 75 | ||||||
Euro/Polish Zloty @ FX Rate 4.900, expiring 01/11/16 | JPMorgan Chase | EUR | 2,100 | 4,313 | ||||||
Euro/South African Rand @ FX Rate 20.000, expiring 06/18/15 | Citigroup Global Markets | EUR | 2,800 | 31 | ||||||
Euro/Turkish Lira @ FX Rate 3.850, expiring 07/06/15 | JPMorgan Chase | EUR | 4,250 | 2,789 | ||||||
Interest Rate Swap Options, | ||||||||||
Receive a fixed rate of 1.00% and pay a floating rate based on 3-month LIBOR, expiring 10/28/15 | Citigroup Global Markets | 11,660 | 24,644 | |||||||
Receive a fixed rate of 1.25% and pay a floating rate based on 3-month LIBOR, expiring 08/19/15 | Citigroup Global Markets | 20,000 | 106,987 | |||||||
Receive a fixed rate of 1.50% and pay a floating rate based on 3-month LIBOR, expiring 04/28/16 | Citigroup Global Markets | 7,930 | 54,693 | |||||||
Receive a fixed rate of 1.70% and pay a floating rate based on 3-month LIBOR, expiring 02/23/16 | Citigroup Global Markets | 15,000 | 148,511 |
See Notes to Financial Statements.
34 |
Description | Counterparty | Notional Amount (000)# | Value (Note 1) | |||||||
OPTIONS PURCHASED (Continued) |
| |||||||||
Call Options (cont’d.) |
| |||||||||
Turkish Lira/Japanese Yen @ FX Rate 50.000, expiring 02/08/16 | JPMorgan Chase | TRY | 8,500 | $ | 6,858 | |||||
United States Dollar/Chinese Renminbi @ FX Rate 7.250, expiring 02/29/16 | Barclays Capital Group | 4,000 | 6,062 | |||||||
United States Dollar/Chinese Renminbi @ FX Rate 7.250, expiring 05/29/15 | Credit Suisse First Boston Corp. | 4,000 | 5 | |||||||
United States Dollar/Czech Koruna @ FX Rate 23.000, expiring 06/23/15 | UBS AG | 5,000 | 298,071 | |||||||
United States Dollar/Japanese Yen @ FX Rate 125.000, expiring 06/29/15 | Citigroup Global Markets | 8,000 | 15,298 | |||||||
United States Dollar/Mexican Peso @ FX Rate 17.000, expiring 12/03/15 | UBS AG | 1,000 | 15,077 | |||||||
United States Dollar/New Zealand Dollar @ FX Rate 0.500, expiring 09/07/15 | Citigroup Global Markets | 3,000 | 248 | |||||||
United States Dollar/South African Rand @ FX Rate 15.000, expiring 12/03/15 | Credit Suisse First Boston Corp. | 1,000 | 13,423 | |||||||
United States Dollar/South African Rand @ FX Rate 15.500, expiring 05/27/15 | Credit Suisse First Boston Corp. | 4,000 | 56 | |||||||
United States Dollar/Turkish Lira @ FX Rate 3.000, expiring 11/24/15 | UBS AG | 1,000 | 31,356 | |||||||
|
| |||||||||
728,497 | ||||||||||
Put Options 0.1% | ||||||||||
90 Day Euro Dollar, expiring 12/14/15, Strike Price $98.75 | 5,750 | 719 | ||||||||
90 Day Euro Dollar, expiring 12/14/15, Strike Price $98.88 | 5,750 | 1,006 | ||||||||
90 Day Euro Dollar, expiring 12/14/15, Strike Price $99.13 | 5,750 | 2,587 | ||||||||
90 Day Euro Dollar, expiring 12/14/15, Strike Price $99.25 | 5,750 | 4,169 | ||||||||
Euro/Polish Zloty @ FX Rate 4.100, expiring 01/11/16 | Credit Suisse First Boston Corp. | EUR | 2,100 | 59,563 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 35 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Counterparty | Notional Amount (000)# | Value (Note 1) | |||||||
OPTIONS PURCHASED (Continued) |
| |||||||||
Put Options (cont’d.) |
| |||||||||
Euro/Turkish Lira @ FX Rate 2.650, expiring 01/11/16 | Citigroup Global Markets | EUR | 4,250 | $ | 9,999 | |||||
Euro/United States Dollar @ FX Rate 1.050, expiring 07/30/15 | Citigroup Global Markets | EUR | 4,400 | 21,896 | ||||||
New Zealand Dollar/United States Dollar @ FX Rate 0.750, expiring 09/07/15 | Credit Suisse First Boston Corp. | NZD | 3,000 | 81,601 | ||||||
Turkish Lira/Japanese Yen @ FX Rate 35.000, expiring 05/07/15 | JPMorgan Chase | TRY | 8,500 | — | ||||||
United States Dollar/Chinese Renminbi @ FX Rate 6.230, expiring 06/23/15 | Citigroup Global Markets | 4,500 | 16,598 | |||||||
United States Dollar/Chinese Renminbi @ FX Rate 6.300, expiring 02/29/16 | Credit Suisse First Boston Corp. | 4,000 | 33,815 | |||||||
United States Dollar/Mexican Peso @ FX Rate 13.500, expiring 12/03/15 | Citigroup Global Markets | 1,000 | 1,697 | |||||||
United States Dollar/New Zealand Dollar @ FX Rate 0.840, expiring 09/07/15 | Citigroup Global Markets | 3,000 | 4,256 | |||||||
United States Dollar/South African Rand @ FX Rate 11.000, expiring 12/03/15 | UBS AG | 1,000 | 7,035 | |||||||
United States Dollar/South African Rand @ FX Rate 11.100, expiring 02/25/16 | Credit Suisse First Boston Corp. | 4,000 | 40,279 | |||||||
United States Dollar/Turkish Lira @ FX Rate 2.220, expiring 11/24/15 | Credit Suisse First Boston Corp. | 1,000 | 622 | |||||||
|
| |||||||||
285,842 | ||||||||||
|
| |||||||||
TOTAL OPTIONS PURCHASED | 1,014,339 | |||||||||
|
| |||||||||
TOTAL SHORT-TERM INVESTMENTS | 1,014,339 | |||||||||
|
| |||||||||
TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN 96.6% | 372,571,728 | |||||||||
|
|
See Notes to Financial Statements.
36 |
Description | Counterparty | Notional Amount (000)# | Value (Note 1) | |||||||
OPTIONS WRITTEN* (0.6)% | ||||||||||
Call Options (0.4)% | ||||||||||
Euro/Polish Zloty @ FX Rate 4.900, expiring 01/11/16 | Credit Suisse First Boston Corp. | EUR | 2,100 | $ | (4,313 | ) | ||||
Euro/South African Rand @ FX Rate 19.000, expiring 12/21/15 | Credit Suisse First Boston Corp. | EUR | 2,800 | (18,494 | ) | |||||
Euro/Turkish Lira @ FX Rate 3.700, expiring 01/11/16 | Citigroup Global Markets | EUR | 4,250 | (91,774 | ) | |||||
United States Dollar/Chinese Renminbi @ FX Rate 7.250, expiring 02/29/16 | Credit Suisse First Boston Corp. | 4,000 | (6,062 | ) | ||||||
United States Dollar/Czech Koruna @ FX Rate 23.000, expiring 06/23/15 | Deutsche Bank AG | 5,000 | (298,071 | ) | ||||||
United States Dollar/Japanese Yen @ FX Rate 106.000, expiring 06/29/15 | Citigroup Global Markets | 8,000 | (895,060 | ) | ||||||
United States Dollar/Mexican Peso @FX Rate 17.000, expiring 12/03/15 | Citigroup Global Markets | 1,000 | (15,077 | ) | ||||||
United States Dollar/New Zealand Dollar @ FX Rate 0.750, expiring 09/07/15 | Citigroup Global Markets | 3,000 | (81,601 | ) | ||||||
United States Dollar/South African Rand @ FX Rate 15.000, expiring 12/03/15 | UBS AG | 1,000 | (13,423 | ) | ||||||
United States Dollar/South African Rand @ FX Rate 16.500, expiring 02/25/16 | Credit Suisse First Boston Corp. | 4,000 | (57,900 | ) | ||||||
United States Dollar/Turkish Lira @ FX Rate 3.000, expiring 11/24/15 | Credit Suisse First Boston Corp. | 1,000 | (31,356 | ) | ||||||
|
| |||||||||
(1,513,131 | ) | |||||||||
Put Options (0.2)% | ||||||||||
90 Day Euro Dollar, expiring 12/14/15, Strike Price $99.00 | 23,000 | (6,325 | ) | |||||||
Euro/Polish Zloty @ FX Rate 4.100, expiring 01/11/16 | JPMorgan Chase | EUR | 2,100 | (59,563 | ) | |||||
Euro/United States Dollar @ FX Rate 1.250, expiring 07/29/15 | Barclays Capital Group | EUR | 2,200 | (270,087 | ) | |||||
Euro/United States Dollar @ FX Rate 1.250, expiring 07/29/15 | UBS AG | EUR | 2,200 | (270,087 | ) |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 37 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Description | Counterparty | Notional Amount (000)# | Value (Note 1) | |||||||
OPTIONS WRITTEN* (Continued) | ||||||||||
Put Options (cont’d.) | ||||||||||
Turkish Lira/Japanese Yen @ FX Rate 33.000, expiring 02/08/16 | JPMorgan Chase | TRY | 8,500 | $ | (47,370 | ) | ||||
United States Dollar/Chinese Renminbi @ FX Rate 6.230, expiring 06/23/15 | Barclays Capital Group | 4,500 | (16,598 | ) | ||||||
United States Dollar/Chinese Renminbi @ FX Rate 6.300, expiring 02/29/16 | Barclays Capital Group | 4,000 | (33,815 | ) | ||||||
United States Dollar/Japanese Yen @ FX Rate 96.000, expiring 06/29/15 | Citigroup Global Markets | 8,000 | (17 | ) | ||||||
United States Dollar/Mexican Peso @ FX Rate 13.500, expiring 12/03/15 | UBS AG | 1,000 | (1,697 | ) | ||||||
United States Dollar/New Zealand Dollar @ FX Rate 0.840, expiring 09/07/15 | Citigroup Global Markets | 3,000 | (4,256 | ) | ||||||
United States Dollar/South African Rand @ FX Rate 11.000, expiring 12/03/15 | Credit Suisse First Boston Corp. | 1,000 | (7,035 | ) | ||||||
United States Dollar/Turkish Lira @ FX Rate 2.220, expiring 11/24/15 | UBS AG | 1,000 | (622 | ) | ||||||
|
| |||||||||
(717,472 | ) | |||||||||
|
| |||||||||
TOTAL OPTIONS WRITTEN | (2,230,603 | ) | ||||||||
|
| |||||||||
TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN 96.0% | 370,341,125 | |||||||||
Other assets in excess of liabilities(i) 4.0% | 15,517,908 | |||||||||
|
| |||||||||
NET ASSETS 100.0% | $ | 385,859,033 | ||||||||
|
|
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.
38 |
BBR—New Zealand Bank Bill Rate
BBSW—Australian Bank Bill Swap Reference Rate
BIBOR—Bangkok Interbank Offered Rate
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
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
KLIBOR—Kuala Lumpur Interbank Offered 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
SIBOR—Singapore Interbank Offered Rate
STIBOR—Stockholm Interbank Offered Rate
TBA—To Be Announced
TELBOR—Tel Aviv Interbank Offered Rate
WIBOR—Warsaw Interbank Offered Rate
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
EUR—Euro
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 39 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
GBP—British Pound
HKD—Hong Kong Dollar
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli 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 restricted security; the aggregate original cost of the restricted securities is $3,614,473. The aggregate value of $3,542,096 is approximately 0.9% of net assets. |
(b) | Indicates a security that has been deemed illiquid. |
(c) | Represents issuer in default on interest payments and/or principal repayment; non-income producing security. |
(d) | Represents security, or a portion thereof, segregated as collateral for futures contracts. |
(e) | Represents security, or a portion thereof, segregated as collateral for swap agreements. |
(f) | Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2015. |
(g) | Represents a zero coupon or step bond. Rate quoted represents yield to maturity at purchase date. |
(h) | Represents a zero coupon or step bond. Rate quoted represents effective yield at April 30, 2015. |
(i) | Includes net unrealized appreciation (depreciation) on the following derivative contracts held at reporting period end: |
See Notes to Financial Statements.
40 |
Futures contracts outstanding at April 30, 2015:
Number of Contracts | Type | Expiration Date | Value at Trade Date | Value at April 30, 2015 | Unrealized Appreciation (Depreciation)(1) | |||||||||||||||
Long Positions: | ||||||||||||||||||||
500 | 5 Year U.S. Treasury Notes | Jun. 2015 | $ | 59,723,452 | $ | 60,066,406 | $ | 342,954 | ||||||||||||
1,035 | 10 Year U.S. Treasury Notes | Jun. 2015 | 133,686,669 | 132,868,125 | (818,544 | ) | ||||||||||||||
127 | U.S. Ultra Bonds | Jun. 2015 | 21,079,874 | 20,891,500 | (188,374 | ) | ||||||||||||||
|
| |||||||||||||||||||
(663,964 | ) | |||||||||||||||||||
|
| |||||||||||||||||||
Short Positions: | ||||||||||||||||||||
8 | 30 Day U.S. Federal Funds | May 2015 | 3,329,253 | 3,329,266 | (13 | ) | ||||||||||||||
328 | 2 Year U.S. Treasury Notes | Jun. 2015 | 71,928,958 | 71,919,125 | 9,833 | |||||||||||||||
13 | Euro-Bund | Jun. 2015 | 2,306,862 | 2,287,360 | 19,502 | |||||||||||||||
|
| |||||||||||||||||||
29,322 | ||||||||||||||||||||
|
| |||||||||||||||||||
$ | (634,642 | ) | ||||||||||||||||||
|
|
(1) | Cash of $260,000 and Foreign Bonds with a combined market value of $1,534,701 have been segregated with J.P. Morgan Securities LLC to cover requirements for open contracts at April 30, 2015. |
Forward foreign currency exchange contracts outstanding at April 30, 2015:
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Australian Dollar, | ||||||||||||||||||
Expiring 07/16/15 | BNP Paribas | AUD | 957 | $ | 768,500 | $ | 754,358 | $ | (14,142 | ) | ||||||||
Expiring 07/16/15 | BNP Paribas | AUD | 979 | 763,900 | 771,345 | 7,445 | ||||||||||||
Expiring 07/16/15 | BNP Paribas | AUD | 1,087 | 841,000 | 856,847 | 15,847 | ||||||||||||
Expiring 07/16/15 | BNP Paribas | AUD | 1,334 | 1,031,400 | 1,050,969 | 19,569 | ||||||||||||
Expiring 07/16/15 | Citigroup Global Markets | AUD | 1,107 | 881,300 | 872,195 | (9,105 | ) | |||||||||||
Brazilian Real, | ||||||||||||||||||
Expiring 06/26/15 | Bank of America | BRL | 1,722 | 536,951 | 560,295 | 23,344 | ||||||||||||
Expiring 06/26/15 | BNP Paribas | BRL | 2,928 | 955,700 | 952,829 | (2,871 | ) | |||||||||||
Expiring 06/26/15 | BNP Paribas | BRL | 2,935 | 953,200 | 955,097 | 1,897 | ||||||||||||
Expiring 06/26/15 | Deutsche Bank AG | BRL | 2,504 | 784,000 | 814,845 | 30,845 | ||||||||||||
Expiring 06/26/15 | JPMorgan Chase | BRL | 3,205 | 1,013,000 | 1,042,835 | 29,835 | ||||||||||||
Expiring 07/14/15 | Barclays Capital Group | BRL | 1,891 | 587,630 | 611,523 | 23,893 | ||||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 2,945 | 896,900 | 952,221 | 55,321 | ||||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 5,039 | 1,565,700 | 1,629,615 | 63,915 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 41 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
British Pound, | ||||||||||||||||||
Expiring 07/28/15 | Citigroup Global Markets | GBP | 1,261 | $ | 1,909,900 | $ | 1,934,943 | $ | 25,043 | |||||||||
Expiring 07/28/15 | Citigroup Global Markets | GBP | 3,226 | 4,878,131 | 4,949,297 | 71,166 | ||||||||||||
Expiring 07/28/15 | Goldman Sachs & Co. | GBP | 1,269 | 1,911,400 | 1,947,283 | 35,883 | ||||||||||||
Expiring 07/28/15 | JPMorgan Chase | GBP | 1,110 | 1,689,180 | 1,702,168 | 12,988 | ||||||||||||
Canadian Dollar, | ||||||||||||||||||
Expiring 07/16/15 | BNP Paribas | CAD | 1,390 | 1,145,900 | 1,150,994 | 5,094 | ||||||||||||
Expiring 07/16/15 | Goldman Sachs & Co. | CAD | 1,406 | 1,146,000 | 1,164,244 | 18,244 | ||||||||||||
Expiring 07/16/15 | JPMorgan Chase | CAD | 810 | 648,300 | 670,598 | 22,298 | ||||||||||||
Expiring 07/16/15 | JPMorgan Chase | CAD | 1,860 | 1,532,600 | 1,540,044 | 7,444 | ||||||||||||
Expiring 07/16/15 | JPMorgan Chase | CAD | 9,234 | 7,367,623 | 7,645,432 | 277,809 | ||||||||||||
Chilean Peso, | ||||||||||||||||||
Expiring 05/11/15 | Barclays Capital Group | CLP | 49,806 | 81,395 | 81,338 | (57 | ) | |||||||||||
Expiring 06/24/15 | BNP Paribas | CLP | 622,011 | 972,500 | 1,011,604 | 39,104 | ||||||||||||
Expiring 07/29/15 | BNP Paribas | CLP | 588,951 | 957,800 | 954,695 | (3,105 | ) | |||||||||||
Chinese Renminbi, | ||||||||||||||||||
Expiring 07/09/15 | Barclays Capital Group | CNH | 11,980 | 1,919,516 | 1,921,524 | 2,008 | ||||||||||||
Expiring 07/09/15 | JPMorgan Chase | CNH | 54,597 | 8,726,415 | 8,756,820 | 30,405 | ||||||||||||
Expiring 03/02/16 | Barclays Capital Group | CNH | 9,118 | 1,435,412 | 1,439,769 | 4,357 | ||||||||||||
Colombian Peso, | ||||||||||||||||||
Expiring 05/22/15 | BNP Paribas | COP | 2,049,960 | 776,500 | 858,663 | 82,163 | ||||||||||||
Expiring 05/22/15 | BNP Paribas | COP | 3,023,311 | 1,155,700 | 1,266,368 | 110,668 | ||||||||||||
Expiring 05/22/15 | BNP Paribas | COP | 3,135,080 | 1,205,800 | 1,313,185 | 107,385 | ||||||||||||
Expiring 05/22/15 | Citigroup Global Markets | COP | 2,528,500 | 972,500 | 1,059,108 | 86,608 | ||||||||||||
Expiring 05/26/15 | BNP Paribas | COP | 1,895,802 | 766,600 | 793,764 | 27,164 | ||||||||||||
Expiring 05/26/15 | Citigroup Global Markets | COP | 2,854,300 | 1,150,000 | 1,195,084 | 45,084 | ||||||||||||
Expiring 05/26/15 | Citigroup Global Markets | COP | 3,788,634 | 1,741,100 | 1,586,286 | (154,814 | ) | |||||||||||
Danish Krone, | ||||||||||||||||||
Expiring 06/23/15 | Deutsche Bank AG | DKK | 23,641 | 3,415,071 | 3,562,072 | 147,001 | ||||||||||||
Euro, | ||||||||||||||||||
Expiring 07/22/15 | Citigroup Global Markets | EUR | 70 | 76,462 | 78,913 | 2,451 | ||||||||||||
Expiring 07/28/15 | Barclays Capital Group | EUR | 3,836 | 4,311,297 | 4,312,316 | 1,019 | ||||||||||||
Expiring 07/28/15 | Deutsche Bank AG | EUR | 3,469 | 3,842,600 | 3,899,544 | 56,944 | ||||||||||||
Expiring 07/28/15 | Goldman Sachs & Co. | EUR | 3,513 | 3,819,700 | 3,949,014 | 129,314 | ||||||||||||
Expiring 07/28/15 | UBS AG | EUR | 1,404 | 1,527,900 | 1,578,410 | 50,510 | ||||||||||||
Hungarian Forint, | ||||||||||||||||||
Expiring 07/22/15 | Citigroup Global Markets | HUF | 214,474 | 769,949 | 791,321 | 21,372 | ||||||||||||
Expiring 07/22/15 | JPMorgan Chase | HUF | 310,714 | 1,150,200 | 1,146,407 | (3,793 | ) | |||||||||||
Expiring 07/22/15 | UBS AG | HUF | 263,990 | 957,800 | 974,016 | 16,216 | ||||||||||||
Indian Rupee, | ||||||||||||||||||
Expiring 07/24/15 | Barclays Capital Group | INR | 460,645 | 7,196,459 | 7,124,749 | (71,710 | ) |
See Notes to Financial Statements.
42 |
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Indonesia Rupiah, | ||||||||||||||||||
Expiring 06/25/15 | UBS AG | IDR | 9,951,100 | $ | 764,000 | $ | 758,413 | $ | (5,587 | ) | ||||||||
Expiring 06/25/15 | UBS AG | IDR | 15,512,503 | 1,174,300 | 1,182,270 | 7,970 | ||||||||||||
Israel Shekel, | ||||||||||||||||||
Expiring 07/20/15 | Citigroup Global Markets | ILS | 7,821 | 1,986,400 | 2,026,132 | 39,732 | ||||||||||||
Japanese Yen, | ||||||||||||||||||
Expiring 05/28/15 | Toronto Dominion | JPY | 3,556,881 | 29,872,890 | 29,797,439 | (75,451 | ) | |||||||||||
Expiring 07/16/15 | Bank of America | JPY | 103,570 | 867,433 | 868,244 | 811 | ||||||||||||
Malaysian Ringgit, | ||||||||||||||||||
Expiring 06/25/15 | UBS AG | MYR | 1,732 | 463,900 | 483,995 | 20,095 | ||||||||||||
Expiring 06/25/15 | UBS AG | MYR | 2,737 | 763,900 | 764,658 | 758 | ||||||||||||
Expiring 06/25/15 | UBS AG | MYR | 2,837 | 779,000 | 792,614 | 13,614 | ||||||||||||
Expiring 06/25/15 | UBS AG | MYR | 2,880 | 782,900 | 804,493 | 21,593 | ||||||||||||
Expiring 06/25/15 | UBS AG | MYR | 4,201 | 1,146,000 | 1,173,711 | 27,711 | ||||||||||||
Expiring 06/25/15 | UBS AG | MYR | 5,464 | 1,481,800 | 1,526,531 | 44,731 | ||||||||||||
Mexican Peso, | ||||||||||||||||||
Expiring 07/22/15 | Citigroup Global Markets | MXN | 89,198 | 5,761,864 | 5,779,234 | 17,370 | ||||||||||||
Expiring 07/22/15 | Goldman Sachs & Co. | MXN | 17,633 | 1,152,800 | 1,142,429 | (10,371 | ) | |||||||||||
Expiring 12/07/15 | UBS AG | MXN | 4,688 | 305,213 | 300,642 | (4,571 | ) | |||||||||||
New Taiwanese Dollar, | ||||||||||||||||||
Expiring 05/04/15 | JPMorgan Chase | TWD | 48,152 | 1,553,000 | 1,572,280 | 19,280 | ||||||||||||
Expiring 05/04/15 | UBS AG | TWD | 36,586 | 1,162,200 | 1,194,616 | 32,416 | ||||||||||||
Expiring 05/04/15 | UBS AG | TWD | 37,154 | 1,185,500 | 1,213,146 | 27,646 | ||||||||||||
Expiring 05/04/15 | UBS AG | TWD | 105,765 | 3,458,788 | 3,453,457 | (5,331 | ) | |||||||||||
Expiring 07/24/15 | UBS AG | TWD | 36,500 | 1,196,933 | 1,192,102 | (4,831 | ) | |||||||||||
Expiring 07/24/15 | UBS AG | TWD | 69,264 | 2,253,600 | 2,262,169 | 8,569 | ||||||||||||
New Zealand Dollar, | ||||||||||||||||||
Expiring 07/16/15 | Bank of America | NZD | 2,801 | 2,071,619 | 2,121,785 | 50,166 | ||||||||||||
Norwegian Krone, | ||||||||||||||||||
Expiring 07/23/15 | Citigroup Global Markets | NOK | 5,788 | 768,500 | 766,826 | (1,674 | ) | |||||||||||
Expiring 07/23/15 | Deutsche Bank AG | NOK | 8,846 | 1,149,500 | 1,172,006 | 22,506 | ||||||||||||
Expiring 07/23/15 | JPMorgan Chase | NOK | 28,058 | 3,555,824 | 3,717,427 | 161,603 | ||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||
Expiring 06/11/15 | BNP Paribas | PEN | 4,251 | 1,361,400 | 1,348,658 | (12,742 | ) | |||||||||||
Philippine Peso, | ||||||||||||||||||
Expiring 05/11/15 | Citigroup Global Markets | PHP | 138,287 | 3,113,864 | 3,103,431 | (10,433 | ) | |||||||||||
Polish Zloty, | ||||||||||||||||||
Expiring 07/23/15 | Citigroup Global Markets | PLN | 2,971 | 796,529 | 822,950 | 26,421 | ||||||||||||
Expiring 07/23/15 | Deutsche Bank AG | PLN | 3,516 | 957,800 | 973,899 | 16,099 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 43 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Romanian Leu, | ||||||||||||||||||
Expiring 07/23/15 | Citigroup Global Markets | RON | 120 | $ | 29,428 | $ | 30,298 | $ | 870 | |||||||||
Expiring 07/23/15 | Citigroup Global Markets | RON | 3,114 | 763,900 | 788,909 | 25,009 | ||||||||||||
Expiring 07/23/15 | Citigroup Global Markets | RON | 4,683 | 1,145,900 | 1,186,514 | 40,614 | ||||||||||||
Expiring 07/23/15 | Citigroup Global Markets | RON | 7,783 | 1,909,900 | 1,971,983 | 62,083 | ||||||||||||
Expiring 07/23/15 | Deutsche Bank AG | RON | 5,687 | 1,366,195 | 1,440,936 | 74,741 | ||||||||||||
Russian Ruble, | ||||||||||||||||||
Expiring 06/10/15 | Barclays Capital Group | RUB | 21,528 | 390,000 | 411,586 | 21,586 | ||||||||||||
Expiring 06/10/15 | Barclays Capital Group | RUB | 71,683 | 1,152,831 | 1,370,481 | 217,650 | ||||||||||||
Expiring 06/10/15 | BNP Paribas | RUB | 24,120 | 388,300 | 461,135 | 72,835 | ||||||||||||
Expiring 06/10/15 | BNP Paribas | RUB | 24,234 | 386,200 | 463,322 | 77,122 | ||||||||||||
Expiring 06/10/15 | BNP Paribas | RUB | 24,560 | 386,800 | 469,560 | 82,760 | ||||||||||||
Expiring 06/10/15 | BNP Paribas | RUB | 24,752 | 385,600 | 473,218 | 87,618 | ||||||||||||
Expiring 06/10/15 | BNP Paribas | RUB | 34,885 | 587,000 | 666,961 | 79,961 | ||||||||||||
Expiring 06/10/15 | Deutsche Bank AG | RUB | 37,203 | 577,683 | 711,266 | 133,583 | ||||||||||||
Expiring 06/10/15 | JPMorgan Chase | RUB | 22,617 | 388,000 | 432,397 | 44,397 | ||||||||||||
Singapore Dollar, | ||||||||||||||||||
Expiring 07/24/15 | Citigroup Global Markets | SGD | 2,558 | 1,909,900 | 1,930,244 | 20,344 | ||||||||||||
Expiring 07/24/15 | JPMorgan Chase | SGD | 1,233 | 915,000 | 930,802 | 15,802 | ||||||||||||
Expiring 07/24/15 | JPMorgan Chase | SGD | 2,038 | 1,527,900 | 1,538,173 | 10,273 | ||||||||||||
Expiring 07/24/15 | Toronto Dominion | SGD | 1,011 | 766,400 | 762,788 | (3,612 | ) | |||||||||||
Expiring 07/24/15 | Toronto Dominion | SGD | 1,518 | 1,149,500 | 1,145,461 | (4,039 | ) | |||||||||||
Expiring 07/24/15 | Toronto Dominion | SGD | 2,038 | 1,527,900 | 1,538,106 | 10,206 | ||||||||||||
Expiring 07/24/15 | Toronto Dominion | SGD | 2,545 | 1,915,500 | 1,920,684 | 5,184 | ||||||||||||
South African Rand, | ||||||||||||||||||
Expiring 07/20/15 | Citigroup Global Markets | ZAR | 11,491 | 960,700 | 952,792 | (7,908 | ) | |||||||||||
Expiring 07/20/15 | Deutsche Bank AG | ZAR | 13,957 | 1,149,300 | 1,157,311 | 8,011 | ||||||||||||
Expiring 07/20/15 | JPMorgan Chase | ZAR | 9,262 | 766,400 | 767,957 | 1,557 | ||||||||||||
Expiring 12/07/15 | Credit Suisse First Boston Corp. | ZAR | 3,793 | 311,000 | 306,821 | (4,179 | ) | |||||||||||
South Korean Won, | ||||||||||||||||||
Expiring 06/11/15 | Barclays Capital Group | KRW | 2,673,872 | 2,386,107 | 2,491,241 | 105,134 | ||||||||||||
Expiring 06/11/15 | UBS AG | KRW | 823,293 | 763,900 | 767,061 | 3,161 | ||||||||||||
Expiring 06/11/15 | UBS AG | KRW | 865,670 | 782,900 | 806,543 | 23,643 | ||||||||||||
Expiring 06/11/15 | UBS AG | KRW | 933,422 | 854,000 | 869,667 | 15,667 | ||||||||||||
Expiring 06/11/15 | UBS AG | KRW | 1,043,973 | 953,400 | 972,668 | 19,268 | ||||||||||||
Expiring 06/11/15 | UBS AG | KRW | 1,642,946 | 1,481,800 | 1,530,729 | 48,929 | ||||||||||||
Swedish Krona, | ||||||||||||||||||
Expiring 07/23/15 | Barclays Capital Group | SEK | 9,650 | 1,152,800 | 1,159,947 | 7,147 | ||||||||||||
Expiring 07/23/15 | Barclays Capital Group | SEK | 13,265 | 1,533,300 | 1,594,498 | 61,198 | ||||||||||||
Expiring 07/23/15 | Deutsche Bank AG | SEK | 3,199 | 384,300 | 384,514 | 214 | ||||||||||||
Expiring 07/23/15 | Deutsche Bank AG | SEK | 6,415 | 768,500 | 771,143 | 2,643 | ||||||||||||
Expiring 07/23/15 | UBS AG | SEK | 13,240 | 1,575,500 | 1,591,526 | 16,026 |
See Notes to Financial Statements.
44 |
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Swiss Franc, | ||||||||||||||||||
Expiring 07/28/15 | BNP Paribas | CHF | 84 | $ | 88,576 | $ | 90,570 | $ | 1,994 | |||||||||
Expiring 07/28/15 | BNP Paribas | CHF | 639 | 671,649 | 687,058 | 15,409 | ||||||||||||
Expiring 07/28/15 | UBS AG | CHF | 856 | 900,946 | 920,220 | 19,274 | ||||||||||||
Expiring 07/28/15 | UBS AG | CHF | 2,153 | 2,305,600 | 2,315,818 | 10,218 | ||||||||||||
Expiring 07/28/15 | UBS AG | CHF | 2,159 | 2,267,109 | 2,321,833 | 54,724 | ||||||||||||
|
|
|
|
|
| |||||||||||||
$ | 196,251,972 | $ | 199,605,245 | $ | 3,353,273 | |||||||||||||
|
|
|
|
|
|
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Australian Dollar, | ||||||||||||||||||
Expiring 07/16/15 | BNP Paribas | AUD | 1,021 | $ | 805,200 | $ | 804,421 | $ | 779 | |||||||||
Expiring 07/16/15 | Deutsche Bank AG | AUD | 711 | 536,400 | 560,174 | (23,774 | ) | |||||||||||
Expiring 07/16/15 | JPMorgan Chase | AUD | 8,024 | 6,070,555 | 6,322,661 | (252,106 | ) | |||||||||||
Expiring 07/16/15 | JPMorgan Chase | AUD | 992 | 766,300 | 781,856 | (15,556 | ) | |||||||||||
Brazilian Real, | ||||||||||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 4,489 | 1,550,200 | 1,451,557 | 98,643 | ||||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 3,086 | 1,060,200 | 998,051 | 62,149 | ||||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 2,981 | 993,600 | 963,953 | 29,647 | ||||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 2,926 | 919,600 | 946,359 | (26,759 | ) | |||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 2,497 | 775,700 | 807,366 | (31,666 | ) | |||||||||||
Expiring 07/14/15 | BNP Paribas | BRL | 1,436 | 427,900 | 464,533 | (36,633 | ) | |||||||||||
Expiring 07/14/15 | Citigroup Global Markets | BRL | 1,683 | 505,700 | 544,414 | (38,714 | ) | |||||||||||
British Pound, | ||||||||||||||||||
Expiring 07/28/15 | BNP Paribas | GBP | 644 | 950,608 | 988,547 | (37,939 | ) | |||||||||||
Expiring 07/28/15 | Citigroup Global Markets | GBP | 1,327 | 1,978,277 | 2,035,235 | (56,958 | ) | |||||||||||
Expiring 07/28/15 | Citigroup Global Markets | GBP | 266 | 397,525 | 408,781 | (11,256 | ) | |||||||||||
Canadian Dollar, | ||||||||||||||||||
Expiring 07/16/15 | Bank of America | CAD | 368 | 302,124 | 304,721 | (2,597 | ) | |||||||||||
Expiring 07/16/15 | Citigroup Global Markets | CAD | 764 | 623,587 | 632,201 | (8,614 | ) | |||||||||||
Expiring 07/16/15 | JPMorgan Chase | CAD | 2,647 | 2,185,500 | 2,191,539 | (6,039 | ) | |||||||||||
Chilean Peso, | ||||||||||||||||||
Expiring 06/24/15 | BNP Paribas | CLP | 622,011 | 1,001,547 | 1,011,604 | (10,057 | ) | |||||||||||
Chinese Renminbi, | ||||||||||||||||||
Expiring 07/09/15 | Deutsche Bank AG | CNH | 11,980 | 1,915,500 | 1,921,524 | (6,024 | ) | |||||||||||
Expiring 03/02/16 | Credit Suisse First Boston Corp. | CNH | 9,118 | 1,405,000 | 1,439,769 | (34,769 | ) |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 45 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Colombian Peso, | ||||||||||||||||||
Expiring 05/22/15 | Barclays Capital Group | COP | 4,956,486 | $ | 1,927,656 | $ | 2,076,113 | $ | (148,457 | ) | ||||||||
Expiring 05/22/15 | BNP Paribas | COP | 2,536,580 | 996,300 | 1,062,492 | (66,192 | ) | |||||||||||
Expiring 05/22/15 | BNP Paribas | COP | 2,504,321 | 992,400 | 1,048,980 | (56,580 | ) | |||||||||||
Expiring 05/22/15 | BNP Paribas | COP | 2,251,922 | 869,300 | 943,258 | (73,958 | ) | |||||||||||
Expiring 05/22/15 | BNP Paribas | COP | 2,072,302 | 769,800 | 868,021 | (98,221 | ) | |||||||||||
Expiring 05/22/15 | BNP Paribas | COP | 1,423,008 | 540,400 | 596,053 | (55,653 | ) | |||||||||||
Czech Koruna, | ||||||||||||||||||
Expiring 07/23/15 | Barclays Capital Group | CZK | 29,429 | 1,150,000 | 1,205,244 | (55,244 | ) | |||||||||||
Expiring 07/23/15 | Citigroup Global Markets | CZK | 22,462 | 881,600 | 919,937 | (38,337 | ) | |||||||||||
Expiring 07/23/15 | Citigroup Global Markets | CZK | 21,731 | 848,868 | 889,974 | (41,106 | ) | |||||||||||
Euro, | ||||||||||||||||||
Expiring 07/28/15 | Bank of America | EUR | 635 | 687,762 | 714,055 | (26,293 | ) | |||||||||||
Expiring 07/28/15 | JPMorgan Chase | EUR | 635 | 687,883 | 714,055 | (26,172 | ) | |||||||||||
Hungarian Forint, | ||||||||||||||||||
Expiring 07/22/15 | BNP Paribas | HUF | 995,441 | 3,568,019 | 3,672,768 | (104,749 | ) | |||||||||||
Expiring 07/22/15 | UBS AG | HUF | 532,544 | 1,909,900 | 1,964,867 | (54,967 | ) | |||||||||||
Indian Rupee, | ||||||||||||||||||
Expiring 07/24/15 | UBS AG | INR | 218,732 | 3,393,300 | 3,383,105 | 10,195 | ||||||||||||
Indonesia Rupiah, | ||||||||||||||||||
Expiring 06/25/15 | UBS AG | IDR | 25,463,603 | 1,931,988 | 1,940,683 | (8,695 | ) | |||||||||||
Israel Shekel, | ||||||||||||||||||
Expiring 07/20/15 | JPMorgan Chase | ILS | 7,798 | 1,983,701 | 2,020,323 | (36,622 | ) | |||||||||||
Expiring 07/23/15 | Deutsche Bank AG | ILS | 4,464 | 1,152,800 | 1,156,542 | (3,742 | ) | |||||||||||
Japanese Yen, | ||||||||||||||||||
Expiring 07/28/15 | Deutsche Bank AG | JPY | 36,556 | 307,400 | 306,502 | 898 | ||||||||||||
Malaysian Ringgit, | ||||||||||||||||||
Expiring 06/25/15 | UBS AG | MYR | 8,556 | 2,283,819 | 2,390,277 | (106,458 | ) | |||||||||||
Mexican Peso, | ||||||||||||||||||
Expiring 07/22/15 | Deutsche Bank AG | MXN | 19,060 | 1,226,600 | 1,234,943 | (8,343 | ) | |||||||||||
Expiring 12/07/15 | Citigroup Global Markets | MXN | 4,680 | 325,000 | 300,137 | 24,863 | ||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||
Expiring 05/04/15 | BNP Paribas | TWD | 36,692 | 1,162,600 | 1,198,064 | (35,464 | ) | |||||||||||
Expiring 05/04/15 | UBS AG | TWD | 61,935 | 1,957,500 | 2,022,324 | (64,824 | ) | |||||||||||
Expiring 05/04/15 | UBS AG | TWD | 60,878 | 1,931,100 | 1,987,799 | (56,699 | ) | |||||||||||
Expiring 05/04/15 | UBS AG | TWD | 37,545 | 1,180,900 | 1,225,925 | (45,025 | ) | |||||||||||
Expiring 05/04/15 | UBS AG | TWD | 30,607 | 964,000 | 999,386 | (35,386 | ) | |||||||||||
Expiring 07/24/15 | UBS AG | TWD | 105,765 | 3,462,354 | 3,454,271 | 8,083 |
See Notes to Financial Statements.
46 |
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
New Zealand Dollar, | ||||||||||||||||||
Expiring 07/16/15 | Credit Suisse First Boston Corp. | NZD | 1,526 | $ | 1,145,900 | $ | 1,156,174 | $ | (10,274 | ) | ||||||||
Expiring 07/16/15 | UBS AG | NZD | 4,166 | 3,126,400 | 3,155,581 | (29,181 | ) | |||||||||||
Expiring 07/16/15 | UBS AG | NZD | 1,004 | 768,500 | 760,533 | 7,967 | ||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||
Expiring 06/11/15 | BNP Paribas | PEN | 4,233 | 1,341,600 | 1,342,877 | (1,277 | ) | |||||||||||
Expiring 06/11/15 | Citigroup Global Markets | PEN | 2,662 | 851,977 | 844,408 | 7,569 | ||||||||||||
Philippine Peso, | ||||||||||||||||||
Expiring 05/11/15 | UBS AG | PHP | 85,689 | 1,902,500 | 1,923,024 | (20,524 | ) | |||||||||||
Russian Ruble, | ||||||||||||||||||
Expiring 06/10/15 | BNP Paribas | RUB | 131,070 | 2,452,200 | 2,505,880 | (53,680 | ) | |||||||||||
Expiring 06/10/15 | BNP Paribas | RUB | 54,177 | 996,600 | 1,035,782 | (39,182 | ) | |||||||||||
Expiring 06/10/15 | JPMorgan Chase | RUB | 71,848 | 1,349,000 | 1,373,630 | (24,630 | ) | |||||||||||
Singapore Dollar, | ||||||||||||||||||
Expiring 07/24/15 | Barclays Capital Group | SGD | 244 | 179,992 | 183,801 | (3,809 | ) | |||||||||||
Expiring 07/24/15 | JPMorgan Chase | SGD | 2,712 | 2,011,931 | 2,046,233 | (34,302 | ) | |||||||||||
South African Rand, | ||||||||||||||||||
Expiring 07/20/15 | Barclays Capital Group | ZAR | 16,529 | 1,338,000 | 1,370,563 | (32,563 | ) | |||||||||||
Expiring 07/20/15 | BNP Paribas | ZAR | 14,042 | 1,152,854 | 1,164,302 | (11,448 | ) | |||||||||||
Expiring 07/20/15 | Deutsche Bank AG | ZAR | 5,634 | 457,500 | 467,195 | (9,695 | ) | |||||||||||
Expiring 07/20/15 | JPMorgan Chase | ZAR | 12,962 | 1,073,600 | 1,074,770 | (1,170 | ) | |||||||||||
Expiring 12/07/15 | UBS AG | ZAR | 4,172 | 350,000 | 337,510 | 12,490 | ||||||||||||
Expiring 02/29/16 | Credit Suisse First Boston Corp. | ZAR | 15,260 | 1,250,000 | 1,216,208 | 33,792 | ||||||||||||
South Korean Won, | ||||||||||||||||||
Expiring 06/11/15 | UBS AG | KRW | 1,046,832 | 926,400 | 975,331 | (48,931 | ) | |||||||||||
Swedish Krona, | ||||||||||||||||||
Expiring 07/23/15 | Bank of America | SEK | 31,959 | 3,692,894 | 3,841,628 | (148,734 | ) | |||||||||||
Swiss Franc, | ||||||||||||||||||
Expiring 07/28/15 | BNP Paribas | CHF | 555 | 582,047 | 597,522 | (15,475 | ) | |||||||||||
Expiring 07/28/15 | UBS AG | CHF | 1,823 | 1,911,400 | 1,960,615 | (49,215 | ) | |||||||||||
Thai Baht, | ||||||||||||||||||
Expiring 07/22/15 | Barclays Capital Group | THB | 62,578 | 1,909,900 | 1,893,528 | 16,372 | ||||||||||||
Expiring 07/22/15 | Barclays Capital Group | THB | 31,777 | 960,700 | 961,520 | (820 | ) | |||||||||||
Expiring 07/22/15 | Barclays Capital Group | THB | 22,857 | 691,700 | 691,610 | 90 | ||||||||||||
Expiring 07/22/15 | Barclays Capital Group | THB | 18,881 | 574,800 | 571,315 | 3,485 | ||||||||||||
Expiring 07/22/15 | Deutsche Bank AG | THB | 34,838 | 1,068,151 | 1,054,147 | 14,004 | ||||||||||||
Turkish Lira, | ||||||||||||||||||
Expiring 07/24/15 | Citigroup Global Markets | TRY | 2,622 | 960,701 | 957,008 | 3,693 | ||||||||||||
Expiring 07/24/15 | Citigroup Global Markets | TRY | 84 | 30,219 | 30,561 | (342 | ) | |||||||||||
Expiring 07/24/15 | Deutsche Bank AG | TRY | 2,300 | 834,524 | 839,359 | (4,835 | ) | |||||||||||
Expiring 07/24/15 | Deutsche Bank AG | TRY | 1,586 | 574,700 | 578,693 | (3,993 | ) | |||||||||||
Expiring 07/24/15 | Hong Kong & Shanghai Bank | TRY | 14,214 | 5,137,417 | 5,186,901 | (49,484 | ) |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 47 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Expiring 07/24/15 | JPMorgan Chase | TRY | 2,647 | $ | 953,200 | $ | 965,854 | $ | (12,654 | ) | ||||||||
Expiring 11/25/15 | Credit Suisse First Boston Corp. | TRY | 912 | 380,000 | 322,073 | 57,927 | ||||||||||||
|
|
|
|
|
| |||||||||||||
$ | 107,201,280 | $ | 109,261,500 | (2,060,220 | ) | |||||||||||||
|
|
|
|
|
| |||||||||||||
$ | 1,293,053 | |||||||||||||||||
|
|
Cross currency exchange contracts outstanding at April 30, 2015:
Settlement | Type | Notional Amount (000) | In Exchange For (000) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||||
07/16/15 | Buy | AUD | 1,000 | JPY | 90,500 | $ | 29,251 | Citigroup Global Markets | ||||||||||||||||||
07/20/15 | Buy | EUR | 687 | TRY | 2,094 | 7,240 | Deutsche Bank AG | |||||||||||||||||||
07/22/15 | Buy | EUR | 703 | HUF | 214,039 | 659 | Deutsche Bank AG | |||||||||||||||||||
07/23/15 | Buy | EUR | 1,821 | RON | 8,094 | (3,394 | ) | Citigroup Global Markets | ||||||||||||||||||
07/23/15 | Buy | EUR | 1,203 | PLN | 4,843 | 11,433 | Deutsche Bank AG | |||||||||||||||||||
07/23/15 | Buy | EUR | 1,766 | PLN | 7,141 | 6,975 | Toronto Dominion | |||||||||||||||||||
07/23/15 | Buy | EUR | 703 | PLN | 2,852 | 498 | Barclays Capital Group | |||||||||||||||||||
07/23/15 | Buy | EUR | 1,768 | CZK | 48,536 | (722 | ) | Deutsche Bank AG | ||||||||||||||||||
07/24/15 | Buy | EUR | 1,427 | TRY | 4,271 | 45,500 | Citigroup Global Markets | |||||||||||||||||||
07/28/15 | Buy | EUR | 1,781 | CHF | 1,850 | 12,147 | UBS AG | |||||||||||||||||||
07/28/15 | Buy | EUR | 1,770 | JPY | 228,592 | 73,143 | UBS AG | |||||||||||||||||||
07/28/15 | Buy | EUR | 1,752 | CHF | 1,830 | 666 | UBS AG | |||||||||||||||||||
07/28/15 | Buy | EUR | 1,047 | CHF | 1,094 | 466 | UBS AG | |||||||||||||||||||
07/28/15 | Buy | EUR | 1,431 | CHF | 1,496 | 36 | JPMorgan Chase | |||||||||||||||||||
07/28/15 | Buy | EUR | 1,718 | CHF | 1,798 | (2,399 | ) | UBS AG | ||||||||||||||||||
07/28/15 | Buy | EUR | 1,711 | GBP | 1,254 | (599 | ) | UBS AG | ||||||||||||||||||
12/23/15 | Buy | EUR | 1,000 | ZAR | 15,225 | (100,629 | ) | Credit Suisse First Boston Corp. | ||||||||||||||||||
01/13/16 | Buy | EUR | 620 | PLN | 2,682 | (40,013 | ) | Credit Suisse First Boston Corp. | ||||||||||||||||||
07/22/15 | Buy | HUF | 533,321 | EUR | 1,785 | (38,720 | ) | Barclays Capital Group | ||||||||||||||||||
07/22/15 | Buy | HUF | 212,349 | CHF | 732 | (3,698 | ) | UBS AG | ||||||||||||||||||
01/13/16 | Buy | PLN | 2,504 | EUR | 620 | (9,138 | ) | JPMorgan Chase | ||||||||||||||||||
07/23/15 | Buy | PLN | 2,483 | EUR | 620 | (9,318 | ) | Barclays Capital Group | ||||||||||||||||||
07/23/15 | Buy | PLN | 2,847 | CHF | 734 | (383 | ) | Citigroup Global Markets | ||||||||||||||||||
07/23/15 | Buy | PLN | 7,096 | EUR | 1,767 | (20,724 | ) | Barclays Capital Group | ||||||||||||||||||
07/23/15 | Buy | RON | 4,594 | EUR | 1,047 | (12,868 | ) | BNP Paribas | ||||||||||||||||||
07/23/15 | Buy | SEK | 9,936 | EUR | 1,070 | (8,376 | ) | Deutsche Bank AG | ||||||||||||||||||
07/24/15 | Buy | TRY | 3,700 | EUR | 1,246 | (50,722 | ) | Citigroup Global Markets | ||||||||||||||||||
07/24/15 | Buy | TRY | 4,267 | EUR | 1,431 | (51,853 | ) | Citigroup Global Markets | ||||||||||||||||||
12/23/15 | Buy | ZAR | 14,406 | EUR | 1,060 | (33,100 | ) | Credit Suisse First Boston Corp. | ||||||||||||||||||
|
| |||||||||||||||||||||||||
$(198,642) | ||||||||||||||||||||||||||
|
|
See Notes to Financial Statements.
48 |
Credit default swap agreements outstanding at April 30, 2015:
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Value at Trade Date | Value at April 30, 2015(5) | Unrealized Appreciation | ||||||||||||||||||
Exchange-traded credit default swaps on credit indices—Buy Protection(1): |
| |||||||||||||||||||||||
CDX.NA.IG.23.V1 | 12/20/19 | 1.000% | 20,000 | $ | (383,475 | ) | $ | (329,280 | ) | $ | 54,195 | |||||||||||||
|
|
|
|
|
|
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Value at Trade Date | Value at April 30, 2015(5) | Unrealized Appreciation | ||||||||||||||||||
Exchange-traded credit default swaps on credit indices—Sell Protection(2): |
| |||||||||||||||||||||||
CDX.NA.IG.23.V1 | 12/20/19 | 1.000% | 20,000 | $ | 321,158 | $ | 330,045 | $ | 8,887 | |||||||||||||||
|
|
|
|
|
|
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(3) | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation | Counterparty | ||||||||||||||||||||||
Over-the-counter credit default swaps on corporate issues—Buy Protection(1): | ||||||||||||||||||||||||||||||
Petroleos Mexicanos | 09/20/21 | 1.000% | 1,500 | 1.963 | % | $ | 81,874 | $ | 37,323 | $ | 44,551 | Hong Kong & Shanghai Bank | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(3) | Fair Value | Upfront Premiums Paid (Received) | Unrealized Depreciation | Counterparty | ||||||||||||||||||||||
Over-the-counter credit default swaps on corportate issues—Sell Protection(2): | ||||||||||||||||||||||||||||||
Petroleos Mexicanos | 09/20/21 | 1.000% | 2,500 | 1.963 | % | $ | (136,457 | ) | $ | (70,059 | ) | $(66,398) | Goldman Sachs & Co. | |||||||||||||||||
|
|
|
|
|
|
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Fair Value(5) | Upfront Premiums Paid (Received) | Unrealized Depreciation | Counterparty | |||||||||||||||||||
Over-the-counter credit default swaps on credit indices—Sell Protection(2): | ||||||||||||||||||||||||||
CMBX.NA.6.AA | 05/11/63 | 1.500% | 10,000 | $ | 101,125 | $ | 116,336 | $ | (15,211 | ) | Deutsche Bank AG | |||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 49 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(3) | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | ||||||||||||||||||||||
Over-the-counter credit default swaps on sovereign issues—Buy Protection(1): | ||||||||||||||||||||||||||||||
Kingdom of Spain | 06/20/17 | 1.000% | 700 | 0.481 | % | $ | (8,587 | ) | $ | (9,413 | ) | $ | 826 | Deutsche Bank AG | ||||||||||||||||
Kingdom of Spain | 06/20/19 | 1.000% | 700 | 0.692 | % | (9,504 | ) | (2,988 | ) | (6,516 | ) | Deutsche Bank AG | ||||||||||||||||||
Republic of Ireland | 06/20/17 | 1.000% | 700 | 0.210 | % | (12,693 | ) | (12,920 | ) | 227 | Deutsche Bank AG | |||||||||||||||||||
Republic of Ireland | 06/20/19 | 1.000% | 700 | 0.380 | % | (18,458 | ) | (10,231 | ) | (8,227 | ) | Deutsche Bank AG | ||||||||||||||||||
Republic of Italy | 06/20/17 | 1.000% | 700 | 0.676 | % | (5,642 | ) | (5,072 | ) | (570 | ) | Deutsche Bank AG | ||||||||||||||||||
Republic of Italy | 06/20/19 | 1.000% | 900 | 0.998 | % | (1,109 | ) | 5,740 | (6,849 | ) | Deutsche Bank AG | |||||||||||||||||||
Republic of Philippines | 09/20/17 | 1.000% | 1,000 | 0.416 | % | (15,111 | ) | (16,512 | ) | 1,401 | Goldman Sachs & Co. | |||||||||||||||||||
Republic of Poland | 06/20/17 | 1.000% | 1,000 | 0.199 | % | (18,378 | ) | (23,766 | ) | 5,388 | Hong Kong & Shanghai Bank | |||||||||||||||||||
Republic of Portugal | 06/20/17 | 1.000% | 700 | 0.833 | % | (3,307 | ) | 3,899 | (7,206 | ) | Deutsche Bank AG | |||||||||||||||||||
Republic of Portugal | 06/20/19 | 1.000% | 400 | 1.208 | % | 2,832 | 12,675 | (9,843 | ) | Deutsche Bank AG | ||||||||||||||||||||
Republic of Slovakia | 06/20/17 | 1.000% | 1,000 | 0.184 | % | (18,697 | ) | (28,054 | ) | 9,357 | Hong Kong & Shanghai Bank | |||||||||||||||||||
Republic of Slovenia | 06/20/19 | 1.000% | 900 | 0.899 | % | (4,711 | ) | 19,172 | (23,883 | ) | JPMorgan Chase | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$ | (113,365 | ) | $ | (67,470 | ) | $ | (45,895 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(3) | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | ||||||||||||||||||||||
Over-the-counter credit default swaps on sovereign issues—Sell Protection(2): | ||||||||||||||||||||||||||||||
Federation of Malaysia | 12/20/19 | 1.000% | 2,000 | 1.087 | % | $ | (5,436 | ) | $ | 16,516 | $ | (21,952 | ) | Barclays Capital Group |
See Notes to Financial Statements.
50 |
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(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.): | ||||||||||||||||||||||||||||||
Federation of Malaysia | 12/20/19 | 1.000% | 2,000 | 1.087 | % | $ | (5,436 | ) | $ | 16,034 | $ | (21,470 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||
Kingdom of Belgium | 09/20/15 | 1.000% | 1,300 | 0.092 | % | 6,197 | (41,965 | ) | 48,162 | Hong Kong & Shanghai Bank | ||||||||||||||||||||
Kingdom of Belgium | 12/20/24 | 1.000% | 3,500 | 0.768 | % | 73,983 | 20,902 | 53,081 | Hong Kong & Shanghai Bank | |||||||||||||||||||||
Kingdom of Belgium | 03/20/20 | 1.000% | 3,000 | 0.408 | % | 87,895 | (14,500 | ) | 102,395 | JPMorgan Chase | ||||||||||||||||||||
Kingdom of Spain | 06/20/21 | 1.000% | 700 | 0.895 | % | 5,044 | (7,646 | ) | 12,690 | Deutsche Bank AG | ||||||||||||||||||||
Kingdom of Spain | 06/20/24 | 1.000% | 700 | 1.127 | % | (6,320 | ) | (25,397 | ) | 19,077 | Deutsche Bank AG | |||||||||||||||||||
Kingdom of Spain | 09/20/21 | 1.000% | 1,500 | 0.924 | % | 8,597 | 18,280 | (9,683 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||||||
People’s Republic of China | 12/20/19 | 1.000% | 2,000 | 0.809 | % | 19,435 | 20,408 | (973 | ) | Citigroup Global Markets | ||||||||||||||||||||
People’s Republic of China | 03/20/22 | 1.000% | 1,000 | 1.170 | % | (9,584 | ) | (17,211 | ) | 7,627 | Deutsche Bank AG | |||||||||||||||||||
People’s Republic of China | 03/20/22 | 1.000% | 2,000 | 1.170 | % | (19,168 | ) | (21,992 | ) | 2,824 | Goldman Sachs & Co. | |||||||||||||||||||
People’s Republic of China | 06/20/19 | 1.000% | 650 | 0.694 | % | 8,779 | 603 | 8,176 | Hong Kong & Shanghai Bank | |||||||||||||||||||||
People’s Republic of China | 12/20/19 | 1.000% | 1,000 | 0.809 | % | 9,717 | 10,203 | (486 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||||||
Republic of Brazil | 03/20/18 | 1.000% | 1,500 | 1.804 | % | (32,151 | ) | (17,514 | ) | (14,637 | ) | Deutsche Bank AG | ||||||||||||||||||
Republic of Chile | 12/20/21 | 1.000% | 2,500 | 1.027 | % | (1,283 | ) | 2,887 | (4,170 | ) | Deutsche Bank AG | |||||||||||||||||||
Republic of Colombia | 12/20/21 | 1.000% | 2,000 | 1.672 | % | (79,170 | ) | (41,036 | ) | (38,134 | ) | Hong Kong & Shanghai Bank |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 51 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(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 France | 06/20/15 | 0.250% | 5,000 | 0.043 | % | $ | 2,922 | $ | (176,316 | ) | $ | 179,238 | Barclays Capital Group | |||||||||||||||||
Republic of France | 06/20/16 | 0.250% | 2,700 | 0.050 | % | 7,022 | (156,882 | ) | 163,904 | Barclays Capital Group | ||||||||||||||||||||
Republic of France | 06/20/17 | 0.250% | 2,500 | 0.089 | % | 9,375 | (194,311 | ) | 203,686 | Barclays Capital Group | ||||||||||||||||||||
Republic of France | 12/20/24 | 0.250% | 3,200 | 0.680 | % | (118,588 | ) | (177,192 | ) | 58,604 | Barclays Capital Group | |||||||||||||||||||
Republic of France | 12/20/16 | 0.250% | 4,500 | 0.075 | % | 14,306 | (353,862 | ) | 368,168 | Citigroup Global Markets | ||||||||||||||||||||
Republic of France | 03/20/22 | 0.250% | 11,500 | 0.517 | % | (196,797 | ) | (224,462 | ) | 27,665 | Citigroup Global Markets | |||||||||||||||||||
Republic of France | 03/20/19 | 0.250% | 1,200 | 0.232 | % | 1,195 | (14,962 | ) | 16,157 | Deutsche Bank AG | ||||||||||||||||||||
Republic of France | 03/20/24 | 0.250% | 1,200 | 0.634 | % | (37,126 | ) | (71,827 | ) | 34,701 | Goldman Sachs & Co. | |||||||||||||||||||
Republic of France | 12/20/19 | 0.250% | 7,000 | 0.290 | % | (10,572 | ) | (107,630 | ) | 97,058 | Hong Kong & Shanghai Bank | |||||||||||||||||||
Republic of France | 09/20/22 | 0.250% | 3,000 | 0.514 | % | (54,158 | ) | (290,349 | ) | 236,191 | Hong Kong & Shanghai Bank | |||||||||||||||||||
Republic of France | 03/20/20 | 0.250% | 3,000 | 0.307 | % | (7,250 | ) | (188,678 | ) | 181,428 | JPMorgan Chase | |||||||||||||||||||
Republic of France | 03/20/22 | 0.250% | 1,250 | 0.473 | % | (17,846 | ) | (167,253 | ) | 149,407 | Morgan Stanley | |||||||||||||||||||
Republic of France | 12/20/16 | 1.000% | 1,000 | 0.075 | % | 16,462 | (31,892 | ) | 48,354 | UBS AG | ||||||||||||||||||||
Republic of Indonesia | 09/20/18 | 1.000% | 2,200 | 1.052 | % | (1,239 | ) | (122,244 | ) | 121,005 | Deutsche Bank��AG | |||||||||||||||||||
Republic of Indonesia | 12/20/18 | 1.000% | 1,200 | 1.136 | % | (5,789 | ) | (70,888 | ) | 65,099 | Goldman Sachs & Co. |
See Notes to Financial Statements.
52 |
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(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 | 06/20/21 | 1.000% | 700 | 0.562 | % | $ | 18,735 | $ | 3,082 | $ | 15,653 | Deutsche Bank AG | ||||||||||||||||||
Republic of Ireland | 06/20/24 | 1.000% | 700 | 0.785 | % | 13,202 | (8,907 | ) | 22,109 | Deutsche Bank AG | ||||||||||||||||||||
Republic of Ireland | 06/20/18 | 1.000% | 2,000 | 0.292 | % | 46,487 | (81,677 | ) | 128,164 | Hong Kong & Shanghai Bank | ||||||||||||||||||||
Republic of Italy | 06/20/21 | 1.000% | 700 | 1.238 | % | (8,661 | ) | (18,943 | ) | 10,282 | Deutsche Bank AG | |||||||||||||||||||
Republic of Italy | 06/20/24 | 1.000% | 900 | 1.526 | % | (36,110 | ) | (50,860 | ) | 14,750 | Deutsche Bank AG | |||||||||||||||||||
Republic of Italy | 03/20/22 | 1.000% | 3,000 | 1.456 | % | (81,633 | ) | (108,518 | ) | 26,885 | Goldman Sachs & Co. | |||||||||||||||||||
Republic of Italy | 03/20/22 | 1.000% | 3,000 | 1.456 | % | (81,633 | ) | (108,435 | ) | 26,802 | JPMorgan Chase | |||||||||||||||||||
Republic of Italy | 12/20/16 | 1.000% | 2,000 | 0.618 | % | 14,906 | (293,422 | ) | 308,328 | UBS AG | ||||||||||||||||||||
Republic of Korea | 12/20/21 | 1.000% | 2,000 | 0.620 | % | 49,987 | 37,686 | 12,301 | Barclays Capital Group | |||||||||||||||||||||
Republic of Latvia | 09/20/19 | 1.000% | 3,000 | 0.624 | % | 51,794 | 5,686 | 46,108 | Barclays Capital Group | |||||||||||||||||||||
Republic of Latvia | 06/20/19 | 1.000% | 700 | 0.571 | % | 13,000 | 2,637 | 10,363 | Deutsche Bank AG | |||||||||||||||||||||
Republic of Lithuania | 09/20/19 | 1.000% | 3,000 | 0.630 | % | 51,156 | 5,603 | 45,553 | Barclays Capital Group | |||||||||||||||||||||
Republic of Lithuania | 06/20/19 | 1.000% | 700 | 0.576 | % | 12,855 | 2,637 | 10,218 | Deutsche Bank AG | |||||||||||||||||||||
Republic of Peru | 03/20/22 | 1.000% | 3,000 | 1.600 | % | (109,345 | ) | (105,928 | ) | (3,417 | ) | Barclays Capital Group | ||||||||||||||||||
Republic of Philippines | 03/20/22 | 1.000% | 1,000 | 1.234 | % | (13,699 | ) | (17,211 | ) | 3,512 | Deutsche Bank AG | |||||||||||||||||||
Republic of Philippines | 09/20/21 | 1.000% | 1,000 | 1.162 | % | (8,460 | ) | (15,838 | ) | 7,378 | Hong Kong & Shanghai Bank |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 53 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Reference | Termination Date | Fixed Rate | Notional Amount (000)#(4) | Implied Credit Spread at April 30, 2015(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 Poland | 12/20/21 | 1.000% | 2,000 | 0.777 | % | $ | 30,298 | $ | 33,938 | $ | (3,640 | ) | Barclays Capital Group | |||||||||||||||||
Republic of Poland | 06/20/21 | 1.000% | 1,000 | 0.724 | % | 17,308 | 17,974 | (666 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||||||
Republic of Portugal | 06/20/21 | 1.000% | 700 | 1.516 | % | (19,497 | ) | (44,566 | ) | 25,069 | Deutsche Bank AG | |||||||||||||||||||
Republic of Portugal | 06/20/24 | 1.000% | 400 | 1.823 | % | (24,889 | ) | (39,790 | ) | 14,901 | Deutsche Bank AG | |||||||||||||||||||
Republic of Slovakia | 06/20/21 | 1.000% | 1,000 | 0.629 | % | 22,966 | 21,924 | 1,042 | Hong Kong & Shanghai Bank | |||||||||||||||||||||
Republic of Slovenia | 06/20/24 | 1.000% | 900 | 1.574 | % | (40,171 | ) | (69,737 | ) | 29,566 | Hong Kong & Shanghai Bank | |||||||||||||||||||
Republic of South Africa | 12/20/18 | 1.000% | 1,200 | 1.679 | % | (28,614 | ) | (64,857 | ) | 36,243 | Goldman Sachs & Co. | |||||||||||||||||||
Republic of Turkey | 03/20/20 | 1.000% | 2,000 | 2.174 | % | (104,458 | ) | (76,305 | ) | (28,153 | ) | JPMorgan Chase | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$ | (551,460 | ) | $ | (3,404,003 | ) | $ | 2,852,543 | |||||||||||||||||||||||
|
|
|
|
|
|
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases.
(1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced 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 |
See Notes to Financial Statements.
54 |
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 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, when compared to the notional amount of the swap, 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. |
Interest rate swap agreements outstanding at April 30, 2015:
Notional | Termination Date | Fixed | Floating | Value at Trade Date | Value at April 30, 2015 | Unrealized Appreciation (Depreciation) | ||||||||||||||||
| Exchange-traded swap agreements: |
| ||||||||||||||||||||
CAD | 4,500 | 01/09/20 | 1.716% | 3 Month Canadian Banker’s Acceptance(1) | $ | (1,974 | ) | $ | (54,365 | ) | $ | (52,391 | ) | |||||||||
CAD | 3,000 | 08/20/23 | 3.134% | 3 Month Canadian Banker’s Acceptance(1) | 18,731 | (251,961 | ) | (270,692 | ) | |||||||||||||
CHF | 9,140 | 05/04/17 | (0.648%) | 6 Month CHF LIBOR(1) | 183 | 5,305 | 5,122 | |||||||||||||||
CHF | 1,840 | 05/04/25 | 0.160% | 6 Month CHF LIBOR(2) | 177 | (14,367 | ) | (14,544 | ) | |||||||||||||
CZK | 34,000 | 01/23/22 | 0.513% | 6 Month PRIBOR(2) | 965 | (6,954 | ) | (7,919 | ) | |||||||||||||
DKK | 15,000 | 01/27/20 | 0.385% | 6 Month CIBOR(2) | 102 | (7,555 | ) | (7,657 | ) | |||||||||||||
DKK | 13,600 | 05/04/25 | 0.825% | 6 Month CIBOR(2) | 37 | (17,904 | ) | (17,941 | ) | |||||||||||||
EUR | 6,000 | 09/25/15 | (0.048%) | 1 Day EONIA(1) | 178 | (1,196 | ) | (1,374 | ) | |||||||||||||
EUR | 4,500 | 09/24/16 | (0.045%) | 1 Day EONIA(1) | 412 | (5,181 | ) | (5,593 | ) | |||||||||||||
EUR | 4,000 | 03/13/17 | 0.493% | 3 Month EURIBOR(1) | 8,710 | (40,260 | ) | (48,970 | ) | |||||||||||||
EUR | 2,000 | 10/24/18 | — | 3 Month EURIBOR(3) | (364 | ) | 4,694 | 5,058 | ||||||||||||||
EUR | 830 | 07/02/19 | 0.656% | 6 Month EURIBOR(2) | (1,935 | ) | 15,962 | 17,897 | ||||||||||||||
EUR | 610 | 07/02/21 | 0.994% | 6 Month EURIBOR(2) | (3,139 | ) | 25,067 | 28,206 | ||||||||||||||
EUR | 700 | 08/14/21 | 0.841% | 3 Month EURIBOR(2) | (3,216 | ) | 25,418 | 28,634 | ||||||||||||||
EUR | 700 | 09/03/23 | 2.171% | 6 Month EURIBOR(2) | (18,654 | ) | 103,737 | 122,391 | ||||||||||||||
EUR | 1,600 | 10/10/23 | 2.130% | 6 Month EURIBOR(2) | (41,540 | ) | 232,858 | 274,398 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 55 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Notional | Termination Date | Fixed | Floating | Value at Trade Date | Value at April 30, 2015 | Unrealized Appreciation (Depreciation) | ||||||||||||||||
| Exchange-traded swap agreements (cont’d.): |
| ||||||||||||||||||||
EUR | 2,000 | 03/04/29 | 2.302% | 6 Month EURIBOR(2) | $ | 230,703 | $ | 444,006 | $ | 213,303 | ||||||||||||
EUR | 1,000 | 06/04/29 | 2.002% | 6 Month EURIBOR(2) | (20,124 | ) | 178,417 | 198,541 | ||||||||||||||
EUR | 1,360 | 11/11/29 | 1.453% | 6 Month EURIBOR(2) | (5,789 | ) | 128,826 | 134,615 | ||||||||||||||
EUR | 1,800 | 01/14/30 | 1.022% | 6 Month EURIBOR(2) | 4,139 | 46,082 | 41,943 | |||||||||||||||
EUR | 440 | 07/01/43 | 2.505% | 6 Month EURIBOR(2) | (20,047 | ) | 184,083 | 204,130 | ||||||||||||||
EUR | 500 | 09/03/43 | 2.691% | 6 Month EURIBOR(2) | (28,219 | ) | 236,863 | 265,082 | ||||||||||||||
EUR | 1,000 | 11/21/44 | 1.790% | 6 Month EURIBOR(2) | (7,020 | ) | 229,146 | 236,166 | ||||||||||||||
EUR | 400 | 02/10/45 | 1.158% | 6 Month EURIBOR(2) | 2,285 | 16,072 | 13,787 | |||||||||||||||
GBP | 690 | 06/30/19 | 2.166% | 6 Month GBP LIBOR(2) | (1,327 | ) | 32,691 | 34,018 | ||||||||||||||
GBP | 510 | 06/30/21 | 2.469% | 6 Month GBP LIBOR(2) | (1,524 | ) | 38,538 | 40,062 | ||||||||||||||
HKD | 48,000 | 02/25/16 | 0.630% | 3 Month HIBOR(2) | 24 | 7,839 | 7,815 | |||||||||||||||
JPY | 320,000 | 01/29/22 | 0.316% | 6 Month JPY LIBOR(2) | 111 | (6,775 | ) | (6,886 | ) | |||||||||||||
JPY | 90,000 | 02/20/29 | 1.260% | 6 Month JPY LIBOR(2) | (5,034 | ) | 46,394 | 51,428 | ||||||||||||||
JPY | 50,000 | 04/02/29 | 1.288% | 6 Month JPY LIBOR(2) | (2,971 | ) | 27,136 | 30,107 | ||||||||||||||
JPY | 100,000 | 08/18/29 | 1.070% | 6 Month JPY LIBOR(2) | (960 | ) | 27,383 | 28,343 | ||||||||||||||
JPY | 100,000 | 08/28/29 | 1.043% | 6 Month JPY LIBOR(2) | (413 | ) | 24,079 | 24,492 | ||||||||||||||
JPY | 200,000 | 09/09/29 | 1.061% | 6 Month JPY LIBOR(2) | (2,700 | ) | 52,163 | 54,863 | ||||||||||||||
JPY | 160,000 | 09/29/29 | 1.064% | 6 Month JPY LIBOR(2) | (1,288 | ) | 41,743 | 43,031 | ||||||||||||||
JPY | 90,000 | 11/05/34 | 1.293% | 6 Month JPY LIBOR(2) | 115 | 24,454 | 24,339 | |||||||||||||||
JPY | 70,000 | 12/03/34 | 1.265% | 6 Month JPY LIBOR(2) | 65 | 15,759 | 15,694 | |||||||||||||||
JPY | 260,000 | 01/07/35 | 1.108% | 6 Month JPY LIBOR(2) | 616 | (6,467 | ) | (7,083 | ) | |||||||||||||
JPY | 50,000 | 01/22/35 | 0.950% | 6 Month JPY LIBOR(2) | 212 | (13,622 | ) | (13,834 | ) | |||||||||||||
JPY | 120,000 | 02/12/35 | 1.161% | 6 Month JPY LIBOR(2) | 126 | 6,370 | 6,244 | |||||||||||||||
JPY | 320,000 | 02/24/35 | 1.200% | 6 Month JPY LIBOR(2) | 282 | 35,688 | 35,406 | |||||||||||||||
JPY | 160,000 | 03/03/35 | 1.153% | 6 Month JPY LIBOR(2) | 199 | 5,835 | 5,636 | |||||||||||||||
MXN | 90,000 | 02/09/18 | 4.630% | 28 Day Mexican Interbank Rate(2) | (646 | ) | 2,646 | 3,292 | ||||||||||||||
MXN | 35,000 | 04/18/19 | 5.480% | 28 Day Mexican Interbank Rate(2) | (9,807 | ) | 35,799 | 45,606 | ||||||||||||||
MXN | 27,400 | 12/27/24 | 5.795% | 28 Day Mexican Interbank Rate(2) | (384 | ) | (42,618 | ) | (42,234 | ) | ||||||||||||
MXN | 4,000 | 07/27/34 | 6.720% | 28 Day Mexican Interbank Rate(2) | (95 | ) | 3,522 | 3,617 | ||||||||||||||
NOK | 7,000 | 08/26/16 | 2.320% | 6 Month NIBOR(2) | (2,869 | ) | 12,134 | 15,003 | ||||||||||||||
NOK | 11,000 | 01/23/22 | 1.435% | 6 Month NIBOR(2) | 250 | (42,698 | ) | (42,948 | ) | |||||||||||||
NZD | 2,600 | 03/13/19 | 4.550% | 3 Month BBR(2) | (2,475 | ) | 70,375 | 72,850 | ||||||||||||||
NZD | 750 | 03/13/24 | 5.080% | 3 Month BBR(2) | (3,116 | ) | 53,893 | 57,009 | ||||||||||||||
NZD | 1,900 | 05/01/25 | 3.825% | 3 Month BBR(2) | 125 | (4,135 | ) | (4,260 | ) | |||||||||||||
PLN | 9,000 | 02/13/22 | 1.990% | 6 Month WIBOR(2) | (621 | ) | (42,693 | ) | (42,072 | ) | ||||||||||||
SEK | 13,300 | 08/26/16 | 1.930% | 3 Month STIBOR(2) | (11,825 | ) | 44,192 | 56,017 | ||||||||||||||
SEK | 20,000 | 01/20/20 | 0.485% | 3 Month STIBOR(2) | 1,519 | 12,277 | 10,758 | |||||||||||||||
SEK | 12,700 | 08/29/24 | 1.657% | 3 Month STIBOR(2) | 17,471 | 92,637 | 75,166 | |||||||||||||||
275,000 | 09/17/15 | 0.181% | 1 Day Overnight Fed Funds Effective Rate(2) | 219 | (2,091 | ) | (2,310 | ) |
See Notes to Financial Statements.
56 |
Notional | Termination Date | Fixed | Floating | Value at Trade Date | Value at April 30, 2015 | Unrealized Appreciation (Depreciation) | ||||||||||||||||
| Exchange-traded swap agreements (cont’d.): |
| ||||||||||||||||||||
335,600 | 10/28/15 | 0.278% | 1 Day Overnight Fed Funds Effective Rate(1) | $ | 234 | $ | (13,462 | ) | $ | (13,696 | ) | |||||||||||
4,600 | 07/07/18 | 1.515% | 3 Month LIBOR(1) | 168 | (46,270 | ) | (46,438 | ) | ||||||||||||||
11,100 | 08/31/18 | 1.644% | 3 Month LIBOR(1) | 195 | (151,256 | ) | (151,451 | ) | ||||||||||||||
5,900 | 08/31/18 | 1.686% | 3 Month LIBOR(1) | 174 | (88,614 | ) | (88,788 | ) | ||||||||||||||
8,800 | 08/31/18 | 1.758% | 3 Month LIBOR(1) | 185 | (153,268 | ) | (153,453 | ) | ||||||||||||||
47,100 | 02/28/19 | 1.806% | 3 Month LIBOR(1) | 113,042 | (814,583 | ) | (927,625 | ) | ||||||||||||||
21,000 | 08/08/19 | 3.111% | 3 Month LIBOR(2) | 203 | 785,675 | 785,472 | ||||||||||||||||
2,960 | 12/02/19 | 1.639% | 3 Month LIBOR(1) | 164 | (17,349 | ) | (17,513 | ) | ||||||||||||||
2,500 | 02/04/20 | 1.523% | 3 Month LIBOR(1) | 160 | 2,535 | 2,375 | ||||||||||||||||
4,080 | 03/11/20 | 1.824% | 3 Month LIBOR(1) | 167 | (50,484 | ) | (50,651 | ) | ||||||||||||||
1,200 | 03/23/20 | 1.616% | 3 Month LIBOR(1) | 155 | (2,753 | ) | (2,908 | ) | ||||||||||||||
130,800 | 12/31/21 | 1.787% | 3 Month LIBOR(1) | (33,246 | ) | 726,050 | 759,296 | |||||||||||||||
8,000 | 12/31/21 | 1.850% | 3 Month LIBOR(1) | 194 | 12,837 | 12,643 | ||||||||||||||||
1,700 | 02/04/22 | 1.760% | 3 Month LIBOR(1) | 159 | 9,578 | 9,419 | ||||||||||||||||
7,960 | 08/18/24 | 2.750% | 3 Month LIBOR(2) | 134 | 461,786 | 461,652 | ||||||||||||||||
2,200 | 03/23/25 | 2.045% | 3 Month LIBOR(1) | 166 | 15,118 | 14,952 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||
$ | 170,134 | $ | 2,704,781 | $ | 2,534,647 | |||||||||||||||||
|
|
|
|
|
|
Cash of $1,230,000 and Foreign Bonds with a combined market value of $5,332,975 have been segregated with Citigroup Global Markets to cover requirements for open exchange-traded and cleared swap contracts at April 30, 2015.
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||
| Over-the-counter swap agreements: | |||||||||||||||||||||||||
AUD | 1,000 | 09/07/21 | 4.945% | 6 Month BBSW(2) | $ | 107,032 | $ | — | $ | 107,032 | Citigroup Global Markets | |||||||||||||||
AUD | 1,000 | 08/31/22 | 3.890% | 6 Month BBSW(2) | 60,186 | — | 60,186 | Hong Kong & Shanghai Bank | ||||||||||||||||||
AUD | 1,400 | 08/31/22 | 3.920% | 6 Month BBSW(2) | 86,208 | — | 86,208 | Citigroup Global Markets | ||||||||||||||||||
AUD | 1,700 | 09/21/22 | 3.830% | 6 Month BBSW(2) | 98,152 | — | 98,152 | Barclays Capital Group | ||||||||||||||||||
AUD | 2,800 | 08/08/23 | 4.170% | 6 Month BBSW(1) | (227,453 | ) | — | (227,453 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||
AUD | 2,000 | 12/19/32 | 4.423% | 6 Month BBSW(2) | 263,474 | — | 263,474 | Barclays Capital Group | ||||||||||||||||||
AUD | 650 | 03/15/43 | 4.755% | 6 Month BBSW(2) | 138,472 | — | 138,472 | Hong Kong & Shanghai Bank |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 57 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||
| Over-the-counter swap agreements (cont’d.): | |||||||||||||||||||||||||
BRL | 4,228 | 01/01/21 | 12.640% | 1 Day BZDIOVER(2) | $ | 38,713 | $ | — | $ | 38,713 | Deutsche Bank AG | |||||||||||||||
BRL | 859 | 01/01/21 | 13.115% | 1 Day BZDIOVER(2) | 19,131 | — | 19,131 | Deutsche Bank AG | ||||||||||||||||||
CAD | 3,200 | 02/22/17 | 1.708% | 3 Month Canadian Banker’s Acceptance(2) | 33,768 | — | 33,768 | Citigroup Global Markets | ||||||||||||||||||
CAD | 650 | 11/06/17 | 1.645% | 3 Month Canadian Banker’s Acceptance(2) | 8,049 | — | 8,049 | Bank of Nova Scotia | ||||||||||||||||||
CAD | 500 | 12/27/17 | 1.700% | 3 Month Canadian Banker’s Acceptance(2) | 6,832 | — | 6,832 | Bank of Nova Scotia | ||||||||||||||||||
CAD | 4,200 | 08/17/22 | 2.370% | 3 Month Canadian Banker’s Acceptance(2) | 162,873 | — | 162,873 | Bank of Nova Scotia | ||||||||||||||||||
CLP | 2,800,000 | 01/21/20 | 3.460% | 6 Month CLICP(2) | (66,906 | ) | — | (66,906 | ) | JPMorgan Chase | ||||||||||||||||
CLP | 700,000 | 02/27/24 | 5.230% | 6 Month CLICP(2) | 85,006 | — | 85,006 | Deutsche Bank AG | ||||||||||||||||||
COP | 3,300,000 | 11/19/18 | 5.380% | 1 Day COLIBOR OIS(2) | 36,429 | — | 36,429 | Hong Kong & Shanghai Bank | ||||||||||||||||||
COP | 6,300,000 | 02/13/20 | 5.050% | 1 Day COLIBOR OIS(2) | 7,880 | — | 7,880 | Deutsche Bank AG | ||||||||||||||||||
COP | 1,000,000 | 06/27/23 | 6.840% | 1 Day COLIBOR OIS(2) | 39,176 | — | 39,176 | Deutsche Bank AG | ||||||||||||||||||
COP | 455,000 | 04/10/25 | 6.020% | 1 Day COLIBOR OIS(2) | 1,438 | — | 1,438 | JPMorgan Chase | ||||||||||||||||||
CZK | 25,000 | 06/27/18 | 1.635% | 6 Month PRIBOR(2) | 52,289 | — | 52,289 | Hong Kong & Shanghai Bank | ||||||||||||||||||
DKK | 31,000 | 01/25/16 | 0.910% | 6 Month CIBOR(2) | 27,670 | — | 27,670 | Deutsche Bank AG | ||||||||||||||||||
DKK | 3,200 | 03/01/22 | 2.300% | 6 Month CIBOR(2) | 56,689 | — | 56,689 | Credit Suisse First Boston Corp. | ||||||||||||||||||
EUR | 600 | 07/27/22 | 1.772% | 6 Month EURIBOR(2) | 71,070 | — | 71,070 | Citigroup Global Markets |
See Notes to Financial Statements.
58 |
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||
| Over-the-counter swap agreements (cont’d.): | |||||||||||||||||||||||||
EUR | 650 | 09/24/42 | 2.404% | 6 Month EURIBOR(2) | $ | 263,159 | $ | — | $ | 263,159 | Citigroup Global Markets | |||||||||||||||
EUR | 850 | 03/27/43 | 2.327% | 6 Month EURIBOR(2) | 318,893 | — | 318,893 | Bank of America | ||||||||||||||||||
GBP | 500 | 08/01/16 | 2.060% | 6 Month GBP LIBOR(2) | 14,133 | — | 14,133 | Citigroup Global Markets | ||||||||||||||||||
GBP | 1,000 | 08/17/22 | 1.975% | 3 Month GBP LIBOR(2) | 42,339 | — | 42,339 | Hong Kong & Shanghai Bank | ||||||||||||||||||
GBP | 1,600 | 01/13/32 | 2.788% | 6 Month GBP LIBOR(2) | 262,469 | — | 262,469 | Barclays Capital Group | ||||||||||||||||||
GBP | 1,420 | 04/24/43 | 2.932% | 6 Month GBP LIBOR(2) | 356,925 | — | 356,925 | Hong Kong & Shanghai Bank | ||||||||||||||||||
HKD | 27,000 | 01/04/18 | 0.805% | 3 Month HIBOR(1) | 15,986 | — | 15,986 | Bank of America | ||||||||||||||||||
HKD | 25,000 | 07/29/18 | 1.625% | 3 Month HIBOR(2) | 51,061 | — | 51,061 | Hong Kong & Shanghai Bank | ||||||||||||||||||
HKD | 25,000 | 10/08/18 | 1.635% | 3 Month HIBOR(1) | (51,872 | ) | — | (51,872 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||
HKD | 30,800 | 04/28/20 | 1.400% | 3 Month HIBOR(1) | 13,111 | — | 13,111 | Citigroup Global Markets | ||||||||||||||||||
HKD | 8,200 | 08/22/22 | 1.560% | 3 Month HIBOR(1) | 12,152 | — | 12,152 | Hong Kong & Shanghai Bank | ||||||||||||||||||
HUF | 620,000 | 11/19/18 | 4.290% | 6 Month BUBOR(2) | 195,663 | — | 195,663 | Credit Suisse First Boston Corp. | ||||||||||||||||||
HUF | 330,000 | 03/27/23 | 5.510% | 6 Month BUBOR(2) | 245,255 | — | 245,255 | Deutsche Bank AG | ||||||||||||||||||
ILS | 6,500 | 11/20/18 | 2.200% | 3 Month TELBOR(2) | 117,392 | — | 117,392 | Hong Kong & Shanghai Bank | ||||||||||||||||||
ILS | 3,200 | 03/06/23 | 3.525% | 3 Month TELBOR(2) | 141,570 | — | 141,570 | Deutsche Bank AG | ||||||||||||||||||
ILS | 4,200 | 06/27/23 | 3.730% | 3 Month TELBOR(2) | 232,990 | — | 232,990 | Credit Suisse First Boston Corp. | ||||||||||||||||||
JPY | 300,000 | 01/15/16 | 0.790% | Japan CPI(2) | (20,339 | ) | — | (20,339 | ) | Barclays Capital Group | ||||||||||||||||
JPY | 60,000 | 02/02/21 | 1.265% | 6 Month JPY LIBOR(2) | 29,262 | — | 29,262 | Barclays Capital Group | ||||||||||||||||||
JPY | 96,000 | 02/16/21 | 1.365% | 6 Month JPY LIBOR(2) | 51,603 | — | 51,603 | Barclays Capital Group | ||||||||||||||||||
JPY | 50,000 | 06/02/21 | 1.200% | 6 Month JPY LIBOR(2) | 24,331 | — | 24,331 | Barclays Capital Group | ||||||||||||||||||
JPY | 45,000 | 06/16/21 | 1.170% | 6 Month JPY LIBOR(2) | 21,084 | — | 21,084 | Barclays Capital Group |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 59 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||
| Over-the-counter swap agreements (cont’d.): | |||||||||||||||||||||||||
JPY | 40,000 | 06/28/21 | 1.123% | 6 Month JPY LIBOR(2) | $ | 17,515 | $ | — | $ | 17,515 | Barclays Capital Group | |||||||||||||||
JPY | 30,000 | 07/22/21 | 1.090% | 6 Month JPY LIBOR(2) | 12,563 | — | 12,563 | Citigroup Global Markets | ||||||||||||||||||
JPY | 220,000 | 07/26/22 | 0.745% | 6 Month JPY LIBOR(2) | 50,636 | — | 50,636 | Barclays Capital Group | ||||||||||||||||||
JPY | 55,000 | 11/20/22 | 0.748% | 6 Month JPY LIBOR(2) | 13,218 | — | 13,218 | Barclays Capital Group | ||||||||||||||||||
JPY | 120,000 | 12/27/22 | 0.803% | 6 Month JPY LIBOR(2) | 32,701 | — | 32,701 | Barclays Capital Group | ||||||||||||||||||
JPY | 175,000 | 03/15/23 | 0.755% | 6 Month JPY LIBOR(2) | 39,514 | — | 39,514 | Barclays Capital Group | ||||||||||||||||||
JPY | 85,500 | 07/21/24 | 1.489% | 6 Month JPY LIBOR(2) | 67,092 | — | 67,092 | Citigroup Global Markets | ||||||||||||||||||
JPY | 60,000 | 07/04/26 | 1.603% | 6 Month JPY LIBOR(2) | 56,192 | — | 56,192 | Citigroup Global Markets | ||||||||||||||||||
JPY | 70,000 | 08/02/26 | 1.534% | 6 Month JPY LIBOR(2) | 60,421 | — | 60,421 | Citigroup Global Markets | ||||||||||||||||||
JPY | 300,000 | 09/03/27 | 1.290% | 6 Month JPY LIBOR(2) | 183,275 | — | 183,275 | Citigroup Global Markets | ||||||||||||||||||
JPY | 35,000 | 10/02/27 | 1.238% | 6 Month JPY LIBOR(2) | 19,156 | — | 19,156 | Barclays Capital Group | ||||||||||||||||||
JPY | 55,000 | 11/05/27 | 1.270% | 6 Month JPY LIBOR(2) | 33,906 | — | 33,906 | Barclays Capital Group | ||||||||||||||||||
JPY | 40,000 | 12/04/27 | 1.261% | 6 Month JPY LIBOR(2) | 23,896 | — | 23,896 | Citigroup Global Markets | ||||||||||||||||||
JPY | 40,000 | 12/14/27 | 1.235% | 6 Month JPY LIBOR(2) | 22,600 | — | 22,600 | Hong Kong & Shanghai Bank | ||||||||||||||||||
JPY | 120,000 | 02/20/28 | 1.353% | 6 Month JPY LIBOR(2) | 80,236 | — | 80,236 | Deutsche Bank AG | ||||||||||||||||||
JPY | 200,000 | 04/16/28 | 1.235% | 6 Month JPY LIBOR(2) | 104,946 | — | 104,946 | Credit Suisse First Boston Corp. | ||||||||||||||||||
JPY | 110,000 | 08/18/31 | 1.750% | 6 Month JPY LIBOR(2) | 117,065 | — | 117,065 | Barclays Capital Group | ||||||||||||||||||
JPY | 25,000 | 08/30/31 | 1.750% | 6 Month JPY LIBOR(2) | 26,514 | — | 26,514 | Barclays Capital Group | ||||||||||||||||||
JPY | 240,000 | 01/18/32 | 1.638% | 6 Month JPY LIBOR(2) | 218,814 | — | 218,814 | Barclays Capital Group | ||||||||||||||||||
JPY | 30,000 | 11/05/32 | 1.563% | 6 Month JPY LIBOR(2) | 24,248 | — | 24,248 | Barclays Capital Group |
See Notes to Financial Statements.
60 |
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||
| Over-the-counter swap agreements (cont’d.): | |||||||||||||||||||||||||
JPY | 160,000 | 11/14/32 | 2.390% | 6 Month JPY LIBOR(2) | $ | 105,942 | $ | — | $ | 105,942 | Citigroup Global Markets | |||||||||||||||
JPY | 35,000 | 12/14/32 | 1.575% | 6 Month JPY LIBOR(2) | 29,050 | — | 29,050 | Hong Kong & Shanghai Bank | ||||||||||||||||||
JPY | 40,000 | 07/09/42 | 1.705% | 6 Month JPY LIBOR(2) | 36,896 | — | 36,896 | Barclays Capital Group | ||||||||||||||||||
JPY | 20,000 | 10/02/42 | 1.659% | 6 Month JPY LIBOR(2) | 14,179 | — | 14,179 | Barclays Capital Group | ||||||||||||||||||
JPY | 70,000 | 01/28/43 | 1.955% | 6 Month JPY LIBOR(2) | 94,265 | — | 94,265 | JPMorgan Chase | ||||||||||||||||||
JPY | 137,500 | 05/21/43 | 2.003% | 6 Month JPY LIBOR(1) | (203,528 | ) | — | (203,528 | ) | Credit Suisse First Boston Corp. | ||||||||||||||||
JPY | 45,000 | 05/28/43 | 2.088% | 6 Month JPY LIBOR(1) | (74,610 | ) | — | (74,610 | ) | Deutsche Bank AG | ||||||||||||||||
JPY | 45,800 | 05/29/43 | 2.013% | 6 Month JPY LIBOR(1) | (68,614 | ) | — | (68,614 | ) | Credit Suisse First Boston Corp. | ||||||||||||||||
JPY | 100,000 | 06/03/43 | 1.970% | 6 Month JPY LIBOR(2) | 140,637 | — | 140,637 | JPMorgan Chase | ||||||||||||||||||
KRW | 1,500,000 | 08/14/21 | 2.773% | 3 Month KRW Certificate of Deposit Rate(2) | 55,447 | — | 55,447 | Hong Kong & Shanghai Bank | ||||||||||||||||||
KRW | 900,000 | 11/05/24 | 2.425% | 3 Month KRW Certificate of Deposit Rate(2) | 12,233 | — | 12,233 | Barclays Capital Group | ||||||||||||||||||
MXN | 45,000 | 12/02/15 | 5.090% | 28 Day Mexican Interbank Rate(2) | 31,701 | — | 31,701 | Deutsche Bank AG | ||||||||||||||||||
MXN | 37,000 | 06/20/18 | 6.020% | 28 Day Mexican Interbank Rate(2) | 93,779 | — | 93,779 | Credit Suisse First Boston Corp. | ||||||||||||||||||
MXN | 20,000 | 08/13/19 | 4.985% | 28 Day Mexican Interbank Rate(2) | (8,338 | ) | — | (8,338 | ) | Hong Kong & Shanghai Bank |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 61 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||
| Over-the-counter swap agreements (cont’d.): | |||||||||||||||||||||||||
MXN | 15,700 | 04/28/23 | 5.100% | 28 Day Mexican Interbank Rate(2) | $ | (56,896 | ) | $ | — | $ | (56,896 | ) | Barclays Capital Group | |||||||||||||
MXN | 17,500 | 04/09/42 | 7.890% | 28 Day Mexican Interbank Rate(2) | 169,124 | — | 169,124 | Barclays Capital Group | ||||||||||||||||||
MYR | 1,700 | 04/28/25 | 4.040% | 3 Month KLIBOR(2) | (2,797 | ) | — | (2,797 | ) | Citigroup Global Markets | ||||||||||||||||
NOK | 13,500 | 11/07/17 | 2.550% | 6 Month NIBOR(2) | 56,290 | — | 56,290 | Citigroup Global Markets | ||||||||||||||||||
NOK | 4,500 | 11/07/22 | 3.190% | 6 Month NIBOR(2) | 55,734 | — | 55,734 | Citigroup Global Markets | ||||||||||||||||||
NZD | 3,200 | 08/18/16 | 4.173% | 3 Month BBR(2) | 23,026 | — | 23,026 | Citigroup Global Markets | ||||||||||||||||||
NZD | 1,320 | 09/25/22 | 3.790% | 3 Month BBR(2) | 2,945 | — | 2,945 | Citigroup Global Markets | ||||||||||||||||||
NZD | 910 | 08/09/23 | 4.653% | 3 Month BBR(2) | 43,374 | — | 43,374 | Hong Kong & Shanghai Bank | ||||||||||||||||||
PLN | 15,000 | 06/28/18 | 3.790% | 6 Month WIBOR(2) | 332,649 | — | 332,649 | Deutsche Bank AG | ||||||||||||||||||
PLN | 4,900 | 06/27/21 | 5.390% | 6 Month WIBOR(2) | 298,323 | — | 298,323 | JPMorgan Chase | ||||||||||||||||||
PLN | 5,700 | 04/12/22 | 5.030% | 6 Month WIBOR(2) | 285,517 | — | 285,517 | Hong Kong & Shanghai Bank | ||||||||||||||||||
PLN | 4,000 | 03/14/23 | 3.810% | 6 Month WIBOR(2) | 122,772 | — | 122,772 | Bank of America | ||||||||||||||||||
PLN | 4,100 | 03/18/23 | 3.660% | 6 Month WIBOR(2) | 113,348 | — | 113,348 | Hong Kong & Shanghai Bank | ||||||||||||||||||
PLN | 3,600 | 06/27/26 | 5.280% | 6 Month WIBOR(1) | (315,143 | ) | — | (315,143 | ) | JPMorgan Chase | ||||||||||||||||
PLN | 4,100 | 04/12/27 | 4.810% | 6 Month WIBOR(1) | (281,261 | ) | — | (281,261 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||
PLN | 3,500 | 03/18/43 | 3.380% | 6 Month WIBOR(1) | (166,128 | ) | — | (166,128 | ) | Hong Kong & Shanghai Bank | ||||||||||||||||
RUB | 110,000 | 05/14/15 | 9.800% | 3 Month MOSPRIME(1) | (116,165 | ) | — | (116,165 | ) | Credit Suisse First Boston Corp. | ||||||||||||||||
RUB | 100,000 | 06/02/15 | 9.690% | 3 Month MOSPRIME(1) | (102,151 | ) | — | (102,151 | ) | Hong Kong & Shanghai Bank |
See Notes to Financial Statements.
62 |
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||||
| Over-the-counter swap agreements (cont’d.): | |||||||||||||||||||||||||
SEK | 25,000 | 05/10/16 | 1.363% | 3 Month STIBOR(2) | $ | 84,570 | $ | — | $ | 84,570 | Royal Bank of Scotland Group PLC | |||||||||||||||
SEK | 3,700 | 02/27/22 | 2.520% | 3 Month STIBOR(2) | 55,686 | — | 55,686 | Citigroup Global Markets | ||||||||||||||||||
SGD | 1,800 | 01/08/18 | 0.935% | 6 Month SIBOR(2) | (16,687 | ) | — | (16,687 | ) | Bank of America | ||||||||||||||||
SGD | 5,450 | 04/30/20 | 1.850% | 6 Month SIBOR(2) | (16,119 | ) | — | (16,119 | ) | Citigroup Global Markets | ||||||||||||||||
THB | 100,000 | 05/14/16 | 2.630% | 3 Month BIBOR(2) | 48,155 | — | 48,155 | Citigroup Global Markets | ||||||||||||||||||
THB | 50,000 | 12/20/17 | 3.230% | 6 Month BIBOR(2) | 65,624 | — | 65,624 | Bank of America | ||||||||||||||||||
THB | 28,900 | 04/30/25 | 2.560% | 6 Month BIBOR(2) | 5,901 | — | 5,901 | Citigroup Global Markets | ||||||||||||||||||
TWD | 390,000 | 09/29/15 | 1.090% | 3 Month Secondary Market CP Bank Rate(1) | (11,360 | ) | — | (11,360 | ) | Bank of America | ||||||||||||||||
ZAR | 55,000 | 06/25/18 | 7.440% | 3 Month JIBAR(2) | 44,915 | — | 44,915 | Hong Kong & Shanghai Bank | ||||||||||||||||||
ZAR | 17,000 | 11/15/23 | 8.085% | 3 Month JIBAR(2) | 31,220 | — | 31,220 | Credit Suisse First Boston Corp. | ||||||||||||||||||
ZAR | 5,000 | 09/03/33 | 8.970% | 3 Month JIBAR(2) | 27,549 | — | 27,549 | Hong Kong & Shanghai Bank | ||||||||||||||||||
ZAR | 12,000 | 11/03/34 | 8.230% | 3 Month JIBAR(2) | (4,791 | ) | — | (4,791 | ) | Barclays Capital Group | ||||||||||||||||
20,000 | 12/08/15 | 0.670% | CPI Urban Consumers(1) | (135,455 | ) | — | (135,455 | ) | JPMorgan Chase | |||||||||||||||||
10,000 | 12/15/15 | 0.400% | CPI Urban Consumers(1) | (35,050 | ) | — | (35,050 | ) | Deutsche Bank AG | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
$5,513,611 | $ | — | $ | 5,513,611 | ||||||||||||||||||||||
|
|
|
|
|
|
(1) | Fund pays the fixed rate and receives the floating rate. |
(2) | Fund pays the floating rate and receives the fixed rate. |
(3) | Fund pays the floating rate of 3 Month EURIBOR and receives the floating rate of 1 Month EURIBOR. |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 63 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Currency swap agreements outstanding at April 30, 2015:
Notional | Fund Receives | Notional Amount (000) | Fund Pays | Counterparty | Termination Date | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
326 | 3 Month LIBOR | EUR | 250 | 3 Month EURIBOR minus 31.70 bps | Barclays Capital Group | 12/14/15 | $ | 45,558 | $ | — | $ | 45,558 | ||||||||||||||||
2,105 | 3 Month LIBOR plus 190 bps | CHF | 2,000 | 2.625% | Citigroup Global Markets | 05/12/15 | (84,418 | ) | (78,305 | ) | (6,113 | ) | ||||||||||||||||
257 | 3 Month LIBOR plus 313 bps | JPY | 20,000 | 4.500% | Citigroup Global Markets | 06/08/15 | 83,890 | (11,241 | ) | 95,131 | ||||||||||||||||||
307 | 3 Month LIBOR plus 333 bps | JPY | 24,000 | 4.500% | Citigroup Global Markets | 06/08/15 | 99,795 | (12,096 | ) | 111,891 | ||||||||||||||||||
1,246 | 3 Month LIBOR plus 498 bps | JPY | 100,000 | 4.500% | Citigroup Global Markets | 06/08/15 | 386,615 | 62 | 386,553 | |||||||||||||||||||
690 | 3 Month LIBOR plus 197 bps | EUR | 500 | 3.750% | Citigroup Global Markets | 10/12/15 | 113,711 | (16,600 | ) | 130,311 | ||||||||||||||||||
649 | 3 Month LIBOR plus 225 bps | EUR | 500 | 3.750% | Citigroup Global Markets | 10/12/15 | 73,097 | (16,422 | ) | 89,519 | ||||||||||||||||||
582 | 3 Month LIBOR plus 412 bps | EUR | 480 | 4.500% | Citigroup Global Markets | 11/30/15 | 36,781 | (5,471 | ) | 42,252 | ||||||||||||||||||
263 | 3 Month LIBOR | EUR | 200 | 3 Month EURIBOR minus 30.00 bps | Citigroup Global Markets | 12/18/15 | 38,791 | — | 38,791 | |||||||||||||||||||
651 | 3 Month LIBOR plus 310 bps | EUR | 500 | 3.625% | Citigroup Global Markets | 02/01/16 | 89,505 | 42 | 89,463 | |||||||||||||||||||
303 | 3 Month LIBOR plus 272 bps | EUR | 227 | 4.500% | Citigroup Global Markets | 04/05/16 | 44,220 | (15,773 | ) | 59,993 | ||||||||||||||||||
651 | 3 Month LIBOR plus 273 bps | EUR | 500 | 4.500% | Citigroup Global Markets | 04/05/16 | 81,574 | (22,723 | ) | 104,297 | ||||||||||||||||||
960 | 3 Month LIBOR plus 218 bps | EUR | 700 | 4.500% | Citigroup Global Markets | 04/15/16 | 158,472 | — | 158,472 | |||||||||||||||||||
1,111 | 3 Month LIBOR plus 451 bps | JPY | 92,000 | 3.700% | Citigroup Global Markets | 11/14/16 | 369,072 | 66 | 369,006 | |||||||||||||||||||
327 | 3 Month LIBOR plus 156 bps | CHF | 300 | 2.875% | Citigroup Global Markets | 11/23/16 | (9,532 | ) | (22,679 | ) | 13,147 | |||||||||||||||||
325 | 3 Month LIBOR plus 158 bps | CHF | 300 | 2.875% | Citigroup Global Markets | 11/23/16 | (11,607 | ) | (27,045 | ) | 15,438 | |||||||||||||||||
1,605 | 3 Month LIBOR plus 432 bps | JPY | 125,000 | 3.450% | Citigroup Global Markets | 03/24/17 | 620,060 | 38,560 | 581,500 | |||||||||||||||||||
122 | 3 Month LIBOR plus 208 bps | EUR | 100 | 4.250% | Citigroup Global Markets | 07/14/17 | 792 | (11,428 | ) | 12,220 | ||||||||||||||||||
244 | 3 Month LIBOR plus 220 bps | EUR | 200 | 4.250% | Citigroup Global Markets | 07/14/17 | 1,513 | (20,832 | ) | 22,345 | ||||||||||||||||||
1,111 | 3 Month LIBOR plus 265 bps | CHF | 1,000 | 2.625% | Credit Suisse First Boston Corp. | 05/12/15 | 12,349 | (25,901 | ) | 38,250 | ||||||||||||||||||
567 | 3 Month LIBOR plus 510 bps | CHF | 500 | 4.000% | Credit Suisse First Boston Corp. | 05/20/16 | 18,086 | 676 | 17,410 |
See Notes to Financial Statements.
64 |
Notional | Fund Receives | Notional Amount (000) | Fund Pays | Counterparty | Termination Date | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
439 | 3 Month LIBOR | JPY | 44,780 | 3 Month LIBOR minus 31.25 bps | Deutsche Bank AG | 05/14/17 | $ | 63,151 | $ | — | $ | 63,151 | ||||||||||||||||
JPY | 510,300 | 3 Month LIBOR minus 23.25 bps | 5,000 | 3 Month LIBOR | Goldman Sachs & Co. | 06/17/16 | (721,848 | ) | — | (721,848 | ) | |||||||||||||||||
5,000 | 3 Month LIBOR | JPY | 510,300 | 3 Month LIBOR minus 53.375 bps | Goldman Sachs & Co. | 06/17/24 | 680,042 | — | 680,042 | |||||||||||||||||||
461 | 3 Month LIBOR | EUR | 350 | 3 Month EURIBOR minus 30.25 bps | Hong Kong & Shanghai Bank | 12/19/15 | 68,082 | — | 68,082 | |||||||||||||||||||
114 | 3 Month CHF LIBOR minus 13.30 bps | CHF | 100 | 3 Month LIBOR | Hong Kong & Shanghai Bank | 03/21/16 | 7,115 | — | 7,115 | |||||||||||||||||||
TRY | 4,800 | 7.700% | 2,500 | 3 Month LIBOR | Hong Kong & Shanghai Bank | 07/19/18 | (691,102 | ) | — | (691,102 | ) | |||||||||||||||||
TRY | 7,729 | 8.820% | 3,800 | 3 Month LIBOR | Hong Kong & Shanghai Bank | 09/04/18 | (809,014 | ) | — | (809,014 | ) | |||||||||||||||||
147 | 3 Month LIBOR plus 398 bps | EUR | 120 | 4.500% | JPMorgan Chase | 11/30/15 | 10,639 | (2,177 | ) | 12,816 | ||||||||||||||||||
3,049 | 3 Month LIBOR | DKK | 18,000 | 3 Month CIBOR minus 37.00 bps | JPMorgan Chase | 10/03/16 | 334,886 | — | 334,886 | |||||||||||||||||||
24,780 | 3 Month LIBOR | EUR | 20,000 | 3 Month EURIBOR minus 14.625 bps | JPMorgan Chase | 11/10/16 | 2,299,994 | — | 2,299,994 | |||||||||||||||||||
JPY | 500,000 | 3 Month LIBOR minus 44.00 bps | 4,248 | 3 Month LIBOR | JPMorgan Chase | 11/21/16 | (64,832 | ) | — | (64,832 | ) | |||||||||||||||||
AUD | 3,240 | 3 Month BBSW plus 24.25 bps | 3,000 | 3 Month LIBOR | JPMorgan Chase | 05/22/19 | (424,801 | ) | — | (424,801 | ) | |||||||||||||||||
4,248 | 3 Month LIBOR | JPY | 500,000 | 3 Month LIBOR minus 73.00 bps | JPMorgan Chase | 11/21/24 | 82,145 | — | 82,145 | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
$ | 3,002,781 | $ | (249,287 | ) | $ | 3,252,068 | ||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 65 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Total return swap agreements outstanding at April 30, 2015:
Counterparty | Termination Date | Notional Amount (000)# | Description | Fair Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||
Barclays Capital Group | 05/07/2015 | 15,000 | Pay fixed payments of 0.100% and receive variable payments based on the Federal National Mortgage Assoc. 30 Year TBA | $ | (2,234 | ) | $ | — | $ | (2,234 | ) | |||||||||||
Barclays Capital Group | 05/01/2015 | 15,000 | Pay fixed payments on the Barclays Capital MBS Index and receive variable payments based on the 1 Month LIBOR | 82,899 | — | 82,899 | ||||||||||||||||
JPMorgan Chase | 06/20/2015 | 2,000 | Pay fixed payments on the IBOXXUSLHY Index and receive variable payments based on the 3 Month LIBOR | 6,652 | — | 6,652 | ||||||||||||||||
JPMorgan Chase | 06/20/2015 | 5,000 | Pay fixed payments on the IBOXXUSLHY Index and receive variable payments based on the 3 Month LIBOR | 46,229 | — | 46,229 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||
$ | 133,546 | $ | — | $ | 133,546 | |||||||||||||||||
|
|
|
|
|
|
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—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
66 |
The following is a summary of the inputs used as of April 30, 2015 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Foreign Bonds | $ | — | $ | 204,084,983 | $ | — | ||||||
Asset-Backed Securities | ||||||||||||
Collateralized Debt Obligations | — | 1,773,494 | — | |||||||||
Collateralized Loan Obligations | — | 27,517,857 | 3,236,602 | |||||||||
Non-Residential Mortgage-Backed Security | — | 605,603 | — | |||||||||
Residential Mortgage-Backed Securities | — | 47,620,593 | — | |||||||||
Bank Loans | — | 1,948,012 | — | |||||||||
Commercial Mortgage-Backed Securities | — | 23,731,154 | 1,402,969 | |||||||||
Corporate Bonds | — | 53,646,743 | 605,394 | |||||||||
Municipal Bonds | — | 3,554,546 | — | |||||||||
U.S. Government Agency Obligations | — | 1,725,879 | — | |||||||||
Preferred Stock | 103,560 | — | — | |||||||||
Options Purchased | 8,481 | 1,005,858 | — | |||||||||
Options Written | (6,325 | ) | (2,224,278 | ) | — | |||||||
Other Financial Instruments* | ||||||||||||
Futures Contracts | (634,642 | ) | — | — | ||||||||
Forward Foreign Currency Exchange Contracts | — | 1,293,053 | — | |||||||||
Cross Currency Exchange Contracts | — | (198,642 | ) | — | ||||||||
Exchange-traded credit default swaps | — | 63,082 | — | |||||||||
Over-the-counter credit default swaps | — | (618,283 | ) | — | ||||||||
Exchange-traded interest rate swaps | — | 2,534,647 | — | |||||||||
Over-the-counter interest rate swaps | — | 5,344,487 | 169,124 | |||||||||
Currency Swap Agreements | — | 3,002,781 | — | |||||||||
Total Return Swap Agreements | — | 133,546 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | (528,926 | ) | $ | 376,545,115 | $ | 5,414,089 | |||||
|
|
|
|
|
|
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 67 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
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 | Residential Mortgage- Backed Securities | Bank Loans | Commercial Mortgage- Backed Securities | Corporate Bonds | Interest Rate Swaps | ||||||||||||||||||||||
Balance as of 10/31/14 | $ | 1,769,625 | $ | — | $ | 2,466,090 | $ | 639,077 | $ | — | $ | 627,111 | $ | 108,260 | ||||||||||||||
Realized gain (loss) | 313,654 | — | — | — | — | — | — | ** | ||||||||||||||||||||
Change in unrealized appreciation (depreciation)*** | (403,252 | ) | (257,386 | ) | — | (29,954 | ) | (17,486 | ) | 4,003 | 60,864 | |||||||||||||||||
Purchases | — | 3,493,988 | — | — | 1,420,455 | — | — | |||||||||||||||||||||
Sales | (1,680,027 | ) | — | — | (610,405 | ) | — | (25,720 | ) | — | ||||||||||||||||||
Accrued discount/premium | — | — | — | 1,282 | — | — | — | |||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers out of Level 3 | — | — | (2,466,090 | ) | — | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Balance as of 4/30/15 | $ | — | $ | 3,236,602 | $ | — | $ | — | $ | 1,402,969 | $ | 605,394 | $ | 169,124 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and exchange-traded swap contracts, which are recorded at the unrealized appreciation/depreciation on the instrument, and over-the-counter swap contracts which are recorded at fair value. |
** | The net realized gain incurred during the period for other financial instruments was $25,913. |
*** | Of which, $(210,005) was relating to securities held at the reporting period end. |
Level 3 securities as presented in the table above are being fair valued using pricing methodologies approved by Board, which contain unobservable inputs as follows:
Level 3 Securities | Fair Value as of April 30, 2015 | Valuation Methodology | Unobservable Inputs | |||||
Collateralized Loan Obligations | $ | 3,236,602 | Pricing at Cost | Unadjusted Purchase Price | ||||
Commercial Mortgage-Backed Securities | 1,402,969 | Market Approach | Single Broker Indicative Quote | |||||
Corporate Bonds | 605,394 | Market Approach | Single Broker Indicative Quote | |||||
Interest Rate Swap Agreements | 169,124 | Model Pricing | Interbank Interest Rate | |||||
|
| |||||||
$ | 5,414,089 | |||||||
|
|
It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. At the reporting period end, securities transferred levels as follows:
Investments in Securities | Amount Transferred | Level Transfer | Logic | |||||||
Residential Mortgage-Backed Securities | $ | 2,466,090 | L3 to L2 | Single Broker Quote to Evaluated Bid |
See Notes to Financial Statements.
68 |
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2015 was as follows:
Sovereign Bonds | 44.6 | % | ||
Residential Mortgage-Backed Securities | 12.3 | |||
Collateralized Loan Obligations | 8.0 | |||
Commercial Mortgage-Backed Securities | 6.5 | |||
Banking | 5.1 | |||
Foreign Agencies | 4.0 | |||
Electric | 2.0 | |||
Healthcare & Pharmaceutical | 1.4 | |||
Media & Entertainment | 1.4 | |||
Technology | 1.3 | |||
Cable | 1.1 | |||
Municipal Bonds | 0.9 | |||
Building Materials & Construction | 0.9 | |||
Gaming | 0.8 | |||
Foods | 0.7 | |||
Capital Goods | 0.6 | |||
Telecommunications | 0.6 | |||
Collateralized Debt Obligations | 0.5 | |||
U.S. Government Agency Obligations | 0.5 | |||
Insurance | 0.4 | |||
Real Estate Investment Trusts | 0.4 | |||
Brokerage | 0.3 | % | ||
Automotive | 0.3 | |||
Options Purchased | 0.3 | |||
Paper | 0.2 | |||
Pipelines & Other | 0.2 | |||
Chemicals | 0.2 | |||
Metals | 0.2 | |||
Airlines | 0.2 | |||
Non-Captive Finance | 0.1 | |||
Non-Residential Mortgage-Backed Security | 0.1 | |||
Railroads | 0.1 | |||
Financials | 0.1 | |||
Consumer | 0.1 | |||
Aerospace & Defense | 0.1 | |||
Energy—Other | 0.1 | |||
|
| |||
96.6 | ||||
Options Written | (0.6 | ) | ||
Other assets in excess of liabilities | 4.0 | |||
|
| |||
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, equity risk, foreign exchange risk and interest rate risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2015 as presented in the Statement of Assets and Liabilities:
Derivatives not accounted for | Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||
Interest rate contracts | Due from/to broker—variation margin futures | $ | 372,289 | * | Due from/to broker—variation margin futures | $ | 1,006,931 | * | ||||
Interest rate contracts | Due from/to broker—variation margin exchange-traded swaps | 4,575,878 | * | Due from/to broker—variation margin exchange-traded swaps | 2,041,231 | * |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 69 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
Derivatives not accounted for | Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||
Interest rate contracts | Premiums paid for swap agreements | $ | 39,406 | Premiums received for swap agreements | $ | 288,693 | ||||||
Interest rate contracts | Unrealized appreciation on over-the-counter swap agreements | 13,465,052 | Unrealized depreciation on over-the-counter swap agreements | 4,701,607 | ||||||||
Interest rate contracts | Unaffiliated investments | 343,316 | Options written outstanding, at value | 6,325 | ||||||||
Foreign exchange contracts | Unrealized appreciation on foreign currency exchange contracts | 4,156,245 | Unrealized depreciation on foreign currency exchange contracts | 2,863,192 | ||||||||
Foreign exchange contracts | Unrealized appreciation on cross currency exchange contracts | 188,014 | Unrealized depreciation on cross currency exchange contracts | 386,656 | ||||||||
Foreign exchange contracts | Unaffiliated investments | 671,023 | Options written outstanding, at value | 2,224,278 | ||||||||
Equity contracts | Unrealized appreciation on over-the-counter swap agreements | 135,780 | — | — | ||||||||
Credit contracts | Premiums paid for swap agreements | 432,145 | Premiums received for swap agreements | 3,820,018 | ||||||||
Credit contracts | Due from/to broker—variation margin exchange-traded swaps | 63,082 | * | — | — | |||||||
Credit contracts | Unrealized appreciation on over-the-counter swap agreements | 3,061,674 | Unrealized depreciation on over-the-counter swap agreements | 292,084 | ||||||||
|
|
|
| |||||||||
Total | $ | 27,503,904 | $ | 17,631,015 | ||||||||
|
|
|
|
* | 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.
70 |
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2015 are as follows:
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||||||
Derivatives not | Options Purchased* | Options Written | Futures | Forward Rate Agreements | Forward and Cross Currency Contracts** | Swaps | Total | |||||||||||||||||||||
Credit contracts | $ | (448,000 | ) | $ | 184,000 | $ | — | $ | — | $ | — | $ | 1,768,727 | $ | 1,504,727 | |||||||||||||
Foreign exchange contracts | (143,208 | ) | (27,503 | ) | — | — | (6,910,823 | ) | — | (7,081,534 | ) | |||||||||||||||||
Interest rate contracts | (887,510 | ) | 553,749 | 3,125,642 | 106,000 | — | (494,739 | ) | 2,403,142 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | (1,478,718 | ) | $ | 710,246 | $ | 3,125,642 | $ | 106,000 | $ | (6,910,823 | ) | $ | 1,273,988 | $ | (3,173,665 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | 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 | Options Purchased* | Options Written | Futures | Swaps | Forward and Cross Currency Contracts** | Total | ||||||||||||||||||
Interest rate contracts | $ | (118,679 | ) | $ | 76,220 | $ | (1,420,649 | ) | $ | 4,618,208 | $ | — | $ | 3,155,100 | ||||||||||
Foreign exchange contracts | 134,751 | (855,667 | ) | — | — | 1,434,580 | 713,664 | |||||||||||||||||
Equity contracts | — | — | — | 135,780 | — | 135,780 | ||||||||||||||||||
Credit contracts | 39,754 | (24,633 | ) | — | (264,679 | ) | — | (249,558 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 55,826 | $ | (804,080 | ) | $ | (1,420,649 | ) | $ | 4,489,309 | $ | 1,434,580 | $ | 3,754,986 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | 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. |
For the six months ended April 30, 2015, the Fund’s average volume of derivative activities are as follows:
Options | �� | Options | Futures | Futures | Forward | Forward | Cross | |||||
$1,090,592 | $190,710 | $119,873,257 | $36,920,026 | $188,510,402 | $139,573,442 | $39,536 |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 71 |
Portfolio of Investments
as of April 30, 2015 (Unaudited) continued
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)) | Total Return Swaps (Notional Amount in USD (000)) | |||||||||||||||||
$ | 40,000 | $ | 710,562 | $ | 17,847 | $ | 119,480 | $ | 65,901 | $ | 18,104 |
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 | $ | 597,596 | $ | (205,671 | ) | $ | (688,400 | ) | $ | — | ||||||
Bank of Nova Scotia | 177,754 | — | (256,453 | ) | — | |||||||||||
Barclays Capital Group | 2,983,873 | (1,625,820 | ) | (1,203,398 | ) | 154,655 | ||||||||||
BNP Paribas | 1,144,489 | (800,661 | ) | (434,895 | ) | — | ||||||||||
Citigroup Global Markets | 5,120,800 | (2,438,339 | ) | (3,088,000 | ) | — | ||||||||||
Credit Suisse First Boston Corp. | 1,092,706 | (762,332 | ) | (360,000 | ) | — | ||||||||||
Deutsche Bank AG | 2,093,318 | (976,339 | ) | (948,055 | ) | 168,924 | ||||||||||
Goldman Sachs & Co. | 1,030,636 | (1,030,636 | ) | — | — | |||||||||||
Hong Kong & Shanghai Bank | 2,375,599 | (2,375,599 | ) | — | — | |||||||||||
JPMorgan Chase | 4,294,944 | (1,978,383 | ) | (3,051,398 | ) | — | ||||||||||
Morgan Stanley | 149,407 | (149,407 | ) | — | — | |||||||||||
Royal Bank of Scotland Group PLC | 84,570 | — | — | 84,570 | ||||||||||||
Toronto Dominion | 22,365 | (22,365 | ) | — | — | |||||||||||
UBS AG | 1,316,117 | (1,158,064 | ) | — | 158,053 | |||||||||||
|
| |||||||||||||||
$ | 22,484,174 | |||||||||||||||
|
|
See Notes to Financial Statements.
72 |
Counterparty | Gross amounts of recognized liabilities(2) | Gross amounts available for offset | Collateral Pledged(3) | Net Amount | ||||||||||||
Bank of America | $ | (205,671 | ) | $ | 205,671 | $ | — | $ | — | |||||||
Bank of Nova Scotia | — | — | — | — | ||||||||||||
Barclays Capital Group | (1,625,820 | ) | 1,625,820 | — | — | |||||||||||
BNP Paribas | (800,661 | ) | 800,661 | — | — | |||||||||||
Citigroup Global Markets | (2,438,339 | ) | 2,438,339 | — | — | |||||||||||
Credit Suisse First Boston Corp. | (762,332 | ) | 762,332 | — | — | |||||||||||
Deutsche Bank AG | (976,339 | ) | 976,339 | — | — | |||||||||||
Goldman Sachs & Co. | (1,223,270 | ) | 1,030,636 | 455,985 | — | |||||||||||
Hong Kong & Shanghai Bank | (3,157,294 | ) | 2,375,599 | 714,939 | (66,756 | ) | ||||||||||
JPMorgan Chase | (1,978,383 | ) | 1,978,383 | — | — | |||||||||||
Morgan Stanley | (167,253 | ) | 149,407 | — | (17,846 | ) | ||||||||||
Royal Bank of Scotland Group PLC | — | — | — | — | ||||||||||||
Toronto Dominion | (83,102 | ) | 22,365 | — | (60,737 | ) | ||||||||||
UBS AG | (1,158,064 | ) | 1,158,064 | 211,236 | — | |||||||||||
|
| |||||||||||||||
$ | (14,576,528 | ) | ||||||||||||||
|
|
(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 Global Total Return Fund, Inc. | 73 |
Statement of Assets & Liabilities
as of April 30, 2015 (Unaudited)
Assets | ||||
Unaffiliated investments (cost $378,350,005) | $ | 372,571,728 | ||
Foreign currency, at value (cost $113,946) | 115,491 | |||
Deposit with broker | 1,490,000 | |||
Unrealized appreciation on over-the-counter swap agreements | 16,662,506 | |||
Dividends and interest receivable | 4,541,662 | |||
Unrealized appreciation on forward foreign currency exchange contracts | 4,156,245 | |||
Receivable for investments sold | 4,142,790 | |||
Receivable for Fund shares sold | 588,273 | |||
Premium paid for swap agreements | 471,551 | |||
Unrealized appreciation on cross currency exchange contracts | 188,014 | |||
Tax reclaim receivable | 28,356 | |||
Prepaid expenses | 11,449 | |||
|
| |||
Total assets | 404,968,065 | |||
|
| |||
Liabilities | ||||
Unrealized depreciation on over-the-counter swap agreements | 4,993,691 | |||
Premium received for swap agreements | 4,108,711 | |||
Unrealized depreciation on forward foreign currency exchange contracts | 2,863,192 | |||
Options written outstanding, at value (premiums received $819,384) | 2,230,603 | |||
Loan payable | 1,294,000 | |||
Payable for Fund shares reacquired | 1,088,654 | |||
Payable for investments purchased | 715,068 | |||
Payable to custodian | 510,477 | |||
Unrealized depreciation on cross currency exchange contracts | 386,656 | |||
Dividends payable | 222,470 | |||
Accrued expenses and other liabilities | 191,410 | |||
Due to broker—variation margin futures | 172,076 | |||
Management fee payable | 164,891 | |||
Due to broker—variation margin swaps | 77,903 | |||
Distribution fee payable | 69,958 | |||
Affiliated transfer agent fee payable | 19,272 | |||
|
| |||
Total liabilities | 19,109,032 | |||
|
| |||
Net Assets | $ | 385,859,033 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 577,833 | ||
Paid-in capital in excess of par | 390,251,574 | |||
|
| |||
390,829,407 | ||||
Distributions in excess of net investment income | (3,575,808 | ) | ||
Accumulated net realized loss on investment and foreign currency transactions | (8,812,007 | ) | ||
Net unrealized appreciation on investments and foreign currencies | 7,417,441 | |||
|
| |||
Net assets, April 30, 2015 | $ | 385,859,033 | ||
|
|
See Notes to Financial Statements.
74 |
Class A | ||||
Net asset value and redemption price per share | $ | 6.66 | ||
Maximum sales charge (4.50% of offering price) | 0.31 | |||
|
| |||
Maximum offering price to public | $ | 6.97 | ||
|
| |||
Class B | ||||
Net asset value, offering price and redemption price per share | $ | 6.66 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share | $ | 6.65 | ||
|
| |||
Class Q | ||||
Net asset value, offering price and redemption price per share | $ | 6.74 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share | $ | 6.69 | ||
|
|
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 75 |
Statement of Operations
Six Months Ended April 30, 2015 (Unaudited)
Net Investment Income | ||||
Income | ||||
Interest income (net of foreign withholding taxes of $1,130) | $ | 6,588,164 | ||
Affiliated dividend income | 7,732 | |||
Unaffiliated dividend income | 3,935 | |||
|
| |||
Total income | 6,599,831 | |||
|
| |||
Expenses | ||||
Management fee | 1,211,561 | |||
Distribution fee—Class A | 264,121 | |||
Distribution fee—Class B | 29,470 | |||
Distribution fee—Class C | 174,357 | |||
Transfer agent’s fees and expenses (including affiliated expense of $34,000) | 211,000 | |||
Custodian and accounting fees | 152,000 | |||
Shareholders’ reports | 56,000 | |||
Registration fees | 49,000 | |||
Audit fee | 30,000 | |||
Legal fees and expenses | 14,000 | |||
Directors’ fees | 10,000 | |||
Insurance expenses | 2,000 | |||
Loan interest expense | 435 | |||
Miscellaneous | 8,871 | |||
|
| |||
Total expenses | 2,212,815 | |||
Less: Management fee waiver | (235,145 | ) | ||
Distribution fee waiver—Class A | (33,079 | ) | ||
|
| |||
Net expenses | 1,944,591 | |||
|
| |||
Net investment income | 4,655,240 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions | (4,149,454 | ) | ||
Futures transactions | 3,125,642 | |||
Options written transactions | 710,246 | |||
Forward rate agreement transactions | 106,000 | |||
Swap agreement transactions | 1,273,988 | |||
Foreign currency transactions | (5,577,193 | ) | ||
|
| |||
(4,510,771 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (8,987,294 | ) | ||
Futures | (1,420,649 | ) | ||
Options written | (804,080 | ) | ||
Swap agreements | 4,489,309 | |||
Foreign currencies | 1,578,651 | |||
|
| |||
(5,144,063 | ) | |||
|
| |||
Net loss on investment and foreign currency transactions | (9,654,834 | ) | ||
|
| |||
Net Decrease In Net Assets Resulting From Operations | $ | (4,999,594 | ) | |
|
|
See Notes to Financial Statements.
76 |
Statement of Changes in Net Assets
(Unaudited)
Six Months Ended April 30, 2015 | Year Ended October 31, 2014 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 4,655,240 | $ | 7,462,133 | ||||
Net realized gain (loss) on investment and foreign currency transactions | (4,510,771 | ) | 3,357,856 | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (5,144,063 | ) | (3,457,402 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (4,999,594 | ) | 7,362,587 | |||||
|
|
|
| |||||
Dividends and Distributions (Note 1) | ||||||||
Dividends from net investment income* | ||||||||
Class A | (3,421,297 | ) | (3,369,995 | ) | ||||
Class B | (88,055 | ) | (115,286 | ) | ||||
Class C | (514,963 | ) | (515,247 | ) | ||||
Class Q | (249,250 | ) | (6,739 | ) | ||||
Class Z | (2,608,242 | ) | (1,543,783 | ) | ||||
|
|
|
| |||||
(6,881,807 | ) | (5,551,050 | ) | |||||
|
|
|
| |||||
Tax return of capital distributions | ||||||||
Class A | — | (3,421,507 | ) | |||||
Class B | — | (117,048 | ) | |||||
Class C | — | (523,123 | ) | |||||
Class Q | — | (6,842 | ) | |||||
Class Z | — | (1,567,379 | ) | |||||
|
|
|
| |||||
— | (5,635,899 | ) | ||||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) (Note 6) | ||||||||
Net proceeds from shares sold | 117,154,498 | 179,325,048 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 5,506,144 | 8,726,155 | ||||||
Cost of shares reacquired | (77,049,469 | ) | (88,583,224 | ) | ||||
|
|
|
| |||||
Net increase in net assets from Fund share transactions | 45,611,173 | 99,467,979 | ||||||
|
|
|
| |||||
Total increase | 33,729,772 | 95,643,617 | ||||||
Net Assets: | ||||||||
Beginning of period | 352,129,261 | 256,485,644 | ||||||
|
|
|
| |||||
End of period | $ | 385,859,033 | $ | 352,129,261 | ||||
|
|
|
|
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
See Notes to Financial Statements.
Prudential Global Total Return Fund, Inc. | 77 |
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 Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services – Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets 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 and preferred stocks, exchange-traded funds and derivative instruments, such as futures or options, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.
78 |
In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy, as the inputs are observable.
Common and preferred 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. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common and preferred 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.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
Prudential Global Total Return Fund, Inc. | 79 |
Notes to Financial Statements
(Unaudited) continued
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment 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.
80 |
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 holdings of foreign currencies, 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.
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
Prudential Global Total Return Fund, Inc. | 81 |
Notes to Financial Statements
(Unaudited) continued
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.
Cross Currency Exchange Contracts: A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.
Options: The Fund purchased and 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
82 |
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 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 (“CDS”) involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in
Prudential Global Total Return Fund, Inc. | 83 |
Notes to Financial Statements
(Unaudited) continued
exchange for the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity (typically corporate issues or sovereign issues of an emerging country) on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.
The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund entered into CDS contracts to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases. The Fund 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
84 |
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.
Total Return Swaps: In a total return swap, one party would receive payments based on the market value of the security or the commodity involved, or total return of a specific referenced asset, such as an equity, index or bond, and in return pay a fixed amount. The Fund is subject to risk exposures associated with the referenced asset in the normal course of pursuing its investment objectives. The Fund entered into total return swaps to manage its exposure to a security or an index. The Fund’s maximum risk of loss from counterparty credit risk is the change in the value of the security, in the Fund’s favor, from the point of entering into the contract.
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. These are agreements which a
Prudential Global Total Return Fund, Inc. | 85 |
Notes to Financial Statements
(Unaudited) continued
sub-adviser may have negotiated and entered into on behalf of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. 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 with certain counterparties that govern over-the-counter derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or re-pledged, is presented in the 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,
86 |
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, 2015, 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.
Prudential Global Total Return Fund, Inc. | 87 |
Notes to Financial Statements
(Unaudited) continued
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.
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 subadviser’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 before any waivers and/or expense reimbursement was .65% for the six months ended April 30, 2015. The effective management fee rate, net of waivers and/or expense reimbursement was .52%.
For the six months ended April 30, 2015, PI has contractually agreed through February 29, 2016 to limit net annual Fund operating expenses (exclusive of distribution and service (12b-1) fees, extraordinary and certain other expenses, including taxes, interest and brokerage commissions) of each class of shares to .81% of the Fund’s average daily net assets.
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,
88 |
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. PIMS contractually agreed to limit such fees to .25% of the average daily net assets of the Class A shares through March 8, 2015. Effective March 9, 2015, the Class A contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets and the .05% contractual 12b-1 fee was terminated.
PIMS has advised the Fund that it has received $70,780 in front-end sales charges resulting from sales of Class A shares during the six months ended April 30, 2015. 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, 2015, it received $8,832 and $3,660 in contingent deferred sales charges imposed upon redemptions by certain 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, 2015, were $125,077,614 and $79,141,466, respectively.
Prudential Global Total Return Fund, Inc. | 89 |
Notes to Financial Statements
(Unaudited) continued
Transactions in options written during the six months ended April 30, 2015, were as follows:
Notional Amount (000) | Premiums Received | |||||||
Options outstanding at October 31, 2014 | $ | 287,800 | $ | 820,730 | ||||
Options written | 414,350 | 1,211,044 | ||||||
Options terminated in closing purchase transactions | (112,000 | ) | (268,752 | ) | ||||
Options expired | (493,500 | ) | (943,638 | ) | ||||
|
|
|
| |||||
Options outstanding at April 30, 2015 | $ | 96,650 | $ | 819,384 | ||||
|
|
|
|
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, 2015 were as follows:
Tax Basis | $ | 382,916,459 | ||
|
| |||
Appreciation | 8,991,079 | |||
Depreciation | (19,335,810 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | (10,344,731 | ) | |
|
|
The book basis may differ from tax basis due to certain tax related adjustments.
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), the Fund is permitted to carryforward capital losses realized on or after November 1, 2011 (“post-enactment losses”) for an unlimited period. Post-enactment losses are required to be utilized before the utilization of losses incurred prior to the effective date of the Act. As a result of this ordering rule, capital loss carryforwards related to taxable years ending before October 31, 2012 (“pre-enactment losses”) may have an increased likelihood to expire unused. The Fund utilized approximately $4,447,000 of its pre-enactment losses to offset net taxable gains realized in the fiscal year ended October 31, 2014. 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, 2014, the pre and post-enactment losses were approximately:
Post-Enactment Losses: | $ | 0 | ||
|
| |||
Pre-Enactment Losses: | ||||
Expiring 2017 | $ | 566,000 | ||
|
|
90 |
Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
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, 2015, Prudential Financial, Inc. through its affiliates owned 1,649 Class Q shares of the Fund.
Prudential Global Total Return Fund, Inc. | 91 |
Notes to Financial Statements
(Unaudited) continued
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2015: | ||||||||
Shares sold | 3,601,016 | $ | 24,293,876 | |||||
Shares issued in reinvestment of dividends and distributions | 408,397 | 2,747,556 | ||||||
Shares reacquired | (4,605,594 | ) | (30,881,973 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (596,181 | ) | (3,840,541 | ) | ||||
Shares issued upon conversion from Class B and Class Z | 21,135 | 140,508 | ||||||
Shares reacquired upon conversion into Class Z | (170,608 | ) | (1,146,314 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (745,654 | ) | $ | (4,846,347 | ) | |||
|
|
|
| |||||
Year ended October 31, 2014: | ||||||||
Shares sold | 11,155,731 | $ | 77,962,652 | |||||
Shares issued in reinvestment of dividends and distributions | 787,143 | 5,472,817 | ||||||
Shares reacquired | (6,552,275 | ) | (45,418,537 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 5,390,599 | 38,016,932 | ||||||
Shares issued upon conversion from Class B and Class Z | 52,872 | 369,296 | ||||||
Shares reacquired upon conversion into Class Z | (1,053,770 | ) | (7,445,065 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 4,389,701 | $ | 30,941,163 | |||||
|
|
|
| |||||
Class B | ||||||||
Six months ended April 30, 2015: | ||||||||
Shares sold | 46,350 | $ | 310,742 | |||||
Shares issued in reinvestment of dividends and distributions | 9,079 | 61,068 | ||||||
Shares reacquired | (153,092 | ) | (1,032,112 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (97,663 | ) | (660,302 | ) | ||||
Shares reacquired upon conversion into Class A | (14,409 | ) | (95,224 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (112,072 | ) | $ | (755,526 | ) | |||
|
|
|
| |||||
Year ended October 31, 2014: | ||||||||
Shares sold | 92,725 | $ | 647,425 | |||||
Shares issued in reinvestment of dividends and distributions | 22,508 | 156,486 | ||||||
Shares reacquired | (150,848 | ) | (1,041,937 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (35,615 | ) | (238,026 | ) | ||||
Shares reacquired upon conversion into Class A | (36,151 | ) | (252,472 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (71,766 | ) | $ | (490,498 | ) | |||
|
|
|
|
92 |
Class C | Shares | Amount | ||||||
Six months ended April 30, 2015: | ||||||||
Shares sold | 917,362 | $ | 6,178,441 | |||||
Shares issued in reinvestment of dividends and distributions | 57,899 | 388,629 | ||||||
Shares reacquired | (697,138 | ) | (4,656,768 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 278,123 | 1,910,302 | ||||||
Shares reacquired upon conversion into Class Z | (125,860 | ) | (846,257 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 152,263 | $ | 1,064,045 | |||||
|
|
|
| |||||
Year ended October 31, 2014: | ||||||||
Shares sold | 1,932,678 | $ | 13,476,316 | |||||
Shares issued in reinvestment of dividends and distributions | 116,287 | 806,752 | ||||||
Shares reacquired | (1,401,255 | ) | (9,661,423 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 647,710 | 4,621,645 | ||||||
Shares reacquired upon conversion into Class Z | (144,909 | ) | (1,005,929 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 502,801 | $ | 3,615,716 | |||||
|
|
|
| |||||
Class Q | ||||||||
Six months ended April 30, 2015: | ||||||||
Shares sold | 3,347,414 | $ | 22,917,355 | |||||
Shares issued in reinvestment of dividends and distributions | 36,895 | 249,228 | ||||||
Shares reacquired | (33,618 | ) | (227,616 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 3,350,691 | $ | 22,938,967 | |||||
|
|
|
| |||||
Year ended October 31, 2014: | ||||||||
Shares sold | 250,048 | $ | 1,751,333 | |||||
Shares issued in reinvestment of dividends and distributions | 1,901 | 13,448 | ||||||
Shares reacquired | (136,138 | ) | (946,346 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 115,811 | $ | 818,435 | |||||
|
|
|
| |||||
Class Z | ||||||||
Six months ended April 30, 2015: | ||||||||
Shares sold | 9,379,897 | $ | 63,454,084 | |||||
Shares issued in reinvestment of dividends and distributions | 305,434 | 2,059,663 | ||||||
Shares reacquired | (5,976,962 | ) | (40,251,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 3,708,369 | 25,262,747 | ||||||
Shares issued upon conversion from Class A and Class C | 295,092 | 1,992,571 | ||||||
Shares reacquired upon conversion into Class A | (6,726 | ) | (45,284 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 3,996,735 | $ | 27,210,034 | |||||
|
|
|
| |||||
Year ended October 31, 2014: | ||||||||
Shares sold | 12,179,691 | $ | 85,487,322 | |||||
Shares issued in reinvestment of dividends and distributions | 326,074 | 2,276,652 | ||||||
Shares reacquired | (4,535,355 | ) | (31,514,981 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 7,970,410 | 56,248,993 | ||||||
Shares issued upon conversion from Class A and Class C | 1,194,823 | 8,450,994 | ||||||
Shares reacquired upon conversion into Class A | (16,645 | ) | (116,824 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 9,148,588 | $ | 64,583,163 | |||||
|
|
|
|
Prudential Global Total Return Fund, Inc. | 93 |
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 October 9, 2014 through October 8, 2015. The Funds pay an annualized commitment fee of .075% of the unused portion of the SCA. Prior to October 9, 2014, the Funds had another SCA that provided a commitment of $900 million and the Funds paid an annualized commitment fee of .08% of the unused portion of the SCA. 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, 2015. The average daily balance for the 14 days that the Fund had loans outstanding during the period was $770,900, borrowed at a weighted average interest rate of 1.43%. The maximum loan outstanding amount during the period was $2,546,000. At April 30, 2015, the Fund had a loan outstanding in the amount of $1,294,000.
Note 8. New Accounting Pronouncement
In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-07 regarding “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share”. The amendments in this update are effective for the Fund for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU No. 2015-07 will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (“NAV”) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. At this time, management is evaluating the implications of ASU No. 2015-07 and its impact on the financial statement disclosures has not yet been determined.
94 |
Financial Highlights
(Unaudited)
Class A Shares | ||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $6.88 | $6.92 | $7.21 | $6.99 | $7.42 | $7.20 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .08 | .19 | .21 | .22 | .23 | .27 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.18 | ) | .06 | (.21 | ) | .31 | .05 | .66 | ||||||||||||||||||
Total from investment operations | (.10 | ) | .25 | - | (e) | .53 | .28 | .93 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income* | (.12 | ) | (.15 | ) | (.18 | ) | (.28 | ) | (.71 | ) | (.71 | ) | ||||||||||||||
Tax return of capital distributions | - | (.14 | ) | (.11 | ) | (.03 | ) | - | - | |||||||||||||||||
Total dividends and distributions | (.12 | ) | (.29 | ) | (.29 | ) | (.31 | ) | (.71 | ) | (.71 | ) | ||||||||||||||
Net asset value, end of period | $6.66 | $6.88 | $6.92 | $7.21 | $6.99 | $7.42 | ||||||||||||||||||||
Total Return(b): | (1.43)% | 3.67% | .07% | 7.86% | 4.60% | 14.25% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $179,477 | $190,394 | $161,099 | $176,970 | $154,056 | $123,507 | ||||||||||||||||||||
Average net assets (000) | $186,366 | $163,155 | $180,342 | $162,268 | $125,292 | $112,110 | ||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.06% | (f) | 1.25% | 1.23% | 1.31% | 1.35% | 1.35% | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.23% | (f) | 1.30% | 1.28% | 1.36% | 1.44% | 1.47% | |||||||||||||||||||
Net investment income | 2.50% | (f) | 2.79% | 2.99% | 3.17% | 3.28% | 3.97% | |||||||||||||||||||
Portfolio turnover rate | 36% | (g) | 65% | 79% | 97% | 203% | 117% |
(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) Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets and the .05% contractual 12b-1 fee waiver was terminated.
(e) Less than $.005 per share.
(f) Annualized.
(g) 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. | 95 |
Financial Highlights
(Unaudited) continued
Class B Shares | ||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $6.88 | $6.92 | $7.21 | $6.99 | $7.41 | $7.19 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .06 | .14 | .16 | .17 | .17 | .22 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.18 | ) | .06 | (.21 | ) | .30 | .06 | .66 | ||||||||||||||||||
Total from investment operations | (.12 | ) | .20 | (.05 | ) | .47 | .23 | .88 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income* | (.10 | ) | (.10 | ) | (.13 | ) | (.22 | ) | (.65 | ) | (.66 | ) | ||||||||||||||
Tax return of capital distributions | - | (.14 | ) | (.11 | ) | (.03 | ) | - | - | |||||||||||||||||
Total dividends and distributions | (.10 | ) | (.24 | ) | (.24 | ) | (.25 | ) | (.65 | ) | (.66 | ) | ||||||||||||||
Net asset value, end of period | $6.66 | $6.88 | $6.92 | $7.21 | $6.99 | $7.41 | ||||||||||||||||||||
Total Return(b): | (1.78)% | 2.90% | (.68)% | 7.06% | 3.86% | 13.40% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $5,596 | $6,548 | $7,084 | $6,748 | $5,018 | $3,312 | ||||||||||||||||||||
Average net assets (000) | $5,943 | $6,790 | $7,299 | $5,744 | $3,465 | $3,082 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.81% | (d) | 2.00% | 1.98% | 2.06% | 2.10% | 2.10% | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.94% | (d) | 2.00% | 1.98% | 2.06% | 2.14% | 2.17% | |||||||||||||||||||
Net investment income | 1.77% | (d) | 2.05% | 2.25% | 2.40% | 2.52% | 3.23% | |||||||||||||||||||
Portfolio turnover rate | 36% | (e) | 65% | 79% | 97% | 203% | 117% |
(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.
96 |
Class C Shares | ||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $6.86 | $6.90 | $7.19 | $6.97 | $7.39 | $7.17 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .06 | .14 | .16 | .17 | .17 | .23 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.17 | ) | .06 | (.21 | ) | .31 | .07 | .67 | ||||||||||||||||||
Total from investment operations | (.11 | ) | .20 | (.05 | ) | .48 | .24 | .90 | ||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income* | (.10 | ) | (.10 | ) | (.13 | ) | (.23 | ) | (.66 | ) | (.68 | ) | ||||||||||||||
Tax return of capital distributions | - | (.14 | ) | (.11 | ) | (.03 | ) | - | - | |||||||||||||||||
Total dividends and distributions | (.10 | ) | (.24 | ) | (.24 | ) | (.26 | ) | (.66 | ) | (.68 | ) | ||||||||||||||
Net asset value, end of period | $6.65 | $6.86 | $6.90 | $7.19 | $6.97 | $7.39 | ||||||||||||||||||||
Total Return(b): | (1.65 | )% | 2.90% | (.68 | )% | 7.08% | 4.00% | 13.75% | ||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $34,626 | $34,691 | $31,424 | $33,988 | $19,408 | $6,180 | ||||||||||||||||||||
Average net assets (000) | $35,161 | $30,378 | $36,071 | $27,739 | $10,010 | $4,563 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.81% | (d) | 2.00% | 1.98% | 2.06% | 2.05% | 1.85% | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.94% | (d) | 2.00% | 1.98% | 2.06% | 2.14% | 2.17% | |||||||||||||||||||
Net investment income | 1.76% | (d) | 2.05% | 2.24% | 2.39% | 2.56% | 3.45% | |||||||||||||||||||
Portfolio turnover rate | 36% | (e) | 65% | 79% | 97% | 203% | 117% |
(a) Calculated based on average shares outstanding during the year.
(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 year 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. | 97 |
Financial Highlights
(Unaudited) continued
Class Q Shares | ||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | February 3, 2012(d) through October 31, | ||||||||||||||||||
2015 | 2014 | 2013 | 2012 | |||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||
Net Asset Value, Beginning Of Period | $6.97 | $6.94 | $7.23 | $6.97 | ||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | .08 | .23 | .24 | .18 | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.18 | ) | .12 | (.21 | ) | .28 | ||||||||||||||
Total from investment operations | (.10 | ) | .35 | .03 | .46 | |||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (.13 | ) | (.18 | ) | (.21 | ) | (.19 | ) | ||||||||||||
Tax return of capital distributions | - | (.14 | ) | (.11 | ) | (.01 | ) | |||||||||||||
Total dividends and distributions | (.13 | ) | (.32 | ) | (.32 | ) | (.20 | ) | ||||||||||||
Net asset value, end of period | $6.74 | $6.97 | $6.94 | $7.23 | ||||||||||||||||
Total Return(b): | (1.43 | )% | 5.09% | .46% | 6.81% | |||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $23,440 | $869 | $62 | $11 | ||||||||||||||||
Average net assets (000) | $13,563 | $295 | $13 | $10 | ||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .80% | (e) | .87% | .85% | .92% | (e) | ||||||||||||||
Expenses before waivers and/or expense reimbursement | .80% | (e) | .87% | .85% | .92% | (e) | ||||||||||||||
Net investment income | 2.50% | (e) | 3.24% | 3.48% | 3.42% | (e) | ||||||||||||||
Portfolio turnover rate | 36% | (f) | 65% | 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.
98 |
Class Z Shares | ||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $6.90 | $6.94 | $7.23 | $7.01 | $7.44 | $7.22 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income | .09 | .21 | .22 | .23 | .22 | .28 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.17 | ) | .06 | (.20 | ) | .31 | .08 | .67 | ||||||||||||||||||
Total from investment operations | (.08 | ) | .27 | .02 | .54 | .30 | .95 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income* | (.13 | ) | (.17 | ) | (.20 | ) | (.29 | ) | (.73 | ) | (.73 | ) | ||||||||||||||
Tax return of capital distributions | - | (.14 | ) | (.11 | ) | (.03 | ) | - | - | |||||||||||||||||
Total dividends and distributions | (.13 | ) | (.31 | ) | (.31 | ) | (.32 | ) | (.73 | ) | (.73 | ) | ||||||||||||||
Net asset value, end of period | $6.69 | $6.90 | $6.94 | $7.23 | $7.01 | $7.44 | ||||||||||||||||||||
Total Return(b): | (1.17 | )% | 3.92% | .31% | 8.10% | 4.87% | 14.49% | |||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $142,720 | $119,628 | $56,817 | $83,077 | $42,330 | $4,978 | ||||||||||||||||||||
Average net assets (000) | $134,846 | $71,247 | $81,390 | $58,999 | $12,813 | $3,507 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .81 | (d) | 1.00% | .98% | 1.06% | 1.10% | 1.10% | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | .94 | (d) | 1.00% | .98% | 1.06% | 1.14% | 1.17% | |||||||||||||||||||
Net investment income | 2.72% | (d) | 3.00% | 3.18% | 3.37% | 3.50% | 4.25% | |||||||||||||||||||
Portfolio turnover rate | 36% | (e) | 65% | 79% | 97% | 203% | 117% |
(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. | 99 |
Results of Proxy Voting
(Unaudited)
At a special meeting of shareholders held on November 26, 2014, shareholders of the Fund approved the following proposal.
Proposal: To elect twelve Trustees:
SHARES VOTED | % VOTED | % OF T/O | ||||||||||
Ellen S. Alberding | ||||||||||||
FOR | 37,801,483.968 | 98.485 | % | 82.711 | % | |||||||
WITHHELD | 581,586.998 | 1.515 | % | 1.272 | % | |||||||
Kevin J. Bannon | ||||||||||||
FOR | 37,870,546.167 | 98.665 | % | 82.862 | % | |||||||
WITHHELD | 512,524.799 | 1.335 | % | 1.121 | % | |||||||
Linda W. Bynoe | ||||||||||||
FOR | 37,801,474.673 | 98.485 | % | 82.711 | % | |||||||
WITHHELD | 581,596.293 | 1.515 | % | 1.272 | % | |||||||
Keith F. Hartstein | ||||||||||||
FOR | 37,868,238.486 | 98.659 | % | 82.857 | % | |||||||
WITHHELD | 514,832.480 | 1.341 | % | 1.126 | % | |||||||
Michael S. Hyland | ||||||||||||
FOR | 37,789,610.165 | 98.454 | % | 82.685 | % | |||||||
WITHHELD | 593,460.801 | 1.546 | % | 1.298 | % | |||||||
Stephen P. Munn | ||||||||||||
FOR | 37,795,725.853 | 98.470 | % | 82.698 | % | |||||||
WITHHELD | 587,345.113 | 1.530 | % | 1.285 | % | |||||||
James E. Quinn | ||||||||||||
FOR | 37,844,367.808 | 98.597 | % | 82.805 | % | |||||||
WITHHELD | 538,703.158 | 1.403 | % | 1.178 | % | |||||||
Richard A. Redeker | ||||||||||||
FOR | 37,794,511.665 | 98.467 | % | 82.696 | % | |||||||
WITHHELD | 588,559.301 | 1.533 | % | 1.287 | % | |||||||
Stephen G. Stoneburn | ||||||||||||
FOR | 37,757,689.304 | 98.371 | % | 82.615 | % | |||||||
WITHHELD | 625,381.662 | 1.629 | % | 1.368 | % | |||||||
Grace C. Torres | ||||||||||||
FOR | 37,820,917.707 | 98.536 | % | 82.753 | % | |||||||
WITHHELD | 562,153.259 | 1.464 | % | 1.230 | % | |||||||
Stuart S. Parker | ||||||||||||
FOR | 37,845,166.189 | 98.599 | % | 82.807 | % | |||||||
WITHHELD | 537,904.777 | 1.401 | % | 1.176 | % | |||||||
Scott E. Benjamin | ||||||||||||
FOR | 37,849,913.800 | 98.611 | % | 82.817 | % | |||||||
WITHHELD | 533,157.166 | 1.389 | % | 1.166 | % |
100 |
The special meeting of shareholders of the Fund held on November 26, 2014, was adjourned to December 3, 2014, and further adjourned to December 10, 2014, and January 9, 2015 to permit further solicitation of proxies on the proposals noted below.
An abstention or a broker non-vote is considered present for purposes of determining a quorum but has the effect of a vote against such matters. At the special meeting of shareholders held on January 9, 2015, insufficient votes were obtained to approve the following proposals:
Proposal: To permit Prudential Investments LLC (PI) to enter into or make material changes to the Fund’s subadvisory agreements with subadvisers that are wholly-owned subsidiaries of PI or a sister company of PI (wholly-owned subadvisers) without shareholder approval.
SHARES VOTED | % OF VOTED | % OF TOTAL | ||||||||||
FOR | 9,268,069.316 | 24.131 | % | 20.279 | % | |||||||
AGAINST | 579,603.398 | 1.509 | % | 1.268 | % | |||||||
ABSTAIN | 391,585.892 | 1.019 | % | 0.857 | % | |||||||
BROKER NON-VOTE | 28,169,281.786 | 73.341 | % | 61.635 | % | |||||||
TOTAL | 38,408,540.392 | 100.000 | % | 84.039 | % |
Proposal: To designate the Fund’s investment objective as a non-fundamental policy of the Fund, meaning that the Fund’s investment objective could be changed with the approval of the Fund’s Board of Directors, but without shareholder approval.
SHARES VOTED | % OF VOTED | % OF TOTAL | ||||||||||
FOR | 5,944,237.786 | 15.477 | % | 13.006 | % | |||||||
AGAINST | 3,782,098.089 | 9.847 | % | 8.275 | % | |||||||
ABSTAIN | 512,922.481 | 1.335 | % | 1.122 | % | |||||||
BROKER NON-VOTE | 28,169,282.036 | 73.341 | % | 61.636 | % | |||||||
TOTAL | 38,408,540.392 | 100.000 | % | 84.039 | % |
Prudential Global Total Return Fund, Inc. | 101 |
Approval of Advisory Agreement
Approval of New Sub-Subadvisory Agreement
As required by the Investment Company Act of 1940, as amended (the 1940 Act), at an in-person meeting of the Board of Trustees (the Board) held on March 3-5, 2015, the Board, including a majority of the Independent Trustees, considered and approved a proposed sub-subadvisory agreement (the “Sub-Subadvisory Agreement”) between Prudential Investment Management, Inc. (PIM or the Subadviser) and Pramerica Investment Management Limited (PIML or the Sub-Subadviser), under which PIM may delegate subadvisory authority to PIML such that PIML may execute trades directly on behalf of the Fund. The Board noted that counsel to the Fund had issued an opinion that the delegation of subadvisory services by PIM to PIML with respect to the Fund would not constitute an assignment of the current subadvisory agreement between Prudential Investments LLC (the Manager) and PIM with respect to the Fund or a material amendment of the agreement, so that PIM and PIML could enter into the Sub-Subadvisory Agreement with respect to the Fund with Board approval but without shareholder approval being required under the 1940 Act.
In approving the Sub-Subadvisory Agreement, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services to be provided to the Fund by the Sub-Subadviser; any relevant comparable performance information; the fees, if any, proposed to be paid by PIM to the Sub-Subadviser under the Sub-Subadvisory Agreement and the potential for economies of scale that may be shared with the Fund and its shareholders. In connection with its deliberations, the Board considered information provided by the Manager, the Subadviser and the Sub-Subadviser at or in advance of the meetings on March 3-5, 2015. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the Sub-Subadvisory Agreement with respect to the Fund.
The Trustees determined that the overall arrangements between the Manager, the Subadviser and the Sub-Subadviser, which will serve as a sub-subadviser to the Fund pursuant to the terms of the Sub-Subadvisory Agreement, are in the best interests of the Fund and its shareholders in light of the services to be performed, the fees to be charged, if any, under the Sub-Subadvisory Agreement and such other matters as the Trustees considered relevant in the exercise of their business judgment.
The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the Sub-Subadvisory Agreement with respect to the Fund are separately discussed below.
Prudential Global Total Return Fund, Inc.
Approval of Advisory Agreement (continued)
Nature, Quality and Extent of Services
The Board noted that it had received and considered information regarding the nature and extent of services currently provided to the Fund by PIM under the current subadvisory agreement at the meetings on June 9-11, 2014. The Board also noted that PIM proposed to formally delegate trading and limited management authority for the Fund to PIML so that PIML will be authorized to act on behalf of the Fund and conduct real-time trading in either the United States or the United Kingdom, where PIML is organized. The Board noted the Manager’s statement that the existing arrangements, which require all trades on behalf of the Fund to be routed through PIM personnel in the US, create delays that potentially disadvantage the Fund and its shareholders.
With respect to the quality of services, the Board considered, among other things, the background and experience of the PIML management team and compliance personnel. The Board met with representatives from PIM and PIML and reviewed the qualifications, backgrounds and responsibilities of the personnel who would be authorized to act on behalf of the Funds. The Board was also provided with information pertaining to the organizational structure, senior management, investment operations, and other relevant information pertaining to PIML. The Board noted that it received a favorable compliance report from the Fund’s Chief Compliance Officer (CCO) as to PIML.
The Board concluded that it was satisfied with the nature, extent and quality of the investment sub-subadvisory services anticipated to be provided to the Fund by PIML and that there was a reasonable basis on which to conclude that the Fund would benefit from the additional subadvisory services to be provided by PIML under the new Sub-Subadvisory Agreement. The Board noted the Manager’s statement that no member of the PIML portfolio management team would serve as a portfolio manager of the Fund.
Performance of the Fund
The Board noted that performance of other accounts managed by PIML was not a relevant factor for its consideration since PIML would not be responsible for managing Fund assets under the Sub-Subadvisory Agreement. The Board noted the Manager’s statements that PIML’s role would be limited to trading on behalf of the Fund and that PIM portfolio managers will oversee all transactions executed by PIML.
Investment Subadvisory Fee Rates
The Board noted that under the Sub-Subadvisory Agreement PIML will be paid a subadvisory fee, if any, by PIM, not the Fund or the Manager. The Board noted the
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Manager’s statement that the fees and expenses of the Fund and the fees paid by the Manager to PIM will not increase as a result of the Sub-Subadvisory Agreement.
Sub-Subadviser’s Profitability
The Board noted that any fee to be paid to PIML for sub-subadvisory services would be paid by PIM, not the Manager or the Fund. The Board further noted that PIML is affiliated with PIM and the Manager and, a result, the Board will not separately consider PIML’s profitability since PIML’s profitability will be reflected in the Manager’s profitability report.
Economies of Scale
The Board noted that any fee to be paid to PIML for sub-subadvisory services would be paid by PIM, not the Manager or the Fund. The Board noted that it would review economies of scale in connection with future annual reviews of advisory agreements.
Other Benefits to the Sub-Subadviser or its Affiliates from Serving as Sub-Subadviser
The Board considered potential “fall-out” or ancillary benefits that might be received by PIML and its affiliates as a result of their relationships with the Fund. The Board concluded that any potential benefits to be derived by PIML, which included potential access to additional research resources and benefits to its reputation, were consistent with the types of benefits generally derived by subadvisers to mutual funds.
* * *
After full consideration of these factors, the Board concluded that the approval of the Sub-Subadvisory Agreement was in the best interests of the Fund and its shareholders.
Prudential Global Total Return Fund, Inc.
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 • Stephen P. Munn • Stuart S. Parker • James E. Quinn • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • 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 • Kelly A. Coyne, Assistant Treasurer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
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INVESTMENT SUBADVISER | Prudential Investment Management, Inc. | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | One Wall Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Global Total Return Fund, Inc., Prudential Investments, Attn: Board of Directors, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 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:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC.
SHARE CLASS | A | B | C | Q | Z | |||||
NASDAQ | GTRAX | PBTRX | PCTRX | PGTQX | PZTRX | |||||
CUSIP | 74439A103 | 74439A202 | 74439A301 | 74439A509 | 74439A400 |
MF169E2 0278748-00001-00
Item 2 – | Code of Ethics – Not required, as this is not an annual filing. | |
Item 3 – | Audit Committee Financial Expert – Not required, as this is not an annual filing. | |
Item 4 – | Principal Accountant Fees and Services – Not required, as this is not an annual filing. | |
Item 5 – | Audit Committee of Listed Registrants – Not applicable. | |
Item 6 – | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. | |
Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. | |
Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. | |
Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. | |
Item 10 – | Submission of Matters to a Vote of Security Holders – Not applicable. | |
Item 11 – | Controls and Procedures | |
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. | |
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. | |
Item 12 – | Exhibits | |
(a) | (1) Code of Ethics – Not required, as this is not an annual filing. | |
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. | ||
(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. | ||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | Prudential Global Total Return Fund, Inc. | |||
By: | /s/ Deborah A. Docs | |||
Deborah A. Docs | ||||
Secretary | ||||
Date: | June 18, 2015 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stuart S. Parker | |||
Stuart S. Parker | ||||
President and Principal Executive Officer | ||||
Date: | June 18, 2015 | |||
By: | /s/ M. Sadiq Peshimam | |||
M. Sadiq Peshimam | ||||
Treasurer and Principal Financial and Accounting Officer | ||||
Date: | June 18, 2015 |