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: | 655 Broad Street, 17th Floor | |
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Deborah A. Docs | |
655 Broad Street, 17th Floor | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 4/30/2017 | |
Date of reporting period: | 10/31/2016 |
Item 1 – Reports to Stockholders
PRUDENTIAL INVESTMENTS, A PGIM BUSINESS | MUTUAL FUNDS
Prudential Muni High Income Fund
SEMIANNUAL REPORT | OCTOBER 31, 2016 |
To enroll in e-delivery, go to prudentialfunds.com/edelivery
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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.
The accompanying financial statements as of October 31, 2016, were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2016 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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Letter from the President
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 October 31, 2016.
During the reporting period, the US economy experienced modest growth.
Labor markets were healthy, and consumer confidence rose. The housing market brightened somewhat, as momentum continued for the new home market. The Federal Reserve kept interest rates unchanged at its September meeting, but pointed to the strong possibility of a rate hike in December. Internationally, concerns over Brexit—the term used to represent Britain’s decision to leave the European Union—remained in the spotlight.
Equity markets in the US were firmly in positive territory at the end of the reporting period, as US stocks posted strong gains. European stocks struggled earlier, but found some traction in the third quarter. Asian markets also advanced, and emerging markets rose sharply.
US fixed income markets experienced overall gains. High yield bonds posted very strong results. Corporate bonds and Treasuries also performed well. Accommodative monetary policy by central banks helped lift global bond markets.
Given the uncertainty in today’s investment environment, we believe that active professional portfolio management offers a potential advantage. Active managers often have the knowledge and flexibility to find the best investment opportunities in the most challenging markets.
Even so, it’s best if investment decisions are based on your long-term goals rather than on short-term market and economic developments. We also encourage you to work with an experienced financial advisor who can help you set goals, determine your tolerance for risk, build a diversified plan that’s right for you, and make adjustments when necessary.
By having Prudential Investments help you address your goals, you gain the advantage of asset managers that also manage money for many major corporations and pension funds around the world. That means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.
Thank you for choosing our family of funds.
Sincerely,
Stuart Parker, President
Prudential Muni High Income Fund
December 15, 2016
Prudential Muni High Income Fund | 3 |
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 10/31/16 | ||||||||||||
Six Months (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||||||
Class A | 1.58 | 6.07 | 35.87 | 59.89 | ||||||||
Class B | 1.56 | 5.82 | 34.37 | 56.22 | ||||||||
Class C | 1.21 | 5.20 | 30.96 | 50.01 | ||||||||
Class Z | 1.73 | 6.38 | 37.69 | 64.21 | ||||||||
Bloomberg Barclays Municipal Bond Index | 0.49 | 4.06 | 23.66 | 56.37 | ||||||||
Bloomberg Barclays Municipal High Yield Bond Index | 4.49 | 8.62 | 41.14 | 57.74 | ||||||||
Bloomberg Barclays Municipal Bond Index (50%) / Bloomberg Barclays Municipal High Yield Bond Index (50%) | 2.48 | 6.32 | 32.23 | 57.83 | ||||||||
Lipper High Yield Municipal Debt Funds Average | 1.93 | 6.60 | 37.13 | 46.74 | ||||||||
Average Annual Total Returns (With Sales Charges) as of 9/30/16 | ||||||||||||
One Year (%) | Five Years (%) | Ten Years (%) | ||||||||||
Class A | 3.76 | 5.67 | 4.60 | |||||||||
Class B | 2.82 | 6.09 | 4.77 | |||||||||
Class C | 6.30 | 5.73 | 4.36 | |||||||||
Class Z | 8.40 | 6.81 | 5.30 | |||||||||
Bloomberg Barclays Municipal Bond Index | 5.58 | 4.48 | 4.75 | |||||||||
Bloomberg Barclays Municipal High Yield Bond Index | 11.32 | 7.36 | 4.89 | |||||||||
Bloomberg Barclays Municipal Bond Index (50%) / Bloomberg Barclays Municipal High Yield Bond Index (50%) | 8.42 | 5.93 | 4.87 | |||||||||
Lipper High Yield Municipal Debt Funds Average | 8.67 | 6.70 | 4.12 |
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Source: Prudential Investments LLC and Lipper Inc.
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
Bloomberg Barclays Municipal Bond Index—The Bloomberg 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.
Bloomberg Barclays Municipal High Yield Bond Index—The Bloomberg 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.
Bloomberg Barclays Municipal Bond Index (50%) / Bloomberg Barclays Municipal High Yield Bond Index (50%)—This is a custom blend of the Bloomberg Barclays Municipal Bond Index (50%) and the Bloomberg Barclays Municipal High Yield Bond Index (50%).
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.
Prudential Muni High Income Fund | 5 |
Your Fund’s Performance (continued)
Distribution and Yields as of 10/31/16 | ||||||||||||||
Total Distributions Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | Taxable Equivalent 30-Day Yield*** at Federal Tax Rates of | SEC 30-Day Unsubsidized Yield** (%) | Taxable Equivalent 30-Day Unsubsidized Yield*** at Federal Tax Rates of | ||||||||||
39.60(%) | 43.40(%) | 39.60(%) | 43.40(%) | |||||||||||
Class A | 0.20 | 2.38 | 3.94 | 4.20 | 2.38 | 3.94 | 4.20 | |||||||
Class B | 0.18 | 2.22 | 3.68 | 3.92 | 2.22 | 3.68 | 3.92 | |||||||
Class C | 0.16 | 1.72 | 2.85 | 3.04 | 1.72 | 2.85 | 3.04 | |||||||
Class Z | 0.21 | 2.73 | 4.52 | 4.82 | 2.73 | 4.52 | 4.82 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements).
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses.
***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.
Credit Quality expressed as a percentage of total investments as of 10/31/16 (%) | ||||
AAA | 7.0 | |||
AA | 9.5 | |||
A | 18.7 | |||
BBB | 30.7 | |||
BB | 10.0 | |||
B | 11.7 | |||
CCC | 1.4 | |||
CC | 0.4 | |||
Not Rated | 12.1 | |||
Cash/Cash Equivalents | –1.5 | |||
Total Investments | 100.0 |
Source: PGIM, Inc.
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as 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, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by a NRSRO. Credit ratings are subject to change. Values may not sum to 100.0% due to rounding.
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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 May 1, 2016, at the beginning of the period, and held through the six-month period ended October 31, 2016. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of Prudential Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your
Prudential Muni High Income Fund | 7 |
Fees and Expenses (continued)
Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Prudential Muni High Income Fund | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,015.80 | 0.86 | % | $ | 4.37 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.87 | 0.86 | % | $ | 4.38 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,015.60 | 1.11 | % | $ | 5.64 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.61 | 1.11 | % | $ | 5.65 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,012.10 | 1.61 | % | $ | 8.17 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.09 | 1.61 | % | $ | 8.19 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,017.30 | 0.61 | % | $ | 3.10 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.13 | 0.61 | % | $ | 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 184 days in the six-month period ended October 31, 2016, and divided by the 365 days in the Fund’s fiscal year ending April 30, 2017 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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The Fund’s annualized expense ratios for the six-month period ended October 31, 2016, are as follows:
Class | Gross Operating Expenses (%) | Net Operating Expenses (%) | ||
A | 0.86 | 0.86 | ||
B | 1.11 | 1.11 | ||
C | 1.61 | 1.61 | ||
Z | 0.61 | 0.61 |
Net operating expenses shown above reflect any fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.
Prudential Muni High Income Fund | 9 |
Portfolio of Investments (unaudited)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS 99.9% |
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Alabama 1.1% |
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Jefferson Cnty. Sewer Rev., Sr. Lien, Warrants, Ser. A, AGM, Rfdg. | 5.000 | % | 10/01/44 | 500 | $ | 569,835 | ||||||||||
Jefferson Cnty. Sewer Rev., Sr. Lien, Warrants, Ser. A, AGM, Rfdg. | 5.250 | 10/01/48 | 500 | 574,870 | ||||||||||||
Lower Alabama Gas Dist. Rev., Ser. A | 5.000 | 09/01/46 | 4,500 | 5,655,780 | ||||||||||||
Selma Indl. Dev. Brd. Rev., Gulf Opp. Zone, Intl. Paper Co., Ser. A | 5.800 | 05/01/34 | 1,000 | 1,136,550 | ||||||||||||
Selma Indl. Dev. Brd. Rev., Gulf Opp. Zone, Intl. Paper Co., Ser. A | 6.250 | 11/01/33 | 1,750 | 1,990,135 | ||||||||||||
|
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9,927,170 | ||||||||||||||||
Arizona 3.5% |
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La Paz Cnty. Indl. Dev. Auth. Rev., Solutions-Harmony Pub. Chrt. Sch., Ser. A, 144A | 5.000 | 02/15/46 | 750 | 810,082 | ||||||||||||
Maricopa Cnty. Indl. Dev. Auth. Rev., Horizon Cmnty. Learning Ctr., Rfdg. | 5.000 | 07/01/35 | 2,000 | 2,152,280 | ||||||||||||
Maricopa Cnty. Indl. Dev. Auth. Rev., Paradise Schs. Projs. Parago, Rfdg., 144A | 5.000 | 07/01/47 | 1,000 | 1,050,730 | ||||||||||||
Maricopa Cnty. Indl. Dev. Auth. Rev., Reid Traditional Schs. Projs. | 5.000 | 07/01/47 | 1,000 | 1,085,310 | ||||||||||||
Maricopa Cnty. Poll. Ctrl. Corp. Rev., El Paso Elec. Co., Ser. B | 7.250 | 04/01/40 | 1,500 | 1,701,255 | ||||||||||||
Phoenix City Indl. Dev. Auth. Rev., Basis Schs. Projs., Ser. A, Rfdg., 144A | 5.000 | 07/01/46 | 1,000 | 1,057,560 | ||||||||||||
Phoenix City Indl. Dev. Auth. Rev., Basis Schs., Rfdg., 144A | 5.000 | 07/01/45 | 1,000 | 1,057,560 | ||||||||||||
Phoenix City Indl. Dev. Auth. Rev., Great Hearts Academies Proj. | 5.000 | 07/01/44 | 2,250 | 2,473,537 | ||||||||||||
Pima Cnty. Indl. Dev. Auth. Rev., Tucson Elec. Pwr. Co, Rfdg. | 4.000 | 09/01/29 | 3,000 | 3,252,840 | ||||||||||||
Pinal Cnty. Indl. Dev. Auth., Correct. Facs. Rev., Florence West Prison Proj., Ser. A, ACA | 5.250 | 10/01/19 | 3,135 | 3,142,430 | ||||||||||||
Salt Verde Fin. Corp. Gas Rev., Sr. Bonds | 5.000 | 12/01/32 | 4,590 | 5,532,052 | ||||||||||||
Salt Verde Fin. Corp. Gas Rev., Sr. Bonds | 5.000 | 12/01/37 | 6,060 | 7,265,698 | ||||||||||||
Tempe AZ Indl. Dev. Auth. Rev., Friendship Vlg., Ser. A, Rfdg. | 6.250 | 12/01/42 | 1,000 | 1,094,830 | ||||||||||||
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31,676,164 | ||||||||||||||||
California 10.5% |
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ABAG Fin. Auth. for Nonprofit Corp. Rev., Episcopal Senior Cmnty., Rfdg. | 6.125 | 07/01/41 | 775 | 878,974 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 11 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
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California (cont’d.) |
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California Cnty. Tob. Secur. Agcy. Rev., Conv., CABS (Converted to Fixed on 12/01/10) | 5.250 | % | 06/01/21 | 2,855 | $ | 2,902,307 | ||||||||||
California Cnty. Tob. Secur. Agcy. Rev., Conv., CABS, Ser. B (Converted to Fixed on 12/01/08) | 5.100 | 06/01/28 | 1,750 | 1,752,205 | ||||||||||||
California Hlth. Facs. Fin. Auth. Rev., St. Joseph Hlth. Sys., Ser. A | 5.750 | 07/01/39 | 1,770 | 1,967,851 | ||||||||||||
California Hlth. Facs. Fin. Auth. Rev., Stanford Hosp., Ser. A-3, Rfdg. | 5.500 | 11/15/40 | 750 | 885,472 | ||||||||||||
California Mun. Fin. Auth. Rev., American Heritage Ed., Ser. A, Rfdg. | 5.000 | 06/01/46 | 750 | 841,553 | ||||||||||||
California Mun. Fin. Auth. Rev., Palmdale Aerospace Academy Proj., 144A | 5.000 | 07/01/46 | 1,000 | 1,063,170 | ||||||||||||
California Poll. Ctrl. Fin. Auth. Rev., Wtr. Facs., Amer. Wtr. Cap. Corp. Proj., 144A | 5.250 | 08/01/40 | 500 | 556,720 | ||||||||||||
California St., GO, Var. Purp. | 5.500 | 11/01/39 | 1,000 | 1,123,910 | ||||||||||||
California St., GO, Var. Purp. | 6.000 | 04/01/38 | 3,500 | 3,904,320 | ||||||||||||
California St., GO, Var. Purp. | 6.000 | 11/01/39 | 1,500 | 1,712,160 | ||||||||||||
California St. Infrast & Econ. Dev. Bank Rev., Academy Motion Picture Art, Rfdg. | 4.000 | 11/01/45 | 1,250 | 1,327,587 | ||||||||||||
California St. Pub. Wks. Brd. Lease Rev., Judicial Council Proj., Ser. D | 5.000 | 12/01/31 | 1,000 | 1,160,040 | ||||||||||||
California St. Pub. Wks. Brd. Lease Rev., Various Cap. Proj., Ser. G-1 | 5.750 | 10/01/30 | 750 | 844,575 | ||||||||||||
California St. Pub. Wks. Brd. Lease Rev., Various Cap. Proj., Ser. I-1 (Prerefunded 11/01/19)(a) | 6.375 | 11/01/34 | 750 | 869,490 | ||||||||||||
California St. Sch. Fin. Auth. Chrt. Sch. Rev., Alliance Clg.-Ready Pub. Schs., Ser. A, 144A | 5.000 | 07/01/45 | 750 | 845,993 | ||||||||||||
California St. Sch. Fin. Auth. Chrt. Sch. Rev., Alliance Clg.-Ready Pub. Schs., Ser. A, 144A | 5.000 | 07/01/51 | 1,000 | 1,120,780 | ||||||||||||
California St. Sch. Fin. Auth. Chrt. Sch. Rev., Kipp LA Proj., Ser. A, 144A | 5.000 | 07/01/45 | 650 | 725,407 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., 899 Charleston Proj., Ser. A, Rfdg. | 5.250 | 11/01/44 | 750 | 828,225 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Beverly Cmnty. Hosp. Asst. | 5.000 | 02/01/45 | 1,500 | 1,673,040 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Cottage Hlth. Oblig. Grp., Rfdg. | 5.000 | 11/01/40 | 2,000 | 2,208,460 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Loma Linda Univ. Med. Ctr., Ser. A | 5.250 | 12/01/44 | 1,000 | 1,104,830 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Loma Linda Univ. Med. Ctr., Ser. A, 144A | 5.000 | 12/01/46 | 5,000 | 5,511,800 | ||||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Loma Linda Univ. Med. Ctr., Ser. A, 144A | 5.250 | 12/01/56 | 3,500 | 3,904,635 |
See Notes to Financial Statements.
12 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
California (cont’d.) |
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California Statewide Cmntys. Dev. Auth. Rev., Sch. Facs., Aspire Pub. Sch. (Prerefunded 01/01/19)(a) | 6.000 | % | 07/01/30 | 995 | $ | 1,101,127 | ||||||||||
California Statewide Cmntys. Dev. Auth. Rev., Sr. Living Southn. Calif. Presbyterian Homes, 144A | 7.250 | 11/15/41 | 500 | 570,495 | ||||||||||||
Fontana Spl. Tax Cmnty. Facs., Dist. 22, | 5.000 | 09/01/34 | 500 | 562,270 | ||||||||||||
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., 1st Sub., Ser. B, CABS | 7.680 | (b) | 06/01/47 | 10,000 | 996,600 | |||||||||||
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., Sr., Ser. A-1 | 4.500 | 06/01/27 | 8,365 | 8,383,068 | ||||||||||||
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., Sr., Ser. A-1 | 5.750 | 06/01/47 | 11,765 | 11,582,878 | ||||||||||||
Golden St. Tob. Secur. Corp., Tob. Settlement Rev., Asset Bkd., Sr., Ser. A-2, CABS (Converted to Fixed on 12/01/12) | 5.300 | 06/01/37 | 5,000 | 4,965,700 | ||||||||||||
Inland Valley CA Dev. Agcy. Tax Alloc., Ser. A, Rfdg. | 5.000 | 09/01/44 | 1,000 | 1,127,930 | ||||||||||||
Lincoln CA Pub. Fing., Auth. Spl. Assmt., Twelve Bridges Sub., Ser. B | 6.000 | 09/02/27 | 1,000 | 1,161,410 | ||||||||||||
Long Beach CA Bond Fin. Auth. Nat. Gas Pur. | 5.000 | 11/15/35 | 3,510 | 4,359,841 | ||||||||||||
Long Beach CA Bond Fin. Auth. Nat. Gas Pur. | 5.500 | 11/15/37 | 650 | 843,564 | ||||||||||||
M-S-R Energy Auth. Calif. Rev., Ser. A | 6.500 | 11/01/39 | 2,060 | 2,864,533 | ||||||||||||
M-S-R Energy Auth. Calif. Rev., Ser. A | 7.000 | 11/01/34 | 1,650 | 2,410,798 | ||||||||||||
Palomar Pomerado Healthcare Dist. Calif., COP | 6.000 | 11/01/41 | 1,800 | 2,015,298 | ||||||||||||
Port of Oakland Rev., Ser. O, AMT, Rfdg. | 5.125 | 05/01/31 | 1,000 | 1,124,670 | ||||||||||||
Riverside Cnty. CA Pub. Fing. Auth. Rev., Capital Facs. Proj. | 5.250 | 11/01/45 | 1,000 | 1,192,840 | ||||||||||||
Riverside Cnty. CA Redev. Agcy. Tax. Alloc. Intst. 215 Corridor, Ser. E | 6.500 | 10/01/40 | 2,000 | 2,361,180 | ||||||||||||
San Buenaventura CA Rev., Cmnty. Mem. Hlth. Sys. | 7.500 | 12/01/41 | 1,000 | 1,211,190 | ||||||||||||
San Buenaventura CA Rev., Cmnty. Mem. Hlth. Sys. | 8.000 | 12/01/26 | 500 | 644,770 | ||||||||||||
San Francisco City & Cnty. Arpt. Comm. Rev., Ser. C, AMT, Rfdg. | 5.000 | 05/01/25 | 1,000 | 1,151,930 | ||||||||||||
Santa Margarita CA Wtr. Dist. Spl. Tax Cmty. Facs., Ser. 2013-1, Village of Sendero | 5.625 | 09/01/36 | 675 | 780,401 | ||||||||||||
South Bayside CA Wste. Mgmt. Auth., Sol. Wste. Enterprise Rev., Shoreway Environmental, Ser. A | 6.000 | 09/01/36 | 500 | 564,355 | ||||||||||||
Tob. Secur. Auth. Northern Calif. Rev., Asset Bkd. Bonds, Ser. A | 4.750 | 06/01/23 | 3,945 | 3,973,325 | ||||||||||||
|
| |||||||||||||||
95,663,677 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 13 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Colorado 3.3% |
| |||||||||||||||
Colorado Edl. & Cultural Facs. Auth. Rev., Impt., Chrt. Sch. Univ. LA, Rfdg., 144A | 5.000 | % | 12/15/45 | 1,000 | $ | 1,045,400 | ||||||||||
Colorado Edl. & Cultural Facs. Auth. Rev., Lighthouse Building Corp., Rfdg. | 5.000 | 11/01/44 | 885 | 921,692 | ||||||||||||
Colorado Edl. & Cultural Facs. Auth. Rev., Rfdg. & Impt., Chrt. Sch. Skyview Academy Proj., 144A | 5.375 | 07/01/44 | 1,350 | 1,456,191 | ||||||||||||
Colorado Edl. & Cultural Facs. Auth. Rev., Windsor Chrt. Sch., 144A | 5.000 | 09/01/46 | 1,390 | 1,398,993 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Christian Living Cmntys. Proj., Rfdg. | 5.000 | 01/01/37 | 1,250 | 1,375,300 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Christian Living Cmntys. Proj., Rfdg. | 5.250 | 01/01/37 | 550 | 583,435 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Christian Living Cmntys. Proj., Ser. A, Rfdg. | 5.750 | 01/01/37 | 1,500 | 1,512,315 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Covenant Retirement Cmntys., Rfdg. | 5.000 | 12/01/35 | 1,250 | 1,399,750 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Parkview Med. Ctr., Ser. B, Rfdg. | 4.000 | 09/01/34 | 1,500 | 1,583,370 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Vail Valley Med. Ctr. Proj. | 4.000 | 01/15/45 | 2,500 | 2,605,550 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Valley View Assn. Proj. | 5.125 | 05/15/37 | 1,240 | 1,263,014 | ||||||||||||
Colorado Hlth. Facs. Auth. Rev., Valley View Assn. Proj. | 5.250 | 05/15/42 | 2,500 | 2,547,525 | ||||||||||||
Denver Convention Ctr. Htl. Auth. Rev., Sr. Bonds, Rfdg. | 5.000 | 12/01/40 | 500 | 560,890 | ||||||||||||
E-470 Pub. Hwy. Auth. Rev., Ser. C, Rfdg. | 5.375 | 09/01/26 | 1,000 | 1,115,620 | ||||||||||||
Park Creek Met. Dist. Ltd. Ppty. Tax Alloc., Senior Lmt. Prop. TA., Rfdg. | 5.000 | 12/01/45 | 1,500 | 1,686,165 | ||||||||||||
Plaza Co. Met. Dist. 1 Tax Alloc., Rfdg., 144A | 5.000 | 12/01/40 | 1,000 | 1,049,200 | ||||||||||||
Pub. Auth. Energy Nat. Gas Pur. Rev. | 6.500 | 11/15/38 | 5,505 | 7,710,083 | ||||||||||||
|
| |||||||||||||||
29,814,493 | ||||||||||||||||
Connecticut 0.4% |
| |||||||||||||||
Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Western Conn. Hlth., Ser. M | 5.375 | 07/01/41 | 1,250 | 1,394,475 | ||||||||||||
Harbor Point Infrastructure Impt. Dist. Tax Alloc., Harbor Point Proj., Ser. A | 7.875 | 04/01/39 | 2,000 | 2,316,060 | ||||||||||||
|
| |||||||||||||||
3,710,535 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Delaware 0.3% |
| |||||||||||||||
Delaware St. Econ. Dev. Auth. Rev., Aspira Chrt. Sch., Ser. A | 5.000 | % | 06/01/46 | 1,000 | $ | 1,062,720 | ||||||||||
Delaware St. Econ. Dev. Auth. Rev., Newark Chrt. Sch., Inc., Ser. A, Rfdg. | 5.000 | 09/01/46 | 500 | 569,510 | ||||||||||||
Delaware St. Hlth. Facs. Auth. Rev., Nanticoke Mem. Hosp., Nanticoke Memorial Hosp., Rfdg. | 5.000 | 07/01/32 | 1,375 | 1,480,531 | ||||||||||||
|
| |||||||||||||||
3,112,761 | ||||||||||||||||
District of Columbia 1.2% |
| |||||||||||||||
Dist. of Columbia, Rev., Friendship Pub. Chrt. Sch. | 5.000 | 06/01/42 | 3,500 | 3,855,810 | ||||||||||||
Dist. of Columbia, Rev., Gallaudet Univ. | 5.500 | 04/01/34 | 400 | 457,072 | ||||||||||||
Dist. of Columbia, Rev., Kipp Chrt. Sch., Rfdg. | 6.000 | 07/01/43 | 850 | 1,012,052 | ||||||||||||
Dist. of Columbia, Rev., Kipp Chrt. Sch., Rfdg. | 6.000 | 07/01/48 | 725 | 860,800 | ||||||||||||
Metropolitan Washington D.C. Arpt. Auth. Sys. Rev., Dulles Toll Rd., Ser. A, Rfdg. | 5.000 | 10/01/53 | 2,500 | 2,777,000 | ||||||||||||
Metropolitan Washington D.C. Arpt. Auth. Sys. Rev., Ser. A, AMT | 5.250 | 10/01/27 | 1,500 | 1,601,160 | ||||||||||||
|
| |||||||||||||||
10,563,894 | ||||||||||||||||
Florida 7.7% |
| |||||||||||||||
Boggy Creek Impt. Dist. Spl. Assmt., Ser. 2013, Rfdg. | 5.125 | 05/01/43 | 2,825 | 2,957,097 | ||||||||||||
Broward Cnty. FL Arpt. Rev., Ser. A, AMT | 5.250 | 10/01/43 | 1,500 | 1,699,350 | ||||||||||||
Capital Tr. Agcy. Rev., Air Cargo, Aero Miami FX LLC, Sr. Lien, Ser. A, Rfdg. | 5.350 | 07/01/29 | 2,125 | 2,293,852 | ||||||||||||
Citizens Ppty. Ins. Corp. Rev., Sr. Sec’d., Coastal, Ser. A-1 | 5.000 | 06/01/19 | 1,250 | 1,373,588 | ||||||||||||
Citizens Ppty. Ins. Corp. Rev., Sr. Sec’d., Ser. A-1 | 5.000 | 06/01/22 | 1,000 | 1,184,130 | ||||||||||||
Cityplace CDD Spl. Assmt., Rfdg. | 5.000 | 05/01/26 | 1,000 | 1,157,110 | ||||||||||||
Collier Cnty. Indl. Dev. Auth. Rev., Arlington of Naples Proj., Ser. A, Rfdg., 144A | 8.125 | 05/15/44 | 2,000 | 2,371,380 | ||||||||||||
Davie Edl. Facs. Rev., Nova Southeastern Univ. | 5.625 | 04/01/43 | 500 | 578,605 | ||||||||||||
Davie Edl. Facs. Rev., Nova Southeastern Univ. | 6.000 | 04/01/42 | 1,000 | 1,184,150 | ||||||||||||
Florida Dev. Fin. Corp. Edl. Facs. Rev., Bay Area Chrt. Fndtn., Ser. A | 7.750 | 06/15/42 | 2,000 | 2,235,280 | ||||||||||||
Florida Dev. Fin. Corp. Edl. Facs. Rev., Renaissance Chrt. Sch., Ser. A | 6.000 | 09/15/40 | 1,750 | 1,828,942 | ||||||||||||
Greater Orlando Aviation Auth. Orlando Arpt. Facs. Rev., Spl. Purp. - JetBlue Airways Corp. Proj., AMT, Rfdg. | 5.000 | 11/15/26 | 500 | 538,795 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 15 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Florida (cont’d.) |
| |||||||||||||||
Greater Orlando Aviation Auth. Orlando Arpt. Facs. Rev., Spl. Purp. - JetBlue Airways Corp. Proj., AMT, Rfdg. | 5.000 | % | 11/15/36 | 4,700 | $ | 4,980,496 | ||||||||||
Halifax Hosp. Med. Ctr. Rev., Rfdg. | 4.000 | 06/01/46 | 2,000 | 2,049,620 | ||||||||||||
Hillsborough Cnty. Indl. Dev. Auth. Rev., Hlth. Facs., Univ. Cmnty. Hosp., Ser. B, Rmkt. (Prerefunded 08/15/19)(a) | 8.000 | 08/15/32 | 1,000 | 1,199,750 | ||||||||||||
Hillsborough Cnty. Indl. Dev. Auth. Rev., Tampa Electric, Series A, Rmkt., Rfdg. | 5.650 | 05/15/18 | 1,000 | 1,066,100 | ||||||||||||
Indigo Cmnty. Dev. Dist. Cap. Impvt. Spl. Assmt.(c)(d)(e) | 5.750 | 05/01/36 | 935 | 448,800 | ||||||||||||
Jacksonville Econ. Dev. Rev., Gerdau Ameristeel U.S., Inc., AMT | 5.300 | 05/01/37 | 3,000 | 2,893,200 | ||||||||||||
Lakewood Ranch Stewardship Dist., Spl. Assmt. | 4.875 | 05/01/45 | 1,000 | 1,032,310 | ||||||||||||
Lakewood Ranch Stewardship Dist., Spl. Assmt., Vlg. Lakewood Ranch S. Proj. | 4.250 | 05/01/26 | 250 | 255,078 | ||||||||||||
Lakewood Ranch Stewardship Dist., Spl. Assmt., Vlg. Lakewood Ranch S. Proj. | 5.125 | 05/01/46 | 1,500 | 1,554,105 | ||||||||||||
Martin Cnty. Indl. Dev. Auth. Rev., Indiantown Cogeneration Proj., AMT, Rfdg. | 3.950 | 12/15/21 | 1,750 | 1,826,492 | ||||||||||||
Martin Cnty. Indl. Dev. Auth. Rev., Indiantown Cogeneration Proj., AMT, Rfdg. | 4.200 | 12/15/25 | 1,000 | 1,043,350 | ||||||||||||
Midtown Miami Cmnty. Dev. Dist. Spl. Assmt., Spl. Assmt., Pkg. Garage Proj., Ser. A, Rfdg. | 5.000 | 05/01/37 | 1,980 | 2,102,582 | ||||||||||||
North Sumter Cnty. Util. Dependent Dist., Solid Wste. Rev. | 5.000 | 10/01/42 | 2,000 | 2,155,700 | ||||||||||||
North Sumter Cnty. Util. Dependent Dist., Util. Rev. | 5.750 | 10/01/43 | 1,500 | 1,687,485 | ||||||||||||
Orange Cnty. Hlth. Facs. Auth. Rev., Orlando Hlth. Inc., Ser B., Rfdg. | 4.000 | 10/01/45 | 1,000 | 1,039,860 | ||||||||||||
Palm Beach Hlth. Facs. Auth. Rev., BRRH Corp. Oblig. Grp., Rfdg. | 5.000 | 12/01/31 | 500 | 568,985 | ||||||||||||
Palm Beach Hlth. Facs. Auth. Rev., Sinai Residences Boca Raton Proj., Ser. A, Rfdg. | 7.500 | 06/01/49 | 1,000 | 1,219,250 | ||||||||||||
Sarasota Cnty. Fla. Pub. Hosp. Dist. Hosp. Rev., Sarasota Mem. Hosp. Proj., Ser. A | 5.625 | 07/01/39 | 1,000 | 1,092,830 | ||||||||||||
South Lake Cnty. Hosp. Dist. Rev., South Lake Hosp., Rfdg. | 5.250 | 10/01/34 | 1,250 | 1,352,913 | ||||||||||||
South Lake Cnty. Hosp. Dist. Rev., South Lake Hosp., Ser. A | 6.250 | 04/01/39 | 1,910 | 2,111,047 | ||||||||||||
St. Johns Cnty. Indl. Dev. Auth. Rev., Presbyterian Retirement, Ser. A, Rfdg. | 6.000 | 08/01/45 | 1,000 | 1,125,640 | ||||||||||||
St. Petersburg Hlth. Facs. Auth. Rev., All Children’s Hosp., Ser. A (Prerefunded 11/15/19)(a) | 6.500 | 11/15/39 | 1,500 | 1,743,135 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Florida (cont’d.) |
| |||||||||||||||
Tallahassee Hlth. Facs. Mem. Rev. | 5.000 | % | 12/01/55 | 1,000 | $ | 1,119,950 | ||||||||||
Village Cmnty. Dev. Dist. No. 7. Fla. Spl. Assmt., Rfdg. | 4.000 | 05/01/36 | 1,995 | 2,038,750 | ||||||||||||
Village Cmnty. Dev. Dist. No. 8. Fla. Spl. Assmt., Phase II, Rfdg. | 6.125 | 05/01/39 | 2,215 | 2,533,030 | ||||||||||||
Village Cmnty. Dev. Dist. No. 9. Fla. Spl. Assmt. | 7.000 | 05/01/41 | 810 | 971,287 | ||||||||||||
Village Cmnty. Dev. Dist. No. 9. Fla. Spl. Assmt., Rfdg. | 5.500 | 05/01/42 | 2,190 | 2,494,870 | ||||||||||||
Village Cmnty. Dev. Dist. No.10. Fla. Spl. Assmt. | 5.125 | 05/01/43 | 1,155 | 1,279,451 | ||||||||||||
Village Cmnty. Dev. Dist. No.10. Fla. Spl. Assmt. | 6.000 | 05/01/44 | 1,000 | 1,175,710 | ||||||||||||
Village Cmnty. Dev. Dist. No.11. Fla. Spl. Assmt. | 4.500 | 05/01/45 | 1,485 | 1,531,421 | ||||||||||||
Village Cmnty. Dev. Dist. No.12. Fla. Spl. Assmt. | 3.875 | 05/01/47 | 3,000 | 2,872,530 | ||||||||||||
|
| |||||||||||||||
69,968,006 | ||||||||||||||||
Georgia 0.9% |
| |||||||||||||||
Atlanta Arpt. Rev., Gen., Ser. B, AMT, Rfdg. | 5.000 | 01/01/30 | 500 | 551,865 | ||||||||||||
Burke Cnty. Dev. Auth. Poll. Ctrl. Rev., Oglethorpe Pwr. - Vogtle Proj., Ser. B, Rfdg. | 5.500 | 01/01/33 | 1,000 | 1,045,950 | ||||||||||||
Clayton Cnty. Dev. Auth. Spl. Facs. Rev., Delta Air Lines, Ser. A, Rfdg. | 8.750 | 06/01/29 | 2,000 | 2,418,320 | ||||||||||||
Henry Cnty. Wtr. & Swr. Auth. Rev., AMBAC | 6.150 | 02/01/20 | 1,000 | 1,120,150 | ||||||||||||
Marietta Dev. Auth. Rev., Life Univ., Rfdg. | 7.000 | 06/15/39 | 1,000 | 1,041,490 | ||||||||||||
Priv. Colleges & Univs. Auth. Rev., Savannah Clg. Art & Design Proj. | 5.000 | 04/01/44 | 1,500 | 1,683,285 | ||||||||||||
|
| |||||||||||||||
7,861,060 | ||||||||||||||||
Guam 0.2% |
| |||||||||||||||
Guam Govt., Ser. A, GO (Prerefunded 11/15/19)(a) | 7.000 | 11/15/39 | 1,000 | 1,177,330 | ||||||||||||
Guam Govt. Wtrwrks. Auth. Rev., Ser. A, Rfdg. | 5.000 | 07/01/35 | 500 | 559,655 | ||||||||||||
|
| |||||||||||||||
1,736,985 | ||||||||||||||||
Hawaii 0.8% |
| |||||||||||||||
Hawaii Pac. Hlth. Rev., Spl. Purp., Ser. A, Rfdg. | 5.500 | 07/01/40 | 1,000 | 1,105,560 | ||||||||||||
Hawaii Pac. Hlth. Rev., Spl. Purp., Ser. B | 5.750 | 07/01/40 | 500 | 558,250 | ||||||||||||
Hawaii St. Dept. Budget & Fin., Spl. Purp. Rev., 15 Craigside Proj., Ser. A | 9.000 | 11/15/44 | 1,000 | 1,195,580 | ||||||||||||
Hawaii St. Dept. Budget & Fin., Spl. Purp. Rev., Hawaii Pacific Hlth. Oblig., Ser. A | 5.500 | 07/01/43 | 2,500 | 2,929,350 | ||||||||||||
Hawaii St. Dept. Budget & Fin., Spl. Purp. Rev., Hawaiian Elec. Co. | 6.500 | 07/01/39 | 1,000 | 1,115,260 | ||||||||||||
|
| |||||||||||||||
6,904,000 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 17 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Idaho 0.2% |
| |||||||||||||||
Idaho Hlth. Facs. Auth. Rev., Madison Memorial Hosp., Rfdg. | 5.000 | % | 09/01/37 | 1,000 | $ | 1,121,900 | ||||||||||
Idaho Hlth. Facs. Auth. Rev., St. Luke’s Hlth. Sys. Proj., Ser. A | 6.750 | 11/01/37 | 1,000 | 1,100,140 | ||||||||||||
|
| |||||||||||||||
2,222,040 | ||||||||||||||||
Illinois 9.4% |
| |||||||||||||||
Chicago Brd. Edu., GO, Ser. A., Rfdg. | 5.250 | 12/01/16 | 500 | 500,885 | ||||||||||||
Chicago Brd. Edu., GO, Ser. A., Rfdg. | 7.000 | 12/01/44 | 2,000 | 2,123,980 | ||||||||||||
Chicago O’Hare Int’l. Arpt. Rev., Gen.-Third Lien, Ser. C | 6.500 | 01/01/41 | 1,000 | 1,196,270 | ||||||||||||
Chicago O’Hare Int’l. Arpt. Rev., Gen.-Third Lien, Ser. C, AMT, Rfdg. | 5.375 | 01/01/39 | 1,500 | 1,700,940 | ||||||||||||
Chicago O’Hare Int’l. Arpt. Rev., Ser. C, AMT, Rfdg. | 4.375 | 01/01/40 | 2,000 | 2,108,740 | ||||||||||||
Chicago, IL, GO, Ser. 2003 B, Rmkt., Rfdg. | 5.000 | 01/01/23 | 750 | 801,150 | ||||||||||||
Chicago, IL, GO, Ser. 2005 D, Rmkt., Rfdg. | 5.500 | 01/01/37 | 5,790 | 6,104,745 | ||||||||||||
Chicago, IL, GO, Ser. 2007 E, Rmkt., Rfdg. | 5.500 | 01/01/35 | 3,000 | 3,175,620 | ||||||||||||
Chicago, IL, GO, Ser. A | 4.000 | 12/01/16 | 335 | 335,405 | ||||||||||||
Chicago, IL, GO, Ser. A | 5.500 | 01/01/39 | 1,500 | 1,580,505 | ||||||||||||
Chicago, IL, GO, Ser. A, Rfdg. | 5.000 | 01/01/34 | 3,600 | 3,662,640 | ||||||||||||
Chicago, IL, GO, Ser. C, Rfdg. | 5.000 | 01/01/26 | 1,000 | 1,067,350 | ||||||||||||
Chicago, IL, GO, Ser. C, Rfdg. | 5.000 | 01/01/38 | 2,500 | 2,510,600 | ||||||||||||
Chicago, IL Wstwtr. Transmn. Rev., Second Lien, Ser. C, Rmkt., Rfdg. | 5.000 | 01/01/39 | 3,355 | 3,722,205 | ||||||||||||
Illinois Fin. Auth. Rev., Cent. DuPage Hlth., Ser. B, Rfdg. | 5.500 | 11/01/39 | 1,500 | 1,692,345 | ||||||||||||
Illinois Fin. Auth. Rev., Field Museum of Natural History, Rmkt. | 4.450 | 11/01/36 | 1,000 | 1,051,380 | ||||||||||||
Illinois Fin. Auth. Rev., Illinois Inst. of Technology, Ser. A, Rfdg. | 5.000 | 04/01/31 | 2,500 | 2,500,175 | ||||||||||||
Illinois Fin. Auth. Rev., Illinois Inst. of Technology, Ser. A, Rfdg. | 5.000 | 04/01/36 | 5,000 | 4,962,950 | ||||||||||||
Illinois Fin. Auth. Rev., NorthWestern Mem. Hosp., Ser. A, Rfdg. | 6.000 | 08/15/39 | 1,500 | 1,695,090 | ||||||||||||
Illinois Fin. Auth. Rev., Presence Health Netw., Ser. C, Rfdg. | 4.000 | 02/15/41 | 6,000 | 5,730,000 | ||||||||||||
Illinois Fin. Auth. Rev., Provena Hlth., Ser. A (Prerefunded 05/01/20)(a) | 6.000 | 05/01/28 | 1,500 | 1,753,185 | ||||||||||||
Illinois Fin. Auth. Rev., Rush Univ. Med. Ctr. Oblig. Grp., Ser. A (Prerefunded 11/01/18)(a) | 7.250 | 11/01/38 | 3,405 | 3,830,897 | ||||||||||||
Illinois Fin. Auth. Rev., Rush Univ. Med. Ctr., Ser. C (Prerefunded 05/01/19)(a) | 6.625 | 11/01/39 | 1,000 | 1,138,810 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Illinois (cont’d.) |
| |||||||||||||||
Illinois Fin. Auth. Rev., Silver Cross & Med. Ctrs. (Prerefunded 08/15/19)(a) | 7.000 | % | 08/15/44 | 3,000 | $ | 3,493,350 | ||||||||||
Illinois Fin. Auth. Rev., Swedish Covenant, Ser. A | 6.000 | 08/15/38 | 1,500 | 1,655,205 | ||||||||||||
Illinois Fin. Auth. Rev., Unitypoint Hlth., Ser. D, Rfdg. | 4.000 | 02/15/46 | 1,500 | 1,545,750 | ||||||||||||
Illinois Fin. Auth. Rev., Provena Hlth., Ser. A (Prerefunded 08/15/19)(a) | 7.750 | 08/15/34 | 1,000 | 1,183,141 | ||||||||||||
Illinois St., GO | 4.000 | 06/01/36 | 3,000 | 2,809,740 | ||||||||||||
Illinois St., GO | 5.000 | 08/01/25 | 1,000 | 1,072,930 | ||||||||||||
Illinois St., GO | 5.000 | 03/01/36 | 1,800 | 1,854,180 | ||||||||||||
Illinois St., GO | 5.000 | 05/01/36 | 2,000 | 2,081,140 | ||||||||||||
Illinois St., GO | 5.000 | 02/01/39 | 1,500 | 1,552,425 | ||||||||||||
Illinois St., GO | 5.000 | 05/01/39 | 1,000 | 1,036,040 | ||||||||||||
Illinois St., GO, AGM, Rfdg. | 4.000 | 02/01/31 | 500 | 499,435 | ||||||||||||
Railsplitter Tob. Settlement Auth. Rev. | 6.000 | 06/01/28 | 2,250 | 2,642,063 | ||||||||||||
Regl. Transn. Auth. Rev., Ser. A | 4.000 | 06/01/38 | 4,015 | 4,244,216 | ||||||||||||
Regl. Transn. Auth. Rev., Ser. A | 4.000 | 06/01/39 | 3,015 | 3,182,031 | ||||||||||||
Springfield Elec. Rev., Sr. Lien, Rfdg. | 4.000 | 03/01/40 | 1,500 | 1,587,120 | ||||||||||||
|
| |||||||||||||||
85,384,633 | ||||||||||||||||
Indiana 1.0% |
| |||||||||||||||
Indiana St. Fin. Auth. Rev., Drexel Fndtn. Edl. Facs. Proj., | 7.000 | 10/01/39 | 1,000 | 971,090 | ||||||||||||
Indiana St. Fin. Auth. Rev., Franciscan Alliance Inc., Ser. A | 4.000 | 11/01/51 | 2,500 | 2,565,800 | ||||||||||||
Indianapolis Loc. Pub. Impt. Bd. Bk. Wtrwks. Proj., Ser. A, Rfdg. | 5.750 | 01/01/38 | 1,000 | 1,101,320 | ||||||||||||
Valparaiso, IN Rev., Pratt Paper LLC Proj., AMT | 5.875 | 01/01/24 | 900 | 1,034,406 | ||||||||||||
Valparaiso, IN Rev., Pratt Paper LLC Proj., AMT | 7.000 | 01/01/44 | 1,500 | 1,860,210 | ||||||||||||
Vigo Cnty. Hosp. Auth. Rev., Union Hosp., Inc. (Prerefunded 09/01/21)(a) | 7.750 | 09/01/31 | 1,500 | 1,947,675 | ||||||||||||
|
| |||||||||||||||
9,480,501 | ||||||||||||||||
Iowa 1.5% |
| |||||||||||||||
Altoona Urban Renewal Tax Alloc., Annual Appr. (Prerefunded 06/01/18)(a) | 6.000 | 06/01/43 | 1,000 | 1,080,320 | ||||||||||||
Ames, IA Hosp. Rev, Mary Greeley Med. Ctr. (Prerefunded 06/15/20)(a) | 5.250 | 06/15/36 | 1,000 | 1,144,340 | ||||||||||||
Iowa St. Fin. Auth. Rev., Midwstrn. Disaster Area, Iowa Fertilizer Co. Proj., Rfdg. | 5.000 | 12/01/19 | 785 | 806,478 | ||||||||||||
Iowa St. Fin. Auth. Rev., Midwstrn. Disaster Area, Iowa Fertilizer Co. Proj., Rfdg. | 5.250 | 12/01/25 | 4,600 | 4,797,754 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 19 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Iowa (cont’d.) |
| |||||||||||||||
Iowa St. Fin. Auth. Rev., Midwstrn. Disaster Area, Iowa Fertilizer Co. Proj., Rfdg. | 5.500 | % | 12/01/22 | 5,600 | $ | 5,677,056 | ||||||||||
|
| |||||||||||||||
13,505,948 | ||||||||||||||||
Kansas 0.1% |
| |||||||||||||||
Kansas St. Dev. Fin. Auth. Hosp. Rev., Adventist Hlth., Rfdg. | 5.750 | 11/15/38 | 1,000 | 1,127,380 | ||||||||||||
Kentucky 0.7% | ||||||||||||||||
Kentucky Econ. Dev. Fin. Auth. Hosp. Facs. Rev., Owensboro Med. Hlth. Sys., Ser. A | 6.375 | 06/01/40 | 3,500 | 3,949,190 | ||||||||||||
Kentucky Econ. Dev. Fin. Auth. Telecom. Rev., Sr., Next Gen. Info., Ser. A | 5.000 | 01/01/45 | 1,000 | 1,118,060 | ||||||||||||
Owen Cnty. Wtrwks. Sys. Rev., Amern. Wtr. Co. Proj., Ser. A | 6.250 | 06/01/39 | 500 | 551,325 | ||||||||||||
Owen Cnty. Wtrwks. Sys. Rev., Amern. Wtr. Co. Proj., Ser. B | 5.625 | 09/01/39 | 500 | 548,025 | ||||||||||||
|
| |||||||||||||||
6,166,600 | ||||||||||||||||
Louisiana 1.6% |
| |||||||||||||||
Louisiana Loc. Govt. Envir. Facs. & Cmnty. Rev., Westlake Chem. Corp., Ser. A-2 | 6.500 | 11/01/35 | 1,000 | 1,157,140 | ||||||||||||
Louisiana Loc. Govt. Envir. Facs. & Cmnty. Rev., Woman’s Hosp. Fndtn., Ser. A | 6.000 | 10/01/44 | 2,000 | 2,319,560 | ||||||||||||
Louisiana Pub. Facs. Auth. Hosp. Rev., Franciscan Missionaries Hosp. (Prerefunded 07/01/19)(a) | 6.750 | 07/01/39 | 2,000 | 2,296,680 | ||||||||||||
Louisiana Pub. Facs. Auth. Rev., Ochsner Clinic Fndtn. Proj., Rfdg. | 4.000 | 05/15/41 | 1,000 | 1,038,590 | ||||||||||||
Louisiana Pub. Facs. Auth. Rev., Ochsner Clinic Fndtn. Proj., Rfdg. | 5.000 | 05/15/47 | 1,000 | 1,133,450 | ||||||||||||
Louisiana Pub. Facs. Auth. Rev., Provident Grp. Flagship Ppty. | 5.000 | 07/01/56 | 2,000 | 2,217,520 | ||||||||||||
New Orleans Sewerage Serv. Rev. | 5.000 | 06/01/45 | 500 | 567,070 | ||||||||||||
New Orleans Sewerage Serv. Rev., Rfdg. | 5.000 | 06/01/44 | 1,000 | 1,140,550 | ||||||||||||
St. Charles Parish Gulf Zone, Opp. Zone Rev., Valero Energy Corp. (Mandatory put date 06/01/22) | 4.000 | 12/01/40 | 2,500 | 2,730,100 | ||||||||||||
|
| |||||||||||||||
14,600,660 | ||||||||||||||||
Maine 0.6% |
| |||||||||||||||
Maine St. Hlth. & Higher Edl. Facs. Auth. Rev., E. Maine Healthcare, Ser. A | 4.000 | 07/01/46 | 3,000 | 2,918,490 | ||||||||||||
Maine St. Hlth. & Higher Edl. Facs. Auth. Rev., Maine General Med. Ctr. | 7.500 | 07/01/32 | 2,000 | 2,343,420 | ||||||||||||
|
| |||||||||||||||
5,261,910 |
See Notes to Financial Statements.
20 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Maryland 1.6% |
| |||||||||||||||
Anne Arundel Cnty. Tax Alloc., Vlg. South Waugh Chapel Proj. | 6.250 | % | 07/01/40 | 2,000 | $ | 2,093,780 | ||||||||||
Frederick Cnty. MD Spl. Oblig. Rev., Jefferson Tech. Park, Ser. B | 7.125 | 07/01/43 | 2,000 | 2,257,340 | ||||||||||||
Frederick Cnty. MD Spl. Oblig. Tax, Sub. Urbana Cmnty. Dev. Auth., Ser. B | 5.500 | 07/01/40 | 4,615 | 4,858,949 | ||||||||||||
Howard Cnty., MD Tax Alloc., Annapolis Junction Twn. Ctr. Proj. | 6.100 | 02/15/44 | 1,420 | 1,535,190 | ||||||||||||
Maryland Econ. Dev. Corp., Poll. Ctrl. Rev., Potomac Elect. Pwr. Co., Rfdg. | 6.200 | 09/01/22 | 1,000 | 1,114,080 | ||||||||||||
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev., Charlestown Cmnty., Rfdg. | 6.250 | 01/01/41 | 1,500 | 1,732,140 | ||||||||||||
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev., Lifebridge Hlth. | 6.000 | 07/01/41 | 600 | 706,698 | ||||||||||||
|
| |||||||||||||||
14,298,177 | ||||||||||||||||
Massachusetts 1.1% |
| |||||||||||||||
Massachusetts St. Dev. Fin. Agcy. Rev., Boston Med. Ctr., Ser. E, Rfdg. | 4.000 | 07/01/38 | 1,500 | 1,533,780 | ||||||||||||
Massachusetts St. Dev. Fin. Agcy. Rev., S. Shore Hosp., Ser. I, Rfdg. | 4.000 | 07/01/36 | 1,500 | 1,573,560 | ||||||||||||
Massachusetts St. Dev. Fin. Agcy. Rev., SABIS International Chrt. Sch., Rfdg. | 5.000 | 04/15/40 | 1,250 | 1,394,913 | ||||||||||||
Massachusetts St. Dev. Fin. Agcy. Rev., Tufts Med. Ctr., Ser. I | 7.250 | 01/01/32 | 2,000 | 2,389,360 | ||||||||||||
Massachusetts St. Port Auth. Spl. Facs. Rev., Bosfuel Proj., AMT, NATL | 5.000 | 07/01/32 | 3,000 | 3,063,960 | ||||||||||||
|
| |||||||||||||||
9,955,573 | ||||||||||||||||
Michigan 2.9% |
| |||||||||||||||
Great Lakes Wtr., Auth. Wtr. Sply. Sys. Rev., Sr. Lien, Ser. A | 5.000 | 07/01/46 | 3,000 | 3,405,750 | ||||||||||||
Kent Hosp. Fin. Auth. Rev., Metro Hosp. Proj., Ser. A | 6.250 | 07/01/40 | 3,000 | 2,989,020 | ||||||||||||
Michigan Fin. Auth. Rev., Henry Ford Hlth., Rfdg. | 4.000 | 11/15/46 | 4,000 | 4,029,600 | ||||||||||||
Michigan Fin. Auth. Rev., Sr., Lien, Detroit Wtr. & Swr. | 5.000 | 07/01/35 | 500 | 563,995 | ||||||||||||
Michigan Fin. Auth. Rev., Sr., Lien, Detroit Wtr. & Swr., Ser. C-1 | 5.000 | 07/01/44 | 1,000 | 1,098,550 | ||||||||||||
Michigan St. Bldg. Auth. Rev., Facs. Prog., Ser. I-A, Rfdg. | 5.375 | 10/15/41 | 750 | 861,157 | ||||||||||||
Michigan St. Hosp. Fin. Auth. Rev., Henry Ford Hlth. (Prerefunded 11/15/19)(a) | 5.750 | 11/15/39 | 1,000 | 1,139,720 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 21 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Michigan (cont’d.) |
| |||||||||||||||
Michigan St. Strategic Fund Rev., Var. Detroit Ed. Rmkt. Rfdg. | 5.625 | % | 07/01/20 | 1,000 | $ | 1,142,370 | ||||||||||
Oakland Cnty. Econ. Dev. Corp. Oblg. Rev., Roman Catholic Archdiocese Detroit, Rfdg. | 6.500 | 12/01/20 | 1,800 | 1,891,746 | ||||||||||||
Royal Oak Hosp. Fin. Auth. Hosp. Rev., William Beaumont Hosp., Ser. V (Prerefunded 09/01/18)(a) | 8.250 | 09/01/39 | 2,150 | 2,438,057 | ||||||||||||
Royal Oak Hosp. Fin. Auth. Hosp. Rev., William Beaumont Hosp., Ser. W (Prerefunded 08/01/19)(a) | 6.000 | 08/01/39 | 1,000 | 1,135,760 | ||||||||||||
Star Intl. Academy, Pub. Sch. Academy, Rfdg. | 5.000 | 03/01/33 | 2,000 | 2,086,260 | ||||||||||||
Summit Academy Rev., Rfdg., Pub. Sch. Academy, Rfdg. | 6.250 | 11/01/25 | 2,060 | 2,063,317 | ||||||||||||
Wayne Cnty. Arpt. Auth. Rev., Detroit Met. Arpt., Ser. D, AMT, Rfdg. | 5.000 | 12/01/28 | 1,500 | 1,687,680 | ||||||||||||
|
| |||||||||||||||
26,532,982 | ||||||||||||||||
Minnesota 0.5% |
| |||||||||||||||
Hugo, MN Rev., Chrt. Sch. Lease, Noble Academy Proj., Ser. A | 5.000 | 07/01/44 | 1,250 | 1,283,550 | ||||||||||||
St. Cloud, MN Rev., Centracare Hlth., Ser. A, Rfdg. | 4.000 | 05/01/37 | 1,250 | 1,346,238 | ||||||||||||
St. Paul Hsg. & Redev. Auth., Hosp. Rev., Hlth. East Care Sys. Proj. | 5.000 | 11/15/44 | 1,000 | 1,114,540 | ||||||||||||
St. Paul Port Auth. Sol. Wste. Disp. Rev., Gerdau St. Paul Steel Mill Proj., Ser. 7, AMT, 144A | 4.500 | 10/01/37 | 1,000 | 867,290 | ||||||||||||
|
| |||||||||||||||
4,611,618 | ||||||||||||||||
Mississippi 0.1% |
| |||||||||||||||
Warren Cnty. Gulf Opp. Zone, Intl. Paper Proj., Ser. A | 6.500 | 09/01/32 | 1,000 | 1,087,240 | ||||||||||||
Missouri 2.1% |
| |||||||||||||||
Joplin Indl. Dev. Auth. Rev., Freeman Hlth. Sys., Rfdg. | 5.000 | 02/15/35 | 1,000 | 1,138,450 | ||||||||||||
Manchester Tax Increment & Transn. Rev., Hwy. 141, Manchester Rd. Proj., Rfdg. | 6.875 | 11/01/39 | 1,500 | 1,573,635 | ||||||||||||
Missouri St. Hlth. & Ed. Facs. Auth. Rev., BJC Hlth. Sys., Ser. A | 4.000 | 01/01/45 | 2,010 | 2,111,404 | ||||||||||||
Missouri St. Hlth. & Ed. Facs. Auth. Rev., Lutheran Sr. Svcs. | 6.000 | 02/01/41 | 1,000 | 1,126,900 | ||||||||||||
Missouri St. Hlth. & Ed. Facs. Auth. Rev., Lutheran Sr. Svcs., Rfdg. | 5.000 | 02/01/44 | 4,000 | 4,346,360 | ||||||||||||
Missouri St. Hlth. & Ed. Facs. Auth. Rev., Lutheran Svcs., Ser. A | 5.000 | 02/01/46 | 1,000 | 1,118,440 |
See Notes to Financial Statements.
22 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Missouri (cont’d.) |
| |||||||||||||||
Missouri St. Hlth. & Ed. Facs. Auth. Rev., St. Anthonys Med. Ctr., Ser B., Rfdg. | 4.000 | % | 02/01/40 | 750 | $ | 772,313 | ||||||||||
Missouri St. Hlth. & Ed. Facs. Auth. Rev., St. Louis Clg. Pharmacy, Ser. B | 5.000 | 05/01/45 | 1,500 | 1,604,970 | ||||||||||||
Missouri St. Hlth. & Ed. Facs. Auth. Rev., The Children’s Mercy Hosp., Rfdg. | 4.000 | 05/15/39 | 1,000 | 1,034,490 | ||||||||||||
Poplar Bluff Regl. Transn. Dev. Dist., Transn. Sales Tax Rev. | 4.750 | 12/01/42 | 2,100 | 2,203,887 | ||||||||||||
St. Louis Cnty. Indl. Dev. Auth. Rev., St. Andrews Res. Srs. Oblig., Ser. A, Rfdg. | 5.125 | 12/01/45 | 1,000 | 1,039,710 | ||||||||||||
St. Louis Cnty. Indl. Dev. Auth. Rev., Friendship Village Sunset Hills, Ser. A | 5.875 | 09/01/43 | 1,000 | 1,160,970 | ||||||||||||
|
| |||||||||||||||
19,231,529 | ||||||||||||||||
Nebraska 0.3% |
| |||||||||||||||
Sarpy Cnty. Hosp. Auth. No. 1 Rev., NE Medicine, Rfdg. | 4.000 | 05/15/51 | 3,000 | 3,108,360 | ||||||||||||
Nevada 0.3% | ||||||||||||||||
Clark Cnty. Impt. Dist. Spl. Assmt., Dist. No. 142, Mountains Edge Loc. Impvt., Rfdg. | 4.000 | 08/01/23 | 1,475 | 1,520,725 | ||||||||||||
Nevada St. Dept. of Bus. & Ind. Rev., Somerset Acad., Ser. A, 144A | 5.125 | 12/15/45 | 1,000 | 1,024,100 | ||||||||||||
|
| |||||||||||||||
2,544,825 | ||||||||||||||||
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 | 977,770 | ||||||||||||
New Jersey 8.6% |
| |||||||||||||||
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc. Proj., AMT, Rfdg. | 5.750 | 09/15/27 | 1,530 | 1,731,516 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc. Proj., Rmkt., AMT | 5.500 | 06/01/33 | 2,000 | 2,248,940 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., Proj., Spec. Facs. AMT | 5.250 | 09/15/29 | 5,000 | 5,559,200 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., United Airlines, Inc. Proj., AMT | 4.875 | 09/15/19 | 2,150 | 2,265,842 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., United Airlines, Inc. Proj., AMT | 5.125 | 09/15/23 | 5,000 | 5,562,850 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Continental Airlines, Inc., United Airlines, Inc. Proj., Ser. A, AMT | 5.625 | 11/15/30 | 2,275 | 2,605,785 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 23 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
New Jersey (cont’d.) |
| |||||||||||||||
New Jersey Econ. Dev. Auth. Rev., Goethals Bridge, AMT | 5.375 | % | 01/01/43 | 1,390 | $ | 1,579,332 | ||||||||||
New Jersey Econ. Dev. Auth. Rev., Provident Grp., Rowan Pptys. LLC, Ser. A | 5.000 | 01/01/48 | 1,000 | 1,105,700 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Ser. WW | 5.250 | 06/15/40 | 1,250 | 1,389,913 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Team Academy Chrt. Sch. Proj. | 6.000 | 10/01/43 | 1,700 | 1,943,202 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Umm Energy Partners, Ser. A, AMT | 5.000 | 06/15/37 | 1,500 | 1,584,840 | ||||||||||||
New Jersey Econ. Dev. Auth. Rev., Umm Energy Partners, Ser. A, AMT | 5.125 | 06/15/43 | 1,100 | 1,160,577 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., AHS Hosp. Corp. (Prerefunded 07/01/21)(a) | 6.000 | 07/01/41 | 500 | 608,595 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., AHS Hosp. Corp., Rfdg. | 4.000 | 07/01/41 | 1,500 | 1,570,185 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., Barnabas Hlth., Ser. A, Rfdg. (Prerefunded 07/01/21)(a) | 5.625 | 07/01/37 | 1,000 | 1,201,730 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., Inspira Hlth. Obligated Grp., Ser. A, Rfdg. | 4.000 | 07/01/41 | 1,500 | 1,562,250 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., Princeton Healthcare Sys., Ser. A, Rfdg. | 5.000 | 07/01/39 | 1,000 | 1,158,520 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., RWJ Barnabas Healthcare Sys. Oblig., Ser. A | 5.000 | 07/01/43 | 1,500 | 1,721,505 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., St. Joseph’s Healthcare Sys. Oblig. | 4.000 | 07/01/48 | 1,500 | 1,508,310 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., St. Josephs Healthcare Sys. (Prerefunded 07/01/18)(a) | 6.625 | 07/01/38 | 3,000 | 3,287,130 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., University Hosp., Ser. A, AGM, Rfdg. | 5.000 | 07/01/46 | 1,500 | 1,698,030 | ||||||||||||
New Jersey Healthcare Facs. Fin. Auth. Rev., Virtua Hlth. | 5.750 | 07/01/33 | 2,000 | 2,211,360 | ||||||||||||
New Jersey St. Edl. Facs. Auth. Univ. Med. & Dentistry, Ser. B, Rfdg. (Prerefunded 06/01/19)(a) | 7.500 | 12/01/32 | 1,000 | 1,162,970 | ||||||||||||
New Jersey St. Transn. Tr. Fd. Sys. Auth., Fed. Hwy. Reimbursement Nts., Ser. A1 | 5.000 | 06/15/28 | 1,250 | 1,399,312 | ||||||||||||
New Jersey St. Transn. Tr. Fd. Sys. Auth., Trans. Sys., Ser. A | 5.875 | 12/15/38 | 2,000 | 2,168,460 | ||||||||||||
New Jersey St. Transn. Tr. Fd. Sys. Auth., Trans. Sys., Ser. AA | 5.000 | 06/15/45 | 1,200 | 1,300,392 | ||||||||||||
New Jersey St. Transn. Tr. Fd. Sys. Auth., Trans. Sys., Ser. AA | 5.250 | 06/15/41 | 1,000 | 1,114,270 |
See Notes to Financial Statements.
24 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
New Jersey (cont’d.) |
| |||||||||||||||
South Jersey Transn. Auth. LLC, Rev., Ser. A, Rfdg. | 5.000 | % | 11/01/39 | 750 | $ | 835,103 | ||||||||||
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg. | 4.500 | 06/01/23 | 6,260 | 6,347,515 | ||||||||||||
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg. | 4.625 | 06/01/26 | 8,030 | 8,065,894 | ||||||||||||
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg. | 4.750 | 06/01/34 | 3,000 | 2,873,550 | ||||||||||||
Tob. Settlement Fing. Corp., NJ Rev., Ser. 1A, Rfdg. | 5.000 | 06/01/41 | 8,610 | 8,055,085 | ||||||||||||
|
| |||||||||||||||
78,587,863 | ||||||||||||||||
New York 6.2% |
| |||||||||||||||
Brooklyn Arena Loc. Dev. Corp. Rev., Barclays Ctr. Proj. (Prerefunded 01/15/20)(a) | 6.375 | 07/15/43 | 1,250 | 1,457,463 | ||||||||||||
Brooklyn Arena Loc. Dev. Corp. Rev., Barclays Ctr. Proj. Ser. A, Rfdg. | 5.000 | 07/15/42 | 1,000 | 1,145,310 | ||||||||||||
Build NYC Resource Corp. Rev., Pratt Paper, Inc. Proj., AMT, Rdfg., 144A | 5.000 | 01/01/35 | 1,000 | 1,123,070 | ||||||||||||
Erie Cnty. Tob. Asset Secur. Corp. Cap. Apprec., Asset Bkd., 1st Sub., Ser. B, CABS | 6.740 | (b) | 06/01/47 | 5,000 | 658,400 | |||||||||||
Erie Cnty. Tob. Asset Secur. Corp. Cap. Apprec., Asset Bkd., 2nd Sub., Ser. C, CABS | 7.670 | (b) | 06/01/50 | 4,000 | 319,360 | |||||||||||
Glen Cove Loc. Econ. Asst. Corp. Rev., Garvies Pt. Impt. Proj., Ser. A | 5.000 | 01/01/56 | 2,105 | 2,123,019 | ||||||||||||
Glen Cove Loc. Econ. Asst. Corp. Rev., Garvies Pt. Impt. Proj., Ser. C, CABS (Converted to Fixed on 01/01/24) | 5.370 | 01/01/55 | 1,000 | 697,500 | ||||||||||||
Long Island Pwr. Auth. Elec. Sys. Rev., Ser. A (Prerefunded 05/01/19)(a) | 6.000 | 05/01/33 | 1,500 | 1,684,335 | ||||||||||||
Nassau Cnty. Tob. Settlement Corp., Asset Bkd., Sr., Ser. A-, Rfdg. | 5.125 | 06/01/46 | 2,250 | 2,158,042 | ||||||||||||
New York Liberty Dev. Corp. Rev., 4 World Trade Center Proj., Rfdg. | 5.750 | 11/15/51 | 1,750 | 2,052,977 | ||||||||||||
New York Liberty Dev. Corp. Rev., Class 1-3 World Trade Ctr., Rfdg., 144A | 5.000 | 11/15/44 | 5,000 | 5,624,400 | ||||||||||||
New York St. Dorm. Auth. Rev., Nonst. Supported Debt, NYU Hosp. Ctr., Ser. A (Prerefunded 07/01/20)(a) | 6.000 | 07/01/40 | 1,000 | 1,177,180 | ||||||||||||
New York St. Dorm. Auth. Rev., Orange Regl. Med. Ctr., 144A | 5.000 | 12/01/45 | 1,000 | 1,103,330 | ||||||||||||
New York St. Thruway Auth. Rev., Jr. Lien, Ser. A | 4.000 | 01/01/56 | 1,000 | 1,043,580 | ||||||||||||
New York Trans. Dev. Corp. Rev., American Airlines, AMT, Rfdg. | 5.000 | 08/01/26 | 2,000 | 2,185,400 | ||||||||||||
New York Trans. Dev. Corp. Rev., American Airlines, AMT, Rfdg. | 5.000 | 08/01/31 | 2,000 | 2,134,920 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 25 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
New York (cont’d.) |
| |||||||||||||||
New York Trans. Dev. Corp. Rev., Laguardia Arpt., Term B, AMT | 4.000 | % | 07/01/41 | 3,000 | $ | 3,061,500 | ||||||||||
New York Trans. Dev. Corp. Rev., Laguardia Arpt., Term B, AMT | 4.000 | 07/01/46 | 4,000 | 4,014,800 | ||||||||||||
New York Trans. Dev. Corp. Rev., Laguardia Arpt., Term B, AMT | 5.000 | 07/01/46 | 1,000 | 1,090,010 | ||||||||||||
New York Trans. Dev. Corp. Rev., Laguardia Arpt., Term B, AMT | 5.250 | 01/01/50 | 2,000 | 2,212,360 | ||||||||||||
Onondaga Civic Dev. Corp., St. Joseph Hosp. Hlth. Ctr., Ser. 2012 (Prerefunded 07/01/22)(a) | 5.000 | 07/01/42 | 1,000 | 1,203,620 | ||||||||||||
Port Auth. of NY & NJ Spl. Oblig. Rev., JFK Int’l. Air Terminal | 5.000 | 12/01/20 | 500 | 563,340 | ||||||||||||
Port Auth. of NY & NJ Spl. Oblig. Rev., JFK Int’l. Air Terminal | 6.000 | 12/01/42 | 2,500 | 2,896,050 | ||||||||||||
TSASC, Inc., Rev., Ser. 1, Rfdg. | 5.000 | 06/01/26 | 865 | 863,400 | ||||||||||||
TSASC, Inc., Rev., Ser. 1, Rfdg. | 5.125 | 06/01/42 | 14,820 | 14,287,517 | ||||||||||||
|
| |||||||||||||||
56,880,883 | ||||||||||||||||
North Carolina 0.3% |
| |||||||||||||||
North Carolina Eastn. Mun. Pwr. Agcy. Pwr. Sys. Rev., Ser. C (Prerefunded 01/01/19)(a) | 6.750 | 01/01/24 | 1,000 | 1,119,020 | ||||||||||||
North Carolina Med. Care Commn. Ret. Facs. Rev., First Mtg. Galloway Ridge Proj., Ser. A | 6.000 | 01/01/39 | 750 | 801,518 | ||||||||||||
North Carolina Med. Care Commn. Rev., Pennybyrn at Maryfield, Rfdg. | 5.000 | 10/01/35 | 1,000 | 1,095,670 | ||||||||||||
|
| |||||||||||||||
3,016,208 | ||||||||||||||||
North Dakota 0.1% |
| |||||||||||||||
Burleigh Cnty. Rev., St. Alexius Med. Ctr. Proj., Ser. A, Rfdg. (Prerefunded 07/01/21)(a) | 5.000 | 07/01/35 | 750 | 877,838 | ||||||||||||
Ohio 3.3% |
| |||||||||||||||
Buckeye OH Tob. Settlement Fin. Auth. Rev., Asset Bkd. Sr. Turbo, Ser. A-2 | 5.125 | 06/01/24 | 4,920 | 4,649,351 | ||||||||||||
Buckeye OH Tob. Settlement Fin. Auth. Rev., Asset Bkd. Sr. Turbo, Ser. A-2 | 5.375 | 06/01/24 | 2,995 | 2,950,225 | ||||||||||||
Buckeye OH Tob. Settlement Fin. Auth. Rev., Asset Bkd. Sr. Turbo, Ser. A-2 | 5.875 | 06/01/30 | 6,500 | 6,131,710 | ||||||||||||
Buckeye OH Tob. Settlement Fin. Auth. Rev., Asset Bkd. Sr. Turbo, Ser. A-2 | 5.875 | 06/01/47 | 2,155 | 2,025,764 | ||||||||||||
Buckeye OH Tob. Settlement Fin. Auth. Rev., Asset Bkd. Sr. Turbo, Ser. A-2 | 6.500 | 06/01/47 | 2,425 | 2,385,303 |
See Notes to Financial Statements.
26 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Ohio (cont’d.) |
| |||||||||||||||
Franklin Cnty. Hosp. Facs. Rev., Nationwide Children’s Hosp. Proj., Ser. A | 4.000 | % | 11/01/45 | 2,000 | $ | 2,108,240 | ||||||||||
Hamilton Cnty. Healthcare Facs. Rev., Christ Hosp. Proj. | 5.000 | 06/01/42 | 1,250 | 1,413,275 | ||||||||||||
Hamilton Cnty. OH Rev., Rfdg. & Impt., Life Enrishing Cmnt. | 5.000 | 01/01/51 | 1,000 | 1,084,040 | ||||||||||||
Hancock Cnty. Hosp. Facs. Rev., Blanchard Valley Hlth. Ctr., Rfdg. | 6.250 | 12/01/34 | 600 | 699,678 | ||||||||||||
Lucas Cnty. OH Hosp. Rev., Promedica Healthcare, Ser. A, Rfdg. | 6.000 | 11/15/41 | 750 | 893,505 | ||||||||||||
Lucas Cnty. OH Hosp. Rev., Promedica Healthcare, Ser. A, Rfdg. | 6.500 | 11/15/37 | 875 | 1,067,526 | ||||||||||||
Middleburg Heights Hosp. Rev., Facs. Southwest Gen., Ser. 2011, Rfdg. | 5.250 | 08/01/41 | 1,200 | 1,322,004 | ||||||||||||
Montgomery Cnty. Hosp. Facs. Rev., Kettering Hlth. Network Proj. | 4.000 | 08/01/47 | 1,750 | 1,810,865 | ||||||||||||
Ohio St. Pvt. Act. Rev., Portsmouth Bypass Proj., AMT | 5.000 | 06/30/53 | 1,000 | 1,095,590 | ||||||||||||
Ohio St. Wtr. Dev. Auth. Rev., FirstEnergy Generation, Ser. B, Rfdg. (Mandatory put date 04/01/20) | 3.625 | 10/01/33 | 700 | 609,399 | ||||||||||||
|
| |||||||||||||||
30,246,475 | ||||||||||||||||
Oklahoma 0.8% |
| |||||||||||||||
Oklahoma St. Dev., Fin. Auth. Rev., St. Johns Hlth. Sys., Rfdg. | 5.000 | 02/15/42 | 1,500 | 1,659,555 | ||||||||||||
Tulsa Cnty. OK Indl. Auth. Sr. Living Cmnty. Rev., Montereau, Inc. Proj., Ser A, Rfdg. | 7.125 | 11/01/30 | 1,000 | 1,097,440 | ||||||||||||
Tulsa Mun. Arpt. Tr. Trustees Gen. Rev., American Airlines, AMT, Rfdg. (Mandatory put date 06/01/2025) | 5.000 | 06/01/35 | 1,250 | 1,444,675 | ||||||||||||
Tulsa Mun. Arpt. Tr. Trustees Gen. Rev., American Airlines, AMT, Rfdg. | 5.500 | 06/01/35 | 3,000 | 3,384,570 | ||||||||||||
|
| |||||||||||||||
7,586,240 | ||||||||||||||||
Oregon 0.5% |
| |||||||||||||||
Deschutes Cnty. Hosp. Facs. Auth. Rev., St. Charles Hlth. Sys., Rfdg. | 4.000 | 01/01/46 | 2,000 | 2,087,340 | ||||||||||||
Multnomah Cnty. OR Hosp. Facs. Auth. Rev., Mirabella at South Waterfront, Ser. A., Rfdg. | 5.400 | 10/01/44 | 1,000 | 1,106,020 | ||||||||||||
Salem OR Hosp. Facs. Auth. Rev., Capital Manor, Inc., Rfdg. | 6.000 | 05/15/42 | 1,000 | 1,112,160 | ||||||||||||
|
| |||||||||||||||
4,305,520 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 27 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Pennsylvania 6.2% |
| |||||||||||||||
Allegheny Cnty. Indl. Dev. Auth. Rev., Environmental Impt., Rfdg. | 5.500 | % | 11/01/16 | 355 | $ | 355,000 | ||||||||||
Butler Cnty. Hosp. Auth. Rev., Butler Hlth. Sys. Proj. (Prerefunded 07/01/19)(a) | 7.250 | 07/01/39 | 1,000 | 1,162,600 | ||||||||||||
Central Bradford Progress Auth. Rev., Guthrie Healthcare Sys., Rfdg. | 5.375 | 12/01/41 | 2,700 | 3,061,422 | ||||||||||||
Chester Cnty. Indl. Dev. Auth. Rev., Renaissance Academy Chrt. Sch., Rfdg. | 5.000 | 10/01/44 | 1,000 | 1,074,270 | ||||||||||||
Cumberland Cnty. Mun. Auth., Rev., Asbury PA Oblig. Grp., Rfdg. | 5.250 | 01/01/41 | 1,000 | 1,057,290 | ||||||||||||
Cumberland Cnty. Mun. Auth., Rev., Asbury PA Oblig. Grp., Rfdg. | 6.125 | 01/01/45 | 2,000 | 2,135,220 | ||||||||||||
Cumberland Cnty. Mun. Auth., Rev., Diakon Lutheran, Rfdg. (Prerefunded 01/01/19)(a) | 6.375 | 01/01/39 | 900 | 1,003,005 | ||||||||||||
Doylestown Hosp. Auth. Rev., Doylestown Hosp., Ser. A, Rfdg. | 5.000 | 07/01/46 | 2,155 | 2,375,306 | ||||||||||||
East Hempfield Township Indl. Dev. Auth. Rev., Student Svcs. Inc., Student Hsg. Proj. | 5.000 | 07/01/46 | 1,000 | 1,080,490 | ||||||||||||
Geisinger Auth. Hlth. Sys., Ser. A-1 | 5.125 | 06/01/41 | 1,450 | 1,603,903 | ||||||||||||
Lehigh Cnty. Gen. Hosp. Rev., Lehigh Valley Health Network, Ser. A | 4.250 | 07/01/45 | 1,000 | 1,060,220 | ||||||||||||
Montgomery Cnty. Indl. Dev. Auth. Rev., Whitemarsh CCRC, Rfdg. | 5.250 | 01/01/40 | 1,000 | 1,028,000 | ||||||||||||
Moon Indl. Dev. Auth. Rev., Baptist Homes Society Oblig., Rfdg. | 6.000 | 07/01/45 | 2,000 | 2,243,700 | ||||||||||||
Northampton Cnty. Gen. Purp. Auth. Hosp. Rev., St. Luke’s Hosp. Proj., Ser. A (Prerefunded 08/15/18)(a) | 5.500 | 08/15/35 | 1,000 | 1,080,600 | ||||||||||||
Pennsylvania Econ. Dev. Fin. Auth. Rev., PA Bridges Finco. LP, AMT | 5.000 | 06/30/42 | 1,500 | 1,659,765 | ||||||||||||
Pennsylvania Econ. Dev. Fin. Auth. Rev., Res. Recov., Colver Proj., Ser. F, AMBAC, AMT, Rfdg. | 4.625 | 12/01/18 | 3,500 | 3,511,060 | ||||||||||||
Pennsylvania Econ. Dev. Fin. Auth. Rev., Swr. Sludge Disp., Philadelphia Biosolids Fac. | 6.250 | 01/01/32 | 750 | 816,795 | ||||||||||||
Pennsylvania Econ. Dev. Fin. Auth. Rev., US Airways Grp., Ser. B, Gty. Agmt. | 8.000 | 05/01/29 | 490 | 568,336 | ||||||||||||
Pennsylvania Tpk. Commn. Rev., Sub., Ser A, Rfdg. | 4.000 | 12/01/41 | 3,000 | 3,090,390 | ||||||||||||
Pennsylvania Tpk. Commn. Rev., Sub., Ser A-1, Rfdg. | 5.000 | 12/01/46 | 2,000 | 2,238,260 | ||||||||||||
Philadelphia Auth. for Indl. Dev. Rev., First Philadelphia Preparatory Chrt., Ser. A, Rfdg. | 7.250 | 06/15/43 | 2,000 | 2,372,720 | ||||||||||||
Philadelphia Auth. for Indl. Dev. Rev., Gtr. Philadelphia Hlth Action, Rfdg. | 6.625 | 06/01/50 | 3,000 | 3,173,610 |
See Notes to Financial Statements.
28 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Pennsylvania (cont’d.) |
| |||||||||||||||
Philadelphia Auth. for Indl. Dev. Rev., Mariana Bracetti Academy | 7.625 | % | 12/15/41 | 2,000 | $ | 2,274,860 | ||||||||||
Philadelphia Auth. for Indl. Dev. Rev., New Fndtn. Chrt. Sch. Proj. | 6.625 | 12/15/41 | 1,000 | 1,123,350 | ||||||||||||
Philadelphia Gas Wks. Co. Rev., General Oridinance, Ser. 14, Rfdg. | 4.000 | 10/01/37 | 500 | 534,625 | ||||||||||||
Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev., Temple Univ. Hlth. Sys., Ser. A | 5.625 | 07/01/42 | 6,750 | 7,455,983 | ||||||||||||
Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev., Temple Univ. Hlth. Sys., Ser. A, Rfdg. | 5.000 | 07/01/34 | 4,175 | 4,220,716 | ||||||||||||
Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev., Temple Univ. Hlth. Sys., Ser. A, Rfdg. | 5.500 | 07/01/30 | 500 | 507,135 | ||||||||||||
Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev., Temple Univ. Hlth. Sys., Ser. B, Rfdg. | 5.500 | 07/01/26 | 750 | 761,400 | ||||||||||||
Susquehanna Area Regl. Arpt. Auth., Arpt. Sys. Rev., Ser. A, AMT | 6.500 | 01/01/38 | 1,500 | 1,568,415 | ||||||||||||
|
| |||||||||||||||
56,198,446 | ||||||||||||||||
Puerto Rico 1.6% |
| |||||||||||||||
Puerto Rico Comnwlth., Aqueduct & Swr. Auth. Rev., Sr. Lien, Ser. A, Rfdg. | 5.750 | 07/01/37 | 1,350 | 1,041,619 | ||||||||||||
Puerto Rico Comnwlth., Aqueduct & Swr. Auth. Rev., Sr. Lien, Ser. A, Rfdg. | 6.000 | 07/01/47 | 1,125 | 864,754 | ||||||||||||
Puerto Rico Comnwlth., GO, Pub. Impt., | 5.500 | 07/01/39 | 2,000 | 1,287,500 | ||||||||||||
Puerto Rico Comnwlth., GO, Ser. A, Rfdg.(c) | 8.000 | 07/01/35 | 6,200 | 4,223,750 | ||||||||||||
Puerto Rico Elec. Pwr. Auth. Rev., Ser. A | 6.750 | 07/01/36 | 2,000 | 1,360,080 | ||||||||||||
Puerto Rico Elec. Pwr. Auth. Rev., Ser. XX | 5.250 | 07/01/40 | 2,000 | 1,357,660 | ||||||||||||
Puerto Rico Pub. Bldgs. Auth. Rev., Govt. Facs., Ser. M, Rfdg.(c) | 6.000 | 07/01/20 | 2,500 | 1,531,250 | ||||||||||||
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., Cap. Apprec., Ser. A , CABS | 11.850 | (b) | 08/01/33 | 5,000 | 727,300 | |||||||||||
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., First Sub., Ser. A | 5.375 | 08/01/39 | 1,500 | 763,650 | ||||||||||||
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., First Sub., Ser. A | 5.750 | 08/01/37 | 1,000 | 515,150 | ||||||||||||
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., First Sub., Ser. A | 6.000 | 08/01/42 | 2,150 | 1,136,705 | ||||||||||||
|
| |||||||||||||||
14,809,418 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 29 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Rhode Island 0.3% |
| |||||||||||||||
Rhode Island St. Hlth. & Edl. Bldg. Corp. Rev., Hosp. Fing., Lifespan Oblig., Ser. A (Prerefunded 05/15/19)(a) | 7.000 | % | 05/15/39 | 2,000 | $ | 2,299,420 | ||||||||||
Tob. Settlement Fing. Corp. Rev., Ser. A, Rfdg. | 5.000 | 06/01/40 | 600 | 646,374 | ||||||||||||
|
| |||||||||||||||
2,945,794 | ||||||||||||||||
South Carolina 0.5% |
| |||||||||||||||
South Carolina Prt. Auth. Rev, AMT | 4.000 | 07/01/45 | 1,500 | 1,562,430 | ||||||||||||
South Carolina St. Pub. Svc. Auth. Rev., Ser. E, Rfdg. | 5.250 | 12/01/55 | 2,500 | 2,946,450 | ||||||||||||
|
| |||||||||||||||
4,508,880 | ||||||||||||||||
South Dakota 0.2% |
| |||||||||||||||
South Dakota St. Hlth. & Edl. Facs. Auth. Rev., Avera Hlth., Ser. A, Rfdg. | 5.000 | 07/01/42 | 1,655 | 1,828,444 | ||||||||||||
Tennessee 1.3% |
| |||||||||||||||
Chattanooga Hlth. Edl. & Hsg. Facs. Brd. Rev., Catholic Hlth., Ser. A | 5.250 | 01/01/45 | 2,000 | 2,228,900 | ||||||||||||
Johnson City Hlth. & Edl. Facs. Brd. Hosp. Rev., Mountain States Hlth. Alliance, First Mtge., Ser. A, Rfdg. | 6.000 | 07/01/38 | 1,000 | 1,120,740 | ||||||||||||
Johnson City Hlth. & Edl. Facs. Brd. Hosp. Rev., Mountain States Hlth. Alliance, First Mtge., Ser. A, NATL, ETM, Rfdg. (Escrowed to maturity date 07/01/17)(a) | 6.750 | 07/01/17 | 2,000 | 2,071,660 | ||||||||||||
Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd. Hosp. Facs. Rev., Covenant Hlth., Ser. A, CABS, Rfdg. | 4.420 | (b) | 01/01/35 | 1,000 | 407,320 | |||||||||||
Metropolitan Govt. Nashville & Davidson Cnty. Hlth. & Edl. Facs. Brd. Rev., Impt. Blakeford at Green Hills, Rfdg. | 5.000 | 07/01/37 | 850 | 912,721 | ||||||||||||
Metropolitan Govt. Nashville & Davidson Cnty. Hlth. & Edl. Facs. Brd. Rev., Vanderbilt Univ. Med. Ctr., Ser. A | 5.000 | 07/01/46 | 1,000 | 1,154,000 | ||||||||||||
Shelby Cnty. Hlth. Edl. & Hsg. Facs. Brd. Facs. Rev., Germantown Village, Rfdg. | 5.250 | 12/01/42 | 1,100 | 1,146,409 | ||||||||||||
Tennessee Energy Acquisition Corp. Gas Rev., Ser. C | 5.000 | 02/01/22 | 1,000 | 1,146,630 | ||||||||||||
Tennessee Energy Acquisition Corp. Gas Rev., Ser. C | 5.000 | 02/01/25 | 1,500 | 1,763,265 | ||||||||||||
|
| |||||||||||||||
11,951,645 | ||||||||||||||||
Texas 10.4% |
| |||||||||||||||
Arlington Higher Edu. Fin. Corp. Rev., Uplift Ed., Ser. A, Rfdg. | 5.000 | 12/01/51 | 3,030 | 3,410,538 |
See Notes to Financial Statements.
30 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Texas (cont’d.) |
| |||||||||||||||
Arlington Higher Edu. Fin. Corp. Rev., Wayside Schs., Ser. A | 4.625 | % | 08/15/46 | 1,050 | $ | 1,057,329 | ||||||||||
Austin Convention Enterprises, Inc. Convention Ctr. Rev., Second Tier, Ser. B, Rfdg., 144A | 5.750 | 01/01/24 | 3,405 | 3,419,573 | ||||||||||||
Austin Convention Enterprises, Inc. Convention Ctr. Rev., Second Tier, Ser. B, Rfdg., 144A | 5.750 | 01/01/34 | 1,000 | 1,004,490 | ||||||||||||
Bexar Cnty. Hlth. Facs. Dev. Corp. Rev., Army Retmnt Rresidence Fndt., Rfdg. | 5.000 | 07/15/41 | 1,250 | 1,381,425 | ||||||||||||
Board of Managers Jt., Guadalupe Cnt., City of Seguin Hosp. Rev., Rfdg. | 5.000 | 12/01/45 | 500 | 526,265 | ||||||||||||
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., AMT, Rmkt., Rfdg.(c)(e) | 5.400 | 05/01/29 | 2,000 | — | (f) | |||||||||||
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., Ser. A, AMT, Elec. Rmkt., Rfdg.(c)(e) | 8.250 | 10/01/30 | 3,000 | — | (f) | |||||||||||
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., Ser. D, Rfdg.(c)(e) | 5.400 | 10/01/29 | 1,000 | — | (f) | |||||||||||
Capital Area Cultural Ed. Facs. Fin. Corp. Rev., Roman Catholic Diocese, Ser. B, Rmkt., Rfdg. | 6.125 | 04/01/45 | 2,050 | 2,316,295 | ||||||||||||
Central Tex. Regl. Mobility Auth. Rev., Sr. Lien (Prerefunded 01/01/20)(a) | 5.750 | 01/01/25 | 1,000 | 1,142,290 | ||||||||||||
Central Tex. Regl. Mobility Auth. Rev., Sr. Lien (Prerefunded 01/01/20)(a) | 6.000 | 01/01/41 | 2,000 | 2,384,500 | ||||||||||||
Central Tex. Regl. Mobility Auth. Rev., Sr. Lien, Ser. A | 5.000 | 01/01/45 | 1,000 | 1,123,980 | ||||||||||||
Central Tex. Regl. Mobility Auth. Rev., Sub., Rfdg. | 4.000 | 01/01/41 | 1,000 | 1,036,500 | ||||||||||||
Clifton Higher Ed. Fin. Corp. Rev., Idea Pub. Sch. | 5.000 | 08/15/42 | 1,000 | 1,106,070 | ||||||||||||
Clifton Higher Ed. Fin. Corp. Rev., Idea Pub. Sch. | 5.750 | 08/15/41 | 1,000 | 1,117,990 | ||||||||||||
Clifton Higher Ed. Fin. Corp. Rev., Idea Pub. Sch. | 6.000 | 08/15/43 | 1,000 | 1,196,550 | ||||||||||||
Clifton Higher Ed. Fin. Corp. Rev., Tejano Cmnty. Ctr., Ser. A | 9.000 | 02/15/38 | 2,000 | 2,071,540 | ||||||||||||
Clifton Higher Ed. Fin. Corp. Rev., Uplift Ed., Ser. A | 6.125 | 12/01/40 | 3,000 | 3,390,930 | ||||||||||||
Decatur Hosp. Auth. Rev., Wise Regl. Hlth. Sys., Ser. A, Rfdg. | 5.250 | 09/01/44 | 1,370 | 1,462,461 | ||||||||||||
Grand Parkway Transn. Corp., 1st Tier Toll Rev., Ser. A | 5.125 | 10/01/43 | 2,000 | 2,225,320 | ||||||||||||
Gregg Cnty. Hlth. Facs. Dev. Corp. Rev., Good Shepherd Hlth. Sys., Rfdg., 144A | 4.269 | (g) | 10/01/29 | 500 | 500,790 | |||||||||||
Harris Cnty. Cultural Edu. Facs. Fin. Corp., Houston Methodist Hosp. Oblig. | 4.000 | 12/01/45 | 1,500 | 1,573,320 | ||||||||||||
Houston Arpt. Sys. Rev., Ser. B-1, AMT | 5.000 | 07/15/35 | 2,000 | 2,208,340 | ||||||||||||
Houston Arpt. Sys. Rev., Spl. Facs. Cont. Airlines, Inc., AMT, Rfdg. | 6.625 | 07/15/38 | 1,500 | 1,725,165 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 31 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Texas (cont’d.) |
| |||||||||||||||
Houston Arpt. Sys. Rev., Spl. Facs. Cont. Airlines, Inc., Sub. Lien, Ser. A, AMT, Rfdg. | 5.000 | % | 07/01/32 | 1,000 | $ | 1,107,870 | ||||||||||
Houston Arpt. Sys. Rev., Sub. Lien, Ser. A, AMT, Rfdg. | 5.000 | 07/01/25 | 250 | 281,473 | ||||||||||||
Houston Higher Ed. Fin. Corp., Higher Ed. Rev., Cosmos Fndtn., Inc., Ser. A | 5.000 | 02/15/42 | 1,250 | 1,372,012 | ||||||||||||
Houston Higher Ed. Fin. Corp., Higher Ed. Rev., Cosmos Fndtn., Inc., Ser. A | 6.500 | 05/15/31 | 465 | 553,796 | ||||||||||||
Houston Higher Ed. Fin. Corp., Higher Ed. Rev., Cosmos Fndtn., Inc., Ser. A, (Prerefunded 05/15/21)(a) | 6.500 | 05/15/31 | 535 | 660,902 | ||||||||||||
Kerryville Hlth. Facs. Dev. Corp. Rev., Peterson Regl. Med. Ctr. Proj., Rfdg. | 5.000 | 08/15/35 | 1,000 | 1,118,210 | ||||||||||||
La Vernia Higher Ed. Fin. Corp. Ed. Rev., Kipp, Inc., Ser. A (Prerefunded 08/15/19)(a) | 6.375 | 08/15/44 | 1,000 | 1,144,620 | ||||||||||||
La Vernia Higher Ed. Fin. Corp. Ed. Rev., Lifeschools of Dallas, Ser. A (Prerefunded 08/15/19)(a) | 7.500 | 08/15/41 | 2,000 | 2,347,840 | ||||||||||||
Matagorda Cnty. Nav. Dist. No. 1, Poll. Ctrl. Rev., AEP Tex. Central Co. Proj., Ser. B-1, Rfdg. | 4.000 | 06/01/30 | 1,000 | 1,069,860 | ||||||||||||
Matagorda Cnty. Nav. Dist. No. 1, Poll. Ctrl. Rev., AEP Tex. Central Co. Proj., Ser. B-2, Rfdg. | 4.000 | 06/01/30 | 1,800 | 1,925,748 | ||||||||||||
Matagorda Cnty. Nav. Dist. No. 1, Poll. Ctrl. Rev., Bonds, Cent. Pwr. & Lt. Co. Proj., Ser. A, Rmkt., Rfdg. | 6.300 | 11/01/29 | 1,000 | 1,118,010 | ||||||||||||
Mission Econ. Dev. Corp. Rev., Sr. Lien, Natgasoline Proj., Ser. B, AMT, 144A | 5.750 | 10/01/31 | 1,000 | 1,056,380 | ||||||||||||
New Hope Cultural Ed. Facs. Corp. Rev., CHF Collegiate Housing, Tarleton St. Proj., Ser. A | 5.000 | 04/01/47 | 1,000 | 1,076,020 | ||||||||||||
New Hope Cultural Ed. Facs. Corp. Rev., Jubilee Academic Ctr., Ser. A, Rfdg. | 5.000 | 08/15/46 | 2,000 | 2,007,120 | ||||||||||||
New Hope Cultural Ed. Facs. Corp. Rev., MRC Crestview, Rfdg. | 5.000 | 11/15/46 | 1,150 | 1,263,482 | ||||||||||||
New Hope Cultural Ed. Facs. Corp. Rev., Westminster Manor Proj., Rfdg. | 4.000 | 11/01/36 | 1,250 | 1,267,513 | ||||||||||||
North Tex. Twy. Auth. Rev., First Tier, Sys., Rfdg. | 6.000 | 01/01/38 | 2,000 | 2,344,460 | ||||||||||||
North Tex. Twy. Auth. Rev., First Tier, Sys., Ser. A., Rfdg. | 5.750 | 01/01/40 | 450 | 472,563 | ||||||||||||
North Tex. Twy. Auth. Rev., First Tier, Sys., Ser. A., Rfdg. | 6.250 | 01/01/39 | 195 | 214,449 | ||||||||||||
North Tex. Twy. Auth. Rev., First Tier, Sys., Ser. A, Rfdg., (Prerefunded 01/01/19)(a) | 6.250 | 01/01/39 | 1,305 | 1,452,361 | ||||||||||||
North Tex. Twy. Auth. Rev., Ser. A, Rfdg. | 4.000 | 01/01/38 | 2,000 | 2,124,460 |
See Notes to Financial Statements.
32 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Texas (cont’d.) |
| |||||||||||||||
Pharr Higher Ed. Fin. Auth. Rev., Idea Pub. Schs., Ser. A | 6.500 | % | 08/15/39 | 175 | $ | 194,185 | ||||||||||
Pharr Higher Ed. Fin. Auth. Rev., Idea Pub. Schs., Ser. A (Prerefunded 08/15/19)(a) | 6.500 | 08/15/39 | 825 | 944,188 | ||||||||||||
Pottsboro Higher Ed. Fin. Corp. Rev., Ser. A | 5.000 | 08/15/46 | 1,000 | 1,009,420 | ||||||||||||
Sabine River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., Ser. B(c)(e) | 6.150 | 08/01/22 | 1,000 | — | (f) | |||||||||||
San Juan Higher Ed. Fin. Auth. Rev., Idea Pub. Schs., Ser. A (Prerefunded 08/15/20)(a) | 6.700 | 08/15/40 | 1,000 | 1,198,680 | ||||||||||||
Tarrant Cnty. Cultural Ed. Facs. Fin. Corp. Rev., Barton Creek Sr. Living Ctr., Rfdg. | 5.000 | 11/15/40 | 1,100 | 1,217,018 | ||||||||||||
Tarrant Cnty. Cultural Ed. Facs. Fin. Corp. Rev., Baylor Scott & White Hlth., Ser. A, Rfdg. | 4.000 | 11/15/42 | 2,750 | 2,915,660 | ||||||||||||
Tarrant Cnty. Cultural Ed. Facs. Fin. Corp. Rev., Buckingham Sr. Lvng. Cmnty. Proj., Ser. A | 5.500 | 11/15/45 | 1,900 | 2,090,152 | ||||||||||||
Tarrant Cnty. Cultural Ed. Facs. Fin. Corp. Rev., Buckingham Sr. Lvng. Cmnty. Proj., Ser. B-2 | 3.875 | 11/15/20 | 500 | 503,320 | ||||||||||||
Tarrant Cnty. Cultural Ed. Facs. Fin. Corp. Rev., Hlth. Resources Sys. Oblig., Ser. A, Rfdg. | 4.000 | 02/15/47 | 2,000 | 2,085,280 | ||||||||||||
Tarrant Cnty. Cultural Ed. Facs. Fin. Corp. Rev., Trinity Terrace Proj., Ser. A-1, Rfdg. | 5.000 | 10/01/44 | 1,000 | 1,112,410 | ||||||||||||
Texas Mun. Gas Acq. & Sply. Corp., Gas Sply. Rev., Corp. I, Sr. Lien, Ser. A | 5.250 | 12/15/26 | 4,100 | 4,983,960 | ||||||||||||
Texas Mun. Gas Acq. & Sply. Corp., Gas Sply. Rev., Corp. I, Sr. Lien, Ser. B | 1.270 | (g) | 12/15/26 | 1,500 | 1,405,935 | |||||||||||
Texas Priv. Activity Surface Transn. Corp. Rev., Sr. Lien, LBJ Infrastructure | 7.000 | 06/30/40 | 4,670 | 5,509,526 | ||||||||||||
Texas Priv. Activity Surface Transn. Corp. Rev., Sr. Lien, NTE Mobility Partners | 6.875 | 12/31/39 | 2,000 | 2,323,760 | ||||||||||||
Texas Priv. Activity Surface Transn. Corp. Rev., Sr. Lien, NTE Mobility Partners, AMT, Ser. 3A & 3B | 6.750 | 06/30/43 | 500 | 610,205 | ||||||||||||
Texas Priv. Activity Surface Transn. Corp. Rev., Sr. Lien, NTE Mobility Partners, AMT, Ser. 3A & 3B | 7.000 | 12/31/38 | 1,500 | 1,855,590 | ||||||||||||
Texas St. Pub. Fin. Auth. Chrt. Sch. Fin. Corp. Rev., Ed. Cosmos Fndtn., Ser. A (Prerefunded 02/15/20)(a) | 6.200 | 02/15/40 | 1,000 | 1,163,390 | ||||||||||||
|
| |||||||||||||||
94,483,489 | ||||||||||||||||
Utah 0.1% |
| |||||||||||||||
Utah Chrt. Sch. Fin. Auth. Rev., Spectrum Academy Proj., 144A | 6.000 | 04/15/45 | 1,000 | 1,053,700 |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 33 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value (Note 1) | ||||||||||||
LONG-TERM INVESTMENTS (Continued) |
| |||||||||||||||
Vermont 0.3% |
| |||||||||||||||
Vermont Econ. Dev. Auth. Mtge. Rev., Wake Robin Corp. Proj., Rfdg. | 5.400 | % | 05/01/33 | 1,100 | $ | 1,185,261 | ||||||||||
Vermont Edl. & Hlth. Bldgs. Fin. Agcy. Rev., Univ. VT Med. Ctr. Proj., Ser. B, Green Bond | 4.000 | 12/01/46 | 1,875 | 1,936,819 | ||||||||||||
|
| |||||||||||||||
3,122,080 | ||||||||||||||||
Virgin Islands 0.1% |
| |||||||||||||||
Virgin Islands Pub. Fin. Auth. Rev., Matching Fd. Ln. Diageo, Ser. A | 6.750 | 10/01/37 | 750 | 769,185 | ||||||||||||
Virginia 2.1% |
| |||||||||||||||
City of Chesapeake Expressway Toll Road Rev., Transn. Sys., Sr. Ser. B, CABS, Rfdg. | 3.940 | (b) | 07/15/40 | 1,000 | 802,170 | |||||||||||
Fairfax Cnty. Econ. Dev. Auth. Rev., Goodwin House Inc., Ser. A, Rfdg. | 4.000 | 10/01/42 | 1,000 | 1,033,090 | ||||||||||||
Mosaic District Cmnty. Dev. Auth. Spl. Assmt., Ser. A | 6.875 | 03/01/36 | 1,250 | 1,419,800 | ||||||||||||
Norfolk Redev. & Hsg. Auth. Multi-Fam. Rental Hsg. Facs. Rev., Sussex Apts., AMT(d) | 8.000 | 09/01/26 | 3,855 | 3,856,195 | ||||||||||||
Stafford Cnty. Econ. Dev. Auth. Rev., Mary Washington Healthcare, Rfdg. | 4.000 | 06/15/37 | 1,000 | 1,044,680 | ||||||||||||
Virginia Small Business Fin. Auth. Rev., Sr. Lien, Elizabeth River Crossings OpCo LLC Proj., AMT | 5.250 | 01/01/32 | 2,055 | 2,309,018 | ||||||||||||
Virginia Small Business Fin. Auth. Rev., Sr. Lien, Elizabeth River Crossings OpCo LLC Proj., AMT | 5.500 | 01/01/42 | 3,000 | 3,365,760 | ||||||||||||
Virginia Small Business Fin. Auth. Rev., Sr. Lien, Express Lanes LLC Proj., AMT | 5.000 | 01/01/40 | 4,780 | 5,112,736 | ||||||||||||
|
| |||||||||||||||
18,943,449 | ||||||||||||||||
Washington 1.6% |
| |||||||||||||||
Port of Seattle Indl. Dev. Corp., Spl. Facs., Delta Airlines, AMT, Rfdg. | 5.000 | 04/01/30 | 1,000 | 1,072,140 | ||||||||||||
Skagit Cnty. Pub. Hosp. Dist. No. 001 Rev., Skagit Valley Hosp. | 5.375 | 12/01/22 | 1,190 | 1,195,355 | ||||||||||||
Skagit Cnty. Pub. Hosp. Dist. No. 001 Rev., Skagit Valley Hosp. | 5.750 | 12/01/35 | 625 | 697,962 | ||||||||||||
Skagit Cnty. Pub. Hosp. Dist. No. 001 Rev., Skagit Valley Hosp., Ser. A | 5.000 | 12/01/37 | 3,000 | 3,231,300 | ||||||||||||
Tob. Settlement Auth. Wash. Rev., Rfdg. | 5.250 | 06/01/32 | 1,160 | 1,309,640 | ||||||||||||
Washington St. Healthcare Facs. Auth. Rev., Kadlec Regl. Med. Ctr., Rdfg. (Prerefunded 12/01/21)(a) | 5.000 | 12/01/42 | 1,000 | 1,185,480 | ||||||||||||
Washington St. Healthcare Facs. Auth. Rev., Overlake Hosp. Med. Ctr., Rdfg. | 5.000 | 07/01/38 | 1,100 | 1,254,484 |
See Notes to Financial Statements.
34 |
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. | 5.500 | % | 07/01/30 | 1,115 | $ | 1,256,070 | ||||||||||
Washington St. Healthcare Facs. Auth. Rev., Seattle Children’s Hosp. (Prerefunded 10/01/19)(a) | 5.625 | 10/01/38 | 1,250 | 1,415,950 | ||||||||||||
Washington St. Hsg. Fin. Comm. Rev., Rockwood Retmnt. Cmnty. Proj., Ser. A, 144A | 7.375 | 01/01/44 | 2,000 | 2,369,600 | ||||||||||||
|
| |||||||||||||||
14,987,981 | ||||||||||||||||
West Virginia 0.1% |
| |||||||||||||||
West Virginia Econ. Dev. Auth. Rev., Morgantown Energy Assoc., AMT, Rfdg. | 2.875 | 12/15/26 | 1,000 | 981,670 | ||||||||||||
Wisconsin 1.2% |
| |||||||||||||||
Pub. Fin. Auth. Arpt. Facs. Rev., Celanese Proj., Ser. C, AMT, Rfdg. | 4.300 | 11/01/30 | 3,000 | 3,088,500 | ||||||||||||
Pub. Fin. Auth. Arpt. Facs. Rev., Cornerstone Chrt. Academy Proj., Ser. A, 144A | 5.125 | 02/01/46 | 1,000 | 1,008,750 | ||||||||||||
Pub. Fin. Auth. Arpt. Facs. Rev., Bancroft Neurohealth Proj., Ser. A, 144A | 5.125 | 06/01/48 | 1,000 | 1,010,160 | ||||||||||||
Pub. Fin. Auth. Arpt. Facs. Rev., Sr. Oblig. Grp., AMT, Rfdg. | 5.000 | 07/01/42 | 1,500 | 1,586,610 | ||||||||||||
Pub. Fin. Auth. Arpt. Facs. Rev., Sr. Oblig. Grp., AMT, Rfdg. | 5.250 | 07/01/28 | 1,000 | 1,105,160 | ||||||||||||
Wisconsin Hlth. & Ed. Facs. Auth. Rev., Ascension Hlth. Credit Grp., Ser. A, Rfdg. | 4.000 | 11/15/46 | 2,500 | 2,633,800 | ||||||||||||
Wisconsin Hlth. & Ed. Facs. Auth. Rev., St. Johns Cmntys. Inc., Ser. B, Rfdg. | 5.000 | 09/15/45 | 500 | 536,460 | ||||||||||||
|
| |||||||||||||||
10,969,440 | ||||||||||||||||
Wyoming 0.1% |
| |||||||||||||||
Campbell Cnty. Solid Wste. Facs. Rev., Basin Elec. Pwr. Coop., Ser. A | 5.750 | 07/15/39 | 500 | 554,395 | ||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.9% | 910,645,534 | |||||||||||||||
Other assets in excess of liabilities 0.1% | 745,996 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 911,391,530 | ||||||||||||||
|
|
See Notes to Financial Statements.
Prudential Muni High Income Fund | 35 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
The following abbreviations are used in the semi-annual report.
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
GO—General Obligation
IDB—Industrial Development Bond
LIBOR—London Interbank Offered Rate
NATL—National Public Finance Guaranty Corp.
OTC—Over-the-counter
PCR—Pollution Control Revenue
# | Principal amount shown in U.S. dollars unless otherwise stated. |
(a) | 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. |
(b) | Represents a zero coupon or step bond. Rate quoted represents effective yield at October 31, 2016. |
(c) | Represents issuer in default on interest payments and/or principal repayment; non-income producing security. |
(d) | Indicates a security that has been deemed illiquid. |
(e) | Indicates a Level 3 security. The aggregate value of Level 3 securities is $448,800 and 0.0% of net assets. |
(f) | Less than $0.5 par. |
(g) | Variable rate instrument. The interest rate shown reflects the rate in effect at October 31, 2016. |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
36 |
The following is a summary of the inputs used as of October 31, 2016 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Municipal Bonds | ||||||||||||
Alabama | $ | — | $ | 9,927,170 | $ | — | ||||||
Arizona | — | 31,676,164 | — | |||||||||
California | — | 95,663,677 | — | |||||||||
Colorado | — | 29,814,493 | — | |||||||||
Connecticut | — | 3,710,535 | — | |||||||||
Delaware | — | 3,112,761 | — | |||||||||
District of Columbia | — | 10,563,894 | — | |||||||||
Florida | — | 69,519,206 | 448,800 | |||||||||
Georgia | — | 7,861,060 | — | |||||||||
Guam | — | 1,736,985 | — | |||||||||
Hawaii | — | 6,904,000 | — | |||||||||
Idaho | — | 2,222,040 | — | |||||||||
Illinois | — | 85,384,633 | — | |||||||||
Indiana | — | 9,480,501 | — | |||||||||
Iowa | — | 13,505,948 | — | |||||||||
Kansas | — | 1,127,380 | — | |||||||||
Kentucky | — | 6,166,600 | — | |||||||||
Louisiana | — | 14,600,660 | — | |||||||||
Maine | — | 5,261,910 | — | |||||||||
Maryland | — | 14,298,177 | — | |||||||||
Massachusetts | — | 9,955,573 | — | |||||||||
Michigan | — | 26,532,982 | — | |||||||||
Minnesota | — | 4,611,618 | — | |||||||||
Mississippi | — | 1,087,240 | — | |||||||||
Missouri | — | 19,231,529 | — | |||||||||
Nebraska | — | 3,108,360 | — | |||||||||
Nevada | — | 2,544,825 | — | |||||||||
New Hampshire | — | 977,770 | — | |||||||||
New Jersey | — | 78,587,863 | — | |||||||||
New York | — | 56,880,883 | — | |||||||||
North Carolina | — | 3,016,208 | — | |||||||||
North Dakota | — | 877,838 | — | |||||||||
Ohio | — | 30,246,475 | — | |||||||||
Oklahoma | — | 7,586,240 | — | |||||||||
Oregon | — | 4,305,520 | — | |||||||||
Pennsylvania | — | 56,198,446 | — | |||||||||
Puerto Rico | — | 14,809,418 | — | |||||||||
Rhode Island | — | 2,945,794 | — | |||||||||
South Carolina | — | 4,508,880 | — | |||||||||
South Dakota | — | 1,828,444 | — |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 37 |
Portfolio of Investments (unaudited) (continued)
as of October 31, 2016
Level 1 | Level 2 | Level 3 | ||||||||||
Municipal Bonds (continued) | ||||||||||||
Tennessee | $ | — | $ | 11,951,645 | $ | — | ||||||
Texas | — | 94,483,489 | — | |||||||||
Utah | — | 1,053,700 | — | |||||||||
Vermont | — | 3,122,080 | — | |||||||||
Virgin Islands | — | 769,185 | — | |||||||||
Virginia | — | 18,943,449 | — | |||||||||
Washington | — | 14,987,981 | — | |||||||||
West Virginia | — | 981,670 | — | |||||||||
Wisconsin | — | 10,969,440 | — | |||||||||
Wyoming | — | 554,395 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | — | $ | 910,196,734 | $ | 448,800 | ||||||
|
|
|
|
|
|
During the period, there were no transfers between Level 1 and Level 2 to report.
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of October 31, 2016 were as follows:
Health Care | 25.9 | % | ||
Corporate Backed IDB & PCR | 12.2 | |||
Tobacco Appropriated | 11.1 | |||
Education | 9.6 | |||
Special Tax/Assessment District | 7.7 | |||
Transportation | 7.3 | |||
Pre-Refunded | 6.9 | |||
Power | 6.4 | |||
General Obligation | 4.7 | |||
Other | 2.8 | % | ||
Water & Sewer | 2.1 | |||
Lease Backed Certificate of Participation | 1.6 | |||
Solid Waste/Resource Recovery | 1.2 | |||
Housing | 0.4 | |||
|
| |||
99.9 | ||||
Other assets in excess of liabilities | 0.1 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
38 |
This Page Intentionally Left Blank
Statement of Assets & Liabilities (unaudited)
as of October 31, 2016
Assets | ||||
Unaffiliated investments (cost $854,511,900) | $ | 910,645,534 | ||
Cash | 188,519 | |||
Interest receivable | 14,914,973 | |||
Receivable for Fund shares sold | 1,779,781 | |||
Receivable for investments sold | 1,544,335 | |||
Prepaid expenses | 9,159 | |||
|
| |||
Total Assets | 929,082,301 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 12,013,786 | |||
Payable for Fund shares reacquired | 4,548,147 | |||
Dividends payable | 396,402 | |||
Management fee payable | 391,899 | |||
Distribution fee payable | 222,833 | |||
Accrued expenses | 103,867 | |||
Affiliated transfer agent fee payable | 12,385 | |||
Deferred trustees’ fees | 1,452 | |||
|
| |||
Total Liabilities | 17,690,771 | |||
|
| |||
Net Assets | $ | 911,391,530 | ||
|
| |||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 874,873 | ||
Paid-in capital in excess of par | 884,288,313 | |||
|
| |||
885,163,186 | ||||
Undistributed net investment income | 5,611,103 | |||
Accumulated net realized loss on investment transactions | (35,516,393 | ) | ||
Net unrealized appreciation on investments | 56,133,634 | |||
|
| |||
Net assets, October 31, 2016 | $ | 911,391,530 | ||
|
|
See Notes to Financial Statements.
40 |
Class A | ||||
Net asset value and redemption price per share | $ | 10.42 | ||
Maximum sales charge (4.00% of offering price) | 0.43 | |||
|
| |||
Maximum offering price to public | $ | 10.85 | ||
|
| |||
Class B | ||||
Net asset value, offering price and redemption price per share | $ | 10.43 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share | $ | 10.42 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share | $ | 10.41 | ||
|
|
See Notes to Financial Statements.
Prudential Muni High Income Fund | 41 |
Statement of Operations (unaudited)
Six Months Ended October 31, 2016
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 21,593,532 | ||
|
| |||
Expenses | ||||
Management fee | 2,294,306 | |||
Distribution fee—Class A | 519,370 | |||
Distribution fee—Class B | 140,612 | |||
Distribution fee—Class C | 664,659 | |||
Transfer agent’s fees and expenses (including affiliated expense of $36,400) | 280,000 | |||
Custodian and accounting fees | 63,000 | |||
Registration fees | 62,000 | |||
Shareholders’ reports | 23,000 | |||
Audit fee | 17,000 | |||
Legal fees and expenses | 13,000 | |||
Trustees’ fees | 11,000 | |||
Insurance expenses | 4,000 | |||
Loan interest expense | 1,450 | |||
Miscellaneous | 9,746 | |||
|
| |||
Total expenses | 4,103,143 | |||
Less: Custodian fee credit | (976 | ) | ||
|
| |||
Net expenses | 4,102,167 | |||
|
| |||
Net investment income (loss) | 17,491,365 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on investment transactions | (5,485,155 | ) | ||
Net change in unrealized appreciation (depreciation) on investments | 1,457,258 | |||
|
| |||
Net gain (loss) on investment transactions | (4,027,897 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 13,463,468 | ||
|
|
See Notes to Financial Statements.
42 |
Statement of Changes in Net Assets (unaudited)
Six Months Ended October 31, 2016 | Year Ended April 30, 2016 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 17,491,365 | $ | 32,153,324 | ||||
Net realized gain (loss) on investment transactions | (5,485,155 | ) | (594,815 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments | 1,457,258 | 14,546,551 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 13,463,468 | 46,105,060 | ||||||
|
|
|
| |||||
Dividends from net investment income (Note 1) | ||||||||
Class A | (7,706,211 | ) | (15,806,835 | ) | ||||
Class B | (977,557 | ) | (2,336,461 | ) | ||||
Class C | (1,981,888 | ) | (3,811,311 | ) | ||||
Class Z | (6,264,443 | ) | (9,213,224 | ) | ||||
|
|
|
| |||||
(16,930,099 | ) | (31,167,831 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) (Note 6) | ||||||||
Net proceeds from shares sold | 125,635,596 | 257,847,816 | ||||||
Net asset value of shares issued in reinvestment of dividends | 14,362,916 | 26,212,662 | ||||||
Cost of shares reacquired | (85,528,899 | ) | (162,486,369 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 54,469,613 | 121,574,109 | ||||||
|
|
|
| |||||
Total increase (decrease) | 51,002,982 | 136,511,338 | ||||||
Net Assets: | ||||||||
Beginning of period | 860,388,548 | 723,877,210 | ||||||
|
|
|
| |||||
End of period (a) | $ | 911,391,530 | $ | 860,388,548 | ||||
|
|
|
| |||||
(a) Includes undistributed net investment income of: | $ | 5,611,103 | $ | 5,049,837 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential Muni High Income Fund | 43 |
Notes to Financial Statements (unaudited)
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 securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Trustees (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to Prudential Investments LLC (“PI” or “Manager”). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.
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.
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Fixed income securities traded in the OTC market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices after evaluating observable inputs including, but not limited to yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations, and reported trades. Securities valued using such vendor prices are classified as Level 2 in the fair value hierarchy.
Bank loans are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Bank loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy.
OTC derivative instruments are generally valued using pricing vendor services, which derive the valuation based on inputs such as underlying asset prices, indices, spreads, interest rates, and exchange rates. These instruments are categorized as Level 2 in the fair value hierarchy.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are generally valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.
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.
Prudential Muni High Income Fund | 45 |
Notes to Financial Statements (continued)
Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Fund’s Subadviser under the guidelines adopted by the 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.
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 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 six months ended October 31, 2016, 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
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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 permit investments in inverse floating rate securities. Inverse floaters held by the Fund are securities exempt from the registration requirements 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.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (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 an accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
Net investment income or loss (other than distribution fees which are charged directly to the respective class) and unrealized and realized gains (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 may differ from generally accepted accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (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.
Prudential Muni High Income Fund | 47 |
Notes to Financial Statements (continued)
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 subadviser’s performance of such services. PI has entered into a subadvisory agreement with PGIM, Inc., which provides subadvisory services to the Fund through its Prudential Fixed Income (“PFI”) unit. The subadvisory agreement provides that PFI will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PFI is obligated to keep certain books and records of the Fund. PI pays for the services of PFI, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to PI is accrued daily and payable monthly at an annual rate of .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 six months ended October 31, 2016.
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 “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .25%, .50% and 1% of the average daily net assets of the Class A, B and C shares, respectively.
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PIMS has advised the Fund that it has received $298,409 for Class A shares in front-end sales charges during the six months ended October 31, 2016. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the six months ended October 31, 2016 it received $7,771, $28,198 and $2,343 in contingent deferred sales charges imposed upon redemptions by certain Class A, Class B and Class C shareholders, respectively.
PI, PGIM, Inc. and PIMS are indirect wholly owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.
Note 4. Portfolio Securities
The cost of purchases and proceeds from sales of portfolio securities, other than short-term investments, for the six months ended October 31, 2016, were $168,576,071 and $112,368,584, 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. Tax Information
The United States federal income tax basis of the Fund’s investments and net unrealized appreciation as of October 31, 2016 were as follows:
Tax Basis | $ | 851,149,808 | ||
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| |||
Appreciation | 70,564,813 | |||
Depreciation | (11,069,087 | ) | ||
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Net Unrealized Appreciation | $ | 59,495,726 | ||
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The book basis may differ from tax basis due to certain tax-related adjustments.
Prudential Muni High Income Fund | 49 |
Notes to Financial Statements (continued)
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 October 31, 2016, the pre and post-enactment losses were approximately:
Post-Enactment Losses: | $ | 14,998,000 | ||
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| |||
Pre-Enactment Losses: | ||||
Expiring 2019 | $ | 19,389,000 | ||
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Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Fund offers Class A, Class B, Class C 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 B shares are closed to new purchases. 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.
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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.
As of October 31, 2016, 5 shareholders of record held 59% of the Fund’s outstanding shares on behalf of multiple beneficial owners.
Transactions in shares of beneficial interest were as follows:
Class A | Shares | Amount | ||||||
Six months ended October 31, 2016: | ||||||||
Shares sold | 2,762,461 | $ | 29,260,339 | |||||
Shares issued in reinvestment of dividends and distributions | 625,416 | 6,616,302 | ||||||
Shares reacquired | (3,157,266 | ) | (33,337,387 | ) | ||||
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| |||||
Net increase (decrease) in shares outstanding before conversion | 230,611 | 2,539,254 | ||||||
Shares issued upon conversion from other share class(es) | 328,959 | 3,490,039 | ||||||
Shares reacquired upon conversion into other share class(es) | (440,342 | ) | (4,663,464 | ) | ||||
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Net increase (decrease) in shares outstanding | 119,228 | $ | 1,365,829 | |||||
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Year ended April 30, 2016: | ||||||||
Shares sold | 8,364,318 | $ | 85,816,215 | |||||
Shares issued in reinvestment of dividends and distributions | 1,315,807 | 13,493,720 | ||||||
Shares reacquired | (7,293,780 | ) | (74,678,747 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 2,386,345 | 24,631,188 | ||||||
Shares issued upon conversion from other share class(es) | 346,818 | 3,544,978 | ||||||
Shares reacquired upon conversion into other share class(es) | (737,527 | ) | (7,558,446 | ) | ||||
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Net increase (decrease) in shares outstanding | 1,995,636 | $ | 20,617,720 | |||||
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Class B | ||||||||
Six months ended October 31, 2016: | ||||||||
Shares sold | 8,198 | $ | 86,491 | |||||
Shares issued in reinvestment of dividends and distributions | 70,775 | 749,146 | ||||||
Shares reacquired | (297,301 | ) | (3,139,899 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | (218,328 | ) | (2,304,262 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (297,591 | ) | (3,158,737 | ) | ||||
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Net increase (decrease) in shares outstanding | (515,919 | ) | $ | (5,462,999 | ) | |||
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Year ended April 30, 2016: | ||||||||
Shares sold | 124,202 | $ | 1,280,741 | |||||
Shares issued in reinvestment of dividends and distributions | 176,583 | 1,810,797 | ||||||
Shares reacquired | (641,094 | ) | (6,570,919 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | (340,309 | ) | (3,479,381 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (279,788 | ) | (2,861,043 | ) | ||||
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Net increase (decrease) in shares outstanding | (620,097 | ) | $ | (6,340,424 | ) | |||
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Prudential Muni High Income Fund | 51 |
Notes to Financial Statements (continued)
Class C | Shares | Amount | ||||||
Six months ended October 31, 2016: | ||||||||
Shares sold | 1,509,986 | $ | 15,976,291 | |||||
Shares issued in reinvestment of dividends and distributions | 153,796 | 1,627,137 | ||||||
Shares reacquired | (738,502 | ) | (7,806,847 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 925,280 | 9,796,581 | ||||||
Shares reacquired upon conversion into other share class(es) | (93,233 | ) | (986,862 | ) | ||||
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Net increase (decrease) in shares outstanding | 832,047 | $ | 8,809,719 | |||||
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Year ended April 30, 2016: | ||||||||
Shares sold | 3,167,844 | $ | 32,530,046 | |||||
Shares issued in reinvestment of dividends and distributions | 304,879 | 3,127,909 | ||||||
Shares reacquired | (1,630,667 | ) | (16,679,587 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 1,842,056 | 18,978,368 | ||||||
Shares issued upon conversion from other share class(es) | 16,272 | 165,810 | ||||||
Shares reacquired upon conversion into other share class(es) | (155,883 | ) | (1,596,604 | ) | ||||
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Net increase (decrease) in shares outstanding | 1,702,445 | $ | 17,547,574 | |||||
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Class Z | ||||||||
Six months ended October 31, 2016: | ||||||||
Shares sold | 7,595,211 | $ | 80,312,475 | |||||
Shares issued in reinvestment of dividends and distributions | 508,161 | 5,370,331 | ||||||
Shares reacquired | (3,913,751 | ) | (41,244,766 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 4,189,621 | 44,438,040 | ||||||
Shares issued upon conversion from other share class(es) | 543,212 | 5,743,394 | ||||||
Shares reacquired upon conversion into other share class(es) | (40,149 | ) | (424,370 | ) | ||||
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Net increase (decrease) in shares outstanding | 4,692,684 | $ | 49,757,064 | |||||
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Year ended April 30, 2016: | ||||||||
Shares sold | 13,461,841 | $ | 138,220,814 | |||||
Shares issued in reinvestment of dividends and distributions | 758,775 | 7,780,236 | ||||||
Shares reacquired | (6,308,497 | ) | (64,557,116 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 7,912,119 | 81,443,934 | ||||||
Shares issued upon conversion from other shares class(es) | 890,876 | 9,115,612 | ||||||
Shares reacquired upon conversion into other share class(es) | (79,348 | ) | (810,307 | ) | ||||
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Net increase (decrease) in shares outstanding | 8,723,647 | $ | 89,749,239 | |||||
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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 6, 2016 through October 5, 2017. The Funds pay an annualized commitment fee of .15% of the unused portion of the SCA. The interest rate on borrowings under the SCA is paid monthly and at a per annum rate based upon the higher of 0.0%, the effective federal funds rate, or the One-Month LIBOR rate, plus a contractual spread. Prior to October 6, 2016, the Funds had
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another SCA that provided a commitment of $900 million and the Funds paid an annualized commitment fee of .11% of the unused portion of the SCA. The interest rate on borrowings was substantially the same. The Fund’s portion of the commitment fee for the unused amount is accrued daily and paid quarterly.
The Fund utilized the SCA during the six months ended October 31, 2016. The average daily balance for the 37 days that the Fund had loans outstanding during the period was $798,757, borrowed at a weighted interest rate of 1.77%. The maximum loan balance outstanding during the period was $2,103,000. At October 31, 2016, the Fund did not have an outstanding loan balance.
Note 8. Recent Accounting Pronouncements and Reporting Updates
In January 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-01 regarding “Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information and addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The new standard affects all entities that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. At this time, management is evaluating the implications of ASU No. 2016-01 and its impact on the financial statements and disclosures has not yet been determined.
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. In an effort to enhance monitoring and regulation, the new rules and forms will allow the SEC to more effectively collect and use data reported by funds. The new rules also enhance disclosure regarding fund liquidity and redemption practices. Also under the new rules, the SEC will permit open-end funds, with the exception of money market funds, to offer swing pricing, subject to board approval and review. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
Note 9. Notice of Dividends to Shareholders
In addition to the monthly dividends paid by the Fund, the Fund declared ordinary income dividends on November 28, 2016 to shareholders of record on November 29, 2016. The ex-dividend date was November 30, 2016. The per share amounts declared were as follows:
Ordinary Income | ||||
Class A | $ | 0.00193 | ||
Class B | $ | 0.00193 | ||
Class C | $ | 0.00193 | ||
Class Z | $ | 0.00193 |
Prudential Muni High Income Fund | 53 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended October 31, | Year Ended April 30, | |||||||||||||||||||||||||||
2016 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.45 | $10.26 | $9.91 | $10.47 | $10.02 | $9.18 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .21 | .44 | .44 | .47 | .47 | .48 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (.04 | ) | .18 | .36 | (.57 | ) | .44 | .83 | ||||||||||||||||||||
Total from investment operations | .17 | .62 | .80 | (.10 | ) | .91 | 1.31 | |||||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.20 | ) | (.43 | ) | (.45 | ) | (.46 | ) | (.46 | ) | (.47 | ) | ||||||||||||||||
Net asset value, end of period | $10.42 | $10.45 | $10.26 | $9.91 | $10.47 | $10.02 | ||||||||||||||||||||||
Total Return(b): | 1.58% | 6.19% | 8.19% | (.71)% | 9.26% | 14.61% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $403,099 | $402,933 | $375,176 | $373,610 | $442,197 | $406,033 | ||||||||||||||||||||||
Average net assets (000) | $412,122 | $379,356 | $376,328 | $367,792 | $432,410 | $383,978 | ||||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .86% | (e) | .87% | .87% | .87% | .86% | .87% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | .86% | (e) | .87% | .91% | .92% | .91% | .92% | |||||||||||||||||||||
Net investment income (loss) | 3.86% | (e) | 4.30% | 4.36% | 4.90% | 4.55% | 4.95% | |||||||||||||||||||||
Portfolio turnover rate(c) | 5% | (f) | 7% | 10% | 17% | 19% | 15% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate including variable rate demand notes was 12% for the six months ended October 31, 2016, 9% for the year ended April 30, 2016, 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013 and 35% for the year ended April 30, 2012. |
(d) | Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets and the .05% contractual 12b-1 fee waiver was terminated. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
54 |
Class B Shares | ||||||||||||||||||||||||||||
Six Months Ended October 31, | Year Ended April 30, | |||||||||||||||||||||||||||
2016 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.46 | $10.27 | $9.92 | $10.48 | $10.03 | $9.19 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .19 | .42 | .42 | .45 | .44 | .45 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (.04 | ) | .17 | .36 | (.57 | ) | .45 | .84 | ||||||||||||||||||||
Total from investment operations | .15 | .59 | .78 | (.12 | ) | .89 | 1.29 | |||||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.18 | ) | (.40 | ) | (.43 | ) | (.44 | ) | (.44 | ) | (.45 | ) | ||||||||||||||||
Net asset value, end of period | $10.43 | $10.46 | $10.27 | $9.92 | $10.48 | $10.03 | ||||||||||||||||||||||
Total Return(b): | 1.46% | 5.93% | 7.92% | (.95)% | 8.99% | 14.33% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $52,076 | $57,613 | $62,944 | $67,445 | $77,670 | $54,084 | ||||||||||||||||||||||
Average net assets (000) | $55,788 | $59,446 | $66,035 | $68,456 | $67,171 | $43,752 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.11% | (d) | 1.12% | 1.12% | 1.12% | 1.11% | 1.12% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.11% | (d) | 1.12% | 1.12% | 1.12% | 1.11% | 1.12% | |||||||||||||||||||||
Net investment income (loss) | 3.61% | (d) | 4.06% | 4.11% | 4.66% | 4.30% | 4.69% | |||||||||||||||||||||
Portfolio turnover rate(c) | 5% | (e) | 7% | 10% | 17% | 19% | 15% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate including variable rate demand notes was 12% for the six months ended October 31, 2016, 9% for the year ended April 30, 2016, 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013 and 35% for the year ended April 30, 2012. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 55 |
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended October 31, | Year Ended April 30, | |||||||||||||||||||||||||||
2016 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.45 | $10.27 | $9.92 | $10.47 | $10.03 | $9.19 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .17 | .36 | .37 | .40 | .39 | .40 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (.04 | ) | .17 | .35 | (.56 | ) | .44 | .84 | ||||||||||||||||||||
Total from investment operations | .13 | .53 | .72 | (.16 | ) | .83 | 1.24 | |||||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.16 | ) | (.35 | ) | (.37 | ) | (.39 | ) | (.39 | ) | (.40 | ) | ||||||||||||||||
Net asset value, end of period | $10.42 | $10.45 | $10.27 | $9.92 | $10.47 | $10.03 | ||||||||||||||||||||||
Total Return(b): | 1.21% | 5.31% | 7.39% | (1.36)% | 8.35% | 13.77% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $133,764 | $125,439 | $105,708 | $89,990 | $120,882 | $93,969 | ||||||||||||||||||||||
Average net assets (000) | $131,852 | $111,295 | $97,740 | $96,402 | $109,555 | $82,069 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.61% | (d) | 1.62% | 1.62% | 1.62% | 1.61% | 1.62% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.61% | (d) | 1.62% | 1.62% | 1.62% | 1.61% | 1.62% | |||||||||||||||||||||
Net investment income (loss) | 3.11% | (d) | 3.55% | 3.61% | 4.15% | 3.80% | 4.20% | |||||||||||||||||||||
Portfolio turnover rate(c) | 5% | (e) | 7% | 10% | 17% | 19% | 15% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate including variable rate demand notes was 12% for the six months ended October 31, 2016, 9% for the year ended April 30, 2016, 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013 and 35% for the year ended April 30, 2012. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
56 |
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended October 31, | Year Ended April 30, | |||||||||||||||||||||||||||
2016 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.44 | $10.25 | $9.90 | $10.46 | $10.01 | $9.17 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .22 | .46 | .47 | .50 | .50 | .50 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | (.04 | ) | .18 | .36 | (.57 | ) | .44 | .84 | ||||||||||||||||||||
Total from investment operations | .18 | .64 | .83 | (.07 | ) | .94 | 1.34 | |||||||||||||||||||||
Less Dividends: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.21 | ) | (.45 | ) | (.48 | ) | (.49 | ) | (.49 | ) | (.50 | ) | ||||||||||||||||
Net asset value, end of period | $10.41 | $10.44 | $10.25 | $9.90 | $10.46 | $10.01 | ||||||||||||||||||||||
Total Return(b): | 1.73% | 6.48% | 8.48% | (.47)% | 9.54% | 14.92% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $322,452 | $274,404 | $180,050 | $118,489 | $140,403 | $106,432 | ||||||||||||||||||||||
Average net assets (000) | $310,497 | $208,377 | $152,856 | $116,356 | $129,038 | $84,036 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .61% | (d) | .62% | .62% | .62% | .61% | .62% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | .61% | (d) | .62% | .62% | .62% | .61% | .62% | |||||||||||||||||||||
Net investment income (loss) | 4.11% | (d) | 4.54% | 4.61% | 5.15% | 4.80% | 5.18% | |||||||||||||||||||||
Portfolio turnover rate(c) | 5% | (e) | 7% | 10% | 17% | 19% | 15% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | The portfolio turnover rate including variable rate demand notes was 12% for the six months ended October 31, 2016, 9% for the year ended April 30, 2016, 17% for the year ended April 30, 2015, 24% for the year ended April 30, 2014, 39% for the year ended April 30, 2013 and 35% for the year ended April 30, 2012. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Muni High Income Fund | 57 |
Approval of Advisory Agreements
The Fund’s Board of Trustees
The Board of Trustees (the “Board”) of the Prudential Muni High Income Fund (the “Fund”)1 consists of ten individuals, seven of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Trustees have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Trustee. The Board has established three standing committees: the Audit Committee, the Nominating and Governance Committee, and the Investment Committee. Each committee is chaired by, and composed of, Independent Trustees.
Annual Approval of the Fund’s Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with Prudential Investments LLC (“PI”) and the Fund’s subadvisory agreement with PGIM, Inc. (“PGIM”) on behalf of its PGIM Fixed Income (“PGIM Fixed Income”) unit. In considering the renewal of the agreements, the Board, including all of the Independent Trustees, met on June 7-9, 2016 and approved the renewal of the agreements through July 31, 2017, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PI and PGIM. Also, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PI and the subadviser, the performance of the Fund, the profitability of PI and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund. In connection with its deliberations, the Board considered information provided by PI throughout the year at regular Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 7-9, 2016.
1 | Prudential Muni High Income Fund is the sole series of Prudential Investment Portfolios 4. |
Prudential Muni High Income Fund |
Approval of Advisory Agreements (continued)
The Trustees determined that the overall arrangements between the Fund and PI, which serves as the Fund’s investment manager pursuant to a management agreement, and between PI and PGIM, which, through its PGIM Fixed Income unit, serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PI, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Trustees considered relevant in the exercise of their business judgment.
The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality, and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PI and PGIM Fixed Income. The Board considered the services provided by PI, including but not limited to the oversight of the subadviser for the Fund, as well as the provision of fund recordkeeping, compliance, and other services to the Fund. With respect to PI’s oversight of the subadviser, the Board noted that PI’s Strategic Investment Research Group (“SIRG”), which is a business unit of PI, is responsible for monitoring and reporting to PI’s senior management on the performance and operations of the subadviser. The Board also considered that PI pays the salaries of all of the officers and interested Trustees of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by PGIM Fixed Income, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PI’s evaluation of the subadviser, as well as PI’s recommendation, based on its review of the subadviser, to renew the subadvisory agreement.
The Board considered the qualifications, backgrounds and responsibilities of PI’s senior management responsible for the oversight of the Fund and PGIM, and also considered the qualifications, backgrounds and responsibilities of PGIM Fixed Income’s portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PI’s and PFI’s organizational structure, senior management, investment operations, and other relevant information pertaining to both PI and PGIM Fixed Income. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to both PI and PGIM Fixed Income. The Board noted that PGIM Fixed Income is affiliated with PI.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PI and the subadvisory services provided to the Fund by PGIM, and that there was a reasonable basis on which to conclude that the
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Fund benefits from the services provided by PI and PGIM under the management and subadvisory agreements.
Costs of Services and Profits Realized by PI
The Board was provided with information on the profitability of PI and its affiliates in serving as the Fund’s investment manager. The Board discussed with PI the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. The Board further noted that the subadviser is affiliated with PI and that its profitability is reflected in PI’s profitability report. Taking these factors into account, the Board concluded that the profitability of PI and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
PI and the Board previously retained an outside business consulting firm to review management fee breakpoint usage and trends in management fees across the mutual fund industry. The consulting firm presented its analysis and conclusions as to the Funds’ management fee structures to the Board and PI. The Board and PI have discussed these conclusions extensively since that presentation.
The Board received and discussed information concerning economies of scale that PI may realize as the Fund’s assets grow beyond current levels. The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase, but that at its current level of assets the Fund does not realize the effect of those rate reductions. The Board took note that the Fund’s fee structure currently results in benefits to Fund shareholders whether or not PI realizes any economies of scale. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PI’s assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PI’s costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Prudential Muni High Income Fund |
Approval of Advisory Agreements (continued)
Other Benefits to PI and PGIM Fixed Income
The Board considered potential ancillary benefits that might be received by PI and PGIM Fixed Income and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PI included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PI), and benefits to its reputation as well as other intangible benefits resulting from PI’s association with the Fund. The Board concluded that the potential benefits to be derived by PGIM Fixed Income included its ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to its reputation. The Board concluded that the benefits derived by PI and PGIM Fixed Income were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Fund / Fees and Expenses
The Board considered certain additional specific factors and made related conclusions relating to the historical performance of the Fund for the one-, three-, five-, and ten-year periods ended December 31, 2015.
The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended April 30, 2015. The Board considered the management fee for the Fund as compared to the management fee charged by PI to other funds and the fee charged by other advisers to comparable mutual funds in a Peer Group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.
The mutual funds included in the Peer Universe (the Lipper High Yield Municipal Debt Funds Performance Universe) and the Peer Group were objectively determined by Broadridge, an independent provider of mutual fund data. The comparisons placed the Fund in various quartiles, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth gross performance comparisons (which do not reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the Peer Universe, actual management fees with the Peer Group (which reflect the impact of
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any subsidies or fee waivers), and net total expenses with the Peer Group, each of which were key factors considered by the Board.
Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
2nd Quartile | 2nd Quartile | 2nd Quartile | 1st Quartile | |||||
Actual Management Fees: 2nd Quartile | ||||||||
Net Total Expenses: 2nd Quartile |
• | The Board noted that the Fund outperformed its benchmark index over all periods. |
• | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
• | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of the Fund and its shareholders.
Prudential Muni High Income Fund |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | www.prudentialfunds.com |
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 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 • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer |
MANAGER | Prudential Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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INVESTMENT SUBADVISER | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | One Wall Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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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, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PRUDENTIAL MUNI HIGH INCOME FUND
SHARE CLASS | A | B | C | Z | ||||
NASDAQ | PRHAX | PMHYX | PHICX | PHIZX | ||||
CUSIP | 74440M104 | 74440M203 | 74440M302 | 74440M401 |
MF133E2 0300128-00001-00
Item 2 – | Code of Ethics – Not required, as this is not an annual filing. | |||||
Item 3 – | Audit Committee Financial Expert – Not required, as this is not an annual filing. | |||||
Item 4 – | Principal Accountant Fees and Services – Not required, as this is not an annual filing. | |||||
Item 5 – | Audit Committee of Listed Registrants – Not applicable. | |||||
Item 6 – | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. | |||||
Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. | |||||
Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. | |||||
Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. | |||||
Item 10 – | Submission of Matters to a Vote of Security Holders – Not applicable. | |||||
Item 11 – | Controls and Procedures | |||||
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. | |||||
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. | |||||
Item 12 – | Exhibits | |||||
(a) | (1) | Code of Ethics – Not required, as this is not an annual filing. | ||||
(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. | |||||
(3) | Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. | |||||
(4) | 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: | December 20, 2016 | |||
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: | December 20, 2016 | |||
By: | /s/ M. Sadiq Peshimam | |||
M. Sadiq Peshimam | ||||
Treasurer and Principal Financial and Accounting Officer | ||||
Date: | December 20, 2016 |