Prudential Investment Portfolios 7 N-CSR Certified annual shareholder report (management investment company)

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:	811-04864
Exact name of registrant as specified in charter:	Prudential Investment Portfolios 7
Address of principal executive offices:	655 Broad Street, 17th Floor
	Newark, New Jersey 07102
Name and address of agent for service:	Deborah A. Docs
	655 Broad Street, 17th Floor
	Newark, New Jersey 07102
Registrant’s telephone number, including area code:	800-225-1852
Date of fiscal year end:	8/31/2015
Date of reporting period:	8/31/2015

Item 1 – Reports to Stockholders –

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

PRUDENTIAL JENNISON VALUE FUND

ANNUAL REPORT ^· AUGUST 31, 2015

Objective

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.

Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), a Prudential Financial company and member SIPC. Jennison Associates (Jennison) is a registered investment adviser. Both are Prudential Financial companies. ^©2015 Prudential Financial, Inc. and its related entities. Prudential Investments LLC, Prudential, Jennison Associates, Jennison, 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.

October 15, 2015

Dear Shareholder:

We hope you find the annual report for the Prudential Jennison Value Fund informative and useful. The report covers performance for the 12-month period that ended August 31, 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 Jennison Value Fund

Prudential Jennison Value Fund 1

Your Fund’s Performance (Unaudited)

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852.

Cumulative Total Returns (Without Sales Charges) as of 8/31/15
	One Year			Five Years			Ten Years			Since Inception
Class A		–8.12	%		73.55	%		69.72	%		—
Class B		–8.75			67.62			58.16			—
Class C		–8.75			67.68			57.98			—
Class Q		–7.73			N/A			N/A			52.46% (10/31/11)
Class R		–8.29			71.85			65.65			—
Class Z		–7.84			76.18			74.59			—
Russell 1000® Value Index		–3.48			98.34			82.17			—
S&P 500 Index		0.48			108.75			99.46			—
Lipper Large-Cap Value Funds Average		–3.86			87.84			71.31			—
Average Annual Total Returns (With Sales Charges) as of 9/30/15
	One Year			Five Years			Ten Years			Since Inception
Class A		–15.33	%		7.46	%		3.95	%		—
Class B		–15.12			7.79			3.81			—
Class C		–11.83			7.92			3.79			—
Class Q		–9.96			N/A			N/A			9.80% (10/31/11)
Class R		–10.53			8.47			4.29			—
Class Z		–10.13			9.01			4.84			—
Russell 1000 Value Index		–4.42			12.29			5.71			—
S&P 500 Index		–0.61			13.33			6.79			—
Lipper Large-Cap Value Funds Average		–5.39			10.81			4.98			—

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Average Annual Total Returns (With Sales Charges) as of 8/31/15
	One Year			Five Years			Ten Years			Since Inception
Class A		–13.17	%		10.40	%		4.84	%	—
Class B		–12.98			10.75			4.69		—
Class C		–9.60			10.89			4.68		—
Class Q		–7.73			N/A			N/A		11.62% (10/31/11)
Class R		–8.29			11.44			5.18		—
Class Z		–7.84			11.99			5.73		—
Average Annual Total Returns (Without Sales Charges) as of 8/31/15
	One Year			Five Years			Ten Years			Since Inception
Class A		–8.12	%		11.66	%		5.43	%	—
Class B		–8.75			10.88			4.69		—
Class C		–8.75			10.89			4.68		—
Class Q		–7.73			N/A			N/A		11.62% (10/31/11)
Class R		–8.29			11.44			5.18		—
Class Z		–7.84			11.99			5.73		—

Growth of a $10,000 Investment

The graph compares a $10,000 investment in the Fund’s Class A shares with a similar investment in the Russell 1000 Value Index and the S&P 500 Index by portraying the initial account values at the beginning of the 10-year period for Class A shares (August 31, 2005) and the account values at the end of the current fiscal year (August 31, 2015) as measured on a quarterly basis. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) the maximum applicable front-end sales charge was deducted from the initial $10,000 investment in Class A shares; (b) all recurring fees (including management fees) were deducted; and

Prudential Jennison Value Fund 3

Your Fund’s Performance (continued)

(c) all dividends and distributions were reinvested. The line graph provides information for Class A shares only. As indicated in the tables provided earlier, performance for Class B, Class C, Class Q, Class R, and Class Z shares will vary due to the differing charges and expenses applicable to each share class (as indicated in the following paragraphs). Without waiver of fees and/or expense reimbursement, if any, the Fund’s returns would have been lower.

Past performance does not predict future performance. Total returns and the ending account values in the graphs include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.

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 R	Class Z
Maximum initial sales charge	5.50% of the public offering price	None	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) 1% (Yr. 6) 0%  (Yr. 7)	1% on sales made within 12 months of purchase	None	None	None
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets)	.30%	1%	1%	None	.75% (.50% currently)	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.

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Benchmark Definitions

Russell 1000 Value Index

The Russell 1000 Value Index is an unmanaged index comprising those securities in the Russell 1000 Index with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios, higher dividend yields, and lower forecasted growth values. The cumulative total return for the Russell 1000 Value Index measured from the month-end closest to the inception date for Class Q shares through 8/31/15 is 68.33%. The average annual total return for the Russell 1000 Value Index measured from the month-end closest to the inception date for Class Q shares through 9/30/15 is 13.33%.

S&P 500 Index

The S&P 500 Index is an unmanaged index of 500 stocks of large US public companies. It gives an indication of how US stock prices have performed. The cumulative total return for the S&P 500 Index measured from the month-end closest to the inception date for Class Q shares through 8/31/15 is 70.85%. The average annual total return for the S&P 500 Index measured from the month-end closest to the inception date for Class Q shares through 9/30/15 is 13.92%.

Lipper Large-Cap Value Funds Average

The Lipper Large-Cap Value Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Large-Cap Value Funds category for the periods noted. Funds in the Lipper Average invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap value funds typically have a lower-than-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P 500 Index. The cumulative total return for the Lipper Large-Cap Value Funds Average measured from the month-end closest to the inception date for Class Q shares through 8/31/15 is 61.05%. The average annual total return for the Lipper Large-Cap Value Funds Average measured from the month-end closest to the inception date for Class Q shares through 9/30/15 is 11.81%.

Investors cannot invest directly in an index or average. The returns for the Indexes 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 Indexes and Lipper Average 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 8/31/15
JPMorgan Chase & Co., Banks	3.5	%
Wells Fargo & Co., Banks	3.3
Citigroup, Inc., Banks	2.8
Allergan PLC, Pharmaceuticals	2.7
Goldman Sachs Group, Inc. (The), Capital Markets	2.5

Holdings reflect only long-term investments and are subject to change.

Prudential Jennison Value Fund 5

Your Fund’s Performance (continued)

Five Largest Industries expressed as a percentage of net assets as of 8/31/15
Banks	13.5	%
Pharmaceuticals	12.9
Oil, Gas & Consumable Fuels	7.7
Media	5.7
Technology Hardware, Storage & Peripherals	5.3

Industry weightings reflect only long-term investments and are subject to change.

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Strategy and Performance Overview

How did the Fund perform?

The Prudential Jennison Value Fund’s Class A shares returned –8.12% in the 12 months ended August 31, 2015, underperforming the –3.48% return of the Russell 1000^® Value Index (the Index) and the –3.86% return of the Lipper Large-Cap Value Funds Average.

In the Index, health care posted a double-digit gain, while energy and materials lost the most value.

In the Fund, consumer discretionary and health care positions posted the largest gains and contributed the most to positive absolute and relative returns. On the other hand, stock selection in energy and industrials proved detrimental to performance.

What was the market environment?

Weak energy prices, a strong US dollar, and slowing economic growth in China were key influences on the global economic landscape in the last 12 months. The Federal Reserve ended its quantitative-easing program, signaling confidence in the health of US economic activity and labor market conditions. China’s growth continued to slow despite stimulus measures, easing in lending markets, and the devaluation of the yuan. Europe struggled, unsuccessfully, to avert Greece’s looming default even as the country’s new government called for less economic austerity. Tensions between Russia and Ukraine remained elevated. Brazil flirted with recession. Japan showed little economic improvement, although investors hoped a weaker yen would boost exports. These challenges, combined with uncertainty about the timing of anticipated monetary tightening in the US, contributed to continued volatility in global financial markets.

Which holdings made the largest positive contributions to the Fund’s return?

In health care, Cigna, Allergan, and Teva made strong advances.

• See “Comments on Largest Holdings” below for discussion of Allergan.

• Cigna benefited from increasing enrollments and global expansion plans. Cigna is a leading managed care company in an industry where Jennison thinks scale is critically important given the changes resulting from the Affordable Care Act. Jennison also likes the company’s consistent growth and finds the valuation attractive.

• Shares of Teva Pharmaceuticals surged on the news it was buying Allergan.

Prudential Jennison Value Fund 7

Strategy and Performance Overview (continued)

In consumer discretionary, Carnival Cruise Lines drove outperformance.

• Tighter supply as well as efforts to cut discounting helped Carnival Cruise Lines. In Jennison’s opinion, Carnival should benefit from growth in the EU, North America, and China. Moreover, Jennison believes that profitability should continue to unfold over coming quarters as industry capacity gets more in line with demand.

United Continental was a standout in industrials and the overall Fund.

• United Continental’s earnings, revenue, and guidance were solid as cost cuts and higher pricing took hold. United further announced a share buyback and appears on track to achieve several key revenue initiatives, including improvements to overall management.

Which holdings detracted most from the Fund’s return?

Energy positions dominated the Fund’s largest detractors, falling in tandem with substantial declines in oil prices and subsequent concerns over production and servicing activity.

• Marathon Oil is an independent exploration and production company. It continues to unlock value in its three key plays: the Eagle Ford, Bakken, and Oklahoma Resource Basins. Jennison likes its healthy balance sheet and improving resource base, and believes it is attractively valued relative to peers.

• Noble Energy is an independent energy company which engages in the acquisition, exploration, and production of crude oil, natural gas, and natural gas liquids (NGLs) worldwide. The company’s core assets are located in the Niobrara and Marcellus, two of the most productive onshore basins in the US, which are expected to provide years of inventory. With its prospects for growth in the Middle East, efficient use of capital and prudent cost management, it is Jennison’s view that Noble Energy could benefit over the medium- to long-term given its inexpensive valuation relative to its peer group.

• Halliburton is a leading diversified oilfield services provider in North America. Jennison believes that positive attributes include leverage to any recovery in US drilling completion activity and combined benefits from Halliburton’s pending acquisition of oil services provider Baker Hughes.

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In industrials, SPX and Hertz lost ground.

• SPX was hurt by worse than expected results in their oil and gas segment, accelerating losses in South Africa, and lower multiples for flow space companies in general. Jennison found the company’s valuation attractive, believing that several of its businesses would produce better margins, and that plans to split the company into two separate entities would help close the gap between the stock price and their assessment of underlying intrinsic value.

• Hertz Global Holdings was hurt by a number of operational challenges. Jennison believes the “low-expectations” profile of the company fits their contrarian thinking especially given the multiple levers that it thinks Hertz can pull for improved business metrics and free cash flow generation.

Were there significant changes to the portfolio?

The Fund’s weightings in health care, financials, and consumer discretionary increased, while its weightings in energy, industrials, and consumer staples decreased. Relative to the Index, the Fund was significantly overweight in consumer discretionary and health care as well as information technology. All other sectors were underweight at period end.

Positions initiated in the period include Pfizer, FirstEnergy, and Vodafone. Positions eliminated include Goldcorp, General Motors, and NRG Energy.

Prudential Jennison Value Fund 9

Comments on Largest Holdings

3.5% JPMorgan Chase & Co., Banks

Jennison finds JPMorgan Chase attractively valued and believes it has superior execution skills relative to other banks in its category, and believes it is also well positioned for when the interest rate environment improves.

3.3% Wells Fargo & Co., Banks

Jennison believes that Wells Fargo is a strong franchise with superior execution skills relative to other banks in its category. Jennison believes that it should continue to produce superior returns on equity and strong capital returns, and benefit from a pick-up in mortgages.

2.8% Citigroup, Inc., Banks

Citigroup’s financial performance has improved over the past several quarters, with 2015 targets for efficiency ratio and return on assets already achieved in the year’s first half. Jennison believes the stock’s current valuation fails to reflect the company’s improving fundamentals.

2.7% Allergan PLC, Pharmaceuticals

Allergan (formerly Actavis) develops and markets both brand and generic drugs. After several acquisitions, it has grown in size and scope, and is now, Jennison believes, a formidable pharmaceutical company with a global scope.

2.5% Goldman Sachs Group, Inc. (The), Capital Markets

Jennison likes Goldman Sachs for its strong capital base and leading global positions in investment banking, capital markets, trading, and asset management. In Jennison’s view, these should provide attractive exposure to long-term global economic expansion.

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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 March 1, 2015, at the beginning of the period, and held through the six-month period ended August 31, 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 on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of

Prudential Jennison Value Fund 11

Fees and Expenses (continued)

Prudential Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

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 Jennison Value Fund		Beginning Account Value March 1, 2015		Ending Account Value August 31, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period*
Class A	Actual	$	1,000.00	$	925.10		1.06	%	$	5.14
	Hypothetical	$	1,000.00	$	1,019.86		1.06	%	$	5.40
Class B	Actual	$	1,000.00	$	922.50		1.76	%	$	8.53
	Hypothetical	$	1,000.00	$	1,016.33		1.76	%	$	8.94
Class C	Actual	$	1,000.00	$	922.50		1.76	%	$	8.53
	Hypothetical	$	1,000.00	$	1,016.33		1.76	%	$	8.94
Class Q	Actual	$	1,000.00	$	927.10		0.63	%��	$	3.06
	Hypothetical	$	1,000.00	$	1,022.03		0.63	%	$	3.21
Class R	Actual	$	1,000.00	$	924.50		1.26	%	$	6.11
	Hypothetical	$	1,000.00	$	1,018.85		1.26	%	$	6.41
Class Z	Actual	$	1,000.00	$	927.10		0.76	%	$	3.69
	Hypothetical	$	1,000.00	$	1,021.37		0.76	%	$	3.87

*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 184 days in the six-month period ended August 31, 2015, and divided by 365 days in the Fund’s fiscal year ended August 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.

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The Fund’s annualized expense ratios for the 12-month period ended August 31, 2015, are as follows:

Class	Gross Operating Expenses			Net Operating Expenses
A		1.06	%		1.06	%
B		1.76			1.76
C		1.76			1.76
Q		0.63			0.63
R		1.51			1.26
Z		0.76			0.76

Net operating expenses shown above reflect 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 Jennison Value Fund 13

Portfolio of Investments

as of August 31, 2015

Description	Shares		Value (Note 1)
LONG-TERM INVESTMENTS    99.4%
COMMON STOCKS
Aerospace & Defense    2.0%
Boeing Co. (The)		94,337	$	12,327,959
Airlines    0.7%
United Continental Holdings, Inc.*		69,938		3,984,368
Auto Components    1.8%
Lear Corp.		107,230		11,022,172
Banks    13.5%
Bank of America Corp.		848,810		13,869,555
Citigroup, Inc.		314,336		16,810,689
JPMorgan Chase & Co.		334,017		21,410,490
PNC Financial Services Group, Inc. (The)		103,138		9,397,935
Wells Fargo & Co.		371,048		19,787,990
				81,276,659
Capital Markets    4.4%
Goldman Sachs Group, Inc. (The)		80,883		15,254,534
Morgan Stanley		334,521		11,524,248
				26,778,782
Chemicals    1.1%
FMC Corp.		162,722		6,884,768
Communications Equipment    1.6%
Brocade Communications Systems, Inc.		884,274		9,417,518
Consumer Finance    4.5%
Capital One Financial Corp.		127,602		9,921,056
Navient Corp.		558,400		7,141,936
SLM Corp.*		1,206,586		10,231,849
				27,294,841
Diversified Financial Services    1.6%
Voya Financial, Inc.		220,740		9,509,479
Electric Utilities    2.3%
FirstEnergy Corp.		427,714		13,669,739

See Notes to Financial Statements.

Prudential Jennison Value Fund 15

Portfolio of Investments

as of August 31, 2015 continued

Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)
Electrical Equipment    1.4%
Eaton Corp. PLC		143,588	$	8,193,131
Electronic Equipment, Instruments & Components    1.0%
Flextronics International Ltd.*		569,086		5,981,094
Energy Equipment & Services    1.4%
Halliburton Co.		215,055		8,462,414
Food Products    2.4%
Mondelez International, Inc. (Class A Stock)		347,610		14,724,760
Health Care Equipment & Supplies    1.4%
Zimmer Biomet Holdings, Inc.		83,203		8,616,503
Health Care Providers & Services    2.6%
Cigna Corp.		47,013		6,618,960
HCA Holdings, Inc.*		106,111		9,191,335
				15,810,295
Hotels, Restaurants & Leisure    4.6%
Carnival Corp.		277,161		13,644,636
Hyatt Hotels Corp. (Class A Stock)*(a)		148,475		7,606,374
McDonald’s Corp.		70,937		6,740,434
				27,991,444
Insurance    3.7%
MetLife, Inc.		258,208		12,936,221
Travelers Cos., Inc. (The)		93,620		9,319,871
				22,256,092
Internet Software & Services    1.9%
Google, Inc. (Class A Stock)*		17,943		11,623,834
Machinery    1.1%
SPX Corp.		116,843		6,862,189
Media    5.7%
Comcast Corp. (Class A Stock)		213,153		12,006,909
Liberty Global PLC (United Kingdom) Series C*		247,862		11,121,568
Viacom, Inc. (Class B Stock)		75,612		3,082,701
Vivendi SA (France)		340,762		8,410,933
				34,622,111

See Notes to Financial Statements.

16

Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)
Multi-Utilities    1.5%
PG&E Corp.		184,406	$	9,142,849
Multiline Retail    2.0%
Target Corp.		155,172		12,058,416
Oil, Gas & Consumable Fuels    7.7%
Anadarko Petroleum Corp.		123,279		8,824,311
Chevron Corp.		61,045		4,944,034
Marathon Oil Corp.		367,092		6,347,021
Noble Energy, Inc.		195,776		6,540,876
Occidental Petroleum Corp.		137,795		10,060,413
Suncor Energy, Inc. (Canada)		352,788		9,962,733
				46,679,388
Pharmaceuticals    12.9%
AbbVie, Inc.		132,493		8,268,888
Allergan PLC*		52,686		16,002,845
Bayer AG (Germany), ADR		71,015		9,629,279
Merck & Co., Inc.		244,134		13,146,616
Mylan NV*(a)		119,686		5,935,229
Pfizer, Inc.		429,712		13,845,321
Teva Pharmaceutical Industries Ltd. (Israel), ADR		174,409		11,233,684
				78,061,862
Road & Rail    2.2%
Hertz Global Holdings, Inc.*		389,216		7,173,251
Union Pacific Corp.		68,915		5,908,772
				13,082,023
Semiconductors & Semiconductor Equipment    0.8%
Applied Materials, Inc.		285,880		4,598,380
Software    3.3%
Microsoft Corp.		282,591		12,298,360
PTC, Inc.*		224,038		7,420,139
				19,718,499
Technology Hardware, Storage & Peripherals    5.3%
Apple, Inc.		70,217		7,917,669
EMC Corp.		353,080		8,781,100

See Notes to Financial Statements.

Prudential Jennison Value Fund 17

Portfolio of Investments

as of August 31, 2015 continued

Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)
Technology Hardware, Storage & Peripherals (cont’d.)
Hewlett-Packard Co.		383,530	$	10,761,852
NCR Corp.*		183,661		4,608,054
				32,068,675
Textiles, Apparel & Luxury Goods    1.4%
Coach, Inc.		140,479		4,249,490
PVH Corp.		32,471		3,863,399
				8,112,889
Wireless Telecommunication Services    1.6%
Vodafone Group PLC (United Kingdom), ADR		273,501		9,430,315
TOTAL LONG-TERM INVESTMENTS (cost $465,336,267)				600,263,448
SHORT-TERM INVESTMENT    1.7%
AFFILIATED MONEY MARKET MUTUAL FUND
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $10,402,663; includes $6,337,586 of cash collateral for securities on loan)(Note 3)(b)(c)		10,402,663		10,402,663
TOTAL INVESTMENTS    101.1% (cost $475,738,930)(Note 5)				610,666,111
Liabilities in excess of other assets    (1.1)%				(6,841,681	)
NET ASSETS    100.0%			$	603,824,430

The following abbreviation is used in the portfolio descriptions:

ADR—American Depositary Receipt

* Non-income producing security.

(a) All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $6,101,282; cash collateral of $6,337,586 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. Securities on loan are subject to contractual netting arrangements.

(b) Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund.

(c) Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

See Notes to Financial Statements.

18

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.

The following is a summary of the inputs used as of August 31, 2015 in valuing such portfolio securities:

	Level 1		Level 2			Level 3
Investments in Securities
Common Stocks
Aerospace & Defense	$	12,327,959	$	—		$	—
Airlines		3,984,368		—			—
Auto Components		11,022,172		—			—
Banks		81,276,659		—			—
Capital Markets		26,778,782		—			—
Chemicals		6,884,768		—			—
Communications Equipment		9,417,518		—			—
Consumer Finance		27,294,841		—			—
Diversified Financial Services		9,509,479		—			—
Electric Utilities		13,669,739		—			—
Electrical Equipment		8,193,131		—			—
Electronic Equipment, Instruments & Components		5,981,094		—			—
Energy Equipment & Services		8,462,414		—			—
Food Products		14,724,760		—			—
Health Care Equipment & Supplies		8,616,503		—			—
Health Care Providers & Services		15,810,295		—			—
Hotels, Restaurants & Leisure		27,991,444		—	��		—
Insurance		22,256,092		—			—
Internet Software & Services		11,623,834		—			—
Machinery		6,862,189		—			—
Media		26,211,178		8,410,933			—
Multi-Utilities		9,142,849		—			—
Multiline Retail		12,058,416		—			—
Oil, Gas & Consumable Fuels		46,679,388		—			—
Pharmaceuticals		78,061,862		—			—

See Notes to Financial Statements.

Prudential Jennison Value Fund 19

Portfolio of Investments

as of August 31, 2015 continued

	Level 1		Level 2		Level 3
Common Stocks (continued):
Road & Rail	$	13,082,023	$	—	$	—
Semiconductors & Semiconductor Equipment		4,598,380		—		—
Software		19,718,499		—		—
Technology Hardware, Storage & Peripherals		32,068,675		—		—
Textiles, Apparel & Luxury Goods		8,112,889		—		—
Wireless Telecommunication Services		9,430,315		—		—
Affiliated Money Market Mutual Fund		10,402,663		—		—
Total	$	602,255,178	$	8,410,933	$	—

The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of August 31, 2015 were as follows (Unaudited):

Banks	13.5	%
Pharmaceuticals	12.9
Oil, Gas & Consumable Fuels	7.7
Media	5.7
Technology Hardware, Storage & Peripherals	5.3
Hotels, Restaurants & Leisure	4.6
Consumer Finance	4.5
Capital Markets	4.4
Insurance	3.7
Software	3.3
Health Care Providers & Services	2.6
Food Products	2.4
Electric Utilities	2.3
Road & Rail	2.2
Aerospace & Defense	2.0
Multiline Retail	2.0
Internet Software & Services	1.9
Auto Components	1.8
Affiliated Money Market Mutual Fund (including 1.0% of collateral for securities on loan)	1.7
Diversified Financial Services	1.6	%
Wireless Telecommunication Services	1.6
Communications Equipment	1.6
Multi-Utilities	1.5
Health Care Equipment & Supplies	1.4
Energy Equipment & Services	1.4
Electrical Equipment	1.4
Textiles, Apparel & Luxury Goods	1.4
Chemicals	1.1
Machinery	1.1
Electronic Equipment, Instruments & Components	1.0
Semiconductors & Semiconductor Equipment	0.8
Airlines	0.7
	101.1
Liabilities in excess of other assets	(1.1	)
	100.0	%

See Notes to Financial Statements.

20

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

FINANCIAL STATEMENTS

ANNUAL REPORT ^· AUGUST 31, 2015

Prudential Jennison Value Fund

Statement of Assets & Liabilities

as of August 31, 2015

Assets
Investments at value, including securities on loan of $6,101,282:
Unaffiliated investments (cost $465,336,267)	$	600,263,448
Affiliated investments (cost $10,402,663)		10,402,663
Receivable for investments sold		1,403,661
Dividends receivable		1,316,572
Receivable for Fund shares sold		862,765
Tax reclaim receivable		160,702
Total assets		614,409,811
Liabilities
Payable to broker for collateral for securities on loan		6,337,586
Payable for investments purchased		2,981,577
Payable for Fund shares reacquired		509,302
Management fee payable		312,338
Accrued expenses and other liabilities		224,587
Distribution fee payable		156,537
Affiliated transfer agent fee payable		62,664
Deferred trustees’ fees		790
Total liabilities		10,585,381
Net Assets	$	603,824,430
Net assets were comprised of:
Shares of beneficial interest, at par	$	313,557
Paid-in capital in excess of par		434,777,586
		435,091,143
Undistributed net investment income		4,145,986
Accumulated net realized gain on investment and foreign currency transactions		29,660,120
Net unrealized appreciation on investments and foreign currencies		134,927,181
Net assets, August 31, 2015	$	603,824,430

See Notes to Financial Statements.

22

Class A
Net asset value and redemption price per share ($466,847,371 ÷ 24,211,805 shares of beneficial interest issued and outstanding)	$	19.28
Maximum sales charge (5.50% of offering price)		1.12
Maximum offering price to public	$	20.40
Class B
Net asset value, offering price and redemption price per share ($7,742,162 ÷ 414,102 shares of beneficial interest issued and outstanding)	$	18.70
Class C
Net asset value, offering price and redemption price per share ($22,635,281 ÷ 1,211,375 shares of beneficial interest issued and outstanding)	$	18.69
Class Q
Net asset value, offering price and redemption price per share ($24,265,910 ÷ 1,256,029 shares of beneficial interest issued and outstanding)	$	19.32
Class R
Net asset value, offering price and redemption price per share ($10,214,610 ÷ 531,311 shares of beneficial interest issued and outstanding)	$	19.23
Class Z
Net asset value, offering price and redemption price per share ($72,119,096 ÷ 3,731,096 shares of beneficial interest issued and outstanding)	$	19.33

See Notes to Financial Statements.

Prudential Jennison Value Fund 23

Statement of Operations

Year Ended August 31, 2015

Net Investment Income
Income
Unaffiliated dividend income (net of foreign withholding taxes of $341,283)	$	11,882,168
Affiliated dividend income		19,898
Affiliated income from securities lending, net		7,472
Total income		11,909,538
Expenses
Management fee		3,868,744
Distribution fee—Class A		1,581,625
Distribution fee—Class B		96,997
Distribution fee—Class C		260,430
Distribution fee—Class R		92,811
Transfer agent’s fees and expenses (including affiliated expenses of $283,000)		877,000
Custodian and accounting fees		107,000
Shareholders’ reports		90,000
Registration fees		86,000
Trustees’ fees		30,000
Legal fees and expenses		29,000
Audit fee		23,000
Insurance expenses		9,000
Loan interest expense		11
Miscellaneous		19,133
Total expenses		7,170,751
Less: Distribution fee waiver-Class R		(30,937	)
Net expenses		7,139,814
Net investment income		4,769,724
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions		41,546,444
Foreign currency transactions		(1,468	)
		41,544,976
Net change in unrealized appreciation (depreciation) on investments		(101,482,067	)
Net loss on investment and foreign currency transactions		(59,937,091	)
Net Decrease In Net Assets Resulting From Operations	$	(55,167,367	)

See Notes to Financial Statements.

24

Statement of Changes in Net Assets

	Year Ended August 31,
	2015			2014
Increase (Decrease) In Net Assets
Operations
Net investment income	$	4,769,724		$	2,818,235
Net realized gain on investment and foreign currency transactions		41,544,976			80,184,106
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		(101,482,067	)		56,776,277
Net increase (decrease) in net assets resulting from operations		(55,167,367	)		139,778,618
Dividends and Distributions (Note 1)
Dividends from net investment income
Class A		(2,588,078	)		(2,674,635	)
Class Q		(178,495	)		(186,277	)
Class R		(36,932	)		(40,023	)
Class X		—			(306	)
Class Z		(637,602	)		(554,300	)
		(3,441,107	)		(3,455,541	)
Distributions from net realized gains
Class A		(36,686,713	)		—
Class B		(714,108	)		—
Class C		(1,854,657	)		—
Class Q		(1,359,605	)		—
Class R		(874,167	)		—
Class Z		(5,636,419	)		—
		(47,125,669	)		—
Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		46,233,006			49,943,845
Net asset value of shares issued in reinvestment of dividends and distributions		46,944,697			3,155,000
Cost of shares reacquired		(109,521,387	)		(121,083,142	)
Net decrease in net assets from Fund share transactions		(16,343,684	)		(67,984,297	)
Total increase (decrease)		(122,077,827	)		68,338,780
Net Assets:
Beginning of year		725,902,257			657,563,477
End of year(a)	$	603,824,430		$	725,902,257
(a) Includes undistributed net investment income of:	$	4,145,986		$	2,818,837

See Notes to Financial Statements.

Prudential Jennison Value Fund 25

Notes to Financial Statements

Prudential Investment Portfolios 7 (the “Portfolios”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as a diversified, open-end, management investment company and currently consists of Prudential Jennison Value Fund (the “Fund”). The investment objective of the Fund is capital appreciation.

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 Trustees (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.

26

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 the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.

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. 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.

Participatory Notes (P-notes) are generally valued based upon the value of a related underlying security that trades actively in the market and are classified as Level 2 in the fair value hierarchy.

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 (“OTC”) 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.

OTC 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 generally 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.

Prudential Jennison Value Fund 27

Notes to Financial Statements

continued

Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.

When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment 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.

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.

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:

(i) market value of investment securities, other assets and liabilities—at the current rates of exchange;

(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the

28

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.

Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a 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.

Securities Lending: The Fund may lend its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in a highly liquid short-term money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially the Fund has the right to repurchase the securities in the open market. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities, and any interest on the investment of any cash received as collateral. The Fund also continues to receive interest and dividends or amounts equivalent thereto

Prudential Jennison Value Fund 29

Notes to Financial Statements

continued

on the securities loaned and recognizes any unrealized gain or loss in the market price of the securities loaned that may occur during the term of the loan.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized and unrealized gains and 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 expects to pay dividends from net investment income and distributions from net realized capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in capital in excess of par, as appropriate.

Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

Withholding taxes on foreign dividends 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 amounts.

30

Note 2. Agreements

The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The subadvisory agreement provides that Jennison furnishes investment advisory services in connection with the management of the Fund. In connection therewith, Jennison is obligated to keep certain books and records of the Fund. PI pays for the services of Jennison, the cost of compensation of officers, 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 .60% of the Fund’s average daily net assets up to $500 million, .50% of the next $500 million, .475% of the next $500 million and .45% of the average daily net assets in excess of $1.5 billion. The effective management fee rate was .57% for the year ended August 31, 2015.

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class Q, Class R and Class Z shares. Formerly through April 11, 2014, the Fund had a distribution agreement with Prudential Annuities Distributors, Inc. (“PAD”), which, together with PIMS, served as co-distributor of the Class X shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B, Class C and Class R shares, pursuant to plans of distribution (the “Class A, B, C and R 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, C and R Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1%, 1% and .75% of the average daily net assets of the Class A, B, C and R shares, respectively. PIMS has contractually agreed through December 31, 2016 to limit such expenses to .50% of the average daily net assets of the Class R shares. As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being offered for sale.

Prior to the final conversion of Class X shares, management received the maximum allowable amount of sales charges for Class X shares in accordance with regulatory limits. As such, any contingent deferred sales charges received by the Manager were contributed back into the Fund and included in the Financial Highlights as a contribution to capital.

Prudential Jennison Value Fund 31

Notes to Financial Statements

continued

PIMS has advised the Fund that it has received $164,391 in front-end sales charges resulting from sales of Class A shares, during the year ended August 31, 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 year ended August 31, 2015, it received $131, $8,964 and $1,711 in contingent deferred sales charges imposed upon certain redemptions by Class A, Class B and Class C shareholders, respectively.

PI, PIMS, PAD and Jennison 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.

Prudential Investment Management, Inc. (“PIM”), an indirect, wholly-owned subsidiary of Prudential, is the Fund’s securities lending agent. Earnings from securities lending are disclosed on the Statement of Operations as “Affiliated income from securities lending, net”. For the year ended August 31, 2015, PIM has been compensated $2,254 for these services.

The Fund invests in the Prudential Core Taxable Money Market Fund (the “Core Fund”), a portfolio of 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, excluding short-term investments, for the year ended August 31, 2015, were $213,666,337 and $250,860,824, respectively.

32

Note 5. Distributions and Tax Information

Distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. In order to present undistributed net investment income, accumulated net realized gain on investment and foreign currency transactions and paid-in capital in excess of par on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to undistributed net investment income and accumulated net realized gain on investment and foreign currency transactions. For the year ended August 31, 2015, the adjustments were to decrease undistributed net investment income and increase accumulated net realized gain on investment and foreign currency transactions by $1,468 due to the reclassification of net foreign currency losses. Net investment income, net realized gain (loss) on investment and foreign currency transactions and net assets were not affected by this change.

For the year ended August 31, 2015, the tax character of dividends paid by the Fund were $3,441,107 of ordinary income and $47,125,669 of long-term capital gains. For the year ended August 31, 2014, the tax character of dividends paid was $3,455,541 of ordinary income.

As of August 31, 2015, the accumulated undistributed earnings on a tax basis were $4,146,700 of ordinary income and $32,082,373 of long-term capital gains. This differs from the amount shown on the Statement of Assets and Liabilities primarily due to cumulative timing differences between financial and tax reporting.

The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of August 31, 2015 were as follows:

Tax Basis	Appreciation	Depreciation	Net Unrealized Appreciation
$478,161,184	$165,955,327	$(33,450,400)	$132,504,927

The difference between book basis and tax basis is primarily attributable to deferred losses on wash sales.

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

Prudential Jennison Value Fund 33

Notes to Financial Statements

continued

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, Class R and Class Z shares. Class A shares are subject to a maximum front-end sales charge of 5.50%. Investors who purchase Class A shares in an amount of $1 million or more do not pay a front-end sales charge, but are subject to a contingent deferred sales charge (“CDSC”) of 1% for shares sold within 12 months of purchase. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class B shares are subject to a CDSC of 5%, which decreases by 1% annually to 1% in the fifth and six years and 0% in the seventh year. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. Class C shares are subject to 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. As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being

offered for sale. Class Q, Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.

Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of beneficial interest.

The Fund has authorized an unlimited number of shares of beneficial interest at $.01 par value divided into six classes, designated Class A, Class B, Class C, Class Q, Class R and Class Z. As of August 31, 2015, Prudential Financial, Inc. through its affiliates owned 79 Class Q shares of the Fund.

34

Transactions in shares of beneficial interest were as follows:

Class A	Shares			Amount
Year ended August 31, 2015:
Shares sold		607,589		$	12,779,591
Shares issued in reinvestment of dividends and distributions		1,933,409			38,223,491
Shares reacquired		(3,010,853	)		(63,432,600	)
Net increase (decrease) in shares outstanding before conversion		(469,855	)		(12,429,518	)
Shares issued upon conversion from other share class(es)		113,392			2,417,570
Shares reacquired upon conversion into other share class(es)		(244,897	)		(5,137,430	)
Net increase (decrease) in shares outstanding		(601,360	)	$	(15,149,378	)
Year ended August 31, 2014:
Shares sold		759,840		$	15,729,083
Shares issued in reinvestment of dividends and distributions		128,310			2,593,107
Shares reacquired		(3,862,569	)		(79,536,348	)
Net increase (decrease) in shares outstanding before conversion		(2,974,419	)		(61,214,158	)
Shares issued upon conversion from other share class(es)		155,836			3,200,084
Shares reacquired upon conversion into other share class(es)		(68,103	)		(1,470,116	)
Net increase (decrease) in shares outstanding		(2,886,686	)	$	(59,484,190	)
Class B
Year ended August 31, 2015:
Shares sold		56,786		$	1,164,571
Shares issued in reinvestment of dividends and distributions		35,917			691,763
Shares reacquired		(99,114	)		(2,031,615	)
Net increase (decrease) in shares outstanding before conversion		(6,411	)		(175,281	)
Shares reacquired upon conversion into other share class(es)		(106,628	)		(2,209,498	)
Net increase (decrease) in shares outstanding		(113,039	)	$	(2,384,779	)
Year ended August 31, 2014:
Shares sold		86,706		$	1,737,739
Shares reacquired		(107,703	)		(2,168,810	)
Net increase (decrease) in shares outstanding before conversion		(20,997	)		(431,071	)
Shares reacquired upon conversion into other shares class(es)		(151,482	)		(3,036,347	)
Net increase (decrease) in shares outstanding		(172,479	)	$	(3,467,418	)

Prudential Jennison Value Fund 35

Notes to Financial Statements

continued

Class C	Shares			Amount
Year ended August 31, 2015:
Shares sold		134,266		$	2,719,587
Shares issued in reinvestment of dividends and distributions		78,433			1,509,844
Shares reacquired		(210,333	)		(4,300,065	)
Net increase (decrease) in shares outstanding before conversion		2,366			(70,634	)
Shares reacquired upon conversion into other share class(es)		(42,240	)		(866,400	)
Net increase (decrease) in shares outstanding		(39,874	)	$	(937,034	)
Year ended August 31, 2014:
Shares sold		125,149		$	2,497,848
Shares reacquired		(426,108	)		(8,549,722	)
Net increase (decrease) in shares outstanding before conversion		(300,959	)		(6,051,874	)
Shares reacquired upon conversion into other share class(es)		(3,450	)		(70,452	)
Net increase (decrease) in shares outstanding		(304,409	)	$	(6,122,326	)
Class Q
Year ended August 31, 2015:
Shares sold		789,579		$	16,660,482
Shares issued in reinvestment of dividends and distributions		77,879			1,538,100
Shares reacquired		(439,990	)		(8,925,939	)
Net increase (decrease) in shares outstanding		427,468		$	9,272,643
Year ended August 31, 2014:
Shares sold		107,250		$	2,207,563
Shares issued in reinvestment of dividends and distributions		9,226			186,277
Shares reacquired		(389,841	)		(8,213,410	)
Net increase (decrease) in shares outstanding before conversion		(273,365	)		(5,819,570	)
Shares issued upon conversion from other share class(es)		54,009			1,110,965
Net increase (decrease) in shares outstanding		(219,356	)	$	(4,708,605	)
Class R
Year ended August 31, 2015
Shares sold		90,411		$	1,915,630
Shares issued in reinvestment of dividends and distributions		43,755			863,719
Shares reacquired		(201,410	)		(4,245,362	)
Net increase (decrease) in shares outstanding		(67,244	)	$	(1,466,013	)
Year ended August 31, 2014:
Shares sold		183,249		$	3,771,230
Shares issued in reinvestment of dividends and distributions		1,846			37,265
Shares reacquired		(216,662	)		(4,437,145	)
Net increase (decrease) in shares outstanding		(31,567	)	$	(628,650	)

36

Class X	Shares			Amount
Period ended April 11, 2014*:
Shares issued in reinvestment of dividends and distributions		12		$	246
Shares reacquired		(51	)		(1,015	)
Net increase (decrease) in shares outstanding before conversion		(39	)		(769	)
Shares reacquired upon conversion into Class A		(4,026	)		(81,073	)
Net increase (decrease) in shares outstanding		(4,065	)	$	(81,842	)
Class Z
Year ended August 31, 2015:
Shares sold		525,469		$	10,993,145
Shares issued in reinvestment of dividends and distributions		208,284			4,117,780
Shares reacquired		(1,256,559	)		(26,585,806	)
Net increase (decrease) in shares outstanding before conversion		(522,806	)		(11,474,881	)
Shares issued upon conversion from other share class(es)		277,224			5,829,065
Shares reacquired upon conversion into other share class(es)		(1,527	)		(33,307	)
Net increase (decrease) in shares outstanding		(247,109	)	$	(5,679,123	)
Year ended August 31, 2014:
Shares sold		1,151,066		$	24,000,382
Shares issued in reinvestment of dividends and distributions		16,721			338,105
Shares reacquired		(872,403	)		(18,176,692	)
Net increase (decrease) in shares outstanding before conversion		295,384			6,161,795
Shares issued upon conversion from other share class(es)		71,328			1,540,569
Shares reacquired upon conversion into other share class(es)		(57,890	)		(1,193,630	)
Net increase (decrease) in shares outstanding		308,822		$	6,508,734

* As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being offered for sale.

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.

Prudential Jennison Value Fund 37

Notes to Financial Statements

continued

Subsequent to the fiscal year end, the SCA has been renewed effective October 8, 2015, and will continue to provide a commitment of $900 million through October 6, 2016. Effective October 8, 2015, the Funds pay an annualized commitment fee of ..11% of the unused portion of the SCA.

The Fund utilized the SCA during the year ended August 31, 2015. The balance for the 1 day that the Fund had a loan outstanding during the year was $290,000, borrowed at an interest rate of 1.43%. At August 31, 2015, the Fund did not have an outstanding loan amount.

8. New Accounting Pronouncement

In May 2015, the FASB issued 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. Management has evaluated the implications of ASU No. 2015-07 and it has been determined that there is no impact on the financial statement disclosures.

38

Financial Highlights

Class A Shares
	Year Ended August 31,
	2015			2014			2013			2012			2011
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Year		$22.71			$18.65			$14.74			$14.01			$12.27
Income (loss) from investment operations:
Net investment income		.15			.08			.12			.07			.05
Net realized and unrealized gain (loss) on investment transactions		(1.95	)		4.08			3.93			.71			1.73
Total from investment operations		(1.80	)		4.16			4.05			.78			1.78
Less Dividends and Distributions:
Dividends from net investment income		(.11	)		(.10	)		(.14	)		(.05	)		(.04	)
Distributions from net realized gains		(1.52	)		-			-			-			-
Total dividends and distributions		(1.63	)		(.10	)		(.14	)		(.05	)		(.04	)
Net asset value, end of year		$19.28			$22.71			$18.65			$14.74			$14.01
Total Return(b):		(8.12)%			22.37%			27.71%			5.57%			14.48%
Ratios/Supplemental Data:
Net assets, end of year (000)		$466,847			$563,597			$516,600			$482,632			$541,305
Average net assets (000)		$527,222			$542,283			$496,591			$511,257			$614,287
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.06%			1.06%			1.09%			1.07%			1.04%
Expenses before waivers and/or expense reimbursement		1.06%			1.06%			1.09%			1.07%			1.04%
Net investment income		.70%			.40%			.74%			.48%			.33%
Portfolio turnover rate		32%			39%			30%			31%			56%

(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.

(c) Does not include expenses of the underlying portfolio in which the Fund invests.

See Notes to Financial Statements.

Prudential Jennison Value Fund 39

Financial Highlights

continued

Class B Shares
	Year Ended August 31,
	2015			2014			2013			2012			2011
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Year		$22.11			$18.19			$14.38			$13.72			$12.07
Income (loss) from investment operations:
Net investment income (loss)		-	(d)		(.06	)		.01			(.03	)		(.05	)
Net realized and unrealized gain (loss) on investment transactions		(1.89	)		3.98			3.84			.69			1.70
Total from investment operations		(1.89	)		3.92			3.85			.66			1.65
Less Dividends and Distributions:
Dividends from net investment income		-			-			(.04	)		-			-
Distributions from net realized gains		(1.52	)		-			-			-			-
Total dividends and distributions		(1.52	)		-			(.04	)		-			-
Net asset value, end of year		$18.70			$22.11			$18.19			$14.38			$13.72
Total Return(b):		(8.75)%			21.55%			26.85%			4.81%			13.67%
Ratios/Supplemental Data:
Net assets, end of year (000)		$7,742			$11,655			$12,727			$13,030			$18,493
Average net assets (000)		$9,700			$12,199			$12,950			$15,355			$23,534
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.76%			1.76%			1.79%			1.77%			1.74%
Expenses before waivers and/or expense reimbursement		1.76%			1.76%			1.79%			1.77%			1.74%
Net investment income (loss)		-	(e)		(.30)%			.06%			(.21)%			(.36)%
Portfolio turnover rate		32%			39%			30%			31%			56%

(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.

(c) Does not include expenses of the underlying portfolio in which the Fund invests.

(d) Less than $.005 per share.

(e) Less than .005%.

See Notes to Financial Statements.

40

Class C Shares
	Year Ended August 31,
	2015			2014			2013			2012			2011
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Year		$22.10			$18.18			$14.38			$13.72			$12.06
Income (loss) from investment operations:
Net investment income (loss)		-	(d)		(.06	)		.01			(.03	)		(.05	)
Net realized and unrealized gain (loss) on investment transactions		(1.89	)		3.98			3.83			.69			1.71
Total from investment operations		(1.89	)		3.92			3.84			.66			1.66
Less Dividends and Distributions:
Dividends from net investment income		-			-			(.04	)		-			-
Distributions from net realized gains		(1.52	)		-			-			-			-
Total dividends and distributions		(1.52	)		-			(.04	)		-			-
Net asset value, end of year		$18.69			$22.10			$18.18			$14.38			$13.72
Total Return(b):		(8.75)%			21.56%			26.78%			4.81%			13.76%
Ratios/Supplemental Data:
Net assets, end of year (000)		$22,635			$27,649			$28,284			$24,651			$28,355
Average net assets (000)		$26,044			$28,102			$26,554			$26,779			$32,039
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.76%			1.76%			1.79%			1.77%			1.74%
Expenses before waivers and/or expense reimbursement		1.76%			1.76%			1.79%			1.77%			1.74%
Net investment income (loss)		-	(e)		(.31)%			.05%			(.22)%			(.37)%
Portfolio turnover rate		32%			39%			30%			31%			56%

(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.

(c) Does not include expenses of the underlying portfolio in which the Fund invests.

(d) Less than $.005 per share.

(e) Less than .005%.

See Notes to Financial Statements.

Prudential Jennison Value Fund 41

Financial Highlights

continued

Class Q Shares
	Year Ended August 31,									October 31, 2011(b) through August 31,
	2015			2014			2013			2012
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$22.76			$18.68			$14.77			$14.21
Income (loss) from investment operations:
Net investment income		.24			.17			.20			.15
Net realized and unrealized gain (loss) on investment transactions		(1.96	)		4.09			3.92			.52
Total from investment operations		(1.72	)		4.26			4.12			.67
Less Dividends and Distributions:
Dividends from net investment income		(.20	)		(.18	)		(.21	)		(.11	)
Distributions from net realized gains		(1.52	)		-			-			-
Total dividends and distributions		(1.72	)		(.18	)		(.21	)		(.11	)
Net asset value, end of period		$19.32			$22.76			$18.68			$14.77
Total Return(c):		(7.73)%			22.92%			28.23%			4.83%
Ratios/Supplemental Data:
Net assets, end of period (000)		$24,266			$18,862			$19,577			$16,509
Average net assets (000)		$17,686			$20,513			$18,609			$22,334
Ratios to average net assets(f):
Expenses after waivers and/or expense reimbursement		.63%			.63%			.64%			.62%	(d)
Expenses before waivers and/or expense reimbursement		.63%			.63%			.64%			.62%	(d)
Net investment income		1.12%			.82%			1.18%			1.06%	(d)
Portfolio turnover rate		32%			39%			30%			31%	(e)

(a) Calculated based on average shares outstanding during the period.

(b) Commencement of offering.

(c) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized.

(d) Annualized.

(e) Not annualized.

(f) Does not include expenses of the underlying portfolio in which the Fund invests.

See Notes to Financial Statements.

42

Class R Shares
	Year Ended August 31,
	2015		2014		2013		2012		2011
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Year		$22.65		$18.60		$14.71		$13.98		$12.24
Income (loss) from investment operations:
Net investment income		.11		.04		.09		.04		.02
Net realized and unrealized gain (loss) on investment transactions		(1.95)		4.07		3.91		.71		1.73
Total from investment operations		(1.84)		4.11		4.00		.75		1.75
Less Dividends and Distributions:
Dividends from net investment income		(.06)		(.06)		(.11)		(.02)		(.01)
Distributions from net realized gains		(1.52)		-		-		-		-
Total dividends and distributions		(1.58)		(.06)		(.11)		(.02)		(.01)
Net asset value, end of year		$19.23		$22.65		$18.60		$14.71		$13.98
Total Return(b):		(8.29)%		22.16%		27.38%		5.35%		14.30%
Ratios/Supplemental Data:
Net assets, end of year (000)		$10,215		$13,557		$11,721		$9,794		$10,446
Average net assets (000)		$12,374		$12,649		$10,985		$10,660		$11,461
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.26%		1.26%		1.29%		1.27%		1.24%
Expenses before waiver and/or expense reimbursement		1.51%		1.51%		1.54%		1.52%		1.49%
Net investment income		.50%		.20%		.53%		.28%		.13%
Portfolio turnover rate		32%		39%		30%		31%		56%

(a) Calculated based on average shares outstanding during the year.

(b) 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.

(c) Does not include expenses of the underlying portfolio in which the Fund invests.

See Notes to Financial Statements.

Prudential Jennison Value Fund 43

Financial Highlights

continued

Class X Shares
	Period Ended April 11,			Year Ended August 31,
	2014(g)			2013			2012			2011			2010			2009
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$18.58			$14.69			$13.96			$12.22			$11.62			$16.37
Income (loss) from investment operations:
Net investment income		.03			.14			.07			.06			.05			.08
Net realized and unrealized gain on investment transactions		1.75			3.90			.71			1.72			.58			(3.81	)
Total from investment operations		1.78			4.04			.78			1.78			.63			(3.73	)
Less Dividends and Distributions:
Dividends from net investment income		(.11	)		(.15	)		(.05	)		(.04	)		(.04	)		(.09	)
Distributions from net realized gains		-			-			-			-			-			(.96	)
Total dividends and distributions		(.11	)		(.15	)		(.05	)		(.04	)		(.04	)		(1.05	)
Capital Contributions (Note 2):		-			-			-	(d)		-	(d)		.01			.03
Net asset value, end of period		$20.25			$18.58			$14.69			$13.96			$12.22			$11.62
Total Return(b):		9.57%			27.73%			5.65%			14.60%			5.51%			(20.42)%
Ratios/Supplemental Data:
Net assets, end of period (000)		$6			$76	��		$135			$314			$572			$1,032
Average net assets (000)		$38			$112			$232			$505			$909			$1,175
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		.77%	(e)		1.04%			1.02%			.99%			1.02%			1.09%
Expenses before waivers and/or expense reimbursement		.77%	(e)		1.04%			1.02%			.99%			1.02%			1.09%
Net investment income		.19%	(e)		.82%			.52%			.39%			.40%			.80%
Portfolio turnover rate		39%	(f)(h)		30%			31%			56%			56%			60%

(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 portfolio in which the Fund invests.

(d) Less than $.005 per share.

(e) Annualized.

(f) Not annualized.

(g) As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being offered for sale.

(h) Calculated as of August 31, 2014.

See Notes to Financial Statements.

44

Class Z Shares
	Year Ended August 31,
	2015			2014			2013			2012			2011
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Year		$22.77			$18.69			$14.77			$14.05			$12.30
Income (loss) from investment operations:
Net investment income		.21			.15			.16			.11			.09
Net realized and unrealized gain (loss) on investment transactions		(1.96	)		4.08			3.95			.70			1.74
Total from investment operations		(1.75	)		4.23			4.11			.81			1.83
Less Dividends and Distributions:
Dividends from net investment income		(.17	)		(.15	)		(.19	)		(.09	)		(.08	)
Distributions from net realized gains		(1.52	)		-			-			-			-
Total dividends and distributions		(1.69	)		(.15	)		(.19	)		(.09	)		(.08	)
Net asset value, end of year		$19.33			$22.77			$18.69			$14.77			$14.05
Total Return(b):		(7.84)%			22.76%			28.11%			5.83%			14.86%
Ratios/Supplemental Data:
Net assets, end of year (000)		$72,119			$90,582			$68,579			$244,881			$359,107
Average net assets (000)		$80,740			$78,915			$93,588			$295,370			$403,570
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		.76%			.76%			.79%			.77%			.74%
Expenses before waivers and/or expense reimbursement		.76%			.76%			.79%			.77%			.74%
Net investment income		1.00%			.72%			.95%			.78%			.64%
Portfolio turnover rate		32%			39%			30%			31%			56%

(a) Calculated based on average shares outstanding during the year.

(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.

(c) Does not include expenses of the underlying portfolio in which the Fund invests.

See Notes to Financial Statements.

Prudential Jennison Value Fund 45

Report of Independent Registered Public

Accounting Firm

The Board of Trustees and Shareholders

Prudential Investment Portfolios 7:

We have audited the accompanying statement of assets and liabilities of the Prudential Jennison Value Fund, a portfolio of Prudential Investment Portfolios 7 (hereafter referred to as the “Fund”), including the portfolio of investments, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian, transfer agent and brokers or by other appropriate auditing procedures when replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of August 31, 2015, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

October 30, 2015

46

Tax Information

(Unaudited)

We are advising you that during the year ended August 31, 2015, the Fund reports the maximum amount allowed per share, but not less than $1.52 for Class A, B, C, Q, R and Z shares as a capital gain distribution in accordance with Section 852(b)(3)(C) of the Internal Revenue Code.

For the year ended August 31, 2015, the Fund reports, in accordance with Section 854 of the Internal Revenue Code, the following percentages of the ordinary income dividends paid as 1) qualified dividend income (QDI); and 2) eligible for corporate dividends received deduction (DRD):

	QDI			DRD
Prudential Jennison Value Fund		100.00	%		100.00	%

In January 2016, you will be advised on IRS Form 1099-DIV or substitute 1099-DIV, as to the federal tax status of the dividends and distributions received by you in calendar year 2015.

Prudential Jennison Value Fund 47

INFORMATION ABOUT BOARD MEMBERS AND OFFICERS

(Unaudited)

Information about Board Members and Officers of the Fund is set forth below. Board Members who are not deemed to be “interested persons” of the Fund, as defined in the 1940 Act, are referred to as “Independent Board Members.” Board Members who are deemed to be “interested persons” of the Fund are referred to as “Interested Board Members.” The Board Members are responsible for the overall supervision of the operations of the Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Board in turn elects the Officers, who are responsible for administering the day-to-day operations of the Fund.

Independent Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Ellen S. Alberding (57) Board Member Portfolios Overseen: 66	President and Board Member, The Joyce Foundation (charitable foundation) (since 2002); Vice Chair, City Colleges of Chicago (community college system) (since 2011); Trustee, Skills for America’s Future (national initiative to connect employers to community colleges) (since 2011); Trustee, National Park Foundation (charitable foundation for national park system) (since 2009); Trustee, Economic Club of Chicago (since 2009).	None.
Kevin J. Bannon (63) Board Member Portfolios Overseen: 66	Managing Director (April 2008-May 2015) and Chief Investment Officer (October 2008-November 2013) of Highmount Capital LLC (registered investment adviser); formerly Executive Vice President and Chief Investment Officer (April 1993-August 2007) of Bank of New York Company; President (May 2003-May 2007) of BNY Hamilton Family of Mutual Funds.	Director of Urstadt Biddle Properties (equity real estate investment trust) (since September 2008).
Linda W. Bynoe (63) Board Member Portfolios Overseen: 66	President and Chief Executive Officer (since March 1995) and formerly Chief Operating Officer (December 1989-February 1995) of Telemat Ltd. (management consulting); formerly Vice President (January 1985-June 1989) at Morgan Stanley & Co. (broker-dealer).	Director of Simon Property Group, Inc. (retail real estate) (May 2003-May 2012); Director of Anixter International, Inc. (communication products distributor) (since January 2006); Director of Northern Trust Corporation (financial services) (since April 2006); Trustee of Equity Residential (residential real estate) (since December 2009).

Prudential Jennison Value Fund

Independent Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Keith F. Hartstein (59) Board Member Portfolios Overseen: 66	Retired; Member (since November 2014) of the Governing Council of the Independent Directors Council (organization of independent mutual fund directors); formerly President and Chief Executive Officer (2005-2012), Senior Vice President (2004-2005), Senior Vice President of Sales and Marketing (1997-2004), and various executive management positions (1990-1997), John Hancock Funds, LLC (asset management); Chairman, Investment Company Institute’s Sales Force Marketing Committee (2003-2008).	None.
Michael S. Hyland, CFA (70) Board Member Portfolios Overseen: 66	Retired (since February 2005); formerly Senior Managing Director (July 2001-February 2005) of Bear Stearns & Co, Inc.; Global Partner, INVESCO (1999-2001); Managing Director and President of Salomon Brothers Asset Management (1989-1999).	None.
Richard A. Redeker (72) Board Member & Independent Chair Portfolios Overseen: 66	Retired Mutual Fund Senior Executive (47 years); Management Consultant; Director, Mutual Fund Directors Forum (since 2014); Independent Directors Council (organization of independent mutual fund directors)-Executive Committee, Chair of Policy Steering Committee, Governing Council.	None.
Stephen G. Stoneburn (72) Board Member Portfolios Overseen: 66	Chairman (since July 2011), President and Chief Executive Officer (since June 1996) of Quadrant Media Corp. (publishing company); formerly President (June 1995-June 1996) of Argus Integrated Media, Inc.; Senior Vice President and Managing Director (January 1993-1995) of Cowles Business Media; Senior Vice President of Fairchild Publications, Inc. (1975-1989).	None.

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Interested Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Stuart S. Parker (53) Board Member & President Portfolios Overseen: 66	President of Prudential Investments LLC (since January 2012); Executive Vice President of Prudential Investment Management Services LLC (since December 2012); Executive Vice President of Jennison Associates LLC and Head of Retail Distribution of Prudential Investments LLC (June 2005-December 2011).	None.
Scott E. Benjamin (42) Board Member & Vice President Portfolios Overseen: 66	Executive Vice President (since June 2009) of Prudential Investments LLC; Executive Vice President (June 2009-June 2012) and Vice President (since June 2012) of Prudential Investment Management Services LLC; Executive Vice President (since September 2009) of AST Investment Services, Inc.; Senior Vice President of Product Development and Marketing, Prudential Investments (since February 2006); Vice President of Product Development and Product Management, Prudential Investments (2003-2006).	None.
Grace C. Torres* (56) Board Member Portfolios Overseen: 64	Retired; formerly Treasurer and Principal Financial and Accounting Officer of the Prudential Investments Funds, Target Funds, Advanced Series Trust, Prudential Variable Contract Accounts and The Prudential Series Fund (1998-June 2014); Assistant Treasurer (March 1999-June 2014) and Senior Vice President (September 1999-June 2014) of Prudential Investments LLC; Assistant Treasurer (May 2003-June 2014) and Vice President (June 2005-June 2014) of AST Investment Services, Inc.; Senior Vice President and Assistant Treasurer (May 2003-June 2014) of Prudential Annuities Advisory Services, Inc.	Director (since July 2015) of Sun Bancorp, Inc. N.A.

* Note: Prior to her retirement in 2014, Ms. Torres was employed by Prudential Investments LLC. Due to her prior employment, she is considered to be an “interested person” under the 1940 Act. Ms. Torres is a non-management Interested Board Member.

⁽¹⁾  The year that each individual joined the Fund’s Board is as follows:

Ellen S. Alberding, 2013; Kevin J. Bannon, 2008; Linda W. Bynoe, 2005; Keith F. Hartstein, 2013; Michael S. Hyland, 2008; Richard A. Redeker, 1993; Stephen G. Stoneburn, 2003; Grace C. Torres, 2014; Stuart S. Parker, Board Member and President since 2012; Scott E. Benjamin, Board Member since 2010 and Vice President since 2009.

Prudential Jennison Value Fund

Fund Officers(a)
Name, Address and Age Position with Fund	Principal Occupation(s) During Past Five Years	Length of Service as Fund Officer
Raymond A. O’Hara (60) Chief Legal Officer	Vice President and Corporate Counsel (since July 2010) of Prudential Insurance Company of America (Prudential); Vice President (March 2011-Present) of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey; Vice President and Corporate Counsel (March 2011-Present) of Prudential Annuities Life Assurance Corporation; Chief Legal Officer of Prudential Investments LLC (since June 2012); Chief Legal Officer of Prudential Mutual Fund Services LLC (since June 2012) and Corporate Counsel of AST Investment Services, Inc. (since June 2012); formerly Assistant Vice President and Corporate Counsel (September 2008-July 2010) of The Hartford Financial Services Group, Inc.; formerly Associate (September 1980-December 1987) and Partner (January 1988–August 2008) of Blazzard & Hasenauer, P.C. (formerly, Blazzard, Grodd & Hasenauer, P.C.).	Since 2012
Chad A. Earnst (40) Chief Compliance Officer	Chief Compliance Officer (September 2014-Present) of Prudential Investments LLC; Chief Compliance Officer (September 2014-Present) of the Prudential Investments Funds, Target Funds, Advanced Series Trust, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc., Prudential Global Short Duration High Yield Income Fund, Inc., Prudential Short Duration High Yield Fund, Inc. and Prudential Jennison MLP Income Fund, Inc.; formerly Assistant Director (March 2010-August 2014) of the Asset Management Unit, Division of Enforcement, US Securities & Exchange Commission; Assistant Regional Director (January 2010-August 2014), Branch Chief (June 2006–December 2009) and Senior Counsel (April 2003-May 2006) of the Miami Regional Office, Division of Enforcement, US Securities & Exchange Commission.	Since 2014
Deborah A. Docs (57) Secretary	Vice President and Corporate Counsel (since January 2001) of Prudential; Vice President (since December 1996) and Assistant Secretary (since March 1999) of Prudential Investments LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc.	Since 2004
Jonathan D. Shain (57) Assistant Secretary	Vice President and Corporate Counsel (since August 1998) of Prudential; Vice President and Assistant Secretary (since May 2001) of Prudential Investments LLC; Vice President and Assistant Secretary (since February 2001) of Prudential Mutual Fund Services LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc.	Since 2005

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Fund Officers(a)
Name, Address and Age Position with Fund	Principal Occupation(s) During Past Five Years	Length of Service as Fund Officer
Claudia DiGiacomo (41) Assistant Secretary	Vice President and Corporate Counsel (since January 2005) of Prudential; Vice President and Assistant Secretary of Prudential Investments LLC (since December 2005); Associate at Sidley Austin Brown & Wood LLP (1999-2004).	Since 2005
Andrew R. French (52) Assistant Secretary	Vice President and Corporate Counsel (since February 2010) of Prudential; formerly Director and Corporate Counsel (2006-2010) of Prudential; Vice President and Assistant Secretary (since January 2007) of Prudential Investments LLC; Vice President and Assistant Secretary (since January 2007) of Prudential Mutual Fund Services LLC.	Since 2006
Amanda S. Ryan (37) Assistant Secretary	Director and Corporate Counsel (since March 2012) of Prudential; Director and Assistant Secretary (since June 2012) of Prudential Investments LLC; Associate at Ropes & Gray LLP (2008-2012).	Since 2012
Theresa C. Thompson (53) Deputy Chief Compliance Officer	Vice President, Compliance, Prudential Investments LLC (since April 2004); and Director, Compliance, Prudential Investments LLC (2001-2004).	Since 2008
Richard W. Kinville (47) Anti-Money Laundering Compliance Officer	Vice President, Corporate Compliance, Anti-Money Laundering Unit (since January 2005) of Prudential; committee member of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (since January 2007); formerly Investigator and Supervisor in the Special Investigations Unit for the New York Central Mutual Fire Insurance Company (August 1994-January 1999); Investigator in AXA Financial’s Internal Audit Department and Manager in AXA’s Anti-Money Laundering Office (January 1999-January 2005); first chair of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (June 2007-December 2009).	Since 2011
M. Sadiq Peshimam (51) Treasurer and Principal Financial and Accounting Officer	Vice President (since 2005) of Prudential Investments LLC; formerly Assistant Treasurer of funds in the Prudential Mutual Fund Complex (2006-2014).	Since 2006
Peter Parrella (57) Assistant Treasurer	Vice President (since 2007) and Director (2004-2007) within Prudential Mutual Fund Administration; formerly Tax Manager at SSB Citi Fund Management LLC (1997-2004).	Since 2007
Lana Lomuti (48) Assistant Treasurer	Vice President (since 2007) and Director (2005-2007), within Prudential Mutual Fund Administration; formerly Assistant Treasurer (December 2007-February 2014) of The Greater China Fund, Inc.	Since 2014
Linda McMullin (54) Assistant Treasurer	Vice President (since 2011) and Director (2008-2011) within Prudential Mutual Fund Administration.	Since 2014
Kelly A. Coyne (47) Assistant Treasurer	Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010).	Since 2015

Prudential Jennison Value Fund

^(a)  Excludes Mr. Parker and Mr. Benjamin, interested Board Members who also serve as President and Vice President, respectively.

Explanatory Notes to Tables:

• Board Members are deemed to be “Interested,” as defined in the 1940 Act, by reason of their affiliation with Prudential Investments LLC and/or an affiliate of Prudential Investments LLC.

• Unless otherwise noted, the address of all Board Members and Officers is c/o Prudential Investments LLC, 655 Broad Street, Newark, New Jersey 07102-4410.

• There is no set term of office for Board Members or Officers. The Board Members have adopted a retirement policy, which calls for the retirement of Board Members on December 31 of the year in which they reach the age of 75.

• “Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the 1934 Act (that is, “public companies”) or other investment companies registered under the 1940 Act.

• “Portfolios Overseen” includes all investment companies managed by Prudential Investments LLC. The investment companies for which Prudential Investments LLC serves as manager include the Prudential Investments Mutual Funds, The Prudential Variable Contract Accounts, Target Mutual Funds, Prudential Short Duration High Yield Fund, Inc., Prudential Global Short Duration High Yield Fund, Inc., The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc. and the Advanced Series Trust.

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Approval of Advisory Agreements

The Fund’s Board of Trustees

The Board of Trustees (the “Board”) of Prudential Jennison Value Fund (the “Fund”)¹ consists of ten individuals, seven of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Trustees have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Trustee. The Board has established three standing committees: the Audit Committee, the Nominating and Governance Committee, and the Investment Committee. Each committee is chaired by, and composed of, Independent Trustees.

Annual Approval of the Fund’s Advisory Agreements

As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with Prudential Investments LLC (“PI”) and the Fund’s subadvisory agreement with Jennison Associates LLC (“Jennison”). In considering the renewal of the agreements, the Board, including all of the Independent Trustees, met on June 9-11, 2015 and approved the renewal of the agreements through July 31, 2016, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.

In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PI and Jennison. Also, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups, as is further discussed below.

In approving the agreements, 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 provided by PI and the subadviser, the performance of the Fund, the profitability of PI and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund. In connection with its deliberations, the Board considered information provided by PI throughout the year at regular Board

¹  Prudential Jennison Value Fund is the sole series of Prudential Investment Portfolios 7.

Prudential Jennison Value Fund

Approval of Advisory Agreements (continued)

meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 9-11, 2015.

The Trustees determined that the overall arrangements between the Fund and PI, which serves as the Fund’s investment manager pursuant to a management agreement, and between PI and Jennison, which serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PI, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged 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 continuance of the agreements are separately discussed below.

Nature, Quality and Extent of Services

The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PI and Jennison. The Board considered the services provided by PI, including but not limited to the oversight of the subadviser for the Fund, as well as the provision of fund recordkeeping, compliance, and other services to the Fund. With respect to PI’s oversight of the subadviser, the Board noted that PI’s Strategic Investment Research Group (“SIRG”), which is a business unit of PI, is responsible for monitoring and reporting to PI’s senior management on the performance and operations of the subadviser. The Board also considered that PI pays the salaries of all of the officers and interested Trustees of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by Jennison, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PI’s evaluation of the subadviser as well as PI’s recommendation, based on its review of the subadviser, to renew the subadvisory agreement.

The Board considered the qualifications, backgrounds and responsibilities of PI’s senior management responsible for the oversight of the Fund and Jennison, and also considered the qualifications, backgrounds and responsibilities of Jennison’s portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PI’s and Jennison’s organizational structure, senior management, investment operations, and other relevant information pertaining to both PI and Jennison. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to both PI and Jennison. The Board noted that Jennison is affiliated with PI.

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The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PI and the subadvisory services provided to the Fund by Jennison, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PI and Jennison under the management and subadvisory agreements.

Costs of Services and Profits Realized by PI

The Board was provided with information on the profitability of PI and its affiliates in serving as the Fund’s investment manager. The Board discussed with PI the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. The Board further noted that the subadviser is affiliated with PI and that its profitability is reflected in PI’s profitability report. Taking these factors into account, the Board concluded that the profitability of PI and its affiliates in relation to the services rendered was not unreasonable.

Economies of Scale

PI and the Board previously retained an outside business consulting firm to review management fee breakpoint usage and trends in management fees across the mutual fund industry. The consulting firm presented its analysis and conclusions as to the Funds’ management fee structures to the Board and PI. The Board and PI have discussed these conclusions extensively since that presentation.

The Board received and discussed information concerning economies of scale that PI may realize as the Fund’s assets grow beyond current levels. The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase, and that at its current level of assets the Fund’s effective fee rate reflected those rate reductions. The Board took note that the Fund’s fee structure currently results in benefits to Fund shareholders whether or not PI realizes any economies of scale. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PI’s assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.

Prudential Jennison Value Fund

Approval of Advisory Agreements (continued)

The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PI’s costs are not specific to individual funds, but rather are incurred across a variety of products and services.

Other Benefits to PI and Jennison

The Board considered potential ancillary benefits that might be received by PI and Jennison and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PI included fees received by affiliates of PI for serving as the Fund’s securities lending agent, transfer agency fees received by the Fund’s transfer agent (which is affiliated with PI), as well as benefits to its reputation or other intangible benefits resulting from PI’s association with the Fund. The Board concluded that the potential benefits to be derived by Jennison included its ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to its reputation. The Board concluded that the benefits derived by PI and Jennison were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.

Performance of the Fund / Fees and Expenses

The Board considered certain additional specific factors and made related conclusions relating to the historical performance of the Fund for the one-, three-, five- and ten-year periods ended December 31, 2014.

The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended August 31, 2014. The Board considered the management fee for the Fund as compared to the management fee charged by PI to other funds and the fee charged by other advisers to comparable mutual funds in a Peer Group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.

The mutual funds included in the Peer Universe (the Lipper Large-Cap Value Funds Performance Universe)² and the Peer Group were objectively determined by

²  The Fund was compared to the Lipper Large-Cap Value Funds Performance Universe, although Lipper classifies the Fund in the Multi-Cap Core Funds Performance Universe. The Fund was compared to the Lipper Large-Cap Value Funds Performance Universe because PI believes that the funds included in this Universe provide a more appropriate basis for Fund performance comparisons.

Editorial Note: Effective April 2015, the Fund is classified by Lipper in its Large-Cap Value Funds Performance Universe.

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Lipper Inc. (“Lipper”), an independent provider of mutual fund data. To the extent that PI deemed appropriate, and for reasons addressed in detail with the Board, PI may have provided supplemental data compiled by Lipper for the Board’s consideration. The comparisons placed the Fund in various quartiles, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).

The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth gross performance comparisons (which do not reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the Peer Universe, actual management fees with the Peer Group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the Peer Group, each of which were key factors considered by the Board.

Performance	1 Year	3 Years	5 Years	10 Years
	4th Quartile	3rd Quartile	4th Quartile	1st Quartile
Actual Management Fees: 2nd Quartile
Net Total Expenses: 1st Quartile

• The Board noted that the Fund outperformed its benchmark index over the ten-year period, although it underperformed its benchmark index over the other periods.

• The Board noted that the Fund’s portfolio managers had been replaced in 2014, resulting in changes in the securities selection process for the Fund, and that the Fund’s portfolio holdings had not been fully repositioned under the new portfolio manager until the end of 2014.

• The Board considered that it would be prudent to allow the new portfolio management team time to develop a performance record with the Fund.

• The Board concluded that in light of the above, it would be in the best interests of the Fund and its shareholders to continue to monitor the Fund’s performance and to renew the agreements.

• The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided.

*    *    *

After full consideration of these factors, the Board concluded that the approval of the agreements was in the best interests of the Fund and its shareholders.

Prudential Jennison Value Fund

n    MAIL	n    TELEPHONE	n    WEBSITE
655 Broad Street Newark, NJ 07102	(800) 225-1852	www.prudentialfunds.com

PROXY VOTING

The Board of Trustees of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.

TRUSTEES

Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • 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	655 Broad Street Newark, NJ 07102
INVESTMENT SUBADVISER	Jennison Associates LLC	466 Lexington Avenue New York, NY 10017
DISTRIBUTOR	Prudential Investment Management Services LLC	655 Broad Street Newark, NJ 07102
CUSTODIAN	The Bank of New York Mellon	One Wall Street New York, NY 10286
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 9658 Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154
FUND COUNSEL	Willkie Farr & Gallagher LLP	787 Seventh Avenue New York, NY 10019

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.

E-DELIVERY

To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.

SHAREHOLDER COMMUNICATIONS WITH TRUSTEES

Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Prudential Jennison Value Fund, Prudential Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee.

AVAILABILITY OF PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and is available without charge, upon request, by calling (800) 225-1852.

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 JENNISON VALUE FUND

SHARE CLASS	A	B	C	Q	R	Z
NASDAQ	PBEAX	PBQIX	PEICX	PJVQX	JDVRX	PEIZX
CUSIP	74440N102	74440N201	74440N300	74440N888	74440N607	74440N805

MF131E    0283755-00001-00

Item 2 – Code of Ethics — See Exhibit (a)

As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer.

The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 800-225-1852, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

Item 3 – Audit Committee Financial Expert –

The registrant’s Board has determined that Mr. Kevin J. Bannon, member of the Board’s Audit Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.

Item 4 – Principal Accountant Fees and Services –

(a) Audit Fees

For the fiscal years ended August 31, 2015 and August 31, 2014, KPMG LLP (“KPMG”), the Registrant’s principal accountant, billed the Registrant $22,440 and $22,440, respectively, for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.

(b) Audit-Related Fees

For the fiscal years ended August 31, 2015 and August 31, 2014: none.

(c) Tax Fees

For the fiscal years ended August 31, 2015 and August 31, 2014: none.

(d) All Other Fees

For the fiscal years ended August 31, 2015 and August 31, 2014: none.

(e) (1) Audit Committee Pre-Approval Policies and Procedures

THE PRUDENTIAL MUTUAL FUNDS

AUDIT COMMITTEE POLICY

on

Pre-Approval of Services Provided by the Independent Accountants

The Audit Committee of each Prudential Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve any independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:

• a review of the nature of the professional services expected to be provided,

• a review of the safeguards put into place by the accounting firm to safeguard independence, and

• periodic meetings with the accounting firm.

Policy for Audit and Non-Audit Services Provided to the Funds

On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services. Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants. Proposed services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.

The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve. The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services, which the Committee (or the Committee Chair) would consider for pre-approval.

Audit Services

The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants:

• Annual Fund financial statement audits

• Seed audits (related to new product filings, as required)

• SEC and regulatory filings and consents

Audit-related Services

The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:

• Accounting consultations

• Fund merger support services

• Agreed Upon Procedure Reports

• Attestation Reports

• Other Internal Control Reports

Individual audit-related services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000.

Tax Services

The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:

• Tax compliance services related to the filing or amendment of the following:

• Federal, state and local income tax compliance; and,

• Sales and use tax compliance

• Timely RIC qualification reviews

• Tax distribution analysis and planning

• Tax authority examination services

• Tax appeals support services

• Accounting methods studies

• Fund merger support services

• Tax consulting services and related projects

Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000.

Other Non-audit Services

Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Proscribed Services

The Fund’s independent accountants will not render services in the following categories of non-audit services:

• Bookkeeping or other services related to the accounting records or financial statements of the Fund

• Financial information systems design and implementation

• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

• Actuarial services

• Internal audit outsourcing services

• Management functions or human resources

• Broker or dealer, investment adviser, or investment banking services

• Legal services and expert services unrelated to the audit

• Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval of Non-Audit Services Provided to Other Entities Within the Prudential Fund Complex

Certain non-audit services provided to Prudential Investments LLC or any of its affiliates that also provide ongoing services to the Prudential Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Although the Audit Committee will not pre-approve all services provided to Prudential Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to Prudential Investments and its affiliates.

(e) (2) Percentage of services referred to in 4(b) – 4(d) that were approved by the audit committee –

For the fiscal years ended August 31, 2015 and August 31, 2014: none.

(f) Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%.

The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.

(g) Non-Audit Fees

The aggregate non-audit fees billed by KPMG for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for the fiscal years ended August 31, 2015 and August 31, 2014 was $0 and $0, respectively.

(h) Principal Accountant’s Independence

Not applicable as KPMG has not provided non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.

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 – Attached hereto as Exhibit EX-99.CODE-ETH

(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.

(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:	Prudential Investment Portfolios 7
By:	/s/ Deborah A. Docs
	Deborah A. Docs
	Secretary
Date:	October 30, 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:	October 30, 2015
By:	/s/ M. Sadiq Peshimam
	M. Sadiq Peshimam
	Treasurer and Principal Financial Officer
Date:	October 30, 2015