UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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Investment Company Act file number: | | 811-06677 |
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Exact name of registrant as specified in charter: | | Prudential Investment Portfolios 8 |
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Address of principal executive offices: | | Gateway Center 3, |
| | 100 Mulberry Street, |
| | Newark, New Jersey 07102 |
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Name and address of agent for service: | | Deborah A. Docs |
| | Gateway Center 3, |
| | 100 Mulberry Street, |
| | Newark, New Jersey 07102 |
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Registrant’s telephone number, including area code: | | 800-225-1852 |
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Date of fiscal year end: | | 9/30/2013 |
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Date of reporting period: | | 3/31/2013 |
Item 1 – Reports to Stockholders
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PRUDENTIAL INVESTMENTS»MUTUAL FUNDS
PRUDENTIAL STOCK INDEX FUND
SEMIANNUAL REPORT · MARCH 31, 2013
Fund Type
Large-Cap Stock
Objective
Provide investment results that correspond to the price and yield performance of the S&P 500 Index
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 March 31, 2013, were not audited, and accordingly, no auditor’s opinion is expressed on them.
Prudential Investments, Prudential, the
Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-13-243025/g520923g48p14.jpg)
May 15, 2013
Dear Shareholder:
We hope you find the semiannual report for the Prudential Stock Index Fund informative and useful. The report covers performance for the six-month period that ended March 31, 2013.
We recognize that ongoing market volatility may make it a difficult time to be an investor. We continue to believe a prudent response to uncertainty is to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
Prudential Investments® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers* that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.
Thank you for choosing the Prudential Investments family of funds.
Sincerely,
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-13-243025/g520923g42m21.jpg)
Stuart S. Parker, President
Prudential Stock Index Fund
* Most of Prudential Investments’ equity funds are advised by Jennison Associates LLC, Quantitative Management Associates LLC (QMA), or Prudential Real Estate Investors. Prudential Investments’ fixed income and money market funds are advised by Prudential Investment Management, Inc. (PIM) through its Prudential Fixed Income unit. Jennison Associates LLC, QMA, and PIM are registered investment advisers and Prudential Financial companies. Prudential Real Estate Investors is a unit of PIM.
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Prudential Stock Index Fund | | | 1 | |
Your Fund’s Performance (Unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The maximum initial sales charge is 3.25% (Class A shares). Gross operating expenses: Class A, 0.75%; Class C, 1.38%; Class I, 0.41%; Class Z, 0.47%. Net operating expenses: Class A, 0.53%; Class C, 1.16%; Class I, 0.19%; Class Z, 0.25%, after contractual reduction through 1/31/2014.
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Cumulative Total Returns (Without Sales Charges) as of 3/31/13 | |
| | Six Months | | | One Year | | | Five Years | | | Ten Years | |
Class A | | | 9.90 | % | | | 13.36 | % | | | 29.92 | % | | | 115.90 | % |
Class C | | | 9.55 | | | | 12.66 | | | | 25.51 | | | | 100.88 | |
Class I | | | 10.12 | | | | 13.80 | | | | 32.28 | | | | 123.61 | |
Class Z | | | 10.06 | | | | 13.70 | | | | 31.87 | | | | 122.04 | |
S&P 500 Index | | | 10.18 | | | | 13.95 | | | | 32.63 | | | | 126.68 | |
Lipper S&P 500 Index Objective Funds Average | | | 9.84 | | | | 13.31 | | | | 29.10 | | | | 116.08 | |
| | | | | | | | | | | | | | | | |
Average Annual Total Returns (With Sales Charges) as of 3/31/13 | |
| | | | | One Year | | | Five Years | | | Ten Years | |
Class A | | | | | | | 9.68 | % | | | 4.68 | % | | | 7.64 | % |
Class C | | | | | | | 11.66 | | | | 4.65 | | | | 7.22 | |
Class I | | | | | | | 13.80 | | | | 5.76 | | | | 8.38 | |
Class Z | | | | | | | 13.70 | | | | 5.69 | | | | 8.30 | |
S&P 500 Index | | | | | | | 13.95 | | | | 5.81 | | | | 8.53 | |
Lipper S&P 500 Index Objective Funds Average | | | | | | | 13.31 | | | | 5.24 | | | | 8.00 | |
Source: Prudential Investments LLC and Lipper Inc.
The average annual total returns take into account applicable sales charges. Class A shares are subject to a maximum front-end sales charge of 3.25% and a 12b-1 fee of 0.30% annually. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (CDSC) of 1%. The Class A CDSC is waived for purchases by certain retirement or benefit plans. 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. Class C shares are not subject to a front-end sales charge, but charge a CDSC of 1% for Class C shares sold within 12 months from the date of purchase and an annual 12b-1 fee of 1%. Class I and Class Z shares are not subject to front-end sales charges, CDSC, or 12b-1 fees. Without waiver of fees and/or expense subsidization, the Fund’s total returns would have been lower. The returns in the tables reflect the share class expense structure in effect at the close of the fiscal period. 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.
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2 | | Visit our website at www.prudentialfunds.com |
Benchmark Definitions
S&P 500 Index
The S&P 500 Index is an unmanaged index of 500 stocks of large U.S. public companies. It is a broad representation of how U.S. stock prices have performed.
Lipper S&P 500 Index Objective Funds Average
The Lipper S&P 500 Index Objective Funds Average (Lipper Average) represents returns based on the average return of all funds in the Lipper S&P 500 Index Objective Funds category for the periods noted. Funds in the Lipper Average are passively managed, limited expense (management fee no higher than 0.50%) funds designed to replicate the performance of the S&P 500 Index on a reinvested basis.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
S&P 500 Index as of 3/31/13
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-13-243025/g520923g61f14.jpg)
Source: FactSet.
“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500”, and “500” are trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by Prudential Investments LLC, its affiliates, and subsidiaries. The Prudential Stock Index Fund is not sponsored, endorsed, sold, or promoted by S&P and S&P makes no representation regarding the advisability of investing in the Fund.
The performance cited does not represent the performance of the Prudential Stock Index Fund. Past performance does not guarantee future results. Investors cannot invest directly in an index or average.
* Sector weightings are subject to change.
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Prudential Stock Index Fund | | | 3 | |
Fees and Expenses (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on October 1, 2012, at the beginning of the period, and held through the six-month period ended March 31, 2013. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
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 Investment funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
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
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4 | | Visit our website at www.prudentialfunds.com |
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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Prudential Stock Index Fund | | Beginning Account Value October 1, 2012 | | | Ending Account Value March 31, 2013 | | | Annualized Expense Ratio Based on the Six-Month Period | | | Expenses Paid During the Six-Month Period* | |
| | | | | | | | | | | | | | | | | | |
Class A | | Actual | | $ | 1,000.00 | | | $ | 1,099.00 | | | | 0.53 | % | | $ | 2.77 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,022.29 | | | | 0.53 | % | | $ | 2.67 | |
| | | | | | | | | | | | | | | | | | |
Class C | | Actual | | $ | 1,000.00 | | | $ | 1,095.50 | | | | 1.16 | % | | $ | 6.06 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,019.15 | | | | 1.16 | % | | $ | 5.84 | |
| | | | | | | | | | | | | | | | | | |
Class I | | Actual | | $ | 1,000.00 | | | $ | 1,101.20 | | | | 0.19 | % | | $ | 1.00 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,023.98 | | | | 0.19 | % | | $ | 0.96 | |
| | | | | | | | | | | | | | | | | | |
Class Z | | Actual | | $ | 1,000.00 | | | $ | 1,100.60 | | | | 0.25 | % | | $ | 1.31 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,023.68 | | | | 0.25 | % | | $ | 1.26 | |
*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 182 days in the six-month period ended March 31, 2013, and divided by the 365 days in the Fund’s fiscal year ending September 30, 2013 (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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Prudential Stock Index Fund | | | 5 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited)
| | | | | | |
Shares | | Description | | Value (Note 1) | |
LONG-TERM INVESTMENTS 97.6% | |
COMMON STOCKS | | | | |
| |
Aerospace & Defense 2.3% | | | | |
36,284 | | Boeing Co. (The) | | $ | 3,114,981 | |
17,512 | | General Dynamics Corp. | | | 1,234,771 | |
41,715 | | Honeywell International, Inc. | | | 3,143,225 | |
5,200 | | L-3 Communications Holdings, Inc. | | | 420,784 | |
14,456 | | Lockheed Martin Corp. | | | 1,395,293 | |
11,948 | | Northrop Grumman Corp. | | | 838,152 | |
7,800 | | Precision Castparts Corp. | | | 1,479,036 | |
16,844 | | Raytheon Co. | | | 990,259 | |
6,863 | | Rockwell Collins, Inc.(a) | | | 433,193 | |
14,334 | | Textron, Inc. | | | 427,297 | |
45,240 | | United Technologies Corp. | | | 4,226,773 | |
| | | | | | |
| | | | | 17,703,764 | |
| |
Air Freight & Logistics 0.8% | | | | |
8,600 | | C.H. Robinson Worldwide, Inc. | | | 511,356 | |
10,300 | | Expeditors International of Washington, Inc. | | | 367,813 | |
15,916 | | FedEx Corp. | | | 1,562,951 | |
38,700 | | United Parcel Service, Inc. (Class B Stock) | | | 3,324,330 | |
| | | | | | |
| | | | | 5,766,450 | |
| |
Airlines 0.1% | | | | |
37,974 | | Southwest Airlines Co. | | | 511,890 | |
| |
Auto Components 0.3% | | | | |
6,300 | | BorgWarner, Inc.*(a) | | | 487,242 | |
14,400 | | Delphi Automotive PLC (United Kingdom) | | | 639,360 | |
13,771 | | Goodyear Tire & Rubber Co. (The)* | | | 173,652 | |
36,056 | | Johnson Controls, Inc. | | | 1,264,484 | |
| | | | | | |
| | | | | 2,564,738 | |
| |
Automobiles 0.4% | | | | |
204,838 | | Ford Motor Co. | | | 2,693,620 | |
12,600 | | Harley-Davidson, Inc. | | | 671,580 | |
| | | | | | |
| | | | | 3,365,200 | |
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Beverages 2.4% | | | | |
8,608 | | Beam, Inc. | | | 546,952 | |
8,130 | | Brown-Forman Corp. (Class B Stock) | | | 580,482 | |
203,564 | | Coca-Cola Co. (The) | | | 8,232,128 | |
See Notes to Financial Statements.
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Prudential Stock Index Fund | | | 7 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Beverages (cont’d.) | | | | |
14,800 | | Coca-Cola Enterprises, Inc. | | $ | 546,416 | |
7,500 | | Constellation Brands, Inc. (Class A Stock)* | | | 357,300 | |
9,800 | | Dr Pepper Snapple Group, Inc. | | | 460,110 | |
8,394 | | Molson Coors Brewing Co. (Class B Stock) | | | 410,718 | |
7,000 | | Monster Beverage Corp.* | | | 334,180 | |
82,551 | | PepsiCo, Inc. | | | 6,530,610 | |
| | | | | | |
| | | | | 17,998,896 | |
| |
Biotechnology 1.9% | | | | |
10,500 | | Alexion Pharmaceuticals, Inc.* | | | 967,470 | |
40,746 | | Amgen, Inc. | | | 4,176,873 | |
12,720 | | Biogen Idec, Inc.* | | | 2,453,815 | |
22,700 | | Celgene Corp.* | | | 2,631,157 | |
81,200 | | Gilead Sciences, Inc.* | | | 3,973,116 | |
| | | | | | |
| | | | | 14,202,431 | |
| |
Building Products | | | | |
19,726 | | Masco Corp. | | | 399,451 | |
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Capital Markets 2.0% | | | | |
11,071 | | Ameriprise Financial, Inc. | | | 815,379 | |
62,838 | | Bank of New York Mellon Corp. (The) | | | 1,758,836 | |
6,700 | | BlackRock, Inc. | | | 1,721,096 | |
57,611 | | Charles Schwab Corp. (The) | | | 1,019,139 | |
11,720 | | E*Trade Financial Corp.* | | | 125,521 | |
7,214 | | Franklin Resources, Inc. | | | 1,087,943 | |
23,500 | | Goldman Sachs Group, Inc. (The) | | | 3,458,025 | |
22,800 | | Invesco Ltd. | | | 660,288 | |
6,400 | | Legg Mason, Inc.(a) | | | 205,760 | |
73,836 | | Morgan Stanley | | | 1,622,915 | |
11,962 | | Northern Trust Corp. | | | 652,647 | |
23,362 | | State Street Corp. | | | 1,380,460 | |
13,100 | | T. Rowe Price Group, Inc. | | | 980,797 | |
| | | | | | |
| | | | | 15,488,806 | |
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Chemicals 2.4% | | | | |
10,632 | | Air Products & Chemicals, Inc. | | | 926,260 | |
3,800 | | Airgas, Inc. | | | 376,808 | |
3,500 | | CF Industries Holdings, Inc. | | | 666,295 | |
63,836 | | Dow Chemical Co. (The) | | | 2,032,538 | |
See Notes to Financial Statements.
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8 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Chemicals (cont’d.) | | | | |
49,544 | | E.I. du Pont de Nemours & Co. | | $ | 2,435,583 | |
8,386 | | Eastman Chemical Co. | | | 585,930 | |
14,382 | | Ecolab, Inc. | | | 1,153,149 | |
7,800 | | FMC Corp. | | | 444,834 | |
4,575 | | International Flavors & Fragrances, Inc. | | | 350,765 | |
20,300 | | LyondellBasell Industries NV (Class A Stock) | | | 1,284,787 | |
28,584 | | Monsanto Co. | | | 3,019,328 | |
14,000 | | Mosaic Co. (The) | | | 834,540 | |
7,474 | | PPG Industries, Inc. | | | 1,001,068 | |
15,458 | | Praxair, Inc. | | | 1,724,185 | |
4,416 | | Sherwin-Williams Co. (The) | | | 745,818 | |
6,732 | | Sigma-Aldrich Corp.(a) | | | 522,942 | |
| | | | | | |
| | | | | 18,104,830 | |
| |
Commercial Banks 2.7% | | | | |
37,658 | | BB&T Corp. | | | 1,182,085 | |
10,561 | | Comerica, Inc. | | | 379,668 | |
45,373 | | Fifth Third Bancorp | | | 740,034 | |
13,543 | | First Horizon National Corp. | | | 144,639 | |
49,329 | | Huntington Bancshares, Inc. | | | 364,541 | |
43,935 | | KeyCorp | | | 437,593 | |
6,500 | | M&T Bank Corp.(a) | | | 670,540 | |
27,402 | | PNC Financial Services Group, Inc. | | | 1,822,233 | |
74,074 | | Regions Financial Corp. | | | 606,666 | |
28,283 | | SunTrust Banks, Inc. | | | 814,833 | |
99,395 | | U.S. Bancorp | | | 3,372,472 | |
261,316 | | Wells Fargo & Co. | | | 9,666,079 | |
10,400 | | Zions Bancorporation(a) | | | 259,896 | |
| | | | | | |
| | | | | 20,461,279 | |
| |
Commercial Services & Supplies 0.5% | | | | |
12,600 | | ADT Corp. (The)(a) | | | 616,644 | |
5,668 | | Avery Dennison Corp. | | | 244,121 | |
5,400 | | Cintas Corp.(a) | | | 238,302 | |
6,972 | | Iron Mountain, Inc. | | | 253,153 | |
11,725 | | Pitney Bowes, Inc.(a) | | | 174,233 | |
15,075 | | Republic Services, Inc. | | | 497,475 | |
4,500 | | Stericycle, Inc.* | | | 477,810 | |
See Notes to Financial Statements.
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Prudential Stock Index Fund | | | 9 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Commercial Services & Supplies (cont’d.) | | | | |
25,200 | | Tyco International Ltd. (Switzerland) | | $ | 806,400 | |
23,513 | | Waste Management, Inc. | | | 921,945 | |
| | | | | | |
| | | | | 4,230,083 | |
| |
Communications Equipment 1.9% | | | | |
284,344 | | Cisco Systems, Inc. | | | 5,945,633 | |
4,300 | | F5 Networks, Inc.* | | | 383,044 | |
6,600 | | Harris Corp. | | | 305,844 | |
10,587 | | JDS Uniphase Corp.* | | | 141,548 | |
27,700 | | Juniper Networks, Inc.* | | | 513,558 | |
14,816 | | Motorola Solutions, Inc. | | | 948,669 | |
91,200 | | QUALCOMM, Inc. | | | 6,105,840 | |
| | | | | | |
| | | | | 14,344,136 | |
| |
Computers & Peripherals 4.1% | | | | |
49,984 | | Apple, Inc. | | | 22,124,418 | |
73,940 | | Dell, Inc. | | | 1,059,560 | |
113,004 | | EMC Corp.* | | | 2,699,665 | |
106,802 | | Hewlett-Packard Co. | | | 2,546,160 | |
19,500 | | NetApp, Inc.* | | | 666,120 | |
12,500 | | SanDisk Corp.* | | | 687,500 | |
16,400 | | Seagate Technology PLC (Ireland)(a) | | | 599,584 | |
11,400 | | Western Digital Corp. | | | 573,192 | |
| | | | | | |
| | | | | 30,956,199 | |
| |
Construction & Engineering 0.2% | | | | |
8,874 | | Fluor Corp. | | | 588,612 | |
7,400 | | Jacobs Engineering Group, Inc.*(a) | | | 416,176 | |
10,700 | | Quanta Services, Inc.* | | | 305,806 | |
| | | | | | |
| | | | | 1,310,594 | |
| |
Construction Materials | | | | |
6,500 | | Vulcan Materials Co. | | | 336,050 | |
| |
Consumer Finance 0.9% | | | | |
50,759 | | American Express Co. | | | 3,424,202 | |
30,166 | | Capital One Financial Corp. | | | 1,657,622 | |
27,118 | | Discover Financial Services | | | 1,215,971 | |
25,292 | | SLM Corp. | | | 517,980 | |
| | | | | | |
| | | | | 6,815,775 | |
See Notes to Financial Statements.
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10 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Containers & Packaging 0.2% | | | | |
8,264 | | Ball Corp. | | $ | 393,201 | |
5,310 | | Bemis Co., Inc. | | | 214,312 | |
9,435 | | MeadWestvaco Corp. | | | 342,490 | |
9,800 | | Owens-Illinois, Inc.* | | | 261,170 | |
9,336 | | Sealed Air Corp. | | | 225,091 | |
| | | | | | |
| | | | | 1,436,264 | |
| |
Distributors 0.1% | | | | |
8,299 | | Genuine Parts Co. | | | 647,322 | |
| |
Diversified Consumer Services 0.1% | | | | |
6,400 | | Apollo Group, Inc. (Class A Stock)*(a) | | | 111,296 | |
13,620 | | H&R Block, Inc. | | | 400,700 | |
| | | | | | |
| | | | | 511,996 | |
| |
Diversified Financial Services 3.6% | | | | |
572,595 | | Bank of America Corp. | | | 6,974,207 | |
157,915 | | Citigroup, Inc. | | | 6,986,160 | |
16,700 | | CME Group, Inc. (Class A Stock) | | | 1,025,213 | |
4,000 | | IntercontinentalExchange, Inc.*(a) | | | 652,280 | |
202,793 | | JPMorgan Chase & Co. | | | 9,624,556 | |
13,700 | | Leucadia National Corp. | | | 375,791 | |
15,300 | | McGraw-Hill Cos., Inc. (The) | | | 796,824 | |
10,176 | | Moody’s Corp. | | | 542,584 | |
6,400 | | NASDAQ OMX Group, Inc. (The) | | | 206,720 | |
12,200 | | NYSE Euronext | | | 471,408 | |
| | | | | | |
| | | | | 27,655,743 | |
| |
Diversified Telecommunication Services 2.6% | | | | |
293,331 | | AT&T, Inc. | | | 10,762,314 | |
33,508 | | CenturyLink, Inc.(a) | | | 1,177,136 | |
52,460 | | Frontier Communications Corp.(a) | | | 208,791 | |
152,333 | | Verizon Communications, Inc. | | | 7,487,167 | |
29,577 | | Windstream Corp. | | | 235,137 | |
| | | | | | |
| | | | | 19,870,545 | |
| |
Electric Utilities 2.0% | | | | |
26,191 | | American Electric Power Co., Inc. | | | 1,273,668 | |
37,639 | | Duke Energy Corp. | | | 2,732,215 | |
17,162 | | Edison International | | | 863,592 | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 11 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Electric Utilities (cont’d.) | | | | |
9,415 | | Entergy Corp. | | $ | 595,405 | |
46,212 | | Exelon Corp. | | | 1,593,390 | |
22,377 | | FirstEnergy Corp.(a) | | | 944,309 | |
22,372 | | NextEra Energy, Inc. | | | 1,737,857 | |
17,200 | | Northeast Utilities(a) | | | 747,512 | |
11,400 | | Pepco Holdings, Inc. | | | 243,960 | |
6,000 | | Pinnacle West Capital Corp. | | | 347,340 | |
30,252 | | PPL Corp. | | | 947,190 | |
46,615 | | Southern Co. (The) | | | 2,187,176 | |
26,783 | | Xcel Energy, Inc. | | | 795,455 | |
| | | | | | |
| | | | | 15,009,069 | |
| |
Electrical Equipment 0.7% | | | | |
24,893 | | Eaton Corp., PLC | | | 1,524,696 | |
39,050 | | Emerson Electric Co.(a) | | | 2,181,724 | |
7,163 | | Rockwell Automation, Inc. | | | 618,525 | |
5,500 | | Roper Industries, Inc. | | | 700,205 | |
| | | | | | |
| | | | | 5,025,150 | |
| |
Electronic Equipment, Instruments & Components 0.4% | | | | |
8,600 | | Amphenol Corp. (Class A Stock) | | | 641,990 | |
78,697 | | Corning, Inc. | | | 1,049,031 | |
8,400 | | FLIR Systems, Inc. | | | 218,484 | |
10,400 | | Jabil Circuit, Inc. | | | 192,192 | |
6,850 | | Molex, Inc. | | | 200,568 | |
23,100 | | TE Connectivity Ltd. (Switzerland) | | | 968,583 | |
| | | | | | |
| | | | | 3,270,848 | |
| |
Energy Equipment & Services 1.8% | | | | |
22,945 | | Baker Hughes, Inc. | | | 1,064,877 | |
13,000 | | Cameron International Corp.* | | | 847,600 | |
3,600 | | Diamond Offshore Drilling, Inc.(a) | | | 250,416 | |
12,700 | | Ensco PLC (Class A Stock) | | | 762,000 | |
11,500 | | FMC Technologies, Inc.* | | | 625,485 | |
49,222 | | Halliburton Co. | | | 1,989,061 | |
5,800 | | Helmerich & Payne, Inc. | | | 352,060 | |
16,400 | | Nabors Industries Ltd. | | | 266,008 | |
22,600 | | National Oilwell Varco, Inc. | | | 1,598,950 | |
13,500 | | Noble Corp. | | | 515,025 | |
See Notes to Financial Statements.
| | |
12 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Energy Equipment & Services (cont’d.) | | | | |
6,710 | | Rowan Cos. PLC (United Kindom) (Class A Stock)* | | $ | 237,266 | |
70,641 | | Schlumberger Ltd. | | | 5,290,305 | |
| | | | | | |
| | | | | 13,799,053 | |
| |
Food & Staples Retailing 2.4% | | | | |
23,108 | | Costco Wholesale Corp. | | | 2,451,990 | |
67,299 | | CVS Caremark Corp. | | | 3,700,772 | |
27,434 | | Kroger Co. (The) | | | 909,163 | |
12,700 | | Safeway, Inc.(a) | | | 334,645 | |
31,480 | | Sysco Corp. | | | 1,107,152 | |
46,278 | | Walgreen Co. | | | 2,206,535 | |
89,226 | | Wal-Mart Stores, Inc. | | | 6,676,781 | |
9,300 | | Whole Foods Market, Inc. | | | 806,775 | |
| | | | | | |
| | | | | 18,193,813 | |
| |
Food Products 1.9% | | | | |
35,159 | | Archer-Daniels-Midland Co. | | | 1,185,913 | |
9,647 | | Campbell Soup Co. | | | 437,588 | |
21,543 | | ConAgra Foods, Inc. | | | 771,455 | |
8,600 | | Dean Foods Co.* | | | 155,918 | |
33,344 | | General Mills, Inc. | | | 1,644,193 | |
17,114 | | H.J. Heinz Co. | | | 1,236,829 | |
8,016 | | Hershey Co. (The)(a) | | | 701,640 | |
7,600 | | Hormel Foods Corp. | | | 314,032 | |
5,600 | | J.M. Smucker Co. (The) | | | 555,296 | |
13,470 | | Kellogg Co. | | | 867,872 | |
31,755 | | Kraft Foods Group, Inc. (Class A Stock) | | | 1,636,335 | |
7,000 | | McCormick & Co., Inc. | | | 514,850 | |
10,665 | | Mead Johnson Nutrition Co. | | | 826,004 | |
95,266 | | Mondelez International, Inc. (Class A Stock) | | | 2,916,092 | |
16,200 | | Tyson Foods, Inc. (Class A Stock) | | | 402,084 | |
| | | | | | |
| | | | | 14,166,101 | |
| |
Gas Utilities 0.1% | | | | |
6,430 | | AGL Resources, Inc. | | | 269,738 | |
11,400 | | ONEOK, Inc. | | | 543,438 | |
| | | | | | |
| | | | | 813,176 | |
| |
Healthcare Equipment & Supplies 2.1% | | | | |
82,474 | | Abbott Laboratories | | | 2,912,982 | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 13 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Healthcare Equipment & Supplies (cont’d.) | | | | |
29,274 | | Baxter International, Inc. | | $ | 2,126,463 | |
10,712 | | Becton, Dickinson and Co. | | | 1,024,174 | |
69,472 | | Boston Scientific Corp.* | | | 542,576 | |
4,112 | | C.R. Bard, Inc. | | | 414,407 | |
12,386 | | CareFusion Corp.* | | | 433,386 | |
24,700 | | Covidien PLC | | | 1,675,648 | |
8,100 | | DENTSPLY International, Inc. | | | 343,602 | |
6,000 | | Edwards Lifesciences Corp.* | | | 492,960 | |
2,150 | | Intuitive Surgical, Inc.* | | | 1,056,059 | |
53,558 | | Medtronic, Inc. | | | 2,515,084 | |
13,964 | | St. Jude Medical, Inc. | | | 564,704 | |
15,200 | | Stryker Corp. | | | 991,648 | |
6,200 | | Varian Medical Systems, Inc.*(a) | | | 446,400 | |
8,911 | | Zimmer Holdings, Inc. | | | 670,286 | |
| | | | | | |
| | | | | 16,210,379 | |
| |
Healthcare Providers & Services 1.8% | | | | |
17,372 | | Aetna, Inc. | | | 888,057 | |
11,300 | | AmerisourceBergen Corp. | | | 581,385 | |
18,173 | | Cardinal Health, Inc. | | | 756,360 | |
15,191 | | Cigna Corp. | | | 947,463 | |
7,650 | | Coventry Health Care, Inc. | | | 359,779 | |
4,600 | | DaVita HealthCare Partners, Inc.* | | | 545,514 | |
43,870 | | Express Scripts Holding Co.* | | | 2,529,106 | |
8,510 | | Humana, Inc. | | | 588,126 | |
4,900 | | Laboratory Corp. of America Holdings*(a) | | | 441,980 | |
12,176 | | McKesson Corp. | | | 1,314,521 | |
4,600 | | Patterson Cos., Inc. | | | 174,984 | |
8,400 | | Quest Diagnostics, Inc. | | | 474,180 | |
5,443 | | Tenet Healthcare Corp.* | | | 258,978 | |
54,648 | | UnitedHealth Group, Inc. | | | 3,126,412 | |
16,700 | | WellPoint, Inc. | | | 1,106,041 | |
| | | | | | |
| | | | | 14,092,886 | |
| |
Healthcare Technology 0.1% | | | | |
7,900 | | Cerner Corp.*(a) | | | 748,525 | |
| |
Home Builders 0.1% | | | | |
15,200 | | D.R. Horton, Inc.(a) | | | 369,360 | |
8,200 | | Lennar Corp. (Class A Stock) | | | 340,136 | |
See Notes to Financial Statements.
| | |
14 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Home Builders (cont’d.) | | | | |
17,211 | | Pultegroup, Inc.*(a) | | $ | 348,351 | |
| | | | | | |
| | | | | 1,057,847 | |
| |
Hotels, Restaurants & Leisure 1.8% | | | | |
24,100 | | Carnival Corp. | | | 826,630 | |
1,700 | | Chipotle Mexican Grill, Inc.* | | | 553,979 | |
6,753 | | Darden Restaurants, Inc.(a) | | | 348,995 | |
12,300 | | International Game Technology | | | 202,950 | |
13,570 | | Marriott International, Inc. (Class A Stock) | | | 573,061 | |
53,230 | | McDonald’s Corp. | | | 5,306,499 | |
40,000 | | Starbucks Corp. | | | 2,278,400 | |
10,200 | | Starwood Hotels & Resorts Worldwide, Inc. | | | 650,046 | |
7,151 | | Wyndham Worldwide Corp. | | | 461,096 | |
4,300 | | Wynn Resorts Ltd. | | | 538,188 | |
23,964 | | Yum! Brands, Inc. | | | 1,723,970 | |
| | | | | | |
| | | | | 13,463,814 | |
| |
Household Durables 0.2% | | | | |
4,900 | | Garmin Ltd. (Switzerland)(a) | | | 161,896 | |
4,000 | | Harman International Industries, Inc. | | | 178,520 | |
7,200 | | Leggett & Platt, Inc. | | | 243,216 | |
15,727 | | Newell Rubbermaid, Inc.(a) | | | 410,475 | |
4,485 | | Whirlpool Corp. | | | 531,293 | |
| | | | | | |
| | | | | 1,525,400 | |
| |
Household Products 2.2% | | | | |
7,132 | | Clorox Co. (The) | | | 631,396 | |
23,730 | | Colgate-Palmolive Co. | | | 2,800,852 | |
20,316 | | Kimberly-Clark Corp.(a) | | | 1,990,562 | |
144,923 | | Procter & Gamble Co. (The) | | | 11,167,766 | |
| | | | | | |
| | | | | 16,590,576 | |
| |
Independent Power Producers & Energy Traders 0.1% | | | | |
35,400 | | AES Corp. (The) | | | 444,978 | |
15,400 | | NRG Energy, Inc. | | | 407,946 | |
| | | | | | |
| | | | | 852,924 | |
| |
Industrial Conglomerates 2.4% | | | | |
34,098 | | 3M Co. | | | 3,624,958 | |
31,000 | | Danaher Corp. | | | 1,926,650 | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 15 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Industrial Conglomerates (cont’d.) | | | | |
554,872 | | General Electric Co. | | $ | 12,828,641 | |
| | | | | | |
| | | | | 18,380,249 | |
| |
Insurance 4.1% | | | | |
17,700 | | ACE Ltd. | | | 1,574,769 | |
25,600 | | Aflac, Inc. | | | 1,331,712 | |
26,208 | | Allstate Corp. (The) | | | 1,286,027 | |
78,701 | | American International Group, Inc.* | | | 3,055,173 | |
16,889 | | Aon PLC (United Kindom) | | | 1,038,674 | |
3,900 | | Assurant, Inc.(a) | | | 175,539 | |
96,700 | | Berkshire Hathaway, Inc. (Class B Stock)* | | | 10,076,140 | |
14,268 | | Chubb Corp. | | | 1,248,878 | |
8,507 | | Cincinnati Financial Corp. | | | 401,445 | |
28,100 | | Genworth Financial, Inc. (Class A Stock)* | | | 281,000 | |
23,353 | | Hartford Financial Services Group, Inc. (The) | | | 602,507 | |
14,551 | | Lincoln National Corp. | | | 474,508 | |
16,117 | | Loews Corp. | | | 710,276 | |
29,340 | | Marsh & McLennan Cos., Inc. | | | 1,114,040 | |
58,000 | | MetLife, Inc. | | | 2,205,160 | |
14,200 | | Principal Financial Group, Inc.(a) | | | 483,226 | |
28,116 | | Progressive Corp. (The) | | | 710,491 | |
26,000 | | Prudential Financial, Inc.(b) | | | 1,533,740 | |
4,622 | | Torchmark Corp. | | | 276,396 | |
19,611 | | Travelers Cos., Inc. (The) | | | 1,651,050 | |
15,526 | | Unum Group | | | 438,609 | |
14,400 | | XL Group PLC | | | 436,320 | |
| | | | | | |
| | | | | 31,105,680 | |
| |
Internet & Catalog Retail 1.1% | | | | |
19,200 | | Amazon.com, Inc.* | | | 5,116,608 | |
4,800 | | Expedia, Inc.(a) | | | 288,048 | |
3,100 | | NetFlix, Inc.*(a) | | | 587,171 | |
2,620 | | priceline.com, Inc.* | | | 1,802,377 | |
5,200 | | Tripadvisor, Inc.*(a) | | | 273,104 | |
| | | | | | |
| | | | | 8,067,308 | |
| |
Internet Software & Services 2.2% | | | | |
10,100 | | Akamai Technologies, Inc.* | | | 356,429 | |
62,300 | | eBay, Inc.* | | | 3,377,906 | |
14,190 | | Google, Inc. (Class A Stock)* | | | 11,267,286 | |
See Notes to Financial Statements.
| | |
16 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Internet Software & Services (cont’d.) | | | | |
8,100 | | VeriSign, Inc.*(a) | | $ | 382,968 | |
51,100 | | Yahoo!, Inc.* | | | 1,202,383 | |
| | | | | | |
| | | | | 16,586,972 | |
| |
IT Services 3.8% | | | | |
34,100 | | Accenture PLC (Class A Stock) | | | 2,590,577 | |
25,978 | | Automatic Data Processing, Inc. | | | 1,689,090 | |
15,900 | | Cognizant Technology Solutions Corp. (Class A Stock)* | | | 1,218,099 | |
8,351 | | Computer Sciences Corp. | | | 411,120 | |
12,900 | | Fidelity National Information Services, Inc. | | | 511,098 | |
7,300 | | Fiserv, Inc.* | | | 641,159 | |
55,934 | | International Business Machines Corp. | | | 11,930,722 | |
5,600 | | MasterCard, Inc. (Class A Stock) | | | 3,030,328 | |
17,725 | | Paychex, Inc.(a) | | | 621,616 | |
16,400 | | SAIC, Inc.(a) | | | 222,220 | |
8,600 | | Teradata Corp.* | | | 503,186 | |
9,271 | | Total System Services, Inc. | | | 229,735 | |
27,480 | | Visa, Inc. (Class A Stock) | | | 4,667,203 | |
31,252 | | Western Union Co. (The) | | | 470,030 | |
| | | | | | |
| | | | | 28,736,183 | |
| |
Leisure Equipment & Products 0.1% | | | | |
6,354 | | Hasbro, Inc. | | | 279,195 | |
19,113 | | Mattel, Inc. | | | 836,958 | |
| | | | | | |
| | | | | 1,116,153 | |
| |
Life Sciences Tools & Services 0.5% | | | | |
19,398 | | Agilent Technologies, Inc. | | | 814,134 | |
8,552 | | Life Technologies Corp.* | | | 552,716 | |
5,170 | | PerkinElmer, Inc. | | | 173,919 | |
19,302 | | Thermo Fisher Scientific, Inc. | | | 1,476,410 | |
4,900 | | Waters Corp.* | | | 460,159 | |
| | | | | | |
| | | | | 3,477,338 | |
| |
Machinery 1.7% | | | | |
35,056 | | Caterpillar, Inc. | | | 3,048,820 | |
9,616 | | Cummins, Inc. | | | 1,113,629 | |
20,580 | | Deere & Co. | | | 1,769,468 | |
8,962 | | Dover Corp. | | | 653,151 | |
2,300 | | Flowserve Corp. | | | 385,733 | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 17 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Machinery (cont’d.) | | | | |
22,336 | | Illinois Tool Works, Inc. | | $ | 1,361,156 | |
15,100 | | Ingersoll-Rand PLC | | | 830,651 | |
5,300 | | Joy Global, Inc. | | | 315,456 | |
18,564 | | PACCAR, Inc.(a) | | | 938,596 | |
6,404 | | Pall Corp. | | | 437,842 | |
7,938 | | Parker Hannifin Corp. | | | 726,962 | |
10,346 | | Pentair Ltd. (Switzerland) | | | 545,752 | |
3,442 | | Snap-On, Inc. | | | 284,653 | |
8,188 | | Stanley Black & Decker, Inc. | | | 662,982 | |
9,300 | | Xylem, Inc. | | | 256,308 | |
| | | | | | |
| | | | | 13,331,159 | |
| |
Media 3.5% | | | | |
10,900 | | Cablevision Systems Corp. (Class A Stock)(a) | | | 163,064 | |
30,176 | | CBS Corp. (Class B Stock) | | | 1,408,917 | |
141,285 | | Comcast Corp. (Class A Stock) | | | 5,935,383 | |
31,200 | | DIRECTV* | | | 1,766,232 | |
12,200 | | Discovery Communications, Inc. (Class A Stock)*(a) | | | 960,628 | |
11,689 | | Gannett Co., Inc.(a) | | | 255,638 | |
23,688 | | Interpublic Group of Cos., Inc. (The) | | | 308,655 | |
107,100 | | News Corp. (Class A Stock) | | | 3,268,692 | |
14,034 | | Omnicom Group, Inc. | | | 826,603 | |
4,300 | | Scripps Networks Interactive, Inc. (Class A Stock) | | | 276,662 | |
15,381 | | Time Warner Cable, Inc. | | | 1,477,499 | |
49,774 | | Time Warner, Inc. | | | 2,867,978 | |
23,576 | | Viacom, Inc. (Class B Stock) | | | 1,451,574 | |
94,013 | | Walt Disney Co. (The) | | | 5,339,938 | |
260 | | Washington Post Co. (The) (Class B Stock)(a) | | | 116,220 | |
| | | | | | |
| | | | | 26,423,683 | |
| |
Metals & Mining 0.6% | | | | |
57,544 | | Alcoa, Inc. | | | 490,275 | |
5,218 | | Allegheny Technologies, Inc. | | | 165,463 | |
7,700 | | Cliffs Natural Resources, Inc.(a) | | | 146,377 | |
51,692 | | Freeport-McMoRan Copper & Gold, Inc. | | | 1,711,005 | |
26,197 | | Newmont Mining Corp. | | | 1,097,392 | |
16,712 | | Nucor Corp. | | | 771,259 | |
7,909 | | United States Steel Corp.(a) | | | 154,225 | |
| | | | | | |
| | | | | 4,535,996 | |
See Notes to Financial Statements.
| | |
18 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Multiline Retail 0.8% | | | | |
14,300 | | Dollar General Corp. (Class C Stock)* | | $ | 723,294 | |
12,700 | | Dollar Tree, Inc.* | | | 615,061 | |
5,000 | | Family Dollar Stores, Inc. | | | 295,250 | |
6,784 | | J.C. Penney Co., Inc.(a) | | | 102,506 | |
10,400 | | Kohl’s Corp. | | | 479,752 | |
21,682 | | Macy’s, Inc. | | | 907,175 | |
8,600 | | Nordstrom, Inc. | | | 474,978 | |
34,982 | | Target Corp. | | | 2,394,518 | |
| | | | | | |
| | | | | 5,992,534 | |
| |
Multi-Utilities 1.2% | | | | |
12,469 | | Ameren Corp. | | | 436,664 | |
23,479 | | CenterPoint Energy, Inc. | | | 562,557 | |
14,500 | | CMS Energy Corp. | | | 405,130 | |
15,651 | | Consolidated Edison, Inc. | | | 955,180 | |
29,904 | | Dominion Resources, Inc. | | | 1,739,815 | |
9,387 | | DTE Energy Co. | | | 641,508 | |
4,408 | | Integrys Energy Group, Inc.(a) | | | 256,369 | |
15,700 | | NiSource, Inc. | | | 460,638 | |
22,552 | | PG&E Corp. | | | 1,004,241 | |
27,094 | | Public Service Enterprise Group, Inc. | | | 930,408 | |
6,400 | | SCANA Corp. | | | 327,424 | |
12,098 | | Sempra Energy | | | 967,114 | |
11,900 | | TECO Energy, Inc.(a) | | | 212,058 | |
12,400 | | Wisconsin Energy Corp.(a) | | | 531,836 | |
| | | | | | |
| | | | | 9,430,942 | |
| |
Office Electronics 0.1% | | | | |
69,700 | | Xerox Corp. | | | 599,420 | |
| |
Oil, Gas & Consumable Fuels 8.9% | | | | |
26,536 | | Anadarko Petroleum Corp. | | | 2,320,573 | |
21,148 | | Apache Corp. | | | 1,631,780 | |
11,500 | | Cabot Oil & Gas Corp. | | | 777,515 | |
28,300 | | Chesapeake Energy Corp.(a) | | | 577,603 | |
103,992 | | Chevron Corp. | | | 12,356,330 | |
64,957 | | ConocoPhillips | | | 3,903,916 | |
12,900 | | CONSOL Energy, Inc. | | | 434,085 | |
22,000 | | Denbury Resources, Inc.*(a) | | | 410,300 | |
19,800 | | Devon Energy Corp. | | | 1,117,116 | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 19 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Oil, Gas & Consumable Fuels (cont’d.) | | | | |
14,300 | | EOG Resources, Inc. | | $ | 1,831,401 | |
7,900 | | EQT Corp. | | | 535,225 | |
238,552 | | Exxon Mobil Corp. | | | 21,495,921 | |
16,134 | | Hess Corp. | | | 1,155,356 | |
33,180 | | Kinder Morgan, Inc. | | | 1,283,402 | |
38,078 | | Marathon Oil Corp. | | | 1,283,990 | |
18,389 | | Marathon Petroleum Corp. | | | 1,647,654 | |
10,000 | | Murphy Oil Corp. | | | 637,300 | |
7,900 | | Newfield Exploration Co.* | | | 177,118 | |
9,500 | | Noble Energy, Inc. | | | 1,098,770 | |
42,776 | | Occidental Petroleum Corp. | | | 3,352,355 | |
14,500 | | Peabody Energy Corp. | | | 306,675 | |
33,828 | | Phillips 66 | | | 2,366,945 | |
6,700 | | Pioneer Natural Resources Co. | | | 832,475 | |
9,600 | | QEP Resources, Inc. | | | 305,664 | |
8,900 | | Range Resources Corp. | | | 721,256 | |
17,800 | | Southwestern Energy Co.* | | | 663,228 | |
35,884 | | Spectra Energy Corp. | | | 1,103,433 | |
7,600 | | Tesoro Corp. | | | 444,980 | |
29,500 | | Valero Energy Corp. | | | 1,341,955 | |
36,292 | | Williams Cos., Inc. (The) | | | 1,359,498 | |
9,764 | | WPX Energy, Inc.*(a) | | | 156,419 | |
| | | | | | |
| | | | | 67,630,238 | |
| |
Paper & Forest Products 0.1% | | | | |
23,984 | | International Paper Co. | | | 1,117,175 | |
| |
Personal Products 0.2% | | | | |
24,244 | | Avon Products, Inc. | | | 502,578 | |
12,400 | | Estee Lauder Cos., Inc. (The) (Class A Stock) | | | 793,972 | |
| | | | | | |
| | | | | 1,296,550 | |
| |
Pharmaceuticals 5.9% | | | | |
84,974 | | AbbVie, Inc. | | | 3,465,240 | |
6,600 | | Actavis, Inc.* | | | 607,926 | |
16,764 | | Allergan, Inc. | | | 1,871,365 | |
86,879 | | Bristol-Myers Squibb Co. | | | 3,578,546 | |
54,597 | | Eli Lilly & Co. | | | 3,100,564 | |
12,800 | | Forest Laboratories, Inc.* | | | 486,912 | |
9,507 | | Hospira, Inc.* | | | 312,115 | |
See Notes to Financial Statements.
| | |
20 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Pharmaceuticals (cont’d.) | | | | |
147,369 | | Johnson & Johnson(a) | | $ | 12,014,994 | |
160,133 | | Merck & Co., Inc. | | | 7,082,682 | |
19,900 | | Mylan, Inc.* | | | 575,906 | |
4,600 | | Perrigo Co. | | | 546,158 | |
384,123 | | Pfizer, Inc. | | | 11,085,790 | |
| | | | | | |
| | | | | 44,728,198 | |
| |
Professional Services 0.1% | | | | |
2,300 | | Dun & Bradstreet Corp. (The)(a) | | | 192,395 | |
5,930 | | Equifax, Inc. | | | 341,509 | |
7,900 | | Robert Half International, Inc.(a) | | | 296,487 | |
| | | | | | |
| | | | | 830,391 | |
| |
Real Estate Investment Trusts 2.0% | | | | |
20,600 | | American Tower Corp. | | | 1,584,552 | |
6,880 | | Apartment Investment & Management Co. (Class A Stock) | | | 210,941 | |
5,911 | | AvalonBay Communities, Inc. | | | 748,746 | |
8,200 | | Boston Properties, Inc. | | | 828,692 | |
17,300 | | Equity Residential | | | 952,538 | |
24,400 | | HCP, Inc. | | | 1,216,584 | |
13,100 | | Health Care REIT, Inc.(a) | | | 889,621 | |
39,036 | | Host Hotels & Resorts, Inc. | | | 682,740 | |
22,700 | | Kimco Realty Corp.(a) | | | 508,480 | |
8,000 | | Plum Creek Timber Co., Inc.(a) | | | 417,600 | |
24,837 | | ProLogis, Inc. | | | 992,983 | |
7,900 | | Public Storage | | | 1,203,328 | |
16,389 | | Simon Property Group, Inc. | | | 2,598,640 | |
15,733 | | Ventas, Inc. | | | 1,151,656 | |
8,784 | | Vornado Realty Trust | | | 734,694 | |
29,459 | | Weyerhaeuser Co. | | | 924,423 | |
| | | | | | |
| | | | | 15,646,218 | |
| |
Real Estate Management & Development | | | | |
16,400 | | CBRE Group, Inc. (Class A Stock)* | | | 414,100 | |
| |
Road & Rail 0.8% | | | | |
53,318 | | CSX Corp. | | | 1,313,222 | |
16,311 | | Norfolk Southern Corp. | | | 1,257,252 | |
2,821 | | Ryder System, Inc. | | | 168,555 | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 21 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Road & Rail (cont’d.) | | | | |
25,158 | | Union Pacific Corp. | | $ | 3,582,751 | |
| | | | | | |
| | | | | 6,321,780 | |
| |
Semiconductors & Semiconductor Equipment 1.9% | | | | |
24,000 | | Advanced Micro Devices, Inc.*(a) | | | 61,200 | |
17,700 | | Altera Corp. | | | 627,819 | |
16,400 | | Analog Devices, Inc. | | | 762,436 | |
66,088 | | Applied Materials, Inc. | | | 890,866 | |
26,800 | | Broadcom Corp. (Class A Stock) | | | 929,156 | |
2,000 | | First Solar, Inc.* | | | 53,920 | |
264,988 | | Intel Corp. | | | 5,789,988 | |
9,120 | | KLA-Tencor Corp. | | | 480,989 | |
8,962 | | LAM Research Corp.* | | | 371,564 | |
11,600 | | Linear Technology Corp.(a) | | | 445,092 | |
31,844 | | LSI Corp.* | | | 215,902 | |
9,700 | | Microchip Technology, Inc. | | | 356,572 | |
54,516 | | Micron Technology, Inc.* | | | 544,070 | |
34,700 | | NVIDIA Corp. | | | 444,854 | |
10,700 | | Teradyne, Inc.*(a) | | | 173,554 | |
59,652 | | Texas Instruments, Inc. | | | 2,116,453 | |
14,500 | | Xilinx, Inc. | | | 553,465 | |
| | | | | | |
| | | | | 14,817,900 | |
| |
Software 3.3% | | | | |
26,540 | | Adobe Systems, Inc.* | | | 1,154,755 | |
10,620 | | Autodesk, Inc.* | | | 437,969 | |
7,400 | | BMC Software, Inc.* | | | 342,842 | |
18,758 | | CA, Inc. | | | 472,139 | |
9,900 | | Citrix Systems, Inc.* | | | 714,384 | |
13,100 | | Electronic Arts, Inc.* | | | 231,870 | |
14,900 | | Intuit, Inc. | | | 978,185 | |
401,412 | | Microsoft Corp. | | | 11,484,397 | |
198,740 | | Oracle Corp. | | | 6,427,252 | |
10,400 | | Red Hat, Inc.* | | | 525,824 | |
6,750 | | Salesforce.com, Inc.*(a) | | | 1,207,102 | |
35,217 | | Symantec Corp.* | | | 869,156 | |
| | | | | | |
| | | | | 24,845,875 | |
| |
Specialty Retail 2.1% | | | | |
4,200 | | Abercrombie & Fitch Co. (Class A Stock) | | | 194,040 | |
See Notes to Financial Statements.
| | |
22 | | Visit our website at www.prudentialfunds.com |
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Specialty Retail (cont’d.) | | | | |
1,723 | | AutoNation, Inc.* | | $ | 75,381 | |
1,930 | | AutoZone, Inc.* | | | 765,766 | |
11,200 | | Bed Bath & Beyond, Inc.* | | | 721,504 | |
14,500 | | Best Buy Co., Inc.(a) | | | 321,175 | |
12,500 | | CarMax, Inc.*(a) | | | 521,250 | |
7,400 | | GameStop Corp. (Class A Stock)(a) | | | 206,978 | |
16,513 | | Gap, Inc. (The) | | | 584,560 | |
79,784 | | Home Depot, Inc. (The) | | | 5,567,328 | |
12,622 | | Limited Brands, Inc. | | | 563,699 | |
59,196 | | Lowe’s Cos., Inc. | | | 2,244,712 | |
6,300 | | O’Reilly Automotive, Inc.* | | | 646,065 | |
5,800 | | PetSmart, Inc. | | | 360,180 | |
11,300 | | Ross Stores, Inc. | | | 685,006 | |
36,725 | | Staples, Inc. | | | 493,217 | |
6,000 | | Tiffany & Co.(a) | | | 417,240 | |
39,064 | | TJX Cos., Inc. | | | 1,826,242 | |
5,900 | | Urban Outfitters, Inc.* | | | 228,566 | |
| | | | | | |
| | | | | 16,422,909 | |
| |
Textiles, Apparel & Luxury Goods 0.7% | | | | |
15,000 | | Coach, Inc. | | | 749,850 | |
3,000 | | Fossil, Inc.* | | | 289,800 | |
39,752 | | NIKE, Inc. (Class B Stock) | | | 2,345,766 | |
3,800 | | PVH Corp. | | | 405,878 | |
3,200 | | Ralph Lauren Corp. | | | 541,792 | |
4,634 | | VF Corp. | | | 777,353 | |
| | | | | | |
| | | | | 5,110,439 | |
| |
Thrifts & Mortgage Finance 0.1% | | | | |
26,800 | | Hudson City Bancorp, Inc. | | | 231,552 | |
20,200 | | People’s United Financial, Inc. | | | 271,488 | |
| | | | | | |
| | | | | 503,040 | |
| |
Tobacco 1.7% | | | | |
108,179 | | Altria Group, Inc. | | | 3,720,276 | |
18,980 | | Lorillard, Inc. | | | 765,843 | |
86,779 | | Philip Morris International, Inc. | | | 8,045,281 | |
17,700 | | Reynolds American, Inc. | | | 787,473 | |
| | | | | | |
| | | | | 13,318,873 | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 23 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
| | | | | | |
Shares | | Description | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | |
| |
Trading Companies & Distributors 0.2% | | | | |
14,600 | | Fastenal Co.(a) | | $ | 749,710 | |
3,174 | | W.W. Grainger, Inc. | | | 714,087 | |
| | | | | | |
| | | | | 1,463,797 | |
| |
Wireless Telecommunication Services 0.3% | | | | |
15,100 | | Crown Castle International Corp.* | | | 1,051,564 | |
15,200 | | MetroPCS Communications, Inc.* | | | 165,680 | |
165,474 | | Sprint Nextel Corp.*(a) | | | 1,027,594 | |
| | | | | | |
| | | | | 2,244,838 | |
| | | | | | |
| | TOTAL LONG-TERM INVESTMENTS (cost $294,369,283) | | | 743,997,941 | |
| | | | | | |
SHORT-TERM INVESTMENTS 8.5% | | | | |
| |
Affiliated Money Market Mutual Fund 8.3% | | | | |
62,868,241 | | Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $62,868,241; includes $43,370,926 of cash collateral received for securities on loan) (Note 3)(c)(d) | | | 62,868,241 | |
| | | | | | |
| | |
Principal Amount (000) | | | | | |
U.S. TREASURY SECURITY 0.2% | | | | |
$ 1,500 | | U.S. Treasury Bill, 0.060%, 06/20/13 (cost $1,499,800)(e)(f) | | | 1,499,792 | |
| | | | | | |
| | TOTAL SHORT-TERM INVESTMENTS (cost $64,368,041) | | | 64,368,033 | |
| | | | | | |
| | TOTAL INVESTMENTS 106.1% (cost $358,737,324; Note 5) | | | 808,365,974 | |
| | Liabilities in excess of other assets(g) (6.1%) | | | (46,154,223 | ) |
| | | | | | |
| | NET ASSETS 100.0% | | $ | 762,211,751 | |
| | | | | | |
The following abbreviation is used in the portfolio descriptions:
REIT—Real Estate Investment Trust
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $42,697,874; cash collateral of $43,370,926 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. |
See Notes to Financial Statements.
| | |
24 | | Visit our website at www.prudentialfunds.com |
(c) | Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund. |
(d) | Represents security, or a portion thereof, purchased with cash collateral received for securities on loan. |
(e) | Rate quoted represents yield-to-maturity as of purchase date. |
(f) | Represents security, or a portion thereof, segregated as collateral for futures contracts. |
(g) | Includes net unrealized appreciation on the following derivative contracts held at reporting period end: |
Open futures contracts outstanding at March 31, 2013:
| | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | Type | | Expiration Date | | | Value at Trade Date | | | Value at March 31, 2013 | | | Unrealized Appreciation | |
| | | | Long Positions: | | | | | | | | | | | | | | | | |
| 52 | | | S&P 500 E-mini Futures | | | Jun. 2013 | | | $ | 4,028,598 | | | $ | 4,063,020 | | | $ | 34,422 | |
| 44 | | | S&P 500 Index Futures | | | Jun. 2013 | | | | 17,036,214 | | | | 17,189,700 | | | | 153,486 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 187,908 | |
| | | | | | | | | | | | | | | | | | | | |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—quoted prices generally in active markets for identical securities.
Level 2—other significant observable inputs including, but not limited to, quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and amortized cost.
Level 3—significant unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of March 31, 2013 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Common Stocks | | $ | 743,997,941 | | | $ | — | | | $ | — | |
Affiliated Money Market Mutual Fund | | | 62,868,241 | | | | | | | | | |
U.S. Treasury Security | | | — | | | | 1,499,792 | | | | — | |
Other Financial Instruments* | | | | | | | | | | | | |
Futures | | | 187,908 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 807,054,090 | | | $ | 1,499,792 | | | $ | — | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 25 | |
Portfolio of Investments
as of March 31, 2013 (Unaudited) continued
* | Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are recorded at the unrealized appreciation/depreciation on the instrument. |
The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2013 were as follows:
| | | | |
Oil, Gas & Consumable Fuels | | | 8.9 | % |
Affiliated Money Market Mutual Fund (including 5.7% of collateral received for securities on loan) | | | 8.3 | |
Pharmaceuticals | | | 5.9 | |
Computers & Peripherals | | | 4.1 | |
Insurance | | | 4.1 | |
IT Services | | | 3.8 | |
Diversified Financial Services | | | 3.6 | |
Media | | | 3.5 | |
Software | | | 3.3 | |
Commercial Banks | | | 2.7 | |
Diversified Telecommunication Services | | | 2.6 | |
Beverages | | | 2.4 | |
Chemicals | | | 2.4 | |
Food & Staples Retailing | | | 2.4 | |
Industrial Conglomerates | | | 2.4 | |
Aerospace & Defense | | | 2.3 | |
Household Products | | | 2.2 | |
Internet Software & Services | | | 2.2 | |
Healthcare Equipment & Supplies | | | 2.1 | |
Specialty Retail | | | 2.1 | |
Capital Markets | | | 2.0 | |
Electric Utilities | | | 2.0 | |
Real Estate Investment Trusts | | | 2.0 | |
Biotechnology | | | 1.9 | |
Communications Equipment | | | 1.9 | |
Food Products | | | 1.9 | |
Semiconductors & Semiconductor Equipment | | | 1.9 | |
Energy Equipment & Services | | | 1.8 | |
Healthcare Providers & Services | | | 1.8 | |
Hotels, Restaurants & Leisure | | | 1.8 | |
Machinery | | | 1.7 | |
Tobacco | | | 1.7 | |
Multi-Utilities | | | 1.2 | |
Internet & Catalog Retail | | | 1.1 | |
Consumer Finance | | | 0.9 | |
Air Freight & Logistics | | | 0.8 | % |
Multiline Retail | | | 0.8 | |
Road & Rail | | | 0.8 | |
Electrical Equipment | | | 0.7 | |
Textiles, Apparel & Luxury Goods | | | 0.7 | |
Metals & Mining | | | 0.6 | |
Commercial Services & Supplies | | | 0.5 | |
Life Sciences Tools & Services | | | 0.5 | |
Automobiles | | | 0.4 | |
Electronic Equipment, Instruments & Components | | | 0.4 | |
Auto Components | | | 0.3 | |
Wireless Telecommunication Services | | | 0.3 | |
Construction & Engineering | | | 0.2 | |
Containers & Packaging | | | 0.2 | |
Household Durables | | | 0.2 | |
Personal Products | | | 0.2 | |
Trading Companies & Distributors | | | 0.2 | |
U.S. Treasury Security | | | 0.2 | |
Airlines | | | 0.1 | |
Distributors | | | 0.1 | |
Diversified Consumer Services | | | 0.1 | |
Gas Utilities | | | 0.1 | |
Healthcare Technology | | | 0.1 | |
Home Builders | | | 0.1 | |
Independent Power Producers & Energy Traders | | | 0.1 | |
Leisure Equipment & Products | | | 0.1 | |
Office Electronics | | | 0.1 | |
Paper & Forest Products | | | 0.1 | |
Professional Services | | | 0.1 | |
Thrifts & Mortgage Finance | | | 0.1 | |
| | | | |
| | | 106.1 | |
Liabilities in excess of other assets | | | (6.1 | ) |
| | | | |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
| | |
26 | | Visit our website at www.prudentialfunds.com |
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of March 31, 2013 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | |
Derivatives not designated as hedging instruments, carried at fair value | | Asset Derivatives | | | Liability Derivatives | |
| Balance Sheet Location | | Fair Value | | | Balance Sheet Location | | Fair Value | |
Equity contracts | | Due from broker—variation margin | | $ | 187,908 | * | | — | | $ | — | |
| | | | | | | | | | | | |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in Portfolio of Investments. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the six months ended March 31, 2013 are as follows:
| | | | |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Derivatives not designated as hedging instruments, carried at fair value | | Futures | |
Equity contracts | | $ | 1,345,684 | |
| | | | |
|
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Derivatives not designated as hedging instruments, carried at fair value | | Futures | |
Equity contracts | | $ | 462,092 | |
| | | | |
For the six months ended March 31, 2013, the Fund’s average value at trade date for futures long position was $20,689,369.
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 27 | |
Statement of Assets and Liabilities
as of March 31, 2013 (Unaudited)
| | | | |
Assets | | | | |
Investments at value, including securities on loan of $42,697,874: | | | | |
Unaffiliated Investments (cost $295,063,995) | | $ | 743,963,993 | |
Affiliated Investments (cost $63,673,329) | | | 64,401,981 | |
Cash | | | 140,404 | |
Receivable for Fund shares sold | | | 1,050,038 | |
Dividends and interest receivable | | | 937,092 | |
Due from broker—variation margin | | | 80,240 | |
Prepaid expenses | | | 4,925 | |
| | | | |
Total assets | | | 810,578,673 | |
| | | | |
| |
Liabilities | | | | |
Payable to broker for collateral for securities on loan | | | 43,370,926 | |
Payable for Fund shares reacquired | | | 4,710,639 | |
Accrued expenses | | | 151,169 | |
Distribution fee payable | | | 60,144 | |
Management fee payable | | | 51,480 | |
Affiliated transfer agent fee payable | | | 22,564 | |
| | | | |
Total liabilities | | | 48,366,922 | |
| | | | |
| |
Net Assets | | $ | 762,211,751 | |
| | | | |
| | | | |
Net assets were comprised of: | | | | |
Shares of beneficial interest, at par | | $ | 21,958 | |
Paid-in capital in excess of par | | | 324,238,186 | |
| | | | |
| | | 324,260,144 | |
Undistributed net investment income | | | 3,832,075 | |
Accumulated net realized loss on investment and financial futures transactions | | | (15,697,026 | ) |
Net unrealized appreciation on investments and financial futures contracts | | | 449,816,558 | |
| | | | |
Net assets, March 31, 2013 | | $ | 762,211,751 | |
| | | | |
See Notes to Financial Statements.
| | |
28 | | Visit our website at www.prudentialfunds.com |
| | | | |
Class A | | | | |
Net asset value and redemption price per share ($152,628,257 ÷ 4,401,740 shares of beneficial interest issued and outstanding) | | $ | 34.67 | |
Maximum sales charge (3.25% of offering price) | | | 1.16 | |
| | | | |
Maximum offering price to public | | $ | 35.83 | |
| | | | |
| |
Class C | | | | |
Net asset value, offering price and redemption price per share ($25,511,094 ÷ 738,701 shares of beneficial interest issued and outstanding) | | $ | 34.54 | |
| | | | |
| |
Class I | | | | |
Net asset value, offering price and redemption price per share ($187,710,161 ÷ 5,405,606 shares of beneficial interest issued and outstanding) | | $ | 34.73 | |
| | | | |
| |
Class Z | | | | |
Net asset value, offering price and redemption price per share ($396,362,239 ÷ 11,411,963 shares of beneficial interest issued and outstanding) | | $ | 34.73 | |
| | | | |
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 29 | |
Statement of Operations
Six Months Ended March 31, 2013 (Unaudited)
| | | | |
Net Investment Income | | | | |
Income | | | | |
Unaffiliated dividend income (net of foreign withholding taxes of $9,959) | | $ | 8,634,318 | |
Affiliated income from securities loaned, net | | | 42,403 | |
Affiliated dividend income | | | 15,429 | |
Unaffiliated interest | | | 966 | |
| | | | |
Total income | | | 8,693,116 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 1,084,613 | |
Distribution fee—Class A | | | 219,600 | |
Distribution fee—Class C | | | 119,450 | |
Transfer agent’s fees—Class A (including affiliated expense of $38,800) | | | 80,000 | |
Transfer agent’s fees—Class C (including affiliated expense of $1,100) | | | 5,000 | |
Transfer agent’s fees—Class I (including affiliated expense of $62,000) | | | 62,000 | |
Transfer agent’s fees—Class Z (including affiliated expense of $243,800) | | | 244,000 | |
Custodian’s fees and expenses | | | 49,000 | |
Registration fees | | | 30,000 | |
Reports to shareholders | | | 25,000 | |
Legal fees and expenses | | | 14,000 | |
Trustees’ fees | | | 13,000 | |
Audit fee | | | 11,000 | |
Insurance | | | 7,000 | |
Miscellaneous | | | 9,957 | |
| | | | |
Total expenses | | | 1,973,620 | |
Less: Management fee waiver (Note 2) | | | (795,383 | ) |
| | | | |
Net expenses | | | 1,178,237 | |
| | | | |
Net investment income | | | 7,514,879 | |
| | | | |
| |
Realized And Unrealized Gain On Investments | | | | |
Net realized gain on: | | | | |
Investment transactions | | | 12,450,954 | |
Financial futures transactions | | | 1,345,684 | |
| | | | |
| | | 13,796,638 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated $116,480) | | | 48,713,970 | |
Financial futures contracts | | | 462,092 | |
| | | | |
| | | 49,176,062 | |
| | | | |
Net gain on investments | | | 62,972,700 | |
| | | | |
Net Increase In Net Assets Resulting From Operations | | $ | 70,487,579 | |
| | | | |
See Notes to Financial Statements.
| | |
30 | | Visit our website at www.prudentialfunds.com |
Statement of Changes in Net Assets
(Unaudited)
| | | | | | | | |
| | Six Months Ended March 31, 2013 | | | Year Ended September 30, 2012 | |
Increase (Decrease) In Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income | | $ | 7,514,879 | | | $ | 13,811,822 | |
Net realized gain on investment transactions | | | 13,796,638 | | | | 101,524,564 | |
Net change in unrealized appreciation (depreciation) on investments | | | 49,176,062 | | | | 86,619,666 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 70,487,579 | | | | 201,956,052 | |
| | | | | | | | |
| | |
Dividends from net investment income (Note 1) | | | | | | | | |
Class A | | | (2,357,155 | ) | | | (2,036,671 | ) |
Class B | | | — | | | | (333 | ) |
Class C | | | (249,255 | ) | | | (214,412 | ) |
Class I | | | (3,437,440 | ) | | | (7,060,193 | ) |
Class Z | | | (7,015,339 | ) | | | (6,763,830 | ) |
| | | | | | | | |
| | | (13,059,189 | ) | | | (16,075,439 | ) |
| | | | | | | | |
| | |
Fund share transactions (Net of share conversions) (Note 6) | | | | | | | | |
Net proceeds from shares sold | | | 77,068,373 | | | | 149,111,294 | |
Net asset value of shares issued in reinvestment of dividends | | | 12,833,315 | | | | 15,849,645 | |
Cost of shares reacquired | | | (112,444,059 | ) | | | (431,204,483 | ) |
| | | | | | | | |
Net decrease in net assets from Fund share transactions | | | (22,542,371 | ) | | | (266,243,544 | ) |
| | | | | | | | |
Total increase (decrease) | | | 34,886,019 | | | | (80,362,931 | ) |
| | |
Net Assets: | | | | | | | | |
Beginning of period | | | 727,325,732 | | | | 807,688,663 | |
| | | | | | | | |
End of period(a) | | $ | 762,211,751 | | | $ | 727,325,732 | |
| | | | | | | | |
(a) Includes undistributed net investment income of: | | $ | 3,832,075 | | | $ | 9,376,385 | |
| | | | | | | | |
See Notes to Financial Statements.
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Prudential Stock Index Fund | | | 31 | |
Notes to Financial Statements
(Unaudited)
Prudential Investment Portfolios 8 (the “Trust”) is an open-end management investment company, registered under the Investment Company Act of 1940, as amended, (“1940 Act”). The Trust was established as a Delaware business trust on May 11, 1992 and currently consists of one fund, which is the Prudential Stock Index Fund (the “Fund”). The Fund’s investment objective is to provide investment results that correspond to the price and yield performance of the Standard & Poor’s 500 Composite Stock Price Index.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in the preparation of the financial statements.
Securities Valuation: The Fund holds portfolio securities and other assets that are fair valued at the close of each day the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has delegated fair valuation responsibilities to Prudential Investments LLC (“PI” or “Manager”) through the adoption of Valuation Procedures for valuation of the Fund’s securities. Under the current Valuation Procedures, a Valuation Committee is established and responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures allow the Fund to utilize independent pricing vendor services, quotations from market makers and other valuation methods in events when market quotations are not readily available or not representative of the fair value of the securities. A record of the Valuation Committee’s actions is subject to review, approval and ratification by the Board at its next regularly scheduled quarterly meeting.
Various inputs are used in determining the value of the Fund’s investments, which are summarized in the three broad level hierarchies based on any observable inputs used as described in the table following the Portfolio of Investments. The valuation methodologies and significant inputs used in determining the fair value of securities and other assets classified as Level 1, Level 2 and Level 3 of the hierarchy are as follows:
Common stocks, exchange-traded funds and financial derivative instruments (including futures contracts and certain options and swap contracts on securities), that
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32 | | Visit our website at www.prudentialfunds.com |
are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 of the fair value hierarchy.
In the event there is no sale or official closing price on such day, these securities are valued at the mean between the last reported bid and asked prices, or at the last bid price in absence of an asked price. These securities are classified as Level 2 of the fair value hierarchy as these inputs are considered as significant other observable inputs to the valuation.
For common stocks traded on foreign securities exchanges, certain valuation adjustments will be applied when events occur after the close of the security’s foreign market and before the Fund’s normal pricing time. These securities are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 of the fair value hierarchy as the adjustment factors are considered as significant other observable inputs to the valuation.
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 as they have the ability to be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the over-the-counter market, such as corporate bonds, municipal bonds, U.S. Government agencies issues and guaranteed obligations, U.S. Treasury obligations, and sovereign issues are usually valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices usually after evaluating observable inputs including yield curves, credit rating, yield spreads, default rates, cash flows as well as broker/dealer quotations and reported trades. Securities valued using such vendor prices are classified as Level 2 of the fair value hierarchy.
Asset-backed and mortgage-related securities are usually valued by approved independent pricing vendors. The pricing vendors provide the prices using their internal pricing models with inputs from deal terms, tranche level attributes, yield curves, prepayment speeds, default rates and broker/dealer quotes. Securities valued using such vendor prices are classified as Level 2 of the fair value hierarchy.
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Prudential Stock Index Fund | | | 33 | |
Notes to Financial Statements
(Unaudited) continued
Short-term debt securities of sufficient credit quality which mature in sixty days or less are valued using amortized cost method which approximates fair value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are categorized as Level 2 of the fair value hierarchy.
Over-the-counter financial derivative instruments, such as option contracts, foreign currency contracts and swaps agreements, are usually valued using pricing vendor services, which derive the valuation based on underlying asset prices, indices, spreads, interest rates, exchange rates and other inputs. These instruments are categorized as Level 2 of the fair value hierarchy.
Securities and other assets that cannot be priced using the methods described above are valued with pricing methodologies approved by the Valuation Committee. In the event there are unobservable inputs used when determining such valuations, the securities will be classified as Level 3 of 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.
Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying
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security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statement of Operations as net realized gain (loss) on financial futures contracts.
The Fund invested in financial futures contracts in order to hedge existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates or market conditions. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.
The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets.
Risk: Futures contracts involve elements of both market and credit risk in excess of the amounts reflected in the Statement of Assets and Liabilities.
Securities Lending: The Fund may lend its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in a highly liquid short-term money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities using the collateral in the open market. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities, and any interest on the investment of cash received as collateral. The Fund also continues to receive interest and dividends or amounts equivalent thereto, on the securities loaned and recognizes any unrealized gain or loss in the market price of the securities loaned that may occur during the term of the loan.
REITs: The Fund invests in real estate investment trusts (“REITs”), which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. These estimates are adjusted periodically when the actual sources of distributions are disclosed by the REITs.
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Prudential Stock Index Fund | | | 35 | |
Notes to Financial Statements
(Unaudited) continued
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis, which may require the use of certain estimates by management, that may differ from actual.
Net investment income or loss (other than distribution fees, which are charged directly to the respective class) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund expects to pay dividends from net investment income and distributions from net realized capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in capital in excess of par, as appropriate.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.
Withholding taxes on foreign dividends are recorded, net of reclaimable amounts, at the time the related income is earned.
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these 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
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performance of such services. PI has entered into a subadvisory agreement with Quantitative Management Associates LLC (“QMA”). The subadvisory agreement provides that QMA will furnish investment advisory services in connection with the management of the Fund. PI pays for the services of the subadviser, 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 .30% of the Fund’s average daily net assets up to and including $1 billion and .25% of such average daily net assets in excess of $1 billion. Effective June 1, 2007 to January 31, 2014, the Fund’s manager has agreed to contractually waive a portion of its management fee, so that the effective management fee for the Fund will be .08% of the average daily net assets of Fund. The effective management fee rate was .08% of the average daily net assets for the six months ended March 31, 2013.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class I and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to plans of distribution, (the “Class A and C Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class I and Class Z shares of the Fund.
Pursuant to the Class A and C Plans, the Fund compensates PIMS for distribution-related activities at an annual rate of up to .30% and 1% of the average daily net assets of the Class A and C shares, respectively.
PIMS has advised the Fund that it has received $35,869 in front-end sales charges resulting from sales of Class A shares during the six months ended March 31, 2013. 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 March 31, 2013, it received $199 and $739 in contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholder, respectively.
PI, PIMS and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
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Prudential Stock Index Fund | | | 37 | |
Notes to Financial Statements
(Unaudited) continued
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. The 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’s Class I and Class Z shares are subject to a transfer agent fee of .07% and .13% of the average daily net assets of the Class I and Class Z shares, respectively. Classes A and C each compensate PMFS for its services as they are incurred.
Prudential Investment Management Inc. (“PIM”), an indirect, wholly-owned subsidiary of Prudential, is the Fund’s security lending agent. For the six months ended March 31, 2013, PIM has been compensated approximately $12,700 for these services.
The Fund invests in the Prudential Core Taxable Money Market Fund (the “Core Fund”), a portfolio of the Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PI. Earnings from the Core Fund are disclosed on the Statement of Operations as affiliated dividend income.
Note 4. Portfolio Securities
Purchases and sales of portfolio securities, other than short-term investments, for the six months ended March 31, 2013, were $7,012,109 and $31,311,847, respectively.
Note 5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of March 31, 2013 were as follows:
| | | | | | |
Tax Basis | | Appreciation | | Depreciation | | Net Unrealized Appreciation |
$369,306,599 | | $447,686,091 | | $(8,626,716) | | $439,059,375 |
The difference between book basis and tax basis was primarily attributable to deferred losses on wash sales as of the most recent fiscal year end.
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Under the Regulated Investment Company Modernization Act of 2010 (“the Act”), the Fund is permitted to carryforward capital losses incurred in the fiscal year ended September 30, 2012 (“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 September 30, 2012 (“pre-enactment losses”) may have an increased likelihood to expire unused. The Fund utilized approximately $30,970,000 of its pre-enactment losses to offset net taxable gains realized in the fiscal year ended September 30, 2012. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses. As of September 30, 2012, the pre and post-enactment losses were approximately:
| | | | |
Post-Enactment Losses: | | $ | 0 | |
| | | | |
Pre-Enactment Losses: | | | | |
Expiring 2014 | | $ | 19,175,000 | |
| | | | |
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Fund offers Class A, Class C, Class I and Class Z shares. Class A shares are sold with a front-end sales charge of up to 3.25%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a 1% contingent deferred sales charge (“CDSC”), although they are not subject to an initial sales charge. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class C shares are sold with a CDSC of 1% during the first year. As of July 9, 2012, the last conversion of Class B shares to Class A shares was completed. There are no Class B shares outstanding and Class B shares are no longer being offered for sale. Class I and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors. The Trust has authorized an unlimited number of shares of beneficial interest at $.001 par value, currently of one series, divided into four classes, designated Class A, Class C, Class I and Class Z.
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Prudential Stock Index Fund | | | 39 | |
Notes to Financial Statements
(Unaudited) continued
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.
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
Class A | | Shares | | | Amount | |
Six months ended March 31, 2013: | | | | | | | | |
Shares sold | | | 566,222 | | | $ | 18,360,262 | |
Shares issued in reinvestment of dividends | | | 71,207 | | | | 2,170,398 | |
Shares reacquired | | | (749,623 | ) | | | (24,650,057 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (112,194 | ) | | | (4,119,397 | ) |
Shares issued upon conversion from Class Z | | | — | * | | | 1 | |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (112,194 | ) | | $ | (4,119,396 | ) |
| | | | | | | | |
Year ended September 30, 2012: | | | | | | | | |
Shares sold | | | 833,382 | | | $ | 24,514,416 | |
Shares issued in reinvestment of dividends | | | 68,244 | | | | 1,852,827 | |
Shares reacquired | | | (1,110,199 | ) | | | (32,180,452 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (208,573 | ) | | | (5,813,209 | ) |
Shares issued upon conversion from Class B | | | 6,092 | | | | 176,955 | |
Shares reacquired upon conversion into Class Z | | | (199 | ) | | | (5,788 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (202,680 | ) | | $ | (5,642,042 | ) |
| | | | | | | | |
Class B | | | | | | |
Period ended July 9, 2012**: | | | | | | | | |
Shares sold | | | 3,613 | | | $ | 99,880 | |
Shares issued in reinvestment of dividends | | | 12 | | | | 329 | |
Shares reacquired | | | (10,484 | ) | �� | | (308,702 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (6,859 | ) | | | (208,493 | ) |
Shares reacquired upon conversion into Class A | | | (6,091 | ) | | | (176,955 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (12,950 | ) | | $ | (385,448 | ) |
| | | | | | | | |
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40 | | Visit our website at www.prudentialfunds.com |
| | | | | | | | |
Class C | | Shares | | | Amount | |
Six months ended March 31, 2013: | | | | | | | | |
Shares sold | | | 42,745 | | | $ | 1,387,535 | |
Shares issued in reinvestment of dividends | | | 7,778 | | | | 236,622 | |
Shares reacquired | | | (62,431 | ) | | | (2,003,984 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (11,908 | ) | | | (379,827 | ) |
Shares reacquired upon conversion into Class Z | | | (84 | ) | | | (2,618 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (11,992 | ) | | $ | (382,445 | ) |
| | | | | | | | |
Year ended September 30, 2012: | | | | | | | | |
Shares sold | | | 43,494 | | | $ | 1,296,963 | |
Shares issued in reinvestment of dividends | | | 7,509 | | | | 203,487 | |
Shares reacquired | | | (114,690 | ) | | | (3,409,958 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (63,687 | ) | | $ | (1,909,508 | ) |
| | | | | | | | |
Class I | | | | | | |
Six months ended March 31, 2013: | | | | | | | | |
Shares sold | | | 433,834 | | | $ | 14,091,856 | |
Shares issued in reinvestment of dividends | | | 112,570 | | | | 3,432,246 | |
Shares reacquired | | | (608,621 | ) | | | (19,920,200 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (62,217 | ) | | $ | (2,396,098 | ) |
| | | | | | | | |
Year ended September 30, 2012: | | | | | | | | |
Shares sold | | | 1,543,730 | | | $ | 45,063,595 | |
Shares issued in reinvestment of dividends | | | 259,501 | | | | 7,048,047 | |
Shares reacquired | | | (9,465,486 | ) | | | (267,558,778 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (7,662,255 | ) | | $ | (215,447,136 | ) |
| | | | | | | | |
Class Z | | | | | | |
Six months ended March 31, 2013: | | | | | | | | |
Shares sold | | | 1,330,447 | | | $ | 43,228,720 | |
Shares issued in reinvestment of dividends | | | 229,313 | | | | 6,994,049 | |
Shares reacquired | | | (2,030,922 | ) | | | (65,869,818 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (471,162 | ) | | | (15,647,049 | ) |
Shares issued upon conversion from Class C | | | 84 | | | | 2,618 | |
Shares reacquired upon conversion into Class A | | | — | * | | | (1 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (471,078 | ) | | $ | (15,644,432 | ) |
| | | | | | | | |
Year ended September 30, 2012: | | | | | | | | |
Shares sold | | | 2,647,575 | | | $ | 78,136,440 | |
Shares issued in reinvestment of dividends | | | 248,342 | | | | 6,744,955 | |
Shares reacquired | | | (4,351,375 | ) | | | (127,746,593 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (1,455,458 | ) | | | (42,865,198 | ) |
Shares issued upon conversion from Class A | | | 198 | | | | 5,788 | |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (1,455,260 | ) | | $ | (42,859,410 | ) |
| | | | | | | | |
** | As of July 9, 2012, the last conversion of Class B shares to Class A shares was completed. There are no Class B shares outstanding and Class B shares are no longer being offered for sale. |
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Prudential Stock Index Fund | | | 41 | |
Notes to Financial Statements
(Unaudited) continued
Note 7. Borrowings
The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period November 15, 2012 through November 14, 2013. The Funds pay an annualized commitment fee of 0.08% on the unused portion of the SCA. Prior to November 15, 2012, the Funds had another SCA with substantially similar terms. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.
The Fund did not utilize the SCA during the six months ended March 31, 2013.
Note 8. In-Kind Redemption
During the year ended September 30, 2012, the Fund settled the redemption of certain fund shares by delivery of certain portfolio securities in lieu of cash. The value of such securities was $201,876,401. The Fund realized a gain of $69,618,721 related to the in-kind redemption transactions. Such gain is excluded from the calculation of the Fund’s taxable gain for Federal Income Tax purposes.
Note 9. New Accounting Pronouncement
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2011-11 regarding “Disclosures about Offsetting Assets and Liabilities”. The amendments, which will be effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, require an entity to disclose information about offsetting and related arrangements for assets and liabilities, financial instruments and derivatives that are either currently offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements. At this time, management is evaluating the implications of ASU No. 2011-11 and its impact on the financial statements has not been determined.
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Financial Highlights
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | |
| | Six Months Ended March 31, | | | | | Year Ended September 30, | |
| 2013 | | | | | 2012(a) | | | 2011(a) | | | 2010(a) | | | 2009(a) | | | 2008 | |
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $32.09 | | | | | | $25.16 | | | | $25.34 | | | | $23.48 | | | | $26.17 | | | | $34.18 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .30 | | | | | | .47 | | | | .40 | | | | .37 | | | | .42 | | | | .53 | |
Net realized and unrealized gain (loss) on investment transactions | | | 2.80 | | | | | | 6.90 | | | | (.20 | ) | | | 1.88 | | | | (2.51 | ) | | | (8.04 | ) |
Total from investment operations | | | 3.10 | | | | | | 7.37 | | | | .20 | | | | 2.25 | | | | (2.09 | ) | | | (7.51 | ) |
Less Dividends: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.52 | ) | | | | | (.44 | ) | | | (.38 | ) | | | (.39 | ) | | | (.60 | ) | | | (.50 | ) |
Net asset value, end of period | | | $34.67 | | | | | | $32.09 | | | | $25.16 | | | | $25.34 | | | | $23.48 | | | | $26.17 | |
Total Return(b): | | | 9.90% | | | | | | 29.60% | | | | .74% | | | | 9.63% | | | | (7.22)% | | | | (22.23)% | |
| |
Ratios/Supplemental Data: | |
Net assets, end of period (000) | | | $152,628 | | | | | | $144,851 | | | | $118,691 | | | | $114,403 | | | | $91,654 | | | | $90,714 | |
Average net assets (000) | | | $146,817 | | | | | | $135,485 | | | | $131,565 | | | | $104,488 | | | | $74,427 | | | | $103,974 | |
Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, including distribution and service (12b-1) fees | | | .53% | (f) | | | | | .55% | | | | .55% | | | | .56% | | | | .61% | | | | .49% | (e) |
Expenses, excluding distribution and service (12b-1) fees | | | .23% | (f) | | | | | .25% | | | | .25% | | | | .26% | | | | .31% | | | | .21% | |
Net investment income | | | 1.87% | (f) | | | | | 1.61% | | | | 1.43% | | | | 1.50% | | | | 2.10% | | | | 1.70% | |
Portfolio turnover rate | | | 1% | (g) | | | | | 4% | | | | 5% | | | | 5% | | | | 6% | | | | 4% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total return includes the effect of expense subsidies. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been .75% for the six months ended March 31, 2013 and .77%, .77%, .78%, .83% and .70% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .45% for the six months ended March 31, 2013 and .47%, .47%, .48%, .53% and .42% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively. The net investment income ratios would have been 1.65% for the six months ended March 31, 2013 and 1.39%, 1.21%, 1.28%, 1.88% and 1.49% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively.
(e) The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets of the Class A shares through January 31, 2008.
(f) Annualized.
(g) Not annualized.
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 43 | |
Financial Highlights
(Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | |
| | Period Ended July 9, | | | | | Year Ended September 30, | |
| | 2012(a)(h) | | | | | 2011(a) | | | 2010(a) | | | 2009(a) | | | 2008 | |
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $25.09 | | | | | | $25.18 | | | | $23.37 | | | | $25.92 | | | | $33.86 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (.03 | ) | | | | | .07 | | | | .15 | | | | .27 | | | | .23 | |
Net realized and unrealized gain (loss) on investment transactions | | | 5.02 | | | | | | (.01 | ) | | | 1.88 | | | | (2.43 | ) | | | (7.92 | ) |
Total from investment operations | | | 4.99 | | | | | | .06 | | | | 2.03 | | | | (2.16 | ) | | | (7.69 | ) |
Less Dividends: | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.03 | ) | | | | | (.15 | ) | | | (.22 | ) | | | (.39 | ) | | | (.25 | ) |
Net asset value, end of period | | | $30.05 | | | | | | $25.09 | | | | $25.18 | | | | $23.37 | | | | $25.92 | |
Total Return(b): | | | 19.89% | | | | | | .23% | | | | 8.73% | | | | (7.86)% | | | | (22.85)% | |
| |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | $213 | | | | | | $325 | | | | $5,435 | | | | $12,538 | | | | $29,580 | |
Average net assets (000) | | | $281 | | | | | | $3,029 | | | | $9,615 | | | | $15,863 | | | | $47,301 | |
Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | |
Expenses, including distribution and service (12b-1) fees | | | 2.32% | (e) | | | | | 1.73% | | | | 1.46% | | | | 1.45% | | | | 1.31% | |
Expenses, excluding distribution and service (12b-1) fees | | | 1.32% | (e) | | | | | .73% | | | | .46% | | | | .45% | | | | .31% | |
Net investment income (loss) | | | (.12)% | (e) | | | | | .27% | | | | .60% | | | | 1.37% | | | | .94% | |
Portfolio turnover rate | | | 4% | (f)(g) | | | | | 5% | | | | 5% | | | | 6% | | | | 4% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total return includes the effect of expense subsidies. Total returns for periods of less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been 2.54% for the period ended July 9, 2012, 1.95%, 1.68%, 1.67% and 1.52% for the years ended September 30, 2011, 2010, 2009 and 2008, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been 1.54% for the period ended July 9, 2012, .95%, .68%, .67% and .52% for the years ended September 30, 2011, 2010, 2009 and 2008, respectively. The net investment income/(loss) ratios would have been (.34)% for the period ended July 9, 2012, .05%, .38%, 1.15% and .73% for the years ended September 30, 2011, 2010, 2009 and 2008, respectively.
(e) Annualized.
(f) Calculated as of September 30, 2012.
(g) Not Annualized.
(h) As of July 9, 2012, the last conversion of Class B shares to Class A shares was completed. There are no Class B shares outstanding and Class B shares are no longer being offered for sale.
See Notes to Financial Statements.
| | |
44 | | Visit our website at www.prudentialfunds.com |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | |
| | Six Months Ended March 31, | | | | | Year Ended September 30, | |
| | 2013 | | | | | 2012(a) | | | 2011(a) | | | 2010(a) | | | 2009(a) | | | 2008 | |
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $31.87 | | | | | | $24.99 | | | | $25.18 | | | | $23.33 | | | | $25.90 | | | | $33.86 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .20 | | | | | | .29 | | | | .23 | | | | .21 | | | | .26 | | | | .25 | |
Net realized and unrealized gain (loss) on investment transactions | | | 2.81 | | | | | | 6.86 | | | | (.19 | ) | | | 1.87 | | | | (2.45 | ) | | | (7.96 | ) |
Total from investment operations | | | 3.01 | | | | | | 7.15 | | | | .04 | | | | 2.08 | | | | (2.19 | ) | | | (7.71 | ) |
Less Dividends: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.34 | ) | | | | | (.27 | ) | | | (.23 | ) | | | (.23 | ) | | | (.38 | ) | | | (.25 | ) |
Net asset value, end of period | | | $34.54 | | | | | | $31.87 | | | | $24.99 | | | | $25.18 | | | | $23.33 | | | | $25.90 | |
Total Return(b): | | | 9.55% | | | | | | 28.78% | | | | .14% | | | | 8.96% | | | | (7.98)% | | | | (22.91)% | |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | $25,511 | | | | | | $23,924 | | | | $20,351 | | | | $22,615 | | | | $23,032 | | | | $28,701 | |
Average net assets (000) | | | $23,958 | | | | | | $23,103 | | | | $23,884 | | | | $23,196 | | | | $20,821 | | | | $37,334 | |
Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, including distribution and service (12b-1) fees | | | 1.16% | (e) | | | | | 1.17% | | | | 1.17% | | | | 1.19% | | | | 1.41% | | | | 1.36% | |
Expenses, excluding distribution and service (12b-1) fees | | | .16% | (e) | | | | | .17% | | | | .17% | | | | .19% | | | | .41% | | | | .36% | |
Net investment income | | | 1.24% | (e) | | | | | .99% | | | | .81% | | | | .86% | | | | 1.33% | | | | .85% | |
Portfolio turnover rate | | | 1% | (f) | | | | | 4% | | | | 5% | | | | 5% | | | | 6% | | | | 4% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total return includes the effect of expense subsidies. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been 1.38% for the six months ended March 31, 2013 and 1.39%,1.39%, 1.41%, 1.63% and 1.57% for the years ended September 30, 2012 and 2011, 2010, 2009 and 2008, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .38% for the six months ended March 31, 2013 and .39%, .39%, .41%, .63% and .57% the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively. The net investment income ratios would have been 1.02% for the six months ended March 31, 2013 and .77%, .59%, .64%, 1.11% and .64% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively.
(e) Annualized.
(f) Not annualized.
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 45 | |
Financial Highlights
(Unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | |
| | Six Months Ended March 31, | | | | | Year Ended September 30, | |
| 2013 | | | | | 2012(a) | | | 2011(a) | | | 2010(a) | | | 2009(a) | | | 2008 | |
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $32.20 | | | | | | $25.25 | | | | $25.43 | | | | $23.55 | | | | $26.26 | | | | $34.31 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .36 | | | | | | .55 | | | | .50 | | | | .46 | | | | .51 | | | | .71 | |
Net realized and unrealized gain (loss) on investment transactions | | | 2.80 | | | | | | 6.94 | | | | (.21 | ) | | | 1.89 | | | | (2.54 | ) | | | (8.16 | ) |
Total from investment operations | | | 3.16 | | | | | | 7.49 | | | | .29 | | | | 2.35 | | | | (2.03 | ) | | | (7.45 | ) |
Less Dividends: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.63 | ) | | | | | (.54 | ) | | | (.47 | ) | | | (.47 | ) | | | (.68 | ) | | | (.60 | ) |
Net asset value, end of period | | | $34.73 | | | | | | $32.20 | | | | $25.25 | | | | $25.43 | | | | $23.55 | | | | $26.26 | |
Total Return(b): | | | 10.12% | | | | | | 30.06% | | | | 1.08% | | | | 10.08% | | | | (6.85)% | | | | (22.02)% | |
| |
Ratios/Supplemental Data: | |
Net assets, end of period (000) | | | $187,710 | | | | | | $176,040 | | | | $331,595 | | | | $322,850 | | | | $325,476 | | | | $399,244 | |
Average net assets (000) | | | $178,247 | | | | | | $214,339 | | | | $376,719 | | | | $321,048 | | | | $288,944 | | | | $567,523 | |
Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, including distribution and service (12b-1) fees | | | .19% | (e) | | | | | .19% | | | | .19% | | | | .20% | | | | .21% | | | | .19% | |
Expenses, excluding distribution and service (12b-1) fees | | | .19% | (e) | | | | | .19% | | | | .19% | | | | .20% | | | | .21% | | | | .19% | |
Net investment income | | | 2.21% | (e) | | | | | 2.00% | | | | 1.79% | | | | 1.85% | | | | 2.53% | | | | 2.03% | |
Portfolio turnover rate | | | 1% | (f) | | | | | 4% | | | | 5% | | | | 5% | | | | 6% | | | | 4% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total return includes the effect of expense subsidies. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been .41% for the six months ended March 31, 2013 and .41%, .41%, .42%, .43% and .40% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .41% for the six months ended March 31, 2013 and .41%, .41%, .42%, .43% and .40% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively. The net investment income ratios would have been 1.99% for the six months ended March 31, 2013 and 1.78%, 1.57%, 1.63%, 2.31% and 1.82% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively.
(e) Annualized.
(f) Not annualized.
See Notes to Financial Statements.
| | |
46 | | Visit our website at www.prudentialfunds.com |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Z Shares | | | | |
| | Six Months Ended March 31, | | | | | Year Ended September 30, | |
| | 2013 | | | | | 2012(a) | | | 2011(a) | | | 2010(a) | | | 2009(a) | | | 2008 | |
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning Of Period | | | $32.19 | | | | | | $25.25 | | | | $25.42 | | | | $23.54 | | | | $26.25 | | | | $34.29 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .37 | | | | | | .56 | | | | .48 | | | | .44 | | | | .50 | | | | .63 | |
Net realized and unrealized gain (loss) on investment transactions | | | 2.78 | | | | | | 6.90 | | | | (.20 | ) | | | 1.90 | | | | (2.54 | ) | | | (8.09 | ) |
Total from investment operations | | | 3.15 | | | | | | 7.46 | | | | .28 | | | | 2.34 | | | | (2.04 | ) | | | (7.46 | ) |
Less Dividends: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.61 | ) | | | | | (.52 | ) | | | (.45 | ) | | | (.46 | ) | | | (.67 | ) | | | (.58 | ) |
Net asset value, end of period | | | $34.73 | | | | | | $32.19 | | | | $25.25 | | | | $25.42 | | | | $23.54 | | | | $26.25 | |
Total Return(b): | | | 10.06% | | | | | | 29.94% | | | | 1.06% | | | | 10.03% | | | | (6.93)% | | | | (22.05)% | |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | $396,362 | | | | | | $382,510 | | | | $336,727 | | | | $352,470 | | | | $393,887 | | | | $480,992 | |
Average net assets (000) | | | $376,108 | | | | | | $373,819 | | | | $381,784 | | | | $383,488 | | | | $351,797 | | | | $599,595 | |
Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, including distribution and service (12b-1) fees | | | .25% | (e) | | | | | .25% | | | | .25% | | | | .26% | | | | .26% | | | | .24% | |
Expenses, excluding distribution and service (12b-1) fees | | | .25% | (e) | | | | | .25% | | | | .25% | | | | .26% | | | | .26% | | | | .24% | |
Net investment income | | | 2.15% | (e) | | | | | 1.91% | | | | 1.73% | | | | 1.79% | | | | 2.48% | | | | 1.96% | |
Portfolio turnover rate | | | 1% | (f) | | | | | 4% | | | | 5% | | | | 5% | | | | 6% | | | | 4% | |
(a) Calculated based on average shares outstanding during the period.
(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total return includes the effect of expense subsidies. Total returns for periods less than one full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been .47% for the six months ended March 31, 2013 and .47%, .47%, .48%, .48% and .45% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .47% for the six months ended March 31, 2013 and .47%, .47%, .48%, .48% and .45% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively. The net investment income ratios would have been 1.93% for the six months ended March 31, 2013 and 1.69%, 1.51%, 1.57%, 2.26% and 1.75% for the years ended September 30, 2012, 2011, 2010, 2009 and 2008, respectively.
(e) Annualized.
(f) Not annualized.
See Notes to Financial Statements.
| | | | |
Prudential Stock Index Fund | | | 47 | |
| | | | |
n MAIL | | n TELEPHONE | | n WEBSITE |
Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | | (800) 225-1852 | | www.prudentialfunds.com |
|
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
|
TRUSTEES |
Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Michael S. Hyland • Douglas H. McCorkindale • Stephen P. Munn • Stuart S. Parker • Richard A. Redeker • Robin B. Smith • Stephen G. Stoneburn |
|
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Bruce Karpati, Chief Compliance Officer • Valerie M. Simpson, Deputy Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Amanda S. Ryan, Assistant Secretary • Andrew R. French, Assistant Secretary • M. Sadiq Peshimam, Assistant Treasurer • Peter Parrella, Assistant Treasurer |
| | | | |
MANAGER | | Prudential Investments LLC | | Gateway Center Three
100 Mulberry Street Newark, NJ 07102 |
|
INVESTMENT SUBADVISER | | Quantitative Management
Associates LLC | | Gateway Center Two
100 Mulberry Street Newark, NJ 07102 |
|
DISTRIBUTOR | | Prudential Investment Management Services LLC | | Gateway Center Three
100 Mulberry Street Newark, NJ 07102 |
|
CUSTODIAN | | The Bank of New York Mellon | | One Wall Street New York, NY 10286 |
|
TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658
Providence, RI 02940 |
|
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | KPMG LLP | | 345 Park Avenue
New York, NY 10154 |
|
FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue
New York, NY 10019 |
|
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
|
E-DELIVERY |
To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
|
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Prudential Stock Index Fund, Prudential Investments, Attn: Board of Trustees, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
|
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q under the Prudential Investment Portfolios 8 name. 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 (202) 551-8090. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month. |
Mutual Funds:
| | | | |
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-13-243025/g520923g96k25.jpg)
PRUDENTIAL STOCK INDEX FUND
| | | | | | | | | | |
| | SHARE CLASS | | A | | C | | I | | Z |
| | NASDAQ | | PSIAX | | PSICX | | PDSIX | | PSIFX |
| | CUSIP | | 74441F108 | | 74441F306 | | 74441F405 | | 74441F504 |
MF174E2 0244182-00001-00
Item 2 – Code of Ethics – Not required, as this is not an annual filing.
Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.
Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.
Item 5 – Audit Committee of Listed Registrants – Not applicable.
Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not
applicable.
Item 10 – Submission of Matters to a Vote of Security Holders – Not applicable.
Item 11 – Controls and Procedures
| (a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
| (b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – Exhibits
| (a) (1) Code | of Ethics – Not required, as this is not an annual filing. |
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.
(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.
| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
Registrant: | | Prudential Investment Portfolios 8 |
| |
By: | | /s/ Deborah A. Docs |
| | Deborah A. Docs |
| | Secretary |
| |
Date: | | May 22, 2013 |
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: | | May 22, 2013 |
| |
By: | | /s/ Grace C. Torres |
| | Grace C. Torres |
| | Treasurer and Principal Financial Officer |
| |
Date: | | May 22, 2013 |