Prudential Investment Portfolios 4 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:	811-04930
Exact name of registrant as specified in charter:	Prudential Investment Portfolios 4
Address of principal executive offices:	Gateway Center 3,
	100 Mulberry Street,
	Newark, New Jersey 07102
Name and address of agent for service:	Deborah A. Docs
	Gateway Center 3,
	100 Mulberry Street,
	Newark, New Jersey 07102
Registrant’s telephone number, including area code:	800-225-1852
Date of fiscal year end:	4/30/2015
Date of reporting period:	4/30/2015

Item 1 – Reports to Stockholders

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

PRUDENTIAL MUNI HIGH INCOME FUND

ANNUAL REPORT ^· APRIL 30, 2015

Objective

Maximum amount of income that is eligible for exclusion from federal income taxes

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). Prudential Fixed Income is a unit of Prudential Investment Management, Inc. (PIM), a registered investment adviser. PIMS and PIM are Prudential Financial companies. ^© 2015 Prudential Financial, Inc. and its related entities. Prudential Investments LLC, Prudential, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

June 15, 2015

Dear Shareholder:

We hope you find the annual report for the Prudential Muni High Income Fund informative and useful. The report covers performance for the 12-month period that ended April 30, 2015.

Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.

Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.

Prudential Investments^® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.

Thank you for choosing the Prudential Investments family of funds.

Sincerely,

Stuart S. Parker, President

Prudential Muni High Income Fund

Prudential Muni High Income 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 4/30/15
	One Year			Five Years			Ten Years
Class A		8.19	%		35.92	%		62.82	%
Class B		7.92			34.29			58.91
Class C		7.39			31.09			53.33
Class Z		8.48			37.55			67.12
Barclays Municipal Bond Index		4.80			26.09			57.20
Barclays Municipal High Yield Bond Index		7.02			42.55			65.01
Barclays Municipal Bond Index (50%) / Barclays Municipal High Yield Bond Index (50%)		5.92			34.16			61.82
Lipper High Yield Municipal Debt Funds Average		8.14			35.48			49.14
Average Annual Total Returns (With Sales Charges) as of 3/31/15
	One Year			Five Years			Ten Years
Class A		6.01	%		5.81	%		4.76	%
Class B		5.14			6.28			4.94
Class C		8.50			5.91			4.56
Class Z		10.71			6.95			5.46
Barclays Municipal Bond Index		6.62			5.11			4.85
Barclays Municipal High Yield Bond Index		8.69			7.77			5.39
Barclays Municipal Bond Index (50%) / Barclays Municipal High Yield Bond Index (50%)		7.66			6.45			5.17
Lipper High Yield Municipal Debt Funds Average		10.22			6.66			4.22
Average Annual Total Returns (With Sales Charges) as of 4/30/15
	One Year			Five Years			Ten Years
Class A		3.87	%		5.47	%		4.57	%
Class B		2.92			5.92			4.74
Class C		6.39			5.56			4.37
Class Z		8.48			6.58			5.27

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Average Annual Total Returns (Without Sales Charges) as of 4/30/15
	One Year			Five Years			Ten Years
Class A		8.19	%		6.33	%		5.00	%
Class B		7.92			6.07			4.74
Class C		7.39			5.56			4.37
Class Z		8.48			6.58			5.27

Growth of a $10,000 Investment

The graph compares a $10,000 investment in the Prudential Muni High Income Fund (Class A shares) with a similar investment in the Barclays Municipal Bond Index by portraying the initial account values at the beginning of the 10-year period for Class A shares (April 30, 2005) and the account values at the end of the current fiscal year (April 30, 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 (c) all dividends and distributions were reinvested. The line graph provides information for Class A shares only. As indicated in the tables provided earlier and in the following paragraphs, performance for Class B, Class C, and Class Z shares will vary due to the differing charges and expenses applicable to each share class. Without waiver of fees and/or expense reimbursements, 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 graph 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.

Prudential Muni High Income Fund 3

Your Fund’s Performance (continued)

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 Z
Maximum initial sales charge	4.00% of the public offering price	None	None	None
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption)	1% on sales of $1 million or more made within 12 months of purchase	5% (Yr. 1) 4% (Yr. 2) 3% (Yr. 3) 2% (Yr. 4) 1% (Yr. 5/6) 0% (Yr.  7)	1% on sales made within 12 months of purchase	None
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets)	.25%	.50%	1%	None

*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.

Benchmark Definitions

Barclays Municipal Bond Index

The Barclays Municipal Bond Index is an unmanaged index of long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed.

Barclays Municipal High Yield Bond Index

The Barclays Municipal High Yield Bond Index is an unmanaged index of non-rated or Ba1 or below-rated municipal bonds. It gives a broad look at how non-investment-grade municipal bonds have performed.

Barclays Municipal Bond Index (50%) / Barclays Municipal High Yield Bond Index (50%)

This is a custom blend of the Barclays Municipal Bond Index (50%), which is an unmanaged index of long-term investment-grade municipal bonds, and the Barclays Municipal High Yield Bond Index (50%), which is an unmanaged index of Ba1 or lower or not-rated bonds by Moody’s, S&P, and/or Fitch.

Lipper High Yield Municipal Debt Funds Average

The Lipper High Yield Municipal Debt Funds Average (Lipper Average) is based on the average return of all funds in the Lipper High Yield Municipal Debt Funds category for the periods noted. Funds in the Lipper Average invest at least 50% of their assets in lower-rated municipal debt issues.

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.

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Distribution and Yields as of 4/30/15
	Total Distributions Paid for 12 Months		30-Day SEC Yield			Taxable Equivalent 30-Day Yield* at Federal Tax Rates of						30-Day Unsubsidized SEC Yield			Taxable Equivalent 30-Day Unsubsidized Yield* at Federal Tax Rates  of
						38.8%			43.4%						38.8%			43.4%
Class A	$	0.45		2.70	%		4.41	%		4.77	%		2.70	%		4.41	%		4.77	%
Class B		0.43		2.56			4.18			4.52			2.56			4.18			4.52
Class C		0.37		2.06			3.37			3.64			2.06			3.37			3.64
Class Z		0.48		3.07			5.02			5.42			3.07			5.02			5.42

*Some Investors may be subject to the federal alternative minimum tax (AMT) and/or state and local taxes. Taxable equivalent yields reflect federal taxes only.

Five Largest Holdings expressed as a percentage of net assets as of 4/30/15
Valdez (AK) Marine Term. Rev., Exxon Pipeline Proj, Rfdg., FRDD (Mandatory put date 5/6/15) 0.070%, 10/01/25	1.3	%
Golden St. (CA) Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd. Sr., Ser. A-1, 4.500%, 06/01/27	1.1
Tob. Settlement (NJ) Fing. Corp., NJ Rev., Ser. 1A, Rfdg., 4.625%, 06/01/26	1.1
Tob. Settlement (NJ) Fing. Corp., NJ Rev., Ser. 1A, Rfdg., 4.500%, 06/01/23	0.9
Pub. Auth. (CO) Energy Nat. Gas Pur. Rev., 6.500%, 11/15/38	0.9

Holdings are subject to change.

Credit Quality expressed as a percentage of total investments as of 4/30/15
AAA	4.56	%
AA	6.40
A	22.15
BBB	26.20
BB	11.23
B	13.20
CCC	0.79
C	0.04
Not Rated	14.79
Cash/Cash Equivalents	0.64
Total Investments	100.00	%

Source: PIM

Credit ratings reflect the highest rating assigned by Moody’s Investor Service, Inc. (Moody’s), Standard & Poor’s (S&P) or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, Moody’s ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. The Not Rated category consists of securities that have not been rated by Moody’s, S&P or Fitch. Credit ratings are subject to change.

Prudential Muni High Income Fund 5

Strategy and Performance Overview

How did the Fund perform?

The Prudential Muni High Income Fund’s Class A shares returned 8.19% for the 12-month period that ended April 30, 2015, outperforming the 4.80% return of the Barclays Municipal Bond Index (Index), which consists entirely of investment-grade municipal bonds, and the 7.02% return of the Barclays Municipal High Yield Bond Index, which tracks bonds that are not rated or are below investment grade. The Fund outperformed the 5.92% return of the Barclays Municipal Bond Index (50%) / Barclays Municipal High Yield Bond Index (50%).* The Fund also outperformed the 8.14% return of the Lipper High Yield Municipal Debt Funds Average.

What were conditions like in the municipal bond market?

• Municipal securities exhibited solid performance during the reporting period. Mutual fund flows were steadily positive throughout the reporting period while supply remained manageable. When a fund receives large flows of cash, it can be negatively affected by a higher than normal cash balances. If the market is performing well, the fund could miss out on the strong overall market performance due to the time it takes to find and settle suitable investments.

• Interest rates predominantly declined over the period as Federal Reserve policy remained accommodative in the face of soft employment data, muted inflation expectations, and multiple geo-political concerns. During the latter part of the period, the market began to price-in eventual interest rate hikes.

• Despite favorable technical attributes, municipal bonds underperformed US Treasuries, as the municipal market was unable to keep pace with a strong Treasury rally.

• The low absolute level of interest rates which has persisted for several years caused an exhaustion of much of the would-be refunding supply early on in the period. However, a further decline in interest rates later in the period drove a resurgence in refunding volume. In a refunding deal, an issuer reduces its interest expense by redeeming outstanding bonds and issuing new bonds at a lower interest rate.

• Investors continued to react to the headlines coming from Puerto Rico, which has endured multiple credit rating agency downgrades for debt associated with the Commonwealth and its public corporations. The municipal market continued to treat these issues as non-systemic, and was able to rally despite their headline prevalence.

• In general, state and local governments continued to generate higher revenues through increased tax receipts, which provided for timely balanced budgets. Unfunded retiree obligations remain a broader long-term issue, with the states

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of Illinois and New Jersey, and the city of Chicago, at the forefront of this concern.

What factors contributed positively to the Fund’s performance?

• The Fund’s overweight in the long end of the municipal yield curve added to performance as spreads (the difference in yields) between long-term municipal bonds and shorter-term maturities compressed.

• The Fund benefited from its overweight relative to the Index in tobacco settlement bonds, as this was among the top performing sectors. Tobacco bonds are backed by payments from tobacco companies participating in the Master Settlement Agreement.

• An overweight versus the Index in corporate-backed credits, including airlines, had a positive impact as the sector outperformed.

• An overweight versus the Index in health care bonds contributed to performance, as credit spreads narrowed.

• The Fund’s underweight versus the Index in general obligation (GO) bonds contributed positively to performance, as revenue bonds outperformed GOs.

• An underweight versus the Index in Puerto Rico credits had a positive impact as spreads widened significantly and the bonds underperformed the broad market. The Fund had a 2.4% exposure to these bonds.

What factors contributed negatively to performance?

• The Fund held futures contracts on US Treasuries, a form of derivatives, to shorten the portfolio’s duration, which reduced its sensitivity to changes in the level of interest rates. Overall, this strategy had a negative impact on performance as interest rates declined during the reporting period. This position was unwound by the end of the period. The Fund currently has no exposure to US Treasury futures contracts.

*The Barclays Municipal Bond Index (50%) / Barclays Municipal High Yield Bond Index (50%) is used for the purposes of discussing the Fund’s relative performance with respect to sector weightings, credit ratings, and security selection.

Prudential Muni High Income Fund 7

Fees and Expenses (Unaudited)

As a shareholder of a 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 each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on November 1, 2014, at the beginning of the period, and held through the six-month period ended April 30, 2015. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

Actual Expenses

The first line for each share class in the tables on the following pages 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 tables on the following pages 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

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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 tables 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 Muni High Income Fund		Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period*
Class A	Actual	$	1,000.00	$	1,026.10		0.87	%	$	4.37
	Hypothetical	$	1,000.00	$	1,020.48		0.87	%	$	4.36
Class B	Actual	$	1,000.00	$	1,024.90		1.12	%	$	5.62
	Hypothetical	$	1,000.00	$	1,019.24		1.12	%	$	5.61
Class C	Actual	$	1,000.00	$	1,023.40		1.62	%	$	8.13
	Hypothetical	$	1,000.00	$	1,016.76		1.62	%	$	8.10
Class Z	Actual	$	1,000.00	$	1,027.40		0.62	%	$	3.12
	Hypothetical	$	1,000.00	$	1,021.72		0.62	%	$	3.11

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2015, and divided by the 365 days in the Fund’s fiscal year ending April 30, 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.

Prudential Muni High Income Fund 9

Fees and Expenses (continued)

The Fund’s annualized expense ratios for the 12-month period ended April 30, 2015, are as follows:

Class	Gross Operating Expenses			Net Operating Expenses
A		0.91	%		0.87	%
B		1.12			1.12
C		1.62			1.62
Z		0.62			0.62

Net operating expenses shown above reflect any fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.

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Portfolio of Investments

as of April 30, 2015

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS    97.4%
Alabama    0.6%
Jefferson Cnty. Sewer Rev., Sr. Lien, Warrants, Ser. A, AGM	5.000%		10/01/44		500	$	543,135
Jefferson Cnty. Sewer Rev., Sr. Lien, Warrants, Ser. A, AGM	5.250		10/01/48		500		549,940
Selma Indl. Dev. Brd. Rev., Gulf Opp. Zone, Intl. Paper Co., Ser. A	5.800		05/01/34		1,000		1,152,250
Selma Indl. Dev. Brd. Rev., Gulf Opp. Zone, Intl. Paper Co., Ser. A	6.250		11/01/33		1,750		2,069,568
							4,314,893
Arizona    3.2%
Maricopa Cnty. Poll. Ctrl. Corp. Rev., El Paso Elec. Co., Ser. B	7.250		04/01/40		1,500		1,748,685
Phoenix City Indl. Dev. Auth. Rev., Basis Sch., Rfdg.	5.000		07/01/45		1,000		1,003,100
Phoenix City Indl. Dev. Auth. Rev., Great Hearts Academies Proj.	5.000		07/01/44		2,250		2,321,662
Pima Cnty. Indl. Dev. Auth. Rev., Tucson Elec. Pwr. Co.	4.000		09/01/29		3,000		3,120,720
Pinal Cnty. Indl. Dev. Auth., Correct. Facs. Rev., Florence West Prison Proj., Ser. A, ACA	5.250		10/01/19		3,135		3,241,308
Salt Verde Fin. Corp. Gas Rev., Sr. Bonds	5.000		12/01/32		4,125		4,681,504
Salt Verde Fin. Corp. Gas Rev., Sr. Bonds	5.000		12/01/37		5,585		6,338,361
Tempe AZ Indl. Dev. Auth. Rev., Friendship Vlg., Ser. A, Rfdg.	6.250		12/01/42		1,000		1,087,470
							23,542,810
California    9.9%
ABAG Fin. Auth. for Nonprofit Corp. Rev., Episcopal Senior Cmnty., Rfdg.	6.125		07/01/41		775		883,275
California Cnty. Tob. Secur. Agcy., Rev., Conv., CABS (Converted to Fixed on 12/01/10)	5.250		06/01/21		3,080		3,104,548
California Cnty. Tob. Secur. Corp., Agcy. Rev., Conv., CABS, Ser. B (Converted to Fixed on 12/01/08)	5.100		06/01/28		1,750		1,714,107
California Hlth. Facs. Fin. Auth. Rev., St. Joseph Hlth. Sys., Ser. A	5.750		07/01/39		1,770		2,044,952
California Hlth. Facs. Fin. Auth. Rev., Stanford Hosp., Ser. A-3, Rfdg.	5.500		11/15/40		750		890,970

See Notes to Financial Statements.

Prudential Muni High Income Fund 11

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
California (cont’d.)
California Poll. Ctrl. Fin. Auth. Rev., Wtr. Facs., Amer. Wtr. Cap. Corp. Proj., 144A	5.250%		08/01/40		500	$	532,975
California St., Var. Purp., GO	5.500		11/01/39		1,000		1,165,470
California St., Var. Purp., GO	6.000		04/01/38		3,500		4,095,840
California St., Var. Purp., GO	6.000		11/01/39		1,500		1,792,110
California St. Mun. Fin. Auth. Chrt. Sch. Rev., Partnerships Uplift Cmnty. Proj., Ser. A	5.250		08/01/42		1,380		1,446,820
California St. Pub. Wks. Brd. Lease Rev., Judicial Council Proj., Ser. D	5.000		12/01/31		1,000		1,133,390
California St. Pub. Wks. Brd. Lease Rev., Various Cap. Proj., Ser. G-1	5.750		10/01/30		750		887,385
California St. Pub. Wks. Brd. Lease Rev., Various Cap. Proj., Ser. I-1	6.375		11/01/34		750		912,330
California St. Sch. Fin. Auth. Chrt. Sch. Rev., Alliance Clg.-Ready Pub. Schs., 144A	5.000		07/01/45		750		795,375
California Statewide Cmntys. Dev. Auth. Rev., 899 Charleston Proj., Ser. A, Rfdg.	5.250		11/01/44		750		763,193
California Statewide Cmntys. Dev. Auth. Rev., Cottage Hlth. Oblig. Grp.	5.000		11/01/40		2,000		2,205,780
California Statewide Cmntys. Dev. Auth. Rev., Loma Linda Univ. Med. Ctr.	5.250		12/01/44		1,000		1,087,880
California Statewide Cmntys. Dev. Auth. Rev., Sch. Fac., Aspire Pub. Sch.	6.000		07/01/30		995		1,068,550
California Statewide Cmntys. Dev. Auth. Rev., Sr. Living Southn. Calif. Presbyterian Homes	7.250		11/15/41		500		590,520
Fontana Spl. Tax Cmnty. Facs., Dist. 22, Sierra Hills, Rfdg.	5.000		09/01/34		500		564,365
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., Ser. A	5.000		06/01/45		1,000		1,003,480
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., Ser. A-2, CABS (Converted to Fixed on 12/01/12)	5.300		06/01/37		5,000		4,158,550
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., Sr., Ser. A-1	4.500		06/01/27		8,065		7,813,856
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., Sr., Ser. A-1	5.750		06/01/47		6,515		5,626,289
Inland Valley CA Dev. Agcy. Tax Alloc., Ser. A, Rfdg.	5.000		09/01/44		1,000		1,093,230
Lake Elsinore CA Pub. Fing. Auth., Rfdg.	5.000		09/01/40		1,000		1,081,580

See Notes to Financial Statements.

12

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
California (cont’d.)
Lincoln CA Pub. Fing., Auth. Rev., Twelve Bridges Sub., Ser. B	6.000%		09/02/27		1,000	$	1,135,680
Long Beach CA Bond Fin. Auth. Nat. Gas Pur. Rev., Ser. A	5.000		11/15/35		2,980		3,403,756
M-S-R Energy Auth. Calif., Ser. A	6.500		11/01/39		2,060		2,792,330
M-S-R Energy Auth. Calif., Ser. A	7.000		11/01/34		1,650		2,296,470
Palomar Pomerado Healthcare Dist. Calif., COP	6.000		11/01/41		1,800		1,919,484
Port of Oakland, Ser. O, AMT, Rfdg.	5.125		05/01/31		1,000		1,105,810
Riverside Cnty. CA Redev. Agcy. Tax. Alloc. Intst. 215 Corridor, Ser. E	6.500		10/01/40		2,000		2,351,220
San Buenaventura CA Rev., Cmnty. Mem. Hlth. Sys.	7.500		12/01/41		1,000		1,213,750
San Buenaventura CA Rev., Cmnty. Mem. Hlth. Sys.	8.000		12/01/26		500		659,455
San Francisco City & Cnty. Arpts. Second Ser., Ser. C, AMT, Rfdg.	5.000		05/01/25		1,000		1,135,390
Santa Margarita CA Wtr. Dist. Spl. Tax Cmty. Facs. Dist., Ser. 2013-1, Village of Sendero	5.625		09/01/36		675		769,864
South Bayside CA Wste. Mgmt. Auth., Sol. Wste. Enterprise Rev., Shoreway Environmental, Ser. A	6.000		09/01/36		500		579,495
Tob. Secur. Auth. Northern Calif. Rev., Asset Bkd. Bonds, Ser. A	4.750		06/01/23		4,120		4,110,524
							71,930,048
Colorado    2.7%
Colorado Edl. & Cultural Fac. Auth. Rev., Impt., Chrt. Sch. Univ. LA, Rfdg.	5.000		12/15/45		1,000		1,000,760
Colorado Edl. & Cultural Fac. Auth. Rev., Lighthouse Building Corp., Rfdg.	5.000		11/01/44		885		901,762
Colorado Edl. & Cultural Fac. Auth. Rev., Rfdg. & Impt., Chrt. Sch. Skyview Academy Proj.	5.375		07/01/44		1,350		1,429,015
Colorado Hlth. Facs. Auth. Rev., Christian Living Cmntys. Proj., Rfdg.	5.250		01/01/37		550		564,894
Colorado Hlth. Facs. Auth. Rev., Christian Living Cmntys. Proj., Ser. A	5.750		01/01/37		1,500		1,527,915
Colorado Hlth. Facs. Auth. Rev., Covenant Retirement Cmntys., Rfdg.	5.000		12/01/35		1,250		1,334,675

See Notes to Financial Statements.

Prudential Muni High Income Fund 13

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Colorado (cont’d.)
Colorado Hlth. Facs. Auth. Rev., Valley View Assn. Proj.	5.125%		05/15/37		1,240	$	1,313,036
Colorado Hlth. Facs. Auth. Rev., Valley View Assn. Proj.	5.250		05/15/42		2,500		2,650,350
E-470 Pub. Hwy. Auth. Rev., Ser. C, Rfdg.	5.375		09/01/26		1,000		1,123,860
Plaza Co. Met. Dist. 1 Rev., Rfdg.	5.000		12/01/40		1,000		1,043,550
Pub. Auth. Energy Nat. Gas Pur. Rev.	6.500		11/15/38		4,890		6,597,050
							19,486,867
Connecticut    0.7%
Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Western Conn. Hlth., Ser. M	5.375		07/01/41		1,250		1,393,650
Hamden Fac. Rev., Whitney Ctr. Proj., Ser. A	7.750		01/01/43		1,000		1,047,880
Harbor Point Infrastructure Impt. Dist. Spl. Oblig. Rev., Harbor Point Proj., Ser. A	7.875		04/01/39		2,000		2,403,220
							4,844,750
Delaware    0.2%
Delaware St. Hlth. Fac. Auth., Nanticoke Mem. Hosp., Ser. A	5.000		07/01/32		1,375		1,444,506
District of Columbia    1.4%
Dist. of Columbia, Rev., Friendship Pub. Chrt. Sch.	5.000		06/01/42		3,500		3,673,215
Dist. of Columbia, Rev., Gallaudet Univ.	5.500		04/01/34		400		447,184
Dist. of Columbia, Rev., Kipp Chrt. Sch.	6.000		07/01/43		850		988,652
Dist. of Columbia, Rev., Kipp Chrt. Sch.	6.000		07/01/48		725		837,723
Metropolitan Washington D.C. Arpt. Auth. Sys. Rev., Dulles Toll Rd., Ser. A, Rfdg.	5.000		10/01/53		2,500		2,635,525
Metropolitan Washington D.C. Arpt. Auth. Sys. Rev., Ser. A, AMT	5.250		10/01/27		1,500		1,653,435
							10,235,734
Florida    9.4%
Boggy Creek Impt. Dist. Rev., Spl. Assmt., Ser. 2013, Rfdg.	5.125		05/01/43		2,885		2,993,274
Broward Cnty. FL Arpt. Rev., Ser. A, AMT	5.250		10/01/43		1,500		1,655,415
Capital Tr. Agcy. Rev., Air Cargo, Aero Miami FX LLC, Sr. Lien, Ser. A, Rfdg.	5.350		07/01/29		2,300		2,534,922

See Notes to Financial Statements.

14

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Florida (cont’d.)
Citizens Ppty. Ins. Corp., Sr. Sec’d., Coastal, Ser. A-1	5.000%		06/01/19		1,250	$	1,421,338
Citizens Ppty. Ins. Corp., Sr. Sec’d., High Act, Ser. A-1	6.000		06/01/16		1,500		1,589,430
Citizens Ppty. Ins. Corp., Sr. Sec’d., Ser. A-1	5.000		06/01/22		1,000		1,184,830
Cityplace CDD Spl. Assmt. Rev., Rfdg.	5.000		05/01/26		1,000		1,130,160
Collier Cnty. Indl. Dev. Auth. Rev., Arlington of Naples Proj., Ser. A, 144A	8.125		05/15/44		2,000		2,299,220
Davie Edl. Facs. Rev., Nova Southeastern Univ. Proj., Ser. A	5.625		04/01/43		500		561,160
Davie Edl. Facs. Rev., Nova Southeastern Univ. Proj., Ser. A	6.000		04/01/42		1,000		1,151,420
Florida Dev. Fin. Corp. Edl. Facs. Rev., Bay Area Chrt. Fndtn., Ser. A	7.750		06/15/42		2,000		2,136,820
Florida Dev. Fin. Corp. Edl. Facs. Rev., Renaissance Chrt. Sch., Ser. A	6.000		09/15/40		1,750		1,824,777
Greater Orlando Aviation Auth. Orlando Arpt. Fac. Rev., Spl. Purp. - JetBlue Airways Corp. Proj., AMT	5.000		11/15/26		500		518,240
Greater Orlando Aviation Auth. Orlando Arpt. Fac. Rev., Spl. Purp. - JetBlue Airways Corp. Proj., AMT	5.000		11/15/36		4,250		4,301,807
Halifax Hosp. Med. Ctr. Rev., Rfdg.	4.000		06/01/41		2,000		1,930,760
Highlands Cmnty. Dev., Spl. Assmt.(a)	5.550		05/01/36		165		121,811
Hillsborough Cnty. Indl. Dev. Auth. Rev., Hlth. Facs., Univ. Cmnty. Hosp., Ser. B (Prerefunded 08/15/19)(b)	8.000		08/15/32		1,000		1,291,280
Hillsborough Cnty. Indl. Dev. Auth. Rev., Tampa Electric	5.650		05/15/18		1,000		1,123,210
Indigo Cmnty. Dev. Dist. Cap. Impvt. Rev.(c)	5.750		05/01/36		935		439,450
Jacksonville Econ. Dev., Gerdau Ameristeel U.S., Inc., AMT	5.300		05/01/37		3,000		3,007,200
Lakewood Ranch Stewardship Dist., Spl. Assmt.	4.875		05/01/45		1,000		975,820
Martin Cnty. Indl. Dev. Auth. Rev., Indiantown Cogeneration Proj., AMT, Rfdg.	3.950		12/15/21		1,750		1,817,830
Martin Cnty. Indl. Dev. Auth. Rev., Indiantown Cogeneration Proj., AMT, Rfdg.	4.200		12/15/25		1,000		1,018,200
Midtown Miami Cmnty. Dev. Dist., Spl. Assmt., Pkg. Garage Proj., Ser. A, Rfdg.	5.000		05/01/37		1,985		2,094,751

See Notes to Financial Statements.

Prudential Muni High Income Fund 15

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Florida (cont’d.)
North Sumter Cnty. Util. Dependent Dist., Solid Wste. Rev.	5.000%		10/01/42		2,000	$	2,114,740
North Sumter Cnty. Util. Dependent Dist., Util. Rev.	5.750		10/01/43		1,500		1,709,505
Palm Beach Hlth. Facs. Auth. Rev., BRRH Corp. Oblig. Group, Rfdg.	5.000		12/01/31		500		558,030
Palm Beach Hlth. Facs. Auth. Rev., Sinai Residences Boca Raton Proj., Ser. A	7.500		06/01/49		1,000		1,139,110
Palm Beach Hlth. Facs. Auth. Rev., Sinai Residences Boca Raton Proj., Ser. C	6.000		06/01/21		1,750		1,905,802
Sarasota Cnty. Fla. Pub. Hosp. Dist. Hosp. Rev., Sarasota Mem. Hosp. Proj., Ser. A	5.625		07/01/39		1,000		1,115,830
Seminole Tribe Rev., Spl. Oblig., Ser. A, 144A	5.500		10/01/24		1,000		1,069,010
South Lake Cnty. Hosp. Dist. Rev., South Lake Hosp.	5.250		10/01/34		1,250		1,353,913
South Lake Cnty. Hosp. Dist. Rev., South Lake Hosp., Ser. A	6.250		04/01/39		1,910		2,121,437
St. Johns Cnty. Indl. Dev. Auth. Rev., Presbyterian Retirement, Ser. A	6.000		08/01/45		1,000		1,122,000
St. Petersburg Hlth. Facs. Auth. Rev., All Children’s Hosp., Ser. A (Prerefunded 11/15/19)(b)	6.500		11/15/39		1,500		1,759,590
Village Cmnty. Dev. Dist. No. 5. Fla. Spl. Assmt. Rev., Phase I, Rfdg.	3.500		05/01/28		955		975,762
Village Cmnty. Dev. Dist. No. 7. Fla. Spl. Assmt. Rev., Rfdg.	4.000		05/01/36		2,000		1,954,380
Village Cmnty. Dev. Dist. No. 8. Fla. Spl. Assmt. Rev., Phase II, Rfdg.	6.125		05/01/39		2,275		2,665,231
Village Cmnty. Dev. Dist. No. 9. Fla. Spl. Assmt. Rev.	7.000		05/01/41		850		1,058,063
Village Cmnty. Dev. Dist. No. 9. Fla. Spl. Assmt. Rev., Rfdg.	5.500		05/01/42		2,255		2,605,607
Village Cmnty. Dev. Dist. No.10. Fla. Spl. Assmt. Rev.	5.125		05/01/43		1,160		1,297,866
Village Cmnty. Dev. Dist. No.10. Fla. Spl. Assmt. Rev.	6.000		05/01/44		1,000		1,156,860
Village Cmnty. Dev. Dist. No.11. Fla. Spl. Assmt. Rev.	4.500		05/01/45		1,500		1,519,620
							68,325,481

See Notes to Financial Statements.

16

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Georgia    1.3%
Atlanta Arpt. Rev., Gen., Ser. B, AMT, Rfdg.	5.000%		01/01/30		500	$	545,490
Burke Cnty. Dev. Auth. Poll. Ctrl. Rev., Oglethorpe Pwr. - Vogtle Proj., Ser. B	5.500		01/01/33		1,000		1,080,200
Clayton Cnty. Dev. Auth. Spl. Facs. Rev., Delta Air Lines, Ser. A	8.750		06/01/29		2,000		2,496,340
Clayton Cnty. Dev. Auth. Spl. Facs. Rev., Delta Air Lines, Ser. B, AMT	9.000		06/01/35		985		992,200
Coffee Cnty. Hosp. Auth. Rev., Coffee Regl. Med. Ctr., Inc., Rfdg.	5.000		12/01/15		400		398,504
Henry Cnty. Wtr. & Swr. Auth. Rev., AMBAC	6.150		02/01/20		1,000		1,193,180
Marietta Dev. Auth. Rev., Life Univ.	7.000		06/15/39		1,000		1,057,300
Priv. Colleges & Univs. Auth. Rev., Savannah College of Art & Design Proj.	5.000		04/01/44		1,500		1,624,425
							9,387,639
Guam    0.2%
Guam Govt., Ser. A, GO	7.000		11/15/39		1,000		1,200,570
Guam Govt. Wtrwrks. Auth. Rev., Ser. A, Rfdg.	5.000		07/01/35		500		552,585
							1,753,155
Hawaii    1.0%
Hawaii Pac. Hlth. Rev., Spl. Purp., Ser. A	5.500		07/01/40		1,000		1,119,350
Hawaii Pac. Hlth. Rev., Spl. Purp., Ser. B	5.750		07/01/40		500		568,185
Hawaii St. Dept. Budget & Fin., Spl. Purp. Rev., 15 Craigside Proj., Ser. A	9.000		11/15/44		1,000		1,244,780
Hawaii St. Dept. Budget & Fin., Spl. Purp. Rev., Hawaii Pacific Hlth. Oblig., Ser. A	5.500		07/01/43		2,500		2,854,375
Hawaii St. Dept. Budget & Fin., Spl. Purp. Rev., Hawaiian Elec. Co.	6.500		07/01/39		1,000		1,153,540
							6,940,230
Idaho    0.2%
Idaho Hlth. Facs. Auth. Rev., St. Luke’s Hlth. Sys. Proj., Ser. A	6.750		11/01/37		1,000		1,155,880
Illinois    5.6%
Chicago O’Hare Int’l. Arpt. Rev., Gen.-Third Lien, Ser. C	6.500		01/01/41		1,000		1,210,760

See Notes to Financial Statements.

Prudential Muni High Income Fund 17

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Illinois (cont’d.)
Chicago O’Hare Int’l. Arpt. Rev., Gen.-Third Lien, Ser. C, AMT	5.375%		01/01/39		1,500	$	1,659,495
Illinois Fin. Auth. Rev., Cent. DuPage Hlth., Ser. B	5.500		11/01/39		1,500		1,730,580
Illinois Fin. Auth. Rev., Illinois Inst. of Technology, Ser. A	5.000		04/01/31		2,500		2,500,775
Illinois Fin. Auth. Rev., Illinois Inst. of Technology, Ser. A	5.000		04/01/36		5,000		4,910,700
Illinois Fin. Auth. Rev., NorthWestern Mem. Hosp., Ser. A	6.000		08/15/39		1,500		1,731,495
Illinois Fin. Auth. Rev., Provena Hlth., Ser. A	6.000		05/01/28		1,500		1,733,985
Illinois Fin. Auth. Rev., Provena Hlth., Ser. A	7.750		08/15/34		1,000		1,228,360
Illinois Fin. Auth. Rev., Rush Univ. Med. Ctr. Oblig. Grp., Ser. A (Prerefunded 11/01/18)(b)	7.250		11/01/38		3,405		4,102,514
Illinois Fin. Auth. Rev., Rush Univ. Med. Ctr., Ser. C (Prerefunded 05/01/19)(b)	6.625		11/01/39		1,000		1,203,290
Illinois Fin. Auth. Rev., Silver Cross & Med. Ctrs. (Prerefunded 08/15/19)(b)	7.000		08/15/44		3,000		3,693,510
Illinois Fin. Auth. Rev., Student Hsg., Edl. Advancement Fd., Inc., Ser. B, Rfdg.	5.000		05/01/30		5,000		5,096,350
Illinois Fin. Auth. Rev., Swedish Covenant, Ser. A	6.000		08/15/38		1,500		1,673,835
Illinois St., GO	5.000		08/01/25		1,000		1,092,850
Illinois St., GO	5.000		05/01/36		2,000		2,083,880
Illinois St., GO	5.000		02/01/39		1,500		1,551,465
Illinois St., GO	5.000		05/01/39		1,000		1,035,180
Railsplitter Tob. Settlement Auth. Rev.	6.000		06/01/28		2,250		2,650,163
							40,889,187
Indiana    1.6%
Indiana St. Fin. Auth. Rev., 21st Century Chrt. Sch. Proj., Ser. A	6.250		03/01/43		1,500		1,486,170
Indiana St. Fin. Auth. Rev., Drexel Fndtn. Edl. Facs. Proj., Ser. A	7.000		10/01/39		1,000		1,015,810
Indiana St. Fin. Auth. Rev., Duke Energy Indl., Ser. B	6.000		08/01/39		1,000		1,161,790
Indiana St. Fin. Auth. Rev., I-69 Dev. Partners LLC, AMT	5.250		09/01/34		500		551,545

See Notes to Financial Statements.

18

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Indiana (cont’d.)
Indiana St. Fin. Auth. Rev., I-69 Dev. Partners LLC, AMT	5.250%		09/01/40		750	$	819,960
Indiana St. Fin. Auth. Rev., Impt., U.S. Steel Corp., Rfdg.	6.000		12/01/26		305		333,911
Indianapolis Loc. Pub. Impt. Bd. Bk. Wtrwks. Proj., Ser. A	5.750		01/01/38		1,000		1,143,070
Valparaiso, IN Rev., Pratt Paper LLC Proj., AMT	5.875		01/01/24		1,000		1,150,790
Valparaiso, IN Rev., Pratt Paper LLC Proj., AMT	7.000		01/01/44		1,500		1,833,600
Vigo Cnty. Hosp. Auth. Rev., Union Hosp., Inc.	7.750		09/01/31		1,500		1,812,435
							11,309,081
Iowa    1.9%
Altoona Urban Renewal Tax Rev., Annual Appr.	6.000		06/01/43		1,000		1,087,770
Ames IA Hosp., Mary Greely Med. Ctr. Rev.	5.250		06/15/36		1,000		1,084,830
Iowa St. Fin. Auth. Rev., Midwstrn. Disaster Area, Iowa Fertilizer Co. Proj.	5.250		12/01/25		4,600		5,130,978
Iowa St. Fin. Auth. Rev., Midwstrn. Disaster Area, Iowa Fertilizer Co. Proj.	5.500		12/01/22		5,600		5,976,152
Iowa St. Higher Edu. Ln. Auth. Rev., Wartburg Clg. Proj., Rfdg.	2.500		10/01/20		500		495,235
							13,774,965
Kansas    0.2%
Kansas St. Dev. Fin. Auth. Hosp. Rev., Adventist Hlth.	5.750		11/15/38		1,000		1,153,090
Kentucky    0.7%
Kentucky Econ. Dev. Fin. Auth. Hosp. Facs. Rev., Owensboro Med. Hlth. Sys., Ser. A	6.375		06/01/40		3,500		4,000,745
Owen Cnty. Wtrwks. Sys. Rev., Amern. Wtr. Co. Proj., Ser. A	6.250		06/01/39		500		569,070
Owen Cnty. Wtrwks. Sys. Rev., Amern. Wtr. Co. Proj., Ser. B	5.625		09/01/39		500		547,855
							5,117,670
Louisiana    1.7%
Louisiana Loc. Govt. Envir. Facs. & Cmnty. Rev., Westlake Chem. Corp., Ser. A-2	6.500		11/01/35		1,000		1,196,500

See Notes to Financial Statements.

Prudential Muni High Income Fund 19

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#			Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Louisiana (cont’d.)
Louisiana Loc. Govt. Envir. Facs. & Cmnty. Rev., Woman’s Hosp. Fndtn., Ser. A	6.000%		10/01/44		2,000		$	2,325,140
Louisiana Pub. Facs. Auth. Hosp. Rev., Franciscan Missionaries Hosp. (Prerefunded 07/01/19)(b)	6.750		07/01/39		2,000			2,431,840
Louisiana St. Citizens Ppty. Ins., Assmt. Rev., Ser. C-2 Rmkt., AGC	6.750		06/01/26		2,000			2,321,720
New Orleans Sewerage Serv. Rev., Rfdg.	5.000		06/01/44		1,000			1,098,700
St. Charles Parish Gulf Zone, Opp. Zone Rev., Valero Energy Corp. (Mandatory put date 06/01/22)	4.000		12/01/40		2,500			2,706,275
								12,080,175
Maine    0.3%
Maine St. Hlth. & Higher Edl. Facs. Auth. Rev., Maine General Med. Ctr.	7.500		07/01/32		2,000			2,424,240
Maryland    2.0%
Anne Arundel Cnty. Spl. Oblig., Vlg. South Waugh Chapel Proj., Tax Alloc.	6.250		07/01/40		2,000			2,131,320
Frederick Cnty. Spl. Oblig., Rev., Jefferson Tech. Park, Ser. B	7.125		07/01/43		2,000			2,263,220
Frederick Cnty. Spl. Oblig., Rev., Sub. Urbana Cmnty. Dev. Auth., Ser. B	5.500		07/01/40		4,785			4,875,676
Howard Cnty. Spl. Oblig., Annapolis Junction Twn. Ctr. Proj., Tax Alloc.	6.100		02/15/44		1,420	��		1,523,631
Maryland Econ. Dev. Corp., Poll. Ctrl. Rev., Potomac Elect. Pwr. Co., Rfdg.	6.200		09/01/22		1,000			1,176,950
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev., Charlestown Cmnty., Rfdg.	6.250		01/01/41		1,500			1,680,885
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev., Lifebridge Hlth.	6.000		07/01/41		600			701,766
								14,353,448
Massachusetts    0.9%
Massachusetts St. Dev. Fin. Agcy. Rev., Linden Ponds, Inc. Fac., Ser. A-1	6.250		11/15/46		709			678,070
Massachusetts St. Dev. Fin. Agcy. Rev., Linden Ponds, Inc. Fac., Ser. A-2	5.500		11/15/46		38			32,175

See Notes to Financial Statements.

20

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Massachusetts (cont’d.)
Massachusetts St. Dev. Fin. Agcy. Rev., Linden Ponds, Inc. Fac., Ser. B	12.630%(d)		11/15/56		187	$	1,155
Massachusetts St. Dev. Fin. Agcy. Rev., Tufts Med. Ctr., Ser. I	7.250		01/01/32		2,000		2,408,760
Massachusetts St. Port Auth. Spl. Facs. Rev., Bosfuel Proj., AMT, NATL	5.000		07/01/32		3,000		3,179,550
							6,299,710
Michigan    3.1%
Kent Hosp. Fin. Auth. Rev., Metro Hosp. Proj., Ser. A	6.250		07/01/40		3,000		3,013,230
Michigan Fin. Auth. Rev., Sr., Lien, Detroit Wtr. & Swr., Ser C-1	5.000		07/01/44		1,000		1,052,820
Michigan St. Bldg. Auth. Rev., Facs. Prog., Ser. I-A, Rfdg.	5.375		10/15/41		750		866,220
Michigan St. Hosp. Fin. Auth. Rev., Henry Ford Hlth.	5.750		11/15/39		1,000		1,124,980
Michigan St. Hosp. Fin. Auth. Rev., McLaren Healthcare Corp. (Prerefunded 05/15/18)(b)	5.750		05/15/38		1,500		1,708,725
Michigan St. Strategic Fund Rev., Var. Detroit Ed. Rmkt. Rfdg.	5.625		07/01/20		1,000		1,177,980
Oakland Cnty. Econ. Dev. Corp. Oblg. Rev., Roman Catholic Archdiocese Detroit, Rfdg.	6.500		12/01/20		1,900		2,043,051
Royal Oak Hosp. Fin. Auth. Hosp. Rev., William Beaumont Hosp., Ser. V (Prerefunded 09/01/18)(b)	8.250		09/01/39		2,150		2,657,142
Royal Oak Hosp. Fin. Auth. Hosp. Rev., William Beaumont Hosp., Ser. W (Prerefunded 08/01/19)(b)	6.000		08/01/39		1,000		1,196,170
Star Intl. Academy, Pub. Sch. Academy, Rfdg.	5.000		03/01/33		2,000		2,085,100
Summit Academy Rev., Rfdg., North Pub. Sch. Academy	5.500		11/01/30		1,500		1,500,360
Summit Academy Rev., Rfdg., Pub. Sch. Academy	6.250		11/01/25		2,060		2,068,261
Wayne Cnty. Arpt. Auth. Rev., Detroit Met. Arpt., Ser. D, AMT, Rfdg.	5.000		12/01/28		1,500		1,649,070
							22,143,109

See Notes to Financial Statements.

Prudential Muni High Income Fund 21

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Minnesota    0.5%
Hugo, MN Rev., Chrt. Sch. Lease, Noble Academy Proj., Ser. A	5.000%		07/01/44		1,250	$	1,317,600
St. Paul Hsg. & Redev. Auth., Hosp. Rev., Hlth. East Proj.	6.000		11/15/35		1,000		1,021,430
St. Paul Port Auth. Sol. Wste. Disp. Rev., Gerdau St. Paul Steel Mill Proj., Ser. 7, AMT	4.500		10/01/37		1,000		1,006,870
							3,345,900
Mississippi    0.2%
Warren Cnty. Gulf Opp. Zone, Intl. Paper Proj., Ser. A	6.500		09/01/32		1,000		1,150,090
Missouri    1.8%
Joplin Indl. Dev. Auth. Rev., Freeman Hlth. Sys., Rfdg.	5.000		02/15/35		1,000		1,092,040
Manchester Tax Increment & Transn. Rev., Hwy. 141, Manchester Rd. Proj., Rfdg.	6.875		11/01/39		1,500		1,592,985
Missouri St. Hlth. & Ed. Facs. Auth. Rev., BJC Hlth. Sys., Ser. A	4.000		01/01/45		2,010		1,968,815
Missouri St. Hlth. & Ed. Facs. Auth. Rev., Lutheran Sr. Svcs.	6.000		02/01/41		1,000		1,101,800
Missouri St. Hlth. & Ed. Facs. Auth. Rev., Lutheran Sr. Svcs., Rfdg.	5.000		02/01/44		4,000		4,244,160
Poplar Bluff Regl. Transn. Dev. Dist., Transn. Sales Tax Rev.	4.750		12/01/42		2,100		2,149,623
St. Louis Cnty. Indl. Dev. Auth. Rev., Friendship Village Sunset Hills, Ser. A	5.875		09/01/43		1,000		1,123,450
							13,272,873
Nevada    0.4%
Clark Cnty. Impt. Dist. Spl. Impvt., Dist. No. 142, Mountains Edge Loc. Impvt., Rfdg.	4.000		08/01/23		1,595		1,606,325
Nevada St. Dept. of Bus. & Ind. Rev., Somerset Acad., Ser. A	5.125		12/15/45		1,000		1,000,750
							2,607,075
New Hampshire    0.1%
New Hampshire Business Fin. Auth. Sld. Wste. Disp. Rev., Casella Wste. Sys., Inc., Rmkt., AMT (Mandatory put date 10/01/2019), 144A	4.000		04/01/29		1,000		1,007,230

See Notes to Financial Statements.

22

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
New Jersey    9.7%
Burlington Cnty. Bridge Commn. Econ. Dev. Rev., The Evergreens Proj.	5.625%		01/01/38		1,000	$	1,032,250
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc. Proj., AMT	5.750		09/15/27		1,000		1,090,290
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc. Proj., Rmkt., AMT	5.500		06/01/33		2,000		2,226,200
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., Proj., Spec. Facs. AMT	5.250		09/15/29		5,000		5,477,950
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., United Airlines, Inc. Proj., AMT	4.875		09/15/19		3,395		3,577,787
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., United Airlines, Inc. Proj., AMT	5.125		09/15/23		5,000		5,501,550
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., United Airlines, Inc. Proj., Ser. A, AMT	5.625		11/15/30		2,050		2,303,154
New Jersey Econ. Dev. Auth. Rev., GMT Realty LLC, Ser. B, AMT, Rfdg.	6.875		01/01/37		3,000		3,019,170
New Jersey Econ. Dev. Auth. Rev., Goethals Bridge, AMT	5.375		01/01/43		1,390		1,537,257
New Jersey Econ. Dev. Auth. Rev., Provident Grp., Rowan Pptys. LLC, Ser. A	5.000		01/01/48		1,000		1,057,280
New Jersey Econ. Dev. Auth. Rev., Team Academy Chrt. Sch. Proj.	6.000		10/01/43		1,700		1,924,077
New Jersey Econ. Dev. Auth. Rev., Umm Energy Partners, Ser. A, AMT	5.000		06/15/37		1,500		1,586,130
New Jersey Econ. Dev. Auth. Rev., Umm Energy Partners, Ser. A, AMT	5.125		06/15/43		1,100		1,162,392
New Jersey Healthcare Facs. Fin. Auth. Rev., AHS Hosp. Corp.	6.000		07/01/41		500		598,195
New Jersey Healthcare Facs. Fin. Auth. Rev., Barnabas Hlth., Ser. A, Rfdg.	5.625		07/01/37		1,000		1,135,940
New Jersey Healthcare Facs. Fin. Auth. Rev., St. Josephs Healthcare Sys.	6.625		07/01/38		3,000		3,341,700
New Jersey Healthcare Facs. Fin. Auth. Rev., Virtua Hlth.	5.750		07/01/33		2,000		2,275,320
New Jersey St. Edl. Facs. Auth. Univ. Med. & Dentistry, Ser. B, Rfdg. (Prerefunded 06/01/19)(b)	7.500		12/01/32		1,000		1,248,420

See Notes to Financial Statements.

Prudential Muni High Income Fund 23

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
New Jersey (cont’d.)
New Jersey St. Tpke. Auth. Tpke. Rev., Growth & Income Secs., Ser. B, AMBAC, CABS (Converted to Fixed on 01/01/15)	5.150%		01/01/35		4,000	$	4,237,680
New Jersey St. Transn. Tr. Fd. Sys. Auth., Trans. Sys., Ser. A	5.875		12/15/38		2,000		2,244,720
Salem Cnty. Poll. Ctrl. Fing. Auth. Rev., Chambers Proj., Ser. A, AMT, Rfdg.	5.000		12/01/23		2,000		2,267,740
South Jersey Transn. Auth. LLC, Rev., Ser. A, Rfdg.	5.000		11/01/39		750		800,250
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg.	4.500		06/01/23		6,825		6,832,849
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg.	4.625		06/01/26		8,000		7,694,000
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg.	4.750		06/01/34		3,000		2,313,240
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg.	5.000		06/01/41		4,355		3,403,389
							69,888,930
New York    3.5%
Brooklyn Arena Local Dev. Corp., Barclays Ctr. Proj.	6.375		07/15/43		1,250		1,466,863
Build NYC Resource Corp. Rev., Pratt Paper, Inc. Proj., AMT, Rdfg., 144A	5.000		01/01/35		1,000		1,069,960
Erie Cnty. Tob. Asset Secur. Corp. Cap. Apprec., Asset Bkd.-1st Sub., Ser. B, CABS	9.350(d)		06/01/47		5,000		266,200
Erie Cnty. Tob. Asset Secur. Corp. Cap. Apprec., Asset Bkd.-2nd Sub., Ser. C, CABS	11.090(d)		06/01/50		4,000		90,640
Long Island Pwr. Auth. Elec. Sys. Rev., Ser. A	6.000		05/01/33		1,500		1,744,590
New York City Indl. Dev. Agcy. Rev., JetBlue Airways Corp. Proj., AMT	5.125		05/15/30		500		500,125
New York City Indl. Dev. Agcy. Rev., Spl. Fac., American Airlines, JFK Int’l. Arpt., AMT, AMR Corp.	7.500		08/01/16		600		629,004
New York City Indl. Dev. Agcy. Rev., Spl. Fac., American Airlines, JFK Int’l. Arpt., AMT, AMR Corp.	7.750		08/01/31		2,400		2,601,984
New York City Indl. Dev. Agcy. Rev., Spl. Fac., Terminal One Group Assn. Proj., AMT	5.500		01/01/24		2,450		2,527,542

See Notes to Financial Statements.

24

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
New York (cont’d.)
New York Liberty Dev. Corp. Rev., 4 World Trade Center Proj., Rfdg.	5.750%		11/15/51		1,750	$	2,024,907
New York Liberty Dev. Corp. Rev., Class 1-3 World Trade Ctr., Rfdg., 144A	5.000		11/15/44		5,000		5,207,850
New York St. Dorm. Auth. Rev., Nonst. Supported Debt, NYU Hosp. Ctr., Ser. A	6.000		07/01/40		1,000		1,155,570
New York St. Dorm. Auth. Rev., Orange Regl. Med. Ctr.	5.000		12/01/45		1,000		1,040,040
Onondaga Civic Dev. Corp., St. Joseph Hosp. Hlth. Ctr., Ser. 2012	5.000		07/01/42		1,000		1,024,130
Port Auth. of NY & NJ Spl. Oblig. Rev., JFK Int’l. Air Terminal	5.000		12/01/20		500		571,790
Port Auth. of NY & NJ Spl. Oblig. Rev., JFK Int’l. Air Terminal	6.000		12/01/42		2,500		2,940,650
TSASC, Inc., Rev., Ser. 1, Rfdg.	5.000		06/01/26		500		502,355
							25,364,200
North Carolina    0.4%
North Carolina Eastn. Mun. Pwr. Agcy. Pwr. Sys. Rev., Ser. C	6.750		01/01/24		1,000		1,191,080
North Carolina Med. Care Commn. Ret. Facs. Rev., First Mtg. Galloway Ridge Proj., Ser. A	6.000		01/01/39		750		806,655
North Carolina Med. Care Commn. Rev., Pennybyrn at Maryfield, Rfdg.	5.000		10/01/35		1,000		1,047,400
							3,045,135
North Dakota    0.1%
Burleigh Cnty. Rev., St. Alexius Med. Ctr. Proj., Ser. A, Rfdg. (Prerefunded 07/01/21)(b)	5.000		07/01/35		750		896,805
Ohio    3.3%
Buckeye OH Tob. Settlement Fin. Auth., Asset Bkd. Sr. Turbo, Ser. A-2	5.125		06/01/24		6,450		5,483,661
Buckeye OH Tob. Settlement Fin. Auth., Asset Bkd. Sr. Turbo, Ser. A-2	5.375		06/01/24		2,995		2,623,949
Buckeye OH Tob. Settlement Fin. Auth., Asset Bkd. Sr. Turbo, Ser. A-2	5.875		06/01/30		6,500		5,487,560
Buckeye OH Tob. Settlement Fin. Auth., Asset Bkd. Sr. Turbo, Ser. A-2	6.500		06/01/47		1,750		1,551,882

See Notes to Financial Statements.

Prudential Muni High Income Fund 25

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Ohio (cont’d.)
Hamilton Cnty. Healthcare Facs. Rev., Christ Hosp. Proj.	5.000%		06/01/42		1,250	$	1,339,175
Hancock Cnty. Hosp. Facs. Rev., Blanchard Valley Hlth. Ctr., Ser. A	6.250		12/01/34		600		709,182
Lucas Cnty. OH Hosp. Rev., Promedica Healthcare, Ser. A, Rfdg.	6.000		11/15/41		750		905,985
Lucas Cnty. OH Hosp. Rev., Promedica Healthcare, Ser. A, Rfdg.	6.500		11/15/37		875		1,089,778
Middleburg Heights Hosp. Rev., Facs. Southwest Gen., Ser. 2011, Rfdg.	5.250		08/01/41		1,200		1,289,052
Ohio Air Quality Dev. Auth. Rev., Poll. FirstEnergy Generation, Ser. C	5.625		06/01/18		500		553,750
Ohio St. Pvt. Act. Rev., Portsmouth Bypass Proj., AMT	5.000		06/30/53		1,000		1,049,530
Ohio St. Wtr. Dev. Auth. Rev., FirstEnergy Generation, Ser. A, Rfdg. (Mandatory put date 06/01/16)	5.875		06/01/33		500		526,295
Ohio St. Wtr. Dev. Auth. Rev., FirstEnergy Generation, Ser. B, Rfdg. (Mandatory put date 04/01/20)	3.625		10/01/33		700		732,592
Ohio St. Wtr. Dev. Auth. Rev., FirstEnergy Nuclear Generation, Ser. B, Rfdg. (Mandatory put date 06/03/19)	4.000		12/01/33		250		264,165
Ohio St. Wtr. Dev. Auth. Rev., U.S. Steel Corp. Proj., Rfdg.	6.600		05/01/29		300		343,149
							23,949,705
Oklahoma    1.0%
Oklahoma Cnty. Fin. Auth. Rev., Epworth Villa Proj., Ser. A	5.125		04/01/42		1,750		1,505,122
Oklahoma St. Dev., Fin. Auth. Rev., St. Johns Hlth. Sys., Rfdg.	5.000		02/15/42		1,500		1,638,675
Tulsa Cnty. OK Indl. Auth. Sr. Living Cmnty. Rev., Montereau, Inc. Proj., Ser A	7.125		11/01/30		1,000		1,112,290
Tulsa Mun. Arpt. Tr. Trustees Gen. Rev., American Airlines, Ser. A, AMT	5.500		06/01/35		3,000		3,236,550
							7,492,637

See Notes to Financial Statements.

26

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Oregon    0.4%
Multnomah Cnty. OR Hosp. Facs. Auth. Rev., Mirabella at South Waterfront, Ser. A., Rfdg.	5.400%		10/01/44		1,000	$	1,100,700
Oregon St. Fac. Auth. Rev., Univ. Portland, Ser. A, Rfdg.	4.000		04/01/40		1,000		966,250
Salem OR Hosp. Facs. Auth. Rev., Capital Manor, Inc., Rfdg.	6.000		05/15/42		1,000		1,105,520
							3,172,470
Pennsylvania    6.1%
Beaver Cnty. Indl. Dev. Auth. Rev., FirstEnergy, Ser. A, Rfdg. (Mandatory put date 06/01/20)	3.500		04/01/41		1,000		1,034,060
Butler Cnty. Hosp. Auth. Rev., Butler Hlth. Sys. Proj. (Prerefunded 07/01/19)(b)	7.250		07/01/39		1,000		1,242,070
Central Bradford Progress Auth. Rev., Guthrie Healthcare Sys., Rfdg.	5.375		12/01/41		2,700		3,068,469
Chester Cnty. Indl. Dev. Auth. Rev., Renaissance Academy Chrt. Sch., Rfdg.	5.000		10/01/44		1,000		1,047,790
Cumberland Cnty. Mun. Auth., Rev., Asbury PA Oblig. Grp.	6.125		01/01/45		2,000		2,147,100
Cumberland Cnty. Mun. Auth., Rev., Asbury PA Oblig. Grp., Rfdg.	5.250		01/01/41		1,000		1,036,030
Cumberland Cnty. Mun. Auth., Rev., Diakon Lutheran	6.375		01/01/39		1,000		1,105,400
East Hempfield Township Indl. Dev. Auth. Rev., Student Svcs. Inc., Student Hsg. Proj.	5.000		07/01/46		1,000		1,049,430
Fulton Cnty. Indl. Dev. Auth. Hosp. Rev., Med. Ctr. Proj.	5.900		07/01/40		1,000		1,014,270
Geisinger Auth. Hlth. Sys., Ser. A-1	5.125		06/01/41		1,450		1,604,903
Montgomery Cnty. Indl. Dev. Auth. Rev., Whitemarsh CCRC, Rfdg.	5.250		01/01/40		1,000		1,009,360
Northampton Cnty. Gen. Purp. Auth. Hosp. Rev., St. Luke’s Hosp. Proj., Ser. A	5.500		08/15/35		1,000		1,105,880
Pennsylvania Econ. Dev. Fin. Auth., Res. Recov., Colver Proj., Ser. F, AMBAC, AMT, Rfdg.	4.625		12/01/18		3,500		3,567,935
Pennsylvania Econ. Dev. Fin. Auth., Res. Recov., Colver Proj., Ser. G, AMT, Rfdg.	5.125		12/01/15		300		303,546
Pennsylvania Econ. Dev. Fin. Auth., Swr. Sludge Disp. Rev., Philadelphia Biosolids Fac.	6.250		01/01/32		750		824,700

See Notes to Financial Statements.

Prudential Muni High Income Fund 27

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Pennsylvania (cont’d.)
Pennsylvania Econ. Dev. Fin. Auth., US Airways Grp., Ser. B, Gty. Agmt.	8.000%		05/01/29		490	$	586,785
Pennsylvania Econ. Dev. Fin. Auth. Rev., PA Bridges Finco. LP, AMT	5.000		06/30/42		1,500		1,619,910
Philadelphia Arpt. Rev., Ser. A, AMT, Rfdg.	5.000		06/15/27		2,500		2,757,725
Philadelphia Auth. for Indl. Dev. Rev., First Philadelphia Preparatory Chrt., Ser. A	7.250		06/15/43		2,000		2,277,560
Philadelphia Auth. for Indl. Dev. Rev., Mariana Bracetti Academy	7.625		12/15/41		2,000		2,264,820
Philadelphia Auth. for Indl. Dev. Rev., New Fndtn. Chrt. Sch. Proj.	6.625		12/15/41		1,000		1,108,080
Philadelphia Hosp. & Higher Ed. Fac. Auth. Rev., Temple Univ. Hlth. Sys., Ser. A	5.625		07/01/42		5,660		5,999,487
Philadelphia Hosp. & Higher Ed. Fac. Auth. Rev., Temple Univ. Hlth. Sys., Ser. A, Rfdg.	5.000		07/01/34		2,100		2,112,243
Philadelphia Hosp. & Higher Ed. Fac. Auth. Rev., Temple Univ. Hlth. Sys., Ser. A, Rfdg.	5.500		07/01/30		500		513,000
Philadelphia Hosp. & Higher Ed. Fac. Auth. Rev., Temple Univ. Hlth. Sys., Ser. B, Rfdg.	5.500		07/01/26		750		784,238
Philadelphia, PA, GO, Ser. B, AGC (Prerefunded 07/15/16)(b)	7.125		07/15/38		1,500		1,622,340
Susquehanna Area Regl. Arpt. Auth., Arpt. Sys. Rev., Ser. A, AMT	6.500		01/01/38		1,500		1,616,025
							44,423,156
Puerto Rico    2.4%
Puerto Rico Comnwlth., Aqueduct & Swr. Auth. Rev., Sr. Lien, Ser. A, Rfdg.	5.750		07/01/37		1,350		909,576
Puerto Rico Comnwlth., Aqueduct & Swr. Auth. Rev., Sr. Lien, Ser. A, Rfdg.	6.000		07/01/47		1,125		770,647
Puerto Rico Comnwlth., Pub. Impt., Ser. A, GO, Rfdg.	5.500		07/01/39		2,000		1,354,920
Puerto Rico Comnwlth., Ser. A, GO	8.000		07/01/35		6,200		4,843,564
Puerto Rico Elec. Pwr. Auth. Rev., Ser. A, Rfdg.	6.750		07/01/36		2,000		1,210,360
Puerto Rico Elec. Pwr. Auth. Rev., Ser. XX	5.250		07/01/40		2,000		1,210,260
Puerto Rico Hwy. & Transn. Auth. Rev., Ser. X, Unrefunded, Rfdg.	5.500		07/01/15		750		742,583
Puerto Rico Pub. Bldgs. Auth. Rev., Govt. Facs., Ser. M, Rfdg.	6.000		07/01/20		2,500		1,857,000

See Notes to Financial Statements.

28

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Puerto Rico (cont’d.)
Puerto Rico Pub. Bldgs. Auth. Rev., Govt. Facs., Ser. P, Rfdg.	6.750%		07/01/36		750	$	506,295
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., Cap. Apprec., Ser. A , CABS	10.140(d)		08/01/33		5,000		821,600
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., First Sub., Ser. A	5.375		08/01/39		1,500		825,000
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., First Sub., Ser. A	5.750		08/01/37		1,000		571,550
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., First Sub., Ser. A	6.000		08/01/42		2,150		1,228,187
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., First Sub., Ser. A-1	5.000		08/01/43		750		396,540
							17,248,082
Rhode Island     0.4%
Rhode Island St. Hlth. & Edl. Bldg. Corp. Rev., Hosp. Fing., Lifespan Oblig., Ser. A	7.000		05/15/39		2,000		2,298,220
Tob. Settlement Fing. Corp. Rev., Ser. A, Rfdg.	5.000		06/01/40		600		634,560
							2,932,780
South Dakota    0.2%
South Dakota St. Hlth. & Edl. Facs. Auth. Rev., Avera Hlth., Ser. A	5.000		07/01/42		1,655		1,799,250
Tennessee    2.0%
Chattanooga Hlth. Edl. & Hsg. Facs. Brd. Rev., Catholic Hlth., Ser. A	5.250		01/01/45		2,000		2,206,660
Jackson TN. Rev., Jackson- Madison Cnty. Hosp., Rfdg.	4.000		04/01/41		1,500		1,471,455
Johnson City Hlth. & Edl. Facs. Brd. Hosp. Rev., Mountain States Hlth. Alliance, First Mtge., Ser. A	6.000		07/01/38		1,000		1,139,540
Johnson City Hlth. & Edl. Facs. Brd. Hosp. Rev., Mountain States Hlth. Alliance, First Mtge., Ser. A, NATL, ETM, Rfdg.(b)	6.750		07/01/17		2,000		2,223,240
Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd. Hosp. Facs. Rev., Covenant Hlth., Ser. A, CABS	5.060(d)		01/01/35		1,000		374,390
Metropolitan Govt. Nashville & Davidson Cnty. Hlth. & Edl. Facs. Brd. Rev., Impt. Blakeford at Green Hills, Rfdg.	5.000		07/01/37		850		894,897

See Notes to Financial Statements.

Prudential Muni High Income Fund 29

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Tennessee (cont’d.)
Rutherford Cnty. Hlth. & Edl. Facs., First Mtge. Rev., Group Homes, Inc.	9.500%		12/01/19		2,100	$	2,110,332
Shelby Cnty. Hlth. Edl. & Hsg. Facs. Brd. Facs. Rev., Germantown Village, Rfdg.	5.250		12/01/42		1,100		1,139,248
Tennessee Energy Acquisition Corp. Gas Rev., Ser. C	5.000		02/01/22		1,000		1,129,870
Tennessee Energy Acquisition Corp. Gas Rev., Ser. C	5.000		02/01/25		1,500		1,715,130
							14,404,762
Texas    10.7%
Austin Convention Enterprises, Inc. Convention Ctr. Rev., Second Tier, Ser. B, Rfdg., 144A	5.750		01/01/24		3,405		3,537,284
Austin Convention Enterprises, Inc. Convention Ctr. Rev., Second Tier, Ser. B, Rfdg., 144A	5.750		01/01/34		1,000		1,038,330
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., AMT, Rmkt., Rfdg.(c)	5.400		05/01/29		2,000		125,000
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., Ser. A, AMT, Elec. Rmkt., Rfdg.(c)	8.250		10/01/30		3,000		195,000
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., Ser. D, Rfdg.(c)	5.400		10/01/29		1,000		62,500
Capital Area Cultural Ed. Facs. Fin. Corp. Rev., Roman Catholic Diocese, Ser. B, Rmkt.	6.125		04/01/45		2,000		2,305,980
Central Tex. Regl. Mobility Auth. Rev., Sr. Lien	5.750		01/01/25		1,000		1,134,750
Central Tex. Regl. Mobility Auth. Rev., Sr. Lien	6.000		01/01/41		2,000		2,315,660
Central Tex. Turnpike Sys. Transn. Rev., Ser. C, Rdfg.	5.000		08/15/42		1,000		1,077,720
Clifton Higher Ed. Fin. Corp. Rev., Idea Pub. Sch.	5.000		08/15/42		1,000		1,073,310
Clifton Higher Ed. Fin. Corp. Rev., Idea Pub. Sch.	5.750		08/15/41		1,000		1,126,620
Clifton Higher Ed. Fin. Corp. Rev., Idea Pub. Sch.	6.000		08/15/43		1,000		1,197,620
Clifton Higher Ed. Fin. Corp. Rev., Tejano Cmnty. Ctr., Ser. A	9.000		02/15/38		2,000		2,159,800
Clifton Higher Ed. Fin. Corp. Rev., Uplift Ed., Ser. A	4.500		12/01/44		1,500		1,483,005

See Notes to Financial Statements.

30

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Texas (cont’d.)
Clifton Higher Ed. Fin. Corp. Rev., Uplift Ed., Ser. A	6.125%		12/01/40		3,000	$	3,468,750
Decatur Hosp. Auth. Rev., Wise Regl. Hlth. Sys., Ser. A, Rfdg.	5.250		09/01/44		1,370		1,455,598
Grand Parkway Transn. Corp., 1st Tier Toll Rev., Ser. A	5.125		10/01/43		2,000		2,160,920
Gregg Cnty. Hlth. Facs. Dev. Corp. Rev., Good Shepherd Hlth. Sys., Rfdg.	4.026(e)		10/01/29		600		609,738
Houston Arpt. Sys. Rev., Ser. B-1, AMT	5.000		07/15/35		2,000		2,084,820
Houston Arpt. Sys. Rev., Spl. Facs. Cont. Airlines, Inc., AMT, Rfdg.	6.625		07/15/38		1,500		1,748,970
Houston Arpt. Sys. Rev., Spl. Facs. Cont. Airlines, Inc., Sub. Lien, Ser. A, AMT, Rfdg.	5.000		07/01/32		1,000		1,098,990
Houston Arpt. Sys. Rev., Sub. Lien, Ser. A, AMT, Rfdg.	5.000		07/01/25		250		283,152
Houston Higher Ed. Fin. Corp., Higher Ed. Rev., Cosmos Fndtn., Inc., Ser. A	5.000		02/15/42		1,250		1,338,975
Houston Higher Ed. Fin. Corp., Higher Ed. Rev., Cosmos Fndtn., Inc., Ser. A	6.500		05/15/31		1,000		1,210,510
La Vernia Higher Ed. Fin. Corp. Ed. Rev., Kipp, Inc., Ser. A (Prerefunded 08/15/19)(b)	6.375		08/15/44		1,000		1,202,460
La Vernia Higher Ed. Fin. Corp. Ed. Rev., Lifeschools of Dallas, Ser. A (Prerefunded 08/15/19)(b)	7.500		08/15/41		2,000		2,504,760
Lower Colorado Riv. Auth. Rev., Rfdg. & Impt., Ser. A, Unrefunded Balance	7.250		05/15/37		95		95,278
Matagorda Cnty. Nav. Dist. No. 1, Poll. Ctrl. Rev., AEP Tex. Central Co. Proj., Rfdg., Ser. B-1, Rfdg.	4.000		06/01/30		1,000		1,020,790
Matagorda Cnty. Nav. Dist. No. 1, Poll. Ctrl. Rev., AEP Tex. Central Co. Proj., Rfdg., Ser. B-2, Rfdg.	4.000		06/01/30		1,800		1,837,422
Matagorda Cnty. Nav. Dist. No. 1, Poll. Ctrl. Rev., Bonds, Cent. Pwr. & Lt. Co. Proj., Ser. A, Rmkt.	6.300		11/01/29		1,000		1,142,650
New Hope Cultural Ed. Fac. Corp. Rev., CHF Collegiate Housing, Tarleton St., Proj.	5.000		04/01/47		1,000		1,063,320

See Notes to Financial Statements.

Prudential Muni High Income Fund 31

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Texas (cont’d.)
New Hope Cultural Ed. Fac. Corp. Rev., CHF Collegiate Housing College Station I LLC, Texas A&M Univ. Proj., AGM	5.000%		04/01/46		250	$	270,530
North Tex. Twy. Auth. Rev., First Tier, Ser. A	6.250		01/01/39		1,500		1,720,980
North Tex. Twy. Auth. Rev., First Tier, Ser. A, Rfdg.	5.750		01/01/40		3,500		3,861,550
North Tex. Twy. Auth. Rev., First Tier, Sys., Rfdg.	6.000		01/01/38		2,000		2,344,580
North Tex. Twy. Auth. Rev., Second Tier, Ser. F, Rfdg. (Prerefunded 01/01/18)(b)	5.750		01/01/38		2,500		2,810,575
North Tex. Twy. Auth. Rev., Ser. A, Rfdg.	4.000		01/01/38		2,000		1,938,940
Pharr Higher Ed. Fin. Auth. Ed. Rev., Idea Pub. Sch., Ser. A	6.500		08/15/39		1,000		1,139,470
Sabine River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., Ser. B(c)	6.150		08/01/22		1,000		62,500
San Juan Higher Ed. Fin. Auth. Rev., Idea Pub. Schs., Ser. A	6.700		08/15/40		1,000		1,179,200
Tarrant Cnty. Cultural Ed. Fac. Fin. Corp. Rev., Trinity Terrace Proj., Rfdg.	5.000		10/01/44		1,000		1,056,090
Texas Mun. Gas Acq. & Supply Corp., Gas Supply Rev., Corp. I, Sr. Lien, Ser. A	5.250		12/15/26		4,100		4,818,894
Texas Mun. Gas Acq. & Supply Corp., Gas Supply Rev., Corp. I, Sr. Lien, Ser. B	0.881(e)		12/15/26		1,500		1,364,655
Texas Mun. Pwr. Agcy. Rev., NATL, ETM, CABS, Rfdg.(b)	0.210(d)		09/01/15		50		49,966
Texas Priv. Activity Surface Transn. Corp., Sr. Lien, LBJ Infrastructure	7.000		06/30/40		4,670		5,638,371
Texas Priv. Activity Surface Transn. Corp., Sr. Lien, NTE Mobility Partners	6.875		12/31/39		2,000		2,371,920
Texas Priv. Activity Surface Transn. Corp., Sr. Lien, NTE Mobility Partners, AMT, Ser. 3A & 3B	6.750		06/30/43		500		606,700
Texas Priv. Activity Surface Transn. Corp., Sr. Lien, NTE Mobility Partners, AMT, Ser. 3A & 3B	7.000		12/31/38		1,500		1,859,490
Texas St. Pub. Fin. Auth. Chrt. Sch. Fin. Corp. Rev., Ed. Cosmos Fndtn., Ser. A	6.200		02/15/40		1,000		1,157,740
							77,411,833

See Notes to Financial Statements.

32

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Vermont    0.2%
Vermont Econ. Dev. Auth. Mtge. Rev., Wake Robin Corp. Proj.	5.400%		05/01/33		1,100	$	1,153,790
Virgin Islands    0.1%
Virgin Islands Pub. Fin. Auth. Rev., Matching Fd. Ln. Diageo, Ser. A	6.750		10/01/37		750		853,418
Virginia    2.3%
City of Chesapeake Expressway Toll Road Rev., Transn. Sys., Sr. Ser. B, CABS, Rfdg.	4.960(d)		07/15/40		1,000		662,010
Mosaic District Cmnty. Dev. Auth. Rev., Ser. A	6.875		03/01/36		1,250		1,436,375
Norfolk Redev. & Hsg. Auth. Multi-Fam. Rental Hsg. Fac. Rev., Sussex Apts., AMT	8.000		09/01/26		4,265		4,266,493
Virginia Small Business Fin. Auth. Rev., Sr. Lien, Elizabeth River Crossings OpCo LLC Proj., AMT	5.250		01/01/32		2,055		2,254,540
Virginia Small Business Fin. Auth. Rev., Sr. Lien, Elizabeth River Crossings OpCo LLC Proj., AMT	5.500		01/01/42		3,000		3,271,080
Virginia Small Business Fin. Auth. Rev., Sr. Lien, Express Lanes LLC Proj., AMT	5.000		01/01/40		4,780		5,078,702
							16,969,200
Washington    2.0%
Port of Seattle Indl. Dev. Corp., Spl. Facs., Delta Airlines, AMT, Rfdg.	5.000		04/01/30		1,000		1,043,460
Skagit Cnty. Pub. Hosp. Dist. No. 001 Rev., Skagit Valley Hosp.	5.375		12/01/22		1,190		1,212,884
Skagit Cnty. Pub. Hosp. Dist. No. 001 Rev., Skagit Valley Hosp.	5.750		12/01/35		625		700,819
Skagit Cnty. Pub. Hosp. Dist. No. 001 Rev., Skagit Valley Hosp., Ser. A	5.000		12/01/37		3,000		3,149,340
Tob. Settlement Auth. Wash. Rev., Rfdg.	5.250		06/01/32		1,160		1,293,922
Washington St. Healthcare Facs. Auth. Rev., Kadlec Regl. Med. Ctr., Rdfg. (Prerefunded 12/01/21)(b)	5.000		12/01/42		1,000		1,204,190
Washington St. Healthcare Facs. Auth. Rev., Overlake Hosp. Med. Ctr.	5.500		07/01/30		1,115		1,268,112

See Notes to Financial Statements.

Prudential Muni High Income Fund 33

Portfolio of Investments

as of April 30, 2015 continued

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS (Continued)
Washington (cont’d.)
Washington St. Healthcare Facs. Auth. Rev., Overlake Hosp. Med. Ctr., Rdfg.	5.000%		07/01/38		1,100	$	1,201,343
Washington St. Healthcare Facs. Auth. Rev., Seattle Children’s Hosp. (Prerefunded 10/01/19)(b)	5.625		10/01/38		1,250		1,476,412
Washington St. Hsg. Fin. Comm. Rev., Rockwood Retmnt. Cmnty. Proj., Ser. A, 144A	7.375		01/01/44		2,000		2,214,180
							14,764,662
Wisconsin    0.7%
Pub. Fin. Auth. Arpt. Facs. Rev., Sr. Oblig. Grp., AMT, Rfdg.	5.000		07/01/42		1,500		1,589,250
Pub. Fin. Auth. Arpt. Facs. Rev., Sr. Oblig. Grp., AMT, Rfdg.	5.250		07/01/28		1,000		1,114,430
Pub. Fin. Auth. Chrt. Sch. Rev., Voyager Fndtn., Inc. Proj., Ser. A	6.200		10/01/42		1,000		1,080,000
Wisconsin Hlth. & Edl. Facs. Auth. Rev., Eastcastle Place, Inc. Proj.	6.125		12/01/34		1,000		982,270
							4,765,950
Wyoming    0.1%
Campbell Cnty. Solid Wste. Facs. Rev., Basin Elec. Pwr. Coop., Ser. A	5.750		07/15/39		500		573,610
TOTAL LONG-TERM INVESTMENTS (cost $665,270,386)							705,400,211
SHORT-TERM INVESTMENT    1.3%
Alaska
Valdez Marine Term. Rev., Exxon Pipeline Proj., Rfdg., FRDD (Mandatory put date 05/06/15) (cost $9,200,000)	0.070(e)		10/01/25		9,200		9,200,000
TOTAL INVESTMENTS    98.7% (cost $674,470,386; Note 5)							714,600,211
Other assets in excess of liabilities    1.3%							9,276,999
NET ASSETS    100.0%						$	723,877,210

See Notes to Financial Statements.

34

The following abbreviations are used in the portfolio descriptions:

144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.

ACA—American Capital Access Corp.

AGC—Assured Guaranty Corp.

AGM—Assured Guaranty Municipal Corp.

AMBAC—American Municipal Bond Assurance Corp.

AMT—Alternative Minimum Tax

CABS—Capital Appreciation Bonds

CCRC—Continuing Care Retirement Communities

CDD—Community Development District

COP—Certificates of Participation

ETM—Escrowed to Maturity

FRDD—Floating Rate Daily Demand Note

GO—General Obligation

IDB—Industrial Development Bond

NATL—National Public Finance Guaranty Corp.

PCR—Pollution Control Revenue

# Principal amount shown in U.S. dollars unless otherwise stated.

(a) Represents issuer in default on interest payments and/or principal repayment; the security is income producing.

(b) All or partial escrowed to maturity and pre-refunded issues are secured by escrowed cash, a guaranteed investment contract and/or U.S. guaranteed obligations.

(c) Represents issuer in default on interest payments and/or principal repayment; non-income producing security.

(d) Represents a zero coupon or step bond. Rate quoted represents effective yield at April 30, 2015.

(e) Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2015.

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 April 30, 2015 in valuing such portfolio securities:

	Level 1		Level 2		Level 3
Investments in Securities
Municipal Bonds	$	—	$	714,160,761	$	439,450

See Notes to Financial Statements.

Prudential Muni High Income Fund 35

Portfolio of Investments

as of April 30, 2015 continued

The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2015 was as follows (Unaudited):

Health Care	22.7	%
Corporate Backed IDB & PCR	14.6
Transportation	10.2
Education	9.7
Tobacco	9.5
Special Tax/Assessment District	7.7
Power	6.3
Other	5.2
Pre-Refunded	4.9
General Obligation	2.8
Solid Waste/Resource Recovery	1.7	%
Lease Backed Certificate of Participation	1.4
Water & Sewer	1.3
Housing	0.6
Tobacco Appropriated	0.1
	98.7
Other assets in excess of liabilities	1.3
	100.0	%

Industry classification is subject to change.

The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is interest rate risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Operations is presented in the summary below.

The effects of derivative instruments on the Statement of Operations for the year ended April 30, 2015 are as follows:

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Futures
Interest rate contracts	$	(934,941	)

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Futures
Interest rate contracts	$	322,301

For the year ended April 30, 2015, the Fund’s average value at trade date for futures short positions was $6,610,639.

See Notes to Financial Statements.

36

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

FINANCIAL STATEMENTS

ANNUAL REPORT ^· APRIL 30, 2015

Prudential Muni High Income Fund

Statement of Assets & Liabilities

as of April 30, 2015

Assets
Unaffiliated investments (cost $674,470,386)	$	714,600,211
Cash		81,241
Interest receivable		12,332,509
Receivable for Fund shares sold		2,339,493
Receivable for investments sold		1,865,001
Prepaid expenses		4,123
Total assets		731,222,578
Liabilities
Payable for investments purchased		4,015,050
Payable for Fund shares reacquired		2,242,008
Dividends payable		413,908
Management fee payable		298,047
Distribution fee payable		190,009
Accrued expenses		171,989
Affiliated transfer agent fee payable		11,148
Deferred trustees’ fees		3,209
Total liabilities		7,345,368
Net Assets	$	723,877,210
Net assets were comprised of:
Shares of beneficial interest, at par	$	705,576
Paid-in capital in excess of par		708,413,888
		709,119,464
Undistributed net investment income		4,812,960
Accumulated net realized loss on investment transactions		(30,185,039	)
Net unrealized appreciation on investments		40,129,825
Net assets, April 30, 2015	$	723,877,210

See Notes to Financial Statements.

38

Class A
Net asset value and redemption price per share
($375,175,585 ÷ 36,563,487 shares of beneficial interest issued and outstanding)	$	10.26
Maximum sales charge (4.00% of offering price)		0.43
Maximum offering price to public	$	10.69
Class B
Net asset value, offering price and redemption price per share
($62,943,625 ÷ 6,130,499 shares of beneficial interest issued and outstanding)	$	10.27
Class C
Net asset value, offering price and redemption price per share
($105,707,947 ÷ 10,297,780 shares of beneficial interest issued and outstanding)	$	10.27
Class Z
Net asset value, offering price and redemption price per share
($180,050,053 ÷ 17,565,863 shares of beneficial interest issued and outstanding)	$	10.25

See Notes to Financial Statements.

Prudential Muni High Income Fund 39

Statement of Operations

Year Ended April 30, 2015

Net Investment Income
Income
Interest income	$	36,214,690
Expenses
Management fee		3,464,760
Distribution fee—Class A		1,101,811
Distribution fee—Class B		330,172
Distribution fee—Class C		977,387
Transfer agent’s fees and expenses (including affiliated expense of $59,500)		439,000
Custodian and accounting fees		120,000
Registration fees		89,000
Shareholders’ reports		53,000
Audit fee		34,000
Legal fees and expenses		28,000
Trustees’ fees		24,000
Insurance expenses		9,000
Miscellaneous		14,982
Total expenses		6,685,112
Less: Custodian fee credit		(1,388	)
Distribution fee waiver—Class A		(161,000	)
Net expenses		6,522,724
Net investment income		29,691,966
Realized And Unrealized Gain (Loss) On Investments
Net realized loss on:
Investment transactions		(885,068	)
Futures transactions		(934,941	)
		(1,820,009	)
Net change in unrealized appreciation (depreciation) on:
Investments		24,861,647
Futures		322,301
		25,183,948
Net gain on investment transactions		23,363,939
Net Increase In Net Assets Resulting From Operations	$	53,055,905

See Notes to Financial Statements.

40

Statement of Changes in Net Assets

	Year Ended April 30,
	2015			2014
Increase (Decrease) in Net Assets
Operations
Net investment income	$	29,691,966		$	31,207,984
Net realized loss on investment transactions		(1,820,009	)		(2,345,802	)
Net change in unrealized appreciation (depreciation) on investments		25,183,948			(42,758,796	)
Net increase (decrease) in net assets resulting from operations		53,055,905			(13,896,614	)
Dividends from net investment income (Note 1)
Class A		(16,637,164	)		(17,539,291	)
Class B		(2,754,984	)		(3,098,075	)
Class C		(3,585,783	)		(3,866,439	)
Class Z		(7,150,094	)		(5,839,929	)
		(30,128,025	)		(30,343,734	)
Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		216,702,918			160,542,586
Net asset value of shares issued in reinvestment of dividends		24,723,007			24,726,708
Cost of shares reacquired		(190,010,504	)		(272,645,831	)
Net increase (decrease) in net assets from Fund share transactions		51,415,421			(87,376,537	)
Total increase (decrease)		74,343,301			(131,616,885	)
Net Assets:
Beginning of year		649,533,909			781,150,794
End of year(a)	$	723,877,210		$	649,533,909
(a) Includes undistributed net investment income of:	$	4,812,960		$	5,805,304

See Notes to Financial Statements.

Prudential Muni High Income Fund 41

Notes to Financial Statements

Prudential Investment Portfolios 4—Prudential Muni High Income Fund (the “Fund”) is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Fund was organized as an unincorporated business trust in Massachusetts on November 3, 1986 and currently consists of one series: the Prudential Muni High Income Fund. The Fund is a diversified fund.

The investment objective of the Fund is to provide the maximum amount of income that is eligible for exclusion from federal income taxes.

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 portfolio 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 three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.

42

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.

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, as these inputs are observable.

Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy, as the adjustment factors are observable. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.

Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.

Fixed income securities traded in the over-the-counter market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices after evaluating observable inputs including, but not limited to yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations, and reported trades. Securities valued using such vendor prices are classified as Level 2 in the fair value hierarchy.

Over-the-counter derivative instruments are generally valued using pricing vendor services, which derive the valuation based on inputs such as underlying asset prices, indices, spreads, interest rates, and exchange rates. These instruments are categorized as Level 2 in the fair value hierarchy.

Prudential Muni High Income Fund 43

Notes to Financial Statements

continued

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.

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

When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

Restricted and Illiquid Securities: Subject to guidelines adopted by the Board, the Fund may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities are valued pursuant to the valuation procedures noted above. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the investment. Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Fund’s Subadviser

44

under the guidelines adopted by the Trustees of the Fund. However, the liquidity of the Fund’s investments in Rule 144A securities could be impaired if trading does not develop or declines.

Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.

The Fund invested in financial futures contracts in order to hedge existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates or market conditions. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. With exchange-traded futures contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default. Financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

Floating-Rate Notes Issued in Conjunction with Securities Held: The Fund may invest in inverse floating rate securities (“inverse floaters”) that pay interest at a rate that varies inversely with short-term interest rates. Certain of these securities may be leveraged, whereby the interest rate varies inversely at a multiple of the change in short-term rates. As interest rates rise, inverse floaters produce less current income. The price of such securities is more volatile than comparable fixed rate securities.

When the Fund enters into agreements to create inverse floaters and floater note securities (also known as Tender Option Bond Transactions), the Fund transfers a fixed rate bond to a broker for cash. At the same time the Fund buys (receives) a residual interest in a trust (the “trust”) set up by the broker, often referred to as an inverse floating rate obligation (inverse floaters). Generally, the broker deposits a fixed

Prudential Muni High Income Fund 45

Notes to Financial Statements

continued

rate bond (the “fixed rate bond”) into the trust with the same CUSIP number as the fixed rate bond sold to the broker by the Fund. The “trust” also issues floating rate notes (“floating rate notes”), which are sold to third parties. The floating rate notes have interest rates that reset weekly. The inverse floater held by the Fund gives the Fund the right (1) to cause the holders of the floating rate notes to tender their notes at par, and (2) to have the broker transfer the fixed rate bond held by the trust to the Fund thereby collapsing the trust. The Fund accounts for the transaction described above as funded leverage by including the fixed rate bond in its Portfolio of Investments, and accounts for the floating rate notes as a liability under the caption “payable for floating rate notes issued” in the Fund’s “Statement of Assets and Liabilities.” Interest expense related to the Fund’s liability in connection with the floating rate notes held by third parties is recorded as incurred. The interest expense is under the caption “interest expenses and fees related to inverse floaters” in the Fund’s “Statement of Operations” and is also included in the Fund’s expense ratio. For the year ended April 30, 2015, the Fund did not enter into any Tender Option Bond Transactions.

The Fund may also invest in inverse floaters without transferring a fixed rate bond into a trust, which is not accounted for as funded leverage. The interest rates on these securities have an inverse relationship to the interest rate of other securities or the value of an index. Changes in interest rates on the other security or index inversely affect the rate paid on the inverse floater, and the inverse floater’s price will be more volatile than that of a fixed-rate bond. Additionally, some of these securities contain a “leverage factor” whereby the interest rate moves inversely by a “factor” to the benchmark rate. Certain interest rate movements and other market factors can substantially affect the liquidity of inverse floating rate notes.

The Fund’s investment policies and restrictions permit investments in inverse floating rate securities. Inverse floaters held by the Fund are securities exempt from registration under Rule 144A of the Securities Act of 1933.

When-Issued/Delayed Delivery Securities: Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. At the time a Fund enters into such transactions, it instructs the custodian to segregate assets with a current value at least equal to the amount of its when-issued or delayed-delivery purchase commitments.

46

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment transactions are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the 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 unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.

Dividends and Distributions: The Fund declares daily dividends from net investment income and payment is made monthly. Distributions of net realized capital gains, if any, are made 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: For federal income tax purposes, the Fund is treated as a separate taxpaying entity. It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

Custody Fee Credits: The Fund has an arrangement with its custodian bank, whereby uninvested monies earn credits which reduce the fees charged by the custodian. Such custody fee credits, if any, are presented as a reduction of gross expenses in the accompanying Statement of Operations.

Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Note 2. Agreements

The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s

Prudential Muni High Income Fund 47

Notes to Financial Statements

continued

performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of the Fund. PI pays for the services of PIM, the cost of compensation of officers for the Fund, occupancy and certain clerical and bookkeeping cost 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 .50% of the Fund’s average daily net assets of up to $1 billion and .45% of the average daily net assets in excess of $1 billion. The effective management fee rate was .50% for the year ended April 30, 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 and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Class A, B and C Plans”), regardless of expenses actually incurred by it. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.

Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, .50% and 1% of the average daily net assets of the Class A, B and C shares, respectively. PIMS contractually agreed to limit such fees to .25% of the average daily net assets of the Class A shares through March 8, 2015. Effective March 9, 2015, the Class A contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets and the .05% contractual 12b-1 fee waiver was terminated.

PIMS has advised the Fund that it received $344,212 for Class A shares in front-end sales charges during the year ended April 30, 2015. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

PIMS has advised the Fund that for the year ended April 30, 2015, it received $1,488, $80,437 and $5,394 in contingent deferred sales charges imposed upon certain redemptions by Class A, Class B and Class C shareholders, respectively.

PI, PIM and PIMS are indirect wholly owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

48

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.

Note 4. Portfolio Securities

Purchases and sales of portfolio securities, other than short-term investments, for the year ended April 30, 2015, were $171,483,560 and $116,526,321, respectively. Although floating rate daily demand notes are shown as short-term investments in the Portfolio of Investments due to frequent reset of coupon rates, they have long-term maturities and are included in these purchases and sales amounts.

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 loss on investment 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 loss on investment transactions. For the year ended April 30, 2015, the adjustments were to decrease undistributed net investment income and decrease accumulated net realized loss on investment transactions by $556,285 due to the difference in the treatment of accreting market discount between financial and tax reporting and other book to tax differences. Net investment income, net realized loss on investment transactions and net assets were not affected by this change.

For the year ended April 30, 2015, the tax character of dividends paid was $29,066,181 of tax-exempt income and $1,061,844 of ordinary income. For the year ended April 30, 2014, the tax character of dividends paid was $30,124,032 of tax-exempt income and $219,702 of ordinary income.

As of April 30, 2015, the components of distributable earnings on a tax basis were $5,685,086 of tax-exempt income (includes timing difference of $413,908 for dividends payable) and 36,654 of ordinary income. This differs from the amount shown on the Statement of Assets and Liabilities primarily due to cumulative timing differences between financial and tax reporting.

Prudential Muni High Income Fund 49

Notes to Financial Statements

continued

The United States federal income tax basis of the Fund’s investments and net unrealized appreciation as of April 30, 2015 were as follows:

Tax Basis	Appreciation	Depreciation	Net Unrealized Appreciation
$670,987,965	$61,239,440	$(17,627,194)	$43,612,246

The difference between book and tax basis was primarily due to the difference between financial and tax reporting with respect to accretion of market discount, deferred losses on wash sales and other adjustments.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), the Fund is permitted to carryforward capital losses realized on or after May 1, 2011 (“post-enactment losses”) for an unlimited period. Post-enactment losses are required to be utilized before the utilization of losses incurred prior to the effective date of the Act. As a result of this ordering rule, capital loss carryforwards related to taxable years ending before April 30, 2012 (“pre-enactment losses”) may have an increased likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses. As of April 30, 2015, the pre and post-enactment losses were approximately:

Post-Enactment Losses:	$	14,770,000
Pre-Enactment Losses:
Expiring 2019	$	19,389,000

Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

50

Note 6. Capital

The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares were sold with a front-end sales charge of up to 4%. All investors who purchase Class A shares in the amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%. The Class A CDSC is waived for purchases by certain retirement and/or benefit plans. Class B shares are sold with a contingent deferred sales charge which declines from 5% to zero depending on the period of time the shares are held. Class B shares will automatically convert to Class A shares approximately seven years after purchase. Class C shares are sold with a contingent deferred sales charge of 1% on shares redeemed within the first 12 months after purchase. A special exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.

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 of each class at $.01 par value per share.

Prudential Muni High Income Fund 51

Notes to Financial Statements

continued

Transactions in shares of beneficial interest were as follows:

Class A	Shares			Amount
Year ended April 30, 2015:
Shares sold		8,985,503		$	91,417,425
Shares issued in reinvestment of dividends and distributions		1,369,132			13,971,284
Shares reacquired		(10,049,411	)		(102,194,983	)
Net increase (decrease) in shares outstanding before conversion		305,224			3,193,726
Shares issued upon conversion from Class B, Class C and Class Z		266,696			2,725,442
Shares reacquired upon conversion into Class Z		(1,702,396	)		(17,165,307	)
Net increase (decrease) in shares outstanding		(1,130,476	)	$	(11,246,139	)
Year ended April 30, 2014:
Shares sold		7,395,693		$	71,476,863
Shares issued in reinvestment of dividends and distributions		1,519,900			14,670,437
Shares reacquired		(13,400,810	)		(129,406,875	)
Net increase (decrease) in shares outstanding before conversion		(4,485,217	)		(43,259,575	)
Shares issued upon conversion from Class B and Class Z		150,758			1,451,047
Shares reacquired upon conversion into Class Z		(211,195	)		(2,029,034	)
Net increase (decrease) in shares outstanding		(4,545,654	)	$	(43,837,562	)
Class B
Year ended April 30, 2015:
Shares sold		175,569		$	1,775,159
Shares issued in reinvestment of dividends and distributions		208,425			2,128,130
Shares reacquired		(888,634	)		(9,051,291	)
Net increase (decrease) in shares outstanding before conversion		(504,640	)		(5,148,002	)
Shares reacquired upon conversion into Class A		(165,089	)		(1,684,932	)
Net increase (decrease) in shares outstanding		(669,729	)	$	(6,832,934	)
Year ended April 30, 2014:
Shares sold		835,302		$	8,180,198
Shares issued in reinvestment of dividends and distributions		247,262			2,386,224
Shares reacquired		(1,560,930	)		(14,991,895	)
Net increase (decrease) in shares outstanding before conversion		(478,366	)		(4,425,473	)
Shares reacquired upon conversion into Class A		(136,099	)		(1,311,328	)
Net increase (decrease) in shares outstanding		(614,465	)	$	(5,736,801	)

52

Class C		Shares			Amount
Year ended April 30, 2015:
Shares sold			2,490,250		$	25,426,865
Shares issued in reinvestment of dividends and distributions			289,278			2,954,110
Shares reacquired			(1,345,647	)		(13,705,982	)
Net increase (decrease) in shares outstanding before conversion			1,433,881			14,674,993
Shares reacquired upon conversion into Class A and Class Z	��		(211,494	)		(2,164,933	)
Net increase (decrease) in shares outstanding			1,222,387		$	12,510,060
Year ended April 30, 2014:
Shares sold			1,383,172		$	13,460,033
Shares issued in reinvestment of dividends and distributions			318,570			3,074,897
Shares reacquired			(4,054,787	)		(39,138,347	)
Net increase (decrease) in shares outstanding before conversion			(2,353,045	)		(22,603,417	)
Shares reacquired upon conversion into Class Z			(114,241	)		(1,106,299	)
Net increase (decrease) in shares outstanding			(2,467,286	)	$	(23,709,716	)
Class Z
Year ended April 30, 2015:
Shares sold			9,615,330		$	98,083,469
Shares issued in reinvestment of dividends and distributions			555,492			5,669,483
Shares reacquired			(6,386,594	)		(65,058,248	)
Net increase (decrease) in shares outstanding before conversion			3,784,228			38,694,704
Shares issued upon conversion from Class A and Class C			1,913,943			19,310,563
Shares reacquired upon conversion into Class A			(99,555	)		(1,020,833	)
Net increase (decrease) in shares outstanding			5,598,616		$	56,984,434
Year ended April 30, 2014:
Shares sold			7,011,971		$	67,425,492
Shares issued in reinvestment of dividends and distributions			476,279			4,595,150
Shares reacquired			(9,257,051	)		(89,108,714	)
Net increase (decrease) in shares outstanding before conversion			(1,768,801	)		(17,088,072	)
Shares issued upon conversion from Class A and Class C			325,803			3,135,333
Shares reacquired upon conversion into Class A			(14,567	)		(139,719	)
Net increase (decrease) in shares outstanding			(1,457,565	)	$	(14,092,458	)

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,

Prudential Muni High Income Fund 53

Notes to Financial Statements

continued

the Funds had another SCA that provided a commitment of $900 million and the Funds paid an annualized commitment fee of .08% of the unused portion of the SCA. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.

The Fund did not utilize the SCA during the year ended April 30, 2015.

Note 8. New Accounting Pronouncement

In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-07 regarding “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share”. The amendments in this update are effective for the Fund for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU No. 2015-07 will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (“NAV”) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. At this time, management is evaluating the implications of ASU No. 2015-07 and its impact on the financial statement disclosures has not yet been determined.

54

Financial Highlights

Class A Shares
	Year Ended April 30,
	2015(a)			2014(a)			2013(a)			2012(a)			2011
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.91			$10.47			$10.02			$9.18			$9.56
Income (loss) from investment operations:
Net investment income		.44			.47			.47			.48			.51
Net realized and unrealized gain (loss) on investment transactions		.36			(.57	)		.44			.83			(.41	)
Total from investment operations		.80			(.10	)		.91			1.31			.10
Less Dividends:
Dividends from net investment income		(.45	)		(.46	)		(.46	)		(.47	)		(.48	)
Net asset value, end of year		$10.26			$9.91			$10.47			$10.02			$9.18
Total Return(b):		8.19%			(.71)%			9.26%			14.61%			1.05%
Ratios/Supplemental Data:
Net assets, end of year (000)		$375,176			$373,610			$442,197			$406,033			$365,513
Average net assets (000)		$376,328			$367,792			$432,410			$383,978			$398,618
Ratios to average net assets(d):
Expenses after waivers and/or expense reimbursement		.87%			.87%			.86%			.87%			.87%
Expenses before waivers and/or expense reimbursement		.91%			.92%			.91%			.92%			.92%
Net investment income		4.36%			4.90%			4.55%			4.95%			5.34%
Portfolio turnover rate(c)		10%			17%			19%			15%			24%

(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) The portfolio turnover rate including variable rate demand notes was 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013, 35% for the year ended April 30, 2012 and 49% for the year ended April 30, 2011.

(d) Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets and the .05% contractual 12b-1 fee waiver was terminated.

See Notes to Financial Statements.

Prudential Muni High Income Fund 55

Financial Highlights

continued

Class B Shares
	Year Ended April 30,
	2015(a)			2014(a)			2013(a)			2012(a)			2011
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.92			$10.48			$10.03			$9.19			$9.57
Income (loss) from investment operations:
Net investment income		.42			.45			.44			.45			.47
Net realized and unrealized gain (loss) on investment transactions		.36			(.57	)		.45			.84			(.39	)
Total from investment operations		.78			(.12	)		.89			1.29			.08
Less Dividends:
Dividends from net investment income		(.43	)		(.44	)		(.44	)		(.45	)		(.46	)
Net asset value, end of year		$10.27			$9.92			$10.48			$10.03			$9.19
Total Return(b):		7.92%			(.95)%			8.99%			14.33%			.82%
Ratios/Supplemental Data:
Net assets, end of year (000)		$62,944			$67,445			$77,670			$54,084			$36,335
Average net assets (000)		$66,035			$68,456			$67,171			$43,752			$35,386
Ratios to average net assets:
Expenses after waivers and/or expense reimbursement		1.12%			1.12%			1.11%			1.12%			1.12%
Expenses before waivers and/or expense reimbursement		1.12%			1.12%			1.11%			1.12%			1.12%
Net investment income		4.11%			4.66%			4.30%			4.69%			5.11%
Portfolio turnover rate(c)		10%			17%			19%			15%			24%

(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) The portfolio turnover rate including variable rate demand notes was 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013, 35% for the year ended April 30, 2012 and 49% for the year ended April 30, 2011.

See Notes to Financial Statements.

56

Class C Shares
	Year Ended April 30,
	2015(a)			2014(a)			2013(a)			2012(a)			2011
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.92			$10.47			$10.03			$9.19			$9.57
Income (loss) from investment operations:
Net investment income		.37			.40			.39			.40			.44
Net realized and unrealized gain (loss) on investment transactions		.35			(.56	)		.44			.84			(.40	)
Total from investment operations		.72			(.16	)		.83			1.24			.04
Less Dividends:
Dividends from net investment income		(.37	)		(.39	)		(.39	)		(.40	)		(.42	)
Net asset value, end of year		$10.27			$9.92			$10.47			$10.03			$9.19
Total Return(b):		7.39%			(1.36)%			8.35%			13.77%			.39%
Ratios/Supplemental Data:
Net assets, end of year (000)		$105,708			$89,990			$120,882			$93,969			$73,273
Average net assets (000)		$97,740			$96,402			$109,555			$82,069			$79,419
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.62%			1.62%			1.61%			1.62%			1.54%
Expenses before waivers and/or expense reimbursement		1.62%			1.62%			1.61%			1.62%			1.62%
Net investment income		3.61%			4.15%			3.80%			4.20%			4.67%
Portfolio turnover rate(d)		10%			17%			19%			15%			24%

(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) The distributor of the Fund had contractually agreed to limit its distribution and service (12b-1) fees to .75% of the average daily net assets of the Class C shares through August 31, 2010.

(d) The portfolio turnover rate including variable rate demand notes was 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013, 35% for the year ended April 30, 2012 and 49% for the year ended April 30, 2011.

See Notes to Financial Statements.

Prudential Muni High Income Fund 57

Financial Highlights

continued

Class Z Shares
	Year Ended April 30,
	2015(a)			2014(a)			2013(a)			2012(a)			2011
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.90			$10.46			$10.01			$9.17			$9.56
Income (loss) from investment operations:
Net investment income		.47			.50			.50			.50			.53
Net realized and unrealized gain (loss) on investment transactions		.36			(.57	)		.44			.84			(.41	)
Total from investment operations		.83			(.07	)		.94			1.34			.12
Less Dividends:
Dividends from net investment income		(.48	)		(.49	)		(.49	)		(.50	)		(.51	)
Net asset value, end of year		$10.25			$9.90			$10.46			$10.01			$9.17
Total Return(b):		8.48%			(.47)%			9.54%			14.92%			1.20%
Ratios/Supplemental Data:
Net assets, end of year (000)		$180,050			$118,489			$140,403			$106,432			$56,323
Average net assets (000)		$152,856			$116,356			$129,038			$84,036			$49,605
Ratios to average net assets:
Expenses after waivers and/or expense reimbursement		.62%			.62%			.61%			.62%			.62%
Expenses before waivers and/or expense reimbursement		.62%			.62%			.61%			.62%			.62%
Net investment income		4.61%			5.15%			4.80%			5.18%			5.62%
Portfolio turnover rate(c)		10%			17%			19%			15%			24%

(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) The portfolio turnover rate including variable rate demand notes was 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013, 35% for the year ended April 30, 2012 and 49% for the year ended April 30, 2011.

See Notes to Financial Statements.

58

Report of Independent Registered Public

Accounting Firm

The Board of Trustees and Shareholders

Prudential Investment Portfolios 4:

We have audited the accompanying statement of assets and liabilities of Prudential Muni High Income Fund (hereafter referred to as the “Fund”), a series of Prudential Investment Portfolios 4, including the portfolio of investments, as of April 30, 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 audit.

We conducted our audit 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 April 30, 2015, by correspondence with the custodian 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 audit provides 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 April 30, 2015, and the results of its operations, the changes in its net assets and the financial highlights for the periods described in the first paragraph above, in conformity with U.S. generally accepted accounting principles.

New York, New York

June 16, 2015

Prudential Muni High Income Fund 59

Tax Information

(Unaudited)

We are advising you that during the fiscal year ended April 30, 2015, the Fund designates the maximum amount allowable per share but not less than the following amounts as exempt-interest dividends in accordance with Section 852(b)(5) of the Internal Revenue Code.

	Per Share
	Class A		Class B		Class C		Class Z
Tax-Exempt Dividends	$	.435	$	.410	$	.359	$	.461

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

For more detailed information regarding your state and local taxes, you should contact your tax adviser or the state/local taxing authorities.

60

Results of Proxy Voting

(Unaudited)

At a special meeting of shareholders held on November 26, 2014, shareholders of Prudential Investment Portfolios 4, which is comprised of Prudential Muni High Income Fund, approved the following proposal.

Proposal: To elect twelve Trustees:

	SHARES VOTED		% VOTED			% OF T/O
Ellen S. Alberding
FOR		58,198,323.065		98.498	%		87.858	%
WITHHELD		888,013.146		1.502	%		1.340	%
Kevin J. Bannon
FOR		58,351,913.628		98.758	%		88.090	%
WITHHELD		734,422.583		1.242	%		1.108	%
Linda W. Bynoe
FOR		58,188,687.189		98.481	%		87.843	%
WITHHELD		897,649.022		1.519	%		135.510	%
Keith F. Hartstein
FOR		58,352,123.611		98.758	%		88.090	%
WITHHELD		734,212.600		1.242	%		1.108	%
Michael S. Hyland
FOR		58,302,506.617		98.674	%		88.015	%
WITHHELD		783,829.594		1.326	%		1.183	%
Stephen P. Munn
FOR		58,330,189.341		98.721	%		88.057	%
WITHHELD		756,146.870		1.279	%		1.141	%
James E. Quinn
FOR		58,207,798.679		98.514	%		87.872	%
WITHHELD		878,537.532		1.486	%		1.326	%
Richard A. Redeker
FOR		58,348,791.632		98.752	%		88.085	%
WITHHELD		737,544.579		1.248	%		1.113	%
Stephen G. Stoneburn
FOR		58,337,942.592		98.734	%		88.069	%
WITHHELD		748,393.619		1.266	%		1.129	%
Grace C. Torres
FOR		58,320,525.454		98.704	%		88.042	%
WITHHELD		765,810.757		1.296	%		1.156	%
Stuart S. Parker
FOR		58,345,301.358		98.746	%		88.080	%
WITHHELD		741,034.853		1.254	%		1.118	%
Scott E. Benjamin
FOR		58,352,123.611		98.758	%		88.090	%
WITHHELD		734,212.600		1.242	%		1.108	%

Prudential Muni High Income Fund 61

Results of Proxy Voting

(Unaudited) continued

The special meeting of shareholders of the Fund held on November 26, 2014, was adjourned to December 3, 2014, and further adjourned to December 10, 2014, and January 9, 2015 to permit further solicitation of proxies on the proposals noted below.

An abstention or a broker non-vote is considered present for purposes of determining a quorum but has the effect of a vote against such matters. At the special meeting of shareholders held on January 9, 2015, insufficient votes were obtained to approve the following proposals:

Proposal: To permit Prudential Investments LLC (PI) to enter into or make material changes to the Fund’s subadvisory agreements with subadvisers that are wholly-owned subsidiaries of PI or a sister company of PI (wholly-owned subadvisers) without shareholder approval.

	SHARES VOTED		% OF VOTED			% OF TOTAL
FOR		14,263,548.30		24.13	%		21.54	%
AGAINST		1,048,415. 614		1.77	%		1.58	%
ABSTAIN		605,891.06		1.03	%		0.91	%
BROKER NON-VOTE		43,198,142.34		73.07	%		65.21	%
TOTAL		59,115,997.314		100.00	%		89.24	%

Proposal: To designate the Fund’s investment objective as a non-fundamental policy of the Fund, meaning that the Fund’s investment objective could be changed with the approval of the Fund’s Board of Directors, but without shareholder approval.

	SHARES VOTED		% OF VOTED			% OF TOTAL
FOR		10,425,831.282		17.637	%		15.739	%
AGAINST		4,799,213.583		8.119	%		7.245	%
ABSTAIN		692,810.108		1.171	%		1.046	%
BROKER NON-VOTE		43,198,142.341		73.073	%		65.213	%
TOTAL		59,115,997.314		100.000	%		89.243	%

62

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: 62	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 (62) Board Member Portfolios Overseen: 62	Managing Director (since April 2008) 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 (62) Board Member Portfolios Overseen: 62	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 Muni High Income 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 (58) Board Member Portfolios Overseen: 62	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 (69) Board Member Portfolios Overseen: 62	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.
Stephen P. Munn (72) Board Member Portfolios Overseen: 62	Lead Director (since 2007) and formerly Chairman (1993-2007) of Carlisle Companies Incorporated (manufacturer of industrial products).	Lead Director (since 2007) of Carlisle Companies Incorporated (manufacturer of industrial products).
James E. Quinn (63) Board Member Portfolios Overseen: 62	Retired; formerly President (2003-2012) and Director (2003-2008), and Vice Chairman and Director (1998-2003), Tiffany & Company (jewelry retailing); Director, Mutual of America Capital Management Corporation (asset management) (since 1996); Director, Hofstra University (since 2008); Vice Chairman, Museum of the City of New York (since 1994).	Director of Deckers Outdoor Corporation (footwear manufacturer) (since 2011).
Richard A. Redeker (71) Board Member & Independent Chair Portfolios Overseen: 62	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.

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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
Stephen G. Stoneburn (71) Board Member Portfolios Overseen: 62	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.

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 (52) Board Member & President Portfolios Overseen: 62	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: 62	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.

Prudential Muni High Income Fund

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
Grace C. Torres* (56) Board Member Portfolios Overseen: 60	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.	None.

* 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 Board Member 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;

Stephen P. Munn, 2008; James Quinn, 2013; 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.

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 (59) 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

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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
Chad A. Earnst (39) 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 (56) 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
Claudia DiGiacomo (40) 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 (52) Deputy Chief Compliance Officer	Vice President, Compliance, Prudential Investments LLC (since April 2004); and Director, Compliance, Prudential Investments LLC (2001-2004).	Since 2008

Prudential Muni High Income Fund

Fund Officers(a)
Name, Address and Age Position with Fund	Principal Occupation(s) During Past Five Years	Length of Service as Fund Officer
Richard W. Kinville (46) 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 (56) 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 (53) Assistant Treasurer	Vice President (since 2011) and Director (2008-2011) within Prudential Mutual Fund Administration.	Since 2014
Kelly A. Coyne (46) Assistant Treasurer	Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010).	Since 2015

^(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, Gateway Center Three, 100 Mulberry Street, Newark, New Jersey 07102-4077.

• 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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n    MAIL	n    TELEPHONE	n    WEBSITE
Gateway Center Three 100 Mulberry Street Newark, NJ 07102	(800) 225-1852	www.prudentialfunds.com

PROXY VOTING

The Board of 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 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.

TRUSTEES

Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stephen P. Munn • Stuart S. Parker • James E. Quinn • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Amanda S. Ryan, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer

MANAGER	Prudential Investments LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
INVESTMENT SUBADVISER	Prudential Investment Management, Inc.	Gateway Center Two 100 Mulberry Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
CUSTODIAN	The Bank of New York Mellon	One Wall Street New York, NY 10286
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 9658 Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154
FUND COUNSEL	Willkie Farr & Gallagher LLP	787 Seventh Avenue New York, NY 10019

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

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 Muni High Income Fund, Prudential Investments, Attn: Board of Trustees, 100 Mulberry Street, Gateway Center Three, 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 MUNI HIGH INCOME FUND

SHARE CLASS	A	B	C	Z
NASDAQ	PRHAX	PMHYX	PHICX	PHIZX
CUSIP	74440M104	74440M203	74440M302	74440M401

MF133E    0278655-00001-00

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. Stephen P. Munn, 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 April 30, 2015 and April 30, 2014, KPMG LLP (“KPMG”), the Registrant’s principal accountant, billed the Registrant $33,475 and $33,475, 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

None.

(c) Tax Fees

None.

(d) All Other Fees

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 $50,000.

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 $50,000.

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 $50,000. 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 –

Not applicable.

(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

Not applicable to Registrant for the fiscal years 2015 and 2014. 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 2015 and 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 4

By:	/s/ Deborah A. Docs
	Deborah A. Docs
	Secretary
Date:	June 18, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Stuart S. Parker
	Stuart S. Parker
	President and Principal Executive Officer
Date:	June 18, 2015

By:	/s/ M. Sadiq Peshimam
	M. Sadiq Peshimam
	Treasurer and Principal Financial and Accounting Officer
Date:	June 18, 2015