UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-07343 | |||
Exact name of registrant as specified in charter: | The Prudential Investment Portfolios, Inc. | |||
Address of principal executive offices: | 655 Broad Street, 17th Floor | |||
Newark, New Jersey 07102 | ||||
Name and address of agent for service: | Deborah A. Docs | |||
655 Broad Street, 17th Floor | ||||
Newark, New Jersey 07102 | ||||
Registrant’s telephone number, including area code: | 800-225-1852 | |||
Date of fiscal year end: | 9/30/2017 | |||
Date of reporting period: | 3/31/2017 |
Item 1 – | Reports to Stockholders – [ INSERT REPORT ] |
PRUDENTIAL BALANCED FUND
SEMIANNUAL REPORT
MARCH 31, 2017
To enroll in e-delivery, go to pgiminvestments.com/edelivery
Objective: Income and long-term growth of capital |
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, 2017 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser and Prudential Financial company. QMA is the primary business name of Quantitative Management Associates LLC, a wholly owned subsidiary of PGIM. © 2017 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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Letter from the President
Dear Shareholder:
We hope you find the semiannual report for the Prudential Balanced Fund informative and useful. The report covers performance for the six-month period ended March 31, 2017. We are proud to announce that Prudential Investments became PGIM® Investments, effective April 3, 2017. Why PGIM? This new name was chosen to further align with the global investment management businesses of Prudential Financial, which rebranded from Prudential Investment Management in January 2016. This new name allows for one brand and reflects our ability and commitment to delivering investment solutions to clients around the globe. Please keep in mind that only the Fund adviser’s name was changed: the name of your Fund and the management and operation did not change.
Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. We’re part of PGIM, the 9th-largest global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
Prudential Balanced Fund
May 15, 2017
Prudential Balanced Fund | 3 |
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 3/31/17 (without Sales Charges) | Average Annual Total Returns as of 3/31/17 (with Sales Charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||
Class A | 4.87 | 3.66 | 7.40 | 4.79 | ||||
Class B | 4.47 | 3.87 | 7.73 | 4.65 | ||||
Class C | 4.54 | 7.94 | 7.88 | 4.64 | ||||
Class R | 4.76 | 9.47 | 8.42 | 5.14 | ||||
Class Z | 5.00 | 10.03 | 8.97 | 5.69 | ||||
Customized Blend Index | 5.01 | 10.44 | 8.56 | 6.22 | ||||
Bloomberg Barclays US Aggregate Bond Index | –2.18 | 0.44 | 2.34 | 4.27 | ||||
S&P 500 Index | 10.11 | 17.15 | 13.29 | 7.50 | ||||
Lipper Mixed-Asset Target Allocation Growth Funds Average | 5.55 | 11.16 | 7.63 | 4.91 |
*Not annualized
Source: PGIM Investments LLC and Lipper Inc.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class B* | Class C | Class R | Class Z | ||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | |||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1% on sales of $1 million or more made within 12 months of purchase | 5% (Yr. 1) 4% (Yr. 2) 3% (Yr. 3) 2% (Yr. 4) 1% (Yr. 5) 1% (Yr. 6) 0% (Yr. 7) | 1% on sales made within 12 months of purchase | None | None | |||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | .30% | 1% | 1% | .75% (.50% currently) | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
Benchmark Definitions
Customized Blend Index—The Customized Blend Index is made up of the S&P 500 Index (50%), the Bloomberg Barclays US Aggregate Bond Index (40%), the Russell 2000 Index (5%), and the Morgan Stanley Capital International Europe, Australasia and Far East Net Dividend (MSCI EAFE ND) Index (5%). The Net Dividend (ND) version of the MSCI EAFE Index reflects the impact of the maximum withholding taxes on reinvested dividends. Each component of the Customized Blend Index is an unmanaged index generally considered to represent the performance of its asset class. The Customized Blend Index is intended to provide a theoretical comparison to the Fund’s performance based on the amounts allocated to each class under the Fund’s investment strategies.
Bloomberg Barclays US Aggregate Bond Index—The Bloomberg Barclays US Aggregate Bond Index is an unmanaged index of investment-grade securities issued by the US Government and its agencies and by corporations with between one and 10 years remaining to maturity on the securities. It gives a broad look at how US investment-grade bonds have performed.
S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
Prudential Balanced Fund | 5 |
Your Fund’s Performance (continued)
Lipper Mixed-Asset Target Allocation Growth Funds Average—The Lipper Mixed-Asset Target Allocation Growth Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Mixed-Asset Target Allocation Growth Funds universe for the periods noted. Funds in the Lipper Average are funds whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both stocks and bonds. Typically, the stock:bond ratio ranges around 60%:40%.
Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
Five Largest Equity Holdings expressed as a percentage of net assets as of 3/31/17 (%) | ||||
Apple, Inc., Technology Hardware, Storage & Peripherals | 1.4 | |||
Facebook, Inc., Internet Software & Services | 1.1 | |||
JPMorgan Chase & Co., Banks | 1.1 | |||
Bank of America Corp., Banks | 1.0 | |||
Microsoft Corp., Software | 0.9 |
Holdings reflect only long-term equity investments and are subject to change.
Five Largest Equity Industries expressed as a percentage of net assets as of 3/31/17 (%) | ||||
Banks | 4.7 | |||
Oil, Gas & Consumable Fuels | 3.5 | |||
Software | 2.8 | |||
Internet Software & Services | 2.8 | |||
Pharmaceuticals | 2.6 |
Industry weightings reflect only long-term equity investments and are subject to change.
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Fees and Expenses (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended March 31, 2017. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses
Prudential Balanced Fund | 7 |
Fees and Expenses (continued)
paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Prudential Balanced Fund | Beginning Account Value October 1, 2016 | Ending Account Value March 31, 2017 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,048.70 | 1.19 | % | $ | 6.08 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.00 | 1.19 | % | $ | 5.99 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,044.70 | 1.89 | % | $ | 9.63 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.51 | 1.89 | % | $ | 9.50 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,045.40 | 1.89 | % | $ | 9.64 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.51 | 1.89 | % | $ | 9.50 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 1,047.60 | 1.39 | % | $ | 7.10 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.00 | 1.39 | % | $ | 6.99 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,050.00 | 0.89 | % | $ | 4.55 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.49 | 0.89 | % | $ | 4.48 |
*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, 2017, and divided by the 365 days in the Fund's fiscal year ending September 30, 2017 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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Portfolio of Investments (unaudited)
as of March 31, 2017
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 95.5% |
| |||||||
COMMON STOCKS 59.9% |
| |||||||
Aerospace & Defense 1.4% |
| |||||||
Airbus SE (France) | 1,111 | $ | 84,727 | |||||
BAE Systems PLC (United Kingdom) | 6,163 | 49,601 | ||||||
Boeing Co. (The) | 6,600 | 1,167,276 | ||||||
Cobham PLC (United Kingdom) | 3,049 | 5,083 | ||||||
Dassault Aviation SA (France) | 4 | 5,080 | ||||||
Elbit Systems Ltd. (Israel) | 45 | 5,147 | ||||||
Engility Holdings, Inc.* | 3,100 | 89,714 | ||||||
Esterline Technologies Corp.* | 800 | 68,840 | ||||||
Huntington Ingalls Industries, Inc. | 9,300 | 1,862,232 | ||||||
Leonardo SpA (Italy)* | 776 | 11,004 | ||||||
Lockheed Martin Corp. | 8,600 | 2,301,360 | ||||||
Meggitt PLC (United Kingdom) | 1,504 | 8,394 | ||||||
Moog, Inc. (Class A Stock)* | 2,000 | 134,700 | ||||||
Northrop Grumman Corp. | 5,200 | 1,236,768 | ||||||
Rolls-Royce Holdings PLC (United Kingdom)* | 3,449 | 32,583 | ||||||
Safran SA (France) | 601 | 44,855 | ||||||
Singapore Technologies Engineering Ltd. (Singapore) | 3,100 | 8,266 | ||||||
Spirit AeroSystems Holdings, Inc. (Class A Stock) | 1,700 | 98,464 | ||||||
Thales SA (France) | 203 | 19,609 | ||||||
Vectrus, Inc.* | 2,300 | 51,405 | ||||||
Wesco Aircraft Holdings, Inc.* | 3,100 | 35,340 | ||||||
Zodiac Aerospace (France) | 396 | 9,899 | ||||||
|
| |||||||
7,330,347 | ||||||||
Air Freight & Logistics 0.4% |
| |||||||
Bollore SA (France) | 1,631 | 6,313 | ||||||
Deutsche Post AG (Germany) | 1,853 | 63,417 | ||||||
FedEx Corp. | 10,100 | 1,971,015 | ||||||
Royal Mail PLC (United Kingdom) | 1,688 | 8,990 | ||||||
Yamato Holdings Co. Ltd. (Japan) | 700 | 14,668 | ||||||
|
| |||||||
2,064,403 | ||||||||
Airlines 0.0% |
| |||||||
ANA Holdings, Inc. (Japan) | 2,300 | 7,035 | ||||||
Cathay Pacific Airways Ltd. (Hong Kong) | 2,000 | 2,903 | ||||||
Deutsche Lufthansa AG (Germany) | 458 | 7,430 | ||||||
easyJet PLC (United Kingdom) | 281 | 3,613 | ||||||
International Consolidated Airlines Group SA (United Kingdom) | 1,618 | 10,687 | ||||||
Japan Airlines Co. Ltd. (Japan) | 200 | 6,350 | ||||||
Qantas Airways Ltd. (Australia) | 795 | 2,363 | ||||||
Singapore Airlines Ltd. (Singapore) | 1,000 | 7,198 | ||||||
|
| |||||||
47,579 |
See Notes to Financial Statements.
Prudential Balanced Fund | 9 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Auto Components 0.4% |
| |||||||
Aisin Seiki Co. Ltd. (Japan) | 350 | $ | 17,238 | |||||
Bridgestone Corp. (Japan) | 1,200 | 48,712 | ||||||
Cie Generale des Etablissements Michelin (France) | 356 | 43,260 | ||||||
Continental AG (Germany) | 215 | 47,139 | ||||||
Cooper-Standard Holding, Inc.* | 1,600 | 177,488 | ||||||
Dana, Inc. | 4,200 | 81,102 | ||||||
Denso Corp. (Japan) | 950 | 41,916 | ||||||
GKN PLC (United Kingdom) | 3,442 | 15,677 | ||||||
Koito Manufacturing Co. Ltd. (Japan) | 200 | 10,424 | ||||||
Lear Corp. | 9,700 | 1,373,326 | ||||||
NGK Spark Plug Co. Ltd. (Japan) | 400 | 9,173 | ||||||
NOK Corp. (Japan) | 200 | 4,671 | ||||||
Nokian Renkaat OYJ (Finland) | 207 | 8,640 | ||||||
Stanley Electric Co. Ltd. (Japan) | 300 | 8,577 | ||||||
Sumitomo Electric Industries Ltd. (Japan) | 1,400 | 23,273 | ||||||
Sumitomo Rubber Industries Ltd. (Japan) | 300 | 5,119 | ||||||
Tenneco, Inc. | 2,900 | 181,018 | ||||||
Toyoda Gosei Co. Ltd. (Japan) | 150 | 3,826 | ||||||
Toyota Industries Corp. (Japan) | 300 | 14,923 | ||||||
Valeo SA (France) | 456 | 30,334 | ||||||
Yokohama Rubber Co. Ltd. (The) (Japan) | 200 | 3,920 | ||||||
|
| |||||||
2,149,756 | ||||||||
Automobiles 0.8% |
| |||||||
Bayerische Motoren Werke AG (Germany) | 633 | 57,756 | ||||||
Daimler AG (Germany) | 1,851 | 136,603 | ||||||
Ferrari NV (Italy) | 240 | 17,888 | ||||||
Fiat Chrysler Automobiles NV (United Kingdom)* | 1,718 | 18,770 | ||||||
Ford Motor Co. | 106,100 | 1,235,004 | ||||||
General Motors Co. | 57,900 | 2,047,344 | ||||||
Honda Motor Co. Ltd. (Japan) | 3,100 | 93,586 | ||||||
Isuzu Motors Ltd. (Japan) | 1,150 | 15,231 | ||||||
Mazda Motor Corp. (Japan) | 1,060 | 15,301 | ||||||
Mitsubishi Motors Corp. (Japan) | 1,470 | 8,818 | ||||||
Nissan Motor Co. Ltd. (Japan) | 4,600 | 44,355 | ||||||
Peugeot SA (France)* | 967 | 19,434 | ||||||
Renault SA (France) | 361 | 31,361 | ||||||
Subaru Corp. (Japan) | 1,200 | 44,014 | ||||||
Suzuki Motor Corp. (Japan) | 700 | 29,074 | ||||||
Thor Industries, Inc. | 1,400 | 134,582 | ||||||
Toyota Motor Corp. (Japan) | 5,004 | 271,606 |
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Automobiles (cont’d.) |
| |||||||
Volkswagen AG (Germany) | 59 | $ | 8,815 | |||||
Yamaha Motor Co. Ltd. (Japan) | 500 | 12,039 | ||||||
|
| |||||||
4,241,581 | ||||||||
Banks 4.7% |
| |||||||
1st Source Corp. | 1,200 | 56,340 | ||||||
ABN AMRO Group NV-CVA (Netherlands), RegS, 144A | 538 | 13,046 | ||||||
American National Bankshares, Inc. | 300 | 11,175 | ||||||
Aozora Bank Ltd. (Japan) | 2,100 | 7,753 | ||||||
Australia & New Zealand Banking Group Ltd. (Australia) | 5,640 | 136,943 | ||||||
BancFirst Corp. | 600 | 53,940 | ||||||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 12,552 | 97,437 | ||||||
Banco de Sabadell SA (Spain) | 10,534 | 19,301 | ||||||
Banco Popular Espanol SA (Spain)* | 5,959 | 5,778 | ||||||
Banco Santander SA (Spain) | 28,095 | 171,979 | ||||||
Bank Hapoalim BM (Israel) | 2,045 | 12,463 | ||||||
Bank Leumi Le-Israel BM (Israel)* | 2,683 | 11,845 | ||||||
Bank of America Corp. | 217,200 | 5,123,748 | ||||||
Bank of East Asia Ltd. (The) (Hong Kong) | 2,200 | 9,102 | ||||||
Bank of Ireland (Ireland)* | 56,454 | 14,122 | ||||||
Bank of Kyoto Ltd. (The) (Japan) | 600 | 4,379 | ||||||
Bank of Queensland Ltd. (Australia) | 843 | 7,826 | ||||||
Bankia SA (Spain) | 9,678 | 11,017 | ||||||
Bankinter SA (Spain) | 1,265 | 10,607 | ||||||
Barclays PLC (United Kingdom) | 32,648 | 92,158 | ||||||
Bendigo & Adelaide Bank Ltd. (Australia) | 837 | 7,755 | ||||||
Berkshire Hills Bancorp, Inc. | 3,700 | 133,385 | ||||||
BNP Paribas SA (France) | 2,041 | 135,817 | ||||||
BOC Hong Kong Holdings Ltd. (China) | 7,000 | 28,611 | ||||||
Bryn Mawr Bank Corp. | 300 | 11,850 | ||||||
CaixaBank SA (Spain) | 6,867 | 29,525 | ||||||
Cathay General BanCorp | 1,900 | 71,592 | ||||||
Central Pacific Financial Corp. | 1,300 | 39,702 | ||||||
Chiba Bank Ltd. (The) (Japan) | 1,500 | 9,652 | ||||||
Chugoku Bank Ltd. (The) (Japan) | 300 | 4,378 | ||||||
Citigroup, Inc. | 61,170 | 3,659,189 | ||||||
Columbia Banking System, Inc. | 1,300 | 50,687 | ||||||
Commerzbank AG (Germany) | 2,152 | 19,498 | ||||||
Commonwealth Bank of Australia (Australia) | 3,386 | 222,037 | ||||||
Concordia Financial Group Ltd. (Japan) | 2,200 | 10,199 | ||||||
Credit Agricole SA (France) | 2,144 | 28,980 | ||||||
Danske Bank A/S (Denmark) | 1,322 | 45,075 |
See Notes to Financial Statements.
Prudential Balanced Fund | 11 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) |
| |||||||
DBS Group Holdings Ltd. (Singapore) | 3,407 | $ | 47,193 | |||||
DNB ASA (Norway) | 1,833 | 29,105 | ||||||
Enterprise Financial Services Corp. | 2,200 | 93,280 | ||||||
Erste Group Bank AG (Austria)* | 554 | 18,039 | ||||||
Farmers National Banc Corp. | 1,500 | 21,525 | ||||||
FCB Financial Holdings, Inc. (Class A Stock)* | 1,300 | 64,415 | ||||||
Financial Institutions, Inc. | 3,400 | 112,030 | ||||||
First Bancorp | 500 | 14,645 | ||||||
First BanCorp (Puerto Rico)* | 9,800 | 55,370 | ||||||
First Busey Corp. | 1,700 | 49,980 | ||||||
First Citizens BancShares, Inc. (Class A Stock) | 440 | 147,563 | ||||||
First Community Bancshares, Inc. | 1,600 | 39,952 | ||||||
First Financial Bancorp | 3,100 | 85,095 | ||||||
First Financial Corp. | 1,400 | 66,500 | ||||||
First Merchants Corp. | 900 | 35,388 | ||||||
First Midwest Bancorp, Inc. | 6,300 | 149,184 | ||||||
Fukuoka Financial Group, Inc. (Japan) | 1,700 | 7,384 | ||||||
Fulton Financial Corp. | 1,800 | 32,130 | ||||||
Great Southern Bancorp, Inc. | 800 | 40,400 | ||||||
Hachijuni Bank Ltd. (The) (Japan) | 800 | 4,514 | ||||||
Hancock Holding Co. | 3,000 | 136,650 | ||||||
Hang Seng Bank Ltd. (Hong Kong) | 1,500 | 30,430 | ||||||
Heartland Financial USA, Inc. | 1,900 | 94,905 | ||||||
Heritage Financial Corp. | 700 | 17,325 | ||||||
Hilltop Holdings, Inc. | 7,600 | 208,772 | ||||||
Hiroshima Bank Ltd. (The) (Japan) | 1,000 | 4,253 | ||||||
HSBC Holdings PLC (United Kingdom) | 38,188 | 311,493 | ||||||
IBERIABANK Corp. | 1,100 | 87,010 | ||||||
Independent Bank Corp./MI | 2,100 | 43,470 | ||||||
Independent Bank Group, Inc. | 900 | 57,870 | ||||||
ING Groep NV-CVA (Netherlands) | 7,472 | 112,860 | ||||||
International Bancshares Corp. | 1,700 | 60,180 | ||||||
Intesa Sanpaolo SpA (Italy) | 24,284 | 66,055 | ||||||
Intesa Sanpaolo SpA-RSP (Italy) | 1,491 | 3,792 | ||||||
Japan Post Bank Co. Ltd. (Japan) | 800 | 9,933 | ||||||
JPMorgan Chase & Co. | 66,430 | 5,835,211 | ||||||
KBC Group NV (Belgium) | 484 | 32,086 | ||||||
Kyushu Financial Group, Inc. (Japan) | 1,000 | 6,125 | ||||||
Lloyds Banking Group PLC (United Kingdom) | 122,566 | 101,936 | ||||||
MainSource Financial Group, Inc. | 1,000 | 32,930 | ||||||
Mebuki Financial Group, Inc. (Japan) | 1,404 | 5,610 | ||||||
Mediobanca SpA (Italy) | 1,171 | 10,558 |
See Notes to Financial Statements.
12 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) |
| |||||||
MidWestOne Financial Group, Inc. | 400 | $ | 13,716 | |||||
Mitsubishi UFJ Financial Group, Inc. (Japan) | 24,500 | 154,330 | ||||||
Mizrahi Tefahot Bank Ltd. (Israel) | 326 | 5,526 | ||||||
Mizuho Financial Group, Inc. (Japan) | 46,060 | 84,547 | ||||||
National Australia Bank Ltd. (Australia) | 5,247 | 133,601 | ||||||
Natixis SA (France) | 1,762 | 10,847 | ||||||
Nordea Bank AB (Sweden) | 5,796 | 66,126 | ||||||
OFG Bancorp (Puerto Rico) | 3,400 | 40,120 | ||||||
Old Second Bancorp, Inc. | 2,100 | 23,625 | ||||||
Oversea-Chinese Banking Corp. Ltd. (Singapore) | 6,027 | 41,864 | ||||||
Peapack Gladstone Financial Corp. | 1,500 | 44,385 | ||||||
Peoples BanCorp, Inc. | 1,200 | 37,992 | ||||||
PNC Financial Services Group, Inc. (The) | 21,000 | 2,525,040 | ||||||
Popular, Inc. (Puerto Rico) | 11,500 | 468,395 | ||||||
Preferred Bank | 500 | 26,830 | ||||||
QCR Holdings, Inc. | 1,200 | 50,820 | ||||||
Raiffeisen Bank International AG (Austria)* | 280 | 6,315 | ||||||
Republic Bancorp, Inc. (Class A Stock) | 500 | 17,195 | ||||||
Resona Holdings, Inc. (Japan) | 4,200 | 22,579 | ||||||
Royal Bank of Scotland Group PLC (United Kingdom)* | 7,070 | 21,438 | ||||||
S&T Bancorp, Inc. | 400 | 13,840 | ||||||
Seven Bank Ltd. (Japan) | 1,200 | 3,930 | ||||||
Shinsei Bank Ltd. (Japan) | 3,200 | 5,896 | ||||||
Shizuoka Bank Ltd. (The) (Japan) | 1,100 | 8,970 | ||||||
Skandinaviska Enskilda Banken AB (Sweden) (Class A Stock) | 2,849 | 31,658 | ||||||
Societe Generale SA (France) | 1,464 | 74,174 | ||||||
Standard Chartered PLC (United Kingdom)* | 6,285 | 60,115 | ||||||
Sumitomo Mitsui Financial Group, Inc. (Japan) | 2,567 | 93,436 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. (Japan) | 618 | 21,415 | ||||||
Suruga Bank Ltd. (Japan) | 400 | 8,443 | ||||||
Svenska Handelsbanken AB (Sweden) (Class A Stock) | 2,913 | 39,920 | ||||||
Swedbank AB (Sweden) (Class A Stock) | 1,768 | 40,909 | ||||||
TriState Capital Holdings, Inc.* | 2,600 | 60,710 | ||||||
Umpqua Holdings Corp. | 900 | 15,966 | ||||||
UniCredit SpA (Italy) | 3,618 | 55,773 | ||||||
Union Bankshares Corp. | 2,500 | 87,950 | ||||||
United Community Banks, Inc. | 4,400 | 121,836 | ||||||
United Overseas Bank Ltd. (Singapore) | 2,504 | 39,551 | ||||||
Wells Fargo & Co. | 32,241 | 1,794,534 | ||||||
West Bancorporation, Inc. | 600 | 13,770 | ||||||
Westpac Banking Corp. (Australia) | 6,424 | 171,729 | ||||||
Wintrust Financial Corp. | 1,200 | 82,944 | ||||||
Yamaguchi Financial Group, Inc. (Japan) | 400 | 4,339 | ||||||
|
| |||||||
25,409,136 |
See Notes to Financial Statements.
Prudential Balanced Fund | 13 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Beverages 0.8% |
| |||||||
Anheuser-Busch InBev SA (Belgium) | 1,464 | $ | 160,419 | |||||
Asahi Group Holdings Ltd. (Japan) | 750 | 28,398 | ||||||
Carlsberg A/S (Denmark) (Class B Stock) | 214 | 19,761 | ||||||
Coca-Cola Amatil Ltd. (Australia) | 1,132 | 9,359 | ||||||
Coca-Cola Bottlers Japan, Inc. (Japan) | 200 | 6,449 | ||||||
Coca-Cola European Partners PLC (United Kingdom) | 407 | 15,202 | ||||||
Coca-Cola HBC AG (Switzerland)* | 342 | 8,829 | ||||||
Diageo PLC (United Kingdom) | 4,847 | 138,795 | ||||||
Heineken Holding NV (Netherlands) | 189 | 15,012 | ||||||
Heineken NV (Netherlands) | 444 | 37,784 | ||||||
Kirin Holdings Co. Ltd. (Japan) | 1,600 | 30,266 | ||||||
National Beverage Corp.(a) | 1,800 | 152,154 | ||||||
PepsiCo, Inc. | 31,800 | 3,557,148 | ||||||
Pernod Ricard SA (France) | 413 | 48,825 | ||||||
Remy Cointreau SA (France) | 40 | 3,913 | ||||||
Suntory Beverage & Food Ltd. (Japan) | 300 | 12,674 | ||||||
Treasury Wine Estates Ltd. (Australia) | 1,368 | 12,780 | ||||||
|
| |||||||
4,257,768 | ||||||||
Biotechnology 2.1% |
| |||||||
AbbVie, Inc. | 40,500 | 2,638,980 | ||||||
Acorda Therapeutics, Inc.* | 3,700 | 77,700 | ||||||
Actelion Ltd. (Switzerland)* | 193 | 54,375 | ||||||
AMAG Pharmaceuticals, Inc.* | 4,400 | 99,220 | ||||||
Amgen, Inc. | 13,300 | 2,182,131 | ||||||
Applied Genetic Technologies Corp.* | 4,000 | 27,600 | ||||||
Biogen, Inc.* | 3,900 | 1,066,338 | ||||||
BioSpecifics Technologies Corp.* | 1,900 | 104,120 | ||||||
Celgene Corp.* | 22,000 | 2,737,460 | ||||||
Chimerix, Inc.* | 9,800 | 62,524 | ||||||
Concert Pharmaceuticals, Inc.* | 5,300 | 90,418 | ||||||
CSL Ltd. (Australia) | 872 | 83,490 | ||||||
Exelixis, Inc.* | 4,900 | 106,183 | ||||||
FibroGen, Inc.* | 7,100 | 175,015 | ||||||
Genmab A/S (Denmark)* | 107 | 20,590 | ||||||
Genomic Health, Inc.* | 4,700 | 148,003 | ||||||
Gilead Sciences, Inc. | 15,500 | 1,052,760 | ||||||
Grifols SA (Spain) | 581 | 14,255 | ||||||
Natera, Inc.* | 1,400 | 12,418 | ||||||
PDL BioPharma, Inc. | 6,200 | 14,074 | ||||||
Shire PLC | 1,735 | 101,093 |
See Notes to Financial Statements.
14 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology (cont’d.) |
| |||||||
Vanda Pharmaceuticals, Inc.* | 10,400 | $ | 145,600 | |||||
Veracyte, Inc.* | 1,100 | 10,098 | ||||||
|
| |||||||
11,024,445 | ||||||||
Building Products 0.2% |
| |||||||
American Woodmark Corp.* | 800 | 73,440 | ||||||
Armstrong World Industries, Inc.* | 3,500 | 161,175 | ||||||
Asahi Glass Co. Ltd. (Japan) | 1,900 | 15,416 | ||||||
Assa Abloy AB (Sweden) (Class B Stock) | 1,931 | 39,697 | ||||||
Cie de Saint-Gobain (France) | 950 | 48,742 | ||||||
Continental Building Products, Inc.* | 5,200 | 127,400 | ||||||
Daikin Industries Ltd. (Japan) | 450 | 45,377 | ||||||
Geberit AG (Switzerland) | 73 | 31,456 | ||||||
LIXIL Group Corp. (Japan) | 500 | 12,708 | ||||||
NCI Building Systems, Inc.* | 1,800 | 30,870 | ||||||
Patrick Industries, Inc.* | 800 | 56,720 | ||||||
TOTO Ltd. (Japan) | 250 | 9,457 | ||||||
Trex Co., Inc.* | 800 | 55,512 | ||||||
Universal Forest Products, Inc. | 1,700 | 167,518 | ||||||
|
| |||||||
875,488 | ||||||||
Capital Markets 1.6% |
| |||||||
3i Group PLC (United Kingdom) | 1,959 | 18,393 | ||||||
Aberdeen Asset Management PLC (United Kingdom) | 1,874 | 6,219 | ||||||
Ameriprise Financial, Inc. | 4,300 | 557,624 | ||||||
Associated Capital Group, Inc. (Class A Stock) | 300 | 10,845 | ||||||
ASX Ltd. (Australia) | 375 | 14,462 | ||||||
Credit Suisse Group AG (Switzerland)* | 3,788 | 56,360 | ||||||
Daiwa Securities Group, Inc. (Japan) | 3,000 | 18,305 | ||||||
Deutsche Bank AG (Germany)* | 4,185 | 71,945 | ||||||
Deutsche Boerse AG (Germany)* | 374 | 34,272 | ||||||
Evercore Partners, Inc. (Class A Stock) | 2,300 | 179,170 | ||||||
GAIN Capital Holdings, Inc. | 2,400 | 19,992 | ||||||
GAMCO Investors, Inc. (Class A Stock) | 600 | 17,754 | ||||||
Goldman Sachs Group, Inc. (The) | 12,915 | 2,966,834 | ||||||
Hargreaves Lansdown PLC (United Kingdom) | 491 | 7,998 | ||||||
Hong Kong Exchanges & Clearing Ltd. (Hong Kong) | 2,300 | 58,038 | ||||||
Houlihan Lokey, Inc. | 700 | 24,115 | ||||||
INTL FCStone, Inc.* | 2,100 | 79,716 | ||||||
Investec PLC (South Africa) | 1,252 | 8,537 | ||||||
Japan Exchange Group, Inc. (Japan) | 1,000 | 14,264 | ||||||
Julius Baer Group Ltd. (Switzerland)* | 455 | 22,730 |
See Notes to Financial Statements.
Prudential Balanced Fund | 15 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Capital Markets (cont’d.) |
| |||||||
London Stock Exchange Group PLC (United Kingdom) | 588 | $ | 23,393 | |||||
LPL Financial Holdings, Inc. | 3,200 | 127,456 | ||||||
Macquarie Group Ltd. (Australia) | 591 | 40,718 | ||||||
Nomura Holdings, Inc. (Japan) | 7,100 | 43,951 | ||||||
OM Asset Management PLC | 3,000 | 45,360 | ||||||
Partners Group Holding AG (Switzerland) | 34 | 18,272 | ||||||
Raymond James Financial, Inc. | 20,100 | 1,532,826 | ||||||
S&P Global, Inc. | 13,800 | 1,804,212 | ||||||
SBI Holdings, Inc. (Japan) | 480 | 6,707 | ||||||
Schroders PLC (United Kingdom) | 241 | 9,146 | ||||||
Singapore Exchange Ltd. (Singapore) | 1,600 | 8,807 | ||||||
State Street Corp. | 8,600 | 684,646 | ||||||
UBS Group AG (Switzerland) | 6,979 | 111,557 | ||||||
|
| |||||||
8,644,624 | ||||||||
Chemicals 1.0% |
| |||||||
A. Schulman, Inc. | 4,200 | 132,090 | ||||||
AdvanSix, Inc.* | 804 | 21,965 | ||||||
Air Liquide SA (France) | 742 | 84,721 | ||||||
Air Products & Chemicals, Inc. | 600 | 81,174 | ||||||
Air Water, Inc. (Japan) | 300 | 5,547 | ||||||
Akzo Nobel NV (Netherlands) | 484 | 40,067 | ||||||
Arkema SA (France) | 127 | 12,502 | ||||||
Asahi Kasei Corp. (Japan) | 2,300 | 22,348 | ||||||
BASF SE (Germany) | 1,764 | 174,661 | ||||||
Chase Corp. | 200 | 19,080 | ||||||
Chemours Co. (The) | 8,300 | 319,550 | ||||||
Chr Hansen Holding A/S (Denmark) | 186 | 11,931 | ||||||
Covestro AG (Germany), RegS, 144A | 175 | 13,482 | ||||||
Croda International PLC (United Kingdom) | 272 | 12,149 | ||||||
Daicel Corp. (Japan) | 600 | 7,245 | ||||||
EMS-Chemie Holding AG (Switzerland) | 16 | 9,318 | ||||||
Evonik Industries AG (Germany) | 300 | 9,778 | ||||||
Frutarom Industries Ltd. (Israel) | 73 | 4,080 | ||||||
GCP Applied Technologies, Inc.* | 5,800 | 189,370 | ||||||
Givaudan SA (Switzerland) | 18 | 32,419 | ||||||
Hitachi Chemical Co. Ltd. (Japan) | 200 | 5,556 | ||||||
Incitec Pivot Ltd. (Australia) | 3,496 | 10,037 | ||||||
Innophos Holdings, Inc. | 300 | 16,191 | ||||||
Israel Chemicals Ltd. (Israel) | 996 | 4,224 | ||||||
Johnson Matthey PLC (United Kingdom) | 352 | 13,581 | ||||||
JSR Corp. (Japan) | 350 | 5,922 |
See Notes to Financial Statements.
16 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Chemicals (cont’d.) |
| |||||||
K+S AG (Germany) | 354 | $ | 8,228 | |||||
Kaneka Corp. (Japan) | 500 | 3,740 | ||||||
Kansai Paint Co. Ltd. (Japan) | 400 | 8,537 | ||||||
KMG Chemicals, Inc. | 1,300 | 59,891 | ||||||
Koninklijke DSM NV (Netherlands) | 354 | 23,941 | ||||||
Koppers Holdings, Inc.* | 1,800 | 76,230 | ||||||
Kuraray Co. Ltd. (Japan) | 700 | 10,649 | ||||||
LANXESS AG (Germany) | 175 | 11,739 | ||||||
Linde AG (Germany) | 355 | 59,151 | ||||||
LyondellBasell Industries NV (Class A Stock) | 19,900 | 1,814,681 | ||||||
Mitsubishi Chemical Holdings Corp. (Japan) | 2,500 | 19,410 | ||||||
Mitsubishi Gas Chemical Co., Inc. (Japan) | 450 | 9,373 | ||||||
Mitsui Chemicals, Inc. (Japan) | 1,600 | 7,927 | ||||||
Nippon Paint Holdings Co. Ltd. (Japan) | 300 | 10,478 | ||||||
Nissan Chemical Industries Ltd. (Japan) | 200 | 5,834 | ||||||
Nitto Denko Corp. (Japan) | 300 | 23,208 | ||||||
Novozymes A/S (Denmark) (Class B Stock) | 432 | 17,116 | ||||||
Orica Ltd. (Australia) | 716 | 9,624 | ||||||
PolyOne Corp. | 300 | 10,227 | ||||||
Sherwin-Williams Co. (The) | 5,400 | 1,675,026 | ||||||
Shin-Etsu Chemical Co. Ltd. (Japan) | 700 | 60,844 | ||||||
Sika AG (Switzerland) | 4 | 23,991 | ||||||
Solvay SA (Belgium) | 139 | 16,959 | ||||||
Stepan Co. | 500 | 39,405 | ||||||
Sumitomo Chemical Co. Ltd. (Japan) | 2,800 | 15,683 | ||||||
Symrise AG (Germany) | 252 | 16,758 | ||||||
Syngenta AG (Switzerland) | 177 | 78,170 | ||||||
Taiyo Nippon Sanso Corp. (Japan) | 300 | 3,512 | ||||||
Teijin Ltd. (Japan) | 380 | 7,175 | ||||||
Toray Industries, Inc. (Japan) | 2,800 | 24,920 | ||||||
Trinseo SA | 2,800 | 187,880 | ||||||
Umicore SA (Belgium) | 172 | 9,795 | ||||||
Yara International ASA (Norway) | 345 | 13,289 | ||||||
|
| |||||||
5,622,379 | ||||||||
Commercial Services & Supplies 0.2% |
| |||||||
Babcock International Group PLC (United Kingdom) | 446 | 4,928 | ||||||
Brambles Ltd. (Australia) | 2,975 | 21,246 | ||||||
Brink’s Co. (The) | 3,600 | 192,420 | ||||||
Dai Nippon Printing Co. Ltd. (Japan) | 1,100 | 11,903 | ||||||
Edenred (France) | 375 | 8,851 | ||||||
Ennis, Inc. | 2,900 | 49,300 |
See Notes to Financial Statements.
Prudential Balanced Fund | 17 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Commercial Services & Supplies (cont’d.) |
| |||||||
G4S PLC (United Kingdom) | 3,243 | $ | 12,363 | |||||
Herman Miller, Inc. | 2,000 | 63,100 | ||||||
ISS A/S (Denmark) | 338 | 12,778 | ||||||
Knoll, Inc. | 5,400 | 128,574 | ||||||
Park24 Co. Ltd. (Japan) | 200 | 5,255 | ||||||
Secom Co. Ltd. (Japan) | 400 | 28,743 | ||||||
Securitas AB (Sweden) (Class B Stock) | 587 | 9,164 | ||||||
Societe BIC SA (France) | 55 | 6,852 | ||||||
Sohgo Security Services Co. Ltd. (Japan) | 100 | 3,746 | ||||||
Steelcase, Inc. (Class A Stock) | 9,700 | 162,475 | ||||||
Toppan Printing Co. Ltd. (Japan) | 1,100 | 11,243 | ||||||
West Corp. | 4,800 | 117,216 | ||||||
|
| |||||||
850,157 | ||||||||
Communications Equipment 0.7% |
| |||||||
Black Box Corp. | 1,900 | 17,005 | ||||||
Cisco Systems, Inc. | 54,266 | 1,834,191 | ||||||
CommScope Holding Co., Inc.* | 12,100 | 504,691 | ||||||
Extreme Networks, Inc.* | 3,200 | 24,032 | ||||||
F5 Networks, Inc.* | 5,000 | 712,850 | ||||||
NETGEAR, Inc.* | 3,200 | 158,560 | ||||||
Nokia OYJ (Finland) | 11,183 | 60,107 | ||||||
Plantronics, Inc. | 3,000 | 162,330 | ||||||
Telefonaktiebolaget LM Ericsson (Sweden) (Class B Stock) | 5,913 | 39,477 | ||||||
Viavi Solutions, Inc.* | 2,200 | 23,584 | ||||||
|
| |||||||
3,536,827 | ||||||||
Construction & Engineering 0.2% |
| |||||||
ACS Actividades de Construccion y Servicios SA (Spain) | 398 | 13,529 | ||||||
Argan, Inc. | 1,700 | 112,455 | ||||||
Boskalis Westminster (Netherlands) | 165 | 5,685 | ||||||
Bouygues SA (France) | 403 | 16,380 | ||||||
CIMIC Group Ltd. (Australia) | 169 | 4,637 | ||||||
Comfort Systems USA, Inc. | 1,400 | 51,310 | ||||||
Eiffage SA (France) | 122 | 9,548 | ||||||
EMCOR Group, Inc. | 3,300 | 207,735 | ||||||
Ferrovial SA (Spain) | 944 | 18,868 | ||||||
HOCHTIEF AG (Germany) | 37 | 6,115 | ||||||
JGC Corp. (Japan) | 400 | 6,966 | ||||||
Kajima Corp. (Japan) | 1,600 | 10,466 | ||||||
KBR, Inc. | 20,500 | 308,115 | ||||||
MasTec, Inc.* | 2,000 | 80,100 |
See Notes to Financial Statements.
18 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Construction & Engineering (cont’d.) |
| |||||||
Obayashi Corp. (Japan) | 1,200 | $ | 11,252 | |||||
Shimizu Corp. (Japan) | 1,200 | 10,776 | ||||||
Skanska AB (Sweden) (Class B Stock) | 638 | 15,015 | ||||||
Taisei Corp. (Japan) | 1,900 | 13,895 | ||||||
Vinci SA (France) | 979 | 77,741 | ||||||
|
| |||||||
980,588 | ||||||||
Construction Materials 0.0% |
| |||||||
Boral Ltd. (Australia) | 2,275 | 10,142 | ||||||
CRH PLC (Ireland) | 1,605 | 56,559 | ||||||
Fletcher Building Ltd. (New Zealand) | 1,286 | 7,492 | ||||||
HeidelbergCement AG (Germany) | 284 | 26,596 | ||||||
Imerys SA (France) | 75 | 6,361 | ||||||
James Hardie Industries PLC (Ireland) | 843 | 13,245 | ||||||
LafargeHolcim Ltd. (Switzerland)* | 885 | 52,214 | ||||||
Taiheiyo Cement Corp. (Japan) | 2,500 | 8,389 | ||||||
United States Lime & Minerals, Inc. | 500 | 39,490 | ||||||
|
| |||||||
220,488 | ||||||||
Consumer Finance 0.5% |
| |||||||
Acom Co. Ltd. (Japan)* | 700 | 2,802 | ||||||
AEON Financial Service Co. Ltd. (Japan) | 200 | 3,777 | ||||||
Capital One Financial Corp. | 22,800 | 1,975,848 | ||||||
Credit Saison Co. Ltd. (Japan) | 300 | 5,376 | ||||||
Discover Financial Services | 10,800 | 738,612 | ||||||
Enova International, Inc.* | 4,100 | 60,885 | ||||||
Nelnet, Inc. (Class A Stock) | 2,400 | 105,264 | ||||||
Provident Financial PLC (United Kingdom) | 277 | 10,408 | ||||||
|
| |||||||
2,902,972 | ||||||||
Containers & Packaging 0.1% |
| |||||||
Amcor Ltd. (Australia) | 2,172 | 24,983 | ||||||
Greif, Inc. (Class A Stock) | 3,400 | 187,306 | ||||||
Owens-Illinois, Inc.* | 26,800 | 546,184 | ||||||
Toyo Seikan Group Holdings Ltd. (Japan) | 300 | 4,882 | ||||||
|
| |||||||
763,355 | ||||||||
Distributors 0.0% |
| |||||||
Jardine Cycle & Carriage Ltd. (Singapore) | 200 | 6,264 |
See Notes to Financial Statements.
Prudential Balanced Fund | 19 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Consumer Services 0.1% |
| |||||||
American Public Education, Inc.* | 1,000 | $ | 22,900 | |||||
Benesse Holdings, Inc. (Japan) | 150 | 4,695 | ||||||
Capella Education Co. | 1,000 | 85,025 | ||||||
Grand Canyon Education, Inc.* | 2,900 | 207,669 | ||||||
|
| |||||||
320,289 | ||||||||
Diversified Financial Services 0.7% |
| |||||||
AMP Ltd. (Australia) | 5,710 | 22,589 | ||||||
Berkshire Hathaway, Inc. (Class B Stock)* | 18,800 | 3,133,584 | ||||||
Challenger Ltd. (Australia) | 1,072 | 10,274 | ||||||
Eurazeo SA (France) | 66 | 4,342 | ||||||
EXOR NV (Netherlands) | 227 | 11,738 | ||||||
First Pacific Co. Ltd. (Hong Kong) | 4,000 | 2,907 | ||||||
Groupe Bruxelles Lambert SA (Belgium) | 151 | 13,704 | ||||||
Industrivarden AB (Sweden) (Class C Stock) | 317 | 6,860 | ||||||
Investor AB (Sweden) (Class B Stock) | 878 | 36,917 | ||||||
Kinnevik AB (Sweden) (Class B Stock) | 478 | 12,742 | ||||||
L E Lundbergforetagen AB (Sweden) | 73 | 4,948 | ||||||
Leucadia National Corp. | 18,800 | 488,800 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. (Japan) | 900 | 4,498 | ||||||
NewStar Financial, Inc. | 1,100 | 11,638 | ||||||
ORIX Corp. (Japan) | 2,540 | 37,700 | ||||||
Pargesa Holding SA (Switzerland) | 80 | 5,654 | ||||||
Wendel SA (France) | 54 | 6,838 | ||||||
|
| |||||||
3,815,733 | ||||||||
Diversified Telecommunication Services 1.6% |
| |||||||
AT&T, Inc. | 99,074 | 4,116,525 | ||||||
Bezeq the Israeli Telecommunication Corp. Ltd. (Israel) | 3,777 | 6,783 | ||||||
BT Group PLC (United Kingdom) | 16,101 | 64,293 | ||||||
Deutsche Telekom AG (Germany) | 6,307 | 110,516 | ||||||
Elisa OYJ (Finland) | 302 | 10,676 | ||||||
HKT Trust & HKT Ltd. (Hong Kong) | 6,720 | 8,665 | ||||||
IDT Corp. (Class B Stock) | 1,400 | 17,808 | ||||||
Iliad SA (France) | 54 | 12,060 | ||||||
Inmarsat PLC (United Kingdom) | 788 | 8,395 | ||||||
Koninklijke KPN NV (Netherlands) | 6,408 | 19,265 | ||||||
Nippon Telegraph & Telephone Corp. (Japan) | 1,300 | 55,579 | ||||||
Orange SA (France) | 3,807 | 59,106 | ||||||
PCCW Ltd. (Hong Kong) | 7,400 | 4,365 | ||||||
Proximus SADP (Belgium) | 275 | 8,618 | ||||||
SFR Group SA (France)* | 209 | 6,564 |
See Notes to Financial Statements.
20 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Telecommunication Services (cont’d.) |
| |||||||
Singapore Telecommunications Ltd. (Singapore) | 15,600 | $ | 43,716 | |||||
Spark New Zealand Ltd. (New Zealand) | 3,547 | 8,695 | ||||||
Swisscom AG (Switzerland) | 49 | 22,587 | ||||||
TDC A/S (Denmark) | 1,587 | 8,174 | ||||||
Telecom Italia SpA (Italy)* | 21,847 | 19,666 | ||||||
Telecom Italia SpA-RSP (Italy)* | 10,793 | 7,880 | ||||||
Telefonica Deutschland Holding AG (Germany) | 1,276 | 6,326 | ||||||
Telefonica SA (Spain) | 8,704 | 97,427 | ||||||
Telenor ASA (Norway) | 1,486 | 24,720 | ||||||
Telia Co. AB (Sweden) | 4,946 | 20,735 | ||||||
Telstra Corp. Ltd. (Australia) | 8,027 | 28,563 | ||||||
TPG Telecom Ltd. (Australia) | 611 | 3,253 | ||||||
Verizon Communications, Inc. | 77,050 | 3,756,188 | ||||||
Vocus Group Ltd. (Australia) | 927 | 3,059 | ||||||
|
| |||||||
8,560,207 | ||||||||
Electric Utilities 1.0% |
| |||||||
AusNet Services (Australia) | 4,251 | 5,472 | ||||||
Cheung Kong Infrastructure Holdings Ltd. (Hong Kong) | 1,300 | 10,209 | ||||||
Chubu Electric Power Co., Inc. (Japan) | 1,200 | 16,120 | ||||||
Chugoku Electric Power Co., Inc. (The) (Japan) | 600 | 6,657 | ||||||
CLP Holdings Ltd. (Hong Kong) | 3,000 | 31,405 | ||||||
Contact Energy Ltd. (New Zealand) | 1,594 | 5,652 | ||||||
DONG Energy A/S (Denmark), RegS, 144A | 282 | 10,859 | ||||||
EDP—Energias de Portugal SA (Portugal) | 4,553 | 15,395 | ||||||
El Paso Electric Co. | 1,400 | 70,700 | ||||||
Electricite de France SA (France) | 684 | 5,747 | ||||||
Endesa SA (Spain) | 596 | 13,988 | ||||||
Enel SpA (Italy) | 14,559 | 68,507 | ||||||
Exelon Corp. | 50,000 | 1,799,000 | ||||||
FirstEnergy Corp. | 49,800 | 1,584,636 | ||||||
Fortum OYJ (Finland) | 833 | 13,185 | ||||||
HK Electric Investments & HK Electric Investments Ltd. (Hong Kong), 144A | 6,000 | 5,530 | ||||||
Hokuriku Electric Power Co. (Japan) | 300 | 2,918 | ||||||
Iberdrola SA (Spain) | 10,566 | 75,493 | ||||||
Kansai Electric Power Co., Inc. (The) (Japan) | 1,400 | 17,227 | ||||||
Kyushu Electric Power Co., Inc. (Japan) | 800 | 8,549 | ||||||
Mercury NZ Ltd. (New Zealand) | 1,083 | 2,392 | ||||||
Portland General Electric Co. | 1,000 | 44,420 | ||||||
Power Assets Holdings Ltd. (Hong Kong) | 2,500 | 21,565 | ||||||
PPL Corp. | 39,700 | 1,484,383 | ||||||
Red Electrica Corp. SA (Spain) | 812 | 15,570 |
See Notes to Financial Statements.
Prudential Balanced Fund | 21 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electric Utilities (cont’d.) |
| |||||||
SSE PLC (United Kingdom) | 1,947 | $ | 35,983 | |||||
Terna Rete Elettrica Nazionale SpA (Italy) | 2,745 | 13,608 | ||||||
Tohoku Electric Power Co., Inc. (Japan) | 900 | 12,225 | ||||||
Tokyo Electric Power Co. Holdings, Inc. (Japan)* | 2,800 | 10,975 | ||||||
|
| |||||||
5,408,370 | ||||||||
Electrical Equipment 0.5% |
| |||||||
ABB Ltd. (Switzerland)* | 3,592 | 84,073 | ||||||
Atkore International Group, Inc.* | 3,700 | 97,236 | ||||||
AZZ, Inc. | 800 | 47,600 | ||||||
Babcock & Wilcox Enterprises, Inc.* | 14,150 | 132,161 | ||||||
Emerson Electric Co. | 31,600 | 1,891,576 | ||||||
EnerSys | 2,500 | 197,350 | ||||||
Fuji Electric Co. Ltd. (Japan) | 1,000 | 5,955 | ||||||
Legrand SA (France) | 501 | 30,159 | ||||||
Mabuchi Motor Co. Ltd. (Japan) | 100 | 5,645 | ||||||
Mitsubishi Electric Corp. (Japan) | 3,500 | 50,429 | ||||||
Nidec Corp. (Japan) | 450 | 42,977 | ||||||
OSRAM Licht AG (Germany) | 174 | 10,912 | ||||||
Prysmian SpA (Italy) | 383 | 10,125 | ||||||
Schneider Electric SE (France) | 1,073 | 78,832 | ||||||
Vestas Wind Systems A/S (Denmark) | 423 | 34,407 | ||||||
|
| |||||||
2,719,437 | ||||||||
Electronic Equipment, Instruments & Components 0.2% |
| |||||||
Alps Electric Co. Ltd. (Japan) | 400 | 11,342 | ||||||
Anixter International, Inc.* | 1,800 | 142,740 | ||||||
ePlus, Inc.* | 400 | 54,020 | ||||||
Hamamatsu Photonics KK (Japan) | 300 | 8,659 | ||||||
Hexagon AB (Sweden) (Class B Stock) | 517 | 20,750 | ||||||
Hirose Electric Co. Ltd. (Japan) | 52 | 7,204 | ||||||
Hitachi High-Technologies Corp. (Japan) | 150 | 6,127 | ||||||
Hitachi Ltd. (Japan) | 8,800 | 47,782 | ||||||
Ingenico Group SA (France) | 117 | 11,035 | ||||||
Insight Enterprises, Inc.* | 1,100 | 45,199 | ||||||
Itron, Inc.* | 2,700 | 163,890 | ||||||
Keyence Corp. (Japan) | 180 | 72,211 | ||||||
Kyocera Corp. (Japan) | 600 | 33,520 | ||||||
Murata Manufacturing Co. Ltd. (Japan) | 350 | 49,863 | ||||||
Nippon Electric Glass Co. Ltd. (Japan) | 900 | 5,452 | ||||||
Omron Corp. (Japan) | 400 | 17,576 | ||||||
PC Connection, Inc. | 1,900 | 56,601 |
See Notes to Financial Statements.
22 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electronic Equipment, Instruments & Components (cont’d.) |
| |||||||
Sanmina Corp.* | 4,300 | $ | 174,580 | |||||
ScanSource, Inc.* | 500 | 19,625 | ||||||
Shimadzu Corp. (Japan) | 500 | 7,957 | ||||||
SYNNEX Corp. | 1,700 | 190,298 | ||||||
TDK Corp. (Japan) | 250 | 15,874 | ||||||
Tech Data Corp.* | 1,500 | 140,850 | ||||||
Yaskawa Electric Corp. (Japan) | 500 | 10,069 | ||||||
Yokogawa Electric Corp. (Japan) | 400 | 6,308 | ||||||
|
| |||||||
1,319,532 | ||||||||
Energy Equipment & Services 0.2% | ||||||||
Diamond Offshore Drilling, Inc.* | 7,900 | 132,009 | ||||||
Ensco PLC (Class A Stock) | 85,600 | 766,120 | ||||||
Matrix Service Co.* | 2,400 | 39,600 | ||||||
McDermott International, Inc.* | 24,000 | 162,000 | ||||||
Petrofac Ltd. (United Kingdom) | 519 | 5,995 | ||||||
Saipem SpA (Italy)* | 11,091 | 5,038 | ||||||
Tenaris SA (Luxembourg) | 966 | 16,704 | ||||||
Unit Corp.* | 5,200 | 125,632 | ||||||
|
| |||||||
1,253,098 | ||||||||
Equity Real Estate Investment Trusts (REITs) 1.7% | ||||||||
American Assets Trust, Inc. | 3,500 | 146,440 | ||||||
American Tower Corp. | 15,800 | 1,920,332 | ||||||
Ascendas Real Estate Investment Trust (Singapore) | 4,700 | 8,464 | ||||||
Ashford Hospitality Prime, Inc. | 6,100 | 64,721 | ||||||
Ashford Hospitality Trust, Inc. | 12,800 | 81,536 | ||||||
British Land Co. PLC (The) (United Kingdom) | 1,781 | 13,614 | ||||||
Brixmor Property Group, Inc. | 10,200 | 218,892 | ||||||
CapitaLand Commercial Trust (Singapore) | 4,000 | 4,417 | ||||||
CapitaLand Mall Trust (Singapore) | 4,700 | 6,617 | ||||||
Chatham Lodging Trust | 5,000 | 98,750 | ||||||
Chesapeake Lodging Trust | 6,200 | 148,552 | ||||||
CoreCivic, Inc. | 26,300 | 826,346 | ||||||
Crown Castle International Corp. | 18,000 | 1,700,100 | ||||||
Daiwa House REIT Investment Corp. (Japan) | 3 | 7,813 | ||||||
Dexus Property Group (Australia) | 1,946 | 14,524 | ||||||
DiamondRock Hospitality Co. | 6,200 | 69,130 | ||||||
First Potomac Realty Trust | 1,500 | 15,420 | ||||||
Fonciere Des Regions (France) | 71 | 5,919 | ||||||
Forest City Realty Trust, Inc. (Class A Stock) | 14,500 | 315,810 | ||||||
Franklin Street Properties Corp. | 11,400 | 138,396 |
See Notes to Financial Statements.
Prudential Balanced Fund | 23 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont’d.) |
| |||||||
Gecina SA (France) | 85 | $ | 11,525 | |||||
GEO Group, Inc. (The) | 5,200 | 241,124 | ||||||
Goodman Group (Australia) | 3,336 | 19,724 | ||||||
GPT Group (The) (Australia) | 3,611 | 14,212 | ||||||
Hammerson PLC (United Kingdom) | 1,610 | 11,512 | ||||||
ICADE (France) | 67 | 4,901 | ||||||
InfraREIT, Inc. | 4,600 | 82,800 | ||||||
Intu Properties PLC (United Kingdom) | 1,709 | 5,979 | ||||||
Japan Prime Realty Investment Corp. (Japan) | 2 | 7,759 | ||||||
Japan Real Estate Investment Corp. (Japan) | 2 | 10,617 | ||||||
Japan Retail Fund Investment Corp. (Japan) | 5 | 9,814 | ||||||
Kite Realty Group Trust | 3,400 | 73,100 | ||||||
Klepierre (France) | 443 | 17,211 | ||||||
Land Securities Group PLC (United Kingdom) | 1,483 | 19,696 | ||||||
Lexington Realty Trust | 2,000 | 19,960 | ||||||
Link REIT (Hong Kong) | 4,500 | 31,539 | ||||||
Mirvac Group (Australia) | 6,944 | 11,617 | ||||||
NexPoint Residential Trust, Inc. | 2,200 | 53,152 | ||||||
Nippon Building Fund, Inc. (Japan) | 3 | 16,446 | ||||||
Nippon Prologis REIT, Inc. (Japan) | 3 | 6,503 | ||||||
Nomura Real Estate Master Fund, Inc. (Japan) | 8 | 12,442 | ||||||
Outfront Media, Inc. | 5,800 | 153,990 | ||||||
Prologis, Inc. | 21,900 | 1,136,172 | ||||||
RLJ Lodging Trust | 5,000 | 117,550 | ||||||
Ryman Hospitality Properties, Inc. | 2,100 | 129,843 | ||||||
Scentre Group (Australia) | 9,988 | 32,744 | ||||||
Segro PLC (United Kingdom) | 1,912 | 10,932 | ||||||
Spirit Realty Capital, Inc. | 22,000 | 222,860 | ||||||
Stockland (Australia) | 4,619 | 16,379 | ||||||
Summit Hotel Properties, Inc. | 10,900 | 174,182 | ||||||
Suntec Real Estate Investment Trust (Singapore) | 5,100 | 6,528 | ||||||
Tier REIT, Inc. | 600 | 10,416 | ||||||
Unibail-Rodamco SE (France) | 193 | 45,002 | ||||||
United Urban Investment Corp. (Japan) | 6 | 9,224 | ||||||
VEREIT, Inc. | 46,100 | 391,389 | ||||||
Vicinity Centres (Australia) | 6,128 | 13,255 | ||||||
Westfield Corp. (Australia) | 3,830 | 25,981 | ||||||
Xenia Hotels & Resorts, Inc. | 9,400 | 160,458 | ||||||
|
| |||||||
9,144,331 | ||||||||
Food & Staples Retailing 1.4% | ||||||||
Aeon Co. Ltd. (Japan) | 1,300 | 19,035 | ||||||
Carrefour SA (France) | 1,082 | 25,493 |
See Notes to Financial Statements.
24 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Food & Staples Retailing (cont’d.) |
| |||||||
Casino Guichard Perrachon SA (France) | 107 | $ | 5,979 | |||||
Colruyt SA (Belgium) | 134 | 6,581 | ||||||
CVS Health Corp. | 2,100 | 164,850 | ||||||
Distribuidora Internacional de Alimentacion SA (Spain) | 1,105 | 6,387 | ||||||
FamilyMart UNY Holdings Co. Ltd. (Japan) | 200 | 11,933 | ||||||
ICA Gruppen AB (Sweden) | 166 | 5,662 | ||||||
Ingles Markets, Inc. (Class A Stock) | 1,400 | 60,410 | ||||||
J Sainsbury PLC (United Kingdom) | 3,021 | 10,006 | ||||||
Jeronimo Martins SGPS SA (Portugal) | 494 | 8,827 | ||||||
Koninklijke Ahold Delhaize NV (Netherlands) | 2,454 | 52,442 | ||||||
Kroger Co. (The) | 44,700 | 1,318,203 | ||||||
Lawson, Inc. (Japan) | 100 | 6,800 | ||||||
METRO AG (Germany) | 337 | 10,768 | ||||||
Seven & i Holdings Co. Ltd. (Japan) | 1,450 | 56,961 | ||||||
SpartanNash Co. | 2,300 | 80,477 | ||||||
Sundrug Co. Ltd. (Japan) | 200 | 6,729 | ||||||
SUPERVALU, Inc.* | 5,300 | 20,458 | ||||||
Tesco PLC (United Kingdom)* | 16,069 | 37,398 | ||||||
Tsuruha Holdings, Inc. (Japan) | 100 | 9,275 | ||||||
Village Super Market, Inc. (Class A Stock) | 900 | 23,850 | ||||||
Wal-Mart Stores, Inc. | 39,700 | 2,861,576 | ||||||
Walgreens Boots Alliance, Inc. | 27,600 | 2,292,180 | ||||||
Wesfarmers Ltd. (Australia) | 2,179 | 75,019 | ||||||
WM Morrison Supermarkets PLC (United Kingdom) | 4,161 | 12,522 | ||||||
Woolworths Ltd. (Australia) | 2,451 | 49,623 | ||||||
|
| |||||||
7,239,444 | ||||||||
Food Products 1.2% | ||||||||
AdvancePierre Foods Holdings, Inc. | 1,500 | 46,755 | ||||||
Ajinomoto Co., Inc. (Japan) | 1,100 | 21,765 | ||||||
Archer-Daniels-Midland Co. | 8,200 | 377,528 | ||||||
Aryzta AG (Switzerland)* | 173 | 5,555 | ||||||
Associated British Foods PLC (United Kingdom) | 673 | 21,984 | ||||||
Barry Callebaut AG (Switzerland)* | 4 | 5,230 | ||||||
Bunge Ltd. | 2,100 | 166,446 | ||||||
Calbee, Inc. (Japan) | 200 | 6,831 | ||||||
Chocoladefabriken Lindt & Spruengli AG (Switzerland) | 2 | 11,333 | ||||||
ConAgra Brands, Inc. | 39,800 | 1,605,532 | ||||||
Danone SA (France) | 1,126 | 76,596 | ||||||
Fresh Del Monte Produce, Inc. | 2,700 | 159,921 | ||||||
General Mills, Inc. | 23,100 | 1,363,131 | ||||||
Golden Agri-Resources Ltd. (Singapore) | 16,600 | 4,571 |
See Notes to Financial Statements.
Prudential Balanced Fund | 25 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Food Products (cont’d.) | ||||||||
Kerry Group PLC (Ireland) (Class A Stock) | 311 | $ | 24,452 | |||||
Kikkoman Corp. (Japan) | 300 | 8,966 | ||||||
Lancaster Colony Corp. | 270 | 34,787 | ||||||
Marine Harvest ASA (Norway)* | 735 | 11,212 | ||||||
MEIJI Holdings Co. Ltd. (Japan) | 200 | 16,689 | ||||||
Nestle SA (Switzerland) | 5,996 | 460,204 | ||||||
NH Foods Ltd. (Japan) | 300 | 8,059 | ||||||
Nisshin Seifun Group, Inc. (Japan) | 405 | 6,055 | ||||||
Nissin Foods Holdings Co. Ltd. (Japan) | 100 | 5,555 | ||||||
Omega Protein Corp. | 400 | 8,020 | ||||||
Orkla ASA (Norway) | 1,529 | 13,697 | ||||||
Sanderson Farms, Inc.(a) | 1,600 | 166,144 | ||||||
Tate & Lyle PLC (United Kingdom) | 890 | 8,529 | ||||||
Toyo Suisan Kaisha Ltd. (Japan) | 200 | 7,462 | ||||||
Tyson Foods, Inc. (Class A Stock) | 26,100 | 1,610,631 | ||||||
WH Group Ltd. (Hong Kong), RegS, 144A | 15,500 | 13,366 | ||||||
Wilmar International Ltd. (Singapore) | 3,600 | 9,085 | ||||||
Yakult Honsha Co. Ltd. (Japan) | 150 | 8,348 | ||||||
Yamazaki Baking Co. Ltd. (Japan) | 300 | 6,177 | ||||||
|
| |||||||
6,300,616 | ||||||||
Gas Utilities 0.3% | ||||||||
APA Group (Australia) | 2,239 | 15,325 | ||||||
Atmos Energy Corp. | 3,600 | 284,364 | ||||||
Chesapeake Utilities Corp. | 700 | 48,440 | ||||||
Gas Natural SDG SA (Spain) | 657 | 14,371 | ||||||
Hong Kong & China Gas Co. Ltd. (Hong Kong) | 14,990 | 29,991 | ||||||
ONE Gas, Inc. | 2,800 | 189,280 | ||||||
Osaka Gas Co. Ltd. (Japan) | 3,400 | 12,964 | ||||||
Southwest Gas Holdings, Inc. | 2,100 | 174,111 | ||||||
Toho Gas Co. Ltd. (Japan) | 800 | 5,674 | ||||||
Tokyo Gas Co. Ltd. (Japan) | 4,000 | 18,268 | ||||||
UGI Corp. | 13,100 | 647,140 | ||||||
|
| |||||||
1,439,928 | ||||||||
Health Care Equipment & Supplies 1.8% | ||||||||
Abbott Laboratories | 53,300 | 2,367,053 | ||||||
AngioDynamics, Inc.* | 4,500 | 78,075 | ||||||
Atrion Corp. | 60 | 28,092 | ||||||
Baxter International, Inc. | 35,300 | 1,830,658 | ||||||
Becton Dickinson & Co. | 10,600 | 1,944,464 | ||||||
C.R. Bard, Inc. | 300 | 74,562 |
See Notes to Financial Statements.
26 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Equipment & Supplies (cont’d.) | ||||||||
Cantel Medical Corp. | 2,200 | $ | 176,220 | |||||
Cardiovascular Systems, Inc.* | 2,700 | 76,342 | ||||||
Cochlear Ltd. (Australia) | 107 | 11,053 | ||||||
Coloplast A/S (Denmark) (Class B Stock) | 240 | 18,743 | ||||||
CYBERDYNE, Inc. (Japan)* | 200 | 2,874 | ||||||
Danaher Corp. | 23,700 | 2,027,061 | ||||||
Essilor International SA (France) | 396 | 48,079 | ||||||
Exactech, Inc.* | 600 | 15,120 | ||||||
Getinge AB (Sweden) (Class B Stock) | 367 | 6,435 | ||||||
Halyard Health, Inc.* | 1,900 | 72,371 | ||||||
Hoya Corp. (Japan) | 800 | 38,649 | ||||||
IDEXX Laboratories, Inc.* | 1,100 | 170,071 | ||||||
LeMaitre Vascular, Inc. | 2,200 | 54,186 | ||||||
Masimo Corp.* | 2,700 | 251,802 | ||||||
Medtronic PLC | 2,100 | 169,176 | ||||||
NxStage Medical, Inc.* | 500 | 13,415 | ||||||
Olympus Corp. (Japan) | 580 | 22,386 | ||||||
OraSure Technologies, Inc.* | 4,500 | 58,185 | ||||||
Orthofix International NV* | 2,800 | 106,820 | ||||||
Smith & Nephew PLC (United Kingdom) | 1,740 | 26,493 | ||||||
Sonova Holding AG (Switzerland) | 107 | 14,843 | ||||||
SurModics, Inc.* | 1,100 | 26,455 | ||||||
Sysmex Corp. (Japan) | 300 | 18,252 | ||||||
Terumo Corp. (Japan) | 700 | 24,334 | ||||||
William Demant Holding A/S (Denmark)* | 205 | 4,284 | ||||||
|
| |||||||
9,776,553 | ||||||||
Health Care Providers & Services 1.8% | ||||||||
Aetna, Inc. | 4,800 | 612,240 | ||||||
Alfresa Holdings Corp. (Japan) | 400 | 6,954 | ||||||
Anthem, Inc. | 5,800 | 959,204 | ||||||
Express Scripts Holding Co.* | 26,800 | 1,766,388 | ||||||
Fresenius Medical Care AG & Co. KGaA (Germany) | 411 | 34,656 | ||||||
Fresenius SE & Co. KGaA (Germany) | 783 | 62,919 | ||||||
HCA Holdings, Inc.* | 10,900 | 969,991 | ||||||
Healthscope Ltd. (Australia) | 3,777 | 6,548 | ||||||
Humana, Inc. | 4,000 | 824,560 | ||||||
Magellan Health, Inc.* | 2,100 | 145,005 | ||||||
Mediclinic International PLC (South Africa) | 668 | 5,966 | ||||||
Medipal Holdings Corp. (Japan) | 300 | 4,714 | ||||||
Miraca Holdings, Inc. (Japan) | 100 | 4,592 | ||||||
Molina Healthcare, Inc.* | 2,300 | 104,880 |
See Notes to Financial Statements.
Prudential Balanced Fund | 27 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Providers & Services (cont’d.) | ||||||||
National HealthCare Corp. | 900 | $ | 64,170 | |||||
Providence Service Corp. (The)* | 2,700 | 119,988 | ||||||
Ramsay Health Care Ltd. (Australia) | 265 | 14,146 | ||||||
Ryman Healthcare Ltd. (New Zealand) | 734 | 4,325 | ||||||
Select Medical Holdings Corp.* | 9,100 | 121,485 | ||||||
Sonic Healthcare Ltd. (Australia) | 739 | 12,485 | ||||||
Suzuken Co. Ltd. (Japan) | 165 | 5,422 | ||||||
UnitedHealth Group, Inc. | 20,900 | 3,427,809 | ||||||
WellCare Health Plans, Inc.* | 2,200 | 308,462 | ||||||
|
| |||||||
9,586,909 | ||||||||
Health Care Technology 0.1% | ||||||||
Cotiviti Holdings, Inc.*(a) | 3,700 | 154,031 | ||||||
HMS Holdings Corp.* | 7,200 | 146,376 | ||||||
M3, Inc. (Japan) | 400 | 9,969 | ||||||
|
| |||||||
310,376 | ||||||||
Hotels, Restaurants & Leisure 1.1% | ||||||||
Accor SA (France) | 313 | 13,019 | ||||||
Aramark | 12,300 | 453,501 | ||||||
Aristocrat Leisure Ltd. (Australia) | 1,016 | 13,946 | ||||||
Biglari Holdings, Inc.* | 110 | 47,518 | ||||||
Bloomin’ Brands, Inc. | 8,300 | 163,759 | ||||||
Bojangles’, Inc.* | 1,600 | 32,800 | ||||||
Carnival PLC | 357 | 20,462 | ||||||
Compass Group PLC (United Kingdom) | 3,141 | 59,303 | ||||||
Crown Resorts Ltd. (Australia) | 735 | 6,631 | ||||||
Domino’s Pizza Enterprises Ltd. (Australia) | 109 | 4,839 | ||||||
Extended Stay America, Inc. | 56,000 | 892,640 | ||||||
Flight Centre Travel Group Ltd. (Australia) | 85 | 1,875 | ||||||
Galaxy Entertainment Group Ltd. (Hong Kong) | 4,400 | 24,100 | ||||||
Genting Singapore PLC (Singapore) | 12,000 | 8,751 | ||||||
InterContinental Hotels Group PLC (United Kingdom) | 361 | 17,681 | ||||||
International Game Technology PLC | 16,400 | 388,680 | ||||||
Intrawest Resorts Holdings Inc* | 1,600 | 40,016 | ||||||
Marcus Corp. (The) | 1,000 | 32,100 | ||||||
McDonald’s Corp. | 21,868 | 2,834,311 | ||||||
McDonald’s Holdings Co. Japan Ltd. (Japan) | 100 | 2,920 | ||||||
Melco Crown Entertainment Ltd. (Hong Kong), ADR | 338 | 6,267 | ||||||
Merlin Entertainments PLC (United Kingdom), 144A | 1,367 | 8,217 | ||||||
MGM China Holdings Ltd. (Macau) | 1,600 | 3,336 | ||||||
Monarch Casino & Resort, Inc.* | 500 | 14,770 |
See Notes to Financial Statements.
28 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure (cont’d.) | ||||||||
Oriental Land Co. Ltd. (Japan) | 400 | $ | 22,994 | |||||
Paddy Power Betfair PLC (Ireland) | 163 | 17,528 | ||||||
Papa John’s International, Inc. | 800 | 64,032 | ||||||
Ruth’s Hospitality Group, Inc. | 7,000 | 140,350 | ||||||
Sands China Ltd. (Hong Kong) | 4,800 | 22,251 | ||||||
Shangri-La Asia Ltd. (Hong Kong) | 2,000 | 2,912 | ||||||
SJM Holdings Ltd. (Hong Kong) | 3,000 | 2,442 | ||||||
Sodexo SA (France) | 172 | 20,209 | ||||||
Tabcorp Holdings Ltd. (Australia) | 1,794 | 6,510 | ||||||
Tatts Group Ltd. (Australia) | 2,841 | 9,613 | ||||||
Texas Roadhouse, Inc. | 4,200 | 187,026 | ||||||
TUI AG (Germany) | 965 | 13,364 | ||||||
Whitbread PLC (United Kingdom) | 368 | 18,260 | ||||||
William Hill PLC (United Kingdom) | 1,603 | 5,846 | ||||||
Wynn Macau Ltd. (Macau) | 2,900 | 5,907 | ||||||
|
| |||||||
5,630,686 | ||||||||
Household Durables 0.7% | ||||||||
Barratt Developments PLC (United Kingdom) | 1,880 | 12,878 | ||||||
Berkeley Group Holdings PLC (United Kingdom) | 279 | 11,219 | ||||||
Casio Computer Co. Ltd. (Japan) | 400 | 5,577 | ||||||
Century Communities, Inc.* | 1,600 | 40,640 | ||||||
D.R. Horton, Inc. | 49,000 | 1,632,190 | ||||||
Electrolux AB (Sweden) Series B | 444 | 12,326 | ||||||
Flexsteel Industries, Inc. | 900 | 45,360 | ||||||
Husqvarna AB (Sweden) (Class B Stock) | 847 | 7,426 | ||||||
Iida Group Holdings Co. Ltd. (Japan) | 300 | 4,617 | ||||||
La-Z-Boy, Inc. (Class Z Stock) | 5,200 | 140,400 | ||||||
Lennar Corp. (Class A Stock) | 2,600 | 133,094 | ||||||
NACCO Industries, Inc. (Class A Stock) | 400 | 27,920 | ||||||
Nikon Corp. (Japan) | 700 | 10,172 | ||||||
NVR, Inc.* | 640 | 1,348,403 | ||||||
Panasonic Corp. (Japan) | 4,200 | 47,532 | ||||||
Persimmon PLC (United Kingdom) | 597 | 15,663 | ||||||
Rinnai Corp. (Japan) | 70 | 5,576 | ||||||
SEB SA (France) | 43 | 6,006 | ||||||
Sekisui Chemical Co. Ltd. (Japan) | 800 | 13,487 | ||||||
Sekisui House Ltd. (Japan) | 1,200 | 19,787 | ||||||
Sharp Corp. (Japan)* | 2,800 | 11,779 | ||||||
Sony Corp. (Japan) | 2,400 | 80,996 | ||||||
Taylor Morrison Home Corp. (Class A Stock)* | 6,100 | 130,052 | ||||||
Taylor Wimpey PLC (United Kingdom) | 6,355 | 15,371 | ||||||
Techtronic Industries Co. Ltd. (Hong Kong) | 2,500 | 10,121 | ||||||
|
| |||||||
3,788,592 |
See Notes to Financial Statements.
Prudential Balanced Fund | 29 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Household Products 1.0% | ||||||||
Central Garden & Pet Co. (Class A Stock)* | 1,200 | $ | 41,664 | |||||
Clorox Co. (The) | 5,200 | 701,116 | ||||||
Henkel AG & Co. KGaA (Germany) | 203 | 22,575 | ||||||
Kimberly-Clark Corp. | 15,100 | 1,987,613 | ||||||
Lion Corp. (Japan) | 300 | 5,407 | ||||||
Procter & Gamble Co. (The) | 24,375 | 2,190,094 | ||||||
Reckitt Benckiser Group PLC (United Kingdom) | 1,207 | 110,189 | ||||||
Svenska Cellulosa AB SCA (Sweden) (Class B Stock) | 1,171 | 37,737 | ||||||
Unicharm Corp. (Japan) | 800 | 19,226 | ||||||
|
| |||||||
5,115,621 | ||||||||
Independent Power & Renewable Electricity Producers 0.3% | ||||||||
AES Corp. | 80,900 | 904,462 | ||||||
Atlantica Yield PLC (Spain) | 7,200 | 150,912 | ||||||
Electric Power Development Co. Ltd. (Japan) | 300 | 7,050 | ||||||
Meridian Energy Ltd. (New Zealand) | 2,404 | 4,717 | ||||||
NRG Energy, Inc. | 42,700 | 798,490 | ||||||
|
| |||||||
1,865,631 | ||||||||
Industrial Conglomerates 0.9% | ||||||||
3M Co. | 7,900 | 1,511,507 | ||||||
Carlisle Cos., Inc. | 5,300 | 563,973 | ||||||
CK Hutchison Holdings Ltd. (Hong Kong) | 5,357 | 65,955 | ||||||
DCC PLC (United Kingdom) | 177 | 15,582 | ||||||
General Electric Co. | 25,670 | 764,966 | ||||||
Honeywell International, Inc. | 13,700 | 1,710,719 | ||||||
Jardine Matheson Holdings Ltd. (Hong Kong) | 500 | 32,125 | ||||||
Jardine Strategic Holdings Ltd. (Hong Kong) | 400 | 16,800 | ||||||
Keihan Holdings Co. Ltd. (Japan) | 1,000 | 6,126 | ||||||
Keppel Corp. Ltd. (Singapore) | 2,700 | 13,393 | ||||||
Koninklijke Philips NV (Netherlands) | 1,810 | 58,145 | ||||||
NWS Holdings Ltd. (Hong Kong) | 2,900 | 5,295 | ||||||
Seibu Holdings, Inc. (Japan) | 300 | 4,962 | ||||||
Sembcorp Industries Ltd. (Singapore) | 2,300 | 5,227 | ||||||
Siemens AG (Germany) | 1,469 | 201,213 | ||||||
Smiths Group PLC (United Kingdom) | 732 | 14,873 | ||||||
Toshiba Corp. (Japan)* | 7,700 | 16,597 | ||||||
|
| |||||||
5,007,458 | ||||||||
Insurance 1.3% | ||||||||
Admiral Group PLC (United Kingdom) | 440 | 10,963 | ||||||
Aegon NV (Netherlands) | 3,452 | 17,584 |
See Notes to Financial Statements.
30 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insurance (cont’d.) | ||||||||
Aflac, Inc. | 13,200 | $ | 955,944 | |||||
Ageas (Belgium) | 374 | 14,605 | ||||||
AIA Group Ltd. (Hong Kong) | 23,100 | 145,806 | ||||||
Allianz SE (Germany) | 878 | 162,822 | ||||||
Allstate Corp. (The) | 22,900 | 1,866,121 | ||||||
American Equity Investment Life Holding Co. | 8,600 | 203,218 | ||||||
American Financial Group, Inc. | 1,300 | 124,046 | ||||||
Assicurazioni Generali SpA (Italy) | 2,195 | 34,826 | ||||||
Aviva PLC (United Kingdom) | 7,892 | 52,664 | ||||||
AXA SA (France) | 3,700 | 95,593 | ||||||
Baldwin & Lyons, Inc. (Class B Stock) | 1,200 | 29,340 | ||||||
Baloise Holding AG (Switzerland) | 105 | 14,428 | ||||||
CNP Assurances (France) | 354 | 7,199 | ||||||
Dai-ichi Life Holdings, Inc. (Japan) | 2,027 | 36,282 | ||||||
Direct Line Insurance Group PLC (United Kingdom) | 2,579 | 11,221 | ||||||
FBL Financial Group, Inc. (Class A Stock) | 700 | 45,815 | ||||||
Genworth Financial, Inc. (Class A Stock)* | 24,000 | 98,880 | ||||||
Gjensidige Forsikring ASA (Norway) | 423 | 6,444 | ||||||
Hannover Rueck SE (Germany) | 113 | 13,021 | ||||||
Hanover Insurance Group, Inc. (The) | 1,000 | 90,060 | ||||||
Insurance Australia Group Ltd. (Australia) | 4,536 | 20,959 | ||||||
Japan Post Holdings Co. Ltd. (Japan) | 900 | 11,318 | ||||||
Kinsale Capital Group, Inc. | 1,800 | 57,672 | ||||||
Legal & General Group PLC (United Kingdom) | 11,160 | 34,556 | ||||||
Mapfre SA (Spain) | 2,259 | 7,737 | ||||||
Medibank Pvt Ltd. (Australia) | 5,681 | 12,236 | ||||||
MetLife, Inc. | 2,600 | 137,332 | ||||||
MS&AD Insurance Group Holdings, Inc. (Japan) | 990 | 31,621 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG (Germany) | 308 | 60,292 | ||||||
National General Holdings Corp. | 4,000 | 95,040 | ||||||
National Western Life Group, Inc. (Class A Stock) | 80 | 24,333 | ||||||
NN Group NV (Netherlands) | 594 | 19,292 | ||||||
Old Mutual PLC (United Kingdom) | 9,643 | 24,268 | ||||||
Poste Italiane SpA (Italy), RegS, 144A | 927 | 6,175 | ||||||
Progressive Corp. (The) | 14,200 | 556,356 | ||||||
Prudential PLC (United Kingdom) | 4,969 | 104,962 | ||||||
QBE Insurance Group Ltd. (Australia) | 2,677 | 26,355 | ||||||
RSA Insurance Group PLC (United Kingdom) | 1,969 | 14,460 | ||||||
Sampo OYJ (Finland) (Class A Stock) | 861 | 40,855 | ||||||
SCOR SE (France) | 317 | 11,980 | ||||||
Selective Insurance Group, Inc. | 200 | 9,430 | ||||||
Sompo Holdings, Inc. (Japan) | 675 | 24,798 | ||||||
Sony Financial Holdings, Inc. (Japan) | 300 | 4,818 |
See Notes to Financial Statements.
Prudential Balanced Fund | 31 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insurance (cont’d.) | ||||||||
St. James’s Place PLC (United Kingdom) | 964 | $ | 12,832 | |||||
Standard Life PLC (United Kingdom) | 3,958 | 17,599 | ||||||
Suncorp Group Ltd. (Australia) | 2,483 | 25,057 | ||||||
Swiss Life Holding AG (Switzerland)* | 60 | 19,348 | ||||||
Swiss Re AG (Switzerland) | 626 | 56,225 | ||||||
T&D Holdings, Inc. (Japan) | 1,100 | 15,944 | ||||||
Tokio Marine Holdings, Inc. (Japan) | 1,300 | 54,944 | ||||||
Tryg A/S (Denmark) | 267 | 4,841 | ||||||
UnipolSai Assicurazioni SpA (Italy) | 2,596 | 5,734 | ||||||
Unum Group | 31,900 | 1,495,791 | ||||||
Zurich Insurance Group AG (Switzerland) | 287 | 76,589 | ||||||
|
| |||||||
7,158,631 | ||||||||
Internet & Direct Marketing Retail 1.0% | ||||||||
1-800-Flowers.com, Inc. (Class A Stock)* | 2,200 | 22,440 | ||||||
Amazon.com, Inc.* | 2,500 | 2,216,350 | ||||||
FTD Cos., Inc.* | 4,300 | 86,602 | ||||||
HSN, Inc. | 900 | 33,390 | ||||||
Liberty Interactive Corp. QVC Group (Class A Stock)* | 14,900 | 298,298 | ||||||
Liberty TripAdvisor Holdings, Inc. (Class A Stock)* | 3,000 | 42,300 | ||||||
Netflix, Inc.* | 16,200 | 2,394,522 | ||||||
Nutrisystem, Inc. | 2,900 | 160,950 | ||||||
Rakuten, Inc. (Japan) | 1,910 | 19,191 | ||||||
Start Today Co. Ltd. (Japan) | 300 | 6,667 | ||||||
Zalando SE (Germany), RegS, 144A* | 157 | 6,346 | ||||||
|
| |||||||
5,287,056 | ||||||||
Internet Software & Services 2.8% | ||||||||
Alphabet, Inc. (Class A Stock)* | 4,000 | 3,391,200 | ||||||
Alphabet, Inc. (Class C Stock)* | 5,615 | 4,657,979 | ||||||
Auto Trader Group PLC (United Kingdom), RegS, 144A | 1,777 | 8,721 | ||||||
Bankrate, Inc.* | 12,200 | 117,730 | ||||||
Bazaarvoice, Inc.* | 3,700 | 15,910 | ||||||
Blucora, Inc.* | 3,200 | 55,360 | ||||||
DeNa Co. Ltd. (Japan) | 200 | 4,072 | ||||||
Endurance International Group Holdings, Inc.* | 16,500 | 129,525 | ||||||
Facebook, Inc. (Class A Stock)* | 42,600 | 6,051,330 | ||||||
Kakaku.com, Inc. (Japan) | 300 | 4,096 | ||||||
LogMeIn, Inc. | 1,000 | 97,500 | ||||||
Mixi, Inc. (Japan) | 100 | 4,837 | ||||||
NIC, Inc. | 5,600 | 113,120 | ||||||
RetailMeNot, Inc.* | 5,400 | 43,740 |
See Notes to Financial Statements.
32 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Internet Software & Services (cont’d.) | ||||||||
Shutterstock, Inc.* | 600 | $ | 24,810 | |||||
United Internet AG (Germany) | 254 | 11,235 | ||||||
Yahoo Japan Corp. (Japan) | 2,656 | 12,314 | ||||||
|
| |||||||
14,743,479 | ||||||||
IT Services 1.6% |
| |||||||
Accenture PLC (Class A Stock) | 19,800 | 2,373,624 | ||||||
Amadeus IT Group SA (Spain) (Class A Stock) | 859 | 43,525 | ||||||
Atos SE (France) | 165 | 20,391 | ||||||
Booz Allen Hamilton Holding Corp. | 31,800 | 1,125,402 | ||||||
CACI International, Inc. (Class A Stock)* | 1,400 | 164,220 | ||||||
Capgemini SA (France) | 317 | 29,261 | ||||||
Cardtronics PLC (Class A Stock)* | 1,800 | 84,150 | ||||||
Cognizant Technology Solutions Corp. (Class A Stock)* | 31,700 | 1,886,784 | ||||||
Computershare Ltd. (Australia) | 941 | 10,106 | ||||||
CSRA, Inc. | 21,600 | 632,664 | ||||||
DST Systems, Inc. | 3,000 | 367,500 | ||||||
First Data Corp. (Class A Stock)* | 29,800 | 461,900 | ||||||
Fiserv, Inc.* | 7,000 | 807,170 | ||||||
Fujitsu Ltd. (Japan) | 3,500 | 21,484 | ||||||
Hackett Group, Inc. (The) | 1,700 | 33,133 | ||||||
Leidos Holdings, Inc. | 5,400 | 276,156 | ||||||
MAXIMUS, Inc. | 2,200 | 136,840 | ||||||
Nomura Research Institute Ltd. (Japan) | 242 | 8,921 | ||||||
NTT Data Corp. (Japan) | 229 | 10,874 | ||||||
Obic Co. Ltd. (Japan) | 100 | 4,778 | ||||||
Otsuka Corp. (Japan) | 90 | 4,890 | ||||||
Science Applications International Corp. | 1,400 | 104,160 | ||||||
Sykes Enterprises, Inc.* | 2,900 | 85,260 | ||||||
Travelport Worldwide Ltd. | 6,900 | 81,213 | ||||||
Worldpay Group PLC (United Kingdom), RegS, 144A | 3,330 | 12,312 | ||||||
|
| |||||||
8,786,718 | ||||||||
Leisure Products 0.0% |
| |||||||
Bandai Namco Holdings, Inc. (Japan) | 400 | 11,990 | ||||||
Johnson Outdoors, Inc. (Class A Stock) | 500 | 18,250 | ||||||
Malibu Boats, Inc. (Class A Stock)* | 1,800 | 40,410 | ||||||
Sankyo Co. Ltd. (Japan) | 50 | 1,675 | ||||||
Sega Sammy Holdings, Inc. (Japan) | 400 | 5,380 | ||||||
Shimano, Inc. (Japan) | 135 | 19,773 | ||||||
Yamaha Corp. (Japan) | 300 | 8,300 | ||||||
|
| |||||||
105,778 |
See Notes to Financial Statements.
Prudential Balanced Fund | 33 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Life Sciences Tools & Services 0.2% |
| |||||||
Eurofins Scientific SE (Luxembourg) | 21 | $ | 9,132 | |||||
INC Research Holdings, Inc. (Class A Stock)* | 2,200 | 100,870 | ||||||
Lonza Group AG (Switzerland)* | 112 | 21,170 | ||||||
Medpace Holdings, Inc.* | 700 | 20,895 | ||||||
PRA Health Sciences, Inc.* | 3,100 | 202,213 | ||||||
Qiagen NV* | 399 | 11,583 | ||||||
Thermo Fisher Scientific, Inc. | 4,900 | 752,640 | ||||||
|
| |||||||
1,118,503 | ||||||||
Machinery 1.4% |
| |||||||
Alamo Group, Inc. | 200 | 15,238 | ||||||
Alfa Laval AB (Sweden) | 630 | 11,874 | ||||||
Alstom SA (France)* | 324 | 9,673 | ||||||
Amada Holdings Co. Ltd. (Japan) | 600 | 6,868 | ||||||
ANDRITZ AG (Austria) | 139 | 6,952 | ||||||
Astec Industries, Inc. | 1,400 | 86,093 | ||||||
Atlas Copco AB (Sweden) (Class A Stock) | 1,311 | 46,212 | ||||||
Atlas Copco AB (Sweden) (Class B Stock) | 734 | 23,316 | ||||||
CNH Industrial NV (United Kingdom) | 1,917 | 18,451 | ||||||
Columbus McKinnon Corp. | 500 | 12,410 | ||||||
Crane Co. | 3,700 | 276,871 | ||||||
Cummins, Inc. | 2,600 | 393,120 | ||||||
FANUC Corp. (Japan) | 390 | 80,290 | ||||||
Fortive Corp. | 27,100 | 1,631,962 | ||||||
GEA Group AG (Germany) | 349 | 14,827 | ||||||
Global Brass & Copper Holdings, Inc. | 3,100 | 106,640 | ||||||
Harsco Corp.* | 9,200 | 117,300 | ||||||
Hillenbrand, Inc. | 1,300 | 46,605 | ||||||
Hino Motors Ltd. (Japan) | 500 | 6,062 | ||||||
Hitachi Construction Machinery Co. Ltd. (Japan) | 200 | 5,004 | ||||||
Hoshizaki Corp. (Japan) | 100 | 7,904 | ||||||
IHI Corp. (Japan)* | 2,700 | 8,541 | ||||||
Illinois Tool Works, Inc. | 13,900 | 1,841,333 | ||||||
IMI PLC (United Kingdom) | 481 | 7,196 | ||||||
JTEKT Corp. (Japan) | 400 | 6,223 | ||||||
Kadant, Inc. | 1,200 | 71,220 | ||||||
Kawasaki Heavy Industries Ltd. (Japan) | 2,600 | 7,898 | ||||||
Komatsu Ltd. (Japan) | 1,800 | 47,148 | ||||||
Kone OYJ (Finland) (Class B Stock) | 632 | 27,763 | ||||||
Kubota Corp. (Japan) | 2,000 | 30,147 | ||||||
Kurita Water Industries Ltd. (Japan) | 200 | 4,857 | ||||||
Lydall, Inc.* | 2,500 | 134,000 |
See Notes to Financial Statements.
34 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Machinery (cont’d.) | ||||||||
Makita Corp. (Japan) | 400 | $ | 14,029 | |||||
MAN SE (Germany) | 66 | 6,803 | ||||||
Metso OYJ (Finland) | 227 | 6,869 | ||||||
MINEBEA MITSUMI, Inc. (Japan) | 700 | 9,359 | ||||||
Mitsubishi Heavy Industries Ltd. (Japan) | 6,000 | 24,143 | ||||||
Mueller Industries, Inc. | 3,400 | 116,382 | ||||||
Mueller Water Products, Inc. (Class A Stock) | 4,300 | 50,826 | ||||||
Nabtesco Corp. (Japan) | 200 | 5,322 | ||||||
NGK Insulators Ltd. (Japan) | 500 | 11,343 | ||||||
NSK Ltd. (Japan) | 800 | 11,460 | ||||||
Oshkosh Corp. | 7,500 | 514,425 | ||||||
Pentair PLC (United Kingdom) | 8,200 | 514,796 | ||||||
Sandvik AB (Sweden) | 2,084 | 31,129 | ||||||
Schindler Holding AG (Switzerland) | 40 | 7,589 | ||||||
Schindler Holding AG (Switzerland) (Part. Cert.) | 78 | 15,088 | ||||||
SKF AB (Sweden) (Class B Stock) | 730 | 14,436 | ||||||
SMC Corp. (Japan) | 100 | 29,646 | ||||||
SPX Corp.* | 4,300 | 104,275 | ||||||
Stanley Black & Decker, Inc. | 6,800 | 903,516 | ||||||
Sumitomo Heavy Industries Ltd. (Japan) | 1,200 | 8,390 | ||||||
Supreme Industries, Inc. (Class A Stock) | 2,700 | 54,702 | ||||||
THK Co. Ltd. (Japan) | 250 | 6,307 | ||||||
Volvo AB (Sweden) (Class B Stock) | 2,975 | 43,887 | ||||||
Wartsila OYJ Abp (Finland) | 287 | 15,344 | ||||||
Weir Group PLC (The) (United Kingdom) | 444 | 10,680 | ||||||
Woodward, Inc. | 800 | 54,336 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. (China) | 2,700 | 2,180 | ||||||
Zardoya Otis SA (Spain) | 359 | 3,315 | ||||||
|
| |||||||
7,700,575 | ||||||||
Marine 0.0% |
| |||||||
A.P. Moeller—Maersk A/S (Denmark) (Class A Stock) | 7 | 11,281 | ||||||
A.P. Moeller—Maersk A/S (Denmark) (Class B Stock) | 13 | 21,532 | ||||||
Kuehne + Nagel International AG (Switzerland) | 100 | 14,120 | ||||||
Matson, Inc. | 3,600 | 114,336 | ||||||
Mitsui OSK Lines Ltd. (Japan) | 2,200 | 6,914 | ||||||
Nippon Yusen K.K. (Japan) | 2,900 | 6,123 | ||||||
|
| |||||||
174,306 | ||||||||
Media 1.4% |
| |||||||
Altice NV (Netherlands) (Class A Stock)* | 755 | 17,077 | ||||||
Altice NV (Netherlands) (Class B Stock)* | 266 | 6,008 |
See Notes to Financial Statements.
Prudential Balanced Fund | 35 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Media (cont’d.) | ||||||||
Axel Springer SE (Germany) | 71 | $ | 3,919 | |||||
Comcast Corp. (Class A Stock) | 53,200 | 1,999,788 | ||||||
Dentsu, Inc. (Japan) | 400 | 21,785 | ||||||
Discovery Communications, Inc. (Class C Stock)* | 8,300 | 234,973 | ||||||
DISH Network Corp. (Class A Stock)* | 10,900 | 692,041 | ||||||
Eutelsat Communications SA (France) | 301 | 6,709 | ||||||
Hakuhodo DY Holdings, Inc. (Japan) | 460 | 5,472 | ||||||
ITV PLC (United Kingdom) | 7,198 | 19,760 | ||||||
JCDecaux SA (France) | 120 | 4,215 | ||||||
Lagardere SCA (France) | 229 | 6,736 | ||||||
MSG Networks, Inc. (Class A Stock)* | 6,800 | 158,780 | ||||||
New Media Investment Group, Inc. | 5,200 | 73,892 | ||||||
Pearson PLC (United Kingdom) | 1,496 | 12,756 | ||||||
Publicis Groupe SA (France) | 382 | 26,671 | ||||||
REA Group Ltd. (Australia) | 123 | 5,578 | ||||||
RTL Group SA (Luxembourg) | 70 | 5,632 | ||||||
Schibsted ASA (Norway) (Class A Stock) | 119 | 3,063 | ||||||
Schibsted ASA (Norway) (Class B Stock) | 194 | 4,445 | ||||||
SES SA (Luxembourg) | 736 | 17,111 | ||||||
Singapore Press Holdings Ltd. (Singapore) | 3,000 | 7,613 | ||||||
Sky PLC (United Kingdom) | 1,935 | 23,665 | ||||||
Telenet Group Holding NV (Belgium)* | 110 | 6,539 | ||||||
Toho Co. Ltd. (Japan) | 200 | 5,309 | ||||||
Townsquare Media, Inc. (Class A Stock)* | 2,100 | 25,578 | ||||||
Tribune Media Co. (Class A Stock) | 4,600 | 171,442 | ||||||
tronc, Inc.* | 1,000 | 13,920 | ||||||
Twenty-First Century Fox, Inc. (Class B Stock) | 26,400 | 838,992 | ||||||
Viacom, Inc. (Class B Stock) | 20,200 | 941,724 | ||||||
Vivendi SA (France) | 1,964 | 38,099 | ||||||
Walt Disney Co. (The) | 18,400 | 2,086,376 | ||||||
WPP PLC (United Kingdom) | 2,422 | 53,088 | ||||||
|
| |||||||
7,538,756 | ||||||||
Metals & Mining 0.7% |
| |||||||
Alumina Ltd. (Australia) | 4,251 | 5,816 | ||||||
Anglo American PLC (United Kingdom)* | 2,733 | 41,757 | ||||||
Antofagasta PLC (Chile) | 866 | 9,042 | ||||||
ArcelorMittal (Luxembourg)* | 3,450 | 28,863 | ||||||
BHP Billiton Ltd. (Australia) | 6,187 | 112,518 | ||||||
BHP Billiton PLC (Australia) | 4,030 | 62,158 | ||||||
Boliden AB (Sweden) | 513 | 15,270 | ||||||
Fortescue Metals Group Ltd. (Australia) | 2,835 | 13,504 |
See Notes to Financial Statements.
36 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Metals & Mining (cont’d.) | ||||||||
Fresnillo PLC (Mexico) | 403 | $ | 7,852 | |||||
Glencore PLC (Switzerland)* | 23,346 | 91,599 | ||||||
Hitachi Metals Ltd. (Japan) | 400 | 5,626 | ||||||
JFE Holdings, Inc. (Japan) | 1,000 | 17,200 | ||||||
Kobe Steel Ltd. (Japan)* | 610 | 5,582 | ||||||
Maruichi Steel Tube Ltd. (Japan) | 100 | 2,854 | ||||||
Mitsubishi Materials Corp. (Japan) | 210 | 6,374 | ||||||
Newcrest Mining Ltd. (Australia) | 1,471 | 25,074 | ||||||
Nippon Steel & Sumitomo Metal Corp. (Japan) | 1,517 | 35,048 | ||||||
Norsk Hydro ASA (Norway) | 2,673 | 15,578 | ||||||
Nucor Corp. | 11,500 | 686,780 | ||||||
Randgold Resources Ltd. (United Kingdom) | 182 | 15,903 | ||||||
Rio Tinto Ltd. (United Kingdom) | 818 | 37,769 | ||||||
Rio Tinto PLC (United Kingdom) | 2,360 | 95,031 | ||||||
Ryerson Holding Corp.* | 1,300 | 16,380 | ||||||
South32 Ltd. (Australia) | 10,167 | 21,434 | ||||||
Southern Copper Corp. (Peru) | 28,500 | 1,022,865 | ||||||
Steel Dynamics, Inc. | 30,000 | 1,042,800 | ||||||
Sumitomo Metal Mining Co. Ltd. (Japan) | 900 | 12,871 | ||||||
thyssenkrupp AG (Germany) | 690 | 16,903 | ||||||
voestalpine AG (Austria) | 201 | 7,905 | ||||||
Worthington Industries, Inc. | 3,900 | 175,851 | ||||||
|
| |||||||
3,654,207 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) 0.2% | ||||||||
Ares Commercial Real Estate Corp. | 1,800 | 24,084 | ||||||
Chimera Investment Corp. | 21,900 | 441,942 | ||||||
Invesco Mortgage Capital, Inc. | 10,900 | 168,078 | ||||||
Ladder Capital Corp. | 5,200 | 75,088 | ||||||
New Residential Investment Corp. | 2,900 | 49,242 | ||||||
PennyMac Mortgage Investment Trust | 5,800 | 102,950 | ||||||
Redwood Trust, Inc. | 2,600 | 43,186 | ||||||
Resource Capital Corp. | 2,750 | 26,867 | ||||||
|
| |||||||
931,437 | ||||||||
Multiline Retail 0.6% | ||||||||
Don Quijote Holdings Co. Ltd. (Japan) | 200 | 6,961 | ||||||
Harvey Norman Holdings Ltd. (Australia) | 1,203 | 4,161 | ||||||
Isetan Mitsukoshi Holdings Ltd. (Japan) | 700 | 7,694 | ||||||
J. Front Retailing Co. Ltd. (Japan) | 450 | 6,684 | ||||||
Kohl’s Corp. | 15,100 | 601,131 | ||||||
Macy’s, Inc. | 42,200 | 1,250,808 |
See Notes to Financial Statements.
Prudential Balanced Fund | 37 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Multiline Retail (cont’d.) | ||||||||
Marks & Spencer Group PLC (United Kingdom) | 3,045 | $ | 12,862 | |||||
Marui Group Co. Ltd. (Japan) | 400 | 5,451 | ||||||
Next PLC (United Kingdom) | 267 | 14,444 | ||||||
Ryohin Keikaku Co. Ltd. (Japan) | 50 | 10,991 | ||||||
Takashimaya Co. Ltd. (Japan) | 1,000 | 8,765 | ||||||
Target Corp. | 20,200 | 1,114,838 | ||||||
|
| |||||||
3,044,790 | ||||||||
Multi-Utilities 0.2% | ||||||||
AGL Energy Ltd. (Australia) | 1,266 | 25,501 | ||||||
CenterPoint Energy, Inc. | 18,700 | 515,559 | ||||||
Centrica PLC (United Kingdom) | 10,542 | 28,706 | ||||||
DUET Group (Australia) | 4,719 | 10,057 | ||||||
E.ON SE (Germany) | 4,240 | 33,709 | ||||||
Engie SA (France) | 3,027 | 42,776 | ||||||
Innogy SE (Germany), RegS, 144A* | 261 | 9,836 | ||||||
National Grid PLC (United Kingdom) | 7,183 | 91,133 | ||||||
NiSource, Inc. | 13,200 | 314,028 | ||||||
RWE AG (Germany)* | 918 | 15,213 | ||||||
Suez (France) | 648 | 10,227 | ||||||
Unitil Corp. | 300 | 13,509 | ||||||
Veolia Environnement SA (France) | 914 | 17,139 | ||||||
|
| |||||||
1,127,393 | ||||||||
Oil, Gas & Consumable Fuels 3.5% | ||||||||
Adams Resources & Energy, Inc. | 300 | 11,205 | ||||||
Anadarko Petroleum Corp. | 20,900 | 1,295,800 | ||||||
BP PLC (United Kingdom) | 36,328 | 209,108 | ||||||
Caltex Australia Ltd. (Australia) | 492 | 11,086 | ||||||
Chevron Corp. | 3,900 | 418,743 | ||||||
ConocoPhillips | 45,300 | 2,259,111 | ||||||
Contango Oil & Gas Co.* | 3,100 | 22,692 | ||||||
Devon Energy Corp. | 39,300 | 1,639,596 | ||||||
Enagas SA (Spain) | 413 | 10,715 | ||||||
Eni SpA (Italy) | 4,854 | 79,476 | ||||||
Evolution Petroleum Corp. | 3,100 | 24,800 | ||||||
Exxon Mobil Corp. | 42,254 | 3,465,251 | ||||||
Galp Energia SGPS SA (Portugal) | 956 | 14,500 | ||||||
Idemitsu Kosan Co. Ltd. (Japan) | 140 | 4,873 | ||||||
Inpex Corp. (Japan) | 1,781 | 17,562 | ||||||
JXTG Holdings, Inc. (Japan) | 5,385 | 26,513 | ||||||
Kinder Morgan, Inc. | 83,900 | 1,823,986 |
See Notes to Financial Statements.
38 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Oil, Gas & Consumable Fuels (cont’d.) | ||||||||
Koninklijke Vopak NV (Netherlands) | 138 | $ | 6,010 | |||||
Laredo Petroleum, Inc.* | 15,000 | 219,000 | ||||||
Lundin Petroleum AB (Sweden)* | 327 | 6,637 | ||||||
Marathon Petroleum Corp. | 8,500 | 429,590 | ||||||
Neste OYJ (Finland) | 239 | 9,346 | ||||||
Newfield Exploration Co.* | 42,600 | 1,572,366 | ||||||
Noble Energy, Inc. | 4,400 | 151,096 | ||||||
Oil Search Ltd. (Australia) | 2,571 | 14,175 | ||||||
OMV AG (Austria) | 281 | 11,074 | ||||||
Origin Energy Ltd. (Australia)* | 3,498 | 18,816 | ||||||
Pacific Ethanol, Inc.* | 8,600 | 58,910 | ||||||
Panhandle Oil and Gas, Inc. (Class A Stock) | 1,600 | 30,720 | ||||||
Phillips 66 | 3,600 | 285,192 | ||||||
Repsol SA (Spain) | 2,159 | 33,449 | ||||||
REX American Resources Corp.* | 1,200 | 108,588 | ||||||
Royal Dutch Shell PLC (Netherlands) (Class A Stock) | 8,459 | 222,964 | ||||||
Royal Dutch Shell PLC (Netherlands) (Class B Stock) | 7,197 | 197,841 | ||||||
RSP Permian, Inc.* | 2,500 | 103,575 | ||||||
Santos Ltd. (Australia)* | 3,514 | 10,197 | ||||||
Scorpio Tankers, Inc. (Monaco) | 14,800 | 65,712 | ||||||
Showa Shell Sekiyu KK (Japan) | 400 | 4,059 | ||||||
Snam SpA (Italy) | 4,630 | 20,011 | ||||||
Statoil ASA (Norway) | 2,153 | 37,007 | ||||||
TOTAL SA (France) | 4,373 | 221,115 | ||||||
Valero Energy Corp. | 26,700 | 1,769,943 | ||||||
Williams Cos., Inc. (The) | 52,800 | 1,562,352 | ||||||
Woodside Petroleum Ltd. (Australia) | 1,447 | 35,449 | ||||||
|
| |||||||
18,540,211 | ||||||||
Paper & Forest Products 0.0% | ||||||||
Clearwater Paper Corp.* | 400 | 22,400 | ||||||
KapStone Paper and Packaging Corp. | 3,600 | 83,160 | ||||||
Mondi PLC (South Africa) | 674 | 16,285 | ||||||
Oji Holdings Corp. (Japan) | 1,500 | 7,035 | ||||||
Stora Enso OYJ (Finland) (Class R Stock) | 1,033 | 12,214 | ||||||
UPM-Kymmene OYJ (Finland) | 996 | 23,385 | ||||||
|
| |||||||
164,479 | ||||||||
Personal Products 0.1% | ||||||||
Avon Products, Inc.* | 31,100 | 136,840 | ||||||
Beiersdorf AG (Germany) | 203 | 19,210 | ||||||
Kao Corp. (Japan) | 950 | 52,171 |
See Notes to Financial Statements.
Prudential Balanced Fund | 39 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Personal Products (cont’d.) | ||||||||
Kose Corp. (Japan) | 100 | $ | 9,088 | |||||
L’Oreal SA (France) | 481 | 92,515 | ||||||
Pola Orbis Holdings, Inc. (Japan) | 160 | 3,866 | ||||||
Shiseido Co. Ltd. (Japan) | 700 | 18,424 | ||||||
Unilever NV-CVA (United Kingdom) | 3,126 | 155,204 | ||||||
Unilever PLC (United Kingdom) | 2,473 | 121,986 | ||||||
USANA Health Sciences, Inc.* | 780 | 44,928 | ||||||
|
| |||||||
654,232 | ||||||||
Pharmaceuticals 2.6% | ||||||||
Allergan PLC | 11,500 | 2,747,580 | ||||||
Astellas Pharma, Inc. (Japan) | 4,100 | 54,075 | ||||||
AstraZeneca PLC (United Kingdom) | 2,442 | 150,151 | ||||||
Bayer AG (Germany) | 1,589 | 183,075 | ||||||
Bristol-Myers Squibb Co. | 2,000 | 108,760 | ||||||
Chugai Pharmaceutical Co. Ltd. (Japan) | 400 | 13,769 | ||||||
Daiichi Sankyo Co. Ltd. (Japan) | 1,200 | 27,073 | ||||||
Eisai Co. Ltd. (Japan) | 500 | 25,966 | ||||||
Galenica AG (Switzerland) | 9 | 9,488 | ||||||
GlaxoSmithKline PLC (United Kingdom) | 9,369 | 194,809 | ||||||
Heska Corp.* | 2,100 | 220,458 | ||||||
Hikma Pharmaceuticals PLC (Jordan) | 255 | 6,334 | ||||||
Hisamitsu Pharmaceutical Co., Inc. (Japan) | 100 | 5,725 | ||||||
Johnson & Johnson | 39,200 | 4,882,360 | ||||||
Kyowa Hakko Kirin Co. Ltd. (Japan) | 500 | 7,945 | ||||||
Mallinckrodt PLC* | 19,600 | 873,572 | ||||||
Merck & Co., Inc. | 8,900 | 565,506 | ||||||
Merck KGaA (Germany) | 242 | 27,577 | ||||||
Mitsubishi Tanabe Pharma Corp. (Japan) | 400 | 8,352 | ||||||
Novartis AG (Switzerland) | 4,303 | 319,530 | ||||||
Novo Nordisk A/S (Denmark) (Class B Stock) | 3,678 | 126,299 | ||||||
Ono Pharmaceutical Co. Ltd. (Japan) | 800 | 16,590 | ||||||
Orion OYJ (Finland) (Class B Stock) | 214 | 11,163 | ||||||
Otsuka Holdings Co. Ltd. (Japan) | 700 | 31,682 | ||||||
Pfizer, Inc. | 22,719 | 777,217 | ||||||
Prestige Brands Holdings, Inc.* | 3,100 | 172,236 | ||||||
Roche Holding AG (Switzerland) | 1,348 | 344,729 | ||||||
Sanofi (France) | 2,228 | 201,401 | ||||||
Santen Pharmaceutical Co. Ltd. (Japan) | 750 | 10,894 | ||||||
Shionogi & Co. Ltd. (Japan) | 600 | 31,061 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. (Japan) | 300 | 4,964 | ||||||
Supernus Pharmaceuticals, Inc.* | 2,900 | 90,770 |
See Notes to Financial Statements.
40 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Pharmaceuticals (cont’d.) | ||||||||
Taisho Pharmaceutical Holdings Co. Ltd. (Japan) | 30 | $ | 2,443 | |||||
Takeda Pharmaceutical Co. Ltd. (Japan) | 1,400 | 65,908 | ||||||
Taro Pharmaceutical Industries Ltd.* | 27 | 3,149 | ||||||
Teva Pharmaceutical Industries Ltd. (Israel), ADR | 1,742 | 55,901 | ||||||
UCB SA (Belgium) | 254 | 19,702 | ||||||
Zoetis, Inc. | 31,700 | 1,691,829 | ||||||
|
| |||||||
14,090,043 | ||||||||
Professional Services 0.1% | ||||||||
Adecco Group AG (Switzerland) | 332 | 23,573 | ||||||
Bureau Veritas SA (France) | 496 | 10,455 | ||||||
Capita PLC (United Kingdom) | 1,210 | 8,569 | ||||||
Experian PLC (United Kingdom) | 1,801 | 36,743 | ||||||
ICF International, Inc.* | 2,000 | 82,600 | ||||||
Insperity, Inc. | 2,100 | 186,165 | ||||||
Intertek Group PLC (United Kingdom) | 294 | 14,471 | ||||||
Randstad Holding NV (Netherlands) | 221 | 12,740 | ||||||
Recruit Holdings Co. Ltd. (Japan) | 700 | 35,802 | ||||||
RELX NV (United Kingdom) | 1,917 | 35,564 | ||||||
RELX PLC (United Kingdom) | 2,105 | 41,212 | ||||||
SEEK Ltd. (Australia) | 633 | 7,696 | ||||||
SGS SA (Switzerland) | 11 | 23,459 | ||||||
Wolters Kluwer NV (Netherlands) | 578 | 23,988 | ||||||
|
| |||||||
543,037 | ||||||||
Real Estate Management & Development 0.2% | ||||||||
Aeon Mall Co. Ltd. (Japan) | 220 | 3,471 | ||||||
Azrieli Group Ltd. (Israel) | 75 | 3,985 | ||||||
CapitaLand Ltd. (Singapore) | 4,700 | 12,199 | ||||||
CBRE Group, Inc. (Class A Stock)* | 13,000 | 452,270 | ||||||
Cheung Kong Property Holdings Ltd. (Hong Kong) | 5,357 | 36,137 | ||||||
City Developments Ltd. (Singapore) | 700 | 5,101 | ||||||
Daito Trust Construction Co. Ltd. (Japan) | 130 | 17,875 | ||||||
Daiwa House Industry Co. Ltd. (Japan) | 1,100 | 31,618 | ||||||
Deutsche Wohnen AG (Germany) | 664 | 21,867 | ||||||
Global Logistic Properties Ltd. (Singapore) | 5,200 | 10,333 | ||||||
Hang Lung Group Ltd. (Hong Kong) | 2,000 | 8,531 | ||||||
Hang Lung Properties Ltd. (Hong Kong) | 5,000 | 12,998 | ||||||
Henderson Land Development Co. Ltd. (Hong Kong) | 2,173 | 13,474 | ||||||
Hongkong Land Holdings Ltd. (Hong Kong) | 2,200 | 16,918 | ||||||
Hulic Co. Ltd. (Japan) | 700 | 6,607 | ||||||
Hysan Development Co. Ltd. (Hong Kong) | 1,400 | 6,352 |
See Notes to Financial Statements.
Prudential Balanced Fund | 41 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Real Estate Management & Development (cont’d.) | ||||||||
Kerry Properties Ltd. (Hong Kong) | 1,500 | $ | 5,203 | |||||
LendLease Group (Australia) | 1,038 | 12,345 | ||||||
Marcus & Millichap, Inc.* | 500 | 12,290 | ||||||
Mitsubishi Estate Co. Ltd. (Japan) | 2,300 | 41,921 | ||||||
Mitsui Fudosan Co. Ltd. (Japan) | 1,700 | 36,298 | ||||||
New World Development Co. Ltd. (Hong Kong) | 10,800 | 13,308 | ||||||
Nomura Real Estate Holdings, Inc. (Japan) | 300 | 4,788 | ||||||
RMR Group, Inc. (The) (Class A Stock) | 1,300 | 64,350 | ||||||
Sino Land Co. Ltd. (Hong Kong) | 5,300 | 9,294 | ||||||
Sumitomo Realty & Development Co. Ltd. (Japan) | 690 | 17,921 | ||||||
Sun Hung Kai Properties Ltd. (Hong Kong) | 2,600 | 38,221 | ||||||
Swire Pacific Ltd. (Hong Kong) (Class A Stock) | 1,000 | 9,995 | ||||||
Swire Properties Ltd. (Hong Kong) | 2,000 | 6,410 | ||||||
Swiss Prime Site AG (Switzerland)* | 138 | 12,151 | ||||||
Tokyo Tatemono Co. Ltd. (Japan) | 350 | 4,628 | ||||||
Tokyu Fudosan Holdings Corp. (Japan) | 1,000 | 5,443 | ||||||
UOL Group Ltd. (Singapore) | 1,054 | 5,251 | ||||||
Vonovia SE (Germany) | 874 | 30,793 | ||||||
Wharf Holdings Ltd. (The) (Hong Kong) | 2,400 | 20,626 | ||||||
Wheelock & Co. Ltd. (Hong Kong) | 1,400 | 11,074 | ||||||
|
| |||||||
1,022,046 | ||||||||
Road & Rail 0.6% | ||||||||
Aurizon Holdings Ltd. (Australia) | 3,945 | 15,819 | ||||||
Central Japan Railway Co. (Japan) | 263 | 42,958 | ||||||
ComfortDelGro Corp. Ltd. (Singapore) | 4,300 | 7,871 | ||||||
DSV A/S (Denmark) | 356 | 18,413 | ||||||
East Japan Railway Co. (Japan) | 600 | 52,393 | ||||||
Hankyu Hanshin Holdings, Inc. (Japan) | 500 | 16,316 | ||||||
Keikyu Corp. (Japan) | 1,000 | 11,001 | ||||||
Keio Corp. (Japan) | 1,100 | 8,739 | ||||||
Keisei Electric Railway Co. Ltd. (Japan) | 250 | 5,819 | ||||||
Kintetsu Group Holdings Co. Ltd. (Japan) | 3,500 | 12,654 | ||||||
MTR Corp. Ltd. (Hong Kong) | 3,000 | 16,855 | ||||||
Nagoya Railroad Co. Ltd. (Japan) | 2,000 | 9,019 | ||||||
Nippon Express Co. Ltd. (Japan) | 1,600 | 8,236 | ||||||
Norfolk Southern Corp. | 10,100 | 1,130,897 | ||||||
Odakyu Electric Railway Co. Ltd. (Japan) | 550 | 10,726 | ||||||
Roadrunner Transportation Systems, Inc.* | 4,000 | 27,480 | ||||||
Tobu Railway Co. Ltd. (Japan) | 1,900 | 9,650 | ||||||
Tokyu Corp. (Japan) | 2,100 | 14,921 |
See Notes to Financial Statements.
42 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Road & Rail (cont’d.) | ||||||||
Union Pacific Corp. | 15,600 | $ | 1,652,352 | |||||
West Japan Railway Co. (Japan) | 300 | 19,564 | ||||||
|
| |||||||
3,091,683 | ||||||||
Semiconductors & Semiconductor Equipment 2.3% | ||||||||
Advanced Energy Industries, Inc.* | 3,500 | 239,960 | ||||||
Alpha & Omega Semiconductor Ltd.* | 4,500 | 77,355 | ||||||
Amkor Technology, Inc.* | 7,600 | 88,084 | ||||||
Applied Materials, Inc. | 56,200 | 2,186,180 | ||||||
ASM Pacific Technology Ltd. (Hong Kong) | 600 | 8,162 | ||||||
ASML Holding NV (Netherlands) | 715 | 94,876 | ||||||
Brooks Automation, Inc. | 1,800 | 40,320 | ||||||
Cabot Microelectronics Corp. | 300 | 22,983 | ||||||
Entegris, Inc.* | 9,600 | 224,640 | ||||||
Infineon Technologies AG (Germany) | 2,216 | 45,356 | ||||||
Intel Corp. | 94,000 | 3,390,580 | ||||||
IXYS Corp. | 1,400 | 20,370 | ||||||
MKS Instruments, Inc. | 800 | 55,000 | ||||||
Monolithic Power Systems, Inc. | 1,400 | 128,940 | ||||||
NVE Corp. | 300 | 24,837 | ||||||
NXP Semiconductors NV (Netherlands)* | 563 | 58,270 | ||||||
Power Integrations, Inc. | 700 | 46,025 | ||||||
QUALCOMM, Inc. | 43,500 | 2,494,290 | ||||||
Rohm Co. Ltd. (Japan) | 200 | 13,315 | ||||||
Semtech Corp.* | 5,800 | 196,040 | ||||||
Silicon Laboratories, Inc.* | 1,600 | 117,680 | ||||||
STMicroelectronics NV (Switzerland) | 1,268 | 19,512 | ||||||
Texas Instruments, Inc. | 31,000 | 2,497,360 | ||||||
Tokyo Electron Ltd. (Japan) | 300 | 32,843 | ||||||
Versum Materials, Inc.* | 3,400 | 104,040 | ||||||
|
| |||||||
12,227,018 | ||||||||
Software 2.8% | ||||||||
Adobe Systems, Inc.* | 18,000 | 2,342,340 | ||||||
Aspen Technology, Inc.* | 3,800 | 223,896 | ||||||
Barracuda Networks, Inc.* | 3,100 | 71,641 | ||||||
Bottomline Technologies de, Inc.* | 2,700 | 63,855 | ||||||
Check Point Software Technologies Ltd. (Israel)* | 253 | 25,973 | ||||||
Dassault Systemes SA (France) | 238 | 20,585 | ||||||
Electronic Arts, Inc.* | 20,400 | 1,826,208 | ||||||
Fair Isaac Corp. | 1,600 | 206,320 | ||||||
Gemalto NV (Netherlands) | 172 | 9,595 |
See Notes to Financial Statements.
Prudential Balanced Fund | 43 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Software (cont’d.) | ||||||||
Globant SA*(a) | 2,200 | $ | 80,080 | |||||
Intuit, Inc. | 14,600 | 1,693,454 | ||||||
Konami Holdings Corp. (Japan) | 200 | 8,495 | ||||||
LINE Corp. (Japan)* | 100 | 3,855 | ||||||
Microsoft Corp. | 74,513 | 4,907,426 | ||||||
MicroStrategy, Inc. (Class A Stock)* | 320 | 60,096 | ||||||
Mobileye NV* | 353 | 21,674 | ||||||
Nexon Co. Ltd. (Japan) | 300 | 4,771 | ||||||
Nice Ltd. (Israel) | 114 | 7,739 | ||||||
Nintendo Co. Ltd. (Japan) | 220 | 51,049 | ||||||
Oracle Corp. | 70,700 | 3,153,927 | ||||||
Oracle Corp. Japan (Japan) | 100 | 5,733 | ||||||
Paycom Software, Inc.* | 200 | 11,502 | ||||||
Progress Software Corp. | 1,300 | 37,765 | ||||||
QAD, Inc. | 800 | 22,280 | ||||||
Sage Group PLC (The) (United Kingdom) | 2,085 | 16,470 | ||||||
SAP SE (Germany) | 1,887 | 185,130 | ||||||
TiVo Corp. | 1,100 | 20,625 | ||||||
Trend Micro, Inc. (Japan) | 200 | 8,902 | ||||||
Varonis Systems, Inc.* | 700 | 22,260 | ||||||
|
| |||||||
15,113,646 | ||||||||
Specialty Retail 1.0% | ||||||||
ABC-Mart, Inc. (Japan) | 100 | 5,861 | ||||||
American Eagle Outfitters, Inc. | 4,600 | 64,538 | ||||||
Asbury Automotive Group, Inc.* | 1,700 | 102,170 | ||||||
Bed Bath & Beyond, Inc. | 8,000 | 315,680 | ||||||
Burlington Stores, Inc.* | 7,300 | 710,217 | ||||||
Citi Trends, Inc. | 700 | 11,900 | ||||||
Dixons Carphone PLC (United Kingdom) | 1,720 | 6,851 | ||||||
DSW, Inc. (Class A Stock) | 1,300 | 26,884 | ||||||
Dufry AG (Switzerland)* | 95 | 14,465 | ||||||
Express, Inc.* | 10,600 | 96,566 | ||||||
Fast Retailing Co. Ltd. (Japan) | 100 | 31,468 | ||||||
Foot Locker, Inc. | 13,500 | 1,009,935 | ||||||
Francesca’s Holdings Corp.*(a) | 8,700 | 133,545 | ||||||
GameStop Corp. (Class A Stock)(a) | 13,800 | 311,190 | ||||||
Group 1 Automotive, Inc. | 1,700 | 125,936 | ||||||
Hennes & Mauritz AB (Sweden) (Class B Stock) | 1,816 | 46,346 | ||||||
Hikari Tsushin, Inc. (Japan) | 30 | 2,929 | ||||||
Industria de Diseno Textil SA (Spain) | 2,081 | 73,286 | ||||||
Kingfisher PLC (United Kingdom) | 4,263 | 17,442 |
See Notes to Financial Statements.
44 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Specialty Retail (cont’d.) | ||||||||
Michaels Cos., Inc. (The)* | 10,800 | $ | 241,812 | |||||
Nitori Holdings Co. Ltd. (Japan) | 150 | 19,050 | ||||||
Ross Stores, Inc. | 24,400 | 1,607,228 | ||||||
Shimamura Co. Ltd. (Japan) | 50 | 6,628 | ||||||
Staples, Inc. | 31,800 | 278,886 | ||||||
Tilly’s, Inc. (Class A Stock) | 5,600 | 50,512 | ||||||
USS Co. Ltd. (Japan) | 400 | 6,699 | ||||||
Yamada Denki Co. Ltd. (Japan) | 1,360 | 6,799 | ||||||
|
| |||||||
5,324,823 | ||||||||
Technology Hardware, Storage & Peripherals 2.3% | ||||||||
Apple, Inc. | 52,400 | 7,527,784 | ||||||
Brother Industries Ltd. (Japan) | 500 | 10,456 | ||||||
Canon, Inc. (Japan) | 2,050 | 64,019 | ||||||
FUJIFILM Holdings Corp. (Japan) | 800 | 31,358 | ||||||
Hewlett Packard Enterprise Co. | 76,200 | 1,805,940 | ||||||
HP, Inc. | 63,500 | 1,135,380 | ||||||
Konica Minolta, Inc. (Japan) | 800 | 7,176 | ||||||
NEC Corp. (Japan) | 5,100 | 12,312 | ||||||
Ricoh Co. Ltd. (Japan) | 1,300 | 10,724 | ||||||
Seagate Technology PLC | 33,000 | 1,515,690 | ||||||
Seiko Epson Corp. (Japan) | 600 | 12,659 | ||||||
Super Micro Computer, Inc.* | 2,900 | 73,515 | ||||||
|
| |||||||
12,207,013 | ||||||||
Textiles, Apparel & Luxury Goods 0.1% | ||||||||
adidas AG (Germany) | 360 | 68,484 | ||||||
Asics Corp. (Japan) | 300 | 4,827 | ||||||
Burberry Group PLC (United Kingdom) | 807 | 17,415 | ||||||
Christian Dior SE (France) | 109 | 25,302 | ||||||
Cie Financiere Richemont SA (Switzerland) | 996 | 78,746 | ||||||
Culp, Inc. | 1,000 | 31,200 | ||||||
Hermes International (France) | 52 | 24,616 | ||||||
HUGO BOSS AG (Germany) | 142 | 10,355 | ||||||
Kering (France) | 148 | 38,253 | ||||||
Li & Fung Ltd. (Hong Kong) | 11,000 | 4,772 | ||||||
Luxottica Group SpA (Italy) | 339 | 18,708 | ||||||
LVMH Moet Hennessy Louis Vuitton SE (France) | 538 | 118,249 | ||||||
Pandora A/S (Denmark) | 209 | 23,132 | ||||||
Skechers U.S.A., Inc. (Class A Stock)* | 5,200 | 142,740 | ||||||
Swatch Group AG (The) (Switzerland) (Bearer Shares) | 63 | 22,556 | ||||||
Swatch Group AG (The) (Switzerland) (Registered Shares) | 99 | 6,894 |
See Notes to Financial Statements.
Prudential Balanced Fund | 45 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Textiles, Apparel & Luxury Goods (cont’d.) | ||||||||
Unifi, Inc.* | 300 | $ | 8,517 | |||||
Yue Yuen Industrial Holdings Ltd. (Hong Kong) | 1,500 | 5,894 | ||||||
|
| |||||||
650,660 | ||||||||
Thrifts & Mortgage Finance 0.1% |
| |||||||
Flagstar Bancorp, Inc.* | 2,800 | 78,932 | ||||||
MGIC Investment Corp.* | 13,400 | 135,742 | ||||||
Radian Group, Inc. | 9,700 | 174,212 | ||||||
Walker & Dunlop, Inc.* | 2,300 | 95,887 | ||||||
|
| |||||||
484,773 | ||||||||
Tobacco 0.6% |
| |||||||
Altria Group, Inc. | 35,500 | 2,535,410 | ||||||
British American Tobacco PLC (United Kingdom) | 3,579 | 237,452 | ||||||
Imperial Brands PLC (United Kingdom) | 1,829 | 88,640 | ||||||
Japan Tobacco, Inc. (Japan) | 2,103 | 68,447 | ||||||
Philip Morris International, Inc. | 2,800 | 316,120 | ||||||
Swedish Match AB (Sweden) | 387 | 12,577 | ||||||
|
| |||||||
3,258,646 | ||||||||
Trading Companies & Distributors 0.3% |
| |||||||
AerCap Holdings NV (Ireland)* | 302 | 13,883 | ||||||
Applied Industrial Technologies, Inc. | 2,700 | 166,995 | ||||||
Ashtead Group PLC (United Kingdom) | 967 | 20,016 | ||||||
Brenntag AG (Germany) | 312 | 17,487 | ||||||
Bunzl PLC (United Kingdom) | 672 | 19,532 | ||||||
ITOCHU Corp. (Japan) | 2,900 | 41,285 | ||||||
Marubeni Corp. (Japan) | 3,200 | 19,766 | ||||||
MISUMI Group, Inc. (Japan) | 500 | 9,077 | ||||||
Mitsubishi Corp. (Japan) | 2,900 | 62,850 | ||||||
Mitsui & Co. Ltd. (Japan) | 3,300 | 47,923 | ||||||
MRC Global, Inc.* | 2,200 | 40,326 | ||||||
Rexel SA (France) | 550 | 9,965 | ||||||
Sumitomo Corp. (Japan) | 2,300 | 31,029 | ||||||
Toyota Tsusho Corp. (Japan) | 400 | 12,141 | ||||||
Travis Perkins PLC (United Kingdom) | 523 | 9,922 | ||||||
WESCO International, Inc.* | 18,600 | 1,293,630 | ||||||
Wolseley PLC (Switzerland) | 473 | 29,781 | ||||||
|
| |||||||
1,845,608 | ||||||||
Transportation Infrastructure 0.0% |
| |||||||
Abertis Infraestructuras SA (Spain) | 1,278 | 20,573 |
See Notes to Financial Statements.
46 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Transportation Infrastructure (cont’d.) | ||||||||
Aena SA (Spain), 144A | 131 | $ | 20,706 | |||||
Aeroports de Paris (France) | 57 | 7,042 | ||||||
Atlantia SpA (Italy) | 818 | 21,101 | ||||||
Auckland International Airport Ltd. (New Zealand) | 1,775 | 8,405 | ||||||
Fraport AG Frankfurt Airport Services Worldwide (Germany) | 77 | 5,444 | ||||||
Groupe Eurotunnel SE (France) | 826 | 8,303 | ||||||
Hutchison Port Holdings Trust (Hong Kong) | 11,700 | 4,855 | ||||||
Japan Airport Terminal Co. Ltd. (Japan) | 100 | 3,489 | ||||||
Kamigumi Co. Ltd. (Japan) | 400 | 3,467 | ||||||
Mitsubishi Logistics Corp. (Japan) | 200 | 2,761 | ||||||
SATS Ltd. (Singapore) | 1,000 | 3,489 | ||||||
Sydney Airport (Australia) | 2,078 | 10,745 | ||||||
Transurban Group (Australia) | 3,903 | 34,791 | ||||||
|
| |||||||
155,171 | ||||||||
Water Utilities 0.0% |
| |||||||
Severn Trent PLC (United Kingdom) | 452 | 13,483 | ||||||
SJW Group | 2,300 | 110,906 | ||||||
United Utilities Group PLC (United Kingdom) | 1,384 | 17,232 | ||||||
|
| |||||||
141,621 | ||||||||
Wireless Telecommunication Services 0.2% |
| |||||||
KDDI Corp. (Japan) | 3,530 | 92,842 | ||||||
Millicom International Cellular SA-SDR (Luxembourg) | 113 | 6,301 | ||||||
NTT DOCOMO, Inc. (Japan) | 2,704 | 63,145 | ||||||
SoftBank Group Corp. (Japan) | 1,600 | 113,464 | ||||||
Sprint Corp.*(a) | 58,400 | 506,912 | ||||||
StarHub Ltd. (Singapore) | 1,000 | 2,059 | ||||||
Tele2 AB (Sweden) (Class B Stock) | 718 | 6,853 | ||||||
Vodafone Group PLC (United Kingdom) | 51,279 | 133,632 | ||||||
|
| |||||||
925,208 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 321,342,515 | ||||||
|
| |||||||
EXCHANGE TRADED FUND 0.1% |
| |||||||
iShares MSCI EAFE Index Fund(a) | 11,100 | 691,419 | ||||||
|
|
See Notes to Financial Statements.
Prudential Balanced Fund | 47 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
PREFERRED STOCKS 0.1% |
| |||||||
Auto Components 0.0% |
| |||||||
Schaeffler AG (PRFC) (Germany) | 295 | $ | 5,182 | |||||
Automobiles 0.0% |
| |||||||
Bayerische Motoren Werke AG (PRFC) (Germany) | 99 | 7,787 | ||||||
Porsche Automobil Holding SE (PRFC) (Germany) | 310 | 16,892 | ||||||
Volkswagen AG (PRFC) (Germany) | 356 | 51,898 | ||||||
|
| |||||||
76,577 | ||||||||
Banks 0.0% |
| |||||||
Citigroup Capital XIII, 7.409%, (Capital security, fixed to floating preferred)(b) | 3,000 | 79,950 | ||||||
Capital Markets 0.1% |
| |||||||
State Street Corp., 5.350%, (Capital Security, fixed to floating preferred)(b) | 5,000 | 131,650 | ||||||
Chemicals 0.0% |
| |||||||
Fuchs Petrolub SE (PRFC) (Germany) | 151 | 7,362 | ||||||
Household Products 0.0% |
| |||||||
Henkel AG & Co. KGaA (PRFC) (Germany) | 348 | 44,605 | ||||||
Media 0.0% |
| |||||||
ProSiebenSat.1 Media SE (PRFC) (Germany) | 435 | 19,262 | ||||||
|
| |||||||
TOTAL PREFERRED STOCKS |
| 364,588 | ||||||
|
| |||||||
Units | ||||||||
RIGHTS* 0.0% |
| |||||||
Biotechnology |
| |||||||
Dyax Corporation CVR, expiring 12/31/19(c)(d) | 900 | 999 | ||||||
|
|
See Notes to Financial Statements.
48 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS 9.1% |
| |||||||||||||||
Agriculture 0.1% |
| |||||||||||||||
Bunge Ltd. Finance Corp., Gtd. Notes | 8.500 | % | 06/15/19 | 110 | $ | 124,713 | ||||||||||
Cargill, Inc., Sr. Unsec’d. Notes, 144A(c) | 6.000 | 11/27/17 | 150 | 154,370 | ||||||||||||
Imperial Brands Finance PLC (United Kingdom), Gtd. Notes, 144A | 2.050 | 02/11/18 | 245 | 245,264 | ||||||||||||
Reynolds American, Inc., Gtd. Notes | 8.125 | 06/23/19 | 50 | 56,371 | ||||||||||||
|
| |||||||||||||||
580,718 | ||||||||||||||||
Airlines 0.2% |
| |||||||||||||||
American Airlines Pass-Through Trust, Series 2016-1, Class AA, Pass-Through Certificates | 3.575 | 01/15/28 | 205 | 204,177 | ||||||||||||
Continental Airlines, Inc., Pass-Through Trust, | ||||||||||||||||
Series 2001-1, Class A-1, Pass-Through Certificates(c) | 6.703 | 06/15/21 | 7 | 7,692 | ||||||||||||
Series 2009-2, Class A, Pass-Through Certificates | 7.250 | 11/10/19 | 87 | 96,915 | ||||||||||||
Series 2012-2, Class A, Pass-Through Certificates | 4.000 | 10/29/24 | 97 | 101,203 | ||||||||||||
Delta Air Lines, Inc., Pass-Through Trust, | ||||||||||||||||
Series 2007-1, Class A, Pass-Through Certificates | 6.821 | 08/10/22 | 55 | 63,882 | ||||||||||||
Series 2011-1, Class A, Pass-Through Certificates | 5.300 | 04/15/19 | 122 | 128,675 | ||||||||||||
Delta Air Lines, Inc., Sr. Unsec’d. Notes | 2.875 | 03/13/20 | 205 | 206,660 | ||||||||||||
United Airlines, Inc., Pass-Through Trust, Series 2014-1, Class A, Pass-Through Certificates | 4.000 | 04/11/26 | 82 | 85,355 | ||||||||||||
|
| |||||||||||||||
894,559 | ||||||||||||||||
Auto Manufacturers 0.2% |
| |||||||||||||||
Ford Motor Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 01/15/43 | 175 | 164,408 | ||||||||||||
Sr. Unsec’d. Notes | 5.291 | 12/08/46 | 95 | 94,782 | ||||||||||||
General Motors Co., | ||||||||||||||||
Sr. Unsec’d. Notes(a) | 4.875 | 10/02/23 | 155 | 165,372 | ||||||||||||
Sr. Unsec’d. Notes | 6.250 | 10/02/43 | 135 | 148,681 | ||||||||||||
Sr. Unsec’d. Notes | 6.600 | 04/01/36 | 80 | 91,977 | ||||||||||||
Harley-Davidson Financial Services, Inc., Gtd. Notes, 144A, MTN | 2.850 | 01/15/21 | 565 | 569,713 | ||||||||||||
|
| |||||||||||||||
1,234,933 | ||||||||||||||||
Banks 2.3% |
| |||||||||||||||
Bank of America Corp., | ||||||||||||||||
Jr. Sub. Notes | 8.125 | (b) | 12/29/49 | 380 | 396,150 | |||||||||||
Sr. Unsec’d. Notes | 7.625 | 06/01/19 | 265 | 295,419 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 3.300 | 01/11/23 | 250 | 251,552 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 4.100 | 07/24/23 | 130 | 136,171 |
See Notes to Financial Statements.
Prudential Balanced Fund | 49 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
Bank of America Corp., (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes, MTN | 4.125 | % | 01/22/24 | 620 | $ | 647,613 | ||||||||||
Sr. Unsec’d. Notes, MTN | 4.443 | (b) | 01/20/48 | 470 | 473,038 | |||||||||||
Sub. Notes, MTN | 4.450 | 03/03/26 | 365 | 374,324 | ||||||||||||
Bank of New York Mellon Corp. (The), Sr. Unsec’d. Notes, MTN | 2.200 | 08/16/23 | 720 | 691,240 | ||||||||||||
Barclays PLC (United Kingdom), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.375 | 01/12/26 | 200 | 202,670 | ||||||||||||
Sr. Unsec’d. Notes | 4.950 | 01/10/47 | 200 | 199,783 | ||||||||||||
Citigroup, Inc., | ||||||||||||||||
Jr. Sub. Notes | 5.950 | (b) | 12/31/49 | 280 | 291,900 | |||||||||||
Jr. Sub. Notes | 6.125 | (b) | 12/31/49 | 150 | 158,250 | |||||||||||
Jr. Sub. Notes | 6.250 | (b) | 12/31/49 | 105 | 113,269 | |||||||||||
Sr. Unsec’d. Notes | 3.700 | 01/12/26 | 200 | 200,186 | ||||||||||||
Sr. Unsec’d. Notes | 8.125 | 07/15/39 | 200 | 293,533 | ||||||||||||
Sub. Notes | 4.400 | 06/10/25 | 540 | 550,215 | ||||||||||||
Sub. Notes | 4.450 | 09/29/27 | 195 | 197,348 | ||||||||||||
Sub. Notes | 4.750 | 05/18/46 | 55 | 54,333 | ||||||||||||
Deutsche Bank AG (Germany), Sr. Unsec’d. Notes, GMTN | 3.375 | 05/12/21 | 220 | 221,335 | ||||||||||||
Discover Bank, Sr. Unsec’d. Notes | 4.250 | 03/13/26 | 315 | 323,632 | ||||||||||||
Goldman Sachs Group, Inc. (The), | ||||||||||||||||
Jr. Sub. Notes | 5.375 | (b) | 12/31/49 | 265 | 270,962 | |||||||||||
Sr. Unsec’d. Notes | 3.750 | 02/25/26 | 50 | 50,321 | ||||||||||||
Sr. Unsec’d. Notes | 3.850 | 01/26/27 | 410 | 412,000 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 01/24/22 | 250 | 281,220 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 4.800 | 07/08/44 | 400 | 422,396 | ||||||||||||
Sub. Notes | 6.750 | 10/01/37 | 275 | 339,333 | ||||||||||||
Huntington Bancshares, Inc., Sr. Unsec’d. Notes | 2.600 | 08/02/18 | 195 | 196,736 | ||||||||||||
JPMorgan Chase & Co., | ||||||||||||||||
Jr. Sub. Notes | 7.900 | (b) | 04/29/49 | 300 | 310,875 | |||||||||||
Sr. Unsec’d. Notes | 2.950 | 10/01/26 | 210 | 199,660 | ||||||||||||
Sr. Unsec’d. Notes | 3.200 | 06/15/26 | 750 | 728,217 | ||||||||||||
Sr. Unsec’d. Notes | 5.400 | 01/06/42 | 150 | 174,827 | ||||||||||||
Sub. Notes | 3.875 | 09/10/24 | 90 | 91,222 | ||||||||||||
Sub. Notes | 4.950 | 06/01/45 | 205 | 215,980 | ||||||||||||
Lloyds Bank PLC (United Kingdom), Gtd. Notes, 144A, MTN | 5.800 | 01/13/20 | 195 | 213,023 | ||||||||||||
Morgan Stanley, | ||||||||||||||||
Jr. Sub. Notes | 5.450 | (b) | 12/31/49 | 125 | 127,263 | |||||||||||
Sr. Unsec’d. Notes | 4.375 | 01/22/47 | 545 | 545,395 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 3.750 | 02/25/23 | 45 | 46,472 |
See Notes to Financial Statements.
50 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
Morgan Stanley, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 3.875 | % | 01/27/26 | 370 | $ | 374,921 | ||||||||||
Sr. Unsec’d. Notes, MTN | 5.625 | 09/23/19 | 285 | 307,741 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 6.375 | 07/24/42 | 120 | 154,062 | ||||||||||||
Sr. Unsec’d. Notes, Series G, GMTN | 5.500 | 07/28/21 | 60 | 66,537 | ||||||||||||
Nordea Bank AB (Sweden), Sr. Unsec’d. Notes, 144A, MTN | 1.875 | 09/17/18 | 260 | 259,991 | ||||||||||||
Northern Trust Corp., Sub. Notes | 3.950 | 10/30/25 | 30 | 31,645 | ||||||||||||
State Street Corp., Jr. Sub. Notes | 5.250 | (b) | 12/31/49 | 190 | 199,025 | |||||||||||
Sumitomo Mitsui Banking Corp. (Japan), Gtd. Notes | 2.450 | 01/10/19 | 250 | 251,885 | ||||||||||||
US Bancorp, Sub. Notes, MTN | 2.950 | 07/15/22 | 130 | 131,242 | ||||||||||||
|
| |||||||||||||||
12,474,912 | ||||||||||||||||
Beverages 0.1% |
| |||||||||||||||
Anheuser-Busch InBev Finance, Inc. (Belgium), | ||||||||||||||||
Gtd. Notes | 4.000 | 01/17/43 | 120 | 113,587 | ||||||||||||
Gtd. Notes | 4.700 | 02/01/36 | 190 | 201,013 | ||||||||||||
Gtd. Notes | 4.900 | 02/01/46 | 50 | 54,036 | ||||||||||||
|
| |||||||||||||||
368,636 | ||||||||||||||||
Biotechnology 0.1% |
| |||||||||||||||
Amgen, Inc., Sr. Unsec’d. Notes | 4.663 | 06/15/51 | 374 | 374,232 | ||||||||||||
Gilead Sciences, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.150 | 03/01/47 | 10 | 9,326 | ||||||||||||
Sr. Unsec’d. Notes | 5.650 | 12/01/41 | 20 | 22,972 | ||||||||||||
|
| |||||||||||||||
406,530 | ||||||||||||||||
Building Materials 0.1% |
| |||||||||||||||
Griffon Corp., Gtd. Notes | 5.250 | 03/01/22 | 65 | 65,000 | ||||||||||||
Owens Corning, Inc., Gtd. Notes | 4.200 | 12/15/22 | 90 | 94,139 | ||||||||||||
Standard Industries, Inc., Sr. Unsec’d. Notes, 144A(c) | 5.375 | 11/15/24 | 120 | 121,574 | ||||||||||||
|
| |||||||||||||||
280,713 | ||||||||||||||||
Chemicals 0.1% |
| |||||||||||||||
CF Industries, Inc., Gtd. Notes | 5.375 | 03/15/44 | 90 | 78,525 | ||||||||||||
Dow Chemical Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.625 | 10/01/44 | 10 | 10,256 | ||||||||||||
Sr. Unsec’d. Notes | 9.400 | 05/15/39 | 67 | 105,644 | ||||||||||||
Mosaic Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.450 | 11/15/33 | 55 | 57,695 | ||||||||||||
Sr. Unsec’d. Notes | 5.625 | 11/15/43 | 140 | 144,149 |
See Notes to Financial Statements.
Prudential Balanced Fund | 51 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Chemicals (cont’d.) |
| |||||||||||||||
Union Carbide Corp., Sr. Unsec’d. Notes | 7.500 | % | 06/01/25 | 100 | $ | 122,274 | ||||||||||
|
| |||||||||||||||
518,543 | ||||||||||||||||
Commercial Services 0.3% |
| |||||||||||||||
Duke University, Unsec’d. Notes | 3.299 | 10/01/46 | 130 | 115,203 | ||||||||||||
ERAC USA Finance LLC, | ||||||||||||||||
Gtd. Notes, 144A | 2.700 | 11/01/23 | 820 | 785,922 | ||||||||||||
Gtd. Notes, 144A(c) | 6.375 | 10/15/17 | 296 | 303,015 | ||||||||||||
Gtd. Notes, 144A(c) | 7.000 | 10/15/37 | 20 | 25,278 | ||||||||||||
President and Fellows of Harvard College, Unsec’d. Notes | 3.300 | 07/15/56 | 270 | 249,549 | ||||||||||||
United Rentals North America, Inc., Gtd. Notes | 5.875 | 09/15/26 | 65 | 67,762 | ||||||||||||
|
| |||||||||||||||
1,546,729 | ||||||||||||||||
Computers 0.2% |
| |||||||||||||||
Apple, Inc., Sr. Unsec’d. Notes | 3.250 | 02/23/26 | 330 | 333,363 | ||||||||||||
Diamond 1 Finance Corp./Diamond 2 Finance Corp., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 3.480 | 06/01/19 | 145 | 148,583 | ||||||||||||
Sr. Sec’d. Notes, 144A | 4.420 | 06/15/21 | 120 | 125,489 | ||||||||||||
Hewlett Packard Enterprise Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.450 | (b) | 10/05/17 | 470 | 471,372 | |||||||||||
Sr. Unsec’d. Notes | 2.850 | (b) | 10/05/18 | 90 | 91,085 | |||||||||||
Seagate HDD Cayman, Gtd. Notes | 3.750 | 11/15/18 | 90 | 92,250 | ||||||||||||
|
| |||||||||||||||
1,262,142 | ||||||||||||||||
Diversified Financial Services 0.3% |
| |||||||||||||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust (Netherlands), Gtd. Notes | 3.750 | 05/15/19 | 150 | 154,020 | ||||||||||||
Bear Stearns Cos. LLC (The), | ||||||||||||||||
Gtd. Notes | 6.400 | 10/02/17 | 90 | 92,163 | ||||||||||||
Gtd. Notes | 7.250 | 02/01/18 | 220 | 229,927 | ||||||||||||
GE Capital International Funding Co., Gtd. Notes | 2.342 | 11/15/20 | 500 | 502,163 | ||||||||||||
Jefferies Group LLC, Sr. Unsec’d. Notes | 6.500 | 01/20/43 | 65 | 70,508 | ||||||||||||
Lehman Brothers Holdings, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes(e) | 5.250 | 02/06/12 | 345 | 22,425 | ||||||||||||
Sr. Unsec’d. Notes(e) | 6.875 | 05/02/18 | 100 | 6,610 | ||||||||||||
Navient Corp., Sr. Unsec’d. Notes, MTN | 8.450 | 06/15/18 | 90 | 95,850 | ||||||||||||
Private Export Funding Corp., | ||||||||||||||||
U.S. Gov’t. Gtd. Notes, Series GG | 2.450 | 07/15/24 | 65 | 63,597 | ||||||||||||
U.S. Gov’t. Gtd. Notes, Series NN | 3.250 | 06/15/25 | 145 | 149,306 | ||||||||||||
|
| |||||||||||||||
1,386,569 |
See Notes to Financial Statements.
52 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Electric 0.5% |
| |||||||||||||||
Baltimore Gas & Electric Co., Sr. Unsec’d. Notes | 6.350 | % | 10/01/36 | 115 | $ | 148,618 | ||||||||||
Berkshire Hathaway Energy Co., Sr. Unsec’d. Notes | 6.125 | 04/01/36 | 120 | 149,811 | ||||||||||||
Black Hills Corp., Sr. Unsec’d. Notes | 2.500 | 01/11/19 | 150 | 150,741 | ||||||||||||
CenterPoint Energy Houston Electric LLC, | ||||||||||||||||
Gen. Ref. Mtg. | 2.400 | 09/01/26 | 170 | 159,918 | ||||||||||||
Gen. Ref. Mtg. | 6.950 | 03/15/33 | 120 | 160,948 | ||||||||||||
Dominion Resources, Inc., Jr. Sub. Notes | 4.104 | 04/01/21 | 400 | 417,207 | ||||||||||||
DPL, Inc., Sr. Unsec’d. Notes | 7.250 | 10/15/21 | 200 | 213,240 | ||||||||||||
Duke Energy Carolinas LLC, First Mortgage | 6.050 | 04/15/38 | 55 | 70,279 | ||||||||||||
Duke Energy Corp., Sr. Unsec’d. Notes | 2.650 | 09/01/26 | 210 | 195,660 | ||||||||||||
El Paso Electric Co., Sr. Unsec’d. Notes | 6.000 | 05/15/35 | 135 | 154,974 | ||||||||||||
Eversource Energy, Sr. Unsec’d. Notes | 4.500 | 11/15/19 | 90 | 95,535 | ||||||||||||
FirstEnergy Corp., Sr. Unsec’d. Notes | 2.750 | 03/15/18 | 180 | 180,657 | ||||||||||||
FirstEnergy Transmission LLC, Sr. Unsec’d. Notes, 144A | 5.450 | 07/15/44 | 50 | 54,615 | ||||||||||||
Florida Power & Light Co., First Mortgage | 5.950 | 10/01/33 | 60 | 74,200 | ||||||||||||
Iberdrola International BV (Spain), Gtd. Notes | 6.750 | 09/15/33 | 30 | 35,151 | ||||||||||||
Niagara Mohawk Power Corp., Sr. Unsec’d. Notes, 144A | 4.881 | 08/15/19 | 100 | 106,687 | ||||||||||||
NRG Energy, Inc., Gtd. Notes | 7.250 | 05/15/26 | 120 | 123,600 | ||||||||||||
Public Service Co. of Colorado, First Mortgage | 4.300 | 03/15/44 | 35 | 36,719 | ||||||||||||
Public Service Co. of New Mexico, Sr. Unsec’d. Notes | 7.950 | 05/15/18 | 55 | 58,604 | ||||||||||||
Public Service Electric & Gas Co., Sr. Sec’d. Notes, MTN | 5.800 | 05/01/37 | 125 | 154,699 | ||||||||||||
Xcel Energy, Inc., Sr. Unsec’d. Notes | 4.800 | 09/15/41 | 105 | 107,632 | ||||||||||||
|
| |||||||||||||||
2,849,495 | ||||||||||||||||
Entertainment 0.0% |
| |||||||||||||||
GLP Capital LP/GLP Financing II, Inc., Gtd. Notes | 4.375 | 11/01/18 | 150 | 153,938 | ||||||||||||
Environmental Control 0.0% |
| |||||||||||||||
Clean Harbors, Inc., Gtd. Notes | 5.250 | 08/01/20 | 125 | 127,223 | ||||||||||||
Food 0.2% |
| |||||||||||||||
Kellogg Co., Sr. Unsec’d. Notes(a) | 3.250 | 04/01/26 | 760 | 742,900 | ||||||||||||
Kraft Heinz Foods Co., | ||||||||||||||||
Gtd. Notes | 3.000 | 06/01/26 | 220 | 206,743 | ||||||||||||
Gtd. Notes | 4.375 | 06/01/46 | 60 | 56,304 | ||||||||||||
Gtd. Notes | 5.000 | 07/15/35 | 100 | 103,858 | ||||||||||||
|
| |||||||||||||||
1,109,805 | ||||||||||||||||
Forest Products & Paper 0.1% |
| |||||||||||||||
Georgia-Pacific LLC, Gtd. Notes, 144A(c) | 5.400 | 11/01/20 | 40 | 43,952 | ||||||||||||
International Paper Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 11/15/41 | 30 | 34,730 | ||||||||||||
Sr. Unsec’d. Notes | 7.300 | 11/15/39 | 175 | 225,906 | ||||||||||||
|
| |||||||||||||||
304,588 |
See Notes to Financial Statements.
Prudential Balanced Fund | 53 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Gas 0.0% |
| |||||||||||||||
Dominion Gas Holdings LLC, Sr. Unsec’d. Notes | 4.800 | % | 11/01/43 | 10 | $ | 10,510 | ||||||||||
NiSource Finance Corp., | ||||||||||||||||
Gtd. Notes | 4.800 | 02/15/44 | 40 | 42,047 | ||||||||||||
Gtd. Notes | 5.450 | 09/15/20 | 70 | 76,653 | ||||||||||||
|
| |||||||||||||||
129,210 | ||||||||||||||||
Healthcare-Products 0.2% |
| |||||||||||||||
Abbott Laboratories, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.000 | 09/15/18 | 605 | 605,689 | ||||||||||||
Sr. Unsec’d. Notes | 2.900 | 11/30/21 | 465 | 467,034 | ||||||||||||
Becton Dickinson and Co., Sr. Unsec’d. Notes | 3.734 | 12/15/24 | 65 | 66,909 | ||||||||||||
Medtronic, Inc., Gtd. Notes | 4.375 | 03/15/35 | 174 | 182,407 | ||||||||||||
|
| |||||||||||||||
1,322,039 | ||||||||||||||||
Healthcare-Services 0.3% |
| |||||||||||||||
Anthem, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.625 | 05/15/42 | 45 | 45,716 | ||||||||||||
Sr. Unsec’d. Notes | 4.650 | 01/15/43 | 30 | 30,561 | ||||||||||||
Ascension Health, Sr. Unsec’d. Notes | 3.945 | 11/15/46 | 245 | 238,555 | ||||||||||||
Cigna Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 03/15/41 | 50 | 60,665 | ||||||||||||
Sr. Unsec’d. Notes | 6.150 | 11/15/36 | 140 | 169,184 | ||||||||||||
Fresenius Medical Care U.S. Finance II, Inc. (Germany), Gtd. Notes, 144A | 4.125 | 10/15/20 | 175 | 176,925 | ||||||||||||
HCA, Inc., | ||||||||||||||||
Sr. Sec’d. Notes | 4.250 | 10/15/19 | 55 | 56,925 | ||||||||||||
Sr. Sec’d. Notes | 4.750 | 05/01/23 | 200 | 208,500 | ||||||||||||
Sr. Sec’d. Notes | 5.250 | 04/15/25 | 100 | 106,250 | ||||||||||||
Laboratory Corp. of America Holdings, Sr. Unsec’d. Notes | 3.200 | 02/01/22 | 20 | 20,091 | ||||||||||||
Providence St. Joseph Health Obligated Group, Unsec’d. Notes | 2.746 | 10/01/26 | 50 | 47,639 | ||||||||||||
UnitedHealth Group, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.625 | 07/15/35 | 60 | 65,414 | ||||||||||||
Sr. Unsec’d. Notes | 6.000 | 06/15/17 | 60 | 60,570 | ||||||||||||
Sr. Unsec’d. Notes | 6.625 | 11/15/37 | 80 | 106,468 | ||||||||||||
Sr. Unsec’d. Notes | 6.875 | 02/15/38 | 95 | 129,127 | ||||||||||||
|
| |||||||||||||||
1,522,590 | ||||||||||||||||
Home Builders 0.0% |
| |||||||||||||||
D.R. Horton, Inc., Gtd. Notes | 3.625 | 02/15/18 | 150 | 151,450 |
See Notes to Financial Statements.
54 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Housewares 0.1% |
| |||||||||||||||
Newell Brands, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.200 | % | 04/01/26 | 100 | $ | 104,074 | ||||||||||
Sr. Unsec’d. Notes | 6.250 | 04/15/18 | 300 | 314,206 | ||||||||||||
|
| |||||||||||||||
418,280 | ||||||||||||||||
Insurance 0.4% |
| |||||||||||||||
Allied World Assurance Co. Holdings Ltd., Gtd. Notes | 5.500 | 11/15/20 | 80 | 87,368 | ||||||||||||
American International Group, Inc., Sr. Unsec’d. Notes | 4.500 | 07/16/44 | 125 | 119,285 | ||||||||||||
AXIS Specialty Finance LLC, Gtd. Notes | 5.875 | 06/01/20 | 160 | 175,997 | ||||||||||||
Berkshire Hathaway, Inc., Sr. Unsec’d. Notes | 3.125 | 03/15/26 | 100 | 99,904 | ||||||||||||
Chubb Corp. (The), Gtd. Notes | 6.375 | (b) | 04/15/37 | 210 | 203,175 | |||||||||||
Chubb INA Holdings, Inc., Gtd. Notes | 4.350 | 11/03/45 | 15 | 15,835 | ||||||||||||
Hartford Financial Services Group, Inc. (The), Sr. Unsec’d. Notes, MTN | 6.000 | 01/15/19 | 90 | 96,240 | ||||||||||||
Liberty Mutual Group, Inc., Gtd. Notes, 144A | 7.000 | 03/15/34 | 180 | 221,335 | ||||||||||||
Lincoln National Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 6.300 | 10/09/37 | 110 | 132,516 | ||||||||||||
Sr. Unsec’d. Notes | 8.750 | 07/01/19 | 22 | 25,113 | ||||||||||||
Markel Corp., Sr. Unsec’d. Notes | 5.000 | 03/30/43 | 25 | 25,450 | ||||||||||||
New York Life Insurance Co., Sub. Notes, 144A | 6.750 | 11/15/39 | 110 | 148,706 | ||||||||||||
Northwestern Mutual Life Insurance Co. (The), Sub. Notes, 144A | 6.063 | 03/30/40 | 60 | 76,084 | ||||||||||||
Ohio National Financial Services, Inc., Sr. Unsec’d. Notes, 144A | 6.375 | 04/30/20 | 105 | 115,024 | ||||||||||||
Pacific Life Insurance Co., Sub. Notes, 144A | 9.250 | 06/15/39 | 140 | 217,618 | ||||||||||||
Principal Financial Group, Inc., Gtd. Notes | 4.625 | 09/15/42 | 15 | 15,854 | ||||||||||||
Progressive Corp. (The), Jr. Sub. Notes | 6.700 | (b) | 06/15/37 | 110 | 108,625 | |||||||||||
Teachers Insurance & Annuity Association of America, Sub. Notes, 144A | 6.850 | 12/16/39 | 240 | 317,240 | ||||||||||||
Unum Group, Sr. Unsec’d. Notes | 5.625 | 09/15/20 | 50 | 55,012 | ||||||||||||
W.R. Berkley Corp., Sr. Unsec’d. Notes | 6.150 | 08/15/19 | 90 | 97,385 | ||||||||||||
|
| |||||||||||||||
2,353,766 | ||||||||||||||||
Lodging 0.2% |
| |||||||||||||||
Marriott International, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.125 | 06/15/26 | 455 | 438,420 | ||||||||||||
Sr. Unsec’d. Notes | 3.250 | 09/15/22 | 130 | 131,146 | ||||||||||||
Sr. Unsec’d. Notes | 6.750 | 05/15/18 | 500 | 526,678 | ||||||||||||
Wyndham Worldwide Corp., Sr. Unsec’d. Notes | 2.500 | 03/01/18 | 60 | 60,289 | ||||||||||||
|
| |||||||||||||||
1,156,533 |
See Notes to Financial Statements.
Prudential Balanced Fund | 55 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Machinery-Diversified 0.1% |
| |||||||||||||||
Case New Holland Industrial, Inc. (United Kingdom), Gtd. Notes | 7.875 | % | 12/01/17 | 125 | $ | 129,375 | ||||||||||
Xylem, Inc., Sr. Unsec’d. Notes | 4.875 | 10/01/21 | 160 | 173,706 | ||||||||||||
|
| |||||||||||||||
303,081 | ||||||||||||||||
Media 0.5% |
| |||||||||||||||
21st Century Fox America, Inc., Gtd. Notes | 7.625 | 11/30/28 | 125 | 164,716 | ||||||||||||
AMC Networks, Inc., Gtd. Notes | 5.000 | 04/01/24 | 215 | 215,000 | ||||||||||||
Cablevision Systems Corp., Sr. Unsec’d. Notes | 8.625 | 09/15/17 | 125 | 128,438 | ||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec’d. Notes, 144A | 5.375 | 05/01/25 | 120 | 123,150 | ||||||||||||
Charter Communications Operating LLC/Charter Communications Op, | ||||||||||||||||
Sr. Sec’d. Notes | 6.384 | 10/23/35 | 110 | 125,043 | ||||||||||||
Sr. Sec’d. Notes | 6.484 | 10/23/45 | 172 | 198,030 | ||||||||||||
Comcast Corp., | ||||||||||||||||
Gtd. Notes | 6.450 | 03/15/37 | 35 | 44,577 | ||||||||||||
Gtd. Notes | 6.950 | 08/15/37 | 65 | 87,204 | ||||||||||||
Grupo Televisa SAB (Mexico), Sr. Unsec’d. Notes | 5.000 | 05/13/45 | 200 | 182,371 | ||||||||||||
Historic TW, Inc., Gtd. Notes | 9.150 | 02/01/23 | 100 | 128,297 | ||||||||||||
Time Warner Cable LLC, | ||||||||||||||||
Sr. Sec’d. Notes | 5.500 | 09/01/41 | 140 | 143,577 | ||||||||||||
Sr. Sec’d. Notes | 5.850 | 05/01/17 | 310 | 310,952 | ||||||||||||
Time Warner Cos., Inc., Gtd. Notes | 7.250 | 10/15/17 | 160 | 164,849 | ||||||||||||
Time Warner, Inc., | ||||||||||||||||
Gtd. Notes | 3.800 | 02/15/27 | 180 | 178,037 | ||||||||||||
Gtd. Notes | 6.200 | 03/15/40 | 25 | 28,551 | ||||||||||||
Gtd. Notes | 6.250 | 03/29/41 | 30 | 34,451 | ||||||||||||
Viacom, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 06/15/43 | 55 | 49,223 | ||||||||||||
Sr. Unsec’d. Notes | 5.250 | 04/01/44 | 65 | 63,750 | ||||||||||||
Videotron Ltd. (Canada), Gtd. Notes | 5.000 | 07/15/22 | 150 | 156,562 | ||||||||||||
|
| |||||||||||||||
2,526,778 | ||||||||||||||||
Mining 0.2% |
| |||||||||||||||
Barrick North America Finance LLC (Canada), Gtd. Notes | 5.750 | 05/01/43 | 280 | 324,487 | ||||||||||||
BHP Billiton Finance USA Ltd. (Australia), | ||||||||||||||||
Gtd. Notes | 5.000 | 09/30/43 | 140 | 156,778 | ||||||||||||
Gtd. Notes, 144A | 6.250 | (b) | 10/19/75 | 65 | 70,281 | |||||||||||
Goldcorp, Inc. (Canada), Sr. Unsec’d. Notes | 3.625 | 06/09/21 | 110 | 113,150 | ||||||||||||
Southern Copper Corp. (Peru), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 04/23/45 | 10 | 10,369 | ||||||||||||
Sr. Unsec’d. Notes | 7.500 | 07/27/35 | 95 | 115,671 | ||||||||||||
|
| |||||||||||||||
790,736 |
See Notes to Financial Statements.
56 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Miscellaneous Manufacturing 0.1% |
| |||||||||||||||
Actuant Corp., Gtd. Notes | 5.625 | % | 06/15/22 | 160 | $ | 164,200 | ||||||||||
General Electric Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.125 | 10/09/42 | 15 | 15,279 | ||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.000 | 08/07/19 | 172 | 188,931 | ||||||||||||
Sub. Notes, MTN | 5.300 | 02/11/21 | 100 | 110,733 | ||||||||||||
|
| |||||||||||||||
479,143 | ||||||||||||||||
Multi-National 0.1% |
| |||||||||||||||
Corp. Andina de Fomento (Supranational Bank), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.000 | 05/10/19 | 180 | 179,549 | ||||||||||||
Sr. Unsec’d. Notes | 2.125 | 09/27/21 | 175 | 172,183 | ||||||||||||
North American Development Bank (Supranational Bank), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.400 | 10/26/22 | 150 | 146,907 | ||||||||||||
Sr. Unsec’d. Notes | 4.375 | 02/11/20 | 100 | 106,115 | ||||||||||||
|
| |||||||||||||||
604,754 | ||||||||||||||||
Oil & Gas 0.4% |
| |||||||||||||||
Anadarko Petroleum Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 6.450 | 09/15/36 | 200 | 236,058 | ||||||||||||
Sr. Unsec’d. Notes | 6.600 | 03/15/46 | 40 | 48,389 | ||||||||||||
Apache Corp., Sr. Unsec’d. Notes | 5.100 | 09/01/40 | 300 | 308,682 | ||||||||||||
BP Capital Markets PLC (United Kingdom), Gtd. Notes | 4.500 | 10/01/20 | 70 | 75,128 | ||||||||||||
ConocoPhillips Co., Gtd. Notes | 4.950 | 03/15/26 | 225 | 249,733 | ||||||||||||
ConocoPhillips Holding Co., Sr. Unsec’d. Notes | 6.950 | 04/15/29 | 150 | 193,822 | ||||||||||||
Devon Energy Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.000 | 06/15/45 | 15 | 15,050 | ||||||||||||
Sr. Unsec’d. Notes | 5.600 | 07/15/41 | 35 | 37,014 | ||||||||||||
Devon Financing Co. LLC, Gtd. Notes | 7.875 | 09/30/31 | 200 | 258,315 | ||||||||||||
EOG Resources, Inc., Sr. Unsec’d. Notes | 3.900 | 04/01/35 | 120 | 114,871 | ||||||||||||
Helmerich & Payne International Drilling Co., Gtd. Notes | 4.650 | 03/15/25 | 240 | 249,509 | ||||||||||||
Nabors Industries, Inc., Gtd. Notes | 4.625 | 09/15/21 | 140 | 141,225 | ||||||||||||
Occidental Petroleum Corp., Sr. Unsec’d. Notes | 3.000 | 02/15/27 | 80 | 76,961 | ||||||||||||
Sunoco LP/Sunoco Finance Corp., Gtd. Notes | 6.250 | 04/15/21 | 159 | 162,180 | ||||||||||||
|
| |||||||||||||||
2,166,937 | ||||||||||||||||
Oil & Gas Services 0.1% |
| |||||||||||||||
Schlumberger Holdings Corp., Sr. Unsec’d. Notes, 144A | 4.000 | 12/21/25 | 345 | 359,551 | ||||||||||||
Packaging & Containers 0.1% |
| |||||||||||||||
WestRock RKT Co., | ||||||||||||||||
Gtd. Notes | 4.000 | 03/01/23 | 550 | 567,685 | ||||||||||||
Gtd. Notes | 4.900 | 03/01/22 | 95 | 102,871 | ||||||||||||
|
| |||||||||||||||
670,556 |
See Notes to Financial Statements.
Prudential Balanced Fund | 57 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Pharmaceuticals 0.2% |
| |||||||||||||||
AbbVie, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.200 | % | 05/14/26 | 170 | $ | 163,417 | ||||||||||
Sr. Unsec’d. Notes | 3.600 | 05/14/25 | 145 | 145,028 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 05/14/35 | 235 | 233,380 | ||||||||||||
Actavis Funding SCS, | ||||||||||||||||
Gtd. Notes | 3.800 | 03/15/25 | 115 | 116,049 | ||||||||||||
Gtd. Notes | 4.550 | 03/15/35 | 265 | 265,720 | ||||||||||||
Actavis, Inc., Gtd. Notes | 6.125 | 08/15/19 | 75 | 81,605 | ||||||||||||
Teva Pharmaceutical Finance Netherlands III BV (Israel), | ||||||||||||||||
Gtd. Notes | 3.150 | 10/01/26 | 80 | 73,721 | ||||||||||||
Gtd. Notes | 4.100 | 10/01/46 | 25 | 21,535 | ||||||||||||
Zoetis, Inc., Sr. Unsec’d. Notes | 4.700 | 02/01/43 | 20 | 20,380 | ||||||||||||
|
| |||||||||||||||
1,120,835 | ||||||||||||||||
Pipelines 0.2% |
| |||||||||||||||
Energy Transfer Partners LP, Sr. Unsec’d. Notes | 4.900 | 03/15/35 | 35 | 33,495 | ||||||||||||
Enterprise Products Operating LLC, | ||||||||||||||||
Gtd. Notes | 3.700 | 02/15/26 | 55 | 55,015 | ||||||||||||
Gtd. Notes | 3.950 | 02/15/27 | 115 | 117,261 | ||||||||||||
Gtd. Notes | 4.850 | 03/15/44 | 185 | 187,106 | ||||||||||||
MPLX LP, Sr. Unsec’d. Notes | 5.200 | 03/01/47 | 20 | 20,125 | ||||||||||||
ONEOK Partners LP, Gtd. Notes | 6.200 | 09/15/43 | 205 | 229,523 | ||||||||||||
Phillips 66 Partners LP, Sr. Unsec’d. Notes | 3.550 | 10/01/26 | 360 | 343,854 | ||||||||||||
Spectra Energy Partners LP, Sr. Unsec’d. Notes | 3.375 | 10/15/26 | 165 | 157,067 | ||||||||||||
|
| |||||||||||||||
1,143,446 | ||||||||||||||||
Real Estate 0.0% |
| |||||||||||||||
Prologis LP, Gtd. Notes | 6.875 | 03/15/20 | 11 | 12,260 | ||||||||||||
Real Estate Investment Trusts (REITs) 0.0% |
| |||||||||||||||
Simon Property Group LP, Sr. Unsec’d. Notes | 3.375 | 03/15/22 | 30 | 30,806 | ||||||||||||
Welltower, Inc., Sr. Unsec’d. Notes | 4.250 | 04/01/26 | 160 | 164,721 | ||||||||||||
|
| |||||||||||||||
195,527 | ||||||||||||||||
Retail 0.2% |
| |||||||||||||||
CVS Health Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.125 | 07/20/45 | 105 | 115,846 | ||||||||||||
Sr. Unsec’d. Notes | 5.300 | 12/05/43 | 35 | 39,126 | ||||||||||||
Home Depot, Inc. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.000 | 04/01/26 | 85 | 84,852 | ||||||||||||
Sr. Unsec’d. Notes | 4.200 | 04/01/43 | 110 | 113,346 |
See Notes to Financial Statements.
58 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Retail (cont’d.) |
| |||||||||||||||
L Brands, Inc., Gtd. Notes | 6.625 | % | 04/01/21 | 125 | $ | 136,388 | ||||||||||
Lowe’s Cos., Inc., Sr. Unsec’d. Notes | 6.500 | 03/15/29 | 60 | 77,839 | ||||||||||||
Macy’s Retail Holdings, Inc., Gtd. Notes | 3.875 | 01/15/22 | 45 | 44,737 | ||||||||||||
McDonald’s Corp., Sr. Unsec’d. Notes, MTN | 3.700 | 01/30/26 | 320 | 327,295 | ||||||||||||
Sally Holdings LLC/Sally Capital, Inc., Gtd. Notes | 5.625 | 12/01/25 | 170 | 169,787 | ||||||||||||
Target Corp., Sr. Unsec’d. Notes | 3.500 | 07/01/24 | 60 | 61,445 | ||||||||||||
|
| |||||||||||||||
1,170,661 | ||||||||||||||||
Semiconductors 0.1% |
| |||||||||||||||
Broadcom Corp./Broadcom Cayman Finance Ltd., Gtd. Notes, 144A | 3.875 | 01/15/27 | 345 | 346,819 | ||||||||||||
NXP BV/NXP Funding LLC (Netherlands), Gtd. Notes, 144A | 5.750 | 03/15/23 | 200 | 211,000 | ||||||||||||
|
| |||||||||||||||
557,819 | ||||||||||||||||
Software 0.2% |
| |||||||||||||||
Fidelity National Information Services, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.850 | 10/15/18 | 200 | 202,761 | ||||||||||||
Sr. Unsec’d. Notes | 3.625 | 10/15/20 | 270 | 280,576 | ||||||||||||
Microsoft Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 02/12/55 | 80 | 75,541 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 02/06/57 | 240 | 247,076 | ||||||||||||
Oracle Corp., Sr. Unsec’d. Notes | 4.300 | 07/08/34 | 145 | 150,506 | ||||||||||||
|
| |||||||||||||||
956,460 | ||||||||||||||||
Telecommunications 0.5% |
| |||||||||||||||
AT&T, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.400 | 05/15/25 | 320 | 309,096 | ||||||||||||
Sr. Unsec’d. Notes | 4.500 | 05/15/35 | 45 | 42,481 | ||||||||||||
Sr. Unsec’d. Notes | 4.550 | 03/09/49 | 33 | 29,419 | ||||||||||||
Sr. Unsec’d. Notes | 4.750 | 05/15/46 | 130 | 121,301 | ||||||||||||
Sr. Unsec’d. Notes | 4.800 | 06/15/44 | 235 | 220,292 | ||||||||||||
Sr. Unsec’d. Notes | 5.150 | 03/15/42 | 200 | 198,432 | ||||||||||||
Sr. Unsec’d. Notes | 5.250 | 03/01/37 | 60 | 61,167 | ||||||||||||
Sr. Unsec’d. Notes | 5.350 | 09/01/40 | 4 | 4,110 | ||||||||||||
Sr. Unsec’d. Notes | 5.700 | 03/01/57 | 50 | 51,654 | ||||||||||||
British Telecommunications PLC (United Kingdom), Sr. Unsec’d. Notes | 9.125 | (b) | 12/15/30 | 50 | 74,795 | |||||||||||
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, Sr. Sec’d. Notes, 144A | 3.360 | 09/20/21 | 275 | 274,313 | ||||||||||||
Telefonos de Mexico SAB de CV (Mexico), Gtd. Notes | 5.500 | 11/15/19 | 40 | 43,304 |
See Notes to Financial Statements.
Prudential Balanced Fund | 59 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Telecommunications (cont’d.) |
| |||||||||||||||
Verizon Communications, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.522 | % | 09/15/48 | 285 | $ | 258,201 | ||||||||||
Sr. Unsec’d. Notes | 4.672 | 03/15/55 | 472 | 421,496 | ||||||||||||
Sr. Unsec’d. Notes | 5.012 | 08/21/54 | 523 | 496,159 | ||||||||||||
|
| |||||||||||||||
2,606,220 | ||||||||||||||||
Transportation 0.1% |
| |||||||||||||||
Burlington Northern Santa Fe LLC, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.450 | 03/15/43 | 100 | 103,734 | ||||||||||||
Sr. Unsec’d. Notes | 6.700 | 08/01/28 | 135 | 174,708 | ||||||||||||
CSX Corp., Sr. Unsec’d. Notes | 6.150 | 05/01/37 | 170 | 208,907 | ||||||||||||
Norfolk Southern Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.903 | 02/15/23 | 97 | 96,506 | ||||||||||||
Sr. Unsec’d. Notes | 5.590 | 05/17/25 | 20 | 22,725 | ||||||||||||
|
| |||||||||||||||
606,580 | ||||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS |
| 48,825,245 | ||||||||||||||
|
| |||||||||||||||
ASSET-BACKED SECURITIES 5.6% |
| |||||||||||||||
Collateralized Loan Obligations 2.7% |
| |||||||||||||||
ALM VIII Ltd. (Cayman Islands), Series 2013-8A, Class A1R, 144A | 2.513 | (b) | 10/15/28 | 250 | 250,365 | |||||||||||
Anchorage Capital CLO 3 Ltd. (Cayman Islands), Series 2014-3A, Class A1R, 144A | 2.469 | (b) | 04/28/26 | 300 | 300,764 | |||||||||||
Anchorage Capital CLO Ltd. (Cayman Islands), Series 2016-8A, Class A1, 144A | 2.689 | (b) | 07/28/28 | 500 | 503,666 | |||||||||||
Atlas Senior Loan Fund V Ltd. (Cayman Islands), Series 2014-1A, Class AR, 144A | 2.452 | (b) | 07/16/26 | 250 | 250,481 | |||||||||||
Atrium X (Cayman Islands), Series 2015-10A, Class A, 144A | 2.143 | (b) | 07/16/25 | 250 | 250,230 | |||||||||||
Avery Point V CLO Ltd. (Cayman Islands), Series 2014-5A, Class A, 144A | 2.483 | (b) | 07/17/26 | 250 | 250,687 | |||||||||||
Battalion CLO VIII Ltd. (Cayman Islands), Series 2015-8A, Class A1, 144A | 2.554 | (b) | 04/18/27 | 250 | 250,134 | |||||||||||
Benefit Street Partners CLO VII Ltd. (Cayman Islands), Series 2015-VIIA, Class A1A, 144A | 2.554 | (b) | 07/18/27 | 750 | 753,811 | |||||||||||
Brookside Mill CLO Ltd. (Cayman Islands), Series 2013-1A, Class A1, 144A | 2.173 | (b) | 04/17/25 | 500 | 500,428 | |||||||||||
Burnham Park CLO Ltd. (Cayman Islands), Series 2016-1A, Class A, 144A | 2.318 | (b) | 10/20/29 | 250 | 250,116 |
See Notes to Financial Statements.
60 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||||
Collateralized Loan Obligations (cont’d.) |
| |||||||||||||||
Carlyle Global Market Strategies CLO Ltd., Series 2012-4A, Class AR, 144A | 2.480 | %(b) | 01/20/29 | 250 | $ | 251,289 | ||||||||||
Carlyle US CLO Ltd. (Cayman Islands), Series 2017-1A, Class A1B, 144A(d) | — | (b)(o) | 04/20/31 | 250 | 250,104 | |||||||||||
Catamaran CLO Ltd. (Cayman Islands), Series 2014-1A, Class A1, 144A | 2.580 | (b) | 04/20/26 | 350 | 350,511 | |||||||||||
Eaton Vance CLO Ltd. (Cayman Islands), Series 2014-1A, Class AR, 144A | 2.232 | (b) | 07/15/26 | 250 | 249,691 | |||||||||||
ECP CLO Ltd. (Cayman Islands), Series 2014-6A, Class A1A, 144A | 2.473 | (b) | 07/15/26 | 250 | 250,208 | |||||||||||
Flagship VII Ltd. (Cayman Islands), Series 2013-7A, Class A1, 144A | 2.500 | (b) | 01/20/26 | 300 | 300,013 | |||||||||||
ICG US CLO Ltd. (Cayman Islands), Series 2014-1A, Class A1, 144A(c) | 2.180 | (b) | 04/20/26 | 400 | 399,302 | |||||||||||
Jefferson Mill CLO Ltd. (Cayman Islands), Series 2015-1A, Class A1, 144A | 2.530 | (b) | 07/20/27 | 350 | 349,874 | |||||||||||
KVK CLO Ltd. (Cayman Islands), Series 2014-1A, Class A1R, 144A | 2.339 | (b) | 05/15/26 | 250 | 249,986 | |||||||||||
Madison Park Funding XI Ltd. (Cayman Islands), Series 2013-11A, Class A1A, 144A | 2.321 | (b) | 10/23/25 | 750 | 750,881 | |||||||||||
Magnetite IX Ltd. (Cayman Islands), Series 2014-9A, Class A1, 144A(c) | 2.458 | (b) | 07/25/26 | 600 | 600,871 | |||||||||||
Mountain View CLO Ltd. (Cayman Islands), Series 2014-1A, Class AR, 144A | 2.304 | (b) | 10/15/26 | 250 | 248,194 | |||||||||||
MP CLO III Ltd. (Cayman Islands), Series 2013-1A, Class A, 144A | 2.210 | (b) | 04/20/25 | 250 | 249,886 | |||||||||||
Ocean Trails CLO IV (Cayman Islands), Series 2013-4A, Class A, 144A | 2.334 | (b) | 08/13/25 | 300 | 300,389 | |||||||||||
OZLM Funding II Ltd. (Cayman Islands), Series 2012-2A, Class A1R, 144A | 2.479 | (b) | 10/30/27 | 250 | 250,050 | |||||||||||
OZLM Funding IV Ltd. (Cayman Islands), Series 2013-4A, Class A1, 144A | 2.191 | (b) | 07/22/25 | 250 | 250,165 | |||||||||||
OZLM XV Ltd. (Cayman Islands), Series 2016-15A, Class A1, 144A | 2.406 | (b) | 01/20/29 | 750 | 753,532 | |||||||||||
Palmer Square CLO Ltd. (Cayman Islands), Series 2015-2A, Class A1A, 144A | 2.530 | (b) | 07/20/27 | 250 | 251,012 | |||||||||||
Regatta IV Funding Ltd. (Cayman Islands), Series 2014-1A, Class B, 144A | 3.048 | (b) | 07/25/26 | 250 | 250,204 | |||||||||||
Regatta VIII Funding Ltd. (Cayman Islands), Series 2016-1A, Class A1, 144A | 2.672 | (b) | 12/20/28 | 250 | 250,420 | |||||||||||
Seneca Park CLO Ltd. (Cayman Islands), Series 2014-1A, Class A, 144A | 2.503 | (b) | 07/17/26 | 300 | 300,012 |
See Notes to Financial Statements.
Prudential Balanced Fund | 61 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||||
Collateralized Loan Obligations (cont’d.) |
| |||||||||||||||
Shackleton VI CLO (Cayman Islands), Series 2014-6A, Class A1, 144A | 2.503 | %(b) | 07/17/26 | 250 | $ | 250,405 | ||||||||||
Sheridan Square CLO Ltd. (Cayman Islands), Series 2013-1A, Class A1, 144A | 2.073 | (b) | 04/15/25 | 300 | 299,980 | |||||||||||
Sound Point CLO I Ltd. (Cayman Islands), Series 2012-1A, Class B, 144A | 3.730 | (b) | 10/20/23 | 250 | 250,504 | |||||||||||
THL Credit Wind River CLO Ltd. (Cayman Islands), Series 2015-1A, Class A, 144A | 2.530 | (b) | 07/20/27 | 500 | 501,890 | |||||||||||
TIAA CLO I Ltd. (Cayman Islands), Series 2016-1A, Class A, 144A | 2.730 | (b) | 07/20/28 | 250 | 250,284 | |||||||||||
TICP CLO VI Ltd. (Cayman Islands), Series 2016-6A, Class A, 144A | 2.434 | (b) | 01/15/29 | 500 | 499,312 | |||||||||||
Trinitas CLO IV Ltd. (Cayman Islands), Series 2016-4A, Class A, 144A | 2.774 | (b) | 04/18/28 | 500 | 502,533 | |||||||||||
Trinitas CLO V Ltd. (Cayman Islands), Series 2016-5A, Class A, 144A | 2.738 | (b) | 10/25/28 | 500 | 502,189 | |||||||||||
Tyron Park CLO Ltd. (Cayman Islands), Series 2013-1A, Class A1, 144A | 2.143 | (b) | 07/15/25 | 300 | 300,163 | |||||||||||
Voya CLO Ltd. (Cayman Islands), Series 2013-1A, Class A1, 144A | 2.163 | (b) | 04/15/24 | 300 | 300,193 | |||||||||||
Wellfleet CLO Ltd. (Cayman Islands), Series 2016-2A, Class A1, 144A | 2.507 | (b) | 10/20/28 | 250 | 251,514 | |||||||||||
|
| |||||||||||||||
14,576,243 | ||||||||||||||||
Non-Residential Mortgage-Backed Securities 2.5% |
| |||||||||||||||
American Express Credit Account Master Trust, Series 2017-2, Class A | 1.362 | (b) | 09/15/24 | 1,000 | 1,006,292 | |||||||||||
AmeriCredit Automobile Receivables Trust, | 1.597 | (b) | 04/08/19 | 135 | 135,554 | |||||||||||
Series 2016-2, Class A2B | 1.547 | (b) | 10/08/19 | 304 | 304,692 | |||||||||||
Series 2016-3, Class A2B | 1.407 | (b) | 11/08/19 | 185 | 185,673 | |||||||||||
Series 2016-4, Class C | 2.410 | 07/08/22 | 200 | 198,173 | ||||||||||||
Avis Budget Rental Car Funding AESOP LLC, | 2.500 | 07/20/21 | 800 | 799,464 | ||||||||||||
Series 2015-2A, Class A, 144A | 2.630 | 12/20/21 | 400 | 400,406 | ||||||||||||
Chase Issuance Trust, Series 2017-A2, Class A | 1.291 | (b) | 03/15/24 | 400 | 400,969 | |||||||||||
Citibank Credit Card Issuance Trust, Series 2016-A3, Class A3 | 1.324 | (b) | 12/07/23 | 900 | 906,360 | |||||||||||
Discover Card Execution Note Trust, Series 2017-A1, Class A1 | 1.402 | (b) | 07/15/24 | 700 | 704,471 |
See Notes to Financial Statements.
62 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||||
Non-Residential Mortgage-Backed Securities (cont’d.) |
| |||||||||||||||
Enterprise Fleet Financing LLC, | 1.740 | % | 02/20/22 | 300 | $ | 299,355 | ||||||||||
Series 2017-1, Class A2, 144A | 2.130 | 07/20/22 | 500 | 500,479 | ||||||||||||
Ford Credit Auto Owner Trust, | 2.310 | 08/15/27 | 600 | 599,939 | ||||||||||||
Series 2016-2, Class A, 144A | 2.030 | 12/15/27 | 400 | 394,523 | ||||||||||||
Ford Credit Auto Owner Trust/Ford Credit, Series 2017-1, Class A, 144A | 2.620 | 08/15/28 | 1,100 | 1,105,840 | ||||||||||||
GMF Floorplan Owner Revolving Trust, | 1.412 | (b) | 05/15/20 | 200 | 200,555 | |||||||||||
Series 2016-1, Class A2, 144A(c) | 1.762 | (b) | 05/15/21 | 300 | 302,938 | |||||||||||
Hertz Vehicle Financing II LP, Series 2015-3A, Class A, 144A | 2.670 | 09/25/21 | 400 | 396,530 | ||||||||||||
Hertz Vehicle Financing LLC, Series 2016-1A, Class A, 144A | 2.320 | 03/25/20 | 400 | 398,456 | ||||||||||||
Navient Student Loan Trust, Series 2016-2, Class A1, 144A | 1.732 | (b) | 06/25/65 | 170 | 170,604 | |||||||||||
OneMain Direct Auto Receivables Trust, | 2.040 | 01/15/21 | 99 | 99,516 | ||||||||||||
Series 2017-1A, Class A, 144A | 2.160 | 10/15/20 | 1,200 | 1,198,708 | ||||||||||||
OneMain Financial Issuance Trust, Series 2015-2A, Class A, 144A | 2.570 | 07/18/25 | 500 | 501,012 | ||||||||||||
Santander Drive Auto Receivables Trust, Series 2016-2, Class A2B | 1.562 | (b) | 07/15/19 | 195 | 195,691 | |||||||||||
Sierra Timeshare Receivables Funding LLC, Series 2013-3A, Class A, 144A | 2.200 | 10/20/30 | 166 | 165,596 | ||||||||||||
SpringCastle America Funding LLC, Series 2016-AA, Class A, 144A | 3.050 | 04/25/29 | 348 | 349,796 | ||||||||||||
Springleaf Funding Trust, Series 2015-AA, Class A, 144A | 3.160 | 11/15/24 | 800 | 807,583 | ||||||||||||
Synchrony Credit Card Master Note Trust, Series 2015-3, Class A | 1.740 | 09/15/21 | 200 | 200,281 | ||||||||||||
Wells Fargo Dealer Floorplan Master Note Trust, Series 2015-1, Class A | 1.478 | (b) | 01/20/20 | 300 | 300,384 | |||||||||||
|
| |||||||||||||||
13,229,840 | ||||||||||||||||
Residential Mortgage-Backed Securities 0.4% |
| |||||||||||||||
CDC Mortgage Capital Trust, Series 2002-HE3, Class M1 | 2.632 | (b) | 03/25/33 | 31 | 29,607 | |||||||||||
CIT Mortgage Loan Trust, Series 2007-1, Class 1A, 144A | 2.332 | (b) | 10/25/37 | 463 | 459,708 |
See Notes to Financial Statements.
Prudential Balanced Fund | 63 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) |
| |||||||||||||||
Residential Mortgage-Backed Securities (cont’d.) |
| |||||||||||||||
Credit Suisse Mortgage Trust, Series 2016-16-RPL1, Class A1, 144A | 3.930 | %(b) | 12/25/46 | 815 | $ | 819,325 | ||||||||||
Credit-Based Asset Servicing and Securitization LLC, Series 2005-CB6, Class A3 | 3.776 | (b) | 07/25/35 | 56 | 53,753 | |||||||||||
CWABS, Inc., Asset-Backed Certificates, Series 2004-1, Class M1 | 1.732 | (b) | 03/25/34 | 241 | 233,384 | |||||||||||
Equity One Mortgage Pass-Through Trust, Series 2004-3, Class M1 | 4.742 | (b) | 07/25/34 | 52 | 49,618 | |||||||||||
Morgan Stanley ABS Capital I, Inc. Trust, Series 2004-NC1, Class M1 | 2.032 | (b) | 12/25/33 | 227 | 220,964 | |||||||||||
Morgan Stanley Dean Witter Capital I, Inc. Trust, Series 2002-HE1, Class M1 | 1.882 | (b) | 07/25/32 | 41 | 40,123 | |||||||||||
Series 2002-NC4, Class M1 | 2.257 | (b) | 09/25/32 | 64 | 61,202 | |||||||||||
RASC Trust, Series 2004-KS2, Class MI1 | 4.710 | (b) | 03/25/34 | 22 | 20,189 | |||||||||||
Securitized Asset Backed Receivables LLC Trust, Series 2004-OP1, Class M1 | 1.747 | (b) | 02/25/34 | 119 | 112,132 | |||||||||||
|
| |||||||||||||||
2,100,005 | ||||||||||||||||
|
| |||||||||||||||
TOTAL ASSET-BACKED SECURITIES |
| 29,906,088 | ||||||||||||||
|
| |||||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES 4.1% |
| |||||||||||||||
Citigroup Commercial Mortgage Trust, | 5.779 | (b) | 12/10/49 | 59 | 58,632 | |||||||||||
Series 2013-GC11, Class A3 | 2.815 | 04/10/46 | 100 | 100,536 | ||||||||||||
Series 2014-GC21, Class A4 | 3.575 | 05/10/47 | 420 | 434,128 | ||||||||||||
Series 2015-GC29, Class A3 | 2.935 | 04/10/48 | 200 | 196,760 | ||||||||||||
Series 2015-P1, Class A4 | 3.462 | 09/15/48 | 600 | 611,091 | ||||||||||||
COMM Mortgage Trust, | 2.929 | 03/10/46 | 200 | 201,538 | ||||||||||||
Series 2013-CR8, Class A4 | 3.334 | 06/10/46 | 600 | 616,752 | ||||||||||||
Series 2014-CR15, Class A2 | 2.928 | 02/10/47 | 400 | 406,977 | ||||||||||||
Series 2014-CR18, Class A4 | 3.550 | 07/15/47 | 400 | 410,895 | ||||||||||||
Series 2014-UBS3, Class A2 | 2.844 | 06/10/47 | 300 | 304,336 | ||||||||||||
Series 2014-UBS4, Class A4 | 3.420 | 08/10/47 | 700 | 710,972 | ||||||||||||
Series 2015-LC21, Class A3 | 3.445 | 07/10/48 | 700 | 711,161 | ||||||||||||
CSAIL Commercial Mortgage Trust, Series 2015-C2, Class A3 | 3.231 | 06/15/57 | 800 | 801,183 | ||||||||||||
Deutsche Bank JPMorgan Chase Mortgage Trust, Series 2016-C1, Class A3A | 3.015 | 05/10/49 | 800 | 788,892 | ||||||||||||
Fannie Mae-Aces, | ||||||||||||||||
Series 2014-M2, Class A2 | 3.513 | (b) | 12/25/23 | 375 | 395,604 | |||||||||||
Series 2015-M10, Class A2 | 3.092 | (b) | 04/25/27 | 800 | 803,145 |
See Notes to Financial Statements.
64 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) |
| |||||||||||||||
Fannie Mae-Aces, (cont’d.) |
| |||||||||||||||
Series 2015-M17, Class A2 | 2.940 | %(b) | 11/25/25 | 500 | $ | 500,138 | ||||||||||
Series 2017-M1, Class A2 | 2.417 | (b) | 10/25/26 | 300 | 286,349 | |||||||||||
FHLMC Multifamily Structured Pass-Through Certificates, | 1.439 | (b) | 05/25/22 | 2,813 | 169,837 | |||||||||||
Series K021, Class X1, IO | 1.478 | (b) | 06/25/22 | 850 | 53,795 | |||||||||||
Series K025, Class X1, IO | 0.880 | (b) | 10/25/22 | 1,442 | 57,565 | |||||||||||
Series K030, Class A2 | 3.250 | (b) | 04/25/23 | 300 | 312,037 | |||||||||||
Series K034, Class A2 | 3.531 | (b) | 07/25/23 | 400 | 422,259 | |||||||||||
Series K049, Class A2 | 3.010 | 07/25/25 | 1,000 | 1,013,904 | ||||||||||||
Series K055, Class X1, IO | 1.368 | (b) | 03/25/26 | 2,330 | 230,578 | |||||||||||
Series K710, Class X1, IO | 1.757 | (b) | 05/25/19 | 2,310 | 67,296 | |||||||||||
Series K711, Class X1, IO | 1.691 | (b) | 07/25/19 | 2,360 | 70,459 | |||||||||||
Series KS03, Class A4 | 3.161 | (b) | 05/25/25 | 300 | 302,635 | |||||||||||
GS Mortgage Securities Trust, Series 2015-GC28, Class A4 | 3.136 | 02/10/48 | 400 | 399,104 | ||||||||||||
JPMorgan Chase Commercial Mortgage Securities Trust, | 3.139 | 06/15/45 | 127 | 128,388 | ||||||||||||
Series 2012-LC9, Class A4 | 2.611 | 12/15/47 | 200 | 198,665 | ||||||||||||
Series 2013-C10, Class A4 | 2.875 | 12/15/47 | 500 | 502,232 | ||||||||||||
Series 2013-C16, Class A2 | 3.070 | 12/15/46 | 491 | 498,777 | ||||||||||||
Series 2013-LC11, Class A4 | 2.694 | 04/15/46 | 200 | 201,593 | ||||||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, | 2.863 | 12/15/48 | 200 | 201,501 | ||||||||||||
Series 2015-C23, Class A3 | 3.451 | 07/15/50 | 600 | 610,822 | ||||||||||||
Series 2015-C25, Class A4 | 3.372 | 10/15/48 | 700 | 708,202 | ||||||||||||
Series 2016-C29, Class A3 | 3.058 | 05/15/49 | 800 | 789,637 | ||||||||||||
Morgan Stanley Capital I Trust, Series 2016-UB11, Class A3 | 2.531 | 08/15/49 | 1,300 | 1,225,637 | ||||||||||||
UBS-Barclays Commercial Mortgage Trust, | 2.792 | 12/10/45 | 200 | 201,355 | ||||||||||||
Series 2013-C5, Class A3 | 2.920 | 03/10/46 | 500 | 503,924 | ||||||||||||
Series 2013-C6, Class A3 | 2.971 | 04/10/46 | 200 | 202,261 | ||||||||||||
Wachovia Bank Commercial Mortgage Trust, | ||||||||||||||||
Series 2007-C34, Class A1A | 5.608 | (b) | 05/15/46 | 812 | 818,618 | |||||||||||
Wells Fargo Commercial Mortgage Trust, | ||||||||||||||||
Series 2015-NXS2, Class A4 | 3.498 | 07/15/58 | 800 | 814,389 | ||||||||||||
Series 2016-C33, Class A3 | 3.162 | 03/15/59 | 900 | 891,249 | ||||||||||||
Series 2016-C34, Class A3 | 2.834 | 06/15/49 | 800 | 769,680 | ||||||||||||
Series 2016-NXS6, Class A3 | 2.642 | 11/15/49 | 1,500 | 1,424,174 | ||||||||||||
|
| |||||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES |
| 22,129,662 | ||||||||||||||
|
|
See Notes to Financial Statements.
Prudential Balanced Fund | 65 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS 0.5% |
| |||||||||||||||
Alabama 0.0% |
| |||||||||||||||
Alabama Economic Settlement Auth. Rev., Taxable BP Settlement, Ser. B | 4.263 | % | 09/15/32 | 35 | $ | 35,751 | ||||||||||
California 0.1% |
| |||||||||||||||
Bay Area Toll Authority, Taxable, Revenue Bonds, BABs | 6.263 | 04/01/49 | 220 | 300,408 | ||||||||||||
California Educational Facilities Authority, Stanford Univ., Revenue Bonds, Ser. U-7 | 5.000 | 06/01/46 | 100 | 129,231 | ||||||||||||
California St., GO, BABs | 7.300 | 10/01/39 | 210 | 294,834 | ||||||||||||
California St., Tax. Var. Purp., GO, BABs | 7.500 | 04/01/34 | 15 | 21,222 | ||||||||||||
|
| |||||||||||||||
745,695 | ||||||||||||||||
Illinois 0.1% |
| |||||||||||||||
City of Chicago IL, O’Hare Int’l. Arpt., Revenue Bonds, Ser. B, BABs | 6.395 | 01/01/40 | 160 | 210,131 | ||||||||||||
New Jersey 0.1% |
| |||||||||||||||
New Jersey State Turnpike Auth. Rev., Tax. Issuer Subs., Revenue Bonds, Ser. F, BABs | 7.414 | 01/01/40 | 165 | 237,455 | ||||||||||||
New York 0.1% |
| |||||||||||||||
New York City Trans. Fin. Auth., Tax. Future, Tax. Sec’d. Rev., Ser. C-2, BABs | 5.767 | 08/01/36 | 190 | 230,561 | ||||||||||||
Ohio 0.0% |
| |||||||||||||||
Ohio State University Gen., Revenue Bonds, Taxable, Ser. C, BABs | 4.910 | 06/01/40 | 65 | 74,950 | ||||||||||||
Ohio State Water Development Auth. Wtr. Poll. Ctl. Rev., Taxable Ld. Fd. B-2 Wtr. Quality, BABs | 4.879 | 12/01/34 | 45 | 50,938 | ||||||||||||
|
| |||||||||||||||
125,888 | ||||||||||||||||
Oregon 0.0% |
| |||||||||||||||
Oregon State Department of Trans. Hwy. User Tax Rev., Taxable Sub. Lien, Ser. A, BABs | 5.834 | 11/15/34 | 70 | 88,141 | ||||||||||||
Pennsylvania 0.0% |
| |||||||||||||||
Pennsylvania Turnpike Commission Rev., Ser. B, BABs | 5.511 | 12/01/45 | 80 | 95,582 | ||||||||||||
Tennessee 0.0% |
| |||||||||||||||
Metropolitan Government of Nashville & Davidson County Convention Center Auth., Taxable Sub. B, Direct Pay, Revenue Bonds, BABs | 6.731 | 07/01/43 | 160 | 209,210 |
See Notes to Financial Statements.
66 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
MUNICIPAL BONDS (Continued) |
| |||||||||||||||
Texas 0.1% |
| |||||||||||||||
University of Texas System (The), Revenue Bonds, | ||||||||||||||||
Ser. F, Rfdg. | 5.000 | % | 08/15/47 | 230 | $ | 292,774 | ||||||||||
Washington 0.0% |
| |||||||||||||||
Central Puget Sound Regional Transit Authority, Revenue Bonds, Ser. S-1-Green Bonds | 5.000 | 11/01/46 | 150 | 191,902 | ||||||||||||
|
| |||||||||||||||
TOTAL MUNICIPAL BONDS |
| 2,463,090 | ||||||||||||||
|
| |||||||||||||||
NON-CORPORATE FOREIGN AGENCIES 0.6% |
| |||||||||||||||
Bank Nederlandse Gemeenten NV (Netherlands), Sr. Unsec’d. Notes, 144A | 2.625 | 04/28/21 | 230 | 233,927 | ||||||||||||
Comision Federal de Electricidad (Mexico), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 02/23/27 | 200 | 200,500 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.875 | 01/15/24 | 200 | 205,700 | ||||||||||||
Dexia Credit Local SA (France), Gov’t. Liquid Gtd. Notes, 144A | 1.875 | 09/15/21 | 250 | 241,134 | ||||||||||||
Export-Import Bank of Korea (South Korea), Sr. Unsec’d. Notes | 5.125 | 06/29/20 | 100 | 108,215 | ||||||||||||
Japan Bank for International Cooperation (Japan), Gov’t. Gtd. Notes | 2.250 | 02/24/20 | 200 | 200,284 | ||||||||||||
Japan Finance Organization for Municipalities (Japan), Sr. Unsec’d. Notes, 144A, MTN | 2.125 | 10/25/23 | 200 | 191,338 | ||||||||||||
Mexico City Airport Trust (Mexico), Sr. Sec’d. Notes, 144A | 4.250 | 10/31/26 | 200 | 202,750 | ||||||||||||
Petroleos Mexicanos (Mexico), | ||||||||||||||||
Gtd. Notes | 5.500 | 01/21/21 | 120 | 127,020 | ||||||||||||
Gtd. Notes | 6.500 | 06/02/41 | 170 | 169,320 | ||||||||||||
Gtd. Notes, MTN | 6.875 | 08/04/26 | 100 | 111,000 | ||||||||||||
Gtd. Notes, 144A | 5.375 | 03/13/22 | 70 | 73,325 | ||||||||||||
Russian Agricultural Bank OJSC Via RSHB Capital SA (Russia), Sr. Unsec’d. Notes, 144A | 6.299 | 05/15/17 | 200 | 200,852 | ||||||||||||
Sinopec Group Overseas Development 2014 Ltd. (China), Gtd. Notes, 144A | 1.750 | 04/10/17 | 250 | 249,998 | ||||||||||||
Sinopec Group Overseas Development 2015 Ltd. (China), Gtd. Notes, 144A | 2.500 | 04/28/20 | 200 | 199,100 | ||||||||||||
State Grid Overseas Investment 2014 Ltd. (China), Gtd. Notes, 144A | 2.750 | 05/07/19 | 200 | 202,396 | ||||||||||||
Svensk Exportkredit AB (Sweden), Sr. Unsec’d. Notes, GMTN(a) | 1.750 | 03/10/21 | 380 | 374,413 | ||||||||||||
|
| |||||||||||||||
TOTAL NON-CORPORATE FOREIGN AGENCIES |
| 3,291,272 | ||||||||||||||
|
|
See Notes to Financial Statements.
Prudential Balanced Fund | 67 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS 0.5% |
| |||||||||||||||
Belgium Government International Bond (Belgium), Sr. Unsec’d. Notes, 144A, EMTN | 1.125 | % | 08/03/19 | 200 | $ | 197,238 | ||||||||||
Colombia Government International Bond (Colombia), Sr. Unsec’d. Notes | 4.375 | 07/12/21 | 200 | 212,000 | ||||||||||||
Hungary Government International Bond (Hungary), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 03/25/19 | 90 | 93,366 | ||||||||||||
Sr. Unsec’d. Notes | 6.375 | 03/29/21 | 280 | 315,350 | ||||||||||||
Sr. Unsec’d. Notes | 7.625 | 03/29/41 | 120 | 174,137 | ||||||||||||
Indonesia Government International Bond (Indonesia), Sr. Unsec’d. Notes, RegS | 4.875 | 05/05/21 | 200 | 213,717 | ||||||||||||
Mexico Government International Bond (Mexico), | ||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 10/02/23 | 76 | 78,280 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 4.750 | 03/08/44 | 118 | 114,755 | ||||||||||||
Panama Government International Bond (Panama), Sr. Unsec’d. Notes | 5.200 | 01/30/20 | 100 | 108,000 | ||||||||||||
Poland Government International Bond (Poland), Sr. Unsec’d. Notes | 3.000 | 03/17/23 | 160 | 159,720 | ||||||||||||
Province of Alberta Canada (Canada), Sr. Unsec’d. Notes | 1.900 | 12/06/19 | 200 | 200,147 | ||||||||||||
Province of Manitoba (Canada), Sr. Unsec’d. Notes | 2.125 | 06/22/26 | 100 | 93,501 | ||||||||||||
Province of Ontario Canada (Canada), Sr. Unsec’d. Notes | 2.400 | 02/08/22 | 150 | 150,565 | ||||||||||||
Province of Quebec (Canada), Unsec’d. Notes, MTN | 7.140 | (b) | 02/27/26 | 135 | 172,369 | |||||||||||
Romanian Government International Bond (Romania), Sr. Unsec’d. Notes, MTN, RegS | 6.125 | 01/22/44 | 50 | 61,430 | ||||||||||||
Saudi Government International Bond (Saudi Arabia), Sr. Unsec’d. Notes, 144A, MTN | 2.375 | 10/26/21 | 205 | 201,413 | ||||||||||||
Turkey Government International Bond (Turkey), Sr. Unsec’d. Notes | 7.000 | 06/05/20 | 190 | 207,315 | ||||||||||||
|
| |||||||||||||||
TOTAL SOVEREIGN BONDS |
| 2,753,303 | ||||||||||||||
|
| |||||||||||||||
RESIDENTIAL MORTGAGE-BACKED SECURITIES 1.2% |
| |||||||||||||||
Alternative Loan Trust, Series 2004-18CB, Class 3A1 | 5.250 | 09/25/19 | 23 | 23,038 | ||||||||||||
Banc of America Alternative Loan Trust, Series 2005-12, Class 3CB1 | 6.000 | 01/25/36 | 196 | 181,053 | ||||||||||||
Banc of America Mortgage Trust, | ||||||||||||||||
Series 2005-A, Class 2A1 | 3.514 | (b) | 02/25/35 | 34 | 34,151 | |||||||||||
Series 2005-B, Class 2A1 | 3.605 | (b) | 03/25/35 | 40 | 38,572 | |||||||||||
Bayview Opportunity Master Fund IVb Trust, Series 2017-CRT1, Class M, 144A | 3.132 | (b) | 10/25/28 | 217 | 216,933 | |||||||||||
Chase Mortgage Finance Trust, Series 2007-A1, Class 1A5 | 3.275 | (b) | 02/25/37 | 102 | 102,389 |
See Notes to Financial Statements.
68 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
RESIDENTIAL MORTGAGE-BACKED SECURITIES (Continued) |
| |||||||||||||||
CIM Trust, | ||||||||||||||||
Series 2017-2, Class A1, 144A | 2.780 | %(b) | 12/25/57 | 370 | $ | 367,236 | ||||||||||
Series 2017-3, Class A3, 144A(d) | 2.977 | (b) | 01/25/57 | 800 | 798,500 | |||||||||||
Credit Suisse Mortgage Trust, Series 2016-12R, Class 1A1, 144A | 3.271 | (b) | 02/28/47 | 543 | 546,721 | |||||||||||
Fannie Mae Connecticut Avenue Securities, | ||||||||||||||||
Series 2014-C014, Class 1M1 | 2.932 | (b) | 11/25/24 | 45 | 45,190 | |||||||||||
Series 2016-C02, Class 1M1 | 3.132 | (b) | 09/25/28 | 151 | 152,742 | |||||||||||
Series 2016-C03, Class 2M1 | 3.182 | (b) | 10/25/28 | 171 | 173,538 | |||||||||||
Series 2016-C04, Class 1M1 | 2.432 | (b) | 01/25/29 | 221 | 223,564 | |||||||||||
Series 2017-C01, Class 1M2 | 4.532 | (b) | 07/25/29 | 20 | 20,242 | |||||||||||
Freddie Mac Structured Agency Credit Risk Debt Notes, | ||||||||||||||||
Series 2015-DNA1, Class M1 | 1.882 | (b) | 10/25/27 | 478 | 478,667 | |||||||||||
Series 2016-DNA1, Class M1 | 2.432 | (b) | 07/25/28 | 322 | 323,623 | |||||||||||
Series 2016-DNA3, Class M2 | 2.982 | (b) | 12/25/28 | 375 | 382,760 | |||||||||||
Series 2016-HQA2, Class M2 | 3.232 | (b) | 11/25/28 | 250 | 257,843 | |||||||||||
Series 2016-HQA4, Class M2 | 2.282 | (b) | 04/25/29 | 290 | 290,000 | |||||||||||
Series 2017-DNA1, Class M1 | 2.182 | (b) | 07/25/29 | 476 | 477,441 | |||||||||||
JPMorgan Mortgage Trust, Series 2007-A1, Class 4A1 | 3.198 | (b) | 07/25/35 | 53 | 53,082 | |||||||||||
LSTAR Securities Investment Trust (Cayman Islands), | ||||||||||||||||
Series 2015-6, Class A, 144A(d) | 2.784 | (b) | 05/01/20 | 373 | 371,288 | |||||||||||
Series 2015-8, Class A1, 144A | 2.784 | (b) | 08/01/20 | 142 | 141,749 | |||||||||||
Series 2015-10, Class A1, 144A | 2.784 | (b) | 11/01/20 | 53 | 53,413 | |||||||||||
Series 2016-3, Class A, 144A | 2.784 | (b) | 09/01/21 | 270 | 269,410 | |||||||||||
Series 2017-1, Class A, 144A | 2.784 | (b) | 01/01/22 | 479 | 478,141 | |||||||||||
MASTR Alternative Loan Trust, | ||||||||||||||||
Series 2003-8, Class 4A1 | 7.000 | 12/25/33 | 1 | 1,081 | ||||||||||||
Series 2004-4, Class 4A1 | 5.000 | 04/25/19 | 19 | 19,260 | ||||||||||||
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 4A3 | 3.379 | (b) | 02/25/34 | 61 | 61,678 | |||||||||||
Washington Mutual Mortgage Pass-Through Certificates, Series 2005-1, Class 3A | 5.000 | 03/25/20 | 12 | 12,288 | ||||||||||||
|
| |||||||||||||||
TOTAL RESIDENTIAL MORTGAGE-BACKED SECURITIES |
| 6,595,593 | ||||||||||||||
|
| |||||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS 9.1% |
| |||||||||||||||
Federal Home Loan Bank | 5.500 | 07/15/36 | 135 | 178,847 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 07/01/43 | 464 | 461,567 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | TBA | 250 | 262,227 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 02/01/41 | 479 | 504,825 | ||||||||||||
Federal Home Loan Mortgage Corp., MTN | 1.500 | 01/17/20 | 260 | 259,586 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | 06/01/29 | 319 | 328,078 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.000 | TBA | 1,000 | 990,781 | ||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | 08/01/26 | 296 | 309,680 |
See Notes to Financial Statements.
Prudential Balanced Fund | 69 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
| |||||||||||||||
Federal Home Loan Mortgage Corp. | 3.500 | % | TBA | 1,500 | $ | 1,533,984 | ||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 06/01/26 | 105 | 110,808 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 09/01/26 | 89 | 93,740 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 11/01/39 | 315 | 331,374 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 04/01/42 | 473 | 497,722 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.000 | 10/01/45 | 387 | 406,307 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.500 | TBA | 1,000 | 1,071,504 | ||||||||||||
Federal Home Loan Mortgage Corp. | 4.500 | 10/01/39 | 286 | 307,120 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.000 | 07/01/18 | 13 | 13,099 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.000 | 07/01/19 | 24 | 24,495 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.000 | 01/01/21 | 23 | 24,334 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.000 | 04/01/34 | 23 | 25,190 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.000 | 05/01/34 | 48 | 52,854 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.000 | 10/01/35 | 73 | 79,712 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.500 | 12/01/33 | 43 | 48,034 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.500 | 05/01/34 | 22 | 25,064 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.500 | 07/01/34 | 110 | 123,967 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.500 | 05/01/37 | 18 | 19,730 | ||||||||||||
Federal Home Loan Mortgage Corp. | 5.500 | 10/01/37 | 37 | 40,466 | ||||||||||||
Federal Home Loan Mortgage Corp. | 6.000 | 01/01/34 | 80 | 90,188 | ||||||||||||
Federal Home Loan Mortgage Corp. | 7.000 | 10/01/31 | — | (g) | 61 | |||||||||||
Federal Home Loan Mortgage Corp. | 7.000 | 10/01/31 | 1 | 910 | ||||||||||||
Federal Home Loan Mortgage Corp. | 7.000 | 05/01/32 | 35 | 38,349 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 08/01/30 | 1,251 | 1,283,873 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 02/01/31 | 448 | 459,652 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 01/01/43 | 1,452 | 1,447,619 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 08/01/42 | 401 | 412,560 | ||||||||||||
Federal National Mortgage Assoc. | 1.875 | 09/24/26 | 100 | 92,957 | ||||||||||||
Federal National Mortgage Assoc. | 2.000 | 08/01/31 | 386 | 376,116 | ||||||||||||
Federal National Mortgage Assoc. | 2.500 | TBA | 1,000 | 1,000,469 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | TBA | 1,000 | 1,023,843 | ||||||||||||
Federal National Mortgage Assoc.(h) | 3.000 | TBA | 2,000 | 2,050,655 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 11/01/36 | 488 | 493,322 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | TBA | 1,000 | 991,250 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 10/01/42 | 283 | 281,645 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 12/01/42 | 341 | 339,718 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 12/01/42 | 465 | 463,817 | ||||||||||||
Federal National Mortgage Assoc. | 3.000 | 07/01/43 | 782 | 779,784 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 06/01/39 | 192 | 197,361 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | TBA | 250 | 255,205 | ||||||||||||
Federal National Mortgage Assoc.(i) | 3.500 | 05/01/42 | 1,954 | 2,007,939 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 08/01/42 | 476 | 488,850 | ||||||||||||
Federal National Mortgage Assoc. | 3.500 | 04/01/43 | 828 | 851,179 |
See Notes to Financial Statements.
70 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
| |||||||||||||||
Federal National Mortgage Assoc. | 3.500 | % | 04/01/43 | 432 | $ | 443,623 | ||||||||||
Federal National Mortgage Assoc. | 4.000 | TBA | 2,500 | 2,622,265 | ||||||||||||
Federal National Mortgage Assoc. | 4.000 | 09/01/40 | 817 | 859,307 | ||||||||||||
Federal National Mortgage Assoc. | 4.000 | 04/01/42 | 1,187 | 1,250,019 | ||||||||||||
Federal National Mortgage Assoc. | 4.500 | 07/01/19 | 26 | 26,727 | ||||||||||||
Federal National Mortgage Assoc. | 4.500 | 10/01/33 | 49 | 53,028 | ||||||||||||
Federal National Mortgage Assoc. | 4.500 | 03/01/34 | 34 | 36,373 | ||||||||||||
Federal National Mortgage Assoc. | 4.500 | 09/01/39 | 242 | 260,075 | ||||||||||||
Federal National Mortgage Assoc. | 4.500 | 08/01/40 | 200 | 214,132 | ||||||||||||
Federal National Mortgage Assoc. | 4.500 | TBA | 1,500 | 1,608,281 | ||||||||||||
Federal National Mortgage Assoc. | 5.000 | 10/01/18 | 13 | 12,985 | ||||||||||||
Federal National Mortgage Assoc. | 5.000 | 07/01/35 | 43 | 47,547 | ||||||||||||
Federal National Mortgage Assoc. | 5.000 | 02/01/36 | 101 | 110,539 | ||||||||||||
Federal National Mortgage Assoc. | 5.000 | TBA | 2,000 | 2,185,331 | ||||||||||||
Federal National Mortgage Assoc. | 5.500 | 06/01/33 | 18 | 19,678 | ||||||||||||
Federal National Mortgage Assoc. | 5.500 | 08/01/33 | 27 | 30,495 | ||||||||||||
Federal National Mortgage Assoc. | 5.500 | 09/01/33 | 67 | 74,518 | ||||||||||||
Federal National Mortgage Assoc. | 5.500 | 09/01/33 | 94 | 105,685 | ||||||||||||
Federal National Mortgage Assoc. | 5.500 | 01/01/34 | 41 | 46,249 | ||||||||||||
Federal National Mortgage Assoc. | 5.500 | 01/01/34 | 53 | 58,979 | ||||||||||||
Federal National Mortgage Assoc. | 5.500 | 07/01/34 | 71 | 79,371 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 09/01/17 | 1 | 853 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 09/01/21 | 4 | 3,986 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 11/01/33 | 78 | 88,435 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 01/01/34 | 14 | 16,358 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 01/01/34 | 183 | 208,014 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 02/01/34 | 20 | 22,338 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 02/01/34 | 15 | 17,167 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 10/01/34 | 8 | 9,560 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 10/01/34 | 6 | 6,815 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 11/01/34 | 95 | 107,779 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 11/01/34 | 30 | 33,532 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 11/01/34 | 14 | 15,404 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 01/01/35 | 24 | 26,903 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 01/01/35 | 90 | 101,838 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 02/01/35 | 91 | 105,981 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 08/01/36 | 48 | 54,071 | ||||||||||||
Federal National Mortgage Assoc. | 6.000 | 08/01/38 | 9 | 10,291 | ||||||||||||
Federal National Mortgage Assoc. | 6.250 | 05/15/29 | 70 | 93,689 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 07/01/17 | 1 | 517 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 09/01/17 | 4 | 3,803 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 05/01/24 | 16 | 17,873 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 07/01/29 | 21 | 23,450 |
See Notes to Financial Statements.
Prudential Balanced Fund | 71 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
| |||||||||||||||
Federal National Mortgage Assoc. | 6.500 | % | 07/01/32 | 21 | $ | 22,860 | ||||||||||
Federal National Mortgage Assoc. | 6.500 | 09/01/32 | 5 | 5,627 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 04/01/33 | 19 | 22,019 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 01/01/34 | 40 | 45,259 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 01/01/34 | 14 | 15,827 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 10/01/36 | 34 | 39,331 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 09/01/37 | 113 | 126,258 | ||||||||||||
Federal National Mortgage Assoc. | 6.500 | 10/01/37 | 122 | 137,033 | ||||||||||||
Federal National Mortgage Assoc.(j) | 6.625 | 11/15/30 | 85 | 119,881 | ||||||||||||
Federal National Mortgage Assoc. | 7.000 | 06/01/32 | 20 | 22,121 | ||||||||||||
Federal National Mortgage Assoc.(j) | 7.125 | 01/15/30 | 380 | 548,089 | ||||||||||||
Federal National Mortgage Assoc. | 7.500 | 09/01/30 | 2 | 1,855 | ||||||||||||
Federal National Mortgage Assoc. | 8.000 | 12/01/23 | 2 | 2,528 | ||||||||||||
Federal National Mortgage Assoc. | 8.500 | 02/01/28 | 4 | 4,435 | ||||||||||||
Government National Mortgage Assoc. | 3.000 | TBA | 2,000 | 2,014,180 | ||||||||||||
Government National Mortgage Assoc. | 3.000 | 09/20/43 | 364 | 368,799 | ||||||||||||
Government National Mortgage Assoc. | 3.000 | 01/20/44 | 112 | 113,084 | ||||||||||||
Government National Mortgage Assoc. | 3.000 | 03/15/45 | 389 | 392,964 | ||||||||||||
Government National Mortgage Assoc. | 3.500 | 11/20/41 | 501 | 521,484 | ||||||||||||
Government National Mortgage Assoc. | 3.500 | 12/20/42 | 500 | 520,434 | ||||||||||||
Government National Mortgage Assoc. | 3.500 | TBA | 4,000 | 4,147,500 | ||||||||||||
Government National Mortgage Assoc. | 3.500 | 03/20/45 | 376 | 390,789 | ||||||||||||
Government National Mortgage Assoc. | 3.500 | 04/20/45 | 427 | 443,039 | ||||||||||||
Government National Mortgage Assoc. | 4.000 | 12/20/42 | 1,001 | 1,062,100 | ||||||||||||
Government National Mortgage Assoc. | 4.500 | 06/20/41 | 454 | 490,012 | ||||||||||||
Government National Mortgage Assoc. | 5.000 | 10/20/37 | 30 | 32,618 | ||||||||||||
Government National Mortgage Assoc. | 5.000 | 04/20/45 | 205 | 220,006 | ||||||||||||
Government National Mortgage Assoc. | 5.500 | 07/15/33 | 46 | 51,434 | ||||||||||||
Government National Mortgage Assoc. | 5.500 | 12/15/33 | 24 | 26,638 | ||||||||||||
Government National Mortgage Assoc. | 5.500 | 09/15/34 | 190 | 211,700 | ||||||||||||
Government National Mortgage Assoc. | 5.500 | 01/15/36 | 82 | 93,075 | ||||||||||||
Government National Mortgage Assoc. | 5.500 | 02/15/36 | 204 | 227,829 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 09/15/23 | 18 | 20,600 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 10/15/23 | 5 | 5,517 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 11/15/23 | 21 | 23,985 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 12/15/23 | 10 | 11,262 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 12/15/23 | 5 | 5,638 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 12/15/23 | 1 | 1,495 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 04/15/24 | 69 | 78,241 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 07/15/32 | 3 | 3,601 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 08/15/32 | 1 | 902 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 08/15/32 | 1 | 708 | ||||||||||||
Government National Mortgage Assoc. | 6.500 | 08/15/32 | 3 | 2,977 |
See Notes to Financial Statements.
72 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
| |||||||||||||||
Government National Mortgage Assoc. | 6.500 | % | 08/15/32 | 16 | $ | 18,293 | ||||||||||
Government National Mortgage Assoc. | 7.000 | 06/15/24 | 19 | 21,027 | ||||||||||||
Government National Mortgage Assoc. | 7.000 | 05/15/31 | 9 | 10,845 | ||||||||||||
Government National Mortgage Assoc. | 7.500 | 04/15/29 | 1 | 742 | ||||||||||||
Government National Mortgage Assoc. | 7.500 | 12/15/29 | 3 | 3,446 | ||||||||||||
Government National Mortgage Assoc. | 7.500 | 05/15/31 | 1 | 1,126 | ||||||||||||
Government National Mortgage Assoc. | 8.000 | 08/15/22 | 1 | 1,240 | ||||||||||||
Government National Mortgage Assoc. | 8.000 | 12/15/22 | 10 | 10,838 | ||||||||||||
Government National Mortgage Assoc. | 8.000 | 12/15/22 | 5 | 5,415 | ||||||||||||
Government National Mortgage Assoc. | 8.000 | 06/15/25 | 25 | 27,245 | ||||||||||||
Hashemite Kingdom of Jordan Government USAID Bond, U.S. Gov’t. Gtd. Notes | 2.578 | 06/30/22 | 575 | 585,585 | ||||||||||||
Hashemite Kingdom of Jordan Government USAID Bond, U.S. Gov’t. Gtd. Notes | 3.000 | 06/30/25 | 315 | 323,228 | ||||||||||||
Iraq Government USAID Bond, U.S. Gov’t. Gtd. Notes | 2.149 | 01/18/22 | 200 | 199,103 | ||||||||||||
Israel Government USAID Bond, U.S. Gov’t. Gtd. Notes | 5.500 | 12/04/23 | 30 | 35,652 | ||||||||||||
Residual Funding Corp. Strips Principal, Unsec’d. Notes, PO | 2.804 | (k) | 01/15/30 | 170 | 113,274 | |||||||||||
Tennessee Valley Authority, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.875 | 02/01/27 | 195 | 195,699 | ||||||||||||
Sr. Unsec’d. Notes | 7.125 | 05/01/30 | 90 | 128,985 | ||||||||||||
|
| |||||||||||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS |
| 48,943,758 | ||||||||||||||
|
| |||||||||||||||
U.S. TREASURY OBLIGATIONS 4.7% |
| |||||||||||||||
U.S. Treasury Bonds | 2.500 | 02/15/45 | 295 | 265,074 | ||||||||||||
U.S. Treasury Bonds | 2.875 | 11/15/46 | 515 | 499,691 | ||||||||||||
U.S. Treasury Bonds | 4.250 | 11/15/40 | 770 | 939,821 | ||||||||||||
U.S. Treasury Bonds | 4.750 | 02/15/41 | 300 | 392,754 | ||||||||||||
U.S. Treasury Bonds | 8.125 | 08/15/21 | 90 | 113,593 | ||||||||||||
U.S. Treasury Notes | 1.000 | 09/15/18 | 25 | 24,936 | ||||||||||||
U.S. Treasury Notes | 1.250 | 12/31/18 | 5 | 5,003 | ||||||||||||
U.S. Treasury Notes | 1.375 | 04/30/21 | 1,950 | 1,917,246 | ||||||||||||
U.S. Treasury Notes | 1.500 | 01/31/19 | 55 | 55,256 | ||||||||||||
U.S. Treasury Notes | 1.625 | 03/15/20 | 120 | 120,431 | ||||||||||||
U.S. Treasury Notes | 1.625 | 04/30/23 | 2,785 | 2,706,020 | ||||||||||||
U.S. Treasury Notes | 1.875 | 02/28/22 | 640 | 638,625 | ||||||||||||
U.S. Treasury Notes | 2.000 | 11/30/22 | 2,250 | 2,241,650 | ||||||||||||
U.S. Treasury Notes | 2.125 | 06/30/21 | 3,095 | 3,131,994 | ||||||||||||
U.S. Treasury Notes | 2.125 | 09/30/21 | 2,195 | 2,217,635 | ||||||||||||
U.S. Treasury Notes | 2.125 | 12/31/22 | 2,625 | 2,631,358 | ||||||||||||
U.S. Treasury Notes | 2.125 | 02/29/24 | 3,235 | 3,217,560 | ||||||||||||
U.S. Treasury Notes | 2.250 | 02/15/27 | 1,080 | 1,066,205 |
See Notes to Financial Statements.
Prudential Balanced Fund | 73 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. TREASURY OBLIGATIONS (Continued) |
| |||||||||||||||
U.S. Treasury Strips Coupon, IO | 2.972 | %(k) | 02/15/37 | 725 | $ | 399,034 | ||||||||||
U.S. Treasury Strips Coupon, IO | 2.404 | (k) | 08/15/21 | 735 | 675,332 | |||||||||||
U.S. Treasury Strips Coupon, IO | 2.502 | (k) | 11/15/30 | 640 | 439,731 | |||||||||||
U.S. Treasury Strips Coupon, IO | 2.752 | (k) | 08/15/30 | 605 | 419,163 | |||||||||||
U.S. Treasury Strips Coupon, IO | 2.783 | (k) | 08/15/29 | 200 | 143,191 | |||||||||||
U.S. Treasury Strips Coupon, IO | 2.878 | (k) | 05/15/31 | 200 | 134,972 | |||||||||||
U.S. Treasury Strips Coupon, IO | 3.042 | (k) | 11/15/35 | 400 | 230,628 | |||||||||||
U.S. Treasury Strips Coupon, IO | 3.202 | (k) | 08/15/40 | 400 | 192,517 | |||||||||||
U.S. Treasury Strips Principal, PO | 2.526 | (k) | 05/15/43 | 270 | 119,758 | |||||||||||
U.S. Treasury Strips Principal, PO | 2.543 | (k) | 02/15/45 | 230 | 96,558 | |||||||||||
U.S. Treasury Strips Principal, PO | 2.874 | (k) | 05/15/45 | 385 | 160,436 | |||||||||||
U.S. Treasury Strips Principal, PO | 3.597 | (k) | 05/15/44 | 450 | 193,949 | |||||||||||
|
| |||||||||||||||
TOTAL U.S. TREASURY OBLIGATIONS |
| 25,390,121 | ||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS |
| 512,697,653 | ||||||||||||||
|
| |||||||||||||||
SHORT-TERM INVESTMENTS 8.2% |
| |||||||||||||||
Shares | ||||||||||||||||
AFFILIATED MUTUAL FUNDS 8.1% |
| |||||||||||||||
Prudential Investment Portfolios 2 - Prudential Core Short-Term Bond Fund(l) | 2,222,123 | 20,621,298 | ||||||||||||||
Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund(l) | 19,422,878 | 19,422,878 | ||||||||||||||
Prudential Investment Portfolios 2 - Prudential Institutional Money Market Fund | 3,140,450 | 3,141,078 | ||||||||||||||
|
| |||||||||||||||
TOTAL AFFILIATED MUTUAL FUNDS |
| 43,185,254 | ||||||||||||||
|
| |||||||||||||||
Notional | ||||||||||||||||
OPTION PURCHASED* 0.0% |
| |||||||||||||||
Call Option |
| |||||||||||||||
10 Year U.S. Treasury Notes Futures, expiring 05/26/17, Strike Price $125.00 | 7,100 | 49,922 |
See Notes to Financial Statements.
74 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. TREASURY OBLIGATION 0.1% |
| |||||||||||||||
U.S. Treasury Bill | 0.751 | %(n) | 06/15/17 | 290 | $ | 289,576 | ||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS |
| 43,524,752 | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS, BEFORE OPTION WRITTEN 103.7% |
| 556,222,405 | ||||||||||||||
|
| |||||||||||||||
Notional Amount (000)# | ||||||||||||||||
OPTION WRITTEN* (0.0)% |
| |||||||||||||||
Call Option |
| |||||||||||||||
10 Year U.S. Treasury Notes Futures, expiring 05/26/17, Strike Price $128.00 | 7,100 | (8,875 | ) | |||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS, NET OF OPTION WRITTEN 103.7% |
| 556,213,530 | ||||||||||||||
Liabilities in excess of other assets(p) (3.7)% |
| (20,063,000 | ) | |||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 536,150,530 | |||||||||||||
|
|
The following abbreviations are used in the semiannual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
RegS—Regulation S. Security was purchased pursuant to Regulation S and may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
ABS—Asset-Backed Security
Aces—Alternative Credit Enhancements Securities
ADR—American Depositary Receipt
ASX—Australian Securities Exchange
BABs—Build America Bonds
CLO—Collateralized Loan Obligation
CVA—Certificate Van Aandelen (Bearer)
CVR—Contingent Value Rights
EMTN—Euro Medium Term Note
FHLMC—Federal Home Loan Mortgage Corp.
FTSE—Financial Times Stock Exchange
GMTN—Global Medium Term Note
GO—General Obligation
IO—Interest Only (Principal amount represents notional)
LIBOR—London Interbank Offered Rate
MSCI EAFE—Morgan Stanley Capital International Europe, Australasia and Far East
See Notes to Financial Statements.
Prudential Balanced Fund | 75 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
MTN—Medium Term Note
OTC—Over-the-counter
PO—Principal Only
PRFC—Preference Shares
REIT—Real Estate Investment Trust
RSP—Non-Voting Shares
SDR—Swedish Depositary Receipt
STOXX—Stock Index of the Eurozone
STRIPS—Separate Trading of Registered Interest and Principal of Securities
TBA—To Be Announced
TOPIX—Tokyo Stock Price Index
USAID—United States Agency for International Development
USOIS—United States Overnight Index Swap
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
* | 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 $3,056,461; cash collateral of $3,138,880 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. |
(b) | Variable rate instrument. The interest rate shown reflects the rate in effect at March 31, 2017. |
(c) | Indicates a security or securities that have been deemed illiquid; the aggregate value of $2,160,546 is approximately 0.4% of net assets. |
(d) | Indicates a Level 3 security. The aggregate value of Level 3 securities is $1,420,891 and 0.3% of net assets. |
(e) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post maturity. |
(g) | Less than $500 par. |
(h) | All or partial principal amount represents “TBA” mortgage dollar rolls. The aggregate mortgage dollar roll principal amount of $2,000,000 is approximately 0.4% of net assets. |
(i) | Represents security, or a portion thereof, segregated as collateral for futures contracts. |
(j) | Represents security, or a portion thereof, segregated as collateral for centrally cleared swap agreements. |
(k) | Represents zero coupon bond or principal only securities. Rate represents yield to maturity at purchase date. |
(l) | PGIM Investments LLC, the manager of the Series, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Short-Term Bond Fund, Prudential Core Ultra Short Bond Fund and Prudential Institutional Money Market Fund. |
(m) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(n) | Rate reflects yield to maturity at purchase date. |
(o) | Interest rate not available as of March 31, 2017. |
(p) | Includes net unrealized appreciation (depreciation) on the following derivative contracts held at reporting period end: |
See Notes to Financial Statements.
76 |
Futures contracts outstanding at March 31, 2017:
Number of Contracts | Type | Expiration Date | Value at Trade Date | Value at March 31, 2017 | Unrealized Appreciation (Depreciation) | |||||||||||||||
Long Positions: | ||||||||||||||||||||
149 | 2 Year U.S. Treasury Notes | Jun. 2017 | $ | 32,225,096 | $ | 32,251,516 | $ | 26,420 | ||||||||||||
195 | 5 Year U.S. Treasury Notes | Jun. 2017 | 22,946,990 | 22,956,680 | 9,690 | |||||||||||||||
2 | 10 Year U.S. Treasury Notes | Jun. 2017 | 249,034 | 249,125 | 91 | |||||||||||||||
47 | 30 Year U.S. Ultra Treasury Bonds | Jun. 2017 | 7,500,415 | 7,549,375 | 48,960 | |||||||||||||||
7 | Euro STOXX 50 Index | Jun. 2017 | 247,433 | 255,841 | 8,408 | |||||||||||||||
2 | FTSE 100 Index | Jun. 2017 | 182,711 | 182,309 | (402 | ) | ||||||||||||||
2 | Mini MSCI EAFE Index | Jun. 2017 | 175,125 | 178,200 | 3,075 | |||||||||||||||
11 | S&P 500 E-Mini Index | Jun. 2017 | 1,302,718 | 1,297,560 | (5,158 | ) | ||||||||||||||
10 | TOPIX Index | Jun. 2017 | 1,384,539 | 1,358,573 | (25,966 | ) | ||||||||||||||
|
| |||||||||||||||||||
65,118 | ||||||||||||||||||||
|
| |||||||||||||||||||
Short Position: | ||||||||||||||||||||
18 | 20 Year U.S. Treasury Bonds | Jun. 2017 | 2,702,560 | 2,715,188 | (12,628 | ) | ||||||||||||||
|
| |||||||||||||||||||
$ | 52,490 | |||||||||||||||||||
|
|
A U.S. Treasury Obligation with a market value of $289,576 has been segregated with Goldman Sachs & Co. and a U.S. Government Agency Obligation with a market value of $713,615 has been segregated with JPMorgan Chase to cover requirements for open futures contracts at March 31, 2017.
Interest rate swap agreements outstanding at March 31, 2017:
Notional | Termination Date | Fixed Rate | Floating Rate | Value at Trade Date | Value at March 31, 2017 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Centrally cleared swap agreements: | ||||||||||||||||||||||||
21,085 | 09/09/17 | 0.539% | 1 Day USOIS(1) | $ | 319 | $ | 44,980 | $ | 44,661 | |||||||||||||||
18,235 | 10/18/17 | 0.607% | 1 Day USOIS(1) | 166 | 40,093 | 39,927 | ||||||||||||||||||
10,030 | 11/09/17 | 0.626% | 1 Day USOIS(1) | 173 | 24,939 | 24,766 | ||||||||||||||||||
260 | 05/31/21 | 1.849% | 3 Month LIBOR(1) | 1,176 | 1,172 | (4 | ) | |||||||||||||||||
2,605 | 08/31/21 | 2.015% | 3 Month LIBOR(1) | 148 | 2,860 | 2,712 | ||||||||||||||||||
100 | 12/31/22 | 1.412% | 3 Month LIBOR(1) | 151 | 3,888 | 3,737 | ||||||||||||||||||
790 | 05/31/23 | 1.399% | 3 Month LIBOR(1) | (14,222 | ) | 34,902 | 49,124 | |||||||||||||||||
2,790 | 08/15/23 | 1.459% | 3 Month LIBOR(1) | 138,418 | 119,890 | (18,528 | ) | |||||||||||||||||
946 | 11/15/23 | 2.209% | 3 Month LIBOR(1) | 89 | (1,047 | ) | (1,136 | ) | ||||||||||||||||
700 | 09/08/24 | 2.569% | 3 Month LIBOR(1) | 156 | (14,675 | ) | (14,831 | ) | ||||||||||||||||
930 | 09/04/25 | 2.214% | 3 Month LIBOR(1) | 157 | 6,791 | 6,634 | ||||||||||||||||||
3,430 | 01/08/26 | 2.210% | 3 Month LIBOR(1) | 85 | 32,619 | 32,534 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$ | 126,816 | $ | 296,412 | $ | 169,596 | |||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements.
Prudential Balanced Fund | 77 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
U.S. Government Agency Obligations with a combined market value of $667,970 have been segregated with Citigroup Global Markets to cover requirements for open centrally cleared interest rate swap contracts at March 31, 2017.
(1) | The Series pays the fixed rate and receives the floating rate. |
(2) | The Series pays the floating rate and receives the fixed rate. |
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of March 31, 2017 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities |
| |||||||||||
Common Stocks | $ | 296,791,217 | $ | 24,551,298 | $ | — | ||||||
Exchange Traded Fund | 691,419 | — | — | |||||||||
Preferred Stocks | 211,600 | 152,988 | — | |||||||||
Rights | — | — | 999 | |||||||||
Corporate Bonds | — | 48,825,245 | — | |||||||||
Asset-Backed Securities |
| |||||||||||
Collateralized Loan Obligations | — | 14,326,139 | 250,104 | |||||||||
Non-Residential Mortgage-Backed Securities | — | 13,229,840 | — | |||||||||
Residential Mortgage-Backed Securities | — | 2,100,005 | — | |||||||||
Commercial Mortgage-Backed Securities | — | 22,129,662 | — | |||||||||
Municipal Bonds | — | 2,463,090 | — | |||||||||
Non-Corporate Foreign Agencies | — | 3,291,272 | — | |||||||||
Sovereign Bonds | — | 2,753,303 | — | |||||||||
Residential Mortgage-Backed Securities | — | 5,425,805 | 1,169,788 | |||||||||
U.S. Government Agency Obligations | — | 48,943,758 | — | |||||||||
U.S. Treasury Obligations | — | 25,679,697 | — | |||||||||
Affiliated Mutual Funds | 43,185,254 | — | — | |||||||||
Option Purchased | 49,922 | — | — | |||||||||
Option Written | (8,875 | ) | — | — | ||||||||
Other Financial Instruments* | ||||||||||||
Futures Contracts | 52,490 | — | — | |||||||||
Centrally Cleared Interest Rate Swap Agreements | — | 169,596 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 340,973,027 | $ | 214,041,698 | $ | 1,420,891 | ||||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
See Notes to Financial Statements.
78 |
During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2017 were as follows :
U.S. Government Agency Obligations | 9.1 | % | ||
Affiliated Mutual Funds (including 0.6% of collateral for securities on loan) | 8.1 | |||
Banks | 7.0 | |||
U.S. Treasury Obligations | 4.8 | |||
Commercial Mortgage-Backed Securities | 4.1 | |||
Oil, Gas & Consumable Fuels | 3.5 | |||
Software | 3.0 | |||
Pharmaceuticals | 2.8 | |||
Internet Software & Services | 2.8 | |||
Collateralized Loan Obligations | 2.7 | |||
Non-Residential Mortgage-Backed Securities | 2.5 | |||
Semiconductors & Semiconductor Equipment | 2.3 | |||
Technology Hardware, Storage & Peripherals | 2.3 | |||
Biotechnology | 2.2 | |||
Media | 1.9 | |||
Health Care Equipment & Supplies | 1.8 | |||
Health Care Providers & Services | 1.8 | |||
Insurance | 1.7 | |||
Equity Real Estate Investment Trusts (REITs) | 1.7 | |||
Capital Markets | 1.7 | |||
IT Services | 1.6 | |||
Residential Mortgage-Backed Securities | 1.6 | |||
Diversified Telecommunication Services | 1.6 | |||
Machinery | 1.4 | |||
Aerospace & Defense | 1.4 | |||
Food & Staples Retailing | 1.4 | |||
Food Products | 1.2 | |||
Chemicals | 1.1 | |||
Hotels, Restaurants & Leisure | 1.1 | |||
Electric Utilities | 1.0 | |||
Specialty Retail | 1.0 | |||
Internet & Direct Marketing Retail | 1.0 | |||
Diversified Financial Services | 1.0 | |||
Household Products | 1.0 | |||
Industrial Conglomerates | 0.9 | |||
Beverages | 0.9 | |||
Automobiles | 0.8 | |||
Household Durables | 0.7 | |||
Metals & Mining | 0.7 | |||
Communications Equipment | 0.7 | |||
Non-Corporate Foreign Agencies | 0.6 | |||
Tobacco | 0.6 | |||
Road & Rail | 0.6 | |||
Multiline Retail | 0.6 | |||
Consumer Finance | 0.5 | |||
Electric | 0.5 | % | ||
Sovereign Bonds | 0.5 | |||
Electrical Equipment | 0.5 | |||
Telecommunications | 0.5 | |||
Municipal Bonds | 0.5 | |||
Oil & Gas | 0.4 | |||
Auto Components | 0.4 | |||
Air Freight & Logistics | 0.4 | |||
Independent Power & Renewable Electricity Producers | 0.3 | |||
Trading Companies & Distributors | 0.3 | |||
Commercial Services | 0.3 | |||
Healthcare-Services | 0.3 | |||
Gas Utilities | 0.3 | |||
Healthcare-Products | 0.2 | |||
Electronic Equipment, Instruments & Components | 0.2 | |||
Computers | 0.2 | |||
Energy Equipment & Services | 0.2 | |||
Auto Manufacturers | 0.2 | |||
Retail | 0.2 | |||
Lodging | 0.2 | |||
Pipelines | 0.2 | |||
Multi-Utilities | 0.2 | |||
Life Sciences Tools & Services | 0.2 | |||
Food | 0.2 | |||
Real Estate Management & Development | 0.2 | |||
Construction & Engineering | 0.2 | |||
Airlines | 0.2 | |||
Mortgage Real Estate Investment Trusts (REITs) | 0.2 | |||
Wireless Telecommunication Services | 0.2 | |||
Building Products | 0.2 | |||
Commercial Services & Supplies | 0.2 | |||
Mining | 0.2 | |||
Containers & Packaging | 0.1 | |||
Exchange Traded Fund | 0.1 | |||
Packaging & Containers | 0.1 | |||
Personal Products | 0.1 | |||
Textiles, Apparel & Luxury Goods | 0.1 | |||
Transportation | 0.1 | |||
Multi-National | 0.1 | |||
Agriculture | 0.1 | |||
Semiconductors | 0.1 | |||
Professional Services | 0.1 | |||
Thrifts & Mortgage Finance | 0.1 | |||
Miscellaneous Manufacturing | 0.1 | |||
Housewares | 0.1 |
See Notes to Financial Statements.
Prudential Balanced Fund | 79 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Industry (cont’d.)
Oil & Gas Services | 0.1 | % | ||
Diversified Consumer Services | 0.1 | |||
Health Care Technology | 0.1 | |||
Forest Products & Paper | 0.1 | |||
Machinery-Diversified | 0.1 | |||
Building Materials | 0.1 | |||
Construction Materials | 0.0 | * | ||
Real Estate Investment Trusts (REITs) | 0.0 | * | ||
Marine | 0.0 | * | ||
Paper & Forest Products | 0.0 | * | ||
Transportation Infrastructure | 0.0 | * | ||
Entertainment | 0.0 | * | ||
Home Builders | 0.0 | * | ||
Water Utilities | 0.0 | %* | ||
Gas | 0.0 | * | ||
Environmental Control | 0.0 | * | ||
Leisure Products | 0.0 | * | ||
Option Purchased | 0.0 | * | ||
Real Estate | 0.0 | * | ||
Distributors | 0.0 | * | ||
|
| |||
103.7 | ||||
Option Written | (0.0 | )* | ||
Liabilities in excess of other assets | (3.7 | ) | ||
|
| |||
100.0 | % | |||
|
|
* | Less than +/– 0.05% |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Series invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are equity contracts risk and interest rate contracts risk. The effect of such derivative instruments on the Series’ 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, 2017 as presented in the Statement of Assets and Liabilities:
Derivatives not��accounted | Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||
Equity contracts | Due from/to broker—variation margin futures | $ | 11,483 | * | Due from/to broker— variation margin futures | $ | 31,526 | * | ||||
Equity contracts | Unaffiliated Investments | 999 | — | — | ||||||||
Interest rate contracts | Due from/to broker—variation margin futures | 85,161 | * | Due from/to broker— variation margin futures | 12,628 | * | ||||||
Interest rate contracts | Due from/to broker—variation margin swaps | 204,095 | * | Due from/to broker— variation margin swaps | 34,499 | * | ||||||
Interest rate contracts | Unaffiliated Investments | 49,922 | Options written outstanding, at value | 8,875 | ||||||||
|
|
|
| |||||||||
Total | $ | 351,660 | $ | 87,528 | ||||||||
|
|
|
|
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
See Notes to Financial Statements.
80 |
The effects of derivative instruments on the Statement of Operations for the six months ended March 31, 2017 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||||||
Derivatives not accounted | Rights(1) | Options Purchased(1) | Options Written | Futures | Forward Rate Agreements | Swaps | Total | |||||||||||||||||||||
Equity contracts | $ | 788 | $ | — | $ | — | $ | 274,101 | $ | — | $ | — | $ | 274,889 | ||||||||||||||
Interest rate contracts | — | (36,690 | ) | 17,123 | (1,327,708 | ) | 7,260 | (44,101 | ) | (1,384,116 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 788 | $ | (36,690 | ) | $ | 17,123 | $ | (1,053,607 | ) | $ | 7,260 | $ | (44,101 | ) | $ | (1,109,227 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not | Options Purchased(2) | Options Written | Futures | Swaps | Total | |||||||||||||||
Equity contracts | $ | — | $ | — | $ | (38,873 | ) | $ | — | $ | (38,873 | ) | ||||||||
Interest rate contracts | (1,378 | ) | 1,247 | 67,786 | 900,604 | 968,259 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | (1,378 | ) | $ | 1,247 | $ | 28,913 | $ | 900,604 | $ | 929,386 | |||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
(2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended March 31, 2017, the Series’ average volume of derivative activities is as follows:
Options | Options Written(3) | Futures Contracts— Long Positions(2) | Futures Contracts— Short Positions(2) | Interest Rate Swap Agreements(3) | Total Return Swap Agreeements(3) | |||||||||||||||||
$ | 17,100 | $ | 2,367,000 | $ | 60,112,877 | $ | 2,948,009 | $ | 60,864,000 | $ | 400,000 |
(1) | Cost. |
(2) | Value at Trade Date. |
(3) | Notional Amount in USD. |
See Notes to Financial Statements.
Prudential Balanced Fund | 81 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series entered into financial transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting.
The information about offsetting and related netting arrangements for financial transactions, where the legal right to set-off exists, is presented in the summary below.
Offsetting of financial instruments/transactions assets and liabilities:
Description | Gross Amounts of Recognized Assets(1) | Collateral Received(2) | Net Amount | |||||||||
Securities on Loan | $ | 3,056,461 | $ | (3,056,461 | ) | $ | — | |||||
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(1) | Amount represents market value. |
(2) | Collateral amount disclosed by the Series is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
82 |
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Statement of Assets & Liabilities (unaudited)
as of March 31, 2017
Assets | ||||
Investments at value, including securities on loan of $3,056,461: | ||||
Unaffiliated investments (cost $446,931,679) | $ | 513,037,151 | ||
Affiliated investments (cost $44,049,227) | 43,185,254 | |||
Cash | 28,957 | |||
Foreign currency, at value (cost $626,551) | 636,921 | |||
Receivable for investments sold | 28,896,072 | |||
Dividends and interest receivable | 1,462,935 | |||
Receivable for Series shares sold | 1,362,752 | |||
Tax reclaim receivable | 50,380 | |||
Due from broker—variation margin futures | 46,266 | |||
Prepaid expenses | 2,100 | |||
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| |||
Total assets | 588,708,788 | |||
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| |||
Liabilities | ||||
Payable for investments purchased | 47,801,250 | |||
Payable to broker for collateral for securities on loan | 3,138,880 | |||
Payable for Series shares reacquired | 844,502 | |||
Management fee payable | 284,611 | |||
Accrued expenses | 251,628 | |||
Distribution fee payable | 151,575 | |||
Affiliated transfer agent fee payable | 60,876 | |||
Due to broker-variation margin futures | 16,061 | |||
Options written outstanding, at value (premiums received $10,122) | 8,875 | |||
|
| |||
Total liabilities | 52,558,258 | |||
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| |||
Net Assets | $ | 536,150,530 | ||
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| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 35,322 | ||
Paid-in capital in excess of par | 463,353,731 | |||
|
| |||
463,389,053 | ||||
Undistributed net investment income | 116,108 | |||
Accumulated net realized gain on investment and foreign currency transactions | 7,177,468 | |||
Net unrealized appreciation on investments and foreign currencies | 65,467,901 | |||
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| |||
Net assets, March 31, 2017 | $ | 536,150,530 | ||
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See Notes to Financial Statements.
84 |
Class A | ||||
Net asset value and redemption price per share | $ | 15.14 | ||
Maximum sales charge (5.50% of offering price) | 0.88 | |||
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| |||
Maximum offering price to public | $ | 16.02 | ||
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| |||
Class B | ||||
Net asset value, offering price and redemption price per share | $ | 15.23 | ||
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| |||
Class C | ||||
Net asset value, offering price and redemption price per share | $ | 15.23 | ||
|
| |||
Class R | ||||
Net asset value, offering price and redemption price per share | $ | 15.15 | ||
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| |||
Class Z | ||||
Net asset value, offering price and redemption price per share | $ | 15.24 | ||
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|
See Notes to Financial Statements.
Prudential Balanced Fund | 85 |
Statement of Operations (unaudited)
Six Months Ended March 31, 2017
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of foreign withholding taxes of $27,373) | $ | 2,930,204 | ||
Interest income (net of foreign withholding taxes of $148) | 2,425,199 | |||
Affiliated dividend income | 319,303 | |||
Income from securities lending, net (including affiliated income of $1,842) | 3,070 | |||
|
| |||
Total income | 5,677,776 | |||
|
| |||
Expenses | ||||
Management fee | 1,647,013 | |||
Distribution fee—Class A | 491,372 | |||
Distribution fee—Class B | 59,493 | |||
Distribution fee—Class C | 310,895 | |||
Distribution fee—Class R | 3,000 | |||
Transfer agent’s fees and expenses (including affiliated expense of $121,700) | 335,000 | |||
Custodian and accounting fees | 127,000 | |||
Registration fees | 47,000 | |||
Shareholders’ reports | 33,000 | |||
Audit fee | 19,000 | |||
Legal fees and expenses | 11,000 | |||
Directors’ fees | 9,000 | |||
Miscellaneous | 72,313 | |||
|
| |||
Total expenses | 3,165,086 | |||
Less: Management fee waiver and/or expense reimbursement | (50,677 | ) | ||
Distribution fee waiver—Class R | (1,000 | ) | ||
|
| |||
Net expenses | 3,113,409 | |||
|
| |||
Net investment income (loss) | 2,564,367 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(49,092)) | 11,211,283 | |||
Futures transactions | (1,053,607 | ) | ||
Forward rate agreements transactions | 7,260 | |||
Options written transactions | 17,123 | |||
Swap agreement transactions | (44,101 | ) | ||
Foreign currency transactions | (15,758 | ) | ||
|
| |||
10,122,200 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $4,031) | 10,763,389 | |||
Futures | 28,913 | |||
Options written | 1,247 | |||
Swap agreements | 900,604 | |||
Foreign currencies | (16,590 | ) | ||
|
| |||
11,677,563 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 21,799,763 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 24,364,130 | ||
|
|
See Notes to Financial Statements.
86 |
Statement of Changes in Net Assets (unaudited)
Six Months Ended March 31, 2017 | Year Ended September 30, 2016 | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 2,564,367 | $ | 5,325,433 | ||||
Net realized gain (loss) on investment and foreign currency transactions | 10,122,200 | 17,081,808 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 11,677,563 | 20,451,054 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 24,364,130 | 42,858,295 | ||||||
|
|
|
| |||||
Dividends and Distributions |
| |||||||
Dividends from net investment income |
| |||||||
Class A | (1,857,054 | ) | (3,794,687 | ) | ||||
Class B | (24,529 | ) | (66,546 | ) | ||||
Class C | (129,298 | ) | (236,538 | ) | ||||
Class R | (3,646 | ) | (7,469 | ) | ||||
Class Z | (750,809 | ) | (1,225,508 | ) | ||||
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|
| |||||
(2,765,336 | ) | (5,330,748 | ) | |||||
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|
| |||||
Distributions from net realized gains | ||||||||
Class A | (10,385,532 | ) | (18,480,268 | ) | ||||
Class B | (370,499 | ) | (767,266 | ) | ||||
Class C | (1,928,302 | ) | (2,084,563 | ) | ||||
Class R | (23,286 | ) | (37,139 | ) | ||||
Class Z | (3,104,100 | ) | (4,391,118 | ) | ||||
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| |||||
(15,811,719 | ) | (25,760,354 | ) | |||||
|
|
|
| |||||
Series share transactions (Net of share conversions) |
| |||||||
Net proceeds from shares sold | 76,765,734 | 125,046,377 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 17,670,991 | 29,964,594 | ||||||
Cost of shares reacquired | (51,329,171 | ) | (81,515,423 | ) | ||||
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|
|
| |||||
Net increase (decrease) in net assets from Series share transactions | 43,107,554 | 73,495,548 | ||||||
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|
|
| |||||
Total increase (decrease) | 48,894,629 | 85,262,741 | ||||||
Net Assets: |
| |||||||
Beginning of period | 487,255,901 | 401,993,160 | ||||||
|
|
|
| |||||
End of period(a) | $ | 536,150,530 | $ | 487,255,901 | ||||
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| |||||
(a) Includes undistributed net investment income of: | $ | 116,108 | $ | 317,077 | ||||
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|
|
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See Notes to Financial Statements.
Prudential Balanced Fund | 87 |
Notes to Financial Statements (unaudited)
The Prudential Investment Portfolios, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The Company was incorporated in Maryland on August 10, 1995 and consists of six series: Prudential Balanced Fund (the “Series”), Prudential Jennison Growth Fund and Prudential Jennison Equity Opportunity Fund which are diversified funds and Prudential Conservative Allocation Fund, Prudential Growth Allocation Fund and Prudential Moderate Allocation Fund which are non-diversified funds. These financial statements relate to Prudential Balanced Fund. The financial statements of the other series are not presented herein.
The Series’ investment objective is to seek income and long-term growth of capital.
Note 1. Accounting Policies
The Series follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services-Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or “the Manager”) (formerly known as Prudential Investments LLC). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.
88 |
Common and preferred stocks, exchange-traded funds, and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.
In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The portfolios utilize the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing recent transaction prices for identical or comparable securities. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques.
Bank loans are generally valued using the market approach at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Bank loans valued using such
Prudential Balanced Fund | 89 |
Notes to Financial Statements (unaudited) (continued)
vendor prices are generally classified as Level 2 in the fair value hierarchy. Bank loans valued based on a singular broker quote or at the original transaction price are classified as Level 3 in the fair value hierarchy.
OTC derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an approved independent third-party vendor source. The Series utilizes the market approach when quoted prices in broker-dealer markets are available but also includes consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing OTC derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated OTC derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain OTC derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing significant unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are generally valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it
90 |
operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.
Restricted and Illiquid Securities: Subject to guidelines adopted by the Board, the Series may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities are valued pursuant to the valuation procedures noted above. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Series has valued the investment. Therefore, the Series may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Series’ Subadviser under the guidelines adopted by the Directors of the Series. However, the liquidity of the Series’ investments in Rule 144A securities could be impaired if trading does not develop or declines.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Series does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations, such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from holdings of foreign currencies, forward currency
Prudential Balanced Fund | 91 |
Notes to Financial Statements (unaudited) (continued)
contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.
Concentration of Risk: The ability of debt securities issuers (other than those issued or guaranteed by the U.S. Government) held by the Series to meet its obligations may be affected by the economic or political developments in a specific industry, region or country. Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the possibility of political or economic instability or the level of governmental supervision and regulation of foreign securities markets.
Connecticut Avenue Securities (CAS) and Structured Agency Credit Risk (STACR): The Series purchased government controlled Fannie Mae and Freddie Mac securities that transfer most of the cost of defaults to private investors including the Series. These are insurance-like products that are called CAS by Fannie Mae and STACR securities by Freddie Mac. Payments on the securities are based primarily on the performance of a reference pool of underlying mortgages. With such securities, the Series could lose some or all of its principal if the underlying mortgages experience credit defaults.
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 Series 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 Series each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented on the Statement of Operations as net realized gain (loss) on futures transactions.
The Series invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Series intends to purchase, against fluctuations in value caused by changes in prevailing interest rates or foreign currency exchange rates. Should interest rates move unexpectedly, the Series 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
92 |
underlying hedged assets. With exchange-traded futures contracts, there is minimal counterparty credit risk to the Series since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Options: The Series purchased and wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equity or foreign currency exchange rates with respect to securities or financial instruments which the Series currently owns or intends to purchase. The Series may also use options to gain additional market exposure. The Series’ principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Series purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Series writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Series realizes a gain (loss) to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase in determining whether the Series has realized a gain (loss). The difference between the premium and the amount received or paid at the closing of a purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain (loss) on written options is presented separately as net realized gain (loss) on options written.
The Series, as writer of an option, may have no control over whether the underlying securities or financial instruments may be sold (called) or purchased (put). As a result, the Series bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. OTC options also involve the risk of the potential inability of the counterparties to meet the terms of their contracts. With exchange-traded options contracts, there is minimal counterparty credit risk to the Series since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.
When the Series writes an option on a swap contract, an amount equal to any premium received by the Series is recorded as a liability and is subsequently adjusted to the current market value of the written option on the swap. If a call option on a swap is exercised, the Series becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put option on a swap is exercised, the Series becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing options on swaps that expire or are exercised are treated as realized gains upon the expiration or exercise of such options on swaps. The risk associated with writing put and call options on swaps is that the Series will be obligated to be party to a swap agreement if an option on a swap is exercised.
Prudential Balanced Fund | 93 |
Notes to Financial Statements (unaudited) (continued)
Swap Agreements: The Series may enter into credit default, interest rate and total return swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with counterparty (“OTC-traded”) or through a central clearing facility, such as a registered commodities exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on investments. Centrally cleared swaps pay or receive an amount, known as “variation margin”, based on daily changes in the valuation of the swap contract. Payments received or paid by the Series are recorded as realized gains (losses) upon termination or maturity of the swap. Risk of loss may exceed amounts recognized on the Statements of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Portfolio of Investments.
Interest Rate Swaps: Interest rate swaps represent agreements between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Series is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The Series used interest rate swaps to generate steady cash flow by receiving a stream of fixed rate payments and to increase exposure to prevailing market rates by receiving floating rate payments. The Series’ maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life.
Credit Default Swaps: Credit default swaps (“CDS”) involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity (typically corporate issues or sovereign issues of an emerging country) on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.
The Series is subject to credit risk in the normal course of pursuing its investment objectives. The Series may enter into credit default swaps to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases. The Series’ maximum risk of loss from counterparty credit risk for purchased credit default swaps is the inability of the counterparty to honor the contract up to the notional value based on credit event.
94 |
As a seller of protection on credit default swap agreements, the Series generally receives from the buyer of protection an agreed upon payment throughout the term of the swap provided no credit event occurs. As the seller, the Series effectively increases investment risk because, in addition to its total assets, the Series may be subject to investment exposure on the notional amount of the swap.
The maximum amount of the payment that the Series as a seller of protection could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit event. This potential amount will be partially offset by any recovery values of the respective referenced obligations, or net amounts received from the settlement of buy protection credit default swap agreements which the Series entered into for the same referenced entity or index. As a buyer of protection, the Series generally receives an amount up to the notional value of the swap if a credit event occurs.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end are disclosed in the footnotes to the Portfolio of Investments, if applicable. These spreads serve as indicators of the current status of the payment/performance risk and represent the likelihood of default risk for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
Total Return Swaps: In a total return swap, one party would receive payments based on the market value of the security or the commodity involved, or total return of a specific referenced asset, such as an equity, index or bond, and in return pay a fixed amount. The Series is subject to risk exposures associated with the referenced asset in the normal course of pursuing its investment objectives. The Series entered into total return swaps to manage its exposure to a security or an index. The Series’ maximum risk of loss from counterparty credit risk is the change in the value of the security, in the Series’ favor, from the point of entering into the contract.
Forward Rate Agreements: Forward rate agreements represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount on a fixed future date. The Series entered into forward rate agreements to gain yield exposure based on anticipated market conditions at the specified termination date of the agreement.
Prudential Balanced Fund | 95 |
Notes to Financial Statements (unaudited) (continued)
Master Netting Arrangements: The Series is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of the Series. For multi-sleeve Series, different subadvisers who manage their respective sleeve, may enter into such agreements with the same counterparty and are disclosed separately for each sleeve when presenting information about offsetting and related netting arrangements for OTC derivatives. A master netting arrangement between the Series and the counterparty permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off, and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
The Company, on behalf of the Series, is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Series is held in a segregated account by the Series’ custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Portfolio of Investments. Collateral pledged by the Series is segregated by the Series’ custodian and identified in the Portfolio of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the Series and the applicable counterparty. Collateral requirements are determined based on the Series’ net position with each counterparty. Termination events applicable to the Series may occur upon a decline in the Series’ net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Series’ counterparties to elect early termination could impact the Series’ future derivative activity.
96 |
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified as collateral or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such OTC derivative agreements include conditions which when materialized; give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
As of March 31, 2017, the Series has not met conditions under such agreements, which give the counterparty the right to call for an early termination.
Forward currency contracts, written options, short sales, swaps and financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. Such risks may be mitigated by engaging in master netting arrangements.
Delayed-Delivery Transactions: The Series may purchase or sell securities on a when-issued or delayed-delivery basis. These transactions involve a commitment by the Series to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, the Series will set aside and maintain an amount of liquid assets sufficient to meet the purchase price in a segregated account until the settlement date. When purchasing a security on a delayed-delivery basis, the Series assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. The Series may dispose of or renegotiate a delayed-delivery transaction subsequent to establishment, and may sell when-issued securities before they are delivered, which may result in a capital gain (loss). When selling a security on a delayed-delivery basis, the Series forfeits its eligibility to realize future gains (losses) with respect to the security.
Dollar Rolls: The Series enters into mortgage dollar rolls in which the Series sells mortgage securities for delivery in the current month, realizing a gain (loss), and simultaneously enters into contracts to repurchase somewhat similar (same type, coupon and maturity) securities on a specified future date. During the roll period, the Series forgoes principal and interest paid on the securities. The Series is compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. The difference between the sale proceeds and the lower repurchase price is recorded as a realized gain (loss) on investment transactions. The Series maintains a segregated account,
Prudential Balanced Fund | 97 |
Notes to Financial Statements (unaudited) (continued)
the dollar value of which is at least equal to its obligations, with respect to dollar rolls. The Series is subject to the risk that the market value of the securities the Series is obligated to repurchase under the agreement may decline below the repurchase price.
Loan Participations: The Series may invest in loan participations, another type of restricted security. When the Series purchases a loan participation, the Series typically enters into a contractual relationship with the lender or third party selling such participations (“Selling Paritcipant”), but not the borrower. As a result, the Series assumes the credit risk of the borrower, the Selling Participant and any other persons interpositioned between the Series and the borrower. The Series may not directly benefit from the collateral supporting the senior loan in which it has purchased the loan participation.
Securities Lending: The Series 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 an affiliated 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 Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral. The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed on the Statement of Operations as “Income from securities lending, net”.
Rights: The Series may hold rights acquired either through a direct purchase, included as part of a private placement, or pursuant to corporate actions. Rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. Such rights are held as long positions by the Series until exercised, sold or expired. Rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Real Estate Investment Trusts (REITs): The Series invests in 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
98 |
be dividend income, capital gain or return of capital and recorded accordingly. These estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on an accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management, which may differ from actual.
Net investment income or loss (other than distribution fees, which are charged directly to the respective class) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.
Dividends and Distributions: The Series expects to pay dividends from net investment income quarterly and distributions from net realized capital and currency gains, if any, 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-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.
Taxes: It is the Series’ 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 interest and dividends are recorded, net of reclaimable amounts, at the time the related income is earned.
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Note 2. Agreements
The Company, on behalf of the Series, has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadvisers’ performance of such services. PGIM Investments has entered into a subadvisory agreement with each of PGIM, Inc., which provides subadvisory services to the Series through its PGIM Fixed Income unit, and Quantitative Management Associates LLC (“QMA”). Each subadvisory agreement provides that PGIM, Inc. and QMA will furnish investment advisory services in connection with the management of the Series. In connection therewith, PGIM, Inc. and QMA are
Prudential Balanced Fund | 99 |
Notes to Financial Statements (unaudited) (continued)
obligated to keep certain books and records of the Series. PGIM Investments pays for the services of PGIM, Inc. and QMA, the cost of compensation of officers of the Series, occupancy and certain clerical and bookkeeping costs of the Series. The Series bears all other costs and expenses.
The management fee paid to PGIM Investments is accrued daily and payable monthly at an annual rate of .65% of the Series’ average daily net assets up to $1 billion and .60% of the average daily net assets in excess of $1 billion. The effective management fee rate before any waivers and/or expense reimbursement was .65% for the six months ended March 31, 2017. The effective management fee rate, net of waivers and/or expense reimbursement, was .63%.
PGIM Investments entered into a contractual agreement that would waive management fees in an amount up to .02% of the Series’ average daily net assets through January 31, 2018, to the extent that the Series’ net annual operating expenses (exclusive of taxes, interest, distribution (12b-1) fees and certain extraordinary expenses) exceed .86% of the Series’ average daily net assets on an annualized basis. Expenses waived/reimbursed by the Manager in accordance with this agreement may be recouped by the Manager within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
The Company, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class R and Class Z shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A, Class B, Class C and Class R shares, pursuant to plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Series.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution-related activities at an annual rate of up to .30%, 1%, 1% and .75% of the average daily net assets of the Class A, B, C and R shares, respectively. PIMS has contractually agreed through January 31, 2018 to limit such expenses to .50% of the average daily net assets of the Class R shares.
PIMS has advised the Series that it has received $370,504 in front-end sales charges resulting from sales of Class A shares during the six months ended March 31, 2017. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.
100 |
PIMS has advised the Series that for the six months ended March 31, 2017 it received $1,255, $6,255 and $7,942 in contingent deferred sales charges imposed upon certain redemptions by Class A, Class B and Class C shareholders, respectively.
PGIM Investments, PGIM, Inc., PIMS and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.
The Series may invest its overnight sweep cash in the Prudential Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the Prudential Institutional Money Market Fund, (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. For the period ended March 31, 2017, PGIM, Inc. was compensated $631 by PGIM Investments for managing the Series’ securities lending cash collateral as subadviser to the Money Market Fund. The Series also invests in the Prudential Core Short-Term Bond Fund, pursuant to an exemptive order received from the Securities and Exchange Commission (“SEC”), a series of Prudential Investment Portfolios 2 (together with Prudential Core Ultra Short Bond Fund, the “Core Funds”), registered under the 1940 Act and managed by PGIM Investments. Earnings from the Core Funds and Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
Note 4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Treasury securities), for the six months ended March 31, 2017 were $418,191,280 and $418,873,825, respectively.
Prudential Balanced Fund | 101 |
Notes to Financial Statements (unaudited) (continued)
Written options transactions, during the six months ended March 31, 2017, were as follows:
Notional Amount (000) | Premium | |||||||
Balance at beginning of period | — | $ | — | |||||
Options written | 37,300 | 44,385 | ||||||
Options closed | (12,200 | ) | (25,143 | ) | ||||
Options expired | (18,000 | ) | (9,120 | ) | ||||
|
|
|
| |||||
Balance at end of period | 7,100 | $ | 10,122 | |||||
|
|
|
|
Note 5. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of March 31, 2017 were as follows:
Tax Basis | $ | 493,231,102 | ||
|
| |||
Appreciation | 72,217,108 | |||
Depreciation | (9,225,805 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 62,991,303 | ||
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
Management has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. The Series’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Series offers Class A, Class B, Class C, Class R and Class Z shares. Class A shares are sold with a front-end sales charge of up to 5.50%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%. The Class A shares CDSC is waived for purchases by certain retirement and/or benefit plans. Class B shares are sold with a CDSC which declines from 5% to zero depending upon the period of time the shares are held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new
102 |
purchases. Class C shares are sold with a CDSC of 1% on shares redeemed within the first 12 months of purchase. Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for a sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock.
The Company is authorized to issue 6 billion shares of common stock at $.001 par value per share. There are 950 million shares authorized for the Series, designated Class A, Class B, Class C, Class R, Class Z, Class Q and Class T, each of which consists of 125 million, 5 million, 75 million, 125 million, 245 million, 275 million and 100 million authorized shares, respectively. The Series currently does not have any Class Q and Class T shares outstanding.
As of March 31, 2017, Prudential owned 323 Class R shares of the Series. At reporting period end, two shareholders of record held 24% of the Series’ outstanding shares.
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 1,589,418 | $ | 23,669,751 | |||||
Shares issued in reinvestment of dividends and distributions | 812,480 | 11,973,245 | ||||||
Shares reacquired | (1,648,986 | ) | (24,600,612 | ) | ||||
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|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 752,912 | 11,042,384 | ||||||
Shares issued upon conversion from other share class(es) | 82,603 | 1,250,901 | ||||||
Shares reacquired upon conversion into other share class(es) | (574,102 | ) | (8,596,787 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding | 261,413 | $ | 3,696,498 | |||||
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|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 3,468,301 | $ | 50,310,122 | |||||
Shares issued in reinvestment of dividends and distributions | 1,523,532 | 21,756,168 | ||||||
Shares reacquired | (3,482,634 | ) | (50,579,177 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,509,199 | 21,487,113 | ||||||
Shares issued upon conversion from other share class(es) | 114,913 | 1,654,398 | ||||||
Shares reacquired upon conversion into other share class(es) | (126,929 | ) | (1,877,127 | ) | ||||
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|
|
| |||||
Net increase (decrease) in shares outstanding | 1,497,183 | $ | 21,264,384 | |||||
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Prudential Balanced Fund | 103 |
Notes to Financial Statements (unaudited) (continued)
Class B | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 57,430 | $ | 862,107 | |||||
Shares issued in reinvestment of dividends and distributions | 25,315 | 375,284 | ||||||
Shares reacquired | (70,456 | ) | (1,056,096 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | 12,289 | 181,295 | ||||||
Shares reacquired upon conversion into other share class(es) | (50,850 | ) | (775,054 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding | (38,561 | ) | $ | (593,759 | ) | |||
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| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 143,902 | $ | 2,079,658 | |||||
Shares issued in reinvestment of dividends and distributions | 56,628 | 812,446 | ||||||
Shares reacquired | (122,956 | ) | (1,790,378 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | 77,574 | 1,101,726 | ||||||
Shares reacquired upon conversion into other share class(es) | (114,219 | ) | (1,654,398 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding | (36,645 | ) | $ | (552,672 | ) | |||
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| |||||
Class C | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 1,062,242 | $ | 15,916,112 | |||||
Shares issued in reinvestment of dividends and distributions | 126,456 | 1,873,461 | ||||||
Shares reacquired | (450,150 | ) | (6,741,525 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | 738,548 | 11,048,048 | ||||||
Shares reacquired upon conversion into other share class(es) | (131,240 | ) | (1,978,442 | ) | ||||
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|
|
| |||||
Net increase (decrease) in shares outstanding | 607,308 | $ | 9,069,606 | |||||
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|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 2,204,602 | $ | 32,132,718 | |||||
Shares issued in reinvestment of dividends and distributions | 149,909 | 2,152,256 | ||||||
Shares reacquired | (558,325 | ) | (8,123,556 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,796,186 | 26,161,418 | ||||||
Shares reacquired upon conversion into other share class(es) | (26,443 | ) | (391,863 | ) | ||||
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| |||||
Net increase (decrease) in shares outstanding | 1,769,743 | $ | 25,769,555 | |||||
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|
| |||||
Class R | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 18,623 | $ | 277,756 | |||||
Shares issued in reinvestment of dividends and distributions | 1,084 | 15,985 | ||||||
Shares reacquired | (3,158 | ) | (46,980 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding | 16,549 | $ | 246,761 | |||||
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|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 38,700 | $ | 541,659 | |||||
Shares issued in reinvestment of dividends and distributions | 1,780 | 25,439 | ||||||
Shares reacquired | (29,969 | ) | (432,733 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 10,511 | $ | 134,365 | |||||
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|
|
|
104 |
Class Z | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 2,398,114 | $ | 36,040,008 | |||||
Shares issued in reinvestment of dividends and distributions | 231,413 | 3,433,016 | ||||||
Shares reacquired | (1,260,169 | ) | (18,883,958 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,369,358 | 20,589,066 | ||||||
Shares issued upon conversion from other share class(es) | 670,598 | 10,106,316 | ||||||
Shares reacquired upon conversion into other share class(es) | (459 | ) | (6,934 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 2,039,497 | $ | 30,688,448 | |||||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 2,732,743 | $ | 39,982,220 | |||||
Shares issued in reinvestment of dividends and distributions | 362,959 | 5,218,285 | ||||||
Shares reacquired | (1,418,253 | ) | (20,589,579 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,677,449 | 24,610,926 | ||||||
Shares issued upon conversion from other share class(es) | 152,526 | 2,268,990 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,829,975 | $ | 26,879,916 | |||||
|
|
|
|
Note 7. Borrowings
The Company, on behalf of the Series, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 6, 2016 through October 5, 2017. The Funds pay an annualized commitment fee of .15% of the unused portion of the SCA. Prior to October 6, 2016, the Funds had a prior SCA that provided a commitment of $900 million in which the Funds paid an annualized commitment fee of .11% of the unused portion of the prior SCA. For the SCA and the prior SCA, the Series’ portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under each SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the 1-month LIBOR rate or (3) zero percent.
The Series did not utilize the SCA during the six months ended March 31, 2017.
Note 8. Recent Accounting Pronouncements and Reporting Updates
On October 13, 2016, the SEC adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. Also under the new rules, the SEC will permit open-end funds, with the exception of money market funds, to offer swing pricing, subject to board approval and review. The
Prudential Balanced Fund | 105 |
Notes to Financial Statements (unaudited) (continued)
compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
Note 9. Other
At the Series’ Board meeting in March, 2017, the Board of Directors approved a change in the methodology of allocating certain expenses, like Transfer Agency (including sub-transfer agency and networking) and Blue Sky fees. The impact to the net assets of the Series and individual share classes is not ascertainable at the present time. Management expects to implement the changes by December 31, 2017.
106 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.99 | $14.67 | $16.45 | $14.70 | $13.37 | $11.32 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .08 | .18 | .18 | .20 | .21 | .19 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .63 | 1.25 | (.09 | ) | 1.76 | 1.34 | 2.06 | |||||||||||||||||||||
Total from investment operations | .71 | 1.43 | .09 | 1.96 | 1.55 | 2.25 | ||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.08 | ) | (.19 | ) | (.33 | ) | (.21 | ) | (.22 | ) | (.20 | ) | ||||||||||||||||
Distributions from net realized gains | (.48 | ) | (.92 | ) | (1.54 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.56 | ) | (1.11 | ) | (1.87 | ) | (.21 | ) | (.22 | ) | (.20 | ) | ||||||||||||||||
Net asset value, end of period | $15.14 | $14.99 | $14.67 | $16.45 | $14.70 | $13.37 | ||||||||||||||||||||||
Total Return(b): | 4.87% | 10.15% | .17% | 13.43% | 11.78% | 20.04% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $331,639 | $324,422 | $295,456 | $303,153 | $281,499 | $269,131 | ||||||||||||||||||||||
Average net assets (000) | $328,493 | $308,458 | $309,664 | $295,552 | $273,250 | $257,847 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.19% | (e) | 1.23% | 1.23% | 1.22% | 1.22% | 1.29% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.21% | (e) | 1.25% | 1.25% | 1.24% | 1.24% | 1.31% | |||||||||||||||||||||
Net investment income (loss) | 1.05% | (e) | 1.23% | 1.16% | 1.27% | 1.50% | 1.55% | |||||||||||||||||||||
Portfolio turnover rate(d) | 90% | (f) | 230% | 216% | 215% | 234% | 204% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effect of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | The Series accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
Prudential Balanced Fund | 107 |
Financial Highlights (unaudited) (continued)
Class B Shares | ||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.08 | $14.75 | $16.45 | $14.71 | $13.38 | $11.33 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | .03 | .08 | .07 | .09 | .11 | .11 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .63 | 1.25 | (.09 | ) | 1.75 | 1.35 | 2.05 | |||||||||||||||||||
Total from investment operations | .66 | 1.33 | (.02 | ) | 1.84 | 1.46 | 2.16 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (.03 | ) | (.08 | ) | (.14 | ) | (.10 | ) | (.13 | ) | (.11 | ) | ||||||||||||||
Distributions from net realized gains | (.48 | ) | (.92 | ) | (1.54 | ) | - | - | - | |||||||||||||||||
Total dividends and distributions | (.51 | ) | (1.00 | ) | (1.68 | ) | (.10 | ) | (.13 | ) | (.11 | ) | ||||||||||||||
Net asset value, end of period | $15.23 | $15.08 | $14.75 | $16.45 | $14.71 | $13.38 | ||||||||||||||||||||
Total Return(b): | 4.47% | 9.41% | (.49)% | 12.60% | 11.01% | 19.18% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $11,638 | $12,101 | $12,376 | $14,899 | $13,222 | $10,142 | ||||||||||||||||||||
Average net assets (000) | $11,932 | $12,405 | $14,068 | $14,806 | $11,466 | $10,739 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.89% | (e) | 1.93% | 1.93% | 1.92% | 1.92% | 2.00% | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.91% | (e) | 1.95% | 1.95% | 1.94% | 1.94% | 2.02% | |||||||||||||||||||
Net investment income (loss) | .35% | (e) | .54% | .46% | .57% | .80% | .85% | |||||||||||||||||||
Portfolio turnover rate(d) | 90% | (f) | 230% | 216% | 215% | 234% | 204% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effect of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | The Series accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
108 |
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.08 | $14.74 | $16.45 | $14.71 | $13.37 | $11.32 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .03 | .08 | .07 | .09 | .11 | .11 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .63 | 1.26 | (.10 | ) | 1.75 | 1.36 | 2.05 | |||||||||||||||||||||
Total from investment operations | .66 | 1.34 | (.03 | ) | 1.84 | 1.47 | 2.16 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.03 | ) | (.08 | ) | (.14 | ) | (.10 | ) | (.13 | ) | (.11 | ) | ||||||||||||||||
Distributions from net realized gains | (.48 | ) | (.92 | ) | (1.54 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.51 | ) | (1.00 | ) | (1.68 | ) | (.10 | ) | (.13 | ) | (.11 | ) | ||||||||||||||||
Net asset value, end of period | $15.23 | $15.08 | $14.74 | $16.45 | $14.71 | $13.37 | ||||||||||||||||||||||
Total Return(b): | 4.47% | 9.49% | (.56)% | 12.60% | 11.10% | 19.20% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $67,291 | $57,448 | $30,093 | $20,838 | $15,926 | $10,653 | ||||||||||||||||||||||
Average net assets (000) | $62,349 | $43,525 | $26,353 | $17,899 | $12,912 | $10,547 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.89% | (e) | 1.93% | 1.93% | 1.92% | 1.92% | 1.99% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.91% | (e) | 1.95% | 1.95% | 1.94% | 1.94% | 2.01% | |||||||||||||||||||||
Net investment income (loss) | .35% | (e) | .53% | .47% | .58% | .79% | .85% | |||||||||||||||||||||
Portfolio turnover rate(d) | 90% | (f) | 230% | 216% | 215% | 234% | 204% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effect of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | The Series accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
Prudential Balanced Fund | 109 |
Financial Highlights (unaudited) (continued)
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.00 | $14.68 | $16.43 | $14.69 | $13.36 | $11.31 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .06 | .15 | .15 | .17 | .18 | .12 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .64 | 1.25 | (.09 | ) | 1.75 | 1.35 | 2.10 | |||||||||||||||||||||
Total from investment operations | .70 | 1.40 | .06 | 1.92 | 1.53 | 2.22 | ||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.07 | ) | (.16 | ) | (.27 | ) | (.18 | ) | (.20 | ) | (.17 | ) | ||||||||||||||||
Distributions from net realized gains | (.48 | ) | (.92 | ) | (1.54 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.55 | ) | (1.08 | ) | (1.81 | ) | (.18 | ) | (.20 | ) | (.17 | ) | ||||||||||||||||
Net asset value, end of period | $15.15 | $15.00 | $14.68 | $16.43 | $14.69 | $13.36 | ||||||||||||||||||||||
Total Return(b): | 4.76% | 9.93% | .02% | 13.16% | 11.58% | 19.82% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $981 | $723 | $553 | $482 | $305 | $222 | ||||||||||||||||||||||
Average net assets (000) | $802 | $739 | $528 | $395 | $273 | $27 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.39% | (e) | 1.43% | 1.43% | 1.42% | 1.42% | 1.51% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.66% | (e) | 1.70% | 1.70% | 1.69% | 1.69% | 1.78% | |||||||||||||||||||||
Net investment income (loss) | .85% | (e) | 1.04% | .96% | 1.08% | 1.30% | 1.37% | |||||||||||||||||||||
Portfolio turnover rate(d) | 90% | (f) | 230% | 216% | 215% | 234% | 204% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | The Series accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
110 |
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.09 | $14.75 | $16.57 | $14.80 | $13.46 | $11.39 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .10 | .22 | .23 | .25 | .25 | .24 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .64 | 1.27 | (.10 | ) | 1.77 | 1.35 | 2.06 | |||||||||||||||||||||
Total from investment operations | .74 | 1.49 | .13 | 2.02 | 1.60 | 2.30 | ||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.11 | ) | (.23 | ) | (.41 | ) | (.25 | ) | (.26 | ) | (.23 | ) | ||||||||||||||||
Distributions from net realized gains | (.48 | ) | (.92 | ) | (1.54 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.59 | ) | (1.15 | ) | (1.95 | ) | (.25 | ) | (.26 | ) | (.23 | ) | ||||||||||||||||
Net asset value, end of period | $15.24 | $15.09 | $14.75 | $16.57 | $14.80 | $13.46 | ||||||||||||||||||||||
Total Return(b): | 5.00% | 10.57% | .41% | 13.80% | 12.10% | 20.46% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $124,601 | $92,562 | $63,516 | $98,321 | $85,068 | $41,826 | ||||||||||||||||||||||
Average net assets (000) | $104,604 | $79,518 | $59,423 | $89,928 | $70,535 | $38,043 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .89% | (e) | .93% | .93% | .92% | .92% | .99% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | .91% | (e) | .95% | .95% | .94% | .94% | 1.01% | |||||||||||||||||||||
Net investment income (loss) | 1.35% | (e) | 1.53% | 1.45% | 1.57% | 1.76% | 1.85% | |||||||||||||||||||||
Portfolio turnover rate(d) | 90% | (f) | 230% | 216% | 215% | 234% | 204% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | The Series accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
Prudential Balanced Fund | 111 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | www.pgiminvestments.com |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s investment subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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INVESTMENT SUBADVISERS | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
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Quantitative Management Associates LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | |||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 225 Liberty Street New York, NY 10281 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.pgiminvestments.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.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Balanced Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PRUDENTIAL BALANCED FUND
SHARE CLASS | A | B | C | R | Z | |||||
NASDAQ | PIBAX | PBFBX | PABCX | PALRX | PABFX | |||||
CUSIP | 74437E883 | 74437E875 | 74437E867 | 74437E636 | 74437E859 |
MF185E2
PRUDENTIAL JENNISON EQUITY
OPPORTUNITY FUND
SEMIANNUAL REPORT
MARCH 31, 2017
To enroll in e-delivery, go to pgiminvestments.com/edelivery
Objective: Long-term growth of capital |
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, 2017 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates is a registered investment adviser. Both are Prudential Financial companies. © 2017 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgiminvestments.com |
Letter from the President
Dear Shareholder:
We hope you find the semiannual report for the Prudential Jennison Equity Opportunity Fund informative and useful. The report covers performance for the six-month period ended March 31, 2017. We are proud to announce that Prudential Investments became PGIM® Investments, effective April 3, 2017. Why PGIM? This new name was chosen to further align with the global investment management businesses of Prudential Financial, which rebranded from Prudential Investment Management in January 2016. This new name allows for one brand and reflects our ability and commitment to delivering investment solutions to clients around the globe. Please keep in mind that only the Fund adviser’s name was changed: the name of your Fund and the management and operation did not change.
Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. We’re part of PGIM, the 9th-largest global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
Prudential Jennison Equity Opportunity Fund
May 15, 2017
Prudential Jennison Equity Opportunity Fund | 3 |
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 3/31/17 (without Sales Charges) | Average Annual Total Returns as of 3/31/17 (with Sales Charges) | |||||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | Since Inception (%) | ||||||
Class A | 13.91 | 15.50 | 10.67 | 6.35 | — | |||||
Class B | 13.50 | 16.34 | 11.02 | 6.21 | — | |||||
Class C | 13.50 | 20.42 | 11.15 | 6.21 | — | |||||
Class Q | 14.12 | 22.74 | N/A | N/A | 7.64 (11/25/14) | |||||
Class R | 13.84 | 21.99 | 11.71 | 6.73 | — | |||||
Class Z | 14.08 | 22.64 | 12.28 | 7.28 | — | |||||
S&P 500 Index | 10.11 | 17.15 | 13.29 | 7.50 | — | |||||
Lipper Customized Blend Funds Average** | 9.95 | 16.61 | 11.57 | 6.03 | — | |||||
Lipper Multi-Cap Core Funds Average** | 9.50 | 15.84 | 11.56 | 6.30 | — |
*Not annualized
**The Lipper Customized Blend Funds Average is a blend of the Lipper Multi-Cap Core Funds and Lipper Multi-Cap Value Funds Averages. The Lipper Customized Blend Funds Average was utilized because the Fund’s Manager believes that a blend of the Lipper Multi-Cap Core and Lipper Multi-Cap Value Averages provides a more appropriate basis for Fund performance comparisons, although Lipper classifies the Fund in its Multi-Cap Core Funds category.
Source: PGIM Investments LLC and Lipper Inc.
Inception returns are provided for any share class with less than 10 years of calendar returns.
4 | Visit our website at pgiminvestments.com |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class B* | Class C | Class Q | Class R | Class Z | |||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | None | ||||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1% on sales of $1 million or more made within 12 months of purchase | 5% (Yr.1) 4% (Yr.2) 3% (Yr.3) 2% (Yr.4) 1% (Yr.5) 1% (Yr.6) 0% (Yr.7) | 1% on sales made within 12 months of purchase | None | None | None | ||||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | .30% | 1% | 1% | None | .75% (.50% currently) | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
Benchmark Definitions
S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed. The average annual total return for the Index measured from the month-end closest to the inception date through 3/31/17 is 8.15% for Class Q shares.
Lipper Customized Blend Funds Average—The Lipper Customized Blend Funds Average (Lipper Average) is a 50/50 blend of the Lipper Multi-Cap Value Fund and Lipper Multi-Cap Core Funds Averages. The average annual total return for the Average measured from the month-end closest to the inception date through 3/31/17 is 5.79% for Class Q shares.
Lipper Multi-Cap Core Funds Average—The Lipper Multi-Cap Core Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Multi-Cap Core Funds category for the periods noted. Funds in the Lipper Average invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap Core Funds in the Lipper Average typically have between 25% and 75% of their assets invested in companies with market capitalizations of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Multi-Cap Core Funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio,
Prudential Jennison Equity Opportunity Fund | 5 |
Your Fund’s Performance (continued)
and three-year sales-per-share growth value compared with the S&P SuperComposite 1500 Index. The average annual total return for the Average measured from the month-end closest to the inception date through 3/31/17 is 5.79% for Class Q shares.
Lipper Multi-Cap Value Funds Average—The Lipper Multi-Cap Value Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Multi-Cap Value Funds category for the periods noted. Funds in the Lipper Average invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap Value Funds in the Lipper Average typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index. The average annual total return for the Average measured from the month-end closest to the inception date through 3/31/17 is 5.78% for Class Q shares.
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 Averages reflect the deduction of operating expenses, but not sales charges or taxes. The Since Inception returns for the Index and the Lipper Averages are measured from the closest month-end to the inception date of Class Q shares, and not from the class’s actual inception date.
Five Largest Holdings expressed as a percentage of net assets as of 3/31/17 (%) | ||||
Apple, Inc., Technology Hardware, Storage & Peripherals | 2.3 | |||
Viacom, Inc., Media | 2.2 | |||
Microsoft Corp., Software | 2.2 | |||
JPMorgan Chase & Co., Banks | 2.1 | |||
MetLife, Inc., Insurance | 2.1 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 3/31/17 (%) | ||||
Hotels, Restaurants & Leisure | 8.7 | |||
Software | 8.5 | |||
Media | 8.1 | |||
Banks | 5.5 | |||
Biotechnology | 4.9 |
Industry weightings reflect only long-term investments and are subject to change.
6 | Visit our website at pgiminvestments.com |
Fees and Expenses (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended March 31, 2017. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses
Prudential Jennison Equity Opportunity Fund | 7 |
Fees and Expenses (continued)
paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Prudential Jennison Equity Opportunity Fund | Beginning Account Value | Ending Account Value March 31, 2017 | Annualized Expense Ratio | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,139.10 | 1.09 | % | $ | 5.81 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.50 | 1.09 | % | $ | 5.49 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,135.00 | 1.79 | % | $ | 9.53 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.01 | 1.79 | % | $ | 9.00 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,135.00 | 1.79 | % | $ | 9.53 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.01 | 1.79 | % | $ | 9.00 | ||||||||||
Class Q | Actual | $ | 1,000.00 | $ | 1,141.20 | 0.67 | % | $ | 3.58 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.59 | 0.67 | % | $ | 3.38 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 1,138.40 | 1.29 | % | $ | 6.88 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.50 | 1.29 | % | $ | 6.49 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,140.80 | 0.79 | % | $ | 4.22 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.99 | 0.79 | % | $ | 3.98 |
*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, 2017, and divided by the 365 days in the Fund’s fiscal year ending September 30, 2017 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgiminvestments.com |
Portfolio of Investments (unaudited)
as of March 31, 2017
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 96.2% | ||||||||
COMMON STOCKS | ||||||||
Aerospace & Defense 2.2% | ||||||||
Orbital ATK, Inc. | 42,597 | $ | 4,174,506 | |||||
United Technologies Corp. | 44,958 | 5,044,737 | ||||||
|
| |||||||
9,219,243 | ||||||||
Banks 5.5% | ||||||||
Bank of America Corp. | 284,255 | 6,705,576 | ||||||
JPMorgan Chase & Co. | 102,804 | 9,030,303 | ||||||
PNC Financial Services Group, Inc. (The) | 64,117 | 7,709,428 | ||||||
|
| |||||||
23,445,307 | ||||||||
Biotechnology 4.9% | ||||||||
Alexion Pharmaceuticals, Inc.* | 46,438 | 5,630,143 | ||||||
Biogen, Inc.* | 19,078 | 5,216,307 | ||||||
BioMarin Pharmaceutical, Inc.* | 55,713 | 4,890,487 | ||||||
Shire PLC, ADR | 28,911 | 5,037,164 | ||||||
|
| |||||||
20,774,101 | ||||||||
Capital Markets 3.2% | ||||||||
Goldman Sachs Group, Inc. (The) | 36,742 | 8,440,372 | ||||||
Morgan Stanley | 117,425 | 5,030,487 | ||||||
|
| |||||||
13,470,859 | ||||||||
Chemicals 1.2% | ||||||||
Monsanto Co. | 44,725 | 5,062,870 | ||||||
Commercial Services & Supplies 0.7% | ||||||||
Mobile Mini, Inc. | 103,735 | 3,163,918 | ||||||
Communications Equipment 1.7% | ||||||||
Infinera Corp.*(a) | 249,721 | 2,554,646 | ||||||
Juniper Networks, Inc. | 165,613 | 4,609,010 | ||||||
|
| |||||||
7,163,656 | ||||||||
Consumer Finance 1.0% | ||||||||
Synchrony Financial | 117,053 | 4,014,918 | ||||||
Diversified Consumer Services 0.5% | ||||||||
Laureate Education, Inc. (Class A Stock)* | 162,598 | 2,320,274 |
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 9 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Telecommunication Services 0.3% | ||||||||
Frontier Communications Corp.(a) | 589,259 | $ | 1,261,014 | |||||
Electric Utilities 1.0% | ||||||||
PG&E Corp. | 64,068 | 4,251,553 | ||||||
Electrical Equipment 0.8% | ||||||||
Eaton Corp. PLC | 42,735 | 3,168,800 | ||||||
Electronic Equipment, Instruments & Components 3.2% | ||||||||
Benchmark Electronics, Inc.* | 137,216 | 4,363,469 | ||||||
FLIR Systems, Inc. | 150,268 | 5,451,723 | ||||||
National Instruments Corp. | 119,151 | 3,879,556 | ||||||
|
| |||||||
13,694,748 | ||||||||
Energy Equipment & Services 4.1% | ||||||||
Halliburton Co. | 151,809 | 7,470,521 | ||||||
Patterson-UTI Energy, Inc. | 252,685 | 6,132,665 | ||||||
Propetro Holding Corp.* | 284,616 | �� | 3,668,700 | |||||
|
| |||||||
17,271,886 | ||||||||
Equity Real Estate Investment Trusts (REITs) 1.3% | ||||||||
CoreCivic, Inc. | 180,831 | 5,681,710 | ||||||
Food Products 2.1% | ||||||||
Conagra Brands, Inc. | 104,658 | 4,221,904 | ||||||
Mondelez International, Inc. (Class A Stock) | 106,153 | 4,573,071 | ||||||
|
| |||||||
8,794,975 | ||||||||
Health Care Providers & Services 1.8% | ||||||||
Cigna Corp. | 50,484 | 7,395,401 | ||||||
Health Care Technology 1.0% | ||||||||
Veeva Systems, Inc. (Class A Stock)* | 83,273 | 4,270,239 | ||||||
Hotels, Restaurants & Leisure 8.7% | ||||||||
Carnival Corp. | 116,534 | 6,865,018 | ||||||
Hyatt Hotels Corp. (Class A Stock)*(a) | 144,272 | 7,787,803 | ||||||
MGM Resorts International | 297,095 | 8,140,403 | ||||||
Playa Hotels & Resorts NV* | 418,880 | 4,398,240 | ||||||
SeaWorld Entertainment, Inc. | 256,521 | 4,686,639 | ||||||
Wendy’s Co. (The)(a) | 369,440 | 5,028,078 | ||||||
|
| |||||||
36,906,181 |
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Household Durables 2.9% | ||||||||
CalAtlantic Group, Inc.(a) | 188,185 | $ | 7,047,528 | |||||
Toll Brothers, Inc.* | 140,714 | 5,081,183 | ||||||
|
| |||||||
12,128,711 | ||||||||
Industrial Conglomerates 1.3% | ||||||||
General Electric Co. | 182,278 | 5,431,884 | ||||||
Insurance 2.1% | ||||||||
MetLife, Inc. | 163,992 | 8,662,057 | ||||||
Internet Software & Services 1.9% | ||||||||
Alphabet, Inc. (Class C Stock)* | 9,781 | 8,113,926 | ||||||
IT Services 1.0% | ||||||||
CSRA, Inc. | 144,574 | 4,234,573 | ||||||
Machinery 0.9% | ||||||||
Dover Corp. | 47,909 | 3,849,488 | ||||||
Media 8.1% | ||||||||
Comcast Corp. (Class A Stock) | 190,522 | 7,161,722 | ||||||
Liberty Global PLC (United Kingdom) (Class C Stock)*(a) | 84,656 | 2,966,346 | ||||||
Live Nation Entertainment, Inc.* | 268,931 | 8,167,434 | ||||||
Twenty-First Century Fox, Inc. (Class A Stock) | 205,469 | 6,655,141 | ||||||
Viacom, Inc. (Class B Stock) | 200,069 | 9,327,217 | ||||||
|
| |||||||
34,277,860 | ||||||||
Metals & Mining 0.3% | ||||||||
Constellium NV (Netherlands) (Class A Stock)* | 213,395 | 1,387,068 | ||||||
Multiline Retail 0.9% | ||||||||
Target Corp. | 68,885 | 3,801,763 | ||||||
Oil, Gas & Consumable Fuels 4.8% | ||||||||
Anadarko Petroleum Corp. | 80,507 | 4,991,434 | ||||||
Continental Resources, Inc.*(a) | 63,911 | 2,902,838 | ||||||
Noble Energy, Inc. | 183,740 | 6,309,631 | ||||||
Royal Dutch Shell PLC (Netherlands) (Class A Stock), ADR | 116,638 | 6,150,322 | ||||||
|
| |||||||
20,354,225 | ||||||||
Paper & Forest Products 0.9% | ||||||||
Louisiana-Pacific Corp.* | 147,022 | 3,649,086 |
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 11 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Pharmaceuticals 4.9% | ||||||||
Allergan PLC | 25,691 | $ | 6,138,094 | |||||
Bristol-Myers Squibb Co. | 110,225 | 5,994,035 | ||||||
Merck & Co., Inc. | 59,887 | 3,805,220 | ||||||
Pfizer, Inc. | 136,413 | 4,666,689 | ||||||
|
| |||||||
20,604,038 | ||||||||
Road & Rail 2.6% | ||||||||
Ryder System, Inc. | 40,467 | 3,052,831 | ||||||
Union Pacific Corp. | 75,973 | 8,047,060 | ||||||
|
| |||||||
11,099,891 | ||||||||
Semiconductors & Semiconductor Equipment 2.1% | ||||||||
Cavium, Inc.* | 56,997 | 4,084,405 | ||||||
Versum Materials, Inc.* | 154,221 | 4,719,163 | ||||||
|
| |||||||
8,803,568 | ||||||||
Software 8.5% | ||||||||
Fortinet, Inc.* | 138,703 | 5,319,260 | ||||||
Guidewire Software, Inc.* | 70,690 | 3,981,968 | ||||||
Microsoft Corp. | 140,175 | 9,231,925 | ||||||
Oracle Corp. | 100,105 | 4,465,684 | ||||||
PTC, Inc.* | 92,847 | 4,879,110 | ||||||
TiVo Corp. | 129,738 | 2,432,588 | ||||||
Verint Systems, Inc.* | 133,283 | 5,781,150 | ||||||
|
| |||||||
36,091,685 | ||||||||
Technology Hardware, Storage & Peripherals 3.7% | ||||||||
Apple, Inc. | 68,930 | 9,902,484 | ||||||
Diebold Nixdorf, Inc.(a) | 184,629 | 5,668,110 | ||||||
|
| |||||||
15,570,594 | ||||||||
Textiles, Apparel & Luxury Goods 2.0% | ||||||||
Coach, Inc. | 204,265 | 8,442,272 | ||||||
Tobacco 0.4% | ||||||||
Turning Point Brands, Inc.* | 113,479 | 1,770,272 | ||||||
Trading Companies & Distributors 1.7% | ||||||||
Univar, Inc.* | 234,187 | 7,180,173 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 406,784,787 | |||||||
|
|
See Notes to Financial Statements.
12 |
Description | Shares | Value | ||||||
SHORT-TERM INVESTMENTS 8.5% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund(b) | 14,625,429 | $ | 14,625,429 | |||||
Prudential Investment Portfolios 2 - Prudential Institutional Money Market Fund | 21,188,267 | 21,192,505 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 35,817,934 | |||||||
|
| |||||||
TOTAL INVESTMENTS 104.7% | $ | 442,602,721 | ||||||
Liabilities in excess of other assets (4.7)% | (19,911,400 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 422,691,321 | ||||||
|
|
The following abbreviations are used in the semiannual report:
ADR—American Depositary Receipt
LIBOR—London Interbank Offered Rate
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 $20,704,994; cash collateral of $21,178,051 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. |
(b) | PGIM Investments LLC, the manager of the Series, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund and Prudential Institutional Money Market Fund. |
(c) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 13 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
The following is a summary of the inputs used as of March 31, 2017 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 9,219,243 | $ | — | $ | — | ||||||
Banks | 23,445,307 | — | — | |||||||||
Biotechnology | 20,774,101 | — | — | |||||||||
Capital Markets | 13,470,859 | — | — | |||||||||
Chemicals | 5,062,870 | — | — | |||||||||
Commercial Services & Supplies | 3,163,918 | — | — | |||||||||
Communications Equipment | 7,163,656 | — | — | |||||||||
Consumer Finance | 4,014,918 | — | — | |||||||||
Diversified Consumer Services | 2,320,274 | — | — | |||||||||
Diversified Telecommunication Services | 1,261,014 | — | — | |||||||||
Electric Utilities | 4,251,553 | — | — | |||||||||
Electrical Equipment | 3,168,800 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 13,694,748 | — | — | |||||||||
Energy Equipment & Services | 17,271,886 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 5,681,710 | — | — | |||||||||
Food Products | 8,794,975 | — | — | |||||||||
Health Care Providers & Services | 7,395,401 | — | — | |||||||||
Health Care Technology | 4,270,239 | — | — | |||||||||
Hotels, Restaurants & Leisure | 36,906,181 | — | — | |||||||||
Household Durables | 12,128,711 | — | — | |||||||||
Industrial Conglomerates | 5,431,884 | — | — | |||||||||
Insurance | 8,662,057 | — | — | |||||||||
Internet Software & Services | 8,113,926 | — | — | |||||||||
IT Services | 4,234,573 | — | — | |||||||||
Machinery | 3,849,488 | — | — | |||||||||
Media | 34,277,860 | — | — | |||||||||
Metals & Mining | 1,387,068 | — | — | |||||||||
Multiline Retail | 3,801,763 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 20,354,225 | — | — | |||||||||
Paper & Forest Products | 3,649,086 | — | — | |||||||||
Pharmaceuticals | 20,604,038 | — | — | |||||||||
Road & Rail | 11,099,891 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 8,803,568 | — | — | |||||||||
Software | 36,091,685 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 15,570,594 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 8,442,272 | — | — | |||||||||
Tobacco | 1,770,272 | — | — | |||||||||
Trading Companies & Distributors | 7,180,173 | — | — | |||||||||
Affiliated Mutual Funds | 35,817,934 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 442,602,721 | $ | — | $ | — | ||||||
|
|
|
|
|
|
See Notes to Financial Statements.
14 |
During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2017 were as follows (unaudited):
Hotels, Restaurants & Leisure | 8.7 | % | ||
Software | 8.5 | |||
Affiliated Mutual Funds (including 5.0% of collateral for securities on loan) | 8.5 | |||
Media | 8.1 | |||
Banks | 5.5 | |||
Biotechnology | 4.9 | |||
Pharmaceuticals | 4.9 | |||
Oil, Gas & Consumable Fuels | 4.8 | |||
Energy Equipment & Services | 4.1 | |||
Technology Hardware, Storage & Peripherals | 3.7 | |||
Electronic Equipment, Instruments & Components | 3.2 | |||
Capital Markets | 3.2 | |||
Household Durables | 2.9 | |||
Road & Rail | 2.6 | |||
Aerospace & Defense | 2.2 | |||
Semiconductors & Semiconductor Equipment | 2.1 | |||
Food Products | 2.1 | |||
Insurance | 2.1 | |||
Textiles, Apparel & Luxury Goods | 2.0 | |||
Internet Software & Services | 1.9 | |||
Health Care Providers & Services | 1.8 | |||
Trading Companies & Distributors | 1.7 | |||
Communications Equipment | 1.7 | |||
Equity Real Estate Investment Trusts (REITs) | 1.3 | |||
Industrial Conglomerates | 1.3 | |||
Chemicals | 1.2 | |||
Health Care Technology | 1.0 | |||
Electric Utilities | 1.0 | |||
IT Services | 1.0 | |||
Consumer Finance | 1.0 | |||
Machinery | 0.9 | |||
Multiline Retail | 0.9 | |||
Paper & Forest Products | 0.9 | |||
Electrical Equipment | 0.8 | |||
Commercial Services & Supplies | 0.7 | |||
Diversified Consumer Services | 0.5 | |||
Tobacco | 0.4 | |||
Metals & Mining | 0.3 | |||
Diversified Telecommunication Services | 0.3 | |||
|
| |||
104.7 | ||||
Liabilities in excess of other assets | (4.7 | ) | ||
|
| |||
100.0 | % |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series entered into financial transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements other financial transactions, where the legal right to set-off exists, is presented in the summary below.
Offsetting of financial instruments/transactions assets and liabilities:
Description | Gross Amounts of Recognized Assets(1) | Collateral Received(2) | Net Amount | |||||||||
Securities on Loan | $ | 20,704,994 | $ | (20,704,994 | ) | $ | — |
(1) | Amount represents market value. |
(2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 15 |
Statement of Assets & Liabilities (unaudited)
as of March 31, 2017
Assets | ||||
Investments at value, including securities on loan of $20,704,994: | ||||
Unaffiliated investments (cost $306,342,440) | $ | 406,784,787 | ||
Affiliated investments (cost $35,816,495) | 35,817,934 | |||
Receivable for investments sold | 1,247,584 | |||
Receivable for Series shares sold | 695,811 | |||
Dividends receivable | 424,143 | |||
Tax reclaim receivable | 239,232 | |||
Prepaid expenses | 1,812 | |||
|
| |||
Total Assets | 445,211,303 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 21,178,051 | |||
Payable for Series shares reacquired | 850,779 | |||
Accrued expenses | 145,533 | |||
Management fee payable | 214,037 | |||
Distribution fee payable | 102,272 | |||
Affiliated transfer agent fee payable | 29,310 | |||
|
| |||
Total Liabilities | 22,519,982 | |||
|
| |||
Net Assets | $ | 422,691,321 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 21,152 | ||
Paid-in capital in excess of par | 300,499,719 | |||
|
| |||
300,520,871 | ||||
Undistributed net investment income | 1,002,481 | |||
Accumulated net realized gain on investment and foreign currency transactions | 20,736,874 | |||
Net unrealized appreciation on investments and foreign currencies | 100,431,095 | |||
|
| |||
Net assets, March 31, 2017 | $ | 422,691,321 | ||
|
|
See Notes to Financial Statements.
16 |
Class A | ||||
Net asset value and redemption price per share | $ | 20.20 | ||
Maximum sales charge (5.50% of offering price) | 1.18 | |||
|
| |||
Maximum offering price to public | $ | 21.38 | ||
|
| |||
Class B | ||||
Net asset value, offering price and redemption price per share | $ | 16.97 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share | $ | 16.97 | ||
|
| |||
Class Q | ||||
Net asset value, offering price and redemption price per share | $ | 20.95 | ||
|
| |||
Class R | ||||
Net asset value, offering price and redemption price per share | $ | 18.04 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share | $ | 20.94 | ||
|
|
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 17 |
Statement of Operation (unaudited)
Six Months Ended March 31, 2017
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of foreign withholding taxes of $16,549) | $ | 3,177,654 | ||
Income from securities lending, net (including affiliated income of $8,960) | 33,913 | |||
Affiliated dividend income | 26,733 | |||
|
| |||
Total income | 3,238,300 | |||
|
| |||
Expenses | ||||
Management fee | 1,221,883 | |||
Distribution fee—Class A | 350,457 | |||
Distribution fee—Class B | 37,280 | |||
Distribution fee—Class C | 192,087 | |||
Distribution fee—Class R | 23,180 | |||
Transfer agent’s fees and expenses (including affiliated expense of $67,300) | 240,000 | |||
Registration fees | 49,000 | |||
Custodian and accounting fees | 42,000 | |||
Shareholders’ reports | 24,000 | |||
Audit fee | 12,000 | |||
Legal fees and expenses | 10,000 | |||
Directors’ fees | 8,000 | |||
Loan interest expense | 19 | |||
Miscellaneous | 11,912 | |||
|
| |||
Total expenses | 2,221,818 | |||
Less: Distribution fee waiver—Class R | (7,727 | ) | ||
|
| |||
Net expenses | 2,214,091 | |||
|
| |||
Net investment income (loss) | 1,024,209 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $862) | 22,464,957 | |||
Foreign currency transactions | (3,287 | ) | ||
|
| |||
22,461,670 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $1,439) | 29,758,507 | |||
Foreign currencies | (9,701 | ) | ||
|
| |||
29,748,806 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 52,210,476 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 53,234,685 | ||
|
|
See Notes to Financial Statements.
18 |
Statement of Changes in Net Assets (unaudited)
Six Months Ended March 31, 2017 | Year Ended September 30, 2016 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 1,024,209 | $ | 3,424,070 | ||||
Net realized gain (loss) on investment and foreign currency transactions | 22,461,670 | 27,616,170 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 29,748,806 | 16,849,331 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 53,234,685 | 47,889,571 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Dividends from net investment income | ||||||||
Class A | (1,787,242 | ) | (1,680,661 | ) | ||||
Class B | (24,068 | ) | (10,680 | ) | ||||
Class C | (125,231 | ) | (51,323 | ) | ||||
Class Q | (178,312 | ) | (185,424 | ) | ||||
Class R | (42,479 | ) | (36,396 | ) | ||||
Class Z | (1,049,595 | ) | (1,456,860 | ) | ||||
|
|
|
| |||||
(3,206,927 | ) | (3,421,344 | ) | |||||
|
|
|
| |||||
Distributions from net realized gains and capital gain distributions received | ||||||||
Class A | (15,484,654 | ) | (17,212,514 | ) | ||||
Class B | (570,058 | ) | (715,935 | ) | ||||
Class C | (2,966,179 | ) | (3,440,456 | ) | ||||
Class Q | (1,047,773 | ) | (1,111,625 | ) | ||||
Class R | (442,240 | ) | (478,768 | ) | ||||
Class Z | (6,756,621 | ) | (10,236,582 | ) | ||||
|
|
|
| |||||
(27,267,525 | ) | (33,195,880 | ) | |||||
|
|
|
| |||||
Series share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 27,984,939 | 39,380,782 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 29,444,764 | 32,791,490 | ||||||
Cost of shares reacquired | (54,256,445 | ) | (154,404,240 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Series share transactions | 3,173,258 | (82,231,968 | ) | |||||
|
|
|
| |||||
Total increase (decrease) | 25,933,491 | (70,959,621 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 396,757,830 | 467,717,451 | ||||||
|
|
|
| |||||
End of period(a) | $ | 422,691,321 | $ | 396,757,830 | ||||
|
|
|
| |||||
(a) Includes undistributed net investment income of: | $ | 1,002,481 | $ | 3,185,199 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 19 |
Notes to Financial Statements (unaudited)
The Prudential Investment Portfolios, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”) as an open-end management investment company. The Company consists of six series: Prudential Jennison Equity Opportunity Fund (the “Series”), Prudential Jennison Growth Fund, and Prudential Balanced Fund which are diversified funds and Prudential Growth Allocation Fund, Prudential Moderate Allocation Fund and Prudential Conservative Allocation Fund which are non-diversified funds. These financial statements relate to Prudential Jennison Equity Opportunity Fund. The financial statements of the other series are not presented herein.
The Series’ investment objective is to achieve long-term growth of capital.
Note 1. Accounting Policies
The Series follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or “the Manager”) (formerly known as Prudential Investments LLC). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.
Common and preferred stocks, exchange-traded funds and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last
20 |
sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.
In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.
Restricted and Illiquid Securities: Subject to guidelines adopted by the Board, the Series may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted
Prudential Jennison Equity Opportunity Fund | 21 |
Notes to Financial Statements (unaudited) (continued)
securities are valued pursuant to the valuation procedures noted above. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Series has valued the investment. Therefore, the Series may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Series’ Subadviser under the guidelines adopted by the Directors of the Series. However, the liquidity of the Series’ investments in Rule 144A securities could be impaired if trading does not develop or declines.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange.
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Portfolio does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from holdings of foreign currencies, forward currency contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the
22 |
amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currency transactions.
Master Netting Arrangements: The Series is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of the Series. A master netting arrangement between the Series and the counterparty permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off, and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
Real Estate Investment Trust (REITs): The Fund invests in 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 source of distributions is disclosed by the REITs.
Concentration of Risk: Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. companies as a result of, among other factors, the possibility of political or economic instability or the level of governmental supervision and regulation of foreign securities markets.
Securities Lending: The Series 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 an affiliated 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 Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral. The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the forms of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the
Prudential Jennison Equity Opportunity Fund | 23 |
Notes to Financial Statements (unaudited) (continued)
value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed on the Statement of Operations as “Income from securities lending, net”.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-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 (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 Series expects to pay dividends from net investment income and distributions from net realized capital gains, if any, 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-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends are recorded, net of reclaimable amounts, at the time the related income is earned.
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Note 2. Agreements
The Series has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and
24 |
supervises the subadvisers’ performance of such services. PGIM has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The subadvisory agreement provides that Jennison will furnish investment advisory services in connection with the management of the Series. In connection therewith, Jennison is obligated to keep certain books and records of the Series. PGIM Investments pays for the services of Jennison, the cost of compensation of officers of the Series, occupancy and certain clerical and bookkeeping costs of the Series. The Series bears all other costs and expenses.
The management fee paid to PGIM Investments is accrued daily and payable monthly at an annual rate of .60% of the average daily net assets of the Series up to $300 million and .575% of the average daily net assets of the Series over $300 million. The effective management fee rate was .59% of the average daily net assets of the Series for the six months ended March 31, 2017.
The Series has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class Q, Class R and Class Z shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A, Class B, Class C and Class R shares, pursuant to plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Q and Class Z shares of the Series.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to .30%, 1%, 1% and .75% of the average daily net assets of the Class A, B, C and R shares, respectively. PIMS has contractually agreed through January 31, 2018 to limit such fees to .50% of the average daily net assets of Class R shares.
PIMS has advised the Series that it has received $89,857 in front-end sales charges resulting from sales of Class A shares during the six months ended March 31, 2017. 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 Series that for the six months ended March 31, 2017, it received $3,110 and $1,848 in contingent deferred sales charges imposed upon redemptions by certain Class B and Class C shareholders, respectively.
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Company’s transfer agent.
Prudential Jennison Equity Opportunity Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.
The Series may invest its overnight sweep cash in the Prudential Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the Prudential Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investments Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. For the period ended March 31, 2017, PGIM, Inc., an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, was compensated $5,334 by PGIM Investments for managing the Series’ securities lending cash collateral as subadviser to the Money Market Fund. Earnings from the Core Fund and the Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
Note 4. Portfolio Securities
The aggregate cost of purchases and the proceeds from sales of portfolio securities, (excluding short-term investments and U.S. Treasury securities), for the six months ended March 31, 2017, were $85,131,083 and $123,966,679, respectively.
Note 5. Tax Information
The United States federal income tax basis of the Series’ investments and net unrealized appreciation as of March 31, 2017 were as follows:
Tax Basis | $ | 343,760,861 | ||
|
| |||
Appreciation | 104,764,984 | |||
Depreciation | (5,923,124 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 98,841,860 | ||
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
26 |
Management has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. The Series’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Series offers Class A, Class B, Class C, Class Q, Class R and Class Z shares. Class A shares are subject to a front-end sales charge of 5.50%. 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%, including investors who purchase their shares through broker-dealers affiliated with Prudential. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. Class C shares are sold with a CDSC of 1% during the first 12 months. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Q, Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock.
There are 1 billion shares of $.001 par value common stock of the Series, designated Class A, Class B, Class C, Class Q, Class R, Class Z and Class T, each of which consists of 100 million, 5 million, 150 million, 260 million, 260 million, 260 and 75 million authorized shares, respectively. The Fund currently does not have any Class T shares outstanding.
As of March 31, 2017, two shareholders of record held 35% of the Series’ outstanding shares.
Prudential Jennison Equity Opportunity Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 524,555 | $ | 10,439,606 | |||||
Shares issued in reinvestment of dividends and distributions | 865,729 | 16,795,140 | ||||||
Shares reacquired | (1,338,686 | ) | (26,537,526 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 51,598 | 697,220 | ||||||
Shares issued upon conversion from other share class(es) | 51,834 | 1,057,083 | ||||||
Shares reacquired upon conversion into other share class(es) | (446,304 | ) | (8,958,038 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (342,872 | ) | $ | (7,203,735 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 609,270 | $ | 11,129,216 | |||||
Shares issued in reinvestment of dividends and distributions | 1,026,262 | 17,959,570 | ||||||
Shares reacquired | (2,905,661 | ) | (52,216,017 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (1,270,129 | ) | (23,127,231 | ) | ||||
Shares issued upon conversion from other share class(es) | 91,060 | 1,672,182 | ||||||
Shares reacquired upon conversion into other share class(es) | (239,303 | ) | (4,108,793 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,418,372 | ) | $ | (25,563,842 | ) | |||
|
|
|
| |||||
Class B | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 20,934 | $ | 352,127 | |||||
Shares issued in reinvestment of dividends and distributions | 35,274 | 576,029 | ||||||
Shares reacquired | (46,241 | ) | (769,947 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 9,967 | 158,209 | ||||||
Shares reacquired upon conversion into other share class(es) | (41,961 | ) | (724,310 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (31,994 | ) | $ | (566,101 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 27,154 | $ | 424,238 | |||||
Shares issued in reinvestment of dividends and distributions | 47,237 | 706,198 | ||||||
Shares reacquired | (105,188 | ) | (1,593,983 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (30,797 | ) | (463,547 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (77,763 | ) | (1,212,274 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (108,560 | ) | $ | (1,675,821 | ) | |||
|
|
|
|
28 |
Class C | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 152,277 | $ | 2,569,278 | |||||
Shares issued in reinvestment of dividends and distributions | 178,318 | 2,911,925 | ||||||
Shares reacquired | (290,531 | ) | (4,855,735 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 40,064 | 625,468 | ||||||
Shares reacquired upon conversion into other share class(es) | (56,846 | ) | (955,533 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (16,782 | ) | $ | (330,065 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 153,837 | $ | 2,387,491 | |||||
Shares issued in reinvestment of dividends and distributions | 216,723 | 3,240,010 | ||||||
Shares reacquired | (697,590 | ) | (10,839,472 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (327,030 | ) | (5,211,971 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (63,434 | ) | (952,667 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (390,464 | ) | $ | (6,164,638 | ) | |||
|
|
|
| |||||
Class Q | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 18,410 | $ | 381,716 | |||||
Shares issued in reinvestment of dividends and distributions | 60,999 | 1,226,085 | ||||||
Shares reacquired | (113,114 | ) | (2,325,051 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (33,705 | ) | $ | (717,250 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 49,588 | $ | 890,000 | |||||
Shares issued in reinvestment of dividends and distributions | 71,779 | 1,297,049 | ||||||
Shares reacquired* | (144,856 | ) | (2,799,886 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (23,489 | ) | $ | (612,837 | ) | |||
|
|
|
| |||||
Class R | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 49,167 | $ | 866,466 | |||||
Shares issued in reinvestment of dividends and distributions | 19,144 | 331,771 | ||||||
Shares reacquired | (67,095 | ) | (1,180,797 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,216 | 17,440 | ||||||
Shares reacquired upon conversion into other share class(es) | (223 | ) | (3,951 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 993 | $ | 13,489 | |||||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 108,052 | $ | 1,791,587 | |||||
Shares issued in reinvestment of dividends and distributions | 21,062 | 332,366 | ||||||
Shares reacquired | (170,977 | ) | (2,900,861 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (41,863 | ) | $ | (776,908 | ) | |||
|
|
|
|
Prudential Jennison Equity Opportunity Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
Class Z | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 649,809 | $ | 13,375,746 | |||||
Shares issued in reinvestment of dividends and distributions | 378,488 | 7,603,814 | ||||||
Shares reacquired | (907,537 | ) | (18,587,389 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 120,760 | 2,392,171 | ||||||
Shares issued upon conversion from other share class(es) | 461,338 | 9,584,749 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 582,098 | $ | 11,976,920 | |||||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 1,202,027 | $ | 22,758,250 | |||||
Shares issued in reinvestment of dividends and distributions | 512,247 | 9,256,297 | ||||||
Shares reacquired | (4,540,046 | ) | (84,054,021 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (2,825,772 | ) | (52,039,474 | ) | ||||
Shares issued upon conversion from other shares class(es) | 283,936 | 5,061,460 | ||||||
Shares reacquired upon conversion into other share class(es) | (23,859 | ) | (459,908 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (2,565,695 | ) | $ | (47,437,922 | ) | |||
|
|
|
|
* | Includes affiliated redemption of 485 shares with a value of $9,885 for Class Q shares. |
Note 7. Borrowings
The Company, on behalf of the Series, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 6, 2016 through October 5, 2017. The Funds pay an annualized commitment fee of .15% of the unused portion of the SCA. Prior to October 6, 2016, the Funds had a prior SCA that provided a commitment of $900 million in which the Funds paid an annualized commitment fee of .11% of the unused portion of the prior SCA. For the SCA and the prior SCA, The Series’ portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under each SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the 1-month LIBOR rate or (3) zero percent.
The Series utilized the SCA during the six months ended March 31, 2017. The average daily balance for the 1 day that the Series had loans outstanding during the period was approximately $337,000, borrowed at a weighted average interest rate of 2.03%. The maximum loan outstanding amount during the period was $337,000. At March 31, 2017 the Series did not have an outstanding loan amount.
30 |
Note 8. Recent Accounting Pronouncements and Reporting Updates
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. Also under the new rules, the SEC will permit open-end funds, with the exception of money market funds, to offer swing pricing, subject to board approval and review. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
Note 9. Other
At the Series’ Board meeting in March, 2017, the Board of Directors approved a change in the methodology of allocating certain expenses, like Transfer Agency (including sub-transfer agency and networking) and Blue Sky fees. The impact to the net assets of the Series and individual share classes is not ascertainable at the present time. Management expects to implement the changes by December 31, 2017.
Prudential Jennison Equity Opportunity Fund | 31 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $19.11 | $18.46 | $21.48 | $19.56 | $15.40 | $12.15 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .05 | .14 | .12 | .05 | .06 | .06 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 2.55 | 1.97 | (1.20 | ) | 2.63 | 4.18 | 3.19 | |||||||||||||||||||||
Total from investment operations | 2.60 | 2.11 | (1.08 | ) | 2.68 | 4.24 | 3.25 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.16 | ) | (.13 | ) | (.04 | ) | (.04 | ) | (.08 | ) | - | |||||||||||||||||
Distributions from net realized gains | (1.35 | ) | (1.33 | ) | (1.90 | ) | (.72 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (1.51 | ) | (1.46 | ) | (1.94 | ) | (.76 | ) | (.08 | ) | - | |||||||||||||||||
Net asset value, end of period | $20.20 | $19.11 | $18.46 | $21.48 | $19.56 | $15.40 | ||||||||||||||||||||||
Total Return(b): | 13.91% | 12.14% | (5.38)% | 14.00% | 27.64% | 26.75% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $232,880 | $226,889 | $245,320 | $303,859 | $260,720 | $213,926 | ||||||||||||||||||||||
Average net assets (000) | $234,299 | $235,287 | $290,318 | $291,978 | $231,545 | $210,097 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.09% | (d) | 1.07% | 1.10% | 1.07% | 1.10% | 1.13% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.09% | (d) | 1.07% | 1.10% | 1.07% | 1.10% | 1.13% | |||||||||||||||||||||
Net investment income (loss) | .48% | (d) | .78% | .59% | .26% | .36% | .44% | |||||||||||||||||||||
Portfolio turnover rate | 21% | (e) | 59% | 69% | 47% | 55% | 40% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
32 |
Class B Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $16.24 | $15.90 | $18.86 | $17.33 | $13.70 | $10.88 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (.02 | ) | .01 | (.02 | ) | (.08 | ) | (.05 | ) | (.03 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 2.16 | 1.68 | (1.04 | ) | 2.33 | 3.70 | 2.85 | |||||||||||||||||||||
Total from investment operations | 2.14 | 1.69 | (1.06 | ) | 2.25 | 3.65 | 2.82 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.06 | ) | (.02 | ) | - | - | (.02 | ) | - | |||||||||||||||||||
Distributions from net realized gains | (1.35 | ) | (1.33 | ) | (1.90 | ) | (.72 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (1.41 | ) | (1.35 | ) | (1.90 | ) | (.72 | ) | (.02 | ) | - | |||||||||||||||||
Net asset value, end of period | $16.97 | $16.24 | $15.90 | $18.86 | $17.33 | $13.70 | ||||||||||||||||||||||
Total Return(b): | 13.50% | 11.34% | (6.04)% | 13.30% | 26.66% | 25.92% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $7,220 | $7,429 | $8,997 | $13,049 | $10,406 | $8,856 | ||||||||||||||||||||||
Average net assets (000) | $7,477 | $8,184 | $11,632 | $13,038 | $9,405 | $9,961 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.79% | (d) | 1.77% | 1.80% | 1.77% | 1.80% | 1.83% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.79% | (d) | 1.77% | 1.80% | 1.77% | 1.80% | 1.83% | |||||||||||||||||||||
Net investment income (loss) | (.22%) | (d) | .08% | (.10)% | (.43)% | (.33)% | (.26)% | |||||||||||||||||||||
Portfolio turnover rate | 21% | (e) | 59% | 69% | 47% | 55% | 40% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 33 |
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $16.24 | $15.89 | $18.86 | $17.33 | $13.70 | $10.88 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (.02 | ) | .01 | (.02 | ) | (.08 | ) | (.05 | ) | (.03 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 2.16 | 1.69 | (1.05 | ) | 2.33 | 3.70 | 2.85 | |||||||||||||||||||||
Total from investment operations | 2.14 | 1.70 | (1.07 | ) | 2.25 | 3.65 | 2.82 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.06 | ) | (.02 | ) | - | - | (.02 | ) | - | |||||||||||||||||||
Distributions from net realized gains | (1.35 | ) | (1.33 | ) | (1.90 | ) | (.72 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (1.41 | ) | (1.35 | ) | (1.90 | ) | (.72 | ) | (.02 | ) | - | |||||||||||||||||
Net asset value, end of period | $16.97 | $16.24 | $15.89 | $18.86 | $17.33 | $13.70 | ||||||||||||||||||||||
Total Return(b): | 13.50% | 11.41% | (6.10)% | 13.30% | 26.66% | 25.92% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $38,619 | $37,229 | $42,644 | $48,927 | $33,179 | $26,667 | ||||||||||||||||||||||
Average net assets (000) | $38,527 | $40,176 | $49,176 | $42,781 | $28,668 | $27,151 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.79% | (d) | 1.77% | 1.80% | 1.77% | 1.80% | 1.83% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.79% | (d) | 1.77% | 1.80% | 1.77% | 1.80% | 1.83% | |||||||||||||||||||||
Net investment income (loss) | (.22%) | (d) | .08% | (.10)% | (.44)% | (.34)% | (.26)% | |||||||||||||||||||||
Portfolio turnover rate | 21% | (e) | 59% | 69% | 47% | 55% | 40% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
34 |
Class Q Shares | ||||||||||||||||||||
Six Months Ended March 31, 2017 | Year Ended September 30, 2016 | November 25, 2014(a) through September 30, 2015 | ||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||
Net Asset Value, Beginning Of Period | $19.80 | $19.09 | $22.73 | |||||||||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income (loss) | .09 | .23 | .18 | |||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 2.64 | 2.03 | (1.82 | ) | ||||||||||||||||
Total from investment operations | 2.73 | 2.26 | (1.64 | ) | ||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (.23 | ) | (.22 | ) | (.10 | ) | ||||||||||||||
Distributions from net realized gains | (1.35 | ) | (1.33 | ) | (1.90 | ) | ||||||||||||||
Total dividends and distributions | (1.58 | ) | (1.55 | ) | (2.00 | ) | ||||||||||||||
Net asset value, end of period | $20.95 | $19.80 | $19.09 | |||||||||||||||||
Total Return(c): | 14.12% | 12.61% | (7.49)% | |||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $17,036 | $16,766 | $16,611 | |||||||||||||||||
Average net assets (000) | $16,761 | $16,698 | $17,054 | |||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .67% | (e) | .66% | .66% | (e) | |||||||||||||||
Expenses before waivers and/or expense reimbursement | .67% | (e) | .66% | .66% | (e) | |||||||||||||||
Net investment income (loss) | .90% | (e) | 1.20% | 1.01% | (e) | |||||||||||||||
Portfolio turnover rate | 21% | (f) | 59% | 69% | (f) |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized. |
(d) | Does not include expenses of the underlying portfolio in which the Series invests. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 35 |
Financial Highlights (unaudited) (continued)
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $17.21 | $16.76 | $19.69 | $17.99 | $14.18 | $11.21 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .02 | .09 | .07 | .01 | .03 | .04 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 2.29 | 1.79 | (1.10 | ) | 2.42 | 3.83 | 2.93 | |||||||||||||||||||||
Total from investment operations | 2.31 | 1.88 | (1.03 | ) | 2.43 | 3.86 | 2.97 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.13 | ) | (.10 | ) | - | (d) | (.01 | ) | (.05 | ) | - | |||||||||||||||||
Distributions from net realized gains | (1.35 | ) | (1.33 | ) | (1.90 | ) | (.72 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (1.48 | ) | (1.43 | ) | (1.90 | ) | (.73 | ) | (.05 | ) | - | |||||||||||||||||
Net asset value, end of period | $18.04 | $17.21 | $16.76 | $19.69 | $17.99 | $14.18 | ||||||||||||||||||||||
Total Return(b): | 13.77% | 11.98% | (5.59)% | 13.81% | 27.34% | 26.49% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $6,182 | $5,880 | $6,430 | $8,188 | $4,418 | $3,056 | ||||||||||||||||||||||
Average net assets (000) | $6,199 | $6,281 | $7,693 | $6,569 | $3,599 | $2,401 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.29% | (e) | 1.27% | 1.30% | 1.27% | 1.30% | 1.33% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.54% | (e) | 1.52% | 1.55% | 1.52% | 1.55% | 1.58% | |||||||||||||||||||||
Net investment income (loss) | .27% | (e) | .57% | .39% | .07% | .17% | .27% | |||||||||||||||||||||
Portfolio turnover rate | 21% | (f) | 59% | 69% | 47% | 55% | 40% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Series invests. |
(d) | Less than $.005 per share |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
36 |
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $19.78 | $19.06 | $22.12 | $20.11 | $15.83 | $12.49 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .08 | .20 | .19 | .12 | .12 | .11 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 2.64 | 2.04 | (1.25 | ) | 2.70 | 4.28 | 3.27 | |||||||||||||||||||||
Total from investment operations | 2.72 | 2.24 | (1.06 | ) | 2.82 | 4.40 | 3.38 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.21 | ) | (.19 | ) | (.10 | ) | (.09 | ) | (.12 | ) | (.04 | ) | ||||||||||||||||
Distributions from net realized gains | (1.35 | ) | (1.33 | ) | (1.90 | ) | (.72 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (1.56 | ) | (1.52 | ) | (2.00 | ) | (.81 | ) | (.12 | ) | (.04 | ) | ||||||||||||||||
Net asset value, end of period | $20.94 | $19.78 | $19.06 | $22.12 | $20.11 | $15.83 | ||||||||||||||||||||||
Total Return(b): | 14.08% | 12.49% | (5.10)% | 14.38% | 28.01% | 27.14% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $120,753 | $102,564 | $147,716 | $194,498 | $120,082 | $94,646 | ||||||||||||||||||||||
Average net assets (000) | $109,898 | $123,372 | $177,458 | $161,815 | $104,364 | $84,211 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .79% | (d) | .77% | .80% | .77% | .80% | .83% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | .79% | (d) | .77% | .80% | .77% | .80% | .83% | |||||||||||||||||||||
Net investment income (loss) | .79% | (d) | 1.06% | .90% | .57% | .66% | .74% | |||||||||||||||||||||
Portfolio turnover rate | 21% | (e) | 59% | 69% | 47% | 55% | 40% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Jennison Equity Opportunity Fund | 37 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | www.pgiminvestments.com |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
INVESTMENT SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN | The Bank of New York Mellon | 225 Liberty Street New York, NY 10281 | ||
| ||||
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 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.pgiminvestments.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.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Jennison Equity Opportunity Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PRUDENTIAL JENNISON EQUITY OPPORTUNITY FUND
SHARE CLASS | A | B | C | Q | R | Z | ||||||
NASDAQ | PJIAX | PJIBX | PJGCX | PJOQX | PJORX | PJGZX | ||||||
CUSIP | 74437E503 | 74437E602 | 74437E701 | 74437E552 | 74437E644 | 74437E800 |
MF172E2
PRUDENTIAL JENNISON GROWTH FUND
SEMIANNUAL REPORT
MARCH 31, 2017
To enroll in e-delivery, go to pgiminvestments.com/edelivery
Objective: Long-term growth of capital |
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, 2017 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates is a registered investment adviser. Both are Prudential Financial companies. © 2017 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgiminvestments.com |
Letter from the President
Dear Shareholder:
We hope you find the semiannual report for the Prudential Jennison Growth Fund informative and useful. The report covers performance for the six-month period ended March 31, 2017. We are proud to announce that Prudential Investments became PGIM® Investments, effective April 3, 2017. Why PGIM? This new name was chosen to further align with
the global investment management businesses of Prudential Financial, which rebranded from Prudential Investment Management in January 2016. This new name allows for one brand and reflects our ability and commitment to delivering investment solutions to clients around the globe. Please keep in mind that only the Fund adviser’s name was changed: the name of your Fund and the management and operation did not change.
Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. We’re part of PGIM, the 9th-largest global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
Prudential Jennison Growth Fund
May 15, 2017
Prudential Jennison Growth Fund | 3 |
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.pgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 3/31/17 (without Sales Charges) | Average Annual Total Returns as of 3/31/17 (with Sales Charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||
Class A | 8.56 | 9.29 | 10.73 | 8.00 | ||||
Class B | 8.21 | 9.84 | 11.08 | 7.85 | ||||
Class C | 8.20 | 13.86 | 11.21 | 7.87 | ||||
Class R | 8.47 | 15.44 | 11.77 | 8.40 | ||||
Class Z | 8.71 | 16.01 | 12.32 | 8.93 | ||||
Russell 1000 Growth Index | 10.01 | 15.76 | 13.32 | 9.13 | ||||
S&P 500 Index | 10.11 | 17.15 | 13.29 | 7.50 | ||||
Lipper Large-Cap Growth Funds Average | 7.89 | 14.55 | 11.60 | 7.94 |
*Not annualized
Source: PGIM Investments LLC and Lipper Inc.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class B* | Class C | Class R | Class Z | ||||||
Maximum Initial Sales Charge | 5.50% of the public offering price | None | None | None | None | |||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1% on sales of $1 million or more made within 12 months of purchase | 5% (Yr. 1) 4% (Yr. 2) 3% (Yr. 3) 2% (Yr. 4) 1% (Yr. 5) 1% (Yr. 6) 0% (Yr. 7) | 1% on sales made within 12 months of purchase | None | None | |||||
Annual Distribution and Service (12b-1) fees (shown as a percentage of average daily net assets) | .30% | 1% | 1% | .75% (.50% currently) | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
Benchmark Definitions
Russell 1000 Growth Index—The Russell 1000 Growth Index is an unmanaged index which contains those securities in the Russell 1000 Index with an above-average growth orientation. Companies in this index tend to exhibit higher price-to-book ratios and price-to-earnings ratios, lower dividend yields, and higher forecasted growth rates.
S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
Lipper Large-Cap Growth Funds Average—The Lipper Large-Cap Growth Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Large-Cap Growth Funds universe for the periods noted. Funds in the Lipper Average invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index.
Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
Prudential Jennison Growth Fund | 5 |
Your Fund’s Performance (continued)
Five Largest Holdings expressed as a (excluding short-term investments) | ||||
Apple, Inc., Technology Hardware, Storage & Peripherals | 6.1 | |||
Amazon.com, Inc., Internet & Direct Marketing Retail | 5.7 | |||
Facebook, Inc., Internet Software & Services | 4.0 | |||
Microsoft Corp., Software | 3.6 | |||
Visa, Inc., IT Services | 3.1 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a (excluding short-term investments) | ||||
Internet Software & Services | 15.3 | |||
Software | 12.3 | |||
Internet & Direct Marketing Retail | 11.5 | |||
IT Services | 7.3 | |||
Biotechnology | 6.5 |
Industry weightings reflect only long-term investments and are subject to change.
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Fees and Expenses (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended March 31, 2017. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses
Prudential Jennison Growth Fund | 7 |
Fees and Expenses (continued)
paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Prudential Jennison Growth Fund | Beginning Account Value | Ending Account Value March 31, 2017 | Annualized Expense Ratio | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,085.60 | 1.03 | % | $ | 5.36 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.80 | 1.03 | % | $ | 5.19 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,082.10 | 1.73 | % | $ | 8.98 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.31 | 1.73 | % | $ | 8.70 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,082.00 | 1.73 | % | $ | 8.98 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.31 | 1.73 | % | $ | 8.70 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 1,084.70 | 1.23 | % | $ | 6.39 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.80 | 1.23 | % | $ | 6.19 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,087.10 | 0.73 | % | $ | 3.80 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.29 | 0.73 | % | $ | 3.68 |
*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, 2017, and divided by the 365 days in the Fund's fiscal year ending September 30, 2017 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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Portfolio of Investments (unaudited)
as of March 31, 2017
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.3% | ||||||||
COMMON STOCKS | ||||||||
Aerospace & Defense 1.6% | ||||||||
Boeing Co. (The) | 316,708 | $ | 56,012,977 | |||||
Air Freight & Logistics 1.5% | ||||||||
FedEx Corp. | 272,490 | 53,176,424 | ||||||
Automobiles 1.2% | ||||||||
Tesla, Inc.*(a) | 161,381 | 44,912,332 | ||||||
Banks 0.9% | ||||||||
JPMorgan Chase & Co. | 388,841 | 34,155,793 | ||||||
Beverages 1.6% | ||||||||
Constellation Brands, Inc. (Class A Stock) | 112,683 | 18,262,534 | ||||||
Monster Beverage Corp.* | 874,083 | 40,356,412 | ||||||
|
| |||||||
58,618,946 | ||||||||
Biotechnology 6.5% | ||||||||
Alexion Pharmaceuticals, Inc.* | 472,816 | 57,324,212 | ||||||
BioMarin Pharmaceutical, Inc.* | 305,809 | 26,843,914 | ||||||
Celgene Corp.* | 684,284 | 85,145,458 | ||||||
Regeneron Pharmaceuticals, Inc.* | 38,661 | 14,981,524 | ||||||
Shire PLC, ADR | 291,749 | 50,831,428 | ||||||
|
| |||||||
235,126,536 | ||||||||
Capital Markets 2.3% | ||||||||
Goldman Sachs Group, Inc. (The) | 281,774 | 64,729,123 | ||||||
S&P Global, Inc. | 138,471 | 18,103,699 | ||||||
|
| |||||||
82,832,822 | ||||||||
Chemicals 0.9% | ||||||||
Albemarle Corp. | 290,782 | 30,718,210 | ||||||
Communications Equipment 0.4% | ||||||||
Palo Alto Networks, Inc.* | 123,051 | 13,865,387 | ||||||
Energy Equipment & Services 0.6% | ||||||||
Halliburton Co. | 421,453 | 20,739,702 | ||||||
Food & Staples Retailing 1.5% | ||||||||
Costco Wholesale Corp. | 324,143 | 54,355,540 |
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 9 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure 2.4% | ||||||||
Marriott International, Inc. (Class A Stock) | 897,121 | $ | 84,490,856 | |||||
Internet & Direct Marketing Retail 11.5% | ||||||||
Amazon.com, Inc.* | 230,200 | 204,081,508 | ||||||
Expedia, Inc. | 174,678 | 22,039,123 | ||||||
Netflix, Inc.* | 695,693 | 102,830,382 | ||||||
Priceline Group, Inc. (The)* | 46,745 | 83,204,698 | ||||||
|
| |||||||
412,155,711 | ||||||||
Internet Software & Services 15.3% | ||||||||
Alibaba Group Holding Ltd. (China), ADR*(a) | 1,039,944 | 112,137,162 | ||||||
Alphabet, Inc. (Class A Stock)* | 113,108 | 95,892,962 | ||||||
Alphabet, Inc. (Class C Stock)* | 115,728 | 96,003,320 | ||||||
Facebook, Inc. (Class A Stock)* | 1,020,299 | 144,933,473 | ||||||
Tencent Holdings Ltd. (China) | 3,461,713 | 99,730,292 | ||||||
|
| |||||||
548,697,209 | ||||||||
IT Services 7.3% | ||||||||
FleetCor Technologies, Inc.* | 284,218 | 43,039,132 | ||||||
Mastercard, Inc. (Class A Stock) | 961,160 | 108,101,665 | ||||||
Visa, Inc. (Class A Stock) | 1,269,332 | 112,805,535 | ||||||
|
| |||||||
263,946,332 | ||||||||
Life Sciences Tools & Services 1.2% | ||||||||
Illumina, Inc.* | 258,309 | 44,077,848 | ||||||
Machinery 1.0% | ||||||||
Parker-Hannifin Corp. | 219,879 | 35,251,001 | ||||||
Media 2.5% | ||||||||
Charter Communications, Inc. (Class A Stock)* | 161,166 | 52,752,855 | ||||||
Time Warner, Inc. | 363,705 | 35,537,616 | ||||||
|
| |||||||
88,290,471 | ||||||||
Oil, Gas & Consumable Fuels 1.9% | ||||||||
Concho Resources, Inc.* | 283,750 | 36,416,475 | ||||||
EOG Resources, Inc. | 311,797 | 30,415,797 | ||||||
|
| |||||||
66,832,272 | ||||||||
Pharmaceuticals 3.6% | ||||||||
Allergan PLC | 293,312 | 70,078,103 | ||||||
Bristol-Myers Squibb Co. | 1,122,467 | 61,039,755 | ||||||
|
| |||||||
131,117,858 |
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Semiconductors & Semiconductor Equipment 5.9% | ||||||||
Broadcom Ltd. | 244,605 | $ | 53,558,711 | |||||
NVIDIA Corp. | 619,511 | 67,483,333 | ||||||
NXP Semiconductors NV (Netherlands)* | 172,163 | 17,818,871 | ||||||
QUALCOMM, Inc. | 514,360 | 29,493,402 | ||||||
Texas Instruments, Inc. | 545,632 | 43,956,114 | ||||||
|
| |||||||
212,310,431 | ||||||||
Software 12.3% | ||||||||
Activision Blizzard, Inc. | 693,162 | 34,561,057 | ||||||
Adobe Systems, Inc.* | 678,108 | 88,242,194 | ||||||
Microsoft Corp. | 1,989,866 | 131,052,575 | ||||||
Red Hat, Inc.* | 445,977 | 38,577,011 | ||||||
salesforce.com, Inc.* | 874,870 | 72,168,026 | ||||||
Snap, Inc. (Class A Stock)*(a) | 357,561 | 8,055,849 | ||||||
Splunk, Inc.*(a) | 511,610 | 31,868,187 | ||||||
Workday, Inc. (Class A Stock)*(a) | 440,334 | 36,671,016 | ||||||
|
| |||||||
441,195,915 | ||||||||
Specialty Retail 5.2% | ||||||||
Home Depot, Inc. (The) | 337,518 | 49,557,768 | ||||||
Industria de Diseno Textil SA (Spain) | 1,697,910 | 59,794,751 | ||||||
O’Reilly Automotive, Inc.* | 205,867 | 55,551,151 | ||||||
Ulta Beauty, Inc.* | 76,809 | 21,908,231 | ||||||
|
| |||||||
186,811,901 | ||||||||
Technology Hardware, Storage & Peripherals 6.1% | ||||||||
Apple, Inc. | 1,527,250 | 219,404,735 | ||||||
Textiles, Apparel & Luxury Goods 4.1% | ||||||||
adidas AG (Germany) | 362,557 | 68,970,175 | ||||||
NIKE, Inc. (Class B Stock) | 1,422,823 | 79,293,926 | ||||||
|
| |||||||
148,264,101 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 3,567,361,310 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 5.6% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund(b) | 20,901 | 20,901 |
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 11 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Description | Shares | Value | ||||||
SHORT-TERM INVESTMENTS (Continued) | ||||||||
AFFILIATED MUTUAL FUNDS (cont’d.) | ||||||||
Prudential Investment Portfolios 2 - Prudential Institutional Money Market Fund | 200,724,137 | $ | 200,764,282 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 200,785,183 | |||||||
|
| |||||||
TOTAL INVESTMENTS 104.9% | 3,768,146,493 | |||||||
Liabilities in excess of other assets (4.9)% | (174,444,288 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 3,593,702,205 | ||||||
|
|
The following abbreviations are used in the semiannual report:
ADR—American Depositary Receipt
LIBOR—London Interbank Offered Rate
* | 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 $195,176,662; cash collateral of $200,545,495 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. |
(b) | PGIM Investments LLC, the manager of the Series, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Ultra Short Bond Fund and Prudential Institutional Money Market Fund. |
(c) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of March 31, 2017 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 56,012,977 | $ | — | $ | — | ||||||
Air Freight & Logistics | 53,176,424 | — | — |
See Notes to Financial Statements.
12 |
Level 1 | Level 2 | Level 3 | ||||||||||
Common Stocks (continued) | ||||||||||||
Automobiles | $ | 44,912,332 | $ | — | $ | — | ||||||
Banks | 34,155,793 | — | — | |||||||||
Beverages | 58,618,946 | — | — | |||||||||
Biotechnology | 235,126,536 | — | — | |||||||||
Capital Markets | 82,832,822 | — | — | |||||||||
Chemicals | 30,718,210 | — | — | |||||||||
Communications Equipment | 13,865,387 | — | — | |||||||||
Energy Equipment & Services | 20,739,702 | — | — | |||||||||
Food & Staples Retailing | 54,355,540 | — | — | |||||||||
Hotels, Restaurants & Leisure | 84,490,856 | — | — | |||||||||
Internet & Direct Marketing Retail | 412,155,711 | — | — | |||||||||
Internet Software & Services | 448,966,917 | 99,730,292 | — | |||||||||
IT Services | 263,946,332 | — | — | |||||||||
Life Sciences Tools & Services | 44,077,848 | — | — | |||||||||
Machinery | 35,251,001 | — | — | |||||||||
Media | 88,290,471 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 66,832,272 | — | — | |||||||||
Pharmaceuticals | 131,117,858 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 212,310,431 | — | — | |||||||||
Software | 441,195,915 | — | — | |||||||||
Specialty Retail | 127,017,150 | 59,794,751 | — | |||||||||
Technology Hardware, Storage & Peripherals | 219,404,735 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 79,293,926 | 68,970,175 | — | |||||||||
Affiliated Mutual Funds | 200,785,183 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 3,539,651,275 | $ | 228,495,218 | $ | — | ||||||
|
|
|
|
|
|
During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2017 were as follows:
Internet Software & Services | 15.3 | % | ||
Software | 12.3 | |||
Internet & Direct Marketing Retail | 11.5 | |||
IT Services | 7.3 | |||
Biotechnology | 6.5 | |||
Technology Hardware, Storage & Peripherals | 6.1 | |||
Semiconductors & Semiconductor Equipment | 5.9 | |||
Affiliated Mutual Fund (including 5.6% of collateral for securities on loan) | 5.6 | |||
Specialty Retail | 5.2 | |||
Textiles, Apparel & Luxury Goods | 4.1 | % | ||
Pharmaceuticals | 3.6 | |||
Media | 2.5 | |||
Hotels, Restaurants & Leisure | 2.4 | |||
Capital Markets | 2.3 | |||
Oil, Gas & Consumable Fuels | 1.9 | |||
Beverages | 1.6 | |||
Aerospace & Defense | 1.6 | |||
Food & Staples Retailing | 1.5 | |||
Air Freight & Logistics | 1.5 |
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 13 |
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Industry (cont’d.) | ||||
Automobiles | 1.2 | % | ||
Life Sciences Tools & Services | 1.2 | |||
Machinery | 1.0 | |||
Banks | 0.9 | |||
Chemicals | 0.9 | |||
Energy Equipment & Services | 0.6 | % | ||
Communications Equipment | 0.4 | |||
|
| |||
104.9 | ||||
Liabilities in excess of other assets | (4.9 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions - Summary of Offsetting and Netting Arrangements:
The Series entered into financial transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements other financial transactions, where the legal right to set-off exists, is presented in the summary below.
Offsetting of financial instruments/transactions assets and liabilities:
Description | Gross Amounts of Recognized Assets(1) | Collateral Received(2) | Net Amount | |||||||||
Securities on Loan | $ | 195,176,662 | $ | (195,176,662 | ) | $ | — | |||||
|
|
(1) | Amount represents market value. |
(2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
14 |
This Page Intentionally Left Blank
Statement of Assets & Liabilities (unaudited)
as of March 31, 2017
Assets | ||||
Investments at value, including securities on loan of $195,176,662: | ||||
Unaffiliated investments (cost $2,038,973,939) | $ | 3,567,361,310 | ||
Affiliated investments (cost $200,753,304) | 200,785,183 | |||
Receivable for investments sold | 41,761,369 | |||
Receivable for Series shares sold | 4,888,716 | |||
Dividends receivable | 889,732 | |||
Tax reclaim receivable | 267,059 | |||
Prepaid expenses | 14,929 | |||
|
| |||
Total Assets | 3,815,968,298 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 200,545,495 | |||
Payable for investments purchased | 7,605,675 | |||
Payable for Series shares reacquired | 6,893,802 | |||
Loan payable | 3,694,000 | |||
Management fee payable | 1,743,233 | |||
Accrued expenses and other liabilities | 959,545 | |||
Distribution fee payable | 503,230 | |||
Affiliated transfer agent fee payable | 319,527 | |||
Deferred directors’ fees | 990 | |||
Loan interest payable | 596 | |||
|
| |||
Total Liabilities | 222,266,093 | |||
|
| |||
Net Assets | $ | 3,593,702,205 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 113,101 | ||
Paid-in capital in excess of par | 1,952,788,819 | |||
|
| |||
1,952,901,920 | ||||
Accumulated net investment loss | (2,062,840 | ) | ||
Accumulated net realized gain on investment and foreign currency transactions | 114,453,127 | |||
Net unrealized appreciation on investments and foreign currencies | 1,528,409,998 | |||
|
| |||
Net assets, March 31, 2017 | $ | 3,593,702,205 | ||
|
|
See Notes to Financial Statements.
16 |
Class A | ||||
Net asset value and redemption price per share | $ | 31.15 |
| |
Maximum sales charge (5.50% of offering price) | 1.81 | |||
|
| |||
Maximum offering price to public | $ | 32.96 | ||
|
| |||
Class B | ||||
Net asset value, offering price and redemption price per share ($15,726,607 ÷ 615,756 shares of common stock issued and outstanding) | $ | 25.54 |
| |
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share ($112,294,778 ÷ 4,387,896 shares of common stock issued and outstanding) | $ | 25.59 |
| |
|
| |||
Class R | ||||
Net asset value, offering price and redemption price per share ($302,983,798 ÷ 10,961,413 shares of common stock issued and outstanding) | $ | 27.64 |
| |
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share ($2,126,637,407 ÷ 63,879,619 shares of common stock issued and outstanding) | $ | 33.29 |
| |
|
|
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 17 |
Statement of Operations (unaudited)
Six Months Ended March 31, 2017
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of foreign withholding taxes of $106,695) | $ | 12,919,798 | ||
Income from securities lending, net (including affiliated income of $164,191) | 544,052 | |||
Affiliated dividend income | 60,442 | |||
|
| |||
Total income | 13,524,292 | |||
|
| |||
Expenses | ||||
Management fee | 9,936,254 | |||
Distribution fee—Class A | 1,517,869 | |||
Distribution fee—Class B | 81,912 | |||
Distribution fee—Class C | 551,829 | |||
Distribution fee—Class R | 1,108,415 | |||
Transfer agent’s fees and expenses (including affiliated expense of $773,200) | 2,265,000 | |||
Custodian and accounting fees | 240,000 | |||
Shareholders’ reports | 82,000 | |||
Registration fees | 61,000 | |||
Directors’ fees | 35,000 | |||
Insurance expenses | 22,000 | |||
Legal fees and expenses | 21,000 | |||
Audit fee | 14,000 | |||
Commitment fee on syndicated credit agreement | 6,000 | |||
Loan interest expense | 2,661 | |||
Miscellaneous | 10,243 | |||
|
| |||
Total expenses | 15,955,183 | |||
Less: Distribution fee waiver—Class R | (369,497 | ) | ||
|
| |||
Net expenses | 15,585,686 | |||
|
| |||
Net investment (loss) | (2,061,394 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 141,298,393 | |||
In-kind redemption | 7,136,475 | |||
Foreign currency transactions | 27,902 | |||
|
| |||
148,462,770 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 143,262,048 | |||
Foreign currencies | (1,834 | ) | ||
|
| |||
143,260,216 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 291,722,986 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 289,661,592 | ||
|
|
See Notes to Financial Statements.
18 |
Statement of Changes in Net Assets (unaudited)
Six Months Ended March 31, 2017 | Year Ended September 30, 2016 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment (loss) | $ | (2,061,394 | ) | $ | (2,165,482 | ) | ||
Net realized gain on investment and foreign currency transactions | 148,462,770 | 126,295,439 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 143,260,216 | 157,588,913 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 289,661,592 | 281,718,870 | ||||||
|
|
|
| |||||
Distributions from net realized gains | ||||||||
Class A | (39,167,677 | ) | (73,078,272 | ) | ||||
Class B | (791,375 | ) | (1,827,195 | ) | ||||
Class C | (5,175,628 | ) | (8,263,488 | ) | ||||
Class R | (12,570,604 | ) | (20,608,511 | ) | ||||
Class Z | (74,652,783 | ) | (123,901,846 | ) | ||||
|
|
|
| |||||
(132,358,067 | ) | (227,679,312 | ) | |||||
|
|
|
| |||||
Series share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 363,275,327 | 902,430,150 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 120,797,164 | 206,743,958 | ||||||
Cost of shares reacquired | (530,652,589 | ) | (882,232,775 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Series share transactions | (46,580,098 | ) | 226,941,333 | |||||
|
|
|
| |||||
Total increase (decrease) | 110,723,427 | 280,980,891 | ||||||
Net Assets: | ||||||||
Beginning of period | 3,482,978,778 | 3,201,997,887 | ||||||
|
|
|
| |||||
End of period | $ | 3,593,702,205 | $ | 3,482,978,778 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 19 |
Notes to Financial Statements (unaudited)
The Prudential Investment Portfolios, Inc. (the “Company”), registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The Company consists of six series: Prudential Jennison Growth Fund (the “Series”), Prudential Jennison Equity Opportunity Fund and Prudential Balanced Fund which are diversified funds and Prudential Growth Allocation Fund, Prudential Moderate Allocation Fund and Prudential Conservative Allocation Fund which are non-diversified funds. These financial statements relate to Prudential Jennison Growth Fund. The financial statements of the other series are not presented herein.
The Series’ investment objective is to achieve long-term growth of capital.
Note 1. Accounting Policies
The Series follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services-Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or “the Manager”) (formerly known as Prudential Investments LLC). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.
Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security
20 |
principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.
In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.
Restricted and Illiquid Securities: Subject to guidelines adopted by the Board, the Series may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities are valued pursuant to the valuation procedures noted above. Illiquid securities
Prudential Jennison Growth Fund | 21 |
Notes to Financial Statements (unaudited) (continued)
are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Series has valued the investment. Therefore, the Series may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Series’ Subadviser under the guidelines adopted by the Directors of the Series. However, the liquidity of the Series’ investments in Rule 144A securities could be impaired if trading does not develop or declines.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Series does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from holdings of foreign currencies, forward currency contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency
22 |
gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.
Master Netting Arrangements: The Series maybe subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of the Series. A master netting arrangement between the Series and the counterparty permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
Securities Lending: The Series 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 an affiliated 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 Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral. The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed on the Statement of Operations as “Income from securities lending, net”.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment transactions are calculated on the specific identification method. Dividend income is recorded on the ex-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.
Prudential Jennison Growth Fund | 23 |
Notes to Financial Statements (unaudited) (continued)
Net investment income or loss (other than distribution fees, which are charged directly to the respective class) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.
Dividends and Distributions: The Series expects to pay dividends from net investment income and distributions from net realized capital and currency gains, if any, 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-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.
Taxes: It is the Series’ 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 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 Company has a management agreement, on behalf of the Series, with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PGIM Investments has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The subadvisory agreement provides that Jennison furnishes investment advisory services in connection with the management of the Series. In connection therewith, Jennison is obligated to keep certain books and records of the Series. PGIM Investments pays for the services of Jennison, the cost of compensation of officers of the Series, occupancy and certain clerical and bookkeeping costs of the Series. The Series bears all other costs and expenses.
The management fee paid to PGIM Investments is accrued daily and payable monthly at an annual rate of .60% of the Series’ average daily net assets up to $300 million, .575% of the average daily net assets on the next $2.7 billion and .55% of the average daily net assets in excess of $3 billion. The effective management fee rate was .57% of the Series’ average daily net assets for the six months ended March 31, 2017.
24 |
The Company has a distribution agreement, on behalf of the Series, with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class R and Class Z shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A, Class B, Class C and Class R shares, pursuant to plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Series.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to .30%, 1%, 1% and .75%, of the average daily net assets of the Class A, B, C and R shares, respectively. PIMS has contractually agreed through January 31, 2018 to limit such fees to .50% of the average daily net assets of the Class R shares.
PIMS has advised the Series that it has received $322,465 in front-end sales charges resulting from sales of Class A shares, during the six months ended March 31, 2017. 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 Series that for the six months ended March 31, 2017, it received $95, $6,544 and $6,581 in contingent deferred sales charges imposed upon redemptions by certain Class A, Class B and Class C shareholders, respectively.
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.
The Series may invest its overnight sweep cash in the Prudential Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the Prudential Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments.
Prudential Jennison Growth Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
For the period ended March 31, 2017, the Manager was compensated $87,318 by PGIM Investments for managing the Series’ securities lending cash collateral as subadviser to the Money Market Fund. Earnings from the Core Fund and the Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
Note 4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities, other than short-term investments, for the six months ended March 31, 2017, were $916,166,545 and $1,014,110,305 respectively.
Note 5. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of March 31, 2017 were as follows:
Tax Basis | $ | 2,248,514,374 | ||
|
| |||
Appreciation | 1,535,718,370 | |||
Depreciation | (16,086,251 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 1,519,632,119 | ||
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
Management has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. The Series’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Series offers Class A, Class B, Class C, Class R and Class Z shares. Class A shares are subject to a maximum front-end sales charge of 5.50%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%. The Class A CDSC is waived for purchases by certain retirement or benefits plans. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. Class C shares are sold with a
26 |
CDSC of 1% on shares redeemed within the first 12 months after purchase. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock.
The Company is authorized to issue 6 billion shares of common stock at $.001 par value per shares. There are 1.3 billion shares authorized for the Series, designated Class A, Class B, Class C, Class R, Class Z and Class T, each of which consists of 125 million, 5 million, 100 million, 220 million, 775 million and 75 million authorized shares, respectively. The Series currently does not have any Class T shares outstanding.
As of March 31, 2017, two shareholders of record held 19% of the Series’ outstanding shares.
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 1,594,748 | $ | 47,054,625 | |||||
Shares issued in reinvestment of dividends and distributions | 1,282,873 | 36,510,583 | ||||||
Shares reacquired | (3,642,060 | ) | (107,419,734 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (764,439 | ) | (23,854,526 | ) | ||||
Shares issued upon conversion from other share class(es) | 107,965 | 3,218,401 | ||||||
Shares reacquired upon conversion into other share class(es) | (1,056,830 | ) | (31,644,457 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,713,304 | ) | $ | (52,280,582 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 6,771,362 | $ | 195,983,825 | |||||
Shares issued in reinvestment of dividends and distributions | 2,261,377 | 67,728,237 | ||||||
Shares reacquired | (9,026,625 | ) | (258,144,381 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 6,114 | 5,567,681 | ||||||
Shares issued upon conversion from other share class(es) | 303,176 | 8,693,141 | ||||||
Shares reacquired upon conversion into other share class(es) | (276,494 | ) | (7,889,700 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 32,796 | $ | 6,371,122 | |||||
|
|
|
|
Prudential Jennison Growth Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
Class B | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 29,370 | $ | 725,637 | |||||
Shares issued in reinvestment of dividends and distributions | 32,673 | 763,887 | ||||||
Shares reacquired | (68,628 | ) | (1,669,911 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (6,585 | ) | (180,387 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (80,765 | ) | (1,973,717 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (87,350 | ) | $ | (2,154,104 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 120,912 | $ | 2,900,218 | |||||
Shares issued in reinvestment of dividends and distributions | 69,502 | 1,736,861 | ||||||
Shares reacquired | (146,953 | ) | (3,499,304 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 43,461 | 1,137,775 | ||||||
Shares reacquired upon conversion into other share class(es) | �� | (219,292 | ) | (5,198,698 | ) | |||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (175,831 | ) | $ | (4,060,923 | ) | |||
|
|
|
| |||||
Class C | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 375,882 | $ | 9,235,109 | |||||
Shares issued in reinvestment of dividends and distributions | 194,171 | 4,549,427 | ||||||
Shares reacquired | (622,730 | ) | (15,142,714 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (52,677 | ) | (1,358,178 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (192,735 | ) | (4,759,319 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (245,412 | ) | $ | (6,117,497 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 1,722,223 | $ | 41,887,020 | |||||
Shares issued in reinvestment of dividends and distributions | 284,466 | 7,123,026 | ||||||
Shares reacquired | (958,681 | ) | (22,680,052 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,048,008 | 26,329,994 | ||||||
Shares reacquired upon conversion into other share class(es) | (92,243 | ) | (2,223,725 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 955,765 | $ | 24,106,269 | |||||
|
|
|
| |||||
Class R | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 1,097,213 | $ | 28,397,964 | |||||
Shares issued in reinvestment of dividends and distributions | 489,026 | 12,352,803 | ||||||
Shares reacquired | (1,519,283 | ) | (40,522,288 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 66,956 | 228,479 | ||||||
Shares issued upon conversion from other share class(es) | 1,894 | 51,964 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 68,850 | $ | 280,443 | |||||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 3,076,822 | $ | 78,342,361 | |||||
Shares issued in reinvestment of dividends and distributions | 758,861 | 20,322,288 | ||||||
Shares reacquired | (2,817,713 | ) | (72,682,689 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,017,970 | 25,981,960 | ||||||
Shares issued upon conversion from class(es) | 1,111 | 29,320 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,019,081 | $ | 26,011,280 | |||||
|
|
|
|
28 |
Class Z | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 8,833,230 | $ | 277,861,992 | |||||
Shares issued in reinvestment of dividends and distributions | 2,192,906 | 66,620,464 | ||||||
Shares reacquired | (11,664,323 | ) | (365,897,942 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (638,187 | ) | (21,415,486 | ) | ||||
Shares issued upon conversion from other share class(es) | 1,122,864 | 35,885,317 | ||||||
Shares reacquired upon conversion into other share class(es) | (24,769 | ) | (778,189 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 459,908 | $ | 13,691,642 | |||||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 19,073,115 | $ | 583,316,726 | |||||
Shares issued in reinvestment of dividends and distributions | 3,453,885 | 109,833,546 | ||||||
Shares reacquired | (17,329,671 | ) | (525,226,349 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 5,197,329 | 167,923,923 | ||||||
Shares issued upon conversion from other share class(es) | 331,592 | 10,084,105 | ||||||
Shares reacquired upon conversion into other share class(es) | (113,606 | ) | (3,494,443 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 5,415,315 | $ | 174,513,585 | |||||
|
|
|
|
Note 7. Borrowings
The Series, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 6, 2016 through October 5, 2017. The Funds pay an annualized commitment fee of .15% of the unused portion of the SCA. Prior to October 6, 2016, the Funds had a prior SCA that provided a commitment of $900 million in which the Funds paid an annualized commitment fee of .11% of the unused portion of the prior SCA. For the SCA and the prior SCA, the Series’ portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under each SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the 1-month LIBOR rate or (3) zero percent.
The Series utilized the SCA during the six months ended March 31, 2017. The balance for the 14 days that the Series had a loan outstanding during the period was $3,410,500, borrowed at a weighted average interest rate of 2.01%. The maximum loan balance outstanding during the period was $6,584,000. At March 31, 2017, the Series had an outstanding loan amount of $3,694,000.
Note 8. In-Kind Redemption
During the six months ended March 31, 2017, the Series settled the redemption of certain fund shares by delivery of certain portfolio securities in lieu of cash. The value of such securities was $107,911,306. Additionally, cash of $72,218 was transferred in-kind. In-kind redemption gains and losses are excluded from the calculation of the Series’ taxable gain (loss) for federal income tax purposes.
Prudential Jennison Growth Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
Note 9. Recent Accounting Pronouncements and Reporting Updates
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. Also under the new rules, the SEC will permit open-end funds, with the exception of money market funds, to offer swing pricing, subject to board approval and review. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
Note 10. Other
At the Series’ Board meeting in March, 2017, the Board of Directors approved a change in the methodology of allocating certain expenses, like Transfer Agency (including sub-transfer agency and networking) and Blue Sky fees. The impact to the net assets of the Series and individual share classes is not ascertainable at the present time. Management expects to implement the changes by December 31, 2017.
30 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $29.86 | $29.37 | $29.31 | $25.59 | $21.16 | $16.88 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (.04 | ) | (.06 | ) | (.08 | ) | (.08 | ) | (.01 | ) | (.04 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 2.49 | 2.60 | 1.70 | 4.79 | 4.44 | 4.32 | ||||||||||||||||||||||
Total from investment operations | 2.45 | 2.54 | 1.62 | 4.71 | 4.43 | 4.28 | ||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||
Distributions from net realized gains | (1.16 | ) | (2.05 | ) | (1.56 | ) | (.99 | ) | - | - | ||||||||||||||||||
Net asset value, end of period | $31.15 | $29.86 | $29.37 | $29.31 | $25.59 | $21.16 | ||||||||||||||||||||||
Total Return(b): | 8.56% | 8.63% | 5.89% | 18.72% | 20.94% | 25.36% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,036,060 | $1,044,317 | $1,026,140 | $1,086,552 | $1,006,407 | $904,802 | ||||||||||||||||||||||
Average net assets (000) | $1,014,812 | $1,061,391 | $1,079,867 | $1,079,657 | $933,021 | $916,595 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.03% | (d) | 1.03% | 1.05% | 1.05% | 1.06% | 1.06% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.03% | (d) | 1.03% | 1.05% | 1.05% | 1.06% | 1.06% | |||||||||||||||||||||
Net investment income (loss) | (.25)% | (d) | (.19)% | (.26)% | (.27)% | (.04)% | (.18)% | |||||||||||||||||||||
Portfolio turnover rate | 27% | (e) | 36% | 41% | 38% | 43% | 44% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 31 |
Financial Highlights (unaudited) (continued)
Class B Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $24.78 | $24.85 | $25.21 | $22.29 | $18.55 | $14.90 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (.12 | ) | (.21 | ) | (.25 | ) | (.23 | ) | (.14 | ) | (.15 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 2.04 | 2.19 | 1.45 | 4.14 | 3.88 | 3.80 | ||||||||||||||||||||||
Total from investment operations | 1.92 | 1.98 | 1.20 | 3.91 | 3.74 | 3.65 | ||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||
Distributions from net realized gains | (1.16 | ) | (2.05 | ) | (1.56 | ) | (.99 | ) | - | - | ||||||||||||||||||
Net asset value, end of period | $25.54 | $24.78 | $24.85 | $25.21 | $22.29 | $18.55 | ||||||||||||||||||||||
Total Return(b): | 8.17% | 7.90% | 5.14% | 17.87% | 20.16% | 24.50% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $15,727 | $17,421 | $21,843 | $26,222 | $28,166 | $30,110 | ||||||||||||||||||||||
Average net assets (000) | $16,429 | $20,138 | $25,070 | $28,811 | $28,518 | $32,576 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.73% | (d) | 1.73% | 1.75% | 1.75% | 1.76% | 1.76% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.73% | (d) | 1.73% | 1.75% | 1.75% | 1.76% | 1.76% | |||||||||||||||||||||
Net investment income (loss) | (.95)% | (d) | (.89)% | (.96)% | (.97)% | (.72)% | (.88)% | |||||||||||||||||||||
Portfolio turnover rate | 27% | (e) | 36% | 41% | 38% | 43% | 44% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
32 |
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $24.82 | $24.89 | $25.25 | $22.32 | $18.58 | $14.93 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (.12 | ) | (.21 | ) | (.25 | ) | (.24 | ) | (.15 | ) | (.15 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 2.05 | 2.19 | 1.45 | 4.16 | 3.89 | 3.80 | ||||||||||||||||||||||
Total from investment operations | 1.93 | 1.98 | 1.20 | 3.92 | 3.74 | 3.65 | ||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||
Distributions from net realized gains | (1.16 | ) | (2.05 | ) | (1.56 | ) | (.99 | ) | - | - | ||||||||||||||||||
Net asset value, end of period | $25.59 | $24.82 | $24.89 | $25.25 | $22.32 | $18.58 | ||||||||||||||||||||||
Total Return(b): | 8.20% | 7.89% | 5.13% | 17.89% | 20.13% | 24.45% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $112,295 | $115,018 | $91,552 | $75,620 | $64,213 | $58,437 | ||||||||||||||||||||||
Average net assets (000) | $110,684 | $110,677 | $83,892 | $71,867 | $59,245 | $55,226 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.73% | (d) | 1.73% | 1.75% | 1.75% | 1.76% | 1.76% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.73% | (d) | 1.73% | 1.75% | 1.75% | 1.76% | 1.76% | |||||||||||||||||||||
Net investment income (loss) | (.95)% | (d) | (.88)% | (.96)% | (.97)% | (.74)% | (.88)% | |||||||||||||||||||||
Portfolio turnover rate | 27% | (e) | 36% | 41% | 38% | 43% | 44% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 33 |
Financial Highlights (unaudited) (continued)
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $26.65 | $26.47 | $26.62 | $23.37 | $19.36 | $15.47 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (.06 | ) | (.10 | ) | (.16 | ) | (.12 | ) | (.05 | ) | (.07 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 2.21 | 2.33 | 1.57 | 4.36 | 4.06 | 3.96 | ||||||||||||||||||||||
Total from investment operations | 2.15 | 2.23 | 1.41 | 4.24 | 4.01 | 3.89 | ||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||
Distributions from net realized gains | (1.16 | ) | (2.05 | ) | (1.56 | ) | (.99 | ) | - | - | ||||||||||||||||||
Net asset value, end of period | $27.64 | $26.65 | $26.47 | $26.62 | $23.37 | $19.36 | ||||||||||||||||||||||
Total Return(b): | 8.47% | 8.39% | 5.68% | 18.48% | 20.71% | 25.15% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $302,984 | $290,328 | $261,304 | $47,957 | $37,198 | $34,287 | ||||||||||||||||||||||
Average net assets (000) | $296,410 | $277,093 | $122,239 | $43,736 | $38,280 | $27,346 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.23% | (d) | 1.23% | 1.25% | 1.25% | 1.26% | 1.26% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.48% | (d) | 1.48% | 1.50% | 1.50% | 1.51% | 1.51% | |||||||||||||||||||||
Net investment income (loss) | (.45)% | (d) | (.39)% | (.57)% | (.48)% | (.25)% | (.38)% | |||||||||||||||||||||
Portfolio turnover rate | 27% | (e) | 36% | 41% | 38% | 43% | 44% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
34 |
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $31.79 | $31.05 | $30.81 | $26.78 | $22.07 | $17.56 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .01 | .03 | .01 | .01 | .06 | .02 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 2.65 | 2.76 | 1.79 | 5.01 | 4.65 | 4.49 | ||||||||||||||||||||||
Total from investment operations | 2.66 | 2.79 | 1.80 | 5.02 | 4.71 | 4.51 | ||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | - | - | - | - | (d) | - | - | |||||||||||||||||||||
Distributions from net realized gains | (1.16 | ) | (2.05 | ) | (1.56 | ) | (.99 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (1.16 | ) | (2.05 | ) | (1.56 | ) | (.99 | ) | - | - | ||||||||||||||||||
Net asset value, end of period | $33.29 | $31.79 | $31.05 | $30.81 | $26.78 | $22.07 | ||||||||||||||||||||||
Total Return(b): | 8.71% | 8.99% | 6.20% | 19.07% | 21.34% | 25.68% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,126,637 | $2,015,895 | $1,801,158 | $1,465,227 | $1,241,434 | $984,242 | ||||||||||||||||||||||
Average net assets (000) | $2,034,775 | $1,944,589 | $1,701,486 | $1,398,654 | $1,077,941 | $1,103,837 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | .73% | (e) | .73% | .75% | .75% | .76% | .76% | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | .73% | (e) | .73% | .75% | .75% | .76% | .76% | |||||||||||||||||||||
Net investment income (loss) | .05% | (e) | .11% | .03% | .03% | .25% | .12% | |||||||||||||||||||||
Portfolio turnover rate | 27% | (f) | 36% | 41% | 38% | 43% | 44% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | Less than $.005 per share. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
Prudential Jennison Growth Fund | 35 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | www.pgiminvestments.com |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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INVESTMENT SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 225 Liberty Street New York, NY 10281 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.pgiminvestments.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.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Jennison Growth Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PRUDENTIAL JENNISON GROWTH FUND
SHARE CLASS | A | B | C | R | Z | |||||
NASDAQ | PJFAX | PJFBX | PJFCX | PJGRX | PJFZX | |||||
CUSIP | 74437E107 | 74437E206 | 74437E305 | 74437E651 | 74437E404 |
MF168E2
PRUDENTIAL ASSET ALLOCATION FUNDS
SEMIANNUAL REPORT
MARCH 31, 2017
To enroll in e-delivery, go to pgiminvestments.com/edelivery
Objective: Balanced / Allocation |
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, 2017 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. QMA is the primary business name for Quantitative Management Associates LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM) a Prudential Financial company. © 2017 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgiminvestments.com |
Letter from the President
Dear Shareholder:
We hope you find the semiannual report for the Prudential Asset Allocation Funds informative and useful. The report covers performance for the six-month period ended March 31, 2017. We are proud to announce that Prudential Investments became PGIM® Investments, effective April 3, 2017. Why PGIM? This new name was chosen to further align with
the global investment management businesses of Prudential Financial, which rebranded from Prudential Investment Management in January 2016. This new name allows for one brand and reflects our ability and commitment to delivering investment solutions to clients around the globe. Please keep in mind that only the Fund adviser’s name was changed: the name of your Fund and the management and operation did not change.
Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. We’re part of PGIM, the 9th-largest global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
Prudential Asset Allocation Funds
May 15, 2017
Prudential Asset Allocation Funds | 3 |
Conservative Allocation Fund
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.pgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 3/31/17 (without Sales Charges) | Average Annual Total Returns as of 3/31/17 (with Sales Charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||
Class A | 3.05 | 1.49 | 3.48 | 3.90 | ||||
Class B | 2.59 | 1.56 | 3.71 | 3.70 | ||||
Class C | 2.67 | 5.64 | 3.88 | 3.71 | ||||
Class R | 2.91 | 7.11 | 4.40 | 4.25 | ||||
Class Z | 3.17 | 7.63 | 4.92 | 4.75 | ||||
Conservative Customized Blend Index | 2.39 | 6.14 | 5.19 | 4.44 | ||||
Russell 1000 Index | 10.09 | 17.43 | 13.26 | 7.58 | ||||
S&P 500 Index | 10.11 | 17.15 | 13.29 | 7.50 | ||||
Lipper Mixed-Asset Target Allocation Conservative Funds Average | 2.10 | 6.84 | 4.43 | 3.93 |
*Not annualized
Source: PGIM Investments LLC and Lipper Inc.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class B* | Class C | Class R | Class Z | ||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | |||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1% on sales of $1 million or more made within 12 months of purchase | 5% (Yr.1) 4% (Yr.2) 3% (Yr.3) 2% (Yr.4) 1% (Yr.5) 1% (Yr.6) 0% (Yr.7) | 1% on sales made within 12 months of purchase | None | None | |||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | .30% (.25% currently) | 1% | 1% | .75% (.50% currently) | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
Benchmark Definitions
Conservative Customized Blend Index—The Conservative Customized Blend is a model portfolio consisting of the Russell 3000 Index (25.5%), the MSCI ACWI ex-US ND Index (10%), the Bloomberg Barclays US Aggregate Bond Index (29%), the Bloomberg Barclays 1-3 Year Government/Credit Index (29%), the FTSE EPRA/NAREIT Developed Real Estate Net Index (5%), and the Citigroup 3-Month T-Bill Index (1.5%).
Russell 1000 Index—The Russell 1000 Index is an unmanaged index that consists of the stocks of the 1,000 largest firms in the Russell 3000 Index, an index that represents approximately 98% of the US market.
S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
Lipper Mixed-Asset Target Allocation Conservative Funds Average—The Lipper Mixed-Asset Target Allocation Conservative Funds Average (Lipper Average) is based on an average return of all funds in the Lipper Mixed-Asset Target Allocation Conservative Funds universe for the periods noted. Funds in the Lipper Average maintain a mix of between 20% and 40% equity securities with the remainder in bonds, cash, and cash equivalents.
Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
Prudential Asset Allocation Funds | 5 |
Conservative Customized Blend
Performance Target
The Prudential Conservative Allocation Fund seeks to exceed a performance target—the Conservative Customized Blend Index—consisting of a weighted average return of six securities indexes that are generally considered representative of the asset classes in which the Fund may invest. The chart below shows both the total returns of these indexes for the six-month period ended March 31, 2017, and their weightings in the Conservative Customized Blend Index. The Fund seeks to exceed this target by holding positions in specific PGIM Investments mutual funds. In response to market developments, the Fund’s investment subadviser may vary its holdings in those funds (within specified ranges).
Source: Lipper Inc.
The Bloomberg Barclays US Aggregate Bond Index is an unmanaged index of investment-grade securities issued by the US Government and its agencies and by corporations with between one and 10 years remaining to maturity. It gives a broad look at how prices of short- and intermediate-term bonds have performed.
The Bloomberg Barclays 1-3 Year Government/Credit Index is considered representative of the performance of short-term US corporate bonds and US government bonds with maturities from one to three years.
The Citigroup 3-Month T-Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3-month Treasury Bill issues.
The MSCI ACWI ex-US ND Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the US. It comprises approximately 23 developed and 21 emerging market country indexes. The Net Dividend (ND) version of the MSCI ACWI ex-US ND Index reflects the impact of the maximum withholding taxes on reinvested dividends.
The Russell 3000 Index is an unmanaged index that represents the US equity market—it covers about 98% of all investable stocks in the US.
The FTSE EPRA/NAREIT Developed Real Estate Net Index is designed to track the performance of listed real estate companies and REITs worldwide.
6 | Visit our website at pgiminvestments.com |
Moderate Allocation Fund
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.pgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 3/31/17 | Average Annual Total Returns as of 3/31/17 (with Sales Charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||
Class A | 5.56 | 4.64 | 5.32 | 4.05 | ||||
Class B | 5.23 | 4.93 | 5.57 | 3.86 | ||||
Class C | 5.23 | 8.85 | 5.72 | 3.86 | ||||
Class R | 5.48 | 10.43 | 6.18 | 4.37 | ||||
Class Z | 5.73 | 10.99 | 6.79 | 4.90 | ||||
Moderate Customized Blend Index | 4.92 | 10.17 | 7.60 | 5.18 | ||||
Russell 1000 Index | 10.09 | 17.43 | 13.26 | 7.58 | ||||
S&P 500 Index | 10.11 | 17.15 | 13.29 | 7.50 | ||||
Lipper Mixed-Asset Target Allocation Moderate Funds Average** | 4.33 | 9.86 | 6.28 | 4.49 | ||||
Lipper Mixed-Asset Target Allocation Growth Funds Average** | 5.55 | 11.16 | 7.63 | 4.91 |
*Not annualized
**The Fund is compared to the Lipper Mixed-Asset Target Allocation Moderate Funds Performance Universe, although Lipper classifies the Fund in the Lipper Mixed-Asset Target Allocation Growth Funds Performance Universe. The Lipper Mixed-Asset Target Allocation Moderate Funds Performance Universe is utilized because the Fund’s manager believes that the funds included in this Universe provide a more appropriate basis for Fund performance comparisons.
Source: PGIM Investments LLC and Lipper Inc.
Prudential Asset Allocation Funds | 7 |
Moderate Allocation Fund
Your Fund’s Performance (continued)
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class B* | Class C | Class R | Class Z | ||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | |||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1% on sales of $1 million or more made within 12 months of purchase | 5% (Yr.1) 4% (Yr.2) 3% (Yr.3) 2% (Yr.4) 1% (Yr.5) 1% (Yr.6) 0% (Yr.7) | 1% on sales made within 12 months of purchase | None | None | |||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | .30% (.25% currently) | 1% | 1% | .75% (.50% currently) | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
Benchmark Definitions
Moderate Customized Blend Index—The Moderate Customized Blend is a model portfolio consisting of the Russell 3000 Index (45%), the MSCI ACWI ex-US ND Index (15%), the Bloomberg Barclays US Aggregate Bond Index (19%), the Bloomberg Barclays 1-3 Year Government/Credit Index (14%), the FTSE EPRA/NAREIT Developed Real Estate Net Index (5%), and the Citigroup 3-Month T-Bill Index (2%).
Russell 1000 Index—The Russell 1000 Index is an unmanaged index that consists of the stocks of the 1,000 largest firms in the Russell 3000 Index, an index that represents approximately 98% of the US market.
S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
Lipper Mixed-Asset Target Allocation Moderate Funds Average—The Lipper Mixed-Asset Target Allocation Moderate Funds Average (Lipper Average) is based on an average return of all funds in the Lipper Mixed-Asset Target Allocation Moderate Funds universe for the periods noted. These are funds that, by portfolio practice, maintain a mix of between 40%-60% equity securities, with the remainder invested in bonds, cash, and cash equivalents.
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Lipper Mixed-Asset Target Allocation Growth Funds Average—The Lipper Mixed-Asset Target Allocation Growth Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Mixed-Asset Target Allocation Growth Funds universe for the periods noted. These are funds that, by portfolio practice, maintain a mix of between 60%-80% equity securities, with the remainder invested in bonds, cash, and cash equivalents.
Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Averages reflect the deduction of operating expenses, but not sales charges or taxes.
Prudential Asset Allocation Funds | 9 |
Moderate Customized Blend
Performance Target
The Prudential Moderate Allocation Fund seeks to exceed a performance target—the Moderate Customized Blend Index—consisting of a weighted average return of six securities indexes that are generally considered representative of the asset classes in which the Fund may invest. The chart below shows both the total returns of these indexes for the six-month period ended March 31, 2017, and their weightings in the Moderate Customized Blend Index. The Fund seeks to exceed this target by holding positions in specific PGIM Investments mutual funds. In response to market developments, the Fund’s investment subadviser may vary its holdings in those funds (within specified ranges).
Source: Lipper Inc.
The Bloomberg Barclays US Aggregate Bond Index is an unmanaged index of investment-grade securities issued by the US Government and its agencies and by corporations with between one and 10 years remaining to maturity. It gives a broad look at how prices of short- and intermediate-term bonds have performed.
The Bloomberg Barclays 1-3 Year Government/Credit Index is considered representative of the performance of short-term US corporate bonds and US government bonds with maturities from one to three years.
The Citigroup 3-Month T-Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3-month Treasury Bill issues.
The MSCI ACWI ex-US ND Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the US. It comprises approximately 23 developed and 21 emerging market country indexes. The Net Dividend (ND) version of the MSCI ACWI ex-US ND Index reflects the impact of the maximum withholding taxes on reinvested dividends.
The Russell 3000 Index is an unmanaged index that represents the US equity market—it covers about 98% of all investable stocks in the US.
The FTSE EPRA/NAREIT Developed Real Estate Net Index is designed to track the performance of listed real estate companies and REITs worldwide.
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Growth Allocation Fund
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.pgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 3/31/17 (without Sales Charges) | Average Annual Total Returns as of 3/31/17 (with Sales Charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||
Class A | 8.09 | 7.83 | 6.80 | 3.79 | ||||
Class B | 7.62 | 8.26 | 7.06 | 3.59 | ||||
Class C | 7.68 | 12.24 | 7.22 | 3.60 | ||||
Class R | 7.97 | 13.88 | 7.75 | 4.13 | ||||
Class Z | 8.18 | 14.34 | 8.27 | 4.63 | ||||
Growth Customized Blend Index | 7.37 | 14.12 | 9.63 | 5.50 | ||||
Russell 1000 Index | 10.09 | 17.43 | 13.26 | 7.58 | ||||
S&P 500 Index | 10.11 | 17.15 | 13.29 | 7.50 | ||||
Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Average | 7.40 | 14.22 | 8.60 | 4.35 |
*Not annualized
Source: PGIM Investments LLC and Lipper Inc.
Prudential Asset Allocation Funds | 11 |
Growth Allocation Fund
Your Fund’s Performance (continued)
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class B* | Class C | Class R | Class Z | ||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | |||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1% on sales of $1 million or more made within 12 months of purchase | 5% (Yr.1) 4% (Yr.2) 3% (Yr.3) 2% (Yr.4) 1% (Yr.5) 1% (Yr.6) 0% (Yr.7) | 1% on sales made within 12 months of purchase | None | None | |||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | .30% (.25% currently) | 1% | 1% | .75% (.50% currently) | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
Benchmark Definitions
Growth Customized Blend Index—The Growth Customized Blend is a model portfolio consisting of the Russell 3000 Index (60.5%), the MSCI ACWI ex-US ND Index (24%), the Bloomberg Barclays US Aggregate Bond Index (8%), the FTSE EPRA/NAREIT Developed Real Estate Net Index (5%), and the Citigroup 3-Month T-Bill Index (2.5%).
Russell 1000 Index—The Russell 1000 Index is an unmanaged index that consists of the stocks of the 1,000 largest firms in the Russell 3000 Index, an index that represents approximately 98% of the US market.
S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Average—The Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Mixed-Asset Target Allocation Aggressive Growth Funds universe for the periods noted. Funds in the Lipper Average are funds of funds that, by portfolio practice, maintain at least 80% of assets in equity securities, with the remainder invested in bonds, cash, and cash equivalents.
12 | Visit our website at pgiminvestments.com |
Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
Prudential Asset Allocation Funds | 13 |
Growth Customized Blend
Performance Target
The Prudential Growth Allocation Fund seeks to exceed a performance target—the Growth Customized Blend Index—consisting of a weighted average return of five securities indexes that are generally considered representative of the asset classes in which the Fund may invest. The chart below shows both the total returns of these indexes for the six-month period ended March 31, 2017, and their weightings in the Growth Customized Blend Index. The Fund seeks to exceed this target by holding positions in specific PGIM Investments mutual funds. In response to market developments, the Fund’s investment subadviser may vary its holdings in those funds (within specified ranges).
Source: Lipper Inc.
The Bloomberg Barclays US Aggregate Bond Index is an unmanaged index of investment-grade securities issued by the US Government and its agencies and by corporations with between one and 10 years remaining to maturity. It gives a broad look at how prices of short- and intermediate-term bonds have performed.
The Citigroup 3-Month T-Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3-month Treasury Bill issues.
The MSCI ACWI ex-US ND Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the US. It comprises approximately 23 developed and 21 emerging market country indexes. The Net Dividend (ND) version of the MSCI ACWI ex-US ND Index reflects the impact of the maximum withholding taxes on reinvested dividends.
The Russell 3000 Index is an unmanaged index that represents the US equity market—it covers about 98% of all investable stocks in the US.
The FTSE EPRA/NAREIT Developed Real Estate Net Index is designed to track the performance of listed real estate companies and REITs worldwide.
14 | Visit our website at pgiminvestments.com |
Fees and Expenses (unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 held through the six-month period ended March 31, 2017. These examples are for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the tables on the following pages provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the tables below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the tables on the following pages. 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 tables, 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 PGIM Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending
Prudential Asset Allocation Funds | 15 |
Fees and Expenses (continued)
account value, as these additional expenses are not reflected in the information provided in the expense tables. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the tables is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Prudential Conservative Allocation Fund | Beginning Account Value October 1, 2016 | Ending Account March 31, 2017 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,030.50 | 1.48 | % | $ | 7.49 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.55 | 1.48 | % | $ | 7.44 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,025.90 | 2.23 | % | $ | 11.26 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,013.81 | 2.23 | % | $ | 11.19 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,026.70 | 2.23 | % | $ | 11.27 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,013.81 | 2.23 | % | $ | 11.19 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 1,029.10 | 1.73 | % | $ | 8.75 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.31 | 1.73 | % | $ | 8.69 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,031.70 | 1.23 | % | $ | 6.23 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.80 | 1.23 | % | $ | 6.19 |
16 | Visit our website at pgiminvestments.com |
Prudential Moderate Allocation Fund | Beginning Account Value October 1, 2016 | Ending Account March 31, 2017 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,055.60 | 1.56 | % | $ | 8.00 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.14 | 1.56 | % | $ | 7.85 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,052.30 | 2.31 | % | $ | 11.83 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,013.41 | 2.31 | % | $ | 11.60 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,052.30 | 2.31 | % | $ | 11.83 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,013.41 | 2.31 | % | $ | 11.60 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 1,054.80 | 1.81 | % | $ | 9.28 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.90 | 1.81 | % | $ | 9.10 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,057.30 | 1.31 | % | $ | 6.73 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.39 | 1.31 | % | $ | 6.60 |
Prudential Growth Allocation Fund | Beginning Account October 1, 2016 | Ending Account Value March 31, 2017 | Annualized Based on the | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,080.90 | 1.65 | % | $ | 8.58 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.68 | 1.65 | % | $ | 8.32 | ||||||||||
Class B | Actual | $ | 1,000.00 | $ | 1,076.20 | 2.40 | % | $ | 12.44 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,012.94 | 2.40 | % | $ | 12.06 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,076.80 | 2.40 | % | $ | 12.45 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,012.94 | 2.40 | % | $ | 12.06 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 1,079.70 | 1.90 | % | $ | 9.87 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.44 | 1.90 | % | $ | 9.57 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,081.80 | 1.40 | % | $ | 7.29 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.93 | 1.40 | % | $ | 7.06 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 182 days in the six-month period ended March 31, 2017, and divided by the 365 days in each Fund's fiscal year ending September 30, 2017 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which each Fund may invest.
Prudential Asset Allocation Funds | 17 |
Prudential Conservative Allocation Fund
Portfolio of Investments (unaudited)
as of March 31, 2017
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.1% |
| |||||||
AFFILIATED MUTUAL FUNDS |
| |||||||
Prudential Absolute Return Bond Fund (Class Q) | 934,469 | $ | 9,101,731 | |||||
Prudential Global Real Estate Fund (Class Q) | 279,342 | 6,458,388 | ||||||
Prudential Government Income Fund (Class Q) | 820,818 | 7,814,191 | ||||||
Prudential High Yield Fund (Class Q) | 472,555 | 2,608,503 | ||||||
Prudential Jennison 20/20 Focus Fund (Class Q) | 79,569 | 1,296,982 | ||||||
Prudential Jennison Equity Opportunity Fund (Class Q) | 123,390 | 2,585,015 | ||||||
Prudential Jennison Growth Fund (Class Z)* | 87,499 | 2,912,845 | ||||||
Prudential Jennison International Opportunities Fund (Class Q) | 387,187 | 5,192,172 | ||||||
Prudential Jennison Mid-Cap Growth Fund, Inc. (Class Q)* | 50,514 | 1,945,812 | ||||||
Prudential Jennison Natural Resources Fund, Inc. (Class Q) | 6,861 | 259,810 | ||||||
Prudential Jennison Small Company Fund, Inc. (Class Q) | 179,157 | 4,547,006 | ||||||
Prudential Jennison Value Fund (Class Q) | 66,793 | 1,301,127 | ||||||
Prudential QMA International Equity Fund (Class Q) | 1,119,610 | 7,747,702 | ||||||
Prudential QMA Large-Cap Core Equity Fund (Class Q) | 292,557 | 4,917,882 | ||||||
Prudential QMA Long-Short Equity Fund (Class Z)* | 324,980 | 3,883,508 | ||||||
Prudential QMA Mid-Cap Value Fund (Class Q) | 73,755 | 1,623,346 | ||||||
Prudential QMA Small-Cap Value Fund (Class Q) | 121,051 | 2,594,114 | ||||||
Prudential QMA Strategic Value Fund (Class Z) | 488,751 | 7,106,436 | ||||||
Prudential Short Duration Multi-Sector Bond Fund (Class Q) | 3,703,284 | 35,736,690 | ||||||
Prudential Short-Term Corporate Bond Fund, Inc. (Class Q) | 59,736 | 661,280 | ||||||
Prudential Total Return Bond Fund (Class Q) | 1,278,342 | 18,216,367 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS |
| 128,510,907 | ||||||
|
| |||||||
SHORT-TERM INVESTMENT 0.9% |
| |||||||
AFFILIATED MUTUAL FUND |
| |||||||
Prudential Investment Portfolios 2 - | 1,176,485 | 1,176,485 | ||||||
|
| |||||||
TOTAL INVESTMENTS(a) 100.0% |
| 129,687,392 | ||||||
Liabilities in excess of other assets 0.0% |
| (61,334 | ) | |||||
|
| |||||||
NET ASSETS 100.0% |
| $ | 129,626,058 | |||||
|
|
The following abbreviation is used in the semiannual report.
LIBOR—London Interbank Offered Rate
* | Non-income producing security. |
(a) | PGIM Investments LLC, the manager of the Fund, also serves as the manager of the underlying funds in which the Fund invests. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 19 |
Prudential Conservative Allocation Fund
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Fair Value Measurements:
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—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of March 31, 2017 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities |
| |||||||||||
Affiliated Mutual Funds | $ | 129,687,392 | $ | — | $ | — | ||||||
|
|
|
|
|
|
During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.
Investment Allocations:
The investment allocation of investments and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2017 were as follows:
Short-Term Bond | 23.6 | % | ||
Intermediate Term Bond | 22.1 | |||
U.S. Small/Mid Cap | 11.6 | |||
High Yield Bond | 11.4 | |||
International Equity | 10.2 | |||
U.S. Large-Cap Value | 6.9 | |||
U.S. Large-Cap Growth | 5.3 | |||
Global Real Estate | 5.0 | % | ||
Long Short | 3.0 | |||
|
| |||
99.1 | ||||
Short-Term Investment | 0.9 | |||
Liabilities in excess of other assets | 0.0 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
20 |
Prudential Moderate Allocation Fund
Portfolio of Investments (unaudited)
as of March 31, 2017
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.2% |
| |||||||
AFFILIATED MUTUAL FUNDS |
| |||||||
Prudential Absolute Return Bond Fund (Class Q) | 853,937 | $ | 8,317,346 | |||||
Prudential Global Real Estate Fund (Class Q) | 355,955 | 8,229,687 | ||||||
Prudential Government Income Fund (Class Q) | 522,544 | 4,974,618 | ||||||
Prudential High Yield Fund (Class Q) | 302,862 | 1,671,798 | ||||||
Prudential Jennison 20/20 Focus Fund (Class Q) | 202,101 | 3,294,253 | ||||||
Prudential Jennison Equity Opportunity Fund (Class Q) | 315,060 | 6,600,502 | ||||||
Prudential Jennison Growth Fund (Class Z)* | 148,828 | 4,954,478 | ||||||
Prudential Jennison International Opportunities Fund (Class Q) | 740,017 | 9,923,623 | ||||||
Prudential Jennison Mid-Cap Growth Fund, Inc. (Class Q)* | 128,909 | 4,965,586 | ||||||
Prudential Jennison Natural Resources Fund, Inc. (Class Q) | 8,949 | 338,893 | ||||||
Prudential Jennison Small Company Fund, Inc. (Class Q) | 375,419 | 9,528,132 | ||||||
Prudential Jennison Value Fund (Class Q) | 253,600 | 4,940,121 | ||||||
Prudential QMA International Equity Fund (Class Q) | 2,142,250 | 14,824,370 | ||||||
Prudential QMA Large-Cap Core Equity Fund (Class Q) | 887,655 | 14,921,480 | ||||||
Prudential QMA Long-Short Equity Fund (Class Z)* | 552,102 | 6,597,621 | ||||||
Prudential QMA Mid-Cap Value Fund (Class Q) | 131,492 | 2,894,133 | ||||||
Prudential QMA Small-Cap Value Fund (Class Q) | 250,683 | 5,372,126 | ||||||
Prudential QMA Strategic Value Fund (Class Z) | 905,908 | 13,171,898 | ||||||
Prudential Short Duration Multi-Sector Bond Fund (Class Q) | 2,231,991 | 21,538,709 | ||||||
Prudential Total Return Bond Fund (Class Q) | 1,163,913 | 16,585,761 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS |
| 163,645,135 | ||||||
|
| |||||||
SHORT-TERM INVESTMENT 1.0% |
| |||||||
AFFILIATED MUTUAL FUND |
| |||||||
Prudential Investment Portfolios 2 - | 1,559,217 | 1,559,217 | ||||||
|
| |||||||
TOTAL INVESTMENTS(a) 100.2% |
| 165,204,352 | ||||||
Liabilities in excess of other assets (0.2)% |
| (250,301 | ) | |||||
|
| |||||||
NET ASSETS 100.0% |
| $ | 164,954,051 | |||||
|
|
The following abbreviation is used in the semiannual report:
LIBOR—London Interbank Offered Rate
* | Non-income producing security. |
(a) | PGIM Investments LLC, the manager of the Fund, also serves as the manager of the underlying funds in which the Fund invests. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 21 |
Prudential Moderate Allocation Fund
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Fair Value Measurements:
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—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of March 31, 2017 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Affiliated Mutual Funds | $ | 165,204,352 | $ | — | $ | — | ||||||
|
|
|
|
|
|
During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.
Investment Allocations:
The investment allocation of investments and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2017 were as follows:
U.S. Small/Mid Cap | 19.8 | % | ||
International Equity | 15.5 | |||
Intermediate Term Bond | 13.6 | |||
U.S. Large-Cap Value | 12.9 | |||
Short-Term Bond | 12.0 | |||
U.S. Large-Cap Growth | 10.0 | |||
High Yield Bond | 6.4 | |||
Global Real Estate | 5.0 | % | ||
Long Short | 4.0 | |||
|
| |||
99.2 | ||||
Short-Term Investment | 1.0 | |||
Liabilities in excess of other assets | (0.2 | ) | ||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
22 |
Prudential Growth Allocation Fund
Portfolio of Investments (unaudited)
as of March 31, 2017
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.2% |
| |||||||
AFFILIATED MUTUAL FUNDS |
| |||||||
Prudential Absolute Return Bond Fund (Class Q) | 49,746 | $ | 484,524 | |||||
Prudential Global Real Estate Fund (Class Q) | 209,587 | 4,845,654 | ||||||
Prudential High Yield Fund (Class Q) | 88,490 | 488,466 | ||||||
Prudential Jennison 20/20 Focus Fund (Class Q) | 179,206 | 2,921,055 | ||||||
Prudential Jennison Equity Opportunity Fund (Class Q) | 325,388 | 6,816,885 | ||||||
Prudential Jennison Growth Fund (Class Z)* | 102,343 | 3,407,002 | ||||||
Prudential Jennison International Opportunities Fund (Class Q) | 691,893 | 9,278,279 | ||||||
Prudential Jennison Mid-Cap Growth Fund, Inc. (Class Q)* | 95,096 | 3,663,106 | ||||||
Prudential Jennison Natural Resources Fund, Inc. (Class Q) | 5,450 | 206,410 | ||||||
Prudential Jennison Small Company Fund, Inc. (Class Q) | 317,859 | 8,067,272 | ||||||
Prudential Jennison Value Fund (Class Q) | 162,695 | 3,169,290 | ||||||
Prudential QMA International Equity Fund (Class Q) | 2,038,572 | 14,106,919 | ||||||
Prudential QMA Large-Cap Core Equity Fund (Class Q) | 655,079 | 11,011,878 | ||||||
Prudential QMA Long-Short Equity Fund (Class Z)* | 407,694 | 4,871,941 | ||||||
Prudential QMA Mid-Cap Value Fund (Class Q) | 99,808 | 2,196,767 | ||||||
Prudential QMA Small-Cap Value Fund (Class Q) | 193,728 | 4,151,600 | ||||||
Prudential QMA Strategic Value Fund (Class Z) | 752,228 | 10,937,396 | ||||||
Prudential Short Duration Multi-Sector Bond Fund (Class Q) | 183,155 | 1,767,446 | ||||||
Prudential Total Return Bond Fund (Class Q) | 288,597 | 4,112,500 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS |
| 96,504,390 | ||||||
|
| |||||||
SHORT-TERM INVESTMENT 1.1% |
| |||||||
AFFILIATED MUTUAL FUND |
| |||||||
Prudential Investment Portfolios 2 - | 1,077,651 | 1,077,651 | ||||||
|
| |||||||
TOTAL INVESTMENTS(a) 100.3% |
| 97,582,041 | ||||||
Liabilities in excess of other assets (0.3)% |
| (288,432 | ) | |||||
|
| |||||||
NET ASSETS 100.0% |
| $ | 97,293,609 | |||||
|
|
The following abbreviation is used in the semiannual report:
LIBOR—London Interbank Offered Rate
* | Non-income producing security. |
(a) | PGIM Investments LLC, the manager of the Fund, also serves as the manager of the underlying funds in which the Fund invests. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 23 |
Prudential Growth Allocation Fund
Portfolio of Investments (unaudited) (continued)
as of March 31, 2017
Fair Value Measurements:
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—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of March 31, 2017 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Affiliated Mutual Funds | $ | 97,582,041 | $ | — | $ | — | ||||||
|
|
|
|
|
|
During the period, there were no transfers between Level 1, Level 2 and Level 3 to report.
Investment Allocations:
The investment allocation of investments and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2017 were as follows:
U.S. Small/Mid Cap | 27.0 | % | ||
International Equity | 24.8 | |||
U.S. Large-Cap Value | 17.4 | |||
U.S. Large-Cap Growth | 13.0 | |||
Global Real Estate | 5.0 | |||
Long Short | 5.0 | |||
Intermediate Term Bond | 4.1 | |||
Short-Term Bond | 1.5 | % | ||
High Yield Bond | 1.4 | |||
|
| |||
99.2 | ||||
Short-Term Investment | 1.1 | |||
Liabilities in excess of other assets | (0.3 | ) | ||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
24 |
This Page Intentionally Left Blank
Prudential Conservative Allocation Fund
Statement of Assets & Liabilities (unaudited)
as of March 31, 2017
Assets |
| |||
Affiliated investments (cost $111,555,053) | $ | 129,687,392 | ||
Receivable for investments sold | 395,000 | |||
Dividends receivable | 179,965 | |||
Receivable for Fund shares sold | 33,723 | |||
Prepaid expenses | 683 | |||
|
| |||
Total Assets | 130,296,763 | |||
|
| |||
Liabilities |
| |||
Payable for investments purchased | 291,197 | |||
Payable for Fund shares reacquired | 207,841 | |||
Accrued expenses | 86,811 | |||
Distribution fee payable | 51,206 | |||
Management fee payable | 22,269 | |||
Affiliated transfer agent fee payable | 11,381 | |||
|
| |||
Total Liabilities | 670,705 | |||
|
| |||
Net Assets | $ | 129,626,058 | ||
|
| |||
Net assets were comprised of: |
| |||
Common stock, at par | $ | 10,366 | ||
Paid-in capital in excess of par | 111,283,319 | |||
|
| |||
111,293,685 | ||||
Undistributed net investment income | 1,118 | |||
Accumulated net realized gain on investment transactions | 198,916 | |||
Net unrealized appreciation on investments | 18,132,339 | |||
|
| |||
Net assets, March 31, 2017 | $ | 129,626,058 | ||
|
|
See Notes to Financial Statements.
26 |
Class A |
| |||
Net asset value and redemption price per share | $ | 12.52 | ||
Maximum sales charge (5.50% of offering price) | 0.73 | |||
|
| |||
Maximum offering price to public | $ | 13.25 | ||
|
| |||
Class B |
| |||
Net asset value, offering price and redemption price per share | $ | 12.45 | ||
|
| |||
Class C |
| |||
Net asset value, offering price and redemption price per share | $ | 12.46 | ||
|
| |||
Class R |
| |||
Net asset value, offering price and redemption price per share | $ | 12.56 | ||
|
| |||
Class Z |
| |||
Net asset value, offering price and redemption price per share | $ | 12.58 | ||
|
|
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 27 |
Prudential Conservative Allocation Fund
Statement of Operations (unaudited)
Six Months Ended March 31, 2017
Net Investment Income (Loss) |
| |||
Affiliated dividend income | $ | 1,689,190 | ||
|
| |||
Expenses |
| |||
Management fee | 130,017 | |||
Distribution fee—Class A | 121,425 | |||
Distribution fee—Class B | 70,714 | |||
Distribution fee—Class C | 136,284 | |||
Distribution fee—Class R | 486 | |||
Transfer agent’s fees and expenses (including affiliated expense of $25,300) | 76,000 | |||
Registration fees | 40,000 | |||
Custodian and accounting fees | 34,000 | |||
Shareholders’ reports | 12,000 | |||
Audit fee | 12,000 | |||
Legal fees and expenses | 9,000 | |||
Directors’ fees | 6,000 | |||
Miscellaneous | 7,241 | |||
|
| |||
Total expenses | 655,167 | |||
Less: Expense subsidy | (1,208 | ) | ||
Distribution fee waiver-Class A | (20,238 | ) | ||
Distribution fee waiver-Class R | (162 | ) | ||
|
| |||
Net expenses | 633,559 | |||
|
| |||
Net investment income (loss) | 1,055,631 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments |
| |||
Net realized gain (loss) on affiliated investment transactions | 590,804 | |||
Net capital gain distributions received | 1,470,666 | |||
|
| |||
2,061,470 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | 568,783 | |||
|
| |||
Net gain (loss) on investment transactions | 2,630,253 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 3,685,884 | ||
|
|
See Notes to Financial Statements.
28 |
Prudential Conservative Allocation Fund
Statement of Changes in Net Assets (unaudited)
Six Months Ended March 31, 2017 | Year Ended September 30, 2016 | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 1,055,631 | $ | 1,567,044 | ||||
Net realized gain (loss) on investment transactions | 590,804 | (2,112,961 | ) | |||||
Net capital gain distributions received | 1,470,666 | 3,170,232 | ||||||
Net change in unrealized appreciation (depreciation) on investments | 568,783 | 6,008,273 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 3,685,884 | 8,632,588 | ||||||
|
|
|
| |||||
Dividends and Distributions |
| |||||||
Dividends from net investment income |
| |||||||
Class A | (935,714 | ) | (1,378,069 | ) | ||||
Class B | (107,064 | ) | (259,712 | ) | ||||
Class C | (209,926 | ) | (305,974 | ) | ||||
Class R | (1,294 | ) | (1,462 | ) | ||||
Class Z | (94,750 | ) | (128,099 | ) | ||||
|
|
|
| |||||
(1,348,748 | ) | (2,073,316 | ) | |||||
|
|
|
| |||||
Distributions from net realized gains and capital gain distributions received | ||||||||
Class A | (897,459 | ) | (3,963,183 | ) | ||||
Class B | (152,058 | ) | (1,326,261 | ) | ||||
Class C | (300,939 | ) | (1,556,854 | ) | ||||
Class R | (1,440 | ) | (4,783 | ) | ||||
Class Z | (82,721 | ) | (320,891 | ) | ||||
|
|
|
| |||||
(1,434,617 | ) | (7,171,972 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) |
| |||||||
Net proceeds from shares sold | 6,788,847 | 27,728,528 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 2,663,614 | 8,541,312 | ||||||
Cost of shares reacquired | (18,086,199 | ) | (39,293,635 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (8,633,738 | ) | (3,023,795 | ) | ||||
|
|
|
| |||||
Total increase (decrease) | (7,731,219 | ) | (3,636,495 | ) | ||||
Net Assets: |
| |||||||
Beginning of period | 137,357,277 | 140,993,772 | ||||||
|
|
|
| |||||
End of period(a) | $ | 129,626,058 | $ | 137,357,277 | ||||
|
|
|
| |||||
(a) Includes undistributed net investment income of: | $ | 1,118 | $ | 294,235 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 29 |
Prudential Moderate Allocation Fund
Statement of Assets & Liabilities (unaudited)
as of March 31, 2017
Assets |
| |||
Affiliated investments (cost $131,441,468) | $ | 165,204,352 | ||
Receivable for investments sold | 530,000 | |||
Dividends receivable | 128,617 | |||
Receivable for Fund shares sold | 75,851 | |||
Prepaid expenses | 755 | |||
|
| |||
Total Assets | 165,939,575 | |||
|
| |||
Liabilities |
| |||
Payable for investments purchased | 446,720 | |||
Payable for Fund shares reacquired | 310,054 | |||
Accrued expenses | 112,823 | |||
Distribution fee payable | 65,200 | |||
Management fee payable | 31,358 | |||
Affiliated transfer agent fee payable | 19,369 | |||
|
| |||
Total Liabilities | 985,524 | |||
|
| |||
Net Assets | $ | 164,954,051 | ||
|
| |||
Net assets were comprised of: |
| |||
Common stock, at par | $ | 11,629 | ||
Paid-in capital in excess of par | 130,123,558 | |||
|
| |||
130,135,187 | ||||
Distributions in excess of net investment income | (333,070 | ) | ||
Accumulated net realized gain on investment transactions | 1,389,050 | |||
Net unrealized appreciation on investments | 33,762,884 | |||
|
| |||
Net assets, March 31, 2017 | $ | 164,954,051 | ||
|
|
See Notes to Financial Statements.
30 |
Class A |
| |||
Net asset value and redemption price per share | $ | 14.21 | ||
Maximum sales charge (5.50% of offering price) | 0.83 | |||
|
| |||
Maximum offering price to public | $ | 15.04 | ||
|
| |||
Class B |
| |||
Net asset value, offering price and redemption price per share | $ | 14.12 | ||
|
| |||
Class C |
| |||
Net asset value, offering price and redemption price per share | $ | 14.11 | ||
|
| |||
Class R |
| |||
Net asset value, offering price and redemption price per share | $ | 14.13 | ||
|
| |||
Class Z |
| |||
Net asset value, offering price and redemption price per share | $ | 14.22 | ||
|
|
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 31 |
Prudential Moderate Allocation Fund
Statement of Operations (unaudited)
Six Months Ended March 31, 2017
Net Investment Income (Loss) | ||||
Affiliated dividend income | $ | 1,983,924 | ||
|
| |||
Expenses |
| |||
Management fee | 161,602 | |||
Distribution fee—Class A | 163,146 | |||
Distribution fee—Class B | 112,723 | |||
Distribution fee—Class C | 137,413 | |||
Distribution fee—Class R | 31 | |||
Transfer agent’s fees and expenses (including affiliated expense of $42,100) | 123,000 | |||
Registration fees | 42,000 | |||
Custodian and accounting fees | 31,000 | |||
Shareholders’ reports | 13,000 | |||
Audit fee | 12,000 | |||
Legal fees and expenses | 10,000 | |||
Directors’ fees | 6,000 | |||
Miscellaneous | 7,010 | |||
|
| |||
Total expenses | 818,925 | |||
Less: Expense subsidy | (1,595 | ) | ||
Distribution fee waiver—Class A | (27,192 | ) | ||
Distribution fee waiver—Class R | (10 | ) | ||
|
| |||
Net expenses | 790,128 | |||
|
| |||
Net investment income (loss) | 1,193,796 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments |
| |||
Net realized gain on affiliated investment transactions | 1,169,941 | |||
Net capital gain distributions received | 3,051,175 | |||
|
| |||
4,221,116 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | 3,244,493 | |||
|
| |||
Net gain (loss) on investment transactions | 7,465,609 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 8,659,405 | ||
|
|
See Notes to Financial Statements.
32 |
Prudential Moderate Allocation Fund
Statement of Changes in Net Assets (unaudited)
Six Months Ended March 31, 2017 | Year Ended September 30, 2016 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations |
| |||||||
Net investment income (loss) | $ | 1,193,796 | $ | 1,076,720 | ||||
Net realized gain (loss) on investment transactions | 1,169,941 | (2,723,632 | ) | |||||
Net capital gain distributions received | 3,051,175 | 6,182,151 | ||||||
Net change in unrealized appreciation (depreciation) on investments | 3,244,493 | 7,584,017 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 8,659,405 | 12,119,256 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Dividends from net investment income |
| |||||||
Class A | (1,266,793 | ) | (1,482,352 | ) | ||||
Class B | (97,019 | ) | (258,894 | ) | ||||
Class C | (124,143 | ) | (227,324 | ) | ||||
Class R | (79 | ) | (47 | ) | ||||
Class Z | (38,832 | ) | (65,766 | ) | ||||
|
|
|
| |||||
(1,526,866 | ) | (2,034,383 | ) | |||||
|
|
|
| |||||
Distributions from net realized gains and capital gain distributions received | ||||||||
Class A | (2,451,148 | ) | (6,166,331 | ) | ||||
Class B | (483,523 | ) | (2,224,171 | ) | ||||
Class C | (618,707 | ) | (1,952,947 | ) | ||||
Class R | (193 | ) | (239 | ) | ||||
Class Z | (62,254 | ) | (233,128 | ) | ||||
|
|
|
| |||||
(3,615,825 | ) | (10,576,816 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 9,412,325 | 11,792,383 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 4,977,833 | 12,128,699 | ||||||
Cost of shares reacquired | (16,126,384 | ) | (29,662,108 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | (1,736,226 | ) | (5,741,026 | ) | ||||
|
|
|
| |||||
Total increase (decrease) | 1,780,488 | (6,232,969 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 163,173,563 | 169,406,532 | ||||||
|
|
|
| |||||
End of period | $ | 164,954,051 | $ | 163,173,563 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 33 |
Prudential Growth Allocation Fund
Statement of Assets & Liabilities (unaudited)
as of March 31, 2017
Assets |
| |||
Affiliated investments (cost $74,657,974) | $ | 97,582,041 | ||
Receivable for investments sold | 285,000 | |||
Receivable for Fund shares sold | 159,665 | |||
Dividends receivable | 18,604 | |||
Prepaid expenses | 523 | |||
|
| |||
Total Assets | 98,045,833 | |||
|
| |||
Liabilities |
| |||
Payable for investments purchased | 379,787 | |||
Payable for Fund shares reacquired | 205,290 | |||
Accrued expenses | 109,255 | |||
Distribution fee payable | 35,650 | |||
Affiliated transfer agent fee payable | 17,961 | |||
Management fee payable | 4,281 | |||
|
| |||
Total Liabilities | 752,224 | |||
|
| |||
Net Assets | $ | 97,293,609 | ||
|
| |||
Net assets were comprised of: |
| |||
Common stock, at par | $ | 5,935 | ||
Paid-in capital in excess of par | 74,268,066 | |||
|
| |||
74,274,001 | ||||
Distributions in excess of net investment income | (187,149 | ) | ||
Accumulated net realized gain on investment transactions | 282,690 | |||
Net unrealized appreciation on investments | 22,924,067 | |||
|
| |||
Net assets, March 31, 2017 | $ | 97,293,609 | ||
|
|
See Notes to Financial Statements.
34 |
Class A |
| |||
Net asset value and redemption price per share | $ | 16.56 | ||
Maximum sales charge (5.50% of offering price) | 0.96 | |||
|
| |||
Maximum offering price to public | $ | 17.52 | ||
|
| |||
Class B |
| |||
Net asset value, offering price and redemption price per share | $ | 15.89 | ||
|
| |||
Class C |
| |||
Net asset value, offering price and redemption price per share | $ | 15.91 | ||
|
| |||
Class R |
| |||
Net asset value, offering price and redemption price per share | $ | 16.43 | ||
|
| |||
Class Z |
| |||
Net asset value, offering price and redemption price per share | $ | 16.75 | ||
|
|
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 35 |
Prudential Growth Allocation Fund
Statement of Operations (unaudited)
Six Months Ended March 31, 2017
Net Investment Income (Loss) |
| |||
Affiliated dividend income | $ | 1,104,631 | ||
|
| |||
Expenses |
| |||
Management fee | 93,641 | |||
Distribution fee—Class A | 100,217 | |||
Distribution fee—Class B | 61,056 | |||
Distribution fee—Class C | 63,610 | |||
Distribution fee—Class R | 92 | |||
Transfer agent’s fees and expenses (including affiliated expense of $38,400) | 100,000 | |||
Registration fees | 43,000 | |||
Custodian and accounting fees | 30,000 | |||
Shareholders’ reports | 12,000 | |||
Audit fee | 11,000 | |||
Legal fees and expenses | 9,000 | |||
Directors’ fees | 5,000 | |||
Miscellaneous | 7,992 | |||
|
| |||
Total expenses | 536,608 | |||
Less: Expense subsidy | (77,524 | ) | ||
Distribution fee waiver—Class A | (16,703 | ) | ||
Distribution fee waiver—Class R | (31 | ) | ||
|
| |||
Net expenses | 442,350 | |||
|
| |||
Net investment income (loss) | 662,281 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Affiliated Investments |
| |||
Net realized gain (loss) on affiliated investment transactions | 496,482 | |||
Net capital gain distributions received | 2,297,389 | |||
|
| |||
2,793,871 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on investments | 3,759,472 | |||
|
| |||
Net gain (loss) on investment transactions | 6,553,343 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 7,215,624 | ||
|
|
See Notes to Financial Statements.
36 |
Prudential Growth Allocation Fund
Statement of Changes in Net Assets (unaudited)
Six Months Ended March 31, 2017 | Year Ended September 30, 2016 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations |
| |||||||
Net investment income (loss) | $ | 662,281 | $ | 238,792 | ||||
Net realized gain (loss) on investment transactions | 496,482 | (1,891,066 | ) | |||||
Net capital gain distributions received | 2,297,389 | 4,583,473 | ||||||
Net change in unrealized appreciation (depreciation) on investments | 3,759,472 | 4,816,236 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 7,215,624 | 7,747,435 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Dividends from net investment income |
| |||||||
Class A | (720,738 | ) | (599,248 | ) | ||||
Class B | (50,040 | ) | (46,741 | ) | ||||
Class C | (54,686 | ) | (32,631 | ) | ||||
Class R | (210 | ) | (24 | ) | ||||
Class Z | (23,756 | ) | (24,860 | ) | ||||
|
|
|
| |||||
(849,430 | ) | (703,504 | ) | |||||
|
|
|
| |||||
Distributions from net realized gains and capital gain distributions received | ||||||||
Class A | (1,903,452 | ) | (5,198,938 | ) | ||||
Class B | (346,254 | ) | (1,592,057 | ) | ||||
Class C | (378,406 | ) | (1,111,445 | ) | ||||
Class R | (712 | ) | (283 | ) | ||||
Class Z | (51,505 | ) | (171,108 | ) | ||||
|
|
|
| |||||
(2,680,329 | ) | (8,073,831 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 4,858,651 | 9,248,590 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 3,441,557 | 8,531,587 | ||||||
Cost of shares reacquired | (7,398,293 | ) | (13,852,245 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 901,915 | 3,927,932 | ||||||
|
|
|
| |||||
Total increase (decrease) | 4,587,780 | 2,898,032 | ||||||
Net Assets: | ||||||||
Beginning of period | 92,705,829 | 89,807,797 | ||||||
|
|
|
| |||||
End of period | $ | 97,293,609 | $ | 92,705,829 | ||||
|
|
|
|
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 37 |
Notes to Financial Statements (unaudited)
The Prudential Investment Portfolios, Inc. (the “Company”) registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The Company was incorporated in Maryland on August 10, 1995 and consists of six series (“Fund” or “Funds”): Prudential Jennison Equity Opportunity Fund, Prudential Jennison Growth Fund and Prudential Balanced Fund which are diversified funds and Prudential Conservative Allocation Fund (“Conservative Allocation Fund”), Prudential Moderate Allocation Fund (“Moderate Allocation Fund”) and Prudential Growth Allocation Fund (“Growth Allocation Fund”) which are non-diversified funds. These financial statements relate to the Conservative Allocation Fund, Moderate Allocation Fund and Growth Allocation Fund (collectively referred to as the “Allocation Funds”).
The Conservative Allocation Fund’s investment objective is current income and a reasonable level of capital appreciation. The Moderate Allocation Fund’s investment objective is capital appreciation and a reasonable level of current income. The Growth Allocation Fund’s investment objective is long-term capital appreciation. Each Fund in the Allocation Funds is typically referred to as a “Fund of Funds” because it invests in other mutual funds. The Allocation Funds may also invest directly in U.S. Government securities and money market instruments for cash management purposes or when assuming a defensive position.
Note 1. Accounting Policies
The Allocation Funds follow investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services-Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Company and the Allocation Funds consistently follow such policies in the preparation of their financial statements.
Securities Valuation: The Allocation Funds hold securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or “the Manager”) (formerly known as Prudential Investments LLC). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Allocation Funds to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed
38 |
representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
Various inputs determine how each of the Allocation Funds’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolios of Investments.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
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.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on an accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual and such expenses exclude those of the underlying funds. Expenses on the underlying funds are reflected in the net asset values of those funds. The Company’s expenses are allocated to the respective portfolio on the basis of relative net assets except the expenses that are charged directly at the portfolio or class level.
Net investment income or loss (other than distribution fees which are charged directly to the respective class) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.
Dividends and Distributions: The Conservative Allocation Fund expects to pay dividends from net investment income quarterly and distributions from net realized gains, if any, annually. The Moderate Allocation Fund and the Growth Allocation Fund expect to pay dividends from net investment income and distributions from net realized gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted
Prudential Asset Allocation Funds | 39 |
Notes to Financial Statements (unaudited) (continued)
accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.
Taxes: It is each of the Allocation Funds’ 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, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Note 2. Agreements
The Company, on behalf of the Allocation Funds, has a management agreement with PGIM Investments. Pursuant to this agreement, PGIM Investments has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PGIM Investments has entered into a subadvisory agreement with Quantitative Management Associates LLC (“QMA”). The subadvisory agreement provides that QMA furnishes investment advisory services in connection with the management of the Allocation Funds. In connection therewith, QMA is obligated to keep certain books and records of the Allocation Funds. PGIM Investments pays for the services of QMA, the cost of compensation of officers of the Allocation Funds, occupancy and certain clerical and bookkeeping costs of the Allocation Funds. The Allocation Funds bear all other costs and expenses.
The management fee paid to PGIM Investments is accrued daily and payable monthly at an annual rate of .20% of each of the Allocation Funds’ average daily net assets up to $5 billion and .175% of average daily net assets in excess of $5 billion. The effective management fee rate, before any waivers and/or expense reimbursement for each of the Allocation Funds was .20% for the six months ended March 31, 2017. The effective management fee rates net of waivers and/or expense reimbursement were .20%, .20% and .03% for the Conservative, Moderate and Growth Allocation Funds, respectively.
The Company, on behalf of the Allocation Funds, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class R and Class Z shares of the Allocation Funds. The
40 |
Allocation Funds compensate PIMS for distributing and servicing the Allocation Funds’ Class A, B, C and R shares, pursuant to plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Allocation Funds.
Pursuant to the Distribution Plans, the Allocation Funds compensate PIMS for distribution related activities at an annual rate of up to .30%, 1%, 1% and .75% of the average daily net assets of the Class A, B, C and R shares, respectively. PIMS has contractually agreed through January 31, 2018 to limit such expenses to .25% and .50% of the average daily net assets of the Class A and Class R shares, respectively.
PGIM Investments has contractually agreed through January 31, 2018 to limit the net annual operating expenses (exclusive of distribution and service (12b-1) fees, taxes (such as income and foreign withholdings taxes, stamp duty and deferred tax expenses), interest, underlying funds, brokerage, extraordinary and certain other expenses such as dividend, broker charges and interest expense on short sales) of each class of shares of the Allocation Funds to .50% of each Allocation Funds’ average daily net assets. Expenses waived/reimbursed by the Manager in accordance with this agreement may be recouped by the Manager within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
PIMS has advised the Allocation Funds of its receipt of front-end sales charges resulting from sales of Class A shares during the six months ended March 31, 2017. These amounts were as follows:
Fund | Class A | |||
Conservative Allocation Fund | $ | 87,254 | ||
Moderate Allocation Fund | 123,187 | |||
Growth Allocation Fund | 110,621 |
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 Allocation Funds of its receipt of contingent deferred sales charges imposed upon redemptions by certain Class A, Class B and Class C shareholders for the six months ended March 31, 2017. These amounts were as follows:
Fund | Class A | Class B | Class C | |||||||||
Conservative Allocation Fund | $ | — | $ | 3,783 | $ | 1,856 | ||||||
Moderate Allocation Fund | — | 5,854 | 1,307 | |||||||||
Growth Allocation Fund | — | 3,340 | 432 |
PGIM Investments, QMA and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Prudential Asset Allocation Funds | 41 |
Notes to Financial Statements (unaudited) (continued)
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Company’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.
The Allocation Funds may invest their overnight sweep cash in the Prudential Core Ultra Short Bond Fund (the “Core Fund”), a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. The Allocation Funds may also invest in other affiliated mutual funds. Earnings from the Core Fund and other affiliated mutual funds are disclosed on the Statement of Operations as “Affiliated dividend income”.
Note 4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities, (excluding short-term investments and U.S. Treasury securities), for the six months ended March 31, 2017, were as follows:
Fund | Cost of Purchases | Proceeds from Sales | ||||||
Conservative Allocation Fund | $ | 15,482,103 | $ | 24,358,000 | ||||
Moderate Allocation Fund | 20,825,064 | 23,410,000 | ||||||
Growth Allocation Fund | 12,158,697 | 11,800,000 |
42 |
A summary of the aggregate cost of purchases and proceeds from sales of shares of affiliated mutual funds, other than short-term investments, dividend income and capital gain distributions received for the six months ended March 31, 2017 is presented as follows:
Conservative Allocation Fund:
Affiliated | Value, beginning of period | Cost of Purchases | Exchange | Proceeds of Sales | Dividend Income | Capital Gain Distributions Received | Value, ending of period | |||||||||||||||||||||
Prudential Absolute Return Bond Fund (Class Q) | $ | 5,509,109 | $ | 3,991,022 | $ | — | $ | (555,000 | ) | $ | 100,563 | $ | — | $ | 9,101,731 | |||||||||||||
Prudential Global Real Estate Fund (Class Q) | 6,872,587 | 303,382 | — | (230,000 | ) | 135,572 | 77,810 | 6,458,388 | ||||||||||||||||||||
Prudential Government Income Fund (Class Q) | 9,738,162 | 416,803 | — | (2,050,000 | ) | 67,031 | — | 7,814,191 | ||||||||||||||||||||
Prudential High Yield Fund (Class Q) | 2,763,355 | 95,298 | — | (280,000 | ) | 85,322 | — | 2,608,503 | ||||||||||||||||||||
Prudential Jennison 20/20 Focus Fund (Class Q) | 1,401,394 | 126,816 | — | (225,000 | ) | 2,752 | 104,064 | 1,296,982 | ||||||||||||||||||||
Prudential Jennison Equity Opportunity Fund (Class Q) | 2,787,531 | 247,419 | — | (610,000 | ) | 27,984 | 164,435 | 2,585,015 | ||||||||||||||||||||
Prudential Jennison Growth Fund (Class Z) | 3,132,157 | 158,003 | — | (515,000 | ) | — | 108,003 | 2,912,845 | ||||||||||||||||||||
Prudential Jennison International Opportunities Fund (Class Q) | 5,527,556 | 460,761 | — | (885,000 | ) | 15,761 | — | 5,192,172 | ||||||||||||||||||||
Prudential Jennison Mid-Cap Growth Fund, Inc. (Class Q) | 2,100,579 | 146,380 | — | (365,000 | ) | — | 116,380 | 1,945,812 | ||||||||||||||||||||
Prudential Jennison Natural Resources Fund, Inc. (Class Q) | 24,976 | 243,135 | — | (15,000 | ) | 3,135 | — | 259,810 | ||||||||||||||||||||
Prudential Jennison Small Company Fund, Inc. (Class Q) | 4,847,150 | 366,398 | — | (960,000 | ) | 43,500 | 197,898 | 4,547,006 | ||||||||||||||||||||
Prudential Jennison Value Fund (Class Q) | 1,412,402 | 79,973 | — | (300,000 | ) | 20,437 | 39,535 | 1,301,127 | ||||||||||||||||||||
Prudential QMA International Equity Fund (Class Q) | — | 70,000 | 5,958,015 | (763,000 | ) | — | — | 7,747,702 | ||||||||||||||||||||
Prudential QMA International Equity Fund (Class Z) | 8,268,364 | 341,846 | (5,958,015 | ) | (550,000 | ) | 176,846 | — | — | |||||||||||||||||||
Prudential QMA Large-Cap Core Equity Fund (Class Q) | — | 65,000 | 2,995,149 | (240,000 | ) | — | — | 4,917,882 | ||||||||||||||||||||
Prudential QMA Large-Cap Core Equity Fund (Class Z) | 5,272,822 | 293,913 | (2,995,149 | ) | (680,000 | ) | 55,961 | 197,953 | — | |||||||||||||||||||
Prudential QMA Long-Short Equity Fund (Class Z) | 4,157,607 | 161,420 | — | (610,000 | ) | — | 61,420 | 3,883,508 |
Prudential Asset Allocation Funds | 43 |
Notes to Financial Statements (unaudited) (continued)
Conservative Allocation Fund (cont’d.):
Affiliated | Value, beginning of period | Cost of Purchases | Exchange | Proceeds of Sales | Dividend Income | Capital Gain Distributions Received | Value, ending of period | |||||||||||||||||||||
Prudential QMA Mid-Cap Value Fund (Class Q) | $ | 3,113,109 | $ | 122,978 | $ | — | $ | (1,880,000 | ) | $ | 24,689 | $ | 28,290 | $ | 1,623,346 | |||||||||||||
Prudential QMA Small-Cap Value Fund (Class Q) | 1,384,793 | 1,450,421 | — | (490,000 | ) | 43,817 | 6,604 | 2,594,114 | ||||||||||||||||||||
Prudential QMA Strategic Value Fund (Class Z) | 7,593,704 | 617,865 | — | (1,830,000 | ) | 103,140 | 181,725 | 7,106,436 | ||||||||||||||||||||
Prudential Short Duration Multi-Sector Bond Fund (Class Q) | 33,544,750 | 4,862,150 | — | (2,445,000 | ) | 471,692 | — | 35,736,690 | ||||||||||||||||||||
Prudential Short-Term Corporate Bond Fund, Inc. (Class Q) | 700,630 | 8,946 | — | (40,000 | ) | 8,951 | — | 661,280 | ||||||||||||||||||||
Prudential Total Return Bond Fund (Class Q) | 26,074,480 | 852,174 | — | (7,840,000 | ) | 296,109 | 186,549 | 18,216,367 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 136,227,217 | $ | 15,482,103 | $ | — | $ | (24,358,000 | ) | $ | 1,683,262 | $ | 1,470,666 | $ | 128,510,907 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Fund:
Affiliated | Value, beginning of period | Cost of Purchases | Exchange | Proceeds of Sales | Dividend Income | Capital Gain Distributions Received | Value, ending of period | |||||||||||||||||||||
Prudential Absolute Return Bond Fund (Class Q) | $ | 3,283,950 | $ | 5,126,417 | $ | — | $ | (245,000 | ) | $ | 85,729 | $ | — | $ | 8,317,346 | |||||||||||||
Prudential Global Real Estate Fund (Class Q) | 8,148,068 | 720,718 | — | (60,000 | ) | 168,289 | 97,429 | 8,229,687 | ||||||||||||||||||||
Prudential Government Income Fund (Class Q) | 4,889,394 | 420,124 | — | (180,000 | ) | 40,160 | — | 4,974,618 | ||||||||||||||||||||
Prudential High Yield Fund (Class Q) | 1,664,755 | 113,159 | — | (125,000 | ) | 53,131 | — | 1,671,798 | ||||||||||||||||||||
Prudential Jennison 20/20 Focus Fund (Class Q) | 3,290,333 | 330,344 | — | (310,000 | ) | 6,966 | 263,377 | 3,294,253 | ||||||||||||||||||||
Prudential Jennison Equity Opportunity Fund (Class Q) | 6,597,417 | 622,079 | — | (1,000,000 | ) | 70,110 | 411,969 | 6,600,502 | ||||||||||||||||||||
Prudential Jennison Growth Fund (Class Z) | 4,952,479 | 339,093 | — | (575,000 | ) | — | 179,093 | 4,954,478 |
44 |
Moderate Allocation Fund (cont’d.):
Affiliated | Value, beginning of period | Cost of Purchases | Exchange | Proceeds of Sales | Dividend Income | Capital Gain Distributions Received | Value, ending of period | |||||||||||||||||||||
Prudential Jennison International Opportunities Fund (Class Q) | $ | 9,816,788 | $ | 1,174,055 | $ | — | $ | (1,285,000 | ) | $ | 29,055 | $ | — | $ | 9,923,623 | |||||||||||||
Prudential Jennison Mid-Cap Growth Fund, Inc. (Class Q) | 4,954,150 | 405,765 | — | (555,000 | ) | — | 290,765 | 4,965,586 | ||||||||||||||||||||
Prudential Jennison Natural Resources Fund, Inc. (Class Q) | 51,570 | 298,952 | — | (20,000 | ) | 3,952 | — | 338,893 | ||||||||||||||||||||
Prudential Jennison Small Company Fund, Inc. (Class Q) | 9,439,756 | 837,015 | — | (1,340,000 | ) | 89,562 | 407,453 | 9,528,132 | ||||||||||||||||||||
Prudential Jennison Value Fund (Class Q) | 4,942,754 | 288,052 | — | (690,000 | ) | 76,012 | 147,040 | 4,940,121 | ||||||||||||||||||||
Prudential QMA International Equity Fund (Class Q) | — | 150,000 | 11,353,193 | (1,295,000 | ) | — | — | 14,824,370 | ||||||||||||||||||||
Prudential QMA International Equity Fund (Class Z) | 14,696,424 | 1,000,352 | (11,353,193 | ) | (475,000 | ) | 325,352 | — | — | |||||||||||||||||||
Prudential QMA Large-Cap Core Equity Fund (Class Q) | — | 140,000 | 9,558,590 | (490,000 | ) | — | — | 14,921,480 | ||||||||||||||||||||
Prudential QMA Large-Cap Core Equity Fund (Class Z) | 14,856,370 | 1,005,762 | (9,558,590 | ) | (1,200,000 | ) | 166,564 | 589,198 | — | |||||||||||||||||||
Prudential QMA Long-Short Equity Fund (Class Z) | 6,560,086 | 392,577 | — | (640,000 | ) | — | 102,577 | 6,597,621 | ||||||||||||||||||||
Prudential QMA Mid-Cap Value Fund (Class Q) | 5,744,717 | 183,221 | — | (3,520,000 | ) | 43,442 | 49,779 | 2,894,133 | ||||||||||||||||||||
Prudential QMA Small-Cap Value Fund (Class Q) | 2,470,875 | 3,046,731 | — | (610,000 | ) | 88,406 | 13,325 | 5,372,126 | ||||||||||||||||||||
Prudential QMA Strategic Value Fund (Class Z) | 13,110,048 | 1,068,807 | — | (2,275,000 | ) | 187,843 | 330,965 | 13,171,898 | ||||||||||||||||||||
Prudential Short Duration Multi-Sector Bond Fund (Class Q) | 21,191,678 | 1,664,470 | — | (1,175,000 | ) | 284,336 | — | 21,538,709 | ||||||||||||||||||||
Prudential Total Return Bond Fund (Class Q) | 21,154,025 | 1,497,371 | — | (5,345,000 | ) | 259,259 | 168,205 | 16,585,761 | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 161,815,637 | $ | 20,825,064 | $ | — | $ | (23,410,000 | ) | $ | 1,978,168 | $ | 3,051,175 | $ | 163,645,135 | ||||||||||||||
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|
|
Prudential Asset Allocation Funds | 45 |
Notes to Financial Statements (unaudited) (continued)
Growth Allocation Fund:
Affiliated | Value, beginning of period | Cost of Purchases | Exchange | Proceeds of Sales | Dividend Income | Capital Gain Distributions Received | Value, ending of period | |||||||||||||||||||||
Prudential Absolute Return Bond Fund (Class Q) | $ | 471,677 | $ | 15,761 | $ | — | $ | (10,000 | ) | $ | 5,762 | $ | — | $ | 484,524 | |||||||||||||
Prudential Global Real Estate Fund (Class Q) | 4,620,618 | 552,153 | — | — | 96,278 | 55,875 | 4,845,654 | |||||||||||||||||||||
Prudential High Yield Fund (Class Q) | 472,524 | 80,297 | — | (70,000 | ) | 15,281 | — | 488,466 | ||||||||||||||||||||
Prudential Jennison 20/20 Focus Fund (Class Q) | 2,795,153 | 301,732 | — | (165,000 | ) | 5,971 | 225,760 | 2,921,055 | ||||||||||||||||||||
Prudential Jennison Equity Opportunity Fund (Class Q) | 6,527,068 | 613,292 | — | (715,000 | ) | 70,286 | 413,006 | 6,816,885 | ||||||||||||||||||||
Prudential Jennison Growth Fund (Class Z) | 3,262,175 | 259,723 | — | (280,000 | ) | — | 119,723 | 3,407,002 | ||||||||||||||||||||
Prudential Jennison International Opportunities Fund (Class Q) | 8,806,332 | 1,371,776 | — | (1,120,000 | ) | 26,776 | — | 9,278,279 | ||||||||||||||||||||
Prudential Jennison Mid-Cap Growth Fund, Inc. (Class Q) | 3,499,253 | 272,701 | — | (230,000 | ) | — | 207,701 | 3,663,106 | ||||||||||||||||||||
Prudential Jennison Natural Resources Fund, Inc. (Class Q) | 61,007 | 162,381 | — | (20,000 | ) | 2,381 | — | 206,410 | ||||||||||||||||||||
Prudential Jennison Small Company Fund, Inc. (Class Q) | 7,673,338 | 604,156 | — | (710,000 | ) | 73,730 | 335,426 | 8,067,272 | ||||||||||||||||||||
Prudential Jennison Value Fund (Class Q) | 3,039,633 | 204,464 | — | (325,000 | ) | 47,527 | 91,937 | 3,169,290 | ||||||||||||||||||||
Prudential QMA International Equity Fund (Class Q) | — | 270,000 | 11,260,270 | (1,040,000 | ) | — | — | 14,106,919 | ||||||||||||||||||||
Prudential QMA International Equity Fund (Class Z) | 13,403,564 | 965,484 | (11,260,270 | ) | (200,000 | ) | 305,484 | — | — | |||||||||||||||||||
Prudential QMA Large-Cap Core Equity Fund (Class Q) | — | 215,000 | 6,811,504 | (240,000 | ) | — | — | 11,011,878 | ||||||||||||||||||||
Prudential QMA Large-Cap Core Equity Fund (Class Z) | 10,517,953 | 540,018 | (6,811,504 | ) | (470,000 | ) | 119,016 | 421,002 | — |
46 |
Growth Allocation Fund (cont’d.):
Affiliated | Value, beginning of period | Cost of Purchases | Exchange | Proceeds of Sales | Dividend Income | Capital Gain Distributions Received | Value, ending of period | |||||||||||||||||||||
Prudential QMA Long-Short Equity Fund (Class Z) | $ | 4,637,550 | $ | 263,571 | $ | — | $ | (235,000 | ) | $ | — | $ | 73,571 | $ | 4,871,941 | |||||||||||||
Prudential QMA Mid-Cap Value Fund (Class Q) | 4,192,417 | 149,029 | — | (2,505,000 | ) | 32,169 | 36,860 | 2,196,767 | ||||||||||||||||||||
Prudential QMA Small-Cap Value Fund (Class Q) | 1,862,156 | 2,276,552 | — | (340,000 | ) | 66,525 | 10,027 | 4,151,600 | ||||||||||||||||||||
Prudential QMA Strategic Value Fund (Class Z) | 10,486,671 | 943,805 | — | (1,525,000 | ) | 151,636 | 267,170 | 10,937,396 | ||||||||||||||||||||
Prudential Short Duration Multi-Sector Bond Fund (Class Q) | 282,274 | 1,513,871 | — | (30,000 | ) | 18,652 | — | 1,767,446 | ||||||||||||||||||||
Prudential Total Return Bond Fund (Class Q) | 5,278,376 | 582,931 | — | (1,570,000 | ) | 63,634 | 39,331 | 4,112,500 | ||||||||||||||||||||
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| |||||||||||||||
$ | 91,889,739 | $ | 12,158,697 | $ | — | $ | (11,800,000 | ) | $ | 1,101,108 | $ | 2,297,389 | $ | 96,504,390 | ||||||||||||||
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Note 5. Tax Information
The United States federal income tax basis of the Funds’ investments and the net unrealized appreciation as of March 31, 2017 were as follows:
Conservative Allocation Fund | Moderate Allocation Fund | Growth Allocation Fund | ||||||||||
Tax Basis | $ | 113,391,362 | $ | 134,252,039 | $ | 77,132,197 | ||||||
|
|
|
|
|
| |||||||
Appreciation | 17,035,562 | 31,452,178 | 20,451,992 | |||||||||
Depreciation | (739,532 | ) | (499,865 | ) | (2,148 | ) | ||||||
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| |||||||
Net Unrealized Appreciation | $ | 16,296,030 | $ | 30,952,313 | $ | 20,449,844 | ||||||
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|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
Management has analyzed the Allocation Funds’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Allocation Funds’ financial statements for the current reporting period. The Allocation Funds’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Allocation Funds offer Class A, Class B, Class C, Class R and Class Z shares. Class A shares are sold with a front-end sales charge of up to 5.50%. All investors who purchase
Prudential Asset Allocation Funds | 47 |
Notes to Financial Statements (unaudited) (continued)
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%. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. Class C shares are sold with a CDSC of 1% on shares redeemed within the first 12 months of purchase. Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Allocation Funds to one or more other share classes of the Allocation Funds as presented in the table of transactions in shares of common stock.
There are 6 billion shares of $.001 par value of common stock of the Company authorized which are divided into six series. The Conservative Allocation Fund, comprising one of the six series, has seven classes, designated Class A, Class B, Class C, Class Q, Class R, Class T and Class Z, which consists of 125 million, 10 million, 125 million, 235 million, 165 million, 75 million and 235 million authorized shares, respectively. The Moderate Allocation Fund, comprising one of the six series, has seven classes, designated Class A, Class B, Class C, Class Q, Class R, Class T and Class Z, which consists of 125 million, 10 million, 130 million, 250 million, 160 million, 75 million and 250 million authorized shares, respectively. The Growth Allocation Fund, comprising one of the six series, has seven classes, designated Class A, Class B, Class C, Class Q, Class R, Class T and Class Z, which consists of 125 million, 5 million, 125 million, 250 million, 150 million, 75 million and 250 million authorized shares, respectively. Each of the Allocation Funds does not have any Class Q shares or Class T shares outstanding.
As of March 31, 2017, PGIM Investments owned 291, 263 and 224 shares of Class R shares of the Conservative Allocation Fund, Moderate Allocation Fund and Growth Allocation Fund, respectively. In addition two, two and two shareholders of record held 44%, 44% and 37% of the Conservative Allocation, Moderate Allocation and Growth Allocation Funds’ outstanding shares, respectively.
48 |
Transactions in shares of common stock were as follows:
Conservative Allocation Fund:
Class A | Shares | Amount | ||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 379,618 | $ | 4,683,378 | |||||
Shares issued in reinvestment of dividends and distributions | 147,193 | 1,791,215 | ||||||
Shares reacquired | (973,079 | ) | (11,996,735 | ) | ||||
|
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | (446,268 | ) | (5,522,142 | ) | ||||
Shares issued upon conversion from other share class(es) | 260,121 | 3,230,763 | ||||||
Shares reacquired upon conversion into other share class(es) | (42,057 | ) | (520,462 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding | (228,204 | ) | $ | (2,811,841 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 1,697,517 | $ | 20,570,532 | |||||
Shares issued in reinvestment of dividends and distributions | 417,351 | 4,979,388 | ||||||
Shares reacquired | (1,776,935 | ) | (21,476,871 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 337,933 | 4,073,049 | ||||||
Shares issued upon conversion from other share class(es) | 817,774 | 9,959,646 | ||||||
Shares reacquired upon conversion into other share class(es) | (170,108 | ) | (2,057,937 | ) | ||||
|
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|
| |||||
Net increase (decrease) in shares outstanding | 985,599 | $ | 11,974,758 | |||||
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|
| |||||
Class B | ||||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 4,347 | $ | 53,020 | |||||
Shares issued in reinvestment of dividends and distributions | 19,400 | 235,047 | ||||||
Shares reacquired | (127,871 | ) | (1,569,506 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (104,124 | ) | (1,281,439 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (261,248 | ) | (3,230,416 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (365,372 | ) | $ | (4,511,855 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 26,898 | $ | 323,341 | |||||
Shares issued in reinvestment of dividends and distributions | 121,637 | 1,443,591 | ||||||
Shares reacquired | (450,540 | ) | (5,466,348 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (302,005 | ) | (3,699,416 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (818,565 | ) | (9,922,957 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,120,570 | ) | $ | (13,622,373 | ) | |||
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|
Prudential Asset Allocation Funds | 49 |
Notes to Financial Statements (unaudited) (continued)
Conservative Allocation Fund (cont’d.):
Class C | Shares | Amount | ||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 134,323 | $ | 1,647,471 | |||||
Shares issued in reinvestment of dividends and distributions | 38,221 | 463,448 | ||||||
Shares reacquired | (292,192 | ) | (3,591,913 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (119,648 | ) | (1,480,994 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (4,203 | ) | (51,982 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (123,851 | ) | $ | (1,532,976 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 454,934 | $ | 5,440,412 | |||||
Shares issued in reinvestment of dividends and distributions | 141,187 | 1,675,516 | ||||||
Shares reacquired | (771,588 | ) | (9,309,151 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (175,467 | ) | (2,193,223 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (35,354 | ) | (427,989 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (210,821 | ) | $ | (2,621,212 | ) | |||
|
|
|
| |||||
Class R | ||||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 1,406 | $ | 17,404 | |||||
Shares issued in reinvestment of dividends and distributions | 224 | 2,735 | ||||||
Shares reacquired | (36 | ) | (437 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,594 | $ | 19,702 | |||||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 1,915 | $ | 23,678 | |||||
Shares issued in reinvestment of dividends and distributions | 522 | 6,245 | ||||||
Shares reacquired | (1,812 | ) | (22,898 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 625 | $ | 7,025 | |||||
|
|
|
| |||||
Class Z | ||||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 31,324 | $ | 387,574 | |||||
Shares issued in reinvestment of dividends and distributions | 14,004 | 171,169 | ||||||
Shares reacquired | (74,781 | ) | (927,608 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (29,453 | ) | (368,865 | ) | ||||
Shares issued upon conversion from other share class(es) | 46,021 | 572,097 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 16,568 | $ | 203,232 | |||||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 112,034 | $ | 1,370,565 | |||||
Shares issued in reinvestment of dividends and distributions | 36,406 | 436,572 | ||||||
Shares reacquired | (248,765 | ) | (3,018,367 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (100,325 | ) | (1,211,230 | ) | ||||
Shares issued upon conversion from other shares class(es) | 201,418 | 2,449,237 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 101,093 | $ | 1,238,007 | |||||
|
|
|
|
50 |
Moderate Allocation Fund:
Class A | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 535,520 | $ | 7,470,060 | |||||
Shares issued in reinvestment of dividends and distributions | 267,043 | 3,655,812 | ||||||
Shares reacquired | (676,171 | ) | (9,406,768 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 126,392 | 1,719,104 | ||||||
Shares issued upon conversion from other share class(es) | 468,542 | 6,630,173 | ||||||
Shares reacquired upon conversion into other share class(es) | (4,015 | ) | (56,279 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 590,919 | $ | 8,292,998 | |||||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 611,139 | $ | 8,263,316 | |||||
Shares issued in reinvestment of dividends and distributions | 562,569 | 7,476,540 | ||||||
Shares reacquired | (1,197,334 | ) | (16,221,748 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (23,626 | ) | (481,892 | ) | ||||
Shares issued upon conversion from other share class(es) | 727,165 | 9,871,524 | ||||||
Shares reacquired upon conversion into other share class(es) | (14,551 | ) | (198,659 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 688,988 | $ | 9,190,973 | |||||
|
|
|
| |||||
Class B | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 9,496 | $ | 131,779 | |||||
Shares issued in reinvestment of dividends and distributions | 42,026 | 572,398 | ||||||
Shares reacquired | (117,071 | ) | (1,613,462 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (65,549 | ) | (909,285 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (471,102 | ) | (6,607,380 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (536,651 | ) | $ | (7,516,665 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 20,947 | $ | 280,131 | |||||
Shares issued in reinvestment of dividends and distributions | 185,447 | 2,453,468 | ||||||
Shares reacquired | (388,305 | ) | (5,227,791 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (181,911 | ) | (2,494,192 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (729,254 | ) | (9,818,490 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (911,165 | ) | $ | (12,312,682 | ) | |||
|
|
|
| |||||
Class C | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 124,255 | $ | 1,709,859 | |||||
Shares issued in reinvestment of dividends and distributions | 47,997 | 653,717 | ||||||
Shares reacquired | (300,700 | ) | (4,155,777 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (128,448 | ) | (1,792,201 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (4,798 | ) | (66,207 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (133,246 | ) | $ | (1,858,408 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 187,282 | $ | 2,491,966 | |||||
Shares issued in reinvestment of dividends and distributions | 144,287 | 1,908,920 | ||||||
Shares reacquired | (506,786 | ) | (6,714,757 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (175,217 | ) | (2,313,871 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (4,290 | ) | (56,207 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (179,507 | ) | $ | (2,370,078 | ) | |||
|
|
|
|
Prudential Asset Allocation Funds | 51 |
Notes to Financial Statements (unaudited) (continued)
Moderate Allocation Fund (cont’d.):
Class R | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 322.0 | $ | 4,427 | |||||
Shares issued in reinvestment of dividends and distributions | 19.9 | 271 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 341.9 | $ | 4,698 | |||||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares issued in reinvestment of dividends and distributions | 21.7 | 288 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 21.7 | $ | 288 | |||||
|
|
|
| |||||
Class Z | ||||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 6,836 | $ | 96,200 | |||||
Shares issued in reinvestment of dividends and distributions | 6,991 | 95,635 | ||||||
Shares reacquired | (68,672 | ) | (950,377 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (54,845 | ) | (758,542 | ) | ||||
Shares issued upon conversion from other share class(es) | 7,124 | 99,693 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (47,721 | ) | $ | (658,849 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: | ||||||||
Shares sold | 54,203 | $ | 756,970 | |||||
Shares issued in reinvestment of dividends and distributions | 21,798 | 289,483 | ||||||
Shares reacquired | (112,743 | ) | (1,497,812 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (36,742 | ) | (451,359 | ) | ||||
Shares issued upon conversion from other shares class(es) | 14,753 | 201,832 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (21,989 | ) | $ | (249,527 | ) | |||
|
|
|
|
52 |
Growth Allocation Fund:
Class A | Shares | Amount | ||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 214,890 | $ | 3,467,112 | |||||
Shares issued in reinvestment of dividends and distributions | 162,185 | 2,559,286 | ||||||
Shares reacquired | (311,364 | ) | (5,009,989 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 65,711 | 1,016,409 | ||||||
Shares issued upon conversion from other share class(es) | 178,857 | 2,943,218 | ||||||
Shares reacquired upon conversion into other share class(es) | (16,695 | ) | (272,083 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 227,873 | $ | 3,687,544 | |||||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 415,136 | $ | 6,392,006 | |||||
Shares issued in reinvestment of dividends and distributions | 370,831 | 5,658,883 | ||||||
Shares reacquired | (537,893 | ) | (8,293,098 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 248,074 | 3,757,791 | ||||||
Shares issued upon conversion from other share class(es) | 279,236 | 4,330,334 | ||||||
Shares reacquired upon conversion into other share class(es) | (9,884 | ) | (159,112 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 517,426 | $ | 7,929,013 | |||||
|
|
|
| |||||
Class B | ||||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 10,584 | $ | 164,352 | |||||
Shares issued in reinvestment of dividends and distributions | 25,952 | 393,955 | ||||||
Shares reacquired | (55,183 | ) | (854,986 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (18,647 | ) | (296,679 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (185,785 | ) | (2,930,165 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (204,432 | ) | $ | (3,226,844 | ) | |||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 17,180 | $ | 243,509 | |||||
Shares issued in reinvestment of dividends and distributions | 110,352 | 1,623,272 | ||||||
Shares reacquired | (166,081 | ) | (2,478,054 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (38,549 | ) | (611,273 | ) | ||||
Shares reacquired upon conversion into other share class(es) | (290,672 | ) | (4,330,334 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (329,221 | ) | $ | (4,941,607 | ) | |||
|
|
|
| |||||
Class C | ||||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 57,670 | $ | 893,151 | |||||
Shares issued in reinvestment of dividends and distributions | 27,408 | 416,595 | ||||||
Shares reacquired | (59,841 | ) | (923,173 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 25,237 | 386,573 | ||||||
Shares reacquired upon conversion into other share class(es) | (5,515 | ) | (86,300 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 19,722 | $ | 300,273 | |||||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 140,335 | $ | 2,093,947 | |||||
Shares issued in reinvestment of dividends and distributions | 73,072 | 1,075,615 | ||||||
Shares reacquired | (156,885 | ) | (2,332,276 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 56,522 | 837,286 | ||||||
Shares reacquired upon conversion into other share class(es) | (14,606 | ) | (232,161 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 41,916 | $ | 605,125 | |||||
|
|
|
|
Prudential Asset Allocation Funds | 53 |
Notes to Financial Statements (unaudited) (continued)
Growth Allocation Fund (cont’d.):
Class R | Shares | Amount | ||||||
Six months ended March 31, 2017: | ||||||||
Shares sold | 671.8 | $ | 10,558 | |||||
Shares issued in reinvestment of dividends and distributions | 58.9 | 923 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 730.7 | $ | 11,481 | |||||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 658.0 | $ | 9,900 | |||||
Shares issued in reinvestment of dividends and distributions | 20.3 | 308 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 678.3 | $ | 10,208 | |||||
|
|
|
| |||||
Class Z | ||||||||
Six months ended March 31, 2017: |
| |||||||
Shares sold | 19,676 | $ | 323,478 | |||||
Shares issued in reinvestment of dividends and distributions | 4,436 | 70,798 | ||||||
Shares reacquired | (37,314 | ) | (610,145 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (13,202 | ) | (215,869 | ) | ||||
Shares issued upon conversion from other share class(es) | 20,950 | 345,330 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 7,748 | $ | 129,461 | |||||
|
|
|
| |||||
Year ended September 30, 2016: |
| |||||||
Shares sold | 31,669 | $ | 509,228 | |||||
Shares issued in reinvestment of dividends and distributions | 11,252 | 173,509 | ||||||
Shares reacquired | (48,526 | ) | (748,817 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (5,605 | ) | (66,080 | ) | ||||
Shares issued upon conversion from other shares class(es) | 23,665 | 391,273 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 18,060 | $ | 325,193 | |||||
|
|
|
|
Note 7. Borrowings
The Company, on behalf of the Allocation Funds, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 6, 2016 through October 5, 2017. The Funds pay an annualized commitment fee of .15% of the unused portion of the SCA. Prior to October 6, 2016, the Funds had a prior SCA that provided a commitment of $900 million in which the Funds paid an annualized commitment fee of .11% of the unused portion of the prior SCA. For the SCA and the prior SCA, each Allocation Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under each SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the 1-month LIBOR rate or (3) zero percent.
54 |
The Allocation Funds did not utilize the SCA during the six months ended March 31, 2017.
Note 8. Dividends to Shareholders
Subsequent to the six months ended March 31, 2017, the Conservative Allocation Fund declared ordinary income dividends on April 12, 2017 to shareholders of record on April 13, 2017. The ex-date was April 17, 2017. The per share amounts declared were as follows:
Ordinary Income | ||||
Class A | $ | 0.02994 | ||
Class B | $ | 0.00486 | ||
Class C | $ | 0.00486 | ||
Class R | $ | 0.02145 | ||
Class Z | $ | 0.03833 |
Note 9. Recent Accounting Pronouncements and Reporting Updates
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. Also under the new rules, the SEC will permit open-end funds, with the exception of money market funds, to offer swing pricing, subject to board approval and review. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
Note 10. Other
At the Funds’ Board meeting in March, 2017, the Board of Directors approved a change in the methodology of allocating certain expenses, like Transfer Agency (including sub-transfer agency and networking) and Blue Sky fees. The impact to the net assets of the Funds and individual share classes is not ascertainable at the present time. Management expects to implement the changes by December 31, 2017.
Prudential Asset Allocation Funds | 55 |
Prudential Conservative Allocation Fund
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $12.43 | $12.49 | $13.30 | $13.03 | $12.39 | $11.20 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .11 | .16 | .24 | .20 | .22 | .21 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .26 | .62 | (.41 | ) | .53 | .70 | 1.21 | |||||||||||||||||||||
Total from investment operations | .37 | .78 | (.17 | ) | .73 | .92 | 1.42 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.14 | ) | (.21 | ) | (.29 | ) | (.22 | ) | (.28 | ) | (.23 | ) | ||||||||||||||||
Distributions from net realized gains | (.14 | ) | (.63 | ) | (.35 | ) | (.24 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (.28 | ) | (.84 | ) | (.64 | ) | (.46 | ) | (.28 | ) | (.23 | ) | ||||||||||||||||
Net asset value, end of period | $12.52 | $12.43 | $12.49 | $13.30 | $13.03 | $12.39 | ||||||||||||||||||||||
Total Return(b): | 3.05% | 6.61% | (1.42)% | 5.67% | 7.52% | 12.84% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $82,932 | $85,173 | $73,273 | $72,292 | $64,535 | $57,791 | ||||||||||||||||||||||
Average net assets (000) | $81,175 | $81,813 | $75,170 | $66,510 | $60,521 | $56,264 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | .75% | (d) | .73% | .72% | .71% | .72% | .75% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | .80% | (d) | .78% | .77% | .76% | .77% | .81% | |||||||||||||||||||||
Net investment income (loss) | 1.84% | (d) | 1.36% | 1.86% | 1.48% | 1.74% | 1.80% | |||||||||||||||||||||
Portfolio turnover rate | 12% | (e) | 25% | 42% | 46% | 25% | 23% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
56 |
Class B Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $12.37 | $12.43 | $13.24 | $12.98 | $12.33 | $11.15 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .07 | .08 | .15 | .10 | .13 | .13 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .24 | .61 | (.42 | ) | .52 | .70 | 1.20 | |||||||||||||||||||||
Total from investment operations | .31 | .69 | (.27 | ) | .62 | .83 | 1.33 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.09 | ) | (.12 | ) | (.19 | ) | (.12 | ) | (.18 | ) | (.15 | ) | ||||||||||||||||
Distributions from net realized gains | (.14 | ) | (.63 | ) | (.35 | ) | (.24 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (.23 | ) | (.75 | ) | (.54 | ) | (.36 | ) | (.18 | ) | (.15 | ) | ||||||||||||||||
Net asset value, end of period | $12.45 | $12.37 | $12.43 | $13.24 | $12.98 | $12.33 | ||||||||||||||||||||||
Total Return(b): | 2.59% | 5.84% | (2.17)% | 4.82% | 6.84% | 11.96% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $11,671 | $16,107 | $30,118 | $40,863 | $43,767 | $43,162 | ||||||||||||||||||||||
Average net assets (000) | $14,182 | $23,560 | $37,344 | $43,801 | $43,407 | $44,359 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.50% | (d) | 1.48% | 1.47% | 1.46% | 1.47% | 1.50% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.50% | (d) | 1.48% | 1.47% | 1.46% | 1.47% | 1.51% | |||||||||||||||||||||
Net investment income (loss) | 1.13% | (d) | .67% | 1.17% | .73% | 1.01% | 1.06% | |||||||||||||||||||||
Portfolio turnover rate | 12% | (e) | 25% | 42% | 46% | 25% | 23% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 57 |
Prudential Conservative Allocation Fund
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $12.37 | $12.44 | $13.24 | $12.98 | $12.34 | $11.16 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .07 | .08 | .14 | .10 | .12 | .13 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .25 | .60 | (.40 | ) | .52 | .70 | 1.20 | |||||||||||||||||||||
Total from investment operations | .32 | .68 | (.26 | ) | .62 | .82 | 1.33 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.09 | ) | (.12 | ) | (.19 | ) | (.12 | ) | (.18 | ) | (.15 | ) | ||||||||||||||||
Distributions from net realized gains | (.14 | ) | (.63 | ) | (.35 | ) | (.24 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (.23 | ) | (.75 | ) | (.54 | ) | (.36 | ) | (.18 | ) | (.15 | ) | ||||||||||||||||
Net asset value, end of period | $12.46 | $12.37 | $12.44 | $13.24 | $12.98 | $12.34 | ||||||||||||||||||||||
Total Return(b): | 2.67% | 5.75% | (2.09)% | 4.82% | 6.75% | 11.95% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $26,985 | $28,325 | $31,091 | $28,724 | $22,055 | $18,224 | ||||||||||||||||||||||
Average net assets (000) | $27,332 | $30,257 | $30,647 | $26,250 | $19,308 | $18,095 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.50% | (d) | 1.48% | 1.47% | 1.46% | 1.47% | 1.50% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.50% | (d) | 1.48% | 1.47% | 1.46% | 1.47% | 1.51% | |||||||||||||||||||||
Net investment income (loss) | 1.10% | (d) | .63% | 1.09% | .69% | .98% | 1.10% | |||||||||||||||||||||
Portfolio turnover rate | 12% | (e) | 25% | 42% | 46% | 25% | 23% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
58 |
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $12.47 | $12.53 | $13.34 | $13.07 | $12.42 | $11.23 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .10 | .13 | .21 | .17 | .19 | .17 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .25 | .62 | (.41 | ) | .53 | .71 | 1.22 | |||||||||||||||||||||
Total from investment operations | .35 | .75 | (.20 | ) | .70 | .90 | 1.39 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.12 | ) | (.18 | ) | (.26 | ) | (.19 | ) | (.25 | ) | (.20 | ) | ||||||||||||||||
Distributions from net realized gains | (.14 | ) | (.63 | ) | (.35 | ) | (.24 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (.26 | ) | (.81 | ) | (.61 | ) | (.43 | ) | (.25 | ) | (.20 | ) | ||||||||||||||||
Net asset value, end of period | $12.56 | $12.47 | $12.53 | $13.34 | $13.07 | $12.42 | ||||||||||||||||||||||
Total Return(b): | 2.91% | 6.32% | (1.66)% | 5.38% | 7.32% | 12.52% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $136 | $115 | $107 | $95 | $59 | $49 | ||||||||||||||||||||||
Average net assets (000) | $130 | $101 | $101 | $76 | $54 | $42 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.00% | (d) | .98% | .97% | .96% | .97% | 1.00% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.25% | (d) | 1.23% | 1.22% | 1.21% | 1.22% | 1.26% | |||||||||||||||||||||
Net investment income (loss) | 1.60% | (d) | 1.10% | 1.59% | 1.18% | 1.48% | 1.48% | |||||||||||||||||||||
Portfolio turnover rate | 12% | (e) | 25% | 42% | 46% | 25% | 23% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 59 |
Prudential Conservative Allocation Fund
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||
Six Months | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $12.49 | $12.55 | $13.36 | $13.09 | $12.44 | $11.24 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .13 | .19 | .27 | .22 | .24 | .24 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .26 | .63 | (.40 | ) | .54 | .72 | 1.22 | |||||||||||||||||||||
Total from investment operations | .39 | .82 | (.13 | ) | .76 | .96 | 1.46 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.16 | ) | (.25 | ) | (.33 | ) | (.25 | ) | (.31 | ) | (.26 | ) | ||||||||||||||||
Distributions from net realized gains | (.14 | ) | (.63 | ) | (.35 | ) | (.24 | ) | - | - | ||||||||||||||||||
Total dividends and distributions | (.30 | ) | (.88 | ) | (.68 | ) | (.49 | ) | (.31 | ) | (.26 | ) | ||||||||||||||||
Net asset value, end of period | $12.58 | $12.49 | $12.55 | $13.36 | $13.09 | $12.44 | ||||||||||||||||||||||
Total Return(b): | 3.17% | 6.85% | (1.16)% | 5.90% | 7.84% | 13.17% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $7,901 | $7,637 | $6,404 | $5,572 | $6,097 | $3,960 | ||||||||||||||||||||||
Average net assets (000) | $7,559 | $6,800 | $6,058 | $5,941 | $5,492 | $3,176 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | .50% | (d) | .48% | .47% | .46% | .47% | .50% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | .50% | (d) | .48% | .47% | .46% | .47% | .51% | |||||||||||||||||||||
Net investment income (loss) | 2.09% | (d) | 1.59% | 2.09% | 1.75% | 1.90% | 1.99% | |||||||||||||||||||||
Portfolio turnover rate | 12% | (e) | 25% | 42% | 46% | 25% | 23% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
60 |
Prudential Moderate Allocation Fund
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $13.93 | $13.96 | $15.17 | $14.21 | $12.80 | $11.09 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .12 | .12 | .18 | .15 | .16 | .14 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .64 | .94 | (.55 | ) | .97 | 1.49 | 1.73 | |||||||||||||||||||||
Total from investment operations | .76 | 1.06 | (.37 | ) | 1.12 | 1.65 | 1.87 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.17 | ) | (.21 | ) | (.31 | ) | (.16 | ) | (.24 | ) | (.16 | ) | ||||||||||||||||
Distributions from net realized gains | (.31 | ) | (.88 | ) | (.53 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.48 | ) | (1.09 | ) | (.84 | ) | (.16 | ) | (.24 | ) | (.16 | ) | ||||||||||||||||
Net asset value, end of period | $14.21 | $13.93 | $13.96 | $15.17 | $14.21 | $12.80 | ||||||||||||||||||||||
Total Return(b): | 5.56% | 8.00% | (2.79)% | 7.91% | 13.13% | 17.00% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $116,746 | $106,173 | $96,846 | $93,752 | $81,788 | $70,155 | ||||||||||||||||||||||
Average net assets (000) | $109,066 | $100,247 | $98,271 | $89,611 | $74,440 | $66,664 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | .75% | (d) | .75% | .71% | .70% | .71% | .74% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | .80% | (d) | .80% | .76% | .75% | .76% | .79% | |||||||||||||||||||||
Net investment income (loss) | 1.70% | (d) | .90% | 1.17% | 1.00% | 1.22% | 1.11% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 20% | 45% | 35% | 30% | 27% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 61 |
Prudential Moderate Allocation Fund
Financial Highlights (unaudited) (continued)
Class B Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $13.79 | $13.83 | $15.04 | $14.09 | $12.69 | $11.00 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .07 | .03 | .07 | .04 | .07 | .05 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .64 | .91 | (.56 | ) | .97 | 1.48 | 1.71 | |||||||||||||||||||||
Total from investment operations | .71 | .94 | (.49 | ) | 1.01 | 1.55 | 1.76 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.07 | ) | (.10 | ) | (.19 | ) | (.06 | ) | (.15 | ) | (.07 | ) | ||||||||||||||||
Distributions from net realized gains | (.31 | ) | (.88 | ) | (.53 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.38 | ) | (.98 | ) | (.72 | ) | (.06 | ) | (.15 | ) | (.07 | ) | ||||||||||||||||
Net asset value, end of period | $14.12 | $13.79 | $13.83 | $15.04 | $14.09 | $12.69 | ||||||||||||||||||||||
Total Return(b): | 5.23% | 7.13% | (3.55)% | 7.15% | 12.35% | 16.06% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $18,434 | $25,407 | $38,084 | $53,127 | $54,574 | $53,400 | ||||||||||||||||||||||
Average net assets (000) | $22,607 | $32,651 | $48,273 | $56,302 | $54,466 | $55,362 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.50% | (d) | 1.50% | 1.46% | 1.45% | 1.46% | 1.49% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.50% | (d) | 1.50% | 1.46% | 1.45% | 1.46% | 1.49% | |||||||||||||||||||||
Net investment income (loss) | .97% | (d) | .22% | .49% | .28% | .51% | .40% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 20% | 45% | 35% | 30% | 27% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
62 |
Class C Shares | ||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $13.78 | $13.83 | $15.03 | $14.08 | $12.69 | $10.99 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | .07 | .03 | .06 | .04 | .06 | .04 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .64 | .90 | (.54 | ) | .97 | 1.48 | 1.73 | |||||||||||||||||||
Total from investment operations | .71 | .93 | (.48 | ) | 1.01 | 1.54 | 1.77 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (.07 | ) | (.10 | ) | (.19 | ) | (.06 | ) | (.15 | ) | (.07 | ) | ||||||||||||||
Distributions from net realized gains | (.31 | ) | (.88 | ) | (.53 | ) | - | - | - | |||||||||||||||||
Total dividends and distributions | (.38 | ) | (.98 | ) | (.72 | ) | (.06 | ) | (.15 | ) | (.07 | ) | ||||||||||||||
Net asset value, end of period | $14.11 | $13.78 | $13.83 | $15.03 | $14.08 | $12.69 | ||||||||||||||||||||
Total Return(b): | 5.23% | 7.06% | (3.48)% | 7.15% | 12.27% | 16.16% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $27,097 | $28,306 | $30,872 | $29,564 | $24,604 | $19,485 | ||||||||||||||||||||
Average net assets (000) | $27,559 | $29,628 | $31,776 | $28,118 | $21,933 | $18,652 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.50% | (d) | 1.50% | 1.46% | 1.45% | 1.46% | 1.49% | |||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.50% | (d) | 1.50% | 1.46% | 1.45% | 1.46% | 1.49% | |||||||||||||||||||
Net investment income (loss) | .96% | (d) | .19% | .40% | .24% | .43% | .36% | |||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 20% | 45% | 35% | 30% | 27% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 63 |
Prudential Moderate Allocation Fund
Financial Highlights (unaudited) (continued)
Class R Shares | ||||||||||||||||||||||||||
Six Months | Year Ended September 30, | |||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $13.83 | $13.87 | $15.11 | $14.15 | $12.76 | $11.05 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | .10 | .09 | .18 | .11 | .05 | .13 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .64 | .93 | (.62 | ) | .97 | 1.55 | 1.71 | |||||||||||||||||||
Total from investment operations | .74 | 1.02 | (.44 | ) | 1.08 | 1.60 | 1.84 | |||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||
Dividends from net investment income | (.13 | ) | (.18 | ) | (.27 | ) | (.12 | ) | (.21 | ) | (.13 | ) | ||||||||||||||
Distributions from net realized gains | (.31 | ) | (.88 | ) | (.53 | ) | - | - | - | |||||||||||||||||
Total dividends and distributions | (.44 | ) | (1.06 | ) | (.80 | ) | (.12 | ) | (.21 | ) | (.13 | ) | ||||||||||||||
Net asset value, end of period | $14.13 | $13.83 | $13.87 | $15.11 | $14.15 | $12.76 | ||||||||||||||||||||
Total Return(b): | 5.48% | 7.68% | (3.26)% | 7.67% | 12.74% | 16.76% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (000) | $9 | $4 | $4 | $177 | $153 | $7 | ||||||||||||||||||||
Average net assets (000) | $8 | $4 | $140 | $167 | $15 | $9 | ||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.00% | (d) | 1.00% | .96% | .95% | .90% | .99% | |||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.25% | (d) | 1.25% | 1.21% | 1.20% | 1.15% | 1.24% | |||||||||||||||||||
Net investment income (loss) | 1.50% | (d) | .64% | 1.18% | .76% | .40% | 1.08% | |||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 20% | 45% | 35% | 30% | 27% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
64 |
Class Z Shares | ||||||||||||||||||||||||||||
Six Months | Year Ended September 30, | |||||||||||||||||||||||||||
2017(a) | 2016(a) | 2015(a) | 2014 | 2013(a) | 2012(a) | |||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $13.95 | $13.99 | $15.20 | $14.23 | $12.81 | $11.10 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .14 | .17 | .21 | .17 | .21 | .17 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | .64 | .92 | (.54 | ) | .99 | 1.49 | 1.73 | |||||||||||||||||||||
Total from investment operations | .78 | 1.09 | (.33 | ) | 1.16 | 1.70 | 1.90 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.20 | ) | (.25 | ) | (.35 | ) | (.19 | ) | (.28 | ) | (.19 | ) | ||||||||||||||||
Distributions from net realized gains | (.31 | ) | (.88 | ) | (.53 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.51 | ) | (1.13 | ) | (.88 | ) | (.19 | ) | (.28 | ) | (.19 | ) | ||||||||||||||||
Net asset value, end of period | $14.22 | $13.95 | $13.99 | $15.20 | $14.23 | $12.81 | ||||||||||||||||||||||
Total Return(b): | 5.73% | 8.21% | (2.54)% | 8.22% | 13.48% | 17.28% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,668 | $3,283 | $3,601 | $3,767 | $2,684 | $3,052 | ||||||||||||||||||||||
Average net assets (000) | $2,809 | $3,319 | $3,537 | $3,190 | $2,874 | $2,590 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | .50% | (d) | .50% | .46% | .45% | .46% | .49% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | .50% | (d) | .50% | .46% | .45% | .46% | .49% | |||||||||||||||||||||
Net investment income (loss) | 1.97% | (d) | 1.24% | 1.43% | 1.20% | 1.57% | 1.38% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 20% | 45% | 35% | 30% | 27% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 65 |
Prudential Growth Allocation Fund
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $15.94 | $16.15 | $17.41 | $16.02 | $13.58 | $11.23 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .13 | .07 | .08 | .08 | .10 | .05 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 1.13 | 1.33 | (.84 | ) | 1.42 | 2.46 | 2.30 | |||||||||||||||||||||
Total from investment operations | 1.26 | 1.40 | (.76 | ) | 1.50 | 2.56 | 2.35 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.18 | ) | (.16 | ) | (.35 | ) | (.11 | ) | (.12 | ) | - | |||||||||||||||||
Distributions from net realized gains | (.46 | ) | (1.45 | ) | (.15 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.64 | ) | (1.61 | ) | (.50 | ) | (.11 | ) | (.12 | ) | - | |||||||||||||||||
Net asset value, end of period | $16.56 | $15.94 | $16.15 | $17.41 | $16.02 | $13.58 | ||||||||||||||||||||||
Total Return(b): | 8.09% | 9.13% | (4.58)% | 9.37% | 19.02% | 20.93% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $71,312 | $65,038 | $57,536 | $56,293 | $46,911 | $37,934 | ||||||||||||||||||||||
Average net assets (000) | $66,997 | $60,610 | $59,770 | $52,609 | $41,896 | $35,571 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | .75% | (d) | .75% | .75% | .75% | .75% | .75% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | .97% | (d) | .97% | .93% | .90% | .92% | .99% | |||||||||||||||||||||
Net investment income (loss) | 1.60% | (d) | .47% | .48% | .46% | .65% | .41% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 24% | 44% | 24% | 23% | 30% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
66 |
Class B Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $15.28 | $15.53 | $16.76 | $15.44 | $13.10 | $10.91 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .07 | (.03 | ) | (.03 | ) | (.04 | ) | (.01 | ) | (.03 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 1.07 | 1.27 | (.82 | ) | 1.36 | 2.38 | 2.22 | |||||||||||||||||||||
Total from investment operations | 1.14 | 1.24 | (.85 | ) | 1.32 | 2.37 | 2.19 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.07 | ) | (.04 | ) | (.23 | ) | - | (.03 | ) | - | ||||||||||||||||||
Distributions from net realized gains | (.46 | ) | (1.45 | ) | (.15 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.53 | ) | (1.49 | ) | (.38 | ) | - | (.03 | ) | - | ||||||||||||||||||
Net asset value, end of period | $15.89 | $15.28 | $15.53 | $16.76 | $15.44 | $13.10 | ||||||||||||||||||||||
Total Return(b): | 7.62% | 8.35% | (5.28)% | 8.55% | 18.13% | 20.07% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $10,622 | $13,335 | $18,670 | $27,929 | $29,785 | $28,111 | ||||||||||||||||||||||
Average net assets (000) | $12,245 | $16,171 | $24,591 | $30,822 | $29,020 | $29,094 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.50% | (d) | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.67% | (d) | 1.67% | 1.63% | 1.60% | 1.62% | 1.69% | |||||||||||||||||||||
Net investment income (loss) | .90% | (d) | (.18)% | (.16)% | (.22)% | (.06)% | (.26)% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 24% | 44% | 24% | 23% | 30% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 67 |
Prudential Growth Allocation Fund
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $15.30 | $15.54 | $16.78 | $15.45 | $13.11 | $10.92 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .07 | (.04 | ) | (.05 | ) | (.05 | ) | (.01 | ) | (.03 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 1.07 | 1.29 | (.81 | ) | 1.38 | 2.38 | 2.22 | |||||||||||||||||||||
Total from investment operations | 1.14 | 1.25 | (.86 | ) | 1.33 | 2.37 | 2.19 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.07 | ) | (.04 | ) | (.23 | ) | - | (.03 | ) | - | ||||||||||||||||||
Distributions from net realized gains | (.46 | ) | (1.45 | ) | (.15 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.53 | ) | (1.49 | ) | (.38 | ) | - | (.03 | ) | - | ||||||||||||||||||
Net asset value, end of period | $15.91 | $15.30 | $15.54 | $16.78 | $15.45 | $13.11 | ||||||||||||||||||||||
Total Return(b): | 7.61% | 8.41% | (5.33)% | 8.61% | 18.11% | 20.05% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $13,288 | $12,473 | $12,025 | $11,858 | $10,416 | $8,566 | ||||||||||||||||||||||
Average net assets (000) | $12,757 | $12,092 | $12,540 | $11,625 | $9,377 | $8,756 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.50% | (d) | 1.50% | 1.50% | 1.50% | 1.50% | �� | 1.50% | ||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.67% | (d) | 1.67% | 1.63% | 1.60% | 1.62% | 1.69% | |||||||||||||||||||||
Net investment income (loss) | .87% | (d) | (.26)% | (.28)% | (.29)% | (.10)% | (.28)% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 24% | 44% | 24% | 23% | 30% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include the expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
68 |
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $15.80 | $16.01 | $17.27 | $15.90 | $13.48 | $11.17 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .11 | (.04 | ) | .04 | .04 | .06 | .03 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 1.12 | 1.40 | (.84 | ) | 1.40 | 2.45 | 2.28 | |||||||||||||||||||||
Total from investment operations | 1.23 | 1.36 | (.80 | ) | 1.44 | 2.51 | 2.31 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.14 | ) | (.12 | ) | (.31 | ) | (.07 | ) | (.09 | ) | - | |||||||||||||||||
Distributions from net realized gains | (.46 | ) | (1.45 | ) | (.15 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.60 | ) | (1.57 | ) | (.46 | ) | (.07 | ) | (.09 | ) | - | |||||||||||||||||
Net asset value, end of period | $16.43 | $15.80 | $16.01 | $17.27 | $15.90 | $13.48 | ||||||||||||||||||||||
Total Return(b): | 7.97% | 8.91% | (4.85)% | 9.07% | 18.74% | 20.68% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $26 | $14 | $3 | $3 | $3 | $3 | ||||||||||||||||||||||
Average net assets (000) | $24 | $8 | $3 | $3 | $3 | $2 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | 1.00% | (d) | 1.00% | 1.00% | .97% | 1.00% | 1.00% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | 1.42% | (d) | 1.42% | 1.36% | 1.31% | 1.37% | 1.30% | |||||||||||||||||||||
Net investment income (loss) | 1.40% | (d) | (.24)% | .21% | .25% | .40% | .22% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 24% | 44% | 24% | 23% | 30% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
Prudential Asset Allocation Funds | 69 |
Prudential Growth Allocation Fund
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended March 31, | Year Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning Of Period | $16.14 | $16.34 | $17.61 | $16.20 | $13.73 | $11.32 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | .15 | .13 | .15 | .11 | .13 | .06 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactions | 1.14 | 1.33 | (.87 | ) | 1.45 | 2.50 | 2.35 | |||||||||||||||||||||
Total from investment operations | 1.29 | 1.46 | (.72 | ) | 1.56 | 2.63 | 2.41 | |||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (.22 | ) | (.21 | ) | (.40 | ) | (.15 | ) | (.16 | ) | - | |||||||||||||||||
Distributions from net realized gains | (.46 | ) | (1.45 | ) | (.15 | ) | - | - | - | |||||||||||||||||||
Total dividends and distributions | (.68 | ) | (1.66 | ) | (.55 | ) | (.15 | ) | (.16 | ) | - | |||||||||||||||||
Net asset value, end of period | $16.75 | $16.14 | $16.34 | $17.61 | $16.20 | $13.73 | ||||||||||||||||||||||
Total Return(b): | 8.18% | 9.39% | (4.36)% | 9.64% | 19.31% | 21.29% | ||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,045 | $1,845 | $1,573 | $1,477 | $989 | $1,112 | ||||||||||||||||||||||
Average net assets (000) | $1,876 | $1,794 | $1,352 | $1,278 | $1,071 | $786 | ||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses, after waivers and/or expense reimbursement | .50% | (d) | .50% | .50% | .50% | .50% | .50% | |||||||||||||||||||||
Expenses, before waivers and/or expense reimbursement | .67% | (d) | .67% | .63% | .60% | .62% | .69% | |||||||||||||||||||||
Net investment income (loss) | 1.88% | (d) | .81% | .82% | .62% | .84% | .49% | |||||||||||||||||||||
Portfolio turnover rate | 13% | (e) | 24% | 44% | 24% | 23% | 30% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
70 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | www.pgiminvestments.com |
PROXY VOTING |
The Board of Directors of the Funds has delegated to the Funds’ investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Funds. 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 Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Funds’ website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Charles H. Smith, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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INVESTMENT SUBADVISER | Quantitative Management Associates LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN | The Bank of New York Mellon | 225 Liberty Street New York, NY 10281 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
| ||||
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 Funds carefully before investing. The prospectus and summary prospectus for each Fund contain this and other information about the Funds. An investor may obtain a prospectus and summary prospectus by visiting our website at www.pgiminvestments.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.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Asset Allocation Funds, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
Each 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. Each Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. Each Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Each Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PRUDENTIAL ASSET ALLOCATION FUNDS | NASDAQ | CUSIP | NASDAQ | CUSIP | ||||||
Conservative Allocation (Class A) | JDUAX | 74437E750 | Moderate Allocation (Class R) | JMARX | 74437E610 | |||||
Conservative Allocation (Class B) | JDABX | 74437E743 | Moderate Allocation (Class Z) | JDMZX | 74437E776 | |||||
Conservative Allocation (Class C) | JDACX | 74437E735 | Growth Allocation (Class A) | JDAAX | 74437E685 | |||||
Conservative Allocation (Class R) | JDARX | 74437E628 | Growth Allocation (Class B) | JDGBX | 74437E677 | |||||
Conservative Allocation (Class Z) | JDAZX | 74437E784 | Growth Allocation (Class C) | JDGCX | 74437E669 | |||||
Moderate Allocation (Class A) | JDTAX | 74437E727 | Growth Allocation (Class R) | JGARX | 74437E594 | |||||
Moderate Allocation (Class B) | JDMBX | 74437E719 | Growth Allocation (Class Z) | JDGZX | 74437E768 | |||||
Moderate Allocation (Class C) | JDMCX | 74437E693 |
MF194E2
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 required, as this is not an annual filing. |
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: | The Prudential Investment Portfolios, Inc. | |||
By: | /s/ Deborah A. Docs | |||
Deborah A. Docs | ||||
Secretary | ||||
Date: | May 18, 2017 |
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 18, 2017 | |||
By: | /s/ M. Sadiq Peshimam | |||
M. Sadiq Peshimam | ||||
Treasurer and Principal Financial and Accounting Officer | ||||
Date: | May 18, 2017 |